GARFIELD COUNTY COMMISSIONERS SPLIT ON FRACKING LEGISLATION

Dennis Webb of the Daily Sentinel reports the proposal for new legislation regulating hydraulic fracturing in the oil and gas industry is not viewed the same way by commissioners in Garfield County — ground zero for Colorado’s energy industry. Here is his report:

Two Garfield County commissioners are questioning the need for federal legislation that would regulate hydraulic fracturing in oil and gas development.

The county’s three commissioners discussed the issue earlier this week but took no formal position on the legislation, which targets a practice that turned Garfield County into the state leader in drilling activity in recent years.

The federal legislation, whose principal sponsors include U.S. Rep. Diana DeGette, D-Denver, would require disclosure of constituents used in fracturing. The process entails pumping fluids under high pressure into wells to crack open formations and increase oil and gas flow. The legislation is aimed at helping safeguard drinking water supplies.

Commissioner John Martin noted that the Colorado Oil and Gas Conservation Commission’s new rules already require disclosure of fracturing chemicals to the state.

“We have a better grip on it right now, and now new federal regulation taking it away from us is not going to do us any good. Leave it alone,” Martin said. Fellow Commissioner Mike Samson said he didn’t understand the federal government asserting authority over the matter after relinquishing it to the states.

But Commissioner Tresi Houpt, who also sits on the state oil and gas commission, said she thinks the intent of the legislation isn’t to undermine rules in places such as Colorado, but to boost protections in states where there is less regulation of fracturing.

Last week, Gov. Bill Ritter said he fears the new legislation could result in potentially intrusive regulations for the industry, and called for a study of hydraulic fracturing in lieu of a bill. DeGette’s office says she supports the idea of a study but is going forward with her legislation.

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METHANE IN WATER? A MATTER OF OPINION

Webb also reported that several scientific experts challenged a Garfield County consultant’s conclusion that methane levels are increasing in domestic water wells in conjunction with growing natural gas development south of Silt and Rifle.

If anything, the methane levels are showing a slight decrease, Bob Sterrett, a geologist who looked at the issue on behalf of energy developer Bill Barrett Corp., told the Colorado Oil and Gas Conservation Commission Tuesday.

A consultant for EnCana Oil & Gas (USA) also took issue with the findings late last year by Geoffrey Thyne, a geology professor asked to analyze the results of a hydrogeological study conducted for the region. In addition, Thyne’s analysis was questioned by representatives of the company that conducted the study, and by an environmental protection specialist with the oil and gas commission.

Thyne believes some of the methane is showing up in water as a result of drilling, and that the problem has been particularly severe in the Divide Creek area south of Silt, where gas from an EnCana well contaminated surface waters in 2004. He also said the study shows rising chloride levels in water wells, indicating that water produced deep underground during drilling is getting into the wells.

But Dimitri Vlassopoulos, with S.S. Papadopulos & Associates, which put out the study, said its results show no statistically significant trends in methane concentrations in domestic water supplies. He also said new data shows a significant decrease in chloride levels. He said chloride levels are higher in water wells north of the Colorado River where no drilling is occurring.

Thyne told the commission he continues to feel there is a potential for drilling impacting well water in certain areas, and there should be systematic water monitoring in the region. Some commission members also indicated a desire to see more testing, and the commission asked its staff to report back on a possible monitoring approach.

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STATE REGULATORS DISCUSS GAS WELLS NEAR NUKE SITE

GLENWOOD SPRINGS — Two days of hearings by the Colorado Oil and Gas Conservation Commission discussing a proposal to drill gas wells near the site of an underground nuclear explosion have ended in Glenwood Springs. Several  Garfield County citizens have voiced their opposition to increased drilling in the area, where a 1969 explosion near Rulison designed to free up natural gas took place. A huge amount of gas was uncovered but never made it to market because of high levels of radioactivity.

Noble Energy is seeking to drill within three miles of the blast site. Local officials have asked for tests to determine whether the new wells would release contamination, something the U.S. Department of Energy deems slim.