Amendments for SB19-181

Senate Journal, March 6
After consideration on the merits, the Committee recommends that SB19-181 be amended
as follows, and as so amended, be referred to the Committee on Finance with favorable
recommendation.

Amend printed bill, page 6, strike lines 9 through 17 and substitute
"EMISSIONS OF METHANE AND OTHER HYDROCARBONS, VOLATILE
ORGANIC COMPOUNDS, AND OXIDES OF NITROGEN FROM FACILITIES IN ALL
SEGMENTS OF THE OIL AND NATURAL GAS SUPPLY CHAIN.
(b) (I) THE COMMISSION SHALL REVIEW ITS LEAK DETECTION AND
REPAIR RULES FOR OIL AND NATURAL GAS WELL PRODUCTION FACILITIES
AND COMPRESSOR STATIONS AND SPECIFICALLY CONSIDER ADOPTING
MORE STRINGENT PROVISIONS, INCLUDING:
(A) A REQUIREMENT THAT ALL OIL AND NATURAL GAS WELL
PRODUCTION FACILITIES MUST CONDUCT, AT A MINIMUM, SEMI-ANNUAL
LEAK DETECTION AND REPAIR INSPECTIONS;
(B) A REQUIREMENT THAT OWNERS AND OPERATORS OF OIL AND
GAS TRANSMISSION PIPELINES AND COMPRESSOR STATIONS MUST INSPECT
AND MAINTAIN ALL EQUIPMENT AND PIPELINES ON A REGULAR BASIS; AND
(C) A REQUIREMENT THAT OIL AND NATURAL GAS OPERATORS
MUST INSTALL AND OPERATE CONTINUOUS METHANE EMISSIONS
MONITORS AT FACILITIES WITH LARGE EMISSIONS POTENTIAL, AT
MULTI-WELL FACILITIES, AND AT FACILITIES IN CLOSE PROXIMITY TO
OCCUPIED DWELLINGS.".

Page 7, strike lines 14 through 17 and substitute:

"(g) Regulating the use of land on the basis of the impact thereof
OF THE USE on the community or surrounding areas; and".

Page 16, line 27, strike "and (19)" and substitute "(19), and (20)".

Page 22, strike lines 10 through 13 and substitute:

"(18) THE COMMISSION SHALL PROMULGATE RULES TO ENSURE
PROPER WELLBORE INTEGRITY OF ALL OIL AND GAS PRODUCTION WELLS.
IN PROMULGATING THE RULES, THE COMMISSION SHALL CONSIDER
INCORPORATING RECOMMENDATIONS FROM THE STATE OIL AND GAS
REGULATORY EXCHANGE AND SHALL INCLUDE PROVISIONS TO:
(a) ADDRESS THE PERMITTING, CONSTRUCTION, OPERATION, AND
CLOSURE OF PRODUCTION WELLS;
(b) REQUIRE THAT WELLS ARE CONSTRUCTED USING CURRENT
PRACTICES AND STANDARDS THAT PROTECT WATER ZONES AND PREVENT
BLOWOUTS;
(c) ENHANCE SAFETY AND ENVIRONMENTAL PROTECTIONS DURING
OPERATIONS SUCH AS DRILLING AND HYDRAULIC FRACTURING;
(d) REQUIRE REGULAR INTEGRITY ASSESSMENTS FOR ALL OIL AND
GAS PRODUCTION WELLS, SUCH AS PRESSURE MONITORING DURING
PRODUCTION; AND
(e) ADDRESS THE USE OF NONDESTRUCTIVE TESTING OF WELL
JOINTS.".

Page 22, line 14, strike "AND, IF NECESSARY," and substitute "AND".

Page 22, line 16, before "TO" insert "TO THE EXTENT NECESSARY".

Page 22, after line 24 insert:

"(20) THE COMMISSION SHALL ADOPT RULES TO REQUIRE
CERTIFICATION FOR WORKERS IN THE FOLLOWING FIELDS:
(a) COMPLIANCE OFFICERS WITH REGARD TO THE FEDERAL
"OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970", 29 U.S.C. SEC. 651
ET SEQ., INCLUDING SPECIFICALLY WORKING IN CONFINED SPACES;
(b) COMPLIANCE OFFICERS WITH REGARD TO CODES PUBLISHED BY
THE AMERICAN PETROLEUM INSTITUTE AND AMERICAN SOCIETY OF
MECHANICAL ENGINEERS, OR THEIR SUCCESSOR ORGANIZATIONS;
(c) THE HANDLING OF HAZARDOUS MATERIALS;
(d) WELDERS WORKING ON OIL AND GAS PROCESS LINES,
INCLUDING:
(I) KNOWLEDGE OF THE FLOWLINE RULES PROMULGATED
PURSUANT TO SUBSECTION (19) OF THIS SECTION;
(II) A MINIMUM OF SEVEN THOUSAND HOURS OF DOCUMENTED
ON-THE-JOB TRAINING; AND
(III) PASSAGE OF THE INTERNATIONAL CODE COUNCIL EXAM F31,
NATIONAL STANDARD JOURNEYMAN MECHANICAL, OR AN ANALOGOUS
SUCCESSOR EXAM, FOR ANY PERSON WORKING ON PRESSURIZED PROCESS
LINES IN UPSTREAM AND MIDSTREAM OPERATIONS.".


Finance


Senate Journal, March 7
After consideration on the merits, the Committee recommends that SB19-181 be amended
as follows, and as so amended, be referred to the Committee on Appropriations with
favorable recommendation.

Amend printed bill, page 15, line 5, strike "(2)(d)" and substitute "(2)(d);
and add (3)".

Page 15, line 6, strike "duties." and substitute "duties - repeal.".

