Culver City and oil company Sentinel Peak Resources have inked a deal setting the stage for the company's exit from the local oil patch, it was revealed Wednesday. The agreement puts an end to the potential legal showdown over the city's oil termination ordinance, which mandates the shutdown of oil operations on the Culver City portion of the Inglewood Oil Field by 2026.
The ordinance, which has been a subject of negotiation since its adoption back in October 2021, puts the kibosh on any new drilling and the plugging of existing wells, according to a statement by the city. Mayor Albert Vera celebrated the agreement, stating, “Culver City appreciates the cooperative spirit in which Sentinel Peak Resources has engaged with the City," and expressed his eagerness for the future redevelopment of the area.
As per the finalized terms, Sentinel is tasked with plugging at least 15 wells by the end of 2027 and wrapping up the closure of all operations by the end of 2029. The deal carves out a possibility for an extension to 2032 under particular circumstances, though Sentinel must keep up with insurance coverage and maintain performance bonds correlating with the real costs of the termination work.
Envisioning the future beyond oil, the city supports transforming the oil field into a mix of residential, commercial, and recreational spaces. The process will abide by strict environmental and local regulations and call for comprehensive public and stakeholder input, the city announced. Sentinel's current activities shouldn't exceed maintenance that steers clear of further drilling, with the whole shebang slated for a 2029 curtain call.
