April 7 Colorado Energy Cheat Sheet: Hickenlooper calls CDPHE refocusing away from CPP a ’shell game’, unloads on EPA ozone rule; ‘carbon tax’ defeated in Carbondale
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, New Energy Economy, renewable energy
Less than two weeks after Gov. John Hickenlooper told Colorado Public Radio “we don’t care what the Supreme Court says about the Clean Power Plan”, calling for continued planning for the Environmental Protection Agency’s embattled rule currently under a stay issued by the U.S. Supreme Court, the Democrat initially appeared to be walking back his initial disregard for the country’s highest judicial body:
Gov. John Hickenlooper said he’s willing to temporarily halt state work on the Obama administration’s Clean Power Plan if that would defuse an effort to strip funding from the agency developing the plan.
“I’m happy to have them stop working on it if that’s a problem, if that becomes a partisan issue,” Hickenlooper told a CPR reporter after a lunch hosted by the American Petroleum Institute.
But the easing on Hickenlooper’s view of the work being done by the Colorado Department of Public Health and Environment–dismissive of any SCOTUS intervention via a stay–was itself walked back, as he at first acknowledged that the state could work on its already existing regulatory mandates to achieve similar goals to the Clean Power Plan, but said that any such maneuver would be nothing more than a “shell game”:
“We’re doing the same work anyway,” said Hickenlooper. “I don’t think it would hurt our efforts if we were to reallocate some of that time in other directions. I mean, in the end, we’re going to get to the same place.”
Hickenlooper said state policy and laws, including the Clean Air, Clean Jobs Act passed in 2010, already require Colorado to reduce carbon emissions from coal fired power plants.
“Our goals were very aggressive goals, and they are not the same, but they are very similar to what the Clean Power Plan wants,” he said at the gathering.
The governor clarified his comments Wednesday, dismissing the idea that suspending work on the Clean Power Plan would have much real world impact on the state’s clean air efforts.
“I look at the whole thing as ridiculous, to be perfectly blunt,” Hickenlooper told reporters at a regular press gathering. “It’s like a shell game of who’s doing which work. We’re working toward clean air, that’s what the state’s doing, that’s what people want us to do. We can get into … semantical battles over this thing, but it’s pretty straightforward.”
When it comes to Hickenlooper’s pronouncements on any number of issues, including this one, it’s usually never “pretty straightforward.”
Hickenlooper, just days ago, attempted to cast a non-partisan tenor to the debate over the Clean Power Plan:
Gov. John Hickenlooper also defended the new air quality rules at an event hosted by the Colorado Petroleum Institute.
“Clean air is too important to Colorado to become a partisan issue,” he said. “I am convinced as much as I ever have been that this is in the self-interest of the state.”
Jack Gerard, the head of the American Petroleum Institute, disagreed with Hickenlooper’s assessment.
“We look at the Clean Power Plan as it’s unnecessary to regulate as trying to pick favorite energy forums,” Gerard said.
Hickenlooper’s soft spot for the Clean Power Plan did not hold him back from being critical of the EPA’s ozone rule, which he said risked the “possibility that there will be penalties eventually that will come from lack of compliance.” He also blasted a Democrat bill that would allow for more lawsuits over damage caused by earthquakes that allege a connection to oil and gas development, as well as a ballot measure that would create a 2500 foot setback, saying that it would deprive mineral rights owners of their property–a taking that could cost billions.
Energy in Depth has more on Hickenlooper’s statement on the ballot initiative that would create 2500 foot setbacks:
Colorado’s Democratic governor, John Hickenlooper, is speaking out against an initiative backed by ‘ban-fracking’ activists to dramatically increase oil and gas setback distances in the state. The comments came at an event yesterday sponsored by the American Petroleum Institute (API) and Colorado Petroleum Council (CPC) featuring the governor and API President and CEO Jack Gerard.
When asked about the ballot initiative pushed by activists with strong ties to national ban fracking organizations, that would increase oil and gas setback distances to 2500 feet, Hickenlooper strongly denounced the effort. As reported by CBS Denver:
“That would be considered a taking, and I think the state would probably be judged responsible, and I think the cost could be in the many billions of dollars. I think that’s a risk that most Coloradans — if it was laid out for them in a sense they could clearly understand — would not support it.”
Hickenlooper’s assertion that the initiative could cost the state billions is backed up by a recent economic assessment from the Business Research Division at University of Colorado Leeds School of Business. Economists found that a 2,000 foot setback distance could cost the state up to $11 billion in lost GDP a year and 62,000 jobs. The 2,000 foot setback economists looked at is more modest than the 2,500 foot distance that activists are attempting to put before state voters this year.
Those mineral rights are worth billions of dollars to Coloradans and fill the coffers of counties and other entities annually to the tune of millions in property and severance taxes.
A thinly disguised attempt to ban fracking under the ruse of “local control” failed in the Colorado House on Monday:
Activist groups have not been shy about the fact that they see “local control” as a de facto ban on fracking. On a recent call with supporters, Tricia Olson of Coloradans Resisting Extreme Energy Development (CREED), the group behind a series of ballot initiatives targeting energy development, even told the group that their “local control” measure is basically a “full-fledged” fracking ban:
“This version however has one significant difference, what we would call a floor, not a ceiling language. To lift its points, it authorizes local governments to pass regulations — prohibit, limit or impose moratoriums on oil and gas development. Of course the word prohibit means ban. This allows for a broad range of local government options within their jurisdictions from local actions to a full-fledged ban.” (23:14-23:44)
EID detailed the “local control” proponents’ misinformation campaign to push the measure. Two Democrats joined with Republicans to kill the bill on the floor of the Colorado House.
And former Gov. Bill Ritter–you know–of the “New Energy Economy” and a paragon of all things green (dubbed the “Greenest Governor”), rejected a national ban on fracking:
“If you passed a national ban, this industry would go away and it would be harder for us to get to our place of transition on clean energy and climate.”
“I believe that with a good set of regulations, with good enforcement, with good compliance on the part of the industry, it [fracking for natural gas] can be a part of a clean energy future,” Ritter said.
Ritter and Hickenlooper, both Democrats, face opposition from their far-left counterparts when it comes to these types of calls for bans on responsible oil and gas development:
“We won’t transform the energy supplies of our nation overnight; there’s been rapid growth in solar and wind, but we’re a long way from saying we can walk away from hydrocarbons and not do significant damage to our economy,” Hickenlooper said.
“The number of people in Colorado who want to ban hydrocarbons is probably a small minority,” he said.
Gerard said the oil and gas sector will continue to play a significant role going forward, even through energy efficiency efforts focused on the automotive sector.
“When you look to make cars more energy efficient, you make them lighter with plastics brought to you by petroleum, you make the windows more efficient [with films] brought to you by petroleum, the gadgets you play with in your hand every day also come from petroleum,” he said.
As we can see, it’s not just about fracking, or burning oil and gas for electricity, as API’s president pointed out.
Hickenlooper continues to express deep concern about the EPA’s ozone rule, reducing the target for acceptable ground level ozone from 75 ppb to 70 ppb, saying a suspension of the rule “would be a great idea”:
Transcript of Gov. John Hickenlooper’s comments on the Environmental Protection Agency’s ozone rule delivered to the Colorado Petroleum Council and the American Petroleum Institute on March 31, 2016 via the Center for Regulatory Solutions:
So I think it would be a great idea if they suspended the standard. I mean, just with the background [ozone], if you’re not going to be able to conform to a standard like this, you are leaving the risk or the possibility that there will be penalties of one sort or another that come from your lack of compliance. Obviously, no different than any business, states want to have as much predictability as possible, and I think if they suspend the standards, it’s not going to slow us down from continuing to try and make our air cleaner. …
You know, we’re a mile high. Air quality issues affect us more directly than they do at lower elevations. So we’re going to keep pushing it, we’re not going to back off, we’re going to continue to improve the air quality in the state every year if I have anything to say about it, but at the same time, those standards, you know, to be punitive when you’re working as hard as you can … to get cleaner air as rapidly as you can, it seems like it’s not the most constructive stance.
A bi-partisan chorus of opposition to the ozone rule has emerged, and Independence Institute energy policy analyst Simon Lomax notes that the rhetoric surrounding the ozone rule, and in particular, its potential impact on public health, is filled with fearmongering from the “bad-air chorus.”
Lomax testified before CDPHE last month on the ozone rule:
The nature of the problem is clear. The EPA’s new ozone standard goes too far. It will throw large areas of the state into long-term violation of federal law. Violation will impose new restrictions on economic growth and jeopardize badly needed investments in transportation infrastructure.
And because the stringent new standard approaches background ozone levels, which state regulators are powerless to control, there will be little, if any, environmental benefit in return. For months, stakeholders from across government, across the political spectrum and across the economy have stated and restated the problem. But admiring the complexity of the problem won’t solve it.
Notably, the ozone rule would attack the “bridge” fuel, namely natural gas, that the earlier versions of the Clean Power Plan envisaged would get the nation from a fossil fuel fleet to one primarily composed of renewables. Between the attempts to ban fracking, the leap made by the final Clean Power Plan that pushes almost exclusively for renewables, and the ozone rule’s affect on oil and gas development (emissions are a key component to create ground level ozone), the stage has been set for an onslaught of anti-oil and gas regulation that would devastate Colorado’s economy.
Colorado faces geographical and topographical challenges with any ground-level ozone measurements due to elevated background ozone levels, as Hickenlooper pointed out. Anthropogenic emissions in other states and Mexico and as far away as Asia (China), wildfires, atmospheric intrusions, and our elevation combine to bring levels of background ozone to the state that can’t simply be regulated away.
From the “excellent news” category–carbon tax gets shot down in Carbondale, 61 to 39 percent:
For the so called “carbon tax,” 1,022 voters cast ballots against, while only 637 Carbondale residents voted in favor.
