Oil, gas rules rewrite nears passing

Backers say it’ll help environment, but foes say it will cost jobs, hurt economy

Peter Marcus, DDN Staff Writer

Wednesday, March 25, 2009

The Senate yesterday moved one step closer to sending to the governor stricter rules and regulations for the oil and gas industry.

The controversial rewrite of the state’s regulations on oil and gas operations has plowed ahead despite impassioned objections from Republicans who say the tough regulations will scare the industry out of Colorado, costing the state jobs and desperately needed revenue.

The initial vote by the Senate was 22-12, mostly along party lines.

Final OK today?

Final approval is expected today; Gov. Bill Ritter has said he would sign the bill into law. The governor has championed for the new regulations since the start of his administration, lobbying for safeguards for the state’s public health, environment and wildlife.

But critics of the sweeping rewrite say the revisions come at a time when Colorado should be trying to attract as many industries as possible to close a budget shortfall that is expected to reach $1.4 billion over two years.

Colorado’s oil-and-gas industry pumps at least $22.9 billion into the state’s economy, accounting for more than 6 percent of the state’s gross domestic product, according to a report by the Colorado School of Mines. The industry employs around 70,000 Coloradans.

Penry’s push killed

Senate Minority Leader Josh Penry of Grand Junction attempted to draw enough support for an eleventh-hour amendment that would have increased certain protections for drinking water and tripled penalties on drillers for environmental violations, in exchange for removing several of the new regulations. But Democrats held strong, rejecting the amendment and supporting the new rules.

“Everyone recognizes that these protections are critical for the long-term sustainability of Colorado’s abundant natural resources, which bring in more than $3 billion a year to the state and maintain the livelihood of nearly 33,000 Coloradans,” said Sen. Dan Gibbs, D-Summit County, a primary sponsor of the legislation.

Good for tourism?

Gibbs and other proponents say Colorado would benefit from the new rules by protecting its multi-billion dollar tourism industry, which thrives thanks to the state’s abundant natural beauty that lures tourists from across the world. The new rules and regulations protect the state from the threat of losing its beauty to oil and gas exploration, say proponents.

Assistant GOP Chief Greg Brophy of Wray, however, said on the floor yesterday that Democrats were leading the state into financial ruin with the rules.

“They harm the economy, they cost jobs,” he said.

Bill sponsor Sen. Jennifer Veiga, D-Denver, told lawmakers that they had an obligation to back the new rules already approved by the bipartisan Joint Service Legal Committee and originally suggested by the Colorado Oil and Gas Conservation Commission after a marathon of more than 21 days of hearings.

“We have both generally and specifically given the Oil and Gas Commission the authority to manage and balance the needs of the oil and gas industry with wildlife and natural resources protections,” said Veiga. “The Commission has done that in this omnibus rules bill and we have found the rules are appropriate.”

Veiga forgetting role?

Republicans, however, said Veiga was missing the bigger picture and forgetting what her role should be as a lawmaker.

“I have a sneaking suspicion if people were losing their jobs en masse in your district the way they are in mine, you’d want to discuss the economic implications,” Penry told Veiga.

Meanwhile, some Coloradans who live near the state’s Western Slope gas boom say they are looking forward to protections offered in the new rules.

“I have seen the need for these new safeguards for a long time,” said Kim Weber, whose home is near an oil and gas facility near De Beque, Colo. “Our state leaders have taken a large leap forward to protect my health and the health of all the people I love.”

Highlights of the new proposed protections:

• Establish protection zones of 300 feet around streams that serve public drinking water supplies;

• Reduce odors where oil and gas development is occurring near homes and schools in northwestern Colorado;

• Manage erosion and reduce water pollution around oil and gas operators during storms and snow run-off seasons;

• Allow the state health department and state wildlife agency to consult and offer recommendations on oil and gas development to protect public health, the environment and wildlife;

• Provide notice to nearby landowners and public comment periods for development proposals;

• Identify chemicals used in drilling.

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