Category Archives: New O&G regs for Larimer Cty

Boulder County, General Environmental Reference, Local government (city & county), New Ft Collins O&G regs, New O&G regs for Larimer Cty, SB-181

The story of how Boulder County succeeded in defeating Extraction Energy’s attempt at a forced pooling

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This story below comes from John McDonaugh, whom I asked if I could publish his comments on this issue, which was announced in a press release by Boulder County on May 4, 2023, which can be read at:

Boulder County Declares Victory on Highly Contested Application to Drill County-Owned Minerals

This is why the Larimer Alliance continues to encourage Larimer County to take a similar tough stand with the O&G industry. We all know we must transition away from fossil fuels — the sooner the better — yet this industry continues to attempt to new drill new wells — even attempting to force Boulder County into a forced pooling. So here is the back story on how Boulder Country succeeded in this particular case. –Rick Casey

Yes, Boulder’s success demonstrates the power and necessity of hope and commitment. However, their victory in this hard-fought battle required more than that:  Boulder played smart. They played tough. They didn’t acquiesce to half-measures or settle for political green-washing or low-hanging fruit (battery lawn tool rebates, anyone?).  They utilized a multi-prong approach that combined education, direct action, political pressure, creative regulatory drafting, savvy legal maneuvering, and “bottom-line” awareness with a relentless, unwavering focus on their ultimate objective:  Prevent O&G development in Boulder County.  

Take a closer look at the sequence.  Extraction Energy initially (c. 2017) pressed for 32 O&G wells and ancillary facilities to be located on Boulder County land.  Boulder firmly opposed the project and supported the enactment of SB 19-181 which gave local governments broad authority to regulate O&G development. Once SB 19-181 became law, Boulder County promptly undertook drafting and enactment of well-crafted, extremely powerful, local O&G regs.  Once in place, those strong local O&G regs undercut Extraction’s legal position, and rendered the proposed in-County O&G development (and Extraction’s battle to approve it) infeasible and uneconomic.  

Extraction Energy then attempted to develop Boulder County’s O&G resources via directional drilling from the Blue Paintbrush pad located just on the Weld County side of the Weld/Boulder County line.  Extraction figured that since SB 19-181 only allowed local governments to regulate the surface impacts of O&G development (and Weld County was, as always, in favor of the development) they could avoid compliance with the Boulder County regs by moving the O&G surface facilities outside Bounder County’s jurisdiction.  However, regs aside, Extraction still needed to acquire the subsurface mineral rights below Boulder County land.  Once again, Boulder County and its residents held firm to their objective and overwhelmingly rejected Extraction’s mineral rights purchase offer.    

But Extraction Energy wasn’t finished.  They next went to the COGCC seeking a “Forced Pooling” order which would require Boulder County to allow Extraction to develop the minerals as part of Extraction’s broader reservoir development plan. Boulder County and its residents then fought Extraction’s Forced Pooling attempt on multiple fronts:  politically (via proposed anti-FP legislation), administratively, legally, and in the “court of public opinion”.  They ultimately prevailed (at least until another oil company effort comes along).  However, Boulder County leaders and residents now know they can — through focused diligence, savvy strategies, and hard work —prevail against O&G industry overreach.  Equally important, so do the oil companies…who will likely look elsewhere for “greener pastures” and “easier pickings” the next time around.  Why play the Kansas City Chiefs when you can play the Chicago Bears? 

Boulder County and its residents showed what it takes. Playing against oil companies and their political enablers is tough.  It’s often unpleasant.  It’s taxing on multiple personal and professional levels. The other side is smart, well-financed, well-connected, and extremely tenacious. They will press their objectives, irrespective of the broader public good, until they encounter firm and effective resistance. The knife goes in until it meets steel. That’s not “cynicism”, it’s reality.  

If we environmental advocates truly do our jobs, some folks — including some folks in power and, sadly, even some so-called “environmentalists” — won’t like us very much.  However, if we remain true to our course, play smart, build and leverage effective coalitions, and call out industry BS and political inaction when necessary, they will respect us and will fear what we may accomplish. And, to my mind, that’s far more important to our world, to our community, and to the most vulnerable among us. 

