The Colorado Oil and Gas Conservation Commission (COGCC) issued its second largest fine ever against K.P. Kauffman, a Denver based oil and natural gas company. The $2 million dollar fine stems from 22 violations found at seven sites throughout Colorado.
Initially the fine would have been lower, but the COGCC included an “aggravating factor” based on what it calls a “pattern of violation.”
K.P. Kauffman operated wells and off-location flowlines have been responsible for 18 spills and leaks in 2021 so far.
Gary Hladky, a property owner with a K.P. Kauffman flowline running through his field reported a pipeline leak in September 2020. On Sept. 10, 2021, Hladky filed a second report alleging that “there has been no investigation, no remediation, nothing. The well, according to production reports, is allowed to continue to produce, probably expanding the contamination zone as well as venting small amounts of gas.”
While small spills in remote parts of the state may not pose an immediate threat to humans, they can be extremely devastating to natural ecosystems. Oil contamination in soil and water can destroy habitats, and natural gas emissions further elevate greenhouse gas levels in the atmosphere.
Several spills reported this year have been on private property that did not contain a well. The pollution occurred from pipes that property owners have allowed K.P. Kauffman to run through their land.
The Environmental Protection Agency (EPA), Department of Justice and the State of Colorado imposed a $1 million civil penalty on K.P. Kauffman in January 2020 stemming from the Clean Air and Water Act and Colorado regulatory violations involving the airborne emission of volatile organic compounds (VOCs) at 67 locations throughout the state.
According to the EPA, VOCs are known to cause eye, nose and throat irritation, headaches, liver, kidney and central nervous system damage, and are potentially carcinogenic. VOCs also play a role in the formation of ozone. Throughout 2021, Colorado has seen high ozone levels, which is known to cause respiratory inflammation. A 2020 study indicated that exposure to ozone and other air pollutants can leave individuals more susceptible to tissue inflammation and damage from COVID-19.
In addition to the civil penalty, K.P. Kauffman is expected to spend a total of $2.5 million on modifying and upgrading their existing facilities’ ability to limit VOC emissions.
The Colorado Oil and Gas Conservation Commission’s recent decision to impose a $2 million fine also requires K.P. Kauffman to develop a plan to mitigate existing violations and ensure future compliance with state and federal laws. The COGCC will hear the company’s plan on Oct. 7, 2021.
The COGCC said that the fine and requirements for a mitigation plan “underscore the main goal for the COGCC as a regulator, which is for operators to be in compliance to ensure protections for public health, safety, welfare, wildlife and environmental resources.”
