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California Isn’t Enforcing Its Strongest-in-the-Nation Oil Well Cleanup Law on Its Largest Oil Company

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California Isn’t Enforcing Its Strongest-in-the-Nation Oil Well Cleanup Law on Its Largest Oil Company


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Last October, California passed the nation’s strongest law to address the glut of oil and gas wells that are unplugged and ownerless, many leaking pollutants into the environment.

The legislation required that, as part of any sale or transfer of wells, the purchasing company set aside enough money in financial instruments known as bonds to cover the entire cleanup cost of low-producing wells if the companies go out of business without plugging them. It was a striking departure from the piecemeal steps taken by other state legislatures and federal agencies to reduce the number of orphan wells. California lawmakers repeatedly cited ProPublica’s work on the subject as a reason to act.

But in its first major test, California regulators sidestepped the law.

The California Geologic Energy Management Division, the state’s oil regulatory body, announced in late June that the law does not apply to the merger of California Resources Corp. and Aera Energy, two of the three companies that account for the vast majority of the state’s oil and gas production. If the law had been enforced, the deal would have provided billions of dollars in new bonds to ensure taxpayers weren’t eventually left with the cleanup bill.

Department of Conservation Director David Shabazian explained the agency’s decision in a letter to Assemblymember Wendy Carrillo, the Los Angeles Democrat who sponsored the new law. The bonding requirements “do not apply to stock transfers, nor does the law make any mention of such transactions,” Shabazian wrote. In other words, because Aera is still listed as the operator of the wells, the state can’t act.

That explanation did not appease Carrillo.

“This deal is exactly why we passed AB 1167, the Orphaned Well Prevention Act,” she said in an email to ProPublica and Capital & Main. “If a company is drilling for oil in California, they should be responsible for cleaning and closing that oil well. Not enforcing the law as intended sets-up our state for a potential financial catastrophe.”

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The merger created the largest oil company in the state, with about 16,000 idle wells, which neither produce oil and gas nor are plugged and are at a higher risk of becoming orphans. That’s 40% of the total number of idle wells in the state.

“It’s an absurd interpretation of the law,” said Kyle Ferrar, who helped write AB 1167 as Western program coordinator with environmental group FracTracker Alliance. “They’re essentially creating a model to get around this bill.”

Richard Venn, a California Resources spokesperson, said in an emailed statement that the companies have plugged more than 5,000 wells and “have active and well-established programs for managing the full life cycle of wells and we have the size and financial resources to address all of our plugging obligations. The merger strengthens those resources.”

“Enormous Dereliction of Duty”

The majority of California’s remaining oil and gas production comes from western Kern County, including massive oil fields abutting Bakersfield.


Credit:
Mark Olalde/ProPublica

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In December, the California Geologic Energy Management Division wrote to the state’s oil companies notifying them that they should submit paperwork before completing “any acquisition” — agency staff bolded those words — to assist the state in determining necessary bonding levels under AB 1167. “This notice is to ensure that operators are aware of new bonding requirements that must be complied with in advance of acquiring certain wells and production facilities,” regulators wrote.

But the state concluded the California Resources and Aera merger didn’t trigger the bonding requirements because of the way it was structured.

In the state’s letter explaining regulators’ reasoning, Shabazian wrote that “if the operator of the well remains constant, changes in ownership of the operator’s holding company do not require new bonds.”

If regulators had applied the law to the merger, California Resources would have been required to put up an estimated $2.4 billion bond to guarantee Aera’s wells will be plugged, according to an analysis of state data. In comparison, that’s about eight times the total value of all outstanding cleanup bonds for all oil companies in the state.

Instead, Aera will continue operating with only a $3 million bond.

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“This particular transaction is itself tremendously consequential, potentially the most consequential transaction that the state will see,” said Kassie Siegel, a senior counsel with the environmental group the Center for Biological Diversity.

Siegel worries that the state’s “enormous dereliction of duty” opens a loophole for the industry. Regulators are “creating a roadmap for other companies to similarly evade the law,” she said.

The agency’s decision also came after Aera spent about $250,000 lobbying in California in the first quarter of the year, including on “1167 implementation,” according to the company’s lobbying disclosure form.

Neither Aera nor state regulators answered questions about the company’s lobbying.

Despite California Resources’ assertions that the company resulting from the merger is financially stable, it faces serious challenges.

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California Resources was formed when Oxy Petroleum spun off its West Coast assets, and the company has already gone through Chapter 11 bankruptcy. California Resources acknowledged in filings with the U.S. Securities and Exchange Commission that the merger left it and Aera with more than $1 billion in impending cleanup costs between them. In the records, the company also suggested that some of its key assets will reach the end of their economic lives in the coming years.

Aera, meanwhile, was sold by Shell and ExxonMobil in 2022 and ended up in the hands of German asset management group IKAV, investment fund Oaktree Capital Management and the Canada Pension Plan Investment Board.

IKAV did not respond to requests for comment, while the Canada Pension Plan Investment Board and Oaktree declined to answer questions.

The office of Gov. Gavin Newsom, who signed AB 1167 into law with a warning that it might need to be amended, also did not answer questions about whether he agreed with his agency’s interpretation of the legislation.

