California Permanently Closes AllenCo Oil Wells, Ending Years of Community Harm

SACRAMENTO — Gov. Newsom announced Feb. 12 that all 21 oil wells at the notorious AllenCo site in University Park, Los Angeles, are now permanently plugged and sealed—marking the end of a decades-long battle led by residents, advocates, and state regulators to protect community health and clean up one of California’s most dangerous abandoned oil facilities.

Located in South Central Los Angeles, the AllenCo facility sat in a densely populated community near homes, schools, and hospitals. For many years, residents reported air quality problems, health issues, and safety concerns while the operator repeatedly violated environmental protection laws. Plugging and sealing this oil well is an important step to protect the health of those who live and work nearby.

The City of Los Angeles first filed a civil enforcement action against the oil operator in 2014 for repeated violations of oil, gas, and environmental protection laws. When the company ignored an order from CalGEM to remediate hazardous conditions, CalGEM issued a plug order in 2020 to permanently seal the wells. The Los Angeles city attorney also pursued criminal misdemeanor charges against the company.

In 2022, after continued obstruction by the operator, the Department of Conservation’s Geologic Energy Management Division or CalGEM and local safety officers gained entry using bolt cutters under a court order — a turning point in the years-long fight for accountability.

The AllenCo closure was made possible, in part, through major investments in California’s orphaned well cleanup. In the 2022-23 State Budget, Gov. Newsom and legislative leaders first set aside significant funding to plug and seal old, abandoned oil wells and facilities across the state.
President Biden’s Bipartisan Infrastructure Investment and Jobs Act provided federal support. CalGEM conducted a statewide inventory to identify the most dangerous abandoned wells, and AllenCo’s history of violations put these 21 wells at the top of the priority list.