Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0904.01 Sarah Lozano x3858
HOUSE BILL 24-1346
House Committees Senate Committees
Energy & Environment Agriculture & Natural Resources
A BILL FOR AN ACT
C
ONCERNING ENERGY AND CARBON MANAGEMENT REGULATION IN101
C
OLORADO, AND, IN CONNECTION THEREWITH , BROADENING102
THE ENERGY AND CARBON MANAGEMENT COMMISSION 'S103
REGULATORY AUTHORITY TO I NCLUDE REGULATION OF
104
GEOLOGIC STORAGE OPERATIONS .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 expands the authority of the energy and carbon
management commission (commission) to include the regulation of:
SENATE
Amended 2nd Reading
April 29, 2024
HOUSE
3rd Reading Unamended
April 17, 2024
HOUSE
Amended 2nd Reading
April 16, 2024
HOUSE SPONSORSHIP
Titone and McCormick, Bacon, Bird, Boesenecker, Herod, Jodeh, Kipp, Lindsay, Mabrey,
Parenti, Rutinel, Willford
SENATE SPONSORSHIP
Hansen and Priola,
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. ! Facilities that use equipment to capture a significant
quantity of carbon dioxide directly from the ambient air
(direct air capture facility); and
! Activities performed for the purpose of engaging in the
injection and underground sequestration of carbon dioxide
in pore space (geologic storage operations).
The commission may:
! Reimpose any regulatory responsibility or financial
assurance obligation imposed on a person that exercises the
right to control the conduct of geologic storage operations
(geologic storage operator) if the geologic storage operator
makes a material misrepresentation or omission that causes
the commission to approve a site closure; and
! Assess and collect regulatory and permitting fees from
geologic storage operators.
The bill also allows the commission to hire and designate
employees of the commission as administrative law judges who have the
authority to administer proceedings on behalf of the commission.
Current law provides a statute of limitations of one year after the
date of an alleged violation of energy and carbon management laws
(violation). The bill changes this statute of limitations to 3 years after the
discovery of the alleged violation and provides that the 3-year statute of
limitations period does not apply if information regarding the alleged
violation is knowingly or willfully concealed by the alleged violator.
The bill also expands the following energy and carbon
management law areas to include geologic storage operations and direct
air capture facilities:
! Enforcement and civil penalty procedures;
! Use of the energy and carbon management cash fund by the
commission;
! Mitigation of adverse environmental impacts by the
commission or an operator; and
! State agency and local government authority over oil and
gas development.
The commission is required to adopt rules related to the permitting
and regulation of direct air capture facilities. When reviewing an
application for a direct air capture facility, the commission must consider
whether a setback of the direct air capture facility from certain areas is
necessary and reasonable to protect and minimize adverse impacts to
public health, safety, and welfare; the environment; and wildlife
resources. The commission may assess and collect permitting and
regulatory fees from the operators of direct air capture facilities.
The bill also establishes that:
! Ownership of a portion of a pore space necessary for
geologic storage (sequestration estate) is vested in the
1346
-2- owner of the overlying surface estate if the sequestration
estate has not been separately severed, conveyed, or
reserved;
! Any conveyance of the ownership of an overlying surface
estate also conveys the grantor's ownership of any
sequestration estate except in certain circumstances; and
! A conveyance of the ownership of a mineral estate does not
convey the grantor's ownership in the sequestration estate
unless the conveyance instrument provides for the
conveyance.
Upon application of any interested person, the commission must
hold a hearing and enter an order (order) providing for the formation of
a unit of one or more geologic storage resources (geologic storage unit)
if the commission finds that the geologic storage unit is reasonably
necessary to effectuate a geologic storage project. The order must include
terms and conditions that are just and reasonable and establish a plan for
operations of the geologic storage unit (plan). An order is effective only
if the plan has been approved by those persons that collectively own at
least 75% of the geologic storage resources included in the geologic
storage unit area (required approval) and the commission makes a finding
in the order of the required approval.
The bill also allows a local government to request that the director
of the commission appoint a technical review board to assist a local
government in analyzing and answering any technical questions regarding
the local government's land use regulations.
The bill also requires the department of public health and
environment (department) to develop carbon dioxide accounting
procedures for geologic storage operations and direct air capture
facilities. The commission must compile relevant data to support the
carbon dioxide accounting procedures and work collaboratively with the
department in implementing the carbon dioxide accounting procedures.
The commission and the department must also work collaboratively to
address air emissions from direct air capture facilities and geologic
storage operations.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 34-60-102, add (3)2
as follows:3
34-60-102. Legislative declaration. (3) I
T IS FURTHER DECLARED4
TO BE IN THE PUBLIC INTEREST FOR THE COMMISSION TO IMPLEMENT5
1346-3- AND ADMINISTER A PROGRAM FOR THE PERMITTING AND REGULATION OF1
PERMANENT GEOLOGIC STORAGE OPERATIONS IN A WAY THAT PRIORITIZES :2
(a) CONTRIBUTIONS TOWARD ACHIEVING THE STATE 'S3
GREENHOUSE GAS EMISSION REDUCTION GOALS, AS SET FORTH IN SECTION4
25-7-102 (2)(g);5
(b) BENEFITS TO THE STATE AND GLOBAL ENVIRONMENT BY6
REDUCING CARBON DIOXIDE POLLUTION ;7
(c) OPPORTUNITIES TO SUPPORT A JUST TRANSITION AND TO HELP8
RETRAIN WORKERS, PARTICULARLY WORKERS PREVIOUSLY EMPLOYED IN9
THE FOSSIL FUEL INDUSTRY;10
(d) PROTECTING DISPROPORTIONATELY IMPACTED COMMUNITIES11
AND ADVANCING ENVIRONMENTAL JUSTICE ; AND12
(e) THE SAFE AND RESPONSIBLE USE OF COLORADO'S ABUNDANT13
NATURAL RESOURCES FOR THE PERMANENT STORAGE OF CARBON DIOXIDE .14
SECTION 2. In Colorado Revised Statutes, amend 34-60-103 as15
follows:16
34-60-103. Definitions - rules. As used in this article 60, unless17
the context otherwise requires:18
(1) "And" includes the word "or" and the use of the word "or"19
includes the word "and". The use of the plural includes the singular and20
the use of the singular includes the plural.21
22
(2) (a) "CARBON DIOXIDE FLOW LINE" MEANS A SEGMENT OF PIPE23
TRANSFERRING INJECTION CARBON DIOXIDE BETWEEN THE WELLHEAD OF24
A CLASS VI INJECTION WELL AND A PIPELINE REGULATED BY THE PIPELINE25
AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OF THE UNITED26
S
TATES DEPARTMENT OF TRANSPORTATION OR THE PUBLIC UTILITIES27
1346
-4- COMMISSION.1
(b) "C
ARBON DIOXIDE FLOW LINE" DOES NOT INCLUDE PIPELINES2
REGULATED BY THE PIPELINE AND HAZARDOUS MATERIALS SAFETY3
ADMINISTRATION OF THE UNITED STATES DEPARTMENT OF4
TRANSPORTATION OR THE PUBLIC UTILITIES COMMISSION .5 (3) "CLASS VI INJECTION WELL" MEANS A WELL DRILLED6
PURSUANT TO A PERMIT FOR A CLASS VI INJECTION WELL ISSUED UNDER7
THE FEDERAL "SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ.,8
AS AMENDED.9
(2) (4) "Commission" means the energy and carbon management10
commission created in section 34-60-104.3 (1).11
(3) (5) "Common source of supply" is synonymous with "pool" as12
defined in this section.13
(4) (6) (a) "Correlative rights" means that each owner and14
producer in a common pool or source of supply of oil and gas shall MUST15
have an equal opportunity to obtain and produce his THE OWNER'S OR16
PRODUCER'S just and equitable share of the oil and gas underlying such17
THE pool or source of supply.18
(b) A
S USED IN SECTION
34-60-141, "CORRELATIVE RIGHTS" MEANS19
THAT EACH OWNER OF A SEQUESTRATION ESTATE MUST HAVE AN EQUAL20
OPPORTUNITY TO UTILIZE THE OWNER 'S JUST AND EQUITABLE SHARE OF21
THE UNDERLYING GEOLOGIC STORAGE RESOURCE .22
(7) (a) "CUMULATIVE IMPACTS" MEANS THE EFFECTS ON PUBLIC23
HEALTH AND THE ENVIRONMENT , INCLUDING THE IMPACTS TO AIR24
QUALITY, WATER QUALITY, CLIMATE, NOISE, ODOR, WILDLIFE, AND25
BIOLOGICAL RESOURCES, CAUSED BY THE INCREMENTAL IMPACTS THAT A26
PROPOSED NEW OR AMENDED OPERATION REGULATED BY THE COMMISSION27
1346
-5- PURSUANT TO THIS ARTICLE 60 WOULD HAVE WHEN ADDED TO THE1
IMPACTS FROM OTHER PAST, PRESENT, AND REASONABLY FORESEEABLE2
FUTURE DEVELOPMENT OF ANY TYPE ON THE IMPACT AREA OR ON A3
DISPROPORTIONATELY IMPACTED COMMUNITY .4
(b) "CUMULATIVE IMPACTS" MAY INCLUDE BOTH ADVERSE AND5
BENEFICIAL ENVIRONMENTAL IMPACTS .6
(c) THIS SUBSECTION (7) IS EFFECTIVE ON THE EFFECTIVE DATE OF7
THE RULES ADOPTED PURSUANT TO SECTION 34-60-106 (11)(d)(I).8
9
(8) "DISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE10
MEANING SET FORTH IN SECTION 24-4-109 (2)(b)(II).11
(4.3) (9) "Division of parks and wildlife" means the division of12
parks and wildlife identified in article 9 of title 33. C.R.S.13
(10) "ENERGY AND CARBON MANAGEMENT OPERATIONS " MEANS14
ALL OPERATIONS REGULATED BY THE COMMISSION .15
(11) "ENERGY AND CARBON MANAGEMENT OPERATOR " MEANS16
ANY PERSON THAT EXERCISES THE RIGHT TO CONTROL THE CONDUCT OF17
ENERGY AND CARBON MANAGEMENT OPERATIONS .18
(4.5) (12) "Exploration and production waste" means those wastes19
that are generated during the drilling of and production from oil and gas20
wells; during the drilling of and production from wells for deep21
geothermal operations, as defined in section 37-90.5-103 (3), regulated22
by the commission pursuant to article 90.5 of title 37; or during primary23
field operations and that are exempt from regulation as hazardous wastes24
under Subtitle C of the federal "Resource Conservation and Recovery Act25
of 1976", 42 U.S.C. secs. 6901 to 6934, as amended.26
(5) (13) "Gas" means all natural gases and all hydrocarbons not27
1346
-6- defined in this section as oil.1
(14) "GEOLOGIC STORAGE" MEANS THE INJECTION AND2
UNDERGROUND SEQUESTRATION OF INJECTION CARBON DIOXIDE IN A3
GEOLOGIC STORAGE RESOURCE PURSUANT TO A VALID CLASS VI PERMIT4
ISSUED PURSUANT TO THE FEDERAL "SAFE DRINKING WATER ACT", 425
U.S.C.
