Governor Newsom announces permanent closure of AllenCo oil wells, ending years of community harm

“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 Newsom administration won’t stop fighting for projects across the state that protect our kids and the most vulnerable from the worst effects of fossil fuels.”

A community wins after years of resistance

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 (CalGEM) and local safety officers gained entry using bolt cutters under a court order — a dramatic turning point in the years-long fight for accountability.

Major state investment in environmental justice

The AllenCo closure was made possible, in part, through major investments in California’s orphaned well cleanup. In the 2022-23 State Budget, Governor 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. 

Protecting communities across California

The AllenCo closure is part of CalGEM’s program to identify and permanently seal high-risk, abandoned oil and gas wells to protect communities and the environment. The program includes air quality monitoring, community engagement, and the removal of hazardous facilities.

Through January 2025, California has plugged nearly 300 abandoned wells, filling more than one million feet underground, and eliminating ongoing threats to groundwater, air quality, and public safety in communities that have borne the burden of irresponsible oil and gas operations.

Beyond addressing abandoned oil wells, California has also strengthened oversight of ongoing production. SB 237 ensures that public health and environmental protections remain integrated into oil and gas oversight. In addition, under SB 1137, the state established 3,200-foot health protection zones around new oil and gas wells to shield communities—including homes, schools, hospitals, and parks—from harmful pollution. The state is committed to protecting Californians from the health impacts of ongoing oil and gas extraction.