Oil companies are required to pay for decommissioning their platforms, but industry changes mean taxpayers might foot some of the bill.
A bill aimed at ending offshore oil drilling in state waters calls for officials to negotiate with companies that own the leasing rights to the last three of those platforms, all off the coast of Orange County.
“To the extent that ending offshore drilling eliminates the risk of oil spills from those platforms, that is a massive net savings for California residents.”October 2021 oil spill off the coast of Huntington Beach Still, cost will be key. Based on the amounts spent to close down other offshore oil operations, the cost of shutting the three platforms off the coast of Orange County – known as platforms Eva, Emmy and Ester – would run between $1 billion and $2 billion. How much of that would be paid by oil companies, and how much by taxpayers, would be the subject of negotiations and, perhaps, a source of controversy in blue-leaning California.
By law, offshore drillers in California are required to pay for the costs of decommissioning their platforms, but only after the wells are no longer productive. And the state definition of “productive” is loose, allowing oil operators to keep drilling for a tiny amount of oil each year as a way to stave off the massive costs of closing down an offshore plant.shows that the oil operations off the coast of Orange County remain viable, if not big producers.
Still, the example that might determine the fate of SB 559 is the payout underway related to Platform Holly, an oil operation off the coast of Santa Barbara. Until it ceased production in 2017, Holly was the fourth well in state waters.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Atlantic Beach, Neptune Beach and Fernandina Beach looking for city managersBy the end of this week, Atlantic Beach, Neptune Beach and Fernandina Beach will be searching for new city managers. These vacancies are all for different reasons.
Read more »
Huntington Beach City Council Votes To Fight State Housing LawsThe council also directed the city attorney to draft an ordinance halting permits for accessory dwelling units, which are secondary housing units (typically smaller apartments or cottages known as ADUs) added to existing homes.
Read more »
At least 10 migrants detained after small boat comes ashore in Huntington BeachAt least 10 migrants were detained after coming ashore in Huntington Beach on a small boat.
Read more »
Groups Call For California To Pass 'Price Gouging' Bill Against Big Oil Companies | CarscoopsCalifornia wants to penalize the oil industry for making record profits while residents paid staggering prices at the pump
Read more »
California Bill Penalizing Oil Profits Makes Little ProgressCalifornia lawmakers are having their first public hearing on a proposal to penalize some oil company profits. Gov. Gavin Newsom proposed the law in response to record high gas prices over the summer.
Read more »
Bill penalizing oil profits makes little progress in California legislatureThe bill is still sitting in the Democratic-controlled Legislature three months later, with no details on how much the penalty would be or when oil companies would have to pay it.
Read more »