Colorado’s oil and gas regulator on Nov. 23 approved tougher permitting rules for new oil and gas wells, including requiring a 2,000-ft (610 m) separation between wells and homes or public spaces, from the current 500-foot setback.
Regulators had given preliminary approval for the rule in September and the unanimous vote by the five-person commission was expected. The 2,000-foot separation, opposed by some industry groups, takes effect Jan. 15. It allows drillers to seek exceptions in some cases.
The new rules allow “transparent and protective oil and gas development,” Commissioner Bill Gonzalez said following the vote. “These rules do not effectively ban oil and gas development” in the state, he said, rebutting criticism of the wider setback.
Colorado produced 444,000 barrels oil per day in August, tied with Alaska as the fifth-largest U.S. oil-producing state, according to the latest data available from the U.S. Energy Information Administration (EIA). Activists in the state had tried to pass similar legislation in the past.
There are 4,600 permits before the commission for new oil and gas wells, and all will fall under the new rules, said Megan Castle, a commission spokeswoman.
The setback rule came out of legislation passed last year that altered the commission’s mission. That law requires the Oil and Gas Conservation Commission to protect public health, safety, welfare and the environment, a change from its prior role of fostering development.
The rules “will likely give untethered discretion to the Director and the commission” on permitting, said Lynn Granger, executive director of industry group API Colorado. It will “work closely with the commission, staff and energy-producing communities to better clarify and implement” the rules, she said.
Recommended Reading
NOG Closes Utica Shale, Delaware Basin Acquisitions
2024-02-05 - Northern Oil and Gas’ Utica deal marks the entry of the non-op E&P in the shale play while it’s Delaware Basin acquisition extends its footprint in the Permian.
Vital Energy Again Ups Interest in Acquired Permian Assets
2024-02-06 - Vital Energy added even more working interests in Permian Basin assets acquired from Henry Energy LP last year at a purchase price discounted versus recent deals, an analyst said.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.
DXP Enterprises Buys Water Service Company Kappe Associates
2024-02-06 - DXP Enterprise’s purchase of Kappe, a water and wastewater company, adds scale to DXP’s national water management profile.
Tellurian Exploring Sale of Upstream Haynesville Shale Assets
2024-02-06 - Tellurian, which in November raised doubts about its ability to continue as a going concern, said cash from a divestiture would be used to pay off debt and finance the company’s Driftwood LNG project.