Scope of new oil & gas rules on federal land unclear

When the state Legislature approved new oil and gas rules last week, a plan to implement them on private lands Wednesday became a sure thing. That’s anything but the case when it comes to the state’s plans to put the rules in place on federal land a month later. Industry officials doubt the state and federal governments will reach agreement in the next month regarding how the state rules would work on federal land — if they reach an agreement at all. “I’ll put money down that there’s going to be a need to delay” the May 1 implementation date, Stan Dempsey, president of the Colorado Petroleum Association, said in an interview. The U.S. Bureau of Land Management and Colorado Oil and Gas Conservation Commission have yet to meet on the matter. “The federal government does not work fast when it’s working on agreements like this,” said Wayne Bankert, who now handles regulatory and environmental matters for Laramie Energy II but formerly helped regulate the industry as a BLM petroleum engineer. Dempsey said during a recent legislative hearing that the industry needs clarity about the matter. Dave Neslin, acting director of the oil and gas commission, has said the state is prepared to delay the federal lands implementation date if need be. But timing isn’t the only issue; so is legality. The BLM last year warned that the state does not appear to have the authority to put some rules in place on federal land, such as geographic area plans that could conflict with federal land management plans, and surface-occupancy restrictions that exceed similar federal limits and that the BLM fears would impede energy development. Neslin and other state officials say court rulings have made clear the state’s authority to impose its rules on federal land...Grand Junction Sentinel