Water fears spur Palisade to protest BLM lease sale

Ellen Miller, Special to the News

Tuesday, January 17, 2006

The small town of Palisade in Mesa County is protesting an oil and gas lease sale planned by the Bureau of Land Management on Grand Mesa, because of potential threats to the town's watershed.

The town board voted unanimously last week to file the protest, which will be considered by the state BLM office, and to appeal to U.S. Sens. Ken Salazar and Wayne Allard and U.S. Rep. John Salazar for help.

"We had been assured by the BLM we were protected," Mayor Doug Edwards said, "but we learned the stipulations could be changed to make it more hazardous to us. If there's an accident with a toxic spill up there, we'd be in trouble."

The BLM's Feb. 9 sale offering covers 13,000 acres, of which about 11,000 acres lie within the watershed for Palisade's municipal water supply.

BLM spokeswoman Mel Lloyd said each parcel considered for lease is analyzed on a case-by-case basis, and the "field office says the parcels are protected. We've worked closely with Palisade and updated the stipulations, and we're working hard to be a good neighbor."

She said one of the stipulations is carefully written and specifically designed to protect watersheds, "and I don't know how the stipulation could be strengthened any more."

Leases offered for sale may not receive bids, she said, but those that are leased are examined again and additional stipulations are added when necessary.

Another level of regulation comes from the state Oil and Gas Conservation Commission, where director Brian Macke said permitting is required for all wells, and the commission examines whether they would harm groundwater.

In addition, the Colorado Water Quality Control Commission oversees storm-water regulations for oil and gas activities, a function upheld by the water commission last week in Denver.

Edwards noted that Palisade is arranging financing to build a $6 million water treatment plant and doesn't want its water supply threatened.

"We're asking that these parcels be pulled or at least put on hold until we can get stronger stipulations," he said. "We already have an ordinance, with state and federal authorization, for protection of our watershed."