Regulating relationships: memorandums of understanding and unconventional energy development in suburban Colorado

Abstract

The rapid expansion of hydraulic fracturing has led to significant political upheaval, with multiple policy solutions proposed by different stakeholders. One strategy that is growing in prominence in Colorado is the Memorandum of Understanding (MOU), which proposes a set of Best Management Practices (BMPs) to which a company must adhere in exchange for expedited permitting approval. Ideally, these agreements foster better company-community relations by protecting the community while saving the well operator time and money. The town of Erie, in 2012, adopted MOUs with two operators to address growing community concern about the safety and environmental impacts of hydraulic fracturing, and the community has since renegotiated a new agreement with one operator. The ongoing negotiation process has been significantly impacted by a high profile well drilled near residences that exceeded state noise regulations and raised safety concerns in the nearby neighborhood. My research examines the MOU negotiation process and its impacts on governance methods and citizen relations with industry. It draws on interviews with government officials and key stakeholders, as well as coding and analysis of public commentary in Town Hall meetings, to assess perceptions of the effectiveness of MOUs and the governance strategies used to construct them. This research provides an initial analysis of the impact of hydraulic fracturing on an exurban Colorado community and the effectiveness of MOUs as a policy strategy for reconciling the interests and concerns of residents, local governments, and corporations.