ADAMS COUNTY, Colo. — In a first for Colorado, a lawsuit filed last week in Adams County argues oil companies defrauded families by escaping their liabilities and leaving landowners to deal with orphan wells.
Cindy and Ronald McCormick built their forever home in the sprawling plains far east of Denver. They love the sweeping mountain views during the day and star-filled skies at night. But the land came with an eyesore: an old oil and gas well surrounded by large tanks, a rusting shed and a pit in the ground.
They’ve lived near oil and gas operations before and never had any problems.
“But in this new situation, it’s completely different,” Cindy McCormick said.
In a first for Colorado, a lawsuit filed last week in Adams County argues oil companies defrauded families by escaping their liabilities and leaving landowners to deal with orphan wells.
Posted at 4:17 PM, Mar 01, 2024
and last updated7:01 PM, Mar 01, 2024
ADAMS COUNTY, Colo. — In a first for Colorado, a lawsuit filed last week in Adams County argues oil companies defrauded families by escaping their liabilities and leaving landowners to deal with orphan wells.
Cindy and Ronald McCormick built their forever home in the sprawling plains far east of Denver. They love the sweeping mountain views during the day and star-filled skies at night. But the land came with an eyesore: an old oil and gas well surrounded by large tanks, a rusting shed and a pit in the ground.
They’ve lived near oil and gas operations before and never had any problems.
“But in this new situation, it’s completely different,” Cindy McCormick said.
Recent Stories from denver7.com
The owner, Painted Pegasus, told the McCormicks that the well was no longer operating, and the company would soon get rid of the equipment.
“They were going to plug it and clean everything up,” she said. But years later, “it’s still here and they’ve disappeared.”
The orphaned well on their land is one of roughly 1,800 in Colorado, including nearly 200 left behind by the now-defunct Painted Pegasus.
The company went bankrupt, leaving the cleanup costs to taxpayers as part of a “massive fraud,” according to a lawsuit filed last week on behalf of the McCormicks and other landowners stuck with orphaned wells.
“The scheme is an attempt to pass the buck,” said Christopher Carrington, one of the attorneys bringing the lawsuit against Painted Pegasus, HRM Resources and some of those companies’ executives: L. Roger Hutson, Terry Pape and John Hoffman. Denver7 contacted the companies and individuals but did not receive any response.
Read the rest of this article and watch the accompanying video on Denver7.com
Angelika Albaladejo 
0 comments on “Oil companies used ‘fraud scheme’ to avoid cleanup responsibility for abandoned wells, lawsuit alleges”