GRAND JUNCTION, Colo.—An energy company that wanted to drill close to the site of an underground nuclear explosion has agreed to pay $138,000 in fines for alleged violations at its former operations in Western Colorado.
The state cited Houston-based Presco Inc. last year for stormwater-control and other violations. State records show the company didn’t admit the violations but agreed to pay the fines.
Company officials didn’t immediately return a call Wednesday seeking comment.
In January, the Colorado Oil and Gas Conservation Commission will consider the agreement reached by its staff.
The allegations about Presco’s operations drew attention because the company wanted to drill near the site an underground nuclear explosion set off in 1969 to try to free natural gas. Presco sold 11,000 acres of its oil and gas interests in Colorado to Noble Energy last year.
Some area residents oppose drilling close to the blast site at Rulison, about 190 mile west of Denver. They fear techniques that force apart tight sands to boost gas production will increase the risk of radioactive contaminants reaching the surface.
Two environmental groups and two couples have filed a lawsuit seeking a hearing on the state’s approval of drilling permits within three miles of the blast site.
State staffers said inspections of Presco’s wells last year turned up several problems, including runoff from storm water and drilling waste pits flowing into a creek. They also reported finding drums and sacks of chemicals floating in pits.
