Colorado Oil and Gas Conservation Commission Takes on New Environmental Protection Powers

Strategic Insights -

As the Colorado Oil and Gas Conservation Commission (OGCC) assumes expanded environmental protection powers, the state's oil and gas industry is counting on increased regulation by the commission to prevent local governments from imposing their own regulations. However, environmental groups and many state landowners remain skeptical, believing that the OGCC has historically prioritized energy development over environmental concerns. The commission's new role is a result of amendments to the Oil and Gas Conservation and Commission Act, which were passed during the 1994 Colorado legislative session. These amendments expand the OGCC's scope to include responsibility for public health, oversight of waste disposal, and enforcement of OGCC rules.

Key Takeaways:

  • The Colorado Oil and Gas Conservation Commission (OGCC) has taken on new environmental protection powers, expanding its scope to include responsibility for public health, oversight of waste disposal, and enforcement of OGCC rules.
  • The OGCC has 18,000 existing wells to police in Colorado and oversees a drilling frenzy adding new wells at a rate of 2,000 per year.
  • The new law is designed to help the OGCC deal with bad actors and provide more tools for effective regulation.
  • Critics argue that the amendments are a smoke screen intended to prevent county-level regulation by reiterating existing state rules and regulations.
  • Weld County, the most actively drilled region in the country, is threatening to impose its own oil and gas drilling regulations, prompting an outcry from industry operators.
  • The proposed Weld County regulations would duplicate many of the OGCC's rules and regulations but without the commission's expertise and resources.

Statistics:

  • 18,000: existing wells in Colorado that the OGCC must police
  • 2,000: new wells added per year in Colorado
  • 25%: industry contribution to Weld County's economy in 1992
  • $1 million: maximum Growing Environmental Response Fund (FERF)
  • 2: commissioners with agriculture or environmental expertise required
  • 2: commissioners with petroleum geology or engineering backgrounds required
  • 7: total number of commissioners as stipulated by the amendments

Sources:

  • [The Denver Post, June 1994]
  • [Colorado Oil and Gas Conservation Commission Act, 1994]
  • [Colorado Oil & Gas Association's (COGA) regulatory affairs committee, statement by Ron Jacobs]
  • [Front Range Land and Mineral Owners Association, statement by Dennis Hoshiko]
  • [Weld County Commission, proposed regulations]
  • [Colorado Petroleum Association, statement by Bill Lancaster]
  • [Colorado Oil and Gas Conservation Commission, OGCC Director Rich Griebling statement]