Second Regular Session Seventy-third General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 22-0306.01 Sarah Lozano x3858 HOUSE BILL 22-1348 House Committees Senate Committees Energy & Environment Transportation & Energy Appropriations Appropriations A BILL FOR AN ACT C ONCERNING ENHANCED OVERSIGHT OF THE CHEMICALS USED IN OIL101 AND GAS PRODUCTION, AND, IN CONNECTION THEREWITH,102 MAKING AN APPROPRIATION .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill establishes a regulatory scheme that requires disclosure of certain chemical information for products used in downhole oil and gas operations (chemical disclosure information). On or before July 31, 2023, the oil and gas conservation commission (commission) is required to utilize or develop a chemical disclosure website to collect and share SENATE Amended 2nd Reading May 10, 2022 HOUSE 3rd Reading Unamended April 27, 2022 HOUSE Amended 2nd Reading April 26, 2022 HOUSE SPONSORSHIP Froelich and Caraveo, Amabile, Bacon, Bernett, Cutter, Duran, Gray, Hooton, Jodeh, Kennedy, Kipp, Lindsay, Lontine, Sirota, Bird, Boesenecker, Gonzales-Gutierrez, McCormick, Ricks, Titone, Valdez A., Weissman SENATE SPONSORSHIP Winter, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. certain chemical disclosure information to the public (chemical disclosure website). On and after July 31, 2023, a manufacturer that sells or distributes a chemical product for use in underground oil and gas operations (downhole operations) in the state must disclose to the commission: ! The trade name of the chemical product; ! A list of the names of each chemical used in the chemical product; ! The estimated amount of each chemical used in the chemical product; and ! A description of the intended purpose of the chemical used in the chemical product. The manufacturer must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals. For manufacturers that were already selling or distributing a chemical product for use in downhole operations in the state before July 31, 2023, the disclosure and declaration must be made at least 30 days before July 31, 2023. For manufacturers that begin to sell or distribute a chemical product for use in downhole operations in the state on or after July 31, 2023, the disclosure and declaration must be made at least 30 days before the manufacturer begins selling or distributing the chemical product. On and after July 31, 2023, an operator of downhole operations using a chemical product must disclose to the commission: ! The date of commencement of downhole operations; ! The county of the well site where downhole operations are being conducted; ! The numerical identifier assigned by the American Petroleum Institute to the well where downhole operations are being conducted; and ! The trade names and quantities of any chemical products the operator plans to use in downhole operations. The operator must also provide the commission with a declaration that the chemical product contains no intentionally added perfluoroalkyl or polyfluoroalkyl chemicals. For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure and declaration must be made at least 75 days before July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure and declaration must be made at least 75 days before commencement of downhole operations. The commission will use the chemical disclosure information to create a chemical disclosure list for each well site, which will include: ! An alphabetical