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Whose Rights, Anyway?

by: Colorado Pols

Sun Feb 22, 2009 at 09:17:17 AM MST


An article in today's Durango Herald speaks to the main issue overarching the whole fight over oil and gas drilling regulation in Colorado. Tell us if you don't agree:

Sen. Jim Isgar has placed a new piece on the board in the long-running chess match over new rules for gas and oil production.

Isgar's Senate Bill 229 puts him in the middle of a skirmish between Republicans and the Ritter administration over rules the Colorado Oil and Gas Conservation Commission has adopted to protect wildlife.

The bill attempts to clear up confusion about what rights property owners have under the new rules by allowing them veto power over Division of Wildlife recommendations.

"It kind of shifts the burden and gives the surface owner more power than he had," said Isgar, D-Hesperus.

The latest maneuvers began Tuesday, when Republican Rep. Cory Gardner of Yuma tried to convince a House panel to pass his House Bill 1255, which was a much broader assault on the Division of Wildlife's power than Isgar has in mind...

On Friday, it was checkmate for Gardner's bill. The House Agriculture Committee voted 7-6 to kill it.

Gardner didn't sound happy about the new Isgar-Curry bill.

And here's where we come to it: where all the vague talk about "protecting rights" you hear from both sides in this long-running debate is disambiguated once and for all.

There are two sets of property rights at issue: the surface landowner's and the mineral owner's. Surface landowners worry that the oil and gas commission's rules will force them to comply with Division of Wildlife mandates, and gas companies worry that landowners could use wildlife as an excuse to not allow any drilling.
Colorado Pols :: Whose Rights, Anyway?
Now, everybody says they're on the side of the surface property owners (otherwise known as voters) who breathe the air and drink the water around drilling sites, and can be expected to care much more about protecting wildlife that lives on or transits their land than energy companies do. And don't let the current temporary slowdown in drilling activity fool you--whatever the rules turn out to be, there will be more oil and gas drilling in Colorado.

It all comes down to where you split the difference--marginally in favor of landowners or energy companies. Jim Isgar's bill would tip this balance we're talking about toward surface rights holders in terms of approving wildlife protections, with specific limits to protect mineral rights holders. It's a compromise that tries to protect both sides' interests.

The key focus here is rightly on the landowner, though, since it's not usually the energy companies calling the health and wildlife departments. But protecting those poor landowners from Big Guvmint Regulation is the GOP's rallying cry here, so there you go. Take that "issue" off the table, uncontroversially since the interests of the Wildlife Department will align a hell of a lot more often with landowners than the energy companies. The idea of residential landowners upset about DOW drilling regulations to protect wildlife on their land seems kind of rare to us.

Get it? Both sides are talking about "rights," but it's clear who's rights really matter to whom at the end of the day--the Rocky Mountain News revisits Rep. Cory Gardner's killed "property rights" bill.

The House agriculture committee Friday killed a proposal to limit the involvement of the Division of Wildlife in issuing oil and gas drilling permits...

Health agencies and the wildlife division have become more involved in the oil and gas permitting process since Democrats gained control of the legislature, and a Democratic governor last year began making appointments to the Colorado Oil and Gas Commission.

Proponents of HB 1255 argued that tighter restrictions on drilling proposed by the commission could violate the property rights of landowners.

Rep. Cory Gardner, R- Yuma, the main sponsor of the bill, said landowners have a greater stake in the issue than environmentalists who opposed the bill. [Pols emphasis]

You see where this is going, don't you? Gardner's bill hid behind the people everybody says they want to protect, Joe and Suzy Ranchette and their back Garco forty, but in reality he wanted to strip the people most primarily concerned with protecting Joe and Suzy (and the wildlife on their land) from the process. It takes about two seconds to realize who actually benefits from that--the same energy companies who want all of these new rules junked.

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Wildlife versus shareholder value - who wins?
One thing the Durango Herald story does not mention is that energy companies own tens of thousands of acres of surface rights in the heart of Colorado's best wildlife habitat, which is located on the West Slope.

Mineral rights, like surface rights, are private property. But wildlife is a public trust. It belongs to all Coloradans, no matter whose land it happens to be on.

How difficult would it be, do you think, for the mineral owner to persuade the surface owner to veto sensible protections for the people's wildlife when the surface owner and the mineral owner are in fact one and the same - an out-of-state corporate entity whose primary interest is maximizing shareholder value?

Of course, none of the big energy companies who would primarily have benefited from Rep. Gardner's bill showed up to testify on the record. (Don't expect them to testify on behalf of Sen. Isgar's next attack, either.)

