Jun 25, 2007 9:48 am US/Mountain
Supporters Claim Leases Could Bring Up To $1B
Supporters Want Oil, Gas Leases On Roan Plateau
GRAND JUNCTION, Colo. (AP) ―
Supporters of oil and gas leasing on the scenic Roan Plateau say they could bring in hundreds of millions of dollars needed to deal with impacts already being felt from the industry's expansion.
"If that gets dropped in our lap, it could solve a lot of problems," said Rep. Al White, R-Winter Park, said of the revenues. He said if current lease rates were paid, up to a $1 billion could be generated, but the industry says that does not seem likely.
Rep. Kathleen Curry, D-Gunnison, said the projections are not a sure thing. "The dollar numbers are coming from the industry and are based on a fairly high number per acre, so the dollar amounts aren't really known," told the Grand Junction Daily Sentinel.
Curry added that even if the dollar amounts were as high as $1 billion, it probably would not change her views on Roan leasing. "I think there are other places they can drill, and the state will make money on the royalties in those other areas," Curry said.
Greg Schnacke, executive vice president of the Colorado Oil and Gas Association, said he thinks $500 million is closer to the amount likely to be paid. He environmental restrictions imposed by the Bureau of Land Management will lower the value of the leases. "This project isn't going to be for everybody," Schnacke said.
A state-funded study released last week said the oil and gas industry contributed nearly $23 billion in direct and indirect economic benefits to the state in 2005.
Two Democratic Congressmen, Mark Udall and John Salazar, say they hope to place a moratorium on drilling on the Roan.
"It strikes you that if the state's looking for additional revenue, it's clearly there," Colorado Petroleum Association President Stan Dempsey said. "They'll have to balance the environmental and socio-economic issues with their desire to spend more money."
The money from leases is divided up 50-50 between the federal government and state and local governments.
(© 2007 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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