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Second Regular Session
Sixty-first General Assembly
LLS NO. 980661.01 PLC
HOUSE BILL 981254
STATE OF COLORADO
BY REPRESENTATIVE Dyer
A BILL FOR AN ACT
CONCERNING THE REGULATION OF OIL AND GAS PRODUCTION
IN THE STATE OF COLORADO.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Changes the membership of the oil and gas conservation commission by:
Allows the commission, upon receipt of an application for increased density drilling, to hold an informal public meeting at the request of a citizen or on its own motion. Provides that such informal public meeting shall be held in the area affected by the increased drilling. Makes the informal public meeting mandatory if requested by a local government. Allows citizen and interested person testimony at the informal public meeting. Requires a record of the informal public meeting to be prepared and provided to the commission, the applicant, and the local government.
Requires the commission to attach conditions to the
application if it finds that the increased density drilling may
result in adverse impacts on the community, the environment, or
public health, safety, and welfare. Allows an affected local government
to appeal the decision of the commission concerning the conditions
placed on the application.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 3460104 (2), Colorado Revised Statutes, is amended to read:
3460104. Oil and gas conservation
commission oath qualifications report
publication. (2) (a) Effective
1998, the commission shall consist of seven members appointed
by the governor, with the consent of the senate. At least one
member shall be appointed from each congressional district in
the state; except that one
member TWO MEMBERS
shall be from west of the continental divide. Two
members shall not be employed by the oil and gas industry and
shall be individuals with formal training or substantial experience
in agriculture, land reclamation, environmental protection, or
soil conservation. Five members shall be individuals with substantial
experience in the oil and gas industry, and at least two of said
five members shall have a college degree in petroleum geology
or petroleum engineering. AT LEAST
ONE MEMBER SHALL BE A COUNTY COMMISSIONER FROM A COUNTY THAT PRODUCES
OIL AND GAS. No more than four members of the commission shall
be members of the same political party. A vacancy on the commission
occurs whenever any member moves out of the congressional district
from which such member was appointed OR FAILS TO COMPLY WITH THE
REQUIREMENTS OF PARAGRAPH (c) OF THIS SUBSECTION (2). Any member
who moves out of such congressional district OR FAILS TO COMPLY
WITH THE REQUIREMENTS OF PARAGRAPH (c) OF THIS SUBSECTION (2)
shall promptly notify the governor of the date of such move OR
NONCOMPLIANCE, but such notice is not a condition precedent to
the occurrence of the vacancy. The governor shall fill the vacancy
as provided in paragraph (b) of this subsection (2). In case
one or more vacancies occur on the same day, the governor shall
designate the order of filling vacancies.
made to the commission to take effect on January 1, 1983, shall
be made in accordance with section 241135, C.R.S.,
and appointments made thereafter and prior to June 15, 1987, shall
be for terms of five years. Persons holding office on June 15,
1987, are subject to the provisions of section 241137,
C.R.S. Thereafter, Members of the
commission shall be appointed for terms of four years each. The
governor may at any time remove any member of the commission,
and by appointment he shall fill any vacancy on the commission.
The members of the commission shall serve without compensation
except for their actual expenses. EACH MEMBER WHO FAILS TO TAKE
AN OATH OF OFFICE OR FAILS TO COMPLY WITH THE REQUIREMENTS OF
PARAGRAPH (c) OF THIS SUBSECTION (2) PRIOR TO JULY 1, 1998, SHALL
BE REMOVED BY THE GOVERNOR, AND THE VACANCY SHALL BE FILLED FOR
THE REMAINDER OF THE VACATED TERM. ALL PERSONS PREVIOUSLY APPOINTED
BY OR EMPLOYED BY THE COMMISSION SHALL COMPLY WITH THE REQUIREMENTS
OF PARAGRAPH (c) OF THIS SUBSECTION (2) PRIOR TO JANUARY 1, 1999.
(c) EACH MEMBER OF THE COMMISSION, BEFORE ENTERING UPON THE DUTIES OF OFFICE, SHALL TAKE THE CONSTITUTIONAL OATH OF OFFICE. NO PERSON IN THE EMPLOY OF OR HOLDING ANY OFFICIAL RELATION TO ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, OR CORPORATION THAT IS SUBJECT IN WHOLE OR IN PART TO REGULATION BY THE COMMISSION AND NO PERSON OWNING ANY PERCENTAGE OF STOCKS OR BONDS OF ANY SUCH FIRM, PARTNERSHIP, ASSOCIATION, OR CORPORATION, OR WHO IS IN ANY MANNER PECUNIARILY INTERESTED THEREIN SHALL BE APPOINTED TO OR HOLD THE POSITION OF MEMBER OF THE COMMISSION OR BE APPOINTED OR EMPLOYED BY THE COMMISSION. IF A MEMBER OF A COMMISSION BECOMES THE OWNER OF STOCKS OR BONDS OR BECOMES PECUNIARILY INTERESTED IN SUCH FIRM, PARTNERSHIP, ASSOCIATION, OR CORPORATION, SUCH PERSON SHALL PROMPTLY NOTIFY THE GOVERNOR AND SHALL DIVEST HIMSELF OR HERSELF OF SUCH OWNERSHIP OR INTEREST WITHIN SIX MONTHS. THE GOVERNOR SHALL REMOVE FROM THE COMMISSION ANY MEMBER OR ANY EMPLOYEE WHO FAILS TO DIVEST HIMSELF OR HERSELF OF SUCH STOCKS, BONDS, OR INTEREST.
