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Colo. county becomes 1st to use new regulatory powers on oil, gas production

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Colo. county becomes 1st to use new regulatory powers on oil, gas production

Adams County has become the first county in Colorado to take advantage of its new regulatory powers over oil and gas production, setting a new set of requirements on future production in unincorporated areas Sept. 3.

The ability of local municipalities to regulate oil and gas exploration and production expanded when Gov. Jared Polis signed Senate Bill 181 into law earlier this year. The Board of Commissioners for Adams County, which includes portions of the Denver metropolitan area but also has large amounts of unincorporated land to the east, exercised that ability in a 5-0 vote to implement a new set of requirements.

The regulations require any 1,000-foot setback from occupied school buildings and residences for any planned new production. The county said it has also implemented "significant regulations regarding safety requirements and environmental standards" for the operations of existing facilities.

"Since counties and cities have been given authority over oil and gas development, our staff has been hard at work creating a set of regulations that is fair to the industry but also provides for the safety of our residents," Board Chairman Steve O'Dorisio said in a statement. "It's a tough line to toe, but we think these regulations balance the interests of all parties involved."

Adams County's new regulations allow for producers to request a public hearing if planned future drilling and production do not meet the new standards, with the possibility of having regulations waived.

"We understand that every development application is different," O'Dorisio said. "And with Adams County having such a diverse geography from urban to rural areas, the hearing process allows us to make exceptions when it makes sense to do so."

Currently, there is no new exploration and production activity taking place in the unincorporated areas of Adams County. The Board of Commissioners passed a six-month moratorium on any new development on March 20, and that ban remains in effect.

The Colorado Oil and Gas Association quickly slammed the county's leadership for the passage of the new regulations, calling them an "overreach." The association said the county's actions go beyond the scope of SB 181, as they exceed the "necessary and reasonable" requirements for local regulations.

"By approving these new, unreasonable regulations, Adams County commissioners ignored the will of their citizens and the overwhelming number of people who testified today against this unnecessary overreach," association President and CEO Dan Haley said. "More than 5,000 oil and natural gas families live in Adams County … They deserved better representation from their local government."