Analysis: Colorado BLM failing to enact Obama energy reforms – creating red tape, uncertainty

A stunning new analysis shows striking inefficiencies at work in Colorado that should infuriate anyone looking for a smarter approach to federal oil and gas leasing – including both conservationists and energy companies.

In Colorado, leases sold by the Bureau of Land Management (BLM) have attracted nearly three times the number of costly, time-consuming lawsuits (known as protests) than we’ve seen in the rest of the Rockies. Our new analysis found that 76 percent of leases in Colorado were protested, as opposed to 27 percent in surrounding states, on average.

The analysis is based on BLM data recently released for the first time regarding the number of protests in each state filed by citizens and stakeholders on tracts of lands (known as parcels) available for oil and gas leasing. Protests are one of the key measurements for how controversial a particular decision to lease land for oil and gas development.

WEP Rocky Mountain Map

The reason for this massive discrepancy is clear:

Helen Hankins, the BLM’s top bureaucrat in Colorado, has failed to implement President Obama’s common-sense leasing reforms – designed to streamline the leasing process and reduce conflict dramatically by requiring research and analysis be completed prior to leasing.

A recent report from the Center for American Progress pointed out that:

Those reforms called for a better balance between developing oil and gas resources and the protection of other public lands resources, including nearby parks and refuges, wildlife, and historic and archaeological sites. “There is no presumed preference for oil and gas development over other uses,” states the reform document.

In other words, the reforms were meant to drive our local economies with a real balance between protecting public lands to support and attract high-wage businesses to the West, and using them to produce American-made energy – which together support 100,000s of jobs.

In states like Utah and New Mexico – where the BLM offices are implementing the reforms – protests are down, and energy is being produced. That approach is working for industry and conservation interests – and most importantly our communities and our families.

But in Colorado, Hankins has turned the President’s balanced reforms into a broken promise for our communities. Instead of helping oil and gas companies responsibly develop oil and gas resources in the right places, while protecting those lands that drive the economy and attract new business, Hankins continues to rely on decades-old plans and analyses – proposing to allow oil and gas drilling near places like Mesa Verde National Park, and Dinosaur National Monument.

By miring all sides in expensive red tape, Hankins has failed Westerners who are doing everything they can to get back to work and support their families. They expect their government to champion the Western way of life, including use of public lands in a balanced way to support sustainable economic growth.

The Obama administration must correct this failure by taking action to follow the directives in the 2010 leasing reforms now.

BLM Colorado: Public Has No Need to Know About Public Lands, Public Monies, Public Employees

Cross-posted from ColoradoPols

In a show of arrogance that has become too typical of the Colorado State Office of the U.S. Bureau of Land Management, the agency is ignoring a Federal judge, media requests, stakeholders, and the public in denying public information about public activities on the public lands, according to the Durango Herald:

“This isn’t a widespread issue of public concern. It is primarily press that are concerned about oil and gas leasing and activists that are opposed to oil and gas leasing.”

The state ‘Communications Director’, one might assume, has the job as a public employee working on public lands issues and spending public monies, of informing the public and managing media relations.  The ‘press’ and public are–this common-sense assumption goes–the PRIMARY purpose of his receiving a Federal salary as a taxpayer-funded public employee.

But apparently not for BLM Colorado–where public information is no such thing, and the public and media are merely distractions from what ever other self-determined more important things, like defending illegal agency actions perhaps, or intentionally seeking to divide communities.

Colorado’s North Fork Standing Up

This particular matter has its roots in the BLM Colorado State Office’s reckless oil and gas leasing policy that willfully ignores local communities, other federal agencies, state wildlife officials, local businesses and the public, to lease whatever public lands secret industry representatives nominate.  This is despite Colorado having the oldest land use plans in the Mountain West, many dating back to the 1980s–like that that governs the public lands in the North Fork–most of which fail completely to properly account for, describe, consider or protect the resources and uses that exist or depend upon these lands today.

Citizens for a Healthy Community–a Delta County based conservation group–partnered with the Western Environmental Law Center to file lawsuit seeking the names of the nominators who put forward the contentious leases in that valley.  They won that suit.

