House Committee on Local Government (02/06/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	02/06/2012	ATTENDANCE

Time:	01:38 PM to 06:01 PM	Conti	X
		Fields	X
Place:	SupCt	Gardner B.	X
		Kerr J.	X
This Meeting was called to order by		Labuda	X
	Representative Szabo	Lee	X
		Pace	X
This Report was prepared by		Soper	X
	Raegan Robb	Swerdfeger	X
		Balmer	X
		Szabo	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1062 HB12-1176 HB12-1173		Laid Over Postponed Indefinitely Postponed Indefinitely

01:38 PM

Representative Szabo, committee chair, called the meeting to order.

01:39 PM -- House Bill 12-1062

Representative Barker, prime sponsor, presented House Bill 12-1062, concerning minimum employment protections for Colorado peace officers. He explained that the bill provides rights and protections to peace officers in Colorado and allows a peace officer to review any adverse comment or material entered into his or her personnel file by their employer. Representative Barker responded to questions from the committee concerning the need make the rights of peace officers a matter of statewide concern under the bill.

01:56 PM

Mike Violette, representing the Colorado Fraternal Order of Police, testified in support of the bill, discussed the need to provide peace officers minimum rights under state law, and responded to questions from the committee.

01:59 PM

Kevin Bommer, Colorado Municipal League, testified against the bill, explained that matters involving peace officers are handled by individual policies at the local level, and distributed a handout to the committee (Attachment A). Mr. Bommer responded to questions from the committee concerning the bill and discussed the constitutional authority for home rule cities and towns to address local employment policies.

02:04 PM

Sheriff Grayson Robinson, representing the County Sheriffs Association, testified against the bill, explained that the bill creates an unfunded mandate on county sheriffs, and addressed questions from the committee concerning the administrative costs of the bill on county governments. Committee discussion ensued concerning the powers of county sheriffs and the current protocol for county sheriffs to amend a peace officer's personnel file or terminate a peace officer.

02:17 PM

Chief Daniel Oates, City of Aurora, and representing the Colorado Association of Chiefs of Police, testified against the bill and discussed the authority of home rule cities to address the rights of a peace officer in cases that involve amending a personnel file or terminating a peace officer. Chief Oates responded to questions from the committee concerning amendments prepared for the bill and the authority of home rule cities to address the employees issues at the local level.

02:23 PM

Greg Romberg, representing the Colorado Press Association and the Colorado Broadcasters Association, testified against the bill and explained his support for a prepared amendment, which strikes language that is opposed by the Colorado Press Association and Colorado Broadcasters Association.

02:23 PM

Dianna Orf, representing the Northwest Colorado Council of Governments, testified against the bill and discussed the importance of allowing separate cities and counties to determine individual personnel policies to handle minimum standards for peace officers.

02:29 PM

Marc Colin, representing the Colorado Fraternal Order of Police, testified in support of the bill and discussed the need to provide employment protections and due process to peace officers in Colorado. Mr. Colin responded to questions from the committee concerning different types of agencies that may not have minimum employment protections for peace officers. Committee discussion ensued concerning the definition of "employment-at-will" under state law and the need to provide employment protections for peace officers.

02:42 PM

Mark Nicastle, representing the Colorado Fraternal Order of Police, testified in support of the bill and discussed his personal experience involving a lawsuit with the Adams County Sheriff's Office for being demoted unfairly. Mr. Nicastle addressed questions from the committee concerning his experience and he talked about the need for House Bill 12-1062.

02:47 PM

Dan Montgomery, representing himself and the Colorado Fraternal Order of Police, testified in support of the bill and discussed the need to have mandatory accreditation and due process for peace officers. Mr. Montgomery addressed questions from the committee concerning the benefits of local governments with minimum standards for peace officers.

02:52 PM

Frank Gale, Vice President, Colorado Fraternal Order of Police, testified in support of the bill, discussed the need for a fair process for all peace officers in the state, and responded to questions from the committee concerning the need to provide an impartial hearing and due process for peace officers throughout Colorado.

03:01 PM

The committee chair laid House Bill 12-1062 over for action only.

03:04 PM

The committee stood in a brief recess.

03:17 PM

The committee returned to order.

03:18 PM -- House Bill 12-1176

Representative Ryden, prime sponsor, presented House Bill 12-1176, concerning increasing the Colorado Oil and Gas Conservation Commission's (COGCC) authority to regulate oil and gas operations. Representative Ryden explained that the bill would provide the authority for the COGCC to protect surface owners of property where horizontal hydraulic fracturing, also known as "fracking," is conducted by requiring increased setbacks from such wells. Representative Ryden discussed the need to authorize the COGCC to require fracking wells to be at least 1,000 feet from any school or residence, but allow a surface owner who is not located in an urban area to request a shorter setback. She addressed questions from the committee concerning current gas development in the state and the need for the increased setback.

