COURTOFAPPEALS,STATEOFCOLORADO 2East14thAvenue Denver,CO80203 DistrictCourt,LarimerCounty,Colorado TheHonorableGregoryM.Lammons 201LaPorteAvenue,Suite100 FortCollins,Colorado80521 CaseNumber:2013CV31385 Appellant:CITYOFFORTCOLLINS,COLORADO v. Appellee:COLORADOOIL&GASASSOCIATION AttorneysforCitizensforaHealthyFortCollins, SierraClub,andEarthworks(“Measure Proponents”) Name: KevinLynch(Atty.Reg.#39873) BradBartlett(Atty.Reg.#32816) ChristopherBrummitt LaRonaMondt NicholasRising (StudentAttorneys) Address:2255E.EvansAvenue,Suite335 Denver,CO80208 Phone:303.871.6140 FAX:303.871.6847 E‐mail:[email protected] DATE FILED: February 6, 2015 7:34 PM FILING ID: 2EC843461E00B CASE NUMBER: 2014CA1991 ▲COURTUSEONLY▲ CaseNumber: 2014CA1991 BRIEFOFCITIZENSFORAHEALTHYFORTCOLLINS,SIERRACLUB,AND EARTHWORKSASAMICUSCURIAEINSUPPORTOFTHEAPPELLANTCITY OFFORTCOLLINS CERTIFICATEOFCOMPLIANCE IherebycertifythatthisbriefcomplieswithallrequirementsofC.A.R.28and C.A.R. 32, including all formatting requirements set forth in these rules. Specifically,theundersignedcertifiesthat: ThebriefcomplieswithC.A.R.28(g). Chooseone: Itcontains9,474words. Itdoesnotexceed30pages. ThebriefcomplieswithC.A.R.28(k). Forthepartyraisingtheissue: It contains under a separate heading (1) a concise statement of the applicablestandardofappellatereviewwithcitationtoauthority;and(2) acitationtothepreciselocationintherecord(R. ,p. ), not to an entiredocument,wheretheissuewasraisedandruledon. Forthepartyrespondingtotheissue: Itcontains,underaseparateheading,astatementofwhethersuchparty agreeswiththeopponent’sstatementsconcerningthestandardofreview andpreservationforappeal,andifnot,whynot. Iacknowledgethatmybriefmaybestrickenifitfailstocomplywithanyof therequirementsofC.A.R.28andC.A.R.32. /s/KevinJ.Lynch KevinJ.Lynch ii TABLEOFCONTENTS STATEMENTOFTHEISSUES...................................................................................................1 STATEMENTOFTHECASE.......................................................................................................2 I.NATUREOFTHECASE........................................................................................................2 II.COURSEOFPROCEEDINGS..............................................................................................4 III.DISPOSITIONOFTHEDISTRICTCOURT..................................................................6 IV.STATEMENTOFTHEFACTS.........................................................................................6 STANDARDOFREVIEW...........................................................................................................10 LEGALBACKGROUND...............................................................................................................11 SUMMARYOFTHEARGUMENT...........................................................................................12 ARGUMENT...................................................................................................................................14 I.THEMORATORIUMISNOTATOTALBANANDTHEREFOREISNOT PREEMPTED.............................................................................................................................14 A. AMoratoriumonOneCompletionMethodIsNottheSameasa PermanentBanonAllOilandGasProduction......................................................14 i. TheMoratoriumConcernsOnlyFracking,NotAllOilandGas Development........................................................................................................................15 ii. Moratoria,WhichAreTemporaryInEffect,AreTraditionallyAccepted LandUseTechniques........................................................................................................16 B.TheMoratoriumWasanIntentional,GoodFaithEfforttoProtect Citizens’Health,Safety,andWelfare.........................................................................19 C.TheDistrictCourtIgnoredtheLanguageinVossLimitingItsDecisionto CompleteBansonAllOilandGasActivity..............................................................20 iii II.THELOCALINTERESTINALLOWINGSUFFICIENTTIMETODEVELOP FRACKINGREGULATIONSOUTWEIGHSANYSTATEINTERESTIN FRACKINGIMMEDIATELYOCCURINGINFORTCOLLINS...................................21 A.TheDistrictCourtFailedtoWeightheStateInterestAgainsttheLocal IntereststoDetermineiftheMatterWasofLocal,Mixed,orState Concern…...............................................................................................................................22 B.ThereAreInsufficientFactstoDetermineThatTheMoratoriumon FrackingIsNotaMatterofLocalConcern..............................................................24 i.TheDistrictCourtFailedtoConsiderEvidenceoftheStateInterest.......25 ii.TheDistrictCourtFailedtoConsidertheLocalInterestintheFracking Moratorium...........................................................................................................................27 C.TheMoratoriumProtectsCitizens’InalienableRights.................................29 III.THEMORATORIUM’SOPERATIONALEFFECTDOESNOTCONFLICT WITHTHEACT........................................................................................................................32 A.TheCourtMustDetermineiftheLocalRegulationMateriallyImpedesor DestroystheStateInterest.............................................................................................32 i.Bowen/EdwardsSettheStandardforOperationalConflictAnalysis.......32 ii.TheMoratoriumImposesNoTechnicalConditionsonFracking.............36 iii.COGAHasFailedtoProveOperationalConflictBeyondaReasonable Doubt.......................................................................................................................................36 B. TheStateInterestIncludestheProtectionofPublicHealth,Safety,and Welfare...................................................................................................................................38 C.ExaminingtheCorrectStateInterest,ThereIsNoOperationalConflict BecausetheMoratoriumandtheActCanBeHarmonized..............................40 iv IV.IMPLIEDPREEMPTIONCANNOTBEFOUNDBECAUSETHEIRISNO EVIDENCEOFALEGISLATIVEINTENTTOOCCUPYTHEENTIREFIELD.....44 A.TheColoradoSupremeCourtHasConsistentlyHeldthattheActDoes NotImpliedlyPreemptLocalRegulationofOilandGas...................................45 B.SubsequentLegislativeEnactmentsMakeItCleartheStateDoesNot OccupytheFieldofOilandGas,ThustheMoratoriumIsNotImpliedly PreemptedbytheAct.......................................................................................................47 CONCLUSION................................................................................................................................48 v TABLEOFAUTHORITIES Cases Bd.ofCnty.Comm’rsofLaPlataCnty.v.Colo.Oil&GasConservationComm’n, 81P.3d1119(Colo.App.2003).......................................................................................33 Bd.ofCnty.Comm'rsofGunnisonCnty.v.BDSInt'l,159P.3d773(Colo.2006)34 Bd.ofCnty.Comm'rsofLaPlataCnty.v.Bowen/EdwardsAssocs.,Inc.,830P.2d 1045(Colo.1992)............................................................................................12,21,32,45 City&Cnty.ofDenverv.State,788P.2d764(Colo.1990)...............................passim CityofCommerceCityv.State,40P.3d1273(Colo.2002)................................11,22 CityofNorthglennv.Ibarra,62P.3d151(Colo.2003)..............................................22 ColoradoMin.Ass'nv.BoardofCountyCom'rsofSummitCnty.,199P.3d718 (Colo.2009).......................................................................................................................34,37 CungLav.StateFarmAuto.Ins.Co.,830P.2d1007(Colo.1992).........................10 Deightonv.CityCouncil,902P.2d426(Colo.App.1994).........................................16 Drostev.Bd.ofCnty.Comm’rsofPitkinCnty.,159P.3d601(Colo.2007)..11,16, 33 IndependenceInst.v.Coffman,209P.3d1130(Colo.Ct.App.2008)...................37 KaiserFound.HealthPlanofColoradov.Sharp,741P.2d714(Colo.1987).....10 vi Mt.EmmonsMiningCo.v.TownofCrestedButte,690P.2d231(Colo.1984).11, 38 Peoplev.Vasquez,84P.3d1019(Colo.2004)................................................................37 RobinsonTwp.,WashingtonCnty.v.Commonwealth,83A.3d901(Pa.2013).31 RockyMt.Festivals,Inc.v.ParsonsCorp.,242P.3d1067(Colo.2010)................10 Sangerv.Dennis,148P.3d404(Colo.App.2006).......................................................37 Tahoe‐SierraPreservationCouncil,Inc.v.TahoeReg’lPlanningAgency,535U.S. 302(2002).........................................................................................................................18,19 TownofFrederickv.NorthAmericanResourcesCo.,60P.3d758(Colo.App. 2002).............................................................................................................................17,46,47 Vossv.LundvallBros.Inc.,830P.2d1061(Colo.1992)....................................passim Webbv.CityofBlackhawk,295P.3d480(Colo.2013)................................12,21,34 Statutes LandUseAct,C.R.S.