Date: 03/16/2015

Final
BILL SUMMARY for SB15-093

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Postpone Senate Bill 15-093 indefinitely. The moti
Refer Senate Bill 15-093 to the Committee of the W		PASS
FAIL



02:22 PM -- SB15-093

The committee took a brief recess.


02:27 PM

The committee returned to order. Representative J. Becker, sponsor, presented Senate Bill 15-093. This reengrossed bill requires local governments to compensate the owner of an interest in mineral rights (mineral owner) when a local ordinance, resolution, rule, regulation, or other official policy (local rule) reduces the fair market value (FMV) of the owner's mineral interest by at least 60 percent. The bill requires mineral owners and local governments to exchange written notifications as follows:

Within seven days of notifying the mineral owner of a pending local rule, a hearing is set to determine the preliminary value of the reduction in FMV. This hearing will be held before a panel of three impartial commissioners appointed by a judge, or, if requested by the mineral owner, it will involve adjudication before the district court or land owners as a jury. The preliminary value determined as a result of this hearing may be challenged by the mineral owner if he or she believes the value is too low. Local governments may also post an appeal bond and contest the preliminary value in limited circumstances.

If the mineral owner is owed compensation, the local government may implement its pending local rule by paying the mineral owner the preliminary value, plus the mineral owner's reasonable attorney fees and costs, within seven business days of the hearing. Failure of the local government to pay compensation by this deadline bars the local government from implementing the pending local rule.

Provisions in the bill clarify that partial ownership of a mineral interest, or shared interest in the royalties from a mineral interest, must be equitably apportioned between all affected parties. The bill does not affect any other legal recourse available to owners of private property taken for public use.

02:30 PM -- Michelle Smith, representing the National Association of Royalty Owners, testified in support of the bill. Ms. Smith discussed the importance of property rights in the United States. She expressed her opinion that the bill is for the greater good of all. She spoke about mineral rights owners who need the royalties.

02:34 PM -- Benjamin Donegan, representing himself, testified in opposition to the bill. Mr. Donegan explained his analysis of the bill from an economic perspective. He described a number of ecological effects that have been linked to drilling and hydraulic fracturing (fracking). He responded to questions from the committee.

02:47 PM -- Mark Linnebur, representing the Colorado Association of Wheat Growers, testified in support of the bill. Mr. Linnebur discussed the land and mineral rights he owns.

02:51 PM -- Jen Boulton, representing the Audubon Society and Colorado Trout Unlimited, testified in opposition to the bill. Ms. Boulton spoke about current law with regard to government takings. She discussed the government's interest in balancing the rights of various groups of citizens.

02:54 PM -- Carlyle Currier, representing the Colorado Farm Bureau and the Colorado Cattlemen's Association, testified in support of the bill. Mr. Currier spoke about the protection of property rights. He responded to questions from the committee.


03:00 PM

A lengthy discussion of property rights ensued.

03:05 PM -- Marilyn Hughes, representing herself, testified in opposition to the bill. Ms. Hughes distributed a written statement and read from her prepared remarks (Attachment B). She responded to questions from the committee.

15HouseState0316AttachB.pdf15HouseState0316AttachB.pdf

03:13 PM -- Stan Dempsey, representing the Colorado Petroleum Association, testified in support of the bill. Mr. Dempsey spoke about local fracking bans and their effects. He discussed oil and gas regulations. He responded to questions from the committee.

03:24 PM -- Dan Kramer, representing the City of Longmont and the Colorado Municipal League, testified in opposition to the bill. Mr. Kramer stated his opinion that the bill burdens local governments that are trying to protect citizens' health, safety, and welfare. He spoke about the potential costs of the bill for local governments. He responded to questions from the committee.

03:33 PM -- Dan O'Connell, representing the Colorado Association of Commerce and Industry, testified in support of the bill. Mr. O'Connell spoke about the importance of the oil and gas industry in Colorado. He discussed private property rights and the protection of those rights.

03:36 PM -- Steve Mast, representing himself, testified in support of the bill. Mr. Mast spoke about his mineral rights and fairness.

03:38 PM -- Becky Brooks, representing the Colorado Corn Growers' Association, testified in support of the bill.

03:39 PM -- Jim Cole, representing the Colorado Oil and Gas Association and Weld County, testified in support of the bill.


03:40 PM

Representative Becker wrapped up his presentation of the bill and asked for a favorable recommendation.
BILL:SB15-093
TIME: 03:50:24 PM
MOVED:Humphrey
MOTION:Refer Senate Bill 15-093 to the Committee of the Whole. The motion failed on a vote of 5-6.
SECONDED:Willett
VOTE
Foote
No
Humphrey
Yes
Lontine
No
Neville P.
Yes
Primavera
No
Tate
Yes
Thurlow
Yes
Tyler
No
Willett
Yes
Salazar
No
Ryden
No
YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:SB15-093
TIME: 03:50:34 PM
MOVED:Salazar
MOTION:Postpone Senate Bill 15-093 indefinitely. The motion passed on a vote of 6-5.
SECONDED:Foote
VOTE
Foote
Yes
Humphrey
No
Lontine
Yes
Neville P.
No
Primavera
Yes
Tate
No
Thurlow
No
Tyler
Yes
Willett
No
Salazar
Yes
Ryden
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS