The search for a way to keep a closed urban oil and natural gas facility from resuming operations went behind closed doors Friday, when the Los Angeles City Council called an executive session to discuss options with City Attorney staff.
The facility, on 23rd Street in a University Park neighborhood of apartment buildings and schools, voluntarily shut down production in late 2013 after regulatory inspections found violations. Subsequently, operator Allenco Energy entered into agreements with multiple agencies to make improvements. In March, Allenco submitted a startup plan to the California Division of Oil, Gas and Geothermal Resources, seeking approval to restart operations on Oct. 15.
But that plan faces strong opposition.
"There is a chorus calling for the closure of this well," said LA City Councilman Gil Cedillo, in whose district the Allenco facility is located.
Before the shutdown, neighbors complained of powerful petroleum smells and illness which included headaches, sore throats, respiratory ailments.
Cedillo likened it to what Porter Ranch experienced after the 2015 natural gas leak that continued four months before it was sealed.
"We fully expect that the residents will be poisoned all over again should they (Allenco) reopen," said Rabeya Sen, policy director for Esperanza Community Housing, which operates the Alegria apartment building across 23rd Street from the facility.
Allenco agreed to take certain steps under a 2016 Consent Judgment settling a lawsuit filed by the city of Los Angeles. Restarting will also require sign off from multiple agencies, including the California Air Resources Board, the EPA, and Los Angeles County Department of Public Health.
Apart from its filings with regulatory agencies, Allenco has not made make public statements on its plans, and declined a request for comment again Friday.
Cedillo believes the property should be converted for another use, possibly as a park or new housing. It is adjacent to the campus of Mount St. Mary's University, and the Lanterman High School for students with moderate to severe disabilities.
Allenco does not own the property, but leases it from the Roman Catholic Archdiocese of Los Angeles.
"We are working 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," Itzel Magana, media and public relations manager for the archdiocese, told the Los Angeles Times last month.
Cedillo said he has spoken about it with the Archbishop, the Most Rev. Jose H. Gomez.
"We are in agreement that we're looking for a resolution and for more compatible use," Cedillo said.
Last month, the operator of another urban oil production facility not far away on Jefferson Blvd., Sentinel Peak Resources, gave notice the facility would be closed voluntarily and prepared for another use.
Los Angeles was once dotted with thousands of wells, oil being the region's first boom industry before moviemakers discovered Hollywood. Most of the wells have long since been shut down. However, within its boundaries, the city still counts 330 oil districts, according to a city document reviewed by the NBC4 I-Team.
Last December, as city officials began exploring means to keep the 23rd Street facility from reopening, consideration was given to dissolving the designated district in which it is located. Officials concluded that would not affect existing rights, and therefore be ineffective.
After Friday's closed door session, Cedillo said the council discussed other possible strategies with legal staff.
"I've asked the city attorney to narrow the options, and just give us what they believe is the most efficient, effective way for us to immediately and permanently close the site," Cedillo said.
He was asked if taking new action to thwart Allenco's plan is akin to "moving the goal posts" after the company took what it saw as the required steps to comply with what the city's demanded two years ago.
"If we're moving the goal posts toward safety and security and good health and compatible use, then it's time to move the goal posts," Cedillo said.