Aaron Cantú of Capital & Main contributed reporting.

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California man who killed estranged wife’s lover while they slept sentenced

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California man who killed estranged wife’s lover while they slept sentenced


A now 33-year-old Northern California man, who was on the run in Mexico for five nearly five years, has been sentenced for the murder of his estranged wife’s boyfriend while the couple was sleeping in her apartment in 2017.

Arturo Hernandez was 25 when he learned that a man named Anthony Freas was in a relationship with his estranged wife. His calls to her after hearing about the situation went unanswered, according to investigators.

On Nov. 19, livid over the relationship, Hernandez went to the Regency Apartments in the 5900 block of Riza Avenue, where his wife lived. He broke into the apartment where the couple was sleeping, entered her bedroom and stabbed Freas multiple times before fleeing the scene, according to a news release from the Sacramento County District Attorney’s Office.

Anthony Freas was killed while sleeping by his girlfriend’s estranged husband on Nov. 19, 2017. (Justice4Anthony/Facebook)

Officers with the Sacramento Police Department responded to the apartment and found Freas suffering from at least one stab wound to the upper body. They began life-saving measures until paramedics arrived and rushed him to a hospital, where he later died.

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Authorities launched a manhunt for Hernandez, who was considered armed and dangerous, The Sacramento Bee reported.

  • California man who killed estranged wife's lover while they slept sentenced
  • California man who killed estranged wife's lover while they slept sentenced

It was later learned that he fled to Mexico, though it is unclear where he had been hiding or with whom.

Hernandez evaded law enforcement until July 2023, when he was arrested by Mexican authorities and FBI agents. He was later extradited back to Sacramento to stand trial.

On March 24, a jury found Hernandez guilty of second-degree murder and found true the allegation that he personally used a weapon during the attack.

More than three months later, on July 10, Judge Alyson Lewis sentenced him to 16 years to life in state prison.

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Northern California hospital runs out of antivenom saving man bitten by rattlesnake

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Northern California hospital runs out of antivenom saving man bitten by rattlesnake


An Idaho father is recovering at home after a near-fatal encounter with a rattlesnake during a vacation in Northern California that required a hospital’s entire supply of antivenom to keep him alive.





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The fierce competition to get married at California’s most popular public buildings

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The fierce competition to get married at California’s most popular public buildings


The late-morning sun peeked through a gauzy veil of fog, bright laughter echoing over the giddy whisper of tulle as the brides posed for pictures outside the Santa Barbara County Courthouse.

Moments earlier, Zoë Weber and Jordan Cantor of Hollywood had traded vows above the compound’s famous Sunken Garden. The brief, heartfelt legal ceremony was made sweeter because the date, June 26, was the anniversary of the Supreme Court decision that legalized gay marriage across the U.S. in 2015.

Minutes before that, their officiant, Santa Barbara County Supervisor Roy Lee, had married off Brittney Hua, 27, and Steven Ly, 26. The Arroyo High School sweethearts made their relationship official that same day 11 years ago, an anniversary that matches their San Gabriel Valley area code, 626.

Lee was soon rushing across the lawn to join Carmen Cardenas Ayon and Santiago Martinez, both 28, who’d come up from Compton for the last-minute wedding of their dreams.

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The groom, a bus mechanic, was starting his shift around 4:30 am Wednesday morning when he happened to check the courthouse website for cancellations and saw Friday’s open call event.

“He was like ‘We can get married on Friday in Santa Barbara!’” the bride recalled. “And I was like ‘OK, let’s do it!’”

Minshi DeHuff, 35, and Andrew DeHuff, 39, of San Francisco marry at City Hall on June 26.

(Sarahbeth Maney / For The Times)

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Less than a decade ago, courthouse weddings were still the purview of camera-shy celebrities, mid-life second marriages and mother-to-be brides. But since the pandemic, their popularity has boomed — transforming certain courthouses and municipal buildings into sought-after locales to tie the knot.

Snagging an appointment to elope has become almost as difficult as scoring Olympics tickets.

In Santa Barbara, marriage appointments open 90 days in advance, with new slots released every hour while the courthouse is open. On a recent weekday, slots in October vanished in less than five minutes.

“They pretty much get picked up as soon as we release them,” said County Clerk Melinda Greene. “We have people from all over the world.”

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Here comes the bride — and another, and another and another… 

So-called “micro weddings” have emerged as an industry unto themselves amid the soaring costs of a traditional ceremony. A recent Bank of America analysis pegged the average cost of an American wedding at $36,000 — significantly more expensive than a year of rent at the median price in Los Angeles, or two years of in-state tuition at UC Berkeley.

“A lot of my elopement brides are low-key and private,” said Asha Marshall of So Fetch Photography, who specializes in courthouse ceremonies. “They don’t want to be spending all that money.”

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The shift toward boutique legal ceremonies has transformed the marriage business and the municipal buildings where such nuptials take place, turning elopement from a breezy wedding alternative into a formal contact sport.

“It books up so fast, you have to be online at the exact time [of day] you plan on having your appointment,” explained the photographer, whose viral 2024 snaps helped supercharge the Santa Barbara courthouse’s popularity on social media. “A lot of my brides get stressed out.”

