The Aliso Canyon gas leak has turned into a major issue for the northern part of the San Fernando Valley. The Aliso Canyon field has been a natural gas storage field since the oil reservoir was depleted in 1972. There are 115 storage wells on the site and covers 3600 acres of land with 86 billion cubic feet of storage. The pipeline gas is compressed and stored in sandstone at a depth of 8500 feet.
The gas leak was discovered October 23, 2015. On December 4, the Southern California Gas Company started drilling a relief well that will intercept the leaking well. When the relief well and leaking well are connected, fluids will be pumped to stop the natural gas flow. Finally, cement will be pumped into the bottom of the well to permanently seal it. The procedure is supposed to be completed by the end of February.
For a Q& A applicable to the issues, government position, and the resolution of the gas leak, download a community awareness file at Aliso Canyon Porter Ranch So Cal Gas Co Q&A.
From a real estate standpoint, it has become more difficult to procure real estate financing in the 91324, 91311, and 91344 zip codes. The California Association of Realtors and the Southland Regional Association of Realtors legal staff are still contemplating how to disclose the leak, and a recommended legal approach to listing and selling in the affected areas.
I have noticed that no active listings in the region have any MLS disclosures applicable to the gas leak. Is it that there must be disclosure of the location of the field to a property? That there is a present gas leak? or is a listing agent’s fiduciary responsibility at risk, and the seller harmed if they are the only ones disclosing, when other seller/agents are not? Good questions, and we need immediate guidance from the CAR & SRAR legal staff…
If you are in the Los Angeles region, have any questions or real estate sales or financing needs, feel free in contacting:
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc
Gov’t Affairs Chair – California Association of Mortgage Professionals
Real Estate market, Mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley