HOUSE BILL 24-1346
BY REPRESENTATIVE(S) Titone and McCormick, Bacon, Bird,
Boesenecker, Herod, Jodeh, Kipp, Lindsay, Mabrey, Parenti, Rutinel,
Willford, Amabile, English, Garcia, Hamrick, Ortiz, Ricks, Vigil;
also SENATOR(S) Hansen and Priola, Bridges, Buckner, Cutter, Exum,
Gonzales, Jaquez Lewis, Michaelson Jenet, Simpson, Fenberg.
C
ONCERNING ENERGY AND CARBON M ANAGEMENT REGULATION IN
COLORADO, AND, IN CONNECTION THEREWITH , BROADENING THE
ENERGY AND CARBON MANAGEMENT COMMISSION
'S REGULATORY
AUTHORITY TO INCLUDE REGULATION OF GEOLOGIC STORAGE
OPERATIONS
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 34-60-102, add (3) as
follows:
34-60-102. Legislative declaration. (3) I
T IS FURTHER DECLARED
TO BE IN THE PUBLIC INTEREST FOR THE COMMISSION TO IMPLEMENT AND
ADMINISTER A PROGRAM FOR THE PERMITTING AND REGULATION OF
PERMANENT GEOLOGIC STORAGE OPERATIONS IN A WAY THAT PRIORITIZES
:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (a) CONTRIBUTIONS TOWARD ACHIEVING THE STATE 'S GREENHOUSE
GAS EMISSION REDUCTION GOALS
, AS SET FORTH IN SECTION 25-7-102 (2)(g);
(b) B
ENEFITS TO THE STATE AND GLOBAL ENVIRONMENT BY
REDUCING CARBON DIOXIDE POLLUTION
;
(c) O
PPORTUNITIES TO SUPPORT A JUST TRANSITION AND TO HELP
RETRAIN WORKERS
, PARTICULARLY WORKERS PREVIOUSLY EMPLOYED IN THE
FOSSIL FUEL INDUSTRY
;
(d) P
ROTECTING DISPROPORTIONATELY IMPACTED COMMUNITIES AND
ADVANCING ENVIRONMENTAL JUSTICE
; AND
(e) THE SAFE AND RESPONSIBLE USE OF COLORADO'S ABUNDANT
NATURAL RESOURCES FOR THE PERMANENT STORAGE OF CARBON DIOXIDE
.
SECTION 2. In Colorado Revised Statutes, amend 34-60-103 as
follows:
34-60-103. Definitions - rules. As used in this article 60, unless the
context otherwise requires:
(1) "And" includes the word "or" and the use of the word "or"
includes the word "and". The use of the plural includes the singular and the
use of the singular includes the plural.
(2) (a) "C
ARBON DIOXIDE FLOW LINE" MEANS A SEGMENT OF PIPE
TRANSFERRING INJECTION CARBON DIOXIDE BETWEEN THE WELLHEAD OF A
CLASS
VI INJECTION WELL AND A PIPELINE REGULATED BY THE PIPELINE AND
HAZARDOUS MATERIALS SAFETY ADMINISTRATION OF THE
UNITED STATES
DEPARTMENT OF TRANSPORTATION OR THE PUBLIC UTILITIES COMMISSION
.
(b) "C
ARBON DIOXIDE FLOW LINE" DOES NOT INCLUDE PIPELINES
REGULATED BY THE PIPELINE AND HAZARDOUS MATERIALS SAFETY
ADMINISTRATION OF THE
UNITED STATES DEPARTMENT OF TRANSPORTATION
OR THE PUBLIC UTILITIES COMMISSION
.
(3) "C
LASS VI INJECTION WELL" MEANS A WELL DRILLED PURSUANT
TO A PERMIT FOR A CLASS
VI INJECTION WELL ISSUED UNDER THE FEDERAL
"SAFE DRINKING WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AS AMENDED.
PAGE 2-HOUSE BILL 24-1346 (2) (4) "Commission" means the energy and carbon management
commission created in section 34-60-104.3 (1).
(3) (5) "Common source of supply" is synonymous with "pool" as
defined in this section.
(4) (6) (a) "Correlative rights" means that each owner and producer
in a common pool or source of supply of oil and gas shall MUST have an
equal opportunity to obtain and produce his THE OWNER'S OR PRODUCER'S
just and equitable share of the oil and gas underlying such THE pool or
source of supply.
(b) A
S USED IN SECTION 34-60-141, "CORRELATIVE RIGHTS" MEANS
THAT EACH OWNER OF A SEQUESTRATION ESTATE MUST HAVE AN EQUAL
OPPORTUNITY TO UTILIZE THE OWNER
'S JUST AND EQUITABLE SHARE OF THE
UNDERLYING GEOLOGIC STORAGE RESOURCE
.
(7) (a) "C
UMULATIVE IMPACTS" MEANS THE EFFECTS ON PUBLIC
HEALTH AND THE ENVIRONMENT
, INCLUDING THE IMPACTS TO AIR QUALITY,
WATER QUALITY, CLIMATE, NOISE, ODOR, WILDLIFE, AND BIOLOGICAL
RESOURCES
, CAUSED BY THE INCREMENTAL IMPACTS THAT A PROPOSED NEW
OR AMENDED OPERATION REGULATED BY THE COMMISSION PURSUANT TO
THIS ARTICLE
60 WOULD HAVE WHEN ADDED TO THE IMPACTS FROM OTHER
PAST
, PRESENT, AND REASONABLY FORESEEABLE FUTURE DEVELOPMENT OF
ANY TYPE ON THE IMPACT AREA OR ON A DISPROPORTIONATELY IMPACTED
COMMUNITY
.
(b) "C
UMULATIVE IMPACTS" MAY INCLUDE BOTH ADVERSE AND
BENEFICIAL ENVIRONMENTAL IMPACTS
.
(c) T
HIS SUBSECTION (7) IS EFFECTIVE ON THE EFFECTIVE DATE OF
THE RULES ADOPTED PURSUANT TO SECTION
34-60-106 (11)(d)(I).
(8) "D
ISPROPORTIONATELY IMPACTED COMMUNITY " HAS THE
MEANING SET FORTH IN SECTION
24-4-109 (2)(b)(II).
(4.3)
(9) "Division of parks and wildlife" means the division of
parks and wildlife identified in article 9 of title 33. C.R.S.
(10) "ENERGY AND CARBON MANAGEMENT OPERATIONS " MEANS ALL
PAGE 3-HOUSE BILL 24-1346 OPERATIONS REGULATED BY THE COMMISSION .
(11) "E
NERGY AND CARBON MANAGEMENT OPERATOR " MEANS ANY
PERSON THAT EXERCISES THE RIGHT TO CONTROL THE CONDUCT OF ENERGY
AND CARBON MANAGEMENT OPERATIONS
.
(4.5)
(12) "Exploration and production waste" means those wastes
that are generated during the drilling of and production from oil and gas
wells; during the drilling of and production from wells for deep geothermal
operations, as defined in section 37-90.5-103 (3), regulated by the
commission pursuant to article 90.5 of title 37; or during primary field
operations and that are exempt from regulation as hazardous wastes under
Subtitle C of the federal "Resource Conservation and Recovery Act of
1976", 42 U.S.C. secs. 6901 to 6934, as amended.
(5)
(13) "Gas" means all natural gases and all hydrocarbons not
defined in this section as oil.
(14) "G
EOLOGIC STORAGE " MEANS THE INJECTION AND
UNDERGROUND SEQUESTRATION OF INJECTION CARBON DIOXIDE IN A
GEOLOGIC STORAGE RESOURCE PURSUANT TO A VALID CLASS
VI PERMIT
ISSUED PURSUANT TO THE FEDERAL
"SAFE DRINKING WATER ACT", 42
U.S.C.
SEC. 300f ET SEQ., AS AMENDED.
(15) (a) "G
EOLOGIC STORAGE FACILITY" MEANS THE SPECIFIC PART
OF A GEOLOGIC STORAGE RESOURCE THAT IS UTILIZED FOR GEOLOGIC
STORAGE
, TOGETHER WITH THE WELL OR WELLS AND ALL SURFACE
EQUIPMENT AND DISTURBANCES ASSOCIATED WITH THE GEOLOGIC STORAGE
OPERATIONS AT THE GEOLOGIC STORAGE LOCATION
.
(b) "G
EOLOGIC STORAGE FACILITY" DOES NOT INCLUDE PIPELINES
REGULATED BY THE PIPELINE AND HAZARDOUS MATERIALS SAFETY
ADMINISTRATION OF THE
UNITED STATES DEPARTMENT OF TRANSPORTATION
OR THE PUBLIC UTILITIES COMMISSION
.
(16) "G
EOLOGIC STORAGE LOCATION " MEANS A DEFINABLE AREA
WHERE A GEOLOGIC STORAGE OPERATOR USES OR INTENDS TO USE THE
SURFACE OF THE LAND IN ORDER TO OPERATE A GEOLOGIC STORAGE
FACILITY
.
PAGE 4-HOUSE BILL 24-1346 (17) "GEOLOGIC STORAGE OPERATIONS " MEANS ACTIVITIES
PERFORMED FOR THE PURPOSE OF ENGAGING IN GEOLOGIC STORAGE IN THE
STATE
, INCLUDING:
(a) T
HE FOLLOWING ACTIVITIES RELATED TO THE OPERATION OF A
GEOLOGIC STORAGE FACILITY
:
(I) D
RILLING TEST BORES AND MONITORING WELLS ;
(II) S
ITING;
(III) I
NSTALLING AND OPERATING CARBON DIOXIDE FLOW LINES ;
(IV) D
RILLING;
(V) D
EEPENING;
(VI) R
ECOMPLETING;
(VII) R
EWORKING; AND
(VIII) ABANDONING;
(b) I
NJECTING INJECTION CARBON DIOXIDE FOR THE PURPOSE OF
GEOLOGIC STORAGE
;
(c) A
NY CONSTRUCTING, SITE PREPARING, OR RECLAIMING
ACTIVITIES ASSOCIATED WITH THE ACTIVITIES DESCRIBED IN SUBSECTION
(17)(a) OR (17)(b) OF THIS SECTION; AND
(d) ANY OTHER ACTIVITIES DETERMINED BY THE COMMISSION TO BE
NECESSARY TO PROTECT AND MINIMIZE ADVERSE IMPACTS ASSOCIATED WITH
GEOLOGIC STORAGE TO PUBLIC HEALTH
, SAFETY, WELFARE, THE
ENVIRONMENT
, AND NATURAL RESOURCES.
(18) "G
EOLOGIC STORAGE OPERATOR " MEANS ANY PERSON THAT
EXERCISES THE RIGHT TO CONTROL THE CONDUCT OF GEOLOGIC STORAGE
OPERATIONS
.
(19) (a) "G
EOLOGIC STORAGE RESOURCE " MEANS PORE SPACE
PAGE 5-HOUSE BILL 24-1346 NECESSARY FOR GEOLOGIC STORAGE .
(b) "G
EOLOGIC STORAGE RESOURCE " DOES NOT INCLUDE AN
UNDERGROUND SOURCE OF DRINKING WATER
, AS DEFINED IN 40 CFR 144.3.
(20) "G
EOLOGIC STORAGE UNIT" MEANS A UNIT OF ONE OR MORE
GEOLOGIC STORAGE RESOURCES OR PARTS OF A GEOLOGIC STORAGE
RESOURCE ESTABLISHED BY THE COMMISSION PURSUANT TO SECTION
34-60-141.
(21) "G
EOLOGIC STORAGE UNIT AREA " MEANS ANY GEOLOGIC
STORAGE RESOURCE
, OR PART OF A GEOLOGIC STORAGE RESOURCE ,
INCLUDED IN A GEOLOGIC STORAGE UNIT .
(22) "I
MPACT AREA" MEANS A DEFINED GEOGRAPHIC AREA OR AREAS
IN WHICH OPERATIONS REGULATED BY THE COMMISSION HAVE THE
POTENTIAL TO CONTRIBUTE TO CUMULATIVE IMPACTS
. THE COMMISSION
SHALL DETERMINE THE IMPACT AREA FOR A PARTICULAR PROPOSED
OPERATION BASED ON THE NATURE
, INTENSITY, AND SCOPE OF THE
OPERATION IN ITS PROPOSED LOCATION AND THE GEOGRAPHIC EXTENT OF
POTENTIAL IMPACTS
.
(23) "I
MPACTS TO CLIMATE" MEANS THE QUANTIFICATION OF
EMISSIONS OF GREENHOUSE GASES
, AS DEFINED IN SECTION 25-7-140 (6),
THAT OCCUR FROM SOURCES THAT ARE CONTROLLED OR OWNED BY THE
ENERGY AND CARBON M ANAGEMENT OPERATOR AND FROM REASONABLY
FORESEEABLE TRUCK TRAFFIC
, AS WELL AS REDUCTIONS IN GREENHOUSE GAS
EMISSIONS
, ASSOCIATED WITH THE PROPOSED OPERATION .
(24) "I
NJECTION CARBON DIOXIDE " MEANS CARBON DIOXIDE ,
INCLUDING ITS DERIVATIVES AND ALL MIXTURES , COMBINATIONS, AND
PHASES
, WHETHER LIQUID, GASEOUS, SUPER-CRITICAL, OR SOLID, AND
WHETHER STRIPPED
, SEGREGATED, OR DIVIDED FROM ANY OTHER FLUID
STREAM
, INCLUDING ALL INCIDENTAL ASSOCIATED SUBSTANCES DERIVED
FROM THE SOURCE MATERIALS
.
(5.3)
(25) "Local government" means except with regard to section
34-60-104 (2)(a)(I), a:
(a) Municipality or city and county within whose boundaries an oil
PAGE 6-HOUSE BILL 24-1346 and gas location A SURFACE LOCATION FOR ENERGY AND CARBON
MANAGEMENT OPERATIONS
is sited or proposed to be sited; or
(b) County, if an oil and gas location
A SURFACE LOCATION FOR
ENERGY AND CARBON MANAGEMENT OPERATIONS
is sited or proposed to be
sited within the boundaries of the county but is not located within a
municipality or city and county.
(5.5)
(26) "Minimize adverse impacts" means, to the extent
necessary and reasonable to protect public health, safety, and welfare; the
environment; and wildlife resources, to:
(a) Avoid adverse impacts from oil and gas
ENERGY AND CARBON
MANAGEMENT
operations; and
(b) Minimize and mitigate the extent and severity of those impacts
that cannot be avoided.
(6)
(27) "Oil" means crude petroleum oil and any other
hydrocarbons, regardless of gravities, which THAT are produced at the well
in liquid form by ordinary production methods and which THAT are not the
result of condensation of gas before or after it leaves the reservoir.
(6.2) (28) "Oil and gas facility" means equipment or improvements
used or installed at an oil and gas location for the exploration, production,
withdrawal, treatment, or processing of crude oil, condensate, exploration
and production waste, or gas.
(6.4)
(29) "Oil and gas location" means a definable area where an
oil and gas operator has disturbed or intends to disturb the land surface in
order to locate an oil and gas facility.
(6.5)
(30) "Oil and gas operations" means exploration for oil and
gas, including:
(a) The conduct of seismic operations and the drilling of test bores;
(b) The siting, drilling, deepening, recompletion, reworking, or
abandonment of an oil and gas well, underground injection well, or gas
storage well;
PAGE 7-HOUSE BILL 24-1346 (c) Production operations related to any such well DESCRIBED IN
SUBSECTION
(30)(b) OF THIS SECTION, including the installation of flow lines
and gathering systems;
(d) The generation, transportation, storage, treatment, or disposal of
exploration and production wastes; and
(e) Any construction, site preparation, or reclamation activities
associated with such
THE operations DESCRIBED IN THIS SUBSECTION (30).
(6.8) (31) "Operator" means any person who THAT exercises the
right to control the conduct of oil and gas operations.
(7) (32) "Owner" means the person who THAT has the right to drill
into and produce from a pool and to appropriate the oil or gas he THE
PERSON
produces therefrom
FROM THE POOL either for himself THE PERSON
or others or for himself THE PERSON and others, including the owner of a
well capable of producing oil or gas, or both.
(7.1) (33) "Parks and wildlife commission" means the parks and
wildlife commission created in section 33-9-101. C.R.S.
(7.5) (34) "Permit" means any permit, sundry notice, notice of
intention, or other approval, including any conditions of approval, which
THAT is granted, issued, or approved by the commission.
(8) (35) "Person" means any natural person, corporation,
association, partnership, receiver, trustee, executor, administrator, guardian,
fiduciary, or other representative of any kind and includes any department,
agency, or instrumentality of the state or any governmental subdivision
thereof
OF THE DEPARTMENT, AGENCY, OR INSTRUMENTALITY OF THE STATE.
(9) (36) "Pool" means an underground reservoir containing a
common accumulation of oil or gas, or both. Each zone of a general
structure, which zone is completely separated from any other zone in the
structure, is covered by the word "pool" as used in this article
ARTICLE 60.
(37) "P
ORE SPACE" MEANS A CAVITY OR VOID, WHETHER NATURAL
OR ARTIFICIALLY CREATED
, IN A SUBSURFACE STRATUM.
PAGE 8-HOUSE BILL 24-1346 (10) (38) "Producer" means the owner of a well capable of
producing oil or gas, or both.
(39) "R
EASONABLY FORESEEABLE FUTURE DEVELOPMENT " MEANS
DEVELOPMENT THAT HAS NOT YET BEEN UNDERTAKEN FOR WHICH AN
APPLICABLE LOCAL
, STATE, OR FEDERAL AGENCY HAS RECEIVED AN
APPLICATION OR ISSUED A PERMIT
. FUTURE DEVELOPMENT IS REASONABLY
FORESEEABLE ONLY IF INFORMATION RELATED TO THE PERMIT IS PUBLICLY
AVAILABLE
.
(40) "S
EQUESTRATION ESTATE" MEANS A PORTION OF A GEOLOGIC
STORAGE RESOURCE
.
(10.5)
(41) "Surface owner" means any person owning all or part of
the surface of land upon which oil and gas ENERGY AND CARBON
MANAGEMENT
operations are conducted, as shown by the tax records of the
county in which the tract of land is situated, or any person with such rights
under a recorded contract to purchase.
(10.7)
(42) "Underground natural gas storage cavern" means a
facility that stored natural gas in an underground cavern or abandoned mine
on or before January 1, 2000. An underground natural gas storage cavern
includes all surface or subsurface rights and appurtenances associated with
the underground injection, storage, and withdrawal of natural gas, but does
not include any compressor stations or pipeline facilities subject to
regulation by the public utilities commission or the United States
department of transportation.
(11)
(43) "Waste", as applied to gas:
(a) Includes the escape, blowing, or releasing, directly or indirectly
into the open air, of gas from wells productive of gas only, or gas in an
excessive or unreasonable amount from wells producing oil or both oil and
gas; and the production of gas in quantities or in such manner as
unreasonably reduces reservoir pressure or, subject to subsection (11)(b)
(43)(b) of this section, unreasonably diminishes the quantity of oil or gas that ultimately may be produced; excepting gas that is reasonably necessary in the drilling, completing, testing, and in furnishing power for the production of wells; and
PAGE 9-HOUSE BILL 24-1346 (b) Does not include the nonproduction of gas from a formation if
necessary to protect public health, safety, and welfare; the environment; or
wildlife resources as determined by the commission.
(12)
(44) "Waste", as applied to oil:
(a) Includes underground waste; inefficient, excessive, or improper
use or dissipation of reservoir energy, including gas energy and water drive;
surface waste; open-pit storage; and waste incident to the production of oil
in excess of the producer's aboveground storage facilities and lease and
contractual requirements, but excluding storage, other than open-pit storage,
reasonably necessary for building up or maintaining crude stocks and
products of crude stocks for consumption, use, and sale; and
(b) Does not include the nonproduction of oil from a formation if
necessary to protect public health, safety, and welfare; the environment; or
wildlife resources as determined by the commission.
(13)
(45) "Waste", in addition to the meanings as set forth in
subsections (11) (43) and (12) (44) of this section:
(a) Means, subject to subsection (13)(b) (45)(b) of this section:
(I) Physical waste, as that term is generally understood in the oil and
gas industry;
(II) The locating, spacing, drilling, equipping, operating, or
producing of any oil or gas well or wells in a manner that causes or tends
to cause reduction in quantity of oil or gas ultimately recoverable from a
pool under prudent and proper operations or that causes or tends to cause
unnecessary or excessive surface loss or destruction of oil or gas; and
(III) Abuse of the correlative rights of any owner in a pool due to
nonuniform, disproportionate, unratable, or excessive withdrawals of oil or
gas from the pool, causing reasonably avoidable drainage between tracts of
land or resulting in one or more producers or owners in the pool producing
more than an equitable share of the oil or gas from the pool; and
(b) Does not include the nonproduction of oil or gas from a
formation if necessary to protect public health, safety, and welfare; the
PAGE 10-HOUSE BILL 24-1346 environment; or wildlife resources as determined by the commission.
(14) Repealed.
(15) (46) "Wildlife resources" means fish, wildlife, and their aquatic
and terrestrial habitats.
SECTION 3. In Colorado Revised Statutes, 34-60-105, amend
(1)(b) introductory portion, (1)(b)(V), and (4)(a) as follows:
34-60-105. Powers of commission. (1) (b) Any delegation of
authority to any other state officer, board, or commission to administer any
other laws of this state relating to the conservation of oil or gas, or either of
them, is hereby
rescinded and withdrawn, and that authority is unqualifiedly
conferred upon the commission, as provided in this section; except that, as
further specified in section 34-60-131, nothing in this article 60 alters,
impairs, or negates the authority of:
(V) A local government to regulate oil and gas
ENERGY AND
CARBON MANAGEMENT
operations pursuant to section 29-20-104.
(4) (a) Except as specified in subsection (4)(b) of this section,
nothing in this article 60 authorizes the state or its local governments,
including the commission, boards of county commissioners, and
municipalities, to regulate the activities of:
(I) Federally recognized Indian tribes, their political subdivisions,
or tribally controlled affiliates, undertaken or to be undertaken with respect
to mineral evaluation, exploration, or development
OR ENERGY AND CARBON
MANAGEMENT OPERATIONS
on lands within the exterior boundaries of an
Indian reservation located within the state; or
(II) Third parties, undertaken or to be undertaken with respect to
mineral evaluation, exploration, or development
OR ENERGY AND CARBON
MANAGEMENT OPERATIONS
on Indian trust lands within the exterior
boundaries of an Indian reservation located within the state.
SECTION 4. In Colorado Revised Statutes, 34-60-106, amend
(9)(c)(II), (9)(c)(III)(A), (9)(c)(III)(B), (9)(c)(IV)(A), (9)(c)(IV)(C),
(9)(c)(IV)(D), (9)(d) introductory portion, (9)(d)(I), (9)(d)(II), (9)(d)(III),
PAGE 11-HOUSE BILL 24-1346 and (11)(d)(I); repeal (9)(c)(III)(C), (9)(e)(III), (11)(d)(III), and
(11)(d)(IV); and add (9)(c)(IV)(D.5) and (9)(d.5) as follows:
34-60-106. Additional powers of commission - fees - rules -
definitions - repeal. (9) (c) (II) The commission may issue and enforce
permits as necessary for the purpose set forth in this subsection (9)(c) FOR
GEOLOGIC STORAGE OPERATIONS AND MAY REGULATE GEOLOGIC STORAGE
OPERATIONS
after the commission makes the determination and holds the
hearing set forth in subsection (9)(c)(I) of this section and the commission
and the governor satisfy the requirements set forth in subsection (9)(a) of
this section.
(III) (A) If the class VI injection well
A GEOLOGIC STORAGE
LOCATION
is proposed to be sited in an area that would affect a
disproportionately impacted community, the commission shall weigh the
geologic storage operator's submitted cumulative impacts analysis and
determine whether, on balance, the class VI injection well
GEOLOGIC
STORAGE OPERATIONS
will have a positive effect on the disproportionately
impacted community. A proposal that will have negative net cumulative
impacts on any disproportionately impacted community must be denied. The
commission's decision must include a plain language summary of its
determination.
(B) The commission may amend by rule the cumulative effects
IMPACTS analysis and requirements set forth in this subsection (9)(c)(III) if
the commission finds the analysis and requirements to be inconsistent with,
or incomplete with respect to, the federal environmental protection agency's
requirements for class VI primacy.
(C) As used in this subsection (9)(c)(III), "cumulative impacts"
means the effect on public health and the environment, including the effect
on air quality, water quality, the climate, noise, odor, wildlife, and
biological resources, caused by the incremental impact that a proposed new
or modified class VI injection well would have when added to the impacts
from other past, present, and reasonably foreseeable future development of
any type on the affected area, including an airshed or watershed, or on a
disproportionately impacted community.
