Showing posts with label oil and gas production. Show all posts
Showing posts with label oil and gas production. Show all posts

Wednesday, March 6, 2013

Fort Collins bans fracking

Fort Collins now has an ordinance that bans hydraulic fracturing within its city limits.

The city council in the northern Front Range municipality approved the law Tuesday evening, defying a threat from Gov. John Hickenlooper that the state would sue to prevent local regulation of the oil and gas industry.

Hickenlooper told a Denver TV news reporter last week that litigation in which the state would argue that only the Colorado Oil and Gas Conservation Commission can set rules for the industry would likely be pursued against any city that attempts to ban fracking.

The state's principal oil and gas industry trade group, Colorado Oil and Gas Association, may also challenge the ordinance in court.

"COGA is evaluating taking legal action; the State Supreme Court has clearly stated that drilling cannot be banned within a city, county, or municipality," Tisha Schuller, the organization's president and chief executive officer, said. "Because any new wells in Fort Collins would be hydraulically fractured, a ban on hydraulic fracturing is a ban on oil and gas development."

The ordinance extends further than just a fracking prohibition; it forecloses any oil and gas exploration in Fort Collins.

Fort Collins is now the second municipality in Colorado to ban fracking. Longmont did so last November.

Wednesday, February 27, 2013

Hickenlooper threatens anti-fracking Colorado cities and towns with lawsuits

Gov. John Hickenlooper staked out Wednesday an aggressive stance in favor of state control of oil and gas exploration.

According to a report by Denver television station KCNC, Hickenlooper told reporter Shaun Boyd that his administration would launch court fights against any municipalities that ban hydraulic fracturing within their city limits.

The state has already started down that path. In December attorney general John Suthers' office sued the city of Longmont, arguing that only the Colorado Oil and Gas Conservation Commission can regulate where fracking occurs in the state.

The litigation with the Boulder county municipality followed a decision by the community's residents to approve an anti-fracking referendum in the November election.

It was the second lawsuit launched by the state against Longmont. Suthers sued on behalf of COGCC after the city adopted rules last summer that limited the areas in which exploration could occur.

Fort Collins might be the next target. Its city council initially approved on Feb. 19 an ordinance that would ban all oil and gas exploration within the city limits.



Wednesday, September 2, 2009

O'Brien Announces $80 Million in Grants to Cities, Counties, Schools

The Ritter administration announced Wednesday that more than 500 cities, counties and school districts across Colorado will receive about $80 million in grants funded by severance taxes generated from oil and gas extraction.

The purpose of the grants, which were calculated under a more generous allocation formula created by a 2008 law, is to "offset impacts from energy development, strengthen local economies and improve the livability of Colorado communities," according to a press release from Gov. Bill Ritter's office.

“These funds come at a critical time and will help local agencies and schools maintain quality services,” Lt. Gov. Barbara O’Brien said. “These direct distribution awards will allow local officials to decide how best to invest these funds and make the biggest difference in their communities.”

The amount of the grants is a state record. Prior to the enactment into law of SB 08-218 and HB 08-1083, grants from energy severance taxes and the federal government's mineral lease fund were based on the number of employees an energy company had in a particular community. The 2008 statutes require consideration of the number of drilling permits, amount of production, employee residences, population in the community, and the amount of highway user miles in a community.

The total of the grants last year was about $24 million.

Colorado's severance tax on oil and gas drilling accounted for $44.5 million of this year's grant fund, while the federal mineral lease fund is the source of the remaining $35.9 million.

The largest recipients of grant money from the state's severance tax were Mesa county (about $4.7 million), Garfield county (about $4.6 million), Weld county (about $2.7 million) and the city of Grand Junction (about $2.1 million).

Grants to school districts, and additional grant money for municipalities and counties, come from revenues generated by the federal government's mineral lease fund.

About $2.8 million is being provided to school districts from the federal revenues, with the largest recipients being Garfield School District RE-2 (about $454,000), Roaring Fork School District RE-1 (about $377,000) and Mesa County Valley School District 51 (about $306,000).

A complete list of recipients, and the amounts they received, can be found here.

Wednesday, March 25, 2009

Rule Review Bill Clears Senate, Heads to Ritter

The Senate has given final clearance to the new oil and gas development rules issued by the state's Oil and Gas Conservation Commission and the bill formalizing legislative approval is on the way to Gov. Bill Ritter.

