Rocky uncritically repeated misleading industry criticism of proposed oil and gas rules

Summary: Reporting on hearings about proposed changes to regulations covering the state's energy industry, the Rocky Mountain News failed to challenge the claim by industry trade groups that the new rules would lead to "[a] total of 10,714 workers [going] without paychecks" during part of the fall and winter. The article did not mention that the proposed rules provide alternatives to seasonal shutdowns of drilling operations.

In a July 18 article about changes to rules governing the oil and gas industry proposed by the Colorado Oil and Gas Conservation Commission, the Rocky Mountain News uncritically reported the claim made in an ad sponsored by two energy industry trade groups that as a result of the changes, "[a] total of 10,714 workers will go without paychecks for a good portion of the fall and winter months." In fact, as Colorado Media Matters has noted, the proposal includes alternatives to seasonal shutdowns of drilling operations -- a clarification that the commission's acting director, David Neslin, made in a June 18 News Speakout guest column headlined "Mandatory shutdown of drilling a red herring."

From the July 18 Rocky Mountain News article "Drilling rules now up to panel," by Gargi Chakrabarty:

Last year, Gov. Bill Ritter expanded the Colorado Oil and Gas Conservation Commission to nine members from seven, adding conservationists and an industry critic to the panel.

The legislature soon after approved a bill that directed a rewrite of the rules. Commission Director David Neslin said the changes would "balance Colorado's increasing pace of drilling and development with protections for public health, the environment and wildlife."

But the industry warned the proposed changes would drive up the cost of operations, choke off new investment and force companies to leave Colorado.

The week before the hearings began, two influential industry groups -- the Colorado Oil and Gas Association and the Colorado Petroleum Association -- launched an advertising campaign, denouncing a proposal to restrict drilling at certain months near wildlife habitat areas.

"A total of 10,714 workers will go without paychecks for a good portion of the fall and winter months," the groups said. "How they will pay for groceries, their monthly health insurance, their utilities or make their house payment is anybody's guess."

Steve Torbit, regional director of the National Wildlife Federation, says the time is ripe to impose new regulations.

"Colorado is in a leadership position here, but the wind for change is blowing across the West," Torbit said. "Companies can either do business as they did in 1910, or they can do it in the 21st century."

The News failed to provide a response to the assertion by the trade groups, the Colorado Oil & Gas Association and the Colorado Petroleum Association, that "[a] total of 10,714 workers will go without paychecks" due to drilling restrictions. The News also did not mention that the proposed rule in question -- 1208. Sensitive Wildlife Habitat -- provides three methods by which "an operator shall protect Sensitive Wildlife Habitat from adverse impacts associated with proposed oil and gas locations," and offers the option of "demonstrat[ing] that the identified habitat is not in fact present" as alternatives to the "Timing Limitation on Drilling" provision for specified habitats. Rule 1208h states that the timing limitations described in 1208e "do not apply where the Colorado Division of Wildlife has previously approved in writing a wildlife mitigation plan for the area that includes the proposed oil and gas location and remains in effect":

1208. SENSITIVE WILDLIFE HABITAT

An operator shall protect Sensitive Wildlife Habitat from adverse impacts associated with proposed oil and gas locations, except gathering lines, as follows:

a. Comprehensive Drilling Plan. Operators are encouraged to develop and obtain acceptance of a Comprehensive Drilling Plan that will minimize adverse impacts to wildlife resources within Sensitive Wildlife Habitat, pursuant to Rule 216;

b. Consultation. Alternatively, an operator may consult with the Commission and the Colorado Division of Wildlife to agree on conditions of approval that will minimize adverse impacts to wildlife resources within Sensitive Wildlife Habitat, pursuant to Rule 306.c;

c. Limited Surface Density. Alternatively, an operator may apply for and obtain a Commission order pursuant to Rule 503 providing that there will not be more than two (2) well sites per section, except in sage grouse areas where the limitation shall be one (1) well site per section;

d. Demonstrate Lack of Habitat. Alternatively, an operator may demonstrate that the identified habitat is not in fact present to support the identified species and use; or

e. Timing Limitation on Drilling. If an operator elects not to protect Sensitive Wildlife Habitat through a Comprehensive Drilling Plan, consultation, or limited surface density as provided in Rules 1208.a, 1208.b, and 1208.c, respectively, or cannot demonstrate that the habitat is not present to support the identified species or use as provided in Rule 1208.d, then it shall refrain from drilling activity on the proposed oil and gas location in the habitats and during the periods below:

(1) Mule deer critical winter range (West of Interstate 25, except in Las Animas County).

