Those of you in the oil and gas industry may already be aware of the radical new oil and gas rules waiting to be deliberated, which could result in drastic changes for the state of Colorado. However, if you’re out of the loop, we’re here to fill you in.
On Monday, December 31, 2012, state and oil gas regulators gathered together and completed proposals for groundwater protection and the reduction of drilling impacts near homes. The proposal is to go under consideration next week before the Colorado Oil and Gas Conservation Commission. Leading up to the completion of the proposals were months of meetings, presentations, public participation and comments on the issue and how to best balance energy production with the need to minimize impacts on residences from nearby oil and gas development.
Both sets of rules were developed with extensive input from local governments, farmers and ranchers, the environmental community, homeowners, the energy industry, homebuilders, mineral owners, environmental health specialists and business leaders. COGCC staff has spent extensive periods of time on these issues throughout the past year to make sure they protect the public health and environment while also providing the flexibility needed to allow for production of energy which all Coloradans depend upon and furthermore creates and sustains thousands of jobs critical to the state’s economy.
Matt Lepore, director of the COGCC, stated, “These proposed rules reinforce Colorado’s role as a national pacesetter in the comprehensive and progressive regulation of oil and gas exploration and production. These proposals contain mitigation standards unprecedented nationally and mark yet another step forward in fashioning a model regulatory framework that strikes a balance that’s right for Colorado.”
Components of the proposals include:
- The new rules will require operators to meet enhanced mitigation, notice and outreach requirements when drilling near residences beginning at 1,000 feet. Setbacks in previous rules of 350 feet (urban) and 150 feet (rural) will now be 500 feet statewide.
- New measures to limit impacts may include pit-less drilling, steel berms and underground liners, strict dust and lighting controls and capture of gasses to reduce odors and emissions.
- Operators must engage in expanded notice and outreach efforts with nearby residents and conduct additional engagement with local governments about proposed operations.
- Operators must conduct sampling of water wells near drilling sites both before and after drilling activities to ensure drinking water aquifers are protected. This would make Colorado the only state to require sampling both pre- and post-drilling.
- Operators cannot operate within 1,000 feet of buildings housing larger numbers of people, such as schools, nursing homes and hospitals without a hearing before the Commission.
