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Testimony before the United States Senate, Environment and Public Works 

Committee, Clean Air and Nuclear Safety Subcommittee

William C. Allison, Director, Air Pollution Control Division, Colorado Department 

of Public Health and the Environment

June 19, 2012

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Good morning. Mister Chairman, members of the Committee, my name is Will Allison. 

I am the Director of the Colorado Air Pollution Control Division. Thank you for this 

opportunity to provide our perspective on the responsible development and regulation of 

oil and gas resources. I am here today to offer comments supportive of EPA’s recently 

finalized oil and gas rules, and to describe Colorado’s extensive experience with oil and

gas development and regulation.

Colorado has a long history of oil and gas development. Our first well was drilled in the 

1860’s. Development techniques have advanced greatly since then. Hydraulic fracturing 

of oil and gas wells in Colorado began in the 1970’s, and continues to evolve and 

improve. Hydraulic fracturing is now standard practice for virtually all oil and gas wells 

in Colorado, and across much of the country. As of 2009, Colorado ranked fifth in 

natural gas production and tenth in oil production. Today, Colorado has over 45,000 

active oil and gas wells. We foresee continued and steady growth in this industry sector. 

For example, thousands of more wells are planned in the Niobrara formation, which 

extends from El Paso County south of Denver, north to the Wyoming border.

In addition to abundant oil and gas resources, Colorado also has a thriving recreational, 

resort and tourist economy. Colorado’s clean air and clear streams, wildlife, majestic 

Rocky Mountains, and the parks and wilderness areas are an essential part of our 

economy and our identity.

Oil and gas are an important source of domestic energy for our state and our nation. The 

industry provides good-paying jobs and needed tax revenues. That is good news. Our 

job is to help ensure oil and gas development does not result in bad news for public 

health and the environment, and to help strike a responsible balance between 

environmental protection and energy development. 

Colorado has been at the forefront of regulating air emissions from oil and gas operations

for many years, and has a comprehensive regulatory framework. Similar to other oil and 

gas producing states, Colorado provides multiple state agencies with different authorities 

to regulate industry operations. The Colorado Department of Public Health and 

Environment and the Colorado Department of Natural Resources maintain separate but 

complementary oversight of industry operations. Colorado’s Air Quality Control 

Commission has regulations to address emissions from tanks, engines, compressors, and 

associated equipment. Colorado’s Oil and Gas Conservation Commission has regulations 

pertaining to such issues as well completions, odors, noise, and drill rig setbacks. Many 

improvements to Colorado’s oil and gas regulations were adopted in the 2007-2010 
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timeframe, and several of these regulations are reflected in EPA’s new rules.

Colorado’s regulatory agencies regularly confer on matters within their areas of expertise, 

including natural resources, air quality, water quality, and wildlife issues. Colorado

regularly reviews and seeks enhancements to its oil and gas programs. Recently, this 

included a favorable third-party review of Colorado’s oil and gas rules by a national 

oversight group, adoption of the country’s most comprehensive fracking fluid disclosure 

rules, and creation of a state task force to discuss state and local jurisdictional issues in 

the oil and gas arena. The oil and gas industry continues to thrive in Colorado under our 

comprehensive regulatory programs. 

EPA issued its oil and gas rules in April 2012. The rules will reduce emissions of such 

harmful pollutants as volatile organic compounds, sulfur dioxide, and air toxics such as 

benzene. The rules also have the co-benefit of reducing greenhouse gases such as 

methane. Because EPA’s new rules are issued under the Clean Air Act, this will require 

some changes in our state agency responsibilities.

EPA’s rules are largely based and build upon rules that have been successfully 

implemented in several oil and gas producing states, including Colorado. The rules 

promote proven technology and best practices that are already being used by many 

Colorado operators. Colorado supports EPA’s efforts to provide cost-effective emission 

reductions for the nation’s oil and gas industry. Colorado has consistently supported the 

responsible and balanced development of natural resources. The federal rules will 

provide a level playing field and certainty to industry nationwide. States will retain the 

right to be more stringent than EPA’s rules, if they desire.

One of the central components of EPA’s rules is “green” or “reduced emission” 

completions of hydraulically fractured wells. Green completions can significantly reduce 

emission of pollutants such as volatile organic compounds and hazardous air pollutants. 

When a company completes a fractured well without best operational practices, the water, 

chemicals, sand, and related air emissions are vented to the atmosphere. This can go on 

for several days. Green completions capture this material, much of which can be reused. 

Green completions also significantly minimize emissions to the environment. 

The EPA has concluded that in most instances green completions are highly cost 

effective. We agree. Colorado already has rules requiring green completions where 

technically and economically feasible. Many operators routinely utilize green 

completions on all of their wells in Colorado.

