Gov. Bill Ritter is calling for a study of hydraulic fracturing in lieu of immediate federal legislation that he says could result in a potentially intrusive regulatory program for the oil and gas industry.
However, despite comments suggesting otherwise by Ritter, a spokesman for U.S. Rep. Diana DeGette, D-Denver, says she is not backing off trying to get the legislation passed.
The legislation would subject hydraulic fracturing to the federal Safe Drinking Water Act and require disclosure of chemicals used in the practice.
Fracturing involves sending pressurized fluids down wells to crack open rock formations and increase natural gas flow. It is essential to gas development in places such as western Colorado.
Advocates of the legislation say fracturing could be harming drinking water. The industry says the practice is well regulated by states, and that there have been no documented cases of it contaminating drinking water.
In comments delivered at a Colorado Oil & Gas Association convention in Denver on Thursday, Ritter indicated he thought that bill was premature and possibly unwarranted.
“I don’t for a moment discount the concerns of those who worry about protection of drinking water supplies. But I also believe that we have to understand the problems and the risks before we act,” he said.
Colorado’s new oil and gas rules, which were sought by Ritter, include a requirement for companies to maintain an inventory of fracturing substances and make it available upon request by the state. He said he talked to DeGette about Colorado’s effort “and what her amendment was likely to do in terms of trying to have a one-size-fits-all approach.”
“We believe we addressed it,” Ritter said. “The states should address this issue one state at a time and she agreed at that time to go instead to something that would be more in the way of a study instead of an amendment that would prescribe a certain way of every state having to put in place these rules. I thank the congresswoman for having done that.”
But DeGette spokesman Kristofer Eisenla said that although she agreed with Ritter that more data is needed about hydraulic fracturing, she’s moving forward with her bill.
“I do know they had a very good conversation. She understands his concerns, but this is how she’s proceeding,” he said.
Asked to clarify things, Ritter spokesman Evan Dreyer said in a statement: “This legislation won’t be heard for months and months, so undertaking a study now is the right thing to do because a study will likely be done before the legislation would even come up for hearing. (DeGette) just wants to keep all options available, and that’s in keeping with what she and the governor talked about and agreed upon.”
Ritter drew heavy industry criticism for seeking new oil and gas rules designed to produce more balance between energy development and protection of the public, wildlife and the environment. Although drilling activity has fallen sharply nationally because of dropping natural gas prices, energy companies say the new rules helped exacerbate the problem in Colorado.
However, Ritter has undertaken numerous recent efforts to help boost the industry, and he outlined them in his speech Thursday. They include helping promote expansion of pipeline capacity to out-of-state markets, seeking funding for use of compressed natural gas in vehicles, encouraging use of natural gas by utilities and opposing a proposal to repeal an industry federal tax deduction.
Ritter said natural gas isn’t just a transition fuel to what he calls his New Energy Economy, but a permanent part of it. He said the fuel is important to addressing climate change, reducing energy dependence and increasing national security.
He told industry representatives Thursday, “Natural gas is a vital part of our strategy to build a strong economic future for Colorado, and I want to work as a close-knit team to get us there.”
Nate Strauch of the Colorado Oil & Gas Association said that despite the industry’s differences with Ritter over the new rules, it’s looking forward now.
“Certainly we were very pleased to hear what the governor had to say about Colorado’s clean-burning natural gas,” he said.
As for the fracturing legislation, “We’d certainly hope that Congresswoman DeGette heeds the governor’s advice. … Certainly we believe it’s an unnecessary bill and feel very happy to hear that the governor feels the same.”
http://www.gjsentinel.com/hp/content/news/stories/2009/07/09/071009_1a_Ritter_fracing.html
