Bill Summary for Bill Number SB10-165

Date: 02/17/2010

Final
BILL SUMMARY for SB10-165

SENATE COMMITTEE ON AGRICULTURE AND NATURAL RESOURCES

Votes: View-->	Action Taken:
Moved Amendment L. 002 (Attachment A). The motio Moved to refer Senate Bill 10-165 to the Committee	Pass Without Objection PASS

10:09 AM -- Senate Bill 10-165

Senator Hodge, Prime Sponsor, described the provisions of Senate Bill 10-165 concerning oil and gas well regulations and Amendment L.002 (Attachment A). She explained that House Bill 09-1303 imposed new requirements on oil and gas wells, including permitting by the state engineer and substitute water supply plans. Senate Bill 10-165 specifies that, except for coal bed methane wells, no well permit is required if the nontributary ground water being removed will not be beneficially used or beneficially used only for uses allowed under the "Oil and Gas Conservation Act". The bill also extends the well permitting and substitute water supply plan compliance deadlines for oil and gas wells, including coal bed methane wells, from March 31, 2010, to August 1, 2010.

The following persons testified on the bill:

10:12 AM -- Jim Martin, Executive Director, Colorado Department of Natural Resources, spoke in support of the bill and described recent litigation and legislation concerning the regulation of groundwater pumping by oil and gas wells, called produced water. He also described the rule making process to implement House Bill 09-1303 and the need to extend the statutory deadline to complete this process.

10:13 AM -- Dick Wolfe, State Engineer, Division of Water Resources, explained that the Colorado Supreme Court addressed the potential impact of produced water on vested water rights in Vance v. Wolfe (2009 205, P.3d 1165) and the General Assembly enacted House Bill 09-1303 to regulate produced water. He also described the rule making process to implement House Bill 09-1303 and the need to extend the statutory deadline to complete this process.

10:22 AM -- Mr. Martin described produced water disposal methods that mitigate environmental impacts and the need to amend state law to allow these methods. He also responded to questions from the committee about the bill and Amendment L. 002 and described the regulation of the discharge of produced water into waters of the state under the Water Quality Control Act.

10:32 AM -- Allen Curtis, White and Jankowski LLP, explained that Colorado Water Congress has not taken a position on the bill. He also commented on provisions of the bill and expressed concern about exempting certain oil and gas wells from the doctrine of prior appropriation and oversight by the State Engineer. The bill would place the oversight of these wells under the Colorado Oil and Gas Conservation Commission instead of the Division of Water Resources that administers water rights in Colorado.

10:35 AM -- Tisha Schuller, Colorado Oil and Gas Association, spoke in support of the bill and described the oil and gas industry's efforts to reduce the environmental impact of produced water.

10:38 AM -- Mr. Martin responded to questions about the Division of Water Resources maps that identify nontributary ground waters in oil and gas producing areas.

10:39 AM -- Chris Treese, Colorado River Water Conservation District, spoke in support of extending the deadlines for the rule making process. He also proposed amendments to the printed bill that specify when water court approval would be required for certain uses of produced water.

10:44 AM -- Mr. Martin responded to questions from the committee about the regulation of produced water that is discharged into waters of the state.

10:47 AM -- Jep Seman, Colorado Petroleum Association, spoke in support of the bill and Amendment L.002.

10:49 AM -- Mr. Curtis returned to comment on Amendment L. 002. He expressed concern about Page 2, line 16 and 17 of the amendment that says "THE ISSUANCE OF A PERMIT UNDER THIS SUBSECTION (7) DOES NOT CONFER AN ADJUDICATED NONTRIBUTARY GROUNDWATER RIGHT."

10:51 AM -- Mr. Wolfe responded to Mr. Curtis' concern and explained that a Division of Water Resources permit for a nontributary groundwater well does not grant a water right.

10:52 AM

Senator Hodge closed her remarks on the bill.


BILL:	SB10-165
TIME:	10:52:18 AM
MOVED:	Hodge
MOTION:	Moved Amendment L. 002 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Gibbs	Excused
	Harvey
	Kester
	Schwartz
	Whitehead
	Hodge

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB10-165
TIME:	10:52:46 AM
MOVED:	Hodge
MOTION:	Moved to refer Senate Bill 10-165 to the Committee of the Whole, as amended. The motion passed on roll call vote of 6 to 0.
SECONDED:
		VOTE
	Brophy	Yes
	Gibbs	Excused
	Harvey	Yes
	Kester	Yes
	Schwartz	Yes
	Whitehead	Yes
	Hodge	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:54 AM

The meeting adjourned.