A new California law just signed by Gov. Gavin Newsom aims to close loopholes that have allowed oil drillers to walk away from wells that are no longer profitable but remain harmful. Oil majors have typically sold wells to smaller companies without paying to plug the wells, essentially sealing them off. Under the new law, buyers will have to put up a cleanup bond before regulators approve the sale.
But while the Orphan Well Prevention Act will help reduce the number of abandoned and orphaned wells — currently around 5,300 — industry watchers said it does little to address the looming issue of wells that remain dormant indefinitely, some of which leak climate-warming methane and toxic fumes.
