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New energy rules annoy oil-gas industry


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DENVER -- When a Colorado emergency room nurse fell gravely ill after treating a gas-field worker, doctors struggled to figure out what was wrong with her.

Her liver, heart and lungs were failing, likely a result of inhaling ZetaFlow -- a substance used in natural gas drilling -- from the patient's boots. But doctors could find little treatment information in the medical texts or on the Internet because the fluid's formulation is a closely guarded trade secret.

"Nobody knew exactly where to go," said nurse Cathy Behr, 56, who since has recovered.

New regulations adopted in December to govern Colorado's booming oil and gas industry aim to make future incidents easier to handle by, among other things, requiring companies to disclose to doctors and emergency workers the ingredients they use.

Regarded as the most comprehensive in the country, the rules have been hailed by some as providing much-needed protections for the wildlife and environment, but assailed by others as punitive -- and potentially crippling -- for an industry critical to Colorado's economy.

"We think these are the right regulations for Colorado," said Dave Neslin, acting director of the state's Oil and Gas Conservation Commission. "The oil and gas industry ... has a large footprint within the state. We think these rules strike an appropriate and sustainable balance."The requirements come as Colorado is struggling to keep pace with a significant energy boom. A decade ago, state officials issued 1,000 drilling permits per year; in 2008, they are on pace to issue more than 7,600, Neslin said.

The regulations:

-- Create a 300-foot-wide protection zone around streams that provide drinking water.

-- Require operators to disclose information about their chemicals to emergency responders and physicians, although the information may not be released publicly.

-- Require emission controls on operations within a quarter-mile of schools and homes in northwestern Colorado.

-- Allow state health and wildlife officials to review applications for operations that could affect public health or wildlife habitat.

The Colorado Oil and Gas Association, an industry trade group, regards that last rule as particularly onerous.

"As a result ... this process becomes the most burdensome in the nation," said John Swartout, vice president of government and legislative affairs for the association.

Swartout said it already takes longer to apply for a permit in Colorado than in other gas- and oil-producing states -- an average of 65 days, compared with two to seven days in other states.

Neslin acknowledged the process takes too long because commission staffing levels haven't kept pace with the growing number of permits.

"We face particular challenges here in Colorado," including drilling in areas of important wildlife habitat, he said. "In Colorado, it would be difficult to do a thorough review in two or three days."

The new regulatory climate could dissuade companies from operating in Colorado, Swartout warned.

"You're going to see a significant drop in investment in the Rocky Mountains. That equates to a loss of jobs in our state -- good-paying jobs with health care and benefits," he said.

Several Republican state lawmakers have echoed that concern, saying they intend to push for modifications to the rules.

"We cannot afford to push the energy industry out of Colorado, given the current state of the economy," said Colorado House Minority Leader Mike May to The Denver Post. "And many fear that the proposed rules will do just that."

Environmentalists counter that tourism is a far more important industry in Colorado and that it makes sense to protect the natural assets that draw visitors to the state.

Hunting, fishing and outdoor recreation "are contingent on an environment that's thriving," said Pam Kiely, legislative director for Environment Colorado.

The argument that the rules will contribute to a worsening economy is flawed, said Elise Jones, executive director of the Colorado Environmental Coalition.

"What affects the oil and gas industry is really the price of natural gas, which is set on the national market," Jones said. "It's influenced by things that have nothing to do with whether they have to line waste pits."


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Comments to this story.

Bubba wrote on Dec 26, 2008 8:09 PM:

" Colorado cracked down on the oil and gas industry and Wyoming should too.
There have been threats that industry will pull out of Colorado, but it hasn't and won't happen.
Why is Wyoming so gutless when dealing with industry? We could have it all -- jobs AND a cleaner environment AND safer work conditions.
For a so-called, rough 'n tough Cowboy State, Wyoming is scared of industry going away. "

Graft wrote on Dec 26, 2008 9:38 PM:

" The Wyoming politicans know were their $500 million yearly budget surplus comes from and it aint from selling fishing licenses. Money talks, BS walks. Wyoming ranchers receive millions from O&G in compensitory 'mitigation', outdoor recreations should get the same for their losses. Anyone hunt the Jonah Field in Pinedale lately? "

robert wrote on Dec 27, 2008 6:51 AM:

" Dear Bubba; I love people like you.(no!) You have no idea what makes the world go round. No doubt the liberal press is your life line to what you think is reality. With people like you I'm sure this nation will degrade it self to 3rd class or lower among the counties of the world. Have a nice life as your attempt to bring all down to the level you seem to be on. "

BULL wrote on Dec 27, 2008 8:33 AM:

" Bubba , don't be so hasty to condemn the oil & gas business in Wyoming. It has paid it's way for many years in this state with revenue. And if it were not for this revenue , Wyoming would be another Appalachia. Greenies need to stay out of this business. Greenies need to go home to Kornyfornia and clean up their own mess. We don't want or need Wyoming to be another Colorado. "

Drue D wrote on Dec 27, 2008 9:37 AM:

" Hey bubba do you drive an SUV? "

Dewd wrote on Dec 27, 2008 9:48 AM:

" Somebody needs to tell the Oil and Gas Industry that the era of the Robber Barons really ended with the Teapot Dome scandal during the Warren Harding administration. Thankfully , he died in office. We had to endure Bush-Cheney for the whole eight years... their attempt at a High Renaissance of Big Oil-Government Collusion almost succeeded.

No more Petrocracy , OK? "

logger wrote on Dec 27, 2008 9:55 AM:

" lets see. hunting on the Roan Platuea, Colorados big gas play, brought in $4,000,000 in a year. The Natural Gas industry brought in $4billion dollars to Colorado. Would you rather have your son out of high school make $80,000/year, or $20,000 serving ice cream cones to tourists for 6 months out of the year.
The biggest irony I love is that California built 6,000 megawatts of electric generating capacity in the last 10 years(since their big blackout). All of it Natural gas. They refuse to use "dirty" coal, and they pay twice your electric bill for it. Thats whats driving up the demand for Gas so much. So now you have California enviros who want politically correct power, driving wyoming and Colorado enviros crazy.
Maybe the CST can tell us how much of the Gas produced here goes to feed Californias electric utilities? And how much that has increased in 10 years. Sounds like a story! "

Flash wrote on Dec 27, 2008 1:38 PM:

" The requirement to disclose chemical composition of products is an important safety issue, as long as it doesn't violate patent law. MSDS sheets don't always give complete information.

However, to "Allow state health and wildlife officials to review applications for operations that could affect public health or wildlife habitat." is too vague and could be used to unreasonably delay a project. "

Mac wrote on Dec 27, 2008 3:49 PM:

" If we just put a few more "reasonable" regulations on the gas, oil, and coal companies, we can all go back to living in the 18th century! This is exactly what the enviro-nazis want. No more fossil fuel extraction. Yeah, we can all sit around our windmills and solar panels, all subsidized by huge gov't taxes, and wonder why our energy bills are 10X what they used to be. "

rick wrote on Dec 27, 2008 7:48 PM:

" Hey Graft, Have you bought a fishing license lately? "

jody wrote on Dec 28, 2008 3:24 AM:

" DOWN WITH THE GOP (gas and oil party)

we need more wind and solar power!!!! "

earthling wrote on Dec 29, 2008 5:46 AM:

" Hey robert, if you're working for an energy company you're already a 3rd Class citizen - especially to them. I lived through the last boom and bust here and saw the loyalty the oil companies had for their workers. The companies pulled out, just like they're going to do again, and the people of Wyoming were left holding the bag. Thank god this is the last hydrocarbon boom to ruin Wyoming. The end is just around the corner. Hallelujah! "

Dewd wrote on Dec 29, 2008 9:32 AM:

" One other thing.

