Colorado regulators drastically increase fines for oil and gas violations
Colorado regulators significantly increased fines for oil and gas companies that fail to comply with the state's safety and environmental rules for oil and gas resources. The fines, previously set at $1,000 per day, were raised to $15,000 per day and the existing $10,000 cap on those penalties was lifted.
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Credit: alblec |
The Colorado Oil and Gas Conservation Commission (COGCC), charged with regulating development of the state's oil and gas resources, was following the direction of legislation passed last year as well as an executive order from Governor John Hickenlooper.
Matt Lepore, commission director, was quoted in the Denver Business Journal as saying "This marks a considerable change in the way we do business. Toughening major penalties for violators is an important component of our ongoing efforts to strengthen our oversight, enforcement and compliance program."
The COGCC had planned to increase the fines and remove the cap earlier, but decided to delay a final decision on how stringent enforcement of the fines should be after the oil and gas industry criticized the fines as excessive. They also complained that the new fines and more strict enforcement would put companies out of business and could cause job losses. They argued instead for a system for companies to voluntarily disclose violations without penalty.
Regardless, when all was said the Colorado Oil and Gas Association said it supported the new rules. The association's Doug Flanders was quoted as saying "Overall, we're on the same page with the COGCC and have the same goal, which is to ensure consistency, clarity and certainty as to how the rules will be enforced, how penalties will be calculated, and how both will be applied to all stakeholders."
The environmental organization Conservation Colorado strongly favored the decision.
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