Here’s the release from the Colorado Oil and Gas Association (Dan Haley):
Mr. Chairman and Commissioners – my name is Dan Haley, President and CEO of the Colorado Oil & Gas Association (COGA). Thank you for allowing me a few minutes to speak to you regarding the important and complex rules that are before you today.
COGA is not new to rulemakings and engaging in our state’s ever-changing regulatory process. Over the last several years, COGA has stepped up to work with the administration, local governments, citizens and, other stakeholders to achieve constructive, meaningful, and practical solutions to tough issues faced in setback, groundwater, enforcement, citizen complaint, spill reporting, and floodplain rulemakings by this Commission. The outcome of these rulemakings resulted in the oil and gas industry operating under one of the most stringent regulatory environments in the nation.
Again, we find ourselves working in coordination with numerous stakeholders in yet another significant rulemaking – this one geared to the implementation of two of the unanimously approved recommendations by the members of the Governor’s Task Force, many of which are parties you will hear from today.
COGA fully supported the 9 recommendations submitted by the Governor’s Task Force in March 2015. In fact, our members said yes when the Governor asked industry to serve on the Task Force to help find ways for state and local governments to better collaborate and coordinate efforts for oil and gas operations. It was in the interest of all parties on the Governor’s Task Force to have a meaningful dialogue and work hard to seek ways in which the concerns of local jurisdictions, operators, and the state could be addressed and to provide constructive recommendations for policy on how best to achieve these goals.
In the end, all 21 task force members voted to adopt the language in Task Force Recommendations 17 and 20. Those recommendations were thoughtful and meaningful in approach and, by their unanimous support, addressed many of the issues before you today. These recommendations would bring a big change in the way oil and gas locations are permitted in Colorado. The changes proposed in Recommendation #17 are significant because for the first time:
The State would have a process and a standard for reviewing whether operators have worked in good faith to achieve agreement with local government on issues of concern about large facilities in urbanized areas. There would be a record of negotiation to help the State decide what site specific mitigations may be necessary to respond to local concerns. There would be established expectations that provide all parties with an understanding of when and with what conditions state permits will be considered.
These are meaningful changes.
And with regard to Recommendation #20, for the first time, the State would identify parameters for industry to share longer-term planning information with local governments.
COGA supports this rulemaking, however, maintains that the COGCC proposed rules must be modified to uphold the intent, meaning, and integrity of the task force recommendations.
If Recommendations 17 and 20 were written the same as the draft rules before you, the industry representatives and maybe even a few non-industry members would NOT have voted in favor of the recommendations, and as such would not have passed out of the Task Force. In fact, as you will hear during the Industry presentation, there are certain elements of the rules that were outright rejected by the task force.
That is why today, COGA, along with CPA and CPC, will be presenting an alternative rule that is based on the COGCC’s proposed rules, but reflects needed modifications in order to respect the intent, meaning and integrity of the actual recommendations of the Governor’s Task Force. The industry’s alternate proposed rule is based on the 3 C’s of Clarity, Consistency, and Certainty – you have heard this in prior rulemakings and we will explain in later testimony how our alternate rule follows the 3 C’s. Industry’s proposed rule maintains the intent and purpose of the unanimous recommendations of the Governor’s Task Force, while providing language that allows for the practicable and realistic application of an early evaluation process.
Please keep in your mind that, in addition to the two recommendations before you today, industry task force members voted to support the other 7 recommendations, and COGA communicated and supported those recommendations to the legislature, as necessary. A lot is getting done, and today we are talking about two additional important recommendations to be implemented for further improvements in the responsible development of Colorado’s oil and gas resources.
COGA recognizes that this is a very important hearing and that you have heard and will hear a lot of testimony, from many perspectives. We appreciate your patience and consideration and also want to say thank you to the staff for their very hard work on these tough issues. COGA asks that you strongly consider our alternative rule as presented later today by Ms. Jost as we do believe our proposal provides clarity, consistency, and certainty for all stakeholders, not just Industry.”