DENVER—Republican and Democratic lawmakers sent Gov. Bill Ritter a strongly worded letter on Tuesday saying that proposed regulations for oil and gas production are “unacceptable” and would cripple the industry, which brings in $23 billion a year and employs 70,000 people in Colorado.
“We are gravely concerned that the draft rules will have a punitive impact on the industry at a time when already high energy prices are pinching Colorado’s working families like never before. As written, the draft rules are unacceptable,” said the letter, signed by nine Republicans and two Democrats from across the state.
The Associated Press obtained a copy of the letter.
One of the signers, Republican Rep. Cory Gardner of Yuma, said Ritter went beyond what lawmakers intended when he implemented two bills passed last year to tighten industry regulation.
Officials with the agencies writing rules to carry out two laws approved last year have said the proposals are “initial pre-draft” measures to be used to develop the draft rules, which will be open to public comment.
Industry representatives, environmentalists, local elected officials and others are participating in weekly discussion groups to give input on the preliminary proposals, which were presented during five public meetings held across the state.
“We’re part way through a series of 30 stakeholder meetings in which the industry is fully involved and is raising all the concerns that they have,” said Harris Sherman, executive director of the state Department of Natural Resources, which oversees the Oil and Gas Conservation Commission.
Sherman said the commission recently had a briefing for lawmakers on the rulemaking and Sen. Josh Penry, R-Fruita, was the only one who signed the letter on the rules who listened in.
The new laws passed by the Legislature require more people from outside the oil and gas business to regulate the industry. They also require companies to follow best management practices and require the Colorado Oil and Gas Conservation Commission to consult with state health, environment and wildlife officials on the potential impacts of development.
Lawmakers who object to the proposals by the Ritter administration say they create new and unnecessary bureaucracy while opening the door to unprecedented legal challenges.
State officials were scheduled to meet with lawmakers on Wednesday to discuss the issue. A spokesman for the governor had no immediate comment.
Also signing the letter were Jerry Sonnenberg of Sterling, Rob Witwer of Genesee, Frank McNulty of Highlands Ranch and Steve King of Grand Junction; Democratic Rep. Wes McKinley of Walsh; GOP Sens. Greg Brophy of Wray, Ted Harvey of Highlands Ranch and Jack Taylor of Steamboat Springs; and Democratic Sen. Jim Isgar of Hesperus.
Rep. Kathleen Curry, D-Gunnison, said she refused to sign the letter because she believes the industry and regulators need to keep talking. She said she believes regulators have gone beyond legislative intent and the draft rules need to be changed.
Rifle Mayor Keith Lambert said the rules were designed to protect western Colorado’s quality of life.
He said the region has been through previous booms and busts, and it will need wildlife and clean air and water to sustain hunting, fishing and tourism once the current energy boom is over.
“As soon as the natural gas is depleted, (it) will be gone,” Lambert said.
Sen. Greg Brophy, R-Wray, said the rules could destroy the industry on the Eastern Plains because it’s harder to extract natural gas there and takes longer. He said the rules will add 20 percent to the cost of doing business.
“A 20 percent increase in the cost of business shuts us down,” he said.
According to the 2007 Fraser Institute Global Petroleum Survey, an independent, nonprofit organization that tracks business regulation, Colorado is near the bottom of the list of states and countries with tough oil and gas regulations.
The Colorado Oil and Gas Association, which represents the industry, opposes the draft rules, saying the interagency process did not include industry expertise and did not take into account business realities. They said the draft rules could result in months of delay and regulatory uncertainty.
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