Effects of Setback Proposals on City of LA

Eliminates Jobs and Damages Local Economy

The City of Los Angeles is considering establishing setback requirements on oil and gas production. If any of the setback requirements outlined below are enacted, it will make it no longer economically feasible to continue production in Los Angeles.

All setback scenarios result in a complete energy shutdown in Los Angeles¹

What is a setback?

A setback is a required separation between a building or a structure. In dense urban areas like Los Angeles, setback requirements create impossible challenges for decades old operations (some 100 years) because of increased urban in-fill. As a result of this high density, there is no place for oil and gas operators to create increased separations.

2,500-Foot Setback = 1/2 Mile

• 87% – Wells Shutdown
• 1,221 Jobs Lost
• $29 MILLION State & Local Taxes Lost

1,500-Foot Setback = Five football fields

• 84% – Wells Shutdown
• 1,210 Jobs Lost
• $28 MILLION State & Local Taxes Lost

500-Foot Setback = Height of City Hall

• 64% – Wells Shutdown
• 890 Jobs Lost
• $22 MILLION State & Local Taxes Lost

Oil and gas production has been a vital part of the Los Angeles economy for more than 100 years, providing safe and reliable oil production, well-paying jobs and an affordable energy supply for consumers and businesses.

What does a costly energy shutdown mean for Los Angeles?

• Jobs GONE – Thousands of well paying jobs with good benefits for working families
• Revenue GONE – Millions in tax revenues that support vital community services like police and fire
• Affordable Energy GONE – Affordable and reliable energy supply for low income families

1. Catalyst Environmental Solutions Study – Evaluation of the Effects of Buzzer Zone Setbacks on Los Angeles City and County Oil and Gas Production – March 2018.
Capital Matrix Consulting Study – Economic and Fiscal Effects of Set-Back Requirements on the Oil and Gas Industry in Los Angeles – March 2018
3/15/18

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