Category Archives: CO state regulatory agencies

Garfield County Commissioners are misusing tax dollars

A very informative article from Peggy Tibbetts, who’s been writing about the anti-fracking and other environmental issues in western Colorado for some time. What’s quite interesting is how locals created a website to show exactly how the county commissioners used tax dollars to resist the implementation of SB-181, which is supposed to protect the health and environment and make that the priority, over promoting the oil and gas industry. It would appear that the Garfield County Commissioners are acting against the intent of the law:

Garfield County Commissioners are misusing tax dollars

Written comments by Rick Casey to the BOCC on the final public input on Larimer County’s O&G regulations

[Author’s Note: I submitted the following comments to the Board of County Commissioners on July 28, 2021 because I did not get the opportunity to speak in the Zoom meeting on Monday night, July 26, 2021. Since the topic of this final meeting was about the financial ability of operators to conduct their business, that was my focus.]

Good evening commissioners, county staff, and the public in attendance:

Thank you for allowing public testimony at tonight’s historic meeting. I and my colleagues in the Larimer Alliance deeply appreciate this opportunity to make our voices heard.

Climate change is barreling down on us, and anybody who is in denial of this reality is either in denial of global scientific evidence or is seriously in need of a mental health checkup. I am sure the county government is on the side of science, factual evidence and the law.

Since this evening’s meeting is primarily about fiscal responsibility of how oil and gas operators conduct their business, I will frame my comments around the long term outlook for how well local operators will be able to continue to operate. I am only a common layperson who reads the news, but having been an economics instructor at Front Range Community College since 2009, I have read deeply into these economic issues.

I would ask the commissioners to be especially wary any operators seeking to drill new wells in the county. The primary economic indicator to which these operators will frantically point is the international price of oil; typically the NY Mercantile Exchange price, which today was $72/bbl. But that price is as unstable as a wind vane: it will change with the winds of change in international economics. Last September, that price was at $36/bbl. The current price is based on recent announcements by OPEC+, which could change tomorrow.

Fundamentally, the long term price of oil is stacked against drilling of any new wells because the forecast for the long term need of oil and gas is, shall we say….unfavorable.

The evidence for this is that the GHG from cars and trucks surpassed the GHG from coal-fired power plants back in 2016 — and has been rising ever since. Coal is at an industrial dead end of life. Though unthinkable a mere decade ago, that industrial dead end is now a reality. The other looming industrial dead end is the drop in future demand of fossil fuels for transportation. The future for this demand is in turmoil.

The use of EV’s, or electric vehicles, is ramping up, and every major car manufacturer in the world, including GM, has announced a target date by when they will cease production of fossil fuel powered vehicles, with dates varying from 2030 to 2050, most by 2035. The state of Colorado is already investing significant state resources in the encouragement of EV’s. We can certainly expect the adoption of EVs to grow dramatically in the next decade.

The date for the end of fossil fuel powered vehicles is just a mere decade and a half away. Although this is a high level macroeconomic projection, it is an undeniable global economic force that the commissioners should consider, for it will undoubtedly have dramatic implications for current investment decisions in the county.

Other macroeconomic factors that could affect investment decisions are national energy policy, such as a possible future carbon tax, which would dramatically impact any local operators’s financial projections.

I have not even begun to address the long term health impacts, which is a whole other argument against allowing any further investment in oil and gas drilling in the county.

Also, all the arguments by private property owners about “takings” are invalid, which SB-181 specifically addressed. These people need to read the law, which was arrived at after years of strenuous democratic activity — and also realize that the national and global imperatives about global climate change far outweighs any of their claims about damage to their private property and income.

Based on this evidence, I think the county should be steering its investments away from fossil fuels and towards renewable energy-based industries.

Thank you.

Ed Behan’s Statement to Planning Commission, July 21, 2021

Good Evening Commissioners:

My name is Ed Behan, and I am a resident of Fort Collins.

There has been a lot of information presented to you all tonight regarding the changes to Larimer County oil and gas regulations. I want to address one critical issue very briefly. There is a critical need for real time, site-based continuous air quality monitoring that is networked in such a fashion as to facilitate rapid response as needed in the event of any leak or potentially catastrophic mishap. The canister sensors proposed in the County’s draft regulations are only checked periodically.

To be able to have a timely reaction in the event of any failure of an oil and gas site’s equipment is critical for the health, safety, and environment of our community and natural spaces. I would think that would also be advantageous for an operator who may well be losing valuable product as well as compounding any clean-up issues associated with such an equipment failure. I will leave you with a copy of information that has been provided to both the Planning Department and the County Commissioners on a Colorado-based company that has created such a monitoring system, Project Canary. I will not say this is the only available technology that can be utilized in this fashion, but it is the first serious leap I have seen for site specific monitors beyond the canister systems.

Technology of this sort needs to be required for operation of oil and gas projects in Larimer County. I hope you will seriously consider this as an additional requirement for the draft regulations. Thank you.

Link to information delivered to both Larimer County Commissioners and Larimer County Planning Department on Project Canary:

Comments delivered BOCC and Planning Department on June 15

 

 

How do you get a bankrupt O&G company to pay for its abandoned wells?

This short article, thanks to the Colorado Sun, illustrates how even the COGCC director, Jeff Robbins, is clearly frustrated with the process of cleaning up abandoned wells. Of course, these rules were created in a previous era of the COGCC when their corporate culture was quite different. This testimony will surely play a part in how the enormous problem of the cleanup of abandoned wells will be addressed:

An oil company that no longer exists faces a $344,000 fine Colorado doesn’t expect to collect. But that’s the point.