Date: 12/11/2014

Final
Department of Natural Resources SMART Act Hearing

COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES

Votes: View--> Action Taken:
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10:04 AM -- DNR SMART Act Hearing

Bob Randall, Deputy Executive Director, Colorado Department of Natural Resources (DNR), described the importance of Colorado's natural resources to the state's economy and discussed the format of the department's SMART Act hearing. He discussed the role of the Division of Water Resources in DNR in the regulation of the water allocation and the role of the Colorado Water Conservation Board (CWCB) in planning and development of Colorado's water resources. He explained that the CWCB submitted the draft Colorado Water Plan to Governor Hickenlooper and that the CWCB is also responsible for submitting legislation annual to fund water projects. He discussed efforts by the department to address impacts from recent wildland fires and floods and related funding challenges. He discussed funding challenges related to the management of Colorado wildlife and recreational resources and described proposed legislation to address these challenges.

10:18 AM

Mr. Randall explained that Governor Hickenlooper issued an executive order creating the Task Force on State and Local Regulation of Oil and Gas Operations. In part, the task force will examine setbacks (the distance between oil and gas well and human occupied structures), the role of local governments in the regulation of oil and gas operations, adjustments to regulations that may be required in more populated regions of the state, and other issues related to the appropriate regulation of oil and gas activity in the State. By February 27, 2015, the Task Force will present its findings to the Governor.

10:21 AM

Mr. Randall responded to questions from the committee about possible legislation and the status of the Colorado Geological Survey that was transferred to the Colorado School of Mines.

10:23 AM

 Bill Levine, DNR Budget Director, responded to questions from the committee about oversight of the Colorado Geological Survey by the Colorado School of Mines. He provided an update on the implementation of the"Lean Process" by DNR. "Lean" is a process management approach where the delivery of products and services are matched to the needs of the customers utilizing a process that requires a minimum use of time and resources. The State of Colorado's statewide Lean program began in 2011. He explained that every division in DNR has conducted at least one Lean evaluation project. He summarized DNR's Regulatory Agenda (Attachment A) that identifies new rules or revisions to the existing rules that the department expects to propose in the next calendar year. He identified the major elements of DNR's Performance Plan for Fiscal Year (FY) 2015-16 (Attachment B). He also discussed decision items in the FY 2015-16 budget request (Attachment C) that include $403,450 cash fund request and 2.0 FTE for Oil and Gas Conservation Commission staff increase to address permit backlog and hearing requests; a request for $213,140 and 2.5 FTE for the Division of Water Resources to accommodate increased groundwater administration in the Arkansas River Basin and other activities; and a request for $189,926 to support two avalanche forecasters. He also discussed the Avalanche Information Center's budget and recent legislation that moved the administration of the center to DNR's Executive Director's Office.

141211 AttachA.pdf141211 AttachA.pdf141211 AttachB.pdf141211 AttachB.pdf141211 AttachC.pdf141211 AttachC.pdf

10:54 AM - Division of Parks and Wildlife

Robert Broscheid, Director, Division Parks and Wildlife, discussed the division's regulatory agenda and strategic goals. He explained that the division does not receive General Funds and pays for its activities primarily from license and other fee revenue. He also discussed declines in the number of hunters and programs to recruit new hunters. He also discussed benchmarks for license and entrance fees and compared these figures to actual sales. Mr. Broscheid responded to questions from the committee about measure to recruit new hunters and anglers and activities to encourage private industry to support such efforts.

11:26 AM

Mr. Broscheid discussed the possible closure of federal fish hatcheries in Colorado and described programs to control aquatic nuisance species in Colorado. He also discussed fishing license sales and the activities of the Wildlife and Habitat Conservation Program. He explained the Wildlife Habitat Stamp program is set to expire this year and legislation will be introduced to continue the program. He also discussed programs to recover threatened and endangered species and programs to keep species off the federal endangered species list.


