DENVER—The already expanding economy of northwest Colorado has been boosted by the natural gas boom, dramatically increasing the benefits and costs of growth, according to a new study.
The study conducted by Mesa State College professor John Redifer and released Tuesday calls on energy companies to team up with leaders and residents of Mesa, Garfield, Moffat, Routt and Rio Blanco counties on the Western Slope to address the impacts of growth on a regional basis.
“The results of our study show there needs to be a more coordinated, a more comprehensive approach for private-public relationships,” Redifer said in a phone interview with The Associated Press. “Private-public partnerships are created now, but on an ad hoc basis.”
Dan Johnson, Chevron Corp.’s manager of government affairs in the Rockies, said the collaboration among energy companies in producing the report is a step forward.
“I think as an industry in western Colorado, we need to have a healthier dialogue with local officials and communities about our plans and activities,” Johnson said.
The $35,000 report was commissioned by the Colorado Springs-based El Pomar Foundation with most of the money coming from six energy companies—Chevron, ExxonMobil, EnCana Oil and Gas USA, Williams Production Co., Shell and ConocoPhillips.
A panel of northwestern Colorado civic and business leaders organized by El Pomar recommended the study.
The steady economic growth of the region already spurred by tourism, purchases of second homes and retirees moving in picked up around 2004 as natural gas production expanded, according to the study. Energy development has resulted in lower unemployment, higher property values, wages and tax revenue.
The development has also intensified competition for employees as more people take higher-paying jobs in the gas industry. Problems with crime and traffic congestion, strains on the health care system, more expensive housing, a scarcity of housing, complaints about quality of life and environmental concerns are also prominent.
Redifer, with the Natural Resource and Land Use Policy Institute at Mesa State in Grand Junction, said the tendency might be to blame the problems on the energy boom, but the explanation is more complex. He said limits on government spending and revenue in the Taxpayer’s Bill of Rights, a constitutional amendment, have contributed to inadequate funding for transportation, schools and other public facilities, services and environmental monitoring.
“When you do have growth, that inadequate funding exacerbates the growth,” Redifer said.
The amendment, also known as TABOR, limits the growth of government spending to the rate of inflation and population growth and requires voter approval for any tax increases. The measure makes bonding difficult in slow times when infrastructure should be expanded to prepare for growth, the study says, and limits government spending during boom times when more infrastructure is needed.
A legislative committee is reviewing how the state distributes severance tax revenue. The taxes are imposed on mineral extraction to offset the effects of production.
Besides dealing with the current conditions, industry, business and political leaders should also look ahead to when development will level off, the report suggests. Fear of the boom going bust is prevalent because of the collapse of oil shale industry in the early 1980s that left the western Colorado economy in a tailspin for years.
Former state Rep. Gregg Rippy, a Republican from Glenwood Springs, said the new economic study drew from previous reports, state and federal data and comments from focus groups. Rippy said area communities believe that while they face different challenges, there are enough similarities that they can pool ideas and plans.
“There are a number of issues that deserve a collaborative approach involving both the public and private sectors,” Rippy said.
The report’s recommendation to involve the public and key local officials is important, he added.
“There’s a fair amount of angst among citizens who say ‘I can’t really tell you what’s different, but it feels different,'” Rippy said. “There’s some sense of ease when people know you’re trying to find solutions.”