HB 1292, which is the vehicle for this year's effort to review and approve all rules issued by state agencies since last year's legislative session, was the subject of a strong effort by Republicans in both chambers of the General Assembly to change the oil and gas rules.

During yesterday's debate in the Senate, after which the rules bill was approved by voice vote, GOP senators offered to triple penalties on some environmental violations in return for a Democratic agreement to weaken certain aspects of the rules, especially those relating to wildlife protection.

"This amendment is an attempt to restore some balances," Senate minority leader Josh Penry, R-Grand Junction, said. "Bill Ritter would get 90 percent of what he wants, plus some things he didn't ask for."

But Democrats argued that debate on the rules bill is limited to consideration of whether the agency followed proper procedure and not a time to discuss substantive changes to the regulations.

They also reiterated a view that stronger regulation of the environmental impacts of oil and gas extraction activities is necessary to protect public health and the quality of life on the Western Slope.

"We have been overwhelmed with an industry that has grown very rapidly," Sen. Gail Schwartz, D-Snowmass Village, said Tuesday. "I think it's time in our state that we have a chance to catch up."

Wednesday, March 18, 2009

Oil & Gas Rules Start Senate Review Process Today

The new regulations affecting the state's oil and gas industry will be considered by a legislative committee today as the Senate starts its review of them.

The rules, which were finalized by the Oil & Gas Conservation Commission under a directive of last year's legislature, have already cleared the House.

They are being considered along with a variety of other new rules and regulations issued by state agencies.

Tuesday, January 27, 2009

Senate Committee Rejects GOP Effort to Block New Oil and Gas Regulations

Republican opponents of the state's new regulations on oil and gas drilling failed Tuesday in an attempt to convince the General Assembly to stop them from going into effect.

SB 4 was rejected by the Senate Local Government and Energy Committee despite pleas from sponsor Greg Brophy, R-Wray, that the measure is needed to prevent energy companies from fleeing Colorado.

Tuesday, October 28, 2008

OGCC Completes Consideration of New Extraction Rules

The Colorado Oil and Gas Conservation Commission has completed its consideration of expansive new rules governing energy extraction activities in the state and will decide whether to adopt them in December.

According to a Rocky Mountain News report,

In the last phase of deliberations Sunday and Monday, the nine-member Oil and Gas Conservation Commission weighed proposed regulations to better handle and store waste products from drilling operations.

Commissioners will consider formal approval of the new rules Dec. 9-11.

The reworked rules are designed to better protect the environment, public health and local communities from the impacts on air, water, wildlife and lifestyle from oil and gas drilling.

Industry officials have heavily criticized the new rules, saying they could add costly delays to new energy development. But state officials say they have made numerous compromises to address operator concerns as part of their effort to balance an energy boom in the state with quality of life.

Wednesday, September 24, 2008

Ritter Again Pleads for Halt to Commercial Oil Shale Authorizations

Gov. Bill Ritter objected today to the White House’s latest efforts to advance commercial oil-shale development in Colorado, arguing that recent regulatory changes by the U.S. Department of Interior are "premature and irresponsible."

President George W. Bush has blocked the continuation of a funding restriction on the issuance of commercial oil shale leasing regulations. The funding restriction expires Sept. 30.

“I urge you and your administration to partner with states like Colorado," Ritter wrote to Interior Secretary Dirk Kempthorne. "Work with us, not against us, and together we can meet this nation’s energy needs and craft a responsible energy future for America.”

The text of the letter can be found here.

Thursday, September 4, 2008

Ritter Criticizes Federal EIS on Oil Shale Development

Gov. Bill Ritter criticized the final environmental impact statement issued by the U.S. Department of Interior in connection with proposed oil shale development in the state today, saying the program is inconsistent with Colorado's commitment to renewable energy and that the Bush Administration is not cooperating with his administration.

"The Bush Administration is engaging in last-minute maneuvering in its waning days rather than developing a comprehensive, meaningful and responsible long-term energy policy for America’s future," Ritter said. "Finalizing an Environmental Impact Statement without any clear understanding of the environmental, community, economic and energy impacts of commercial-scale oil shale development is irresponsible, short-sighted and premature."

Ritter emphasized that his administration is not opposed to all energy development.