And with more than $3,000 in contributions, the committee supporting the carbon tax raised and spent more money than any single candidate for the board of trustees.
The climate action tax proposed to increase residents’ gas and electric bills in an attempt to promote clean energy projects and reduce energy usage in keeping with the town’s 2020 energy goals.
The climate tax would have been applied uniformly across town, with one set of rates for residents and another for business owners.
Supporters of the carbon tax had estimated that the average household’s utility bills would go up $5 to $7, and the average business would see a $10 to $30 increase.
This carbon/climate action tax would have just added more misery to Colorado’s already skyrocketing electricity rates.
February 18 Colorado Energy Cheat Sheet: Costly Clean Power Plan event video; EPA Animas River spill gets Congressional scrutiny; fracking ban off 2016 ballot
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, regulations
The Independence Institute and the Competitive Enterprise Institute joined forces on February 16 in Denver to provide an update on the Environmental Protection Agency’s costly Clean Power Plan, including where the rule stands with regard to the U.S. Supreme Court stay issued earlier in February, as well as the impact of the death of Associate Justice Antonin Scalia on the ongoing legal proceedings.
The Environmental Protection Agency’s Clean Power Plan rules will slow the Colorado economy, raise electricity rates and barely make a dent in carbon dioxide emissions, opponents and experts on the plan told an audience at the Independence Institute on Tuesday.
“Clean power alone will add billions if not tens of billions of costs to individual consumers and the American economy,” said Gregory Conko, executive director of the Competitive Enterprise Institute.
Myron Ebell, CEI’s director of the Center for Energy and Enviroment released a state-by-state comparison showing Colorado’s 9.49 cents per kilowatt hour is lower than the national average of 10.11 cents. But he said California, which has extensive power plant regulation and has consumers paying 15.11 cents, is a warning for the rest of the country if the Clean Power Plan is instituted.
“This is about keeping the lights on for America’s economy, for Colorado’s economy,” he said, adding any additional costs for energy will take away consumer purchasing power for other goods.
Keeping the lights on and the cost of electricity–the energy that drives our economy.
What happens when costs of electricity go up? It hurts the average Coloradan; the ratepayers and taxpayers already pressured by an economy that has never fully recovered from the recession that have seen their electricity bills skyrocket 63 percent between 2001 and 2014, and Colorado overall, across all sectors from residential to commercial, industrial, and transportation, of 67 percent:
Those cost increases are being felt, not the least by folks in southern Colorado.
Regulations impact economies, and officials at a hearing in New Mexico on proposed Bureau of Land Management rules got an earful:
“The implementation of these proposed rules will kill revenue to state and federal government,” said Farmington Mayor Tommy Roberts. “And it will kill jobs at the local level.”
To find the source of Farmington and San Juan County, New Mexico, residents’ frustration, one doesn’t need to look far. Last week, the Bureau of Labor Statistics released a report that showed the area ranked first in the nation in the rate of unemployment growth – from 5.2 percent in 2014 to 7.3 percent in 2015. Since 2009, the region has lost an estimated 6,000 jobs, mainly as a result of a declining oil and gas industry.
“I’ve seen the affects in my community,” said Bloomfield Mayor Scott Eckstein. “This will be a knock-out blow to an already-crippled community.”
In January, the BLM proposed an update to 30-year old regulations on methane and natural gas leaks on BLM and Native American lands. BLM officials estimate the tougher regulations would reduce emissions of the potent methane by about 169,00 tons per year, and decrease volatile organic compound releases by 410,000 tons per year. That reduction would be in keeping with an earlier Obama Administration goal of reducing methane emissions by 45 percent from 2012 levels by 2015.
In March of last year, I had the privilege of traveling to northwest Colorado to film AEA’s “Eye of the Storm” video which chronicled the threats radical environment activists were making against the communities of Craig and Meeker. Thankfully, with your help, we were able to convince the federal government that the Colowyo mine should stay open. Unfortunately, the mine and these communities are under threat yet again.
While in Craig and Meeker, Colorado, I was blown away by the people that I met. Every person knew just how important energy is to their community. From the mayor to the hotel concierge, every single person I spoke with had a personal story about how the energy their community produces and responsibly utilizes makes their lives better. And as many miners pointed out to me, their work provides affordable, reliable energy to the entire region.
Visiting the Colowyo mine was a surreal experience. At first, you drive up a winding dirt road through checkpoints, until you finally reach the mining area. Colowyo is a surface mine situated between the towns of Craig and Meeker. Cresting the ridge and looking down on the pit, you see these bright yellow trucks scurrying around with dirt and coal, but from that distance you can’t tell how massive they are. Realizing the immense scale of this project and the work these men and women do every day is profound—and in a way, beautiful.
One real surprise to me is that soon after stepping out of the truck at the mine, I noticed wildlife. You do not expect to visit a mine and see elk, antelope, deer, and even an owl, but I saw all four within the first hour of our time there. The staff pointed with pride to the areas that had been previously been mined, but were now restored and how well the land and wildlife were thriving
The literal ban on fracking is out, but 10 more state constitutional amendments remain, including a “right to a healthy environment”:
“We’re going to pull the one that’s the ban, not the other ones,” Dyke told the Denver Business Journal on Friday. “We’re down to 10, but we still have plenty to work with.”
But while a proposal to ban fracking statewide may be off the table, the other initiatives backed by CREED are just as bad, said Karen Crummy, a spokeswoman for Protecting Colorado’s Environment, Economy and Energy Independence, an issues committee formed by the industry in 2014 to oppose anti-fracking initiatives.
“They withdrew it (the fracking ban proposal) because they know the vast majority of Coloradans support responsible oil and natural gas development and are against banning an entire industry,” Crummy said via email.
“However, their remaining proposals are just as irresponsible and extreme because they would still effectively ban development,” she said.
The other amendments, calling for 4,000 foot setbacks away from “special concern” areas along with the healthy environment proposal remain de facto fracking bans, and in most cases, include all oil and gas development not just the controversial hydraulic fracturing method.
For example, proposal #67:
Section 1. Purposes and findings. THE PEOPLE OF THE STATE OF COLORADO FIND AND DECLARE:
(a) THAT OIL AND GAS DEVELOPMENT, INCLUDING BUT NOT LIMITED TO THE USE OF HYDRAULIC FRACTURING, HAS DETRIMENTAL IMPACTS ON PUBLIC HEALTH, SAFETY, WELFARE, AND THE ENVIRONMENT;
(b) THAT SUCH IMPACTS ARE REDUCED BY LOCATING OIL AND GAS DEVELOPMENT FACILITIES AWAY FROM OCCUPIED STRUCTURES AND AREAS OF SPECIAL CONCERN; AND
(c) THAT TO PRESERVE PUBLIC HEALTH, SAFETY, WELFARE, AND THE ENVIRONMENT, THE PEOPLE DESIRE TO ESTABLISH A SETBACK REQUIRING ALL NEW OIL AND GAS DEVELOPMENT FACILITIES IN THE STATE OF COLORADO TO BE LOCATED AWAY FROM OCCUPIED STRUCTURES, INCLUDING HOMES, SCHOOLS AND HOSPITALS; AS WELL AS AREAS OF SPECIAL CONCERN.
Section 2. Definitions.
(a) FOR PURPOSES OF THIS ARTICLE, “OIL AND GAS DEVELOPMENT” MEANS EXPLORATION FOR AND DRILLING, PRODUCTION, AND PROCESSING OF OIL, GAS, OTHER GASEOUS AND LIQUID HYDROCARBONS, AND CARBON DIOXIDE, AS WELL AS THE TREATMENT AND DISPOSAL OF WASTE ASSOCIATED WITH SUCH EXPLORATION, DRILLING, PRODUCTION, AND PROCESSING. “OIL AND GAS DEVELOPMENT” INCLUDES, BUT IS NOT LIMITED TO, HYDRAULIC FRACTURING AND ASSOCIATED COMPONENTS.
Judge the activists by their words–they want bans or regulations so onerous as to yield the same results. This isn’t just about a fracking ban, although the most explicit amendment calling for a statewide ban has just been pulled. Make no mistake–this is about the wholesale removal of responsible natural resource extraction that gives Coloradans affordable and reliable energy.
Windsor High School junior Kamille Hocking worried a dozen oil wells on her family’s 132-acre Colorado homestead might sicken them. Then, Rebecca Johnson, an Anadarko Petroleum Corp. engineer, used a blender in her chemistry class to show the interaction of swirling frack sand, city water and friction reducer.
“We heard a lot of stories about how it could get into the water and pollute the land,” said Hocking, who is 16. “I’m going to tell my parents that fracking fluid only makes cracks in the rock the size of a hair that the sand gets into and holds open.”
Facing 10 possible ballot initiatives restricting fracking, Anadarko has deployed 160 landmen, geologists and engineers such as Johnson to Rotary clubs, high schools and mothers groups. They demonstrate how drilling works and try to convince people that the technique and the accompanying chemicals and geological effects don’t harm the environment or public health.
The wide-ranging outreach in Colorado, the nation’s seventh-biggest oil producer and sixth-largest gas provider, represents a policy shift. The energy industry that has been known for insisting on confidentiality from employees about fracking practices now allows geologists, landmen and colleagues in 40 Anadarko job categories to divulge details of what they do to their churches, neighbors and golfing buddies.
Johnson, who’s personal motto is “faith, family and fracking,” told students in Windsor that she’s supervised 1,000 fracks in the course of her 24-year career without harm to the environment.
“I live right here,” Johnson said when she visited the school 60 miles (97 kilometers) north of Denver this month. “My family is here. My mother-in-law graduated from your high school. She turns 80 this year. We would know if something’s wrong.”
Real facts from the folks who live and work in the communities in question.
