DENVER Oil and gas drillers and their critics are fighting their way to a stalemate in the Legislature as suburbanites on the Front Range react to the sudden presence of the industry in their neighborhoods.
Advances in hydraulic fracturing have allowed drillers to go after oil and gas in a large reservoir on the Front Range, but some cities have balked and imposed moratoriums.
Senators on Thursday killed a bill that would have forbidden such local regulations.
Front Range residents packed a hearing Thursday on Senate Bill 88, which would have disallowed any local regulation of the oil and gas industry in favor of state rules.
Sen. Ellen Roberts, R-Durango, voted against the bill, which died on a 4-1 vote.
Roberts had kind words for the industry but said she understood the concerns of people who havent experienced drilling before.
We have had a lot of natural gas development in our corner, and it has helped in many ways. Im sure its something when its new to your community, you have to address the concerns, Roberts said.
The sponsor of SB 88, Sen. Ted Harvey, R-Highlands Ranch, said the courts already prohibit local regulations that are stricter than state rules on oil and gas, and his bill would just put what the courts say into state statutes.
The oil and gas industry is one of the most important economic drivers in the state, and we dont need to make it any more expensive for them through unnecessary litigation, Harvey said.
La Plata County and the companies that drill there have agreed to disagree over the extent of the countys authority, and they have avoided costly lawsuits by entering into agreements about how the drilling will be conducted.
Democrats are pulling in the opposite direction of Harvey.
Rep. Matt Jones, D-Louisville, will present House Bill 1277 on Monday to explicitly give local governments authority over oil and gas activity.
Local control is a big deal in Colorado, regardless of party, Jones said.
Local governments can control hard rock mining operations, so they should be able to have the same say over oil and gas, he said.
But powerful forces are standing in the way of anyone who wants to change the status quo.
Officials with the Department of Natural Resources, which oversees oil and gas regulation, do not support either strengthening or weakening local control laws.
And Gov. John Hickenlooper tried to strike a balance on the topic in his State of the State speech last month.
We intend to work with counties and municipalities to make sure we have appropriate regulation on oil and gas development, but recognize the state cant have 64 or even more different sets of rules, Hickenlooper said.
Geoff Wilson, a lawyer for the Colorado Municipal League, opposed Harveys attempt to cut back city authority.
He said the current law is unclear over whether cities and counties can regulate the industry. But that lack of clarity has been valuable because it encourages both sides to negotiate over rules for drilling.
The real story, I think, is the compatibility and coordination were developing, Wilson said.
