Larimer County to use $5.2M state award to plug and decommission 50 orphaned wells in Prospect Energy field

Larimer County commissioners voted April 7 to accept a $5.2 million intergovernmental grant from the Energy and Carbon Management Commission (ECMC) to plug and decommission orphaned oil and gas wells left by Prospect Energy.

Principal planner Matt Laferty told the board the award will fund plugging and decommissioning operations, removal of tanks and flow lines, and soil remediation at sites where equipment and leaking containers pose environmental and safety hazards. Laferty said roughly 50 wells in Larimer County remain in the state’s orphan‑well program — about 10 of those lie inside Fort Collins — and many were discovered and developed decades ago.

"This action item is for the county commissioners to accept and authorize signature of any grant agreement pursuant to the Energy and Carbon Management Commission's awarding of $5.2 million to Larimer County for the plugging and decommissioning operations associated with the Prospect Energy oil and gas sites that have been abandoned," Laferty said as he described site photographs and risks.

County staff said the county will issue a request for proposals to hire an operator, prioritize wells by community threat, require operator engineering plans for plugging (including plugs placed above and below groundwater where required), coordinate ECMC inspections, and seek state reimbursement for work completed. Laferty said the county expects to issue the RFP shortly, hopes to have an operator in place by June–July, and noted ECMC’s rules set a final completion target of July 2028 if all proceeds as planned.

Commissioners asked about public outreach, before/after documentation, groundwater testing and flow‑line removal. Laferty said staff will use the county oil‑and‑gas web page and planned community outreach (including neighborhood events) to notify residents; he said he has engaged Department of Health and Environment staff and CSU about potential air and soil sampling. Matt Surah, county special counsel on oil and gas matters, said soil contamination found during work will be reported to ECMC and handled through ECMC’s remediation process.

Commissioner Shadic McNally moved to approve the intergovernmental grant agreement; commissioners praised the cross‑jurisdictional partnership with Fort Collins and state agencies, and the motion passed 3–0.

County staff said the $5.2 million award should reimburse county costs and is intended to accelerate plugging that might otherwise take years under existing state schedules.