A class action complaint filed in Colorado District Court by Colorado landowners alleged that the defendants “conspired to avoid millions of dollars of oil and gas well asset retirement obligations by fraudulently transferring hundreds of defunct and uneconomic oil and gas wells to a shell company, which then filed bankruptcy.” The plaintiffs sought to hold the defendants accountable for obligations to plug the wells on the plaintiffs’ properties and reclaim and remediate surface properties. They also sought to hold the defendants liable for “ongoing torts committed daily by virtue of the unplugged, defunct oil and gas wells and related equipment” left on the plaintiffs’ land. Among the alleged harms of unplugged wells were methane emissions.  The complaint asserted claims of trespass, violation of the Colorado Uniform Fraudulent Transfer Act, civil conspiracy to commit trespass, civil conspiracy to commit fraudulent transfer, unjust enrichment, aiding and abetting trespass, and negligence.

Colorado landowners' lawsuit seeking to hold defendants accountable for obligations to plug defunct oil and gas wells and reclaim and remediate surface properties.

McCormick v. HRM Resources, LLC

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Colorado Landowners Filed Class Action to Hold Defendants Liable for Abandonment of Oil and Gas Wells

Filed

United States of America

Colorado

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Colorado Landowners Filed Class Action to Hold Defendants Liable for Abandonment of Oil and Gas Wells

Policy instrument

Risk

Impacted group

Fossil fuel

Greenhouse gas

Economic sector

Finance