Date: 02/06/2012

Final
BILL SUMMARY for HB12-1176

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View--> Action Taken:
Moved prepared amendment L.001 (Attachment B). The
Moved to postpone House Bill 12-1176 indefinitely.
Moved to refer House Bill 12-1176, as amended, to 		Pass Without Objection
PASS
FAIL




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.

HseLocal0206AttachB.pdf
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