Oil and Gas Regulations & Information

The Larimer County oil and gas regulations can be found in the regulations tab below or at Article 11.0 of the Larimer County Land Use Code. Article 11.0 contains the current regulatory framework overseeing the development of oil and gas facilities in the County, and specifically directs the regulations to:

Protect the public health, safety, welfare, and environment and wildlife resources,
Ensure a comprehensive and transparent public land use process for the development of new oil and gas facilities, and establish criteria for the review and approval or denial of oil and gas applications,
Avoid impacts to public health, safety, welfare, and the environment and wildlife resources through the application of reasonable siting requirements and land use regulations,
Minimize to the maximum extent possible the nuisance effects of oil and gas facilities through the application of best available techniques and technologies,
Maximize protection of natural and cultural resources and public facilities, and
Confirm the financial, indemnification and insurance capacities of the oil and gas developer/operator to ensure timely an effective construction, production, removal and reclamation of oil and gas facilities and infrastructure.

Noteworthy Oil and Gas Enforcement Actions

On February 8, 2024, Julie Murphy, Director of The Energy and Carbon Management Commission (ECMC) issued a Rule 901.a Order against prospect Energy for it illegal flaring of the Hearthfire #1 well located at the Fort Collins tank battery site in the northwest reaches of the Hearthfire Neighborhood. The Order as issued requires that "Prospect immediately cease all venting and flaring at the Hearthfire #1 Well, except under the circumstances detailed in 903.d.(1)(A), (B), (D), or (E). Moreover, Prospect will immediately cease all production activities at the Hearthfire #1 Well."

With regard to the flaring of gas from the Hearthfire Well, Larimer County and the City of Fort Collins have requested party status to comment at the ECMC hearings for both the alleged violation and Prospect Energy's variance request to allow flaring at the Hearthfire well.

(Click here to view the CMC issued Rule 901.a Order)

On February 21, 2024, the Air Pollution Control Division issued letter regarding a negotiated enforcement settlement with Prospect Energy. The settlement addresses numerous air quality violations, over the past two years, by Prospect Energy at both the Fort Collins tank battery and the Krause tank battery.

Highlights of the agreement include:

Payment of 337,050.00 in penalties by Prospect Energy
Krause Facility Requirements:
- Prospect must comply with the provisions of the Krause Facility's most recent Odor management Plan,
- Prospect must comply with the most recently approved Storage Tanks Emission Management (STEM) Plan for the Krause Facility,
- Installation of Hydrogen Sulfide (H2S) monitors,
- sampling every three months for H2S
- Development of and action plan if monitors detect H2S
- Installation of high performance theif hatches on tanks
- Infrared camera inspections every two weeks
Fort Collins Facility Requirements:
- Prospect must comply with the most recently approved Storage Tanks Emission Management (STEM) Plan for the Fort Collins Facility.