More rulemaking on the way, regardless of which amendments make the 2016 ballot:
Fresh off some recent rulemaking, Colorado’s oil and gas regulatory agency is turning its attention to one of the most persistent complaints from people living near extraction operations: noise.
The Colorado Oil and Gas Conservation Commission is in the process of gathering technical data from state health experts, industry officials and third party consultants regarding noise, its health impacts and mitigation measures, said Dave Kulmann, COGCC deputy director.
Since discussions are still in the early stages, no date is set for when formal rulemaking might start, although it will likely be some time late in 2016. Kulmann said the agency wants to gather the technical data before speculating on which specific aspects of the current regulations might be beefed up, but it is clear, he said, that noise is an issue.
In 2015, after implementing a new complaint process on Jan. 9 of that year, the COGCC received a total of 330 complaints on issues ranging from odors to traffic problems to property damage, according to a detailed complaint report compiled by COGCC. Of the total complaints, 123 were due to noise.
The Gold King Mine and Animas River spill–and the EPA–are still under scrutiny, even if the prominent news coverage has waned:
If a private company dumped three million gallons of toxic sludge into Colorado waterways, we’d be flooded with daily media updates for months. Yet the press has by now forgotten the disaster unleashed in August when EPA contractors punctured an abandoned mine. New evidence suggests the government isn’t coming clean about what happened.
EPA planned its disastrous investigation of the mine for years, not that you’d know: The agency assumed a layout of the area that contradicted public records, including the remarkable conclusion that a drain ran near the ceiling of the mine’s entrance. This led EPA to believe that water backed up only about half the tunnel. The agency didn’t test the water pressure, a precaution that would have prevented the gusher. EPA hasn’t explained this decision, and emails obtained by the committee show the on-site coordinator knew there was “some pressure.”
The crew made more bad decisions than characters in a horror movie. About a week before the blowout, the on-site coordinator went on vacation and left instructions that his replacement seems to have ditched. For example: Don’t dig toward the tunnel floor unless you have a pump handy. The crew pressed downward without a pump and intentionally unearthed the mine’s plug. “What exactly they expected to happen remains unclear,” the report concludes. The Interior Department now euphemistically calls this series of events an “excavation induced failure.”
EPA is so far suggesting that no one committed crimes, and maybe so. But consider: EPA cranked out a report three weeks after the disaster and said the Interior Department would conduct an independent review that the Army Corps of Engineers would sign off on. EPA testified to the committee that Interior would look for wrongdoing, though Interior said the department was only offering technical support.
February 4 Colorado Energy Cheat Sheet: Local governments face production-related revenue downturn; more red tape sought for resource development; Wyoming’s cautionary tale
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, New Energy Economy, PUC, regulations, solar energy, wind energy
Pushing for bans on fracking or other measures to limit responsible natural resource development will only exacerbate problems at the local level, putting education, infrastructure, and other critical services at risk, on top of the drop noted here in the Denver Post due to commodity prices tanking:
Because 97 percent of Platte Valley’s budget comes from taxes paid on mineral production and equipment — a property tax known as ad valorem — McClain said his district could be looking at a budget reduction between $300,000 and nearly $1 million next school year.
How that plays out in terms of potential cuts or program impacts is yet to be seen, he said.
“You’re always concerned about your folks,” McClain said. “You worry about it taking the forward momentum and positivity out.”
It’s not just schools that are suffering. Municipal budgets, local businesses and even hospitals in mineral-rich pockets of Colorado are watching closely to see how long prices remain depressed.
Combine that with a 72.3 percent drop in severance tax revenue–down to $77.6 million this year compared with $280 million last fiscal year–and you’ll get, in the words of the Post, “the state’s direct distributions of those proceeds to cities, counties, towns and schools will be reduced from a little more than $40 million in 2015 to just $11.9 million this year.”
Nearly 75 percent drop, just from falling oil prices. Put on top of that more red tape, or eliminate the practice altogether, and eventually those figures will head toward zero (no production = no tax revenue).
This is what is at stake when it comes to pushing back against the repetitively dubbed “common sense” regulation that threatens a rather large portion of the state’s economy.
BRIGHTON — Adams County leaders made it clear Wednesday morning that they won’t support a 10-month ban on new oil and gas activity in urban parts of the county after hearing nearly eight hours of testimony that began Tuesday night.
Commissioner Chaz Tedesco said he wasn’t comfortable imposing a moratorium on an industry that has proved critical to Adams County’s economy. He said he supported hiring an attorney that can make sure the county is making the best deals with industry as possible.
“I want to make the right decision with the right information,” Tedesco said.
His colleague, Erik Hansen, said oil and gas workers are not the villains their opponents make them out to be and that the county has a good site-by-site evaluation system already in place.
“You know what? The folks who work in the industry care about their kids too,” he said.
Those families–the workers and the kids–live in the communities. It may be stunning to anti-energy activists, but those developing and producing the energy that drives your car (gas OR electric), heats and cools your home, keeps your iPads and laptops running, and generally produces an incredible standard of living for you might live right next door. *shudder*
Good on Adams County for rejecting hyperbolic, paranoid nonsense.
And not to be outdone by the anti-fracking ballot measures proposed at the state level, Colorado legislators are looking to add more red tape, because enough is never enough, and the Colorado Oil and Gas Conservation Commission’s rulemaking last month did not address those concerns, say energy development opponents:
Democrats in the Colorado House, where that party has a majority, are expected to introduce two measures later this session, one making it easier for surface property owners to collect damages from mineral rights owners if their properties are damaged, and a second measure to give local governments more regulatory authority over drilling within their jurisdictions.
House Speaker Dickey Lee Hullinghorst, D-Boulder, said that second idea is something she highly supports.
“I think this bill would be a very reasonable approach,” she said. “I have always felt that’s where you have to get at, the conflict in property rights.”
Regardless of those measures, the backers of several proposed ballot measures dealing with fracking are still going ahead with their ideas.
Those proponents, who could not be reached for comment, have said they were not satisfied with new regulations approved by the Colorado Oil and Gas Conservation Commission last week. They said those new rules, the result of a special task force established by Gov. John Hickenlooper as a compromise to keep the proposals off the ballot in 2014, didn’t go far enough.
Rest assured, short of the outright ban, anti-energy folks will not back off even if all of the proposed measures are put into place. New development might be blocked, but continuing extraction would still be a target. They will never be satisfied, until all development is 100 percent eliminated.
The Sierra Club Rocky Mountain Chapter would like the entire state of Colorado to be 100% renewable, beginning with Denver. Becky English, the executive committee chair for the Sierra Club, responded to an email about a sustainability summit scheduled for early December in Denver:
I would have liked to share that the Sierra Club national board has declared a goal of powering the electric sector by 100% renewable energy nationwide, and that the Rocky Mountain Chapter has adopted the goal for Colorado. I will approach you offline about how best to work toward this goal in Denver.
Stakeholder meetings or dog-and-pony shows supporting the Clean Power Plan and the state’s agencies dedicated to enforcing the rule (Colorado Department of Public Health and Environment)–the Gazette certainly has an opinion:
Reality struck when the Colorado Department of Public Health and Environment took the show to Brush, a rural eastern plains town where people work hard to earn a buck.
Four of five panel members were cheerleaders for the president’s plan, which has the full support of Gov. John Hickenlooper. Panelist Kent Singer, an attorney and executive director of the Colorado Rural Electric Association, offered the panel’s only balance. He said public utilities and electric cooperatives are supposed to provide reliable energy at a price households, farms, ranches and businesses can afford. The president’s plan, he worries, would impose hardships.
Audience participants crashed the party to explain how eastern Coloradans have invested in hundreds of wind turbines that won’t count toward the proposed standards, as the plan would disqualify assets built before 2013.
State Sen. Jerry Sonnenberg told state officials he represents 21,000 square miles that host more wind turbines than the rest of the state combined, and most would not qualify. He worries about constituents having to fund investments they already made in vain.
“We can look at the lower middle class, the working poor, the poor and the elderly and see how they would be impacted, and how it would make it even tougher for them,” Sonnenberg said. A farmer who spends $10,000 on energy to irrigate a field would take a big hit, the senator explained, at a time when some crop prices have plunged.
State health officials need to get serious about their presentation for the remaining “All Stakeholder” meetings in Pueblo and Craig. This plan poses serious consequences for those who cannot afford haphazard and experimental efforts to control the climate. We need a balance of experts presenting a variety of views, not another panel stacked with support for a political agenda.
Having attended one of the first CDPHE “stakeholder” events back in September 2015, I can assure the reader that comments in favor of the Clean Power Plan ran about 15 to 1, with plenty of others from industry to rural electric co-ops basically pleading for the agency to implement the rule as mercifully as possible.
It’s clear from the first few events that the stakeholder process is nothing more than a three ring circus for advocates like activists and renewable energy businesses to show up and applaud the agency, giving it a rather unnecessary shot in the arm of confidence. Meanwhile, the folks who actually bear the brunt of the rule itself, whether it’s the ratepayer who pays for the energy and the guaranteed profit for the utilities (all stranded assets like coal plants having to be replaced with more expensive energy alternatives), the taxpayer who is on the hook for subsidizing unaffordable and unreliable energy alternatives, the farmers and investors who were sold a bill of goods in years past of being part of a “New Energy Economy” by previous politicians only to be passed over and not counted as renewables anyway . . . the list goes on and on.
The CDPHE process is really illustrative of quite a few economic concepts, from crony capitalism to captive regulation, concentrated benefits vs. dispersed costs, and government intrusion in the free market to pick energy winners and losers. In this case, the winners repeatedly show up and applaud. The potential losers are taken out of the process, and must rely on lawsuits like the multi-state challenge joined by Attorney General Cynthia Coffman, or the much more distant hope of an administrative change in policy due to a shift in the political climate at the Federal level.
