House Committee on Local Government (03/06/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	03/06/2014	ATTENDANCE

Time:	09:52 AM to 11:08 AM	Dore	*
		Exum	*
Place:	HCR 0107	Garcia	*
		Gardner	X
This Meeting was called to order by		Landgraf	X
	Representative Fields	Lebsock	X
		Navarro	X
This Report was prepared by		Rankin	X
	Damion Pechota	Rosenthal	X
		Vigil	X
		Wright	X
		Singer	X
		Fields	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB14-1217		Amended, Laid Over

09:53 AM -- HB14-1217

Representative Rankin, sponsor, presented and summarized House Bill 14-1217 concerning property owned by the county. The bill clarifies that: county ownership of property may include ownership of mineral rights, oil and gas rights, and other interests for county revenue generation; a county may lease their mineral rights, real estate, or other interests for exploration or to generate revenue; whenever land is acquired for road or transit purposes, the right to subsurface support is presumed to be acquired as well; and public highways include all lands dedicated to public use by deed filed with the county clerk.

Representative Rankin presented and distributed amendment L.003 (Attachment A) and amendment L.004 (Attachment B).

14HseLocal0306AttachA.pdf

14HseLocal0306AttachB.pdf

Representative Rankin answered questions from the committee regarding right-of-way properties.

09:59 AM -- Terry Fankhauser and Danny Williams, representing the Colorado Cattlemen's Association, spoke in opposition to the bill. He discussed mineral estate ownership and concerns regarding property right issues between owners and local governments. Mr. Fankhauser discussed concerns regarding the power of county governments and the ownership of mineral rights. He discussed concerns with amendment L.003 regarding ownership of real property.

Mr. Williams discussed the function of cattlemen in Colorado and his concerns with amendment L.003. He discussed concerns regarding the ownership of right-of-ways in relation to real property. Mr. Williams discussed concerns of cattlemen regarding roadways and easements that would be changed under the provisions of the bill. He said that the bill could expand the powers of a county government.

10:14 AM

Mr. Williams answered questions from the committee regarding the process for settling disputes on the ownership of property and amendment L.003 regarding changes to the expansion of county powers.

10:21 AM -- Becky Long, representing Conservation Colorado, spoke in opposition of the bill. She discussed confusion in the bill regarding land ownership and the relationship between private property and conservation efforts. Ms. Long answered questions from the committee regarding changes to the law on the definition of a road and the transfer of mineral rights. She answered questions from the committee regarding potential growth of oil and gas extraction as a by-product of the bill.

10:27 AM -- Andy Karsian, representing Colorado Counties Inc., spoke in favor of the bill. He discussed the history of mineral right ownership rights and the potential revenue growth. He said that the bill does not extend the power of county governments. He said that the bill allows counties to be deeded mineral rights during the sale of a road. Mr. Karsian answered questions from the committee regarding court actions related to property ownership.

Representative Rankin discussed issues in Garfield County regarding mineral right issues.

Mr. Karsian answered questions from the committee regarding the adoption of a state law that will only affect a few counties. He discussed oil and gas ownership and the need for state laws to provide assistance to counties.

10:37 AM

Mr. Karsian answered questions from the committee regarding ownership laws prior to 1955 and recent case law regarding county ownership of mineral rights.

10:41 AM -- Frank Hutfless, representing Garfield County, spoke in favor of the bill. He discussed royalty checks provided to Garfield County from oil and gas companies and deeds regarding county ownership of mineral rights. Mr. Hutfless discussed court decisions regarding mineral rights associated with county powers regardless of existing deeds. He said that the bill clarifies county rights on the ownership of mineral rights and allows the county to collect revenue for minerals acquired under a county owned road.

10:50 AM

Mr. Hutfless answered questions from the committee regarding concerns related to real property ownership and ownership rights of public utility companies. He discussed the county revenue from mineral development.

11:00 AM -- Stan Dempsey, Colorado Petroleum Association, spoke in opposition of the bill. He said that the ownership of mineral rights is an issue of property rights.

11:03 AM -- Brett Moore, National Association of Royalty Owners, was neutral on the bill. He discussed the rights of mineral owners and the current processes available to counties to resolve such issues.


BILL:	HB14-1217
TIME:	11:06:39 AM
MOVED:	Rankin
MOTION:	Adopt amendment L.003 (Attachment A). The motion passed without objection.
SECONDED:	Wright
		VOTE
	Dore
	Exum
	Garcia
	Gardner
	Landgraf
	Lebsock
	Navarro
	Rankin
	Rosenthal
	Vigil
	Wright
	Singer
	Fields

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB14-1217
TIME:	11:07:52 AM
MOVED:	Rankin
MOTION:	Adopt amendment L.004 (Attachment B). The motion passed without objection.
SECONDED:	Singer
		VOTE
	Dore
	Exum
	Garcia
	Gardner
	Landgraf
	Lebsock
	Navarro
	Rankin
	Rosenthal
	Vigil
	Wright
	Singer
	Fields

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

The bill was laid over until the March 13, 2014, House Local Government committee meeting for action only.

11:08 AM

The committee adjourned.