list of names of chemicals that will be used 1348 -2- in downhole operations at the well site; and ! The total estimated amount of each chemical that will be used at the well site. The commission will post each chemical disclosure list on the chemical disclosure website. The commission shall provide the chemical disclosure list to the applicable operator within 7 days after the operator's disclosures. Prior to the commencement of downhole operations, the operator is required to disclose the chemical disclosure list to communities near where downhole operations will be conducted, local public water administrators, and, if there is a high-priority habitat near where downhole operations are being conducted, the division of parks and wildlife. For downhole operations that commenced before July 31, 2023, and that will be ongoing on July 31, 2023, the disclosure of the chemical disclosure list by the operator to these entities must be made at least 60 days before July 31, 2023. For downhole operations that commence on or after July 31, 2023, the disclosure of the chemical disclosure list by the operator to these entities must be made at least 60 days before commencement of downhole operations. If a manufacturer believes that any information that will be included on a chemical disclosure list is a trade secret, the manufacturer must file a trade secret claim with the commission. If the commission determines that the information covered by the trade secret claim constitutes a trade secret, the commission shall not include the information in any applicable chemical disclosure list. On or before July 31, 2023, the commission must promulgate rules that set standards for the disclosure of the chemical disclosure information to: ! An officer or employee of the United States, the state, or a local government in connection with the officer's or employee's official duties; ! Contractors of the United States, the state, or a local government if the commission determines that the disclosure is necessary for performance of a contract or the protection of public health and safety; ! A health-care professional in connection with an emergency or with diagnosing or treating a patient; and ! In order to protect public safety, a person who is employed in public health or a scientist or researcher employed by an institution of higher education. No later than February 1, 2025, and no later than February 1 each year thereafter, the commission shall submit and present an annual report to the general assembly based on the chemical disclosure information. 1348-3- Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 hereby finds and declares that:3 (a) There are tens of thousands of active oil and gas wells in4 Colorado;5 (b) Many different types of products that contain chemical6 additives are used by operators during the drilling and stimulation of these7 wells to break up the subsurface and extract oil and gas from the ground;8 (c) While water and sand can make up the vast majority of these9 products, the amount of chemical additives injected into a well can add10 up to tens of thousands of gallons because of the amount of these11 products that are used during the course of an oil and gas operation;12 (d) When these chemical additives are injected into a well, there13 is a high risk of contamination to nearby groundwater or surface water;14 and15 (e) Some chemicals used in chemical products, such as16 perfluoroalkyl and polyfluoroalkyl chemicals and biocides, have high17 aquatic toxicity and can be incredibly harmful to human health and the18 environment.19 (2) The general assembly further finds and declares that:20 (a) Even though exposure to these chemical additives poses a21 danger to public health and the environment, scientists, state and local22 regulators, and the public lack full access to information about the23 chemical additives used in oil and gas production in the state;24 (b) While Colorado requires the reporting of certain chemical25 information for products that are used in hydraulic fracturing (fracking)26 operations for input into a third-party database, there are broad27 1348 -4- exemptions allowed for chemical information that is deemed proprietary1 or confidential by the operator or supplier of a product;2 (c) In recent years, thousands of operators who conduct fracking3 operations have used trade secrecy claims to avoid disclosing information4 about the chemicals that they use in their operations;5 (d) Operators and suppliers of the products often do not have6 knowledge of the chemical information that they are required to report to7 the state;8 (e) As a result of the amount of trade secrecy claims and the9 operators' and suppliers' lack of knowledge of specific chemical10 information, information about the chemical additives that are used in11 fracking operations in the state is vastly underreported;12 (f) Greater transparency regarding chemical use in oil and gas13 production is urgently needed and can be achieved by:14 (I) Requiring manufacturers and disclosers, rather than operators,15 to disclose information about chemicals that are used in oil and gas16 production in the state;17 (II) Requiring the Colorado oil and gas conservation commission18 to gather the chemical information so that the disclosure of specific19 chemical information can be separated from the trade name of a product,20 which will thereby protect any proprietary information; and21 (III) Ensuring that operators disclose chemical information to the22 state, local governments, and communities in close proximity to23 operations after the operations have commenced; and24 (g) A full inventory of the chemicals used in oil and gas25 production will:26 (I) Assist state agencies, local governments, health-care27 1348 -5- professionals, public health officials, and scientists in determining if1 highly hazardous chemicals are being used in oil and gas production; and2 3 (II) Encourage the disclosers and users of products that contain4 highly hazardous chemicals to use less toxic alternatives in future5 products and oil and gas operations.6 (3) Therefore the general assembly determines and declares that7 the state should enact a regulatory scheme that provides full disclosure of8 the chemicals that are being deposited into the environment through oil9 and gas production because:10 (a) Coloradans have the right to know what chemicals are being11 deposited into the environment where they live, work, and recreate; and12 (b) State and local governments and regulators need this chemical13 information to adequately protect the people, water systems, wildlife, and14 environment of Colorado.15 SECTION 2. In Colorado Revised Statutes, add 34-60-132 as16 follows:17 34-60-132. Disclosure of chemicals used in downhole oil and18 gas operations - chemical disclosure lists - community notification19 - - reports - definitions - rules - repeal. (1) A S USED IN THIS SECTION,20 