Escalating his fight against the fossil fuel industry, Gov. Gavin Newsom signed bills Wednesday that will shut down the sprawling Inglewood Oil Field by 2030 and ramp up fees that 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 local government’s power to restrict oil and gas production in their jurisdictions.
“We are here at this pivotal moment,” Newsom told reporters. “We are taking on Big Oil and having a real chance of winning.”
The governor signed the bills as lawmakers in Sacramento are debating his proposal to force refineries to keep extra reserves on hand in an attempt to avoid price spikes at the pump.
Oil companies say Newsom’s refinery proposal would increase gas prices rather than save consumers money. An oil industry representative said the bills signed by the governor Wednesday would add yet another burden to motorists.
“Today’s press conference is just more political theater — signing bills that pile on mandates and drive up costs for Californians,” said Catherine Reheis-Boyd, president of the Western States Petroleum Assn. “These new laws do nothing to produce more oil here at home and, in fact, cost jobs while forcing us to bring in more oil from overseas.”
“More mandates won’t lower gas prices or help California families,” she said.
Environmental and public health groups praised Newsom for signing the bills. “No drilling where we’re living” chanted some advocates attending the news conference.
“In a win for communities fighting for clean air and water, the bills signed today will clean up dirty idle wells and affirm the right of local governments to regulate oil and gas drilling in their jurisdictions,” said Nicole Ghio, at Friends of the Earth.
The 1,000-acre 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 those wells produce less than 15 barrels a day.
The bill known as AB 2716 requires the low-producing wells to be plugged, beginning in 2026. And all wells in the field must be plugged by the end of 2030, effectively shutting down the field.
Owners of wells not complying with the law must pay a fine of $10,000 each month. The money will go into a community fund that will pay for parks and other benefits for the 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. “Production in recent years has been marginal, but for decades the negative health impacts surrounding it have cost the nearby community with their life expectancy.”
“Today, with Gov. Newsom’s signature, we will finally shut it down and establish the state’s first repair fund for the front-line 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 number of illegal state actions, the likes of which should concern industries and businesses throughout the state of California,” including by targeting an individual company in a specific location.
The company added that it “looks forward to successfully defending our position” in court.
Part of the oil field is within the 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 the 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 unplugged, allowing them to leak planet-warming methane and dangerous chemicals, such as benzene.
The cost of properly closing these wells could run as high as $23 billion, according to a recent Sierra Club analysis. Some activists and state legislators argue that taxpayers could be on the hook for those capping expenses if oil companies fail to take responsibility.
About 40,000 of California’s uncapped wells are classified as idle, meaning they haven’t produced any oil or gas in at least two years.
The bill known as AB 1866 addresses the idle wells by increasing fees that must be paid to the state and strengthening regulations to try to make oil companies accountable for maintaining and plugging the wells.
“This is a landmark victory for taxpayers and communities most affected by the harmful health impacts of neighborhood oil drilling,“ said Assemblyman Gregg Hart (D-Santa Barbara), who wrote the bill.
The third bill, known as AB 3233, gives cities and counties greater authority to impose restrictions on oil and gas operations, including by limiting or prohibiting new developments in their jurisdictions. The bill is aimed at addressing a recent court decision that had challenged local governments’ ability to regulate drilling.
“The governor’s decision to sign this legislation has restored our right to act,” said Los Angeles City Councilmember Paul Krekorian. “We intend to continue our aggressive efforts to protect Angelenos from the hazards of fossil fuel extraction in densely populated areas.”
