Colorado's Oil and Gas Industry Could See Big Changes Coming
Posted on Jan 27, 2014 12:18pm PST
Colorado's tensions over oil and gas production have threatened to
boil over this year. The state's influential and fast-growing industry
faces the prospect of big crackdowns from the state Legislature and the
possibility of statewide ballot measures curbing drilling. So far, the
legislative session has been short on big overhaul proposals. But does
that mean the debate has died down? Hardly. Colorado's energy industry
still could see big changes coming – not all of them from the Capitol.
The meteoric rise in energy production in populated areas of the state
is driving new attention to the impacts of oil and gas extraction on health
and the environment. Colorado's oil production broke 50-year records
both of the last two years. And new technologies have allowed drilling
much closer to homes and businesses.
"No one wants to wake up to see a drilling rig across the street from
your front yard. That has to be addressed, and I think there is interest
in momentum," said Pete Maysmith, head of Conservation Colorado.
So far, Democrats who control the Legislature seem to be deferring to Gov.
John Hickenlooper, who has urged lawmakers to go slow on efforts to increase
oversight on the industry. Instead, the Democratic governor is talking
up his administration's plans for tougher air quality checks. A big
reason Hickenlooper wants lawmakers to stand down on big drilling measures
is because his plans will not need a new law. The Air Quality Control
Commission, part of the Health Department and, therefore, the administration,
has proposed oil and gas industry rules that include the first statewide
methane emissions limits and new emissions controls on storage tanks,
a major source of emissions of volatile organic compounds such as propane
and ethane, which contribute to ozone pollution.
"We are really, I think, beginning to rebuild the trust between the
oil and gas industry and the people, which I think is crucial, for all
of us," Hickenlooper told the Colorado Association of Commerce and
Industry Thursday.
But the changes won't take effect without controversy. The first public
hearing has been scheduled for three full days, and it's been moved
from the Health Department to a larger venue because of the anticipated
crowds. "The air quality rule is critical to how we're going
to deal with oil and gas in Colorado," Maysmith said. Some energy
producers are on board with the changes, but not all. And there will be
many rounds of negotiations over nitty-gritty details.
For example, the administration has projected the air quality upgrades
will cost oil and gas producers about $30 million. The Colorado Petroleum
Association puts the tab at $100 million. "There are some significant
areas that need further discussion," said Stan Dempsey, the association's
president.