CU-Leeds study predicts bleak economic outcome for 2000-foot setback

Bakken.com reports on CU-Leeds study.

CU-Leeds study predicts bleak economic outcome for 2000-foot setback
Bakken.com; January 12, 2015 By Maureen McCullen | Shale Plays Media

Colorado’s gross domestic product could suffer a $4.4 billion loss in the next five years if the state enacted a proposed oil and gas development setback, according to a study released Thursday by University of Colorado Leeds School of Business.

The state’s current setback requires oil and gas companies to stage development at least 500 feet away from other structures. Democratic Rep. Jared Polis proposed a measure for the November 2014 ballot that would boost the setback to 2,000 feet—a distance the study said could devastate Colorado’s gas and oil industry.

Researchers from CU-Leeds analyzed two potential effects of the setback based on gas industry estimates: a 25 percent and 50 percent drop in new oil and gas activity…