HOUSE 3rd Reading Unamended April 21, 2016 HOUSE Amended 2nd Reading April 20, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-1073.01 Thomas Morris x4218 HOUSE BILL 16-1430 HOUSE SPONSORSHIP Lebsock, SENATE SPONSORSHIP Hodge, House Committees Senate Committees Transportation & Energy A BILL FOR AN ACT Concerning the implementation of a recommendation of the oil and gas task force regarding the sharing of oil and gas operators' development plans with affected local governments. 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 Colorado oil and gas conservation commission recently promulgated several rules to implement 2 of the recommendations of the governor's oil and gas task force. The bill codifies some of the essential elements of one of the 2 recommendations, with the following modifications: The rules require operators to share their development plans with municipalities where the proposed operations will occur; and the bill adds counties where the proposed operations will occur. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 34-60-131 as follows: 34-60-131. Registration for advance planning - definitions. (1) Definitions. As used in this section: (a) "Director" means the director of the commission. (b) "Local government" means a home rule or statutory city, town, territorial charter city, county, or city and county. (c) "Oil and gas facility" means equipment or improvements used or installed at an oil and gas location for the exploration, production, withdrawal, gathering, treatment, or processing of oil or natural gas. (d) "Oil and gas location" means a definable area where an operator has disturbed or intends to disturb the land surface in order to locate an oil and gas facility. (2) Operator registration for advance planning. (a) Each operator shall register with the commission and with each local government that has registered with the commission pursuant to paragraph (b) of this subsection (2) in whose jurisdiction it has an approved drilling unit, a pending or approved permit to drill, or an application for a new or amended oil and gas location. (b) To be qualified to receive the information specified in this section a local government must register with the commission a statement of its intent to be covered by this section. A local government that has so registered with the commission may file a statement with the commission to revoke its registration. (c) An operator registers with a local government by: (I) Complying with the registration process established by the local government; or (II) If a local registration process does not exist, by delivering a current copy of its commission registration and designation-of-agent forms to the local government. (d) A local government that is currently registered with the commission pursuant to paragraph (b) of this subsection (2) may request an operator that has registered with it to provide the following information to the local government: (I) Based on an operator's current business plan as of the date of the request, a good-faith estimate of the number of wells the operator intends to drill in the next five years within the local government's jurisdiction; (II) A map showing the location within the local government's jurisdiction of the operator's existing well sites and related production facilities; sites for which the operator has approved, or has submitted applications for, drilling and spacing orders; and sites the operator has identified for development on its current drilling schedule for which it has not yet submitted an application for commission permits; and (III) An operator shall provide the well estimates requested pursuant to this section using reasonable business judgment based on information known to the operator as of the date the estimates are requested. Well estimates are subject to change at any time at the operator's sole discretion. SECTION 2. Applicability. This act applies to applications for approval of an oil and gas location filed on or after the applicable effective date of this act. SECTION 3. 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.