PDC Energy to take steps to reduce volatile organic compound emissions under settlement

Government agencies announced Tuesday a settlement with Denver, Colorado’s PDC Energy, Inc. that resolves complaints of Clean Air Act violations filed against the company and requires it to take steps to reduce its volatile organic compound (VOC) emissions.

The complaint, which was filed on June 26, alleged that the company violated requirements to reduce VOC emissions from its oil and gas exploration and production activities in the Denver area.

Under the settlement with the Department of Justice (DOJ), the U.S. Environmental Protection Agency (EPA) and the State of Colorado, PDC will spend approximately $18 million to reduce emissions through system upgrades, improved operations and maintenance practices, monitoring and inspections.

PDC also must undertake environmental mitigation projects at certain sites to further reduce emissions, which will cost an additional $1.7 million. The settlement also includes a $2.5 million civil penalty to be split evenly between the United States and the State of Colorado. The state’s part of the penalty may be offset by up to $1 million by implementing state-only supplemental environmental projects.

EPA estimates that the improvement will decrease VOC emissions by more than 1,600 tons per year. PDC already has started this work, which must be completed on a phased schedule with a deadline of June 30, 2019, for the last phase.

“This agreement will result in cleaner air in the Denver area and shows that EPA is committed to enforcing the law in order to ensure public health is protected,” EPA Administrator Scott Pruitt said. “This case exemplifies the strong partnerships with states that are integral to delivering results for American communities and finding solutions that build compliance with the law and prevent future violations.”