Arapahoe County moves to adopt intergovernmental agreement for oil-and-gas inspections

Arapahoe County staff told commissioners they have negotiated an intergovernmental agreement (IGA) with the state's energy commission that would allow a county-hired inspector to conduct oil-and-gas inspections under the state's authority.

Jason Reynolds of public works said the agreement would mean the county inspector 'will be acting somewhat as the state inspector for purposes of inspections in Arapahoe County' and described coordination and training benefits. Martin Lohman, the county energy program representative, said the program launched Aug. 6 and has inspected 149 of 214 wells so far and billed about $366,000, of which roughly $133,000 has been collected; about $231,000 remained outstanding.

County attorney staff flagged a notable contractual term. 'The inspector shall represent and warrant that they will comply with the DNR's ethics policy,' counsel summarized, and advised the board that subjecting a county employee to another agency's ethics rules is unusual and raises questions about how a breach would be treated. Matt Hader, of the county attorney's office, said the clause is unusual but that staff believe the agreement otherwise accomplishes the board's goals.

Commissioners pressed staff about enforcement authority. County attorneys said the IGA authorizes the county to inspect under the state's authority but does not assign the state's enforcement powers to the county; if a state-level violation is found, the county reports it to the state agency, which retains citation and enforcement authority. Staff said routine minor methane leaks found during inspections have typically been fixed on site and documented (flare-camera photos and video), and that one small, contained viscous-oil spill is in the process of being applied for the orphan-well list and slated for cleanup.

The board gave informal assent by 'thumbs up' to move forward with the IGA pending any final clarifications on the ethics-language implementation. Staff said the agreement can be terminated on 30 days' written notice if the county determines it is not beneficial.