First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0267.01 Sarah Lozano x3858
HOUSE BILL 23-1069
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF THE BIOCHAR IN OIL AND GAS WELL101
PLUGGING WORKING ADVISORY GROUP TO MAKE102
RECOMMENDATIONS FOR THE DEVELOPMENT OF A PILOT103
PROGRAM TO STUDY THE USE OF BIOCHAR IN THE PLUGGING OF104
OIL AND GAS WELLS.105
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 creates the biochar in oil and gas well plugging working
advisory group (work group) in the oil and gas conservation commission
HOUSE SPONSORSHIP
McCormick,
SENATE SPONSORSHIP
Cutter,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. (commission). The work group's purpose is to make recommendations for
the development of a pilot program to study the use of biochar in the
plugging of oil and gas wells.
No later than September 1, 2023, the work group must submit a
draft report to the commission detailing its recommendations for the pilot
program. After coordinating with the commission to develop a final
report, no later than February 1, 2024, the work group must present the
report to the transportation and energy committee of the senate and the
energy and environment committee of the house of representatives.
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) It is important to focus on finding innovative solutions to:4
(I) Mitigate the impacts of climate change;5
(II) Further protect human and animal health; and6
(III) Lower the carbon footprint of current methods of plugging7
oil and gas wells;8
(b) It is also important to create opportunities to partner with the9
oil and gas industry on methods to permanently sequester carbon from the10
atmosphere;11
(c) Exploring the use of biochar in oil and gas well plugging12
operations may potentially open up economic opportunities for Colorado13
to become a leader in the use of biochar in oil and gas well plugging14
operations; and15
(d) Biochar could be beneficial to efforts by the oil and gas16
industry to reduce greenhouse gas emissions in Colorado.17
(2) The general assembly further finds and declares that it is in the18
interest of Colorado to convene a working advisory group to make19
recommendations on establishing a pilot program to study the use of20
HB23-1069-2- biochar in oil and gas well plugging operations.1
SECTION 2. In Colorado Revised Statutes, add 34-60-134 as2
follows:3
34-60-134. Biochar in oil and gas well plugging working4
advisory group - created - members - recommendations for the5
development of a pilot program - report - definitions - repeal. (1) A
S6
USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :7
(a) "B
IOCHAR" MEANS THE SOLID CARBON-RICH PRODUCT MADE8
WHEN WOODY BIOMASS UNDERGOES PYROLYSIS IN AN OXYGEN -DEPLETED9
ATMOSPHERE AT APPROXIMATELY EIGHT HUNDRED DEGREES CELSIUS.10
(b) "D
IRECTOR" MEANS THE DIRECTOR OF THE COMMISSION11
APPOINTED PURSUANT TO SECTION 34-60-104.5 (1) OR THE DIRECTOR'S12
DESIGNEE.13
(c) "L
OCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY14
COUNTY, MUNICIPALITY, OR CITY AND COUNTY.15
(d) "P
ILOT PROGRAM" MEANS THE PILOT PROGRAM DESCRIBED IN16
SUBSECTION (6)(a) OF THIS SECTION.17
(e) "S
ELECTED OIL AND GAS WELLS" MEAN THE OIL AND GAS WELLS18
SELECTED BY THE WORK GROUP PURSUANT TO SUBSECTION (6)(b)(IV) OF19
THIS SECTION.20
(f) "W
ORK GROUP" MEANS THE BIOCHAR IN OIL AND GAS WELL21
PLUGGING WORKING ADVISORY GROUP CREATED IN SUBSECTION (2) OF22
THIS SECTION.23
(2) T
HE BIOCHAR IN OIL AND GAS WELL PLUGGING WORKING24
ADVISORY GROUP IS HEREBY CREATED IN THE COMMISSION .25
(3) T
HE WORK GROUP CONSISTS OF THE FOLLOWING MEMBERS :26
(a) A
MEMBER REPRESENTING THE COMMISSION 'S ORPHANED WELL27
HB23-1069
-3- PROGRAM, APPOINTED BY THE DIRECTOR;1
(b) A
MEMBER REPRESENTING THE COMMISSION 'S ENGINEERING2
UNIT WHO HAS SIGNIFICANT EXPERIENCE WITH CLIMATE CHANGE3
SOLUTIONS IN ENGINEERING, APPOINTED BY THE DIRECTOR;4
(c) A
MEMBER REPRESENTING THE DEPARTMENT OF PUBLIC5
HEALTH AND ENVIRONMENT CREATED IN SECTION 24-1-119 (1),6
APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PUBLIC7
HEALTH AND ENVIRONMENT ;8
(d) A
MEMBER REPRESENTING THE COLORADO ENERGY OFFICE9
CREATED IN SECTION 24-38.5-101 (1), APPOINTED BY THE DIRECTOR OF10
THE COLORADO ENERGY OFFICE;11
(e) A
MEMBER REPRESENTING THE COLORADO STATE FOREST12
SERVICE IDENTIFIED IN SECTION 23-31-302, APPOINTED BY THE DIRECTOR13
OF THE STATE FOREST SERVICE;14
(f) A
MEMBER REPRESENTING THE OIL AND GAS INDUSTRY ,15
APPOINTED BY THE DIRECTOR;16
(g) A
MEMBER REPRESENTING THE ACADEMIC COMMUNITY WHO IS17
A CIVIL AND ENVIRONMENTAL ENGINEER WITH PREVIOUS WORK18
EXPERIENCE IN ENGINEERING GEOSYSTEMS IN THE CONTEXT OF CLIMATE19
CHANGE MITIGATION, APPOINTED BY THE DIRECTOR OF THE COLORADO20
ENERGY OFFICE;21
(h) A
MEMBER REPRESENTING THE ACADEMIC COMMUNITY WHO22
HAS A BACKGROUND IN PETROLEUM ENGINEERING , APPOINTED BY THE23
DIRECTOR OF THE COLORADO ENERGY OFFICE;24
(i) A
MEMBER REPRESENTING AN ENVIRONMENTAL ADVOCACY25
ORGANIZATION WITH A FOCUS ON THE REDUCTION OF GREENHOUSE GAS26
EMISSIONS FROM THE OIL AND GAS I NDUSTRY , APPOINTED BY THE27
HB23-1069
-4- DIRECTOR OF THE COLORADO ENERGY OFFICE;1
(j) A
MEMBER REPRESENTING AN ENVIRONMENTAL ADVOCACY2
ORGANIZATION WITH EXPERIENCE WITH CARBON REMOVAL AND3
SEQUESTRATION SOLUTIONS , APPOINTED BY THE DIRECTOR OF THE4
C
OLORADO ENERGY OFFICE;5
(k) A
MEMBER WITH EXPERTISE IN THE BIOCHAR INDUSTRY ,6
APPOINTED BY THE DIRECTOR;7
(l) A
MEMBER REPRESENTING A BIOCHAR MANUFACTURING ENTITY8
LOCATED IN THE STATE, APPOINTED BY THE DIRECTOR;9
(m) A
MEMBER REPRESENTING A LOCAL GOVERNMENT WITH A10
DEMONSTRATED FOCUS ON ENVIRONMENTAL AIR QUALITY ISSUES ,11
APPOINTED BY THE DIRECTOR;12
(n) A
MEMBER, APPOINTED BY THE DIRECTOR, REPRESENTING THE13
FEDERAL BUREAU OF LAND MANAGEMENT WHO HAS KNOWLEDGE14
CONCERNING:15
(I) T
HE FEDERAL STANDARDS FOR PLUGGING OIL AND GAS WELLS ;16
AND17
(II) T
HE OPPORTUNITIES FOR OBTAINING FEDERAL FUNDING FOR18
THE PILOT PROGRAM; AND19
(o) A
MEMBER OF THE COMMISSION , WHO IS THE CHAIR OF THE20
WORK GROUP, APPOINTED BY THE DIRECTOR.21
(4) T
HE APPOINTING AUTHORITIES SHALL MAKE ALL22
APPOINTMENTS TO THE WORK GROUP NO LATER THAN JULY 1, 2023. THE23
MEMBERS OF THE WORK GROUP SERVE WITHOUT COMPENSATION BUT24
SHALL BE REIMBURSED FOR EXPENSES INCURRED BY THEM IN THE25
PERFORMANCE OF THEIR OFFICIAL DUTIES .26
(5) (a) T
HE WORK GROUP SHALL REVIEW MATERIALS RELEVANT TO27
HB23-1069
-5- THE WORK GROUP'S DUTIES PURSUANT TO THIS SECTION, INCLUDING:1
(I) P
EER-REVIEWED SCIENTIFIC ARTICLES AND STUDIES ON THE USE2
OF BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS ; AND3
(II) A
NY LAWS OF THE UNITED STATES AND OTHER STATES TO4
ADDRESS THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS .5
(b) T
HE WORK GROUP SHALL ALSO EVALUATE WHETHER ANY6
FEDERAL OR STATE PROGRAMS OR PRIVATE ENTITIES COULD PROVIDE7
FUNDING FOR THE PILOT PROGRAM .8
(6) (a) I
F THE WORK GROUP DETERMINES THAT A PILOT PROGRAM9
TO STUDY THE USE OF BIOCHAR IN THE PLUGGING OF OIL AND GAS WELLS10
WOULD HAVE A POSITIVE IMPACT ON THE HEALTH , SAFETY, AND WELFARE11
OF THE STATE, THE WORK GROUP SHALL USE THE INFORMATION REVIEWED12
AND EVALUATED PURSUANT TO SUBSECTION (5) OF THIS SECTION TO MAKE13
RECOMMENDATIONS REGARDING THE DEVELOPMENT OF A PILOT PROGRAM .14
(b) T
HE WORK GROUP 'S RECOMMENDATIONS PURSUANT TO15
SUBSECTION (6)(a) OF THIS SECTION MUST INCLUDE, AS PART OF THE PILOT16
PROGRAM, A PLAN TO:17
(I) C
ONDUCT DESK RESEARCH , INCLUDING GEOMECHANICAL18
MODELING AND CALCULATIONS TO LIMIT VARIABLES ;19
(II) C
ONDUCT LABORATORY RESEARCH , INCLUDING RESEARCH TO20
CHARACTERIZE:21
(A) T
HE MECHANICAL STRENGTH , PERMEABILITY, PORE22
STRUCTURE, AND GAS ABSORPTION OF BIOCHAR;23
(B) T
HE GEOCHEMICAL REACTION OF BIOCHAR WITH WATER FROM24
AN UNDERGROUND FORMATION ; AND25
(C) T
HE CHEMICAL REACTION OF BIOCHAR WITH CEMENT USED IN26
THE PLUGGING OF OIL AND GAS WELLS;27
HB23-1069
-6- (III) DEVELOP STANDARDS FOR:1
(A) U
SING BIOCHAR IN THE PLUGGING OF THE SELECTED OIL AND2
GAS WELLS; AND3
(B) M
ONITORING THE EMISSIONS OF THE SELECTED OIL AND GAS4
WELLS;5
(IV) S
ELECT OIL AND GAS WELLS WHERE AN OPERATOR OR OTHER6
PERSON PLUGGING AN OIL AND GAS WELL WILL USE BIOCHAR IN THE7
PLUGGING OF THE WELL IN ACCORDANCE WITH THE STANDARDS8
DEVELOPED BY THE WORK GROUP PURSUANT TO SUBSECTION (6)(b)(III)(A)9
OF THIS SECTION; AND10
(V) C
ONTINUE, AFTER THE SELECTED OIL AND GAS WELLS ARE11
PLUGGED, TO:12
(A) M
ONITOR EMISSIONS FROM THE SELECTED OIL AND GAS WELLS13
IN ACCORDANCE WITH THE STANDARDS DEVELOPED BY THE WORK GROUP14
PURSUANT TO SUBSECTION (6)(b)(III)(B) OF THIS SECTION;15
(B) A
SSESS THE CONDITION OF THE SELECTED OIL AND GAS WELLS ;16
AND17
(C) C
ONDUCT LABORATORY TESTING ON THE SELECTED OIL AND18
GAS WELLS TO DETERMINE THE ABILITY OF BIOCHAR TO ABSORB OR19
ADSORB METHANE AND OTHER CHEMICALS FOUND IN A PLUGGED OIL AND20
GAS WELL AND TO DETERMINE THE BEST ESTIMATE OF THE LONG -TERM21
DURABILITY OF BIOCHAR WHEN USED IN THE PLUGGING OF AN OIL AND GAS22
WELL.23
(c) T
HE WORK GROUP 'S RECOMMENDATIONS PURSUANT TO24
