Weld County and Northern Colorado Economy Targeted by Wrath of Legislative Proposals

Oil and Gas | 0 comments

NCLA Issues Calls To Action and Invites Northern Colorado Community Leaders to Engage in Legislative Debate

The carpet bombing of legislative proposals aimed at Northern Colorado’s legacy energy sector will continue with a series of legislative hearings this week and next on the damage inflicting measures.

The NCLA, with its member organizations the Greeley Chamber of Commerce, the Fort Collins Chamber of Commerce, the Loveland Chamber of Commerce with Upstate Colorado, calls on its members and community leaders to engage in the legislative debate with the desired goal of defeating the measures.

This week, we tackle the first of the five most onerous measures, SB 159.  The bill is poised to be considered by a Senate Committee and proposes a ban on oil and gas development by ending the issuance of new oil and gas permits by January 2030. 

If passed, SB 159 will significantly impact the state and northern Colorado’s economy and workforce.  Contact your state legislator to ask him to vote no on SB 159.  Use NCLA’s simple tool to contact committee members and shape the outcome.

SB 159 Key Points:

  1. Ban on New Permits:
    • SB 159 aims to drive the oil and gas industry out of Colorado by ceasing all new oil and gas permits after January 1, 2030.
    • The bill also applies to permits needed for modifying existing wells to increase production.
    • Wells falling under permits issued between the enactment of the bill and January 1, 2030 must begin drilling before the end of 2032.
  1. Industry Impact:
    • Colorado’s oil and gas industry plays a crucial role in the state’s economy.
    • It supports more than 303,000 direct and indirect jobs and contributes over $48 billion annually to the state’s economic output.
    • SB 159 threatens the livelihoods of workers, from drillers and engineers to service providers and suppliers.
  1. Arguments Against SB 159:
    • Economic Consequences:
      • Industry Concerns: The bill’s complete ban on new permits would have severe economic repercussions.
      • Job Losses: Hundreds of thousands of jobs tied to the energy sector would be at risk.
      • Business Impact: Companies operating in Colorado would face uncertainty and potential closures.
    • Energy Security and Reliability:
      • Risk of Dependency: Relying solely on external energy sources could jeopardize Colorado’s energy security.
      • Supply Chain Disruptions: A sudden reduction in domestic production might lead to energy shortages during critical times.
    • Balancing Environmental Goals and Economic Viability:
      • Complex Trade-offs: Striking the right balance between environmental protection and economic growth is challenging.
      • Sustainable Transition: A gradual transition should be achieved toward cleaner energy sources rather than an abrupt ban.
  1. Scheduled Hearing:
    • SB 159 is scheduled to be heard in the Senate Agriculture and Natural Resources Committee on Thursday, March 14.