Watching Government: Colorado deals with setbacks

Jan. 21, 2013
The idea that Colorado regulators faced setbacks seems confusing at first. In this context, however, "setback" refers to the required distance for oil and gas wells from an occupied building.

The idea that Colorado regulators faced setbacks seems confusing at first. In this context, however, "setback" refers to the required distance for oil and gas wells from an occupied building. The manner in which Colorado's Oil & Gas Conservation Commission dealt with it on Jan. 9 was quite clear.

It proposed requiring at least a 500-ft setback for an exploration or development well, which would be the most rigorous such requirement in the nation. Existing setback standards were 150 ft in rural areas and 350 ft in urban areas.

Operators wanting to drill within 1,000 ft of an occupied structure would have to use closed loop drilling to eliminate pits, meet liner standards to protect against spills, capture gases to reduce odors and emissions, and strictly control noise, dust, and lighting, according to COGCC.

It said that operators wanting to work within 1,000 ft of a school, hospital, nursing home, or other structure holding many people would first need to appear before a COGCC hearing.

Operators also would be required to notify nearby residents more aggressively as well as hold more meetings with local governments about proposed activity. "As part of this, operators proposing drilling within 1,000 ft must meet with anyone within that area who asks," COGCC said.

"These are tough and far-reaching new rules that significantly reduce the effects of drilling for those living or working nearby while at the same time protecting the rights of mineral owners," said Matt Lepore, the commission's director.

"We believe these collectively amount to the strongest criteria for setbacks in the country, will hold industry to a new standard, and represent a national model," he maintained.

Water sampling

The proposals came 2 days after COGCC approved groundwater protection rules requiring oil and gas operators to sample nearby water wells, both before and after drilling their own wells. Only two other states have mandatory groundwater programs in place, and neither requires operators to take post-drilling water samples, COGCC noted.

It said the proposals followed a year of discussions with producers, local governments, farmers and ranchers, environmental groups, homeowners and homebuilders, mineral owners, environmental health specialists and business leaders.

The Colorado Oil & Gas Association said its proposals were not as good as an alternative producers offered. "Setbacks are much more than just a simple measurement of distance," observed Doug Flanders, COGA public and external affairs director. What COGCC proposed might effectively increase urban sprawl by forcing operators to increase setbacks without co-located or centralized facilities, he said.

The setback rulemaking will continue the week of Jan. 21, when COGCC will vote on the Jan. 9 proposals.