SEC. 300f ET SEQ., AS AMENDED.6 (15) (a) "GEOLOGIC STORAGE FACILITY" MEANS THE SPECIFIC PART7
OF A GEOLOGIC STORAGE RESOURCE THAT IS UTILIZED FOR GEOLOGIC8
STORAGE, TOGETHER WITH THE WELL OR WELLS AND ALL SURFACE9
EQUIPMENT AND DISTURBANCES ASSOCIATED WITH THE GEOLOGIC10
STORAGE OPERATIONS AT THE GEOLOGIC STORAGE LOCATION .11
(b) "GEOLOGIC STORAGE FACILITY" DOES NOT INCLUDE PIPELINES12
REGULATED BY THE PIPELINE AND HAZARDOUS MATERIALS SAFETY13
ADMINISTRATION OF THE UNITED STATES DEPARTMENT OF14
TRANSPORTATION OR THE PUBLIC UTILITIES COMMISSION .15
(16) "GEOLOGIC STORAGE LOCATION" MEANS A DEFINABLE AREA16
WHERE A GEOLOGIC STORAGE OPERATOR USES OR INTENDS TO USE THE17
SURFACE OF THE LAND IN ORDER TO OPERATE A GEOLOGIC STORAGE18
FACILITY.19
(17) "GEOLOGIC STORAGE OPERATIONS " MEANS ACTIVITIES20
PERFORMED FOR THE PURPOSE OF ENGAGING IN GEOLOGIC STORAGE IN THE21
STATE, INCLUDING:22
(a) T
HE FOLLOWING ACTIVITIES RELATED TO THE OPERATION OF A23
GEOLOGIC STORAGE FACILITY:24
(I) D
RILLING TEST BORES AND MONITORING WELLS ;25
(II) S
ITING;26
(III) I
NSTALLING AND OPERATING CARBON DIOXIDE FLOW LINES ;27
1346
-7- (IV) DRILLING;1
(V) D
EEPENING;2
(VI) R
ECOMPLETING;3
(VII) R
EWORKING; AND4
(VIII) A
BANDONING;5
(b) I
NJECTING
INJECTION CARBON DIOXIDE FOR THE PURPOSE OF6
GEOLOGIC STORAGE;7
(c) A
NY CONSTRUCTING, SITE PREPARING, OR RECLAIMING8
ACTIVITIES ASSOCIATED WITH THE ACTIVITIES DESCRIBED IN SUBSECTION9 (17)(a) OR (17)(b) OF THIS SECTION; AND10
(d) A
NY OTHER ACTIVITIES DETERMINED BY THE COMMISSION TO11
BE NECESSARY TO PROTECT AND MINIMIZE ADVERSE IMPACTS ASSOCIATED12
WITH GEOLOGIC STORAGE TO PUBLIC HEALTH , SAFETY, WELFARE, THE13
ENVIRONMENT, AND NATURAL RESOURCES.14(18) "GEOLOGIC STORAGE OPERATOR " MEANS ANY PERSON THAT15
EXERCISES THE RIGHT TO CONTROL THE CONDUCT OF GEOLOGIC STORAGE16
OPERATIONS.17
(19) (a) "GEOLOGIC STORAGE RESOURCE " MEANS PORE SPACE18
NECESSARY FOR GEOLOGIC STORAGE .19
(b) "G
EOLOGIC STORAGE RESOURCE " DOES NOT INCLUDE AN20
UNDERGROUND SOURCE OF DRINKING WATER , AS DEFINED IN 40 CFR21
144.3.22 (20) "GEOLOGIC STORAGE UNIT" MEANS A UNIT OF ONE OR MORE23
GEOLOGIC STORAGE RESOURCES OR PARTS OF A GEOLOGIC STORAGE24
RESOURCE ESTABLISHED BY THE COMMISSION PURSUANT TO SECTION25
34-60-141.26
(21) "GEOLOGIC STORAGE UNIT AREA " MEANS ANY GEOLOGIC27
1346
-8- STORAGE RESOURCE, OR PART OF A GEOLOGIC STORAGE RESOURCE ,1
INCLUDED IN A GEOLOGIC STORAGE UNIT .2
(22) "IMPACT AREA" MEANS A DEFINED GEOGRAPHIC AREA OR3
AREAS IN WHICH OPERATIONS REGULATED BY THE COMMISSION HAVE THE4
POTENTIAL TO CONTRIBUTE TO CUMULATIVE IMPACTS . THE COMMISSION5
SHALL DETERMINE THE IMPACT AREA FOR A PARTICULAR PROPOSED6
OPERATION BASED ON THE NATURE, INTENSITY, AND SCOPE OF THE7
OPERATION IN ITS PROPOSED LOCATION AND THE GEOGRAPHIC EXTENT OF8
POTENTIAL IMPACTS.9
(23) "IMPACTS TO CLIMATE" MEANS THE QUANTIFICATION OF10
EMISSIONS OF GREENHOUSE GASES, AS DEFINED IN SECTION 25-7-140 (6),11
THAT OCCUR FROM SOURCES THAT ARE CONTROLLED OR OWNED BY THE12
ENERGY AND CARBON MANAGEMENT OPERATOR AND FROM REASONABLY13
FORESEEABLE TRUCK TRAFFIC, AS WELL AS REDUCTIONS IN GREENHOUSE14
GAS EMISSIONS, ASSOCIATED WITH THE PROPOSED OPERATION .15
(24) "INJECTION CARBON DIOXIDE" MEANS CARBON DIOXIDE,16
INCLUDING ITS DERIVATIVES AND ALL MIXTURES, COMBINATIONS, AND17
PHASES, WHETHER LIQUID, GASEOUS, SUPER-CRITICAL, OR SOLID, AND18
WHETHER STRIPPED, SEGREGATED, OR DIVIDED FROM ANY OTHER FLUID19
STREAM, INCLUDING ALL INCIDENTAL ASSOCIATED SUBSTANCES DERIVED20
FROM THE SOURCE MATERIALS .21
(5.3) (25) "Local government" means except with regard to22
section 34-60-104 (2)(a)(I), a:23
24
(a) Municipality or city and county within whose boundaries an25
oil and gas location A SURFACE LOCATION FOR ENERGY AND CARBON26
MANAGEMENT OPERATIONS is sited or proposed to be sited; or27
1346
-9- (b) County, if an oil and gas location A SURFACE LOCATION FOR1
ENERGY AND CARBON MANAGEMENT OPERATIONS is sited or proposed to2
be sited within the boundaries of the county but is not located within a3
municipality or city and county.4
(5.5) (26) "Minimize adverse impacts" means, to the extent5
necessary and reasonable to protect public health, safety, and welfare; the6
environment; and wildlife resources, to:7
(a) Avoid adverse impacts from oil and gas ENERGY AND CARBON8
MANAGEMENT operations; and9
(b) Minimize and mitigate the extent and severity of those impacts10
that cannot be avoided.11
(6) (27) "Oil" means crude petroleum oil and any other12
hydrocarbons, regardless of gravities, which THAT are produced at the13
well in liquid form by ordinary production methods and which THAT are14
not the result of condensation of gas before or after it leaves the reservoir.15
(6.2) (28) "Oil and gas facility" means equipment or16
improvements used or installed at an oil and gas location for the17
exploration, production, withdrawal, treatment, or processing of crude oil,18
condensate, exploration and production waste, or gas.19
(6.4) (29) "Oil and gas location" means a definable area where an20
oil and gas operator has disturbed or intends to disturb the land surface in21
order to locate an oil and gas facility.22
(6.5) (30) "Oil and gas operations" means exploration for oil and23
gas, including:24
(a) The conduct of seismic operations and the drilling of test25
bores;26
(b) The siting, drilling, deepening, recompletion, reworking, or27
1346
-10- abandonment of an oil and gas well, underground injection well, or gas1
storage well;2
(c) Production operations related to any such well DESCRIBED IN3
SUBSECTION (30)(b) OF THIS SECTION, including the installation of flow4
lines and gathering systems;5
(d) The generation, transportation, storage, treatment, or disposal6
of exploration and production wastes; and7
(e) Any construction, site preparation, or reclamation activities8
associated with such THE operations DESCRIBED IN THIS SUBSECTION (30).9
(6.8) (31) "Operator" means any person who THAT exercises the10
right to control the conduct of oil and gas operations.11
(7) (32) "Owner" means the person who THAT has the right to drill12
into and produce from a pool and to appropriate the oil or gas he THE13
PERSON produces therefrom FROM THE POOL either for himself THE14
PERSON or others or for himself THE PERSON and others, including the15
owner of a well capable of producing oil or gas, or both.16
(7.1) (33) "Parks and wildlife commission" means the parks and17
wildlife commission created in section 33-9-101. C.R.S.18
(7.5) (34) "Permit" means any permit, sundry notice, notice of19
intention, or other approval, including any conditions of approval, which20
THAT is granted, issued, or approved by the commission.21
(8) (35) "Person" means any natural person, corporation,22
association, partnership, receiver, trustee, executor, administrator,23
guardian, fiduciary, or other representative of any kind and includes any24
department, agency, or instrumentality of the state or any governmental25
subdivision thereof OF THE DEPARTMENT, AGENCY, OR INSTRUMENTALITY26
OF THE STATE.27
1346
-11- (9) (36) "Pool" means an underground reservoir containing a1
common accumulation of oil or gas, or both. Each zone of a general2
structure, which zone is completely separated from any other zone in the3
structure, is covered by the word "pool" as used in this article ARTICLE 60.4
(37) "PORE SPACE" MEANS A CAVITY OR VOID, WHETHER NATURAL5
OR ARTIFICIALLY CREATED, IN A SUBSURFACE STRATUM.6
(10) (38) "Producer" means the owner of a well capable of7
producing oil or gas, or both.8
