Davis Graham & Stubbs LLP DGSLAW.COM NEW COLORADO AIR QUALITY REGULATIONS FOR THE OIL AND GAS INDUSTRY – HAS COLORADOGOTTEN IT RIGHT? ROCKY MOUNTAIN LAND USE INSTITUTE UNIVERSITY OF DENVER -STURMCOLLEGE OF LAW JOHN R. JACUS DAVIS GRAHAM & STUBBS LLP MARCH 14, 2014
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Davis Graham & Stubbs LLP
DGSLAW.COM
NEW COLORADO AIR QUALITY REGULATIONS FOR THE OIL AND GAS
INDUSTRY – HAS COLORADO GOTTEN IT RIGHT?
ROCKY MOUNTAIN LAND USE INSTITUTE
UNIVERSITY OF DENVER - STURM COLLEGE OF LAWJOHN R. JACUS
DAVIS GRAHAM & STUBBS LLP
MARCH 14, 2014
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DISCLAIMER – MY PERSONAL VIEWS
� Not speaking for any specific clients, trades
associations or for my firm.
� Views expressed are my own, not attributable
to any DGS clients, or the firm.
� Simply sharing perspectives of an advocate for
more workable and cost-effective regulations
in AQCC rulemakings for ozone since 2004.
� Thank all clients with whom I’ve worked.
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DID COLORADO GET IT RIGHT?
� In many ways, yes it did.
� In some ways, it could have done better (not
quite “right”).
� As was stressed to the Commission, these are
long-term challenges, so there will be
opportunities to revisit these issues, and the
new requirements, with benefit of experience.
� Continual reassessment - an EMS principle
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THE RIGHT STUFF
� A lengthy stakeholder process.
� A commitment from staff to meet frequently
with all stakeholders.
� Staff’s willingness to seek additional time from
the Commission, to allow for more progress.
� A willingness to revise concepts and
approaches taken in early strawman draft
proposals based on thoughtful dialogue.
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THE RIGHT STUFF (CONT.)
� A flexible Storage Tank Emissions Monitoring
(STEM) plan requirement
� A tiered leak detection and repair (LDAR)
requirement, based on amount of production
� Important exceptions to absolute
requirements, for safety, maintenance,
operational reasons
� Commission direction for further study
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THE NOT QUITE RIGHT STUFF
� “Shall not vent” vs. “minimize venting to maximum extent practicable” – tanks must vent
� State-wide application, even where oil & gas production are in decline, O3 in attainment
� Cost of rules underestimated, especially the impact on small operators, marginal wells
� Addressing “perceptions” in these rules without addressing the validity of those perceptions
� Creates unrealistic expectations, e.g., “Zero Tolerance” for CH4 emissions, or blaming oil and gas for ozone levels, so broader change unlikely