Suncor settled with Colorado for $10.5 million but neighbors say ‘they’re trying to shift attention'
COMMERCE CITY, Colo. — Near I-70, pipestills spewing puffs of smoke tower over a nearby neighborhood.
Suncor Energy, an oil and gas refinery in Commerce City has faced scrutiny for polluting the nearby neighborhood since the company took over the property in 2003.
In early February, the Colorado Department of Health and Environment (CDPHE) fined Suncor $10.5 million for pollution violations between July 2019 and June 2021.
In 2022, Suncor Energy’s annual gross profit was $27.07 billion, a 45.72% increase from 2021.
While the fine is the highest in Colorado history, Commerce City leaders and advocates said it barely scratched the surface.
“I think that the community is feeling, perhaps rightfully so, that this fine doesn't go nearly far enough for a polluter that has been contaminating these neighborhoods for decades,” said state representative Manny Rutinel.
According to Suncor representative Leithan Slade, Suncor agreed to pay a total of $2.5 million in penalties, and use a minimum of $8 million to improve power reliability.
Power outages had been identified as a source of emission exceedances multiple times, including violations during a 2017 power outage causing exceedances in sulfur dioxide and hydrogen sulfide, and spikes in carbon monoxide.
A plan for the facility projects is yet to be determined. Work must be complete by December 31, 2026.
About 60% of the $2.5 million in penalties will fund environmental justice grants, said the CDPHE. The remainder will go to the state general fund, which is used for education, prisons, court and public benefits.
“The current settlement structure doesn't address the root cause,” said Guadalupe Solis, director of environmental justice programs for Cultivando, a Commerce-City based social equity organization.
“It just allows for polluters to continue to pollute, pay their way out of these fines, and then receive money back so that they can continue their business,” she said.
Suncor Energy is a Canadian-based company. The Commerce City location is the company’s only site in the U.S. The company has proposed additional facilities in Libya and Syria.
Commerce City Mayor Steve Douglas said considering Suncor’s profits, $10.5 million was not enough to hold the refinery accountable.
“It's just a headline,” he said. “There's a movement, or there’s a moment. A movement would have been a $100 million fine.”’
Furthermore, advocates said, funds like the $1.3 million set aside for grants are not always accessible.
Cultivando struggles to juggle the immediate needs of the community with grant applications.
“Applying for these grants from a small nonprofit like Cultivando is very taxing. We're a team of 11, three of which are part time,” said Solis. “We're all women. We are caregivers, we are mothers. We hold multiple roles. And for some of us, our first language is Spanish.”
Cultivando leaders Laura Martinez (L) , manager of environmental justice programs and Guadalupe Solis (R ) , director of environmental justice programs used funds from a previous settlement with Suncor to launch a community-led air monitoring program.
Photo: Elle Naef, Rocky Mountain PBS
“It’s the same settlement as ones from the past,” said area resident Yadira Sanchez. “They will only give us, the community, small portions. We are going to sit here and fight with each other to see which organizations are going to get some of the money to create projects.”
From 2001 to 2023, Suncor’s U.S facility logged 67 environment and safety violations totaling $5,563,838 in fines.
Suncor’s CEO Rich Kruger was recently questioned by Canada’s House of Commons regarding the company’s strategy to shift focus from clean energy pursuits back to oil-centered strategy, which he claimed shareholders are most invested in.
Settlements from August and September of last year had similar breakdowns to the recent $10.5 million — in August of 2023, a settlement with the EPA regarding reporting violations resulted in Suncor paying $240,030 in emergency response equipment for South Adams County’s fire department and $60,000 in civic penalties.
Soon afterwards, funds from another settlement were split between the state general fund and resident stipends for electric gardening equipment.
Douglas and Solis agreed that gifts like the gardening stipends can be more insulting than helpful.
Douglas recalled a similar instance in 2019, when a Suncor facility malfunction resulted in clay-like dust covering the neighborhood. Suncor’s response was to offer free car washes.
“If they're going to be good neighbors, then show it. Don't just give out trinkets,” he said.
Representative Rutinel noted that this can be a pattern with corporate entities like Suncor.
“A lot of times what these corporate leaders want to do is to greenwash to make it seem as if they are contributing to the community by providing some oftentimes, ‘tone deaf’ resources,” Rutinel said.
“Clearly what the community wants is for Suncor to stop polluting our backyards. Instead, what they're trying to do is shift attention.”
Elle Naef is a multimedia producer for Rocky Mountain PBS. ellenaef@rmpbs.org