Oil Wells Near USC Permanently Sealed After 22-Year Legal Battle

California officials shut down one of the state's "most dangerous abandoned oil facilities" after a long-running lawsuit and community activism.

Published on Feb. 12, 2026

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After a 22-year campaign by residents and the city of Los Angeles, state officials have permanently sealed 21 oil wells near the University of Southern California campus. The wells, operated by AllenCo Energy, had been the source of noxious odors and health issues for nearby residents for years, leading to a lawsuit and eventual shutdown of the facility.

Why it matters

This case highlights the ongoing challenges communities face in addressing the environmental and public health impacts of legacy oil and gas infrastructure, especially in urban areas. The successful closure of these wells is a victory for the local community's long-running fight against the facility's pollution and its impact on residents' wellbeing.

The details

In 2013, residents living near the AllenCo Energy oil drilling facility, located roughly two miles from USC, began complaining about strong sulfur and gas-like odors that they claimed caused health problems like respiratory issues, nosebleeds, nausea, and sleep disruption. In 2014, the City of Los Angeles sued AllenCo over repeated violations of oil, gas, and environmental protection laws. The company was ordered to install air-monitoring systems, but attempts to restart operations failed to meet state requirements. In 2020, California's Department of Conservation ordered AllenCo to close the facility, leading to a legal battle that ended with state officials gaining access to permanently cap the 21 wells in 2024.

  • In 2013, residents near the AllenCo Energy facility began complaining about noxious odors and health issues.
  • In 2014, the City of Los Angeles sued AllenCo over environmental violations.
  • In 2020, the state ordered AllenCo to close the facility, leading to a legal battle.
  • In 2022, the Los Angeles Superior Court allowed state officials to access the facility and begin the process of shuttering the wells.
  • In January 2024, CalGEM received authorization to permanently cap the 21 wells.

The players

AllenCo Energy

The oil drilling company that operated the facility near USC that was the source of noxious odors and health issues for nearby residents.

Mike Feuer

The former City Attorney of Los Angeles who filed the lawsuit against AllenCo in 2014 over the company's repeated environmental violations.

Wade Crowfoot

The Secretary of the California Natural Resources Agency who celebrated the permanent closure of the oil wells as a victory for the local community.

Gavin Newsom

The Governor of California who praised the community activists and government agencies for their work in shutting down the dangerous oil facility.

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What they’re saying

“For years, the residents living near AllenCo have complained about noxious odors and debilitating health problems. No community should have to live this way, with windows shut, children kept indoors to protect their health, and neighbors seeking relief from intolerable conditions. That is why I've filed this lawsuit today.”

— Mike Feuer, Former City Attorney of Los Angeles (cbsnews.com)

“The plugging of these 21 abandoned oil wells turns the page on decades of neglect and stalling tactics by this company. Thanks to the community's hard work and perseverance, this neighborhood can finally start a new chapter free of toxic pollution.”

— Wade Crowfoot, Secretary of the California Natural Resources Agency (cbsnews.com)

“I applaud the tireless work of community activists who partnered with local and state agencies to finish the job and improve the health and safety of this community. This is a win for all Californians.”

— Gavin Newsom, Governor of California (cbsnews.com)

What’s next

The successful closure of the oil wells near USC is expected to improve the health and quality of life for the surrounding community, which had long suffered from the facility's environmental and public health impacts.

The takeaway

This case highlights the power of community activism and persistence in holding polluting industries accountable and securing environmental justice, even in the face of decades-long legal battles. The permanent sealing of these dangerous oil wells is a significant victory for public health and the environment in Los Angeles.