§§29‐20‐101to107(2014)........................................................19 OilandGasConservationAct,C.R.S.§§34‐60‐101to130(2014)..............passim OtherAuthorities 1994Colo.Sess.Laws,ch.317,§1.....................................................................................45 1996Colo.Sess.Laws,ch.88,§1........................................................................................45 vii 2007Colo.Sess.Laws,ch.320,§1.....................................................................................46 2007Colo.Sess.Laws,ch.320,§2.....................................................................................46 2007Colo.Sess.Laws,ch.320,§3.....................................................................................46 COLO.CONST.art.II,§3..............................................................................................................34 COLO.CONST.art.XX,§6............................................................................................................42 FORTCOLLINS,COLO.,PublicHealth,SafetyandWellnessAct(2013)............passim Garvin&Leitner,DraftingInterimDevelopmentOrdinances:CreatingTimeto Plan,48LandUseLaw&ZoningDigest(June1996).............................................21 TheDictionaryfortheOilandGasIndustry(Univ.ofTexasExt.,1sted.2005)7 viii CitizensforaHealthyFortCollins,SierraClub,andEarthworks (collectively“MeasureProponents”)respectfullysubmitthisbriefasamicus curiaeinsupportoftheAppellant,theCityofFortCollins(“theCity”),request reversalofthelowercourtdecisiongrantingsummaryjudgmentinfavorof theAppellee,theColoradoOilandGasAssociation(“COGA”). STATEMENTOFTHEISSUES 1. ThedistrictcourterredinconflatingBallotMeasure2A,theFortCollins PublicHealth,SafetyandWellnessAct(“theMoratorium”),witha completebanonalloilandgasactivitiesinFortCollinsandfindingit preemptedonthatbasis. 2. Thedistrictcourterredindetermininghydraulicfracturing(“fracking”) inFortCollinswasanareaofmixedstateandlocalconcern,whenCOGA failedtopresentenoughevidencetomakesuchadetermination possible. 3. Thedistrictcourterredbyfailingtoapplythecorrectstandardfor operationalconflictpreemption:whetherthelocallawmaterially impedesordestroysthestateinterest. 1 4. ThedistrictcourterredwhenitfoundtheMoratoriumtobeimpliedly preemptedbytheColoradoOilandGasConservationAct,C.R.S.§34‐60‐ 101etseq.(2014)(“theAct”),ignoringlegislativeenactmentsandcase lawmakingcleartheStatedoesnotintendtooccupythefieldofoiland gasproduction. STATEMENTOFTHECASE I.NATUREOFTHECASE Oilandgasproductionis,bynature,aboomandbustindustry. ThroughouttherecentboominColorado,whichhasbeendrivenbyanew techniquecommonlyreferredtoas“fracking,”industrialscaleoilandgas operationshaveencroachedheavilyonresidential,urban,andsuburban areas.Asaresult,andlikeneverbefore,largepopulationsofColoradoans havebeencompelledtodealwiththeimmediateandseeminglyirreparable impactsassociatedwithadramaticincreaseinindustrialtraffic,pollution,and safetyrisks.Further,citizensareincreasinglyconcernedaboutotherharms associatedwithfrackingincludingimpactstohealth,safety,and 2 welfare,aswellasasubstantialdecreaseinpropertyvaluesandtheir standardofliving.Unabletokeepupwiththeboomcycleandhamstrung withconflictingdirectives,stategovernmenthassimplyfailedtoprotect communitiesfromtheseindustrialprocesses.Inresponse,thecitizensofFort Collinshaveturnedtolocaldemocraticprocessestoaddressandmitigate theirlegitimateconcerns. CitizensforaHealthyFortCollins,thelocalgroupthatformedto advocateforgreaterprotectionsfromfracking,initiatedaballotmeasure callingforatemporarytime‐outonfrackinginhopesofmaintainingthestatus quowhilemuchneededstudiesarecompletedaddressingboththeknown andperceivedharmsfrackingposestothehealthandenvironment. R.CF,p.120.Oncethesestudiesarecompleted,theCitywillbeabletodevelop andimplementlocalregulationsnecessarytoprotectthehealth,safety,and welfareofitsresidents.InNovember2013,thecitizensofFortCollins approvedtheMoratoriumbypopularvotedemonstratingacity‐wideconcern overtheseissues.R.CF,p.182. 3 UnhappywiththelawfulassertionbyFortCollinsresidentsoftheir righttoprotecttheircommunity,COGAchallengedFortCollins’Moratorium, alongwiththreeothersimilarcitizen‐initiatedactionslikeitinLongmont, BroomfieldandLafayette.ThisCourtmustnowdecidewhetherthecitizensof FortCollinshavetherighttoinsistonacautiousanddeliberateapproachto oilandgasdevelopmentwithintheircommunity,orwhetherindustrymustbe allowedtorushaheadwithindustrialdevelopment,regardlessoftheimpacts. II.COURSEOFPROCEEDINGS OnDecember3,2013COGAbroughtsuitagainsttheCityintheLarimer CountydistrictcourtseekingadeclaratoryjudgmentthattheMoratoriumwas preemptedbytheActandapermanentinjunctioninvalidatingthe Moratorium.R.CF,pp.3‐9.COGAandtheCityfiledcross‐motionsforsummary judgment.R.CF,pp.108‐09;267‐68.Ultimately,thedistrictcourtgranted summaryjudgmentinfavorofCOGA,withoutconductinganyevidentiary proceedings(includingdiscovery)oratrial.R.CF,p.503. 4 MeasureProponentsmovedtointerveneonbehalfoftheCityon February13,2014,beforeeitherpartyhadmovedforsummaryjudgment. R.CF,pp.38‐48.ThemotionwasdeniedonMarch27,2014.R.CF,pp.212‐13. MeasureProponentsappealedthedenialofintervention.R.CF,p.202‐07.The interventionappealisstillongoinginthiscourtatcasenumber2014CA780. Judgeshavebeenassignedandanopinionispending.COGAhas acknowledgedthatifMeasureProponentsaregrantedintervention,“thecase wouldberemandedtothedistrictcourtforfurtherproceedings,inwhich [MeasureProponents],COGA,andtheCitywouldallparticipate.”COGA ResponsetoMotiontoIntervene,CaseNo.2014CA1991filedDecember5, 2014.MeasureProponentshavefiledthisamicusbriefinordertoensurethat thevoiceofthecitizenswhoinitiatedandpassedtheMoratoriumwouldbe heardinthisimportantappeal. // // // // 5 III.DISPOSITIONOFTHEDISTRICTCOURT OnAugust7,2014,thedistrictcourtgrantedCOGA’smotionfor summaryjudgmentfordeclaratoryreliefonthebasisthattheMoratoriumis preemptedbytheActand,insodoing,deniedtheCityofFortCollins’cross‐ motionforsummaryjudgment.R.CF,pp.495‐503.Thisdecisionwas determinedtobeafinal,appealableorder.R.CF,p.595. IV.STATEMENTOFTHEFACTS Frackingisawellcompletiontechniqueusedafterdrillingawell,and beforeoilandgasflowsupthewellforproduction.R.CF,pp.159,180.Fracking isnotrequiredtocompleteawell,butratherisonewaytoprepareawellfor production.Addendum371(TheDictionaryfortheOilandGasIndustry (Univ.ofTexasExt.,1sted.2005)).COGAneverpresentedevidencethat frackingwastheonlycompletionmethodavailableinFortCollins. Frackingisanindustrialprocess.R.CF,p.244,292.Thepotentialharms associatedwithfrackinginclude: Increasedhealthrisks,R.CF,p.64; Decreasedpropertyvalues,R.CF,p.51; Damagetotheenvironment,R.CF,p.51;and Increasedsafetyhazardsandnuisances,R.CF,p.160. 