The oil and gas industry should move operations as far from Colorado waterways
as possible and do a better job of flood-proofing wells and tanks, according
to a state report released Monday.
The report by the Colorado Oil and Gas Conservation Commission staff on
"lessons learned" from the September floods that ravaged the Front Range recommends new
oil and gas regulations.
Among the requirements would be more information on operations near waterways
and better construction and safety equipment.
The massive floods forced the closure of 2,658 wells at the peak of the storms, washed out berms, broke pipes and swept away
oil and gas tanks. The commission staff determined there were 1,614 wells
in the flood zone. "Many oil and gas facilities located near flooded
streams were damaged," the report said. "Oil, condensate and
produced water spilled into the environment."
About 48,250 gallons of oil and condensate spilled, and more than 43,478
gallons of produced water were released, according to the report. The
Colorado Oil & Gas Association, issued a statement immediately after
the report was released. "COGA does not believe any legislative or
statutory changes are necessary," association president Tisha Schuller
said in a statement. "We will continue to work with the commission
to share lessons learned and continually improve best management practices,"
Schuller said. The oil and gas commission, a regulatory panel appointed
by the governor, is slated to take up the report's recommendations
at its April meeting.
"This report is a first step," said Alan Gilbert, the state Department
of Natural Resources' flood response coordinator. "We need to
figure out what if anything the state should do and
what the industry should do," Gilbert said. The oil and gas commission has identified 20,850
wells within 500 feet of rivers, streams and drainages, including 5,900
near significant waterways. "We are concerned by the number of wells
so close to our surface waters," said Laura Belanger, a water resource
engineer with the environmental group Western Resource Advocates. "Even
without floods, there are a lot of spills," she said. The report
noted problem areas such as flowing water eroding earthen berms and foundations
below tanks and equipment. "Early on, there were
widespread fears that public safety was threatened by damaged oil and gas equipment" during the floods, the report said.
"Those fears later proved to be unfounded, but they attracted nationwide
attention." Among the recommended requirements for wells and operations
near waterways are:
• Inventories of wells and equipment.
• Automatic shut-in valves for wells within a designated distance
of the normal high-water mark. These were very effective during the September flood.
• No pits allowed within a designated distance of the high water mark.
• Secondary containment constructed of steel berms and synthetic liners
around wells and tanks. No earthen berms.
• Tanks and equipment must be secured to the ground with anchors and cables.
• Structural fencing must be located upstream to protect the well site.
• Tanks and production equipment should be located as far from waterways
as possible.
The report also recommended that the oil and gas commission upgrade its
emergency management procedures. "This doesn't go far enough,"
said Bill Dvorak, a public lands organizer for the National Wildlife Federation.
"We really need riparian setbacks to keep oil and gas operations
away from streams." At their April meeting, the oil and gas commissioners
will decide which recommendations they want to pursue, the Department
of Natural Resources' Gilbert said.