2026-02-12 10:30:00 EST
California Gov. Gavin Newsom said Wednesday that 21 oil wells have been sealed at the AllenCo drilling site in Southern California, marking the end of a decades-long litigation battle between the City of Los Angeles and representatives of the energy company.
The site, located in University Park in Los Angeles, was owned by AllenCo Energy, a California-based energy company which operated the site since 2009.
Residents began reporting air quality problems, health issues and safety concerns in 2013.
The company lost operating status on Jan. 26, according to the California Secretary of State.
"This is a monumental achievement for the community who have endured an array of health issues and corporate stalling tactics for far too long," Newsom said in a news release Wednesday. "I applaud the tireless work of community activists who partnered with local and state agencies to finish the job and improve the health and safety of this community. This is a win for all Californians."
The litigation battle started in 2014, when the City of Los Angeles filed a civil enforcement action against the oil drilling site operator for "repeated violations of oil, gas, and environmental protection laws," according to the Newsom's office.
AllenCo representatives faced a plug order in 2020 as well as criminal misdemeanor charges from the city, the office said.
The turning point for the site and its 21 oil wells occurred in 2022, when the Department of Conservation's Geologic Energy Management Division, or CalGEM, and local safety officers entered the facility using bolt cutters under a court order, the governor's office added.
"The plugging of these 21 abandoned oil wells turns the page on decades of neglect and stalling tactics by this company," said Wade Crowfoot, Secretary of the California Natural Resources Agency. "Thanks to the community's hard work and perseverance, this neighborhood can finally start a new chapter free of toxic pollution."
The closures follow a sudden acceleration in oil well permits in the state due to the implementation of Senate Bill 237, which aims to stabilize the state's fuel supply chain. With 32 new drilling permits issued so far this year, California has surpassed the 17 total permits granted in 2025, according to CalGEM/Wellstar data.
California has plugged nearly 300 abandoned wells since January, Newsom's office added, filling more than one million feet underground.
-Reporting by Shaheer Naveed, snaveed@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
February 12, 2026 11:01 ET (16:01 GMT)
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