Stepping up his fight against the fossil fuel industry, Gov. Gavin Newsom signed a bill Wednesday that would shut down the 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 football field with oil wells pumping behind him, Newsom also signed a third bill that would strengthen the power of local governments to limit oil and gas production in their areas.
“We are here at this important moment,” Newsom told reporters. “We are taking Big Oil and have a real chance to win.”
The governor signed the bill as lawmakers in Sacramento debated a proposal to force refineries to keep extra reserves on hand in an effort to avoid price spikes at the pump.
Oil companies say Newsom’s refinery proposal will increase gas prices instead of saving consumers money. Oil industry representatives say the bill the governor signed Wednesday will add another burden to motorists.
Governor Gavin Newsom spoke at a news conference in Inglewood, where he signed legislation related to oil and gas well inspections in Los Angeles.
(Jason Armond/Los Angeles Times)
“Today’s press conference is just more political theater – signing a bill that piles on the mandate and drives up costs for Californians,” said Catherine Reheis-Boyd, president of the Western States Petroleum Assn. “This new law does nothing to produce more oil at home and, in fact, costs jobs while forcing us to bring in more oil from abroad.”
“More mandates will not lower gas prices or help California families,” he said.
Environmental health groups and the public praised Newsom for signing the bill. “No drilling where we live” chanted some supporters attending the news conference.
“In a victory for communities fighting for clean air and water, the bill signed today will clean up dirty idle wells and affirm the right of local governments to regulate oil and gas drilling within their jurisdictions,” said Nicole Ghio, at Friends of the Earth. .
The 1,000-hectare Inglewood Oil Field, which is located mostly in the unincorporated area of ​​Los Angeles County known as Baldwin Hills, has 835 unplugged wells, including 655 that are actively pumping oil, according to state data. More than 400 of these wells produce less than 15 barrels per day.
The bill, known as AB 2716, requires that low-producing wells be plugged, beginning in 2026. And all wells in the field must be plugged by the end of 2030, effectively shutting down the field.
Well owners who do not comply with the law must pay a fine of $10,000 per month. The money will go into a community fund that will pay for 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 country,” said Assemblyman Isaac Bryan (D-Culver City), who authored the bill. “Production in recent years has been low, but over the decades, the negative health impact around it has affected the public close to life expectancy.”
“Today, with Gov. Newsom’s signature, we will finally close it down and establish the state’s first repair fund for the front-line communities that have managed for years to be seen, heard, and protected,” Bryan said.
Sentinel Peak Resources, the Denver-based company that owns and operates the Inglewood field, said the bill signed by Newsom “represents a number of illegal state actions, as industry and businesses across the state of California must do,” including by targeting individual companies in specific locations.
The company added that it “hopes to successfully defend our position” in court.
Part of the oil field is within the boundaries 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 to close 38 wells in that portion of the field by 2030.
More than a century of oil and gas drilling in California has left more than 100,000 wells untapped, allowing them to leak planet-warming methane and dangerous chemicals, such as benzene.
The cost of properly capping the well could be as much as $23 billion, according to the report new Sierra Club analysis. Some activists and state legislators argue that taxpayers could be responsible for covering those costs if oil companies fail to take responsibility.
About 40,000 uncapped wells in California are classified as idle, meaning they have not produced oil or gas for at least two years.
The bill, known as AB 1866, addresses idle wells by increasing fees to be paid to the state and strengthening regulations to try to make oil companies responsible for maintaining and plugging the wells.
“This is an important victory for taxpayers and communities most affected by the harmful health impacts of environmental oil drilling,” said Assemblyman Gregg Hart (D-Santa Barbara), who authored the bill.
The third bill, known as AB 3233, gives cities and counties more authority to impose restrictions on oil and gas operations, including by limiting or prohibiting new development in their jurisdictions. The bill is intended to address recent court rulings challenging local governments’ ability to regulate drilling.
“The governor’s decision to sign this law has restored our right to action,” said Los Angeles City Councilman Paul Krekorian. “We intend to continue our aggressive efforts to protect Angelenos from the dangers of fossil fuel extraction in densely populated areas.”