UNLESS THE CONTEXT OTHERWISE REQUIRES :21 (a) (I) "A DDITIVE" MEANS A CHEMICAL OR COMBINATION OF22 CHEMICALS ADDED TO A BASE FLUID FOR USE IN A HYDRAULIC23 FRACTURING TREATMENT .24 (II) "A DDITIVE" INCLUDES PROPPANTS.25 (b) "B ASE FLUID" MEANS THE CONTINUOUS PHASE FLUID TYPE ,26 SUCH AS WATER, USED IN A HYDRAULIC FRACTURING TREATMENT .27 1348 -6- (c) "CHEMICAL" MEANS ANY ELEMENT, CHEMICAL COMPOUND, OR1 MIXTURE OF ELEMENTS OR CHEMICAL COMPOUNDS THAT HAS A SPECIFIC2 NAME OR IDENTITY, INCLUDING A CHEMICAL ABSTRACTS SERVICE3 NUMBER.4 (d) "C HEMICAL ABSTRACTS SERVICE NUMBER" MEANS THE UNIQUE5 NUMERICAL IDENTIFIER ASSIGNED BY THE CHEMICAL ABSTRACTS SERVICE6 TO A CHEMICAL.7 (e) "C HEMICAL DISCLOSURE INFORMATION " MEANS THE8 INFORMATION DISCLOSED TO THE COMMISSION UNDER SUBSECTIONS9 (2)(a)(I) AND (3)(a)(I) OF THIS SECTION.10 (f) "C HEMICAL DISCLOSURE LIST" MEANS A LIST OF CHEMICALS11 USED IN DOWNHOLE OPERATIONS AT A WELL SITE .12 (g) "C HEMICAL DISCLOSURE WEBSITE" MEANS A WEBSITE THAT IS13 CAPABLE OF DISPLAYING CHEMICAL DISCLOSURE LISTS AND CAN BE14 ACCESSED BY THE PUBLIC.15 (h) (I) "C HEMICAL PRODUCT" MEANS ANY PRODUCT THAT16 CONSISTS OF ONE OR MORE CHEMICALS AND IS SOLD OR DISTRIBUTED FOR17 USE IN DOWNHOLE OPERATIONS IN THE STATE .18 (II) "C HEMICAL PRODUCT" INCLUDES ADDITIVES, BASE FLUIDS,19 AND HYDRAULIC FRACTURING FLUIDS .20 (III) "CHEMICAL PRODUCT" DOES NOT INCLUDE THE STRUCTURAL21 AND MECHANICAL COMPONENTS OF A WELL SITE WHERE DOWNHOLE22 OPERATIONS ARE BEING CONDUCTED .23 (i) (I) "DIRECT VENDOR" MEANS ANY DISTRIBUTOR, SUPPLIER, OR24 OTHER ENTITY THAT SELLS OR SUPPLIES ONE OR MORE CHEMICAL25 PRODUCTS DIRECTLY TO AN OPERATOR OR SERVICE PROVIDER FOR USE AT26 A WELL SITE.27 1348 -7- (II) "DIRECT VENDOR" DOES NOT INCLUDE ENTITIES THAT1 MANUFACTURE, PRODUCE, OR FORMULATE CHEMICAL PRODUCTS FOR2 FURTHER MANUFACTURE, FORMULATION, SALE, OR DISTRIBUTION BY3 THIRD PARTIES PRIOR TO BEING SUPPLIED DIRECTLY TO OPERATORS OR4 SERVICE PROVIDERS.5 (j) "DISCLOSER" MEANS AN OPERATOR, ANY SERVICE PROVIDER6 USING ONE OR MORE CHEMICAL PRODUCTS IN THE COURSE OF DOWNHOLE7 OPERATIONS, AND ANY DIRECT VENDOR THAT PROVIDES ONE OR MORE8 CHEMICAL PRODUCTS DIRECTLY TO THE OPERATOR OR SERVICE PROVIDER9 FOR USE AT A WELL SITE.10 (k) "DIVISION" MEANS THE DIVISION OF PARKS AND WILDLIFE IN11 THE DEPARTMENT OF NATURAL RESOURCES .12 (l) "DOWNHOLE OPERATIONS " MEANS OIL AND GAS PRODUCTION13 OPERATIONS THAT ARE CONDUCTED UNDERGROUND .14 (m) "HEALTH-CARE PROFESSIONAL" MEANS A PHYSICIAN ,15 PHYSICIAN ASSISTANT, NURSE PRACTITIONER, REGISTERED NURSE, OR16 EMERGENCY MEDICAL SERVICE PROVIDER LICENSED OR CERTIFIED BY THE17 STATE.18 (n) "HIGH-PRIORITY HABITAT" MEANS HABITAT AREAS IDENTIFIED19 BY THE DIVISION WHERE MEASURES TO AVOID, MINIMIZE, AND MITIGATE20 ADVERSE IMPACTS TO WILDLIFE HAVE BEEN IDENTIFIED TO PROTECT21 BREEDING, NESTING, FORAGING, MIGRATING, OR OTHER USES BY WILDLIFE.22 (o) "HYDRAULIC FRACTURING FLUID " MEANS THE FLUID ,23 INCLUDING ANY BASE FLUID AND ADDITIVES , USED TO PERFORM A24 HYDRAULIC FRACTURING TREATMENT .25 (p) "HYDRAULIC FRACTURING TREATMENT " MEANS ALL STAGES OF26 THE TREATMENT OF A WELL BY THE APPLICATION OF HYDRAULIC27 1348 -8- FRACTURING FLUID UNDER PRESSURE , WHICH TREATMENT IS EXPRESSLY1 DESIGNED TO INITIATE OR PROPAGATE FRACTURES IN AN UNDERGROUND2 GEOLOGIC FORMATION TO ENHANCE THE PRODUCTION OF OIL AND GAS .3 (q) "MANUFACTURER" MEANS A PERSON OR ENTITY THAT MAKES,4 ASSEMBLES, OR OTHERWISE GENERATES A CHEMICAL PRODUCT OR