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Source: PennEnergy

DENVER (AP) —A hearing on proposed rules for oil and gas drillingin Colorado got off to a contentious start Monday, with critics saying theguidelines were too narrow to do any good or that they didn't protect propertyrights.

The Oil and Gas ConservationCommission, which regulates drilling, is considering two rules that would giveregulators and local governments more of a say in the location of large oil and gas facilitiesin "urban mitigation areas," generally 1,000 feet from clusters ofoccupied buildings.

They wouldallow local governments to consult with energy companies on the location oflarge facilities, but they wouldn't be able to impose their own rules — onlystate regulations would apply. The proposals also would allow regulators torequire companies to reduce the impact that big facilities have on peoplenearby.

Energycompany representatives have said the rules go too far and could hurt thestate's important oil and gas industry.Colorado is the seventh-largest energy-producing state.

The ruleswere among a handful of recommendations by a task force convened by Gov. JohnHickenlooper to address tensions between the state's growing cities and theindustry.

Concern aboutthe potential health and environmental effects of hydraulic fracturing, orfracking, has heightened the conflicts. Fracking injects a high-pressure mix ofwater, sand and chemicals underground to stimulate the flowof oil and gasinto wells. The industry says it's safe.

BernieBuescher, a member of the task force who wrote the recommendation givingregulators more control over large facilities, told the commission on Mondaythat he didn't intend for that authority to be limited to areas nearcommunities.

"Thattool is only useful if it can be used everywhere," Buescher said.

BrentBoydston, vice president of the Colorado Farm Bureau, said the proposals shouldrecognize the role of property owners in discussions about the locations ofwells and tanks. Frequently, the person who owns the land — called the surfaceowner — doesn't own the minerals underneath, requiring negotiations on accessto the property.

"Thereis absolutely no assurance that the surface owner will actually have a say inwhat happens on their property" under the proposed rules, Boydston said.

Energycompany representatives have said the rules go beyond what the task forcerecommended.

Doug Flandersof the Colorado Oil and Gas Association said drilling nearurban areas is likely to become more common. Flanders said 30 percent of therich Denver-Julesburg Basin is within municipalities.

The hearingscontinue Tuesday. It's not clear whenthe oil and gas commission will vote on the proposals.

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