Gov. Ritter asks DeGette to modify hydraulic fracturing bill

Colorado Gov. Bill Ritter Jr. said in a Denver address that he asked US Rep. Diana DeGette (D-Colo.) to seek a comprehensive study of hydraulic fracturing “instead of jumping directly to a new and potential intrusive regulatory program.”

He disclosed the request during a July 9 speech to the Colorado Natural Gas Association’s Rocky Mountain Strategy Conference. DeGette and Reps. Maurice D. Hinchey (D-NY) and Jared Polis (D-Colo.) introduced a bill on June 9 which would require federal regulation of hydraulic fracturing under the Safe Drinking Water Act. US Sen. Robert P. Casey Jr. (D-Pa.) introduced a similar bill the same day.

Ritter said that Colorado’s new oil and gas regulations are an example of how states can regulate hydraulic fracturing, which is essential to gas development in the state. “I appreciate the American Petroleum Institute and the Colorado Oil & Gas Association for recognizing how Colorado has responsibly addressed this issue with its new rules and regulations,” he said.

“I don’t for a moment discount the concerns of those who worry about protection of drinking water supplies. But I also believe that we have to understand the problem and the risks before we act,” Ritter continued. “That’s why I’ve encouraged Congresswoman DeGette to consider authorizing a comprehensive study of this issue.”

“She had a very good conversation with the governor on this matter. She is looking at all options and agrees that a study is needed. But she is not backing off her bill,” a spokesman for DeGette told OGJ Washington Pulse on June 9 when asked for a response.

Retain IDC exemption

Ritter also said that he has urged Congress to keep the tax exemption for intangible drilling costs intact to preserve a robust investment climate. “As [former Western Gas Resources Inc. Chairman Peter A. Dea] has so often and so eloquently explained, in many fields the decline rate for gas wells means we have to maintain a constant level of new development. We cannot afford to stand still,” the governor said.

Noting that he considers it an essential and permanent part of what he calls the New Energy Economy, Ritter said that gas is “not a bridge fuel, not a transition fuel, but a mission-critical fuel.”

He said that 2009 obviously has been a challenging year for producers, with gas selling for about half its price a year ago and the number of wells being drilled down by about 50%.

“The meltdown of credit markets has hurt you as much as everyone else, and it will be a while before things get better. So it’s more important than ever for us to work together, to realize the full promise of gas, to expand pipeline capacity, to increase gas as both a transportation fuel and as a baseload energy fuel,” Ritter told the group.

He said that he supports expedited Federal Energy Regulatory Commission certification of the Ruby Pipeline Project from southwestern Wyoming across northern Utah and Nevada to southern Oregon. “I’m doing everything I can to help facilitate the construction of pipeline infrastructure so that we can move Colorado gas to lucrative regional markets, such as California and the West Coast,” he said.

Natural gas vehicles

Ritter said that he also has been working to increase the number of vehicles on Colorado streets and highways running on compressed natural gas. “A couple of months ago I sighed legislation that expands tax credits to include both CNG vehicles and CNG vehicle conversions,” he said.

“And there is new federal legislation that would increase and extend tax incentives to promote the development of natural gas as a transportation fuel. I strongly support that bipartisan bill,” he continued, referring to S. 1408 which US Senate Majority Leader Harry M. Reid (D-Nev.) and Sens. Orrin G. Hatch (R-Utah) and Robert Menendez introduced on July 8.

Ritter also noted that his energy office has applied to the US Department of Energy for a $10 million grant to dramatically expand compressed natural gas’s use as a transportation fuel. The application was submitted in association with Clean Energy, which supplies CNG for transportation, and the Southern and Northern Colorado Clean Cities Coalitions.

The money would be used to help fund a $27.6 million project to deploy 68 heavy-duty natural gas vehicles including waste disposal trucks and transit buses, and to construct five new CNG refueling stations across Colorado, Ritter said as he announced the action on July 7. Project partners would pick up the remaining cost, he indicated.

Contact Nick Snow at nicks@pennwell.com

Related Articles

Obama’s proposed fiscal 2016 budget recycles oil tax increases

02/02/2015 US President Barack Obama has proposed his federal budget for fiscal 2016 that he said was designed to help a beleaguered middle class take advanta...

Tight oil price test

02/02/2015 The basic job for Oil & Gas Journal writers is to pick the right words and put them in the right order, which is often harder to do than it mig...

Syncrude sees additional $260-400 million in possible budget cuts

02/02/2015 The estimate for capital expenditures has also been reduced to $451 million net to COS, which includes $104 million of remaining expenditures on ma...

Fluid typing extends production in Chinese gas reservoir

02/02/2015 Comprehensive evaluation and classified recognition (CECR) of fluid typing and zonation (FTZ) is a prerequisite for developing multilayer sandstone...

US oil, gas industry eager to build on past successes

02/02/2015 The US oil and gas industry entered 2015 optimistically as a dramatically improved US supply outlook's economic and security benefits became increa...

Victoria extends drilling, fracing ban

01/30/2015 The new Victorian Labor government of premier Daniel Andrews has extended the coal seam gas (CSG) exploration and hydraulic fracturing ban in the s...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

Gas-turbine units in transit to Vostochno-Messoyakhskoye field

01/28/2015 JSC Gazprom Neft reported that six gas-turbine power units are in transit to Vostochno-Messoyakhskoye field in the Yamalo-Nenetsk Autonomous Region.

Eni lets $2.54-billion contract for Ghana FPSO

01/28/2015 Eni SPA unit Eni Ghana Exploration & Production Ltd. has let a $2.54-billion contract to Malaysia’s Yinson Holdings Bhd. for the chartering, op...
White Papers

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected