Newport Beach : Claims From Blast Are Up to $521,000

Claims against the City of Newport Beach arising out of an explosion and fire at an abandoned oil well last August have reached $521,000 as of late last week, according to a city official.

City spokesman Bill Brown said the largest of the 32 claims filed so far, one for $385,000, came from Dean and Sally Phillips, whose house suffered fire damage in the Aug. 2 blast at 44th Street and Balboa Boulevard. That claim was denied by the City Council and the Phillipses filed a lawsuit, according to Brown.

Southern California Gas Co. is seeking $51,500 for shutting down a gas line into the area. “I don’t know whether it’s a claim or a bill,” Brown said. “All I know is they did it the hard way. They pinched the pipe closed and cut off gas to 1,500 outlets.”

Many of the remaining claims are for cleanup of cars and boats that were dirtied by oil and debris. Brown said these claims “are in limbo at the moment” while the city attorney’s office tries to establish who had basic responsibility for the well.

The well was drilled in 1924 by South Basin Oil Co. and abandoned in 1931, a year before the company went out of business. City officials have said all of the firm’s principals are dead.

The explosion occurred as private contractors and city workers were capping the well. One man was injured and 200 people were forced from their homes for more than five hours while a 50-foot geyser of flames, salt water and crude oil was contained.