Colorado Oil & Gas Authorities Fining K.P. Kauffman Oil Group For Violations

DENVER (CBS4) - The Colorado Oil and Gas Conservation Commission says K.P. Kauffmann Incorporated violated rules and regulations. A hearing about it could determine the fate of nearly 90 oil wells in the state.

"This is also a case about Staff's subsequent loss of faith in KPK's ability to operate in a manner that is protective of public health, safety and welfare, the environment, and wildlife resources," the commission stated.

The commission wants to impose a $3.7 million penalty on the company after what they call eight "distinct" violations. They add the company "has a serious issue with its flowline integrity, regularly impacts third parties (i.e., complainants) with their operations, fails to adequately respond to environmental issues when they occur, and regularly and consistently does not comply with corrective actions," COGCC said.

KPK disagreed saying it followed all rules regarding any spills or incidents which included a gas spill near a high school.

The hearing for KPK will take place Tuesday through Friday.