The Colorado official assigned to police the oil and gas industry will resign March 2 to work as a consultant for companies, the third state oil and gas commission chief to leap from the role of regulator to helping those he regulated.
Colorado Oil and Gas Conservation Commission director Matt Lepore’s move, confirmed by state officials Tuesday, raises concerns about a “revolving door” between a high-profile state agency and a powerful industry. State law prohibits public officials from taking direct advantage within six months of matters the officials handled for the government.
Lepore has run the COGCC for just over five years during a boom in oil and gas industry operations increasingly close to Front Range cities, directing the agency in its mission of facilitating the extraction of fossil fuels while protecting people and the environment. Colorado officials have faced especially intense criticism after a fatal house explosion April 17 in Firestone caused by a severed industry pipeline improperly connected to a well that was leaking gas by the home.
Lepore has joined Adamantine Energy, a consulting firm led by former industry trade group director Tisha Schuller. Adamantine on Tuesday posted photos identifying Lepore as Adamantine’s “strategic adviser and legal counsel” and issued a statement welcoming his arrival — even though that meant Lepore would be working simultaneously in this capacity and as the COGCC director until March 2. Late Tuesday, Adamantine removed Lepore from its website.
State officials said an assistant director of natural resources will take over for Lepore in March. They declined to discuss whether COGCC directors shifting to work for the oil and gas industry are adhering to state law. Previous COGCC directors David Neslin and Brian Macke also moved into work helping the industry navigate a complicated landscape as Colorado’s growing population collides with expanding extraction of fossil fuels linked to climate change.
A Colorado natural resources spokesman emailed a statement saying “the rules are the rules and Matt is aware of them” and that “it’s our understanding” listing Lepore on the Adamantine website was a mistake “and when pointed out, the information was immediately removed.”
Lepore won wide praise for his service. Gov. John Hickenlooper credited him with performing “one of the most demanding jobs in state government.”
Lepore did the job “with style and substance that provided calm over an area often at the center of controversy,” Hickenlooper said in a news release. “Matt always put safeguarding public safety and the environment first. Under his leadership, Colorado developed regulations that have been used as models across the country.”
Yet residents on the losing side of COGCC permitting decisions — from Colorado’s Front Range to communities on the western side of the state — issued statements welcoming his departure and questioning state regulators’ relations with the oil and gas industry.
“Grand Valley Citizens Alliance members have gone before the COGCC for nearly two decades. We’ve been very frustrated with the revolving door the directors of the COGCC take from working for the state to representing the industry — Brian Macke, Dave Neslin and now Matt Lepore — that they formerly regulated,” alliance chairwoman Leslie Robinson said. “Now I feel that everything (Lepore) said to me was two-faced, that he really didn’t care about my position or our members’ feelings about drilling. He essentially represented the industry throughout his term.
“This will be a question I will ask gubernatorial candidates. I don’t care if it is Republican or Democrat, but there needs to be some better choices for directorship of the COGCC. I hope the new director will put the health and welfare of citizens before the industry. I would sure love to have some input.”
Colorado Common Cause director Amanda Gonzales said a statutory violation of the state’s law for public employees would depend on what Lepore does in his new role.
“We want Coloradans to have confidence in the fairness of their government, and regulations like these are what give us that confidence,” Gonzalez said. “All of us want a fair and transparent state government that works in the people’s best interest.”
Weld County Commissioner Barbara Kirkmeyer, who praised Lepore for being responsive and applying common sense, pointed out that his role as COGCC director involved guiding appointed commissioners as much as making decisions. “He would lay out the rules, but ultimately the decisions were with the Colorado Oil and Gas Conservation commissioners,” Kirkmeyer said.
Colorado Department of Natural Resources director Bob Randall has appointed Julie Murphy, assistant director of energy and minerals for the state, to regulate the industry after Lepore’s departure.
Murphy has worked on policy, legal and technical issues around the industry. She previously managed hearings and “regulatory affairs” for the COGCC, directing agency attorneys. She also has worked for the state attorney general representing state mining regulators and, for five years, in private practice as a lawyer. Her educational background includes degrees in wildlife biology, natural resources management and policy and law.
“(Murphy) brings a steady hand to the agency helm,” COGCC board chairman John Benton said. “We’re fortunate to have someone of Julie’s capability and competency ready to step into this role and oversee the responsible and balanced development of Colorado’s oil and gas resources.”
Lepore drew criticism from local governments and anti-industry community groups, who lauded his departure.
“People will be heartened that they will no longer have to listen and watch Lepore dance around issues that are life-and-death issues to them,” said Phil Doe, a leader of Be the Change, a group that has rallied opposition to oil and gas industry operations near neighborhoods.
The Colorado Oil and Gas Association, an industry trade group, praised Lepore for his openness and transparency.
“Matt had a difficult job and, at times, drew the ire of both industry and activists,” COGA president Dan Haley said. “That’s probably when you know you’re doing your job properly. He led massive change, with many first-of-their-kind regulations implemented on his watch. He was very transparent in his leadership and always willing to discuss concerns or issues, which I always appreciated.”
Community groups opposed to oil and gas operations near people “need someone who is going to take seriously the protection of public health and the environment over the interests of the oil boys,” Doe said. “Given the past history of this administration in protecting the industry, … I think the selection process should be more open to public input and discussion.”
Lepore issued a statement saying that “leading this agency has been the professional privilege and challenge of a lifetime.”
He lauded Colorado residents, industry representatives and COGCC staff for “working together in good faith through the inherently difficult issues that can arise in balancing increasing energy production within a growing state.” He said the agency has “made it a priority to engage with a broad range of stakeholders to forge durable regulatory solutions.”
