Contamination data falsified at hundreds of Colorado oil and gas sites, state says

An oil pump jack is pictured east of Longmont, Colo. on June 24, 2020.
(Andy Bosselman for Newsline)

Two consulting firms working for a trio of Colorado oil and gas giants submitted falsified data about the environmental conditions at hundreds of locations in Weld County, regulators alleged in a public hearing Tuesday.

Julie Murphy, director of the Colorado Energy and Carbon Management Commission, told the agency’s five-member board of commissioners that employees of two firms, Eagle Environmental and Tasman Geosciences, “created false laboratory data and reports” relating to soil and groundwater contamination, which were submitted to the ECMC as part of spill cleanup and site remediation procedures between 2021 and summer 2024.

Murphy said regulators first became aware of potential falsification in July, and the ECMC is investigating the data submitted for approximately 350 sites, all of which are located in Weld County. In an emailed statement, the ECMC said that its “awareness of the scale of the issue grew over time.” The agency “determined that urgent notification was not warranted,” Murphy told commissioners.

“The falsified data does not present a new or increased risk to public welfare, safety or the environment,” she said. “It does mean, in some instances, that the duration a spill will impact the environment may be extended.”

The ECMC, formerly known as the Colorado Oil and Gas Conservation Commission, regulates all oil and gas operations within the state. Its health, safety and environmental rules have undergone a comprehensive update in the wake of a 2019 reform law passed by Colorado lawmakers.

“I am disappointed in the actions of a few consultants to oil and gas operators who have undermined the industry’s ability to meet their regulatory obligations,” Dan Gibbs, executive director of the Colorado Department of Natural Resources, which oversees the ECMC, said in a statement.

Chevron and Civitas Resources hired Eagle Environmental and Occidental Petroleum hired Tasman Geosciences to perform sampling and analysis work at the sites in question, Murphy said. The three companies are far and away Colorado’s largest oil and gas producers, and together accounted for roughly 90% of all oil produced in the state in 2023.

While the investigation is ongoing, Murphy said that “numerous provisions of ECMC rules” and state laws appear to have been violated, which could result in regulatory enforcement actions by the agency, in addition to possible criminal proceedings.

“I do believe that the degree of alleged fraud warrants some criminal investigation, but that is beyond our regulatory authority,” Murphy said. “Of course, our folks will cooperate with law enforcement.”

“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,” said Gibbs.