COGCC announces new drilling rules
The buffer between drilling rigs and homes could get bigger under new rules proposed by the Colorado Oil and Gas Conservation Commission.

The regulatory body that oversees energy development in Colorado released its long-awaited recommended rule revisions for the oil and gas industry on Monday. Among the proposals is a new setback rule, which would require wells to be placed at least 500 feet from any home and 1,000 feet from schools, hospitals and nursing homes. Current setbacks are 350 feet from homes or schools, and 150 feet in rural areas. The new rules also would require steps to reduce the impact of wells on neighboring residences and groundwater testing around new wells before and after drilling.

A public hearing on the new rules will be held Jan. 7-9 in Denver.

The draft rules are the result of nearly a year of public meetings on the topic of how to reconcile energy production with public health. The rules were developed with input from various stakeholders, including local governments, farmers and ranchers, environmentalists, homeowners, the oil and gas industry and business leaders. While environmentalists and homeowners called for a 1,000-foot setback, industry supported keeping it at 350 feet.

Members of the eight-member COGCC, appointed by Gov. Hickenlooper, called the new rules “groundbreaking” and lauded the cooperative effort that led to them.

“These proposed rules reinforce Colorado’s role as a national pacesetter in the comprehensive and progressive regulation of oil and gas exploration and production,” said Matt Lepore, director of the COGCC. “These proposals contain mitigation standards unprecedented nationally and mark yet another step forward in fashioning a model regulatory framework that strikes a balance that’s right for Colorado.”

Under the rules, wells 1,000 feet or closer to homes would need to employ mitigation measures such as pit-less drilling, steel berms, and dust, light and emissions reductions. Operators also would have to expand their public notice and outreach efforts when drilling a new well.

Despite progress in the right direction, environmentalists criticized the new rules as not going far enough in protecting the health of people and the land.

Conservation Colorado called the new rules “weak,” arguing that the setbacks would still allow heavy industrial activity near homes and raise concerns of the state’s ability to properly regulate drilling and fracking.

The Boulder-based Western Resources Advocates also criticized the proposals. “The state has yet to show it understands that drilling poses a health threat,” Western Resources Advocates lawyer Mike Chiropolos said. “Drilling turns people’s quality of life upside down, and the only safeguard is some distance.

BLM floats fee hikes for San Juan River
One of Durango’s most popular river getaways may be a little costlier next year.

On Dec. 20, the Bureau of Land Management’s Monticello, Utah, office released a Draft Business Plan for the San Juan River, which calls for an increase in current permitting and application fees.

The draft plan proposes increasing river recreation fees by 66 percent as well as instituting an application fee. Currently, fees to float the San Juan are $6 per person for the upper portion, Sand Island to Mexican Hat; $12 for the lower stretch, Mexican Hat to Clay Hills; and $18 for the entire run, from Sand Island to Clay Hills. The BLM is proposing to increase these fees to $10, $20 and $30, respectively. A $6 fee will also be tacked onto permit applications for all private trips. In addition to the rate hikes, the BLM also proposes to streamline the current permit lottery season to improve efficiency, customer service and reduce costs.

Last year, almost 11,800 boaters floated the San Juan as it winds through southeastern Utah. Of those, about 2,742 were commercial trips, with the remaining 9,052 private boaters. It is estimated the proposed fee increases on private boaters will increase annual revenue by about $86,979, from $131,787 to $218,766.

The funds will be used to offset increases in operational and maintenance costs, which have risen substantially since the last time fees were raised in 2001. Money also will go toward a second vault toilet ($20,000) at the San Island Lunch Site in 2016 as well as a seasonal ranger or intern ($14,000-$24,000) during the river season.

The rest of the money will go toward upkeep of current facilities, including: boat ramps, parking, trash, toilets, camping, picnic facilities, staffed ranger station, interpretive services, and safety and resource-protection ranger patrols. The Monticello BLM maintains three facilities along the San Juan: the Sand Island Launch Site and the Mexican Hat and Clay Hills boat ramps. Sand Island also features drinking water, a solar-powered ranger station and a river equipment warehouse for river rangers.

Furthermore, it is anticipated that the new $6 fee will reduce the number of applications by an estimated 25 percent, generating approximately $22,500 in additional revenue and realized administrative cost savings. The BLM says a significant amount of labor costs are associated with processing applications and reservations that are often cancelled before payment.

The BLM is also proposing changes to the current permitting process, including shortening the lottery season from April 1 - Oct. 31 to April 15 - July 15. According to the draft proposal, each year the Monticello Field Office receives approximately 4,200 private permit applications for the lottery, with 90 percent requesting launches during the peak season of April 15 - July 15.

Outside of the peak season, a reservation system will be used in place of the current lottery system. According to the BLM, three out of five permittees outside the peak season end up cancelling their reservations, making the lottery system unnecessary and inefficient. It is hoped using a reservation system for those launches would reduce cancellations and administrative work.

Under the proposed reservation system, applicants for launches before or after the April 15 - July 15 high season could call for reservations up to three months in advance of a launch date. All cancellations would continue to be available for other boaters.

If approved, the changes would go into effect in 2014.

The comment period ends Jan. 25. View the plan online at www.blm.gov/ut/st/en/fo/monticello.html. Send written comments to: BLM Monticello Field Office, Attn: Todd Parker, Outdoor Recreation Planner, P.O. Box 7, Monticello, UT 84535 or email.  BLM_UT_MT_Comments @blm.gov.

 

– Missy Votel