6 Additionally,frackingcreatesplanningandzoningissuesbecauseofthe potentialimpactstoadjacentproperties.R.CF,p.244. COGApresentedverylittleevidenceuponwhichthedistrictcourtcould decidethepreemptionissue,onlylistingfivefactsasundisputed.R.CF.,p.180‐ 83.Afterprovidingabriefdescriptionoffracking,COGAassertedthat frackinghadbeenusedonmanywellsinColorado.Id.COGAfurther describedtheprocessthroughwhichthecitizensofFortCollinsadoptedthe Moratorium,overtheobjectionsoftheCityCouncil.Id.COGAdidnotpresent anyevidencedemonstratingwhatthestateinterestisinthecase.Nordid COGApresentanyevidenceregardingthelocalinterest.COGAdidnotpresent anyevidencethatitoroneofitsmembershadappliedforapermittodrillin FortCollinsorhadanyconcreteplanstoconductfrackingoperationsduring theperiodoftheMoratorium.R.CF,p.245. TheCitydidintroduceevidenceonseveralkeyfactualissues.TheCity authorizedretentionofaconsultanttoidentifywhatfurtherstudiesare necessarytodeterminetheimpactsoffrackingonpropertyvaluesandhuman health.R.CF.,pp.243‐44.TheCitysubmittedalistofon‐goingstudies regardingfracking’simpacts.R.CF.,pp.244,296‐97.TheCityintroduced evidenceregardinglocalzoningandplanningissuesthatneedtobeaddressed 7 inthefutureregardingoilandgasdevelopment.R.CF.,pp.245‐46.TheCity introducedevidencethatnoentityhasinformedtheCityofplanstouse frackingwithintheCitylimits.R.CF.,p.246.Finally,theCityintroduced evidenceregardingtheuniquequalityoflifethatisprovidedinFortCollinsas aresultofcarefulplanninganddevelopment.R.CF.,pp.246‐47. Thefollowingfactualissuesarerelevanttotheissuespresentedinthis case,yetthedistrictcourtfailedtoreceiveevidenceonanyofthem:1 1. HowmuchoilandgascouldbeproducedinFortCollins,comparedto statewideproduction? 2. Isthereanyurgentneedforoilandgastobeproducedusingfracking withinFortCollins,particularlywithinthenextfiveyears? 3. WhatistheexpectedcostofproductioninFortCollinsusingfracking, whatpriceforoilandgaswouldberequiredtosupportthatproduction, andcanoilandgasbeprofitablyproducedinFortCollinsduringthe periodoftheMoratorium? 1MeasureProponentshaveattachedasampleofevidencepresentedina similarcaseastheaddendumtothiscase,inorderthatthisCourtmay understandthetypesofevidencethatwasprecludedbytherushtosummary judgmentinthiscase,particularlyevidenceregardingthelocalimpactsto frackingandalternativestofracking. 8 4. WhatalternativemethodsmightbeusedinFortCollinsinorderto enableproductionofoilandgaswithoutusingfrackingtocompletethe wells?Addendum159‐78. 5. Whathaveotherjurisdictionsdonetoregulatefracking?Howlonghave otherjurisdictions,suchasNewYork,spentconsideringwhether frackingcanbedonesafely?Addendum192‐93.[NewYorkState DepartmentofHealthCompletesReviewofHigh‐volumeHydraulic Fracturing,http://www.dec.ny.gov/press/100055.html,ForRelease: Wednesday,December17,2014.] 6. HowhastheoilandgasindustrychangedsincetheColoradoSupreme Courtlastconsideredpreemptionintheoilandgascontext?Doesthe industrystillrequireevenspacingofwellstoaccessapooledresource, orhasthedevelopmentofhorizontaldrilling,multiplewellpads,and high‐volumefrackingmadesuchconsiderationsobsolete? 7. Whatdoexistingstudiesshowabouttheimpactsthatfrackinghason health,safety,theenvironment,andpropertyvalues,eveniffurther studyisneededtobetterunderstandthoseissues?Addendum181‐364. 9 8. IsProspectEnergyamemberofCOGA?2 STANDARDOFREVIEW Onamotionforsummaryjudgment,themovingpartyhastheburdenof establishingtheabsenceofdisputedmaterialfacts;anydoubtsastothe existenceofsuchfactsmustberesolvedagainstthemovingparty.CungLav. StateFarmAuto.Ins.Co.,830P.2d1007,1019(Colo.1992).Apartyagainst whomsummaryjudgmentissoughtisentitledtothebenefitofallfavorable inferencesthatmaybedrawnfromtheundisputedfacts.KaiserFound.Health PlanofColoradov.Sharp,741P.2d714,718(Colo.1987). Reviewofanordergrantingsummaryjudgmentisrevieweddenovo. RockyMt.Festivals,Inc.v.ParsonsCorp.,242P.3d1067,1074(Colo.2010).The issueofwhethertheMoratoriumisacompletebanonalloilandgas developmentwasraisedatR.CF,p.247,andruledonatR.CF,p.501.Theissueof whetherthismatterisoflocal,state,ormixedconcernwasraisedat R.CF,p.262andruledonatR.CF,pp.500‐01.Theissueofwhetherthe 2COGAdidnotpresentanaffidavitfromitselforfromProspectEnergyto provethatProspectisaCOGAmember,nordidCOGAassertthisasafactinits StatementofUndisputedFacts.TheonlymentionofProspectbeingaCOGA membercameinCOGA’sreplybriefwhenitsimplyassertedso,withoutany evidence.R.CF,p.444.Thus,COGAhasnotprovenstanding. 10 Moratoriumoperationallyconflictswiththestateinterestwasraisedat R.CF,p.260andruledonatR.CF,p.502.TheissueofwhethertheActimpliedly preemptstheMoratoriumwasraisedatR.CF,p.254andruledonatR.CF,p.501. LEGALBACKGROUND Preemptionpresentsmixedquestionsoflawandfact.Mt.Emmons MiningCo.v.TownofCrestedButte,690P.2d231,238‐39(Colo.1984).As such,apreemptionquestionshouldbeanalyzedonacase‐by‐casebasis, takingintoaccountthefactsandcircumstancesofeachcase.CityofCommerce Cityv.State,40P.3d1273,1282(Colo.2002). Moratoriaarevitallandusetoolsforlocalgovernments.Drostev.Board ofCountyComm'rsoftheCnty.ofPitkin,159P.3d601,606(Colo.2007). Indeed,Coloradocourtshaveupheldmoratoriaagainstapreemption challenge.Id. Tobeginapreemptionanalysis,thecourtmustfirstdetermineifthe matterisoflocal,state,ormixedconcern.City&Cnty.ofDenverv.State,788 P.2d764,764(Colo.1990).Ifitisamatteroflocalconcern,alocalregulation supersedesthestatestatute.Id.Ifthematterisofmixedconcern,thelocal regulationisonlypreemptedif,inoperation,it“materiallyimpedesor destroys”thestateinterest.Bd.ofCnty.Comm'rs,LaPlataCnty.v. 11 Bowen/EdwardsAssocs.,Inc.,830P.2d1045,1059(Colo.1992).This determinationcanonlybemadeonafullydevelopedfactualrecord.Id.at 1060;Denverv.State,788P.2dat764,767‐68;Webbv.CityofBlackhawk,295 P.3d480,486(Colo.2013). Impliedpreemptiononlyoccurswhenthereisademonstrated “legislativeintenttocompletelyoccupyagivenfieldbyreasonofadominant stateinterest.”Bowen/Edwards,830P.2dat1048.TheColoradoSupreme Courthasrepeatedlyfoundnoimpliedpreemptioninoilandgascases.Id.; Vossv.LundvallBros.Inc.,830P.2d1061,1068(Colo.1992). SUMMARYOFTHEARGUMENT Amoratoriumononecompletionprocess,fracking,isfundamentally differentfromabanonalloilandgasdevelopment.Amoratoriumisa temporarytime‐outratherthanapermanentban.TheMoratoriumwas enactedtoevaluatetheeffectsoffrackingandgivetheCityanopportunityto passanynecessaryregulationsprotectiveofhumanhealthandthe environment.Furthermore,themoratoriumdoesnotprohibitalloilandgas development,butratheronlyonecompletionprocess.Thedistrictcourt’s relianceonVosstodeterminethattheMoratoriumispreemptedbytheAct 12 wasinappropriatebecauseVossexpresslyappliesonlytototalbansonalloil andgasdevelopment. Thelocalinterestsinallowingsufficienttimetostudytheissueand developmeaningfulregulationsoutweighanystateinterestinensuring frackingoccursimmediatelyinFortCollins.Here,thedistrictcourtfailedto weighthestateinterestagainstthelocalinterestsindeterminingwhetherthe matterwasoneofstate,local,ormixedconcern.COGAfailedtopresent,and thecourtdidnotconsider,sufficientevidencetofullyassessthescopeofthe stateandlocalinterestsinthismatter.Withoutthisevidence,thedistrict courtwasunabletoweighthestateandlocalintereststodeterminewhich shouldbegiveneffect,asrequiredbyColoradopreemptionprecedent. Evenifthecourthadproperlydeterminedthatthecasepresenteda mixedstate/localissue,theoperationaleffectoftheMoratoriumcanbe harmonizedwiththeAct.Thepropertestforoperationalconflictiswhether thelocalregulation“materiallyimpedesordestroys”thestateinterest.The localregulationandthestateinterestmustbeharmonizedifpossible.When thestateinterestisproperlyconstrued,asreflectedinrecentamendmentsto theAct,tobebalancedproductionthatprotectshealth,safety,andwelfare, 13 thentheMoratoriumactuallysupportsthatinterest,ratherthanmaterially impedingordestroyingit. Finally,thereisnoimpliedpreemptioninthiscaseasthereisno evidenceofalegislativeintenttooccupytheentirefieldofoilandgas.The ColoradoSupremeCourthasconsistentlyhattheActdoesnotimpliedly preempttheentirefieldofoilandgas.Thesubsequentlegislativeenactments totheActmakeitcleartheStatedoesnotwhollyoccupythefieldofoiland