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Jobs burning issue in oil, gas

By Todd Hartman, Rocky Mountain News

Published January 1, 2009 at 12:05 a.m.

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A worker guides pipe at a rig near Longmont. Drilling, jobs and the environment likely will be issues in '09.

Photo by Darin Mcgregor / The Rocky

A worker guides pipe at a rig near Longmont. Drilling, jobs and the environment likely will be issues in '09.

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"I can sum up our priorities in one word: energy," said Elise Jones of the Colorado Environmental Coalition. "We'll be working on both sides of the question - the clean-energy side and cleaning-up-the-dirty side."

The noisiest work likely will be around the legislature's review of new rules for the state's oil and gas industry - rules passed unanimously in December by the eight-member Oil and Gas Conservation Commission.

Industry representatives and some Republican lawmakers have promised to take a hard look at the rules, which they argue are too stringent and could discourage natural gas drillers from coming to the state.

"The uncertainty in these rules will certainly affect investment, which directly relates to jobs - there's no question about that," said John Swartout with the Colorado Oil & Gas Association.

Green activists will need to make a strong case to counter what they anticipate will be a relentless industry focus on job threats. Drilling watchdogs say energy work in Colorado will be affected far more by outside factors, including the price of natural gas, than by the new rules.

Activists need to force "intellectually honest" conversations and convey that "what's in the best interests of Colorado is not to take a shortcut approach to managing our natural resources," said Pam Kiely of Environment Colorado. She argues that hunting, fishing and outdoor recreation are as critical to the economy as energy jobs.

Industry advocates say rules that could give the director of the state's oil and gas commission ultimate authority to accept or reject a drilling permit, and those that give greater authority to the Colorado Division of Wildlife in overseeing energy exploration, are of key concern.

"Our intention is to work with both sides of the aisle and the governor's office to try and get some certainty in the rules," Swartout said.

Bill proposals

ENVIRONMENT AND ENERGY

* Energy efficiency: Greens want rural electrical cooperatives to push energy efficiency projects. The details are being worked out, but legislation could be similar to a proposal passed in 2007 that required major utilities to offer rebates for energy-efficient appliances, lighting and other conservation measures.

* Transportation funding: Greens want to tie efforts to increase transportation dollars to environmental improvements. One proposal could call for linking vehicle registration fees to a car's fuel efficiency instead of its weight. This would make cars that get better gas mileage - including hybrids, which can be slightly heavier than conventional autos - subject to lower fees than those that use more gasoline.

* Driving reduction incentives: A pilot project would tie the miles a driver puts on his car in a year to how much he'd pay in vehicle registration fees. The idea is to charge higher fees for people who not only put more wear and tear on the roads, but emit more pollution.

* Solar options: Greens may seek a law that developers of large neighborhoods, perhaps 50 or more homes, give buyers the option of a rooftop solar system. It would be along the same lines of upgrades such as granite countertops or other improvements buyers can often opt for.

Legislative preview

The Rocky this week examines key issues of the upcoming session:

* Monday: Overview

* Tuesday: The economy

* Wednesday: Transportation, water issues

* Today: Election-reform, energy, environment

* Friday: Education, health

* Saturday: Leadership

LEGISLATURE 2009

* Opens: 10 a.m. Wednesday

* Ends: The session must be over by midnight May 6, but lawmakers can end it earlier.

* Of note: Gov. Bill Ritter will deliver his State of the State address at 11 a.m. Thursday.

CAPITOL 3-1-1

* Web site: leg.state.co.us (includes information on bills, how to contact lawmakers and such)

* Phone: 303-866-2331

* Address: 200 E. Colfax Ave., Denver, CO 80203

Comments

  • January 2, 2009

    10:08 a.m.

    Suggest removal

    ekim writes:

    The fundamental basis of discussion about the oil and gas indsutry needs to be shifted. If the state of Colorado is going to increase regulation of the industry that regulation needs to be balanced with efforts to maintain employment growth. Thus while the legislature debates the draft C.O.G.C.C rules they should also be introducing leglislation to promote oil and gas jobs through investment in pipeline infrastructure. If the oil and gas industry grows in our state we benefit from increased employment and increased severance taxes to the state. The state government needs to introduce some carrots to balance out the stick that they have been beating the industry with.