Final
Regulation of Oil and Gas Development
HOUSE
COMMITTEE ON
AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES
Votes:
Action Taken:
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10:15 AM - Regulation of Surface Damages from Oil and Gas Development
Brian Macke, Director of the Colorado Oil and Gas Conservation Commission (COGCC), described the organization of the COGCC, identified the location of oil and gas development in Colorado, and compared current production levels and well permits issued with previous years (Attachment A).
10:27 AM
Morris Bell, COGCC Deputy Director, described financial assurance requirements pertaining to plugging and abandonment, surface damage, and natural gas gathering, processing, and storage. Mr. Macke responded to questions concerning the process and criteria for foreclosing on bond. Committee discussion followed about oil and gas production levels and the need for additional COGCC staff to oversee the significant growth in oil and gas development in Colorado.
10:38 AM
Mr. Macke described the enforcement of COGCC rules including the process for investigating complaints and imposing fines (Attachment B). He explained that a COGCC pamphlet is provided to the public when they are notified of an application for a permit to drill on their land (Attachment C). The pamphlet includes a summary of COGCC regulations concerning use of surface lands, contact information, and other information of interest to affected land owners. In response to questions from the committee, Mr. Macke described the COGCC's authority to enforce surface-use requirements for well developers. Committee discussion followed about possible improvements to the information provided to the public including an explanation about the process for foreclosing on surface damage bonds.
10:58 AM
Peter Mueller, Chairman of the COGCC, described the make up of the commission and responded to questions from the committee regarding its ability to impartially protect the public interest. Mr. Macke described the COGCC's on-site inspection process and the criteria for withholding a permit to drill(Attachment D).
11:11 AM
Mr. Macke compared Colorado's regulation of oil and gas development with other states (Attachment E and F). In response to questions, he explained that a surface owner may request the COGCC to increase the amount of a surface damage bond. Mr. Macke also described COGCC's budget and explained that it does not receive any General Fund moneys.
11:18 AM
The briefing ended and the committee recessed.