[Spooky23]

They wouldn’t in the case of California oil production because it’s long past peak and would have little impact if it went poof.

In general, these companies have made enough money that they are insulated from any meaningful punitive action. “Polluting Oil Well 32668 of Los Angeles, LLC” will go bankrupt if sued and disappear once it becomes untenable.

That’s no secret, and being the HN Lorax for oil extraction is both bizarre and a futile effort - the die is cast, and taxpayers will be stuck with the bill.

[hef19898]

Not the US, but I gained some insights into the legal treatment of industrial polution in Germany after working at two chemical companies. Over simplified, the last one to turn the lights off in a certain industrial site is stuck with the bill of cleaning up the mess. Decades upon decades worth of mess. Those sites are, by now, multi user sights, it is the users who are responsible for clean-up and costs, not the site owning entity.

The result is, some of the sites are kept at minimum operations just to avoid the tremendous shut-down costs.

Avoiding those costs by spining the operations off doesn't really work. The new entity would have to take the risk of shut-down costs, if it is clear those cannot be covered from the get go, it is the original entity that is in the hook. So, worst case, e.g. 3M wpupd have to declare bancruptcy. One common work around is to push those outdated operations down to other cheap skate companies, e.g. from Asia, who can buy them, including clean-up liabilities, for a symbolic price. Then they extract whatever value is left, before reselling it again. As long the overall site, or rather park, is operational this works. Which is bad for the last operator left, he risks being stuck with the bill.

By the way, those costs for clean up are accounted for as potential liabilies in the balance sheets of operating companies. Just putting everything in seperate legal entity, and letting that one go bankcrupt, doesn't really work. Which is a good thing, IMHO.

[thebradbain]

I’m sure that’s the case, but wouldn’t the courts be able to seize the relevant land in that case, too? Or pass some special blanket law stating any site that requires the government pay for clean up reverts to public (government) ownership?

At least in that case the government gets a lot of land back that can be sold for solar farms or, in higher density areas like Los Angeles, developed into higher uses like housing+parks?

[sroussey]

It’s not enough.

Skipping oil and going to power generation, you have the same thing. Spin off the power generator, leave it with no money, the land has negative value, go bankrupt. This has happened in Oxnard for example, and the city is trying to not have it happen again (good luck).

[vondur]

From what I understand there are huge deposits of untapped oil in Central California.