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Colorado Strikes Compromise De...


Colorado Strikes Compromise Deal with Fossil Fuel Industry Amidst Election-Year Tensions

Colorado Strikes Compromise Deal Industry
The Silicon Review
02 May, 2024

Environmental groups, including Earthjustice and Earthworks, have thrown their support behind the compromise

In a move to avert contentious ballot measures targeting the fossil fuel sector ahead of this year's election, Colorado lawmakers have brokered a compromise deal that includes both concessions and provisions aimed at appeasing environmental concerns. Under the terms of the deal, which gained traction this week, proposed ballot measures seeking to curtail drilling activities during summer months have been scrapped. Instead, producers will be subjected to a fluctuating fee tied to market prices on each barrel of oil extracted in the state. Although met with skepticism by some analysts, the fee structure is anticipated to yield approximately $140 million in revenue. Environmental groups, including Earthjustice and Earthworks, have thrown their support behind the compromise, along with major industry players such as Chevron and Occidental.

"We are glad to avoid ballot measures filed by the oil and gas industry to roll back the climate progress that Coloradans need and want," remarked Margaret Kran-Annexstein, Director of the Colorado Sierra Club. While Chevron and Occidental opted to defer comments to the Colorado Oil and Gas Association, the Association's President and CEO, Dan Haley, expressed satisfaction with the compromise, emphasizing the importance of political and legislative stability for the industry's future success in the state.

In addition to revenue generation, the compromise agreement allocates funds towards capping abandoned and low-producing wells and establishes new emissions reduction targets. Despite Colorado's stringent regulations on methane emissions, some industry figures, like retired CEO Rich Frommer, caution against further regulatory encroachment before existing systems have been thoroughly assessed.