Broomfield Notifies Extraction of Potential Breach of Contract After Extraction Begins Fracking at the Interchange B Pad without Required Tier 4 Engines

In an email with an attached demand letter sent by Broomfield City and County Manager Charles Ozaki to Eric Jacobsen of Extraction at 12:21 pm on July 15, the City and County of Broomfield (CCOB) notified Extraction that they are in potential breach of the Operator Agreement. The letter states that Extraction has refused to agree to use Tier 4 engines as required by the Operator Agreement. The letter demands that Extraction stop completions (fracking) that they began this morning on the Interchange B Pad with Tier 2 engines which cause greater emissions.  You can read the entire letter here.

The letter states that CCOB has been in discussion with Extraction about using Tier 4 engines for several weeks as the Interchange B Pad neared the completions phase.  The letter reminds Extraction that the Operator Agreement states:

“BMP No. 20, Air Quality: A. Minimization of Emissions. To protect air quality, the following will be required: 2. The use of Tier 2 and liquefied natural gas dual fuel hydraulic fracturing pumps. If Tier 4 fracturing pumps become commonly available, Operator will begin using Tier 4 fracturing pumps.”

On a conference call on Monday morning, Extraction failed to provide evidence that Tier 4 engines are not “commonly available” and CCOB’s letter states that they are available from two manufacturers. CCOB requested that Extraction “respond by close of business on Wednesday as to how Extraction intends to resolve this issue.”  In an announcement on the Oil and Gas webpage, CCOB states that Broomfield inspectors are on the Interchange B Pad inspecting completion operations.  

You can read further details about a July 12 email to CCOB from a resident about the required Tier 4 engine usage in our blog.  It is also interesting to note that CCOB has current comments requesting usage of Tier 4 engines on the pending COGCC Form 2A for the Crestone Acme Pad in Erie just north of Anthem Ranch (Document No. 401809671