State regulators are taking over a combined 106 wells from two oil and gas companies that faced several alleged violations and a total fine of $2.2 million.
The Colorado Oil and Gas Conservation Commission voted to suspend the fine. But the commission revoked the ability of the companies, 31 Operating and Lasso Oil and Gas, to operate in Colorado.
Kelly Rosenberg, the COGCC enforcement officer, said in a recent meeting that the alleged violations stretch back to 2018 and haven’t been cleared up. Other new rules changed requirements for the bonds and other financial assurances that companies must provide as a guarantee they’ll clean up and restore well sites. Colorado’s previous requirements were seen as too low to deter companies from just walking away.
Lasso, which was accused of violating 12 state rules, including failing to clean up a spill, allowing the venting or flaring of emissions and failing to maintain a wellhead. The COGCC foreclosed on the company’s $125,000 in bonds.
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