The new Colorado Regulations outlined in Senate Bill 181 have been presented to the Biden administration as an example for U.S. deployment in the energy sector. Many regulations have good intentions and try to positively impact the environment.
Since the passage of Senate Bill 181, operators are now forced to learn how to properly apply and navigate these new regulations. The team at Sandstone presented a case study outlining how a Colorado operator leveraged data to streamline planning/development analysis and create actionable data/report(s) to validate the Total Outreach Campaign required of Disproportionately Impacted Communities (DI Communities) by the COGCC.
Key discussion points were:
- Locate and analyze datasets to quantify SB181
- Determining DI communities within ArcGIS
- Assembling and preparing assets for Total Outreach Campaign
- Is the data available?
- Impact on a due diligence process?
The Case Study was presented by Michael Tanner, Managing Director, and Stuart Turley, President, both from the Sandstone Group. They were also joined by Ryan Ray, President, of the War Room Media.
For the entire case study check here: Sandstone Group Case Study
Michael covered the demonstration of the data analysis required by the COGCC. Some of the key technical points were the 2,000-foot setback from the corner of the disturbed area and not just the well pad. The development of the required total outreach program is based upon the definitions of the disproportionality impacted communities.
The outreach program to the impacted communities is critical as the regulations include language, number of cars, and internet connectivity. With the progression of the Covid pandemic, simple door-knocking campaigns cannot work. There must be a documented plan and implementation schedule.
Ryan Ray brought up some outstanding points in the discussion after the demonstration. These regulations as written could include any energy construction across the U.S. This would include pipelines, power lines, wind farms, and solar arrays. The other critical component is the loss of tax revenue to the Disproportionately Impacted communities. Energy policies may have a good intention but ultimately may impact the poor in a negative fashion.
New Mexico was also mentioned by Ryan in the discussion. The Biden administration regulations could impact different parts of the country. Mineral rights, right away, and tax implications are all going to be impacted by the new proposed regulations.
Two articles point out the national attention being directed at the new regulations. Colorado’s new oil and gas laws could be an example the White House follows and The renewable energy House Bill 1381 may be detrimental to home rule and pits against the state.
The bottom line: Not all regulations are bad, and some are created with good intentions. However many are implemented without the considerations of the impact on the poor, or long-term impact on our energy sector and country. Positive discussions from all parties would go a long way to keep the positive focus on the Disproportionally Impacted communities and the energy policies.
Please contact Michael Tanner with any questions regarding the new regulations. Michael@sandstonect.com
We will have a follow-up case study with other operators.