Page 15, after line 12 insert:

"(3) (a) THE DIRECTOR OF THE COMMISSION SHALL SUBMIT A
REPORT TO THE GENERAL ASSEMBLY BY JANUARY 1, 2021, REGARDING
ANY RECOMMENDED STRUCTURAL CHANGES TO THE COMMISSION,
INCLUDING MAKING COMMISSION MEMBERSHIP A FULL-TIME PAID POSITION
AND EVALUATING THE USE OF ADDITIONAL ADMINISTRATIVE LAW JUDGES
AND HEARING OFFICERS TO ALLOW THE COMMISSION TO DEVOTE MORE OF
ITS TIME AND EFFORTS TO SETTING POLICY AND PROMULGATING RULES.
(b) THE DIRECTOR'S REPORT MUST INCLUDE THE FOLLOWING
INFORMATION:
(I) A SUMMARY OF ANY RELEVANT INFORMATION LEARNED FROM
A REVIEW OF THE STRUCTURE OF OTHER STATES' PROFESSIONAL AND
NONPROFESSIONAL OIL AND GAS COMMISSIONS; AND
(II) AN ANALYSIS AS TO WHETHER AND TO WHAT EXTENT THE
COMMISSION HAS ADEQUATE SCIENTIFIC EXPERTISE IN THE AREAS OF OIL
AND GAS MINERAL RESOURCE DEVELOPMENT, INCLUDING GEOLOGISTS,
PETROLEUM GEOLOGISTS, AND PETROLEUM ENGINEERS.
(c) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE SEPTEMBER 1,
2022.".

Page 17, line 24, strike "LEGISLATION ENACTED IN 2019" and substitute
"SENATE BILL 19-181, ENACTED IN 2019,".

Page 18, line 2, strike "REQUIRE" and substitute "REQUIRES".

Page 18, line 3, after the period add "WITHIN THIRTY DAYS AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION (1)(f)(III)(A), THE DIRECTOR SHALL
PUBLISH SPECIFIC CRITERIA CONCERNING PERMIT REVIEWS PURSUANT TO
THIS SUBSECTION (1)(f)(III)(A).".


Senate Journal, March 8
After consideration on the merits, the Committee recommends that SB19-181 be amended
as follows, and as so amended, be referred to the Committee of the Whole with favorable
recommendation.

Amend printed bill, page 27, after line 9 insert:

"SECTION 16. Appropriation. (1) For the 2019-20 state fiscal
year, $770,959 is appropriated to the department of natural resources.
This appropriation consists of $678,431 cash funds from the oil and gas
conservation and environmental response fund created in section 34-60-
122 (5)(a), C.R.S., and $92,528 cash funds from the wildlife cash fund
created in section 33-1-112 (1)(a), C.R.S. To implement this act, the
department may use this appropriation as follows:
(a) $489,759 from the oil and gas conservation and environmental
response fund for use by the oil and gas conservation commission for
program costs, which amount is based on an assumption that the oil and
gas conservation commission will require an additional 5.0 FTE;
(b) $88,628 from the wildlife cash fund for wildlife operations,
which amount is based on an assumption that the division of wildlife will
require an additional 1.0 FTE;
(c) $6,038, which consists of $3,900 from the wildlife cash fund
and $2,138 from the oil and gas conservation and environmental
response fund, for vehicle lease payments; and
(d) $186,534 from the oil and gas conservation and
environmental response fund for the purchase of legal services.
(2) For the 2019-20 state fiscal year, $186,534 is appropriated to
the department of law. This appropriation is from reappropriated funds
received from the department of natural resources under subsection (1)(d)
of this section and is based on an assumption that the department of law
will require an additional 1.0 FTE. To implement this act, the department
of law may use this appropriation to provide legal services for the
department of natural resources.".

Renumber succeeding sections accordingly.

Page 1, line 102, strike "OPERATIONS." and substitute "OPERATIONS,
AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.".



Senate Journal, March 12
SB19-181 by Senator(s) Fenberg; also Representative(s) Becker--Concerning additional public
welfare protections regarding the conduct of oil and gas operations.

(Amended in general orders as printed in Senate journal, March 12, page 439.)

Amendment No. 4(L.044), by Senator Fenberg.

Amend printed bill, page 18, line 25, strike "REGULATE" and substitute
"NOT ACT ARBITRARILY OR CAPRICIOUSLY IN REGULATING".
Amendment No. 5(L.038), by Senator Fenberg.

Amend printed bill, page 23, strike lines 8 through 12 and substitute:

"(I) THE APPLICANT HAS FILED AN APPLICATION WITH THE LOCAL
GOVERNMENT WITH JURISDICTION TO APPROVE THE SITING OF THE
PROPOSED OIL AND GAS LOCATION AND THE LOCAL GOVERNMENT'S
DISPOSITION OF THE APPLICATION; OR
(II) THE LOCAL GOVERNMENT WITH JURISDICTION DOES NOT
REGULATE THE SITING OF".


Amendment No. 6(L.039), by Senator Fenberg.

Amend the Transportation and Energy Committee Report, dated March
5, 2019, page 3, line 2, strike "TRAINING;" and substitute "TRAINING,
WHICH REQUIREMENT CAN BE MET BY AN EMPLOYEE WORKING UNDER THE
SUPERVISION OF A PERSON WITH THE REQUISITE SEVEN THOUSAND HOURS
OF TRAINING;".


Amendment No. 7(L.041), by Senator Fenberg.

Amend printed bill, page 15, line 14, strike "(1)" and substitute "(1); and
add (4)".

