American Oil and Gas Reporter - February 2015 - 36

Colorado Focused On Local Regulation
DENVER-A possible expansion of
the control local governments can exert
over oil and natural gas development remains the focal point of political interest
for the industry in Colorado.
Legislation to address that issue was
on hold in the first weeks of their 2015
session while the state's elected representatives waited for recommendations
from the governor's oil and gas task
force, which are due in late February, the
Colorado Oil & Gas Association reports.
"We are hearing very little from the
Capitol," commented COGA Director of
Policy and External Affairs Doug Flanders
in late January. "Everyone is waiting for
the task force's recommendations."
Governor John Hickenlooper formed
the task force in August as a compromise
to remove two anti-development and two
anti-moratorium initiatives from the November ballot (AOGR, September 2014,
pg. 183). The task force is assigned to
review existing regulations and make recommendations on possible legislative solutions to continuing conflicts between
industry and communities over development. The 21-member task force includes
representatives of industry, government,
and civic and trade groups as well as environmental organizations.
At the task force's two-day meeting
in January, testimony was heard from
Matt Lepore, director of the Colorado
Oil & Gas Conservation Commission,
and from a panel of health experts that
included Larry Wolk, executive director
of the Colorado Department of Public
Health and Environment.

Lepore told the task force that advancements in drilling and well completions such as those seen in the Niobrara
had resulted in larger sites being developed
over longer periods. Operators also find
themselves closer to expanding suburban
communities, rather than in rural areas,
he added.
"The crux of the matter is scale, proximity and intensity," commented Lepore.
"We urge collaboration among local governments, operators and neighbors. But
if there is a disagreement, the state makes
the call."
During a panel discussion on possible
health impacts, Wolk told the task force
that while studies had indicated a possible
connection between health and proximity
to a well site, there was nothing definitive.
"We all want simple answers," Wolk
reflected. "But exposure is a complicated
question and there are no simple answers."
When asked to recommend a "healthbased setback" between a well site and
schools or residences, several panelists
declined, citing a lack of evidence. Wolk
did, however, request the task force recommend additional funding for department
staff and equipment.
Thrive Together
The January task force meeting was
held in Greeley, Co., and a rally was organized by local civic and trade groups
to show support for continued oil and
gas development. Over a banner declaring
the community and industry were "Thriv-

ing Together," a crowd of more than 200
people heard from county commissioners,
civic leaders, industry workers and royalty
owners about benefits that accrued from
oil and gas development.
"Weld County is the number one energy-producing county in Colorado, and
we are proud of that," Weld County Commissioner Barbara Kirkmeyer told rally
participants. "Oil and gas fuels our real
estate economy, our manufacturing economy, and our agricultural economy."
The oil and gas task force was scheduled to meet again twice in February and
to present its recommendations to the
governor by Feb. 27.
With the Colorado Legislature split
between a Democrat House and a Republican Senate, whether a bill carrying
the task force's recommendations can be
passed remains questionable, remarks
COGA's Flanders.
Flanders notes that of the few energyrelated bills registered by mid-January,
two address concerns over local restrictions
that reduce the value of mineral assets.
SB 93, sponsored by Senator Jerry
Sonnenberg, R-Sterling, would provide
mineral owners a process to seek compensation from local government when
the owner's assets are reduced by at least
60 percent through a local ban or moratorium, according to a media summary.
In the House, meanwhile, HB 1119,
sponsored by Representative Perry Buck,
R-Windsor, was called less prescriptive
by published reports, in that it simply
would hold local governments liable for
the value of lost royalties if restrictions
prevented development.
Sonnenberg says his bill is not intended
to conflict with the possible recommendations from the task force. "All my bill
does is clarify the constitution and Colorado's takings law. People must be compensated when government takes their
property," media accounts quote the senator.
Ì

Coming In March

Don Shawcroft, speaking on behalf of the Weld County, Co., Farm Bureau, addresses the
"Thriving Together" rally held to support oil and gas development on Jan. 15 in Greeley,
Co. Shawcroft is flanked by, from left, Mike Geile with the Aims Community College Board
of Trustees in Greeley, Melissa Cahill with A&W Water Service, and Weld County
Commissioner Sean Conway.

36 THE AMERICAN OIL & GAS REPORTER

Water management has become a
vital aspect of successful operations
in unconventional resource plays.
AOGR casts the spotlight on several
independents' pioneering strategies
to recycle 100 percent of the water
recovered during well operations, as
well as the latest commercial innovations for treating and reclaiming flow
back and produced water.

American Oil and Gas Reporter - February 2015

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