Instead, we were treated to a parade of Eastern Plains property-rights ideologues - none of whom would be affected by the wildlife rules - egged on by a small cadre of Grand Oil Party lawmakers intoning: "The landowner knows what's best for wildlife."

Grand Junction Daily Sentinel columnist Dave Buchanan gets it right:

"Anyone listening to this committee is tempted to report the members to Operation Game Thief."

He goes on:


"...wildlife belongs to everyone, which is why the state's sportsmen continue to support game damage payments and giving wealthy ranchers freebies including valuable hunting licenses, game-resistant fencing, signs and other goodies.

When the economy comes back, so will the drillers, and threats to the state's water, wildlife and air again will mount.

By then, perhaps, decisions regarding the state's wildlife will be made by a committee separate from one controlled by a bunch of anti-wildlife farmers bent on turning Colorado in to a sad mirror of Wyoming's barren gas fields."

http://www.gjsentinel.com/rec/...


Isgar represents surface & mineral owners only
Isgar's main concern is with the ranching and ag community, otherwise known as the good old boys.  I think the point of his bill is to allow large acreage owners to overrule the wildlife rules.  He's been searching for ways to water down the new gas rules all session.  I don't know that this is a bad bill, it seems like a fairly reasonable idea on the surface, but I suspect it won't work that way.  I haven't seen any report or critique that analyzes how this will work in practice.  Until I do, I am skeptical about this bill.

The important group in this bill, the one that I think it directly addresses, is those land owners who also own their mineral rights.  This tends to be longtime families in the San Juan basin.  I assume it's true, too, up in Garfield County.  ClubTwitty might have some knowledge about that.  Although this is a very small group, they have time and money to pursue their concerns.  Meanwhile, BP is looking to lower its costs in the fields.  BP Moves to Cut Subcontractor Costs.  They don't come right out and say it, but it's clear that there has been overdrilling the last few years.  Prices for field services went up because the demand by the gas companies was so high.  They had an opportunity / window to drill and took it.  Now they have to pull back on costs, especially since the recession has hurt demand.  Expect the gas companies to exert even more pressure on the Leg in the next year to lift or reduce any reporting / drilling rules & regs because of some threat to pull out of the state.  Politically, I think most people won't buy it, but it could still work - that's what they get paid to do.


Redundant, but necessary?
The Isgar-Curry bill (SB-229) is redundant.

After all, HB-1298, from the 2007 session, makes it clear that surface owner consent must be granted before any wildlife stipulations are promulagated by the COGCC.

Here's the language from HB07-1298:

CRS 34-60-128 (3)b. Provide for commission consultation and consent of the affected surface owner, or the surface owner's appointed tenant, on permit-specific conditions for wildlife habitat protection.

And, the final draft of the new rules makes it clear that surface owner consent must be granted.

Here's COGCC Wildlife Rule 1202.e.:

No permit-specific condition of approval for wildlife habitat protection under this rule shall be imposed without surface owner consent, including any permit-specific conditions for wildlife habitat protection that modify, add to, or differ materially from the general operating requirements in Rules 1203 and 1204.

But, if Isgar & Curry think SB229 is necessary in order to circumvent the Party of No's impotent attempts to eviscerate all the wildlife rules, maybe such redundancy is necessary.

There are 10 kinds of people in the world. Those that understand binary and those that don't.


That's pretty much the bottom line
It's a good point made above about some landowners who also own mineral rights, but we'd assert that's a minority of real-world cases--and Isgar's bill would still leave a requirement for mitigation and DOW involvement in place.

That said, generally speaking landowners will want the DOW making energy companies do right by their land. So giving them "veto power" isn't really an issue--let them restate it all they want. Much more important to deny Gardner, Penry and company a vehicle for subverting the larger rulemaking process.


[ Parent ]
Down to the wire
Interesting, isn't it, that at the end of this long, tortuous process it comes down to a pissing match between Big Ag and the DOW? The oil and gas lobby and the aforementioned GOP industry toads have done all they can to reestablish all the old hatred and bitterness between those two groups.

The Republican Caucus is trying to find a way to get this thing to the House or Senate floor where they can stall long enough force the legislature to put this off til' next year. I don't think the Dems are going to let that happen...at least, that is my hope.

And the men who hold high places, must be the ones to start, to mold a new reality, closer to the heart. Rush/ 1977


Not just O&G industry
Other landowners will "enjoy" the benefits of this fight.

http://chieftain.com/articles/...


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