(39) "REASONABLY FORESEEABLE FUTURE DEVELOPMENT" MEANS9
DEVELOPMENT THAT HAS NOT YET BEEN UNDERTAKEN FOR WHICH AN10
APPLICABLE LOCAL, STATE, OR FEDERAL AGENCY HAS RECEIVED AN11
APPLICATION OR ISSUED A PERMIT. FUTURE DEVELOPMENT IS REASONABLY12
FORESEEABLE ONLY IF INFORMATION RELATED TO THE PERMIT IS PUBLICLY13
AVAILABLE.14
(40) "SEQUESTRATION ESTATE" MEANS A PORTION OF A GEOLOGIC15
STORAGE RESOURCE.16
(10.5) (41) "Surface owner" means any person owning all or part17
of the surface of land upon which oil and gas ENERGY AND CARBON18
MANAGEMENT operations are conducted, as shown by the tax records of19
the county in which the tract of land is situated, or any person with such20
rights under a recorded contract to purchase.21
(10.7) (42) "Underground natural gas storage cavern" means a22
facility that stored natural gas in an underground cavern or abandoned23
mine on or before January 1, 2000. An underground natural gas storage24
cavern includes all surface or subsurface rights and appurtenances25
associated with the underground injection, storage, and withdrawal of26
natural gas, but does not include any compressor stations or pipeline27
1346
-12- facilities subject to regulation by the public utilities commission or the1
United States department of transportation.2
(11) (43) "Waste", as applied to gas:3
(a) Includes the escape, blowing, or releasing, directly or4
indirectly into the open air, of gas from wells productive of gas only, or5
gas in an excessive or unreasonable amount from wells producing oil or6
both oil and gas; and the production of gas in quantities or in such manner7
as unreasonably reduces reservoir pressure or, subject to subsection8
(11)(b) (43)(b) of this section, unreasonably diminishes the quantity of oil9
or gas that ultimately may be produced; excepting gas that is reasonably10
necessary in the drilling, completing, testing, and in furnishing power for11
the production of wells; and12
(b) Does not include the nonproduction of gas from a formation13
if necessary to protect public health, safety, and welfare; the environment;14
or wildlife resources as determined by the commission.15
(12) (44) "Waste", as applied to oil:16
(a) Includes underground waste; inefficient, excessive, or17
improper use or dissipation of reservoir energy, including gas energy and18
water drive; surface waste; open-pit storage; and waste incident to the19
production of oil in excess of the producer's aboveground storage20
facilities and lease and contractual requirements, but excluding storage,21
other than open-pit storage, reasonably necessary for building up or22
maintaining crude stocks and products of crude stocks for consumption,23
use, and sale; and24
(b) Does not include the nonproduction of oil from a formation if25
necessary to protect public health, safety, and welfare; the environment;26
or wildlife resources as determined by the commission.27
1346
-13- (13) (45) "Waste", in addition to the meanings as set forth in1
subsections (11) (43) and (12) (44) of this section:2
(a) Means, subject to subsection (13)(b) (45)(b) of this section:3
(I) Physical waste, as that term is generally understood in the oil4
and gas industry;5
(II) The locating, spacing, drilling, equipping, operating, or6
producing of any oil or gas well or wells in a manner that causes or tends7
to cause reduction in quantity of oil or gas ultimately recoverable from a8
pool under prudent and proper operations or that causes or tends to cause9
unnecessary or excessive surface loss or destruction of oil or gas; and10
(III) Abuse of the correlative rights of any owner in a pool due to11
nonuniform, disproportionate, unratable, or excessive withdrawals of oil12
or gas from the pool, causing reasonably avoidable drainage between13
tracts of land or resulting in one or more producers or owners in the pool14
producing more than an equitable share of the oil or gas from the pool;15
and16
(b) Does not include the nonproduction of oil or gas from a17
formation if necessary to protect public health, safety, and welfare; the18
environment; or wildlife resources as determined by the commission.19
(14) Repealed.20
(15) (46) "Wildlife resources" means fish, wildlife, and their21
aquatic and terrestrial habitats.22
SECTION 3. In Colorado Revised Statutes, 34-60-105, amend23
(1)(b) introductory portion, (1)(b)(V), and (4)(a) as follows:24
34-60-105. Powers of commission. (1) (b) Any delegation of25
authority to any other state officer, board, or commission to administer26
any other laws of this state relating to the conservation of oil or gas, or27
1346
-14- either of them, is hereby rescinded and withdrawn, and that authority is1
unqualifiedly conferred upon the commission, as provided in this section;2
except that, as further specified in section 34-60-131, nothing in this3
article 60 alters, impairs, or negates the authority of:4
(V) A local government to regulate oil and gas ENERGY AND5
CARBON MANAGEMENT operations pursuant to section 29-20-104.6
(4) (a) Except as specified in subsection (4)(b) of this section,7
nothing in this article 60 authorizes the state or its local governments,8
including the commission, boards of county commissioners, and9
municipalities, to regulate the activities of:10
(I) Federally recognized Indian tribes, their political subdivisions,11
or tribally controlled affiliates, undertaken or to be undertaken with12
respect to mineral evaluation, exploration, or development
OR ENERGY
13
AND CARBON MANAGEMENT OPERATIONS on lands within the exterior14
boundaries of an Indian reservation located within the state; or15
(II) Third parties, undertaken or to be undertaken with respect to16
mineral evaluation, exploration, or development
OR ENERGY AND CARBON
17
MANAGEMENT OPERATIONS on Indian trust lands within the exterior18
boundaries of an Indian reservation located within the state.19
SECTION 4. In Colorado Revised Statutes, 34-60-106, amend20
(9)(c)(II), (9)(c)(III)(A), (9)(c)(III)(B), (9)(c)(IV)(A), (9)(c)(IV)(C),21
(9)(c)(IV)(D), (9)(d) introductory portion, (9)(d)(I), (9)(d)(II), (9)(d)(III),22
and (11)(d)(I); repeal (9)(c)(III)(C), (9)(e)(III), (11)(d)(III), and23
(11)(d)(IV); and add (9)(c)(IV)(D.5) and (9)(d.5) as follows:24
34-60-106. Additional powers of commission - fees - rules -25
definitions - repeal. (9) (c) (II) The commission may issue and enforce26
permits as necessary for the purpose set forth in this subsection (9)(c) FOR27
1346
-15- GEOLOGIC STORAGE OPERATIONS AND MAY REGULATE GEOLOGIC STORAGE1
OPERATIONS after the commission makes the determination and holds the2
hearing set forth in subsection (9)(c)(I) of this section and the commission3
and the governor satisfy the requirements set forth in subsection (9)(a) of4
this section.5
(III) (A) If the class VI injection well A GEOLOGIC STORAGE6
LOCATION is proposed to be sited in an area that would affect a7
disproportionately impacted community, the commission shall weigh the8
geologic storage operator's submitted cumulative impacts analysis and9
determine whether, on balance, the class VI injection well GEOLOGIC10
STORAGE OPERATIONS will have a positive effect on the disproportionately11
impacted community. A proposal that will have negative net cumulative12
impacts on any disproportionately impacted community must be denied.13
The commission's decision must include a plain language summary of its14
determination.15
(B) The commission may amend by rule the cumulative effects16
IMPACTS analysis and requirements set forth in this subsection (9)(c)(III)17
