Mark Jaffe’s report in The Colorado Sun details how Prospect Energy’s operations in Larimer County have been shut down due to severe and prolonged environmental violations. The Colorado Energy and Carbon Management Commission revoked the company’s right to operate after finding repeated issues, including unaddressed gas leaks, improper well maintenance, and unpaid fines totaling $1.7 million. Instead of paying the fines, the company agreed to use the funds for environmental cleanup of its sites. The Commission’s decision followed years of complaints from residents about air pollution and safety concerns.
Prospect Energy must now remediate all affected sites within 90 days, with additional penalties possible for any future violations. The report highlights how this case reflects growing regulatory scrutiny over oil and gas operations in Colorado, especially in regions close to residential areas. The shutdown of Prospect Energy is seen as a significant enforcement action, setting a precedent for other operators in the state.
For more details, you can read the full and original article here.
Piles of scrap metal, pipes and and a dehydrator on the ground by the heater-treater used to separate hydrocarbons from water after being pumped from wells on the Prospect Energy Fort Collins Meyer site on Aug. 13, 2024. (Tri Duong, Special to The Colorado Sun)
A History of Problems for Prospect Energy
In 2022, the division ordered one of Prospect Energy’s sites closed until dangerous emissions could be curbed. The Colorado Department of Public Health and Environment’s Air Pollution Control Division ordered that Prospect Energy to immediately cease operations at its Krause site north of Fort Collins because of repeated violations that endanger public welfare. The division’s decision came after it exhausted other options to correct those violations, including initiating several enforcement actions. Colorado statute gives the state the authority to shut down a source of pollution if it creates an unhealthy or disruptive environment for nearby residences or businesses.
The division has initiated numerous enforcement actions with Prospect Energy since December 2021, showing a pattern of violations within the company. In response to enforcement actions, Prospect Energy submitted information to the division that indicates the Krause site is not properly designed, operated, or maintained.
