Colorado Real Estate Journal - January 21, 2015
A 2,000-foot setback from structures on oil and gas well locations would result in as many as 49,000 fewer jobs in Colorado between 2015 and 2040, according to a new study. The increased setback would also cause Colorado’s gross domestic product to decline by as much as $6.4 billion annually and personal income would decline by as much as $4.4 billion annually in that same time period, the study finds. This analysis was completed in September and was based on price and production estimates at that time. “A 2,000-foot setback would significantly impact Colorado’s families,” said Earl Wright, chairman of the board at Common Sense Policy Roundtable. “The study suggests that an average family of four could lose $3,344 of income annually.” The study focuses on an often-discussed option for implementing a setback in Colorado, and an option likely to be discussed formally as the Governor's Oil and Gas Task Force wraps up its deliberations early this year. In 2014, Tom Clark, CEO of the Metro Denver Economic Development Corp., offered to analyze the economic impacts of any proposals generated by the task force. “This information should help the Governor’s Task Force understand the financial impact such decisions would have on the average Colorado family,” said Clark. “Some have proposed well setbacks nearly seven football fields long. This study illustrates the economic impacts of making that choice.” The study was conducted by the Business Research Division of the Leeds School of Business at the University of Colorado Boulder on behalf of a partnership between the Common Sense Policy Roundtable, the Denver South Economic Development Partnership and the Metro Denver Economic Development Corp. The full study can be reviewed and downloaded at http://commonsensepolicyroundtable.com/study-oil-and-gas-setbacks.