if the commission finds the analysis and requirements to be inconsistent18
with, or incomplete with respect to, the federal environmental protection19
agency's requirements for class VI primacy.20
(C) As used in this subsection (9)(c)(III), "cumulative impacts"21
means the effect on public health and the environment, including the22
effect on air quality, water quality, the climate, noise, odor, wildlife, and23
biological resources, caused by the incremental impact that a proposed24
new or modified class VI injection well would have when added to the25
impacts from other past, present, and reasonably foreseeable future26
development of any type on the affected area, including an airshed or27
1346
-16- watershed, or on a disproportionately impacted community.1
(IV) (A) The commission shall require each operator of a class VI2
injection well GEOLOGIC STORAGE OPERATOR to provide adequate3
financial assurance demonstrating that the
GEOLOGIC STORAGE operator4
is financially capable of fulfilling every obligation imposed on the5
operator under this article 60 and under rules that the commission adopts6
pursuant to this article 60.7
(C) The commission shall adopt rules requiring that the financial8
assurance cover the cost of obligations that are in addition to the9
obligations listed in subsection (9)(c)(IV)(B) of this section if the10
additional obligations are reasonably associated with
class VI injection11
wells and locations GEOLOGIC STORAGE OPERATIONS .12
(D) An operator A GEOLOGIC STORAGE OPERATOR shall maintain13
the financial assurance required under this subsection (9)(c)(IV) or under14
any rules adopted pursuant to this subsection (9)(c)(IV) until the15
commission approves site closure, as specified in rules adopted by the16
commission. Commission approval of a site closure does not otherwise17
modify an operator's responsibility to comply with applicable laws.18
(D.5) I
F A GEOLOGIC STORAGE OPERATOR MAKES A MATERIAL19
MISREPRESENTATION OR OMISSION THAT CAUSES THE COMMISSION TO20
APPROVE A SITE CLOSURE PURSUANT TO SUBSECTION (9)(c)(IV)(D) OF21
THIS SECTION, THE COMMISSION MAY REIMPOSE ANY REGULATORY22
RESPONSIBILITY OR FINANCIAL ASSURANCE OBLIGATION IMPOSED ON THE23
GEOLOGIC STORAGE OPERATOR PURSUANT TO SUBSECTION (9)(c)(IV)(A)24
OF THIS SECTION.25
(d) In issuing and enforcing permits pursuant to subsection (9)(c)
26
of this section FOR GEOLOGIC STORAGE OPERATIONS , the commission shall27
1346
-17- ensure, after a public hearing, that:1
(I) The permitting of a class VI injection well GEOLOGIC STORAGE2
LOCATION complies with a local government's siting of the proposed class3
VI injection well GEOLOGIC STORAGE location AND THAT THE4
COMMISSION HAS CONSULTED WITH ANY LOCAL GOVERNMENT WHOSE5
BOUNDARIES INCLUDE LANDS OVERLYING THE GEOLOGIC STORAGE6
FACILITY;7
(II) The proposed new or modified class VI injection well8
GEOLOGIC STORAGE LOCATION has received an ANY applicable air permit9
PERMITS from the division of administration in the department of public10
health and environment;11
(III) The
GEOLOGIC STORAGE operator of the class VI injection
12
well has received the consent of any surface owner or owners of the land13
where the surface disturbance will occur and has provided the14
commission a written contractual agreement that the surface owner or15
owners have executed; and16
(d.5) (I) F
OR THE PURPOSES OF IMPLEMENTING AND17
ADMINISTERING THIS SUBSECTION (9), THE COMMISSION MAY ASSESS AND18
COLLECT REGULATORY AND PERMITTING FEES FROM GEOLOGIC STORAGE19
OPERATORS IN AN AMOUNT AND FR EQUENCY DETERMINED BY THE20
COMMISSION BY RULE.21
(II) T
HE COMMISSION SHALL TRANSFER ANY FEES ASSESSED AND22
COLLECTED PURSUANT TO SUBSECTION (9)(d.5)(I) OF THIS SECTION TO THE23
STATE TREASURER, WHO SHALL CREDIT THE FEES TO THE ENERGY AND24
CARBON MANAGEMENT CASH FUND CREATED IN SECTION 34-60-122 (5).25
(e) As used in this subsection (9), unless the context otherwise26
requires:27
1346
-18- (III) "Disproportionately impacted community" has the meaning1
set forth in section 24-4-109 (2)(b)(II).2
(11) (d) (I) By April 28, 2024 SEPTEMBER 30, 2024, the3
commission shall promulgate rules that evaluate and address the4
cumulative impacts of oil and gas operations. The rules shall include a5
definition of cumulative impacts THE RULES SHALL REQUIRE EVALUATION6
OF ALL IMPACTS SET FORTH IN THE DEFINITION OF CUMULATIVE IMPACTS7
DESCRIBED IN SECTION 34-60-103. THE RULES SHALL REQUIRE8
ADDRESSING THOSE IMPACTS RESULTING FROM OPERATIONS REGULATED9
BY THE COMMISSION. WELLS DRILLED FOR THE EXCLUSIVE PURPOSE OF10
OBTAINING SUBSURFACE DATA OR INFORMATION TO SUPPORT OPERATIONS11
REGULATED BY THE COMMISSION DO NOT REQUIRE A CUMULATIVE12
IMPACTS ANALYSIS.13
(III) In promulgating the definition of cumulative impacts by rule14
pursuant to subsection (11)(d)(I) of this section, the commission shall15
review, consider, and include addressable impacts to climate, public16
health, the environment, air quality, water quality, noise, odor, wildlife,17
and biological resources, and to disproportionately impacted18
communities, as defined in section 24-4-109 (2)(b)(II).19
(IV) As used in this subsection (11)(d), "impacts to climate"20
means quantification of emissions of greenhouse gases, as defined in21
section 25-7-140 (6), that occur from sources that are controlled or owned22
by the operator and reasonably foreseeable truck traffic at an oil and gas23
location.24
25
SECTION 5. In Colorado Revised Statutes, 34-60-108, add (10)26
as follows:27
1346
-19- 34-60-108. Rules - hearings - process. (10) T HE DIRECTOR OF1
THE COMMISSION MAY HIRE AND DESIGNATE EMPLOYEES OF THE2
COMMISSION AS ADMINISTRATIVE LAW JUDGES WHO HAVE THE AUTHORITY3
TO ADMINISTER OATHS, EXAMINE WITNESSES, RECEIVE EVIDENCE, AND4
CONDUCT HEARINGS, INVESTIGATIONS, AND OTHER PROCEEDINGS ON5
BEHALF OF THE COMMISSION.6
SECTION 6. In Colorado Revised Statutes, amend 34-60-115 as7
follows:8
34-60-115. Limitation on actions. (1) No AN action or other9
proceeding based upon a violation of this article ARTICLE 60 or any rule10
regulation, or order of the commission shall NOT be commenced or11
maintained unless it has been commenced within one year from THREE12
YEARS AFTER the date of the DISCOVERY OF THE alleged violation.13
(2) T
HE THREE-YEAR PERIOD OF LIMITATION DESCRIBED IN14
SUBSECTION (1) OF THIS SECTION DOES NOT APPLY IF INFORMATION15
REGARDING THE ALLEGED VIOLATION IS KNOWINGLY OR WILLFULLY16
CONCEALED BY THE ALLEGED VIOLATOR .17
SECTION 7. In Colorado Revised Statutes, 34-60-121, amend18
(1)(a), (1)(b), (1)(c)(I)(C), (1)(c)(I)(D), (1)(d), (1)(e), (4)(c), (5), (6),19
(7)(a) introductory portion, and (7)(b) as follows:20
34-60-121. Violations - investigations - penalties - rules -21
definition - legislative declaration. (1) (a) Any
ENERGY AND CARBON22
MANAGEMENT operator that violates this article
ARTICLE 60, any rule or23
order of the commission, or any permit is subject to a penalty of not more24
than fifteen thousand dollars for each act of violation per day that such25
THE violation continues. A VIOLATION DESCRIBED IN THIS SUBSECTION26
(1)(a)
CONTINUES FOR EACH DAY THAT IT IS NOT CORRECTED BY THE27
1346
-20- ENERGY AND CARBON MANAGEMENT OPERATOR .1
(b) The commission may impose a penalty by order only after a2
hearing in accordance with section 34-60-108 or by an administrative3
order by consent entered into by the commission and the
ENERGY AND4
CARBON MANAGEMENT operator.5
(c) The commission shall:6
(I) Promulgate rules that establish a penalty schedule appropriate7
to the nature of the violation and provide for the consideration of any8
aggravating or mitigating circumstances. The rules must establish the9
basis for determining the duration of a violation for purposes of imposing10
the applicable penalty and include presumptions that:11
(C) The failure to diligently implement corrective action pursuant12
to a schedule embodied in an administrative order on consent, order13
finding violation, or other order of the commission constitutes an14
independent violation for which the
ENERGY AND CARBON MANAGEMENT15
operator may be subject to additional penalties or corrective action orders16
imposed by the commission; and17
(D) The number of days of violation does not include any period18
necessary to allow the
ENERGY AND CARBON MANAGEMENT operator to19
engage in good faith negotiation with the commission regarding an20
alleged violation if the
ENERGY AND CARBON MANAGEMENT operator21
demonstrates a prompt, effective, and prudent response to the violation.22
(d) An
ENERGY AND CARBON MANAGEMENT operator subject to a23
penalty order shall pay the amount due within thirty days after its24
imposition unless the
ENERGY AND CARBON MANAGEMENT operator files25
a judicial appeal. The commission may recover penalties owed under this26
section in a civil action brought by the attorney general at the request of27
1346
-21- the commission in the second judicial district. Money collected through1
the imposition of penalties shall MUST be credited first to any legal costs2
and attorney fees incurred by the attorney general in the recovery action3
and then to the environmental response account in the energy and carbon4
management cash fund created in section 34-60-122 (5).5
(e) The general assembly hereby declares that the purposes of this6
subsection (1) are to deter noncompliance and to encourage any7
out-of-compliance
ENERGY AND CARBON MANAGEMENT operators to come8
into compliance as soon as possible and to those ends intends that, in9
determining the amount of a penalty, the commission should not reduce10
the number of days of violation for which a penalty is assessed below that11
number which the evidence supports.12
(4) (c) Whenever the commission or the director has reasonable13
cause to believe a violation of any provision of this article 60, any rule or14
order of the commission, or any permit has occurred, including based on15
a written complaint from any person, the commission or the director shall16
provide written notice to the
ENERGY AND CARBON MANAGEMENT17
operator whose act or omission allegedly resulted in the violation and18
require that the
ENERGY AND CARBON MANAGEMENT operator remedy the19
violation. The notice must be served personally or by certified mail,20
return receipt requested, to the
ENERGY AND CARBON M ANAGEMENT21
operator or the
ENERGY AND CARBON MANAGEMENT operator's agent for22
service of process and must state the provision alleged to have been23
violated, the facts alleged to constitute the violation, and any corrective24
action and abatement deadlines the commission or director elects to25
require of the
ENERGY AND CARBON MANAGEMENT operator.26
(5) (a) If an
ENERGY AND CARBON MANAGEMENT operator fails to27
1346
-22- take corrective action required pursuant to subsection (4) of this section,1
or whenever the commission or the director has evidence that a violation2
of any provision of this article ARTICLE 60, or of any rule regulation, or3
order of the commission, or of any permit has occurred, under4
circumstances deemed to constitute an emergency situation, the5
commission or the director may issue a cease-and-desist order to the6
ENERGY AND CARBON MANAGEMENT operator whose act or omission7
allegedly resulted in such
THE violation. Such THE cease-and-desist order8
shall MUST require such action by the ENERGY AND CARBON9
MANAGEMENT operator as the commission or director deems appropriate.10
The order shall MUST be served personally or by certified mail, return11
receipt requested, to the
ENERGY AND CARBON MANAGEMENT operator or12
the
ENERGY AND CARBON MANAGEMENT operator's agent for service of13
process and shall
MUST state the provision alleged to have been violated,14
the facts alleged to constitute the violation, the time by which the acts or15
practices cited are required to cease, and any corrective action the16
commission or the director elects to require of the
ENERGY AND CARBON17
MANAGEMENT operator.18
(b) The commission or the director may require an
ENERGY AND19
CARBON MANAGEMENT operator to appear for a hearing before the20
commission no sooner than fifteen days after the issuance of a21
cease-and-desist order; except that the
ENERGY AND CARBON22
MANAGEMENT operator may request an earlier hearing. At any hearing23
concerning a cease-and-desist order, the commission shall permit all24
interested parties and any complaining parties to present evidence and25
argument and to conduct cross-examination required for a full disclosure26
of the facts.27
1346
-23- (c) In the event THAT an ENERGY AND CARBON MANAGEMENT1
operator fails to comply with a cease-and-desist order, the commission2
may request the attorney general to bring suit pursuant to section3
34-60-109.4
(6) If the commission determines, after a hearing conducted in5
accordance with section 34-60-108, that an
ENERGY AND CARBON6
MANAGEMENT operator has failed to perform any corrective action7
imposed under subsection (4) of this section or failed to comply with a8
cease-and-desist order issued under subsection (5) of this section with9
regard to a violation of a permit provision, the commission may issue an10
order suspending, modifying, or revoking such
THE permit or may take11
other appropriate action. An
ENERGY AND CARBON MANAGEMENT12
operator subject to an order that suspends, modifies, or revokes a permit13
shall continue the affected operations only for the purpose of bringing14
them
THE AFFECTED OPERATIONS into compliance with the permit or15
modified permit and shall do so MUST BRING THE AFFECTED OPERATIONS16
INTO COMPLIANCE under the supervision of the commission. Once the17
affected operations are in compliance to the satisfaction of the18
commission and any penalty not subject to judicial review or appeal has19
been paid, the commission shall reinstate the permit.20
(7) (a) The commission or the director shall issue an order to an21
ENERGY AND CARBON MANAGEMENT operator to appear for a hearing22
before the commission in accordance with section 34-60-108 whenever23
the commission or the director has evidence that an
ENERGY AND CARBON24
MANAGEMENT operator is responsible for:25
(b) If the commission finds, after such hearing, that the
ENERGY26
AND CARBON MANAGEMENT operator is responsible under the legal27
1346
-24- standards specified in paragraph (a) of this subsection (7), it SUBSECTION1
(7)(a)
OF THIS SECTION, THE COMMISSION may issue an order that prohibits2
the issuance of any new permits to the
ENERGY AND CARBON3
MANAGEMENT operator, suspends any or all of the ENERGY AND CARBON4
MANAGEMENT operator's certificates of clearance, or both. When the5
ENERGY AND CARBON MANAGEMENT operator demonstrates to the6
satisfaction of the commission that it has brought each of the violations7
into compliance and that any penalty not subject to judicial review or8
appeal has been paid, the commission may vacate the order.9
SECTION 8. In Colorado Revised Statutes, 34-60-124, amend10
(3), (4)(a)(II),
(4)(e)(II), (4)(f), (6)(a), (6)(c), (7), and (8)(b); and add11
