GRAND JUNCTION — Colorado oil and gas regulators are scheduled to take their first enforcement measures against companies for their suspected failure to fully comply with a rule requiring disclosure of chemicals used in hydraulic fracturing.
The move follows criticism over a lack of regulatory action since the rule was passed a year and a half ago, the Grand Junction Daily Sentinel reported this week.
The alleged violations against at least 11 companies to date mostly involve a handful of wells, or in some cases a single well, per company. Colorado Oil and Gas Conservation Commission enforcement officer Peter Gowen said they generally involve slip-ups.
“I don’t think we’ve seen anyone who is deliberately not complying with the rule. It’s mostly mistakes and perhaps missing deadlines or basically not keeping up with the volume of paperwork that they have to report,” he said.
At its meeting at the end of this month, the commission is scheduled to take action against Noble Energy, Bill Barrett Corp., Marathon Oil, ConocoPhillips, Kerr-McGee, Gunnison Energy, Laramie Energy II, McElvain Energy, Synergy Resources Corp. and Orr Energy. It is expected to take action later against Encana.
Commission staff have reached settlement agreements with most of the companies under which they would pay $1,000 fines per each well, rather than the $10,000 fine per well that is possible, if the commission approves the agreements.
Bruce Baizel, energy program director for the Durango-based Earthworks conservation group, said a fine is one way to get a company’s attention.
“We’ll see if that increases compliance,” he said.