Page 16, after line 24 insert:

"(4) (a) EXCEPT AS SPECIFIED IN SUBSECTION (4)(b) OF THIS
SECTION, NOTHING IN THIS ARTICLE 60 AUTHORIZES THE STATE OR ITS
LOCAL GOVERNMENTS, INCLUDING THE COMMISSION, BOARDS OF COUNTY
COMMISSIONERS, AND MUNICIPALITIES, TO REGULATE THE ACTIVITIES OF:
(I) FEDERALLY RECOGNIZED INDIAN TRIBES, THEIR POLITICAL
SUBDIVISIONS, OR TRIBALLY CONTROLLED AFFILIATES, UNDERTAKEN OR
TO BE UNDERTAKEN WITH RESPECT TO MINERAL EVALUATION,
EXPLORATION, OR DEVELOPMENT ON LANDS WITHIN THE EXTERIOR
BOUNDARIES OF AN INDIAN RESERVATION LOCATED WITHIN THE STATE;
OR
(II) THIRD PARTIES, UNDERTAKEN OR TO BE UNDERTAKEN WITH
RESPECT TO MINERAL EVALUATION, EXPLORATION, OR DEVELOPMENT ON
INDIAN TRUST LANDS WITHIN THE EXTERIOR BOUNDARIES OF AN INDIAN
RESERVATION LOCATED WITHIN THE STATE.
(b) REGULATION BY THE STATE OR ITS LOCAL GOVERNMENTS,
INCLUDING THE COMMISSION, BOARDS OF COUNTY COMMISSIONERS, AND
MUNICIPALITIES, APPLICABLE TO NON-INDIANS CONDUCTING OIL AND GAS
OPERATIONS ON LANDS WITHIN THE EXTERIOR BOUNDARIES OF THE
SOUTHERN UTE INDIAN RESERVATION MAY APPLY TO LANDS WHERE BOTH
THE SURFACE AND THE OIL AND GAS ESTATES ARE OWNED IN FEE BY A
PERSON OTHER THAN THE SOUTHERN UTE INDIAN TRIBE, REGARDLESS OF
WHETHER THE LANDS ARE COMMUNITIZED OR POOLED WITH INDIAN
MINERAL LANDS.".


Amendment No. 8(L.073), by Senator Scott.

Amend printed bill, page 25, line 6, strike "FIFTEEN" and substitute
"THIRTEEN".

Page 25, line 8, strike "EIGHTY-FIVE" and substitute "EIGHTY-SEVEN".


Amendment No. 9(L.074), by Senator Fenberg.

Amend printed bill, page 7, line 21, strike "ADDRESS:" and substitute
"ADDRESS MATTERS SPECIFIED IN THIS SUBSECTION (1)(h) AND TO
PROTECT AND MINIMIZE ADVERSE IMPACTS TO PUBLIC HEALTH, SAFETY,
AND WELFARE AND THE ENVIRONMENT. FOR PURPOSES OF THIS
SUBSECTION (1)(h), "MINIMIZE ADVERSE IMPACTS" MEANS, TO THE
EXTENT NECESSARY AND REASONABLE, TO PROTECT PUBLIC HEALTH,
SAFETY, AND WELFARE AND THE ENVIRONMENT BY AVOIDING ADVERSE
IMPACTS FROM OIL AND GAS OPERATIONS AND MINIMIZING AND
MITIGATING THE EXTENT AND SEVERITY OF THOSE IMPACTS THAT CANNOT
BE AVOIDED. THE FOLLOWING MATTERS ARE COVERED BY THIS
SUBSECTION (1)(h):".

Page 7, strike lines 23 through 27.

Page 8, strike lines 1 through 3.

Renumber succeeding subparagraphs accordingly.


Amendment No. 10(L.035), by Senator Fenberg.

Amend the Finance Committee Report, dated March 7, 2019, page 2,
strike lines 2 and 3 and substitute:

"Page 17 of the bill, strike lines 23 and 24 and substitute "COMMISSION
HAS PROMULGATED ANY RULES REQUIRED TO BE ADOPTED BY
SUBSECTIONS (2.5)(a), (11)(c), AND (19) OF THIS SECTION AND".".


Amendment No. 11(L.076), by Senator Fenberg.

Amend printed bill, page 7, line 6, strike "(1)(i) and (2)" and substitute
"(1)(i), (2), and (3)".

Page 9, before line 6 insert:

"(3) (a) TO PROVIDE A LOCAL GOVERNMENT WITH TECHNICAL
EXPERTISE REGARDING WHETHER A PRELIMINARY OR FINAL
DETERMINATION OF THE LOCATION OF AN OIL AND GAS FACILITY OR OIL
AND GAS LOCATION COULD AFFECT OIL AND GAS RESOURCE RECOVERY:
(I) ONCE AN OPERATOR, AS DEFINED IN SECTION 34-60-103 (6.8),
FILES AN APPLICATION FOR THE LOCATION AND SITING OF AN OIL AND GAS
FACILITY OR OIL AND GAS LOCATION AND THE LOCAL GOVERNMENT HAS
MADE EITHER A PRELIMINARY OR FINAL DETERMINATION REGARDING THE
APPLICATION, THE LOCAL GOVERNMENT MAY ASK THE DIRECTOR OF THE
OIL AND GAS CONSERVATION COMMISSION PURSUANT TO SECTION
34-60-104.5 (3) TO APPOINT A TECHNICAL REVIEW BOARD TO CONDUCT
A TECHNICAL REVIEW OF THE PRELIMINARY OR FINAL DETERMINATION
AND ISSUE A REPORT THAT CONTAINS THE BOARD'S CONCLUSIONS.
(II) ONCE A LOCAL GOVERNMENT HAS MADE A FINAL
DETERMINATION REGARDING AN APPLICATION SPECIFIED IN SUBSECTION
(3)(a)(I) OF THIS SECTION OR IF THE LOCAL GOVERNMENT HAS NOT MADE
A FINAL DETERMINATION ON AN APPLICATION WITHIN TWO HUNDRED TEN
DAYS AFTER FILING BY THE OPERATOR, THE OPERATOR MAY ASK THE
DIRECTOR OF THE OIL AND GAS CONSERVATION COMMISSION PURSUANT
TO SECTION 34-60-104.5 (3) TO APPOINT A TECHNICAL REVIEW BOARD TO
CONDUCT A TECHNICAL REVIEW OF THE FINAL DETERMINATION AND ISSUE
A REPORT THAT CONTAINS THE BOARD'S CONCLUSIONS.
(b) A LOCAL GOVERNMENT MAY FINALIZE ITS PRELIMINARY
DETERMINATION WITHOUT ANY CHANGES BASED ON THE TECHNICAL
REVIEW REPORT, FINALIZE ITS PRELIMINARY DETERMINATION WITH
CHANGES BASED ON THE REPORT, OR RECONSIDER OR DO NOTHING WITH
REGARD TO ITS ALREADY FINALIZED DETERMINATION.
(c) IF AN APPLICANT OR LOCAL GOVERNMENT REQUESTS A
TECHNICAL REVIEW PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION,
THE PERIOD TO APPEAL A LOCAL GOVERNMENT'S DETERMINATION
PURSUANT TO RULE 106 (a)(4) OF THE COLORADO RULES OF CIVIL
PROCEDURE IS TOLLED UNTIL THE REPORT SPECIFIED IN SUBSECTION (3)(a)
OF THIS SECTION HAS BEEN ISSUED, AND THE APPLICANT IS AFFORDED THE
FULL PERIOD TO APPEAL THEREAFTER.".

Page 15, line 5, strike "(2)(d)" and substitute "(2)(d); and add (3)".

Page 15, after line 12 insert:

"(3) (a) UPON RECEIPT OF REQUEST FOR TECHNICAL REVIEW FILED
PURSUANT TO SECTION 29-20-104 (3)(a), THE DIRECTOR OF THE
COMMISSION SHALL APPOINT TECHNICAL REVIEW BOARD MEMBERS. THE
MEMBERSHIP OF THE TECHNICAL REVIEW BOARD MUST INCLUDE SUBJECT
MATTER EXPERTS IN LOCAL LAND USE PLANNING AND OIL AND GAS
EXPLORATION AND PRODUCTION AND MAY INCLUDE SUBJECT MATTER
EXPERTS IN ENVIRONMENTAL SCIENCES, PUBLIC HEALTH SCIENCES, OR
OTHER DISCIPLINES RELEVANT TO THE DISPUTED ISSUES, AS DETERMINED
BY THE DIRECTOR. THE TECHNICAL REVIEW BOARD SHALL CONDUCT A
TECHNICAL REVIEW OF THE PRELIMINARY OR FINAL SITING
DETERMINATION PURSUANT TO THE CRITERIA SPECIFIED IN SUBSECTION
(3)(b) OF THIS SECTION AND, AT ITS DISCRETION, MAY MEET TO CONFER
INFORMALLY WITH THE PARTIES. THE TECHNICAL REVIEW MUST BE
COMPLETED BY ISSUANCE OF A REPORT WITHIN SIXTY DAYS AFTER THE
DIRECTOR APPOINTS THE EXPERTS.
(b) A TECHNICAL REVIEW:
(I) MUST ADDRESS THE ISSUES IN DISPUTE AS IDENTIFIED BY THE
OPERATOR AND THE LOCAL GOVERNMENT, WHICH MAY INCLUDE IMPACTS
TO THE RECOVERY OF THE RESOURCE BY THE PRELIMINARY OR FINAL
SITING DETERMINATION OF THE LOCAL GOVERNMENT; WHETHER THE
LOCAL GOVERNMENT'S DETERMINATION WOULD REQUIRE TECHNOLOGIES
THAT ARE NOT AVAILABLE OR ARE IMPRACTICABLE GIVEN THE CONTEXT
OF THE PERMIT APPLICATION; AND WHETHER THE OPERATOR IS PROPOSING
TO USE BEST MANAGEMENT PRACTICES; AND
(II) MUST RESULT IN THE ISSUANCE OF A REPORT.".


Amendment No. 12(L.075), by Senator Fenberg.

Amend printed bill, page 11, strike lines 5 and 6 and substitute:

"(5.5) "Minimize adverse impacts" means, to wherever reasonably
practicable THE EXTENT NECESSARY AND REASONABLE TO PROTECT
PUBLIC HEALTH, SAFETY, AND WELFARE, THE ENVIRONMENT, AND
WILDLIFE RESOURCES, TO:".


Amendment No. 13(L.077), by Senator Fenberg.

Amend the Finance Committee Report, dated March 7, 2019, page 2,
after line 3 insert:

"Page 17 of the bill, line 27, strike "DETERMINES" and substitute
"DETERMINES, PURSUANT TO OBJECTIVE CRITERIA TO BE PUBLISHED BY
THE DIRECTOR WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF THIS
SUBSECTION (1)(f)(III) AND FOLLOWING A PUBLIC COMMENT PERIOD,".".

Page 2 of the report, strike lines 5 through 8.


Amendment No. 14(L.036), by Senator Fenberg.

Amend printed bill, page 14, line 15, after "IN" insert "TECHNICAL
EXPERTISE RELEVANT TO THE ISSUES CONSIDERED BY THE COMMISSION
OR".

Page 26, lines 19 and 20, strike "preemption - most protective
standard controls." and substitute "preemption.".

Page 27, strike lines 3 through 9 and substitute "AS SPECIFIED IN SECTION
34-60-105 (1)(b). A LOCAL GOVERNMENT'S REGULATIONS MAY BE MORE
PROTECTIVE OR STRICTER THAN STATE REQUIREMENTS.".

As amended, ordered engrossed and placed on the calendar for third reading and final
passage.

(For further action, see amendments to the report of the Committee of the Whole.)



Senate Journal, March 12
SB19-181 by Senator(s) Fenberg; also Representative(s) Becker--Concerning additional public
welfare protections regarding the conduct of oil and gas operations.

Senator Sonnenberg moved to amend the Report of the Committee of the Whole to show
that the following Sonnenberg floor amendment, (L.069) to SB 19-181, did pass.

Amend printed bill, page 27, strike lines 10 through 15 and substitute:

"SECTION 17. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day
following the expiration of the ninety-day period after final adjournment
of the general assembly (August 2, 2019, if adjournment sine die is on
May 3, 2019); except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an
item, section, or part of this act within such period, then the act, item,
section, or part will not take effect unless approved by the people at the
general election to be held in November 2020 and, in such case, will take
effect on the date of the official declaration of the vote thereon by the
governor.
(2) This act applies to conduct occurring on or after the applicable
effective date of this act, including determinations of applications
pending on the effective date.".


