Colorado High Court Strikes Down Hydraulic Fracturing Bans

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The Colorado Supreme Court May 2 blocked efforts by some Front Range cities to impose limits, moratoriums, and bans on energy development through hydraulic fracturing, ruling the state holds ultimate regulatory authority and trumps local legislation, which the court characterized as “invalid and unenforceable.” The court rejected a five-year moratorium on hydraulic fracturing passed by the city of Fort Collins, concluding the measure operationally conflicted
with state law and was preempted by state rules that allow some drilling in neighborhoods. Justices also overturned Longmont’s 2012 ban on hydraulic fracturing and disposal of waste in the city because “it materially impedes” state authority.

The rulings supported Gov. John Hickenlooper, who backed the energy industry. Colorado joined lawsuits against Longmont and Fort Collins. “We appreciate the Supreme Court’s guidance on balancing private property rights and local government jurisdiction of oil and gas operations in Colorado,” Hickenlooper said. “Striking the right balance is not only important to public health and safety, it has enormous implications for our state’s economy.” The western Democrat added that “collaboration is better than litigation, and careful regulation is better than legislation to strike balance. We’ll continue to work creatively and energetically with communities and industry to ensure our world-class
environment is protected while remaining a place that is welcoming to business and jobs.”

Colorado Petroleum Council executive director Tracee Bentley welcomed the high court’s decision to uphold the state’s primacy in overseeing oil and natural gas permitting, emphasizing the decision curtails arbitrary bans on hydraulic fracturing that could cost local jobs, deprive state and local governments of needed tax revenues, and limit access to critical energy resources. “Today’s decision protects private property rights, which are a main driver for the energy renaissance in this country,” she said. “The U.S. was counted out as an oil and natural gas superpower, but with states like Colorado leading the way, the U.S. defied the odds to
become the world’s largest producer of natural gas and a world leader in crude production.”

Colorado has emerged as a leading oil and natural gas producer. While companies wish to increase production, residents are launching ballot campaigns to amend the state constitution to give locals more power to regulate hydraulic fracturing. Meanwhile, environmental and homeowner groups were disappointed by the court’s ruling, as were some lawmakers. U.S. Rep. Jared Polis (D), who represents Colorado’s second district, asserted the Supreme Court decision was “a blow to democracy,” although local land use rules can coexist with state regulations. “Now that the law has been interpreted, it’s up to the state legislature or the people of Colorado to act to protect our neighborhoods and homes,” Polis told the Denver Post.

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