Suit: Noble Energy faces fines for spill, rules violations

WELD COUNTY — The federal government has filed suit against Noble Energy Inc. and related subsidiaries over a spill in 2014 and over failure to have required spill response plans and resources in place.

The violations of federal clean water law could amount to fines in the billions of dollars.

The suit was filed in federal court in Denver Tuesday. Oil giant Chevron Corp. (NYSE: CVX) purchased Noble Energy for $5 billion in October 2020 and made it part of its Rockies Business Unit. It and its related companies operate as wholly owned subsidiaries of Chevron. Noble is the second largest oil producer in the state, with most of its operations in Weld County.

The violations allegedly occurred in Weld County, according to the suit.

The suit outlines two areas of violations.

First, in May or June 2014, the Cache la Poudre River overflowed its banks and flooded an oil installation identified as State M36-ID, 17 Wattenberg Field Tank Battery. M36 was a collection point for several wells in the vicinity. It was situated about 400 feet from the Poudre and within the 100-year flood plain. About 168 barrels of condensate and five barrels of produced water flowed into the river. The site was decommissioned in April 2019.

Second, the Wells Ranch Central Gathering Facility at 32990 County Road 68 near Gill failed to have adequate spill plans and materials in place, the suit said, and during EPA-conducted tests  in 2016 and 2017 failed multiple provisions of the Clean Water Act. The lawsuit alleged that spills from the Wells Ranch site could flow into multiple ditches and streams, including the South Platte River. The Wells Ranch site could hold 6 million gallons, or 142,857 barrels, of oil in above ground tanks; its largest tank had a capacity of 370,000 gallons of oil or about 8,800 barrels. 

Maximum fines permitted under the Clean Water Act could result in fines of $2,100 per barrel of oil spilled. Also, for failure to follow facility response, training and drills regulations, the company could be on the hook for fines of $47,762 per day per violation. The suit alleged that violations subject to daily fines extend back years.

Laura Riese, the Davis, Graham & Stubbs LLP attorney for the oil company, did not respond to a request for information, however, Paula Beasley, communications adviser for Chevron’s Rockies unit, sent a written statement.

“Noble Energy and Noble Midstream reached an agreement with the federal government to settle alleged violations related to a flood-related release event in 2014 and emergency response plan and drill deficiencies,” she wrote. “Noble Energy decommissioned and removed the tank involved in the release and all of the associated equipment to return the area to agricultural use and installed enhanced secondary containment in active floodplain locations. Noble Midstream corrected deficiencies in its Facility Response and SPCC plans, and successfully completed an equipment deployment exercise. Noble Midstream also implemented an ongoing response training and drill program that is aligned with federal requirements,” she wrote.

Laura Thoms, attorney for the Environment and Natural Resources Division of the U.S. Justice Department, did not respond to a call seeking clarification of the case. Wyn Hornbuckle, spokesman for the Department of Justice, confirmed the potential fine amounts.

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