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DENVER—A western Colorado rancher and an environmental group have filed a formal complaint with state regulators over the release of tens of thousands of gallons of waste liquids from gas drilling storage pits, including some that is frozen inside a waterfall.

The Colorado Oil and Gas Conservation Commission, which regulates the industry, is investigating four large releases from pits operated by two companies on top of the Roan Plateau near Rifle. The commission says waste, including mud used in oil and gas well drilling, could flow into West Parachute Creek when the ice melts.

The investigation comes as the state is revamping oil and gas regulations. Industry officials have criticized the proposed rule changes as too stringent.

Rancher Sid Lindauer lives on Parachute Creek and said the state didn’t tell area residents about the spills. He and the Western Colorado Congress, an environmental group, have filed a complaint with the commission.

“So far, the state has not told us what is in the wastewater and what threat it could pose to my livestock,” Lindauer said.

Lindauer, Western Colorado Congress and an affiliate, the Grand Valley Citizens Alliance, have asked the oil and gas commission and state health department to sample the waste and demand full disclosure of all the chemicals and substances in the pits. They also asked that the Colorado Division of Wildlife determine the potential threats to wildlife.

Deb Frazier, spokeswoman for the Department of Natural Resources, which oversees the commission, said there is no immediate threat to wildlife or people because everything is frozen and the spills were in a remote area. She said the commission is working with state wildlife and health experts in the investigation and that state officials have talked to Lindauer.

“Had there been any concerns about water quality, everybody would have been notified,” Frazier said.

The commission says the spills occurred from November through February and drained into a gulch west of the Roan Plateau. The state hasn’t named the companies, but Marathon Oil and Berry Petroleum Co. have issued statements discussing their parts in the releases.

State officials said both companies are working to clean up the spills and address any damage.

Officials said one company immediately reported the release of about 30,000 barrels of liquids as the law requires. Commission Interim Director Dave Neslin has said the other operator also immediately reported one release but failed to report two other incidents.

The pits hold water, mud and additives used in drilling. State officials said the lining in the pits apparently failed.

Industry officials have said the investigation shows that existing regulations work. Critics of the industry say the spills highlight the need for stricter oversight.

“This incident is a clear indication that we need additional regulations about where these waste pits are located and how they are constructed,” said Liz Chandler, president of the Grand Valley Citizens Alliance.

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