(IV) (A) The commission shall require each operator of a class VI
injection well GEOLOGIC STORAGE OPERATOR to provide adequate financial
PAGE 12-HOUSE BILL 24-1346 assurance demonstrating that the GEOLOGIC STORAGE operator is financially
capable of fulfilling every obligation imposed on the operator under this
article 60 and under rules that the commission adopts pursuant to this article
60.
(C) The commission shall adopt rules requiring that the financial
assurance cover the cost of obligations that are in addition to the obligations
listed in subsection (9)(c)(IV)(B) of this section if the additional obligations
are reasonably associated with class VI injection wells and locations
GEOLOGIC STORAGE OPERATIONS .
(D) An operator A GEOLOGIC STORAGE OPERATOR shall maintain the
financial assurance required under this subsection (9)(c)(IV) or under any
rules adopted pursuant to this subsection (9)(c)(IV) until the commission
approves site closure, as specified in rules adopted by the commission.
Commission approval of a site closure does not otherwise modify an
operator's responsibility to comply with applicable laws.
(D.5) I
F A GEOLOGIC STORAGE OPERATOR MAKES A MATERIAL
MISREPRESENTATION OR OMISSION THAT CAUSES THE COMMISSION TO
APPROVE A SITE CLOSURE PURSUANT TO SUBSECTION
(9)(c)(IV)(D) OF THIS
SECTION
, THE COMMISSION MAY REIMPOSE ANY REGULATORY
RESPONSIBILITY OR FINANCIAL ASSURANCE OBLIGATION IMPOSED ON THE
GEOLOGIC STORAGE OPERATOR PURSUANT TO SUBSECTION
(9)(c)(IV)(A) OF
THIS SECTION
.
(d) In issuing and enforcing permits pursuant to subsection (9)(c) ofthis section FOR GEOLOGIC STORAGE OPERATIONS , the commission shall
ensure, after a public hearing, that:
(I) The permitting of a class VI injection well GEOLOGIC STORAGE
LOCATION
complies with a local government's siting of the proposed classVI injection well GEOLOGIC STORAGE location AND THAT THE COMMISSION
HAS CONSULTED WITH ANY LOCAL GOVERNMENT WHOSE BOUNDARIES
INCLUDE LANDS OVERLYING THE GEOLOGIC STORAGE FACILITY
;
(II) The proposed new or modified class VI injection well GEOLOGIC
STORAGE LOCATION
has received an
ANY applicable air permit PERMITS
from the division of administration in the department of public health and
environment;
PAGE 13-HOUSE BILL 24-1346 (III) The GEOLOGIC STORAGE operator of the class VI injection well
has received the consent of any surface owner or owners of the land where
the surface disturbance will occur and has provided the commission a
written contractual agreement that the surface owner or owners have
executed; and
(d.5) (I) F
OR THE PURPOSES OF IMPLEMENTING AND ADMINISTERING
THIS SUBSECTION
(9), THE COMMISSION MAY ASSESS AND COLLECT
REGULATORY AND PERMITTING FEES FROM GEOLOGIC STORAGE OPERATORS
IN AN AMOUNT AND FREQUENCY DETERMINED BY THE COMMISSION BY RULE
.
(II) T
HE COMMISSION SHALL TRANSFER ANY FEES ASSESSED AND
COLLECTED PURSUANT TO SUBSECTION
(9)(d.5)(I) OF THIS SECTION TO THE
STATE TREASURER
, WHO SHALL CREDIT THE FEES TO THE ENERGY AND
CARBON MANAGEMENT CASH FUND CREATED IN SECTION
34-60-122 (5).
(e) As used in this subsection (9), unless the context otherwise
requires:
(III) "Disproportionately impacted community" has the meaning set
forth in section 24-4-109 (2)(b)(II).
(11) (d) (I) By April 28, 2024 SEPTEMBER 30, 2024, the commission
shall promulgate rules that evaluate and address the cumulative impacts of
oil and gas operations. The rules shall include a definition of cumulative
impacts THE RULES SHALL REQUIRE EVALUATION OF ALL IMPACTS SET FORTH
IN THE DEFINITION OF CUMULATIVE IMPACTS DESCRIBED IN SECTION
34-60-103. THE RULES SHALL REQUIRE ADDRESSING THOSE IMPACTS
RESULTING FROM OPERATIONS REGULATED BY THE COMMISSION
. WELLS
DRILLED FOR THE EXCLUSIVE PURPOSE OF OBTAINING SUBSURFACE DATA OR
INFORMATION TO SUPPORT OPERATIONS REGULATED BY THE COMMISSION DO
NOT REQUIRE A CUMULATIVE IMPACTS ANALYSIS
.
(III) In promulgating the definition of cumulative impacts by rulepursuant to subsection (11)(d)(I) of this section, the commission shall
review, consider, and include addressable impacts to climate, public health,
the environment, air quality, water quality, noise, odor, wildlife, and
biological resources, and to disproportionately impacted communities, as
defined in section 24-4-109 (2)(b)(II).
PAGE 14-HOUSE BILL 24-1346 (IV) As used in this subsection (11)(d), "impacts to climate" means
quantification of emissions of greenhouse gases, as defined in section
25-7-140 (6), that occur from sources that are controlled or owned by the
operator and reasonably foreseeable truck traffic at an oil and gas location.
SECTION 5. In Colorado Revised Statutes, 34-60-108, add (10) as
follows:
34-60-108. Rules - hearings - process. (10) T
HE DIRECTOR OF THE
COMMISSION MAY HIRE AND DESIGNATE EMPLOYEES OF THE COMMISSION AS
ADMINISTRATIVE LAW JUDGES WHO HAVE THE AUTHORITY TO ADMINISTER
OATHS
, EXAMINE WITNESSES, RECEIVE EVIDENCE, AND CONDUCT HEARINGS,
INVESTIGATIONS, AND OTHER PROCEEDINGS ON BEHALF OF THE COMMISSION .
SECTION 6. In Colorado Revised Statutes, amend 34-60-115 as
follows:
34-60-115. Limitation on actions. (1) No
AN action or other
proceeding based upon a violation of this article ARTICLE 60 or any rule
regulation, or order of the commission shall NOT be commenced or
maintained unless it has been commenced within one year from THREE
YEARS AFTER
the date of the DISCOVERY OF THE alleged violation.
(2) T
HE THREE-YEAR PERIOD OF LIMITATION DESCRIBED IN
SUBSECTION
(1) OF THIS SECTION DOES NOT APPLY IF INFORMATION
REGARDING THE ALLEGED VIOLATION IS KNOWINGLY OR WILLFULLY
CONCEALED BY THE ALLEGED VIOLATOR
.
SECTION 7. In Colorado Revised Statutes, 34-60-121, amend
(1)(a), (1)(b), (1)(c)(I)(C), (1)(c)(I)(D), (1)(d), (1)(e), (4)(c), (5), (6), (7)(a)
introductory portion, and (7)(b) as follows:
34-60-121. Violations - investigations - penalties - rules -
definition - legislative declaration. (1) (a) Any
ENERGY AND CARBON
MANAGEMENT
operator that violates this article
ARTICLE 60, any rule or
order of the commission, or any permit is subject to a penalty of not more
than fifteen thousand dollars for each act of violation per day that such
THE
violation continues. A VIOLATION DESCRIBED IN THIS SUBSECTION (1)(a)
CONTINUES FOR EACH DAY THAT IT IS NOT CORRECTED BY THE ENERGY AND
CARBON MANAGEMENT OPERATOR
.
PAGE 15-HOUSE BILL 24-1346 (b) The commission may impose a penalty by order only after a
hearing in accordance with section 34-60-108 or by an administrative order
by consent entered into by the commission and the
ENERGY AND CARBON
MANAGEMENT
operator.
(c) The commission shall:
(I) Promulgate rules that establish a penalty schedule appropriate to
the nature of the violation and provide for the consideration of any
aggravating or mitigating circumstances. The rules must establish the basis
for determining the duration of a violation for purposes of imposing the
applicable penalty and include presumptions that:
(C) The failure to diligently implement corrective action pursuant
to a schedule embodied in an administrative order on consent, order finding
violation, or other order of the commission constitutes an independent
violation for which the
ENERGY AND CARBON MANAGEMENT operator may
be subject to additional penalties or corrective action orders imposed by the
commission; and
(D) The number of days of violation does not include any period
necessary to allow the
ENERGY AND CARBON MANAGEMENT operator to
engage in good faith negotiation with the commission regarding an alleged
violation if the
ENERGY AND CARBON MANAGEMENT operator demonstrates
a prompt, effective, and prudent response to the violation.
(d) An
ENERGY AND CARBON MANAGEMENT operator subject to a
penalty order shall pay the amount due within thirty days after its imposition
unless the
ENERGY AND CARBON MANAGEMENT operator files a judicial
appeal. The commission may recover penalties owed under this section in
a civil action brought by the attorney general at the request of the
commission in the second judicial district. Money collected through the
imposition of penalties shall
MUST be credited first to any legal costs and
attorney fees incurred by the attorney general in the recovery action and
then to the environmental response account in the energy and carbon
management cash fund created in section 34-60-122 (5).
(e) The general assembly hereby
declares that the purposes of this
subsection (1) are to deter noncompliance and to encourage any
out-of-compliance
ENERGY AND CARBON MANAGEMENT operators to come
PAGE 16-HOUSE BILL 24-1346 into compliance as soon as possible and to those ends intends that, in
determining the amount of a penalty, the commission should not reduce the
number of days of violation for which a penalty is assessed below that
number which the evidence supports.
(4) (c) Whenever the commission or the director has reasonable
cause to believe a violation of any provision of this article 60, any rule or
order of the commission, or any permit has occurred, including based on a
written complaint from any person, the commission or the director shall
provide written notice to the
ENERGY AND CARBON MANAGEMENT operator
whose act or omission allegedly resulted in the violation and require that the
ENERGY AND CARBON MANAGEMENT operator remedy the violation. The
notice must be served personally or by certified mail, return receipt
requested, to the
ENERGY AND CARBON MANAGEMENT operator or the
ENERGY AND CARBON MANAGEMENT operator's agent for service of process
and must state the provision alleged to have been violated, the facts alleged
to constitute the violation, and any corrective action and abatement
deadlines the commission or director elects to require of the
ENERGY AND
CARBON MANAGEMENT
operator.
(5) (a) If an
ENERGY AND CARBON MANAGEMENT operator fails to
take corrective action required pursuant to subsection (4) of this section, or
whenever the commission or the director has evidence that a violation of
any provision of this article
ARTICLE 60, or of any rule regulation, or order
of the commission, or of any permit has occurred, under circumstances
deemed to constitute an emergency situation, the commission or the director
may issue a cease-and-desist order to the
ENERGY AND CARBON
MANAGEMENT
operator whose act or omission allegedly resulted in such
THE violation. Such THE cease-and-desist order shall MUST require such
action by the ENERGY AND CARBON MANAGEMENT operator as the
commission or director deems appropriate. The order shall MUST be served
personally or by certified mail, return receipt requested, to the
ENERGY AND
CARBON MANAGEMENT
operator or the ENERGY AND CARBON MA NAGEMENT
operator's agent for service of process and shall
MUST state the provision
alleged to have been violated, the facts alleged to constitute the violation,
the time by which the acts or practices cited are required to cease, and any
corrective action the commission or the director elects to require of the
ENERGY AND CARBON MANAGEMENT operator.
(b) The commission or the director may require an
ENERGY AND
PAGE 17-HOUSE BILL 24-1346 CARBON MANAGEMENT operator to appear for a hearing before the
commission no sooner than fifteen days after the issuance of a
cease-and-desist order; except that the
ENERGY AND CARBON MANAGEMENT
operator may request an earlier hearing. At any hearing concerning a
cease-and-desist order, the commission shall permit all interested parties
and any complaining parties to present evidence and argument and to
conduct cross-examination required for a full disclosure of the facts.
(c) In the event
THAT an ENERGY AND CARBON MANAGEMENT
operator fails to comply with a cease-and-desist order, the commission may
request the attorney general to bring suit pursuant to section 34-60-109.
(6) If the commission determines, after a hearing conducted in
accordance with section 34-60-108, that an
ENERGY AND CARBON
MANAGEMENT
operator has failed to perform any corrective action imposed
under subsection (4) of this section or failed to comply with a
cease-and-desist order issued under subsection (5) of this section with
regard to a violation of a permit provision, the commission may issue an
order suspending, modifying, or revoking such
THE permit or may take
other appropriate action. An
ENERGY AND CARBON MANAGEMENT operator
subject to an order that suspends, modifies, or revokes a permit shall
continue the affected operations only for the purpose of bringing them
THE
AFFECTED OPERATIONS
into compliance with the permit or modified permit
and shall do so
MUST BRING THE AFFECTED OPERATIONS INTO COMPLIANCE
under the supervision of the commission. Once the affected operations are in compliance to the satisfaction of the commission and any penalty not subject to judicial review or appeal has been paid, the commission shall reinstate the permit.
(7) (a) The commission or the director shall issue an order to an
ENERGY AND CARBON MANAGEMENT operator to appear for a hearing before
the commission in accordance with section 34-60-108 whenever the
commission or the director has evidence that an
ENERGY AND CARBON
MANAGEMENT
operator is responsible for:
(b) If the commission finds, after such hearing, that the
ENERGY AND
CARBON MANAGEMENT
operator is responsible under the legal standards
specified in paragraph (a) of this subsection (7), it
SUBSECTION (7)(a) OF
THIS SECTION
, THE COMMISSION may issue an order that prohibits the
issuance of any new permits to the
ENERGY AND CARBON MANAGEMENT
PAGE 18-HOUSE BILL 24-1346 operator, suspends any or all of the ENERGY AND CARBON MANAGEMENT
operator's certificates of clearance, or both. When the ENERGY AND CARBON
MANAGEMENT
operator demonstrates to the satisfaction of the commission
that it has brought each of the violations into compliance and that any
penalty not subject to judicial review or appeal has been paid, the
commission may vacate the order.
SECTION 8. In Colorado Revised Statutes, 34-60-124, amend (3),
(4)(a)(II), (4)(e)(II), (4)(f), (6)(a), (6)(c), (7), and (8)(b); and add (4)(g) as
follows:
34-60-124. Energy and carbon management cash fund -
definitions - repeal. (3) The money in the fund is subject to annual
appropriation by the general assembly; except that money deposited in the
fund constituting forfeited security or other financial assurance provided by
ENERGY AND CARBON MANAGEMENT operators in accordance with section
34-60-106 (3.5), (9)(c)(IV)(A), and (13) is continuously appropriated to the
commission for the purpose of fulfilling obligations under this article 60
upon which an
ENERGY AND CARBON MANAGEMENT operator has defaulted.
(4) The fund may be expended:
(a) By the commission, or by the director at the commission's
direction, prior to, during, or after the conduct of any operations subject to
the authority of the commission to:
(II) Gather background or baseline data on any air, water, soil, or
biological resource that the commission determines may be so impacted by
the conduct of oil and gas ENERGY AND CARBON MANAGEMENT operations;
and
(e) (II) This subsection (4)(e) is repealed, effective July 1, 2025; and
(f) To create and maintain the website described in section
34-60-106 (22);
AND
(g) BY THE COMMISSION FOR THE PURPOSE OF INFORMATION
TECHNOLOGY INITIATIVES
.
(6) For the purposes provided for in subsection (4) of this section,
PAGE 19-HOUSE BILL 24-1346 the commission is authorized to:
(a) Enter onto any lands or waters, public or private; and, except in
emergency situations, the commission shall provide reasonable notice prior
to such entry in order to allow a surface owner, local government designee,
ENERGY AND CARBON MANAGEMENT operator, or responsible party to be
present and to obtain duplicate samples and copies of analytical reports;
(c) Confiscate and sell for salvage any equipment abandoned by a
responsible party at a location where the conduct of oil and gas
ENERGY
AND CARBON MANAGEMENT
operations has resulted in a significant adverse
environmental impact; except that this authority shall be
IS subject to and
secondary to any valid liens, security interests, or other legal interests in
such equipment asserted by any taxing authority or by any creditor of the
responsible party.
(7) If the commission determines that mitigation of a significant
adverse environmental impact on any air, water, soil, or biological resource
is necessary as a result of the conduct of oil and gas
ENERGY AND CARBON
MANAGEMENT
operations, the commission shall issue an order requiring the
responsible party to perform such
THE mitigation. If the responsible party
cannot be identified or refuses to comply with such THE order, the
commission shall authorize the necessary expenditures from the fund. The
commission shall bring suit in the second judicial district to recover such
THE expenditures from any responsible party who THAT refuses to perform
such THE mitigation or any responsible party who THAT is subsequently
identified, such THE action to be brought within a two-year period from
AFTER the date that final expenditures were authorized. Moneys MONEY
recovered as a result of such THE suit shall MUST first be applied to the
commission's legal costs and attorney fees and shall MUST then be credited
to the fund.
