Abstract
To address the increasing number of long-term idle wells in California, the Department of Conservation's Division of Oil, Gas, and Geothermal Resources (Division) worked with the U.S. Bureau of Land Management (BLM) and oil industry representatives to develop strategies to reduce the idle well inventory and lower the State's potential well plugging liability. This process resulted in the development of new statutes in the Public Resources Code (PRC) that require additional financial assurances through increased well bonding, higher idle well fees, and increased orphan-well plugging and abandonment funds for the Division. Operators with long-term idle wells are also required to develop idle well management and elimination plans that focus on wells that have been shut-in for ten years, or more. In addition, idle well testing is required to protect freshwater and hydrocarbon resources, and to help determine a well's future resource potential. This paper will discuss the historic idle well trends that led to this proactive program, the specific statutes and program requirements and the program goals.
