CalGEM Compliance for Oil & Gas Operators

California's Geologic Energy Management Division (CalGEM) oversees the drilling, operation, and abandonment of oil and gas wells across the state, with regulations that span well permitting, idle well management, casing integrity testing, health protection zones, environmental monitoring, and more. For operators, staying compliant requires managing multiple deadlines, technical requirements, and reporting obligations - all under increasing regulatory scrutiny.

CalGEM Compliance Deadlines

March 16 - Annual submission of Production Reports

May 1 - Annual Payment of Idle Well Fees or submission of Idle Well Management Plan

July 1 - Annual submission of SB 1137 Sensitive Receptor Inventory & Maps

July 1, 2026 - All facilities within SB 1137 protection zones must meet new safety requirements

SB 1137 Health Protection Zones (HPZs)

California Senate Bill 1137 set requirements for protecting public health by creating a minimum health and safety distance of 3,200 feet between sensitive receptors and an oil and gas production well or facility. Oil and gas facility operators within this distance from a sensitive receptor are subject to a number of requirements from CalGEM and the California Air Resources Board.

  • A Health Protection Zone (HPZ) is the area within 3,200 feet of a sensitive receptor (residences, schools, healthcare facilities, community centers). Operators must identify whether their facilities fall within these zones and comply with a broad set of health, safety, and operational restrictions. SB 1137 bans the development of new oil and gas wells in the HPZ except under limited circumstances.

  • All operators must submit an annual sensitive receptor inventory and map by July 1 of each year, identifying all wellheads, proposed wellheads, and production facilities, along with a statement based on their proximity to HPZs.

  • Operators with a production facility or well in an HPZ must develop a leak detection and response plan for certain chemicals, with performance standards set by the California Air Resources Board (ARB). Plans must be submitted to CalGEM by July 1, 2028, and must include:

    • A continuously operating emissions detection system designed to rapidly identify leaks before they impact surrounding communities

    • An effective and reliable alarm system that alerts the operator when a leak is detected

    • A response protocol for the rapid identification and repair of leaks

    • Provisions for notifying local communities when a leak source cannot be identified or repaired within 48 hours

Idle Well Management

CalGEM's Idle Well Program requires operators of wells that are no longer actively producing (for two years or more) to either pay annual fees or commit to a plan for plugging and abandoning the wells, with the goal of reducing the inventory of idle wells that pose environmental and public safety risks across California.

  • Operators with idle wells must either pay annual idle well fees to CalGEM by May 1 each year, or file an Idle Well Management Plan (IWMP) as an alternative. Fees are assessed per well based on years idle, ranging from $1,000 for wells idle less than 3 years up to $22,500 for wells idle 20 or more years. By filing an IWMP, the operator commits to eliminating a set number of wells annually over a plan period of up to 8 years, subject to CalGEM approval and annual review. Failure to comply results in immediate assessment of idle well fees and a two-year prohibition on filing a new IWMP.

  • CalGEM requires idle wells to undergo regular testing to verify mechanical integrity and protect groundwater, including fluid-level tests, casing pressure tests, and clean-out tags. Wells that fail testing must be remediated or scheduled for plugging and abandonment within 12 months. Wells on an approved IWMP or Testing Waiver Plan are exempt from testing requirements.

  • Once a well has been idle for 15 years, operators must submit a one-time 15-Year Engineering Analysis to CalGEM demonstrating that the well is viable to return to operation. If CalGEM determines the well is not viable, the operator must plug and abandon it within 12 months. Wells scheduled for plugging and abandonment under an approved IWMP or Testing Waiver Plan are exempt from this requirement.

Decommissioning Cost Estimates

California law requires all oil and gas operators to submit cost estimate reports to CalGEM covering the plugging and abandonment of wells, decommissioning of production facilities, and site remediation. Reporting was phased in on a staggered schedule: the deadline for lower-production operators (Group 1) was January 1, 2025, higher-production operators (Group 2) are due July 1, 2026, and offshore operations are due July 1, 2027. Estimates may be prepared using CalGEM's prescribed cost methodology based on site-specific characteristics, or based on third-party contractor cost documentation.

  • Operators must estimate the cost to permanently plug and abandon all wells in their inventory, covering all work required to seal the well with cement and secure the surface. Estimates can be prepared using CalGEM's prescribed cost methodology based on well-specific characteristics (Method 1), or based on third-party contractor cost documentation.

  • Operators must estimate the cost to safely remove all onshore surface and offshore production facility equipment attendant to their wells. As with well abandonment, operators may use either the CalGEM prescribed methodology or a third-party cost estimate supported by documentation.

  • Site remediation estimates cover all restoration activities required after plugging and abandonment, bringing the well site, production facility, or lease location back to its natural state as near as practicable. Cost calculations must be determined in accordance with generally accepted accounting principles. All three estimate components are submitted together via CalGEM's WellSTAR database.

Contact Us

CalGEM compliance is complex, and staying current across multiple programs and deadlines requires dedicated expertise. Beacon West can serve as your designated CalGEM agent, coordinating all communications with the division on your behalf. Our team is experienced in navigating CalGEM's WellSTAR database and has directly supported operators with SB 1137 sensitive receptor inventories and mapping, Idle Well Management Plans, and decommissioning cost estimates. Fill out the contact form to get in touch.