DENVER—The Legislature’s Joint Committee on Legal Services approved 98 of 100 rules drafted by the Colorado Oil and Gas Conservation Commission to regulate the state’s oil and gas industry on Friday after supporters said they’re needed to protect Colorado’s quality of life.
The rules now go to the Legislature, where a furious debate is expected.
The only major change was a rule that requires oil and gas operators to consult with the Colorado Division of Wildlife on minimizing adverse impacts to wildlife resources, which the commission repealed.
Dave Neslin, the oil and gas commission’s acting director, said there were two conflicting rules on wildlife. One made it clear the Division of Wildlife must consult with the operator, the surface owner and the commission, while the other said an operator must consult with the commission, the surface owner and the Division of Wildlife.
Neslin said the only difference with the two rules was the order in which those entities are consulted. The Department of Natural Resources has applied to the secretary of state for emergency rule-making powers to fix the problem.
The committee also rejected a rule that failed to specify that records be maintained at designated libraries.
However, committee members kept a rule that could exempt oil and gas operators from being charged with a misdemeanor for falsifying compliance checklists after they were assured the checklists were only intended as a guide.
The Committee on Legal Services said its authority was limited to deciding whether the rules complied with state statutes that gave the Colorado Oil and Gas Conservation Committee its rulemaking authority, and with a duty to protect wildlife and public health, safety and welfare.
In December, the commission approved 100 new or amended rules that are pending legislative approval. State officials say the regulations strike a balance between industry and environmental interests.
If the Legislature approves the rules, they will take effect on state lands April 1.
Harris Sherman, director of the Department of Natural Resources, said oil and gas drilling has taken a toll on the environment and wildlife, especially on the Western Slope.
“Because of past activities, we’ve seen a serious scarcity of wildlife species,” Sherman said, warning that some could end up covered by the Endangered Species Act forcing more serious measures.
Ken Wonstolen, attorney for the Colorado Oil and Gas Association, an industry trade association, said the rules are too broad and give surface owners the ability to block drilling.
He said the appeals process could drag on for months, despite promises from lawmakers that they would establish an expedited permit process.
Matt Garrington, spokesman for Environment Colorado, said the protections will allow the oil and gas industry to thrive, while protecting the state’s natural resources, public health, wildlife habitat and its $10 billion a year recreation industry.
Bryan Martin, assistant director of conservation for the Colorado Mountain Club, said the rules create a process that will protect public health and wildlife.
“Our public lands, working ranches, mountain streams and clean air are the touchstones of our quality of life in Colorado,” Martin said.
Last year, the state issued a record 8,027 drilling permits, nearly double the 4,323 approved in 2005. Most of the permits were for natural gas.
