What you need to know
- Sentinel Peak Resources voluntarily disclosed oil well violations and took early corrective action, including taking the wells out of operation, dedicating additional resources and management support.
- The company will pay $1.7 million within 10 days to resolve violations at 81 wells while waiving any appeal and agreeing to additional reporting and compliance requirements.
- An extra $500,000 penalty kicks in for new violations through December 31, which must be paid in 30 days.
SACRAMENTO — The Department of Conservation’s California Geologic Energy Division (CalGEM) reached a settlement with Sentinel Peak Resources (SPR) to resolve regulatory violations involving 81 oil and gas wells. Under the terms of the settlement agreement, the company will pay $1.7 million within 10 days, waive its right to litigate or appeal, and provide additional reports to the state. If new violations occur through December 31, the company must pay an additional $500,000 by January 31, 2027.
The company voluntarily disclosed the violations after a self-initiated compliance review and moved quickly and proactively to address them at its own expense. The company took the affected wells out of operation and deployed additional resources, initiated a new data management system, and made personnel changes, all while working closely with CalGEM officials.
SPR also identified the cause of the failure and implemented broader corrective measures. All 81 wells were brought into compliance, subject to the state’s determination of ongoing review.
The company’s voluntary disclosure, good-faith cooperation and diligent corrective actions were significant factors in the state’s decision to reduce further civil penalties and reach a settlement.
“This demonstrates that early disclosure and meaningful cooperation with regulators can accelerate solutions and produce better outcomes for public health and safety and the environment,” said Conservation Director Jennifer Lucchesi.
State law gives CalGEM a number of enforcement options, from ordering wells to be plugged to issuing civil penalties. A complete list of recent orders can be found here. In 2026 thus far, CalGEM has levied more than $2.8 million in fines, not including this settlement. In a separate case of an oil spill at a poorly maintained facility near Wilmington in Los Angeles, CalGEM ordered the wells closed, plugged them and cleared the facility. See the Project Plug page for more updates on that enforcement action.
View Order 1673 to Sentinel Peak Resources California LLC (PDF)