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

TAEP: TPI still up, but 'contraction unavoidable'

12/22/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

US needs more data before ending crude export ban, House panel told

12/22/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

Oil and militancy

12/22/2014 That oil prices can collapse while bloody militancy ravages three important members of the Organization of Petroleum Exporting Countries shows domi...

Mexico uses PSCs in first Round One step

12/19/2014 Mexico is offering production-sharing contracts to companies incorporated in the country for exploration of 14 shallow-water areas in Round One bid...

BASF, Gazprom cancel asset swap

12/19/2014

BASF and OAO Gazprom have agreed not to complete an asset swap that was scheduled for yearend.

Wintershall hikes estimates of recoverable resources for Maria field

12/18/2014 Wintershall Holding GMBH reported higher recoverable resource estimates for the Maria field in the Norwegian Sea. The revised estimate is 180 milli...

Moody’s: Mid-term elections dim federal fracing regulation prospects

12/18/2014 Results of 2014’s congressional elections have reduced the prospect of the federal government enacting its own hydraulic fracturing regulations, Mo...

MEG Energy cuts capital spending for 2015 to $305 million (Can.) from $1.2 billion

12/18/2014

MEG Energy Corp., Calgary, is reducing its 2015 capital spending plans to $305 million (Can.) from the original budget of $1.2 billion.

Severance tax would backfire, Pennsylvania association leaders warn

12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...

White Papers

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...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When 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


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

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