American Oil and Gas Reporter - November 2021 - 33

IssuesUpdate: Colorado Oil & Gas Association
COGA Says Natural Gas
A Real-World Solution
By Del Torkelson
DENVER-It had ingredients for headlines
and media attention: greenhouse
gas emission cuts, job creation and geopolitical
cooperation. Even its sponsors-a
coalition including tribal nations, state
and local government entities and labor
unions-pointed toward widespread cooperation
across numerous interests.
But when the Western States and Tribal
Nations (WSTN) released a report on the
benefits of exporting natural gas in February,
the news barely made a splash, assesses
Colorado Oil & Gas Association President
and Chief Executive Officer Dan Haley.
He says COGA is doing everything it can
to amplify that splash and ensure the report
has long-lasting ripple effects.
According to Haley, the study uses
straightforward math to calculate how
natural gas sourced from the Intermountain
West, transported by pipeline to the West
Coast, and then liquefied and exported to
five Pacific Rim countries would slash
those countries' net life cycle GHG emissions
by as much as 55% if they replaced
coal-fired energy generation.
" For the first time, people can see scientific
data showing what exporting Rockies
natural gas can do for the world, " he
considers. " It really was a pivotal report
that did not get a lot of media play, which
is a shame, because holistic, rubber-meetsthe-road
solutions need more attention if
we are going to have any realistic chance
of addressing global climate change. "
In addition to touting the study, Haley
says COGA has helped facilitate ongoing
conversations among people who can
take Rockies exports from the drawing
board to the real world. One example of
that was COGA's annual meeting, Nov.
10 at the Hilton Denver City Center. The
event not only highlighted the report, but
brought together in the same room a
panel of representatives from entities with
the ability to help make it happen.
" We are using that report as a linchpin, "
Haley describes. " We need to talk about
this and get our heads out of the sand regarding
the false premise of shifting to
100% renewable energy in the near future.
Since technology limitations will not allow
that anytime soon, we need to talk about
pairing renewables with natural gas and
consider the realities of future global
energy demand. That will allow oil and
gas to grow in ways that benefit both the
environment and Colorado production. "
landmark climate change bill, HB 1261,
the Colorado Air Quality Control Commission
is working on a GHG emissions
rulemaking that it plans to finalize before
year's end. Haley notes that will be followed
by a COGCC financial assurance
rulemaking in early 2022.
" For the first time, people can see scientific data showing what
exporting Rockies natural gas can do for the world. It really was
a pivotal report . . . because holistic, rubber-meets-the-road
solutions need more attention. "
-Dan Haley
COGA President & CEO
Cleaner Energy Molecule
An adage says " When life gives you
lemons, make lemonade. " Perhaps an oil
and gas version of that is " When state
policymakers give you an exceedingly
tough regulatory environment, make that
high bar a selling point. "
Although Colorado sits atop the country's
second-largest volume of natural
gas reserves, Haley maintains, it is not
merely the size of its prize that makes
Centennial State production a logical
choice for gas-fired power plants.
Energy molecules produced in Colorado
enjoy a distinct advantage, he argues. Although
Colorado oil and gas companies
already must meet high regulatory standards,
that regime is growing stricter, as state
regulators have spent nearly three years
churning out rules made necessary by SB
181. That landmark legislation was passed
and signed into law in 2019, only months
after Democrats gained total control of the
House, Senate and governor's mansion.
Its provisions expand local governments'
influence over oil and gas development,
reduce the number of industry experts that
must be part of the Colorado Oil and Gas
Conservation Commission, and reword the
commission's responsibilities to put less
weight on economic impacts when making
decisions (AOGR, June 2019, pg. 35).
In response to SB 181 and another
Combined with several other state regulatory
initiatives rooted in SB 181, the
new standards will be particularly high,
acknowledges COGA Director of Communications
and Public Affairs Scott
Prestidge. He reasons that very stringency
and amount of ongoing regulatory work
should convince many policymakers to
leave well enough alone.
" By this time next year, we should
have wrapped up this very comprehensive
soup-to-nuts regulatory process from the
environmental and state health department
standpoint, but also the oil and gas regulatory
oversight standpoint, " Prestidge
suggests. " We have seen extensive, statutorily-required
oil and gas rulemakings
across the board. After three years, they
will have done everything they can do,
so a period of stability should take shape. "
Once Colorado companies understand
what is expected of them, Haley says,
the state should be able to find its permitting
stride. " In 2019, the governor
set a goal to supply the industry with
the stability and predictability it needs
to invest in Colorado, " he recounts. " We
have spent thousands of hours working
with state regulators during the past
two and half years on this process. Colorado
needs a predictable regulatory
and political structure to ensure we can
continue to produce responsibly. "
NOVEMBER 2021 33
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