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COGA Comments on Mission Change Rulemaking FOR IMMEDIATE RELEASE CONTACT Scott Prestidge scott.prestidge@coga.org DENVER — The Colorado Oil and Gas Conservation Commission voted today to approve numerous changes to how Colorado’s oil and natural gas industry is regulated, wrapping up its three-month Mission Change rulemaking process. The changes were prompted by Senate Bill 19-181. “This has been a long, exhaustive and exhausting process for all involved. It has been, at times, contentious, tedious, illuminating and frustrating, but ultimately, we were grateful to take part in the process, to engage stakeholders throughout our great state and to work toward reasonable solutions. “Colorado now undoubtedly has the toughest oil and natural gas development regulations in the country, which further protect the environment and ensure that the molecules of energy produced here locally are cleaner than most anywhere in the world. All of Colorado can be proud of that. “While we agreed with many of the changes enacted by COGCC commissioners, there were several points of contention. Commissioners approved unprecedented 2,000-foot siting requirements, largely based on the precautionary principle, as no scientific evidence was presented that showed such an extreme distance was necessary. In fact, all of the testimony from toxicologists during the hearings included data showing that the previous 500-foot setback was protective of public health, safety, and the environment. “Commissioners did establish off ramps to provide a pathway to permits between 500 and 2,000 feet. How those off ramps are applied will be a crucial next step as we figure this out together. We have full confidence that operators will show how future development will be protective of public health and safety, and we’re hopeful the commissioners’ judgement will be based on what is necessary and reasonable, rather than the precautionary principle alone. “As we turn the page to implementation, industry and regulators must learn and adapt to a new playbook. Success will largely be dependent on how commissioners apply their decision making for permits in the months and years to come. Providing some certainty and predictability, both for applicants and for COGCC staff, which must assist and coordinate that lengthy application process, will be key. “Gov. Jared Polis has said these rulemakings were designed to bring predictability and stability to our industry, and that is needed right now. Colorado oil and natural gas operators are exceedingly adaptive, which is why we produce some of the cleanest molecules on the planet, but they also need a workable set of regulations to further drive innovation and investment. “It’s important to note that additional regulatory changes are required by SB19-181. In the coming year the COGCC will take on rulemakings for worker certification, financial assurance, and permitting fees. This was a large step toward fulfilling the legislature’s directives, but we still have a way to go.” Dan Haley, President & CEO, Colorado Oil & Gas Association. About COGA Founded in 1984, the Colorado Oil & Gas Association’s (COGA) mission is to be the unified political and regulatory voice for the oil and natural gas industry in Colorado, and to support our members through advocacy, partnerships, education and stakeholder engagement.
FOR IMMEDIATE RELEASE CONTACT Scott Prestidge scott.prestidge@coga.org
DENVER — The Colorado Oil and Gas Conservation Commission voted today to approve numerous changes to how Colorado’s oil and natural gas industry is regulated, wrapping up its three-month Mission Change rulemaking process. The changes were prompted by Senate Bill 19-181. “This has been a long, exhaustive and exhausting process for all involved. It has been, at times, contentious, tedious, illuminating and frustrating, but ultimately, we were grateful to take part in the process, to engage stakeholders throughout our great state and to work toward reasonable solutions. “Colorado now undoubtedly has the toughest oil and natural gas development regulations in the country, which further protect the environment and ensure that the molecules of energy produced here locally are cleaner than most anywhere in the world. All of Colorado can be proud of that. “While we agreed with many of the changes enacted by COGCC commissioners, there were several points of contention. Commissioners approved unprecedented 2,000-foot siting requirements, largely based on the precautionary principle, as no scientific evidence was presented that showed such an extreme distance was necessary. In fact, all of the testimony from toxicologists during the hearings included data showing that the previous 500-foot setback was protective of public health, safety, and the environment. “Commissioners did establish off ramps to provide a pathway to permits between 500 and 2,000 feet. How those off ramps are applied will be a crucial next step as we figure this out together. We have full confidence that operators will show how future development will be protective of public health and safety, and we’re hopeful the commissioners’ judgement will be based on what is necessary and reasonable, rather than the precautionary principle alone. “As we turn the page to implementation, industry and regulators must learn and adapt to a new playbook. Success will largely be dependent on how commissioners apply their decision making for permits in the months and years to come. Providing some certainty and predictability, both for applicants and for COGCC staff, which must assist and coordinate that lengthy application process, will be key. “Gov. Jared Polis has said these rulemakings were designed to bring predictability and stability to our industry, and that is needed right now. Colorado oil and natural gas operators are exceedingly adaptive, which is why we produce some of the cleanest molecules on the planet, but they also need a workable set of regulations to further drive innovation and investment. “It’s important to note that additional regulatory changes are required by SB19-181. In the coming year the COGCC will take on rulemakings for worker certification, financial assurance, and permitting fees. This was a large step toward fulfilling the legislature’s directives, but we still have a way to go.” Dan Haley, President & CEO, Colorado Oil & Gas Association.
About COGA Founded in 1984, the Colorado Oil & Gas Association’s (COGA) mission is to be the unified political and regulatory voice for the oil and natural gas industry in Colorado, and to support our members through advocacy, partnerships, education and stakeholder engagement.