Re: Recent state enforcement actions against Prospect Energy, LLC
Laurie Kadrich
Commissioners,
Please be aware that there have been two oil-and-gas-related state enforcement actions in the past two weeks that concern Prospect Energy, LLC.
1. ECMC – Rule 901.a Order – to immediately cease flaring and production at Prospect Energy’s Hearthfire #1 well
At the prodding of Larimer County and the City of Fort Collins, the Energy and Carbon Management Commission (“ECMC”) has taken action against Prospect Energy for its illegal flaring of the Hearthfire #1 well. The well is located at the Fort Collins tank battery within the Hearthfire neighborhood.
On February 8, 2024, ECMC Director Julie Murphy issued a rare Rule 901.a Order. It requires that, “Prospect immediately cease all venting and flaring at the Hearthfire #1 Well, except under the circumstances detailed in 903.d.(1)(A), (B), (D), or (E). Moreover, Prospect will immediately cease all production activities at the Hearthfire #1 Well.” (Attached)
Both the County and City have requested party status in upcoming ECMC hearings on the notice of alleged violations for flaring gas from the Hearthfire well and Prospect Energy’s variance request to allow it to continue flaring at that well.
2. APCD – Compliance Order on Consent – Negotiated enforcement settlement with Prospect Energy.
This negotiated settlement with the Air Pollution Control Division (“APCD”) was a long time coming. It addresses numerous air quality violations, over the past two years, by Prospect Energy at both the Fort Collins tank battery and the Krause tank battery.
Highlights of the attached agreement includes:
1. Payment of $337,050.00 in penalties by Prospect Energy
2. Krause Facility Requirements
a. Prospect must comply with the provisions of the Krause Facility’s most recent Odor Management Plan,
b. Prospect must comply with the most recently approved Storage Tank Emission Management (STEM) plan for the Krause Facility.
c. Installation of H2S monitors at the site
d. Sampling must occur every three months
- Develop action plan for if/when monitors detect H2S
f. Must install high performance thief hatches on tanks
g. Must perform infrared camera inspections every two weeks
3. Fort Collins Facility requirements
a. Prospect must comply with the most recently approved Storage Tank Emission Management (STEM) plan for the Fort Collins Facility.
Today, the APCD sent out the email below to City and County staff as well as to members of the public that have complained about the Prospect facilities.
Additionally, the orders from the ECMC and APCD for each of the actions are attached for your reference.
Please contact me if there are any questions.
Respectfully,
Matt Lafferty
--
From APCD, sent 2-21-2024 ...
Dear resident,
We are writing to inform you about a new enforcement package between the Air Pollution Control Division and Prospect Energy’s Krause and Fort Collins facilities. These enforcement actions address repeated air quality violations, dating back to November 2021. The facilities are located 4.2 miles northeast of Highway 14 and US Highway 287 (Krause) and in the northwest corner of Section 30, Township 8N, Range 68W (Fort Collins facility).
Background
In August 2022, the division issued the Krause site a cease-and-desist order. The order addressed acute concerns about public health and excess air pollution.
In the following months, the division met with Prospect Energy representatives. The division worked to confirm they were implementing needed changes to bring the Krause site into compliance with all applicable air regulations. During this time, Prospect Energy completed design analyses for both locations. The company also made changes to the design, operations, and maintenance practices at the Krause facility based on those analyses.
The division lifted the cease-and-desist order in November 2022. The Krause site could resume operations as long as Prospect Energy continued implementing changes to monitor and reduce air pollution from the site.
New enforcement package
In February 2024, the division finalized an enforcement package. These actions address air quality violations at Prospect Energy’s Krause and Fort Collins facilities. They hold Prospect Energy accountable. As part of the final enforcement package, Prospect Energy agreed to the following requirements:
· Install monitors to detect hydrogen sulfide. This is the key pollutant responsible for odors emitted from the facility.
· Take action in the event monitors detect hydrogen sulfide above certain levels.
· Conduct periodic sample collection for hydrogen sulfide.
· Install high-performance hatches to further reduce air pollution from the storage tanks.
· Double the number of required monthly infrared camera inspections.
· Comply with the division-approved odor management plan.
· Submit a new permit application for the Krause facility.
These actions will help protect air quality in your neighborhood for years to come. Prospect Energy must also pay $377,050 in penalties as part of the enforcement package. Of this amount, about $200,000 will fund projects to benefit communities disproportionately impacted by pollution through the state's environmental justice grant program, as required by Colorado’s Environmental Justice Act. The rest will go toward the state’s general fund.
Stay connected
The division values and investigates all complaints and information it receives. This recent enforcement package addresses public complaints received in recent years about Prospect Energy facilities. The division encourages Coloradans to report potential air quality violations:
· For oil and gas-specific complaints, please visit https://oag-health.colorado.gov/ or email cdphe_og_a...@state.co.us.
· To submit all other complaints, please email cdphe.com...@state.co.us or call 303-692-3150.
We continue working to strengthen our connections with people impacted by nearby sources of air pollution. Visit the Air Pollution Control Division’s public participation and outreach website to stay involved: https://cdphe.colorado.gov/APCD/Outreach.
Thank you,
P 303.692.3100 | F 303.782.0278
4300 Cherry Creek Drive South, Denver, CO 80246-1530
Are you curious about ground-level ozone in Colorado? Visit our ozone webpage to learn more.
Matthew Lafferty, AICP
Principal Planner
Community Development Department
Advanced Planning
200 W Oak Street, Suite 3100
Fort Collins, Co 80521
W: 970.498.7721
Laurie M. Kadrich Assistant County Manager | |
200 W Oak St, Fort Collins, 80521 | 2nd Floor W: (970) 498-7004 | M: (970) 589-0674 |
Kristin Stephens
Kristin Stephens County Commissioner, District 2 | |
Commissioners' Office 200 W Oak St, Fort Collins, 80521 | 1st Floor W: (970) 498-7002| Cell: (970) 443-9577 |