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  Home Page » Opinion » Editorial » Gas And Oil Rules

Gas and oil rules

Outcome better for drillers, surface owners, state

For the first time, Colorado has a multifaceted set of rules regulating the drilling of gas and oil wells in the state. Among other things, the regulations attempt to prevent the degradation of water supplies, provide for the disclosure of industry chemicals and come to the defense of wildlife.

Colorado Oil and Gas Conservation Commission members involved in setting the regulations, from both political parties, say the regulations were a compromise in some aspects and are not perfect but are a worthwhile step forward.

Gov. Bill Ritter signed the regulations into law last week.

The regulations came about in two steps. The COGCC was expanded in mission and size to take on issues of public safety, and then Department of Natural Resources staff prepared draft positions for industry and citizen reaction. Several public meetings were held on the Western Slope before a lengthy give and take between drafters and the industry.

While Rep. Ellen Roberts voted to support the package of regulations, her fellow Republicans generally advocated for little or no new demands on the industry. Sen. Jim Isgar played a leading role in moving the regulations along, aside from a provision he claims would give a landowner the ability to prevent drilling by involving the Division of Wildlife. That still is being worked out.

While the natural-gas development explosion began in La Plata County in the late 1980s and grew in the 1990s and beyond, county leadership here had to deal with surface-owner and taxpayer protections without support from the industry-dominated COGCC. With the expectation more recently of thousands of new wells north and east of Grand Junction, the Democratic Legislature and then Gov. Bill Ritter saw the need for the state to be proactive.

While critics of the regulations have predicted the new codes will strangle the drilling industry and force it to move elsewhere, more moderate observers have said the rules will better ensure Colorado remains an appealing and healthy place to live while the boom is under way, and after it eventually is over. Colorado's new regulations are the most demanding of any state.

Since last fall, the nation's economic collapse has greatly reduced the demand for natural gas, and wholesale gas prices have dropped to what they were half a dozen years ago. Drilling-rig use has fallen considerably, not only in Colorado but in other states, as well.

When the need for energy returns, particularly for clean and easily handled natural gas, Colorado will have the regulatory framework in place to allow exploration to smoothly get under way. The rules will be understood.

There are certain to be skirmishes among drillers, surface owners and the state, but with the steps that have transpired, Colorado and its citizens are in a far better position now than they were. For the industry, a lot of regulatory uncertainty is gone, which has value.

Congratulations to all involved for their efforts.