Turning to updates on the Gold King Mine spill:
DENVER – Southwest Colorado feels forgotten in the aftermath of the Gold King Mine spill, state lawmakers heard Wednesday.
Rep. Don Coram, R-Montrose, expressed the sentiment to a House committee just before the panel killed his legislation that would have allowed the state to file lawsuits against the federal government on behalf of individuals impacted by the spill.
Coram was especially irked by the fact that the measure was assigned to the House State, Veterans and Military Affairs Committee, a committee sometimes used by the majority party to kill legislation deemed unpopular by leadership. Democrats control the House.
The bill died on a 5-4 party-line vote.
“If this (Gold King spill) had happened in a metropolitan area, we would be doing something. But the fact is, in rural Southwest Colorado, we … have the opinion that the Front Range does not care who suffers in rural Colorado,” Coram told the committee.
And while state efforts to provide relief failed, Congressional inquiries into the EPA-caused spill continue apace, with calls for transparency and clarification over the role of the EPA in a report from the Department of the Interior that was supposed to be impartial and independent:
A key report on the Gold King Mine disaster, which poisoned drinking water for three states and the Navajo Nation, is now being questioned by congressional committee and subcommittee chairmen.
New evidence may “contradict” Environmental Protection Agency Administrator (EPA) Gina McCarthy’s “repeated assertions” to the Senate Committee on Environment and Public Works (EPW) “that EPA had reviewed only a [Department of the Interior] press release and had no role in DOI’s independent review” of the Gold King Mine blowout, according to a Wednesday letter to McCarthy.
“Please clarify … that DOI did not have a conflict of interest, that its review would be independent and that EPA officials had no involvement in DOI’s review,” committee Chairman Jim Inhofe and Superfund, Waste Management and Regulatory Oversight Subcommittee Chairman M. Michael Rounds wrote.
The DOI report detailed that the EPA-caused Gold King Mine spill, which sent three million gallons of wastewater into Colorado’s Animas River, was preventable. The report stated, however, events at the site before and after the incident were beyond the investigation’s scope – even though such details were sought by the EPW committee.
We’ll keep an eye on this development.
News from our Wyoming neighbors, a cautionary tale of how the current administration’s push to kill coal will likely kill local communities too:
President Barack Obama’s administration has ordered a three-year moratorium on sales of federal coal reserves, and it’s putting a rare mood on folks in Gillette, a ranching-turned-energy town of 32,000: pessimism.
“Most of the time it comes back. This time, I don’t know,” said Bobbie Garcia, watching her daughter summit a two-story climbing structure at the town’s $53 million recreation center largely built with coal money.
Until recently, the Powder River Basin of Wyoming and Montana remained a rare bright spot for the industry. Even as Appalachian mines shut down and cheap natural gas started crowding out coal as a power plant fuel, economies of scale kept the region rumbling.
Massive strip mines sprawled across tens of thousands of acres, much of it in the Thunder Basin National Grassland, produce roughly 40 percent of the nation’s supply of the fuel.
For Gillette and other communities, that means more than 7,000 mining industry jobs. And not just fly-by-night, roughneck gigs, but the sort that sustain families year after year, pointed out Michael Von Flatern, a state senator who has lived in Gillette since the early 1970s.
The sort of jobs that are likely irreplaceable. Also, it’s no easy task replacing 40 percent of the country’s coal, considering that 23 percent of U.S. energy production still comes from that resource. Compare that to 0.5 percent for solar and 2 percent for wind, according to the Energy Information Administration through 2014 (the last full year).
If you want to know what’s headed for Colorado, look north. Or ask the folks in Moffat County about the Colowyo Mine situation from last year.
December 10 Colorado Energy Cheat Sheet: Fracking ban faces CO Supremes; fracktivist compares technology to slavery; House GOP calls Interior EPA spill report a “whitewash”
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, regulations, renewable energy, solar energy, wind energy
Yesterday, the Colorado Supreme Court heard arguments over Longmont’s fracking ban:
On Wednesday, the state’s highest court will consider Longmont’s voter-approved ban on hydraulic fracturing within city limits.
Longmont voters added the ban to the drilling method, also called fracking, to the City Charter in 2012, convinced that a city-negotiated set of regulations on oil and gas drilling didn’t go far enough.
Both the regulations and the ban brought lawsuits from the Colorado Oil and Gas Association, an industry trade group. The oil and gas regulations lawsuit was dismissed as part of a compromise brokered by Gov. John Hickenlooper before the 2014 election.
The suit on the charter ban, however, has progressed through district court and the Colorado Court of Appeals and is now before the Colorado Supreme Court.
The city has argued that the state allows for local control, that Longmont voters should be able prohibit a type of drilling in city limits.
It is not known when a ruling can be expected.
Speaking of local fracking bans, Colorado Peak Politics found this gem from “fractivist Maria Orms, head of North Metro Neighbors for Safe Energy, at an Adams County Communities for Drilling Accountability Now (ACCDAN) meeting”:
“If you accept anything like an MOU [memorandum of understanding], that’s your terms of surrender…signing an MOU is collusion with the oil and gas industry. We need to talk to our county commissioners and tell them not to agree to any of this.
“Apartheid was legal at one point. Would you agree with that? Slavery was legal. Didn’t make it right. Well, maybe that doesn’t apply here to an environmental issue, this is not right, do not agree to this.”
Adding more time and uncertainty to drilling operations in Colorado as a result of Gov. John Hickenlooper’s fracking task force recommendations has operators weighing risks and reconsidering Colorado operations:
“The risk [to operate] in Colorado has gone up because of this potential rule or potential application of this on a case-by-case basis,” Wonstolen said.
The COGCC on Monday held its third day of hearings on controversial proposed rules to implement two recommendations from Gov. John Hickenlooper’s oil and gas task force in February.
The recommendations, No. 17 and 20, focused on increasing the communications between local governments and energy companies about where new oil and gas wells would be located in and around neighborhoods. It also called for the impacts of those new wells to be mitigated through best management practices.
But where the proposed rules would be enforced, and how the impacts would be mitigated, has spawned a months-long battle that’s expected to drag into next year. Another day of hearings is expected to be scheduled in late January.
Oil and gas industry representatives said the COGCC’s rules go too far. Citizen groups and representatives from local governments said they don’t go far enough.
And one other recommendation from the Governor’s task force calling for a complaint line on oil and gas operations has begun collecting said complaints:
A new state-run program created to field and respond to health concerns related to oil and gas operations has started to receive complaints.
As of Thursday evening, the new Oil and Gas Health Information and Response Program had fielded 20 complaints, according to Dr. Daniel Vigil, who is heading the program within the Colorado Department of Public Health and Environment.
The program began Oct. 15, allowing people to file a health concern and access information. Information includes “unbiased” staff reviews of existing research on the health impacts related to oil and gas development, said Vigil.
In addition, a mobile air monitoring program is being designed and is expected to be completed in the spring.
The health response program, which Vigil said is the first of its kind in the country, was one of nine approved recommendations from a task force created by Gov. John Hickenlooper as part of a compromise to avoid multiple oil- and gas-related ballot issues in 2014.
It will remain to be seen how “unbiased” those review remain, and whether or not a concerted effort by anti-energy forces moves to overwhelm the complaint system in an effort to draw attention.
Carbondale is implementing government carbon fees based on energy consumption as state and federal subsidies for renewable energy disappear:
“Carbon fees harness market forces to encourage local investment in energy efficiency and renewable energy,” Michael Hassig, former Carbondale mayor, said in a prepared statement. “We have to take what steps we can, now, right here in our own community, to reduce fossil fuel consumption.”
In 2010, Carbondale set the goals of increasing energy efficiency by 20 percent; reducing petroleum consumption 25 percent; and obtaining 35 percent of energy from renewable sources all by 2020. These figures are measured off of a 2009 baseline.
One scenario calculates that by installing energy-saving measures in 1,200 homes and in 60 businesses, combined with doubling the amount of solar electric systems (or the equivalent of 800 kilowatts of power-generating capacity), Carbondale could meet its targets, according to CLEER’s website. These energy improvements could be achieved by investing $1.1 million per year over the next five years.
The Carbondale trustees adopted a resolution in 2014 that dedicates 20 percent of the town’s state severance tax and federal mineral lease revenues to help reach clean-energy goals. Traditionally, funding from federal and state government grants, the town’s general fund, the Renewable Energy Mitigation Program (generated through building fees in Pitkin County and Aspen) and utilities have been used toward energy efficiency.
But the federal and state grants have since dried up, necessitating another path forward to raise revenue.
Carbon “fees” are not a harnessing or channeling of voluntary market decisions, they are an example of government force, picking energy behavior winners and losers.
A battle over a Department of the Interior inspector general report on the Environmental Protection Agency’s Gold King Mine spill has prompted Republican calls that the effort was “whitewash” of EPA efforts and lacked independent review:
The accident prompted harsh criticism of the EPA for failing to take adequate precautions despite warnings a blowout could occur. Yet Interior Secretary Sally Jewell said a review by her agency showed the spill was “clearly unintentional.”
“I don’t believe there’s anything in there to suggest criminal activity,” Jewell testified during an appearance before the House Natural Resources Committee.
Republicans were dissatisfied. They pointed to earlier statements in which Jewell and other agency officials said the Interior review focused on technical mining issues — not the potential culpability of those involved in the spill.
Immediately after Wednesday’s hearing, committee Chairman Rob Bishop asked Congress’s non-partisan Government Accountability Office to investigate the Interior Department’s evaluation. The Utah Republican accused Jewell and other agency officials of stonewalling his repeated efforts to obtain documents relevant to the spill.
The clean up bill for the EPA spill is around $8 million, according to the 2015 “Wastebook” issued by Arizona Sen. Jeff Flake (R), and summarized here by Colorado Peak Politics:
An Orange River Runs Through It: The Animas River. Perhaps you’ve heard of this disaster? The EPA contaminated it, and then, denied responsibility. To date, the EPA has spent $8 million cleaning up its own mess, and that figure is expected to grow.
