Sweeping oil, gas bill signed into law

DENVER — With the stroke of a pen Tuesday afternoon following a 20-minute news conference, Gov. Jared Polis signed into law a set of sweeping oil and gas reforms aimed at beefing up regulations and giving local governments more control over drilling in their communities.

The controversial Senate Bill 181, or SB19-181, was fiercely opposed by industry groups and Republican lawmakers in oil-producing regions such as Weld County.

“With the signing of this bill, it is our hope that the oil and gas wars that have enveloped our state are over and the winner is all of us,” Polis said.

The bill, put forth by House Speaker KC Becker, D-Boulder, and Senate Majority Leader Stephen Fenberg, D-Boulder, shifts Colorado’s regulatory philosophy in several ways, including changing the mission and makeup of the Colorado Oil and Gas Conservation Commission, the state’s chief oil and gas oversight body.

Historically, the commission’s charge was to foster the development of oil and gas operations. Now the COGCC’s mission will prioritize regulating the industry and promoting health and safety.

“It will be clear that health and safety come first and the industry will be able to operate with more certainty and significantly reduced political risk,” Polis said.

The bill gives local government leaders more power to enforce land use regulations and zoning rules to regulate oil and gas activity.

“Our state is taking a big step forward to give local governments a seat at the table … when it comes to new oil wells being drilled in their communities,” Becker said.

Despite the inclusion of a host of amendments aimed at making SB19-181 easier for the industry to swallow, oil and gas groups came out against Polis’ decision to sign it into law.

“Governor Polis’ signature makes Senate Bill 181 law, which fundamentally alters the natural gas and oil industry’s future in the state of Colorado,” Colorado Petroleum Council spokesman Ben Marter said in a statement released Tuesday afternoon. “From the introduction of the measure early last month, our industry vigorously opposed the policy and the process. Senate Bill 181 remains a threat to one of the foundations of Colorado’s economy.”

Oil and gas groups cried foul at the speed at which the bill was approved, arguing it was pushed through the House and Senate without input from the industry.

Fenberg defended the process Tuesday.

“Since introducing the bill back in March, there were six committee hearings between the House and Senate where the public was invited to attend and weigh in on the merits of the bill. That discussion amounted to more than 40 hours in committee and an additional 16 hours of debate on the floors of both chambers.”

As a result of this debate, lawmakers adopted 33 amendments to the bill, including changing language to ensure local governments implement new drilling restrictions only when those regulations are “necessary and reasonable.”

“We are appreciative that legislative leaders heard our concerns and worked with us to begin to address them,” Marter said. “Colorado’s energy future is too important to be wielded as a partisan weapon, and all Coloradans deserve to know the consequences of this bill, both intended and unintended.”

Colorado conservation and environmental groups cheered the passage of SB19-181.

“Today marks a new chapter in Colorado’s history. For the first time ever, our state is on track to put the health and safety of workers and residents, and our environment ahead of oil and gas industry profits,” Conservation Colorado executive director Kelly Nordini said in a prepared statement. “This policy is nearly a decade in the making, and we applaud our elected leaders who fought for so long to make it a reality.”

Area county reactions to the bill signing varied significantly. Weld County commissioners said in a letter to county residents that “As county commissioners, we stand firmly behind the families employed by the oil and gas industry as we are grateful for the work you do. We stand ready to work with the oil and gas industry, as we have since the early 1920s, to develop a system that provides certainty and stability to the process.”

Boulder County commissioners said, “While not perfect, the bill is a meaningful step forward in addressing the conflicts that have erupted from oil and gas development in recent years, particularly along the Front Range of Colorado. The bill levels the playing field for local governments by giving them more control and a stronger voice in what takes place inside their borders. The improved control gained by local governments is not unlimited, but the bill does provide them with clearer authority to regulate oil and gas development …”

Larimer County, meanwhile, has begun putting in place a structure for regulating the oil and gas industry through its land use regulations. Commissioners appointed a task force to advise it on regulations that should be enacted.

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