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Just finished reading the Colorado Oil and Gas Conservation Commission draft rules and can see the environmental groups got what they hoped for. The way they are written their lawyers can shut down or delay any drilling that they want to with the commission not being able to do a thing about it until it is resolved in court.
This is how these groups operate and use liberal judges rulings to advance their agenda. Sad day for the people of Colorado and the gas industry. Gov. Ritter and his commission have successfully saved their Western Slope Playground at our expense.
We hear how they want to raise the severance tax on the energy companies. This is just a backdoor tax on the people using the gas. The energy companies will pass on the cost to the consumers and we wind up paying the tax.
Do Gov. Ritter and his cohorts who are in the majority think the people of Colorado are that stupid.
J.D. RINDERLE
Grand Junction
2 Responses to “New oil and gas commission draft rules”
Posted April 2nd, 2008 at 11:03 am Login to Send PM Report this comment
“This is how these groups operate and use liberal judges rulings to advance their agenda.”
Please cite examples of recent Colorado court decisions supporting this claim, i.e. name how environmental groups have used ‘liberal judges rulings to advance their agenda’ paying close attention to including the actual (rather than perceived) plaintiffs in the cases you cite.
“We hear how they want to raise the severance tax on the energy companies. This is just a backdoor tax on the people using the gas. The energy companies will pass on the cost to the consumers and we wind up paying the tax.”
The ability to sell Colorado’s gas to the Midwest and West Coast is largely what is determining how much oil and gas companies can profit (or not) from shipping off the gas out-of-state. As large interstate pipelines come on line, Colorado consumers have to compete with places like Chicago and Malibu, with the oil and companies pocketing the difference. This is one reason why major operators in the Piceance have been posting large profits, up over 50% in 2007 for two of the major companies operating in Garfield County and the region.
Similarly, the national (and increasingly international) market determine what pipeline companies (who buy the gas from the oil and gas companies) can charge their downstream customers–not the rate of one particular state’s severance tax.
Please provide more explanation about how bringing Colorado’s severance taxes in line with our neighboring gas-producing states will have negligible effect on far downstream energy prices.
Given the multi-million dollar investments that oil and gas companies have been making in Colorado–particularly the Piceance–over the last decade, such as the new pipelines referenced above and locating several new facilities here, please provide more details about how this is a ’sad day for Colorado.’
Finally, do you care to wager on your dire predictions? How about on the question of the oil and gas industry’s continued viability in Colorado even with a severance tax adjustment (to bring it in line with neighboring states) and sensible reforms–as proposed in the original state draft rules? I am open to offers on the prize of our bet.
Posted April 2nd, 2008 at 9:22 pm Login to Send PM Report this comment
Very well said, Oliver. Thank you.
If you don’t mind, I would add to your comments that I take exception with the ” Governor Ritter and his commission have saved their Western Slope Playground at our expense” part. Mr. Rinderle, Western Colorado has been my home since 1973. You do not speak for me. I fully support and have actively participated in the stakeholder meeting process.
Each meeting I attended was also attended by a horde of industry lawyers. Your opening claim that these draft rules will allow environmentalists to shut down the process is simply not accurate. I pay pretty close attention to this stuff and I don’t see that anywhere. Please give us details to substantiate your claim. And, please be as technical and thorough as possible so our attorneys can understand an advantage we don’t think we have. That would be a big help, thanks.
dc
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