When an oil company approached Susie Magnuson to drill on her family鈥檚 300-acre farm in Eaton in 2012, she jumped at the chance. Selling her mineral rights opened up a new source of income that helped the farm stay afloat and even expand.
There was interest to drill even more wells until this summer, she said, when Colorado unveiled new rules that would double the distance oil and gas wells need to be from homes, schools and other buildings where people spend their time.
The proposed distance鈥�2,000 ft.鈥攚ould be the largest buffer, or 鈥渟etback,鈥� in the country, beating out other oil-producing states like California, Texas and Pennsylvania. Magnuson worries it would also mean any new wells on her property would have to go in the middle of her cornfield.
鈥淎nd we couldn鈥檛 do that because we farm,鈥� Magnuson said. 鈥淲e absolutely could not do that.鈥�
For years, setbacks have been a polarizing issue in Northern Colorado, where the majority of the state鈥檚 oil and gas drilling takes place. While viewed by some as a valuable safety tool, the distance requirements are also seen as an impediment to energy development by industry and those who profit from it.
Most efforts to significantly raise the statewide setback distance in the past have failed. In 2018, voters rejected a ballot measure aiming to create a statewide half-mile setback after a well-funded industry campaign warned it would cause devastating job loss.
This fall, a setback increase is on the table again as the Polis administration works to pass a wave of new drilling restrictions aimed at protecting public health and safety. The changes stem from the landmark oil and gas legislation, Senate Bill 181, which Colorado lawmakers passed last year.
Under the new rule, which is still in , companies would be banned from drilling any closer than the 2,000 ft. setback distance unless they qualify for one of four exceptions designed by the state鈥檚 oil regulator, the Colorado Oil and Gas Conservation Commission:
- The well location is already within an approved comprehensive drilling plan.
- Specific equipment, including wells, tanks, separation equipment or compressors proposed are located more than 2,000 ft. from buildings.
- The commission finds after a hearing that companies have taken 鈥渟ubstantially equivalent鈥� protections for public health and safety.
- A property owner or tenants sign a special waiver agreeing to have wells drilled closer than 2,000 ft.
Jeff Robbins, the COGCC鈥檚 chair, said the last rule would potentially apply to families like Susie Magnuson鈥檚 that want to have drilling closer to their homes.
鈥淭hese off-ramps should be used and should result in snowflakes that are special that will get approval,鈥� Robbins said
It鈥檚 unclear how big of an impact the new setback, if approved, would have on future drilling projects in places with growing populations, like Weld and Larimer counties. commissioned by oil and gas companies have shown that large swaths of land would be cut off from drilling activity if the state passes a larger setback distance.
The industry meanwhile is in the midst of one of its worst oil price slumps in decades due to the coronavirus pandemic and weak demand across the globe. The bust has forced many companies to scale back operations, layoff workers and in extreme cases declare bankruptcy.
Lynn Granger, executive director of the American Petroleum Institute鈥檚 Colorado chapter, said the 2,000 ft. setback, which is roughly equivalent to 12 football fields, would make it 鈥渢hat much harder鈥� for the state鈥檚 industry to recover and continue growing.
鈥淲e don鈥檛 have certainty or clarity that this industry needs,鈥� Granger said.
Adding another layer to the debate is the lack of scientific consensus on safe drilling distances.
Several studies have looked at potential links between oil and gas operations and negative health impacts on people, but none have gone as far as suggesting what a 鈥渟afe鈥� setback distance is.
For example, a published by the Colorado Department of Public Health and Environment in October 2019 found exposure to some chemicals used during the drilling process could cause short-term headaches, dizziness and respiratory irritation as far as 2,000 ft. away.
Others have found that the drilling process creates , smells and traffic in surrounding communities.
The lack of a large body of science leaves policymakers with the difficult decision of deciding what constitutes a safe setback, said Dr. Lisa McKenzie, a public health researcher at the University of Colorado Anschutz who specializes in oil and gas issues.
鈥淚t鈥檚 still fairly early for research science,鈥� McKenzie said. 鈥淩esearch is slower than regulation sometimes.鈥�
Still, some residents in communities with a lot of oil and gas drilling say the setback increase is long overdue. In Anthem Ranch, an upscale 55-plus community in Broomfield, residents have filed nearly 500 health complaints about a nearby oil and gas project.
When the drilling started more than a year ago, Mark Koenig said he started feeling his house vibrate. For a period of several months, a noise that sounded like a 鈥淐aterpillar truck鈥� would occasionally rattle through his bedroom as he and his wife tried to sleep.
鈥淚鈥檓 not against oil and gas drilling,鈥� Koenig said. 鈥淚鈥檓 just against oil and gas drilling near residential communities.鈥�
Judy Kelly, another Anthem Ranch resident, said she worries the new regulations contain loopholes that may allow oil and gas companies to continue to obtain permits within the 2,000 ft. setback distance.
She鈥檚 heard from neighbors that even more projects are planned around her community. If they鈥檙e approved, she and her husband may decide to move, Kelly said.
鈥淚 don鈥檛 think we could handle it,鈥� she said. 鈥淭oo scary.鈥�
Back at her farm in Eaton, Susie Magnuson said the new setback favors people who live in more urban communities along the Front Range.
The wells on her property are less than 300 ft. from a swing set her grandchildren play on. Other than the increase in truck traffic, she鈥檚 never felt unsafe.
鈥淲hat happens in rural Weld County is very different from what happens in Longmont or Denver or even Greeley,鈥� Magnuson said. 鈥淚 understand if they want to move facilities back from kids鈥� schools or residential areas, but it鈥檚 not a one-size-fits-all.鈥�
Magnuson said she worries it could also lead to a wave of lawsuits from private property owners if more flexibility isn鈥檛 worked into the rules.
As for a final vote on the new, 2,000 ft. setback, that鈥檚 expected to come in early November. If approved, the changes would go into effect at the start of 2021.
