Thursday, June 1, 2017

Deadline day for oil and gas inspections in Colorado following fatal explosion

Colorado’s energy companies are facing a deadline today to report to the state the results of inspections on oil and gas wells statewide — and the location of pipelines associated with wells within 1,000 feet of buildings.

The inspections have been a massive undertaking in a short timeline, since the order covers all of the more than 54,000 active wells in Colorado.

The inspection order was issued by Gov. John Hickenlooper and the Colorado Oil and Gas Conservation Commission (COGCC) on May 2, shortly after local Firestone fire officials announced they had linked a fatal April 17 home explosion to raw natural gas leaking through a small, abandoned one-inch flow line that was found still attached to an oil and gas well about 178 feet from the house at 6312 Twilight Ave.

Homeowner Mark Martinez, 42, was killed in the disaster in Firestone’s Oak Meadows neighborhood, as was his wife Erin’s brother, Joseph William “Joey” Irwin III, also 42, of Frederick. Erin Martinez also was critically injured in the blast, and their 11-year-old son, who was injured, was treated and released from a hospital. The couple’s daughter was not at home at the time.

The well had a series of owners, and since 2014 had been owned and operated by Anadarko Petroleum Corp. (NYSE: APC). The Texas company, one of Colorado’s biggest energy companies, said last week it would shut down the three wells it operates in the Oak Meadows subdivision and sever the one-inch flow lines at all of its more than 3,000 vertical wells in the state.

The state’s first deadline for inspections of oil and gas wells across Colorado was Tuesday, May 30, a second deadline for additional work is June 30.

Michael Edwards, the senior director for investor relations with Denver’s PDC Energy Inc. (NASDAQ: PDCE), one of the five biggest oil and gas companies working in the Denver-Julesburg (DJ) Basin north and east of Denver, said Tuesday that the company met the May 30 deadline for inspections and filed its report with the COGCC on Saturday, May 27.

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