SECTION 2. Article 60 of title 34, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
3460108.5. Increased density drilling local informal public meeting appeal. (1) UPON RECEIPT OF AN APPLICATION FOR INCREASED DENSITY DRILLING, THE COMMISSION MAY CONDUCT AN INFORMAL PUBLIC MEETING IN THE AREA AFFECTED BY SUCH INCREASED DRILLING UPON ITS OWN MOTION OR UPON THE REQUEST OF A CITIZEN'S GROUP PRIOR TO THE FORMAL COMMISSION HEARING ON THE APPLICATION. IF A REQUEST FOR AN INFORMAL PUBLIC MEETING IS MADE BY A LOCAL GOVERNMENT, SUCH MEETING IS MANDATORY.
(2) THE INFORMAL PUBLIC MEETING SHALL BE HELD FOR THE PURPOSE OF CITIZEN, LOCAL GOVERNMENT, AND OTHER INTERESTED PERSONS TESTIMONY CONCERNING THE IMPACT OF THE PROPOSED INCREASED DENSITY DRILLING ON SUCH THINGS AS SURFACE LANDS, LOCAL INFRASTRUCTURE, THE ENVIRONMENT, AND PUBLIC WELFARE. NOTICE OF THE INFORMAL PUBLIC MEETING SHALL BE PROVIDED TO THE PUBLIC AND THE APPLICANT PROPOSING THE INCREASED DENSITY DRILLING BY THE LOCAL GOVERNMENT IN THE SAME MANNER AS THE LOCAL GOVERNMENT PROVIDES NOTICE FOR A LOCAL ZONING MATTER.
(3) A RECORD OF THE INFORMAL PUBLIC MEETING SHALL BE PREPARED AND SUBMITTED TO THE COMMISSION AND MADE AVAILABLE TO THE APPLICANT, THE LOCAL GOVERNMENT, AND THE PUBLIC AT LEAST
FIVE DAYS PRIOR TO THE COMMISSION HEARING ON THE APPLICATION.
(4) AT THE FORMAL HEARING BEFORE THE COMMISSION CONCERNING THE APPLICATION FOR INCREASED DENSITY DRILLING, THE COMMISSION SHALL APPROVE OR DENY THE APPLICATION BASED SOLELY UPON THE TECHNICAL MERITS OF SUCH APPLICATION. IF THE COMMISSION FINDS, BASED ON THE RECORD OF THE INFORMAL PUBLIC MEETING, THAT THE INCREASED DRILLING DENSITY MAY RESULT IN ADVERSE IMPACTS ON THE COMMUNITY, ENVIRONMENT, OR PUBLIC HEALTH, SAFETY OR WELFARE, THE COMMISSION, AS A CONDITION OF APPROVAL OF THE APPLICATION, SHALL REQUIRE THE APPLICANT TO MITIGATE TO THE EXTENT FEASIBLE THOSE ADVERSE IMPACTS DESIGNATED BY THE COMMISSION.
(5) THE COMMISSION SHALL MAKE WRITTEN FINDINGS OF FACT AND CONCLUSIONS CONCERNING EACH CONDITION, IF ANY, REQUIRED OF THE APPLICANT TO MITIGATE THE ADVERSE IMPACTS CAUSED TO THE COMMUNITY BY THE INCREASED DENSITY DRILLING.
(6) THE LOCAL GOVERNMENT RESPONSIBLE FOR LAND USE DECISIONS IN THE AFFECTED AREA OR THE APPLICANT MAY APPEAL TO THE DISTRICT COURT, PURSUANT TO RULE 106 OF THE COLORADO RULES OF CIVIL PROCEDURE, THE DECISION OF THE COMMISSION CONCERNING THE CONDITIONS PLACED ON THE APPLICATION AS A CONDITION OF APPROVAL OR THE DECISION OF THE COMMISSION DECLINING TO ATTACH CONDITIONS TO THE APPLICATION.
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.