Bill Summary for Bill Number HB09-1255

Date: 02/18/2009

Final
BILL SUMMARY for HB09-1255

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Votes: View-->	Action Taken:
Moved to lay HB-1255 over until next week. The mo Moved to refer House Bill 09-1255 to the Committee	PASS TIE

04:47 PM -- House Bill 09-1255

The committee took up HB 09-1255, sponsored by Representative C. Gardner, concerning limitations on the conditions imposed by the Colorado Oil and Gas Conservation Commission on oil and gas operations to implement recommendations made by state entities other than the commission. Testimony was heard on the bill on February 17. Representative Gardner distributed a letter from the Moffat County Commissioners (Attachment E), the Mesa County Board of Commissioners (Attachment F), and Action 22 (Attachment G).

The following individuals testified on the bill:

04:48 PM -- Suzanne O'Neill, Colorado Wildlife Federation, testified in opposition to the bill. She explained how the bill reduces the Division of Wildlife's consultation role and explained what species would require consultation under the rules. She described data that the oil and gas industry is affecting the hunting and fishing industry. Ms. O'Neill answered questions from the committee concerning the existing role of the Division of Wildlife in consultation, property rights, and land owner consent.

05:10 PM

Representative Looper distributed a letter from the Colorado Attorney General (Attachment H) that stated that he believes there are aspects of the rules that are problematic from a public policy perspective. Representative Curry distributed a legal memorandum from Legislative Legal Services (Attachment I).

05:11 PM -- Ivan James, Colorado Bowhunters Association, testified against the bill. Mr. James explained his organizations history in the Colorado Oil and Gas Conservation Commission rulemaking process. He stated his agreement with Mr. Neslin's testimony from the previous day. He indicated his support for the consultation role of the Division of Wildlife in the COGCC rules. He responded to questions and comments from the committee regarding the negative affects of oil and gas development to wildlife.

05:20 PM -- Michael Freeman, EarthJustice, testified against the bill. He explained the coalition of community groups that supported the legislation that created the COGCC. He described the rules that relate to permitting decisions and the permitting process. He also described the rules that the COGCC did not adopt that would have made the process more stringent. Mr. Freeman pointed out that most of the restricted surface occupancy areas (RSOs) are in Western Colorado and that most of the people who testified yesterday were from Eastern Colorado and explained ways that landowners can waive the RSOs. He described the economic impact that hunting and fishing has in the state. He also stated that companies are in the process of preparing comprehensive drilling plans that are specified in the rules. He responded to questions and comments from the committee.

05:35 PM

The committee discussed a provision in the bill that would not allow the commission to deny a permit or application as a result of a failure to obtain the consent of the surface owner.

05:46 PM

The committee discussed incentives for landowners to protect wildlife habitat without additional regulation.

05:52 PM

The committee discussed whether or not a high percentage of wildlife inhabit private lands.

05:55 PM -- Ken Wonstolen, Colorado Oil and Gas Association, testified in favor of the bill. He discussed consultation as required in the rules and how this would be changed by the bill. He also expressed his concern that landowner consent should be required for issues concerning their property. Mr. Wonstolen explained that this bill corrects the rules so that they are in line with the HB07-1298, the bill that authorized the COGCC to conduct the rulemaking process. Mr. Wonstolen distributed a map of sensitive wildlife habitat areas and an explanation of the Colorado Oil and Gas Association's position on the bill (Attachments J and K).

06:14 PM

Mr. Wonstolen continued to discuss his views on the bill in relation to private property rights.

06:16 PM

The committee discussed the General Assembly's intent with regards to HB07-1298.

06:18 PM -- Donnah Moody, CACI, testified in support of the bill. She expressed her concern about the consideration of the industry's input through the rulemaking process. She answered questions from the committee about the industry's participation in the rulemaking process.

