Prospect Energy would close all its Larimer County oil and gas wells under agreement

Larimer County and the City of Fort Collins are pursuing an agreement with Prospect Energy to close all its oil and gas wells within the county. The agreement would also allow the company to allocate its resources into the closures instead of penalties.

"It's better for our community if Prospect Energy uses its money to safely close its wells instead of paying fines or going bankrupt and leaving," said Larimer County Commissioner John Kefalas in a press release .

The Colorado Energy and Carbon Management Commission is also expected to schedule a hearing “that will likely result in the termination of Prospect’s license to operate in the State of Colorado in exchange for suspending fines totaling $1.7 million," according to the county's release.

"Residents in Fort Collins are now safer thanks to the tireless advocacy of hundreds of Colorado residents, fighting for Colorado to prioritize people over polluters and hold oil and gas companies accountable for the harms they cause," Earthworks State Policy Manager Andrew Forkes-Gudmundson said in a release from the advocacy group.

Prospect Energy has been subject to various environmental problems.

In November, the Coloradoan reported cleanup was underway after about 200 barrels of highly concentrated saltwater leaked from an injection flow line operated by Prospect Energy in north Fort Collins, contaminating soil and a nearby ditch.

In 2022, the company’s Krause tank battery site near Fort Collins was ordered to shut down because of repeated violations .

The site had been the subject of several complaints by nearby residents, who reported strong odors coming from the site. The state health department's Air Pollution Control Division ordered the closure, citing "repeated violations that endanger public welfare."

The tank battery site was eventually allowed to reopen with changes to its operation but will be included among the closures from the new agreement.

As for the timeline, according to the agreement document ( available on the packet from the July 23 administrative matters meeting ):

• Within seven days of the effective date, Prospect will shut down the wells under state supervision.
• Within 21 days, a third-party inspector will conduct infrared camera inspections of all shut in wells and locations.
• Within 90 days, Prospect “will remove and sell, or otherwise dispose of, all surface equipment at the Krause Facility and Fort Collins Tank Battery.”

This article originally appeared on Fort Collins Coloradoan: Prospect Energy would close all its Larimer County oil and gas wells under agreement