What will state oil and gas commission protect? | NOONAN

Jeff Robbins, chair of the Colorado Oil and Gas Conservation Commission, made a brave statement to the House Energy and Environment committee during his recent presentation on SB19-181, which protects people and the environment rather than promoting oil and gas drilling.
“Through your legislative action in 2019, Colorado now has the most protective regulatory regime in the nation, if not the world.” This statement nicely sums up the reasons the world is in such a precarious position for reaching its environmental and climate change goals.
As proof of the commission’s advances in protective regulation, Robbins cited the size of pre- and post-SB19-181 drilling applications. The industry used to put up 15-page requests. Now the applications are 300 pages. That fact should make us all wonder about the quality of decision-making related to more than 50,000 wells approved before SB19-181.
Robbins is especially proud of the transparency of the COGCC’s approval process in which citizens can provide written opinions about drilling applications and can also comment at hearings. A review of the recent PDC Energy application involving more than 400 wells revealed many negative comments the commission set aside. It based its approval on company pledges to use “best management practices” in their operations. If history is prelude, those practices won’t be enough to reduce methane and other dangerous chemicals from heating the atmosphere and creating air pollution along the Front Range.
Republican Rep. Kenneth DeGraaf of El Paso County asked COGCC executive director Julie Murphy specifically about the need to manage methane emissions. He “heard” methane breaks down over two weeks, implying it’s not such a terrible polluter. Murphy said she’s “not sure” about the atmospheric breakdown of methane. That’s startling.
According to the Intergovernmental Panel on Climate Change, methane is more than 80 times as potent as carbon dioxide at trapping heat in the atmosphere. The gas breaks down in the atmosphere over about 10 to 12 years, much faster than carbon dioxide. That’s why controlling methane emissions is so critical. The state can get a big heat-reduction bang fast by stopping gas flaring, venting and leaks.
Rep. Mike Weissman from Aurora noted businesses in general in Colorado will face severe conditions if our bad air quality isn’t brought into alignment with the Clean Air Act. He brought up the problem of approving many drilling applications without looking at their cumulative impact on air, water and land.
Murphy acknowledged the COGCC doesn’t currently “understand” cumulative pollution impacts across permitted drilling sites. The commission’s application decisions are based on estimates of emissions. Over the next couple of years, it will attempt to determine actual emissions to assess whether its estimates are in the ballpark. Even so, without these exact numbers, the COGCC has authorized thousands of wells since SB19-181 was signed.
Committee chair Cathy Kipp from Fort Collins asked about the implementation of SB19-181’s 2000-foot setback requirement. Robbins acknowledged a number of applications have wells inside that setback distance. He called the waivers “offramps.” So, for example, if a drilling operation can only access its mineral rights inside the setback, the operator can ask for drilling permission from affected property owners or tenants.
Robbins said these permissions only occur with informed consent. He asserted some residents “don’t take issue” with drilling closer than 2,000 feet. He didn’t mention, and no legislator asked, whether these accepting individuals received remuneration for their signature or, more importantly, understood the potential health consequences. Kipp asked about future residents and tenants and their protection. Robbins claimed the big problems with energy development occur in the drilling phase. Once the wells are producing, he said, pollution and other annoyances are minimal.
That’s why the COGCC authorized the large development on the eastern side of Aurora. The idea is drilling will occur before the homes are built. That way, future home, hospital and school setbacks may be as close as 500 feet because the 2,000-foot rule only applies to drilling, not subsequent development. That’s how Aurora will begin to look like Los Angeles where a well can be your next-door neighbor.
Rep. Meg Froelich of Arapahoe County inquired about orphan wells. Murphy offered Colorado’s orphan well problem wasn’t that bad and the COGCC is using federal money to cover the cost. She admitted the COGCC had already over-allocated the first $25 million from the feds.
This issue was also a question during public comment at the COGCC’s meeting held at the same time as the committee hearing. Public commenters questioned whether the state was requiring enough bonding to protect the public from future orphan well costs. As an example, Noble Energy will buy a $6.3 million bond, which will cost much less in an annual premium, to cover the closing of all 4,000 wells in its ownership. One commentator suggested the difference between the bond amount and the estimated cost of closing all Noble’s wells, an estimated $285 million, is the amount of risk the COGCC is asking the taxpayers to foot in this arrangement.
This brings up a basic question the committee will have to wrestle with: is the COGCC operating in a manner sufficiently protective of the environment, public health and the public purse as required by SB19-181?
Paula Noonan owns Colorado Capitol Watch, the state’s premier legislature tracking platform.

