A Garfield County commissioner candidate is raising concerns about the county’s contract with oil giant Chevron to build what he calls a “road to nowhere” to access its own natural gas production facilities in a remote part of the county.
Democrat Steve Carter, a Rifle attorney, accuses the county of spending $1.5 million, and volunteering to surrender millions more in severance tax dollars from Chevron, to build a road that he says would benefit few residents.
“They could have used that money elsewhere but instead they chose to spend it on a road that goes 13 miles outside of DeBeque,” Carter said.
He argues that county commissioners abused their authority to hold closed-door sessions to hammer out the deal out of public view.
County Commissioner John Martin, a Glenwood Springs Republican who is running for re-election against blacksmith Steve Bershenyi, a Democrat, defended the contract. Martin said it would help not only Chevron but other energy companies as well, and would help create jobs.
The road would reach “half a million acres worth of development,” Martin said. “That’s not a road to nowhere. That’s a road to the future. Just because Chevron is putting it up doesn’t mean other companies aren’t going to use it.”
Martin suggested someone in the closed-door executive session had improperly leaked to Carter details of what was discussed, which by law must remain confidential.
“He sure acts like he knows what went on in there,” Martin said. “Let’s find out. Who?”
Carter said no one gave him any details.
Martin and fellow Republican Larry McCown voted in favor of the County Road 204 contract in June. According to the contract, Chevron would pay $25 million for improvements to the 13-mile stretch of road that heads into a remote corner of the county north of DeBeque. The county would pay $1.5 million and devote to it another $1.5 million of state energy impact fund money.
The county also agreed to support Chevron if it wanted to apply for a tax credit for its portion, meaning it wouldn’t have to pay severance taxes to the state that could fund other county projects.
Commissioners voted 2-1 for the contract. Commissioner Trési Houpt, the lone Democrat on the board and the only seat not up for election, said she voted against the contract because of that provision.
“I don’t believe this is the type of project that warrants a tax credit because it’s going to be used primarily for oil and gas traffic,” Houpt said. “I look at it more as the cost of doing business.”
Houpt argued the road would not have to be improved were it not for oil and gas traffic. Only about 100 people live along it, and Houpt said she hasn’t heard from residents who wanted the improvements.
“The only beneficiary of doing this is Chevron,” said Carter, who is running against Rifle resident Mike Samson, a Republican, for the seat McCown is vacating. “Perhaps the ranchers might feel nice about having a wide, paved road up there, but they told me they don’t.”
Carter, who serves as municipal attorney for the town of Parachute, said he believes commissioners improperly went into closed-door meetings to discuss the matter. State law allows governments to hold executive sessions to discuss negotiations, but Carter said that meeting in private in this case was unnecessary.
“The [contract] document itself raises many questions about whether it’s good, sound public policy or not, and no one can answer them because it’s all secret,” he said.
Both Houpt and Martin defend the decision to go into executive session because they were discussing a legal contract. Houpt said she voiced her opposition to the project when the board voted in a public session.
Carter said he shared Houpt’s concerns about the severance tax dollars.
“That is not free money,” Carter said, arguing that it could take away from other county improvements, “like schools, roads that are traveled. This road doesn’t serve anybody but Chevron.”
Martin disputed that. Some 20 other energy companies will also use the road, he said, and it could mean economic development, including 600 jobs, for a part of the county poised to see increased drilling.
“This sounds like, hey, we sold our soul,” Martin said. “We didn’t. Mr. Carter wants to make it sound like that.”
Martin said the road will also serve a growing area as new homes move into the area, and with Chevron paying the bulk of the money, it came as a bargain to the county.
“It may seem to some a very shortsighted [decision],” Martin said. “I’m looking at the future and taking care of the revenue needs of Garfield County into the future.”
dfrey@aspendailynews.com
