Colorado regulators haven’t found a clear motive or pattern to explain why two environmental consulting firms allegedly falsified soil and water quality results on behalf of the state’s largest oil and gas operators.
But the Energy and Carbon Management Commission, a regulatory agency formerly known as the Colorado Oil and Gas Commission, continues to investigate whether the potential misconduct has resulted in environmental damage at nearly 350 oil and gas clean-up sites in Weld County. The findings could result in fines and criminal charges.
On Tuesday, agency director Julie Murphy told commissioners overseeing the agency about new datasets and maps showing locations impacted by the altered data. She also outlined the sites regulators plan to investigate first, which will help determine if any locations require new or additional environmental remediation work.
“Our top priority here is determining the risk to public health or safety. Based on our investigation to date, we remain confident that the falsified data creates no new risks to public health,” Murphy said.
The commission accused two firms of submitting falsified records in November. One of the companies, Eagle Environmental Consulting, was hired by Chevron, Colorado’s largest oil and gas producer. Tasman Geosciences worked for Civitas Resources and Occidental Petroleum Corporation, the state’s second and third-largest oil and gas operators.
The consulting firms did not respond to CPR News’ request for comment after regulators announced the investigation last month. A spokesman for Tasman Geosciences, however, has told the Greeley Tribune the employee responsible for the data falsification is no longer with the company, and it expects to be in full compliance with the state by the end of the year.
Regulators are investigating both firms for allegedly submitting forms containing false dates and manipulated test results for a wide range of soil and water contaminants between 2021 and 2024. The agency is now considering whether to fine the companies, and Murphy has told commissioners the degree of fraud likely merits a criminal investigation.
The newly released information shows contractors submitted falsified data for 344 sites in Weld County that were either impacted by an oil and gas spill or contained closed fossil fuel operations. More than 86 percent are located in unincorporated Weld County, according to the commission. The remaining sites sit within the boundaries of 15 cities and towns, including Greeley, Milliken and Evans.
Remediation work has been completed on roughly half the sites, meaning the clean-up projects met state standards for oil and gas cleanup operations. The other half are presently undergoing site investigation and remediation work.
Murphy said the commission plans to start their investigation with 34 closed sites located within municipalities. The goal is to determine if the sites closest to populated areas require additional remediation work.
Murphy said the agency plans to investigate those sites “relatively quickly” before reexamining other closed locations. She guaranteed commissions that “by the end of our investigation, we will look into every site.”
Beyond testing individual sites, the regulators have also tasked Mike Leonard, a compliance manager with the commission, to investigate the scope of the larger data integrity problem. Murphy said the work could reveal additional sites affected by the falsification scandal.
So far, the preliminary investigation hasn’t uncovered a motivation behind the falsified reports. Murphy said the extent of the deception appears “erratic and somewhat patternless,” and it’s unclear why a “few individuals” working for the firms allegedly altered data submitted on state regulatory forms.
Murphy, however, said it’s regulators’ responsibility to ensure oil and gas operators and their contractors comply with state environmental, health and safety rules. The commissioners have also asked its staff to provide quarterly updates on the investigative work going forward.
The state oil and gas agency has been working with the Attorney General’s office, which could launch a criminal investigation into data falsification issue. Oil and gas operators involved in the scandal told CPR News they promised to fully cooperate with state authorities.
