Upcoming Proposition 112 Ballot Set to Devastate Colorado Economy
Mention fracking and it often conjures up visions of environmental disruption – hence Proposition 112 will appear before Colorado citizens for a vote on November 6th. Like any vote around emotional issues like pollution, misinformation (fake news, some would call it) can result in economically calamitous decisions. In a nutshell, Prop. 112 calls for a “yes” or a “no” for a mandate that requires any new oil and gas development projects to be a minimum distance of 2,500 feet from any occupied building. This is a 150% increase over the current mandate and could ultimately sink Colorado into a recession.
HERE ARE THE FACTS:
Prop. 112 is estimated to cause 140,000 job losses in Colorado. To put that in perspective, job losses of 140,000 equates to 4.6% of Colorado's entire workforce.
Prop 112 would negatively impact Colorado's 600,000 mineral rights owners, decrease property valuations, and could cost Colorado residents hundreds of millions of dollars in class action lawsuits.
Prop. 112 is estimated to cause a $7,000,000,000 loss in Colorado's GDP within the first five years of the bill passing.
Prop. 112 more than doubles the current 1000 ft. mandate and is estimated to make 85% of Colorado’s non-federal land inaccessible for oil & gas development. This initiative would cripple the energy sector of the state’s economy by banning almost all oil and gas development in Colorado.
Oil drilling in Colorado has a widespread impact on secondary industries (i.e. real estate, service contractors, retailing etc.,). The growth of exploration leads to new drilling sites; leads to new hires; leads to an influx of new residents, which leads to commercial expansion and increased state tax revenue. Proposition 112 will result in just the opposite, quite possibly an economic tsunami. It would put screeching brakes on energy extraction as companies withdraw from Colorado to explore less restrictive states. The chance to ride in the Permian Basin slipstream will disappear – maybe forever.If Prop 112 passes, under-developed rural areas will suffer an irreversible setback. The 600,000 mineral rights owners in Colorado are sitting on a precipice as a simple ballot determines their fate. In one county alone (Weld) $25 billion potential royalties from the extraction of $180 billion of mineral reserves are on the line. All of this can be wiped out without compensation – destroying aspirations and livelihoods.As a voter, understand the implications of voting in favor of this proposition, as it could strongly distress Colorado’s prosperity as a state. Please consider voting “no,” and let’s help Colorado continue to thrive economically for years to come.Vote NO for Proposition 112!
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