By admin 
An oil company paid the state $1.7 million for failing to conduct routine tests on 81 injection wells — 42 of which were located in San Luis Obispo County, according to legal documents.
Read more Car found after Amber Alert issued for CA girl, father suspected of incest
Sentinel Peak Resources CA LLC operates an oil field northeast of Arroyo Grande off of Price Canyon Road.
State law requires the company to conduct mechanical integrity testing on injection wells, which ensures that the well is intact, so fluid in the well doesn’t spill into the soil or groundwater.
Phase 1, which tests a well’s casing pressure, must be completed every five years. Phase 2, which tests fluid management, must be completed annually or every two years.
Sentinel Peak Resources had a deadline of April 1, 2024, for Phase 1 testing on 81 of its wells in San Luis Obispo, Santa Barbara, Fresno, Kern and Los Angeles counties, legal documents said.
The California Geologic Energy Management Division notified the oil company of the deadline on Sept. 8, 2023. Then, on April 5, 2024, the state sent a notice to the company, sharing that it hadn’t submitted any test results and must stop operating the wells.
The oil company made unauthorized injections into the wells 21,087 times, legal documents said. The company also failed to disconnect injection lines from 81 wells that didn’t have state approval.
Each violation cost $200, so the state could have issued a fine of about $4.2 million, legal documents said.
In October 2025, Sentinel Peak Resources rediscovered the violation while reviewing its compliance with mechanical integrity testing requirements.
Read more Poll: California voters undecided in Democrat showdown for insurance commissioner
The company stopped operating the wells, reached out to the state to admit to the violation, and formed a plan to improve its workflow so the tests are done on time in the future.
Sentinel Peak then finally conducted the tests, and all 81 wells passed, legal documents said.
On Sept. 2, the state ordered Sentinel Peak to pay $1.7 million within 10 days, according to the settlement agreement.
The company paid the fine on Sept. 3, a California Department of Conservation spokesperson said.
The state lowered the fine because the company immediately admitted to the violations and shut down the wells, court documents said.
If the oil company makes an unauthorized injection into one of its wells through Dec. 31, it must pay an additional $500,000 fine.
“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,” California Department of Conservation director Jennifer Lucchesi said in a news release.
Sentinel Peak Resources did not respond to The Tribune’s request for comment.
This story was originally published September 11, 2026 at 10:30 AM with the headline “Oil company fined $1.7 million for delaying CA well tests, including in SLO County.”
Read more How Anthony Volpe Could Create Potential Late-Season Infield Competition for Yankees