Less than a majority of all members elected to the Senate having voted in the affirmative,
the amendment to the report of the Committee of the Whole was lost on the following roll
call vote:

YES 16 NO 19 EXCUSED 0 ABSENT 0
Bridges N Foote N Marble Y Story N
Cooke Y Gardner Y Moreno N Tate Y
Coram Y Ginal N Pettersen N Todd N
Court N Gonzales N Priola Y Williams A. N
Crowder Y Hill Y Rankin Y Winter N
Danielson N Hisey Y Rodriguez N Woodward Y
Donovan N Holbert Y Scott Y Zenzinger N
Fenberg N Lee N Smallwood Y President N
Fields N Lundeen Y Sonnenberg Y


House Journal, March 27
36 SB19-181 be amended as follows, and as so amended, be referred to
37 the Committee of the Whole with favorable
38 recommendation:
39
40 Amend reengrossed bill, page 32, strike lines 22 through 27 and
41 substitute:
42
43 "SECTION 16. Appropriation. (1) For the 2019-20 state fiscal
44 year, $851,010 is appropriated to the department of natural resources.
45 This appropriation consists of $763,180 cash funds from the oil and gas
46 conservation and environmental response fund created in section 34-60-
47 122 (5)(a), C.R.S., and $87,830 cash funds from the wildlife cash fund
48 created in section 33-1-112 (1)(a), C.R.S. To implement this act, the
49 department may use this appropriation as follows:
50 (a) $535,508 from the oil and gas conservation and environmental
51 response fund for use by the oil and gas conservation commission for
52 program costs, which amount is based on an assumption that the oil and
53 gas conservation commission will require an additional 5.0 FTE;
54 (b) $83,930 from the wildlife cash fund for wildlife operations,
55 which amount is based on an assumption that the division of parks and
1 wildlife will require an additional 1.0 FTE;
2 (c) $6,038, which consists of $3,900 from the wildlife cash fund
3 and $2,138 from the oil and gas conservation and environmental response
4 fund, for vehicle lease payments;
5 (d) $39,000 from the oil and gas conservation and environmental
6 response fund for leased space; and
7 (e) $186,534 from the oil and gas conservation and environmental
8 response fund for the purchase of legal services.
9 (2) For the 2019-20 state fiscal year, $186,534 is appropriated to
10 the department of law. This appropriation is from reappropriated funds
11 received from the department of natural resources under subsection (1)(e)
12 of this section and is based on an assumption that the department of law
13 will require an additional 1.0 FTE. To implement this act, the department
14 of law may use this appropriation to provide legal services for the
15 department of natural resources.".
16
17 Page 33, strike lines 1 through 20.
18
19