WHOSE5 TRADE NAME IS AFFIXED TO A CHEMICAL PRODUCT .6 (r) "PERFLUOROALKYL AND POLYFLUOROALKYL SUBSTANCES " OR7 "PFAS CHEMICALS" HAS THE MEANING SET FORTH IN SECTION 25-5-13028 (7).9 (s) "PROPPANTS" MEANS MATERIALS INSERTED OR INJECTED INTO10 AN UNDERGROUND GEOLOGIC FORMATION DURING A HYDRAULIC11 FRACTURING TREATMENT THAT ARE INTENDED TO PREVENT FRACTURES12 FROM CLOSING.13 (t) "PUBLIC WATER SYSTEMS" HAS THE MEANING SET FORTH IN14 SECTION 25-1.5-201 (1).15 16 (u) "TYPE III AQUIFER" MEANS AN AQUIFER THAT CONSISTS OF17 UNCONSOLIDATED GEOLOGIC MATERIAL , INCLUDING ALLUVIAL ,18 COLLUVIAL, OR OTHER CONSOLIDATED MATERIALS .19 (v) "WELL SITE" MEANS THE AREA THAT IS DIRECTLY DISTURBED20 DURING OIL AND GAS OPERATIONS.21 (2) Discloser chemical disclosure information and declaration.22 (a) O N AND AFTER JULY 31, 2023, AND SUBJECT TO SUBSECTION (2)(b) OF23 THIS SECTION, A DISCLOSER THAT SELLS OR DISTRIBUTES A CHEMICAL24 PRODUCT FOR USE IN DOWNHOLE OPERATIONS IN THE STATE OR THAT USES25 A CHEMICAL PRODUCT IN DOWNHOLE OPERATIONS IN THE STATE MUST:26 (I) D ISCLOSE TO THE COMMISSION:27 1348 -9- (A) THE TRADE NAME OF THE CHEMICAL PRODUCT ; AND1 (B) A LIST OF THE NAMES AND CHEMICAL ABSTRACTS SERVICE2 NUMBERS OF EACH CHEMICAL USED IN THE CHEMICAL PRODUCT ; AND 3 (C) I F A DISCLOSER BELIEVES THAT A CHEMICAL CONSTITUENT OF 4 A CHEMICAL PRODUCT IS A TRADE SECRET OR IS PROPRIETARY5 INFORMATION, NEVERTHELESS DISCLOSE THE CHEMICAL CONSTITUENT ;6 AND7 8 (II) P ROVIDE A WRITTEN DECLARATION TO THE COMMISSION THAT9 THE CHEMICAL PRODUCT CONTAINS NO INTENTIONALLY ADDED PFAS10 CHEMICALS.11 (b) (I) (A) F OR DISCLOSERS THAT WERE ALREADY SELLING OR12 DISTRIBUTING A CHEMICAL PRODUCT FOR USE IN DOWNHOLE OPERATIONS13 IN THE STATE BEFORE JULY 31, 2023,OR THAT WERE USING THE CHEMICAL14 PRODUCT BEFORE JULY 31, 2023, THE INFORMATION AND DECLARATION15 REQUIRED TO BE PROVIDED PURSUANT TO SUBSECTION (2)(a) OF THIS16 SECTION MUST BE PROVIDED TO THE COMMISSION AT LEAST THIRTY DAYS17 BEFORE JULY 31, 2023.18 (B) T HIS SUBSECTION (2)(b)(I) IS REPEALED, EFFECTIVE JULY 1,19 2024.20 (II) F OR DISCLOSERS THAT BEGIN TO SELL, DISTRIBUTE, OR USE A21 CHEMICAL PRODUCT FOR USE IN DOWNHOLE OPERATIONS IN THE STATE ON22 OR AFTER JULY 31, 2023, THE INFORMATION AND DECLARATION REQUIRED23 TO BE PROVIDED PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION MUST24 BE PROVIDED TO THE COMMISSION AT LEAST THIRTY DAYS BEFORE THE25 DISCLOSER BEGINS SELLING, DISTRIBUTING, OR USING THE CHEMICAL26 PRODUCT.27 1348 -10- (c) THE COMMISSION SHALL ENSURE THAT THE INFORMATION1 AND DECLARATION REQUIRED TO BE PROVIDED UNDER SUBSECTION (2)(a)2 OF THIS SECTION IS PROVIDED TO THE COMMISSION .3 (d) IF A MANUFACTURER DOES NOT PROVIDE THE INFORMATION4 DESCRIBED IN SUBSECTION (2)(a)(I) OF THIS SECTION FOR A CHEMICAL5 PRODUCT THAT IT SELLS OR DISTRIBUTES FOR USE IN DOWNHOLE6 OPERATIONS IN THE STATE TO A DISCLOSER UPON THE REQUEST OF THE7 DISCLOSER OR THE COMMISSION, THE MANUFACTURER MUST PROVIDE THE8 COMMISSION WITH A TRADE SECRET FORM OF ENTITLEMENT , AS9 DETERMINED BY THE COMMISSION BY RULE, FOR THE CHEMICAL PRODUCT.10 AT A MINIMUM, THE MANUFACTURER MUST INCLUDE IN THE TRADE SECRET11 FORM OF ENTITLEMENT FOR THE CHEMICAL PRODUCT :12 (I) THE NAME OF EACH CHEMICAL USED IN THE CHEMICAL13 PRODUCT; AND14 (II) THE CHEMICAL ABSTRACTS SERVICE NUMBER OF EACH15 CHEMICAL USED IN THE CHEMICAL PRODUCT .16 17 (e) IF, AFTER MAKING A REQUEST TO THE MANUFACTURER OF THE18 CHEMICAL PRODUCT PURSUANT TO SUBSECTION (2)(d) OF THIS SECTION,19 A DISCLOSER IS UNABLE TO DISCLOSE THE INFORMATION DESCRIBED IN20 SUBSECTION (2)(a)(I) OF THIS SECTION, THE DISCLOSER SHALL DISCLOSE21 TO THE COMMISSION:22 (I) THE NAME OF THE CHEMICAL PRODUCT 'S MANUFACTURER;23 (II) THE CHEMICAL PRODUCT'S TRADE NAME;24 (III) THE AMOUNT OR WEIGHT OF THE CHEMICAL PRODUCT ; AND25 (IV) A SAFETY DATA SHEET FOR THE CHEMICAL PRODUCT, IF IT IS26 AVAILABLE FOR DISCLOSURE BY THE DISCLOSER AND PROVIDES THE27 1348 -11- INFORMATION DESCRIBED IN SUBSECTION (2)(a)(I) OF THIS SECTION.1 (f) I N THE EVENT THAT THE DISCLOSER IS UNABLE TO DISCLOSE 2 THE INFORMATION DESCRIBED IN SUBSECTION (2)(a)(I) OF THIS SECTION,3 THE COMMISSION SHALL OBTAIN THE INFORMATION DESCRIBED IN4 SUBSECTION (2)(a)(I) OF THIS SECTION FROM THE MANUFACTURER .5 (3) Operator chemical disclosure information - declaration.6 (a) O N AND AFTER JULY 31, 2023, AND SUBJECT TO SUBSECTION (3)(b) OF7 THIS SECTION, AN OPERATOR OF DOWNHOLE OPERATIONS USING A8 CHEMICAL PRODUCT MUST :9 (I) D ISCLOSE TO THE COMMISSION:10 (A) T HE DATE OF COMMENCEMENT OF DOWNHOLE OPERATIONS ;11 (B) T HE COUNTY OF THE WELL SITE WHERE DOWNHOLE12 OPERATIONS ARE BEING OR WILL BE CONDUCTED ;13 (C) T HE UNIQUE NUMERICAL IDENTIFIER ASSIGNED BY THE 14 A MERICAN PETROLEUM INSTITUTE TO THE WELL WHERE DOWNHOLE 15 OPERATIONS ARE BEING OR WILL BE CONDUCTED AND THE US WELL16 NUMBER ASSIGNED TO THE WELL WHERE DOWNHOLE OPERATIONS ARE17 BEING OR WILL BE CONDUCTED; AND18 (D) T HE TRADE NAMES AND QUANTITIES OF ANY CHEMICAL19 PRODUCTS THE OPERATOR USED IN DOWNHOLE OPERATIONS ; AND20 (II) P ROVIDE A WRITTEN DECLARATION TO THE COMMISSION THAT21 THE CHEMICAL PRODUCT CONTAINS NO INTENTIONALLY ADDED PFAS22 CHEMICALS.23 (b) (I) (A) F OR A DOWNHOLE OPERATION THAT COMMENCED24 BEFORE JULY 31, 2023, AND THAT WILL BE ONGOING ON JULY 31, 2023,25 THE INFORMATION AND DECLARATION REQUIRED TO BE PROVIDED26 PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST BE PROVIDED TO27 1348 -12- THE COMMISSION WITHIN ONE HUNDRED TWENTY DAYS AFTER JULY 31,1 2023.2 (B) T HIS SUBSECTION (3)(b)(I) IS REPEALED, EFFECTIVE JULY 1,3 2024.4 (II) F OR A DOWNHOLE OPERATION THAT COMMENCES ON OR AFTER5 J ULY 31, 2023, THE INFORMATION AND DECLARATION REQUIRED TO BE6 PROVIDED PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST BE7 PROVIDED TO THE COMMISSION WITHIN ONE HUNDRED TWENTY DAYS8 AFTER THE COMMENCEMENT OF THE DOWNHOLE OPERATION .9 (c) T HE COMMISSION SHALL ENSURE THAT THE INFORMATION10 AND DECLARATION REQUIRED TO BE PROVIDED UNDER SUBSECTION (3)(a)11 OF THIS SECTION IS PROVIDED TO THE COMMISSION .12 (4) Change in chemical disclosure information. I F THERE IS A13 CHANGE IN THE INFORMATION PROVIDED UNDER SUBSECTION (2)(a)(I) OR14 (3)(a)(I) OF THIS SECTION, THE DISCLOSER OR OPERATOR, OR IN THE CASE15 OF DISCLOSURE UNDER SUBSECTION (2)(d) OF THIS SECTION, THE16 MANUFACTURER, MUST SUBMIT THE CHANGE TO THE COMMISSION WITHIN17 THIRTY DAYS AFTER THE DATE THE DISCLOSER , MANUFACTURER, OR18 OPERATOR FIRST KNEW OF THE CHANGE .19 (5) Chemical disclosure lists. (a) T HE COMMISSION SHALL USE20 THE CHEMICAL DISCLOSURE INFORMATION TO CREATE A CHEMICAL21 DISCLOSURE LIST FOR EACH APPLICABLE WELL SITE .22 23 (b) (I) T HE COMMISSION SHALL INCLUDE IN THE CHEMICAL 24 DISCLOSURE LIST AN ALPHABETICAL LIST OF THE NAMES AND CHEMICAL25 A BSTRACTS SERVICE REGISTRY NUMBERS OF EACH CHEMICAL USED IN 26 DOWNHOLE OPERATIONS AT THE WELL SITE .27 1348 -13- (II) NOTWITHSTANDING ANY LAW TO THE CONTRARY , THE1 