The merger between California Resources Corporation and Aera Energy in California raises compliance concerns under AB 1167 due to uncertainties about securing bonds for future oil well plugging costs.
California Oil Well Merger Raises Compliance Concerns Under AB 1167
California’s efforts to manage old oil wells face hurdles as California Resources Corporation seeks to acquire Aera Energy. They haven’t started estimating required bonds for well plugging delaying the merger and risking billions in cleanup costs for taxpayers. Environmentalists stress the need for strict oversight, according to the report of Fast Company.
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California Resources Corporation Merger Raises Environmental and Financial Concerns Ahead of Shareholder Vote
California Resources Corporation’s financial history, including recent bankruptcy to shed debt, fuels concerns about its ability to meet obligations without public cost. Despite promises of enhanced cash flows post-merger, questions persist about balancing shareholder returns with environmental responsibility.
With the June 26th shareholder vote approaching, stakeholders stress the need for AB 1167’s strict enforcement to protect California’s environmental and financial interests.
This merger’s outcome could set a precedent for managing California’s oil legacy, balancing economic and environmental interests amid worsening climate challenges.