Energy companies’ requests to be excused from insurance requirements denied
The city requires a spill pollution policy of
It also requires an umbrella insurance policy of at least
Representatives from Magnum Energy and Green River Resources sought a variance from the requirements, claiming their wells were too low-volume to require such a high insurance policy.
Both said their wells produce less than 10 barrels a day.
Their arguments centered on Senate Bill 809, which allows for "reasonable" municipal restrictions on drilling activity but prevents cities from banning oil and gas exploration.
"There's no basis for requiring these burdensome costs on operators," Magnum Energy President
"
City oil and gas inspector
Campbell said that fact is a good argument for why he shouldn't have to pay for so much insurance coverage.
Board member
Board member
Indigenize OU co-founder
"I am pleasantly surprised," she said. "We haven't had a very great track record with the
The companies can appeal the decision, and Campbell said he intends to.
At Wednesday's meeting, the five-member board --
Area resident
"The existence of the site is our issue, not whether it's put 30 meters to the right or to the left. We don't want it, either in our neighborhood or on the planet," he said.
Wilson said she wishes the city could do more to address residents' environmental concerns, but she has been advised by city and legal staff that ordinances on the books go about as far as the city can with SB 809's restrictions.
"Like it or not, we are hamstrung as a municipality with what we can do because of state laws," Wilson said. "I believe [SB 809] is meant to protect the oil companies and the access to the minerals.
"I understand the spirit of wanting to do that at the state level, but it really creates a tough situation for us at the city level to manage these wells within our boundaries without being able to make ordinances to address them.
"I think when the ordinance was written, city staff was as diligent and robust as they could be in creating something they feel can be defended in court."
Wilson said the city can create ordinances, but it's up to administrators to uphold them. Still, she said there are ways the city can exert its will.
"There's nothing in the law that says we have to give you the cheapest or the easiest path," she said. "It just says we can't prohibit. We don't have to make it easy for them. We don't have to make it cheap for them. My goal is to make sure that we hold on to every thread of any ordinance we can enforce."
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