“As the national debate over America’s energy future continues, we must be clear that Colorado is committed to helping meet America’s energy needs," Ritter said. "We are issuing about 35 new oil and gas drilling permits a day. We are building a New Energy Economy that is bringing thousands of new jobs to Colorado. And our research institutions are developing cutting-edge, new energy technologies."



“But with the Department of Interior’s action today, the federal government has once again failed to act as a responsible partner for Colorado. This does nothing to address gas prices at the pump today and has the potential to do much more harm than good.”

Thursday, August 14, 2008

GOP Legislators Attack Salazar's Stand on Energy Development

Several GOP state legislators attacked U.S. Sen. Ken Salazar's positions on energy development on federal lands yesterday, calling on him to be more accommodating to Bush Administration plans for more drilling on the western slope and off U.S. coasts.

Salazar has been a vocal critic of those administration plans, calling on the Departments of Interior and Agriculture, who manage federal lands, to be give more consideration of environmental impacts and to give less weight to gas prices at the pump.

"Ken Salazar has missed a golden opportunity to become Colorado's quarterback for common sense energy policy," Sen. Mike Kopp, R-Littleton, said. "He could be genuinely helping families meet their budgets for gas and utility bills, but I guess he would rather be a punter than a quarterback."

Salazar has opposed development on Colorado’s Roan Plateau and the Vermillion Basin. He has also opposed allowing environmental rules to be established so the feasibility of commercial oil shale production can be determined.

The Republicans' criticism of Colorado's junior senator was included in a letter sent to Salazar Wednesday by, among others, Kopp, senate minority leader Andy McElhany of Colorado Springs, and senate assistant minority leader Nancy Spence of Centennial.

Wednesday, July 30, 2008

Colorado Officially Objects To Roan Plateau Leases

The Colorado Department of Natural Resources submitted a protest to the federal Bureau of Land Management today objecting to the BLM’s plan to lease the top of the Roan Plateau for commercial drilling on Aug. 14.

Colorado’s protest letter reiterates Gov. Bill Ritter’s belief that the Roan should be leased in phases to:

· Maximize the economic return to the state;

· Provide for long-term sustainable economies in West Slope communities;

· Encourage improvements in drilling technology;

· Protect the Roan’s other natural resources.

“We believe that the Bureau of Land Management’s (BLM) plan for leasing the Roan next month has serious flaws that must be addressed before a lease sale occurs,” Harris Sherman, executive director of the Department of Natural Resources, wrote in the protest letter.

“The BLM’s plan fails to protect valuable fish and wildlife habitat, will not maximize economic return to the State, and could result in the State not receiving its share of mineral bonuses and royalties.

“The State of Colorado has tendered a plan for the Roan that would accomplish these goals, and this plan has received widespread support from around the State. Nonetheless, the BLM has rejected the State’s proposals, and we have no choice but to object to the BLM’s leasing plan.”

Wednesday, July 16, 2008

Rocky Article Lays Out Status of Oil and Gas Rule Changes

The Rocky Mountain News ran a good article today covering a recent hearing on the proposed changes to state regulations governing energy extraction activities before the Colorado Oil and Gas Conservation Commission.

The proposed rules being considered would double the bond requirement on drillers and strengthen requirements to prevent pollution from extraction activities.

Thursday, July 10, 2008

Ritter's Oil and Gas Severance Tax Proposal Would Provide Scholarships

Gov. Bill Ritter's proposal to increase the state's severance tax on oil and gas extraction activities could benefit eligible college students to the tune of $1,000-$6,000 if the initiative makes the ballot and is approved by Colorado voters.

The dollar amount is the value of scholarships that could be awarded to students, according to a report in today's Rocky Mountain News.

The grants, called "Colorado Promise Scholarships," would be funded by the removal of a property tax exemption now enjoyed by the state's prosperous oil industry.

The Ritter Administration's Department of Higher Education approved the scholarship proposal yesterday and indicated the agency's support for the ballot initiative.

According to the Rocky article by Berny Morson,

The analysis presented Thursday assumes scholarships would be available to students from families earning up to $102,000 a year. But the actual cap could be different, and it's not clear how the rules would apply to large families supporting several students in college, Skaggs said.

The analysis also includes the assumption that students would make a financial contribution, by working or with the help of a nonprofit organization. Awards would be affected by amount of federal aid the student receives.

Students would be expected to maintain a minimum grade- point average.

A portion of the money raised under the program would be given to each of the higher education institutions to distribute as additional aid based on academic merit.