Colorado's attack on the oil & gas industry

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Colorado's attack on the oil & gas industry

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SB 181 is partisan attempt to subvert the will of voters . Reporter Herald . Opinion.
In November, Coloradans defeated Proposition 112 by a 57-43 percent margin, sending a signal that they do not support measures that would compromise Colorado's oil and gas industry. Voters appreciate the $1 billion per year contribution the industry makes to Colorado's economy. SB 181 is a partisan attempt to subvert the will of voters. Over the past nine years, the Colorado oil and gas industry has participated in no fewer than 15 rule-makings designed to protect health, safety and the environment. One of those regulations is CDPHE Reg 7, which requires that 95 percent of the methane and volatile organic compounds from new oil and gas facilities be captured. The sponsors of SB 181 state that the bill will ensure the safety of residents. SB 181 gives local governments authority to regulate oil and gas development, but there is no one on my city council or county commission with the technical training or expertise to ensure that oil and gas operations are conducted in a safe and environmentally responsible.

What will oil and gas reform mean for Colorado? The Journal .
A sweeping reform of oil and gas development working its way through the Capitol offers one of two futures for Colorado: a harmonious balance of anti- and pro-energy counties, or economic devastation. But in Southwest Colorado, where there are limited oil reserves, old wells and a culture of local control, the fallout is unlikely to mirror impacts on the Front Range. The Denver-Julesburg Basin, where energy development is booming, stands to lose the most if regulations are put in place that would hamper drilling. Weld County, home to the basin, produces more than 90 percent of the state’s oil and most of its gas. If SB 181 shut down a third of the state’s overall production, the Denver-Julesburg Basin would be hit the hardest and Colorado could lose more than $4.4 billion in state and local tax revenue by 2030, according to the Common Sense Policy Roundtable. Operators on the Front Range worry that local control over permits will delay drilling and cost them time-sensitive leases.

Adams County board unanimously approves temporary freeze on new oil and gas permits . KDVR .
Adams County commissioners unanimously approved a moratorium on new oil and gas permits Wednesday evening. “What we’re addressing are those permits that have not yet been filed,” chairman Steve O’Dorisio said. The temporary freeze on new permits will last for six months, from March 20 until Sept. 20. The moratorium will not affect wells currently in use or wells for which permits have already been submitted to Adams County. “The temporary ban — passed before SB 181 has even cleared the statehouse — wasn’t needed. It sends a negative message to businesses and workers in Adams County and could have a chilling effect on the economy,” Dan Haley, president and CEO of the Colorado Oil and Gas Association, said in a statement. Those who work in the oil and gas industry fear that even a temporary ban on new production will result in job loss and economic hardship for the county. Note : CBS Denver also reports.

Larimer County organizes task force to examine oil and gas regulations . Coloradoan .
Larimer County is responding to a spike in applications for oil and gas drilling by forming a regulatory task force. The task force would be made up of 15 or so individuals, with members representing environmental and conservation concerns, industry, landowners and agricultural operators, community members, business and economic interests, public health, and potentially others. Colorado Oil and Gas Association President and CEO Dan Haley said in a statement that the industry organization appreciates the "thoughtful approach" the county is taking to the process and that industry will have a seat at the table. "Today’s oil and natural gas industry is truly a high tech business that requires thoughtful application of engineering, geology, software, and complex operational practices," he said in the statement. "The more Larimer County leaders and staff can learn about those practices the better, as those conversations will reveal the variety of safety protocols that are utilized, as well as the environmental benefits that can occur from responsible energy development.”
Dan Steffens
Energy Prospectus Group
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