NOTE: The governor signed this measure on 5/24/2013.
      
      
      SENATE BILL 13-202
      
      
      BY SENATOR(S) Jones, Aguilar, Carroll, Giron, Guzman, Heath, Jahn,
      Kefalas, Kerr, Newell, Nicholson, Schwartz, Todd, Ulibarri, Morse;
      also REPRESENTATIVE(S) Singer, Fields, Fischer, Ginal, Hamner,
      Hullinghorst, Labuda, Melton, Rosenthal, Ryden, Schafer, Williams.
      
      
      Concerning additional inspections of oil and gas facilities, and, in
           connection therewith, making an appropriation.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Legislative declaration. (1)  The general assembly
      hereby:
      
           (a)  Finds that the substantial increase in oil and gas development in
      Colorado, while very beneficial to Colorado's economy:
      
           (I)  Has led to increased risks to Colorado's natural environment and
      public health; and
      
           (II)  Has not been accompanied by a proportionate increase in the
      inspections staff of the Colorado oil and gas conservation commission;
      
           (b)  Determines that:
      
           (I)  Timely inspections of new and producing oil and gas wells,
      including those that are hydraulically fractured, are critical to protecting
      public health, minimizing environmental contamination, detecting spills
      before they worsen, and ensuring public trust; and
      
           (II)  Given the limitations of its current authorization for only sixteen
      inspectors, the inspection staff of the Colorado oil and gas conservation
      commission can inspect the more than fifty thousand active wells in
      Colorado, on average, only about once every four years, with each staff
      member inspecting more than three thousand wells per year; and
      
           (c)  Declares that this act to increase the frequency of inspections of
      oil and gas wells is necessary for the immediate preservation of the public
      peace, health, and safety.
      
           SECTION 2.  In Colorado Revised Statutes, 34-60-106, add (15.5)
            as follows:
      
           34-60-106.  Additional powers of commission - rules - repeal.
      (15.5)  The commission shall use a risk-based strategy for
      inspecting oil and gas locations that targets the operational
      phases that are most likely to experience spills, excess emissions,
      and other types of violations and that prioritizes more in-depth
      inspections. The commission shall:
      
           (a) (I)  Submit a report by February 1, 2014, to the general
      assembly's joint budget committee and the senate and house of
      representatives committees of reference with jurisdiction over
      energy that includes findings, recommendations, and a plan,
      including staffing and equipment needs.
      
           (II)  This paragraph (a) is repealed, effective September 1,
      2014.
      
           (b)  Implement the systematic risk-based strategy by July 1,
      2014. The commission may use a pilot project to test the risk-based
      strategy.
      
           SECTION 3.  Appropriation. In addition to any other
      appropriation, there is hereby appropriated, out of any moneys in the oil and
      gas conservation and environmental response fund created in section
      34-60-122 (5), Colorado Revised Statutes, not otherwise appropriated, to
      the department of natural resources, for the fiscal year beginning July 1,
      2013, the sum of $100,000, or so much thereof as may be necessary, for
      allocation to the oil and gas conservation commission for a risk-based
      inspection study related to the implementation of this act.
      
           SECTION 4.  Applicability. This act applies to conduct occurring
      on or after the effective date of this act.
      
           SECTION 5.  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.
      
      
      
      
      ____________________________  ____________________________
      John P. Morse                         Mark Ferrandino
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Cindi L. Markwell                      Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO