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California oil firm’s carbon storage plans may shift cleanup costs to taxpayers

California Resources Corp.’s plans for carbon storage may delay cleanup of thousands of idle wells, potentially leaving taxpayers with the bill.

Emma Foehringer Merchant reports for Inside Climate News.


In short:

  • CRC, a major California oil producer, faces more than $1 billion in cleanup costs for over 11,000 idle wells.
  • The company’s bonds cover only a fraction of these costs, raising concerns about taxpayers bearing the burden.
  • Critics worry CRC may repurpose idle wells for carbon storage to postpone cleanup obligations.

Key quote:

“It offers a way to be paid to do something with these wells, as opposed to simply paying to do cleanup. It’s arguably a way to say, we don’t need to do cleanup now.”

— Joshua Macey, Yale Law School professor

Why this matters:

Abandoned wells can leak methane and other toxins into air and groundwater, posing health risks. If companies avoid cleanup, taxpayers face financial and environmental consequences, exacerbating issues in communities near these sites.

Related: Federal requirements slow efforts to clean up abandoned oil wells

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Justin McCurry reports for The Guardian.

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