SENATE 3rd Reading Unamended February 27, 2014 SENATE Amended 2nd Reading February 26, 2014Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 14-0616.01 Jason Gelender x4330 SENATE BILL 14-093 SENATE SPONSORSHIP Jahn, Hodge, Tochtrop, Renfroe HOUSE SPONSORSHIP May, Priola, Williams Senate Committees House Committees Agriculture, Natural Resources, & Energy A BILL FOR AN ACT Concerning equivalent authority for pipeline companies to acquire right-of-way. 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.) Article 5 of title 38, Colorado Revised Statutes, governs rights-of-way for transmission companies and grants the right of eminent domain to any domestic or foreign electric light power, gas, or pipeline company authorized to do business in Colorado for the purpose of obtaining rights-of-way for wires, pipes, regulator stations, substations, and systems needed to conduct its business. The bill specifies that, subject to state constitutional and statutory provisions that require payment of just compensation and otherwise govern the exercise of the power of eminent domain, companies that operate pipelines that convey oil, gasoline, or other petroleum or hydrocarbon products are pipeline companies granted the right of eminent domain. A pipeline company must also comply with all applicable laws and regulations including, but not limited to, federal pipeline safety regulations. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, amend 38-5-101 as follows: 38-5-101. Use of public highways - definitions. Any domestic or foreign electric light power company, gas company, or pipeline company that is authorized to do business under the laws of this state or any city or town owning that owns electric power producing or distribution facilities shall have the right to construct, maintain, and operate pipelines or lines of electric light, wire, or power or pipeline along, across, upon, and under any public highway in this state, subject to the provisions of this article and all applicable federal pipeline safety regulations. Such pipelines or lines of electric light, wire, or power or pipeline shall must be so constructed and maintained so as not to obstruct or hinder the usual travel on such the highway. As used in this article, "pipeline company" includes a company lawfully formed under the laws of this state or of any other state that is permitted by its organizational documents to construct a pipeline for gas, oil, or other petroleum or hydrocarbon products, and "person" has the same meaning as set forth in section 2-4-401 (8), C.R.S. SECTION 2. In Colorado Revised Statutes, amend 38-5-102 as follows: 38-5-102. Right-of-way across state land. Any domestic or foreign electric light power company, gas company, or pipeline company authorized to do business under the laws of this state, or any city or town owning electric power producing or distribution facilities shall have the right to construct, maintain, and operate pipelines or lines of electric light, wire, or power or pipeline and obtain permanent right-of-way therefor over, upon, under, and across all public lands owned by or under the control of the state upon the payment of such compensation and upon compliance with such reasonable conditions as may be required by the state board of land commissioners may require. SECTION 3. In Colorado Revised Statutes, amend 38-5-103 as follows: 38-5-103. Power of companies to contract. Such electric light power company, gas company, or pipeline company, or such city or town shall have power the right to contract with any person or corporation the owner of that owns any lands or any franchise, easement, or interest therein in lands over or under which the pipeline or the line of electric light, wire, or power or pipeline is proposed to be laid or created for the right-of-way for the construction, maintenance, and operation of its electric light wires, pipes, poles, regulator stations, substations, or other property and for the erection, maintenance, occupation, and operation of offices at suitable distances for the public accommodation. SECTION 4. In Colorado Revised Statutes, amend 38-5-104 as follows: 38-5-104. Right-of-way across private lands. (1) Such telegraph company, telephone company, electric light power company, gas company, or pipeline company, or such city or town shall be is entitled to the right-of-way over or under the land, property, privileges, rights-of-way, and easements of other persons and corporations and to the right to erect its poles, wires, pipes, regulator stations, substations, systems, and offices upon giving notice and making just compensation therefor in the manner provided by law. The rights granted by this section and section 38-5-105 to such electric light power companies, gas companies, or pipeline companies, or to such cities and towns shall do not extend to the taking of any portion of the right-of-way of a railroad company, except to the extent of acquiring any necessary easement to cross the same or to serve such the railroad company with electric light, power, or gas service. The rights granted by this section and section 38-5-105 to telegraph or telephone companies shall do not