Counties may regulate oil and gas development as long as their rules do not conflict with state policies, the Colorado Supreme Court ruled Monday.
In declining to hear an appeal of a Gunnison County case, the court left standing a December appellate-court decision enabling counties to impose regulations that supplement those set by the state Oil and Gas Commission.
Gunnison County has enacted rules on drainage and erosion, constructing access roads, traffic, wildlife, livestock grazing, recreation, surface water, wildfire and geologic hazards and emergency response, county officials said.
“We can’t usurp any of the state’s authority, but there are areas that our local citizens have expressed concerns about that the state either doesn’t regulate or doesn’t regulate to folks’ satisfaction,” said Gunnison County Manager Matthew Birnie.
Industry officials, though, say oil and gas exploration already is regulated sufficiently, and they fear the ruling could result in a county-by-county “patchwork quilt” of rules that could hinder energy development.
“It could very well discourage exploration in particular areas,” said Greg Schnake, spokesman for the state oil and gas commission.”
Gunnison County officials filed the case after the Gunnison Energy Corp. ignored a county requirement to obtain an oil-and-gas exploration permit before beginning operations.
A trial judge ruled that most of the county’s rules were pre-empted by state law and oil and gas commission regulations.
The appeals court, however, ruled that counties could regulate development if their rules are in harmony with state regulations.
“We want to get this mineral out of the ground, so these are not anti-oil-and-gas-operation regulations,” said county attorney David Baumgarten. “They are really regulations to ameliorate the consequences.”
The decision probably won’t discourage energy-exploration companies, but it could increase costs and approval time, said Andrew Bremner of the Independent Petroleum Association of Mountain States.
Staff writer Steve Lipsher can be reached at 970-513-9495 or slipsher@denverpost.com.
