Colorado officials unveiled a draft proposal Tuesday to tighten state regulations on oil and natural gas production.
The preliminary draft rules would require energy companies to submit comprehensive development plans, increase bonding requirements and penalties, and allow for more input by state health and wildlife agencies.
The proposed rule changes stem from legislation passed earlier this year that expands the Colorado Oil and Gas Conservation Commission from seven to nine members, while reducing the number of energy-industry representatives from five to three.
Energy industry officials offered guarded comments Tuesday about the pending changes, but oil and gas firms privately have said that they’re worried about the prospect of increased regulation.
State officials said the release of the draft rules marks the beginning of an eight-month process in which feedback will be solicited from the energy industry, environmental groups and others.
“This is only an initial, pre-draft proposal,” said Dave Neslin, acting director of the oil and gas commission. “The purpose of this is to solicit informed public feedback.”
While the proposal was unveiled Tuesday in meetings with interest groups, it won’t be posted on the commission’s website until Dec. 14 to give the groups a chance to offer early feedback.
“We’re reserving judgment until we’ve seen a complete draft of the new regulations,” said Doug Hock, a spokesman for EnCana Oil & Gas (USA) Inc., one of the state’s largest energy producers.
“We’ve expressed to the commission that it’s our hope that whatever rules are developed are based upon sound science and fact,” Hock said, “rather than the emotion that characterized some of the testimony in legislative hearings.”
Meg Collins, of the Colorado Oil and Gas Association, said, “the rulemaking process is our number one concern and priority at this time as our member companies rely on regulatory certainty when planning their operations.”
“There are many unknowns right now about how our industry will be regulated,” she said.
Environmental advocates hailed the proposed regulations.
“Having a comprehensive regulatory process has never been done here before and we’re very excited about it,” said Duke Cox of the Western Colorado Congress, an environmental group. “It offers a way for the energy industry to function in a balanced, responsible way while protecting public health and the environment.”
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
