Coalition to sue EnCana over Colorado natural gas seepage

Washington (Platts)--18Jun2004

A coalition of environmental and community groups in Garfield County,
Colorado, announced plans this week to take Calgary-based EnCana to federal
court over alleged violations of the Clean Water Act. If the Western Colorado
Congress prevails, EnCana could be on the hook for millions of dollars in
fines -- $27,500/d since Apr 1, when a Silt, Colorado, woman walking on her
ranch discovered natural gas seeping into the creek running through her
property. After testing, EnCana concluded that seepage from the surrounding
land into the creek had existed for millions of years and that its recently
drilled well nearby was not responsible for the gas that bubbled up in the
creek. But the Colorado Oil and Gas Conservation Commission disagreed and
notified EnCana in April that it believed the gas leaked from an improperly
cemented wellhead through rock faults into the creek. According to COGCC
hearing manager Tricia Beaver, the seven-member commission will issue a final
decision in the case at an Aug 16 hearing in Garfield County.

The commission noted that the rate of seepage declined dramatically after
EnCana made repairs on the Schwartz well -- evidence, it said, that the well
was responsible for it. EnCana defended itself by saying it followed state
rules and industry practice in drilling and operating the well and that there
is no evidence of any contamination. Further, the producer said it notified
the commission as soon as it could -- and that it can't be held responsible
for not immediately noticing gas leaking into a creek on private land 3,500
feet from the nearest well. Further, EnCana noted that it suspended operations
in a two-mile radius around the seepage and trucked in testing equipment,
scientists -- even drinking water for the more than 20 families whose
groundwater supply could have been affected. Nonetheless, the state is seeking
fines of $420,000. But the coalition doesn't think that's enough and is suing.
"It's a slap on the wrist to them, just the cost of doing business," organizer
DeAnna Woolston. They're a bad actor."

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