New state and federal regulations jeopardize Colorado’s oil and gas industry

New rules from the U.S. Bureau of Land Management (BLM) and the Colorado Energy & Carbon Management Commission (CECMC) will change the way oil and gas companies operate in Colorado.

On October 18, the BLM completed a series of updated land use plans and habitat conservation strategies that would reduce federal lands available for oil and gas leasing.

BLM is also implementing new protections against Gunnison sage-grouse in Mesa and other counties, as well as new protections against energy development for big game habitat in the state.

Under the plan, BLM would close 543,300 acres in the jurisdiction of its Grand Junction field office to future federal oil and gas leasing, leaving 692,300 acres open for leasing. Currently, approximately 1 million acres of federal lands are open to drilling in this region. BLM had initially proposed reducing available leases to 237,600 acres.

Of the 617,700 acres currently open for oil and gas leasing on federal lands managed by the Colorado River Valley Field Office, BLM has closed 548,300 acres, leaving 163,000 acres open for leasing.

The new plan allows BLM to resolve disputes related to past planning processes.

“The BLM has worked tirelessly with local governments, conservation organizations, industry, tribal nations and other stakeholders over the past two years to find an appropriate balance, which will be achieved with the completion of these plans,” said Colorado State Director Doug Vilsack. press release.

BLM also approved amendments to 11 local resource management plans in Colorado and Utah to protect Gunnison sage-grouse habitat on more than 2 million acres of public lands managed by BLM and nearly 3 million acres of public underground acres, BLM said.

The bird is protected as a threatened species under the federal Endangered Species Act, with only a few thousand remaining. Most grouse live in the Gunnison Basin, but small populations exist in other areas, including Piñon Mesa in Mesa County.

BLM says its new plan provides a one-mile protective buffer zone around Gunnison sage-grouse habitat and designates a new backcountry conservation area and three new areas of critical environmental concern. This also limits surface disturbance on BLM lands to the bird’s habitat.

BLM also issued an Oil and Gas Management Decision to modify Colorado’s resource management plans to promote the conservation of big game corridors and other priority big game habitats across approximately 6 million surface acres managed by the BLM and 16 million acres of underground mineral estates that it manages.

“The final plan requires conservation of seasonal habitats and connectivity in support of Colorado Parks and Wildlife’s big game population goals,” the federal agency said in its statement. “This protects valuable places for local communities, while allowing responsible development of areas with high oil and gas potential. »

Separately, the state of Colorado approved new rules requiring operators to meet strict new standards regarding the impacts of future oil and gas development on public health, the environment and local communities. The rule begins on December 15.

“This action by CECMC is based on the highest oil and gas standards in our country. It puts in place even better protections for Colorado families and sets a new, higher standard for assessing and addressing the cumulative impacts of oil and gas operations, especially for people living in the communities most impacted by this sector,” said Governor Jared Polis. a press release.

Industry representatives have warned that the regulations could jeopardize Colorado’s oil and gas industry.

Under the new state rule, operators must complete a cumulative impacts analysis with each new permit application. The Colorado Department of Public Health and CECMC must approve the analysis before development can begin.

“Colorado’s oil and natural gas operators have spent the last five years crafting consistent rules as state lawmakers have repeatedly shifted the focus of our regulatory regime,” said Kait Schwartz, director of API Colorado, in a press release. “As we continue to meet and exceed the state’s ambitious goals for reducing emissions while providing Coloradans with the safe, reliable energy they depend on, we strongly suggest the state adopt a more substantive and more effective policy-making.”