gas. ARGUMENT I.THEMORATORIUMISNOTATOTALBANANDTHEREFOREISNOT PREEMPTED TheMoratoriumisatemporarylandusetechniquedesignedto maintainthestatusquountilconclusivestudiesaddressingthepotential harmsofoneoilandgascompletiontechniquecanbecompleted.The Moratoriumisfundamentallydifferentfromthepermanenttotalbanonalloil andgasproductioninVoss. A. AMoratoriumonOneCompletionMethodIsNottheSameasa PermanentBanonAllOilandGasProduction. TheMoratoriuminvolvesonlyonecompletionmethod,andisa temporary,traditionallandusetechnique.First,theMoratoriumprohibits 14 fracking—asinglemethodofcompletion.Second,moratoriaareavalid exerciseofalocalgovernment’slanduseauthority,usedtopreservethe statusquowhiledevelopingappropriateregulationstoaddressemerging issues. i. TheMoratoriumConcernsOnlyFracking,NotAllOilandGas Development Frackingisnottheonlywaythatoilandgascanberecovered.The districtcourtconflatedtheMoratoriumwithabanonalloilandgasactivities withoutconsideringevidencedifferentiatingthetwo. ThedistrictcourtandCOGAtreattheMoratoriumasabanonalloil andgasproductionbecauseitallegedly“impedesthestate’sinterestinoiland gasdevelopmentandproduction.”R.CF,p.501.Thisconclusionisbasedonthe erroneousassumptionthatfrackingisnecessarytoproduceoilandgas.The districtcourtfoundthattheMoratorium“effectivelyeliminatesthepossibility ofoilandgasdevelopment”becausefracking“isusedin‘virtuallyalloiland gaswells’inColorado.”Id.Bythedistrictcourt’slogic,atatimewhenmost lightingusedincandescentlightbulbs,abanonsuchbulbswouldbeadefacto banonalllighting,evenifalternativeslightbulbsexisted. 15 Ifthedistrictcourthadconductedanevidentiaryhearing,Measure Proponentswouldhavepresentedevidenceofalternativemethodstotakethe placeoffracking.Addendum175‐177,183‐91. ii. Moratoria,WhichAreTemporaryInEffect,AreTraditionally AcceptedLandUseTechniques Thedistrictcourtfurthererredbyconflatingatemporarymoratorium withapermanentban.Thisfalseequivalencyledthedistrictcourttoignore Coloradoandfederalcaselawrecognizingthedistinctionbetweena permanentbanandamoratorium. Moratoriaareavalidexerciseofalocalgovernment’slanduse authority,providingatemporarytimeouttodiscoverallrelevantfactsand concerns.Coloradocourtsrecognizethedifferencebetweenamoratorium andaban.Namely,amoratoriumisnotpermanent,buta“suspensionof activity;atemporarybanontheuseorproductionofsomething.”Deightonv. CityCouncil,902P.2d426,427(Colo.App.1994).Forexample,amoratorium of10monthsondevelopmentbasedontheLandUseAct,C.R.S.§§29‐20‐101 to107,wasupheldasavaliduseofthecounties’authorityinDroste.Droste, 159P.3dat606.Drosteheldthatthecountyhadtheauthoritytoadoptan ordinancepreventingthecountyfromprocessinglanduseapplications 16 pendingadoptionofamasterplan.TheMoratoriumisanalogousbecausethe Cityhastheauthoritytoregulateoilandgasoperationsinthecity. Bowen/Edwards,830P.2dat1059‐60.Further,ittookthestateofNewYork sixyearstoexaminetheenvironmentalimpactsoffrackingbeforeultimately decidingtobanthepractice,eventhoughtheevidencewasinconclusive. Addendum192‐93.IfNewYorkneededsixyearstostudytheissueandstill couldnotdeterminewhetherfrackingcouldbeconductedsafelyanywherein thestate,thenitisreasonableforthecitizensofFortCollinstoadoptashorter moratoriumtoawaitfurtherstudyandaddresstheissueintheircommunity. TheColoradoLegislatureincludedastatementthatnothingintheAct affectsexistinglanduseauthorityoflocalgovernmentalentities,andit anticipatedthatlocalgovernmentscouldissuelandusepermitsthatincluded conditionsaffectingoilandgasoperations.TownofFrederickv.North AmericanResourcesCo.,60P.3d758,763(Colo.App.2002);C.R.S.§34‐60‐106 (2014).Entirepermittingprocesses,aswellasinjunctivereliefauthorizedby ordinancethatprohibiteddrillingofoilandgaswellswithinmunicipallimits, arenotpreemptedbecauseofoperationalconflictswiththeActalthoughthe town'sprocessmaydelaydrilling.Frederick,60P.3dat766(emphasis added).TheMoratoriumrepresentsthecitizens’votetotemporarilyholdthe 17 issuanceofsuchCitypermits,untiltheCitycandetermineifitneedstomodify itsregulationsbasedontheresultsofongoingstudiesontheimpactstohealth andpropertyfromthehighlycontroversialpracticeoffracking. Thepurposeofamoratorium,unlikeaban,istoprovidetimetoallow theplanningandimplementationprocess,includingcitizeninput,public debateandconsiderationofallissuesandpointsofview.Garvin&Leitner, DraftingInterimDevelopmentOrdinances:CreatingTimetoPlan,48LandUse Law&ZoningDigest3(June1996).Thefundamentalpurposeofa moratoriumandabanaredifferent.Amoratoriumallowsthecurrentstatus tobepreserved,placingnopartyorinterestatadisadvantagewhile evaluatingalltheissuesandfacts.Conversely,abanpermanentlyprohibitsan activity,withnofurtherconsiderationofanyfactsorissues. TheU.S.SupremeCourthasalsorecognizedthatmoratoriaarenot completebans,e.g.theyarenotnecessarilythecompletelossofeconomic valuethatwouldworka“taking.”Tahoe‐SierraPreservationCouncil,Inc.v. TahoeReg’lPlanningAgency,535U.S.302,337‐38(2002).Tahoe‐Sierraheld thata32‐monthmoratoriumonalldevelopmentpendingdevelopmentofa regionalplanwasnotatakingperse.Id.at341‐43.TheCourtexplainedthat “moratoria…arewidelyusedamongland‐useplannerstopreservethestatus 18 quowhileformulatingamorepermanentdevelopmentstrategy.”Id.at337. Treatingamoratoriumastheequivalentofabanwouldignorekeyissues suchas“thegoodfaithoftheplanners,thereasonableexpectationsof landowners,ortheactualimpactofthemoratoriumonpropertyvalues.”Id.at 338.Thesamereasoningappliestothiscaseinthepreemptioncontext.A moratoriumshouldnotbepreemptedwhereitisbasedonagoodfaitheffort bytheCityanditscitizenstoaddressacontroversialissueencroachingon theircommunity,particularlywherethemoratoriumhasnotbeenshownto haveanyconcreteeffectsonthestateinterest. B.TheMoratoriumWasanIntentional,GoodFaithEfforttoProtect Citizens’Health,Safety,andWelfare. ThecitizensofFortCollinschosetoputthisMoratoriuminplaceto allowtheCitytoevaluatetheeffectsoffrackingontheirhealth,safety, welfare,andproperty.Infact,thestatedpurposeoftheMoratoriumwasto “protectproperty,propertyvalues,publichealth,safetyandwelfare[by allowingtime]tostudytheimpactsoftheprocessonthecitizensoftheCityof FortCollins.”R.CF,p.340. TheCitypresentedevidenceofstudiesbytheNationalScience Foundation,theEnvironmentalProtectionAgency,andtheColorado 19 DepartmentofPublicHealthandEnvironmentontheeffectsoffracking, whichwillbeavailablebetween2016and2019.R.CF,p.296;R.CF,p.63. Becausetheagencieshavenotyetcompletedthesestudies,thelong‐term effectsoffrackingareuncertain.ThedrafterofBallotMeasure2Aexplained thatCitizensforaHealthyFortCollinsreliedonthesestudiesinchoosingthe lengthof5yearsfortheMoratorium.R.CF,p.63.Thecitizens’intentwasnotto banoilandgasproductionwithintheCity,nortoprohibitfracking indefinitely.Instead,theMoratoriumpreservesthestatusquowhilestudies areconductedandanalyzed,andallowstheCitytimetodeterminehowto regulateanindustrialactivity. C.TheDistrictCourtIgnoredtheLanguageinVossLimitingIts DecisiontoCompleteBansonAllOilandGasActivity. TheapplicationofVosstothiscaseiserrorbecausethedifference betweenthescopeoftheMoratoriumandthetotalbaninVossissignificant. TheColoradoSupremeCourtlimiteditsdecisioninVosstoaconsiderationof atotalbanbecausethatcaseinvolvedanordinancethatprohibitedany drillingforoilandgaswithinthecitylimits.Voss,830P.2dat1062.Voss expresslyrestrictedthescopeofthedecisionto“whetherGreeley’stotalban waspreempted.”Id.at1063n.2.TheVosscourtnotedthatitdidnotconsider 20 anamendmenttothemunicipalcodelimitingthebantoindustrialzones becausethepartiesdidnotraisetheissue,norwastheissuedecidedattrial. Id.Thecourtwentontonotethatanydeterminationoftheeffectofaless‐ than‐totalbanwould“require[]anadequatelydevelopedfactualrecord.”Id. BecausetheMoratoriumisnotabanonalloilandgasdevelopment,thisCourt mustconsidertheuniquefactsandcircumstancessurroundingthiscase. Bowen/Edwards,830P.2dat1059‐60;Denverv.State,788P.2dat767‐68; Webb,295P.3dat486. II.THELOCALINTERESTINALLOWINGSUFFICIENTTIMETODEVELOP FRACKINGREGULATIONSOUTWEIGHSANYSTATEINTERESTIN FRACKINGIMMEDIATELYOCCURINGINFORTCOLLINS. Thedistrictcourtmadethreecriticalerrorsindecidingwhetherthis casepresentsamatterofstate,mixed,orlocalconcern.First,thecourtfailed toweighthestateinterestagainstthelocalinterest,insteadfocusingonlyon thestateinterest.Second,thecourtdidnotconsidersufficientevidenceto determinewhatthestateandlocalinterestswereinthiscase,becauseCOGA failedtointroduceit.Finally,thedistrictcourtfailedtoconsiderwhetherthe citizens’constitutionalinalienablerightstoprotecttheirhealth,safety,and welfaremeanthatstatelawcannotpreemptamoratoriumdesignedto protectthoseinterests. 