Efforts to buffer California residents from oil and natural gas wells hit a logjam earlier this month in the legislature, leaving the issue to Gov. Gavin Newsom, who last year promised to fix what some view as a problem.

Monthly California Field Production of Crude Oil and Natural Gas

Assembly Bill 345 failed passage in the state Senate to establish minimum distances between wells and homes, playgrounds and schools. Originally proposed last year, the bill was criticized by among others the state’s largest producer, California Resources Corp., which earlier this summer sought voluntary bankruptcy protection.

Groups have pressured Newsom to declare a moratorium on new drilling and impose other restrictions to move more quickly to phase out fossil fuels.

The California Geologic Energy Management Division has an ongoing regulatory process to...