Yesterday I commented that I hoped Ray Scott’s Regulatory Recapture Bill (okay, that’s my name for it) would die a quick death in the committee hearing. While that may still happen, there was no vote on the bill yesterday, because there were too many people wanting to comment.

Not So Short Background: Once upon a time there was a seven member commission that regulated oil and gas development in Colorado. Of the seven members of the commission, five were oil and gas professionals. That is the definition of regulatory capture. When an industry controls the agency that is charged with regulating it, regulations protect the industry, not the other stakeholders. In the case of oil and gas regulation, the Regulatory Recapture Bill could facilitate continued stonewalling about chemicals in fracking fluids, and any understanding of how they may or may not impact our access to clean water for drinking, farming, fishing, and recreation. Last year, when both the House and Senate were run by Democrats, the make-up of the commission was changed to include farmers, environmentalists, and oil and gas representatives. The more inclusive commission is more representative of everyone who has an interest in pollution free development of oil and gas resources, and would work to protect ALL stakeholders, not just one.

Ray Scott, who has swallowed the political fabrication that regulations caused the loss of jobs in Mesa County, is an ardent industry supporter. I say political fabrication, because industry representatives have repeatedly said that a downturn in prices and limited distribution capabilities were the cause of the slowdown in Mesa County, not regulations. In fact, the industry is facing tougher regulations in many states—Pennsylvania, Wyoming, New York, Maryland just to name a few. And just one more fact, there were 6,000 oil and gas leases issued last year in Colorado—the third largest number in the history of leasing. The industry is working. The industry is working in Colorado. Regulations did not drive the industry out of Colorado.  Even more amusing, the hearing room yesterday wasn’t filled to capacity because the big industry players say they have a good relationship with the regulatory commission.

Will you do two things today? Call Ray Scott and tell him that he is misguided. Then call other committee members and tell them that you would like them to vote against the Regulatory Recapture Bill—only you should probably call it House Bill 1223.

Homework

Pitkin County Opposed to HB 1223

Durango Newspaper Story on Bill

List of Committee Members

Yesterday the blog was about distractions. While we are distracted, the world keeps spinning, and there are things that should be the focus of our attention. Three come readily to mind: Civil Unions, Oil and Gas Commission, and a government shutdown.

The House District 54 Representative, Ray Scott, sponsored a bill that would take the agency that regulates Colorado’s oil and gas industry back to where it was before those pesky ranchers and environmentalists demanded a seat at the table. That bill will be heard in the House Agriculture and Natural Resources Committee today. Evidently enough people have gotten to Scott that he is willing to make some concessions, but since the commission was just restructured last year, the question needs to be asked why this bill is needed at all. Hopefully the committee will agree and just kill the bill.  (HB 11-1223.)

On Thursday, the Civil Unions bill will be heard by the House Judiciary Committee. Senate Bill 11-172 is finding some unusual support from editorial boards all across the state. They have been making the point that if the GOP really is about small government, then there is no place for government in the regulation of marriage.  The conservative Colorado Springs Gazette had this to say, "Society should head toward complete withdrawal of the State from the regulation of marriage, which is best left to the partners and their respective religions." Hopefully the committee will pass this bill so that it reaches the floor of the House, where some Republicans are ready to vote in favor of civil unions.

And finally the Tea Party is at war with the Republican Party. There still is no budget in place for the year that is now almost eight months old, and another budget fight is looming over the budget for the year that starts in September. The most recent continuing resolution expires on Friday, and the Tea Party is moving the Republican Party even further to the right. The Democrats caved, and now support the opening position originally proposed by Representative Ryan of Wisconsin. (Can’t seem to get away from Wisconsin these days, can we?) But the Republicans are no longer interested in their own opening bid; they want more. To complicate matters, Operation Odyssey Dawn just blew a hole in the budget. If the target keeps moving, there will never be a budget this year or next year, and the government just may shut down until we can elect some grown-ups.

I don’t know exactly how to react to this possibility. While I want seniors to keep getting their Social Security checks, I think that if they don’t, because of some boneheaded move by Republicans, Republicans won’t find elections quite so easy in the future. Seniors vote, and while their memories may be shot, they do know a lot about Social Security and who messes with it.

Homework

Colorado HB 11-1223

Colorado SB 11-172

Story About Pressure on GOP Lawmakers to Pass Civil Unions Bill

Cantor VS Boehner

The more I get to know Scott Tipton, the more I think that he lost his last living brain cell long before becoming the Representative for the 3rd Congressional District. Okay, I’m probably exaggerating, but his op-ed in the Sentinel is full of crap. (Linked below, but requires a subscription to read.)

The first paragraph blames the Obama administration for actively blocking natural gas development. The facts: According to Baker and Hughes, the number of rigs operating in Colorado has been on the rise. There has been a 60% increase since bottoming out in the fall of 2009. So let me get this straight, Obama is BLOCKING natural gas development, but the rig count in Colorado is increasing? How can that be?

Colorado Energy News, in a report dated January of this year, says, “Despite continued low natural gas prices and diminished economic activity, Colorado’s oil and gas industry fared better during 2010 than that in many other states, including our closest neighbors, in terms of drilling permits issued, new wells started, and active drilling rigs.” Obama is BLOCKING natural gas development, but Colorado is doing better than its neighbors? How can that be? According to Tipton, “in 2005, the BLM issued 272 oil and gas leases in Colorado — many of which were on the Western Slope.” That is what is called spinning the numbers. See, not all oil and gas activity in Colorado is permitted by federal leases. By focusing only on federal leases, Tipton paints a picture that is bleaker than reality.  According to Colorado Energy News. “The state issued 5,996 drilling permits during 2010, making it the third busiest year for permitting in the state’s history…” 306 of those leases were in Mesa County. They go on to say, “According to the industry tracking firm Anderson Reports, 1,907 new wells were started in Colorado during 2010.  This reflects a 28% increase from 2009.” But Obama is BLOCKING natural gas development? Tipton then makes the outrageous statement that “there is no established process for regulatory review, and agencies are essentially free to impose new regulations at whim, without the oversight of Congress and the input of the people.” Bullshit. Every proposed new regulation goes through a vetting process that involves public comment periods, unless it is imposed by congressional legislation. Homework

Tipton Opines on Over Regulation

Colorado Economic Forecast March 2011

Colorado Energy News

Who Regulates Oil and Gas Development?

BLM Regulatory Hearings Notices