Second Regular Session
              Sixty-eighth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 12-0587.01 Thomas Morris x4218  HOUSE BILL 12-1173
                    HOUSE SPONSORSHIP
 Wilson,
 
                   SENATE SPONSORSHIP
 (None),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Local Government
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning restrictions on the use of open pits in connection
            with hydraulic fracturing.
       
       
                           Bill Summary
       
            (Note: This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            On or after July 1, 2014, an oil and gas operator may not use, store,
       or dispose of hydraulic fracturing fluids or flow-back from a hydraulic
       fracturing treatment in an open pit and must use a closed-loop system for
       hydraulic fracturing treatments. However, the oil and gas conservation
       commission may approve the use of open pits where the commission
       determines there is no risk to occupied structures or water sources, and
       operators can use open pits if the fluids are clean enough to discharge
       directly into state waters without a permit.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add 34-60-130 as
       follows:
            34-60-130.  Hydraulic fracturing fluids - rules. (1) (a)  On or
       after July 1, 2014, except as provided in paragraph (b) of this
       subsection (1), an operator shall:
            (I)  Not use, store, or dispose of hydraulic fracturing
       fluids or flow-back from a hydraulic fracturing treatment in
       an open pit; and
            (II)  Use a closed-loop system for hydraulic fracturing
       treatments.
            (b) (I)  The commission may approve the use of open pits in
       connection with the use, storage, or disposal of hydraulic
       fracturing fluids or flow-back from hydraulic fracturing
       treatments in areas that the commission has specifically
       designated. The commission may specifically designate an area
       pursuant to this subparagraph (I) if the commission has
       determined that there is no risk to occupied structures, surface
       water, or tributary groundwater from such use, storage, or
       disposal.
            (II)  An operator may use, store, or dispose of hydraulic
       fracturing fluids and flow-back from a hydraulic fracturing
       treatment in an open pit if the fluids are of high enough quality
       to discharge directly into state waters, as that term is defined
       in section 25-8-103 (19), C.R.S., without getting a discharge permit
       pursuant to section 25-8-501, C.R.S.
            (2)  The commission may promulgate rules to implement
       this section.
            SECTION 2.  Act subject to petition - effective date -
       applicability. (1)  This act takes effect at 12:01 a.m. on the day following
       the expiration of the ninety-day period after final adjournment of the
       general assembly (August 7, 2012, if adjournment sine die is on May 9,
       2012); except that, if a referendum petition is filed pursuant to section 1
       (3) of article V of the state constitution against this act or an item, section,
       or part of this act within such period, then the act, item, section, or part
       will not take effect unless approved by the people at the general election
       to be held in November 2012 and, in such case, will take effect on the
       date of the official declaration of the vote thereon by the governor.
            (2)  The provisions of this act apply to hydraulic fracturing
       treatments occurring on or after the applicable effective date of this act.