Stepping up his fight against the fossil fuel industry, Gov. Gavin Newsom on Wednesday signed bills that would shut down the sprawling Inglewood oil field by 2030 and increase fees companies must pay to cover the cost of cleaning up 40,000 idle wells across the state.
Standing on a Los Angeles soccer field with oil wells pumping behind him, Newsom also signed a third bill that will strengthen the power of local governments to restrict oil and gas production in their jurisdictions.
“We’re at this crucial moment,” Newsom told reporters. “We’re taking on Big Oil and we have a real chance to win.”
The governor signed the bills as lawmakers in Sacramento are debating his proposal to require refineries to keep extra reserves on hand in an attempt to prevent price spikes at the pump.
Oil companies say Newsom's refinery proposal would raise gasoline prices instead of saving consumers money. One oil industry representative said the bills signed by the governor Wednesday would add another burden to motorists.
Gov. Gavin Newsom speaks at a news conference in Inglewood, where he signed legislation related to oversight of oil and gas wells in Los Angeles.
(Jason Armond / Los Angeles Times)
“Today’s press conference is simply more political theater — the passage of laws that pile on mandates and increase costs for Californians,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association. “These new laws do nothing to produce more oil here at home and, in fact, cost jobs while forcing us to import more oil from abroad.”
“More mandates will not lower gas prices or help California families,” he said.
Environmental and public health groups praised Newsom for signing the bills. “No drilling where we live,” chanted some activists who attended the news conference.
“In a victory for communities fighting for clean air and water, the bills signed today will clean up dirty, dormant wells and affirm the right of local governments to regulate oil and gas drilling in their jurisdictions,” said Nicole Ghio of Friends of the Earth.
The 1,000-acre Inglewood oil field, located mostly in the unincorporated area of Los Angeles County known as Baldwin Hills, has 835 offline wells, including 655 that are actively pumping oil, according to state data. More than 400 of those wells are producing less than 15 barrels a day.
The bill, known as AB 2716, requires that low-producing wells be plugged starting in 2026, and that all wells in the field be plugged by the end of 2030, effectively shutting down the field.
Well owners who don't comply with the law will be fined $10,000 a month. The money will go into a community fund that will finance parks and other benefits for communities within 2½ miles of the oil field.
“The Inglewood oil field is the largest urban oil field in our state,” said Assemblyman Isaac Bryan (D-Culver City), who wrote the bill. “In recent years, production has been marginal, but for decades the negative health effects surrounding it have affected the nearby community with their life expectancy.”
“Today, with Governor Newsom’s signature, we will finally close it and establish the state’s first reparations fund for frontline communities who have been organizing for years to be seen, heard and protected,” Bryan said.
Sentinel Peak Resources, a Denver-based company that owns and operates the Inglewood field, said the bill signed by Newsom “represents a dizzying amount of illegal state action, which should be of concern to industries and businesses across the state of California,” even by targeting an individual company at a specific location.
The company added that it “looks forward to successfully defending our position” in court.
Part of the oil field lies within the city limits of Culver City. Late last year, the company signed an agreement with Culver City to ban oil drilling in the city's portion of the Inglewood oil field and seal all 38 wells in that part of the field by 2030.
More than a century of oil and gas drilling in California has left more than 100,000 wells uncapped, allowing planet-warming methane and dangerous chemicals such as benzene to leak.
The cost of properly closing these wells could amount to $23 billion, according to A recent analysis by the Sierra ClubSome activists and state lawmakers argue that taxpayers could be held responsible for such spending caps if oil companies fail to take responsibility.
About 40,000 of California's uncapped wells are classified as inactive, meaning they have not produced oil or gas in at least two years.
The bill, known as AB 1866, addresses the problem of idle wells by increasing fees payable to the state and strengthening regulations to try to hold oil companies accountable for maintaining and plugging wells.
“This is a historic victory for taxpayers and communities most impacted by the harmful health effects of oil drilling in neighborhoods,” said Assemblyman Gregg Hart (D-Santa Barbara), who authored the bill.
The third bill, known as AB 3233, gives cities and counties greater authority to impose restrictions on oil and gas operations, including limiting or banning new projects in their jurisdictions. The bill is intended to address a recent court decision that had called into question the ability of local governments to regulate drilling.
“The Governor’s decision to sign this bill has given us back the right to act,” said Los Angeles City Councilmember Paul Krekorian. “We intend to continue our aggressive efforts to protect Angelenos from the dangers of fossil fuel extraction in densely populated areas.”
