Colorado communities push state to enforce its new oil and gas rules

Denver-based oil and gas operator K.P. Kauffman (KPK) is once again in the spotlight as Colorado begins implementing new regulations. KPK operates around 1,200 wells in northeastern Colorado, the majority of which are low-producing, and has racked up so many violations and fines that the state threatened to revoke the company's license to operate.  

The Colorado Energy and Carbon Management Commission (ECMC), which regulates oil and gas in the state, is currently considering KPK's financial plan under new financial assurance rules which were finalized in March 2022 and which increased the minimum bonds operators must provide. The northeastern Colorado communities of Dacono and Frederick argue that KPK's financial plan is insufficient and are urging the ECMC to reject it. Either town could also petition the ECMC to order KPK to plug and abandon its wells within their jurisdictions; this would be the first test of another new rule that gave them the right to do so. 

K.P. Kauffman and its various sites and spills were highlighted in Backyard Problems, a recent report from the Center for Western Priorities that examines the West's long history of extractive activity and the toxic messes left behind. 

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Quote of the day

When the financial assurance rules were passed, the commission was right to be proud. They were truly the strongest rules in the nation. However, they need to be implemented properly.”

—Matt Sura, attorney representing the town of Frederick, Denver Post

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