Colorado legislative fight over oil and gas begins anew, with predictable end
It’s a new year, but it’s the same legislative outcome for Democratic bills to regulate oil and gas or to promote renewable energy in Colorado.
Republicans Thursday made short work of two Senate bills that would pledge the state to get all its energy from renewable sources by 2035, and another to hold oil and gas companies more responsible for leaks, explosions and abandoned operations. Both of the bills by Sen. Matt Jones of Louisville, the Senate Democrats’ point man on environmental issues, died on a party-line vote.
“We should protect people’s health by stopping coal and oil and gas pollution,” Jones told reporters before the hearing. “We have a moral responsibility to our grandkids to address global warming.”
Democrats on the House Health, Insurance and Environment Committee, however, passed Sen. Joe Salazar’s bill to only allow oil and gas development “in a manner consistent with protection of public health, safety, and welfare, including protection of the environment and wildlife resources.”
Forty-eight people testified Thursday evening in the hours-long hearing.
The bill mirrors what’s called the Martinez decision, a court case accepted by the state Supreme Court this week that would force state regulators to give more weight to public health and safety when approving oil and gas permits. The case was filed by five Colorado teenagers in 2014. If Salazar’s bill passed the Senate (it won’t) and Gov. John Hickenlooper signs it into law, the Supreme Court likely would declare the court case moot.
If the bill goes on to make it out of the Democratic-led House, it’s dead on arrival in before the same Republican majority that killed Jones’ bills Thursday. Senate President Kevin Grantham promised as much over breakfast in Canon City with Colorado Politics the weekend before the session, characterizing the legislation as unnecessary and disrespectful to a major industry and employer in this state.
“We’re done with this,” Salazar said of accidents and health risks at a Capitol press conference Thursday. “It’s time we started regulating this industry in a manner with consistent with the health, safety and welfare of the public and our environment.”
He said the regulation was needed to balance the rapid expansion of oil-and-gas operations close to homes, especially northeast of Denver.
Xiuhtezcatl Martinez, the named plaintiff in the Martinez case, has become an informal but effective national spokesman on the climate change cause.
The 17-year-old cited health statistics he related to fracking in the Capitol’s West Foyer at lunchtime Thursday.
“We are at a point where we can no longer let an industry come first over our communities, our children, the safety of our people,” Martinez said. “This is us exerting our democracy.”
Opponents told the House committee Thursday night that bill and the Supreme Court case are so broadly written it could be used to deny any permits, because every human activity has impacts.
Republicans on the committee questioned who would bear the costs, and the industry representatives said it would be them and cost of severance taxes.
Tracee Bentley, executive director of the Colorado Petroleum Council, said the bill is premature, seeking to codify a case that hasn’t been decided by the state Supreme Court. And even if the Martinez litigants win, it only means the state Oil and Gas Conservation Committee has to hear their case, not necessarily adopt it.
“The bill would have undeniable and significant financial impacts that are certainly not reflected in this fiscal note,” she said of the bill’s legislative analysis. “Completely rewriting the COGCC’s mission would turn every permitting decision into a forum for protracted litigation costing the state millions in direct dollars to defend in administrative and judicial appeals and tens of millions more in lost taxes and royalty revenues because of permitting delays.”
The industry, however, focused on its wins in the Senate after Jones’ bills were killed in a hearing that wrapped up by mid-afternoon.
“Today the Senate continued its commitment to Colorado families and the state to emphasize the need for smart energy and economic policy by voting down Senate Bills 63 and 64,” Bentley said in a statement. “The Colorado Oil and Gas Conservation Commission already requires financial assurance and outlines reclamation requirements in current law and industry supports those statutes.”


