Oil field settlement reached at last

A settlement over oil drilling in the Inglewood Oilfield near Culver City was reached on July 5, ending more than three years of legal wrangling between the operator of the oil field, a number of citizens groups and the Culver City municipal government.

According to Los Angeles County officials, the terms of the agreement dictate that there will be a reduction in oil wells, stronger restrictions on new wells and a series of measures to protect air quality, a mandatory, recurring health and environmental justice assessment, reduction in noise and beautification of the surrounding landscape.

“This settlement is the victory area residents and I have sought after working together for nearly five years,” said Second District Supervisor Mark Ridley-Thomas, who represents Culver City.

Culver City joined three citizens groups in filing legal action against Plains, Exploration and Production (PXP) and the county after the Board of Supervisors approved a land-use ordinance and an environmental impact report for the oil fields on Nov. 4, 2008.

Several lawsuits were filed immediately after Culver City officials and residents of Culver City’s hillside communities, as well as Baldwin Hills and Windsor Hills homeowners, complained that the EIR did not offer sufficient protections and the environmental document had not been circulated with enough time for a wide-spread response.

The EIR was circulated for 60 days – 15 days more than required by the California Environmental Quality Act.

PXP, the operator of the oilfield, argued they were voluntarily agreeing to submit to stricter regulations than already existed and the new standards gave homeowners on both sides of the hill more protections.

“Those who live near the oil field will see fewer wells, hear less noise from drilling and have in place stronger air quality protections than exist today,” said Ridley-Thomas, who was elected in 2008. “I’m confident this set of reforms is far more thorough than what could have been achieved through a contentious and protracted court battle.”

Resentment against the oil company dates back several years with homeowners in Culver Crest, who accused PXP of concealing its desire to drill wells near their homes without notification in 2005. The following year, the hillside residents were awakened after a well released fumes into the air that made them nauseous.

That action prompted then-Supervisor Yvonne Braithwaite Burke to call for an emergency ordinance that placed a two–year moratorium on oil drilling in the Inglewood field.

Culver City residents were further outraged when the News broke the story of a budding oil scandal after it was discovered that an employee of the Department of Oil, Gas and Geothermal Resources had engaged in unethical conduct by fast-tracking oil permits for a company in which he owned stock.

Emails from the engineer, Floyd Leeson, described how he was in contact with PXP officials after he learned that DOGGR, which regulates oil exploration and permitting in California, was planning to place a hold on the company’s 24 oil permits.

Department of Conservation Director Bridget Luther cancelled the permits when the state Bureau of Audits initiated an investigation after a whistleblower contacted them about Leeson.

“I hereby order that the permits to conduct well operations issued to Plains, Exploration & Production Co. on Apr. 24, 25, and 26, 2006, for the following wells in sections 7, 8, 16, and 17,T.2S, R.14W, SBB&M, Inglewood Oilfield, Los Angeles County, are cancelled without prejudice to the future applications with respect to these wells,” wrote Luther on May 26, 2006. “This action is consistent with the spirit of the standstill and tolling agreement between Los Angeles County, the city of Culver City, PXP and the Division of Oil, Gas and Geothermal Resources, which took affect [sic] as of May 9, 2006.”

A three-man panel, led by former Los Angeles district attorney and state attorney general John Van de Kamp was appointed by then-Resources Agency Director Mike Crisman to design new ethical guidelines for DOGGR employees.

Leeson, who was also accused of soliciting donations for his wife’s charity from companies he helped regulate, among several other civil and possible criminal infractions, has resigned.

Culver City is in the midst of developing its own oil-drilling blueprint and when PXP submitted permits to explore four wells in Culver City in 2009, the city filed an injunction to halt the process. A court ruled in the city’s favor and a moratorium was placed on new drilling for a year and was renewed by the council last year.

The moratorium expires on Aug. 21.

County attorneys were not available for comment as the News went to press.

The 2008 ordinance provided provisions for review and periodic updates of the ordinance. Councilman Andrew Weissman called the news that an agreement had been reached “a pretty terrific result” and added that the new amendments likely would not have been achieved had the case gone to trial.

Ridley-Thomas, who had pledged to seek additional measures for his constituents during his campaign and after his election to the board, credited state Attorney General Kamala Harris with assisting all parties in stepping into a highly charged emotional situation and creating an atmosphere where a settlement could be reached.

“The settlement is a good one for the city and an even better one for the community,” Weissman said.

“The arrival of the attorney general’s experts marked a turning point,” Ridley-Thomas said. “They brought cool heads to a heated environment and in doing so, guided us all to a solution that gives all sides more than we would have gotten from a court battle.”

The settlement will be implemented immediately. PXP did not respond to inquiries for comment.