(8) As used in this section:
(b) (I) "Responsible party" means any person who conducts an oil
and gas ENERGY AND CARBON MANAGEMENT operation in a manner that
violates any then-applicable provision of this article 60, or of any rule or
order of the commission, or of any permit that threatens to cause, or actually
causes, a significant adverse environmental impact to any air, water, soil,
or biological resource. "Responsible party" includes any person who
PAGE 20-HOUSE BILL 24-1346 disposes of any other waste by mixing it with exploration and production
waste that threatens to cause, or actually causes, a significant adverse
environmental impact to any air, water, soil, or biological resource.
(II) Except as otherwise provided in subsection (8)(b)(I) of this
section, "responsible party" does not include any landowner, whether of the
surface estate, mineral estate, or both, who does not engage in, or assume
responsibility for, the conduct of oil and gas
ENERGY AND CARBON
MANAGEMENT
operations.
SECTION 9. In Colorado Revised Statutes, amend 34-60-131 as
follows:
34-60-131. No land use preemption. Local governments and state
agencies, including the commission and agencies listed in section 34-60-105
(1)(b), have regulatory authority over oil and gas development
ENERGY AND
CARBON MANAGEMENT OPERATIONS
, including as specified in section
34-60-105 (1)(b). A local government's regulations may be more protective
or stricter than state requirements.
SECTION 10. In Colorado Revised Statutes, 34-60-134, repeal
(1)(b) as follows:
34-60-134. Reporting of water used in oil and gas operations -
cumulative reporting - definitions - rules - repeal. (1) Definitions. As
used in this section and in section 34-60-135, unless the context otherwise
requires:
(b) "Disproportionately impacted community" has the meaning set
forth in section 24-4-109 (2)(b)(II).
SECTION 11. In Colorado Revised Statutes, add 34-60-140,
34-60-141, 34-60-142, and 34-60-143 as follows:
34-60-140. Ownership of geologic storage resources and
injection carbon dioxide - legislative declaration. (1) T
HE GENERAL
ASSEMBLY DECLARES THAT THIS SECTION IS INTENDED TO ALLOW FOR THE
PERMANENT USE OF GEOLOGIC STORAGE RESOURCES FOR GEOLOGIC
STORAGE OPERATIONS AND IS NOT INTENDED TO IMPACT THE USE OR
OWNERSHIP OF THE SUBSURFACE FOR CONJUNCTIVE USE OF SURFACE AND
PAGE 21-HOUSE BILL 24-1346 GROUNDWATER RESOURCES , ARTIFICIAL RECHARGE , STORAGE, AND
EXTRACTION INTENDED TO MAXIMIZE UTILIZATION OF WATER FOR
BENEFICIAL USE OR OTHER OPERATIONS
.
(2) (a) E
XCEPT AS SET FORTH IN SUBSECTION (5) OF THIS SECTION:
(I) I
F OWNERSHIP OF THE SEQUESTRATION ESTATE HAS NOT BEEN
SEPARATELY SEVERED
, CONVEYED, OR RESERVED PURSUANT TO SUBSECTION
(2)(b) OF THIS SECTION, IT IS PRESUMED THAT OWNERSHIP OF THE
SEQUESTRATION ESTATE IN THE STATE IS VESTED IN THE OWNER OF THE
OVERLYING SURFACE ESTATE
; AND
(II) OWNERSHIP OF INJECTION CARBON DIOXIDE AND THE FACILITIES
AND EQUIPMENT THAT STORE INJECTION CARBON DIOXIDE IN THE STATE IS
VESTED IN
:
(A) T
HE PERSON THAT INJECTS THE INJECTION CARBON DIOXIDE INTO
A GEOLOGIC STORAGE RESOURCE
; OR
(B) ANY PERSON CONVEYED TITLE TO THE INJECTION CARBON
DIOXIDE OR THE FACILITIES AND EQUIPMENT THAT STORE THE INJECTION
CARBON DIOXIDE BY THE PERSON DESCRIBED IN SUBSECTION
(2)(a)(II)(A) OF
THIS SECTION
.
(b) O
WNERSHIP OF A SEQUESTRATION ESTATE MAY BE :
(I) S
EVERED FROM THE OWNERSHIP OF THE OVERLYING SURFACE
ESTATE
; AND
(II) CONVEYED OR RESERVED IN THE SAME MANNER AS OWNERSHIP
OF A MINERAL ESTATE
.
(3) A
NY CONVEYANCE OF THE OWNERSHIP OF AN OVERLYING
SURFACE ESTATE ALSO CONVEYS ALL OF THE GRANTOR
'S OWNERSHIP OF ANY
SEQUESTRATION ESTATE UNLESS
:
(a) T
HE CONVEYANCE INSTRUMENT EXPRESSLY RESERVES THE
SEQUESTRATION ESTATE
, INCLUDING BY BROAD RESERVATION OF PORE
SPACE
; OR
PAGE 22-HOUSE BILL 24-1346 (b) THE SEQUESTRATION ESTATE HAS BEEN PREVIOUSLY SEVERED ,
BY RESERVATION OR CONVEYANCE , FROM THE OWNERSHIP OF THE
OVERLYING SURFACE ESTATE
.
(4) A
CONVEYANCE OF THE OWNERSHIP OF A MINERAL ESTATE OR
ANOTHER SUBSURFACE INTEREST DOES NOT CONVEY THE GRANTOR
'S
OWNERSHIP IN THE SEQUESTRATION ESTATE UNLESS THE CONVEYANCE
INSTRUMENT EXPRESSLY PROVIDES FOR CONVEYANCE OF THE GRANTOR
'S
OWNERSHIP OF THE SEQUESTRATION ESTATE
.
(5) N
OTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY ,
NOTHING IN THIS SECTION:
(a) A
FFECTS ANY OWNERSHIP OR RIGHTS TO PORE SPACE , A
SEQUESTRATION ESTATE
, OR INJECTION CARBON DIOXIDE OR TO FACILITIES
AND EQUIPMENT THAT STORE INJECTION CARBON DIOXIDE THAT ARE
ACQUIRED OR RESERVED BEFORE THE EFFECTIVE DATE OF
HOUSE BILL
24-1346, ENACTED IN 2024;
(b) C
HANGES OR ALTERS THE COMMON LAW AS OF THE EFFECTIVE
DATE OF
HOUSE BILL 24-1346, ENACTED IN 2024, AS IT RELATES TO THE
OWNERSHIP OF REAL PROPERTY
, INCLUDING SURFACE ESTATES, PORE SPACE,
OR A MINERAL ESTATE, OR TO THE RIGHTS OR DOMINANCE OF A MINERAL
ESTATE
;
(c) A
FFECTS THE ABILITY OF AN OWNER OF PORE SPACE TO :
(I) B
ROADLY CONVEY OR RESERVE ALL OF THE OWNER 'S RIGHT,
TITLE, AND INTEREST IN AND TO PORE SPACE , INCLUDING THE OWNER'S
INTEREST IN A SEQUESTRATION ESTATE
; OR
(II) CONVEY OR RESERVE ANY RIGHT, TITLE, OR INTEREST IN AND TO
ESTATES IN PORE SPACE OTHER THAN THE SEQUESTRATION ESTATE
; OR
(d) AFFECTS THE OWNERSHIP OR RIGHTS TO PORE SPACE OR A
SEQUESTRATION ESTATE WITHIN THE EXTERIOR BOUNDARIES OF AN
INDIAN
RESERVATION LOCATED WITHIN THE STATE
.
34-60-141. Geologic storage units - legislative declaration -
definitions. (1) T
HE GENERAL ASSEMBLY DECLARES THAT THE PURPOSE OF
PAGE 23-HOUSE BILL 24-1346 THIS SECTION IS THE PROTECTION OF CORRELATIVE RIGHTS, FACILITATION OF
COLORADO'S ENERGY RESOURCES , AND FACILITATION OF THE USE OF
GEOLOGIC STORAGE RESOURCES FOR GEOLOGIC STORAGE OPERATIONS
.
