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ENLARGE
Brace yourself.
Not for colder weather. Not for the next drop in the Dow Jones average. Not for the other shoe to drop in the latest bailout plan. Not for the travails of Xmas shopping. Not even for the likelihood that Santa will be carrying a lighter load this year when he makes his rounds on Christmas Eve.
No, brace yourself for the next round of wailing and the gnashing of teeth after the Colorado Oil and Gas Conservation Commission finishes up this week announcing final decisions on new regulations for oil and gas drilling in the state.
It’ll be the continuation of the hue and cry that’s surrounded the rulemaking since authorizing legislation began moving through the Legislature and of the misinformed industry-orchestrated outbursts during public hearings in Grand Junction and elsewhere in March.
I must confess to some sympathy while reading the oversized paper this week and seeing allegations of the latest local outrage purportedly perpetrated by the industry ... a story about bedbug infestations in area hotels. It’s nice to see that the newsroom south of the tracks shares my proclivity for NBC’s “Today Show,” where a piece on bedbug infestations aired the previous morning.
Even a sometime critic of the industry can appreciate the response from my former neighbor and current Chevron representative Kristi Pollard, who ought to be in line for a hefty holiday bonus for the following comment worthy on inclusion in any p.r. textbook.
“The oil and gas industry has pretty broad shoulders and gets blamed for a lot,” Kristi is quoted as saying, “but I’m pretty sure you can’t blame us for childhood obesity, the Broncos’ offense or an increase in bedbugs.”
Whether or not Kristi’s right, we should all point fingers at any attempt to short circuit such things as requirements to provide an inventory of the chemicals used in drilling operations, to protect public water supplies, to provide additional spacing between wells and homes, stricter waste pit requirements and reasonable attempts to provide for the needs of wildlife and habitat.
Take, for example, the complaint that the chemical cocktails used in fracturing processes are proprietary trade secrets that would be compromised if contents were revealed. Few recipes are considered more proprietary and kept closer to the vest than Coca-Cola’s formulas. But every time I crack open a Diet Coke I can read the ingredients right there on the can, even if for the life of me I couldn’t figure out the recipe and brew up my own batch. And if whatever it is they’re pushing downhole through and occasionally into underground waters is so damn “green,” why then are they so intent on hiding what it is?
I’d think they’d be anxious to shut up once and for all those who question their processes and methods and not continue to hand ammunition to industry critics.
I expect, given recent events, most of the opposition to the new regs will be focused on economic consequences. There are many reasons, all widely reported, why rig counts are declining in Colorado and why exploration plans will be less aggressive next year. They include discovery of new, more accessible resources elsewhere, tightening of the credit markets, declining demand, lower prices and inadequate pipeline capacity.
But look for most of the blame to be assigned, by folks like our local Chamber of Commerce, misinformed workers and suppliers and others, to more stringent protections for the environment, for wildlife and for you and me.
Even though folks like Kristi, Susan Alvillar of Williams and other industry representatives have placed the new regulatory climate well down the list as a contributing cause for reduced 2009 activity by their individual companies.
This is an industry already benefitting from one of the lowest effective tax rates in the region and which for too long has enjoyed a one-sided regulatory scheme emphasizing production over protection. A fair tradeoff for fending off increased payments for depleting a nonrenewable Colorado resource might be some increased level of protection for those who also depend upon the landscape that contains those precious reserves.
Let’s just hope for some backbone on the part of legislators who sent the COGCC down this road once the new regulations are up for legislative review in the next session.
There was an obvious spinal deficiency on the part of lawmakers who showed up to testify in Grand Junction earlier in the year and seemed more anxious to declare they’d have the final word than to support the COGCC rulemaking effort they ordered by unanimous vote.
---------------------------------------------------------
Jim Spehar welcomes a slowdown in energy development which allows communities to catch up on impacts and also offers the potential for extended economic growth and higher returns when resources are extracted in the future. Your comments are welcome at jimspehar@bresnan.net.
Not for colder weather. Not for the next drop in the Dow Jones average. Not for the other shoe to drop in the latest bailout plan. Not for the travails of Xmas shopping. Not even for the likelihood that Santa will be carrying a lighter load this year when he makes his rounds on Christmas Eve.
No, brace yourself for the next round of wailing and the gnashing of teeth after the Colorado Oil and Gas Conservation Commission finishes up this week announcing final decisions on new regulations for oil and gas drilling in the state.
It’ll be the continuation of the hue and cry that’s surrounded the rulemaking since authorizing legislation began moving through the Legislature and of the misinformed industry-orchestrated outbursts during public hearings in Grand Junction and elsewhere in March.
I must confess to some sympathy while reading the oversized paper this week and seeing allegations of the latest local outrage purportedly perpetrated by the industry ... a story about bedbug infestations in area hotels. It’s nice to see that the newsroom south of the tracks shares my proclivity for NBC’s “Today Show,” where a piece on bedbug infestations aired the previous morning.
Even a sometime critic of the industry can appreciate the response from my former neighbor and current Chevron representative Kristi Pollard, who ought to be in line for a hefty holiday bonus for the following comment worthy on inclusion in any p.r. textbook.
“The oil and gas industry has pretty broad shoulders and gets blamed for a lot,” Kristi is quoted as saying, “but I’m pretty sure you can’t blame us for childhood obesity, the Broncos’ offense or an increase in bedbugs.”
Whether or not Kristi’s right, we should all point fingers at any attempt to short circuit such things as requirements to provide an inventory of the chemicals used in drilling operations, to protect public water supplies, to provide additional spacing between wells and homes, stricter waste pit requirements and reasonable attempts to provide for the needs of wildlife and habitat.
Take, for example, the complaint that the chemical cocktails used in fracturing processes are proprietary trade secrets that would be compromised if contents were revealed. Few recipes are considered more proprietary and kept closer to the vest than Coca-Cola’s formulas. But every time I crack open a Diet Coke I can read the ingredients right there on the can, even if for the life of me I couldn’t figure out the recipe and brew up my own batch. And if whatever it is they’re pushing downhole through and occasionally into underground waters is so damn “green,” why then are they so intent on hiding what it is?
I’d think they’d be anxious to shut up once and for all those who question their processes and methods and not continue to hand ammunition to industry critics.
I expect, given recent events, most of the opposition to the new regs will be focused on economic consequences. There are many reasons, all widely reported, why rig counts are declining in Colorado and why exploration plans will be less aggressive next year. They include discovery of new, more accessible resources elsewhere, tightening of the credit markets, declining demand, lower prices and inadequate pipeline capacity.
But look for most of the blame to be assigned, by folks like our local Chamber of Commerce, misinformed workers and suppliers and others, to more stringent protections for the environment, for wildlife and for you and me.
Even though folks like Kristi, Susan Alvillar of Williams and other industry representatives have placed the new regulatory climate well down the list as a contributing cause for reduced 2009 activity by their individual companies.
This is an industry already benefitting from one of the lowest effective tax rates in the region and which for too long has enjoyed a one-sided regulatory scheme emphasizing production over protection. A fair tradeoff for fending off increased payments for depleting a nonrenewable Colorado resource might be some increased level of protection for those who also depend upon the landscape that contains those precious reserves.
Let’s just hope for some backbone on the part of legislators who sent the COGCC down this road once the new regulations are up for legislative review in the next session.
There was an obvious spinal deficiency on the part of lawmakers who showed up to testify in Grand Junction earlier in the year and seemed more anxious to declare they’d have the final word than to support the COGCC rulemaking effort they ordered by unanimous vote.
---------------------------------------------------------
Jim Spehar welcomes a slowdown in energy development which allows communities to catch up on impacts and also offers the potential for extended economic growth and higher returns when resources are extracted in the future. Your comments are welcome at jimspehar@bresnan.net.
