It’s been nearly two years since Colorado regulators confirmed a handful of oil and gas operators falsified information about hundreds of oil spills and well sites across the state.
On Wednesday, the Energy and Carbon Management Commission (ECMC), which oversees fossil fuel operations statewide, approved agreements forcing the state’s largest fossil fuel companies to pay nearly $2 million in penalties. In addition, the companies must continue remediating environmental damage and taking steps to avoid future compliance issues.
“Maintaining the integrity of environmental data submitted to ECMC is essential to protecting public health, safety, welfare of the environment and wildlife resources. These actions reflect the seriousness of the violations,” said Julie Murphy, the outgoing director of ECMC.
In a 4-1 vote, commissioners approved regulatory penalties for six operators: Bonanza Creek Energy, Crestone Peak Resources, Extraction Oil and Gas, HighPoint Operating, Kerr-McGee Oil & Gas Onshore and Noble Energy. Those companies are now part of Colorado’s three biggest oil and gas producers: Chevron, Civitas Resources and Occidental Petroleum.
The action follows a 21-month investigation into a data falsification saga.
In November 2024, the commission announced that two environmental consulting companies – Eagle Environmental Consulting and Tasman Geosciences – submitted manipulated test data regarding hundreds of spill sites and closed drilling locations in Weld County and Larimer County.
The investigation revealed that regulators received about 3,500 false data points submitted between 2021 and 2024 related to 404 oil and gas locations. In some cases, the consultants severely underreported levels of dangerous soil contamination, including arsenic and benzene, pollutants known to increase cancer risk and other health issues.
Following the revelations, the ECMC re-evaluated each site and ordered remediation work. It also referred the consultants for criminal prosecution to the attorney general for alleged fraud.
It’s unclear if state prosecutors have taken up the case. Lawrence Pacheco, a spokesperson for the Attorney General’s Office, said his agency “cannot confirm or otherwise comment on investigations.”
Meanwhile, Tasman Geosciences has blamed one of its employees for the misconduct. In a civil lawsuit filed in December 2024, the company sought damages against Eric Siegel, one of its former environmental scientists, for using Adobe Acrobat to manipulate soil sample results from oil and gas sites. It asserted that Siegel admitted to changing values because he was frustrated with changes to state regulations and felt a sense of urgency to process sites as quickly as possible.
The commission largely opted against assessing immediate cash fines.
Instead, it will allow the companies to reduce their total penalties by improving their environmental practices and funding charitable initiatives.
Chevron, for example, faces the largest potential penalty at roughly $8 million. The oil and gas giant, however, only has to pay $400,000 upfront. It then has the chance to vacate 60% of the total by routinely checking its environmental data and auditing past forms submitted on its behalf by Eagle Environmental Consulting, according to the full settlement agreement.
Another $783,000 of the penalty is reserved for “public projects,” such as a $150,000 contribution to the Colorado School of Mines’ Payne Institute for a Geothermal Solutions Summit scheduled for November. The company must also pay $130,000 to the Groundwater Protection Council, a nonprofit representing state groundwater regulatory agencies.
In a written statement, Patty Errico, a Chevron spokesperson, didn’t address how the charitable projects would improve compliance or protect public health and safety. In response to the penalties, Errico said that the company accepts the commission’s decision and will comply with the terms of the settlement.
“Once we became aware of the fraud, Chevron promptly launched an investigation, provided the ECMC with a list of potentially affected sites and later submitted a corrective action plan describing how we would evaluate and address the inaccurate data,” Errico said. “Chevron remains committed to conducting business in full compliance with the laws and regulations in Colorado.”
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