It wouldn’t be a Cheat Sheet without a Clean Power Plan update, so here’s one from the National Federation of Independent Business:
But NFIB believes that the Administration is once more overstepping with the Clean Power Plan. For one it imposes quotas on each state, mandating that they achieve targets for emission reductions—targets that, in some cases, are wholly unrealistic. The plan rewards states that have already taken action to reduce greenhouse gas emissions, but would penalize states that fail to meet their federally mandated reduction targets. To avoid those penalties the rule allows states that are missing their targets to enter into cap-and-trade compacts, which would require those states to essentially purchase credits (at great cost) from states that are meeting their targets. Thus the rule penalizes states that have chosen—for the same policy reasons as Congress—to reject such regulation of greenhouse gas emissions.
Accordingly, the rule raises serious federalism problems because the federal government cannot force the states to enact law that they do not wish to enact. But as we argue—first and foremost—there is a separation of powers problem with the EPA rewriting the Clean Air Act. Once again, we’re fighting in court to enforce the basic principle that only Congress can make law. And once more, we’re defending small businesses against extreme energy-rate hikes.
We are currently asking a federal court to issue an injunction preventing EPA from enforcing the rule against the states. Our hope is that we will ultimately strike-down the rule as another example of executive overreach. For further explanation as to how this rule will affect ordinary small business owners, check out Randi Thompson’s recent editorial in the Reno-Gazette Journal.
It’s trees vs. bugs in the forests near Colorado Springs, and the U.S. Forest Service is giving the nod to the bugs, according to this Gazette editorial:
If our plush green backdrop becomes an ugly brown wasteland, tourists will avoid us. Home and business values may drop. And, of course, dead trees greatly increase the likelihood of more deadly, costly forest fires.
Because of diligence by the governor and mayor, we could have a good chance of saving thousands of acres of trees. There is one big problem: The Obama administration’s U.S. Forest Service. Federal forest officials seem to think tree-killing bugs have a right to life.
Forest-managing entities working cooperatively on a contract to exterminate the bugs include: Colorado Parks and Wildlife, responsible for the 1,260-acre Cheyenne Mountain State Park; Colorado Springs Parks and Recreation, responsible for 2,132 acres of city-owned forest; NORAD, which manages 400 acres; Broadmoor Bluffs Subdivision, with 291 acres; Broadmoor Resort, 146 acres; Broadmoor Expanse, 1,677 acres; Cheyenne Mountain Zoo, 81 acres, and El Pomar with 140 acres.
“The only party I know of that is not interested is the U.S. Forest Service,” said Dan Prenzlow, southeast regional manager of Colorado Parks and Wildlife. “They have 1,300 acres touching all the rest of us.”
The Forest Service remains adamantly against spraying, saying that nature should take its course:
Oscar Martinez, district manager for the Pikes Peak District of the U.S. Forest Service, said there is no chance the federal agency will join the eight other entities killing bugs. Even if federal officials could be convinced to change their minds, Martinez said, the federal government would require so much environmental assessment that nothing could be done in time to make a difference.
“If you bought a house up there with big trees, and you moved here for those big trees, I understand the concern,” Martinez said. “But there is a natural cycle of forest disturbance that must be allowed to occur as part of responsible forestry management.”
By letting nature run its course, Martinez said, dead and dying trees can “release the vegetation that was suppressed by the tree cover. If you look at butterflies, they are tied to flowering plants that are suppressed by trees.”
Martinez said a naturally occurring bacteria detected by federal foresters stands to kill many of the bugs over the coming year, which should save a lot of trees. But Prenzlow said federal officials told state officials two years ago the bugs would begin dying naturally. They remain alive and well.
“We’re going into our third year and the bugs have not died. The trees are struggling and dying, so we’re going to spray,” Prenzlow told The Gazette.
Attendees learned that Xcel Energy, which serves most of urban Colorado, sells some 300 gigawatt hours of electricity to pot growers per year, or enough to power some 35,000 homes. The U.S. marijuana-growing industry could soon buy as much as $11 billion per year in electricity.
One study estimates that it takes as much energy to produce 18 pints of beer as it does just one joint. The data are alarming, and will only get more so as legalization spreads. But legalization, if approached correctly, also opens doors of opportunity. The biggest guzzlers of electricity also hold the most potential for realizing gains via efficiency.
Back in 2011, a California energy and environmental systems analyst, Evan Mills, published a paper quantifying the carbon footprint of indoor cannabis production. That footprint, he discovered, was huge. His findings included:
While the U.S. pharmaceutical sector uses $1 billion/year in energy, indoor cannabis cultivation uses $6 billion.
Indoor cannabis production consumes 3 percent of California’s total electricity, 9 percent of its household electricity and 1 percent of total U.S. electricity (equivalent to 2 million U.S. homes per year).
U.S. cannabis production results in 15 million tons of greenhouse-gas emissions per year, or the same as emitted by 3 million cars.
Cannabis production uses eight times as much energy per square foot as other commercial buildings, and 18 times more than an average home.
Time to stop before I write any more doobie-us puns. Have a great weekend!
October 8 Colorado Energy Cheat Sheet: Ozone rule and Colorado; ‘ban fracking’ resurfaces in Denver; ‘Fossil Fuel Free Week’ proves a challenge
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, New Energy Economy, regulations, renewable energy
Be sure to check out and like our Energy Cheat Sheet page on Facebook for daily, up-to-the minute updates that compliment our weekly “best of” on the I2I Energy Blog.
Let’s open with a great piece from Lachlan Markay at the Free Beacon on the ways proponents of the Environmental Protection Agency’s raft of new policies, especially the Clean Power Plan, went on the offensive before the regulation was even finalized:
Supporters of a controversial Environmental Protection Agency regulation commissioned Democratic pollsters to plot ways to attack the motives and credibility of the regulation’s critics, documents obtained by the Washington Free Beacon reveal.
Aides to a dozen Democratic governors and the Democratic Party’s gubernatorial advocacy arm circulated talking points and political messaging memos on EPA’s new power plant regulations that laid out ways to “sow doubts about our opponents [sic] motives,” in the words of one of those memos.
The previously unreported documents, obtained by the Energy and Environment Legal Institute through an open records request and shared exclusively with the Free Beacon, provide a window into the Democratic messaging machine’s approach to an issue that its own pollsters acknowledge is a hard sell among its target voter demographics.
In what was certainly intended as a launching point for
local national anti-energy, “ban fracking” advocates, last weekend’s confab in Denver–no doubt brought to us in no small part by fossil fuels–ramped up their efforts, as Energy In Depth’s Randy Hildreth writes:
National “ban fracking” groups descended on Denver this afternoon to protest oil and gas development as part of the “Stop the Frack Attack National Summit.”
For anyone still wondering if this was a Colorado effort, EID was on hand to note that when a speaker asked the crowd, “How many of you are from out of state?” attendees erupted into cheers. And while the group managed to draw roughly 100 participants, judging from the cheers of out of state folks, we’re guessing the showing was pretty sparse from Colorado (which, of course means they all got into planes and cars burning fossil fuels to get here).
Plenty of photos of the protestors at the link.
So what are they amping/ramping up?
Although Colorado-based environment groups such as Conservation Colorado didn’t participate; the demonstrations drew support from national groups, such as the Sierra Club, and impassioned “fractivist” residents. A group called Coloradans Resisting Extreme Energy Development has declared the COGCC illegitimate and is developing ballot initiatives including a statewide fracking ban.
“Local control” just means “ban fracking” and all other oil and gas development, using a few local fractivists for cover, a pattern of political posturing since at least the 2013 off-year election cycle, when national anti-fracking groups enlisted or created local branches to push ballot measures at the municipal level.
How big an economic driver is oil and gas development? Energy In Depth took a national look:
While these cities lie in different geological regions, they do have one thing in common: shale development. Oil and gas development in these cities was the biggest economic driver throughout 2014. For instance, take a look at the Greeley, Colorado metropolitan area, which encompasses Weld County, where a large percentage of shale development is taking place. It grew its GDP by 9.9 percent in 2014 and ranks fourth in the nation in terms of percent growth. According to a BizWest.com article:
“Greeley’s 2014 growth was dominated by the mining sector, which includes oil and gas extraction, growing by 24.6 percent from the previous year.”
Some early analysis on the EPA’s recently announced ozone rule, set at 70 ppb. Colorado’s unique geographical and topographical situation mean that even at a higher level (original discussions for the ozone rule included possibly lowering the target to 60 ppb from 75), the state will face plenty of difficulties, including some entirely out of the state’s control:
“We don’t expect that the non-attainment areas will expand geographically,” said Will Allison, the director of the Colorado Department of Public Health and Environment’s air pollution control division.
But state officials do have concerns about the new standard’s impact on the state, and they will be talking to the EPA about issues unique to Colorado and other western states, such as the fact that the Rocky Mountains can act as a trap for air pollution flowing across the Pacific Ocean from Asia, Allison said.
The state’s high altitude and pattern of lightning storms also contribute to ozone levels — but there’s very little Colorado officials can do to interfere with Mother Nature.
Heritage Foundation–4 Reasons Congress Needs to Review the EPA’s Ozone Standard
Institute for Energy Research–EPA Finalizes Costly, Unnecessary Ozone Rule
In 2010, EPA reconsidered the 2008 standard and EPA’s delay means that implementation of the 2008 standard is now behind schedule. But instead of waiting until localities are complying with the 2008 regulation, EPA is imposing a newer, stricter standard that puts more counties out of attainment even though ozone levels are decreasing. Below is a map depicting the areas that are projected to be out of compliance under a 70 ppb standard.
