HOUSE
                       3rd Reading Unamended
       April 2, 2013           HOUSE
       2nd Reading Unamended
                       April 1, 2013First Regular Session
              Sixty-ninth General Assembly
                    STATE OF COLORADO
                                                REENGROSSED
                       This Version Includes All Amendments
                       Adopted in the House of Introduction
 LLS NO. 13-0851.01 Jery Payne x2157     HOUSE BILL 13-1268
                    HOUSE SPONSORSHIP
 Moreno,  Foote, Hullinghorst, Lebsock, Mitsch Bush, Pabon, Singer
 
                   SENATE SPONSORSHIP
 Hodge, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Agriculture, Livestock, & Natural Resources
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a disclosure of possible separate ownership of
            the mineral estate in the sale of real property.
       
       
                           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.)
       
            The bill requires a seller to disclose in the sale of real property that
       a separate mineral estate may subject the property to oil, gas, or mineral
       extraction. A standard disclosure or a substantially similar disclosure is
       required. A seller that provides this disclosure is not liable for any
       damages of the purchaser from oil, gas, or mineral extraction.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add 38-35.7-108 as
       follows:
            38-35.7-108.  Disclosure of oil and gas activity - rules.
       (1) (a)  By January 1, 2014, the real estate commission created in
       section 12-61-105, C.R.S., shall promulgate a rule requiring each
       listing contract, contract of sale, or seller's property
       disclosure for residential real property that is subject to the
       commission's jurisdiction to disclose the following or
       substantially similar information:
                 THE SURFACE ESTATE OF THE PROPERTY
            MAY BE OWNED SEPARATELY FROM THE
            UNDERLYING MINERAL ESTATE, AND
            TRANSFER OF THE SURFACE ESTATE MAY NOT
            INCLUDE TRANSFER OF THE MINERAL ESTATE.
            THIRD PARTIES MAY OWN OR LEASE
            INTERESTS IN OIL, GAS, OR OTHER MINERALS
            UNDER THE SURFACE, AND THEY MAY ENTER
            AND USE THE SURFACE ESTATE TO ACCESS
            THE MINERAL RIGHTS.
                 THE USE OF THE SURFACE ESTATE TO
            ACCESS THE MINERALS MAY BE GOVERNED BY
            A SURFACE USE AGREEMENT, A
            MEMORANDUM OR OTHER NOTICE OF WHICH
            MAY BE RECORDED WITH THE COUNTY CLERK
            AND RECORDER.
                 THE OIL AND GAS ACTIVITY THAT MAY
            OCCUR ON OR NEAR THIS PROPERTY MAY
            INCLUDE SURVEYING, DRILLING, WELL
            COMPLETION OPERATIONS, STORAGE
            FACILITIES, PRODUCING WELLS, AND GAS
            GATHERING AND PROCESSING FACILITIES.
                 ADDITIONAL INFORMATION REGARDING
            OIL AND GAS ACTIVITY ON OR ADJACENT TO
            THIS PROPERTY, INCLUDING DRILLING
            PERMIT APPLICATIONS, MAY BE AVAILABLE
            FROM THE COLORADO OIL AND GAS
            CONSERVATION COMMISSION.
            (b)  On and after January 1, 2014, each listing contract,
       contract of sale, or seller's property disclosure for residential
       real property that is not subject to the real estate commission's
       jurisdiction must contain a disclosure statement in bold-faced
       type that is clearly legible in substantially the same form as is
       specified in paragraph (a) of this subsection (1).
            (2)  The seller shall provide the disclosure set forth in
       subsection (1) of this section. If the seller complies with this
       section, the purchaser has no claim for relief against the seller
       or any person licensed pursuant to article 61 of title 12, C.R.S.,
       for any damages of the purchaser resulting from oil, gas, or
       mineral extraction.
            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, 2013, if adjournment sine die is on May 8,
       2013); 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 2014 and, in such case, will take effect on the
       date of the official declaration of the vote thereon by the governor.
            (2)  This act applies to contracts made on or after the later of the
       applicable effective date of this act or January 1, 2014.