Colorado passes restrictive House Bill 1292
Colorado House Bill 1292 – also known as HB 1292 – was recently signed by Governor Bill Ritter and dramatically increases the regulations and approval process for oil and gas drilling in the state. Ritter’s office said in announcement the bill “ushered in a new era of energy development in Colorado.” A statement from the Colorado Oil & Gas Association describes the new regulations as “the most costly and burdensome” in the country. The implication is the “new era” of Colorado energy development will not be very friendly to the oil and gas industry.
Environmental groups pushed for the passage of HB 1292 and the new regulations give the Division of Wildlife a heavy hand in the approval process for drilling permits. Even withholding drilling permits if there is a complaint the oil and gas investment poses a material threat to wildlife resources. The Colorado Oil & Gas Association has filed a lawsuit to fight the new regulations stating the Department of Natural Resources intentionally understated the cost of the bill’s regulations to the petroleum industry and to taxpayers.
Republican State Senator Greg Brophy said, “Ritter took final action in his long campaign to destroy the oil and gas industry. If there were any other industry struggling like the oil and gas industry, the state government would reach out its hand and ask: ‘How can we help?’ Instead this governor shoves them over the cliff.”
One point opponents of the bill make is the poor timing considering the current economic condition across the globe. The oil and gas industry is one of Colorado’s largest and is facing difficulties in the current economic climate. The concern is the cost of this bill will drive oil and gas investment away from Colorado.
Active drilling rigs in the state have dropped to around 50, the lowest since early 2004.
Sources for this post include Human Events and the Denver Business Journal.
Published Thursday, May 7th, 2009 at 7:33 am and filed under Industry News.