DENVER—A state legislative committee Tuesday rejected a proposed one-year delay of Colorado rules that require more input on the environmental and health consequences of oil and gas development.
Sen. Greg Brophy, R-Wray, proposed the moratorium on the new regulations, which he warned are costing the state jobs and tax revenue. He said he sponsored the bill “strictly to protect the economy in the state of Colorado.”
But supporters countered that low oil and gas prices, tight credit and a lack of pipelines to ship natural gas to market are to blame for an industry slowdown.
The number of rigs drilling for oil and gas is down throughout the Rockies, even in states without rules similar to Colorado’s, said Michael Freeman, an attorney with Earthjustice who represents environmental and community groups.
“A delay (in the rules) will cause unnecessary risks to Colorado’s environment, public health and wildlife,” Freeman said.
State officials have said the regulations strike a balance between encouraging the industry and protecting air, water, wildlife and communities.
The regulations implement two laws passed by the Legislature in 2007. The Colorado Oil and Gas Conservation Commission, which oversees the industry, approved about 100 new or amended rules in December.
If the Legislature approves the rules, they would take effect April 1. Permits issued until then would fall under existing regulations.
More bills challenging the rules are expected.
Brophy said he was disappointed, but not surprised, by the 3-2 vote against his bill by the Senate Local Government and Energy Committee. He said the bill should have been sent to the Agriculture and Natural Resources Committee, where some Democrats have joined Republicans in criticizing the rules.
Democrats control both the House and the Senate.
The Colorado Oil and Gas Conservation Commission worked about 18 months writing the rules. Regulators held public hearings across the state and dozens of work sessions attended by industry and government officials, landowners and conservationists.
Colorado was in the midst of an energy boom when legislators overwhelmingly approved laws to give more weight to environmental, public health and safety concerns when considering oil and gas development. State officials received complaints from landowners, hunters, anglers and communities worried about the impact on air and water quality, wildlife and drinking water supplies.
Colorado issued a record 8,027 drilling permits last year, nearly double the 4,323 approved in 2005. Most permits were for natural gas.
“I believe that it is really important for us in a state where we granted 8,000 permits for drilling last year that we do all we can to protect the citizens of the state where clean air, clean water, wildlife and local communities are concerned,” Gov. Bill Ritter said at a news conference.
Colorado’s permit total last year was second only to Texas, which issued 20,980.
Industry officials say uncertainty over the regulations and a faltering economy have led companies to scale back operations and reduce investment.
“These rules have already hurt Colorado’s economy,” said Ken Wonstolen, an attorney representing the Colorado Oil and Gas Association, a trade group.
The rules pose a big burden on operators of low-producing wells, or about half the companies doing business in Colorado, said Jim Walker of Petron Development Co.
“I don’t know why we were so demonized,” Walker said of the industry. “I am working hard to keep the children of America warm.”
The industry “absolutely got a fair shake” during the rule-making process, said Suzanne O’Neill, executive director of the Colorado Wildlife Federation. She said the amount of land where companies have to take steps to protect wildlife was reduced after objections from energy companies.
“We also have to look at the fishing and hunting industries, tourism, recreation and what the impact of not having minimum wildlife protections will be on those,” O’Neill said.
