Feds, Colo. hash out agreement on oil, gas rules
BY THE ASSOCIATED PRESS:DENVER — Colorado's new oil and gas rules,
denounced by the industry as the most burdensome in the country, now
apply to federal land as well as private and state land.
Stricter oil and gas regulations took effect on private and state
land in Colorado on April 1. Enforcement of the rules was delayed on
federal land to give state and federal officials time to sort through
any conflicts.
Last week, state regulators approved agreements with the Bureau of
Land Management and U.S. Forest Service. The rules took effect on
federal land in Colorado on Wednesday.
Dave Neslin, director of the Colorado Oil and Gas Conservation
Commission, said the agreements recognize that energy development on
federal land is subject to both federal and state rules. He said
companies will be encouraged to consult with both state and federal
agencies. Decisions on projects where state and federal rules overlap
or conflict will be made case by case.
The state commission regulates the industry and issues all oil and
gas permits, including those on federal land. Roughly 15 percent of the
oil and gas wells in Colorado are on federal lands.
Industry groups and companies have questioned the state's authority
to regulate development on federal and have said they could wind up not
knowing which regulations to follow.
Neslin said court decisions support a state's right to apply
environmental laws on federal land. He said the state commission has
consulted with the state attorney general's office.
The Colorado Oil and Gas Association, a trade group, said in
written comments June 23 that the state-federal agreement “is a
meaningless document, solving no problem created by the new rules.”
The trade group has filed a lawsuit seeking to throw out the rules.
“As we go through it, we'll be smoothing it out. There's no doubt
about that,” Jamie Sellar-Baker, acting branch chief for the fluid
minerals division of the Colorado BLM, said of her agency's agreement
with the state.
Sellar-Baker said state and federal agencies will continue to
follow their own planning processes and environmental reviews and
discuss any potential disagreements early on. She said the agreement is
intended to provide an opportunity for “clear and open dialogue.”
The new regulations include dozens of new or modified rules meant
to fulfill 2007 laws requiring more consideration of the environment,
wildlife and public health and safety when approving oil and gas
development.
The laws were passed during Colorado's natural gas boom. Industry
officials have blamed Colorado's declining oil and gas production in
part on the new regulations, which they say are the most restrictive in
the country.
State regulators and the rules' proponents, including
environmental, hunting and angling groups, say the recession, low
natural gas prices and tight credit are behind the decline, not the
regulations.
Colorado had 39,394 active oil and gas wells through June 6.
Best regards,
Sean Carnahan


