State oil and gas regulators are investigating reports that environmental consultants falsified results of tests on soil, groundwater and contamination at about 350 locations in Weld County between 2021 and this summer.
The information was submitted on behalf of some of Colorado’s largest oil and gas producers and was intended to determine whether work to clean up spills or close oil and gas sites met the state’s cleanup standards.
The Colorado Energy and Carbon Management Commission, which regulates the oil and gas industry, said Tuesday that based on its preliminary investigation, the agency is confident that there’s no new risk to public health beyond the original conditions that prompted the work.
“ECMC has also put in place additional safeguards to prevent falsified data from being submitted in the future, including requiring additional documentation and examining metadata,” the agency said in a statement.
The ECMC began looking into the lab results during the summer when operators notified the state of the potential falsification of information. Regulators opened an investigation into the scope of the situation and potential risks. Officials said they determined by early October that the problem involved potentially hundreds of instances of the submission of false data.
Because of voluntary disclosures by operators, ECMC said it became aware that individuals at two Denver-area environmental consulting firms allegedly altered laboratory data submitted to the state on behalf of their clients.
Eagle Environmental Consulting submitted data on behalf of Chevron U.S.A. Inc. and Civitas Resources Inc., according to the ECMC. Tasman Geosciences submitted information on behalf of Occidental Petroleum, the state said.
ECMC spokeswoman Kristin Kemp said the data under question ranges from apparent inconsequential date changes to information about the reduction of benzene, a known carcinogen found in crude oil, and hydrocarbons.
Reached by phone, Eagle Environmental declined to comment. Messages were left with Tasman Geosciences.
“Following the disclosure of the falsified data, we took immediate action to investigate the allegations. We hold operators responsible for their contractors’ work, and I appreciate their self-reporting and cooperation to date,” ECMC Director Julie Murphy said in a statement.
The state’s investigation could include enforcement action and fines. The agency is cooperating with law enforcement regarding possible criminal and civil penalties.
Dan Gibbs, executive director of the Colorado Department of Natural Resources, expressed disappointment by the actions “of a few consultants to oil and gas operators who have undermined the industry’s ability to meet their regulatory obligations.”
“I have complete confidence in the leadership and staff at the Energy and Carbon Management Commission to investigate this falsification and take appropriate enforcement action as well as work with appropriate law enforcement,” Gibbs said in a statement.
Civitas first learned of a potential issue this summer and immediately investigated to determine if the company’s samples were implicated, Civitas spokesman Rich Coolidge said in an email.
“When we confirmed that this lab worker failed on samples that we submitted along with other operators, we notified state regulators,” Coolidge said. “We’re working with these testing labs to ensure there is a robust audit procedure to catch bad actors and prevent this from occurring in the future.”
Occidental Petroleum spokeswoman Jennifer Brice said a third-party environmental consultant told the company that one of its employees altered lab reports and associated forms related to some remediation projects in the Denver-Julesburg Basin north of Denver.
“Upon notification, we reported the issue to Colorado’s Energy and Carbon Management Commission and are reassessing the identified sites to ensure they meet ECMC remediation standards,” Brice said in an email.
When Chevron became aware of the fraud, it immediately launched an investigation and continues to cooperate fully and work closely with the ECMC, company spokeswoman Patty Errico said in an email.
“Chevron is shocked and appalled that any third-party contractor would intentionally falsify data and file it with state officials to assess environmental corrective actions taken by Chevron.” Errico said.
The industry takes the allegations seriously and understands the importance of addressing the issue transparently and collaboratively, said Kait Schwartz, director of the industry organization API Colorado.
“Accurate data is essential to the integrity of our work, the safety of Colorado’s communities, and our ability to meet the state’s ambitious regulatory thresholds,” Schwartz said in an email. “Colorado operators are dedicated to upholding high standards, and we are committed to working closely with the state, the commission, and other stakeholders to ensure proper reporting practices are maintained.”
Updated Nov. 26 at 6:03 p.m. to add comment.
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