Governments take different approaches to regs

Northeast Colorado is beginning to look like a test program for how Colorado’s new oil and gas permitting rules work. It’s a tale of two counties, Boulder and Weld, with each setting its unique priorities under the new law, Senate Bill 181.

“They are called 1041 powers, which essentially delegated counties and cities authority” over permitting, said Barbara Kirkmeyer, chair of the Weld County Board of Commissioners. Weld County is hiring 11 new employees to oversee oil and gas permitting, anticipating that a revamped Colorado Oil and Gas Conservation Commission will severely threaten revenue in a county responsible for almost 90 percent of the state’s crude oil production.

“We’ll be doing everything from health, welfare and safety to ensuring the protection of our citizens and compatibility with existing land uses,” said Kirkmeyer about the permitting staff. “We hope to make it sort of one-stop shopping.”

In Boulder County, that may be more like shopping for tires in Tiffany’s.

“Based on public input, it’s clear that Boulder County residents continue to be very concerned about the public health and environmental impacts of oil and gas development,” said Elise Jones, chair of the Boulder County Board of Commissioners, in a county press release.  “The overwhelming majority of our constituents support us taking the time we need to put into place the strongest possible protections allowed under law — and we have acted accordingly.”

Boulder County enacted a moratorium effective until March 28, 2020, at a public hearing on July 16, allowing staff time to research and draft changes to its special review code of oil and gas operations. In 2017, the county enacted what it termed “the strongest set of regulations on oil and gas development in the state of Colorado.”

In eastern Boulder County, cities have also made their intentions clear in the past. Longmont has enacted moratoriums and new regulations in the past, Lafayette extended its moratorium hours after SB 181 was signed and Broomfield has a moratorium in place as it rewrites its regulations, including those allowing drilling on open space.

“We anticipate having a draft here, with the first set of changes, within a month,” said Tamil Yellico, director of strategic initiatives in Broomfield. “There are a number of changes, and we thought it would be easier for the council if we separated them into parts.”

The town of Erie, which straddles the Boulder/Weld county line, has been a lightning rod for controversy over fracking, and is probably not going to follow the lead of its home county, Weld. Soon after the bill was signed, Erie’s Board of Trustees extended an existing moratorium until next year, and the town will soon begin working on new regulations.

Adams County and the town of Superior have also enacted moratoria, but in Larimer County things are also getting interesting. Predictably, the commissioners here appear to be charting a path somewhere between Boulder and Weld.

The Larimer County towns of Berthoud and Timnath have enacted moratoria, while the Loveland City Council voted to censure the Colorado Municipal League for supporting SB 181. Johnstown’s Town Council also approved a resolution opposing the state bill.

The Larimer commissioners have launched the Oil and Gas Regulations Task Force but early in the process things had already gotten a bit controversial, said Commission Chair John Kefalas. Essentially, some residents believe that industry workers found their way onto the task force by emphasizing their education and skills, rather than their profession.

“There was a little pushback from the people thinking it wasn’t balanced,” said Kefalas, recalling a May meeting when the task force was picked. “It was a public meeting attended by one or two people. We determined we had a good balance.”

Regardless, Kefalas said he is confident the county will end up with greater oversight over the industry. That’s going to be important as the looming oversight over developers spurred an avalanche of drilling applications in a county that previously did not see great numbers.

“We want to strike a balance,” he said. “I want to make sure that we have greater authority to have oversight on issues of public health and welfare without shutting down the industry.”

In Weld, the county’s municipalities largely seem in support of the commissioner’s stance. However, that stance may be tested in court, as well.

Kirkmeyer said that having the county oversee oil and gas development, instead of the state, is much like the Environmental Protection Agency handing off oversight on air and water pollution to the states.

However, there has been some questioning on whether the county can be less aggressive than the state in protecting public health. That is not the case with EPA regulations.

But Kirkmeyer noted the state did give the county the right to oversee all surface criteria, while the state still regulates the downhole criteria for well operation. She also stressed that the county is interested in protecting public health.

“We truly believe that local control will be better. We’re elected; a state official is not,” she said. “We can also ensure compatibility with local land uses and hold hearings where they are local.”

Kirkmeyer did note that oil and gas developers were a part of the process in the county asserting control over applications.

“It appears to me that they are excited,” she said. “We strive to have good working relationships with them.”

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