(4)(g) as follows:12
34-60-124. Energy and carbon management cash fund -13
definitions - repeal. (3) The money in the fund is subject to annual14
appropriation by the general assembly; except that money deposited in the15
fund constituting forfeited security or other financial assurance provided16
by
ENERGY AND CARBON MANAGEMENT operators in accordance with17
section 34-60-106 (3.5), (9)(c)(IV)(A), and (13) is continuously18
appropriated to the commission for the purpose of fulfilling obligations19
under this article 60 upon which an
ENERGY AND CARBON MANAGEMENT20
operator has defaulted.21
(4) The fund may be expended:22
(a) By the commission, or by the director at the commission's23
direction, prior to, during, or after the conduct of any operations subject24
to the authority of the commission to:25
(II) Gather background or baseline data on any air, water, soil, or26
biological resource that the commission determines may be so impacted27
1346
-25- by the conduct of oil and gas ENERGY AND CARBON MANAGEMENT1
operations; and2
(e) (II) This subsection (4)(e) is repealed, effective July 1, 2025;3
and4
(f) To create and maintain the website described in section5
34-60-106 (22); AND6
(g) BY THE COMMISSION FOR THE PURPOSE OF INFORMATION7
TECHNOLOGY INITIATIVES.8
(6) For the purposes provided for in subsection (4) of this section,9
the commission is authorized to:10
(a) Enter onto any lands or waters, public or private; and, except11
in emergency situations, the commission shall provide reasonable notice12
prior to such entry in order to allow a surface owner, local government13
designee,
ENERGY AND CARBON MANAGEMENT operator, or responsible14
party to be present and to obtain duplicate samples and copies of15
analytical reports;16
(c) Confiscate and sell for salvage any equipment abandoned by17
a responsible party at a location where the conduct of oil and gas
ENERGY18
AND CARBON MANAGEMENT operations has resulted in a significant19
adverse environmental impact; except that this authority shall be IS20
subject to and secondary to any valid liens, security interests, or other21
legal interests in such equipment asserted by any taxing authority or by22
any creditor of the responsible party.23
(7) If the commission determines that mitigation of a significant24
adverse environmental impact on any air, water, soil, or biological25
resource is necessary as a result of the conduct of oil and gas ENERGY26
AND CARBON MANAGEMENT operations, the commission shall issue an27
1346
-26- order requiring the responsible party to perform such THE mitigation. If1
the responsible party cannot be identified or refuses to comply with such2
THE order, the commission shall authorize the necessary expenditures3
from the fund. The commission shall bring suit in the second judicial4
district to recover such THE expenditures from any responsible party who5
THAT refuses to perform such THE mitigation or any responsible party6
who THAT is subsequently identified, such THE action to be brought7
within a two-year period from AFTER the date that final expenditures were8
authorized. Moneys MONEY recovered as a result of such THE suit shall9
MUST first be applied to the commission's legal costs and attorney fees10
and shall MUST then be credited to the fund.11
(8) As used in this section:12
(b) (I) "Responsible party" means any person who conducts an oil13
and gas ENERGY AND CARBON MANAGEMENT operation in a manner that14
violates any then-applicable provision of this article 60, or of any rule or15
order of the commission, or of any permit that threatens to cause, or16
actually causes, a significant adverse environmental impact to any air,17
water, soil, or biological resource. "Responsible party" includes any18
person who disposes of any other waste by mixing it with exploration and19
production waste that threatens to cause, or actually causes, a significant20
adverse environmental impact to any air, water, soil, or biological21
resource.22
(II) Except as otherwise provided in subsection (8)(b)(I) of this23
section, "responsible party" does not include any landowner, whether of24
the surface estate, mineral estate, or both, who does not engage in, or25
assume responsibility for, the conduct of oil and gas ENERGY AND26
CARBON MANAGEMENT operations.27
1346
-27- SECTION 9. In Colorado Revised Statutes, amend 34-60-131 as1
follows:2
34-60-131. No land use preemption. Local governments and3
state agencies, including the commission and agencies listed in section4
34-60-105 (1)(b), have regulatory authority over oil and gas development5
ENERGY AND CARBON MANAGEMENT OPERATIONS , including as specified6
in section 34-60-105 (1)(b). A local government's regulations may be7
more protective or stricter than state requirements.8
SECTION 10. In Colorado Revised Statutes, 34-60-134, repeal9
(1)(b) as follows:10
34-60-134. Reporting of water used in oil and gas operations11
- cumulative reporting - definitions - rules - repeal. (1) Definitions.12
As used in this section and in section 34-60-135, unless the context13
otherwise requires:14
(b) "Disproportionately impacted community" has the meaning set15
forth in section 24-4-109 (2)(b)(II).16
SECTION 11. In Colorado Revised Statutes, add 34-60-140,17
34-60-141, 34-60-142, and 34-60-143 as follows:18
19
34-60-140. Ownership of geologic storage resources and20
injection carbon dioxide - legislative declaration. (1) T HE GENERAL21
ASSEMBLY DECLARES THAT THIS SECTION IS INTENDED TO ALLOW FOR THE22
PERMANENT USE OF GEOLOGIC STORAGE RESOURCES FOR GEOLOGIC23
STORAGE OPERATIONS AND IS NOT INTENDED TO IMPACT THE USE OR24
OWNERSHIP OF THE SUBSURFACE FOR CONJUNCTIVE USE OF SURFACE AND25
GROUNDWATER RESOURCES , ARTIFICIAL RECHARGE, STORAGE, AND26
EXTRACTION INTENDED TO MAXIMIZE UTILIZATION OF WATER FOR27
1346
-28- BENEFICIAL USE OR OTHER OPERATIONS .1
(2) (a) E
XCEPT AS SET FORTH IN SUBSECTION
(5) OF THIS SECTION:2
(I) I
F OWNERSHIP OF THE SEQUESTRATION ESTATE HAS NOT BEEN3
SEPARATELY SEVERED , CONVEYED, OR RESERVED PURSUANT TO4
SUBSECTION (2)(b) OF THIS SECTION, IT IS PRESUMED THAT OWNERSHIP OF5
THE SEQUESTRATION ESTATE IN THE STATE IS VESTED IN THE OWNER OF6
THE OVERLYING SURFACE ESTATE ; AND7
(II) O
WNERSHIP OF
INJECTION CARBON DIOXIDE AND THE8
FACILITIES AND EQUIPMENT THAT STORE INJECTION CARBON DIOXIDE IN9
THE STATE IS VESTED IN:10
(A) T
HE PERSON THAT INJECTS THE
INJECTION CARBON DIOXIDE11
INTO A GEOLOGIC STORAGE RESOURCE ; OR12
(B) A
NY PERSON CONVEYED TITLE TO THE
INJECTION CARBON13
DIOXIDE OR THE FACILITIES AND EQUIPMENT THAT STORE THE INJECTION14
CARBON DIOXIDE BY THE PERSON DESCRIBED IN SUBSECTION (2)(a)(II)(A)15
OF THIS SECTION.16
(b) O
WNERSHIP OF A SEQUESTRATION ESTATE MAY BE :17
(I) S
EVERED FROM THE OWNERSHIP OF THE OVERLYING SURFACE18
ESTATE; AND19
(II) C
ONVEYED OR RESERVED IN THE SAME MANNER AS OWNERSHIP20
OF A MINERAL ESTATE.21
(3) A
NY CONVEYANCE OF THE OWNERSHIP OF AN OVERLYING22
SURFACE ESTATE ALSO CONVEYS ALL OF THE GRANTOR 'S OWNERSHIP OF23
ANY SEQUESTRATION ESTATE UNLESS :24
(a) T
HE CONVEYANCE INSTRUMENT EXPRESSLY RESERVES THE25
SEQUESTRATION ESTATE, INCLUDING BY BROAD RESERVATION OF PORE26
SPACE; OR27
1346
-29- (b) THE SEQUESTRATION ESTATE HAS BEEN PREVIOUSLY SEVERED ,1
BY RESERVATION OR CONVEYANCE , FROM THE OWNERSHIP OF THE2
OVERLYING SURFACE ESTATE .3
(4) A
CONVEYANCE OF THE OWNERSHIP OF A MINERAL ESTATE OR4
ANOTHER SUBSURFACE INTEREST DOES NOT CONVEY THE GRANTOR 'S5
OWNERSHIP IN THE SEQUESTRATION ESTATE UNLESS THE CONVEYANCE6
