Abandoned oil and gas wells in Northern Colorado communities "a risk" to public health, Larimer County to take action

Larimer County is proactively working to cap 50 orphaned oil and gas wells in Northern Colorado, a fraction of the more than 1,200 wells that need capping across Colorado. The county recently applied for a $5.2 million grant, which was awarded to them to complete the work.

The county says 40 wells throughout the county are currently not capped, with an additional 10 within Fort Collins city limits also vulnerable.

The wells were abandoned by Prospect Energy, a company that filed for bankruptcy in 2025. However, many of the wells in question are surrounded by homes, community centers and farms.

"Oil and gas development can be done safely. It doesn't belong in residential areas," said Matt Sura, special counsel for Larimer County on oil and gas issues.

Sura noted many communities have developed around the oil and gas sites, some of which had been first drilled around 100 years ago.

"The county has been working really diligently across the last six or seven years to address air quality issues and water quality issues," said Matthew Lafferty, principal planner for Larimer County.

The orphaned wells are peppered across the county, with most being close to the Fort Collins area. Because Prospect Energy has closed, it is now upon the government to take action to make sure they are not leaking or emitting contaminants into the environment and community.

"It has now become the responsibility of the state to plug those wells," Sura said.

CBS News Colorado found some of the wells orphaned by Prospect Energy are only a matter of feet away from homes. Some are less than 50 yards away from neighborhood swimming pools. The wells are not capped and vulnerable to leaking and emitting.

"They range in areas from directly in the neighborhoods to being out on farmer properties," Lafferty said. "There are various chemicals that come out of them from methane to benzine to other associated chemicals that could cause air quality issues, especially for people who have asthma."

Sura and Lafferty said the wells, if not properly and quickly capped, could also impact underground water sources.

That is why Larimer County applied for the Orphan Well Fund grant issued through the Energy and Carbon Management Commission in Colorado. Oil and gas companies are required to make contributions to the fund for every well they own every year, helping prevent taxpayers from having to address issues created by failed companies.

Because Larimer County was granted the $5.2 million, capping the 50 wells in their region will come at no cost to the taxpayer. If everything goes to plan, the county hopes to begin capping some wells by early fall of 2026.

"That should help to limit some of the emissions coming out of these wells that have been abandoned," Lafferty said.
Lafferty said the county is now working to assess which wells are most in need of capping. The hope is that the county can have all 50 wells capped by the end of 2028.

Sura said this grant and the pending work to be done is a victory for residents in Fort Collins and Larimer County, improving health and environment while also potentially returning some land back to generational owners who previously had to leave the property to drilling.

"These wells pose a risk to air quality, ground water, health and safety of nearby residents," Sura said. "Getting all of this cleaned up is going to stop all of that."