HomeMy WebLinkAboutMemo - Read Before Packet - 2/13/2024 - Memorandum From Cassie Archuleta Re: Oil And Gas – Regulatory Activity Update
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Environmental Services
222 Laporte Ave
Fort Collins, CO 80522
970.221.6600
970.224.6177 - fax
fcgov.com
MEMORANDUM
DATE: February 13, 2024
TO: Mayor and Councilmembers
THRU: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Jacob Castillo, Sustainability Services Director
FROM: Cassie Archuleta, Lead Air Quality Specialist
SUBJECT: Oil and Gas – Regulatory Activity Update
The purpose of this memo is to summarize new, pending and anticipated activities related to direct actions
to ensure compliance and reduce OG operations in and around FC; especially in NE Fort Collins .
Background/Context
The City of Fort Collins has an active oil field in the northeast part of the City that was first discovered in
1924 and continues to produce oil. In 2023, City Council adopted new land use restrictions, prohibiting
further development or re-development in this field, due to the close proximity of residences . For existing
sites (10 remaining active sites), and sites near City borders, the City and the County have been working
jointly with the Energy and Carbon Management Commission (ECMC) and Colorado Department of Health
and Environment (CDPHE) to ensure compliance and accountability for ongoing violations.
Regulatory Activity Update
On February 9, 2024, ECMC Director issued an Order for Prospect Energy to stop production at the
Hearthfire #1 well, located just north of City limits.
o This is related to a flaring restriction in new ECMC rules (adopted in 2021), and lack of Gas
Capture Plan or Variance.
o This Order is expected to remain in place pending ECMC consideration of a Variance
(unscheduled).
ECMC has two pending, unscheduled Hearings related to this flaring issue (violation due to
continued flaring and consideration of Variance).
o The City of Fort Collins and Larimer County have both requested Party Status to participate
in Hearings.
o These are expected to be scheduled within 60-90 days.
CDPHE has been amidst settlement negotiations with Prospect Energy for more than a year.
o This is related to a Compliance Advisory issued on August 9, 2022 regarding multiple issues,
including leaks and a fire.
o CDPHE and Prospect negotiations are confidential, and timeline is unknown .
City staff continue to coordinate response related to October 31, 2023 pipeline spill.
o City is still awaiting sediment and erosion control plans before remediation can take place.
o Following remediation, operator will need to submit a development application for
reconstruction of the flowline.
City and County are jointly preparing an application, pursuant to ECMC Rule 211, where local
governments can request ECMC consider plug and abandon orders for wells that are low or non-
producing.
o Expected to be submitted for consideration within next 30-60 days.
Next Steps
Staff will continue to provide updates regarding these regulatory and enforcement actions .
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