Here is what the judge wrote:

“Competition in bidding advances the purpose of getting a fair price for a lease of publicly owned minerals,” Matsch wrote. “Moreover, the identity of the submitter may be relevant to the plaintiff and others who may raise concerns about the stewardship records of that potential owner, a factor relevant to the environmental impact of the proposed sale.”

So, a Federal judge acknowledges that sharing information on public lands and public minerals is in the public interest and orders the public employees at a public agency to release that (public) information.

And the senior staff at BLM Colorado Office responds, to paraphrase: Make us (again).

Following the judge’s decision and the BLM Colorado’s clear loss in court, others–including the Durango Herald–have now sought identical information regarding contentious leases in their communities.  Such as those surrounding Mesa Verde National Park opposed by the BLM’s own sister agency in the Department of Interior, the National Park Service.

Now, the Colorado State Office of the BLM, our public employees spending our public monies to manage our public lands and minerals, is refusing to release that information. Again.  Because, apparently its Communications Director has better things to do than communicate.

Maybe like spending more time in court defending the indefensible, losing more lawsuits, and greasing the skids for oil and gas in violation of what the Federal courts have found to be in the public’s interest.

Gov. Hickenlooper fails to fine company responsible for toxic Parachute spill

Yesterday, Gov. Hickenlooper’s department of public health and environment (CDPHE) announced that they won’t levy fines against Williams Cos. for spilling 10,000 barrels of natural gas and toxic waste into Parachute Creek and the surrounding area in western Colorado.

Earlier this month, the Governor lobbied to water-down legislation to toughen fines for oil and gas companies who pollute, despite Colorado’s well-documented problems of spills, and lowest in the nation fines. The Governor’s actions ultimately led to the death of the legislation.

The Parachute spill, which occurred in the winter but wasn’t reported until the spring, has polluted water with cancer-causing benzene. In early May, benzene levels in the creek exceeded the federal safe drinking water standard.

In their statement, CDPHE said that they aren’t fining Williams because the spill “was not due to negligence but to accidental equipment failure.” So now Gov. Hickenlooper’s department of public health and environment only “protect[s] and improve[s] the health of Colorado’s people and the quality of its environment” part of the time? We didn’t find that caveat in their mission statement.

This isn’t the first time that the Hickenlooper Administration has failed to hold polluters accountable. A 2011 Suncor spill that polluted the South Platte River is still being cleaned up nearly two years later – and yet Suncor hasn’t been fined for dumping toxic levels of benzene into the river.

Unfortunately, it appears that the Hickenlooper Administration is fine with oil and gas companies polluting our water and communities with waste and toxins – otherwise, why not hold them accountable for polluting by enforcing fines?

Gov. Hickenlooper’s ‘order’ to oil and gas commission to review fines an empty gesture

Recently, Gov. Hickenlooper put on a masterful show of playing a politician who cares about Coloradans. Unfortunately, it was just an act to distract from the fact that Gov. Hickenlooper successfully killed efforts to set mandatory minimum fines and increase caps on fines for oil and gas companies that pollute.  

After killing these measures, aimed at holding polluters accountable, Gov. Hickenlooper put out a press release ordering his oil and gas commission to ‘review enforcement, fines.’ In other words, he directed his commission to take a look into their abysmal record and get back to him. That’s not leadership, it was an empty gesture to cover his tracks.

Gov. Hickenlooper’s press release doesn’t do anything to strengthen Colorado’s woefully outdated laws, which include the lowest fines in the nation for polluters.  And it’s doubtful that the governor’s oil and gas commission, which includes oil and gas industry employees, will suddenly become competent at holding oil and gas polluters accountable.  An analysis by the Denver Post found that Colorado rarely fines oil and gas companies who pollute. According to the Coloradoan, less than 7 percent of industry violations since 1996 have resulted in fines.

Site of Parachute spill Source: ecoflight

Site of Parachute spill
Source: ecoflight

Last year, the industry reported 402 spills, of which 20 percent contaminated water. Six companies alone accounted for 85 percent of all the spills that contaminated groundwater – Anadarko, Noble Energy, Encana, PDC Energy, WPX Energy and Pioneer Natural Resources.

Not only are polluters not held accountable, but Gov. Hickenlooper has routinely rewarded some of the biggest oil and gas polluters in the state. In 2010 and 2011, Noble Energy caused more spills than any other operator in Colorado – 126.  Yet, Hickenlooper’s oil and gas commission gave Noble an ‘Outstanding Operator’ award.