National Association of Manufacturers–New Ozone Rule Will Inflict Pain on Manufacturers, Finalized Regulation Still Feels Like a Punch in the Gut
“Today, the Obama Administration finalized a rule that is overly burdensome, costly and misguided,” said Timmons. “For months, the Administration threatened to impose on manufacturers an even harsher rule, with even more devastating consequences. After an unprecedented level of outreach by manufacturers and other stakeholders, the worst-case scenario was avoided. However, make no mistake: The new ozone standard will inflict pain on companies that build things in America—and destroy job opportunities for American workers. Now it’s time for Congress to step up and take a stand for working families.”
According to the National Journal, the new ozone rule has pretty much ticked off everyone concerned, including those on the side of the current administration:
After a banner second term that has seen the most aggressive action on climate change from any administration, the Obama administration just opened up a new fault line with environmentalists.
The Environmental Protection Agency today released its new air-quality standards for ground-level ozone, lowering the allowable level from 75 parts per billion to 70 ppb. That’s well short of what environmentalists and public-health groups had been pushing and a level they say wouldn’t do enough to protect public health.
Industry groups and Republicans, meanwhile, are not likely to be any happier—they have been long opposed to any standard lower than the status quo because of the potential cost of compliance.
The EPA’s shady procedural efforts appear to have killed natural resource development in Alaska, using hypotheticals and possibly in collusion with environmentalists, according to a new report, writes the Daily Caller’s Michael Bastasch:
The EPA may have rigged the permitting process in the Alaskan copper mining project, possibly hand-in-hand with environmentalists, to defeat the Pebble Mine before it even had a chance, a new report by an independent investigator suggests.
“The statements and actions of EPA personnel observed during this review raise serious concerns as to whether EPA orchestrated the process to reach a predetermined outcome; had inappropriately close relationships with anti-mine advocates,” reads a report by former defense secretary William Cohen, who now runs his own consulting firm.
The Pebble Partnership hired Cohen to review the EPA’s decision not to allow the Pebble Mine to seek a permit for mining copper near Alaska’s Bristol Bay. Cohen’s report only looked at the process the EPA used to pre-emptively veto the Pebble Mine. He did not make any conclusions on the EPA’s legal authority to do so or whether or not the mine should even be built.
Cohen found that the EPA’s “unprecedented, preemptive” use of the Clean Water Act to kill the Pebble Mine relied on a hypothetical mining project that “may or may not accurately or fairly represent an actual project.”
“It is by now beyond dispute that the Environmental Protection Agency went rogue when it halted Alaska’s proposed Pebble Mine project. And yet, there’s more.
The more comes via an independent report that criticizes the agency for its pre-emptive 2014 veto of Pebble, a proposal to create the country’s largest copper and gold mine in southwest Alaska. Under the Clean Water Act, the Army Corps of Engineers evaluates permit applications for new projects. The EPA has a secondary role of reviewing and potentially vetoing Corps approval. Here, the EPA issued a veto before [emphasis in original] either Pebble could file for permits or the Corps could take a look.”
Mountain States Legal Foundation’s William Perry Pendley on the latest private property battle vs. federal land managers–”The U.S. Supreme Court on Friday is scheduled to consider whether to take up a case from Utah that could determine whether federal land managers can steal a citizen’s private property.”
Native American energy production faces Democrat opposition:
House Democrats are expected to oppose legislation this week that would remove regulatory burdens for energy production on Native American land that tribes say have cost them tens of millions of dollars.
The Native American Energy Act would vest more regulatory authority over tribal energy production with the tribes themselves, rather federal regulators that have recently sought more stringent regulations on oil and gas production on federal land.
The bill passed out of the House Natural Resources Committee last month with just a single Democratic vote. Among its provisions is language that would exempt tribal land from new Interior Department regulations on hydraulic fracturing, an innovative oil and gas extraction technique commonly known as fracking.
Last but not least, the Western Energy Alliance’s “Fossil Fuel Free Week” concluded last week, and it was a tough challenge (if you’re reading this right now, you’ve failed:
Fossil Fuel Free Week, organized by Western Energy Alliance, has concluded and succeeded in getting people to think about the role of oil and natural gas in their daily lives. The campaign was designed in response to numerous anti-fossil fuel protests in recent months, such as the Keep It In The Ground Coalition, various anti-fracking rallies, demonstrations against Keystone XL and other pipelines and rail transport, the divestiture movement, and kayaktivists against arctic drilling.
The key lesson from the campaign is environmental groups, when directly challenged, fail to provide workable alternatives that replace the full spectrum of products provided by fossil fuels. Instead they respond by being predictably dismissive and offer vague visions for the future, as President Tim Wigley of the Alliance explains:
“As we’ve seen with recent protests, environmental groups incite anger amongst their supporters while dangling fossil fuels in effigy. Yet not accustomed to being poked fun of themselves, environmentalists reacted reflexively to the Challenge, offering weak observations by calling it ridiculous, snarky and a ploy. Well…yes!
August 20 Colorado Energy Roundup: Poll shows Coloradans not impressed by Clean Power Plan, fracking ballot measures expected, #greenjobsfail, and EPA/Animas River saga continues
Filed under: Environmental Protection Agency, Legal, renewable energy, solar energy, wind energy
This week the Independence Institute released the results of poll concerning the Environmental Protection Agency’s Clean Power Plan and who Coloradans feel does a better job when it comes to guarding the state’s environmental quality–folks here prefer Colorado oversight to meddlesome DC regulations:
The poll was conducted August 9-10th and found those surveyed more likely to oppose the EPA’s controversial Clean Power Plan if the rule resulted in electricity bill hikes, 59 to 33 percent.
Fifty-five percent said they would oppose the plan if it meant spiking poverty rates in black and Hispanic communities by 23 and 26 percent, as a recent study by the National Black Chamber of Commerce concluded.
Respondents also opposed the plan when it came to the core environmental impacts projected by the agency—a 0.02 degrees Celsius reduction in global temperatures and no notable impact on carbon emissions. Fifty-one percent said the promised temperature reduction would make them more likely to oppose the finalized rule, while 58 percent said that the Clean Power Plan’s non-existent impact on carbon emissions would do the same.
You can read the rest of the topline results here.
Colorado’s registered voters put their trust in the state to manage the environment, and not federal regulators from the EPA or DC in general:
While Colorado’s Attorney General, Cynthia Coffman, has not weighed in on whether the state could join a multi-state lawsuit against the EPA over the Clean Power Plan (she has said it is on the table), a 53 to 37 percent majority favored the state joining at least 16 other states in the suit.
Nearly 6 in 10 said the state should wait to comply—not move forward as Governor John Hickenlooper has directed—on drawing up a state implementation plan for the Clean Power Plan.
Nearly half said that they would be more likely to support a plan if the state of Colorado determined the cost of compliance before that plan became law.
When it comes to environmental regulation and quality, Coloradans clearly preferred the regulators in Denver to those in Washington, D.C.
The State of Colorado does a better job regulating for a clean environment 37 to 5 percent over federal regulators. Twenty-seven percent said both state and federal agencies handled the job equally well, with nearly one in five saying that neither has done particularly well in this area.
How did the results breakdown along partisan and demographic lines?
Only Democrats (64 percent) and those earning between $100-$124K per year (51 percent) were more likely to support the EPA’s Clean Power Plan even if it meant an increase in electricity bills as a result of implementing the regulations. Overall, 59 percent of Coloradans were more likely to oppose the plan, with men and women showing no gender gap and nearly identical opposition to costly rate hikes.
A National Black Chamber of Commerce study found that poverty rates in black and Hispanic communities were likely to increase significantly—23 percent and 26 percent—under the Clean Power Plan. Fifty-five percent of Colorado voters said they would be more likely to oppose the federal regulations under those circumstances, with women edging out men (57 percent to 53 percent, respectively) in opposition. Majorities of Republicans, independents, and all age and income groups offered the same negative responses when it came to impacts on minority community poverty rates, as did the respondents when viewed across all seven congressional districts.
Democrats were still more likely to support the EPA’s carbon reduction plan by a slim 42 to 37 percent margin. The party was split, however, along gender lines, with Democratic women in opposition, 44 to 36 percent. Their male party counterparts gave the Clean Power Plan a large boost, saying 48 to 27 percent that they were more likely to back the EPA’s measure despite minority community concerns.
More results from the poll’s crosstabs can be perused here.
EPA Administrator Gina McCarthy even admitted explicitly that the Clean Power Plan would adversely harm minority and low-income families the hardest:
The chief environmental regulator in the United States had some blunt words of reality regarding the administration’s climate change regulations.
The Clean Power Plan that will require drastic cuts in 47 states’ carbon dioxide emissions – consequently shifting America’s energy economy away from affordable, reliable coal – will adversely impact poor, minority families the most.
When speaking about the higher energy prices caused by the administration’s climate regulations on power plants, Environmental Protection Agency Administrator Gina McCarthy said, “We know that low-income minority communities would be hardest hit.”
McCarthy downplayed that fact by saying any minimal higher prices would be offset by implementing energy efficiency measures that would save consumers money in the long run.
Cato shows how “carbon dioxide emissions” have turned into “carbon pollution” when it comes to EPA messaging over the years.
Another new EPA rule? Yep:
With the Environmental Protection Agency expected to release a rule this month on methane regulations, proponents are gearing up for a messaging war.
Federal regulators aim at reducing oil-and-gas methane emissions by as much as 45 percent by 2025. The idea is that companies can use new technology to better capture methane emissions from operations.
The EPA estimates that 7 million tons of methane are emitted every year, though environmentalists suggests that it could be much higher.
The issue is relevant in Southwest Colorado, where researchers identified a significant methane “hot spot” in the Four Corners. A team of scientists is currently investigating the cause of the concentration, which could stem from a combination of natural-gas exploration and natural occurrences.