SUBSECTION (6)(a) OF THIS SECTION MUST ALSO, AT A MINIMUM, INCLUDE25
AN ASSESSMENT OF:26
(I) T
HE COSTS ASSOCIATED WITH USING BIOCHAR IN THE PLUGGING27
HB23-1069
-7- OF AN OIL AND GAS WELL;1
(II) T
HE AMOUNT OF BIOCHAR THAT IS AVAILABLE FOR USE IN THE2
STATE; AND3
(III) W
HETHER THE USE OF BIOCHAR WHEN PLUGGING AN OIL AND4
GAS WELL WOULD:5
(A) A
LLOW AN OPERATOR OR OTHER PERSON PLUGGING AN OIL6
AND GAS WELL TO RECEIVE LEGITIMATE CARBON CREDITS OR OFFSETS ;7
(B) R
EQUIRE ANY CHANGES TO STATE LAW TO ALLOW THE USE OF8
BIOCHAR IN THE PLUGGING OF AN OIL AND GAS WELL OR TO ALLOW A9
STATE AGENCY TO COORDINATE WITH APPLICABLE FEDERAL AGENCIES10
AND OTHER ENTITIES IN THE IMPLEMENTATION OF THE PILOT PROGRAM ;11
AND12
(C) C
OMPLY, IN THE CASE OF PLUGGING AN OIL AND GAS WELL13
OWNED BY THE UNITED STATES OR A TRIBAL LAND TRUST, WITH FEDERAL14
LAW OR ANY OTHER APPLICABLE LAW .15
(7) T
HE COMMISSION SHALL PROVIDE ADMINISTRATIVE SUPPORT16
TO THE WORK GROUP AS MAY BE NECESSARY TO IMPLEMENT THIS SECTION .17
T
HE COMMISSION MAY SEEK , ACCEPT, AND EXPEND GIFTS, GRANTS, OR18
DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS19
SECTION.20
(8) (a) T
HE WORK GROUP SHALL PREPARE A REPORT COVERING ITS21
RECOMMENDATIONS FOR THE PILOT PROGRAM , INCLUDING THE22
RECOMMENDATIONS SET FORTH IN SUBSECTION (6) OF THIS SECTION. THE23
REPORT MUST ALSO , AT A MINIMUM, INCLUDE RECOMMENDATIONS24
REGARDING:25
(I) T
HE ESTIMATED COSTS TO IMPLEMENT THE PILOT PROGRAM ;26
(II) T
HE DURATION OF THE PILOT PROGRAM ;27
HB23-1069
-8- (III) A DETAILED PLAN FOR THE IMPLEMENTATION OF THE PILOT1
PROGRAM, INCLUDING RECOMMENDATIONS REGARDING A STATE AGENCY2
TO ADMINISTER THE PILOT PROGRAM ;3
(IV) A
DESCRIPTION OF ANY OPPORTUNITIES TO WORK WITH OR4
RECEIVE FUNDING FROM FEDERAL AGENCIES OR PRIVATE ENTITIES IN THE5
IMPLEMENTATION OF THE PILOT PROGRAM ; AND6
(V) A
PROCESS FOR REPORTING THE FINDINGS OF THE PILOT7
PROGRAM.8
(b) N
O LATER THAN SEPTEMBER 1, 2023, THE WORK GROUP SHALL9
PROVIDE A DRAFT REPORT TO THE COMMISSION . THE COMMISSION SHALL10
PROVIDE A RESPONSE TO THE WORK GROUP 'S DRAFT REPORT WITH ANY11
COMMENTS BY OCTOBER 15, 2023. IF IT IS DETERMINED FROM THE WORK12
GROUP'S RECOMMENDATIONS THAT A PILOT PROGRAM MAY BE13
IMPLEMENTED, THE WORK GROUP , IN CONSULTATION WITH THE14
COMMISSION, SHALL CREATE A FINAL REPORT THAT INCORPORATES THE15
COMMISSION'S COMMENTS TO THE DRAFT REPORT . THE DIRECTOR SHALL16
POST THE FINAL REPORT ON THE COMMISSION 'S WEBSITE BY DECEMBER 1,17
2023.18
(c) N
O LATER THAN FEBRUARY 1, 2024, THE WORK GROUP SHALL19
PRESENT THE FINAL REPORT TO THE TRANSPORTATION AND ENERGY20
COMMITTEE OF THE SENATE AND THE ENERGY AND ENVIRONMENT21
COMMITTEE OF THE HOUSE OF REPRESENTATIVES , OR ANY SUCCESSOR22
COMMITTEES.23
(9) T
HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2024.24
SECTION 3. Safety clause. The general assembly hereby finds,25
determines, and declares that this act is necessary for the immediate26
preservation of the public peace, health, or safety.27
HB23-1069
-9-