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "G
EOLOGIC STORAGE UNIT ORDER " MEANS AN ORDER THAT
PROVIDES FOR THE FORMATION OF A GEOLOGIC STORAGE UNIT AND THAT IS
ENTERED BY THE COMMISSION PURSUANT TO SUBSECTION
(4)(b) OF THIS
SECTION
.
(b) "P
LAN" MEANS A PLAN FOR GEOLOGIC STORAGE OPERATIONS OF
THE GEOLOGIC STORAGE UNIT APPROVED BY THE COMMISSION PURSUANT TO
SUBSECTION
(4)(c)(II) OF THIS SECTION.
(3) A
N AGREEMENT FOR GEOLOGIC STORAGE OR GEOLOGIC STORAGE
OPERATIONS
, OR FOR CARRYING ON ANY OTHER METHODS OF UNIT OR
COOPERATIVE DEVELOPMENT OR OPERATION OF A GEOLOGIC STORAGE
RESOURCE
, IS AUTHORIZED AND MAY BE PERFORMED , AND, IF THE
AGREEMENT IS APPROVED BY THE COMMISSION AS BEING IN THE PUBLIC
INTEREST OR IS REASONABLY NECESSARY FOR GEOLOGIC STORAGE
OPERATIONS
, DOES NOT VIOLATE ANY STATUTES RELATING TO TRUSTS ,
MONOPOLIES, OR CONTRACTS AND COMBINATIONS IN RESTRAINT OF TRADE .
(4) (a) U
PON THE APPLICATION OF ANY INTERESTED PERSON , THE
COMMISSION SHALL HOLD A HEARING TO CONSIDER THE NEED FOR A
GEOLOGIC STORAGE UNIT
.
(b) T
HE COMMISSION SHALL ENTER AN ORDER PROVIDING FOR THE
FORMATION OF A GEOLOGIC STORAGE UNIT IF THE COMMISSION FINDS THAT
THE GEOLOGIC STORAGE UNIT IS REASONABLY NECESSARY TO EFFECTUATE
A GEOLOGIC STORAGE PROJECT
. THE GEOLOGIC STORAGE UNIT AREA OF A
GEOLOGIC STORAGE UNIT MUST BE BASED ON SITE CHARACTERIZATION AND
MODELING CONDUCTED PURSUANT TO THE FEDERAL
"SAFE DRINKING
WATER ACT", 42 U.S.C. SEC. 300f ET SEQ., AS AMENDED, AND ANY RULES
ESTABLISHED BY THE COMMISSION PURSUANT TO THE FEDERAL ACT
.
(c) A
GEOLOGIC STORAGE UNIT ORDER MUST :
PAGE 24-HOUSE BILL 24-1346 (I) INCLUDE TERMS AND CONDITIONS THAT ARE JUST AND
REASONABLE
;
(II) E
STABLISH A PLAN FOR OPERATIONS OF THE GEOLOGIC STORAGE
UNIT
, WHICH PLAN MUST INCLUDE:
(A) A
DESCRIPTION OF THE GEOLOGIC STORAGE UNIT AREA ;
(B) A
DESCRIPTION OF THE OPERATIONS THAT WILL BE CONDUCTED
IN THE GEOLOGIC STORAGE UNIT AREA
;
(C) A
DETERMINATION OF THE PERCENTAGE OF EACH GEOLOGIC
STORAGE RESOURCE ALLOCATED TO EACH SEPARATELY OWNED TRACT
WITHIN THE GEOLOGIC STORAGE UNIT AREA
;
(D) A
DESCRIPTION OF THE METHOD BY WHICH EACH OWNER OF A
SEQUESTRATION ESTATE INCLUDED IN THE GEOLOGIC STORAGE UNIT AREA
WILL BE ALLOCATED COMPENSATION RELATED TO THE USE OF THE
SEQUESTRATION ESTATE
;
(E) A
DESCRIPTION OF THE MANNER IN WHICH THE GEOLOGIC
STORAGE UNIT AREA WILL BE SUPERVISED AND MANAGED AND
, IF
APPLICABLE
, HOW COSTS RELATED TO OPERATIONS OF THE GEOLOGIC
STORAGE UNIT WILL BE ALLOCATED AND PAID
;
(F) T
HE TIME WHEN OPERATIONS OF THE GEOLOGIC STORAGE UNIT
WILL COMMENCE AND THE M ANNER IN WHICH
, AND THE CIRCUMSTANCES
UNDER WHICH
, OPERATIONS OF THE GEOLOGIC STORAGE UNIT WILL
TERMINATE
; AND
(G) ANY ADDITIONAL PROVISIONS THAT ARE FOUND TO BE
APPROPRIATE FOR CONDUCTING OPERATIONS OF THE GEOLOGIC STORAGE
UNIT AND FOR THE PROTECTION OF CORRELATIVE RIGHTS
.
(d) A
GEOLOGIC STORAGE UNIT ORDER IS EFFECTIVE ONLY IF :
(I) T
HE PLAN HAS BEEN APPROVED IN WRITING BY THOSE PERSONS
THAT
, PURSUANT TO THE GEOLOGIC STORAGE UNIT ORDER , COLLECTIVELY
OWN AT LEAST SEVENTY
-FIVE PERCENT OF THE GEOLOGIC STORAGE
RESOURCES INCLUDED IN THE GEOLOGIC STORAGE UNIT AREA
; AND
PAGE 25-HOUSE BILL 24-1346 (II) THE COMMISSION MAKES A FINDING IN THE GEOLOGIC STORAGE
UNIT ORDER THAT THE PLAN HAS BEEN APPROVED IN ACCORDANCE WITH
SUBSECTION
(4)(d)(I) OF THIS SECTION.
(5) A
GEOLOGIC STORAGE UNIT ORDER MAY BE AMENDED BY AN
ORDER MADE BY THE COMMISSION IN THE SAME MANNER AND SUBJECT TO
THE SAME CONDITIONS AS THE ORIGINAL GEOLOGIC STORAGE UNIT ORDER
.
(6) A
NY OWNER OF A SEQUESTRATION ESTATE INCLUDED IN THE
GEOLOGIC STORAGE UNIT AREA THAT IS NOT INCLUDED IN THE GEOLOGIC
STORAGE UNIT ORDER MAY PETITION THE COMMISSION FOR INCLUSION IN THE
GEOLOGIC STORAGE UNIT ORDER
.
(7) N
OTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY :
(a) N
OTHING IN THIS SECTION CONFERS ON ANY PERSON THE RIGHT
OF EMINENT DOMAIN
; AND
(b) A GEOLOGIC STORAGE UNIT ORDER DOES NOT GRANT TO ANY
PERSON THE RIGHT OF EMINENT DOMAIN
.
(8) G
EOLOGIC STORAGE OPERATIONS CONDUCTED PURSUANT TO A
GEOLOGIC STORAGE UNIT ORDER
, INCLUDING THE COMMENCEMENT ,
DRILLING, OR OPERATION OF A CLASS VI INJECTION WELL ON ANY PORTION
OF THE GEOLOGIC STORAGE UNIT AREA
, CONSTITUTE, FOR ALL PURPOSES,
GEOLOGIC STORAGE OPERATIONS ON EACH SEPARATELY OWNED TRACT IN
THE GEOLOGIC STORAGE UNIT AREA BY THE OWNERS OF SEQUESTRATION
ESTATES INCLUDED IN THE GEOLOGIC STORAGE UNIT AREA
.
(9) A
GEOLOGIC STORAGE UNIT ORDER MUST NOT BE CONSTRUED TO
RESULT IN A TRANSFER OF ALL OR ANY PART OF THE TITLE OF ANY PERSON
TO THE SEQUESTRATION ESTATE OR ASSOCIATED RIGHTS IN ANY TRACT IN
THE GEOLOGIC STORAGE UNIT AREA
.
34-60-142. Technical assistance to local governments. T
O
PROVIDE A LOCAL GOVERNMENT WITH TECHNICAL ASSISTANCE REGARDING
THE LOCAL GOVERNMENT
'S DEVELOPMENT OF LAND USE AND SITING
REGULATIONS FOR GEOLOGIC STORAGE OPERATIONS
, THE LOCAL
GOVERNMENT THAT HAS LAND USE JURISDICTION MAY REQUEST THAT THE
DIRECTOR OF THE COMMISSION APPOINT A TECHNICAL REVIEW BOARD TO
PAGE 26-HOUSE BILL 24-1346 ASSIST THE LOCAL GOVERNMENT BY ANALYZING AND ANSWERING ANY
TECHNICAL QUESTIONS NECESSARY FOR THE LOCAL GOVERNMENT TO
DEVELOP THE LOCAL GOVERNMENT
'S ASSOCIATED LAND USE REGULATIONS .