21 A.TheDistrictCourtFailedtoWeightheStateInterestAgainstthe LocalIntereststoDetermineiftheMatterWasofLocal,Mixed,or StateConcern. Apreemptionanalysisbeginswithdeterminingwhetherthematteris oneoflocal,mixed,orstateconcern.Denverv.State,788P.2dat767.Ifthe matterisoneoflocalconcern,then“thehomeruleprovisionsupersedesthe conflictingstateprovision.”Id.InDenverv.State,thecourtspecificallynoted thatithas“notdevelopedaparticulartestwhichcouldresolveineverycase theissueofwhetheraparticularmatteris‘local,’‘state,’or‘mixed.’”Id. Instead,acourtmakes“thesedeterminationsonanadhocbasis,takinginto considerationthefactsofeachcase”and“therelativeinterestsofthestate andthehomerulemunicipalityinregulatingthematteratissue.”Id.at767‐ 68;CityofNorthglennv.Ibarra,62P.3d151,155(Colo.2003).Thisanalysis mustbeconductedanewastime,circumstances,andtechnologychange,even iftheissuehasbeendecidedpreviouslyinanothercase.CommerceCity,40 P.3dat1282. TheDenverv.Statedecisionoutlinedfourfactorsthatareuseful,butnot exclusive,indeterminingthestateinterest.Thecourtassessedthestate interestinuniformity,extraterritorialimpacts,traditionalgovernance,and specificcommitmentintheConstitution.Denverv.State,788P.2dat768. 22 Importantly,thecourtwentontoweighthestateinterestagainstthelocal interest.Forexample,thecourtfoundtheHomeRuleAmendmenttothe ColoradoConstitutionandtestimonybythemayorwererelevantfor establishingthelocalinterestinamunicipalemployeeresidencyrestriction. Id.at771.Thecourtalsoweighedtestimonyfromthemayordiscussinglocal interestsinincreasingtheinvestmentofcitytaxdollars,inhavingemployees readilyavailableintheeventofanemergency,andinpromotingmore attentive,compassionate,anddiligentemployeework.Id. InVoss,theColoradoSupremeCourtevaluatedonlythestateinterest factorswithoutaddressinglocalinterestinthematter.Voss,830P.2dat1066. However,theVosscourtneversaidcourtsshouldlookonlyatthestate interestorthatlocalinterestswereirrelevant.Thus,thebalancingofstateand localinterestsdonebythecourtinDenverv.Stateshouldbeappliedtothis case. Inthiscase,thedistrictcourtneverweighedthestateandlocalinterests againsteachother,andnevermadeadeterminationofwhetherthematter wasoneofstate,local,ormixedconcern.Instead,thecourtsimplyasserted thatthefourfactoranalysisfromVossremainsapplicable.R.CF.,p501.The courtgavenoconsiderationtodramaticchangesintechnologyand 23 circumstancessinceVosswasdecidedin1992,andalsofailedtoweighthe stateinterestagainstthelocalinterestinthiscase.Becausethecourtdidnot conductanadhocassessmentbasedonthefactsofthiscase,summary judgmentwasinappropriate. B.ThereAreInsufficientFactstoDetermineThatTheMoratoriumon FrackingIsNotaMatterofLocalConcern. Thelackofevidenceregardingboththestateandlocalinterestinthe Moratoriumpreventedthedistrictcourtfromproperlyconductinga preemptionanalysis.COGAfailedtointroduceanyevidenceshowingthatthe statehasaninterestinensuringthatfrackingoccursinFortCollinsduringthe periodofthemoratorium.TheCitypresentedevidenceontheneedfor furtherstudy,R.CF.,pp.244,296‐97,yetthedistrictcourtfailedtoeven acknowledgethatevidence.R.CF.,pp.495‐96.MeasureProponentswere precludedfromintroducingtheirownevidenceonthestateandlocal interests,eventhoughtheywereallowedtodosoinaseparatecase. Addendum1‐9,55‐69,159‐178.Consequently,thedistrictcourt’sgrantof summaryjudgmentwasprematurebecauseitdidnotconsideradequate evidence. // 24 i.TheDistrictCourtFailedtoConsiderEvidenceoftheState Interest. Courtsshoulddeterminethestateinterestonanadhocbasis consideringthetotalityofthecircumstancesofeachcase.Denverv.State,788 P.2dat767‐68.Here,thedistrictcourtdeterminedthestateinterestby examiningthecircumstancesastheyexistedin1992inVoss.R.CF,p.501.The districtcourtcouldnothaveexaminedthecircumstancesastheyexisted 2014,however,becauseCOGApresentednoevidenceofthestateinterestin thiscase. Circumstancessurroundingoilandgasproductionhavechanged dramaticallysince1992.Forexample,thecourtinVossreliedonthefactthat oilandgasproductioniscloselytiedtowelllocationforthefindingofwaste andunevenproduction.Voss,830P.2dat1067.However,thedistrictcourtin bothtwosimilarfrackingpreemptioncasesnoted,“[w]ithtoday’stechnology, whichmakeshorizontaldrillingpossible,welllocationandspacingareno longerasimportantastheywerein1992.”R.CF,p.477,554.Additionally,oil andgasproductionin1992didnotinvolvehorizontaldrillingcombinedwith fracking.Thiscombinationhassignificantlyincreasedlocalimpacts. 25 Second,thedistrictcourtfailedtoconsiderevidenceoftheminimal impacttheMoratoriumhasonthestateinterest.Noevidencewaspresented ontheamountoftheamountofoilandgasultimatelyrecoverablefromFort Collins.Ifthecourtdeterminedtheamountrecoverabletobeinsignificant, especiallyincomparisontothetotalrecoverableamountinColorado,the impactonthestateinterestwouldbedemininmis.Denverv.State,788P.2dat 769(findingthatDenveremploying0.7%ofthetotalworkforceinthestateto bedeminimis).Thisminimalimpactisevensmallerwhenexaminingthe effectofamoratoriumratherthanaban.Anylimitationcausedbythe Moratoriumisonlytemporary. Further,COGApresentednoevidenceofanyplansorintenttofrackin FortCollinswithinthefive‐yeardurationoftheMoratorium.Tothecontrary, theCitypresentedevidencethatnopermitshavebeenappliedforwiththe COGCC.R.CF,p.245.Thus,thereisnoevidenceofanystateinterestin productioninFortCollinssinceCOGAneverprovedproductionwouldoccur absenttheMoratorium. // // 26 ii.TheDistrictCourtFailedtoConsidertheLocalInterestinthe FrackingMoratorium. Moretroublingthattheinadequateevidenceregardingthestate interest,thecourtfailedentirelytoconsiderevidenceofthelocalinterestin thiscase.Withoutthisevidence,itwasimpossibleforthecourttoweigheven theminimalstateinterestagainsttheunknownlocalinterest. ThemoratoriumaffordstheCityachancetoevaluatetheharms frackingposestoitscitizens.Importantly,thedraftersoftheMoratorium determinedthelengthoftheMoratoriumbasedontheavailabilityoffuture informationregardingtheimpactsfrackinghasoncommunities.The Moratoriumstates,“[R]epresentativesfromtheStateofColoradohave publicallystatedthattheywillbeconductingahealthimpactassessmentto assesstherisksposedbyhydraulicfracturingandunconventionaloilandgas development.”R.CF,p.120.TheCityprovidedevidenceofthoseongoing studies,R.CF.,p.296,butthedistrictcourtneverevenmentionedsuch evidence. Potentialimpactsoffrackingvarywidely.Evidenceofpotentialharms fromfrackingincludewatercontaminationandeconomicimpactscausedby baselinewatertesting,lostpropertyvalue,andchemicalcleanup.R.CF,p.51. 27 Frackingmayalsoincreaseproblemsassociatedwithnoise,light,pollution, traffic,roads,infrastructure,andemergencyresponsecoststolocal governments.R.CF,p.412‐19.Tofullyunderstandthepotentiallocalimpactsof fracking,thedistrictcourtneedstoconsider: HealthRisks:increasedchemicalexposurethroughairandwater pollutioncausingserioushealthconsequences; SafetyHazards:trafficinvolvedinincreaseduse,storageand transportationoffrackingfluidsandrisksofexplosions; EconomicConsiderations:decreasedmarketvalueofproperty nearfrackingsitesandnegativeimpactsonlocaleconomies;and EnvironmentalDamage:destructionofnaturalareasandwildlife habitat. Addendum1‐9,55‐69,159‐178,181‐364.Inlightofthepotentiallocalimpacts, thedistrictcourt’sfindingthatthismatterwasmixedconcernwaserror.Ata minimumthecourtshouldhaveweighedthelocalandstateinterestsinthis case.Weighingthesignificantlocalinterestagainsttheminimalstateinterest, thedistrictcourtshouldhavedeterminedthatregulatingfrackinginFort Collinswasamatteroflocalconcern. 