INSTRUMENT EXPRESSLY PROVIDES FOR CONVEYANCE OF THE GRANTOR 'S7
OWNERSHIP OF THE SEQUESTRATION ESTATE .8 9
(5) NOTWITHSTANDING ANY PROVISION OF LAW TO THE10
CONTRARY, NOTHING IN THIS SECTION:11
(a) A
FFECTS ANY OWNERSHIP OR RIGHTS TO PORE SPACE , A12
SEQUESTRATION ESTATE, OR
INJECTION CARBON DIOXIDE OR TO FACILITIES13
AND EQUIPMENT THAT STORE INJECTION CARBON DIOXIDE THAT ARE14
ACQUIRED OR RESERVED BEFORE THE EFFECTIVE DATE OF HOUSE BILL15
24-1346, ENACTED IN 2024;16
(b) C
HANGES OR ALTERS THE COMMON LAW AS OF THE EFFECTIVE17
DATE OF
HOUSE BILL 24-1346, ENACTED IN 2024, AS IT RELATES TO THE18
OWNERSHIP OF REAL PROPERTY , INCLUDING SURFACE ESTATES , PORE19
SPACE, OR A MINERAL ESTATE, OR TO THE RIGHTS OR DOMINANCE OF A20
MINERAL ESTATE; 21
(c) A
FFECTS THE ABILITY OF AN OWNER OF PORE SPACE TO :22
(I) B
ROADLY CONVEY OR RESERVE ALL OF THE OWNER 'S RIGHT,23
TITLE, AND INTEREST IN AND TO PORE SPACE , INCLUDING THE OWNER'S24
INTEREST IN A SEQUESTRATION ESTATE; OR25
(II) C
ONVEY OR RESERVE ANY RIGHT, TITLE, OR INTEREST IN AND26
TO ESTATES IN PORE SPACE OTHER THAN THE SEQUESTRATION ESTATE ; OR
27
1346
-30- (d) AFFECTS THE OWNERSHIP OR RIGHTS TO PORE SPACE OR A1
SEQUESTRATION ESTATE WITHIN THE EXTERIOR BOUNDARIES OF AN INDIAN2
RESERVATION LOCATED WITHIN THE STATE .3
34-60-141. Geologic storage units - legislative declaration -4
definitions. (1) T
HE GENERAL ASSEMBLY DECLARES THAT THE PURPOSE5
OF THIS SECTION IS THE PROTECTION OF CORRELATIVE RIGHTS ,6
FACILITATION OF COLORADO'S ENERGY RESOURCES, AND FACILITATION OF7
THE USE OF GEOLOGIC STORAGE RESOURCES FOR GEOLOGIC STORAGE8
OPERATIONS.9
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE10
REQUIRES:11
(a) "G
EOLOGIC STORAGE UNIT ORDER " MEANS AN ORDER THAT12
PROVIDES FOR THE FORMATION OF A GEOLOGIC STORAGE UNIT AND THAT13
IS ENTERED BY THE COMMISSION PURSUANT TO SUBSECTION (4)(b) OF THIS14
SECTION.15
(b) "P
LAN" MEANS A PLAN FOR GEOLOGIC STORAGE OPERATIONS16
OF THE GEOLOGIC STORAGE UNIT APPROVED BY THE COMMISSION17
PURSUANT TO SUBSECTION (4)(c)(II) OF THIS SECTION.18
(3) A
N AGREEMENT FOR GEOLOGIC STORAGE OR GEOLOGIC19
STORAGE OPERATIONS, OR FOR CARRYING ON ANY OTHER MET HODS OF20
UNIT OR COOPERATIVE DEVELOPMENT OR OPERATION OF A GEOLOGIC21
STORAGE RESOURCE, IS AUTHORIZED AND MAY BE PERFORMED , AND, IF22
THE AGREEMENT IS APPROVED BY THE COMMISSION AS BEING IN THE23
PUBLIC INTEREST OR IS REASONABLY NECESSARY FOR GEOLOGIC STORAGE24
OPERATIONS, DOES NOT VIOLATE ANY STATUTES RELATING TO TRUSTS ,25
MONOPOLIES, OR CONTRACTS AND COMBINATIONS IN RESTRAINT OF26
TRADE.27
1346
-31- (4) (a) UPON THE APPLICATION OF ANY INTERESTED PERSON , THE1
COMMISSION SHALL HOLD A HEARING TO CONSIDER THE NEED FOR A2
GEOLOGIC STORAGE UNIT.3
(b) T
HE COMMISSION SHALL ENTER AN ORDER PROVIDING FOR THE4
FORMATION OF A GEOLOGIC STORAGE UNIT IF THE COMMISSION FINDS THAT5
THE GEOLOGIC STORAGE UNIT IS REASONABLY NECESSARY TO EFFECTUATE6
A GEOLOGIC STORAGE PROJECT. THE GEOLOGIC STORAGE UNIT AREA OF A7
GEOLOGIC STORAGE UNIT MUST BE BASED ON SITE CHARACTERIZATION8
AND MODELING CONDUCTED PURSUANT TO THE FEDERAL "SAFE DRINKING9
W
ATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AS AMENDED, AND ANY RULES10
ESTABLISHED BY THE COMMISSION PURSUANT TO THE FEDERAL ACT .11
(c) A
GEOLOGIC STORAGE UNIT ORDER MUST :12
(I) I
NCLUDE TERMS AND CONDITIONS THAT ARE JUST AND13
REASONABLE;14
(II) E
STABLISH A PLAN FOR OPERATIONS OF THE GEOLOGIC15
STORAGE UNIT, WHICH PLAN MUST INCLUDE:16
(A) A
DESCRIPTION OF THE GEOLOGIC STORAGE UNIT AREA ;17
(B) A
DESCRIPTION OF THE OPERATIONS THAT WILL BE CONDUCTED18
IN THE GEOLOGIC STORAGE UNIT AREA ;19
(C) A
DETERMINATION OF THE PERCENTAGE OF EACH GEOLOGIC20
STORAGE RESOURCE ALLOCATED TO EACH SEPARATELY OWNED TRACT21
WITHIN THE GEOLOGIC STORAGE UNIT AREA ;22
(D) A
DESCRIPTION OF THE METHOD BY WHICH EACH OWNER OF A23
SEQUESTRATION ESTATE INCLUDED IN THE GEOLOGIC STORAGE UNIT AREA24
WILL BE ALLOCATED COMPENSATION RELATED TO THE USE OF THE25
SEQUESTRATION ESTATE;26
(E) A
DESCRIPTION OF THE MANNER IN WHICH THE GEOLOGIC27
1346
-32- STORAGE UNIT AREA WILL BE SUPERVISED AND MANAGED AND , IF1
APPLICABLE, HOW COSTS RELATED TO OPERATIONS OF THE GEOLOGIC2
STORAGE UNIT WILL BE ALLOCATED AND PAID ;3
(F) T
HE TIME WHEN OPERATIONS OF THE GEOLOGIC STORAGE UNIT4
WILL COMMENCE AND THE MANNER IN WHICH , AND THE CIRCUMSTANCES5
UNDER WHICH, OPERATIONS OF THE GEOLOGIC STORAGE UNIT WILL6
TERMINATE; AND7
(G) A
NY ADDITIONAL PROVISIONS THAT ARE FOUND TO BE8
APPROPRIATE FOR CONDUCTING OPERATIONS OF THE GEOLOGIC STORAGE9
UNIT AND FOR THE PROTECTION OF CORRELATIVE RIGHTS .10
(d) A
GEOLOGIC STORAGE UNIT ORDER IS EFFECTIVE ONLY IF :11
(I) T
HE PLAN HAS BEEN APPROVED IN WRITING BY THOSE PERSONS12
THAT, PURSUANT TO THE GEOLOGIC STORAGE UNIT ORDER , COLLECTIVELY13
OWN AT LEAST SEVENTY -FIVE PERCENT OF THE GEOLOGIC STORAGE14
RESOURCES INCLUDED IN THE GEOLOGIC STORAGE UNIT AREA ; AND15
(II) T
HE COMMISSION MAKES A FINDING IN THE GEOLOGIC STORAGE16
UNIT ORDER THAT THE PLAN HAS BEEN APPROVED IN ACCORDANCE WITH17
SUBSECTION (4)(d)(I) OF THIS SECTION.18
(5) A
GEOLOGIC STORAGE UNIT ORDER MAY BE AMENDED BY AN19
ORDER MADE BY THE COMMISSION IN THE SAME MANNER AND SUBJECT TO20
THE SAME CONDITIONS AS THE ORIGINAL GEOLOGIC STORAGE UNIT ORDER .21
(6) A
NY OWNER OF A SEQUESTRATION ESTATE INCLUDED IN THE22
GEOLOGIC STORAGE UNIT AREA THAT IS NOT INCLUDED IN THE GEOLOGIC23
STORAGE UNIT ORDER MAY PETITION THE COMMISSION FOR INCLUSION IN24
THE GEOLOGIC STORAGE UNIT ORDER .25
(7) N
OTWITHSTANDING ANY PROVISION OF LAW TO THE26
CONTRARY:27
1346
-33- (a) NOTHING IN THIS SECTION CONFERS ON ANY PERSON THE RIGHT1
OF EMINENT DOMAIN; AND2
(b) A
GEOLOGIC STORAGE UNIT ORDER DOES NOT GRANT TO ANY3
PERSON THE RIGHT OF EMINENT DOMAIN .4
(8) G
EOLOGIC STORAGE OPERATIONS CONDUCTED PURSUANT TO5
A GEOLOGIC STORAGE UNIT ORDER , INCLUDING THE COMMENCEMENT ,6
DRILLING, OR OPERATION OF A CLASS VI INJECTION WELL ON ANY PORTION7
OF THE GEOLOGIC STORAGE UNIT AREA , CONSTITUTE, FOR ALL PURPOSES,8
GEOLOGIC STORAGE OPERATIONS ON EACH SEPARATELY OWNED TRACT IN9
THE GEOLOGIC STORAGE UNIT AREA BY THE OWNERS OF SEQUESTRATION10
ESTATES INCLUDED IN THE GEOLOGIC STORAGE UNIT AREA .11
(9) A
GEOLOGIC STORAGE UNIT ORDER MUST NOT BE CONSTRUED12
TO RESULT IN A TRANSFER OF ALL OR ANY PART OF THE TITLE OF ANY13
PERSON TO THE SEQUESTRATION ESTATE OR ASSOCIATED RIGHTS IN ANY14
TRACT IN THE GEOLOGIC STORAGE UNIT AREA .15
34-60-142. Technical assistance to local governments. T O16
PROVIDE A LOCAL GOVERNMENT WITH TECHNICAL ASSISTANCE REGARDING17
THE LOCAL GOVERNMENT 'S DEVELOPMENT OF LAND USE AND SITING18
REGULATIONS FOR GEOLOGIC STORAGE OPERATIONS, THE LOCAL19
GOVERNMENT THAT HAS LAND USE JURISDICTION MAY REQUEST THAT THE20
DIRECTOR OF THE COMMISSION APPOINT A TECHNICAL REVIEW BOARD TO21
ASSIST THE LOCAL GOVERNMENT BY ANALYZING AND ANSWERING ANY22
TECHNICAL QUESTIONS NECESSARY FOR THE LOCAL GOVERNMENT TO23
DEVELOP THE LOCAL GOVERNMENT 'S ASSOCIATED LAND USE24
REGULATIONS.25
34-60-143. Coordination between the department of public26
health and environment and the commission on geologic storage27
1346
-34- operations - definition. (1) A S USED IN THIS SECTION, UNLESS THE1
CONTEXT OTHERWISE REQUIRES, "DEPARTMENT" MEANS THE DEPARTMENT2
OF PUBLIC HEALTH AND ENVIRONMENT .3
(2) (a) T
HE DEPARTMENT SHALL DEVELOP CARBON DIOXIDE4
ACCOUNTING PROCEDURES FOR
GEOLOGIC STORAGE OPERATIONS. THE5
COMMISSION SHALL COMPILE RELEVANT DATA PURSUANT TO THE6
COMMISSION'S REGULATORY AUTHORITY TO SUPPORT THE CARBON7
DIOXIDE ACCOUNTING PROCEDURES DEVELOPED BY THE DEPARTMENT .8
(b) T
