An oil and fuel firm that has been battling the state for a number of years over what regulators say is a sample of violations is suing to overturn an order imposing a $2.3 million penalty and restrictions on its means to promote its oil and fuel.
In a lawsuit filed Tuesday, Denver-based Ok.P. Kauffman Co. requested the Denver District Courtroom to place the order on maintain whereas the courtroom opinions a call by the state Power and Carbon Administration Fee.
The lawsuit is the second that Ok.P. Kauffman, additionally referred to as KPK, has filed towards the state. A Denver District choose put an earlier order towards KPK on maintain in 2023 after the corporate sued to scuttle that one.
The sooner order by ECMC, previously the oil and fuel fee, declared KPK out of compliance with state guidelines and moved to droop all the corporate’s certificates of clearance. That might have primarily shut down its manufacturing as a result of an organization wants the certificates to maneuver its product from the effectively websites and promote its oil and fuel.
In December, the ECMC authorised one other order to droop KPK’s certificates for six areas the place regulators say there are ongoing violations of state guidelines. The brand new lawsuit challenges the order. The corporate has requested trials in each circumstances.
Suspending the certificates prevents KPK from transporting and promoting the oil and fuel it produces, the lawsuit stated. “This manufacturing represents a good portion of KPK’s major income that it makes use of to pay its 158 workers and third-party distributors and to fund its remediation efforts,” in accordance with the lawsuit.
The family-owned firm has about 1,200 wells within the Denver-Julesburg basin of northeastern Colorado. Nearly all of the wells are low-producing.
Throughout a sequence of hearings earlier than the ECMC over the previous few years, attorneys for KPK have accused the state of selective enforcement of its guidelines. State officers have cited a variety of alleged violations by KPK, together with spills at effectively websites, leaks in strains at effectively websites, contaminated soil and the failure to show in well timed and correct experiences.
The ECMC ended a cleanup settlement with KPK in 2023, saying the corporate had didn’t “considerably comply” with it. ECMC staffers testified that solely three of 58 tasks recognized had been accomplished and that the corporate’s practices threatened public well being and security and the setting.
KPK stated in its new lawsuit that ECMC’s findings violated its personal guidelines for enforcement proceedings and violated the corporate’s proper to due course of. Witnesses for the corporate disputed that the state had proved there was a sample of violations.
“KPK continues to be the sufferer of selective prosecution by the ECMC regardless of latest data and perception that different Colorado oil and fuel operators are submitting fraudulent and fabricated experiences to shut environmental remediation areas,” John Jacus, an legal professional representing the corporate, stated in an electronic mail.
State investigators are investigating experiences that two environmental consulting companies submitted false knowledge on cleanup and restoration work on 344 oil and fuel areas, largely in Weld County. The ECMC stated the investigation was launched after oil and fuel operators that employed the consultants alerted regulators.
ECMC spokeswoman Kristin Kemp stated the company doesn’t touch upon ongoing litigation.
“What I can say is that ECMC is dedicated to fulfilling its statutory obligations to guard public well being, security, welfare, the setting and wildlife sources. That can lead to our company taking enforcement actions towards operators who’re non-compliant with ECMC guidelines,” Kemp stated in an electronic mail.
She stated KPK has 36 lively notices of alleged violation.
Get extra enterprise information by signing up for our Financial system Now e-newsletter.
