Friday, April 5, 2013

Oil & Gas bills currently under consideration at the Colorado Legislature

Oil well in Frederick, CO.
A summary of bills currently under consideration at the capital. Do you agree/disagree? Is there a different issue you'd like to see addressed?

Concerning the Reporting of Oil Spills
HB13-1278
Fiscal Notes

This bill requires an oil and gas operator to report, within 24 hours of discovery spills of oil or exploration and production waste of one barrel (31 U.S. gallons) or more, or the equivalent of one barrel or more. The spill must be reported to the Colorado Oil and Gas Commission (COGCC), the local jurisdiction responsible for emergency response, the surface owner, and owners of land adjacent to the spill.

Front Range Oil & Gas Human Health Study (Ginal)
HB13-1275
Fiscal Notes

The bill requires the State Board of Health (board), in the Department of Public Health and Environment (DPHE), to issue a request for proposals (RFP) to conduct a review of existing epidemiological data to determine whether oil and gas operations can have an adverse effect on human health.

New Funding Local Governments Oil Gas Development Impacts (Fischer/Kefalas)
HB13-1273
Fiscal Notes

This bill requires oil and gas operators to pay a local government designee fee to the Colorado Oil and Gas Conservation Commission (COGCC) when applying for a permit to drill. The COGCC will allocate the fee equally to each local government that has a registered local government designee within whose boundaries the oil and gas facility to be permitted is located. The bill allows local governments to collect an impact fee or development charge when issuing a development permit to offset the costs for environmental or public health and welfare oversight on new oil and
gas development. The bill also repeals the prohibition on local governments charging a tax or fee for conducting inspections or monitoring of oil and gas operations.

Reduce Conflict Of Interest Oil And Gas Commission
HB13-1269
Fiscal Notes

The bill changes the mandate of the Colorado Oil and Gas Conservation Commission (COGCC) to ensure that the responsible, balanced development, production, and utilization of the natural resources of oil and gas in Colorado protects public health, safety, and welfare, including protection of the environment and wildlife resources. The bill prohibits a newly appointed commissioner from being an employee, officer, or director of an oil and gas operator or service company while serving on the COGCC. Finally, it redefines the term waste to exclude reduced production in the amount of oil or gas due to compliance with government regulation.

Increase Maximum Penalty Oil Gas Violations
HB13-1267
Fiscal Notes

This bill increases the penalties for violations of the Oil and Gas Conservation Act. The maximum daily fine is increased from $1,000 to $15,000 for each act of violation per day that the violation continues. The minimum penalty for a violation that results in a significant adverse impact on public health, safety, or welfare, including the environment and wildlife resources, is $5,000 for each act of violation per day that such violation continues. The $10,000 maximum cap on violations that do not result in a significant adverse impact is repealed.

Additional Inspections At Oil & Gas Facilities
SB13-202
Fiscal Notes

This bill requires the Colorado Oil and Gas Conservation Commission (COGCC) in the Department of Natural Resources (DNR) to use a risk-based strategy for inspecting oil and gas locations that targets operation phases that are most likely to experience spills, excess emissions, and other types of violations. The COGCC must have enough inspectors to inspect each oil and gas location once per year. Finally, local governments are prohibited from charging to conduct inspections or monitoring of oil and gas operations that are subject to administration by the COGCC.

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