06:29 PM -- Virginia Love, Colorado Competitive Council and the Pueblo Chamber of Commerce, spoke in support of the bill. She stated that she supports the bill from a business and economic perspective because of the uncertainty the rules create. She discussed an article in the Pueblo Chieftain about industry layoffs. The committee discussed the economic impact of the rules.

06:43 PM -- Troy Bredenkamp, Colorado Farm Bureau, testified in favor of the bill. He discussed how the COGCC voted on the rules. He answered questions from the committee regarding property rights. Mr. Bredenkamp discussed what landowners can do with their property and responded to additional questions from the committee.

07:04 PM -- Mr. Bredenkamp continued to respond to questions from the committee about the rules in relation to the restrictions they place on landowners.

07:06 PM -- Sue Jarrett, a rancher from Yuma County, spoke in support of the bill. She stated that she was very involved in the stakeholder meetings on the oil and gas rules. She discussed her personal experiences with balancing wildlife and oil and gas development. She stated that without specific surface landowner consent in the rules, a landowner refusing to have a wildlife assessment could have development permits withheld until the assessment occurs. Ms. Jarrett distributed a Yuma County petition (Attachment L) and a handout from the Colorado Independent Cattlegrowers Association (Attachment M). She discussed a prairie chicken tour that draws significant tourism to Yuma County each year that occurs on a ranch with significant oil and gas development.

07:17 PM -- Ms. Jarrett continued her testimony and talked specifically about the section of the bill regarding the recusal of the members of the COGCC in appeals. She continued her remarks on the need for this bill.

07:29 PM -- Stan Dempsey, Colorado Petroleum Association, testified in support of the bill. He stated that this bill clarifies HB07-1298. He discussed specific portions of the bill that address the cost benefit analysis. He expressed concern for how the rules would be applied to federal land and emphasized that there was more than one rule that did not have a unanimous vote by the COGCC.

07:36 PM -- Dave Neslin, Acting Director of the COGCC, responded to earlier questions and comments from the committee. He discussed the consultation process outlined in HB07-1298. He described the precedent for establishing the types of rules that the COGCC developed. Mr. Neslin referenced other appeals processes where heads of departments are able to be involved in the decision-making process. He clarified that wildlife assessments are not required by the rules and discussed some of the issues about the uncertainty created by the rules that were raised in earlier testimony. He responded to questions from the committee.

07:56 PM -- The committee discussed a letter from Cathy Garcia, Action 22, which was distributed to the committee earlier (Attachment G). The letter explained Action 22's opposition to the bill.

07:57 PM -- Ken Wonstolen, provided a brief response to Mr. Neslin's comments.

07:59 PM

The committee recessed.

08:04 PM

Representative Curry took the bill off the table. She explained that she spoke with the Speaker of the House and obtained his position. She said the committee would draft amendments and take up the bill at a later date.


BILL:	HB09-1255
TIME:	08:05:57 PM
MOVED:	McNulty
MOTION:	Moved to refer House Bill 09-1255 to the Committee on Appropriations. The committee discussed amendments Representative Gardner intended to offer. A substitute motion was made and passed. See vote sheet below.
SECONDED:	Tipton
		VOTE
	Gardner C.
	Hullinghorst
	Labuda
	Looper
	McKinley
	McNulty
	Pace
	Solano
	Sonnenberg
	Tipton
	Vigil
	Fischer
	Curry

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE


BILL:	HB09-1255
TIME:	08:06:15 PM
MOVED:	Fischer
MOTION:	Moved to lay HB-1255 over until next week. The motion passed on a 7-6 roll call vote.
SECONDED:	Hullinghorst
		VOTE
	Gardner C.	No
	Hullinghorst	Yes
	Labuda	Yes
	Looper	No
	McKinley	No
	McNulty	No
	Pace	Yes
	Solano	Yes
	Sonnenberg	No
	Tipton	No
	Vigil	Yes
	Fischer	Yes
	Curry	Yes

Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS