Colorado oil firms allowed to avoid $1bn in cleanup bonds, investigation finds
8 reported1 unconfirmed
An investigation by The Guardian and DeSmog examined thousands of state documents to create what it describes as an unprecedented picture of the public toll from aging oil and gas sites in Colorado. The investigation found that Chevron, Oxy (Occidental Petroleum) and Civitas Resources collectively own more than 14,600 dead oil and gas sites where production has ended but pollution or other impacts remain, overlapping with more than 6,000 open spills. According to the investigation, since 2019 the Colorado Energy and Carbon Management Commission (ECMC) could have forced the three companies to hand over as much as $1.3bn in financial collateral but instead allowed them to provide only a sliver of what they might have owed. The investigation also found that if the current pace of cleanup continues, it will take the three companies decades to clean up their existing backlog. In 2024, the regulator said contractors for all three companies had falsified environmental paperwork at hundreds of sites, a situation the companies and the commission say they are investigating. The ECMC acknowledged slow implementation of tightened rules but defended its performance, stating it uses a “risk-based system” to determine financial assurance levels. Chevron stated that assertions it is out of compliance or avoiding its financial assurance responsibilities are false, while Oxy and Civitas did not respond to multiple requests for comment.
What’s reported
The investigation examined thousands of state documents from Colorado’s oil and gas regulator, the ECMC.
Chevron, Oxy (Occidental Petroleum) and Civitas Resources collectively own more than 14,600 dead oil and gas sites and have more than 6,000 open spills.
Since 2019, the ECMC could have forced the three companies to hand over as much as $1.3bn in financial collateral but allowed them to provide only a sliver.
In 2024, the regulator said contractors for all three companies had falsified environmental paperwork at hundreds of sites.
If the current cleanup pace continues, it will take the three companies decades to clean up their existing backlog.
The ECMC acknowledged slow implementation of tightened rules but defended its performance, saying it uses a “risk-based system.”
Chevron stated assertions it is out of compliance or avoiding financial assurance responsibilities are false.
Oxy and Civitas did not respond to multiple requests for comment.
Open questions
The source article does not specify what actions, if any, the ECMC will take regarding the falsified paperwork or the backlog of cleanup sites.
Key figures
Christiaan van Woudenberg, anti-fracking activist and software developer in Erie, Colorado
Dwayne Purvis, petroleum engineering consultant who co-authored a report on Colorado’s fossil fuel liabilities
John Brown, ECMC spokesperson
Allison Cook, Chevron spokesperson
Phil Doe, former US Bureau of Reclamation policy specialist
Jared Polis, Colorado governor
Curtis Shuck, oil and gas industry veteran who works on orphan well cleanup
Sources: The Guardian
