SACRAMENTO, Calif. — The owner and operator of the Inglewood oil field sued the California Petroleum Regulator on Monday over a new law that imposes stiff penalties on low-producing oil wells.
According to Sentinel Peak Resources’ lawsuit, AB 2716, authored by Rep. Isaac Bryan and signed by Gov. Gavin Newsom in September, is a law that unfairly targets one company and violates state law. It alleges excessive and inappropriate penalties for the company’s wells on a 1,000-acre oil field. It disadvantages federal law and Californians who still rely on oil and gas.
“AB 2716 was adopted this year to punish legitimate businesses operating under some of the most stringent regulations in the world,” Matt Wickersham, an attorney representing the company, said in a statement. “Sentinel Peak responsibly operates the Inglewood oil field, providing valuable energy resiliency to the Southern California market.”
The lawsuit in Los Angeles County Superior Court was filed against the California Department of Geological and Energy Management and Douglas Ito, the state’s oil and gas regulator. CalGEM spokesman Jacob Roper said the agency does not comment on pending litigation.