28 C.TheMoratoriumProtectsCitizens’InalienableRights. Citizenshavecertainnatural,essentialandinalienablerights.Fort CollinsdeterminedthattheMoratoriumwasnecessarytoprotectagainstthe potentialdangersoffracking.BecausetheMoratoriumisanexerciseof citizens’inalienablerights,neitherthestatelegislaturenortheActmay preempttheMoratorium. TheColoradoConstitutionunambiguouslyprotectscitizens’inherent andnaturalrightstotheirlives,safety,property,liberty,andhappinessand allowscitizenstoprotecttheserights.TheInalienableRightsprovisionofthe ColoradoConstitutionstates: “Allpersonshavecertainnatural,essentialandinalienablerights, amongwhichmaybereckonedtherightofenjoyingand defendingtheirlivesandliberties;ofacquiring,possessingand protectingproperty;andofseekingandobtainingtheirsafety andhappiness.” COLO.CONST.art.II,§3(emphasisadded).Thus,theColorado Constitutionallowscitizenstoprotectthemselvesandtheirproperty fromactivitiesthatthreatentheirinalienablerights.Infact,the Moratoriumisacitizen‐initiatedmeasurepassedbythecitizensofFort Collins,whoreasonablyactedto“protectproperty,propertyvalues, publichealth,safetyandwelfarebyplacingafiveyearmoratoriumon 29 theuseofhydraulicfracturing...inordertostudytheimpactsofthe process.”R.CF,p.120. NeitherthestatelegislaturenortheActcantakeawaycitizens’ inalienablerights.Iffrackingisdeterminedtoendangercitizens’inalienable rights,notonlywoulditfavorlocalcontrol,citizens’inalienablerightswould supersedeanystatestatute,includingtheAct.Ifacourtfindsastatestatute preemptsanactionprotectinginalienablerights,thecourtiseffectively denyingcitizenstheseinalienablerights.Onlybyignoringtheinalienable rightsofcitizenscouldthedistrictcourtfindthattheActpreemptsthe Moratorium. Amoratoriumonfrackingisreasonablynecessarytoprotectcitizens’ inalienablerights.Infact,FortCollinsisnotaloneintakingactiontoprotect themselvesfromthepotentialharmsoffracking.OtherColoradolocalities havealsoplacedbansormoratoriaonfracking(Boulder,BoulderCounty, Broomfield,Lafayette,andFortCollins).Additionally,thestateofNewYork placedamoratoriumonfrackingacrosstheentirestatebecauseofconcerns regardingthehealthandsafetyoftheactivityandrecently,NewYorkbanned fracking.Appendicies192‐93. 30 Althoughapplicationoftheinalienablerightsprovisiontothiscontextis novel,thecourtshaveanobligationtostatewhatthelawisandhowitapplies tothefactsofthiscase.Previouspreemptioncasesrelieduponbythedistrict court,includingVoss,SummitCounty,andBowen/Edwards,didnotaddressthe inalienablerightsprovision.Thereasonforthisissimple:thepartiesthere didnotpresenttheargument.However,theMoratoriumspecificallycitesthe inalienablerightsprovisionoftheColoradoConstitutionasauthority, R.CF.p.120,andthisCourtshoulddeclarewhattheprovisionmeansinthis case.Essentially,wasitreasonableforthecitizensofFortCollinstoconclude thatamoratoriumonfrackingisnecessarytoprotecttheirinalienablerights? InPennsylvania,thestateSupremeCourtfoundthatasimilarlybroad constitutionalprovision,whichhadnotpreviouslybeenappliedbythecourts, prohibitedthestatelegislaturefrompreemptinglocalregulationsonfracking. RobinsonTwp.,WashingtonCnty.v.Commonwealth,83A.3d901,946‐50(Pa. 2013). BecausethecitizensofFortCollinsenactedtheMoratoriumtoprotect theirinalienablerights,neitherthestatelegislaturenortheActmaypreempt it.ThecitizensofFortCollinsreasonablydeterminedthattheMoratoriumwas necessarytoprotecttheirinalienablerights.Therefore,thisCourtshould 31 remandtothedistrictcourtwithinstructionsonhowtoapplytheinalienable rightsprovisiontothiscase. III.THEMORATORIUM’SOPERATIONALEFFECTDOESNOTCONFLICT WITHTHEACT TheMoratoriumcanbereadinharmonywiththeAct.Inoperation,the Moratoriumdoesnotmateriallyimpedeordestroythestateinterest. Therefore,thisCourtshouldreversethedistrictcourt’sfindingofoperational conflict. A.TheCourtMustDetermineiftheLocalRegulationMaterially ImpedesorDestroystheStateInterest. Ifacourtdeterminesanissuetobeamatterofmixedconcern,thestate statutepreemptsalocalregulationonlyifitsoperationaleffectwouldconflict withstatestatute.Bowen/Edwards,830P.2dat1056.Thisdetermination “mustberesolvedonanad‐hocbasisunderafullydevelopedevidentiary record.”Id.at1060. i.Bowen/EdwardsSettheStandardforOperationalConflict Analysis. Thestandardfordeterminingoperationalconflictiswhen“effectuation ofthelocalinterestwouldmateriallyimpedeordestroythestateinterest.” Id.at1059.Intheoilandgascontext,ifahomerulemunicipalityenacts 32 regulationsthatdonotfrustrate–andcanbeharmonizedwith–thestated goalsoftheAct,“thecity’sregulationsshouldbegiveneffect.”Voss,830P.2d at1068.Absentadirectconflictwiththestatestatute,courtsmustattemptto harmonizethestateandlocallawtotheextentpossible.Droste,159P.3dat 607.Assuch,everyconflictinglocalregulationisnotpreempted,onlythose materiallyimpedingordestroyingthestateinterest.Bd.ofCnty.Comm’rsof LaPlataCnty.v.Colo.Oil&GasConservationComm’n,81P.3d1119,1123 (Colo.2003). Inthiscase,thedistrictcourterredbydeviatingfromthe Bowen/Edwardsstandard.ThedistrictcourtstatedtheMoratorium“conflicts withthe[Act]becauseitprohibitswhattheActexpresslyauthorizesthe Commissiontopermit.”R.CF,p.502.Thedistrictcourtstretcheslanguagefrom WebbandSummitCountytosuggestalocalgovernmentcannotforbidwhata statestatutefailstomention.The“cannotprohibitwhatstatestatute authorizes”testisinappropriateinthefrackingcontextbecausethestate statutedoesnotmentionfracking,norexplicitlyauthorizeit.Thiscaseis distinguishablefromWebbandSummitCounty,wheretherelevantstate statuteexpresslyaddressedtheactivitiesinquestion.InWebb,thestate statuteauthorizedmunicipalitiestoprohibitbicyclesfromtravelingoncity 33 roadsifthecityprovidedanalternateroute.Webb,295P.3dat485.There,the citydidnotcomplywiththisexplicitrequirement.Id.Here,theActdoesnot evenmentionfracking,letalonelimitthecircumstancesofitsprohibition. Likewise,SummitCountyfoundthelocalordinancetobeareclamation standardwherethestategavetheMinedLandReclamationBoardexplicit authoritytoregulatereclamationstandards.Colo.MiningAss’nv.Bd.ofCnty. Comm’rsofSummitCnty.,199P.3d718,734(Colo.2009).Here,theActgives noexplicitauthoritytotheCOGCCtoregulatefracking. Intheoilandgascontext,theburdenlieswiththeplaintifftoshowthat “nopossibleconstruction”wherethelocalregulationsmaybeharmonized withthestateregulatoryscheme.Bd.ofCnty.Comm'rsofGunnisonCnty.v.BDS Int'l,159P.3d773,779(Colo.2006)(emphasisadded).InBDS,thecourt furtherstated,“wewillconstruetheCountyRegulations,ifpossible,soasto harmonizethemwiththeapplicablestatestatuteorregulations.”Id.There, thecourtreliedonBowen/EdwardsandFrederickinrejectingplaintiff’s propositionthatifastateregulationconcernsaparticularaspectofoilandgas operations,thenanycountyregulationsinthatareaareautomaticallyinvalid. Id. 34 Inordertodemonstrateanoperationalconflict,COGAwouldhaveto presentevidenceshowingthestatehasaninterestinproducingoilandgas fromFortCollinswithinthenextfiveyears.However,COGAdidnotpresent anyevidenceofsuchstateinterest.Thereisnothingtosupporttheargument thattheMoratorium’soperationaleffect—afive‐yeartimeoutonfrackingto allowtheCityofFortCollinstodeterminethebestwaytoensurethehealth, safety,andwelfareofitscitizensthroughregulation—couldconflictwiththe stateinterest. Anysuggestionthatthestateinterestisintheimmediateproductionof themaximumpossibleamountofoilandgasrunscontrarytotheinterests outlinedintheAct.Specifically,theActrequiresresponsibleandbalanced productionconsistentwiththeprotectionofpublichealth,safety,welfare,and environmentalandwildliferesources.C.R.S.§34‐60‐102(1)(A)(I)(2014). Additionally,theMoratoriumdoesnoteliminate“thepossibilityofoilandgas developmentwithinthecity,”asthedistrictcourtconcluded.R.CR,p.501.To thecontrary,theActisconcernedabouttheamountofoilandgasultimately recoverable,nottheamountimmediatelyrecoverable.C.R.S.