If a community and its leaders settle for empty promises, election-year greenwashing, unrelated low-hanging fruit (e.g. a few more bike racks, EV chargers, lawn tool rebates), and other placebos that won’t move the climate change, ozone, and toxic emissions needle, they will get exactly what they deserve.  The oil industry will see to that.  

Boulder County and its residents showed us the way. Let’s heed and learn from their example. 

Thanks for all you and LA have done and continue to do in our “neck of the woods” on this critical issue.  Keep up the good fight!  

—  John McDonagh

John is another Old Retired Guy who lives in Fort Collins (and a former state government enforcement attorney, oil industry regulator, oil industry senior counsel, and Federal agency senior environmental counsel). 

City of Fort Collins, Local government (city & county), New O&G regs for Larimer Cty, SB-181

Has the Fort Collins city council abandoned us?

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Below is an email I sent out to the general listserv for Larimer Alliance volunteers on November 18, 2022, which enclosed an email that I had sent to all Fort Collins City Council members that day, expressing my concerns over the proposed oil & gas regulations for the city — which seem to have suddenly come out of nowhere — but are being pushed by the Mayor and Council for rapid adoption — but with which the Larimer Alliance has grave concerns. We hope we get this message out to the broader Fort Collins community before a public meeting of the Council on Dec 20, 2022, which should be the time that we show up and express our concerns (if not our outrage?) over this.

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Hello Larimer Alliance volunteer: 

We have a problem! Please see below an email I just sent to the Fort Collins Mayor and City Council. 

The Larimer Alliance needs to show up en masse at the December 20 council meeting to express our strong disapproval of new proposed oil and gas regulations — which have appeared out of nowhere, but would dramatically change the potential for oil and gas operations to take place — within city limits! 

If you want to express your opinion on the matter to the mayor and Council, which I strongly urge you to do, send your own written message to: cityleaders@fcgov.com

–Rick

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November 18, 2022

Dear Mayor and City Council members: 

I am writing to submit some comments I sent to the Planning and Zoning Commission Hearing that took place on Thursday, November 17, 2022. I wanted to attend in person, but the inclement weather conditions forced me to stay home. 

I would like to state my qualifications to address this issue. I have lived in Colorado since 1981, and in Fort Collins since 2018. I currently reside in Council District 3. I am a full time employee at HP Enterprise as an IT engineer, and have been teaching a course in environmental economics at Front Range Community College since 2009. I have been involved in environmental activism in the Front Range since 2012, and am currently the webmaster for the following websites concerned with environmental quality in Colorado, both locally and statewide:  

larimeralliance.org, 

larimerallianceblog.org, 

focosustainability.org, 

colivableclimate.org, 

ncalf.org

I would like to comment on the draft Oil & Gas Regulations that are under consideration by the Council. 

First, it is with surprise and dismay that I learned that these proposed regulations are trying to be rushed through for approval by the Council with so little public discussion or awareness. This suggests, unfortunately, there is some strategy behind this, for whatever reasons, and that whoever authored these regulations does not want them to be subjected to public discussion. So my first ask would be for the Council to please extend this rushed approval process, and let there be a full public discussion of these highly significant regulations, which could impact us for years. 

The next opportunity for public comment on this is at the council meeting on Tuesday, December 20,  the height of the winter holiday season. This is hardly an opportune date to encourage public attendance. I would urge the mayor and Council to schedule a second opportunity for public input soon after 2023 New Year’s holiday is over.  

It was truly shocking to see how many loopholes have been created in these regulations for the oil and gas industry. If I were to express this in commonly understood vernacular, these loopholes are “big enough to drive a Mack truck through.” What do I mean by that, exactly? 

Buried in these loopholes is the ability of O&G operations to get zoned into ANY part of the city! Examining the details of “allowed use” means that things like well drilling, O&G operations, seismic exploration, or the production and transport of O&G products can get approved — anywhere! at the discretion of the director of the program. I find this totally unacceptable, and would ask that a new set of regulations be developed without such sweeping loopholes. We cannot allow for the O&G industry to exploit such loopholes and think they can pursue O&G operations within the city. 