Discussion ensued between Representative Ryden and the committee concerning energy development in the state, the 1,000-foot setback requirement in the bill, and whether the setback requirement would impact energy development in the state. Representative Ryden discussed the need to protect surface owners from gas wells where fracking is being conducted, and explained that there are approximately 4,500 permits currently being processed by the COGCC for future oil and gas development in the state.

03:40 PM

Bob Randall and Thom Kerr, representing the COGCC, testified in support of the bill, discussed current situations that may warrant a wider setback, and explained that the current setbacks were set during the 2008 rule making process by the COGCC. They responded to questions from the committee and discussed other setback requirements that were considered during the 2008 rule-making process to protect surface owners.

03:45 PM

Jim Cole and Andrew Casper, legal counsel, representing the Colorado Oil and Gas Association, testified against the bill and discussed provisions in the bill that could create more delay in the permit approval process. Mr. Casper and Mr. Cole addressed questions from the committee concerning current regulations for 350-foot setbacks, the limitations that would be placed on energy development by a 1,000-foot setback, and talked about how policies have changed over time to accommodate surface owners. Committee discussion ensued concerning the recent history of energy development and new COGCC rules.

04:01 PM

Carly Dollar, representing the Colorado Association of Commerce and Industry, testified against the bill, discussed the need to limit regulations on businesses in the state, and explained that the authority to establish setbacks for oil and gas development should be determined under the current rules guiding the COGCC.

04:03 PM

Stan Dempsey, representing the Colorado Petroleum Association, testified against the bill, discussed the need for the COGCC to maintain authority to establish setbacks up to 350 feet, and discussed provisions under the Colorado Oil and Gas Conservation Act that satisfy reasonable accommodations between mineral owners and surface owners. Mr. Dempsey responded to questions from the committee concerning energy production and balancing the rights of mineral owners and surface owners.

04:10 PM

Shelley Bassman, representing Longmont Citizens for Responsible Oil and Gas Regulation (ROAR), testified in support of the bill, talked about recent gas development in Colorado involving fracking, and discussed the need for 1,000-foot setbacks to protect surface owners and schools.

04:21 PM

Jen Palazzolo, testified in support of the bill, discussed harmful substances in the chemicals used during the fracking process, and talked about oil and gas development in the Wattenberg Field in Weld County where gas well pads are too close to residences and schools. Ms. Palazzolo addressed questions from the committee concerning oil and gas development in the Wattenberg Field and the research that she cited concerning harmful chemicals used by oil and gas companies during the fracking process.

04:28 PM

Tracy Cook, representing himself, testified in support of the bill, discussed recent gas wells that have been developed near the City of Aurora, and talked about the need for 1,000 foot setbacks for responsible oil and gas development in the state. Mr. Cook talked about a specific case within his homeowners' association where a gas well is being developed and requests for a larger setback and to cease seismic testing were refused by the oil and gas company.

04:35 PM

Gary Beasley, representing himself, testified in support of the bill, talked about recent gas development in the City of Aurora, and discussed the need for the 1,000-foot setbacks.

04:38 PM

Representative Ryden entered closing comments on the bill and read letters of support for the bill from her constituents and other stakeholder groups.


BILL:	HB12-1176
TIME:	04:48:14 PM
MOVED:	Labuda
MOTION:	Moved prepared amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Lee
		VOTE
	Conti
	Fields
	Gardner B.
	Kerr J.
	Labuda
	Lee
	Pace
	Soper
	Swerdfeger
	Balmer
	Szabo

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


BILL:	HB12-1176
TIME:	04:50:06 PM
MOVED:	Labuda
MOTION:	Moved to refer House Bill 12-1176, as amended, to the Committee on Appropriations. The motion failed on a vote of 3-8.
SECONDED:	Soper
		VOTE
	Conti	No
	Fields	Yes
	Gardner B.	No
	Kerr J.	No
	Labuda	No
	Lee	Yes
	Pace	No
	Soper	Yes
	Swerdfeger	No
	Balmer	No
	Szabo	No

YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1176
TIME:	04:57:00 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 12-1176 indefinitely. The motion passed on a vote of 8-3.
SECONDED:	Gardner B.
		VOTE
	Conti	Yes
	Fields	No
	Gardner B.	Yes
	Kerr J.	Yes
	Labuda	Yes
	Lee	No
	Pace	Yes
	Soper	No
	Swerdfeger	Yes
	Balmer	Yes
	Szabo	Yes

Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:07 PM -- House Bill 12-1173

Representative Wilson, prime sponsor, presented House Bill 12-1173, concerning restrictions on the use of open pits in connection with hydraulic fracturing. Representative Wilson explained that the bill prohibits an oil and gas operator from using, storing, or disposing of hydraulic fracturing fluids, also know as "flow-back", in an open pit and requires the use of a closed-loop system for hydraulic fracturing ("fracking") treatments. Also, according to the bill, the COGCC may approve the use of open pits where the commission determines there is no risk to occupied structures or water sources, and fracking fluid discharge is clean enough to be placed back into state waters without a permit. Representative Wilson distributed handouts to the committee concerning the background of fracking (Attachment C), a letter of support from Colorado Trout Unlimited (Attachment D), and other e-mails he received supporting House Bill 12-1173 (Attachment E).

05:14 PM

Bob Randall and Thom Kerr, representing the COGCC, under the Department of Natural Resources, discussed closed-loop systems for hydraulic fracking treatments and explained that more operators are implementing a closed-loop system for fracking. Mr. Kerr addressed questions from the committee concerning the responsibility on operators to maintain any onsite spills and reclaim open pits once production has ceased. Mr. Randall and Mr. Kerr addressed questions from the committee concerning how the COGCC regulates open pit operations that are using fracking fluids.

05:27 PM

Jim Cole and Andrew Casper, legal counsel, representing the Colorado Oil and Gas Association, testified against the bill, explained the difference between "fracking" and drilling, and discussed the current rule for oil and gas companies to disclosure the chemicals being used for hydraulic fracking. Mr. Casper talked about drilling operations for gas wells and why closed-loop systems may be required by the COGCC in some cases. Mr. Cole also discussed the need for the COGCC to determine if drilling should require a closed-loop system and talked about the why open pit wells may be perceived as hazards.

05:34 PM

Carly Dollar, representing the Colorado Association of Commerce and Industry, testified against the bill, discussed the need for clear and consistent regulations on businesses in Colorado, and explained that decisions involving fracking and closed-loop systems should be determined by the COGCC.

05:37 PM

Stan Dempsey, representing the Colorado Petroleum Association, testified against the bill, discussed the need for regulation decisions involving fracking and closed-loop systems to be determined by the COGCC, and talked about the disclosure rule for fracking chemicals that has been implemented by the COGCC.

05:40 PM

Jen Palazzolo, representing Erie Rising, testified in support of the bill, talked about the hazards of flow-back chemicals, and discussed open pit wells containing processed fracking fluid around the Erie area.

05:41 PM

Shelley Bassman, representing Longmont Citizens for Responsible Oil and Gas Regulation (ROAR), testified in support of the bill, talked about the hazards of open pit drilling for gas, and discussed the harmful chemicals used for fracking. Ms. Bassman talked about a specific open pit well near Longmont and talked about the need to require closed-loop systems for hydraulic fracking operations.

05:47 PM

Representative Wilson made closing comments on the bill and discussed the support letter from Colorado Trout Unlimited (Attachment D) and e-mails that were distributed to the committee (Attachment E).


BILL:	HB12-1173
TIME:	05:54:19 PM
MOVED:	Labuda
MOTION:	Moved amendment L.001 (Attachment F). The motion passed without objection.
SECONDED:	Lee
		VOTE
	Conti
	Fields
	Gardner B.
	Kerr J.
	Labuda
	Lee
	Pace
	Soper
	Swerdfeger
	Balmer
	Szabo

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


BILL:	HB12-1173
TIME:	05:55:55 PM
MOVED:	Lee
MOTION:	Moved to refer House Bill 12-1173, as amended, to the Committee on Appropriations. The motion failed on a vote of 3-7.
SECONDED:	Labuda
		VOTE
	Conti	No
	Fields	Yes
	Gardner B.	No
	Kerr J.	No
	Labuda	No
	Lee	Yes
	Pace	Yes
	Soper	Excused
	Swerdfeger	No
	Balmer	No
	Szabo	No

YES: 3 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1173
TIME:	05:59:22 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 12-1173 indefinitely. The motion passed on a vote of 8-2.
SECONDED:	Kerr J.
		VOTE
	Conti	Yes
	Fields	No
	Gardner B.	Yes
	Kerr J.	Yes
	Labuda	Yes
	Lee	No
	Pace	Yes
	Soper	Excused
	Swerdfeger	Yes
	Balmer	Yes
	Szabo	Yes

Final YES: 8 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

06:01 PM

The committee adjourned.