§34‐60‐ 103(13)(b).ItdoesnotfollowthattheMoratoriumsubstantiallyimpedesoil andgasproductionbecausethoseresourcesarestillultimatelyaccessible. 35 ii.TheMoratoriumImposesNoTechnicalConditionsonFracking. TheMoratoriumdoesnotimposeanytechnicalconditionspreempted bytheAct.COGA’sargumentthatBowen/Edwards“explicitlyrecognizedthat theimpositionoftechnicalconditionsonthedrillingandpumpingofwells... necessarilyconflictswiththestatestatutoryandregulatoryscheme”goestoo farandmisstatesthelaw.R.CF,p.187.Bowen/Edwardsdoesnotstandforthe propositionthatalltechnicalregulationsarepersepreempted.Infact, Bowen/Edwardsclarifiedthattotheextentthattheoperationalconflictof technicalconditions“mightexist,”“[a]nydeterminationthatthereexistsan operationalconflictbetweenthecountyregulationsandthestatestatute... mustberesolvedonanad‐hocbasisunderafullydevelopedevidentiary record.”Bowen/Edwards,830P.2dat1060(emphasisadded). iii.COGAHasFailedtoProveOperationalConflictBeyonda ReasonableDoubt. COGAfailedtoshow,beyondareasonabledoubt,nocircumstances wheretheMoratoriumcanbeappliedinapermissiblemanner,thereforetheir facialchallengemustfail.ThehomeruleAmendmentgrantshomerulecities the“rightofself‐governmentinbothlocalandmunicipalmatters,”andsuch localordinances“shallsupersedewithintheterritoriallimits...anylawofthe 36 stateinconflicttherewith.”COLO.CONST.art.XX,§6.Whetherastatestatute preemptsahomerulecity’sregulationisaconstitutionalquestion.Voss,830 P.2dat1061;SummitCounty,199P.3dat723.Inassessingthe constitutionalityofastatutetherearetwokindsofchallenges,“facial”and“as applied.”Sangerv.Dennis,148P.3d404,410‐11(Colo.App.2006). Aplaintiffmustestablishthattheregulationisimpermissible.A“facial” challengeisonethatseekstorenderaregulation“utterlyinoperative”by requiringtheplaintifftoestablishbeyondareasonabledoubtthat“nosetof circumstances”existsinwhichtheregulationcanbeappliedinapermissible manner.Sanger,148P.3dat411(emphasisadded);Peoplev.Vasquez,84P.3d 1019,1021(Colo.2004).Thisisahighbarandcourtstraditionallydisfavor facialchallenges.IndependenceInst.v.Coffman,209P.3d1130,1136(Colo. App.2008).COGAsoughttoinvalidatetheMoratoriumasa“facial”challenge only.R.CF,p.179. Thedistrictcourtdidnotmentionorapplythereasonabledoubt standardrequiringCOGAtomeettheirburdenbyshowingnosetof circumstanceswheretheMoratoriumcouldbeharmonizedwiththeAct.The districtcourtassumedthestateinterestinuniformregulationandthatthe mereexistenceoftheMoratoriumharmsthestateinterestsetbytheAct. 37 R.CF,p.498‐503.Thatisnotsufficientforsummaryjudgment.Mt.Emmons MiningCo.,690P.2dat241.There,thecourtwasdealingwithalocal ordinancerequiringminingcompaniestogetwaterpermitsfromthetown.Id. at234.TheColoradoSupremeCourtrecognizedthisinvolved“mixed questionsoflawandfact,”andreversedthecourtofappeals’judgmentforthe miningcompanyandremandedforfindingsoffact.Id.at234.“Thereare unresolvedfactualquestionsrelatingtotheexistence,nature,andextentof anyinjurythat[theplaintiffs]mightconceivablysustainunder[the]permit.” Id.at241.AstheMt.Emmonscourtheld,the“mereexistenceofthe ordinance”wasnotenoughonwhichtobasesummaryjudgment.Id. (emphasisadded). B. TheStateInterestIncludestheProtectionofPublicHealth,Safety, andWelfare. TheStateLegislaturesetthestateinterestinoilandgasproduction throughtheAct,yetthedistrictcourtdisregardedsignificantportionsofthe Act.Toclarify,theAct’spurposeis: (1)(a)Itisdeclaredtobeinthepublicinterestto: (I)Fostertheresponsible,balanceddevelopment,production,and utilizationofthenaturalresourcesofoilandgasinthestateof Coloradoinamannerconsistentwithprotectionofpublichealth, safety,andwelfare,includingprotectionoftheenvironmentand wildliferesources;..... 38 C.R.S.§34‐60‐102(1)(a)(I)(2014)(emphasisadded). (b)...Itistheintentandpurposeofthisarticletopermiteachoilandgas poolinColoradotoproduceuptoitsmaximumefficientrateof production,subjecttothepreventionofwaste,consistentwiththe protectionofpublichealth,safety,andwelfare,includingprotection oftheenvironmentandwildliferesources,..... C.R.S.§34‐60‐102(1)(b)(2014)(emphasisadded). TheLegislature’samendmentsin1994,1996,and2007mandated provisionsthatemphasizedtheprotectionofhealth,safety,andwelfare,and underscoreandprotectlocalgovernments’landuseauthority.1994Colo. Sess.Laws,ch.317,§1;1996Colo.Sess.Laws,ch.88,§1;2007Colo.Sess. Laws,ch.320,§1.Specifically,the2007amendmentsplacedemphasison promotinghealth,welfareandsafetybychangingthe(1)publicinterestto fosterthe“responsible,balanceddevelopment”ofoilandgasand(2) developmentbeperformedinamanner“consistentwiththeprotectionof publichealth,safety,andwelfare,includingprotectionoftheenvironmentand wildliferesources.”2007Colo.Sess.Laws,ch.320,§2and3. 39 ThedistrictcourtlargelyignoredthesecriticalamendmentstotheAct.3 Thecourtnevermentionedthestateinterestinprotectinghealth,safety,and welfareduringitsoperationalconflictanalysis.R.CF.,p.502‐03.Instead,the onlyoperationalconflictthatthecourtcitedwaswithProspectEnergy’s interestinfracking,id.,whichsurelycannotbeequatedwiththestateinterest inthiscase. C.ExaminingtheCorrectStateInterest,ThereIsNoOperational ConflictBecausetheMoratoriumandtheActCanBeHarmonized. TheMoratoriumdoesnot(1)impedenordestroythestate’sinterestin oilandgasproduction;(2)causewaste;(3)affectthecorrelativerightsof owners;anddoes(4)protectpublichealth,safetyandwelfare,consistentwith thepurposeoftheAct.BecausetheMoratoriumisconsistentwiththestate’s interestssetforthbytheAct,harmonizationispossiblebetweenthe MoratoriumandtheAct. First,theMoratoriumdoesnotimpedenordestroythestate’sinterest inoilandgasproduction.Thestateinterestisinoilandgasproduction,not onespecificmethodofproduction.C.R.S.§34‐60‐102(1)(a)(I).Frackingisa 3Thecourtonlymentionedprotectingwildlifebutnothealth,safety,orthe environment.R.CF,p.499. 40 wellcompletiontechniquethatoccursafterdrillingawell,andbeforeoiland gasflowsupthewellforcapture.R.CF,pp.159,180.TheMoratoriumdoesnot preventalloilandgasproductionwithintheCity,butonlyprohibitsfracking forafive‐yearperiodtodeterminethebestwaytoprotectthehealth,safety, andwelfareofcitizens.R.CF,p.81.HadthedistrictcourtgrantedtheMeasure Proponents’intervention,MeasureProponentswouldhaveintroduced evidenceshowing,butnotlimitedto:(1)theuncertaintyregardingthesafety offracking;(2)theeffectfrackingoperationshaveonpropertyvalues;(3)the burdenfrackingplacesonmunicipalresources;(4)negativeeffectsfracking hasonrecreation;(5)effectivealternativestofrackingthathavegreatly reducedhealthandsafetyrisks;and(6)thedeminimisamountofoilandgas beneathFortCollins.However,thedistrictcourtreliedonCOGA’sassertion thatfrackingisusedin“virtuallyall”oilandgaswellsinColoradoto erroneouslyconcludethatthestateinterestisinfracking,notproduction, healthorsafety.R.CF,p.502. Thedistrictcourtimproperlyconcludedthathydraulicfracturingisa chemicaltreatmentprocess,eventhoughtheyaredistinctprocesses. R.CF,p.502.Fracking,isnotsynonymouswith“chemicaltreatment”norwith “shooting.”Rather,frackingis“anoperationinwhichaspeciallyblended 41 liquidispumpeddownawellandintoaformationunderpressurehigh enoughtocausetheformationtocrackopen,formingpassagesthroughwhich oilcanflowintothewellbore.”Addendum371.Incontrast,“chemical treatment”includesavarietyofprocesseswherethechemicalcausesthe action,butitdoesnotincludefracking.Addendum367.Also,“shooting”is theprocessofexplodingnitroglycerineorotherhighexplosivesinaholeto shattertherockandincreasetheflowofoil.Addendum367.Thedistrict courtoverlookedthesesimpledistinctionswhenitattemptedtodescribea complicatedindustrywithouttakingevidencefromanyexpertsinthefield. Second,theMoratoriumdoesnotcausewaste.Thestatutorydefinition of“waste”isanactionthatreducestheamountofoilandgasultimately recoverablefromapool,nottheamountimmediatelyrecoverable.C.R.S.