Craig Daily Press

Denver — Northwestern Colorado Sen. Jack Taylor is among the rural Republican lawmakers not inclined to heed a call for patience from Department of Natural Re­­sources Director Harris Sher­man.

During a briefing Wednesday for Taylor and other members of the House and Senate Agriculture and Natural Re­­sources Committees, Sher­man asked for patience while new rules and regulations are being written for oil and gas development that takes into account protection of Colorado’s air, water and wildlife.

Sherman said the new rules still are in the pre-draft phase, with the draft version scheduled to be released later this month. The actual rules won’t go into effect until after the formal rule-making hearing before the Colorado Oil and Gas Conservation Commission in late June.

“The commission hasn’t even seen the draft regulations yet, but there has been an enormous amount of speculation,” Sherman said. “The draft will be published late this month and will be vetted very thoroughly.”

Sherman’s request didn’t sit well with Taylor and others who claim exploration is being strangled by uncertainty and some companies are cutting back or leaving the state altogether.

“I’m told of one company that has cut back $100 million in reinvestment in Colorado,” said Taylor, R-Steamboat Springs, whose district includes the Piceance Basin exploration hotspot.

Taylor also claimed the Division of Wildlife, which has new standing with the commission because of enhanced provisions for the protection of wildlife, already is acting as if the new rules are in effect.

He said one company that bought a ranch so it would own both surface and mineral rights was told it should wait before renewing a lease with a cattleman who had long used the land for grazing.

Sherman “says give us time, but they already are doing these things,” Taylor said. “How can you operate a business or ranch, plan to do your operations, when you don’t know what you can do with your property?”

The DOW and the COGCC are two of the divisions within DNR.

New permitting and development requirements are being written in response to last year’s legislation that changed both the makeup and mission of the COGCC. The Colorado Department of Public Health and Environment also has a new role developing the regulations on the $23-billion industry.

Sherman said the commission would strive for balance.

“I do not believe the rules and regulations are going to drive industry out of the state of Colorado,” he said. “Every week, we hear from companies that are excited about moving to Colorado and making major investments in Colorado.

“At the same time, many have concerns about the environment, air and water quality, wildlife and the traditional economies of Colorado,” Sherman continued. “It is up to us to come forward with a balanced and reasonable set of regulations.”

The battle is far from over.

Taylor said the upcoming budget debate would be one battleground as lawmakers consider the commission’s request for 23 new employees to deal with the new rules.

Other lawmakers want the full Legislature to review the new rules before they take effect, but Rep. Kathleen Curry, D-Gunnison, who chairs the House committee, said that probably won’t happen.

Curry said another bill would be introduced only to extend to mid-July the date for the final rules to be implemented. The legislative session ends in early May.

“The bill will be responsive to the commission’s request that deals only with the deadline,” Curry said. She indicated the title of the new bill would be narrowly drawn to prevent a rehashing of old arguments about legislative oversight.

Curry also said she is proceeding with her plans to sponsor a ballot referendum that would ask voters to approve an increase in severance taxes, even though at least six citizen-initiated petitions have been filed dealing with taxes companies pay to extract Colorado’s natural resources.

“Talks are ongoing with the (legislative) leadership and the governor’s office, and we are coming closer to a product that we can release and get everyone’s input,” Curry said. “The measure that comes out of here will be a lot more diverse.”

The Colorado Environmen­tal Coalition is behind four of the petitions that would raise an estimated $200 million to $300 million a year from severance taxes to pay for clean energy projects, wildlife habitat preservation and mitigate the impact energy development is having on local communities.

Two other petitions filed earlier this week propose eliminating the credit the exploration companies get for paying county-level property taxes and using the additional revenue to fund higher education and capitol construction.

“With all these initiatives being filed, it kind of looks like there are people out there who want action on this issue,” Curry said. “Having too many questions on the ballot could mean none of them will pass. We will have to work through that.”

Meanwhile, Sen. Jim Isgar, D-Hesperus, said the full Senate would vote March 14 on the confirmation of six new COGCC members who will be deciding the new rules. Their confirmation was held up after Taylor and others said they needed more time to question the appointees about the direction they are taking the commission.