But industry efforts have already cut methane emissions significantly, making the rule seemingly superfluous:
This is going to go down in the books as one of the most curious moves ever taken by the Obama EPA, not because the reduction of methane emissions is a bad idea, but because it’s already been taking place in gangbuster fashion. The Institute for Energy Research put out a statement as soon as the new proposal was announced which put the question in context.
“Since 2007, methane emissions fell by 35 percent from natural gas operations, while natural gas production increased by 22 percent. According to EPA, voluntary implementation of new technologies by the oil and natural gas industry is a major reason for the decline in emissions.”
And where is the IER getting these figures about reductions in emissions? Are they coming from some big oil loving, pro-drilling think tank? No. It’s data taken from the EPA’s own studies which were cited in generating these rules. But just in case any of them don’t read their own promotional material, here are the numbers in graph form.
Anti-frack is BAAAAAAAAAAAACK!!!
After failing to gather enough signatures last summer, Coloradans for Community Rights said Monday it will try again to get a statewide initiative giving communities control over oil and gas exploration on the ballot.
Spokesman Anthony Maine said the group will begin circulating petitions early next year to get the Colorado Community Rights Amendment to the state Constitution on the November 2016 ballot.
“This is about communities being allowed to decide for themselves,” Maine said at a press conference in Denver.
He said the oil and gas industry and their supporters are expected to pump in millions of dollars to fight the proposed amendment.
“This radical measure would allow city councilors and county commissioners to ban any business or industry for any reason even if those reasons violate federal or state law,” Karen Crummy, spokeswoman for Protect Colorado, said in a statement. Protect Colorado is an issue committee organized to fight anti-energy ballot measures.
Unlike other observers who felt that this issue might recede into next year’s political battles or be left up to the current court battles, it’s been clear to me from my work on this issue that activists are gearing up for the long game, announcing their efforts more than a year from the 2016 ballot, banking on possible favorable wins in a presidential cycle rather than the 2014 midterm. Many anti-fracking activists felt burned by Governor John Hickenlooper’s “compromise” last year that appeared to be an effort to provide fellow Democrats political cover in what was shaping up to be a costly and election-determining fight at the ballot box. Hickenlooper’s commission did not assuage the resentment of activists, Democrats lost a U.S. Senate seat, and the issues remained unresolved, just kicking the can down the road.
We’ve caught up to the can once again.
At the Independence Institute, we’ve been taking a look at the failed promises of “green” jobs since 2011, and a California initiative passed with the help of billionaire Tom Steyer appears to have fallen, uh, short of its job creation goals in the green sector–by about 90 percent:
The California ballot measure funded by billionaire environmentalist Tom Steyer that raised taxes on corporations to create clean energy jobs has generated less than a tenth of the promised jobs.
The Associated Press reported that the Clean Energy Jobs Act (Prop. 39) has only created 1,700 clean energy jobs, despite initial predictions it would generate more than 11,000 each year beginning in fiscal year 2013-14.
Prop. 39, which voters approved in 2012 after Steyer poured $30 million into the campaign supporting it, closed a tax loophole for multi-state corporations in order to fund energy efficient projects in schools that would in turn create clean energy jobs.
More than half of the $297 million given to schools for the projects has been funneled to consultants and energy auditors.
As we noted in late 2013, the current administration pushed for changes it hoped would bolster the long term outlook for wind energy by attempting to deal with one of the unfortunate tradeoffs of giant wind turbines–bird deaths:
But a move to extend the life of one renewable energy source–in this case, wind–by granting a six-fold extension to ‘takings’ permits issued to wind farms that allow the accidental killing of bald and golden eagles has united opponents normally at odds: Senator David Vitter (R-LA) and groups like the National Audubon Society and Natural Resources Defense Council.
A sampling, from Politico:
It’s baldly un-American, Vitter said Friday.
“Permits to kill eagles just seem unpatriotic, and 30 years is a long time for some of these projects to accrue a high death rate,” said the Louisiana senator, who is the top Republican on the Senate Environment and Public Works Committee and one of Congress’s most outspoken critics of wind.
Sounding a similar theme, National Audubon Society CEO David Yarnold said it’s “outrageous that the government is sanctioning the killing of America’s symbol, the bald eagle.” He indicated his group may sue the administration.
The rule also drew criticism from Frances Beinecke, president of the Natural Resources Defense Council, who said it “sets up a false choice that we intend to fight to reverse.”
“This rule could lead to many unnecessary deaths of eagles. And that’s a wrong-headed approach,” she said. “We can, and must, protect wildlife as we promote clean, renewable energy. The Fish and Wildlife Service missed an opportunity to issue a rule that would do just that.”
Secretary of the Interior Sally Jewell defended the rule change.
“Renewable energy development is vitally important to our nation’s future, but it has to be done in the right way. The changes in this permitting program will help the renewable energy industry and others develop projects that can operate in the longer term, while ensuring bald and golden eagles continue to thrive for future generations,” Jewell said.
Well, the so-called “takings” extension to 30 years has had its wings clipped by the court:
The express purpose of the 30-Year Rule was to facilitate the development of renewable wind energy, since renewable developers had voiced a need for longer-term permits to provide more certainty for project financing.
The Fish and Wildlife Service (FWS) issued the 30-Year Rule without preparing either an Environmental Assessment (EA) or an Environmental Impact Statement (EIS) under the National Environmental Policy Act (NEPA); instead, the FWS determined that the 30-Year Rule was categorically exempt. In overturning the rule, the court found that the FWS had not shown an adequate basis in the administrative record for its decision not to prepare an EIS or EA and therefore failed to comply with NEPA’s procedural requirements.
Finally, to the EPA induced toxic spill saga of the Animas River . . .
Congressman Scott Tipton (R-3rd CD) and colleagues are asking the EPA questions:
We remain completely unsatisfied with the delay in notifying the impacted communities and elected officials responsible for preparing and responding to a disaster such as this one.
What was the reason for the over 24 hour delay between the time of the incident and official notification and acknowledgment by your agency that a blowout had occurred?
Who in the EPA’s regional office was first notified of the blowout and when?
What steps has the EPA taken, or does it plan on taking in the very near future, to ensure that this type of delay in acknowledgment and notification of the appropriate parties does not happen again? What additional steps will the EPA take to create and implement an emergency response plan for EPA projects such as this?
That’s just a sample of a raft of questions from the House members.
Sen. Cory Gardner (R-CO) and a bipartisan group of colleagues sent their own questions to the EPA:
We, therefore, respectfully request the following be included in a report on the events surrounding the Gold King Mine spill:
1. Details on the work EPA was conducting at the Gold King Mine prior to the spill on August 5, 2015;
2. Details of the expertise of the EPA employees and contractors carrying out that work;
3. Criteria EPA would apply before approving a contractor for a similar cleanup performed by a private party and whether EPA applied the same criteria to itself;
4. EPA’s legal obligations and current policies and guidelines on reporting a release of a hazardous substance;
5. EPA’s legal obligations and current policies and guidelines on contacting tribal, state and local government agencies when the agency creates a release of a hazardous substance;
Again, just a sampling of what members of Congress–and the public both down in southwest Colorado, northern New Mexico, and Utah–would like to know, demanding a full accounting of the EPA spill as soon as possible.
New Mexico Governor Susana Martinez wasn’t drinking the EPA
tang koolaid, or its official responses so far, and is asking for her state to investigate as well:
Today, I ordered the New Mexico Environment Department to investigate the circumstances surrounding the EPA-caused toxic waste spill into the Animas River.
New Mexicans deserve answers as to why this catastrophe happened and why the EPA failed to notify us about it — the first we heard about it was from the Southern Ute Tribe nearly 24 hours later.
The EPA should not be held to a lower standard than they hold private citizens and businesses.
Colorado Attorney General Cynthia Coffman feels that she is not getting the whole picture either, and is still considering a lawsuit against the EPA for the spill:
The attorneys general of Colorado and Utah visited this still-festering site on a fact-finding mission Wednesday and left feeling the Environmental Protection Agency had not provided them with the whole picture.
“There’s a list, honestly,” Colorado Attorney General Cynthia Coffman said of her questions.
Coffman and her Utah counterpart, Attorney General Sean Reyes, are among a group that have said legal action against the EPA is being weighed after the agency’s Aug. 5 wastewater spill in the San Juan County mountains above Silverton.
The spill sent 3 million gallons of contaminated water surging into the Animas and San Juan rivers.
New Mexico’s attorney general said last week he is considering a lawsuit, and Navajo Nation leaders, whose community arguably has been most impacted by the disaster, said they will sue.
That lack of information–or, indeed, a coverup–has been the focus of much attention, and Colorado Peak Politics believes the EPA hasn’t been forthcoming from the beginning.
The inspector general for the Environmental Protection Agency announced on Monday that it is beginning an investigation into the agency’s role in triggering a massive toxic waste spill in southwest Colorado.
The IG alerted a number of senior EPA officials to the investigation in a memo released on Monday. “We will request documents, and interview relevant managers and staff in these locations and elsewhere as necessary,” the IG said.
The announcement comes amid controversy over EPA’s role in the spill. Agency chief Gina McCarthy admitted last week that EPA inspectors had triggered the incident while inspecting cleanup efforts at the Gold King Mine near Durango, Colo.
What are the cleanup costs estimated to be? The Daily Caller’s examination of potential burdens to the taxpayer due to EPA negligence are big:
The right-leaning American Action Forum estimates the total cost for responding to the Gold King Mine Spill could range from $338 million to $27.7 billion based on the federal government’s own cost-benefit analyses for cleaning up toxic waste and oil spills.
“There is no direct precedent for the toxic Animas River spill in Colorado and past regulatory actions from agencies, but we can learn from previous benefit-cost estimates,” writes Sam Batkins, AAF’s director of regulatory policy, adding that he “evaluated four recent regulations’ benefit figures to approximate the cost of the current spill in the Mountain West.”