House Journal, March 28
26 Amendment No. 1, Appropriations Report, dated March 27, 2019, and
27 placed in member's bill file; Report also printed in House Journal, March
28 27, 2019.
29
30 Amendment No. 2, by Representative Becker.
31
32 Amend reengrossed bill, page 16, line 27, strike "duties - repeal." and
33 substitute "duties.".
34
35 Page 17, strike lines 7 through 24.
36
37 Amendment No. 3, by Representative Becker.
38
39 Amend reengrossed bill, page 18, line 22, after "MUST" insert "NOT
40 ADDRESS THE ECONOMIC EFFECTS OF THE PRELIMINARY OR FINAL
41 DETERMINATION AND MUST".
42
43 Amendment No. 4, by Representative Becker.
44
45 Amend reengrossed bill, page 11, line 17, strike "production," and
46 substitute "AND production".
47
48 Amendment No. 5, by Representative Becker.
49
50 Amend reengrossed bill, page 32, strike lines 8 through 16 and substitute:
51
52 "34-60-131. No land use preemption. LOCAL GOVERNMENTS AND
53 STATE AGENCIES, INCLUDING THE".
54
1 Amendment No. 6, by Representative Becker.
2
3 Amend reengrossed bill, page 21, line 4, after "(2)(c)," insert "(6),".
4
5 Page 23, after line 15 insert:
6
7 "(6) The commission has the authority, as it deems necessary and
8 convenient, to conduct any hearings or to make any determinations it is
9 otherwise empowered to conduct or make by means of an appointed
10 ADMINISTRATIVE LAW JUDGE OR hearing officer, but recommended
11 findings, determinations, or orders of any ADMINISTRATIVE LAW JUDGE OR
12 hearing officer shall not become final until adopted by the commission IN
13 ACCORDANCE WITH SECTION 34-60-108 (9). Upon appointment by the
14 commission, a member of the commission may act as a hearing officer.".
15
16 Page 28, after line 13 insert:
17
18 "SECTION 12. In Colorado Revised Statutes, 34-60-108, add (9)
19 as follows:
20 34-60-108. Rules - hearings - process. (9) WHENEVER ANY
21 HEARING OR OTHER PROCEEDING IS ASSIGNED TO AN ADMINISTRATIVE LAW
22 JUDGE, HEARING OFFICER, OR INDIVIDUAL COMMISSIONER FOR HEARING,
23 THE ADMINISTRATIVE LAW JUDGE, HEARING OFFICER, OR COMMISSIONER,
24 AFTER THE CONCLUSION OF THE HEARING, SHALL PROMPTLY TRANSMIT TO
25 THE COMMISSION AND THE PARTIES THE RECORD AND EXHIBITS OF THE
26 PROCEEDING AND A WRITTEN RECOMMENDED DECISION THAT CONTAINS
27 THE FINDINGS OF FACT, CONCLUSIONS, AND RECOMMENDED ORDER. A
28 PARTY MAY FILE AN EXCEPTION TO THE RECOMMENDED ORDER; BUT IF NO
29 EXCEPTIONS ARE FILED WITHIN TWENTY DAYS AFTER SERVICE UPON THE
30 PARTIES, OR UNLESS THE COMMISSION STAYS THE RECOMMENDED ORDER
31 WITHIN THAT TIME UPON ITS OWN MOTION, THE RECOMMENDED ORDER
32 BECOMES THE DECISION OF THE COMMISSION AND SUBJECT TO SECTION
33 34-60-111. THE COMMISSION UPON ITS OWN MOTION MAY AND, WHERE
34 EXCEPTIONS ARE FILED SHALL, CONDUCT A DE NOVO REVIEW OF THE
35 MATTER UPON THE SAME RECORD, AND THE RECOMMENDED ORDER IS
36 STAYED PENDING THE COMMISSION'S FINAL DETERMINATION OF THE
37 MATTER. THE COMMISSION MAY ADOPT, REJECT, OR MODIFY THE
38 RECOMMENDED ORDER.".
39
40 Renumber succeeding sections accordingly.
41
42 Amendment No. 7, by Representative Becker.
43
44 Amend reengrossed bill, page 32, line 1, after "34-60-128," insert "amend
45 (3)(b); and".
46
47 Page 32, line 3, strike "(4)" and substitute "(3) In order to minimize
48 adverse impacts to wildlife resources, the commission shall:
49 (b) Provide for commission consultation and consent of the
50 affected surface owner, or the surface owner's appointed tenant, on
51 permit-specific conditions for wildlife habitat protection THAT DIRECTLY
52 IMPACT THE AFFECTED SURFACE OWNER'S PROPERTY OR USE OF THAT
53 PROPERTY. Such PERMIT-SPECIFIC conditions FOR WILDLIFE HABITAT
54 PROTECTION shall be discontinued when final reclamation has occurred.
55 PERMIT-SPECIFIC CONDITIONS FOR WILDLIFE HABITAT PROTECTION THAT
1 DO NOT DIRECTLY IMPACT THE AFFECTED SURFACE OWNER'S PROPERTY OR
2 USE OF THAT PROPERTY, SUCH AS OFF-SITE COMPENSATORY MITIGATION
3 REQUIREMENTS, DO NOT REQUIRE THE CONSENT OF THE SURFACE OWNER
4 OR THE SURFACE OWNER'S APPOINTED TENANT.
5 (4)".
6
7 Amendment No. 8, by Representative Froelich.
8
9 Amend reengrossed bill, page 15, line 12, strike "publication. (1)" and
10 substitute "publication - repeal. (1) (a)".
11
12 Page 15, after line 14 insert:
13
14 "(b) THIS SECTION IS REPEALED ON THE EARLIER OF JULY 1, 2020,
15 OR THE DATE ON WHICH ALL RULES REQUIRED TO BE ADOPTED BY SECTION
16 34-60-106 (2.5)(a), (11)(c), AND (19) HAVE BECOME EFFECTIVE. THE
17 DIRECTOR SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING OF THE
18 DATE ON WHICH THE CONDITION SPECIFIED IN THIS SUBSECTION (1)(b) HAS
19 O C C U R R E D B Y E - M A I L I N G T H E N O T I C E T O
20 REVISOROFSTATUTES.GA@STATE.CO.US.".
21
2007 22 Page 15, line 15, strike "July 1, 2007 2019," and substitute "July 1,
23 ON THE EFFECTIVE DATE OF THIS SECTION (2)(a)(I), AS AMENDED,".
24
25 Page 16, strike lines 6 through 8 and substitute "WILDLIFE PROTECTION;
26 ONE MEMBER MUST HAVE TECHNICAL EXPERTISE RELEVANT TO THE ISSUES
