Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0503.01 Thomas Morris x4218 HOUSE BILL 12-1176 HOUSE SPONSORSHIP Ryden, Wilson, Hullinghorst, Jones, Todd SENATE SPONSORSHIP (None), House Committees Senate Committees Local Government A BILL FOR AN ACT Concerning oil and gas, and, in connection therewith, increasing the Colorado oil and gas conservation commission's authority to regulate oil and gas operations and including within the term "surface owner" the owners of land overlying that portion of a geologic formation within which horizontal hydraulic fracturing is conducted. 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.) Section 1 of the bill specifies that the Colorado oil and gas conservation commission has authority to require: Increased setbacks from wells that will be treated with hydraulic fracturing. The commission must require setbacks of 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 than would otherwise apply. That best management practices for new technologies be established by rule prior to use of the new technologies. Section 2 includes the owners of land overlying that portion of a geologic formation within which horizontal hydraulic fracturing is conducted within the term "surface owner". Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 34-60-106, add (1) (k) and (1) (l) as follows: 34-60-106. Additional powers of commission - rules. (1) The commission also has authority to require: (k) Increased setbacks from wells that will be treated with hydraulic fracturing. The commission shall require setbacks of at least one thousand feet from a residence or school; except that a surface owner of land that is not located in an urban area and on which a well that is or will be subject to hydraulic fracturing may request a shorter setback. For purposes of this paragraph (k), "urban area" means an area determined to contain an average residential density equal to or greater than one dwelling unit per two and one-half acres or that has at least fifty thousand square feet of gross floor area devoted to nonresidential structures. (l) That best management practices for new technologies be established by rule prior to use of the new technologies. SECTION 2. In Colorado Revised Statutes, 34-60-103, amend (10.5) as follows: 34-60-103. Definitions. As used in this article, unless the context otherwise requires: (10.5) "Surface owner" means any person owning all or part of the surface of land upon which oil and gas operations are conducted, as shown by the tax records of the county in which the tract of land is situated, or any person with such rights under a recorded contract to purchase. For purposes of this subsection (10.5), "land upon which oil and gas operations are conducted" includes land overlying that portion of a geologic formation within which horizontal hydraulic fracturing is conducted. SECTION 3. Applicability. The provisions of this act apply to acts occurring on or after the effective date of this act. SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.