California Cost Overruns for Non-Operator's Non-Consent Option

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Multi-State
Control #:
US-OG-700
Format:
Word; 
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Description

This form provides that when Operator, in good faith, believes or determines that the actual costs for any Drilling, Reworking, Sidetracking, Deepening, or Plugging Back operation conducted under this Agreement will exceed a designated of the costs estimated for the operation on the approved AFE, the Operator will give prompt notice by telephone to the other Parties participating in the operation, as well as delivering a supplemental AFE estimating the costs necessary to complete the operation. Each Party receiving the supplemental AFE shall have forty-eight from receipt of the notice to elect to approve Operators recommendation or propose an alternative operation.

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FAQ

Gavin Newsom unveiled his scaled down blueprint for the California bullet train four years ago, he proposed building a 171-mile starter segment in the Central Valley that would begin operating in 2030 and cost $22.8 billion.

2015 ? A ground breaking ceremony was held in Fresno to signify the beginning on HSR construction.

? The rail authority said the goal is to have the section between Bakersfield and Merced operational between 2030 and 2033. CNBC visited California's Central Valley, where construction is underway, to find out what it will take to complete the nation's largest infrastructure project. Watch the video for the full story.

Since 2003, when China operated its first high-speed rail line from Qinhuangdao to Shenyang (now part of the Beijing-Harbin Railway), its high-speed rail network has been expanding rapidly. Currently, China has the longest HSR network in the world.

It Takes Decades to Plan and Build However, because of cost overruns and the pandemic, the authority now projects completion no earlier than 2033, nearly 40 years after planning began. Not all high??speed rail lines may take this long, but two decades seems a likely minimum.

The price tag for the rail system has risen to $128 billion, ing to a California High Speed Rail Authority project update report ? a nearly 22% uptick from the previous figure of $105 billion from last year and a far cry from the $33 billion cost voters approved in 2008.

China's high speed rail with a maximum speed of 350 km/h has a typical infrastructure unit cost of about US$ 17-21m per km, with a high ratio of viaducts and tunnels, as compared with US$25-39 m per km in Europe and as high as US$ 56m per km currently estimated in California.

China has accomplished a remarkable feat in building over 10,000km of high-speed lines in six to seven years at a unit cost that is lower than those of similar projects in other countries.

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California Cost Overruns for Non-Operator's Non-Consent Option