California regulators face disapproval for not imposing new well rules in major oil merger

Environmental groups and lawmakers are calling for action after California regulators did not enforce a law requiring financial bonds for idle wells during a major oil company merger. The merger between California Resources Corporation and Aera Energy proceeded without the requisite financial assurance bonds for defunct wells. According to AB 1167, companies must secure bonds for idle wells before transfer, but CalGEM has stated this does not apply in this case. Critics argue this decision undermines the law's purpose of safeguarding public health and the environment. Without enforcing the bond requirement, thousands of idle oil wells could remain neglected, leading to significant environmental and health risks, and potentially shifting cleanup costs to the public.