Two initiatives to temper the impacts of oil and gas drilling in Colorado — requiring a 1,000-foot setback from homes and limiting the use of open fluid pits — were rejected Monday by a legislative committee.
The setback bill and the bill requiring “closed-loop” tank systems in place of open pits both went down on 3-7 votes.
Rep. Su Ryden, D-Aurora, sponsor of the setback bill, told the House Local Government Committee that the proposal was “in response to a serious situation” — the prospect of heavy oil and gas development near suburban areas.
Ryden also cited a “lack of action by the Colorado Oil and Gas Conservation Commission.”
But Robert Randall, deputy director of the state Department of Natural Resources, said the commission was about to start a “stakeholder process” to address the issue.
The bill also was opposed by the Colorado Oil and Gas Association and the Colorado Petroleum Association, both trade groups, as well as the Colorado Association of Commerce and Industry.
“This is a job-killing bill,” said Rep. David Balmer, R-Centential, a committee member.
Shelly Bassman, representing the citizens group Longmont Roar, spoke in support of the bill, saying it was simple protection for homeowners.
“These are multinational corporations. They can handle a 1,000-foot setback,” Bassman said.
After the vote, Ryden said the fact that the oil-and-gas commission would begin a review of the setback issue was “a victory in itself.”
The bill requiring the use of closed-loop systems to handle hydrofracturing fluids, a process in which large volumes of liquid are pumped into a well, was sponsored by Rep. Roger Wilson, D-Glenwood Springs.
Wilson called the growing number of oil and gas pits in the state “an accident waiting to happen.”
The bill would have required the use of the closed-loop system whenever possible and would not have gone into effect for three years. Industry representatives, however, outlined the range of rules in place to regulate drilling, hydrofracturing and pits.
Several committee members said they would defer to the state oil-and- gas commission on the issue.
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
About the bills
HB 1173: Would have banned oil and gas operators from using, storing or disposing hydraulic fracturing fluids in open pits in most cases. Would have required the use of closed-loop systems for fracking fluids except when the Colorado Oil and Gas Conservation Commission specifically approved open pits in areas where there is no risk to occupied structures or water sources.
HB 1176: Would have allowed the Colorado Oil and Gas Conservation Commission to require that hydraulic fracturing wells be set at least 1,000 feet from any school or residence. Would have allowed surface owners in nonurban areas to request shorter setbacks.
