House Committee on Agriculture, Livestock, & Natural Resources (03/02/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Date:	03/02/2010	ATTENDANCE

Time:	11:10 AM to 12:33 PM	Baumgardner	X
		Curry	X
Place:	HCR 0107	Gardner C.	X
		Hullinghorst	X
This Meeting was called to order by		Looper	X
	Representative Fischer	McKinley	X
		Ryden	*
This Report was prepared by		Solano	X
	Lauren Ris	Sonnenberg	X
		Tipton	X
		Vigil	X
		Pace	*
		Fischer	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB10-165		Amended, Referred to the Committee of the Whole

11:11 AM -- Senate Bill 10-165

Representative Hullinghorst, sponsor, presented SB 10-165, concerning adjusting oil and gas regulation. Under current law, the removal of nontributary groundwater for mining operations only requires a permit if the water is used for a beneficial purpose. Representative Hullinghorst explained that in Vance v. Simpson, the Colorado Supreme Court found that mining of coal bed methane (CBM) is considered a beneficial use of groundwater. As a result of this case and the passage of HB09-1303, the Division of Water Resources (DWR) in the Department of Natural Resources is required to permit water wells used in CBM production. This bill addresses well permitting for the withdrawal of nontributary groundwater in non-CBM oil and gas operations. It stipulates that if the water is used in the course of oil and gas operations, no permit is required. Water used for beneficial purposes outside of oil and gas operations will still require a permit. The bill extends the deadlines for well permits and substitute water supply plans from March 1, 2010, to August 1, 2010. The bill is effective upon the signature of the Governor, or upon becoming law without his signature. Representative Hullinghorst discussed amendment L.003 (Attachment A).

The following individuals testified:

11:17 AM -- Jim Martin, Director of the Department of Natural Resources, spoke in support of the bill. Mr. Martin discussed the need to move the deadline for processing well permits. He explained section 1 of the bill. He explained that nothing in the bill will affect Water Quality Control Commission regulations and so does not affect the quality of discharged water. He answered questions from the committee concerning amendment L.003 and when well permits are required for discharges into state waters.

11:29 AM -- Kevin Rein, Assistant State Engineer with the Division of Water Resources, spoke in support of the bill. He discussed the permit extensions and rulemaking authority granted to the State Engineer under HB09-1303. He discussed the State Engineer's rule making process. He explained that the SEO has received 12,000 permits that need processing.

11:36 AM -- Alan Curtis, Senior Water Users, spoke in support of some provisions of the bill and in opposition to others. He described his concern relating to permitting water use without limitation. He also discussed his the trucking provisions in amendment L.003. Mr. Curtis answered questions from the committee concerning his position on the amendment.

11:45 AM -- Sara Duncan, Denver Water and the Colorado Water Congress, explained the organization's support for sections 2 and 3 of the bill. She discussed the history of the prior appropriations system and how it has applied to nontributary ground water and minerals mining. She discussed the organization's opposition of the last sentence of Amendment L.003. If that is adopted she expressed support for striking the language in page 3 of the reengrossed bill regarding ajudicated water rights. She asnwered questions from the committee.

11:56 AM -- Tisha Schuller, Colorado Oil and Gas Association, spoke in support of the bill and explained how the bill benefits the industry. She also indicated her support for Amendment L.003.

11:59 AM -- Garin Vorthman, Colorado Farm Bureau, spoke in support of the bill and Amendment L.003.

12:01 PM -- Chris Treese, Colorado River Water Conservation District, spoke in support of the bill and Amendment L.003.. He discussed the last sentence of the Amendment L.003.

12:09 PM -- Jep Seman, Colorado Petroleum Association, spoke in support for the bill. He discussed the industry's need for regulatory certainty. He discussed the bill's neutrality on water rights.

12:12 PM -- Steve Bushong, Produced Water Development , Wellington Water Works, spoke in support of the bill with Amendment L.003. He discussed his concerns with the first five lines of Amendment L.003 regarding selling or trading groundwater for profit.

12:19 PM -- Jim Martin, Director of the Department of Natural Resources, came back to the table to discuss the first 5 lines of Amendment L.003.


BILL:	SB10-165
TIME:	12:24:34 PM
MOVED:	Hullinghorst
MOTION:	Moved amendment L.003 (Attachment A). The motion passed without objection.
SECONDED:	Solano
		VOTE
	Baumgardner
	Curry
	Gardner C.
	Hullinghorst
	Looper
	McKinley
	Ryden
	Solano
	Sonnenberg
	Tipton
	Vigil
	Pace
	Fischer
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB10-165
TIME:	12:24:58 PM
MOVED:	Sonnenberg
MOTION:	Moved an amendment to amendment L.003 to strike lines 13-16 of the amendment. The motion was withdrawn.
SECONDED:	Looper
		VOTE
	Baumgardner
	Curry
	Gardner C.
	Hullinghorst
	Looper
	McKinley
	Ryden
	Solano
	Sonnenberg
	Tipton
	Vigil
	Pace
	Fischer
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn

12:31 PM

Representative Hullinghorst provided closing comments on her bill.


BILL:	SB10-165
TIME:	12:32:25 PM
MOVED:	Hullinghorst
MOTION:	Moved to refer Senate Bill 09-065, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Solano
		VOTE
	Baumgardner	Yes
	Curry	Yes
	Gardner C.	Yes
	Hullinghorst	Yes
	Looper	Yes
	McKinley	Yes
	Ryden	Yes
	Solano	Yes
	Sonnenberg	Yes
	Tipton	Yes
	Vigil	Yes
	Pace	Yes
	Fischer	Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:33 PM

The committee adjourned.