COMMISSION SHALL INCLUDE THE NAMES AND CHEMICAL ABSTRACTS2 S ERVICE REGISTRY NUMBERS OF ALL CHEMICALS USED IN DOWNHOLE 3 OPERATIONS IN THE CHEMICAL DISCLOSURE LIST AND SHALL NOT PROTECT4 THE NAMES OR CHEMICAL ABSTRACTS SERVICE REGISTRY NUMBERS OF5 ANY CHEMICAL AS A TRADE SECRET OR PROPRIETARY INFORMATION . ANY6 FORMULAS AND PROCESSES CONTINUE TO HAVE TRADE SECRET7 PROTECTIONS.8 (c) T HE COMMISSION SHALL NOT INCLUDE IN THE CHEMICAL9 DISCLOSURE LIST:10 (I) T HE TRADE NAME OF A CHEMICAL PRODUCT USED IN DOWNHOLE11 OPERATIONS AT THE WELL SITE; OR12 (II) T HE TOTAL AMOUNT OF A CHEMICAL IN A CHEMICAL PRODUCT . 13 (d) N O LATER THAN THIRTY DAYS AFTER AN OPERATOR MAKES THE14 DISCLOSURES REQUIRED UNDER SUBSECTION (3) OF THIS SECTION, THE15 COMMISSION SHALL:16 (I) P OST THE CHEMICAL DISCLOSURE LIST ON THE CHEMICAL17 DISCLOSURE WEBSITE AND INCLUDE THE DATE OF THE SUBMISSION OF THE18 CHEMICAL DISCLOSURE LIST TO THE COMMISSION IN THE POST ; AND19 (II) P ROVIDE THE CHEMICAL DISCLOSURE LIST TO THE OPERATOR20 OF THE APPLICABLE WELL.21 (e) T HE COMMISSION SHALL:22 (I) P OST AN UPDATED CHEMICAL DISCLOSURE LIST IF THERE ARE23 ANY NOTIFICATIONS RECEIVED FROM A DISCLOSER , MANUFACTURER, OR24 OPERATOR UNDER SUBSECTION (4) OF THIS SECTION AND INCLUDE THE25 DATE OF THE NOTIFICATION BY THE DISCLOSER , MANUFACTURER, OR26 OPERATOR IN THE POST; AND27 1348 -14- (II) ENSURE THAT:1 (A) A LL CHEMICAL DISCLOSURE LISTS AND UPDATED CHEMICAL2 DISCLOSURE LISTS REMAIN VIEWABLE BY THE PUBLIC ;3 (B) T HE CHEMICAL DISCLOSURE WEBSITE IS SEARCHABLE BY4 CHEMICAL, DATE OF SUBMISSION OR UPDATE OF A CHEMICAL DISCLOSURE5 LIST, NAME AND ADDRESS OF THE OPERATOR , AND COUNTY OF THE WELL6 SITE; AND7 (C) T HE CHEMICAL DISCLOSURE WEBSITE ALLOWS MEMBERS OF8 THE PUBLIC TO DOWNLOAD CHEMICAL DISCLOSURE LISTS IN AN9 ELECTRONIC, DELIMITED FORMAT.10 (6) Community notification. (a) ON OR BEFORE JULY 31, 2023,11 AND SUBJECT TO SUBSECTION (6)(b) OF THIS SECTION, AN OPERATOR12 SHALL PROVIDE THE CHEMICAL DISCLOSURE LIST TO :13 (I) A LL OWNERS OF MINERALS THAT ARE BEING DEVELOPED AT THE 14 WELL SITE;15 (II) A LL SURFACE OWNERS , BUILDING UNIT OWNERS , AND 16 RESIDENTS, INCLUDING TENANTS OF BOTH RESIDENTIAL AND COMMERCIAL17 PROPERTIES, THAT ARE WITHIN TWO THOUSAND SIX HUNDRED FORTY FEET18 OF THE WELL SITE;19 (III) T HE STATE LAND BOARD IF THE STATE OWNS MINERALS THAT 20 ARE BEING DEVELOPED AT THE WELL SITE ;21 (IV) T HE FEDERAL BUREAU OF LAND MANAGEMENT IF THE UNITED 22 S TATES OWNS THE MINERALS THAT ARE BEING DEVELOPED AT THE WELL 23 SITE;24 (V) T HE SOUTHERN UTE INDIAN TRIBE IF THE MINERALS BEING 25 DEVELOPED AT THE WELL SITE ARE WITHIN THE EXTERIOR BOUNDARY OF26 THE TRIBE'S RESERVATION AND ARE SUBJECT TO THE JURISDICTION OF THE27 1348 -15- COMMISSION;1 (VI) A LL SCHOOLS, CHILD CARE CENTERS , AND SCHOOL 2 GOVERNING BODIES WITHIN TWO THOUSAND SIX HUNDRED FORTY FEET OF3 THE WELL SITE;4 (VII) P OLICE DEPARTMENTS, FIRE DEPARTMENTS, EMERGENCY 5 SERVICE AGENCIES, AND FIRST RESPONDER AGENCIES THAT HAVE A6 JURISDICTION THAT INCLUDES THE WELL SITE;7 (VIII) L OCAL GOVERNMENTS THAT HAVE A JURISDICTION WITHIN 8 TWO THOUSAND SIX HUNDRED FORTY FEET OF THE WELL SITE ;9 (IX) THE ADMINISTRATOR OF ANY PUBLIC WATER SYSTEM THAT10 OPERATES:11 (A) A SURFACE WATER PUBLIC WATER SYSTEM INTAKE THAT IS12 LOCATED FIFTEEN STREAM MILES OR LESS DOWNSTREAM FROM THE WELL13 SITE;14 (B) A GROUNDWATER UNDER THE DIRECT INFLUENCE OF A15 SURFACE WATER PUBLIC WATER SYSTEM SUPPLY WELL WITHIN TWO16 THOUSAND SIX HUNDRED