27 CONSIDERED BY THE COMMISSION OR FORMAL TRAINING OR SUBSTANTIAL
28 EXPERIENCE IN soil conservation or".
29
30 Page 16, after line 24 insert:
31
32 "SECTION 9. In Colorado Revised Statutes, add 34-60-104.3 as
33 follows:
34 34-60-104.3. Oil and gas conservation commission - report -
35 publication. (1) THERE IS HEREBY CREATED, IN THE DEPARTMENT OF
36 NATURAL RESOURCES, THE OIL AND GAS CONSERVATION COMMISSION.
37 (2) (a) THE COMMISSION CONSISTS OF SEVEN MEMBERS, FIVE OF
38 WHOM SHALL BE APPOINTED BY THE GOVERNOR WITH THE CONSENT OF THE
39 SENATE. THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF NATURAL
40 RESOURCES AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC
41 HEALTH AND ENVIRONMENT, OR THE EXECUTIVE DIRECTORS' DESIGNEES,
42 ARE EX OFFICIO NONVOTING MEMBERS. A MAJORITY OF THE VOTING
43 COMMISSIONERS CONSTITUTE A QUORUM FOR THE TRANSACTION OF ITS
44 BUSINESS.
45 (b) EACH APPOINTED COMMISSIONER MUST BE A QUALIFIED
46 ELECTOR OF THIS STATE. EACH APPOINTED COMMISSIONER, BEFORE
47 ENTERING UPON THE DUTIES OF OFFICE, SHALL TAKE THE CONSTITUTIONAL
48 OATH OF OFFICE. EXCLUDING THE EXECUTIVE DIRECTORS FROM
49 CONSIDERATION, NO MORE THAN THREE MEMBERS OF THE COMMISSION
50 MAY BE MEMBERS OF THE SAME POLITICAL PARTY. TO THE EXTENT
51 POSSIBLE, CONSISTENT WITH THIS SUBSECTION (2), THE MEMBERS SHALL BE
52 APPOINTED TAKING INTO ACCOUNT THE NEED FOR GEOGRAPHICAL
53 REPRESENTATION OF AREAS OF THE STATE WITH HIGH LEVELS OF CURRENT
54 OR ANTICIPATED OIL AND GAS ACTIVITY OR EMPLOYMENT. THE APPOINTED
55 MEMBERS OF THE COMMISSION SHALL DEVOTE THEIR ENTIRE TIME TO THE
1 DUTIES OF THEIR OFFICES TO THE EXCLUSION OF ANY OTHER EMPLOYMENT
2 AND ARE ENTITLED TO RECEIVE COMPENSATION AS DESIGNATED BY LAW.
3 (c) ONE APPOINTED MEMBER MUST BE AN INDIVIDUAL WITH
4 SUBSTANTIAL EXPERIENCE IN THE OIL AND GAS INDUSTRY; ONE APPOINTED
5 MEMBER MUST HAVE SUBSTANTIAL EXPERTISE IN PLANNING OR LAND USE;
6 ONE APPOINTED MEMBER MUST HAVE FORMAL TRAINING OR SUBSTANTIAL
7 EXPERIENCE IN ENVIRONMENTAL PROTECTION, WILDLIFE PROTECTION, OR
8 RECLAMATION; ONE APPOINTED MEMBER MUST HAVE PROFESSIONAL
9 EXPERIENCE DEMONSTRATING AN ABILITY TO CONTRIBUTE TO THE
10 COMMISSION'S BODY OF EXPERTISE THAT WILL AID THE COMMISSION IN
11 MAKING SOUND, BALANCED DECISIONS; AND ONE APPOINTED MEMBER
12 MUST HAVE FORMAL TRAINING OR SUBSTANTIAL EXPERIENCE IN PUBLIC
13 HEALTH.
14 (d) NO PERSON MAY BE APPOINTED TO SERVE ON THE COMMISSION
15 OR HOLD THE OFFICE OF COMMISSIONER IF THE PERSON HAS A CONFLICT OF
16 INTEREST WITH OIL AND GAS DEVELOPMENT IN COLORADO. EXAMPLES OF
17 CONFLICTS OF INTEREST INCLUDE BEING REGISTERED AS A LOBBYIST AT
18 THE LOCAL OR STATE LEVELS, SERVING IN THE GENERAL ASSEMBLY WITHIN
19 THE PRIOR THREE YEARS, OR SERVING IN AN OFFICIAL CAPACITY WITH AN
20 ENTITY THAT EDUCATES OR ADVOCATES FOR OR AGAINST OIL AND GAS
21 ACTIVITY. THIS SUBSECTION (2)(d) SHALL BE CONSTRUED REASONABLY
22 WITH THE OBJECTIVE OF DISQUALIFYING FROM THE COMMISSION ANY
23 PERSON WHO MIGHT HAVE AN IMMEDIATE CONFLICT OF INTEREST OR WHO
24 MAY NOT BE ABLE TO MAKE BALANCED DECISIONS ABOUT OIL AND GAS
25 REGULATION IN COLORADO. A PERSON WHO HAS WORKED WITH OR FOR AN
26 ENERGY OR ENVIRONMENTAL ENTITY NEED NOT BE DISQUALIFIED IF THE
27 PERSON'S EXPERIENCE SHOWS SUBJECT MATTER KNOWLEDGE COUPLED
28 WITH AN ABILITY TO RENDER INFORMED, THOROUGH, AND BALANCED
29 DECISION-MAKING.
30 (e) MEMBERS OF THE COMMISSION SHALL BE APPOINTED FOR TERMS
31 OF FOUR YEARS EACH. THE GOVERNOR SHALL DESIGNATE ONE MEMBER OF
32 THE COMMISSION AS CHAIR OF THE COMMISSION. THE CHAIR SHALL
33 DELEGATE ROLES AND RESPONSIBILITIES TO COMMISSIONERS AND THE
34 DIRECTOR. THE GOVERNOR MAY AT ANY TIME REMOVE ANY APPOINTED
35 MEMBER OF THE COMMISSION, AND BY APPOINTMENT THE GOVERNOR
36 SHALL FILL ANY VACANCY ON THE COMMISSION. IN CASE ONE OR MORE
37 VACANCIES OCCUR ON THE SAME DAY, THE GOVERNOR SHALL DESIGNATE
38 THE ORDER OF FILLING VACANCIES.
39 (3) THE COMMISSION SHALL REPORT TO THE EXECUTIVE DIRECTOR
40 OF THE DEPARTMENT OF NATURAL RESOURCES AT SUCH TIMES AND ON
41 SUCH MATTERS AS THE EXECUTIVE DIRECTOR MAY REQUIRE.
42 (4) PUBLICATIONS OF THE COMMISSION CIRCULATED IN QUANTITY
43 OUTSIDE THE EXECUTIVE BRANCH ARE SUBJECT TO THE APPROVAL AND
44 CONTROL OF THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF NATURAL
45 RESOURCES.
46 (5) THIS SECTION TAKES EFFECT ON THE EARLIER OF JULY 1, 2020,
47 OR THE DATE ON WHICH ALL RULES REQUIRED TO BE ADOPTED BY SECTION
48 34-60-106 (2.5)(a), (11)(c), AND (19) HAVE BECOME EFFECTIVE. THE
49 DIRECTOR SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING OF THE
50 DATE ON WHICH THE CONDITION SPECIFIED IN THIS SUBSECTION (5) HAS
51 O C C U R R E D B Y E - M A I L I N G T H E N O T I C E T O
52 REVISOROFSTATUTES.GA@STATE.CO.US.".
53
54 Renumber succeeding sections accordingly.
55
1 Amendment No. 9, by Representative Galindo.
2
3 Amend reengrossed bill, page 29, line 13, strike "FIFTY" and substitute
4 "FORTY-FIVE".
5