Development activity shall be restricted between January 1 and March 31.

(2) Elk winter concentration areas (West of Interstate 25, except in Las Animas County).

Development activity shall be restricted between January 1 and March 31.

(3) Pronghorn antelope winter concentration areas (West of Interstate 25). Development activity shall be restricted between January 1 and March 31.

(4) Bighorn sheep winter range. Development activity shall be restricted between December 1 and February 28.

(5) Elk production areas. Development activity shall be restricted between May 15 and June 15.

(6) Columbian sharp-tailed grouse, plains sharp-tailed Grouse production areas.

Development activity shall be restricted in areas within 1.25 miles of active lek sites between March 15 and June 15.

(7) Greater sage-grouse and Gunnison sage-grouse production areas. Development activity shall be restricted in areas within 4 miles of active lek sites between March 15 and June 15.

(8) Lesser prairie chicken production areas. Development activity shall be restricted in areas within 2.2 miles of active lek sites between March 15 and June 15.

(9) Prairie dog (White-tailed, Gunnison's). Development activity shall be restricted in active colonies between March 15 and June 15, except those colonies within 1 mile of urban development areas.

(10) Black-footed ferret release areas. Development activity shall be restricted between April 15 and June 14 in Prairie Dog colonies where Black-Footed Ferrets have been released or documented since 2001.

(11) Raptors. Development activity shall be restricted within nest buffers or roost sites during the defined nesting or roosting dates for each species, as set out below:

A. Bald eagle nest sites. Development activity shall be restricted in areas within 1/2 mile of active bald eagle nest sites between March 1 and May 31.

B. Bald eagle winter night roost sites. Development activity shall be restricted in areas within 1/2 mile of a bald eagle winter night roost site where there is a direct line of sight to the roost or in areas within 1/4 mile where there is no direct line of sight to the roost between December 1 and February 28. Notwithstanding the foregoing, operators may conduct periodic visits for activities such as oil maintenance and monitoring work within the buffer zone after development, however such activities should be restricted to the period between 10:00 a.m. and 2:00 p.m.

C. Golden eagle nest sites. Development activity shall be restricted in areas within 1/4 mile of active nest sites between March 1 to May 31.

f. During the period of a Timing Limitation on Drilling in Rule 1208.e, ground disturbing activities are prohibited, including construction, drilling and completion, non-emergency workovers, and pipeline installation activity, except in the event of situations posing a risk to public health, safety, welfare, or the environment or to minimize adverse impacts to wildlife resources. During the period of the timing limitations, production, routine maintenance, emergency operations, reclamation activities, or habitat improvements are not prohibited.

g. Where the proposed oil and gas location is subject to multiple timing limitations on drilling under Rule 1202.e, then the Colorado Division of Wildlife shall determine which timing limitation or combination of timing limitations shall apply; provided, that such determination shall provide a window for drilling that is in all instances nine (9) continuous months or more, unless otherwise agreed to by the operator.

h. Exemption. The provisions of Rule 1208.e do not apply where the Colorado Division of Wildlife has previously approved in writing a wildlife mitigation plan for the area that includes the proposed oil and gas location and remains in effect [emphasis added].

In his News guest column, Neslin stated that when the new wildlife rules go into effect, "the energy companies will be given multiple options to avoid the 90-day drilling restrictions," adding, "Such restrictions would be the last resort for companies that choose not to work with the Division of Wildlife." Similarly, a June 23 online Denver Post article covering a local hearing on the proposed rule changes reported that Neslin "said there are several ways for operators to avoid having to shut down for 90 days, such as if they agree to work with the Division of Wildlife on a comprehensive mitigation plan."

—E.B.