As the leaders of our city government, you would probably like to hear some positive suggestions of how to help the situation, and not just hear complaints. So here is a positive suggestion that can help with these regulations: please provide strong financial assurances for any regulations pertaining to possible O&G operations in the city. 

I would strongly prefer that NO O&G operators ever seek to develop any fossil fuel resources within the city limits, given our global warming situation. However, since that may be unrealistic, I would like to suggest the following: develop strong financial assurances rules that would anticipate and prevent small operators from coming in, chasing lower value reserves, and then walk away from their drilled wells, without properly providing the financial reserves to properly plug and abandon the well should it prove uneconomic. 

As you may be aware, this is a huge problem for the entire state right now, with a potential $8B (yes, BILLION) liability facing the state of Colorado, which is more than a fourth of the state’s entire budget in 2022 of about $36B. Therefore, establishing strong financial assurance rules would be a straightforward way to assure the public that the city council is sincere about protecting our local environmental quality from that kind of risk. That particular risk is an unsavory aspect of past behavior by the COGCC (Colorado Oil & Gas Conservation Commission), who should be blamed for creating this problem, which we strongly need to acknowledge and throw off as a relic of the past. 

In closing, it was a disappointment to see that there was no virtual attendance possible at this meeting by the Planning & Zoning commission. Perhaps that could change in the future, particularly during the hazardous winter driving season. 

Very Sincerely, — Rick

General Environmental Reference, New O&G regs for Larimer Cty

PEOPLE: WHERE DOES THE LARIMER ALLIANCE GO FROM HERE?

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A version of the following was posted to our community and allies on September 7. Do fee free to comment. . . 

 

The Larimer Board of County Commissioners passed an amended set of regulations for oil and gas development in a marathon session on the night of Thursday, July 29th.

For over two years, the Larimer Alliance has worked to inform our members and community, rallying their support to key hearings at both the County and State level for improved regulation of this environmentally dangerous industry. The support and input of our membership and many allied groups have been key in securing improved regulations. . . which still leave much to be desired in terms of comprehensive protection.

The question is: Where do we go from here?

While it is clear the County Commissioners have paid attention to some of our concerns, there is much that needs to be done to ensure the regulations as they exist are enacted effectively, and to continue advocating for improvements to the regulation of oil and gas projects in Larimer County. 

What does our membership at large think of future activity on behalf of health and environmental protections in Larimer County? What elements of the new regulations concern you? What activity would you be interested in participating in to move the cause of environmental protections forward? What do you actually think of further activity in this regard?

We need to hear from you. . . and your HELP

in implementing your ideas going forward!

An ad hoc gathering of some of our steering committee has identified a few areas of potential activity, which we have listed below. But we wouldn’t be here without your interest and energy. . . and we need  your continued interest and energy to define and pursue the way forward! 

Suggested areas of focus:

  • Advocating at both the County level and with the City of Fort Collins for improved air quality monitoring, possibly using state and federal severance tax and mineral extraction proceeds to fund such stations.
  • Monitoring the implementation of the new State and County oil and gas regulations, including tracking the permit applications as they are filed and processed.
  • Monitoring the water quality issues associated with the “recycling” of “produced” (read: “waste”) water from drilling sites, assuring compliance with relevant State and Federal regulation.
  • Working alongside allied groups to encourage the Platte River Power Authority to stick to their commitment to 100% renewable energy by 2030, with no additional natural gas units.
  • Lobbying our State legislators for an expansion of the Office of Just Transition to ensure oil and gas workers displaced by shifts to renewable energy sources have opportunities to train for new jobs in an expanding green energy sector. 

These are only a few potential initiatives the Larimer Alliance

could pursue going forward from here. 

What do YOU think should be the vital point of focus?

 

As ever, we rely on the support and input

of our members and community!

For all you do, we thank you!

www.larimeralliance.org

Check on relevant events on our Calendar Page!

 

APCD, Larimer County Commissioners, Larimer County Planning Dept, Local government (city & county), New O&G regs for Larimer Cty

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

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[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.