The URL can be used to link to this page

Browse Search

Home My WebLink About20240507.tiffRESOLUTION RE: EXPRESSION OF OPPOSITION TO SB 24-159, CONCERNING MODIFICATIONS TO ENERGY AND CARBON MANAGEMENT PROCESSES WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, as introduced, SB24-159 would require the Energy and Carbon Management Commission (ECMC) to adopt rules to cease ECMC's issuance of new oil and gas permits before January 1, 2030, including reductions in the total number of oil and gas wells covered by new permits issued in 2028 and 2029, and WHEREAS, Colorado is a major energy -producing state, ranked fourth in the nation for crude oil production and eighth in natural gas production, according to U.S. government data, and WHEREAS, in 2023, Weld County accounted for eighty percent (80%) of the oil produced in Colorado, and fifty-four percent (54%) of the natural gas produced in Colorado, and WHEREAS, in 2023, oil and gas property tax revenue accounted for sixty-five percent (65%) of the revenue paid to Weld County government, its school districts and other local governments, and WHEREAS, according to Timothy J. Considine, President, Natural Resource Economics, Inc., and Professor of Economics at School of Energy Resources, University of Wyoming, as shown in the attached Exhibit "A," SB24-159, if passed, would have very significant adverse impacts on the economy of Weld County from 2028, through 2040, including: A loss of $57 billion in oil and gas production in net present value terms, Annual employment losses greater than $50,000.00, Lost severance, ad valorem, and sales taxes of $5.5 billion in net present value terms from 2028, through 2040, and WHEREAS, in Professor Considine's opinion, SB24-159 would "impose significant economic and fiscal harm on Weld County with no discernable benefit because consumers of oil and gas would be supplied by producers outside of Colorado," and WHEREAS, Colorado is widely recognized as a national leader in developing health, safety and environmental protections for the oil and gas industry operating in Colorado, and WHEREAS, emissions from the oil and gas industry in Colorado have declined more than fifty percent (50%) in the DJ Basin over the past decade, even while production has increased over forty-five percent (45%) during the same period, according to U.S. government data, and WHEREAS, in January 2024, Colorado Governor Jared Polis said, "On the Greenhouse Gas reduction roadmap, the oil and gas sector is overperforming and delivering more emission reductions than what they were scheduled for, so that's helping to make up for other sectors that are lagging," and Cc :gocc(t<F), CTBCEG),c(BB/KK) 2024-0507 BC0058 EXPRESSION OF OPPOSITION TO SB 24-159 PAGE 2 WHEREAS, if passed, SB24-159 would penalize an industry that is vital to Weld County's economic and fiscal well-being and which has been recognized by the State of Colorado as an industry leading in emissions reductions, and WHEREAS, if passed, SB24-159 would harm Weld County's citizens, and WHEREAS, for the above -stated reasons, the Board of County Commissioners opposes SB 24-159 and encourages Weld County citizens to contact their legislators to express opposition to the bill. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board hereby expresses its opposition to SB 24-159 and encourages Weld County citizens to contact their legislators to express opposition to the bill for the reasons stated herein. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 28th day of February, A.D., 2024. BOARD OF COUNTY COMMISSIONERS WELD COUDO ATTEST: d‘ititA) jeleo:4 Weld County Clerk to the Board BY: ' ► l , ) k (uc..K. Deputy Clerk to the Board AP' '4IVED A ' • FORM: County Attorney 2 I ia 17,1 Date of signature: Kev'► Ross, Chair Perry L. Bu • , Pro-Tem Mik Freeman Sc tt K. James 2024-0507 BC0058 Exhibit "A" Fisc M •1 n E, Eco f1 k .rr'f a J• 4 �� ! 1 Rs ic C•Uitv Timothy J. Considine* President Natural Resource Economics, Inc. *Mr Considine is also a Professor of Economics at School of Energy Resources, University of Wyoming The findings summarize in this document are those of the author's alone and do not necessarily reflect the views of Weld County or the University of Wyoming Dramatic Reduction in Oil & Gas Production • Estimated production decline curves from historical data • According to SB24-159 permit restrictions begin in 2028 and no permits beyond 2030 • Analysis assumes new wells ramp down to zero over three years • Annual lost wells = 600 • Chart on right reflects the cumulative impacts of SB24-159 has on production (a well not drilled today results in lost production today and in future years) NI `tl Furl:Lunt A\ti,l ( trotv Oil (i;ss I'rinittctiott Iron; Slit -4 -lit) 2028 2029 2030 Economic Impacts of SB24-159 on Weld County 2011 2032 �It1 2034 2035 2036 2037 2038 2039 2040 -}t.oct Oil Production —Lost Gas Production II h 02 (1.0 2 Big Hit to Weld's Tax Base ' , ib t, \r1 tb.t! !:!1 kC'II',ic bruin s•Iil4-,eta S1.000 S900 $800 ;11a $700 $600 A $500 $400 $300 S200 $100 $I) $213 $89 $91 $33 $409 1114 $78 $520 $146 $275 $100 $614 $174 $321 $117 $145 $132 I Si'4 174 $157 S174 5174 r 1 S174 r a 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2010 So trance Tines Ad S alarem Taus Sales Ines • Cumulative loss in oil and gas production significantly erodes Weld County's tax base • Assumptions • 2% effective severance tax rate • 5.5% ad valorem tax rate • 2.9% sales tax rate • Sales tax losses are from lost investment in drilling & completion Economic Impacts of SB24-159 on Weld County Weld County Job Losses • Lost investment and production has adverse, multiplied impacts on employment • Assumes 6 jobs for every $million in lost investment • Conservative assumptions • Overall economic impacts are likely larger I0 0 10 23 30 35 Lost Jobs in Weld County from SB24-159 40 0 44 47 51 54 alt 57 60 2019 1030 1031 2032 2033 MU 2115 2036 in 2138 2139 63 Economic Impacts of SB24-159 on Weld County 4 Summary © S824-159 has very significant adverse economic impacts on the economy of Weld County from 2028 through 2040 ® A loss of $57 billion in oil and gas production in net present value terms • Annual employment losses greater than 50,000 ® Lost severance, ad valorem, and sales taxes are $5.5 billion in net present value terms from 2028 through 2040 ® SB24-159 imposes significant economic and fiscal harm on Weld County with no discernable benefit because consumers of oil and gas would be supplied by producers outside of Colorado Economic Impacts of SB24-159 on Weld County 5 Hello