If there’s one thing most Coloradans can agree on, it’s that our communities and public lands need to be protected. Laws and regulations are there to make that happen, but there are instances where the federal government could be doing more.
One example: The federal oil and gas program has been failing Coloradans, undermining our communities, and harming our public lands. Fortunately, there are aspects of the program our leaders in Congress can fix right now.
GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
To start, they can address the growing number of orphaned oil and gas wells on our public lands that will cost taxpayers millions, if not billions, to clean up. Putting these costs back where they belong — on the oil and gas companies who made the mess — is something Congress can do today by strengthening the financial assurance requirements for drilling on public lands.
They can also update the more than 60-year-old rates oil and gas companies are required to pay when they lease public lands, which have cost all of us billions in lost revenues over the last decade. Updating these requirements will finally hold irresponsible oil and gas companies accountable. Instead of Coloradans paying to cap orphaned wells, we can invest that money in schools, health care, and other priorities.
According to the Government Accountability Office, as many as 99% of the bonds posted by oil and gas companies are inadequate, leaving taxpayers with billions of dollars in potential clean-up costs when companies go bankrupt due to the highly volatile oil market.
It’s not right that oil and gas companies get to extract resources from publicly owned lands, profit on them for years, then leave behind toxic wells that we, the owners of the lands, must pay to clean up. By a conservative estimate, there are more than 600 wells on federal public lands in Colorado that are at risk of being orphaned. We shouldn’t be left with that tab.
According to the Government Accountability Office, as many as 99% of the bonds posted by oil and gas companies are inadequate, leaving taxpayers with billions of dollars in potential clean-up costs.
Colorado is working to fix this problem at the state level but needs the federal government to do its part and adopt solutions. Luckily, Colorado Sens. Michael Bennet and John Hickenlooper are two of the champions in Congress working on a fix.
Bennet recently introduced a bill, co-sponsored by Hickenlooper, that would require oil and gas companies to actually set aside enough money to clean up wells before they start drilling. Bennet’s bill would also provide federal funding to address wells that are already orphaned.
Congress has a great opportunity to step up and get common-sense reforms like these done, and it’s critically important they do so now. The Department of the Interior recently announced that it will resume oil and gas leasing on federal public lands. If the government continues to let oil and gas companies off the hook, nothing will prevent this problem from getting much worse. It’s not enough to just provide funding to clean up wells, as the bipartisan infrastructure deal did. Congress must also modernize bonding rates, as outlined in Bennet’s bill, so that Coloradans aren’t using our valuable public dollars to pay for a mess we didn’t create.
Coloradans and our neighbors across the West deserve federal leasing policies that serve our best interests, not those of irresponsible actors in the oil and gas industry. These federal oil and gas leasing program reforms should be a priority for Congress and the White House, and we’re all counting on Bennet and Hickenlooper to make it happen.
SUPPORT NEWS YOU TRUST.
Colorado Newsline is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Colorado Newsline maintains editorial independence. Contact Editor Quentin Young for questions: email@example.com. Follow Colorado Newsline on Facebook and Twitter.