Bill Summary for Bill Number HB12-1173

Date: 02/06/2012

Final
BILL SUMMARY for HB12-1173

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Moved amendment L.001 (Attachment F). The motion p Moved to postpone House Bill 12-1173 indefinitely. Moved to refer House Bill 12-1173, as amended, to	Pass Without Objection PASS FAIL

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.