Final draft of drilling rules awaited

Gargi Chakrabarty

Friday, March 28, 2008

State regulators promise to address the oil and gas industry's concerns in the final draft of drilling rules to be released Monday.

"We got a lot of feedback on the initial concept of the rules," said Dave Neslin, acting director of the Colorado Oil and Gas Conservation Commission, a state agency charged with shaping the rules.

"We have tried to take a thoughtful and balanced approach to the issues raised by the industry because we want a flourishing industry, but also want do a better job of protecting wildlife and environmental resources."

Industry has denounced the first draft of the proposed rules released a few months ago, saying they are too restrictive and will choke off future investment.

It is concerned that the state will impose "one-size-fits-all" regulations that ignore environmental, population and other differences between energy producing regions.

For instance, Weld County commissioners - worried about the economic fallout of too much red tape - say the proposed rules seem to be more applicable to the Western Slope, where aggressive drilling has impacted densely populated communities.

Industry has questioned the proposed Form 34, which companies would complete as part of their drilling permit application. Companies say they will need to conduct 11 surveys to complete it, costing time and money.

Also, the early proposal says neighbors within 500 feet of a well site could call for hearings - a stipulation that industry says potentially could delay drilling for days, if not months.

Meg Collins, president of the Colorado Oil and Gas Association, a trade body, said she will wait to see the final draft, but speculated the proposed rules will hamper the industry's health.

chakrabartyg@RockyMountainNews.com or 303-954-2976