A lawsuit filed by the Colorado Oil & Gas Association (COGA) against state regulators after more stringent drilling rules were enacted will move forward, a Denver judge ruled Tuesday.

COGA on May 1 filed a lawsuit against the Colorado Oil & Gas Conservation Commission (COGCC), one month after the state’s new drilling rules took effect (see Daily GPI, April 24; March 26).

The lawsuit claims that COGCC, which oversees regulation of the energy industry in the state, did not accurately determine how much it would cost to implement the rules. The lawsuit questions whether COGCC “accurately and publicly” forecast what it would cost the agency to enforce the new rules, and it questions whether COGCC accurately forecast the cost of compliance by producers that operate in Colorado.

The lawsuit, filed in the Second Judicial District of Denver County, asks that the rules be invalidated (COGA vs. COGCC, No. 09-CV-4435).

District Court Judge Herbert Stern III issued three rulings that govern how the case will be handled, and he ordered that work on a briefing schedule begin. He also rejected a request by COGA to file an amended complaint with the court, and he advised COGA to officially notify the public about the lawsuit.

“We are pleased with the court’s rulings, which should help to simplify and expedite the resolution of this lawsuit,” said COGCC Director Dave Neslin. “We remain focused on implementing the amended rules in a fair and efficient manner and on supporting the responsible development of the state’s energy resources.”

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