§34‐ 60‐103(13)(b).Afive‐yeartimeoutonfrackingwithinFortCollinsdoesnot affecttheamountofoilandgasthatisultimatelyrecoverablefrombeneath theCity.Further,changesintechnologyandthesourceofoilandgashave lessened,perhapsevenremoved,anystateinterestinuniformspacingof wellstofacilitateproductionthatwastheoverridingconcerninVoss.The 1992Vosscourtwasconcernedwithresourcesfrom“subterraneanpools,” finding“oilandgasproductioniscloselytiedtowelllocation.”Voss,830P.2d 42 at1067.Thedistrictcourtheredidnotconsiderevidenceshowingthese concernsnolongerapplyduetothedevelopmentofhorizontaldrillingand thenatureofthereservoirsbeneathFortCollins,whicharenot“pools”but rathertightformations.R.CF,pp.477,554.Thus,uniformityasconceivedofby theVosscourtisnolongeraconcerninthemodernoilandgasindustry. Third,theMoratoriumdoesnotaffectthecorrelativerightsofowners andproducers.COGAdidnotpresentanycurrentevidencethatthe Moratoriumaffectscorrelativerights.Consideringthenatureoftheresources availabletooilandgasproducers,intightformationsasopposedtopools,itis clearthecircumstancessurroundingoilandgasproductionhavechanged since1992.Voss,830P.2dat1067(discussinghow“anirregulardrilling patterncanimpactonthecorrelativerights”ofownersandproducers). Fourth,theMoratoriumservestoprotectthepublichealth,safety,and welfareofcitizens.Thestateinterest,statedintheAct,isto“permiteachoil andgaspoolinColoradotoproduceuptoitsmaximumefficientrateof production,subjecttothepreventionofwaste,consistentwiththe protectionofpublichealth,safety,andwelfare,includingprotectionof theenvironment.”C.R.S.§34‐60‐102(emphasisadded). 43 TheMoratoriumaffordstheCitytimetoaddresstheuncertaindangers thatfrackingposestopublichealth,safety,welfare,andtheenvironment. Specifically,scientificevidenceshowssignificantthreatsposedbyfracking, demonstratingthatwedonotyetknowthefullextentoffracking’simpact. Addendum183.Forone,frackingposesthreatstogroundwater,surface water,andairquality.Id.at190‐92.Two,disposaloffrackingwaterhas inducedearthquakes.Id.at192.Three,agencieshavenotcompletedlong‐ termhealthstudiesregardingfracking’seffectsonhumanhealthoutcomes.Id. at206.Finally,thenegativeimpactsoftheboom‐bustcycleoftheoilandgas industryonlocalmunicipalresourceshaveaneffectonthecitizensandlocal communities.Id.at205‐06.Certainly,boththestateandlocalgovernments shouldbeconcernedwiththepotentialsignificantimpactsfrackinghasonits citizens.TheMoratoriumcanthusbeharmonizedwiththestateinterestin thiscase. IV.IMPLIEDPREEMPTIONCANNOTBEFOUNDBECAUSETHEIRISNO EVIDENCEOFALEGISLATIVEINTENTTOOCCUPYTHEENTIREFIELD. Thestateinterestinoilandgasproductiondoesnotoutweighthelocal interestinregulatingfracking.NothingintheActdemonstratesalegislative intenttooccupytheentirefieldofoilandgasdevelopment,andColorado 44 courtshaveconsistentlyheldthattheActdoesnotoccupytheentirefieldof oilandgasregulation.Assuch,thedistrictcourterredinfindingthattheAct impliedlypreemptstheMoratorium.ThisCourtshouldreversethatruling. A.TheColoradoSupremeCourtHasConsistentlyHeldthattheAct DoesNotImpliedlyPreemptLocalRegulationofOilandGas. TheActdoesnotimpliedlypreemptlocalregulationoftheentirefieldof oilandgasregulation.Bowen/Edwardsoutlinedthelegalstandardforan impliedpreemptionanalysisbystating,“preemptionmaybeinferredifthe statestatuteimpliedlyevincesalegislativeintenttocompletelyoccupya givenfieldbyreasonofadominantstateinterest.”Bowen/Edwards,830P.2d at1048(emphasisadded).Thecourtexplaineditcouldonlyinferalegislative intenttopreemptlocalcontrolfromlanguageusedandthewholepurpose andscopeofthelegislativescheme.Id.at1057.Bowen/Edwardsreverseda lowercourtfindingthatlanguageintheAct—authorizingtheCOGCCto promulgaterulesandregulations—establishedimpliedpreemption.Id.at 1058.Instead,thecourtheldthatlanguageintheActdidnotestablishimplied preemptionofalocalgovernment’sauthoritytoenactlocalland‐use regulationsforoilandgasoperations.Id. 45 Thedistrictcourterredinusinga“substantiallyimpedes”test, supposedlyderivedfromVoss,todetermineimpliedpreemption.R.CF,p.501. TheVosscourtdidnotrelyuponimpliedpreemption,butratherdetermined whetherthelocalordinanceconflictedwiththestateinterest.Voss,830P.2d at1065.TheVosscourtexplicitlyfoundtherewasnothingintheActthat establishedalegislativeintentto“impliedlypreemptallaspectsofalocal government'sland‐useauthorityoverlandthatmightbesubjecttooilandgas developmentandoperationswithintheboundariesofalocalgovernment.”Id. at1065.Thus,althoughtheVosscourtdidstatethatGreeley’stotalbanon drilling“substantiallyimpedes”thestateinterest,thiswasfordetermining operationalconflictandnotimpliedpreemption.Id.at1068.Therefore,the districtcourt’srelianceonVossforderivinga“substantiallyimpedes”testfor impliedpreemptionwasinerror. SubsequentpreemptioncaseshaveonlyconfirmedthattheActdoesnot impliedpreemptalllocalregulationofoilandgas.InFrederick,thecourtheld thesavingslanguageinthe1996amendmentssupporttheconclusionthatthe legislaturedidnotintendtopreemptalllocalregulationofoilandgas operations.Frederick,60P.3dat763.Frederickfurtherdeterminedthat 46 amendmentstotheActplainlyavoidedgivinganypreemptiveeffect.Id.at 758. B.SubsequentLegislativeEnactmentsMakeItCleartheStateDoesNot OccupytheFieldofOilandGas,ThustheMoratoriumIsNotImpliedly PreemptedbytheAct. NoneoftheamendmentstotheActsincethe1992Bowen/Edwardsand Vossdecisionsdemonstratelegislativeintenttopreemptalllocalregulationof oilandgasactivities.Infact,legislativeamendmentscontainspecific provisionsthatprotectlocallanduseauthority.The1994amendments explicitlypreservedtheexistinglanduseauthorityoflocalgovernments.1994 Colo.Sess.Laws,ch.317,§1.In1996,furtheramendmentsunderscoredthe poweroflocalgovernmentstorequireandensurecompliancewithlanduse permitconditions.1996Colo.Sess.Laws,ch.88,§1.In2007,amendments enlargedthelocalgovernmentauthoritysavingsprovisionstating:“nothingin thisactshallestablish,alter,impair,ornegatetheauthorityoflocal governmentstoregulatelanduserelatedtooilandgasoperations.”2007 Colo.Sess.Laws,ch.320,§1. COGAarguesthatimpliedpreemptionofalllocalregulationofoiland gasisreflectedintheCOGCC’s“comprehensiveregulatorystructure.” R.CF,p.188.JustasinBowen/Edwards,wheretheStateenactedregulationin 47 thesameareaastheAct,thisCourtcannotinferimpliedpreemption.Instead, lookingatthelanguageofActandthe“wholepurposeandscopeofthe legislativescheme”showsthereisnolegislativeintenttoimpliedlypreempt theentirefieldofoilandgas.Bowen/Edwards,830P.2dat1058.Infact,the specificlanguageoftheActitselfexpresslyemphasizesnolegislativeintentto “negatetheauthorityoflocalgovernmentstoregulatelanduserelatedtooil andgasproduction.”C.R.S.§34‐60‐102. Absentalegislativeintenttopreemptlocalcontrol,theCourtcannot findimpliedpreemption.Here,thereisnolanguageintheActnor amendmentstheretosupportingthedistrictcourt’sfindingofimplied preemption. CONCLUSION MeasureProponentsrequestthisCourttovacatethedistrict court’sdecisionandremandwithinstructionstoeitherdismissCOGA’s caseentirely,becauseamoratoriumisnotthesameasatotalban,orat minimumtoconductanevidentiaryhearingnecessarytodecidethe preemptionissuesinthiscase. // // 48 DATEDthis6thdayofFebruary,2015. Respectfullysubmitted, /s/KevinJ.Lynch KevinJ.Lynch(COBarNo.39873) BradBartlett(COBarNo.32816) LaRonaMondt(StudentAttorney) ChristopherBrummitt(StudentAttorney) NicholasRising(StudentAttorney) EnvironmentalLawClinic UniversityofDenver CounselforMeasureProponents ThisdocumentwasfiledelectronicallypursuanttoC.A.R.25(e).Theoriginal signeddocumentisonfilewiththeUniversityofDenverEnvironmentalLaw Clinic. 49 CERTIFICATEOFSERVICE IherebycertifythatonthisFebruary6,2015atrueandcorrectcopyof theaboveandforegoingBRIEFOFCITIZENSFORAHEALTHYFORT COLLINS,SIERRACLUB,ANDEARTHWORKSASAMICUSCURIAEIN SUPPORTOFTHEAPPELLANTCITYOFFORTCOLLINSwasservedviathe IntegratedColoradoCourtsE‐FilingSystem(ICCES),on: MarkJ.Matthews JohnV.McDermott WayneF.Forman MichaelD.Hoke BrownsteinHyattFarberSchreck,LLP 410SeventeenthStreet,Suite2200 Denver,CO80202 CarrieDaggett JohnR.Duval CityHallWest 300LaPorteAvenue P.O.Box580 FortCollins,CO80521 BarbaraJ.B.Green JohnT.Sullivan SullivanGreenSeavyLLC 3223ArapahoeAvenue,Suite300 Boulder,CO80303 /s/KevinJ.Lynch KevinJ.Lynch
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