Colorado: Update on Initiative 97

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AP: Proposal to limit oil, gas drilling gets on Colorado ballot.
A contentious proposal to tightly restrict the location of new oil and gas wells in Colorado attracted more than enough petition signatures to qualify for the November ballot, election officials said Wednesday. The measure, known as Initiative 97 , is certain to ignite an expensive and high-stakes battle over how much control state and local governments can exert over one of the state's most powerful industries. Backers submitted an estimated 123,000 valid signatures, well over the 98,492 required, Secretary of State Wayne Williams said.

Both the Democratic candidate for governor, Jared Polis, and his Republican opponent, Walker Stapleton, have said they oppose the measure.

Opponents warned of dire consequences if it passes.

"This measure will devastate the state of Colorado by destroying nearly 150,000 jobs over the next decade, eliminate billions in state revenues, and negatively impact essential services such as health care, education, transportation, fire and safety," said Chip Rimer, chairman of Protect Colorado, an industry-backed group.

A state analysis said the measure would place 85 percent of non-federal land in Colorado off-limits to drilling. An oil and gas advocacy group warned in June that taxpayers could face billions of dollars in compensation claims because energy companies would not be able to extract and sell privately owned reserves.

More here: http://www.hastingstribune.com/proposal ... 54da7.html


If Initiative 97 passes it is bad news for PDC Energy (PDCE) and SRC Energy (SRCI). If it fails to pass, both of these stocks have 50% upside.