American Oil and Gas Reporter - January 2015 - 18

IndustryDigest
Colorado Suing USFWS
For Listing Decision On
Gunnison Sage Grouse
DENVER-According to published
reports, the Colorado Attorney
General's office has notified the U.S.
Fish & Wildlife Service that the state
intends to sue the agency about its
decision to list the Gunnison sage
grouse as threatened under the
Endangered Species Act.
According to the Denver Business
Journal, in January 2013, USFWS
proposed to list the bird as endangered.
However, in November 2014, the
agency announced it would list the
species as threatened, after which
Governor John Hickenlooper reported
the state would file suit.
Colorado Attorney General John
Suthers in mid-December issued the
official notice of intent to sue USFWS
and the U.S. Department of the Interior,
reports claim. The state is required to
give a 60-day notice, and could file a
formal complaint in February, if not
sooner.
USFWS cited declining and
fragmented habitat among its reasons
for listing the species as threatened.
However, the state alleges, the agency
based its listing decision on improper
analysis and failed to rely on the best
science available, press accounts say.
The letter contends USFWS did not
give sufficient weight to on-the-ground
conservation efforts and also failed to
consider the designation's economic
implications.
Colorado Assistant Attorney General
Lisa Reynolds wrote the official notice
of intent to sue to Secretary of the
Interior Sally Jewell and USFWS
Director Daniel Ashe, reports confirm.
"In making the listing decision,"
Reynolds' letter suggests, "USFWS
improperly analyzed the required
factors to make its determination that
the Gunnison sage grouse was
threatened; failed to rely on the best
available science; and failed to give
adequate weight to the extensive
conservation efforts undertaken by state
and local governments and private
landowners."
According to media reports, the
letter states that Colorado has invested
almost $40 million in protection efforts,
including voluntary conservation plans,
research, land acquisition, and
18 THE AMERICAN OIL & GAS REPORTER

improving the bird's habitat. Between
the state's efforts and federally managed
land, about 75 percent of the Gunnison
sage grouse's habitat has "some level of
protection," the letter claims.
Reports say Reynolds also asserts the
federal agency "failed to consider the
economic impacts of the designation,
and failed to demonstrate that currently
unsuitable habitat included in the
designation is essential to the
conservation of the species." Ì

COGA Files Complaint
Against Broomfield Ban
DENVER-The Colorado Oil & Gas
Association has filed a complaint for
declaratory judgment to invalidate the
city and county of Broomfield's
moratorium on hydraulic fracturing.
According to the association, the
measure passed by 20 votes in
November 2013 and imposed a fiveyear ban on extracting oil and gas with
fracturing. It also prohibits storing or
disposing of any associated waste
within its jurisdiction.
COGA President Tisha Schuller
notes the association has been fighting
three similar measures across the state,
and Colorado district courts have ruled
that state law pre-empts local fracturing
moratoria. In each case, she says, the
courts have ruled in favor of COGA's
claims, striking down voter-approved
bans in the Colorado municipalities of
Fort Collins, Lafayette and Longmont.
The association says the Broomfield
district court previously ruled that the
measure also violated the prohibition
against ex post facto laws because it
pertained to a pre-ban agreement
between Broomfield and an operator. In
that case, COGA says, the court ruled
the ban could not be applied
retroactively to disallow oil and gas
operations under the negotiated
agreement.
"Colorado has among the most
stringent and well-constructed oil and
gas regulations in the nation," Schuller
affirms. "And we have a court system
that respects the rule of the law and
rights granted through contractual
agreements.
"For the last three years, COGA has
worked diligently to create operating
agreements with local jurisdictions that
respect the law and meet the needs of
local communities," she continues. "It is

my sincere hope that we can resolve the
lawsuits so that we can focus on the
important and successful work of
engaging with our communities." Ì

BOEM Raises Limit
On Oil Spill Liability
WASHINGTON-According to the
National Ocean Industries Association,
the Bureau of Ocean Energy
Management has increased the liability
limit for damages that are related to oil
spills.
NOIA says the damages cap for
offshore operations increases from $75
million to $134 million, effective
January 2015. This increase is based on
the Consumer Price Index's inflation
calculations, and is consistent with
recommendations from the National Oil
Spill Commission, the association
confirms.
NOIA clarifies the increase applies
to facilities handling oil and gas in
federal and state waters seaward of the
coastline. The liability cap applies to
damages from oil spills, but does not
cover other liabilities such as oil spill
removal costs, which remain unlimited.
According to the bureau, the liability
cap is set by statute and may be
adjusted only to address significant
inflation. The adjustment to $134
million represents the maximum
increase that may be implemented
absent new legislation, BOEM states.
"The bureau is taking an important
step to preserve better the 'polluter
pays' principle of the Oil Pollution Act,
and to further promote safe and
environmentally responsible
operations," Acting Director Walter
Cruickshank says. "This is the first
administrative adjustment since OPA
was enacted in 1990. It is needed to
keep pace with inflation, which has
increased 78 percent since then." Ì

Obama Blocks Drilling
In Alaska's Bristol Bay
WASHINGTON-President Barack
Obama has designated Bristol Bay off
limits to consideration for oil and gas
leasing, which he says will safeguard
the Alaskan community known for its
commercial fishing and tourism.
According to the White House,
Bristol Bay provides 40 percent of
American Oil and Gas Reporter - January 2015

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