The owner of an oil field located in Los Angeles County has initiated legal action against the state of California, challenging legislation mandating the cessation of production and the sealing of its wells, under threat of significant fines.

Sentinel Peak, the proprietor of the Inglewood Oil Field, contends that the recently enacted law, which was approved by Governor Gavin Newsom in September, violates constitutional provisions, as reported by local media.

This law is part of a broader set of regulations designed to mitigate pollution by empowering local authorities to tighten control over oil and gas operations. It specifically targets the closure of inactive wells that haven’t been adequately sealed, as well as penalizing companies for continuing to operate underperforming oil wells within the Inglewood area.

The Inglewood Oil Field spans approximately 1,000 acres to the southwest of downtown Los Angeles, harboring around 820 unplugged wells, of which 420 are actively extracting resources. It is noted that nearly 80% of these operational wells are categorized as low-producing, each yielding less than 15 barrels of oil or 60,000 cubic feet of gas daily, according to reports.

Attorneys representing Sentinel Peak argue that the new law represents an unlawful effort to compel a legitimate business to halt its operations. Court documents claim that the imposition of mandatory fines infringes on both federal and state regulations that prohibit excessive penalties.

The lawsuit describes the proposed penalties as “grossly” disproportionate, noting a lack of defined limits or connections to any actual damages incurred.

The Geological Energy Management Division of the California Department of Conservation, which oversees oil and gas activities in the state, refrained from commenting on the ongoing lawsuit.

In response to the legal challenge, Assemblyman Isaac Bryan, a Democrat representing the district that includes the oil field, affirmed his commitment to uphold the law.

“Our community has consistently advocated for the closure of this hazardous low-producing oil field over the years, and we will vigorously defend our position in court to protect those communities that have long deserved the right to live healthy lives,” Bryan expressed. He emphasized that the people of California have made their voices clear through legislative action—expressing that unsafe oil wells should not be situated adjacent to residential areas.