Gov. Hickenlooper also gave Anadarko an ‘Outstanding Operator’ award in 2011, while last year, Anadarko subsidy Kerr-McGee was linked to 70 spills – more than any other operator – of which, 38 percent resulted in water contamination. With these awards, Gov. Hickenlooper has once again made it clear that he isn’t that interested in holding oil and gas companies accountable when they pollute.

Gov. Hickenlooper used the power of his office to kill stronger standards that would have held the oil and gas industry accountable when they pollute. He chose to put the interests of the industry ahead of what’s best for Colorado families and that’s a shame. Now, Gov. Hickenlooper is insulting Coloradans by acting as the concerned politician.

Gov. Hickenlooper working overtime to bring toxic waste and pollution to your neighborhood!

A lot’s changed since 1955 when a gallon of gas was about 29 cents. One thing that hasn’t changed are Colorado’s fines for oil and gas drilling violations – despite a huge drilling boom and large increase in spills over the past several years. Under current law, most violations can’t be fined more than a $1,000 per day, with an overall cap of $10,000.

And it turns out that the state rarely enforces these laws. Analyses by the Denver Post and Fort Collins Coloradoan found that that state regulators rarely fine violators who pollute, and less than 7 percent of industry violations since 1996 have resulted in fines.

The Parachute Creek spill, caused by Williams, has polluted soil and water with cancer causing benzene and yet 56 days later, Williams has yet to be fined for polluting and risking public health.

Despite all of this, not only has Governor Hickenlooper failed to stand up for Colorado families and protect public health, but he’s actually working overtime to help make it easier for the oil and gas industry to pollute your water and communities.

According to a new report from the Center for Western Priorities, six oil and gas companies were responsible for 85 percent of all the spills that resulted in water contamination last year. Turns out that Governor Hickenlooper’s ‘besties’ Anadarko Petroleum subsidiary and Noble Energy, Inc. (of the Anadarko-Noble loophole) were two of the six big polluters.

Earlier this week, Fox 31 Denver reported that Gov. Hickenlooper watered down legislation to protect public health and water by strengthening oil and gas drilling violation fines.

Apparently, these laws just aren’t lax enough for Governor Hickenlooper and his oil and gas industry boosters. According to the Fox 31’s news coverage:

“Andy White, the governor’s [Hickenlooper] lobbyist on all oil and gas-related legislation…sided Friday with Republicans on the Appropriations Committee and stripped those provisions — the minimum daily fine and the removal of an overall cap on fees — from the bill before sending it to the Senate floor.”

Now the question is: Will the state legislature do the right thing – protect public health and water- by holding the oil and gas companies responsible when they pollute or will Gov. Hickenpuppet continue doing the bidding of the oil and gas industry to the detriment to Colorado families and communities?

Former park rangers launch group to protect America’s national parks from irresponsible oil & gas drilling

Former park rangers have launched a new group, Park Rangers for Our Lands, to provide solutions to irresponsible plans to drill near America’s national parks.

The former park rangers are advocating for a balance between energy development and conservation, just at a time when Colorado Bureau of Land Management (BLM) Director Helen Hankins has tried to push forward widely-criticized plans to drill next to Dinosaur National Monument and near Mesa Verde National Park. These are two areas of primary concern for the group.

According to Richard Ellis, who spearheaded the formation of Park Rangers for Our Lands:

“Our parks are under siege. Oil and gas drilling is encroaching our public lands from all sides…We need the BLM to work with its neighbors at the National Park Service and come up with common sense ways to protect the parks, the air quality in the region, and keep the West a beautiful place to visit.”

Director Hankins has come under fire, numerous times, for her oil and gas leasing plans next to Dinosaur Monument’s visitor center, near Mesa Verde National Park, perilously close to Denver’s drinking water supplies, and in the agricultural heart of North Fork Valley.

Unfortunately, this hasn’t stopped Dir. Hankins from continuing to push to open these areas for oil and gas drilling (see graphic) – despite the risks to our water, public health, farms and economies. It’s time for Director Hankins to adopt a common sense approach to oil and gas leasing that includes up to date analysis, implementing national BLM reforms – to cut down on Colorado’s highest in the region lease protests- and taking into effect the concerns of local businesses, landowners and the National Parks Service.

Rep. Hullinghorst working to end Hickenlooper Anadarko-Noble loophole- which puts Colorado’s water at risk

Gov. Hickenlooper likes to tout Colorado’s oil and gas rules as a national model, saying that the state has found the middle ground on development. Unfortunately, his administration’s Anadarko-Noble loophole is another example of Gov. Hickenlooper putting the profits of the oil and gas industry ahead of Coloradans. The good news is that champions for local communities, like Rep. Dickey Lee Hullinghorst, are stepping in to try and fix problems like the loophole.  

The Anadarko-Noble loophole provides an industry exemption from state water testing rules – already criticized as weakest in the nation – in northern Colorado, despite the fact that this is where some of the most intensive oil and gas drilling operations are located.

The loophole weakens state water testing rules in the Greater Wattenberg Area – near homes and farms in Adams, Boulder, Larimer, and Weld counties - which is home to more than 25 percent of Colorado’s oil and gas wells and some of the most intense growth in drilling activity.

As a result, it will be harder to detect water contamination and to figure out which well(s) are the source of contamination in the very region that needs these public safety standards the most. That’s not good news for Coloradans. In 2012, industry reported 402 spills in state, of which 20 percent resulted in water contamination, and just last month, a huge spill near Parachute creek contaminated nearby soil and water with cancer causing benzene.

The Anadarko-Noble loophole is part of a disturbing pattern by Gov. Hickenlooper of putting oil and gas industry profits ahead of what’s best for Coloradans. Remember the industry paid-for-ad in which Gov. Hickenlooper claimed that Colorado hadn’t had a single instance of ground water contamination from oil and gas drilling, despite evidence to the contrary (58 cases of groundwater contamination in 2011 alone)? Or how Gov. Hickenlooper said his hands were tied for suing Longmont for protecting the health of its residents from fracking?

Today the Colorado House Health, Insurance & Environment Committee will consider HB 1316, legislation that would close the Anadarko-Noble loophole and take a step in the right direction towards protecting our water and our communities. Let’s hope that the committee members will be representing the Coloradans they were elected to serve and not Big Oil and Gas when they vote on HB 1316.

2012 record-breaking year for Colorado oil production; in last nine years, 2,000 new oil and gas wells added per year

Yet again, the oil and gas industry is crying wolf about stunted energy production. But, as Colorado Oil and Gas Conservation Commission Director, Matthew Lepore testified before a House subcommittee, the industry is achieving record growth in Colorado.

In testimony to the House Committee on Energy and Commerce Subcommittee on Environment and the Economy today, Lepore said:

We have been adding at least 2,000 new wells per year for the past nine years, and expect 2013 to be similar. 2012 was a record-breaking year for oil production in Colorado; we expect production to top 47 million barrels when final numbers are tallied. We rank fifth in the nation in natural gas production and tenth in oil production.”

These facts haven’t stopped industry from claiming that energy production is stunted. Just last week, in response to the Colorado BLM’s decision to defer controversial drilling plans in North Fork Valley, West Slope COGA Executive Director David Ludlum argued that:

“the decision ‘threatens social justice and economic prosperity,’ by inhibiting energy production…” 

But the facts just don’t support COGA’s claim.

Production isn’t just up in Colorado – earlier this week we blogged about how oil and gas production has skyrocketed on public lands. In fact, the oil and gas industry has so much public land that they don’t seem to know what to do with it – one could even compare them to the subjects of A&E’s TV show, “The Hoarders”. Oil and gas companies are sitting on more than 20 million acres of leased public land that they’re not using for production or exploration, and thousands of idle drilling permits.

Oil and gas has more access to Colorado lands than all other Rocky Mountain states

A new analysis by the Wilderness Society shows that Colorado’s oil and gas industry owns access to more federal lands in Colorado than nearly any other state in the Rockies.

Their study finds that 11.8 million acres, (an area the size of Maryland and Connecticut combined) has been opened for oil and gas leasing. This represents a staggering 93% of federally controlled mineral holdings in Colorado.

