State Changes Oil Well Requirements

Major changes in the State requirements for Oil Well “re-abandonment”, as well as the loss of redevelopment funds, have helped trigger significant rising costs for well clean-up. This is a “huge constraint” for “revenue producing” commercial development to proceed in many California cities, including Signal Hill and Huntington Beach. Each city is handling it differently.

In an article in the Signal Tribune, by Sean Belk, the reporter interviews the operations manager for Allenco Energy, Inc. who discusses the new rules and the difficulty of abandonment to the new state standards.

Read the full Article at http://www.signaltribunenewspaper.com/?p=18459

In addition HUD lending Requirements should be reviewed.

4150.2 (D) CHG-1 2 SITE ANALYSIS See: http://www.hud.gov/

D. OPERATING AND ABANDONED OIL OR GAS WELLS

Operating and abandoned oil and gas wells pose potential hazards to housing, including potential fire, explosion, spray and other pollution.

1. Existing Construction

No existing dwelling may be located closer than 300 feet from an active or planned drilling site. Note that this applies to the site boundary, not to the actual well site.

2. New or Proposed Construction

If an operating well is located in a single-family subdivision, no new or proposed construction may be built within 75 feet of the operating well unless mitigation measures are taken. This measure is designed to:

      o avoid nuisance during maintenance

 

      o diminish noise levels caused by pumping

 

    o reduce the likelihood of contamination by potential spills

The appraiser must examine the site for the existence of or any readily observable evidence of a well.

3. Abandoned Well

A letter may be obtained from the responsible authority in the state government stating that the subject well was safely and permanently abandoned.

Signal Hill Oil Wells

Ralph Kephart
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