Gov. Newsom’s May budget revision allocates $200 million to plug abandoned and orphaned oil wells
California Governor Gavin Newsom on May 14 unveiled his May budget revision that allocates $200 million to plug abandoned and orphaned oil and gas wells, many located near low-income residential areas where the majority of residents are Latino and Black. In January 2020, a report by the California Council on Science & Technology revealed that California taxpayers could be on the hook for more than $500 million to plug thousands of “orphan” wells drilled and abandoned by oil and gas companies. .. Plugging all 107,000 oil and wells in California when they become idle would cost more than $9 billion, the report also found.