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State Lands Commission seeks $12.5 million to complete Rincon decommissioning; estimated total cost $22.5 million
Summary
The State Lands Commission requested $12.5 million to complete decommissioning and remediation at the former Rincon Island oil facility after a prior operator's bankruptcy left the state responsible; the commission said it has already plugged 77 wells and prepared an environmental impact report.
The State Lands Commission requested $12.5 million in Prop 4 funding to help complete decommissioning work at the former Rincon Island oil and gas facility in Ventura County, bringing the project's estimated total to roughly $22.5 million.
State Lands Commission staff told the subcommittee the commission became responsible for the site after the former operator declared bankruptcy and abandoned leases. Since then the commission has plugged and abandoned 77 wells and prepared an environmental impact report describing the decommissioning and remediation required for the island, the onshore facility and the connected pipeline. "The commission is requesting about requesting $12,500,000 to fund the decommissioning, consistent with the project analyzed in the environmental impact report," staff said.
Why it matters: decommissioning and remediation are intended to abate hazards, remove contaminated soils and restore the site to a condition suitable for future use. The commission said the requested funding would allow removal and disposal of contaminated soils on the island and onshore disposal, groundwater remediation and other activities analyzed in the EIR.
Cost estimate and risks: the commission said it has some leftover funds derived from settlements and from a bond posted by a prior operator but that funding is insufficient to complete the work. The commission noted wildfire‑driven demand for contractors and equipment could affect costs and timelines and therefore requested additional appropriation to bridge the funding gap.
Future use and tribal engagement: commission staff said that after remediation it would receive and evaluate applications for future uses of the site and would remain the landowner until a lessee is authorized. The commission described ongoing discussions with the Coastal Band of Chumash Indians, noting a memorandum of understanding executed around 2022 to explore a co‑management framework for the island and onshore areas.
Legislative reaction: committee members asked whether the commission had reasonable confidence in the $22.5 million estimate and whether cost overruns were likely. The commission said it felt confident but noted wildfire and market pressures could raise bid prices. The panel also discussed broader policy questions about historical operators’ responsibility versus state liability when firms bankrupt and leave remediation obligations behind.
Speakers quoted addressed decommissioning scope, cost estimates and tribal consultations.
