Some Colorado drivers start to see settlement offers after buying contaminated fuel

CASTLE ROCK, Colo. (KDVR) — Dozens of Colorado drivers are still without working vehicles weeks after contaminated gasoline, mixed with diesel fuel, was sold at at least 21 gas stations across the area, leaving many customers facing hefty repair bills.

In a press release Tuesday, state officials said they believe the contaminated fuel has been removed and replaced, and affected stations have reopened.

However, many drivers say the financial fallout continues, with cars disabled and reimbursement offers they say don’t fully cover their losses.

Colorado’s Division of Oil and Public Safety said it received more than 400 complaints from motorists who reported vehicle problems after filling up on Jan. 7 and Jan. 8. The agency said the fuel originated from an HF Sinclair distribution center in Henderson, though the investigation into how diesel ended up in regular gasoline tanks remains ongoing.

Jennifer Coggin said she unknowingly filled her car with contaminated fuel at a King Soopers gas station in Castle Rock on Jan. 8. Later that day, her vehicle would not start and has remained parked in her workplace lot ever since.

“You do go get gas and you expect that you can get gas and get back to work without any trouble,” Coggin said.

Coggin said she filed a claim with King Soopers, seeking reimbursement for towing and repairs, but was told the company would not pay those costs up front. Instead, she turned to her car insurance, which agreed to cover the repairs after she paid a $500 deductible. She said her insurer warned that by making the claim, her premiums would likely increase.

Tuesday morning, Coggin received an offer from Sedgwick, a third-party claims administrator handling reimbursements for King Soopers. The offer totaled $550, covering her deductible and a tank of gas, but required her to sign a release waiving any future claims related to the incident.

“I take that money and that’s a risk that my car might never be the same or might have issues further down the line that are more expensive,” Coggin said. “I’m not sure if it’s worth it just for a $500 reimbursement.”

Other impacted drivers told FOX31 they have struggled to get to work or take their children to school without reliable transportation, adding costs that some said should be included in any settlement.

Tuesday night, HF Sinclair said in a press release that it has provided the state with a list of all affected gas stations, though that list has not yet been provided to FOX31.

“A thorough review is underway, and we are taking appropriate steps to prevent this from happening again,” the company said in a statement.

State officials said the investigation is ongoing.