Craig Daily Press

Craig — A perceived rush by state government to impose heavier restrictions on the energy industry prompted the Moffat County Commission to write a letter last week.

The Commission backed 30 other stakeholders in the Colorado Oil and Gas Conservation Commission rule-making process that submitted legal motions to delay and dismiss parts of the proposed regulations on energy development.

Colorado House Bills 1298 and 1341 — passed in 2007 — require the Oil and Gas Commission to develop new regulations that balance energy development with environmental and public health concerns.

The Oil and Gas Commission voted those motions down, 6-3, on Thursday, meaning the rule-making process will proceed as scheduled, with a final decision expected by Aug. 12.

“The motions that were filed seemed logical to us,” Commissioner Tom Gray said. “It seems like this is moving awfully fast, and with so much information that the (Oil and Gas) commissioners are going to have to digest, I don’t see how they’re going to be able to make good, reasoned decisions in that amount of time.”

Motions heard Thursday argued the limited timeline violated the industry’s right to due process, and that some proposed regulations went beyond the Legislature’s intent.

Specifically, the motions asked that the Oil and Gas Commission temporarily dismiss wildlife reclamation requirements and public health issues such as chemical identification, drinking water protection and restricting odors near homes and schools, among other proposed regulations.

The Colorado Attorney Gen­eral’s Office recommended the Oil and Gas Commission deny the motions.

Requests to dismiss some proposed regulations conflicts with the Legislature’s mandate to balance development with environment and public health, the Attorney General’s Office wrote. There was enough time and notice granted, and hearing dates were extended another week, as well.

The Legislature required the rules be done within the year, said Deb Frazier, Colorado Department of Natural Re­­sources communications director.

The Commission, however, and the 30 parties that filed motions think it is a mistake to limit deliberations on an issue with so much at stake for Colorado.

A damage estimate from the Colorado Oil and Gas Association, an energy industry trade group, put an $18 billion price tag on lost tax revenue and investment capital resulting from increased development restrictions. The group also believes regulations will raise consumer prices.

“The (Oil and Gas Com­mission) cost estimate has completely ignored the most pressing issue, which is what will be the economic impacts to the state and our local economies,” said Meg Collins, Oil and Gas Association president. “The analysis fails to recognize what is certain to be a significant revenue decline caused by diminished development, and it ignores consumer and tax impacts that will directly occur as a result.”

Frazier said it’s hard to argue those numbers when the energy industry refuses to release financial information.

“We might’ve had a better idea if the industry had shared some of their data, but they declined,” Frazier said.

She added that the number of pipelines being built in the state will cause energy prices to go up regardless of the regulatory environment as Colorado-based companies bid against companies in other states.

Frazier said the Oil and Gas Commission is not out to diminish the energy industry.

“The energy industry is a significant factor in Colorado’s economy,” she said. “We’re not out to stop it, not to hamper it, but to balance it with the other resources this state needs to thrive.”

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