Colorado Oil & Gas Conservation Commission Approves $18.25 Million Penalty for Firestone Tragedy

This content was originally published by the Longmont Observer and is licensed under a Creative Commons license.

The Colorado Oil and Gas Conservation Commission (COGCC) today announced it has approved the $18.25 million penalty against Kerr-McGee, a subsidiary of Occidental Petroleum, at an Online Special Hearing. The Commission considered COGCC staff’s Administrative Order by Consent (AOC), as a part of the enforcement process, and heard from Kerr-McGee and Mrs. Erin Martinez, who lost her husband and brother when her home was destroyed on April 17, 2017. 
“I want to acknowledge Mrs. Martinez, for her commitment to improve the safety and the lives of all Coloradans. You are making a difference. While none of this will ever make up for your loss, your courage through this tragedy has been an inspiration to me, and everyone,” said Dan Gibbs Executive Director, Department of Natural Resources and Chair of the COGCC Commissioners. "What our Commission can do is to continue to hold oil and gas operators accountable and be forever vigilant to ensure this type of tragedy never happens again."
On March 12, the Commission issued a Notice of Alleged Violation (NOAV) of four of COGCC’s rules and sought an $18.25 million penalty. This amount is the maximum dollar amount possible and included, for the first time, the ‘aggravating factor of death.’ This aggravating factor increased one of the penalties from $3.6 million to $5.4 million. Because of the loss of lives, this is the largest penalty ever by COGCC, by more than 11 times. 
“We thank Mrs. Martinez, the Commissioners and COGCC staff for their work that will ensure the state of Colorado’s oil and gas operations are conducted in a manner that is protective of the public’s health, safety, welfare, wildlife and the environment as directed by SB 19-181,” said COGCC Director Jeff Robbins. “Over the next few months, the COGCC will be focused on developing new rules that reflect this commitment to protect Coloradans in oil and gas operations.
“Also, I’m pleased to announce that COGCC will honor Mrs. Martinez’ family by naming the public projects funded by this penalty to ‘The Mark Martinez and Joey Irwin Memorial Public Projects Fund,’” said Robbins. 
In November 2019, the COGCC increased the protections to the public through stronger and more transparent flowline rules. To learn more about the COGCC, visit our website: www.colorado.gov/cogcc.
Below, please find "The Mark Martinez and Joey Irwin Memorial Public Projects Fund" list.  
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The Mark Martinez and Joey Irwin Memorial Public Projects Fund
Public Projects OverviewThe Colorado Oil and Gas Conservation Commission (COGCC) proposed the following public projects be funded from monies received from settlement of the Kerr-McGee/Occidental enforcement matter. The projects would be administered by either the COGCC or the Colorado Department of Public Health and Environment (CDPHE). All costs are estimates.
Aerial Survey ProjectPerform aerial surveys at least once per year for two years in the D-J Basin, which is part of the North Front Range ozone non-attainment area. Aerial surveys have the potential to identify and significantly reduce leaks from pipelines/flowlines, production pads, tanks, central gathering facilities, compressor stations. Identifying and resolving these leaks not only results in reduced exposure to organic compounds that can affect public health and emissions of ozone precursors, it prevents the economic waste of the product. Aerial surveys may also be expanded to other oil and gas basins in Colorado.
Cost $2,000,000. 
Mobile Air Monitoring VanAcquire a mobile air monitoring van to measure pollutants, and help determine and locate leaks. The van would be a supplement not only to CDPHE’s CAMML, but also to APCD inspectors. This mobile air monitoring van would be driven past oil and gas facilities and operations, as well as near flowlines/pipelines. As the van detects leaks, measures are taken to specifically locate the leak and promptly notify the responsible operator.
Cost $1,595,000 plus $250,000 per year for 2 years operational expenses
Intrinsically Safe Optical Gas Imaging CamerasCurrently CDPHE and COGCC use this specialized type of camera to visualize natural gas that is emitted at oil and gas facilities. These cameras can help in identifying leaks and equipment malfunctions that result in uncontrolled emissions. The cameras are nearing the end of their useful life and must be replaced. In addition there is new technology that allows the cameras to quantify (measure) the amount of gas emitted.
Cost for 9 cameras and necessary equipment $ 1,100,000
Satellite and Remote Sensing TechnologyOver the past two years, an E&E Lab Research Fellow (embedded at CDPHE) and the team of faculty and researchers at University of Chicago have been working closely with CDPHE to identify opportunities to leverage new technology and advanced analytics to improve air quality. The E&E Lab is developing machine learning models to help CDPHE improve effectiveness and efficiency of monitoring and inspections through better resource targeting. The E&E Lab is also supporting CDPHE in assessing opportunities emerging from advances in remote sensing (e.g., satellite, drone and aircraft-mounted sensors), which are poised to drastically lower the cost of emissions monitoring while improving measurement precision. The E&E Lab is working with CDPHE to create proofs-of-concept and develop policies to leverage state-of-the-art technology to help achieve emissions reductions; and to measure the impact and effectiveness of the technology-informed approach to enforcement.
Cost $1,000,000 per year for two years
Methane Emissions Technology Evaluation Center (METEC) With additional funding, METEC will help to develop and characterize leak detection technologies for flowlines (gas migration experiments in different soil types). 
Cost $1,100,000
Gas Detection and Metering EquipmentCOGCC currently needs to update gas detection and metering equipment. This equipment will allow for more accurate detection and measurement of stray gas both in the soil and atmosphere.
Cost $300,000
Remote Methane Leak DetectorsThese machines are highly portable and capable of detecting small leaks in open areas, such as flowlines and pipelines. These can be used in conjunction with Optical Gas Imaging cameras to find and quantify emissions. These cameras would be deployed by COGCC flowline integrity inspectors on a regular basis. 
Cost $42,000
Legal Expense ReimbursementThe Frederick & Firestone Fire Protection District incurred legal expenses related to the Firestone investigation and the National Transportation Safety Board process. This money would help defer those costs.
Cost $50,000
Public Health, Safety, Welfare and Environment ProjectsMonies will be reserved to fund between 2021 and 2024 additional high priority public projects that protect public health, safety, welfare and the environment. The COGCC will work with Kerr-McGee and CDPHE to identify these projects. $8.5 million will be escrowed by Kerr-McGee for these projects.