[bouldercouncilhotline] Hotline: Update on Oil & Gas Legislation at the General Assembly

[cmosupport at bouldercolorado.gov]

Sender: Jones, Suzanne

Dear Colleagues--



Per our discussion last week on state legislation, as promised, below is an update on oil and gas legislation that may be relevant to Boulder's legislative agenda.  


A slew of bills have been introduced in the past two weeks, and several are already working their way through committee. Of particular note is Rep. Mike Foote's HB 1269, which
 is the subject of a hearing in the House Transportation and Energy Committee this morning.  See bill links and descriptions below:


1) HB 1269 Conflict of Interest at Colorado Oil and Gas Conservation Commission (Mike Foote, Matt Jones):


http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont3/0961684542235BA587257AEE00581E2F?Open&file=1269_01.pdf


This bill clarifies the dual mandate of the COGCC (to both foster and regulate the oil and gas industry) by amending the commission's mandate to ensure

that the development of oil and gas resources protects public health, the environment, and wildlife resources. Significantly, it also redefines "waste" to exclude reduced production that results
 from compliance with government regulation. Finally, it prohibits a newly appointed commissioner from being an employee, officer, or director of an oil and gas operator or oil and gas service company while serving on the commission. See attached Conservation
 Colorado fact sheet.


2) HB 1267 Increased Penalties for Violations (Mike Foote, Matt Jones):


http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont3/D1F0463932B3A83687257AEE0056FFCE?Open&file=1267_01.pdf

This bill would significantly increase the daily fines for oil and gas drilling violations, do away with the overall penalty cap, and establish a minimum fine for significant
 violations that endanger public health. This bill passed out of the House Transportation and Energy Committee last week. See Conservation Colorado attached fact sheet.


3) HB 1268 Homebuyer disclosure on split estate (Moreno):
http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont3/4E07636664A737B787257B0B0058B947?Open&file=1268_01.pdf

This bill is simply a split-estate disclosure bill being promoted by the Colorado Homebuilders Association. 


4) HB 1273: New Funding Local Governments Oil Gas Dev Impacts (Fischer-Kefalas):

http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont/5322CA6B3E3A862887257AF5005ACDDF?Open&file=1273_01.pdf
This bill requires oil and gas operators to pay a local government designee fee when applying for a permit to drill; repeals the prohibition on local governments charging
 a tax or fee to conduct inspections or monitoring of oil and gas operations; and authorizes local governments to collect an environmental or public health and welfare oversight charge on new oil and gas development.







5) HB: 1275: Front Range Oil & Gas Human Health Study (Ginal--Aguilar):

http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont/9F699F3C41497D9E87257AEE0057316C?Open&file=1275_01.pdf
This bill directs the state board of health to issue a request for proposals to conduct a review of existing epidemiological data regarding the effects of oil and gas operations on human health in the counties
 of Larimer, Weld, Boulder and Arapahoe and one or more control areas. The bill authorizes the use of the mill levy on oil and gas production to pay for it, establishes an oversight committee appointed by legislative leadership and the governor, and requires
 the final report due by March 2014.
The final or interim report may include a finding regarding whether the state or the COGCC should enter a cease-and-desist order against continued oil and gas operations, emission of air pollutants, or the
 discharge of water pollutants from any specifically identified oil and gas facilities. 


6) HB 1278: Oil Spills Gas Releases Reporting (Mitsch Bush--NONE):
http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont/75EE9F55D40B264F87257B200057FFB8?Open&file=1278_01.pdf


This bill requires oil and gas operators to report a spill, and the constituent compounds thereof, of one barrel or more of oil or exploration and production waste, or the equivalent, within 24 hours
 after the discovery of the spill to the COGCC, emergency responders, the affected local municipality or county, surface owner, and adjacent landowners.




7) S 202: Additional Inspections At Oil & Gas Facilities (Jones--Singer):
http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont/7720527402A890ED87257AF50061F5CD?Open&file=202_01.pdf


This bill requires the COGCC to use a risk-based strategy for inspecting oil and gas locations that targets the operational phases most likely to experience spills, excess emissions, and other types of
 violations, with the number of commission inspectors equivalent to that needed to ensure that each location is inspected at least once per year.


There may be more oil and gas bills introduced within the next week or so.


Cheers,
Suzanne
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