In fiscal year 2012, protests in Colorado were significantly higher in Colorado than elsewhere in the Rockies and 66 percent higher than the national average of 18 percent.

Helen Hankins, Director of the Colorado Bureau of Land Management – which manages the state’s public lands – has come under fire for failing to implement the leasing reforms aimed at reducing protests. The Department of Interior reforms were put into place to solve conflicts between natural resources such as water, wildlife and oil and gas development.

Read more about the Wilderness Society findings.

 

ICYMI: Denver City Council supports BLM’s smart approach to protect water from oil shale speculation

On Monday, the Denver City Council issued a proclamation supporting the “research first” approach to protect western water, taken by the Bureau of Land Management’s (BLM) in its recently issued Programmatic Environmental Impact Statement (PEIS). By taking this action, Denver joined the list of communities throughout Colorado’s Front Range and West Slope that have publicly supported the BLM’s common sense, balanced approach to oil shale speculation. Local officials in these communities are particularly concerned about oil shale’s potential impact on the state’s already overstressed water supply.

denver_oil_shale_proclamationThe council rarely takes political positions but decided to weigh in on this important issue. The proclamation passed overwhelmingly, with a final vote of 8-2. The council explained that projections show Colorado’s water demands will increase 50 to 80 percent over the next 35 years. The Government Accountability Office reported that full-scale oil shale development could use as much as 140 percent of the water used by the Denver metro area alone.

“It is a responsibility for us as leaders on behalf of the constituents of Denver to express these concerns to ensure my grandchildren and their grandchildren have water to drink, take a bath in and cook with,” said Councilwoman Debbie Ortega.

“This is central to our business,” said Councilman Chris Nevitt. “We are not going too far out on a limb on a position that has been articulated by the Department of Natural Resources and Democratic and Republican governors alike.”

To date, oil companies have failed to find a commercially viable technology that converts oil shale rock into oil. Because of the uncertainty around what technology would be used for industrial-scale oil shale development, the impacts to water quantity and quality are unknown.

The BLM’s new PEIS sets aside 1,000 square miles of public land to conduct oil shale research and development. It also states that BLM will not grant commercial leases until “the lessee satisfies the conditions of its RD&D lease and meets all federal regulations for conversion to a commercial lease.” One of the most important conditions would be demonstrating the impact to both water quantity and quality.

Elected officials from cities and towns throughout Colorado have expressed their support of the BLM’s position.

Front Range officials sent a letter of support for the new PEIS to Sec. Ken Salazar:

“Oil shale development could pose significant risks to both water quantity and quality in the Colorado River watershed. As elected officials along the Front Range of Colorado – whose communities depend on water from the Colorado River Basin – we strongly believe it is essential that any final plan guiding the development of oil shale on our public lands, must first prioritize a thorough understanding of the potential impacts this industry would have on our water resources

Recently, the Front Range Water Users Council – which collectively meets the water demands of approximately 80% of Colorado’s population – requested that the BLM closely analyze the potential broad scale impacts of oil shale development before considering commercial leasing of public lands. We strongly agree, especially given that this year’s drought has severely strained our water supplies and there is no relief in sight. The drought underscores the fact that we cannot afford to take risks with our water and compromise Colorado’s farms and ranches, our world-class outdoor recreation economy, and our growing communities.”

West Slope officials also expressed their support for the PEIS in a letter:

“It is smart to require that research and development of oil shale and tar sands technologies be completed and the impacts analyzed before moving forward with a commercial leasing program.

Our public lands are enormous economic drivers in the Intermountain West. Tourism, recreation, hunting and fishing, ranching, and other industries provide billions of dollars of revenue and hundreds of thousands jobs throughout the three-state region.

The BLM has acknowledged in the Draft PEIS that the potential impacts of development on communities, water and air are largely unknown but potentially significant.

These lands are our heritage, and for many, our livelihoods. It is critical that we know more about the impacts of oil shale and tar sands development before putting communities, water and air at risk.”

Round up of local elected official’s expressions of support:

Denver City Council

Front Range local elected officials

Thornton letter (Denver suburb)

West Slope/mountains Colorado, Wyoming, Utah local elected officials

Town of Carbondale

Pitkin County

Routt County

City of Grand Junction

City of Rifle

Town of New Castle

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