Date: 03/27/2013

Final
BILL SUMMARY for HB13-1268

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Votes: View--> Action Taken:
Refer House Bill 13-1268 to the Committee of the WPASS



11:34 AM -- House Bill 13-1268

Representative Moreno, sponsor, presented House Bill 13-1268. Beginning January 1, 2014, the bill requires real estate listing contracts, contracts of sale, and sellers' property disclosures for residential properties to disclose the following: the surface estate of the property may be owned separately from the underlying mineral estate, so the transfer of the surface estate may not include transfer of the mineral estate; third parties may own or lease the underlying mineral estate and enter and use the surface estate to access the mineral rights; if the use of the surface estate is governed by a surface use agreement, such notice may be recorded with the county clerk and recorder; the oil and gas activity that may occur on or near the property may include surveying, drilling, well completion operations, storage facilities, producing wells, and gas gathering and processing facilities; and additional information may be available from the Colorado Oil and Gas Conservation Commission (COGCC). The Real Estate Commission, in the Department of Regulatory Agencies (DORA), is required to promulgate a rule that sets forth the form and content of the disclosure. Listing contracts, contracts for sale, and seller's property disclosures for residential property prepared by persons who are not subject to the commission's jurisdiction must contain a disclosure statement in substantially the same form as that specified by the commission. If the seller or real estate professional complies with these requirements, the purchaser has no claim for relief against the seller or real estate professional for any property damage resulting from oil, gas, or mineral extraction. Committee discussion on the bill ensued.

11:42 AM -- David Tschetter, Colorado Association of Home Builders, spoke in support of the bill. Mr. Tschetter discussed how the association appreciates disclosures in the home building industry because they may protect the builders from lawsuits or litigation. Mr. Tschetter talked about the association's involvement with the COGCC's stakeholder meetings regarding recently passed rules and described the typical process that potential home buyers will go through to determine if their potential property may be involved with oil or gas exploration activities. Mr. Tschetter explained that the association feels that disclosures to home buyers are especially important after the initial transfer of property, and discussed the challenges of relying on title paperwork outcome of title paperwork to reveal oil or gas exploration possibilities. Mr. Tschetter answered questions from the committee regarding how researching a property's mineral rights is funded.

11:52 AM -- Stan Dempsey, Colorado Petroleum Association, spoke in support of the bill. Mr. Dempsey talked about how this bill will increase communication between property owners and mineral rights holders.

11:53 AM -- Ginny Brannan, Department of Natural Resources, spoke in support of the bill. Ms. Brannan discussed the setback rules, mitigation requirements, and notice requirements that were recently adopted by the COGCC. Ms. Brannan said that the department appreciates that the bill increases communication between mineral rights holders and property owners.

11:55 AM -- Stuart Ellsworth, COGCC, offered to answer questions for the committee. There were none.

11:56 AM -- Nicholas Colglazier, Colorado Farm Bureau, spoke in support of the bill. Mr. Colglazier talked about how this bill will increase the sharing of information and that this will benefit citizens.

11:57 AM -- Jim Cole, Colorado Oil and Gas Association, spoke in support of the bill. Mr. Cole stated the importance of notice requirements during property transfers.

11:58 AM

Committee discussion regarding the language of the bill ensued.


12:00 PM

Representative Moreno wrapped up his presentation of the bill.

BILL:HB13-1268
TIME: 12:00:39 PM
MOVED:Garcia
MOTION:Refer House Bill 13-1268 to the Committee of the Whole. The motion passed on a vote of 11-0 with two excused.
SECONDED:Saine
VOTE
Buck
Yes
Coram
Yes
Garcia
Yes
Lebsock
Yes
McLachlan
Excused
McNulty
Excused
Mitsch Bush
Yes
Rankin
Yes
Rosenthal
Yes
Saine
Yes
Sonnenberg
Yes
Vigil
Yes
Fischer
Yes
Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS




12:02 PM

The committee adjourned.