11:49 AM - Colorado Oil and Gas Conservation Commission

Matt Lapore, Director, Colorado Oil and Gas Conservation Commission (COGCC), discussed oil and gas permits issued by the division and explained that there are currently over 52,000 active wells in Colorado. He also discussed changes in oil and gas development technologies and processes including horizontal well development hydraulic fracturing, commonly known as "fracking." He discussed factors affecting the number of plugged and abandoned wells in the state He also responded to a question from the committee about the requirement for reporting spills and releases of oil and gas and identified changes in the number of spills reported over recent years. He identified the number of oil and gas wells inspected annually and explained how additional staff have affected inspection rates. He also discussed risk based inspections and how often wells are inspected.

12:09 PM

The committee recessed.

01:11 PM

The committee returned from recess. Mr. Randall introduced the new DNR Legislative Liaison, Gaspar Perricone.

01:13 PM

Director Lapore discussed the COGCC regulatory agenda. In the upcoming year, he explained that the COGCC will consider rules related oil and gas operations in flood plains, recommendations proposed by the Governor's Task ForceTask Force on State and Local Regulation of Oil and Gas Operations, and other issues. He also responded to questions from the committee about the COGCC's oversight of air emissions related to oil and gas development and other issues. He also discussed enforcement of COGCC rules including the number of enforcement orders issued, penalties, and other COGCC enforcement actions.

01:26 PM -- Colorado Water Conservation Board

James Eklund, Director, Colorado Water Conservation Board, distributed the executive summary of the draft Colorado Water Plan (Attachment D) and discussed the performance goals of the CWCB in DNR's Performance Plan concerning water management and planning and environmental program. He also discussed loan and grant programs administered by the CWCB and identified benchmarks for these program including the number of acre feet of new storage created by the loans and other measures. He identified allocations from the Water Supply Reserve Fund and benchmarks for spending from the fund. He also discussed the implementation of decision support systems for the Arkansas River Basin and other basins. He identified loans and grants issued by the CWCB to address impacts related to the 2013 floods. He also responded to questions from the committee about its flood plain mapping activities.

141211 AttachD.pdf141211 AttachD.pdf

01:43 PM

Mr. Eklund discussed environmental programs including stream and lake protection and watershed protection and restoration. He also responded to questions from the committee about provisions of the CWP that address watershed protection and efforts of basin roundtables to address watershed protection. He also responded to questions from the committee about measures to reduce water loss from municipal water supply systems.

01:52 PM -- Division of Water Resources

Dick Wolfe, State Engineer, Division of Water Resources, discussed the role of the division in the administration of water in the state and ensuring that Colorado complies with water delivery requirements under interstate compacts. He also discussed the regulation of groundwater use including water well construction. He also discussed the development draft rules to regulate groundwater pumping in the Rio Grande Basin. He summarized the division's regulatory agenda concerning irrigation wells in the Arkansas Basin and other issues. He also responded to questions about the well inspection program and whether a fee increase is needed to ensure adequate staffing levels for well inspections.

02:09 PM

Director Eklund responded to questions from the committee about the role of the CWCB in reviewing permits related to the Northern Integrated Water Supply Project and programs to promote watershed protection.

02:16 PM -- State Board of Land Commissioners

Bill Ryan, Director, State Board of Land Commissioners, described the major programs of the board to manage resources to fund K-12 education and other trusts. He discussed the division's operating budget and revenues allocated to the state trusts. He identified outputs in the division's performance plan and identified moneys provided to the Building Excellent Schools Today (BEST) program. Established in 2008, BEST provides funding in the form of competitive grants to schools for the construction of new schools as well as general construction and renovation of existing school facility systems and structures. He responded to questions from the committee about the decline in the price for oil and gas and its impact on revenue for the board's trusts.

02:29 PM -- Division of Reclamation and Mine Safety

Ginny Brannon, Director, Division of Reclamation and Mining Safety, identified the major programs of the division and discussed the division's mission. She also discussed program inputs and outputs and factors affecting division workload related to mining activities. She also discussed the division's regulatory agenda and responded to questions from the committee about mining and reclamation activities in Colorado.

02:45 PM

There was no public testimony.