The Future of Surface Oil Drilling in Beverly Hills

Oil has been pumped out of Beverly Hills since 1900, 14 years before the City was incorporated. Currently one surface oil drilling site remains in the city limits: , notable for a tower platform on Olympic Boulevard covered in colorful, flowered fabric.

The high school drilling site is operated by Venoco, Inc., which acquired the well in 1995. Several other wells extract oil underneath Beverly Hills by slant drilling from outside of the city limits—earning royalties for numerous property owners. 

Back in January, the City Council preventing any new surface drilling and providing for the shutdown of the remaining oil well site when Venoco's contract expires at the end of 2016. Over the next year, the City will develop permanent regulations on extracting petroleum products from Beverly Hills. 

The City Council determined that surface drilling is harmful to the City's welfare due to the impact of noise, odors, and dust on the school, nearby homes and businesses. In addition, the Council felt that oil well drilling is incompatible with the Beverly Hill's image as a family community with a high standard of living, and a world-class destination with high end retail stores and hotels.   

Recognizing that many property owners in Beverly Hills earn income from the mineral rights under their land, the City will continue to allow extraction of oil in Beverly Hills from drilling sites outside the city limits. These sites must comply with the regulations of the city or county where the drill site exists. 

School district officials have expressed concerns about the potential loss of revenue when the well is shut down. At an Aug. 9, 2011 joint meeting of the school district and City Council, the two groups agreed to work together to find a way to . The current interim ordinance allows the School District to request an extension of time to allow oil drilling to continue on the School District property after 2016 if the extension is in the public interest. The City Council has discussed the oil drilling issue at four recent public meetings that were recorded and are available on the website: 

October 5, 2010 Study Session—Discussion of proposed updates to oil drilling regulations 

January 25, 2011 Formal Meeting—Adoption of the interim ordinance 

March 1, 2011 Formal Meeting—Extension of the interim ordinance 

July 7, 2011 Study Session—Update on discussions with the school district

This blog is intended as a means of keeping the community informed about City government. The views expressed in this article are those of the author and do not reflect the views of Beverly Hills Patch.