Industry criticizes DNR’s use of Canadian study

Posted by egable on May 29th, 2008 filed in Energy development

The Colorado Oil and Gas Association is accusing the Colorado Department of Natural Resources of misusing a 2007 study by the Canadian-based Fraser Institute that named Colorado as one of the most attractive places for upstream petroleum investment.

Although the study ranked Colorado above every other state, as well as most countries around the world, COGA said the study says nothing useful about the effects of the potential overhaul of the state’s oil and gas regulations by the Colorado Oil and Gas Conservation Commission. COGA’s economic impact analysis indicates that the additional cost per well resulting from the COGCC draft rules ranges from $60,000 to $600,000, depending on the location of the well and whether it is subject to wildlife timing restrictions.