LA city leaders announced Wednesday that at least a handful of oil wells on a shuttered South Los Angeles drilling site can no longer be operated after the expiration of a city agreement with the company, AlpertReyes reports.
Los Angeles City Atty. Mike Feuer then sued and obtained a court order requiring AllenCo to followif it wanted to restart operations there. AllenCo also had to pay $1.25 million in penalties — and had already spent more than $1 million on other penalties and improvements.
City officials said Wednesday that the expiration of a city lease would prevent part of the site from resuming oil operations, though other wells would not be affected. That city lease had expired, City Petroleum Administrator Uduak-Joe Ntuk wrote in a letter to the company, because of a lack of petroleum production and payments to the city.
In a statement, the archdiocese said it “continues to cooperate and work with the city and AllenCo to find an alternative use for the site that is in the best interest of the community, royalty holders and all other stakeholders.”Cedillo, who represents the area around the site and backs the idea of permanently closing it, said that by not renewing the expired lease, “we reaffirm our commitment to our residents.
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