[Editor's note: this story was updated at 6:30 p.m. CT June 26.]

The Trump administration and the state of Colorado sued PDC Energy Inc. (NASDAQ: PDCE) on June 26, claiming the company violated the federal Clean Air Act by allowing unlawful emissions from storage tanks.

The lawsuit, filed in U.S. District Court in Colorado by the Department of Justice (DOJ), Environmental Protection Agency (EPA) and the state, seeks civil penalties as well as a court order barring the damaging release of so-called volatile organic compounds.

Bart Brookman, PDC Energy's president and CEO, said in a statement: "We're obviously very disappointed with today's filing as we have been in continuous discussions with the EPA, DOJ and State of Colorado for over a year. Since the company's original disclosure of this matter in November 2015, we have worked diligently to design, maintain and operate our production facilities in compliance with the guidelines of not only the Clean Air Act but all relevant regulations."

"Though it is too early to know the ultimate outcome of this complaint, we are confident in our ability to work together with all regulatory agencies in coming to an agreeable solution without extended litigation. We will continue to operate responsibly, and our priorities remain the safety of our employees, the environment and the communities in which we live and operate," Brookman added.

According to the complaint, PDC has repeatedly violated clean air regulations intended to address the release of volatile organic compounds at 86 storage tanks it owns or operates in Colorado. The Denver-based independent oil and gas company primarily operates in Colorado's Wattenberg Field and in the Delaware Basin in Reeves and Culberson counties in West Texas.

"Violating emissions standards endangers public health and can give violators an unfair advantage in the marketplace," Jeffrey Wood, acting assistant attorney general in the Justice Department's Environment and Natural Resources Division, said in a written statement.

"The United States will pursue all appropriate remedies against entities that violate our nation’s clean air laws,” Wood said.