Oil & gas 101: Citizens get education on drilling industry

They say water and oil don’t mix. But they can — figuratively speaking — and sometimes quite well.

That was the message state officials gave to more than 300 people who packed into a conference room at Mountain View Electric Association on Tuesday. El Paso County Commissioner Amy Lathen and state Rep. Marsha Looper, R-Calhan, convened the conference because oil in the near eastern plains is booming again, and Coloradans need to know how they can profit from it without endangering their water.

State officials spent hours explaining how the oil and gas industry is regulated, how horizontal drilling and hydraulic fracturing operate, and what kind of rights are afforded to landowners trying to decide whether to lease their rights to oil companies.

The most vital message was that protecting Colorado’s groundwater should be the highest priority for both the state and landowners, said Dave Neslin, director of the Colorado Oil and Gas Conservation Commission.

To that end, the state requires hydraulic fracturing (also known as “fracking”) pipes not only to be made of stainless steel, but also to be encased in concrete, said Neslin. His department oversees the industry, investigates complaints filed against energy companies and enforces state law.

The concrete casings are just one of dozens of requirements placed on the industry, Neslin told the crowd. Complaints can be filed by anyone at any time for any reason, and one of COGCC’s 15 inspectors around the state will respond within 24 hours, he said.

Rancher Ben Hendrix, who lives north of Calhan, wasn’t convinced that the price of oil is worth the risk of ruining his water well. He was approached not long ago by a representative of a Texas-based oil company that wants to lease drilling rights on his land. He’s leaning toward refusing.

“It could be a lot of money, but I rely on my water for my livestock and my livelihood and my family,” he said. “Compared to that, that money is just a drop in the bucket.”

Kevin Rein, assistant state engineer at the Colorado Division of Water Resources, spent nearly an hour talking about the legal processes for landowners and oil companies that want to establish leases, and for those who want to fight off government commandeering their groundwater.

Most of the attendees, however, were more interested in oil and gas leases.

“There’s a lot of people who feel like it’s money-hungry people drilling holes in the ground, without any regulations,” said Mike McArthur, who lives in eastern El Paso County.

He said, however, that the conference did a lot to relieve his concerns once he learned how strict the state is with the oil and gas industry.

Looper called the conference the “beginning of an education,” and said there will be a lot of issues going forward. She said she doubts that a perfect balance will ever be struck between all the stakeholders.

“The question is, how much water is in the ground? Is there enough for the energy companies and all of the 500,000-plus residents on the Front Range? I don’t think so,” said Looper.

For more information about regulations and other aspects of the oil and gas industry, go to cogcc.state.co.us and dnr.state.co.us.
—
Contact the writer 476-4825.