The U.S. Environmental Protection Agency (EPA), the Justice Department and the state of Colorado recently announced a settlement with Denver-based K.P. Kauffman Company Inc. (KPK) resolving alleged violations of the federal Clean Air Act and Colorado air quality regulations. The settlement requires KPK to implement pollution control measures at 67 well production facilities – for a total estimated expenditure of USD 2.5M. The company will also pay a USD 1M civil penalty.
As part of the agreement, KPK will implement measures to improve operation and maintenance practices and ensure the vapor control systems on its storage tanks are adequately designed and sized. These improvements are expected to reduce VOC emissions from KPK’s operations by approximately 424 tons per year.
KPK will also implement three environmental mitigation projects to further reduce VOC emissions. First, KPK will install rod lifts at 12 oil and gas wells to reduce or eliminate the need to unload the well. Second, KPK will use a Boreal Laser to scan for methane emissions at all well production facilities covered by the consent decree. Third, KPK will implement operation and maintenance requirements.