Colorado state agency releases draft oil, gas rules

March 31, 2008
The Colorado Oil & Gas Conservation Commission released a set of proposed rules Mar. 31 that are open to public comment, and a final OGCC decision on the rules is expected in July.

Paula Dittrick
Senior Staff Writer

HOUSTON, Mar. 31 -- The Colorado Oil & Gas Conservation Commission (OGCC) released a set of proposed rules Mar. 31 that are open to public comment, and a final OGCC decision on the rules is expected in July.

The proposals "strike a responsible balance between expanding energy development and environmental and wildlife protection," said David Neslin, OGCC acting director. The draft rules have a tentative effective date of Nov. 1. OGCC could change the date.

The draft rules reflect some changes from OGCC's initial proposals that were discussed in five public meetings during January. Industry representatives previously asked OGCC to consider the economic costs while contemplating greater environmental protections.

The Colorado legislature last year passed two laws requiring OGCC to consider the impacts to human health, safety, welfare, and the environment stemming from an ongoing oil and gas boom.

OGCC approved 6,368 drilling permit applications last year compared with 1,010 applications in 1999. Neslin said the state wants the oil and gas industry to thrive while at the same time ensuring the protection of Colorado's mountains, streams, air, and wildlife.

The draft rules would update state environmental standards, many of which are more than 10 years old. The draft rules would be applied differently in different parts of the state.

New environmental standards under the draft rules would require operators to use "green completion" practices to reduce odors, Neslin said. Certain equipment in the Piceance and San Juan basins would utilize odor-control devices if within a half mile of occupied buildings.

Existing rules do not specifically address odors but require operators to maintain sites "so as to reasonably control dust."

The draft rules outline drilling restrictions for areas near designated tributaries upstream of public water supply intakes. The proposed restrictions include mandatory setbacks.

The draft rules contain several new wildlife standards, which will be applied differently in different counties depending on the wildlife present. Existing rules do not address provisions to protect wildlife.

Neslin called the proposed wildlife standards "less extensive than originally contemplated." Draft rules include 90-day periods for restricted drilling in designated wildlife areas (primarily in western Colorado).

If an operator or surface owner finds a timing restriction to be unacceptable, they can consult with OGCC to find a mutually agreeable solution to allow drilling in exchange for alternative mitigation.

Operators also may receive an exemption by limiting the density of their development to two pads per section (one pad per section in sage grouse habitat), the draft rules said.

Contact Paula Dittrick at [email protected].