Lawmakers: Colo. withheld enforcement rules costs

The Department of Natural Resources told Colorado lawmakers in 2007 that developing state oil and gas regulations could cost less than $7,000 the first year, while an internal department estimate put the cost of implementing the regulations at more than $1 million, according to documents obtained by The Associated Press.

The $7,000 estimate appeared in a February 2007 financial statement given to lawmakers as they deliberated the cost of enforcing a new regulatory regime affecting the energy industry.

…According to documents obtained under the Colorado Open Records Act, Natural Resources drew up a “Plan A” and a “Plan B” outlining costs of the program. It provided Plan B to lawmakers, which estimated total funding for the Colorado Oil and Gas Commission to enforce the rules at $6,840, encompassing working expenses. It did not foresee hiring of any staff to enforce the rules. The commission oversees the industry.

Plan A estimated the department would need to hire 12 employees at a cost of $1.2 million in fiscal year 2007-2008. it would include hiring a liaison to the state Department of Health, an engineer, four compliance officers, three computer experts, a research scientist and a technician, with salaries of up to $100,000 a year. The administration also planned to set aside another $1.8 million for fiscal year 2008-2009 if the commission had to begin enforcing new drilling rules.

AP