Archive for Saturday, August 9, 2008

Archive for Saturday, August 9, 2008

Oil and Gas Commission delays regulation ruling

August 9, 2008

Late Wednesday afternoon, the Colorado Oil and Gas Conservation Commission decided to postpone its deliberations on proposed regulations for the energy industry until Sept. 11.

The state agency originally planned to make a final approval on the regulations Aug. 12. Oil and Gas Commission members plan to host further deliberations Aug. 19 and 20 and Sept. 9 to 11 in Denver.

Mike King, deputy director for the Department of Natural Resources, which oversees the Oil and Gas Commission, said the decision was made in large part so that state workers could have more time to "refine" the regulations.

The proposed regulations - which the Colorado Legislature mandated the Oil and Gas Commission complete in 2007 - revise current policies to better protect the state's public health and environment.

After testimony from stakeholders to the rulemaking process earlier this summer, there were certain issues that some felt were not a reasonable compromise between development and environment.

Stakeholders include, but are not limited to, energy industry representatives, local and regional government officials and conservation groups.

"The (Oil and Gas) Commission, at its last meeting, directed staff to try to work through some of the issues with the stakeholders," King said. "I think the staff felt like they could refine some things if they had more time."

One such issue that has received a lot of attention is the possibility of yearly timing restrictions for drilling.

The proposed rules stipulate that companies would not be allowed to drill during certain times of the year when native wildlife were using important habitats, such as sage-grouse mating grounds and mule deer winter ranges.

The "timing restrictions," as they're called, would be limited to three months each year.

Companies would be allowed to consult with the Colorado Division of Wildlife on drilling plans that would limit their total surface occupancy - by using technology such as directional drilling - and could secure a company a variance to the regulation and allow it to drill year-round.

King said timing restrictions are an important part of ongoing discussions.

"Certainly, timing restrictions are being discussed," he said. "It's a major issue and, I'm sure, part of the discussion."

Moffat County resident Luke Schafer is the northwest campaign coordinator for the Colorado Environmental Coalition.

He said it's a benefit for the state that the Oil and Gas Commission is looking at the regulations carefully.

"It's a good thing that the (Oil and Gas) Commission is taking its time on something this important to Colorado's future," he said. "Taking time is good if it leads to a better outcome. But, in my mind, that better outcome is not making rules less stringent on industry."

The proposed regulations represent a good effort to promote Colorado's values and assets, which include energy development but also scenic lands and wildlife, Schafer said.

Lessening industry regulations, he added, doesn't seem to benefit Colorado residents as a whole.

Schafer said the industry's qualms with timing restrictions show a certain amount of hypocrisy.

"They've had those same regulations on (Bureau of Land Management and U.S. Forest Service) lands for years," he said.

"They're still developing and not slowing down. It shows their absolute disregard for taking care of the land they say they value."

It is not his organization's goal to curb development, Schafer said.

"While we obviously want to see development continue, we want to make sure development continues in a responsible way," he said.

Williams Energy Services feels the same way as Schafer, said Kelly Swan, spokesperson for the company.

"Taking more time to consider all the complexities of a given issue is an admirable thing," she said. "This is a complex issue, and there's much for everyone to gain from an ongoing dialogue."

Swan added her company was a willing partner in the rulemaking process. Williams, she said, is not opposed to best management practices to take care of public and private land.

"We've provided testimony and feedback throughout the process," Swan said. "Beyond that, we're hopeful that what we do on a daily basis as we drill new wells demonstrates that we care about responsible development and doing things the right way."

Collin Smith can be reached at 875-1794 or cesmith@craigdailypress.com

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