Oil and gas task force expected to find middle ground in Colorado local control issue

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Colorado Gov. John Hickenlooper

Cathy Proctor

Reporter- Denver Business Journal

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Gov. John Hickenlooper said Tuesday that he expects the newly named 21-member oil and gas task force to find areas of compromise on one of the state’s most important issues.

In a meeting with reporters in his office, the governor also thanked the members of the task force for their willingness to step into one of the state’s most controversial issues, and the organizations who submitted nearly 300 names for consideration.

“This is an example of people in Colorado willing to go the extra yard and make our state better, with a willingness to step out and work together to get reasonable compromise,” he said.

Hickenlooper called the controversy over where and how oil and gas operations should be conducted in proximity to homes and neighborhoods “one of the most important issues I’ve worked on in the 12 years I’ve been in public service.”

The simmering controversy had spilled into public view in recent months as dueling campaigns prepared for a multimillion-dollar fight over ballot issues viewed as either pro- or anti-oil and gas.

But Hickenlooper and U.S. Rep. Jared Polis (D-Boulder) on Aug. 4 announced a deal in which both sides agreed to withdraw the initiatives. Hickenlooper said he’d appoint a task force charged with coming up with recommendations for the state legislature that would “help minimize land use conflicts that can occur when siting oil and gas facilities near homes, schools, businesses and recreational areas.”

The task force is co-chaired by XTO Energy Inc. President Randy Cleveland and La Plata County Commissioner Gwen Lachelt, founder of the environmental group Earthworks’ Oil & Gas Accountability Project.

Not everyone was happy with the makeup of the task force.

Rep. Jerry Sonnenberg, a Republican from Sterling in northeastern Colorado, said the list of names was light on landowners and agricultural representatives. That sentiment was shared by Don Shawcroft, president of the Colorado Farm Bureau.

Bruce Baizel, the director of the Earthworks' Oil & Gas Accountability Project — the group founded by Lachelt, wrote in a blog post on Tuesday the task force should have had more people representing local governments and those concerned about climate change.

"Missing are voices that might say ‘No, thank you, we choose not to have drilling in our community, as you cannot demonstrate that you do no harm,'" Baizel wrote.

Hickenlooper said the task force is likely to meet every three or four weeks, and that the meetings — as well as a website set up to track information about the task force — will be open to the public.

The task force, according to Hickenlooper's executive order issued Tuesday, will look at a range of issues, such as dust, noise, traffic, setbacks between wells and homes, local regulations or laws that are stricter than the state's, whether regulations need to be adjusted based on population density, and the interaction between surface owners and landowners in planning and operating wells.

The order said the task force "shall explore options that address the issues ... and that help clarify and/or better coordinate the regulatory jurisdiction over activities associated with oil and gas operations between state and local jurisdictions."

The task force will look at options such as memorandums of agreement and agreements between state and local governments, changing existing laws or regulations and suggesting new laws, according to the order.

The order said the task force can recommend new legislation, or changing existing legislation with a two-thirds vote. Those in the minority also can issue a separate report with their recommendations, the order said.

• ( The full executive order can be found here.)

Bob Beauprez, the Republican candidate for governor, in a statement criticized the task force's focus on new regulations.

The panel, he said, "will only serve as a stepping stone to the imposition of further debilitating regulations on an industry that is not only already well regulated, but critical to the economy of our state."

Hickenlooper said the 19 members of the task force represent as many parts of the state as possible, and also represents key constituencies.

Hickenlooper said the core of the conflict is balancing the interests of people who live and work on the surface of the land with the interests of people who own underground mineral rights.

“If you have someone living some place for along time and a drilling rig was going up in the meadow across the street, that’s alarming,” he said.

But at the same time, he said, the owner of a mineral right that was purchased years ago also is alarmed by new local regulations that may make it difficult or impossible for them to access the value of those minerals.

“We have two self interests in conflict,” he said. “Both have good arguments on their side. The question is how do we sit down and work through those conflicts.”

If no recommendations are reached, Hickenlooper acknowledged there are other ways to approach the conflict — either through rule-making by state regulators, or future ballot initiatives.

But, he said, “I feel optimistic that they’ll get to a conclusion.”

Cathy Proctor covers energy, the environment and transportation for the Denver Business Journal and edits the weekly "Energy Inc." newsletter. Phone: 303-803-9233. Subscribe to the Energy Inc. newsletter