DENVER – Telluride’s state senator is among those working with Gov. Bill Ritter, Natural Resources Director Harris Sherman and energy producers to fine tune a bill that drastically changes the makeup of the Colorado Oil and Gas Conservation Commission.

Critics have long argued that the commission is tilted too heavily in favor of the oil and gas industry at the expense of the environment, wildlife and surface landowners.

“What everybody has agreed to, that the industry hasn’t agreed to but they accept, is the fact that we are going to have a different commission,” said District 6 Sen. Jim Isgar, D-Hesperus. “At the end of the day, there will be a new commission and the industry won’t have a majority.”

House Bill 1341, which adds two members to the current 7-member commission and reduces the number of industry representatives from five to three, passed the House last month on a 37-27 vote. Rep. Ray Rose, R-Montrose, whose House District 58 includes Telluride, voted “no.”

Rose was among the 14 lawmakers who signed a letter to Ritter contending the legislature is trying to do too much too fast with bills affecting the oil and gas industry.  The letter said the cumulative affect of several bills is creating a sense of anxiety that eventually could lead to a loss of jobs and hurt the economy of energy-producing communities.

Isgar said the other bills moving through the legislative process – dealing with such issues as the industry’s impact on wildlife, public health, and disputes between mineral owners and surface owners – are part of the ongoing discussions.

“We’re talking about the bigger picture, about the time frame and how rule-making will work,” Isgar said. “The industry was under the impression that it was all going to get worked out and it hasn’t yet. I don’t know that everyone is going to agree but at least everyone is going to get heard.”

Isgar, as both a landowner and royalty owner, is a key figure in the talks even though HB 1341 was not assigned to the Committee on Agriculture, Natural Resources and Energy Committee, which Isgar chairs.

Senate President Joan Fitz-Gerald, D-Golden, instead assigned the measure to the five-member State Affairs Committee, chaired by Sen. Peter Groff, D-Denver. A hearing date has yet to be scheduled.

“I always argue that bills concerning agriculture, water and natural resources should be in the ag committee,” Isgar said. “The other side of that is that this is about a major policy shift of the state, not about the actual details, so it belongs in State Affairs.”

One industry representative, Colorado Petroleum Association President Stan Dempsey, acknowledged the shifting paradigm for the industry in testimony earlier this week on a bill that sets mandates on the use of renewal fuels in Colorado.

“We recognize that energy and renewables are of significant interest to the General Assembly and the executive,” Dempsey said. “We have significant expertise to contribute to the policy you want to accomplish.”

Dempsey said his industry was neutral on Senate Bill 238, sponsored by Sen. Brandon Shaffer, D-Longmont, but then went on to cite a number of concerns and emphasized the need to involve all stakeholders in the process.

Shaffer’s bill sets benchmarks for production of ethanol and biodiesel fuels before mandate use would kick in.  If production levels are met, diesel fuel would have to contain between two and five percent of biodiesel, while gasoline would have to contain at least 10 percent of ethanol.

“This is a dramatic change in terms of fuel policy of Colorado and we urge you to be cautious and deliberate,” Dempsey said.

The bill was strongly opposed by the trucking industry.

Greg Fulton of the Colorado Motor Carriers Association said the 500 companies that carry goods through Colorado believe mandated use of biodiesel fuels will drive up transportation costs and result in spikes and shortages of available fuel. 

“We already have the highest taxes and fees for trucks in the entire region,” Fulton said.  “We’ve lost 15,000 jobs in trucking in the last five years because we are not a friendly state, and they go to surrounding states.”

Shaffer called his bill a “work in progress” and pledged to involve the refiners in development of future amendments.  The bill passed the Senate State Affairs Committee on a 3-2 party-line vote, but still must by approved by the Senate Appropriations Committee before it is scheduled for Senate debate.

Isgar said he would be watching for the bill if and when it reaches the full Senate. His concern is for the Western Slope fuel distributors who may not have access to blended fuel. Much of the diesel used in southwestern Colorado comes from a refinery near Bloomfield, NM.

“I’ll probably have some amendments,” Isgar said.