As a company dedicated to supplying energy for California by Californians, California Resources Corporation (CRC) proudly shares and endorses the state’s commitment to conserve our natural resources and protect our environment. We operate in sensitive coastal, urban and agricultural settings by applying advanced 产品介绍ion technologies and control systems, as well as innovative environmental safeguards and conservation measures. We design and maintain our facilities throughout the state with our neighbors, communities and the environment in mind. By actively promoting conservation of water, habitat and energy, we benefit the communities where we live and work.
California’s stringent health, safety and environmental laws and regulations, its pioneering Greenhouse Gas Cap and Trade program, its renewable energy and energy efficiency mandates and its ambitious goals regarding greenhouse gases are summarized in CRC’s 2017 Annual Report on Form 10-K, along with specific risk factors that these laws, regulations and policies pose for CRC as an energy company that operates exclusively in California.
In California, an idle well is considered a well that has not been used for two years or 更多 and has not yet been plugged and abandoned. Plugging and abandonment involves permanently sealing the well to isolate the subsurface hydrocarbon-bearing formation, so oil and gas can no longer flow through the well bore.
California law provides operators with a choice of either scheduling idle wells for plugging and abandonment at a defined time in an idle well management plan or performing additional testing and paying fees to retain the flexibility to return the idle wells to service in the future. Because of the diversity of CRC’s 文件夹 and our life-of-field plans, certain of our subsidiaries conduct additional testing and pay additional fees to retain the right to use idle wells, rather than submitting idle well management plans that require the abandonment of their idle wells at a specified future date.
Regardless of which idle well management approach our subsidiaries follow, we take our duties for future plugging and abandonment seriously. CRC regularly inspects our idle wells to ensure the equipment is maintained in a safe condition. CRC pays significant taxes and fees to the state, including idle well fees, to fund the state’s direct oversight of plugging and abandonment. For decades, the state has also required CRC and other operators to provide indemnity bonds for plugging and abandonment. In 2019, Governor 新闻om signed legislation that requires state agencies to review plugging and abandonment costs and associated bond amounts. As a public company, our asset retirement obligations, including for plugging and abandonment, are reported pursuant to accounting standards. The scale of CRC’s property ownership, oil and natural gas resources, project inventory and integrated infrastructure provides substantial cash flow and enduring value for ongoing operations, full-field development and ultimate field abandonment.