If you're buying or selling in Porter Ranch or nearby parts of the northwest San Fernando Valley, you'll see the Aliso Canyon disclosure in the package. It refers to the SoCalGas Aliso Canyon natural gas storage facility leak that started in October 2015 and was sealed in February 2016 - the largest methane release in U.S. history at the time. I'm Brian Cooper, REALTOR(R) at eXp Realty. Below is what the disclosure is, where it applies, and what the 2026 settlement status looks like.
Direct Answer
The Aliso Canyon disclosure is not a single statutory form like the TDS. It is a material-fact disclosure added to many Porter Ranch and adjacent transactions by listing agents and sellers because the leak and its aftermath are widely considered a material fact under California disclosure law.
If your home is in the impact area or near the facility, you should expect to see disclosure language about it in the sale package. Buyers should read it, ask questions, and decide whether further investigation is warranted.
Why this question matters
Porter Ranch home values dropped meaningfully in the months after the leak in 2016. They recovered over subsequent years as the facility remained operational under tighter oversight. Buyers ask, reasonably, whether the disclosure changes their risk picture today.
Failing to disclose a known material fact in a California real estate transaction can expose a seller and listing agent to post-closing liability. That's why you'll see this language even on transactions years after the event.
The detail behind the answer
Quick timeline of what the disclosure references and where things stand as of 2026.
| Date / item | Status |
|---|---|
| Oct 2015 | Leak begins at SS-25 well |
| Feb 2016 | Leak sealed |
| 2017 | Operations resume under tighter limits |
| Sep 2021 | Class-action settlement approved (~$1.8B) |
| 2022-2024 | Settlement payouts distributed |
| 2026 | Facility operating; future closure proposed but ongoing |
How to verify
Three things to do as a buyer. First, read the Aliso Canyon language inside the disclosure package carefully and ask the listing agent any questions before contingency removal. Second, check the California Public Utilities Commission and SoCalGas pages for the current operational status of the facility. Third, do your own diligence on the proximity of the specific address to the facility footprint.
As a seller, work with a listing agent who builds the disclosure correctly. Failure to disclose a material fact known to the seller is one of the most common sources of post-closing litigation in California residential transactions.
- Step 1: Read the Aliso Canyon disclosure language carefully.
- Step 2: Check current CPUC and SoCalGas status on the facility.
- Step 3: Confirm what your seller actually knows; ask for backup.
What I tell clients
I don't tell buyers to walk from Porter Ranch over the Aliso Canyon history. Plenty of buyers have purchased and lived there happily since 2016, and the market has absorbed the event. But I do tell them to read the disclosure, ask questions, and decide based on full information rather than skip it.
For sellers in the affected area, I treat the disclosure as standard. Including it cleanly tends to build trust with buyers and reduces post-closing risk. Skipping it because 'everyone knows' is not a defense in court.
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