November 27th 2024.
The state's oil and gas regulators have launched an investigation into claims that certain environmental consultants may have falsified data in regards to soil, groundwater, and contamination tests at around 350 locations in Weld County. These tests were conducted between 2021 and the summer of this year, on behalf of some of Colorado's largest oil and gas producers. The purpose of these tests was to determine whether the cleanup efforts and closures of oil and gas sites were in line with the state's standards.
According to the Colorado Energy and Carbon Management Commission (ECMC), which oversees the oil and gas industry, their preliminary investigation has shown that there is no immediate risk to public health beyond what was originally discovered and prompted the cleanup efforts. However, as a precaution, the ECMC has implemented additional measures to prevent any further falsified data from being submitted. These measures include requiring additional documentation and examining metadata.
The investigation into the lab results began in the summer when operators reported the potential falsification of data to the state. Regulators then launched an investigation to determine the extent of the situation and any potential risks. By early October, it was determined that there were potentially hundreds of instances where false data was submitted.
The ECMC stated that the falsified data ranged from minor changes in dates to more significant alterations regarding the levels of benzene, a known carcinogen found in crude oil, and other hydrocarbons. The data was submitted by two Denver-based environmental consulting firms, Eagle Environmental Consulting and Tasman Geosciences, on behalf of their clients Chevron U.S.A. Inc., Civitas Resources Inc., and Occidental Petroleum.
When reached for comment, Eagle Environmental declined, and messages were left with Tasman Geosciences. The state's investigation may result in enforcement actions and fines, and they are working with law enforcement regarding potential criminal and civil penalties.
ECMC Director Julie Murphy stated that they hold operators responsible for the work of their contractors and appreciate their cooperation and voluntary disclosures. The investigation is ongoing, and the agency is working closely with law enforcement to address the issue.
The Colorado Department of Natural Resources' executive director, Dan Gibbs, expressed disappointment in the actions of a few consultants that have undermined the industry's ability to meet regulatory obligations. However, he has confidence in the ECMC to investigate and take appropriate enforcement actions.
According to Rich Coolidge, a spokesperson for Civitas, they were made aware of the potential issue in the summer and immediately launched an investigation. When they confirmed that their samples were affected, they notified state regulators. They are now working with the testing labs to implement stronger audit procedures to prevent similar situations in the future.
Similarly, Occidental Petroleum was informed by a third-party environmental consultant that one of their employees had altered lab reports and associated forms for remediation projects in the Denver-Julesburg Basin. They have reported the issue to the ECMC and are reassessing the affected sites to ensure they meet remediation standards.
Chevron was also made aware of the falsified data and immediately launched an investigation. They continue to cooperate with the ECMC and are shocked and appalled by the intentional falsification of data by a third-party contractor. Chevron's spokesperson, Patty Errico, stated that accurate data is essential for the integrity of their work and the safety of communities. They are committed to working closely with the state and other stakeholders to ensure proper reporting practices are maintained.
API Colorado's director, Kait Schwartz, also emphasized the importance of accurate data in the industry. They are taking the allegations seriously and are dedicated to upholding high standards while working closely with the state and the ECMC to address the issue transparently and collaboratively.
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