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Oil, gas rules win unanimous approval

Commission vote on overhaul caps 16-month effort

By Gargi Chakrabarty, Rocky Mountain News (Contact), Todd Hartman, Rocky Mountain News

Published December 11, 2008 at 12:05 a.m.

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David Neslin, acting director of the Oil and Gas Conservation Commission, listens Wednesday to discussion about changing rules guiding oil and gas extraction. The commission unanimously approved the stringent new drilling rules.

Photo by Javier Manzano / The Rocky

David Neslin, acting director of the Oil and Gas Conservation Commission, listens Wednesday to discussion about changing rules guiding oil and gas extraction. The commission unanimously approved the stringent new drilling rules.

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State regulators on Wednesday approved a mammoth overhaul of rules guiding oil and gas extraction, the culmination of a 16-month effort designed to protect Colorado's prized environment from what has been a booming industry.

The eight-member Colorado Oil and Gas Conservation Commission unanimously voted to accept the new rules over objections from energy companies and some lawmakers who fear tougher oversight will drive away jobs and harm an industry already scaling back its activities amid the recession and a plunge in fossil fuels prices.

Ritter accomplishment

The action marks a signature moment in Democrat Gov. Bill Ritter's administration, one that began when he remade an oil and gas commission once dominated by industry backers into one that gave more voice to public health, the environment and the concerns of affected communities.

The rules "give Colorado a modern, 21st century framework to better protect Colorado's residents, water and wildlife . . . while also allowing one of our most important industries to thrive," said Ritter spokesman Evan Dreyer. "The commission should be congratulated for successfully completing such an important task."

The regulations cover a vast array of activities. They include guidelines on how the industry reports its toxic chemicals, on how far wells can be drilled from drinking water supplies and homes, on pollution linked to pits containing drilling wastes and on steps to reduce impacts on wildlife.

But passage of the rules came under immediate fire from some statehouse Republicans in drilling-heavy regions who warned they would get extensive legislative scrutiny in the upcoming session.

"We need to make sure the rules have the full and fair hearing they deserve," Greg Brophy, R-Wray, said in a statement. "These rules have to be a part of the lawmaking process and should be subject to the approval of the elected representatives of the people."

Legal challenge possible

Industry critics, led by the Colorado Oil & Gas Association, have hinted that they may mount a legal challenge to the new rules.

"These rules just make Colorado more difficult to do business in, and it will cost more jobs," said COGA counsel Ken Wonstolen. "They are subject to appeal, and the whole package is unprecedented."

Wonstolen noted that Colorado lost eight drilling rigs this month, while New Mexico picked up two and Wyoming picked up three.

But others in industry say drilling slowdowns in Colorado and elsewhere are much more closely tied to a sinking economy and a collapse of natural gas and oil prices.

Sixfold jump since 2000

The sweeping rewrite of drilling rules can be traced to a drilling burst that began this decade, with a sixfold increase since 2000. And 2008 will end with a new record for permits, at more than 7,400.

The exploration surge led to rising concern from environmental groups, hunters and some Western Slope communities who feared the industrial spillover of a business carving its way into some of Colorado's most bucolic locales.

In 2007, with the election of a Democratic governor, lawmakers crafted legislation recasting the oil and gas commission - adding representatives from the state's Department of Natural Resources and Department of Public Health and Environment and requiring oil and gas regulators to give greater consideration to the state's wildlife herds when weighing drilling permits.

'Labored mightily'

By mid-2007, the new commission began drafting new rules that took into account drilling's myriad environmental impacts. Since then, industry has criticized the process, saying energy companies didn't have enough input. But regulators have countered that they incorporated ideas and criticism from interests across the spectrum.

And on Wednesday, even commissioners more supportive of industry views voted to pass the rules.

"It was a difficult choice," said Mark Cutright, who voted for the package even though he opposed many of the rules.

He did it, he said, "to move these rules to the next step for legislative review and perhaps a review in the courts if parties choose to litigate."

"We have labored mightily," said Jim Martin, head of the state health department and a member of the commission. The rules "provide the kind of balance between oil and gas production and the environment and public health that the legislature told us to do." he said.

Comments

  • December 11, 2008

    7:03 a.m.

    Suggest removal

    sunshinestate writes:

    Protect for the long term.Create an economic engine for the long term.
    Regulate.Protect the fabric of the American experience.
    Recent and proposed impacts played a role in putting Obama in the White House-many conservative hunters and related interests were a part of the push.
    in 1980 it was estimated that a majority of the National Wildlife Federation membership voted for Reagan.The GOP and "industry" have used the conservative outdoor constituency to their collective advantage- now many are no longer 'babes in the woods'...this in part is what this article is about.

  • December 11, 2008

    8:35 a.m.

    Suggest removal

    bronco writes:

    COGA can go to hell, they've exploited the west for long enough. "It will cost jobs", bulox, all they care about is getting as much of our natural resources for themselves as possible. they should be responsible for restoring every acre of land they demolish for their roads and rigs.

  • December 11, 2008

    8:59 a.m.

    Suggest removal

    tjpatriot writes:

    Fantastic accomplishment Ritter. Now we can all look forward to fewer jobs, less state revenue from Oil and Gas, and higher energy costs. Your timing is impeccable. But on the good side, at least AlGore's Global Warming/Environmental Disaster fraud is perpetuated.

  • December 11, 2008

    9:37 a.m.

    Suggest removal

    ILoveChipotle writes:

    Ritter accomplishment - probably his first. And his first accomplishment is to further hurt our economy by heavily regulating Colorado's largest industry, hurting business, increasing energy prices, and probably cost Colorado more jobs. Great job Bill! Worst governor ever! We can only pray that this is his one and only term.

  • December 12, 2008

    12:24 p.m.

    Suggest removal

    chucky3 writes:

    "We need to make sure the rules have the full and fair hearing they deserve," Greg Brophy, R-Wray, said in a statement. "These rules have to be a part of the lawmaking process and should be subject to the approval of the elected representatives of the people."

    Senator Brophy has it right when he says that we need to have this put before the elected officials. What is our local Government doing? I thought this was the land of free markets, they just need to cut back on regulating all together. The left would like us to think they have what is best in mind for the people in the areas that would be effected. The truth is that the elected officials against new regulations are the ones from those areas effected. I think that they understand this best. Kill the regulation!!!

  • December 12, 2008

    12:35 p.m.

    Suggest removal

    chucky3 writes:

    Posted by Bronco:
    "COGA can go to hell, they've exploited the west for long enough. "It will cost jobs", bulox, all they care about is getting as much of our natural resources for themselves as possible. they should be responsible for restoring every acre of land they demolish for their roads and rigs."

    Come on man, look at the stats and quit thinking with your bleeding heart. I find it funny how libs like to show feelings for the land but when it comes to the welfare of someones job, they could care less. I hope you do not drive a car, use anything plastic, heat your home and so on, because that would make you a litter bug. Ritter needs to stop worrying about going green and start worrying about our local economy. All he has done while in office is create sanctuary cities for illegals, and a huge state debt.