Coloradans reject setback restrictions on new oil and gas development

This oil well near a suburb northeast of Denver is one of about 54,000 producing wells in Colorado. Oil production has doubled in the state since 2013. (Photo by Grace Hood/CPR News)

DENVER – Colorado oil and gas companies landed a significant victory election night as voters rejected sweeping restrictions on the booming industry.

Proposition 112 would have required any new oil and gas development that’s not on federal land to be set back at least 2,500 feet — almost half a mile — from homes and such “vulnerable areas” as playgrounds, lakes and rivers. The current limit is 500 feet from homes and 1,000 feet from schools, health care centers and other high-occupancy buildings.

Although natural gas production has been stable over the past decade, oil production in Colorado has doubled in the past five years – the bulk of it driven by hydraulic fracturing, or fracking. Critics of the well-stimulation technique say it poses dangers to public health.

Dan Haley, president and CEO of the Colorado Oil and Gas Association, said workers got involved because their livelihoods were at stake.

“What’s been amazing to me is seeing the people in this industry step forward. People who don’t like politics and don’t want to be involved in politics, but they understand you don’t get to choose your moment,” Haley said.

Oil and gas companies, including Anadarko and Noble Energy, poured millions into the political interest group Protect Colorado. Through mailers, door-to-door visits and TV ads the group trumpeted the industry’s economic success, and raised concerns about what would be lost if companies faced new restrictions.

The opponents said the measure would have banned new oil and gas activity on most non-federal land in Colorado and cost the state jobs. The industry generated $10.9 billion in production value in 2017,they said, and supported many other industries and jobs. State and local governments would also receive less in tax revenue if the measure were to pass, they argued.

Supporters of the measure said it would have reduced health and nuisance impacts — headaches, nausea, traffic and dust, for example — associated with drilling sites. They say it would have given property owners greater certainty about the location of new oil and gas sites close to their property.

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Fracking opponents are running out of avenues to challenge drilling in Colorado. In 2012 and 2013, Longmont and Fort Collins imposed short- and long-term bans on oil and gas development, but the Colorado Supreme Court rendered those efforts illegal. Efforts to impose greater setbacks through the Legislature have failed.

One of the few remaining challenges lies in another legal challenge before the same court: Martinez v. Colorado Oil and Gas Conservation Commission. That case challenges the commission, which is the state’s oil and gas regulatory body, to prioritize health and safety over resource development. The high court is expected to issue its ruling in the next year.

Oil production has doubled in the state since 2013, and as of 2017, the state had 54,000 producing wells. Natural gas production has been stable for the past decade. But an increase in population along the northern Front Range means more people now are living near oil and gas facilities.