CA SB551

Extends the reporting deadline for hazardous and idle-deserted wells from October 1, 2020 to April 1, 2021, and requires field inspections to prioritize wells and facilities in the abandonment schedule.

Requires the Division of Oil, Gas, and Geothermal Resources to conduct inspections of production facilities at long-term idle wells starting with the July 1, 2021 report, and include violation findings in annual reports.

Mandates that oil and gas operators submit liability reports beginning July 1, 2022 demonstrating their total costs to plug, abandon, and remediate all wells and facilities, with staggered deadlines through July 1, 2026 and follow-up reporting every five years.

Requires the division to develop cost estimation criteria for operators based on generally accepted accounting principles, and authorizes the supervisor to request revised estimates if submitted costs are not credible or accurate.

Reduces the annual spending cap for well abandonment and facility decommissioning from $3 million (fiscal years 2018-2022) to $1 million beginning fiscal year 2022-23, with violations subject to existing penalties.