The funds will be used for projects that will increase public protections
Denver, CO (Apr. 13, 2020) - 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 the ECMC website.