6 Page 29, line 16, after the period add "MINERAL INTERESTS THAT ARE
7 OWNED BY A PERSON WHO CANNOT BE LOCATED THROUGH REASONABLE
8 DILIGENCE ARE EXCLUDED FROM THE CALCULATION.".
9
10 Page 30, strike lines 19 through 25 and substitute:
11
12 "(c) (I) A nonconsenting owner of a tract in a drilling unit that is
13 not subject to any lease or other contract for the development thereof for
14 oil and gas DEVELOPMENT shall be deemed to have a landowner's
15 proportionate royalty of:
16 (A) twelve and one-half FOR A GAS WELL, THIRTEEN percent until
17 such time as the consenting owners recover, only out of the nonconsenting
18 owner's proportionate seven-eighths EIGHTY-SEVEN-PERCENT share of
19 production, the costs specified in subsection (7)(b) of this section; OR
20 (B) FOR AN OIL WELL, SIXTEEN PERCENT UNTIL THE CONSENTING
21 OWNERS RECOVER, ONLY OUT OF THE NONCONSENTING OWNER'S
22 PROPORTIONATE EIGHTY-FOUR-PERCENT SHARE OF PRODUCTION, THE
23 COSTS SPECIFIED IN SUBSECTION (7)(b) OF THIS SECTION.
24 (II) After".
25
26 Amendment No. 10, by Representative McLachlan.
27
28 Amend reengrossed bill, page 21, after line 2 insert:
29
30 "(c) NOTHING IN THIS ARTICLE 60 ALTERS THE AUTHORITY FOR THE
31 REGULATION OF AIR POLLUTION ON THE SOUTHERN UTE INDIAN
32 RESERVATION AS SET FORTH IN ARTICLE 62 OF TITLE 24 AND PART 13 OF
33 ARTICLE 7 OF TITLE 25.".
34
35 Page 21, lines 13 and 14, strike "ALL AFFECTED LOCAL GOVERNMENTS"
36 and substitute "THE LOCAL GOVERNMENT WITH JURISDICTION".
37
38 Page 21, line 15, strike "GOVERNMENTS'" and substitute "GOVERNMENT'S".
39
40 Page 21 line 16, strike "NO AFFECTED LOCAL GOVERNMENT REGULATES"
41 and substitute "THE LOCAL GOVERNMENT WITH JURISDICTION DOES NOT
42 REGULATE".
43
44 Page 22, line 23, strike "shooting" and substitute "shooting STIMULATING".
45
46 Page 27, line 5, after "AS" insert "SURFACE".
47
48 Page 27, line 7, strike "WELL" and substitute "WELD".
49
50 Amendment No. 11, by Representative Becker.
51
52 Amend reengrossed bill, page 8, line 2, strike "OIL AND GAS OPERATIONS"
53 and substitute "THE SURFACE IMPACTS OF OIL AND GAS OPERATIONS IN A
54 REASONABLE MANNER".
55
1 Page 8, line 5, after the period insert "NOTHING IN THIS SUBSECTION (1)(h)
2 IS INTENDED TO ALTER, EXPAND, OR DIMINISH THE AUTHORITY OF LOCAL
3 GOVERNMENTS TO REGULATE AIR QUALITY UNDER SECTION 25-7-128.".
4
5 Amendment No. 12, by Representative Becker.
6
7 Amend reengrossed bill, page 21, lines 26 and 27, strike "LAW BUT
8 SUBJECT TO SUBSECTION (1)(f)(III)(B) OF THIS SECTION," and substitute
9 "LAW, INCLUDING SUBSECTION (11) OF THIS SECTION,".
10
11 Page 22, line 4, strike "REFUSE TO ISSUE A PERMIT" and substitute "DELAY
12 THE FINAL DETERMINATION REGARDING A PERMIT APPLICATION".
13
14 Page 23, lines 6 and 7, strike "NOT ACT ARBITRARILY OR CAPRICIOUSLY IN
15 REGULATING OIL AND GAS OPERATIONS SO AS" and substitute "REGULATE
16 OIL AND GAS OPERATIONS IN A REASONABLE MANNER".
17
18 Amendment No. 13, by Representative Jaquez Lewis.
19
20 Amend reengrossed bill, page 6, strike lines 11 and 12 and substitute
21 "COMPOUNDS, AND OXIDES OF NITROGEN FROM OIL AND NATURAL GAS
22 EXPLORATION AND PRODUCTION FACILITIES AND NATURAL GAS FACILITIES
23 IN THE PROCESSING, GATHERING AND BOOSTING, STORAGE, AND
24 TRANSMISSION SEGMENTS OF THE NATURAL GAS SUPPLY CHAIN.".
25
26 Page 6, lines 13 and 14, strike "LEAK DETECTION AND REPAIR".
27
28 Page 6, strike lines 17 through 19 and substitute:
29
30 "(A) A REQUIREMENT THAT LEAK DETECTION AND REPAIR
31 INSPECTIONS OCCUR AT ALL WELL PRODUCTION FACILITIES ON, AT A
32 MINIMUM, A SEMIANNUAL BASIS OR THAT AN ALTERNATIVE APPROVED
33 INSTRUMENT MONITORING METHOD IS IN PLACE PURSUANT TO EXISTING
34 RULES.".
35
36 Page 6, line 22, strike the third "AND".
37
38 Page 6, strike line 27 and substitute "DWELLINGS; AND
39 (D) A REQUIREMENT TO REDUCE EMISSIONS FROM PNEUMATIC
40 DEVICES. THE COMMISSION SHALL CONSIDER REQUIRING OIL AND GAS
41 OPERATORS, UNDER APPROPRIATE CIRCUMSTANCES, TO USE PNEUMATIC
42 DEVICES THAT DO NOT VENT NATURAL GAS.".
43
44 Page 7, strike lines 12 through 14 and substitute "AIR POLLUTION FROM OIL
45 AND GAS FACILITIES LISTED IN SUBSECTION (10)(a) OF THIS SECTION,
46 INCLUDING DURING PRE-PRODUCTION ACTIVITIES, DRILLING, AND
47 COMPLETION.".
48
49 Amendment No. 14, by Representative McKean.
50
51 Amend reengrossed bill, page 9, line 6, strike "LOCAL GOVERNMENTS
52 HAVE" and substitute "A LOCAL GOVERNMENT WITHIN ITS RESPECTIVE
53 JURISDICTION HAS".
54
1 Page 9, line 19 after "LOCATION" insert "WITHIN ITS RESPECTIVE
2 JURISDICTION".
3
4 Page 9, line 24, after "GOVERNMENT" insert "HAVING LAND USE
5 JURISDICTION".
6
7 Page 28, line 25, strike "WITH" and substitute "HAVING".
8
9 Page 29, line 1, strike "WITH" and substitute "HAVING".
10
11 As amended, ordered revised and placed on the Calendar for Third
12 Reading and Final Passage.

House Journal, March 29
17 Amend revised bill, page 19, line 18, strike "EACH." and substitute "EACH;
18 EXCEPT THAT THE INITIAL TERMS OF TWO MEMBERS ARE TWO YEARS.".