BUENA VISTA – Colorado land is rich in fossil fuels, and a new report finds that millions of dollars of that resource is being either wasted or given away to gas and oil companies. Taxpayers for Common Sense found that the amount of natural gas companies are allowed to burn or vent is costing communities millions in lost royalties.
In Colorado, almost 28-billion cubic feet of natural gas was lost from Colorado lands between 2006 and 2013. Bill Midcap, director of external affairs with the Rocky Mountain Farmers Union, finds it ironic how much gas the federal government allows to be lost.
“Our federal government talks about our dependence and reliance on fossil fuels from foreign countries, when we choose in this country to still vent and flare natural gas that could heat houses and communities,” he says.
Federal agencies are in the process of updating a 30-year old rule on drilling for gas and oil. The report recommends the government collect royalties on any gas leaked in excess of a reasonable amount, and encourages companies to use updated technology to reduce waste.
Nationwide, there was $380 million of gas and oil released, vented or flared between 2006 and 2013. Ryan Alexander, president with Taxpayers for Common Sense, says that amount surprises most taxpayers.
“A lot of people aren’t aware of how much money that is, and it’s one of the biggest sources of revenue to the federal government after taxes,” he says. “A lot of times, the companies developing those resources are really getting sweetheart deals. I think this is just something where people aren’t really aware; they don’t think about it.”
Midcap says since most gas drilling operations are located in Colorado’s rural communities, they have the most to lose with the current arrangement.
“Rural communities really expect to get that fair share of that income that come from our public lands,” he says. “Rural communities invest in infrastructure to support the drilling, so why shouldn’t they get more money back into those rural communities?”
According to the report, if the federal government does not enact tighter controls on the gas lost, taxpayers could lose more than $1 billion in royalties by 2040.