Extraction Oil & Gas Files For Chapter 11 Bankruptcy In Broomfield

Press release from the City and County of Broomfield:

June 15, 2020

On Sunday, June 14 2020, Extraction Oil & Gas, Inc. filed for bankruptcy protection to allow it to reorganize under Chapter 11 of the Bankruptcy Code. Because of Extraction’s declining financial situation, Broomfield’s City and County Attorney’s Office retained the law firm of Shapiro Beiging Barber and Ottenson in December of 2019 to advise and represent the city in potential bankruptcy proceedings. John Leininger, who has more than 20 years of bankruptcy experience and has worked on oil company bankruptcies, is lead counsel on this matter. Broomfield will participate in the bankruptcy proceedings to protect its interests and those of its residents.

During and after the bankruptcy proceedings, the Operator Agreement between Extraction and Broomfield remains in full force and effect. Extraction’s officials say their current plan will leave the company and its existing management operating the company and its assets as debtors in possession during the reorganization. We do not expect to see any change in Extraction’s operations. Extraction has previously advised Broomfield that other than continuing production at the Interchange and Livingston Pads, it does not have further drilling or fracking operations scheduled in Broomfield in 2020. Extraction is required under the operator agreement to provide 30 day advance notice of its intent to restart operations.

The health and safety of our residents remain paramount. Broomfield’s inspection staff continues to be onsite for routine inspections and daily monitoring of all processes on the Extraction well pads to monitor Extraction compliance with the law and the terms of the Operator Agreement, the best management practices, and the comprehensive drilling plan. Also employed in the Broomfield inspection process is an IR camera used to detect any emissions off of equipment. Broomfield’s Air Quality Monitoring Program, informs staff on any oil and gas emissions of concern in order to follow-up on sources and potential improvements in best management practices on these well pads.

Broomfield’s inspectors monitor all of Extractions plugging and abandoning operations and well maintenance operations, with onsite monitoring and staying in contact with the Colorado Oil and Gas Conservation Commission (COGCC) throughout these processes. Broomfield has implemented a soil gas testing program to monitor plugged and abandoned wells.

The COGCC continues to be responsible for inspections to ensure Extraction’s compliance with state law. Broomfield staff has regularly scheduled meetings with the COGCC, discuss inspection issues, and the Colorado Department of Health and Environment (CDPHE) on Broomfield’s air monitoring and health tracking efforts.

This press release was produced by the City and County of Broomfield. The views expressed are the author's own.