Although the oil and gas industry’s trade group was quick to criticize draft permit rules designed to protect the environment, public health and wildlife, one local operator said Tuesday it was “encouraged” by aspects of the proposed regulations.
Brian Macke, regulatory compliance manager for Denver-based Delta Petroleum, said the company is still reviewing the 160-page report released this week but was pleased that state officials took “some of the industry’s comments into account as they developed the draft rules.”
“We are encouraged by some changes in the proposed rules from what the pre-draft proposal had in it, such as the concept of having time limitations for approvals of applications for permits to drill,” Macke said.
Under proposed rules drafted by the Colorado Oil and Gas Conservation Commission staff, most permit applications are expected to be decided within 50 days. After 75 days, the operator would have the right to request an expedited hearing. Some industry officials had expressed concerns that the new rules could drag out the process for six months.
“There are still a number of important issues that will require continued discussion,” said Macke, a former director of the commission.
Delta has significant drilling operations in the Piceance Basin in western Colorado, where 80 percent of well sites could be affected by a proposed 90-day drilling ban in wildlife breeding areas.
The draft rules also set limits on drilling near public water supplies, odor controls in certain areas and reporting requirements for chemicals used at well sites.
Several of the state’s largest drillers, including Anadarko and Williams Energy, reserved comment until after a full review of the report. BP spokesman Dan Larson said the company will file to be a party to the public hearings in June to make alternative proposals or offer critiques.
As currently drafted, the rules will hurt the state’s oil and gas industry, the Colorado Oil and Gas Association said Monday.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
