Already at odds with Colorado regulators, oil and gas operator P. Kauffman just entered a higher level of fight over its more than 1,000 unplugged wells.
State regulators recently ordered the company to post a $133 million bond to assure its 1,089 wells will be properly plugged. The order came from the Colorado Energy and Carbon Management Commission, formerly known as the Colorado Oil and Gas Conservation Commission.
In response, the oil and gas company said it will challenge the move, arguing, “If the commissioners’ order were to stand, KPK would be the highest-bonded oil and gas operator in the U.S. The company was given 90 days to post at least 10% of the total amount or $13.3 million. It would also be required to add another 10% each year for the next 10 years.
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