XTO Energy Inc. was fined $10,000 on Tuesday for a spill in March that sent at least 70 barrels of produced water from natural gas drilling into Lone Hollow Creek, about 12 miles east of Durango.
The Colorado Oil and Gas Commission approved the penalty, citing the Aztec-based operator for “the failure to take reasonable precautions to prevent failures, leakage and corrosion of pipelines.”
According to state documents, XTO discovered a produced-water spill at a pipeline just north of U.S. Highway 160 on March 3, and began cleanup operations.
The next day, XTO determined the spill occurred because of equipment freezing on the pipeline, and estimated the leak released 70 barrels – nearly 3,000 gallons – of produced water, a byproduct of oil and gas operations.
On March 8, state inspectors found the spill had flowed into Lone Hollow Creek, where “it commingled with snow melt.” Because the release entered a waterway, it constitutes a threat to “Waters of the State” and requires a mandatory fine.
State documents indicate XTO has taken actions to prevent any future spills. On March 28, the state closed its investigation with conditions that if future levels of contaminates in the soil or groundwater exceed state standards, it could initiate further actions.
Representatives of XTO did not respond to requests for comment.
Also on Tuesday, the oil and gas commission issued an “Order Finding Violation” against Petrox Resources Inc. for not closing its well in Archuleta County after operations finished in 2014.
The state contends drilling was completed at the well on Nov. 11, 2014, but reclamation of the site did not conclude until July 23, 2015, violating the state’s six-month closure requirement. Petrox is subject to fines as a result of the commission’s approval.
jromeo@durangoherald.com