GLENWOOD SPRINGS, Colo.—In Garfield County, which leads the state in the number of oil and gas drilling permits, the Democrats running for county commissioner support charging fees to offset the impacts of energy development while the two Republican candidates don’t.
The per-well fees would be similar to those in neighboring Rio Blanco County, which recently started charging between $10,000 to $18,000 for each new well to help pay for the impacts on roads and services from the area natural gas boom.
Democrats Stephen Bershenyi and Steve Carter said in a candidates’ forum last week that the fees could help pay for infrastructure costs associated with the continuing surge of drilling in the county.
The state issued 1,957 new drilling permits in Garfield County through Sept. 8. Weld County was second with 1,441 permits.
Republicans John Martin, up for re-election, and Mike Samson, running for an open seat, said the fees may discourage energy companies from cooperating with the county. They said the companies already contribute significant sums of money to improve area roads battered by energy development.
Democratic Commissioner Tresi Houpt, who’s not up for re-election, supports per-well impact fees.
“I do think it is important that any industry pays its way,” Houpt said. “In Garfield County, we have had some success in working with companies by having them pay for their impacts. But it is not all of the companies.”
Energy companies pay taxes, but some elected officials fear—and economic reports have said—that the revenue won’t keep pace with the effects of development.
A Garfield County transportation plan from about three years ago recommended a per-well charge of $1,577, based on the heavy vehicle traffic associated with gas operations.
Carter, who is challenging Republican Samson, said thousands of wells have been drilled and more roads have been damaged since that report was released and called for an updated review.
Martin said he opposes the per-well assessment because the amount of money raised would be less than the $3 million to $5 million companies already give to the county for road improvements each year. He said it would be more beneficial to work with the companies rather than impose fees.
Samson pointed to companies like Williams and EnCana Oil and Gas (USA), which both contributed millions of dollars to help build the Colorado Mountain College campus in Rifle.
“I think that is a great example of private industry’s ability to get those things done,” Samson said.
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Information from: Post Independent,
