DENVER – The Legislature this year may try to balance mineral rights with homeowners, as the debate over hydraulic fracturing rages on in Colorado.
Those concerned with fracking are discussing a proposed measure that would require the oil and gas industry to compensate homeowners in the event that drilling operations negatively impact property values.
On the other side, pro-industry lawmakers are expected to again attempt legislation that would hold a local government liable for the value of lost royalties if the local government bans fracking.
Both sides of the conversation face an uphill battle in a divided Legislature, in which Republicans control the Senate and Democrats hold the House. Republicans tend to favor pro-industry bills, while Democrats have proposed legislation cracking down on fracking.
The proposals come as fracking opponents prepare statewide ballot initiatives that would allow local governments to enact rules and regulations more stringent than those of the state, including mandating larger setbacks of wells and banning fracking altogether.
Similar ballot efforts were discussed in 2014. But a deal was reached at the time to avoid the initiatives. Under the deal, Gov. John Hickenlooper created a task force to weigh the local control issue.
The task force – co-chaired by La Plata County Commissioner Gwen Lachelt, a Democrat – recommended rules that would offer local governments a greater say in operations.
The Colorado Oil and Gas Conservation Commission has been weighing rules that would require operators to consult with municipalities when building large facilities and register with municipalities for planning purposes.
But the COGCC’s rule-making has caused a bit of a stir. Some task force members, including Lachelt, expressed concerns that the COGCC missed the intent of the task force, which was to provide additional protections for communities.
The COGCC will continue its rule-making on Jan. 25.
“There’s dynamic tension between the people that want a stronger voice for local communities and the people that support the rights of private property and the industry. ...” Hickenlooper said of the effort. “As close as I can tell, both sides seem to be pretty ticked off, which means we’re probably pretty close to a reasonable compromise.”
In the meantime, the Colorado Supreme Court is weighing whether local governments have the authority to enact stronger rules and regulations.
Given the unsettled environment, some lawmakers believe the Legislature should act.
“If you’re putting oil and gas industrial activity in neighborhoods, you’re going to get pushback at the Legislature,” said Sen. Matt Jones, D-Louisville, who has led many of the anti-fracking fights at the Capitol. “You’re not going to be able to buy your way out of that.”
Some blame fracking for causing pollution and health hazards, though the industry maintains that the process has never contaminated groundwater and includes numerous safeguards.
Fracking employs pressurized water mixed with sand and chemicals to break open natural gas and oil deposits underground.
Beyond health concerns, homeowners have expressed frustration with loud industrial activities that can be a nuisance. They have also reported declines in property value.
Jones said details of the proposed legislation to compensate homeowners were still being worked out, including where the burden of proof would lie, either on the homeowner or the oil and gas company.
“It’s always been about how you do it,” Jones said. “We all enjoy having our warm house in the morning, but it’s how you do it, and how that affects people.”
Meanwhile, Rep. Perry Buck, R-Windsor, will continue to push for compensation for mineral-rights owners. Similar legislation failed last year, but Buck said she wants to keep the conversation going.
“To me, this is really about government and a person’s property rights,” Buck said. “I’m a strong advocate for property rights, and I just think that we keep that to where we don’t set precedents on government coming in to take somebody’s mineral rights from them.”
pmarcus@durangoherald.com
