Face the State distorted COGCC reform to state it "exclude[s] members with ties to the energy industry"

Summary: A Face the State Staff Report asserted that under the administration of Democratic Gov. Bill Ritter there has been "a drastic overhaul of the Oil and Gas Conservation Commission [COGCC] to exclude members with ties to the energy industry and include individuals involved with environmentalist causes." In fact, state law requires the commission to include energy industry members, although in 2007 House Bill 1341 "decrease[d] from 5 to 3 the number of members [of the COGCC} who must have substantial experience in the oil and gas industry" while also expanding the body to nine members from the previous seven.

In a June 23 Staff Report, the "news" website Face the State asserted that under the administration of Democratic Gov. Bill Ritter the oil and gas industry has had to contend with "a drastic overhaul of the Oil and Gas Conservation Commission [COGCC] to exclude members with ties to the energy industry and include individuals involved with environmentalist causes." In fact, Colorado law still requires the overhauled commission to include energy industry members. As summarized by the nonpartisan Colorado Legislative Council Staff, in 2007 House Bill 1341, legislation to reform the COGCC, "decrease[d] from 5 to 3 the number of members who must have substantial experience in the oil and gas industry" while also expanding the body to nine members from the previous seven.

From the June 23 Face the State Staff Report "GOP GOES ON OFFENSIVE REGARDING $4 GAS":

As gas prices reach an all-time high in Colorado -- with the average price hitting $4 a gallon for the first time Thursday -- local Republicans are charging that Democrats controlling state government are to blame in part due to their continued alienation of the energy industry.

GOP state office holders and candidates alike are claiming Democrats in power -- specifically the administration of Gov. Bill Ritter -- are fostering a hostile environment for the energy industry. The [sic] say that Democrats' policies toward energy development in Colorado have taken a huge toll on the pocketbooks of average citizens across the state.

"When I'm out walking door-to-door, the thing I hear most is: 'Why are our gas prices so high in this country when we have the resources available but aren't using them?'" said Libby Szabo, the Republican candidate for North Jeffco's Senate District 19. "My answer to that happening is this: Because those in power have restricted our energy production through massive regulation, taxes, and moratoriums."

In the year and a half that Ritter has been in office, the energy industry has dealt with several measures that hinder the development of oil and gas in Colorado -- including a drastic overhaul of the Oil and Gas Conservation Commission to exclude members with ties to the energy industry and include individuals involved with environmentalist causes.

However, COGCC's "overhaul" did not "exclude members with ties to the energy industry," but rather decreased the number of members with "substantial experience in the oil and gas industry" from five of the previous seven-member panel, to three on the current nine-member panel. The Legislative Council Staff outlines the changes to the composition of the COGCC enacted by HB 1341 as follows:

Summary of Legislation

This bill modifies the membership of the Colorado Oil and Gas Conservation Commission (OGCC), by July 1, 2007, as follows:

• increases from 7 to 9 the number of members on the OGCC;
• specifies that the executive directors of the Department of Natural Resources (DNR) and the Department of Public Health and Environment (DPHE) are ex officio members;
• decreases from 5 to 3 the number of members who must have substantial experience in the oil and gas industry;
• requires 1 member to be a local government official;
• requires 1 member to have formal training or substantial experience in environmental or wildlife protection;
• requires 1 member to have formal training or substantial experience in soil conservation or reclamation; and
• requires 1 member to be actively engaged in agricultural production and be a mineral royalty owner.

The three current COGCC members with ties to the energy industry are:

• Mark Cutright, operations manager for Excell Services, Inc.
• Joshua Epel, assistant general counsel for DCP Midstream LLC.
• Kimberlee Miskell Gerhardt, a consulting geologist who worked for 10 years for Exxon Production Research Company.

In claiming that the COGCC was reformed "to exclude members with ties to the energy industry," the June 23 Face the State report linked to a May 16 Staff Report that referenced the change to the composition of the COGCC, but did not claim that the membership excluded members with ties to the energy industry:

Rich Alward, a Grand Junction environmental consultant, ecologist and new addition to the COGCC, says the environmental community is creating surprising alliances with hunting, fishing and ranching interests in the state. He says their collective efforts have given them a political voice like never before.

Hall, the energy industry representative, believes such new coalitions are a driving force behind efforts to rewrite the rules and regulations for oil and gas in the state.

"Very strong environmental extremists make a lot of money off demonizing anyone they can," said Hall. "Now that the timber industry has been destroyed they have found a new target."

Democrat Gov. Bill Ritter supported legislation to change the composition of the Oil and Gas Conservation Commission. Republicans say the new rules and regulations being put forth by the commission threaten to derail the state's energy industry and harm state programs that depend on oil and gas revenues.

Face the State describes itself as "the 'go-to' news resource for Coloradans interested in state and local politics." The website's founder and managing editor, conservative political activist Brad Jones, defended Face the State's journalistic practices in a February 6 Rocky Mountain News guest editorial and in an article published in the February 7 issue of the weekly Westword, which stated that "Jones resents the insinuation that he'd sacrifice accuracy and journalistic credibility if given the chance to spatter political opponents."

—E.B.