Transcript OIL AND GAS AND GARFIELD COUNTY

A COUNTY’S ROLE IN OIL &
GAS DEVELOPMENT
(ONE COUNTY’S PERSPECTIVE)
Presented To –
Colorado Institute for Leadership Training
April 3, 2004
Presented By Doug Dennison, Oil & Gas Auditor
Garfield County, Colorado
Outline
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Background
Regulatory Setting
2003 Complaint Summary
A County’s Role in Oil & Gas
Development
• Garfield County’s Approach &
Initiatives
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April 3, 2004
Background
• Most drilling activity in Colorado
– As of 03/26/04, 34 out of 68 drilling rigs operating
in Colorado were in Garfield County – next most
was Weld County with 14 rigs
– At least nine oil & gas companies are actively
involved in exploration and production of natural
gas in the county
– Most exploration and production of natural gas is
from tight sands but potential of coal bed natural
gas production is being evaluated
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April 3, 2004
Background (cont.)
• APDs approved
– CY 2003 = 566, a record high
– CY 2004 (as of 03/17/04) = 141
– Projected for 2004 = >650
• Over 1,600 active wells
• Over 300 new natural gas wells drilled
during 2003 with over 500 planned for
2004
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April 3, 2004
2003 Summary of Complaints
Complaints Received 4/1/03 – 12/31/03
Category
Number of Complaints
Odors/Air Quality
23
Traffic
19
Facility Location/Size
14
Dust/Roads
12
Private Property Damage
11
Water Concerns
10
Noise
10
Other
8
Leaks/Spills
7
Lights/Visual
5
Trash
4
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April 3, 2004
Regulatory Setting
• State of Colorado:
– Colorado Oil & Gas Conservation
Commission (COGCC)
• Has primary authority for regulating O&G
industry
• Has responsibility to promote development of
resources in a manner that protects human
health and the environment
• Local field engineers based in Battlement Mesa
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April 3, 2004
Regulatory Setting (Cont.)
• State of Colorado (Cont.):
– Certain activities also fall under
jurisdiction of other agencies
• Colorado Department of Public Health &
Environment (CDPHE)
– Water Quality Control Commission (WQCC)
– Air Pollution Control Division (APCD)
• Colorado Division of Water Resources (State
Engineer)
• Colorado Division of Wildlife (CDOW)
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April 3, 2004
Regulatory Setting (Cont.)
• Federal Government
– Several agencies may be involved,
including:
• Bureau of Land Management (BLM) – primary
responsibility for permitting and monitoring
activities on Federal lands
• U.S. Forest Service (USFS)
• Environmental Protection Agency (EPA)
• Army Corps of Engineers (COE)
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April 3, 2004
Regulatory Setting (Cont.)
• County
– County’s authority is very limited
– Cannot supersede or conflict with COGCC
– Few counties have O&G regulations
– Generally regulate through land-use code
– Most counties use planning personnel
– Can participate as a Local Governmental
Designee (LGD) in COGCC APD process
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April 3, 2004
Regulatory Setting (Cont.)
• County’s Role in COGCC LGD Process
– Initial 10-day review of application
– Request additional 20 days for review, if
required
– Request onsite consultation with COGCC,
if required
– Request public hearing, if required
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April 3, 2004
A County’s Role in Oil & Gas
Development
• CAUTION: There is no “one-size-fitsall” solution
– Local government’s involvement in and
regulation of industry activities is dictated
by several factors, including:
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Level of industry activity
Available resources
Political environment
Technical factors which dictate development
practices
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April 3, 2004
A County’s Role in Oil & Gas
Development (cont.)
• In the simplest terms, a county’s role is to
“fill the gap” where industry activities are
not addressed by State and Federal
Regulations
– For example
• Land-use regulations
• Local road-use regulations
• Participate in the COGCC LGD process and
utilize the process to its fullest extent
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April 3, 2004
A County’s Role in Oil & Gas
Development (cont.)
• Actively participate in COGCC hearings
and rulemakings
• Provide opportunities for citizens to
receive education regarding industry
• Provide a forum for issues surrounding
the industry to be discussed
• Participate with State and Federal
agencies in review of proposed
activities
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April 3, 2004
A County’s Role in Oil & Gas
Development (cont.)
• Devote resources, as needed and
available, to assist public in dealing
with impact from industry
• Coordinate with other local agencies
(e.g., municipalities, fire districts, etc.)
to address impacts
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April 3, 2004
Garfield County’s Approach &
Initiatives
• Attempting to establish and maintain positive
relationships with industry and State and Federal
regulators to effectively address issues
• Actively participating in rulemaking discussions with
CCI, COGCC and COGA
• Co-sponsor of NW Colorado Oil & Gas Forum
• Maximizing the use of all existing resources to deal
with impacts from industry
– Coordinating training needs for industry with Colorado
Mountain College
– Assisting local emergency responders and industry in
assessing HAZMAT capabilities and training needs
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• First county in CO to hire a full-time
individual to be focal point for all industry
activities – Garfield County Oil & Gas Auditor
• Specific Duties
– Serve as a liaison between citizens, industry,
county, and regulators
– Educate citizens on industry activities
– Respond to complaints and develop and maintain
a database of citizen complaints
– Review all Applications to Drill (APDs) for new
wells
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• Oil & Gas Auditor - Specific Duties
(cont.)
– Develop technical information library
– Conduct periodic informational meetings
– Assist Assessor’s and Treasurer’s offices
in validating industry financial and county
royalty payment information
– Provide input and advice to BOCC
regarding industry issues
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• Oil & Gas Auditor - Specific Duties
(cont.)
– Participate in land-use review process for
industry activities
– Participate in development of new
industry-related land-use regulations
– Facilitate “lessons-learned” reviews of
industry-related incidents
– Other duties, as assigned and needed
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• New Initiatives
– Establishing Garfield County Energy
Advisory Board (EAB)
• Currently stated mission of the EAB is –
“… to provide a forum for the oil and gas
industry, the public, impacted landowners, and
local government to prevent or minimize conflict
associated with oil and gas development through
positive and proactive communication and
actions that encourage responsible and balanced
development of these resources within Garfield
County. “
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• New Initiatives (cont.)
– Establishing Garfield Count Energy
Advisory Board (EAB) (cont.)
• Membership of the EAB will include –
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Municipalities
School districts
Citizen groups
Cattlemen's associations
Industry
6 citizen representatives
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• New Initiatives (cont.)
– Evaluating new land-use regulations
regarding the oil & gas industry
• Current revision consists of development plan
review via a primarily administrative process
• Regulations have been referred to Planning &
Zoning Commission for review and may be
reviewed by BOCC again in May, 2004
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• New Initiatives (cont.)
– Developing program for performing air-quality
monitoring in western GarCo
• Assembling a group consisting of citizen groups,
Colorado Mountain College, local school districts,
CDPHE, COGCC, industry and others to address this
issue
• Currently pursuing grant funds from CDPHE for start-up
costs
• Will pursue energy impact grants and other funding
sources in the next several months
• Pursuing training from CDPHE for certified odor
assessors
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April 3, 2004
Garfield County’s Approach &
Initiatives (cont.)
• Summary
– GarCo’s relationship with industry is one
of mutual need
• The county benefits from additional tax
revenue, increased employment, etc.
• Industry must recognize the needs of the
community and work with the county and other
local governments to address those needs
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April 3, 2004