Oil Company in Talks to Restart Drilling Operations

Los Angeles, CA – AllenCo Energy is trying to negotiate a settlement with the Los Angeles city attorney’s office as part of an effort to resume operations of an urban oil field that prompted hundreds of complaints of nosebleeds and respiratory ailments due to its emissions, officials confirmed Wednesday.

AllenCo voluntarily halted oil production at the site, in a mostly low-income South Los Angeles neighborhood about half a mile north of USC, two years ago at the request of U.S. Sen. Barbara Boxer (D-Calif.), and after health and environmental safety authorities were sickened during a tour of the property.

Over the last two years, AllenCo has made improvements at its facility, but many of those modifications still have not been tested or approved by federal, state and local agencies, officials said.

LA City Fire Department had issued citations for failing to repair and maintain fire protection systems. State safety inspectors cited the company for failing to inventory and label hazardous materials. Water quality inspectors noted chemical containers stored outdoors without covers.

The U.S. Environmental Protection Agency (EPA) fined the company $99,000 in July 2014 for failing to take steps to prevent the release of toxic emissions.