Update on Abandoned Offshore Oil & Gas Wells

Jan 10, 2019 | Oil and Gas, Publications

This report has been prepared in compliance with the Legislative Analyst Office Supplemental Report of the 2018-19 California State Budget, which contains statements of legislative intent adopted during budget deliberations. Item 3560-001-0001, an update on abandoned oil and gas wells, requires the State Lands Commission to submit a report to the budget committees of the Legislature and the Legislative Analyst’s Office by January 10, 2019. This report provides an update on: (1) the status of negotiations with and amount of funding received for the Platform Holly project and the amount received from the Rincon Island Limited Partnership performance
bond; (2) the project status and work accomplished, timelines for completion, and latest cost estimates for the Commission’s work at Platform Holly and Rincon Island; and (3) the status of lease renegotiations with existing offshore platform and island lessees and the protections to limit future State liability.