34-60-143. Coordination between the department of public
health and environment and the commission on geologic storage
operations - definition. (1) A
S USED IN THIS SECTION, UNLESS THE
CONTEXT OTHERWISE REQUIRES
, "DEPARTMENT" MEANS THE DEPARTMENT
OF PUBLIC HEALTH AND ENVIRONMENT
.
(2) (a) T
HE DEPARTMENT SHALL DEVELOP CARBON DIOXIDE
ACCOUNTING PROCEDURES FOR GEOLOGIC STORAGE OPERATIONS
. THE
COMMISSION SHALL COMPILE RELEVANT DATA PURSUANT TO THE
COMMISSION
'S REGULATORY AUTHORITY TO SUPPORT THE CARBON DIOXIDE
ACCOUNTING PROCEDURES DEVELOPED BY THE DEPARTMENT
.
(b) T
HE COMMISSION AND THE DEPARTMENT SHALL WORK
COLLABORATIVELY TO IMPLEMENT SUBSECTION
(2)(a) OF THIS SECTION AND
TO SHARE DATA TO FACILITATE THE MONITORING
, VERIFICATION, AND
ACCOUNTING OF CARBON DIOXIDE IN GEOLOGIC STORAGE OPERATIONS
.
(3) T
HE COMMISSION AND THE DEPARTMENT SHALL WORK
COLLABORATIVELY TO FACILITATE APPLICATION OF THE DEPARTMENT
'S
REGULATORY AUTHORITY TO ADDRESS AIR EMISSIONS FROM GEOLOGIC
STORAGE OPERATIONS
. THE COMMISSION SHALL REQUIRE OPERATORS OF
GEOLOGIC STORAGE FACILITIES TO OBTAIN ANY RELEVANT PERMITS FROM
THE DEPARTMENT
.
SECTION 12. In Colorado Revised Statutes, 24-30-1003, amend
(1) as follows:
24-30-1003. Administrative law judges - appointment -
qualifications - standards of conduct. (1) The executive director of the
department of personnel may appoint such
administrative law judges,
except those employed pursuant to sections 24-50-103 (7), 34-60-108, and
40-2-104, C.R.S., as may be necessary to provide services to each state
agency; except
THAT the state personnel board, THE ENERGY AND CARBON
MANAGEMENT COMMISSION
, and the public utilities commission entitled to
MAY use administrative law judges. Administrative law judges shall MUST
be appointed in accordance with the provisions of section 13 of article XII
PAGE 27-HOUSE BILL 24-1346 of the state constitution and the laws and rules governing the state personnel
system.
SECTION 13. In Colorado Revised Statutes, 2-3-128, amend
(1)(d) as follows:
2-3-128. Oil and gas - performance audit - report - definitions
- repeal. (1) As used in this section, unless the context otherwise requires:
(d) "Operator" has the meaning set forth in section 34-60-103. (6.8).
SECTION 14. In Colorado Revised Statutes, 25-7-132, amend
(2)(a)(I) as follows:
25-7-132. Emission data - public availability - submission of
2023 reports to state auditor - definitions - repeal. (2) (a) As used in this
subsection (2), unless the context otherwise requires:
(I) "Operator" has the meaning set forth in section 34-60-103. (6.8).
SECTION 15. In Colorado Revised Statutes, 25-15-101, amend
(6)(b)(IX) and (6)(b)(X) as follows:
25-15-101. Definitions. As used in this article 15, unless the context
otherwise requires:
(6) (b) "Hazardous waste" does not include:
(IX) Waste from oil and gas operations, as defined in section
34-60-103, (6.5),
or from deep geothermal operations, as defined in section
37-90.5-103 (3), including, but not limited to, drilling fluids, produced
water, and other wastes associated with the exploration, development, or
production of crude oil, natural gas, or geothermal resources, that is
disposed of in accordance with the requirements of the energy and carbon
management commission pursuant to article 90.5 of title 37 and article 60
of title 34, as applicable; and
(X) Exploration and production waste, as defined in section
34-60-103. (4.5).
PAGE 28-HOUSE BILL 24-1346 SECTION 16. In Colorado Revised Statutes, 25-15-603, amend
(15) as follows:
25-15-603. Definitions - repeal. As used in this part 6, unless the
context otherwise requires:
(15) "Oil and gas operations" has the meaning set forth in section
34-60-103. (6.5).
SECTION 17. In Colorado Revised Statutes, 29-20-104, amend
(1)(h) introductory portion, (1)(h)(II), and (3)(a)(I) as follows:
29-20-104. Powers of local governments - definition. (1) Except
as expressly provided in section 29-20-104.2 or 29-20-104.5, the power and
authority granted by this section does not limit any power or authority
presently exercised or previously granted. Except as provided in section
29-20-104.2, each local government within its respective jurisdiction has
the authority to plan for and regulate the use of land by:
(h) Regulating the surface impacts of oil and gas operations, as
defined in section 34-60-103 (6.5), deep geothermal operations, as defined
in section 37-90.5-103 (3), class VI injection wells, and intrastate
underground natural gas storage facilities, as defined in section 34-64-102
(3.5) ENERGY AND CARBON MANAGEMENT OPERATIONS , AS DEFINED IN
SECTION
34-60-103, in a reasonable manner to address matters specified in
this subsection (1)(h) and to protect and minimize adverse impacts to public
health, safety, and welfare and the environment. Nothing in this subsection
(1)(h) is intended to alter, expand, or diminish the authority of local
governments to regulate air quality under section 25-7-128. As used in this
subsection (1)(h), "minimize adverse impacts" means, to the extent
necessary and reasonable, to protect public health, safety, and welfare and
the environment by avoiding adverse impacts from oil and gas operations,
as defined in section 34-60-103 (6.5), deep geothermal operations, as
defined in section 37-90.5-103 (3), class VI injection wells, and intrastate
underground natural gas storage facilities, as defined in section 34-64-102
(3.5) ENERGY AND CARBON MANAGEMENT OPERATIONS , AS DEFINED IN
SECTION
34-60-103, and minimizing and mitigating the extent and severity
of those impacts that cannot be avoided. The following matters are covered
by this subsection (1)(h):
PAGE 29-HOUSE BILL 24-1346 (II) The location and siting of oil and gas facilities and oil and gas
locations, as those terms are defined in section 34-60-103 (6.2) and (6.4);
deep geothermal operations, as defined in section 37-90.5-103 (3); class VI
injection wells; and intrastate underground natural gas storage facilities, as
defined in section 34-64-102 (3.5) ENERGY AND CARBON MANAGEMENT
OPERATIONS
, AS DEFINED IN SECTION 34-60-103;
(3) (a) To provide a local government with technical expertise
regarding whether a preliminary or final determination of the location of an
oil and gas facility or oil and gas location within its respective jurisdiction
could affect oil and gas resource recovery:
(I) Once an operator, as defined in section 34-60-103, (6.8),
files an
application for the location and siting of an oil and gas facility or oil and gas
location and the local government has made either a preliminary or final
determination regarding the application, the local government having
THAT
HAS
land use jurisdiction may ask the director of the energy and carbon
management commission pursuant to section 34-60-104.5 (3) to appoint a
technical review board to conduct a technical review of the preliminary or
final determination and issue a report that contains the board's conclusions.
SECTION 18. In Colorado Revised Statutes, 30-20-101, amend
(6)(b)(VI) as follows:
30-20-101. Definitions. As used in this part 1, unless the context
otherwise requires:
(6) (b) "Solid waste" does not include:
(VI) Exploration and production wastes, as defined in section
34-60-103, (4.5), C.R.S.,
except as such THE EXPLORATION AND
PRODUCTION
wastes may be deposited at a commercial solid waste facility;
SECTION 19. In Colorado Revised Statutes, 39-29-112, amend
(8)(a)(I) as follows:
39-29-112. Procedures and reports - definitions - repeal.
(8) (a) As used in this subsection (8), unless the context otherwise requires:
(I) "Operator" has the meaning set forth in section 34-60-103. (6.8).
PAGE 30-HOUSE BILL 24-1346 SECTION 20. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 31-HOUSE BILL 24-1346