Oil and gas rights-holders are suing the state of California over a law that blocks wells near homes and schools.

The California chapter of the National Association of Royalty Owners announced the lawsuit at a Sacramento news conference on Wednesday. The group partnered with the Pacific Legal Foundation to file the suit in federal court.

The mineral owners are challenging Senate Bill 1147, which created 3,200-foot “Health Protection Zones” around homes, schools, hospitals and other locations. No new oil and gas wells are allowed within those zones.

The lead plaintiffs are Santa Barbara County mineral owners John and Melinda Morgan, a brother and sister who said their mineral assets were effectively wiped out by SB 1137. Lawmakers passed the bill in 2022, and it took full effect in 2024.

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