extend to the taking of any portion of the right-of-way of a railroad company, except to the extent of acquiring any easement which that does not materially interfere with the existing use by the railroad company, or except to the extent of acquiring any necessary easement to cross the same or to serve such the railroad company with telegraph or telephone service. (2) If any right-of-way is taken by such telegraph company, telephone company, electric light power company, gas or company, pipeline company, city, or town takes right-of-way over any portion of the right-of-way of a railroad company, the taking party shall pay the entire cost of constructing its facilities along such the right-of-way, including any expenses incurred by the railroad for inspection and flagging as reasonably necessary to avoid interference with safe operation of the railroad. The taking party shall also bear the entire cost, including the cost of such any inspection and flagging, of removing, relocating, altering, or protecting any facility installed on the right-of-way so taken if, at any time, such the removal, relocation, alteration, or protection becomes reasonably necessary to avoid interference with the railroad company's ability to use its original right-of-way to operate its railroad efficiently and safely and to efficiently and safely serve existing, new, or potential railroad customers. The taking party shall indemnify the railroad company from all losses and expenses resulting from the negligence of the taking party and its successors or contractors in connection with or related to such the right-of-way. The A taking party shall have has no claim against the railroad for any loss resulting from damage to the taking party's telegraph or telephone facilities resulting from any unforeseen emergencies or acts of God such as derailment, explosions, collisions, or activities reasonably performed in repairing damages caused by such occurrences. SECTION 5. In Colorado Revised Statutes, amend 38-5-105 as follows: 38-5-105. Companies, cities, and towns have eminent domain right. Such telegraph company, telephone company, electric light power company, gas company, or pipeline company, or such city or town is vested with the power of eminent domain and authorized to proceed to obtain rights-of-way for poles, wires, pipes, regulator stations, substations, and systems for such purposes by means thereof. Whenever any such company or such city or town is unable to secure by deed, contract, or agreement such rights-of-way for such purposes over, under, across, and upon the lands, property, privileges, rights-of-way, or easements of persons or corporations, it shall be is lawful for such telegraph, telephone, electric light power, gas, or pipeline company or any city or town owning electric power producing or distribution facilities to acquire such title in the manner now provided by law for the exercise of the right of eminent domain and in the manner as set forth in this article. Such company, city, or town exercising the right of eminent domain pursuant to this article shall provide just compensation as required by section 15 of article II of the state constitution. SECTION 6. In Colorado Revised Statutes, add 38-5-109 as follows: 38-5-109. Siting of pipelines that transport hazardous liquids - assistance of department of local affairs - definitions. (1) For purposes of this section: (a) "Hazardous liquids" means: (I) Petroleum or a petroleum product; (II) Nonpetroleum fuel, including biofuel, that is flammable, toxic, or corrosive or would be harmful to the environment if released in significant quantities; or (III) A substance that the federal secretary of transportation decides may pose an unreasonable risk to life or property when transported by a pipeline in a liquid state, except for liquefied natural gas. (b) "Pipeline" means a pipe with a nominal diameter of six inches or more that is designed to transport hazardous liquids, but does not include a pipe designed to transport a hazardous liquid by gravity or a pipe designed to transport or store a hazardous liquid within a refining, storage, or manufacturing facility. (2) If a pipeline company or any other person or entity seeks approval for siting of a pipeline, and the county or municipality that has jurisdiction over the proposed route does not have the financial or staff resources to thoroughly evaluate the current and future safety risks of siting the pipeline as requested, the county or municipality shall seek professional assistance in evaluating such risks. The person or entity seeking approval for the siting of the pipeline shall pay the costs of such professional assistance. The county or municipality may request that the department of local affairs help it to identify persons who can render such professional assistance. The department shall provide such help to any such county or municipality upon request and within its existing appropriations. No later than July 1, 2014, the department shall notify the governing body of each county and municipality in this state of the requirements of this subsection (2). SECTION 7. 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.