Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE REGULATION OF OIL AND GAS PRODUCTION IN THE STATE OF COLORADO.

Summary of Assessment

            The provisions of this bill would change the membership of the Colorado Oil and Gas Commission, Department of Natural Resources, by replacing one of the members employed by the oil and gas industry with a county commissioner from a county that produces oil and gas, and requiring that two of the commission’s members are residents of the Western Slope. The bill also would allow the commission to conduct informal public meetings in an area affected by increased density drilling. If an informal meeting were to be requested by a local government, the commission would be required to conduct such a meeting. The bill also would require the commission, following a formal hearing on an application for increased density drilling, to require the applicant to mitigate any adverse impacts on the community, environment, or public health and safety.

            The change in the commission’s membership should not have any impact on the workload of the commission. The commission’s budget request for FY 1998/99 includes $50,000 to create a stakeholders/community outreach program, consisting in part of conducting 24 meetings around the state. It is assumed that the funding of this outreach program would provide adequate resources to fund any additional increased density drilling informal public meetings. The provisions of the bill would not affect any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Natural Resources                  Judicial Branch