AGNC Fights Federal Government Over Roan Leases
KREX News Room
GRAND JUNCTION, Colo.- Both local and sate government officials are fighting the federal government over certain oil and gas development.
Members of the Associated Government of Northwest Colorado say the communities within the state shouldn't be held responsible for any financial liability if the undeveloped leases on the Roan Plateau are withdrawn or vacated.
In the largest on-shore oil and gas lease sale in the history of the country, over 54,000 acres on the Roan Plateau were sold to private interests for $114 million, with the state collecting $56 million from that.
“The federal government, what we are saying is, don’t come back to us now after you have given us the money,” said Garfield County Commissioner Mike Samson. “You need to hold us harmless because in good faith, we took that money and spent it in participation for these energy impacts.”
“It sends a bad signal to the energy companies,” said Mesa County Commissioner John Justman. “We have no certainty. We could bid leases but we don’t know. It’s a long process when they make the bids but 10 years, 15 years down the road, they change that. That’s just bad business.”
The AGNC have sent a letter to Interior Secretary Sally Jewell, and are hoping to also get support from Governor John Hickenlooper on this matter.