HE COMMISSION AND THE DEPARTMENT SHALL WORK9
COLLABORATIVELY TO IMPLEMENT SUBSECTION (2)(a) OF THIS SECTION10
AND TO SHARE DATA TO FACILITATE THE MONITORING , VERIFICATION, AND11
ACCOUNTING OF CARBON DIOXIDE IN
GEOLOGIC STORAGE OPERATIONS.12
(3) T
HE COMMISSION AND THE DEPARTMENT SHALL WORK13
COLLABORATIVELY TO FACILITATE APPLICATION OF THE DEPARTMENT 'S14
REGULATORY AUTHORITY TO ADDRESS AIR EMISSIONS FROM
GEOLOGIC15
STORAGE OPERATIONS. THE COMMISSION SHALL REQUIRE OPERATORS OF 16
GEOLOGIC STORAGE FACILITIES TO OBTAIN ANY RELEVANT PERMITS17
FROM THE DEPARTMENT.18
SECTION 12. In Colorado Revised Statutes, 24-30-1003, amend19
(1) as follows:20
24-30-1003. Administrative law judges - appointment -21
qualifications - standards of conduct. (1) The executive director of the22
department of personnel may appoint such administrative law judges,23
except those employed pursuant to sections 24-50-103 (7), 34-60-108,24
and 40-2-104, C.R.S., as may be necessary to provide services to each25
state agency; except
THAT the state personnel board, THE ENERGY AND26
CARBON MANAGEMENT COMMISSION , and the public utilities commission27
1346
-35- entitled to MAY use administrative law judges. Administrative law judges1
shall MUST be appointed in accordance with the provisions of section 132
of article XII of the state constitution and the laws and rules governing3
the state personnel system.4
SECTION 13. In Colorado Revised Statutes, 2-3-128, amend5
(1)(d) as follows:6
2-3-128. Oil and gas - performance audit - report - definitions7
- repeal. (1) As used in this section, unless the context otherwise8
requires:9
(d) "Operator" has the meaning set forth in section 34-60-103.10
(6.8).11
SECTION 14. In Colorado Revised Statutes, 25-7-132, amend12
(2)(a)(I) as follows:13
25-7-132. Emission data - public availability - submission of14
2023 reports to state auditor - definitions - repeal. (2) (a) As used in15
this subsection (2), unless the context otherwise requires:16
(I) "Operator" has the meaning set forth in section 34-60-103.17
(6.8).18
SECTION 15. In Colorado Revised Statutes, 25-15-101, amend19
(6)(b)(IX) and (6)(b)(X) as follows:20
25-15-101. Definitions. As used in this article 15, unless the21
context otherwise requires:22
(6) (b) "Hazardous waste" does not include:23
(IX) Waste from oil and gas operations, as defined in section24
34-60-103, (6.5), or from deep geothermal operations, as defined in25
section 37-90.5-103 (3), including, but not limited to, drilling fluids,26
produced water, and other wastes associated with the exploration,27
1346
-36- development, or production of crude oil, natural gas, or geothermal1
resources, that is disposed of in accordance with the requirements of the2
energy and carbon management commission pursuant to article 90.5 of3
title 37 and article 60 of title 34, as applicable; and4
(X) Exploration and production waste, as defined in section5
34-60-103. (4.5).6
SECTION 16. In Colorado Revised Statutes, 25-15-603, amend7
(15) as follows:8
25-15-603. Definitions - repeal. As used in this part 6, unless the9
context otherwise requires:10
(15) "Oil and gas operations" has the meaning set forth in section11
34-60-103. (6.5).12
SECTION 17. In Colorado Revised Statutes, 29-20-104, amend13
(1)(h) introductory portion, (1)(h)(II), and (3)(a)(I) as follows:14
29-20-104. Powers of local governments - definition.15
(1) Except as expressly provided in section 29-20-104.2 or 29-20-104.5,16
the power and authority granted by this section does not limit any power17
or authority presently exercised or previously granted. Except as provided18
in section 29-20-104.2, each local government within its respective19
jurisdiction has the authority to plan for and regulate the use of land by:20
(h) Regulating the surface impacts of oil and gas operations, as21
defined in section 34-60-103 (6.5), deep geothermal operations, as22
defined in section 37-90.5-103 (3), class VI injection wells, and intrastate23
underground natural gas storage facilities, as defined in section 34-64-10224
(3.5) ENERGY AND CARBON MANAGEMENT OPERATIONS, AS DEFINED IN25
SECTION 34-60-103, in a reasonable manner to address matters specified26
in this subsection (1)(h) and to protect and minimize adverse impacts to27
1346
-37- public health, safety, and welfare and the environment. Nothing in this1
subsection (1)(h) is intended to alter, expand, or diminish the authority of2
local governments to regulate air quality under section 25-7-128. As used3
in this subsection (1)(h), "minimize adverse impacts" means, to the extent4
necessary and reasonable, to protect public health, safety, and welfare and5
the environment by avoiding adverse impacts from oil and gas operations,6
as defined in section 34-60-103 (6.5), deep geothermal operations, as7
defined in section 37-90.5-103 (3), class VI injection wells, and intrastate8
underground natural gas storage facilities, as defined in section 34-64-1029
(3.5) ENERGY AND CARBON MANAGEMENT OPERATIONS, AS DEFINED IN10
SECTION 34-60-103, and minimizing and mitigating the extent and11
severity of those impacts that cannot be avoided. The following matters12
are covered by this subsection (1)(h):13
(II) The location and siting of oil and gas facilities and oil and gas14
locations, as those terms are defined in section 34-60-103 (6.2) and (6.4);15
deep geothermal operations, as defined in section 37-90.5-103 (3); class16
VI injection wells; and intrastate underground natural gas storage17
facilities, as defined in section 34-64-102 (3.5) ENERGY AND CARBON18
MANAGEMENT OPERATIONS , AS DEFINED IN SECTION 34-60-103;19
(3) (a) To provide a local government with technical expertise20
regarding whether a preliminary or final determination of the location of21
an oil and gas facility or oil and gas location within its respective22
jurisdiction could affect oil and gas resource recovery:23
(I) Once an operator, as defined in section 34-60-103, (6.8), files24
an application for the location and siting of an oil and gas facility or oil25
and gas location and the local government has made either a preliminary26
or final determination regarding the application, the local government27
1346
-38- having THAT HAS land use jurisdiction may ask the director of the energy1
and carbon management commission pursuant to section 34-60-104.5 (3)2
to appoint a technical review board to conduct a technical review of the3
preliminary or final determination and issue a report that contains the4
board's conclusions.5
SECTION 18. In Colorado Revised Statutes, 30-20-101, amend6
(6)(b)(VI) as follows:7
30-20-101. Definitions. As used in this part 1, unless the context8
otherwise requires:9
(6) (b) "Solid waste" does not include:10
(VI) Exploration and production wastes, as defined in section11
34-60-103, (4.5), C.R.S., except as such THE EXPLORATION AND12
PRODUCTION wastes may be deposited at a commercial solid waste13
facility;14
SECTION 19. In Colorado Revised Statutes, 39-29-112, amend15
(8)(a)(I) as follows:16
39-29-112. Procedures and reports - definitions - repeal.17
(8) (a) As used in this subsection (8), unless the context otherwise18
requires:19
(I) "Operator" has the meaning set forth in section 34-60-103.20
(6.8).21
SECTION 20. Safety clause. The general assembly finds,22
determines, and declares that this act is necessary for the immediate23
preservation of the public peace, health, or safety or for appropriations for24
the support and maintenance of the departments of the state and state25
institutions.26
1346
-39-