Fracking bans in two Colorado cities have been overturned, with the state Supreme Court showing deference to state law, which the court said has the ultimate say-so in such regulations.
The Colorado Oil and Gas Association brought actions against Fort Collins’ moratorium and Longmont’s ban on fracking. The moratoriums were largely symbolic and not in areas where fracking was done with any regularity.
The court concluded that both municipalities’ moratoriums on fracking and the storage of fracking waste within the city is a matter of mixed state and local concern and subject to preemption by state law. The court added that the “moratorium is preempted by state law and is, therefore, invalid and unenforceable.”
The court’s decision is similar to steps take to thwart Denton, Texas’ ban on hydraulic fracturing passed in 2014. In that case, Gov. Greg Abbott signed legislation in May 2015 that preempts cities and other political subdivisions from regulation of oil and gas.
“This law ensures that Texas avoids a patchwork quilt of regulations that differ from region to region, differ from county to county or city to city,” Abbott said at the time.
Dan Haley, president and CEO of the Colorado Oil and Gas Association (COGA), said the court decision was not merely a win for industry.
“We think this is a good day for Colorado citizens who rely on the affordable and dependable energy that our Colorado oil and gas producers develop,” Haley said in a May 2 conference call.
He also cited 100,000 Coloradans who work in the industry who are protected by the ruling.
Jeffrey Reeser, a partner in the energy and natural resources and business practice groups at Sherman & Howard's Denver office, said similar cases continue the court's 1992 stance of preventing municipal and county oil and gas regulations that “attempt to effectively blocking all oil and gas development.”
“Boulder and Broomfield counties had been considering similar regulations and will now need to realize that fracking is a topic of state authority only and that counties cannot impose regulations that interfere with the state's interest in developing oil and gas property," Reeser said.
Asked about other anti-fracking initiatives opponents are trying to get on the ballot, Haley said the court’s message is clear.
“I think this sends a strong message that bans are not the way we do business in Colorado,” he said.
Haley said that with the legal battle over, COGA wanted to work with Longmont, Fort Collins and other local communities to find a balance between responsible oil and gas development and the needs of communities.
Darren Barbee can be reached at dbarbee@hartenergy.com.
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