State legislative Republicans on Thursday sharply criticized the Colorado Oil & Gas Conservation Commission’s proposed new setback rules as “going rogue” and called out Gov. Jared Polis and legislative Democrats for “going back on their promises.”

The rules are being changed and established by the COGCC, which was created by Senate Bill 19-181. That law also changed COGCC’s mission from a body that advocated for oil and gas development to one that regulates “the responsible development and production” of oil and gas in a manner that protects public health, safety and welfare, wildlife and the environment.

Though the setback rule has not been finalized, Republicans and the Colorado Cattlemen’s Association believe the commission is poised to set a 2,000-foot setback rule of all oil and gas drilling and fracking operations statewide. Many surmised that rule could extend to 2,400 feet, as it could apply to the boundaries of the drilling pad, not just well itself.

“This would be a de facto ban on drilling for oil and gas in Colorado,” said Sen. Assistant Minority Leader John Cooke, R-Greeley, in a Zoom press conference Thursday with five other Republican senators and representatives.

“Just a short time ago, Gov. Polis said the war on oil and gas is over. One week later the COGCC is proposing a 2,500-foot setback rule. It’s 112 all over again,” Cooke said.

He was referring to the soundly defeated 2018 Proposition 112 that called for a minimum 2,500-foot distance requirement for fracking wells, saying the COGCC is now overriding the will of a majority of voters in Colorado with the proposed 2,000-foot setback rule.

Despite the commission accepting public testimony since Fall 2019, and reviewing input from 93 parties, and all the hearings being open on Zoom conference calls, Cooke slammed the commission as operating in “secret” and trying to engineer “back-door deals.”

A COGCC spokeswoman said Thursday: “COGCC’s new mission (is) to regulate, not foster, oil and gas development in a manner that is protective of public health, safety, welfare, the environment and wildlife resources.”

Asked for response from the governor on Thursday, Polis spokeswoman Shelby Wieman replied:

“When we embarked on the historic passage of Senate Bill 181, we knew fundamental changes were necessary to enhance protection of health, safety and the environment, provide local governments a seat at the table, and cultivate more regulatory certainty for industry in the wake of years of ballot initiatives. And while we don’t provide comments on the specifics of an ongoing regulatory process, we have full faith in our staff and commissioners at the Oil and Gas Commission to implement the legislation in a manner that achieves these critical objectives while working with a diverse set of stakeholders.”

The COGCC – now a seven-member group with five full-time paid professionals and two non-voting members with the U.S. Department of Natural Resources and the Colorado Department of Public Health and Environment – has been working since early September on the vast rule changes. The changes are expected to be finalized, at the latest, by Dec. 1.

The legislators Thursday pointed to a 2018 study on the economic impact of a 2,000-foot setback showing that up to 85 percent of all private, non-federal land, would be undevelopable – and higher in the top-producing counties like Weld, where the percentage goes up to 94.

They used arguments from the fight against 112 in 2018: The setback distance is “arbitrary” and not based on science;  setback rules can’t be applied statewide as rural and urban land is used differently; the rules don’t improve health/safety of nearby wildlife or residents, the rule amounts to a “taking” of land from mineral rights royalty owners, farmers and ranchers.

The rhetoric grew heated Thursday.

“This commission is escalating the war on rural Colorado,” said Sen. Jerry Sonnenberg, R-Sterling. “This rule would cause us to lose the number one economic driver in the state.”

Rep. Perry Will, R-New Castle, said he’s seen “several industry people” and at least one company leaving Colorado because of the uncertainty surrounding the setback rules. He mentioned Petrox Resources Inc. in LaPlata County specifically. 

Michael J. Clark, owner of Petrox Resources Inc., said they can’t do business anymore in Colorado because of SB181 and the new commission. 

“Next it will be the (setbacks) from the waterways and wetlands,” Clark said, adding “there are other states where there’s a lot less uncertainty.” 

Petrox has mineral rights and interests in La Plata, but more in Archuleta County, in the vicinity of the San Juan River and on the San Juan basin. While they only have fewer than 10 employees in the state now, they typically can operate up to two or three wells which employ some 40-50 workers. 

Clark said the first round of rules from the new commission included “horribly punitive fines” that run anywhere from $50,000 to $200,000, but they were willing to work in that environment. With the ambiguity in the setback rules being changed, and possible litigation costs of getting appeals through the commission, Clark said his investors are not willing to put up the money for operations in Colorado. 

Clark said he comes from a third-generation oil and gas family in Colorado and is sad to have to leave. 

“It’s obvious the Democrats and Gov. Polis don’t want to have the oil and gas industry in Colorado,” he said.