Lawmakers to review new rules over oil and gas industry

DENVER - Colorado lawmakers say they will try to cut through the "rhetoric" surrounding new rules and regulations governing the oil and gas industry when they review them next month.

The state's Oil and Gas Conservation Commission approved the measures by a unanimous vote on Wednesday after traveling statewide collecting input from thousands of Coloradans.

The new rules are designed to protect the health and welfare of Coloradans living near energy development. One of the rules establishes a protection zone around streams that serve drinking water supplies and requires the oil and gas companies to disclose what chemicals they use in drilling operations.

"We're going to be looking at a set of rules that has a lot of give and take in it already," said Rep. Kathleen Curry (D-Gunnison), who is the Democratic point person on the issue in the State House. "There's a lot of rhetoric that's overblown here as to the impacts (of the new rules)."

Specifically, Curry says concerns by the industry that jobs will be lost due to the regulatory instability don't take account of the current economic crisis, its resulting credit crunch, capacity problems with pipelines, and overall, the price of the commodity which has seen the price of natural gas in Colorado drop by nearly 75 percent this year alone.

"There are a whole lot of other things at work here too," she said.

Others though worry about the regulations' impact on the future of an industry vital to the state's economy.

"Let's not cave into hysteria. There's going to be extreme passions on all sides of this," said Senator-elect Al White (R-Hayden). "(But) given this environment, this economic environment we're in, I am concerned we don't do too much to chill the appetite of the oil and gas industry for production in the state of Colorado."

White says in parts of his Senate district, western Garfield County and Rio Blanco County, oil and gas companies have predicted they will need to shut down 40 percent of their currently operational wells because of the economy. It could cost thousands of jobs. White worries about any other impetus to send those companies out of Colorado.

"No matter what industry you're in (in this economy), you're not bullet proof. We're seeing the effect of the (economy) in our oil and gas industry," he said. "Given this uncertain regulatory environment right now, I'm worried we not do anything further to give the oil and gas industry concerns about their ability to be profitable in the state of Colorado."

State lawmakers return for their annual 2009 legislative session on Wednesday, Jan. 7. The session is constitutionally required to last no longer than 120 days.

For more information on the Colorado Oil and Gas Conservation Commission, visit http://cogcc.state.co.us/.