Oil companies used fraudulent scheme to shift liability for orphaned Colorado wells onto the state, lawsuit claims (Colorado Sun)

    2
    0

    Oil companies used fraudulent scheme to shift liability for orphaned Colorado wells onto the state, lawsuit claims – By Mark Jaffe (Colorado Sun) / Feb 24, 2024

    Denver-based HRM Resources acted as a middleman, moving wells from larger companies to smaller ones that went bankrupt, lawsuit says

    A rusting orphan well sits at the end of Cindy McCormick’s driveway. She passes it when she goes out and when she comes home — a horsehead pump jack, a dilapidated shed, big weather-stained tanks and a pit.

    The old oil and gas site has become a dumping ground attracting mattresses, couches and an old foosball table. The sign on the well pad located in unincorporated Adams County identifies the owner as Painted Pegasus Petroleum LLC — a bankrupt Texas company.

    It is just one orphan well among an estimated 1,800 in Colorado, but a lawsuit filed in Adams County District Court contends it is part of a large, fraudulent scheme to dump old, played-out wells onto the state.

    Adams County leads the state in orphan wells with 318. “It is a serious concern for the county and a growing concern as the number keeps increasing incrementally,” said Gregory Dean, the county’s oil and gas administrator.

    CONTINUE > https://coloradosun.com/2024/02/24/colorado-orphaned-oil-wells-cleanup-lawsuit/

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here