Folks who are concerned abot the impact of oil and especially gas development on the Wyoming landscape would do very well to take a little digital field trip. Jump into Google Earth and " fly " the Jonah Field and the Pinedale Anticline .Then for the heckuvit go look at the Powder River Basin just to make sure you aren't hallucinating. Keep in mind the satelite photos Google Earth uses are 1-3 years old, at best . I'm hoping an NGO will develop the data to produce KMZ overlay files for Google Earth to show us where all the planned wells are going , too.

Prepare to be stunned...you come away with the notion of too much devlopment , too fast , too reckless. At face value. The camera does not lie. "

RIchard wrote on Dec 29, 2008 9:44 AM:

" Drill, baby, drill...without reasonable regulation and protection means filthy air, water, threatened landscapes and diminished wildlife. No worker, field or health, and no citizen should be exposed to hazardous frac chemicals or ozone for the sake of competitive advantage. "

Casper Resident wrote on Dec 29, 2008 2:35 PM:

" The energy lobbyists have stuffed the Wyoming GOP who controls our state's government with so much money that they can do whatever they want with impunity. If we are ever going to get the energy companies under control and save our natural resources before they have been completely destroyed for the sake of making obscene amounts of money for the energy companies at the expense of our environment with the support of our crooked politicians who profit from the financial support of the industry every step of the way, we are going to have to throw all these elected officials who are in the pockets of the energy industry out of office and replace them with some people who care about taking care of our state's resources instead of the profits of their biggest contributors. "

Patch wrote on Dec 29, 2008 10:30 PM:

" If you are against oil and gas then turn your heaters off and quit using my hard earned product. Whining babies! I am sorry that you took a wrong turn off the highway/interstate and saw a few wellheads. That is too bad. Maybe next time you will just stick to the city or pavement. "

Man from Laramie wrote on Dec 30, 2008 4:21 PM:

" If this article is correct, the energy company was not maintaining a materials safety data sheet (MSDS), as is required by law for every substance used in the workplace. OSHA should throw the book at them. "

Man from Casper wrote on Dec 30, 2008 5:32 PM:

" The oil and gas industries do not care about Wyoming. They don't care about worker safety. They don't care about the environment.

All the oil and gas industries care about is the all mighty dollar, and a return on investments. Everything else, be damned. "

John Gabrielson wrote on Jan 1, 2009 5:55 PM:

" Look at the rig counts for oil & gas activity. Colorado for the first time in history passed Wyoming in active rigs two years ago. It was easier to get permits to drill for oil & gas in Colorado. Now all that is about to change. But one thing that's different, is that it's not the Federal Government to blame, but the state of Colorado itself. Colorado is killing the goose that lays the golden egg. It's too bad that one of the few competitive industries left in the United States is getting killed by state & federal government regulations. We don't get bailouts, just taxes & more regulation. Try making a living on unemployment. "

with Patch wrote on Jan 2, 2009 10:43 AM:

" Man from casper you are completely mis-informed. Oil and Gas producers put tons of money into communities. Just look and the new recreation center in Pinedale. Wyoming is becoming to much like California, people are against drilling but have no problem using petroleum products to heat there houses and fuel their cars. I have also personally been involved with a new emissions system for rig engines that cuts emissions by 90%, and the installations are taking place right now. Energy companys dont care come on Pull Your Head OUT. "

man from Casper wrote on Jan 2, 2009 11:38 PM:

" with Patch: Just because I use petroleum products doesn't mean that I should want drilling to occur EVERYWHERE in this state. This issue isn't that black and white.

The oil and gas industry has a long, damning track record for not caring about the environment. Just one example: It has been shown that elk, mule deer, and sage grouse tend to avoid energy development areas. But do you think the energy industry really cares about this? No, it's DRILL, BABY, DRILL in the Little Mountain area.

I do have my head out, Patch. It's all about the dollar, and that's it. If you believe otherwise, you are naiive. "

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