DENVER—U.S. Sen. Wayne Allard said Wednesday that he thinks the governor’s plan to phase in drilling on the Roan Plateau “makes a lot of sense” and left the door open to a compromise to move ahead with the plan in Congress.
Democratic Gov. Bill Ritter wants to spread out natural gas development on the Roan Plateau, believing it will minimize the environmental impact but also maximize royalty payments to the state since the value of the gas will go up over time.
While Allard, R-Colo., said he sees the benefit of doing that, he added that he wants energy companies to have a clear idea of what regulations they would be operating under so they don’t end up buying a “pig in a poke.” During a conference call with reporters, Allard said he would continue to work with Ritter to try to reach a compromise.
“I don’t think we’re that far apart in many regards,” said Allard, who met with Ritter to discuss the issue last week.
Steve Wymer, an Allard spokesman, later said the senator wants to make sure that companies who commit to developing on the Roan aren’t limited to a “trickle” of leases each year. He also said Allard wants to establish rules up front on the development of oil shale.
Shale reserves in Colorado, Utah and southwest Wyoming are believed to contain at least 1 trillion barrels of oil—three times the proven reserves of Saudi Arabia—but development is believed to still be years away.
Republican state Sen. Josh Penry said he’s also been urging Allard to join with Democratic members of the state’s Congressional delegation to back a bill to enact Ritter’s plan.
Penry said the issue is urgent because the Bureau of Land Management, which rejected Ritter’s plan last month, is poised to start selling leases on the Roan this summer. Once that process starts, he said it would be impossible to phase in development of the western Colorado landmark. Meanwhile, the scenario about how to develop the Roan Plateau could also change depending on who wins this year’s presidential election.
“I support leases happening this year one way or the other but I think the governor’s plan is in the best interest of the state of Colorado by maximizing the return,” Penry said.
Ritter spokesman Evan Dreyer said the governor has been working with all members of the delegation since the BLM rejected his plan. He said it’s important for Colorado to speak with one voice on the issue in Congress and Ritter will continue talking to all members of the delegation.
“Reaching common ground can sometimes be an artful process. We are encouraged and hopeful that we can get there,” Dreyer said.
A spokesman for Sen. Ken Salazar, D-Colo., said he continues to work with the delegation on “thoughtful and responsible” legislation on the Roan.
“BLM’s plan continues to not be acceptable for the state of Colorado or the local communities on the Western Slope,” Cody Wertz said.
Ritter and lawmakers from both parties are counting on federal mineral royalties and bonus payments, including from the Roan Plateau, to build up a fund to pay for long delayed repairs and construction project at state colleges and universities. An estimated $1 billion would also be sent back to communities where oil and gas development is happening over the next 10 years to pay for road construction and other projects.
That proposal (Senate Bill 356) is scheduled to get its first hearing Thursday at the state Capitol.
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Associated Press writer Judith Kohler contributed to this report.
