January 13, 2026
Agenda Item No. 5
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, City Manager - 949-644-3001, [email protected] PREPARED BY:
Mark Vukojevic, Utilities Director – 949-644-3011, [email protected] TITLE:
Resolution No. 2026-2: Proclaiming the Termination of the Local Emergency Declared on October 22, 2025 ABSTRACT:
The City of Newport Beach director of emergency services declared a local emergency on October 22, 2025, following the detection of methane gas and crude oil at 3606 Marcus Avenue on the Balboa Peninsula. The methane and crude oil were believed to be related to a historic “orphan” oil well located beneath 3606 and/or 3602 Marcus Avenue. The City Council ratified the Proclamation of Local Emergency on October 28, 2025, by adopting Resolution No. 2025-75. The Council reviewed and continued the local emergency on December 9, 2025.
In coordination with the State of California’s Geologic Energy Management Division (CalGEM), which obtained emergency funding and approvals, the City supported an expedited effort to drill an intercept well at Marcus Avenue and 36th Street, and to re-plug the orphan well approximately 800 feet below ground surface. Although the City does not own the well, staff from the Police, Fire, Public Works and Utilities Departments actively coordinated with CalGEM and its contractor to address immediate public safety and environmental risks. CalGEM has completed its emergency work operations, the orphan oil well has been re-plugged, and the flow of oil and gas to the surface has ceased. It is now appropriate to terminate the local emergency.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2026-2, A Resolution of the City Council of Newport Beach, California, Proclaiming the Termination of the Local Emergency Declared on October 22, 2025, Related to the Seepage of Methane Gas and Oil Intrusion Into a Residential Structure Located At 3606 Marcus Ave.
DISCUSSION:
On October 22, 2025, the City’s director of emergency services declared a local emergency after a significant amount of methane seepage and crude oil intrusion were detected at a residential property located at 3606 at Marcus Avenue. The oil and methane were believed to be from an abandoned private oil well. On October 28, 2025, the City Council ratified the Proclamation of Local Emergency by adopting Resolution No. 2025-75. On December 9, 2025, the Council continued the local emergency.
At the beginning, City staff and State representatives believed that a historic oil well located under 3606 and/or 3602 Marcus Avenue may have been leaking. The well was plugged in 1929 in accordance with the standards of that era and has no known responsible owner. It is therefore considered an orphan oil well.
City staff secured an emergency response from CalGEM, which has regulatory oversight of all oil and natural gas wells in the state and administers several programs, including an orphan well abandonment program. Due to the active leakage and the associated threat to public safety and the environment, CalGEM responded and obtained funding and approvals to attempt to re-plug the orphan well. The City does not own the well and responsibility for the well rests with the current private property owners. However, in the interest of public health and safety, the City took an active role in coordinating the response and communicating with area residents. The planned work required removal of on-street parking, limited or no access to many garages, restricted pedestrian access, and continuous construction and equipment noise on a 24-hour basis.
CalGEM engaged an emergency oil drilling contractor and City staff from the Police, Fire, Public Works and Utilities Departments worked closely with CalGEM to expedite the emergency well re-plugging activities. The contractor began preliminary work on November 24, 2025, with a break over the Thanksgiving weekend. Mobilization continued on December 1, 2025, and drilling and 24-hour work operations began on December 7, 2025. The plan was to drill an intercept well from the intersection of Marcus Avenue and 36th Street to locate and intercept the orphan well several hundred feet below ground.
The original orphan oil well was located and intercepted. The contractor successfully re-plugged the orphan well, thus stopping the flow of oil and gas to the surface. Some difficulties were encountered during drilling requiring extra workdays and the installation of a parallel twin pipe casing 850-feet deep, which was completed on December 24, 2025. A Christmas Day work stoppage was then enacted and, moving forward, all construction operations were changed back to daytime operations, approximately 7 a.m. to 7 p.m. Using the twin pipe casing, the contractor perforated holes into the orphan oil casing and filled it with a special cement mixture. This was accomplished over several days as the cement was squeezed into several different height levels of the casing. The final cement placement into the orphan oil well occurred on January 2, 2026. Demobilization and final site cleanup occurred from January 3 to January 10, 2026.
With the orphan oil well re-plugged, the surface oil and gas conditions have subsided, and the emergency has been sufficiently addressed. It is appropriate to terminate the City’s local emergency. The homeowners whose properties are above the orphan oil well, are working with their insurance companies and private environmental consultants for needed private property remediation. The work will be permitted and inspected by the Community Development Department’s Building Division.
FISCAL IMPACT:
The adopted budget includes sufficient funding for City staff’s expenses, materials and contractor resources used to help facilitate the emergency construction. The City’s total amount has not been quantified as of the writing of this report, but is a very small portion of the overall project cost. The City’s expenses will be funded from various operational and emergency accounts within the Utilities, Public Works, Police and Fire Department budgets. The State has spent several million dollars on the emergency re-capping construction efforts.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15269(c) (the activity is necessary to prevent or mitigate an emergency), 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A – Resolution No. 2026-2
Resolution No. 2026-2: Proclaiming the Termination of the Local Emergency Declared on October 22, 2025 January 13, 2026
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