The Colorado Oil and Gas Association is gearing up to play a bigger role in legislative discussions about natural-gas and oil regulations in the coming year, Tisha Schuller, CEO and president of the trade association, told local business and government leaders Wednesday.
After the introduction of nine major drilling-related proposals in this year’s legislative session, the association already is making requests to speak with lawmakers who have or have thought about proposing gas and oil bills.
“A lot of our focus – and we’re going to have the same Legislature next year – is that we change the nature of this conversation,” Schuller said in a visit to Durango and the San Juan Basin. “We’re actively calling for a discussion before the legislative session, basically saying: ‘Please don’t put forward bills without talking to us first.’”
Only two of the legislators who sponsored gas-and-oil-related bills conferred with the industry beforehand, Schuller said.
Other industry groups are expected to amp up their presence in the state Capitol, as well, after this year’s legislative session. The Western Energy Alliance, which represents about 400 gas-and-oil companies, said it plans to increase its lobbying budget fourfold to press back against recent efforts to put tougher restrictions on drilling activities across the state, according to a report in Bloomberg.
Schuller criticized what she believes is a polarizing conversation about the gas and oil industry in Colorado.
She said pro-renewable energy groups should view the industry as a partner in developing that technology and making energy production more efficient.
“Let’s not make technology the enemy. Let’s not make oil and gas the enemy, because you know who invests the most in renewables worldwide? The majors. The oil and gas majors (are the) biggest investors in renewables. Period. Why? Because they have the resources,” she said. “Who can address carbon sequestration the best? Who can innovate smaller footprints? Less water (usage), more efficiency? The oil-and-gas industry could. Let’s stop vilifying them and make them our partners.”
Fossil fuels will continue to be a major part of the energy picture in the future, Schuller said. Worldwide energy demand is expected to at least double by 2040, and demand for natural gas is expected to grow by 65 percent during that time.
La Plata County recently entered the discussions about horizontal hydraulic fracturing and shale drilling that have been the focus of controversy and debate on the Front Range. Swift Energy, a Texas company, plans to drill two shale-oil wells in the county and spurred the county to consider enacting a moratorium on shale drilling.
During that discussion, Commissioner Gwen Lachelt mentioned Boulder County’s newly created regulations as a possible model. The regulations create a two-track process in which companies that meet the county’s more-stringent set of requirements can qualify for an expedited review process. Companies that comply with only the state’s standards would go through a regular review process that includes public hearings.
Schuller was skeptical about Boulder County’s new regulations. It depends on how they are implemented, she said.
“We don’t love their two-track system because it has a number of things that could be used to delay the process (such as) various levels of comment, various levels of public meetings,” she said.
“Essentially, we don’t support regulations that go beyond the state supremacy,” and Boulder’s could become that way if the standard review process is too burdensome, she said.
The association sued the city of Longmont about the fracking ban voters approved in November, arguing it preempts state authority to regulate gas and oil drilling in the city.
ecowan@durangoherald.com
