A Colorado tree farm has won an $866,000 jury verdict against oil refinery operator Suncor Energy in Weld County after a dispute over Suncor’s 10-inch pipeline under the farm’s property.
Suncor officials on Tuesday said they will appeal.
Arborland Nursery owners Jan and Gene Kammerzell argued that Suncor’s efforts to expand its right of way over the pipeline to 40 feet, cutting down 160 trees, violated their property rights.
After a five-day trial in Greeley, seven jurors found the Suncor Energy Pipeline Company in breach of contract and awarded $866,000 to the Kammerzells, whose 121-acre farm is located near Milliken. Judge Todd Taylor presided over the trial in Weld County District Court.
“We’re relieved this is over. We’ve been bullied and harassed since 2007,” Gene Kammerzell said.
Suncor acquired the refinery, north of Denver in Commerce City, from Conoco in 2003. Suncor relies on an expanding network of pipelines as the safest way to carry crude oil to the refinery, where Suncor turns the oil into gasoline, diesel and jet fuel, as well as asphalt for roads and highways.
The company sought wider access across Arborland to conduct aerial inspections of the pipeline, looking for possible leaks. Suncor also is installing a larger, 16-inch-diameter pipeline to increase the flow of oil to the refinery. But this newer pipeline will run just to the west of the tree farm.
“This is a David and Goliath victory — a small tree farm business that stood up to some of the heavy-handed oil company tactics in Weld County and succeeded,” attorney Randall Weiner said. “It matters because there are traditional property rights that are being trampled in the oil boom in Weld County.”
Suncor’s existing pipeline begins in Cheyenne. Most of the crude oil that flows to the refinery comes from within the region, company spokeswoman Lisha Burnett said.
“Suncor is disappointed with the decision and will be appealing,” Burnett said. “We are committed to treating landowners with which we have easement agreements respectfully, while following the laws and terms of the agreements in order to maintain and protect the pipeline.”
The 16-inch pipeline project, she said, is intended to make delivery of crude oil to the refinery more efficient and reliable.
Bruce Finley: 303-954-1700, bfinley@denverpost.com or
