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LOS ANGELES (AP) — An oil field proprietor in Los Angeles County has initiated legal action against the state of California concerning new legislation that mandates the cessation of production and the plugging of wells, with non-compliance resulting in substantial fines.
The owner of the Inglewood Oil Field, Sentinel Peak, asserts in its lawsuit, filed recently, that the statute enacted in September by Governor Gavin Newsom infringes upon constitutional rights, as reported by the Los Angeles Times.
This measure is one of multiple legislative actions aimed at curbing pollution by empowering local authorities to regulate oil and gas operations, particularly targeting idle wells that are not active but inadequately sealed. Additionally, companies would face penalties for continued operation of low-producing wells in the Inglewood area.
The Inglewood Oil Field, spanning 1,000 acres to the southwest of downtown Los Angeles, contains approximately 820 unplugged wells, of which 420 are currently operational. Notably, around 80% of these active wells are classified as low-producing, generating less than 15 barrels of oil or 60,000 cubic feet of gas daily, according to the report.
Legal representatives for Sentinel Peak contend that the new law exemplifies an unlawful effort to compel a legitimate business to halt operations. Court documents highlight claims that the imposed fines infringe upon federal and state prohibitions against excessive penalties.
The suit characterizes the penalties as “grossly” disproportionate, noting a lack of “apparent upper limit” or correlation to any tangible harm.
While the California Department of Conservation’s Geological Energy Management Division, responsible for overseeing oil and gas activities, refrained from commenting on the lawsuit, state Assemblyman Isaac Bryan—a Democrat advocating for the legislation—emphasized his commitment to defending it.
“Our community has stood strong for decades to close this dangerous low-producing oil field, and we will stand strong in court to protect those frontline communities who have long deserved the right to live a full and healthy life,” Bryan declared to the Times. “The people of California spoke through their legislature that dangerous oil wells have no business right next to the community.”
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