Colorado's Oil and Gas Task Force Proposes 9 Recommendations to Balance Local Concerns and Industry Needs
Colorado Governor John Hickenlooper established the Oil and Gas Task Force to ease tensions surrounding a November ballot. After five months, the task force proposed 9 recommendations to address community concerns about shale gas and tight oil development in the United States. Notably, the task force's creation led to the withdrawal of several controversial initiatives, including a 2,000 foot setback requirement and an environmental bill of rights addition to the state constitution.
The task force's recommendations aim to balance local concerns with industry needs. They include adding state well inspectors to assist local governments, improving information flows to the public, reducing truck traffic, and providing companies with regulatory assistance. Additionally, the task force suggested creating state review authority for large-scale operations. Economists support these local regulations, viewing them as a way to manage externalities and transaction costs.
The task force's work also led to the withdrawal of industry-supported measures, such as withholding oil and gas revenues and requiring fiscal impact analysis. However, supporters of local authority continue to advocate for more control over oil and gas siting and activities. Revenue distribution discussions often overlook direct ties to local impacts, with severance taxes going to states and general revenue sharing.
The Oil and Gas Task Force's recommendations offer a balanced approach to managing shale gas and tight oil development in the United States. By addressing local concerns and providing regulatory assistance, the task force aims to reduce tensions and promote responsible development. The withdrawn initiatives and ongoing advocacy for local authority reflect the evolving landscape of oil and gas regulation in the state.
