Yah, it would, normally, in other States. This is called "flaring", but I imagine California has environmental 'protection' laws limiting or preventing these systems from being used. Most wells have emergency flare systems that burn excess gas if a formation surge occurs (faster than it can be captured).
Regardless, this situation is unique because the well is very old... and leaking in several places. I don't know of an existing system that can safely pump an Oxygen/Production gas mix to another location and flare it.
Hopefully the well casing isn't compromised or the whole town could explode (Hutchison, KS a few years back).
Actually, I'm trying to figure out if this particular disaster is a underground storage facility or if it's actually a production well. Details are scattered about and it's kind of hard to find information.