So, apparently this was an industrial accident caused by a water-forcing project in a 100-year-old oil field, located under LA:
(CBS) LOS ANGELES Residents of a downtown Los Angeles apartment building have been evacuated after oil began oozing into their basement, and out of cracks and manhole covers along their street.
Authorities say they think the problem occurred because workers at a petroleum drilling site two blocks away were shooting high pressure hot water into old wells to blast out leftover crude.
A bulge in the street (South Olive Street) began to subside and the oil seepage slowed when the Saint James Oil Company stopped pumping in the water.
Residents of the three-story apartment building say they began smelling a pungent odor shortly after midnight yesterday.
One resident says several inches of oil covered the basement floor of the building. Another says the building smelled like a tar pit.
Fire officials say the 99-year-old building will remain off limits until it is inspected by city building and safety experts.
http://cbs2.com/topstories/local_story_051181505.html