That’s not good news, considering the mine owner’s allegations that the EPA has dumped toxic waste as far back as 2005, or that billions of gallons might be poised to spill in the future.
And that future is unclear due to what still lies beneath:
State and federal officials have offered assurances that the river is returning to “pre-event conditions,” but uncertainty remains over the residue that still lurks beneath the surface flow.
Those remaining metals on the river bottom still could affect aquatic life, agriculture and other aspects of life along the water in ways that are difficult to predict.
“The long-term effects are the concern that every time we have some sort of a high-water event, whether a good rain in the mountains or spring runoff next year, that’s going to stir up sediments and remobilize those contaminants that are sitting at the bottom of the river right now,” said Ty Churchwell, Colorado backcountry coordinator for Trout Unlimited.
CBS4Denver had the opportunity to get an early look at the mine itself, post-spill.
Perhaps the only thing quite as toxic as the spill itself is the messaging cover both local and regional environmental groups and pro-administration activists are providing the EPA, casting blame on private mismanagement and pollution and offering only an “aw shucks, only trying to help” defense of the agency:
Only the NRDC offered a response.
Earth Justice and several other environmental groups have made no public comment on the Animas River spill at all. In their public statements, neither the NRDC nor the Sierra Club pointed the finger at the EPA.
Though the Sierra Club did not respond to our inquiries, it did offer this public statement on August 11:
The Animas River was sadly already contaminated due to the legacy of toxic mining practices. The company that owns this mine has apparently allowed dangerous conditions to fester for years, and the mishandling of clean-up efforts by the EPA have only made a bad situation much worse. As we continue to learn what exactly happened, it’s time that the mine owners be held accountable for creating this toxic mess and we urge the EPA to act quickly to take all the steps necessary to ensure a tragedy like this does not happen again.
In a recent statement, the NRDC’s President Rhea Suh said only that the EPA “inadvertently triggered the mine waste spill last week,” while casting mining companies and Republicans in the House of Representatives as the responsible parties.
They probably wouldn’t like the Colorado Springs Gazette’s suggestion that mine clean up be privatized:
Critics have recoiled at the thought of putting the government’s environmental work into private hands.
No longer should they perceive or argue a level of federal competence that exceeds what the private sector might provide. The EPA unleashed a toxic sludge of arsenic, lead and other harmful toxins without bothering to warn people downstream, including tribal leaders and governors of neighboring states. They botched the inspection that led to the spill and bungled the response.
July 16 Colorado Energy Roundup: Sec. Jewell adds Colowyo Mine visit; renewable energy mandate upheld
Filed under: CDPHE, Environmental Protection Agency, Legal, preferred energy, renewable energy
A week after the Department of the Interior declined to move forward with an appeal in the Colowyo Mine case, and facing mounting pressure to visit the northwest portion of Colorado during a scheduled trip to Aspen, Sec. Sally Jewell appears to have conceded to a meeting with county commissioners:
Moffat County Commissioner John Kinkaid said Wednesday that Jewell has added a meeting with northwest Colorado county commissioners to her itinerary Friday following her speech at the Aspen Institute.
“We look forward to meeting Secretary Jewell this Friday evening,” Kinkaid said. “I hope that she will be able to give us some assurances that our miners can keep working.”
He said he expected the meeting to include commissioners from Moffat and Rio Blanco counties, whose communities would bear the brunt of a mine closure. The meeting will take place in Glenwood Springs.
Jewell had come under pressure to visit the area after it was announced that she would deliver remarks Friday at the Aspen Institute, about a three-hour drive from Craig, where residents are alarmed about the future of the mine.
We’ll keep you posted on developments of the planned meeting.
The mandate, which voters passed in 2004 and expanded in 2010, was challenged by the free-market advocacy group Energy and Environment Legal Institute. The group argued that the renewable energy requirements violate the U.S. Constitution.
The lawsuit claimed that the requirement that large utilities such as Xcel Energy get 20 percent of their electricity from renewable sources violates constitutional protections for interstate commerce.
The plaintiffs argued that because electricity can go anywhere on the grid and come from anywhere on the grid, Colorado mandate illegally harms out-of-state companies.
The 10th Circuit Court of Appeals in Denver disagreed. The three-judge panel ruled that the mandate does not wrongly burden out-of-state coal producers. The judges also pointed out that Colorado voters approved the mandate.
The full text of the ruling can be found here.
For those who do not think increased energy costs–whether from increased cost of supply of fuel, onerous regulations, or government picking (more expensive) energy winners–affect lower and middle income families in Colorado, a new examination of the state’s Low-Income Energy Assistance Program (LEAP) reveals how devastating even modest price increases in energy can be:
About 430,000 households in Colorado — 22 percent of all households — are eligible for federal energy assistance.
These households have incomes below 150 percent of the federal poverty level, or about $36,372 for a family of four.
About 13 percent of Colorado households are below the federal poverty line of $24,250 for a family of four.
The federal Low-Income Energy Assistance Program, or LEAP, administered by local agencies, provided $47 million for heating bills during the 2014-15 season.
The article laments that program has a low reach at the present time, with only 19 percent of those eligible receiving outreach.
But the article’s lede is buried–even small, incremental increases have a large and outsized effect on low-income folks given the portion of income they spend on energy:
Xcel, the state’s largest electricity utility, calculates monthly payments based on 3 percent of a household’s income.
Average households pay 2 percent to 3 percent for energy, compared with low-income households, which often pay as much as 50 percent.
“That leaves very little for food, clothing, medicine,” said Pat Boland, Xcel’s manager of customer policy and assistance.
“Once we get them in the door, we want to keep them in the door,” Boland said in a presentation.
According to the article, Black Hills reaches only 10 percent of those eligible within its system. It pays for the assistance by charging other ratepayers, and is considering a rate hike to cover the program, which is currently losing money. That hike, along with three other rate increases since 2008, make Black Hills among the most expensive electricity providers in the state, the Post article said.
Despite a quiet 2015, fracking is still maintaining a low boil on the backburner of the state’s energy debate, and there is every indication that it won’t be simmering any time soon, and Democratic Rep. Jared Polis told the Associated Press that options remain:
Polis said fracking could be on the 2016 ballot if state officials don’t further regulate the industry. He stopped short of saying whether he would organize the effort, but he wants lawmakers and regulators to adopt three proposals that weren’t formally recommended by the task force.
One would let local governments impose stricter rules than the Colorado Oil and Gas Conservation Commission, charged with regulating drilling statewide. Another would change the commission’s role from facilitating oil and gas development to simply regulating it. The third would set up a panel to resolve disputes between energy companies and local governments or property owners before they land in court.
It remains to be seen whether or not activists, with or without Polis’s sponsorship, pursue a strategy like they did in 2013, targeting friendly and even tossup municipalities with fracking bans and moratoria, or wait for statewide opportunities in the 2016 Presidential election cycle.
The Bureau of Land Management has closed off nearly 100,000 acres of federal land from future leasing:
The Bureau of Land Management rejected all 19 protests from conservation groups, the oil and gas industry and other interests in approving a new resource management plan for the Colorado River Valley Field Office.
The Colorado River Valley Field Office, in Silt, manages more than 500,000 acres of land and more than 700,000 acres of subsurface federal minerals in Garfield, Mesa, Rio Blanco, Pitkin, Eagle and Routt counties. The agency says the majority of the 147,500 acres with high potential for oil and gas production under the office’s jurisdiction are already leased and will continue producing under the plan.
The plan closes 98,100 acres for future leasing, including in the Garfield Creek State Wildlife Area near New Castle, areas managed for wilderness characteristics, areas of critical environmental concern, municipalities and designated recreation areas.
A second Craig-area coal mine apparently also will have to undergo a remedial federal environmental review process if it hopes to avoid a shutdown based on a recent court order.
The Trapper Mine near Craig is now looking at going through the same kind of review currently underway in the case of the Colowyo Mine between Craig and Meeker following a federal judge’s ruling in May.
U.S. District Court Judge R. Brooke Jackson, in a suit brought by WildEarth Guardians, found that the federal Office of Surface Mining Reclamation and Enforcement illegally approved expansions of the two mines because it failed to provide public notice of the decisions and account for the environmental impacts.
The Trapper Mine faces discrepancies over permitted areas and coverage under filings with Judge Jackson, who did not impose a similar ruling as that issued for the Colowyo Mine.
In a notice filed last week to alert the court about the new information, the Trapper attorneys said they support doing remedial environmental analysis involving the Trapper Mine after the Colowyo review is done.
Bob Postle, manager of the program support division for the OSMRE’s western region, said the notice has “just been filed, and we’re now working through how we’re going to address it.”
Given the discrepancies, it isn’t clear at this moment whether a new or remedial environmental review is necessary, according to Trapper’s legal counsel.
In a meeting with Republican Senator Cory Gardner, western slope businesses and entrepreneurs described facing onerous regulatory burdens imposed by DC bureaucrats:
A Moffat County sheepherder, Delta hardware shop owner and Grand Junction manufacturer all walked into a meeting Friday with U.S. Sen. Cory Gardner, R-Colo., each with much the same punchline in mind.
The common theme: The federal government is reaching too far into their businesses, discouraging them from seeking out new ways of doing business and growing.
Constraining regulations have “taken the creativity out of business,” Jim Kendrick, owner of Delta Hardware, told Gardner. “The move is to make us all do business the same way. That’s stifling growth.”
Gardner met with two dozen western Colorado business and economic leaders at Colorado Mesa University in hopes of finding ways to improve the state’s sputtering rural economy.
“I spend all my time on regulatory compliance and none of it on product development,” one Department of Defense contractor said. That would result in pushing more business to bigger vendors able to hurdle all of the regulatory red tape due to a larger staff.