Oil, gas commission changes get preliminary approval

Alan Gathright, Rocky Mountain News

Published March 23, 2007 at midnight

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Democrats gave initial approval to Gov. Bill Ritter's overhaul of the Colorado Oil and Gas Conservation Commission on Thursday, saying it would bring balance to an industry-dominated panel and better protect the public health and the environment.

But Republicans warned the historic shake-up could hamstring Colorado's energy boom and the vital tax revenue it generates, as well as drive up consumers' home-heating and gas-pump prices.

House Bill 1341 would expand the panel to nine members from seven. It would reduce members with industry experience to three from five while adding the directors of the state natural resources and public health and environment agencies.

It also changes the law's definition of waste, which currently prohibits leaving oil and gas resources in the ground. The commission would have to balance maximizing energy extraction with protecting public health, safety, the environment and wildlife under the new definition.

Sponsor Rep. Kathleen Curry, a Democrat who represents the energy-rich Western Slope, said the changes are critical as the state experiences major energy-drilling expansion. She questioned whether the panel's pro-industry tilt serves the public, noting about 1,500 pollution or damage complaints in the past five years resulted in 11 fines.

"The concept of balanced natural resources management is not new to the state of Colorado," she said. "In fact, what is foreign to our way of thinking here is the concept of an industry regulating itself."

Yet, Rep. Cory Gardner, R-Yuma, said the bill would throw out 100 years of state energy and property rights law and possibly violate the constitution by depriving landowners of their right to profit from oil and gas deposits.

He called for lawmakers to delay action or risk damaging a $13 billion industry that employs 70,000 workers, fills local and state coffers and feeds state and national energy needs.

"If we don't take pause, step back from the brink and look at the impact this bill will have . . . we will indeed be costing the people of Colorado more and more as their pockets are hit for heating their homes," Gardner cautioned.

Several GOP amendments, including one to make it a three-member panel of professional experts similar to the state utilities commission, failed on a party-line vote. Final passage is expected today.

Sparks also flew during initial passage of House Bill 1169, which would allow rural residents and businesses to save money by pumping power from wind turbines and solar panels back into the electrical grid.

Republicans raised concerns by some state rural electric associations that REA ratepayers would end up subsidizing the electrical metering equipment used by those who produce their own power.

Not true, said Rep. Judy Solano, D-Brighton, saying she negotiated with REAs to ensure participants could only pump as much energy back into the grid as they would use in a year and would pay for their own meters. HB 1169 passed on a voice vote and faces final passage today.

gathrighta@RockyMountainNews.com or 303-954-5486

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