FORTY FEET OF THE WELL SITE ; AND17 (C) A PUBLIC WATER SYSTEM SUPPLY WELL COMPLETED IN A TYPE18 III AQUIFER WITHIN TWO THOUSAND SIX HUNDRED FORTY FEET OF THE19 WELL SITE; AND20 (X) THE DIVISION IF:21 (A) T HERE IS A HIGH-PRIORITY HABITAT AREA WITHIN ONE MILE OF22 THE WELL SITE; OR23 (B) T HERE IS A STATE WILDLIFE AREA, AS DEFINED IN SECTION24 33-1-102 (42), OR A STATE PARK OR RECREATION AREA WITHIN TWO25 THOUSAND SIX HUNDRED FORTY FEET OF THE WELL SITE .26 27 1348 -16- (b) THE CHEMICAL DISCLOSURE LIST MUST BE DISCLOSED IN1 ACCORDANCE WITH SUBSECTION (6)(a) OF THIS SECTION WITHIN THIRTY2 DAYS AFTER THE OPERATOR'S RECEIPT OF THE CHEMICAL DISCLOSURE LIST3 FROM THE COMMISSION.4 5 6 7 (7) Reporting to the general assembly. (a) (I) T HE COMMISSION8 SHALL PREPARE AN ANNUAL REPORT THAT INCLUDES A LIST OF THE9 CHEMICALS USED IN DOWNHOLE OPERATIONS IN THE STATE IN THE PRIOR10 CALENDAR YEAR.11 12 13 (II) T HE COMMISSION SHALL PRESENT THE ANNUAL REPORT TO THE 14 TRANSPORTATION AND ENERGY COMMITTEE OF THE SENATE AND THE15 ENERGY AND ENVIRONMENT COMMI TTEE OF THE HOUSE OF16 REPRESENTATIVES, OR THEIR SUCCESSOR COMMITTEES , DURING THE17 COMMITTEES' HEARINGS HELD PRIOR TO THE 2026 REGULAR SESSION, AND18 EACH SESSION THEREAFTER , OF THE GENERAL ASSEMBLY UNDER THE19 "S TATE MEASUREMENT FOR ACCOUNTABLE, RESPONSIVE, AND 20 T RANSPARENT (SMART) GOVERNMENT ACT", PART 2 OF ARTICLE 7 OF 21 TITLE 2. THE COMMISSION SHALL ALSO POST THE REPORT ON THE22 COMMISSION'S WEBSITE.23 (b) N OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE24 REQUIREMENT TO REPORT TO THE LEGISLATIVE COMMITTEES CONTINUES25 INDEFINITELY.26 (8) Rules. T HE COMMISSION MAY PROMULGATE RULES THAT ARE27 1348 -17- NECESSARY FOR THE IMPLEMENTATION AND ADMINISTRATION OF THIS1 SECTION.2 (9) Local governments. NOTHING IN THIS SECTION OR THE RULES3 PROMULGATED BY THE COMMISSION PURSUANT TO THIS SECTION LIMITS A4 LOCAL GOVERNMENT FROM ENACTING OR ENFORCING ANY ORDINANCE ,5 REGULATION, OR OTHER LAW RELATED TO THE DISCLOSURE OF ANY6 CHEMICAL PRODUCT.7 (10) Collection of chemical disclosure information under other8 provisions of law. N OTWITHSTANDING ANY LAW TO THE CONTRARY , 9 NOTHING IN THIS SECTION OR THE RULES PROMULGATED BY THE10 COMMISSION PURSUANT TO THIS SECTION PREVENTS THE COMMISSION , THE11 STATE, OR A LOCAL GOVERNMENT FROM COLLECTING CHEMICAL12 DISCLOSURE INFORMATION FROM DISCLOSERS, MANUFACTURERS, OR13 OPERATORS UNDER ANY OTHER PROVISION OF LAW .14 SECTION 3. Appropriation. (1) For the 2022-23 state fiscal15 year, $61,500 is appropriated to the department of natural resources. This16 appropriation is from the oil and gas conservation and environmental17 response fund created in section 34-60-122 (5)(a), C.R.S. To implement18 this act, the department may use this appropriation for the purchase of19 information technology services.20 (2) For the 2022-23 state fiscal year, $61,500 is appropriated to21 the office of the governor for use by the office of information technology.22 This appropriation is from reappropriated funds received from the23 department of natural resources under subsection (1) of this section. To24 implement this act, the office may use this appropriation to provide25 information technology services for the department of natural resources.26 SECTION 4. Safety clause. The general assembly hereby finds,27 1348 -18- determines, and declares that this act is necessary for the immediate1 preservation of the public peace, health, or safety.2 1348 -19-