Date: 04/06/2010

Final
BILL SUMMARY for SB10-174

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View--> Action Taken:
Moved to refer Senate Bill 10-174 to the CommitteePASS



02:15 PM -- Senate Bill 10-174

Representatives Massey and Scanlan, co-prime sponsors, presented Senate Bill 10-174, concerning the regulation of geothermal resource development. They explained that the bill authorizes federal mineral lease revenues derived from geothermal resource development on federal lands to be used to provide grants to state agencies, school districts, and political subdivisions affected by geothermal development and production. Representative Scanlan discussed the importance of geothermal energy in the state, and Representative Massey explained that the bill specifies that the property rights to geothermal resources are part of surface ownership unless these rights are "severed" or separated from the land and sold or leased. In cases where geothermal resources are severed, the bill provides the geothermal resource owner the right to reasonably access these resources. Representatives Massey and Scanlan addressed questions from the committee concerning the need to develop geothermal energy facilities in the state.


02:20 PM

Susan Kirkpatrick, Director, Department of Local Affairs (DOLA), testified in support of the bill and described how the department implements grants and explained that the department would allocate federal mineral lease revenues that are generated from geothermal resources to local governments. She discussed the different policy of providing direct distribution of federal mineral lease revenue verses distributing grants for areas affected by geothermal development and production.


02:24 PM

Pat Ratliff, Colorado Counties Inc., addressed the committee to explain that Colorado counties would prefer direct distributions of federal mineral lease funds for geothermal energy rather than grant distributions allocated by the department.


02:26 PM

Dianna Orf, Colorado Water Congress, testified in support of the bill and discussed the importance of establishing the statutory frame work to utilize geothermal resources in the state.


02:27 PM

Kevin Rein, Assistant State Engineer, Division of Water Resources, Department of Natural Resources, testified in support of the bill and discussed provisions changed by the bill concerning material injury to vested water rights due to the development of a geothermal water right. Mr. Rein discussed damage to water rights under current statutory language and addressed questions from the committee members concerning waters rights and geothermal facilities. Committee discussion ensued.


02:42 PM

Bob Randall, Colorado Department of Natural Resources, spoke in support of the bill and described the regulation of geothermal resource development throughout the state. Mr. Randall addressed questions from the committee and explained that the bill authorizes federal mineral lease revenues derived from geothermal resource development on federal lands to be awarded by the DOLA primarily for planning and services linked to geothermal development and production, and secondarily to promote geothermal energy resource development.


02:51 PM

Representatives Massey and Scanlan addressed questions from the committee and entered closing comments on the bill.

BILL:SB10-174
TIME: 02:55:33 PM
MOVED:Massey
MOTION:Moved to refer Senate Bill 10-174 to the Committee of the Whole. The motion passed on a 11-0 roll call vote.
SECONDED:Schafer S.
VOTE
Acree
Yes
Apuan
Yes
Bradford
Yes
Liston
Yes
Massey
Yes
McKinley
Yes
Priola
Yes
Schafer S.
Yes
Vigil
Yes
Soper
Yes
Peniston
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



02:59 PM

The committee adjourned.