Sentinel Peak, the owner of the Inglewood Oil Field, is suing the state of California in an effort to invalidate Assembly Bill 2617, a law that requires the company to halt operations in the field and plug its wells by specific deadlines or face hefty fines.
The law, signed by Gov. Gavin Newsom in September, mandates that low-production wells in the Inglewood Oil Field cease operation by March 2027, with all wells needing to be plugged by the end of 2030. Non-compliance will incur a $10,000 per month penalty for each well.
The oil field, located in Los Angeles’ Baldwin Hills and surrounding areas, contains approximately 820 unplugged wells, with 420 actively producing oil. Many of these wells are considered low-producing, yielding less than 15 barrels of oil per day.
Sentinel Peak argues that the law is unconstitutional, claiming it imposes excessive and unjust penalties on their business and that it unfairly targets their operation while excluding others in similar situations.
The company also argues that the law infringes on their right to operate legally and does not reflect actual harm.
Assemblyman Isaac Bryan, who authored the legislation, defended the law, stating that it aims to protect public health by addressing the environmental and health risks posed by toxic fumes from the oil field.
The law was designed specifically to close down the Inglewood Oil Field, which has been drilling for oil for over a century and is located near residential communities and recreational spaces. Environmental groups and officials support the legislation, emphasizing the need to reduce harmful emissions and protect local communities, especially given the limited economic benefit of the low-producing wells.
The legal battle represents a significant clash between environmental regulations and business interests, with the state asserting its right to protect public health and the environment.