Many Colorado operators also already use other practices set forth in EPA’s new rules. 

This includes the use “low” or “no bleed” valves, which emit less pollution than “high” 

bleed valves. Switching the valves out is as simple as changing a spark plug. We have 

found that the controls in EPA’s rules are cost effective, and that industry can quickly 

recoup its costs, as companies capture and then sell natural gas that would otherwise be 

vented to the atmosphere.
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The tremendous growth of oil and gas industry in Colorado and other states presents 

tremendous opportunities and challenges. EPA’s rules include the first federal air 

standards for natural gas wells that are hydraulically fractured, along with requirements 

for several other industry sources of pollution that have not been regulated at the federal 

level. The rules are an important tool to complement the unprecedented success and 

growth of America’s oil and gas industry. Tens of thousands of oil and gas wells already 

exist in individual states, and EPA estimates that nationally, approximately 11,000 more 

wells will be fractured annually. As thousands of additional wells are drilled, and 

associated infrastructure is built to service these wells, it is important to have cost 

effective emission controls in place to address the individual and cumulative impacts of 

these sources. For example, despite the growth of oil and gas emission sources in 

Colorado, over the past decade we have seen decreases in the levels of many organic 

pollutants associated with oil and gas operations, including ethane, propane, benzene and 

toluene.

As another example, many areas of the nation, including the Denver metropolitan area, 

are not currently meeting EPA’s health-based ozone standard. Oil and gas operations are 

a significant source of VOC emissions, which in turn contribute to ozone formation. We 

estimate that almost 40% of anthropogenic VOC emissions in Colorado’s ozone nonattainment area are related to oil and gas operations.

It can be challenging for businesses to come into or expand their operations within nonattainment areas. That is one reason why Colorado already has more stringent rules in 

our ozone non-attainment area, and several oil and gas companies already use practices 

that go beyond our existing rules. Sound and cost-effective oil and gas practices are thus 

important to our efforts to maintain and improve air quality, while supporting a rapidly 

growing industry sector. 

With the growth of the oil and gas industry, it is important for state agencies and industry 

to work diligently to catch up and keep up with the growth. The oil and gas industry now 

accounts for approximately 50% of the air permit applications received in Colorado. Oil 

and gas applications have almost doubled in recent years and, as previously noted, we 

expect further growth. We have created a separate unit within our agency devoted 

exclusively to oil and gas permitting and compliance issues. Colorado has devoted 

considerable resources to understanding and regulating this industrial sector. Our 

agency received approximately 3,360 permit applications from oil and gas sources alone 

in 2010. These permits cover equipment such as wellheads, compressor stations, natural 

gas processing plants, wastewater treatment and disposal facilities, and natural gas 

storage facilities. Through the processing of these permits, the Division has developed 

extensive experience with oil and gas operations.

It will be important for states to have sufficient field personnel to assist with compliance 

with the new rules. This is particularly true as, in addition to the volume, drilling activity 

often occurs in remote areas with limited advance notice. Most oil and gas companies 
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work very hard at environmental compliance, and some go beyond applicable standards. 

Regulatory agencies must continue to work with industry to ensure widespread and 

regular compliance. EPA’s rules will place additional responsibilities upon state agencies 

already operating under resource constraints. We support continued and adequate 

Congressional funding to ensure that EPA and the states can effectively implement these 

important regulations.

Hydraulic fracturing has been utilized for decades, but it is new in many parts of the 

country. Even where it is not new, it is now deployed commonly as part of natural gas 

development. While hydraulic fracturing and directional drillings result in a smaller 

environmental footprint at the well pad, the drill rigs can be onsite much longer, and the 

practices raise their own environmental challenges. We are increasingly hearing 

concerns about the potential impacts of oil and gas development on public health and the

environment, including questions about emissions and odors. Comprehensive rules such 

as these are an important tool for addressing community concerns regarding the potential

impacts of oil and gas operations. 

Colorado believes that oil and gas activities are most effectively regulated at the state 

level. It is important that oil and gas development occur in an environmentally 

responsible manner, recognizing the unique geologic, atmospheric, and aquatic resources 

of each state. EPA’s rules build on proven and cost-effective technologies that have

already been implemented by several states. The rules provide a comprehensive baseline 

and framework for all states, particularly those jurisdictions where oil and gas activity 

may be relatively new. They also provide a standardized program for oil and gas 

exploration on federal lands, including Indian lands within state boundaries where the 

federal government may have primary jurisdiction.

In conclusion, Colorado supports EPA’s rules and plans to incorporate the new rules into 

our air quality program. The rules are an important step forward in our efforts to provide 

clean air while promoting economic growth. We will continue to look for opportunities 

and take appropriate action to ensure that our regulatory programs are protective, costeffective and efficient.

Thank you for the opportunity to speak with you today.