AllenCo Oil Production Facility (Los Angeles)

​​​​​​​​​​​​​​​​Update​: September 28, 2022

On September 26, 2019, CalGEM issued Order number 1162​ to AllenCo Energy, Inc. (AllenCo).  AllenCo appealed the order and after a hearing before the Director’s Office of Appeals the order was affirmed on January 21, 2020. The Remedial Order requires AllenCo to provide CalGEM with a work plan for safely depressurizing wells and placing a suitable fluid in the wells which would render zero gas pressure at the wellhead.  AllenCo has not provided CalGEM with a work plan nor otherwise commenced remedial work pursuant to the Remedial Order.  

As a result of the operator’s inaction to fulfill requirements of the Remedial Order, the Department of Conservation Geologic Energy Management Division (CalGEM) made the decision to move forward with depressurization of oil and gas wells at the AllenCo Oil Production Facility 

CalGEM selected Andersen Integrated Services as the contractor for the well depressurization work at the St. James site. The contract has been finalized and executed on August 5, 2022. Necessary planning and preparatory work, including obtaining appropriate permits from the South Coast Air Quality Management District (SCAQMD) to operate the emission control equipment, is underway. CalGEM anticipates the depressurization work to begin in mid-to-late September and may continue through mid-December. 

On September 15, 2022, Andersen Integrated conducted preparatory work onsite.  This work consisted of fluid level measurements in the wells. CalGEM’s Southern District is overseeing the contractor’s work.​

B​ackground

The City of Los Angeles filed a civil enforcement action in January, 2014, alleging, in general, that AllenCo Energy Inc. was in violation of California's oil and gas laws, public health and safety laws, air and water quality protection laws, and fire and safety, and odor regulations. The Final Judgment in that case directed AllenCo to provide evidence of compliance with laws and orders, install a continuous air-monitoring system, and obtain approval from the Los Angeles City Attorney before resuming operations. 

AllenCo map cropped

In its oversight of AllenCo, CalGEM (formerly DOGGR) has routinely inspected the facility to assess it for gas leaks and wellhead pressure in attempt to ensure that the facility is being maintained in a manner that prevents, as far as possible, damage to the health and safety of California’s citizens, or damage to the environment and natural resources.    

Since August 2018, an interagency group, including CalGEM, community representatives, and interested stakeholders, led by the Los Angeles County Department of Public Health, has met regularly to report on activity at the facility and inspections.    

On March 5, 2020, the State Oil & Gas Supervisor issued a Plug and Abandonment Order to AllenCo Energy, Inc., to permanently close its Saint James drill site in South Central Los Angeles. Among other requirements, the company must plug and abandon (permanently seal) the ​21 wells. AllenCo had been seeking approval to restart production after shutting down in late 2013 for numerous violations. Read Order 1174 from the  State Oil & Gas Supervisor to AllenCo Energy , Inc. (PDF) for details. AllenCo appealed Order 1174 and the matter is currently pending.


CalGEM Documents Related to AllenCo Energy Inc.