D22AP00167

The California Department of Conservation, Geologic Energy Management Division (CALGEM), upon receipt of initial grant funds, will work to contract projects to plug and permanently seal orphan oil and gas wells and remediate and restore associated sites. CALGEM will also conduct a statewide assessment to confirm well locations and rig access. Additionally, title search ownership research will be pursued to clarify and confirm ownership or lack thereof for oil and gas wells and sites. Furthermore, CALGEM will seek to obtain Risk Based Data Management Solutions (RBDMS) to track and prioritize orphan wells and monitor groundwater. Finally, grant funds will be utilized to offset certain personnel costs associated with carrying out activities funded by this grant.

This grant will fund projects to plug and permanently seal 171 orphan oil and gas wells and remediate associated sites that were formerly owned by HVI, Cat Canyon, Inc. in Santa Barbara County. The wells and associated facilities were left to the state of California following the bankruptcy of HVI, Cat Canyon, Inc. and are considered to be a public nuisance and potential threat to public health and the environment. CALGEM will contract work to perform all engineering, environmental, operations, and administrative services to plug and permanently seal these wells, decommission the attendant facilities and pipelines, and restore and remediate the sites. The execution of this work will benefit the local community and environment by identifying and eliminating potential hazards and returning the site to a condition of beneficial reuse.

With this grant funding, CALGEM will also pursue a contract to conduct a statewide assessment of orphan well locations and rig access. It is imperative that the well locations of known orphan wells and the ability for rigs to access them be confirmed, so that the state can efficiently move forward with the plugging and abandonment of such wells and facilities. Additionally, the assessment will help identify undocumented orphan wells not currently in CALGEM's records.

CALGEM will pursue title search ownership research to confirm present ownership, or lack thereof, of orphan wells to be plugged and sealed. If an owner is identified, CALGEM will seek to plug and seal the wells at the owner's expense or seek reimbursement should grant or state funds be already expended to plug and seal the wells. In order to effectively track and prioritize orphan wells and monitor groundwater in the course of plugging and abandonment operations, CALGEM will seek to obtain RBDMS solutions from the Groundwater Protection Council that can be designed to meet California's needs.

Finally, CALGEM will seek to offset certain personnel costs associated with managing this grant and carrying out activities to be funded by it.

California Department Of Conservation

DECREASE THE AMOUNT OF METHANE EMISSIONS FROM ORPHANED WELLS. ENHANCE THE PROTECTION OF PUBLIC HEALTH AND SAFETY AND PROPERTY FROM ADVERSE EFFECTS OF OIL DRILLING PRACTICES FROM ORPHANED WELLS ON STATES AND PRIVATE LANDS. PLUG AND REMEDIATE OR RECLAIM ORPHANED WELLS ON STATE AND PRIVATE LANDS.

15.018 - Energy Community Revitalization Program (ECRP)

Interior Business Center (IBC) [DOI]

California United States

State-Wide

D-AQD-FA-22-003

Infrastructure $25,000,000 (100%) percent this Project Grant was funded by the 2021 Infrastructure Act.
Amendment Since initial award the total obligations have increased 40% from $29,928,615 to $41,931,625.