Colorado energy regulators hit a Chevron-owned subsidiary with six alleged violations today for causing a massive oil spill near Galeton, Colo., in early April.
Staff with the Energy and Carbon Management Commission, which oversees oil, gas and geothermal activities in the state, announced the “Notice of Alleged Violation” during a hearing. The notice was issued to Noble Energy, Inc., a Chevron subsidiary which operated the well.
The state alleges six violations of Colorado rules governing oil and gas operations. The end result, according to regulators, is that a fracked well spewed around 1.05 million gallons of oil, natural gas, water and chemicals for nearly four days. The notice also lists out corrective actions the company must take. Noble and Chevron allegedly violated rules dealing with:
- Venting or flaring natural gas
- General safety requirements at the site
- Correctly operating equipment
- Chemical pollution
- Keeping the well under control
- Water quality standards
Jeff Robbins, chair of the ECMC commission, who’s been with the agency for over six years, said during the hearing that the spill’s volume, complexity and its impacts were “significant and unprecedented during my tenure.”
The notice is the first step in ECMC’s enforcement process, though the rule violations are just allegations. Noble and Chevron will now have 28 days to respond to the allegations or dispute them. Ultimately, the commission will decide in a hearing whether the violations took place, and how much Chevron should pay in penalties.
It was not immediately clear how much those penalties might be, and regulators said there was no timeline yet on the enforcement hearing. Chevron is also staring down potential civil lawsuits for damages, and is on the hook for the site’s clean-up costs. Fourteen families evacuated the area around the spill. Most have since returned home.
In a statement, Chevron said it was reviewing the notice, and that it’s still actively working on clean-up operations, including through extensive soil sampling and air monitoring.
“We understand that rebuilding trust takes time and sustained effort,” said spokesperson Patty Errico in an emailed statement. “We remain committed to open, ongoing dialogue and to supporting the residents of Galeton as we move forward – together.”
Greg Deranleau, deputy director of operations at ECMC, said he hoped the alleged violations, as well as additional guidance sent to oil and gas operators, would prevent a similar incident in the future.
According to Chevron, the “blow out” occurred when a contractor improperly assembled equipment that was attached to the well, leading to a cascading series of mistakes.
“You have to make sure then that the well is fully secure before that work takes place,” Deranleau said. “And everybody on site needs to understand the importance of that moment in time.”
