Colorado Governor John Hickenlooper took a hard stance against an initiative aimed at restricting an oil and gas drilling campaign which would generate $30billion a year for the state.
The political leader committed to doing “whatever it takes” to block the proposed initiative.
“These measures risk thousands and thousands of jobs and billions in investment and hundreds of millions of dollars in state tax revenue,” he said
The proposed changes include mandating wells be 2,000 feet away from nearby structures and allowing communities more control over where drilling takes place.
The issue of fracking has taken centre stage in the state where five communities previously voted to ban the practice.
The governor has been actively working with energy companies, lawmakers and business groups to reach a comprise in the run-up to the November ballot.
Opposition to the 2,000ft ban said the move would essentially stifle all fracking activity in the state. State regulations currently state wells must be 500ft from occupied buildings.
“Over the past several months, we have worked with a bipartisan coalition to explore a legislative compromise that would avoid a series of expensive and divisive ballot initiatives surrounding oil and gas development in Colorado,” Hickenlooper said in a statement on July 16.
“We have not been able to secure the broader stakeholder support necessary to pass bipartisan legislation in a special session.”
Supporters of the initiative must gather and submit 86,105 signatures by August 4 for it to be included on the November 4 ballot.
US Representative Jared Polis, who backs the proposed changes, said: “My one goal is to find a solution that will allow my constituents to live safely in their homes, free from the fear of declining property values or unnecessary health risks.”
Anadarko Petroleum Corp., Whiting Petroleum Corp. and Encana Corp., which are drilling in the Denver-Julesburg Basin, vowed they would spend $50million to fight the measures.
Encana’s vice president of government relations Matt Most said the outcome would set the pace for the rest of the nation.
“Colorado is at the heart of this national debate,” he said.
“The rest of the country is going to be looking here and if we lose it will embolden challenges elsewhere.”
Colorado is the nation’s sixth-largest natural gas producer and ninth-biggest oil producer.