City Council Approves Tentative Settlement with Sentinel Peak Resources on Oil Drilling

On November 14, 2022, the City Council approved a settlement framework related to the Oil Termination Ordinance (“Ordinance”), which was adopted in late 2021, and authorized continued discussions with Sentinel Peak Resources (“Sentinel”) toward completion of a tentative settlement agreement to address the Culver City portion of the Inglewood Oil Field (“City IOF”). The approved settlement framework includes, but is not limited to, the following provisions relating to the closure of the City IOF:

In accordance with the Ordinance, the drilling of new wells or re-drilling or deepening of existing wells is prohibited, effective from and after the effective date of the Ordinance, November 24, 2021.
The initial plugging and abandonment of a minimum of 15 wells by December 31, 2027 would be required at a rate of a minimum of three wells per year over the five-year period between 2023-2027.
The plugging and abandonment of all remaining wells and the closure of the City IOF would be required by December 31, 2029.
Extension(s) to comply with the 2029 closure date may be authorized under specific special circumstances, provided no such extension(s) would be approved beyond December 31, 2032.
Additional provisions will be addressed during the continued discussions. The parties will work diligently in an effort to complete a tentative settlement agreement by approximately December 31, 2022. As such, the existing Tolling Agreement with Sentinel has been extended for an additional period of time, currently through January 17, 2023.

For more information and periodic updates regarding this matter, please visit the City’s IOF webpage.

If you have any questions or comments, please email Heather Baker, City Attorney or call her at (310) 253-5660; or email Melanie Doran Traxler, Contract Project Manager or call her at (818) 248-7158.

City of Culver City

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