DENVER — A recent report from environmental advocacy organizations has raised alarms about oil and gas companies allegedly failing to comply with a Colorado law mandating the disclosure of chemicals used in hydraulic fracturing and drilling. This analysis suggests that nearly 30 million pounds of undisclosed chemicals have likely been injected into the ground across Colorado over the past 21 months.
The report, released on May 20 by Physicians for Social Responsibility, Physicians for Social Responsibility Colorado, the FracTracker Alliance, and the Colorado Sierra Club, highlights significant noncompliance among operators, with Chevron and its subsidiaries reported to account for more than half of the wells lacking necessary disclosures.
This situation has arisen nearly three years after Gov. Jared Polis enacted HB 22-1348, a pioneering legislation in the U.S. designed to require transparency from oil and gas companies regarding their chemical compounding activities during fracking and drilling processes. The law officially took effect in July 2023.
Ramesh Bhatt, conservation chair of the Colorado Sierra Club, expressed his frustration over the lack of compliance, stating that the absence of disclosed information about such a substantial quantity of chemicals poses serious public health concerns. “Whoever knows the information has to supply the information fundamentally,” Bhatt emphasized.
The Colorado Energy and Carbon Management Commission is tasked with enforcing compliance among oil and gas operators. A spokesperson for the commission revealed that no penalties have yet been imposed on companies for failing to meet their reporting obligations. In defense of their stance, the commission stated they are diligently working with operators to ensure adherence to the law and will hold any violators accountable.
To fulfill the disclosure requirements, companies utilize FracFocus, a national database overseen by local environmental health officials, which tracks the chemicals used in hydraulic fracturing. However, the law stipulates that companies cannot classify chemical ingredients as “trade secrets” in Colorado, thus mandating the presentation of such information to state regulators, who are responsible for making it publicly accessible.
Patty Erico, a spokesperson for Chevron, contended that the company is in compliance with state regulations and noted that while some products used in the fracking process are considered trade secrets, it is the responsibility of chemical manufacturers to divulge specific ingredient information to regulators. This interpretation has been met with skepticism by environmental advocates and state lawmakers alike.
Meg Froelich, a state representative who co-sponsored HB 22-1348, voiced her disappointment regarding industry claims that compliance rests solely with chemical manufacturers. She argued that the law clearly states responsibilities for both chemical companies and operators, and the lack of adherence to these obligations is particularly troubling.
Lynn Granger, president and CEO of the Colorado Oil and Gas Association, criticized the report for linking noncompliance to public health risks, asserting that the industry is committed to following state regulations. Granger highlighted ongoing technological challenges in reporting chemical disclosures as part of the industry’s struggle to meet compliance standards.
Fracking, the process in question, involves injecting fluid into rock formations to release trapped oil and gas, often employing various chemical additives to optimize production. According to data from FracFocus, these mixtures can include a range of additives used for purposes such as corrosion prevention and lubrication.
As the report indicated, the bulk of undisclosed chemicals was reported to occur in Weld County. Officials from the county’s Oil and Gas Energy Department expressed their commitment to working collaboratively with the Colorado Energy and Carbon Management Commission to ensure that operators comply with required reporting.
The investigation into compliance found notable discrepancies between data reported as trade secrets on FracFocus and that disclosed to the commission, amounting to significant undisclosed quantities. The analysis showed that about 40% of the wells reported their chemicals by the statutory deadline. Furthermore, the law requires disclosures not only for fracking but also for chemicals used during earlier drilling operations, which have yet to be made available.
The potential repercussions for failing to comply with the law are significant. The Colorado Energy and Carbon Management Commission can impose fines of up to $15,000 per day for violations, which could total over $37 million for recurring infractions across the state’s oil and gas operators.
Environmental advocates assert that accountability for these discrepancies is crucial. Bhatt emphasized the need for state agencies to act appropriately to protect public safety and the environment, while Froelich highlighted the equity issue of compliance and consequences in the industry.
As investigations continue into the noncompliance issue, community members and activists alike are urging state authorities, including Gov. Polis, to enforce the regulations aimed at protecting public health and transparency in the oil and gas sector.
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