A bride poses for wedding pictures on steps with a long veil and dress.

Shuting Zang, 28, is photographed on her wedding day at San Francisco City Hall.

(Sarahbeth Maney / For The Times)

Santa Barbara’s Moorish Revival hall of justice has long been Southern California’s most coveted civil marriage spot. Vice President Kamala Harris and Doug Emhoff took their vows in its storied Mural Room in 2014. Reality TV star Kourtney Kardashian and Blink-182 drummer Travis Barker were wed on the steps outside in 2022.

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But officials say demand has exploded in recent years, thanks in part to Pinterest and TikTok.

“We see dozens a day, starting at 8 o’clock in the morning,” said Lee, the county supervisor and officiant for the day, whose office is across the street. “I see them line up right there outside the doors.”

Ly, the newlywed from El Monte, said that in order to secure their spot at the Santa Barbara courthouse, he and his bride were prepared for an experience akin to buying stadium tour tickets.

“Both of us were on two separate computers, each of us trying to copy and paste the details so we could get in early,” he said.

“I let him do the first one,” his wife, Hua, said. “He didn’t get it, so I did the second one and I got it.”

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Others, including Amy Rodriguez, were left scrounging for cancellations.

“I decided one night, let me double check if there’s an opening,” the bride said as she waited for her groom-to-be near the front entrance to the courthouse, where wedding parties must pass through a metal detector. “I logged in — it was literally midnight, maybe one o’clock — and got the slot.”

The race to the clerk’s window is not limited to Santa Barbara. Other popular courthouses such as the L.A. County Courthouse in Beverly Hills and the Old County Courthouse in Santa Ana have seen a similar spikes in demand.

But no municipal building in the state compares to San Francisco City Hall, where Marilyn Monroe and Joe DiMaggio tied the knot in 1954.

A couple kisses at City Hall.

Elias Salem, 33, left, and Samuel Tyler, 33, of San Francisco pose after being married at San Francisco City Hall.

(Sarahbeth Maney / For The Times)

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Today, the gilded Beaux-Arts building sees as many as 7,000 marriage ceremonies a year. That’s two-thirds again more than its Santa Barbara rival, which does about 4,000, and roughly the same number as take place at the Norwalk headquarters of the Los Angeles County Registrar, a top contender for the country’s busiest wedding venue after New York’s Manhattan Marriage Bureau and the Office of Civil Marriages in Las Vegas.

“Over the last three to four years it’s been really dramatic,” said Cheri Tran, a popular elopement photographer in San Francisco. “When I did my first City Hall elopement six or seven years ago, we were only dodging 20 or 30 people. Now it’s hundreds.”

The TikTok-driven crowds leave many locals in the lurch. Tran nudges her brides toward the Marin County Civic Center, Frank Lloyd Wright’s final public building. Others, like photographer Anna Perlman, encourage “adventure elopements” in Joshua Tree or Big Sur.

Officials, too, have sought creative ways to relieve the pressure. On the last Friday in June, San Francisco and Santa Barbara both opened their books to scores of additional couples, ushering in a brief return to the romance of last-minute marriage.

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“There were simultaneously four or five couples trying to take a picture on the staircase,” said newlywed Daniel Tran, 28, who chanced upon one of the extra slots opened for San Francisco’s annual Pride wedding event. “One of our witnesses took a picture, and you could see couples on every floor getting married. It was a little jarring.”

Several brides and grooms stand around a grand staircase.

Newlywed couples wait their turn for photos on the grand staircase during the busiest wedding day of the year at San Francisco City Hall.

(Sarahbeth Maney / For The Times)

A similar scene played out in Santa Barbara, where officials agreed to marry couples without an appointment for “Palindrome Day,” a sought-after anniversary that reads the same backwards and forwards.

“This is the first time we’ve ever done no appointments out here,” Greene said. “We authorized overtime and we’re gonna take short lunches and we’re just gonna get as many as we can through.”

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By 11 a.m., the building’s lush courtyard was aflutter with white dresses and mascara-streaked tissues, cameras snapping from every angle as clerks flitted back and forth with marriage licenses.

Some, like the El Monte couple, had planned their nuptials for months. Others, like the pair from Compton, had pulled their ceremony together virtually overnight.

But few had managed an eleventh-hour affair quite as swiftly as Susie Villacis and Gaspar Garcia Jr., who cruised into town around 2 a.m. Friday morning after hunting down an all-inclusive civil ceremony from halfway across the state.

“To be honest, it was last minute — it was yesterday,” the bride said of the decision to marry in Santa Barbara.

With their Catholic wedding in Ecuador looming, the San Francisco couple needed a license and a civil ceremony ASAP.

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“We were going to get married at San Francisco City Hall, but the earliest appointment was September,” Villacis said. “This was the only place we could do everything in one go.”

Lee, the county supervisor, was happy to oblige. The black-robed officiant led the pair through their wedding vows, pronouncing them husband and wife as their mothers looked on with tears in their eyes.

Garcia dipped Villacis for a dramatic first kiss. Then the trio posed for a selfie.



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