Local governments and state agencies, including the commission and agencies listed in section 34-60-105 (1)(b), have regulatory authority over energy and carbon management operations, including as specified in section 34-60-105 (1)(b). A local government's regulations may be more protective or stricter than state requirements.
Source: L. 2019: Entire section added, (SB 19-181), ch. 120, p. 520, � 17, effective April 16. L. 2024: Entire section amended, (HB 24-1346), ch. 216, p. 1337, � 9, effective May 21.
34-60-132. Disclosure of chemicals used in downhole oil and gas operations - chemical disclosure lists - community notification - reports - definitions - rules. (1) As used in this section, unless the context otherwise requires:
(a) (I) Additive means a chemical or combination of chemicals added to a base fluid for use in a hydraulic fracturing treatment.
(II) Additive includes proppants.
(b) Base fluid means the continuous phase fluid type, such as water, used in a hydraulic fracturing treatment.
(c) Chemical means any element, chemical compound, or mixture of elements or chemical compounds that has a specific name or identity, including a Chemical Abstracts Service number.
(d) Chemical Abstracts Service number means the unique numerical identifier assigned by the Chemical Abstracts Service to a chemical.
(e) Chemical disclosure information means the information disclosed to the commission under subsections (2)(a)(I) and (3)(a)(I) of this section.
(f) Chemical disclosure list means a list of chemicals used in downhole operations at a well site.
(g) Chemical disclosure website means a website that is capable of displaying chemical disclosure lists and can be accessed by the public.
(h) (I) Chemical product means any product that consists of one or more chemicals and is sold or distributed for use in downhole operations in the state.
(II) Chemical product includes additives, base fluids, and hydraulic fracturing fluids.
(III) Chemical product does not include the structural and mechanical components of a well site where downhole operations are being conducted.
(i) (I) Direct vendor means any distributor, supplier, or other entity that sells or supplies one or more chemical products directly to an operator or service provider for use at a well site.
(II) Direct vendor does not include entities that manufacture, produce, or formulate chemical products for further manufacture, formulation, sale, or distribution by third parties prior to being supplied directly to operators or service providers.
(j) Discloser means an operator, any service provider using one or more chemical products in the course of downhole operations, and any direct vendor that provides one or more chemical products directly to the operator or service provider for use at a well site.
(k) Division means the division of parks and wildlife in the department of natural resources.
(l) Downhole operations means oil and gas production operations that are conducted underground.
(m) Health-care professional means a physician, physician assistant, nurse practitioner, registered nurse, or emergency medical service provider licensed or certified by the state.
(n) High-priority habitat means habitat areas identified by the division where measures to avoid, minimize, and mitigate adverse impacts to wildlife have been identified to protect breeding, nesting, foraging, migrating, or other uses by wildlife.
(o) Hydraulic fracturing fluid means the fluid, including any base fluid and additives, used to perform a hydraulic fracturing treatment.
(p) Hydraulic fracturing treatment means all stages of the treatment of a well by the application of hydraulic fracturing fluid under pressure, which treatment is expressly designed to initiate or propagate fractures in an underground geologic formation to enhance the production of oil and gas.
(q) Manufacturer means a person or entity that makes, assembles, or otherwise generates a chemical product or whose trade name is affixed to a chemical product.
(r) Perfluoroalkyl and polyfluoroalkyl substances or PFAS chemicals has the meaning set forth in section 25-5-1302 (7).
(s) Proppants means materials inserted or injected into an underground geologic formation during a hydraulic fracturing treatment that are intended to prevent fractures from closing.
(t) Public water systems has the meaning set forth in section 25-1.5-201 (2).
(u) Trade secret has the meaning set forth in section 7-74-102 (4).
(v) Type III aquifer means an aquifer that consists of unconsolidated geologic material, including alluvial, colluvial, or other consolidated materials.
(w) Well site means the area that is directly disturbed during oil and gas operations.
(2) Discloser chemical disclosure information and declaration. (a) On and after July 31, 2023, and subject to subsection (2)(b) of this section, a discloser that sells or distributes a chemical product for use in downhole operations in the state or that uses a chemical product in downhole operations in the state must:
(I) Disclose to the commission:
(A) The trade name of the chemical product; and
(B) A list of the names and Chemical Abstracts Service numbers of each chemical used in the chemical product; and
(C) If a discloser believes that a chemical constituent of a chemical product is a trade secret or is proprietary information, nevertheless disclose the chemical constituent; and
(II) Provide a written declaration to the commission that the chemical product contains no intentionally added PFAS chemicals.
(b) (I) Repealed.
(II) For disclosers that begin to sell, distribute, or use a chemical product for use in downhole operations in the state on or after July 31, 2023, the information and declaration required to be provided pursuant to subsection (2)(a) of this section must be provided to the commission at least thirty days before the discloser begins selling, distributing, or using the chemical product.
(c) The commission shall ensure that the information and declaration required to be provided under subsection (2)(a) of this section is provided to the commission.
(d) If a manufacturer does not provide the information described in subsection (2)(a)(I) of this section for a chemical product that it sells or distributes for use in downhole operations in the state to a discloser upon the request of the discloser or the commission, the manufacturer must provide the commission with a trade secret form of entitlement, as determined by the commission by rule, for the chemical product. At a minimum, the manufacturer must include in the trade secret form of entitlement for the chemical product:
(I) The name of each chemical used in the chemical product; and
(II) The Chemical Abstracts Service number of each chemical used in the chemical product.
(e) If, after making a request to the manufacturer of the chemical product pursuant to subsection (2)(d) of this section, a discloser is unable to disclose the information described in subsection (2)(a)(I) of this section, the discloser shall disclose to the commission:
(I) The name of the chemical product's manufacturer;
(II) The chemical product's trade name;
(III) The amount or weight of the chemical product; and
(IV) A safety data sheet for the chemical product, if it is available for disclosure by the discloser and provides the information described in subsection (2)(a)(I) of this section.
(f) In the event that the discloser is unable to disclose the information described in subsection (2)(a)(I) of this section, the commission shall obtain the information described in subsection (2)(a)(I) of this section from the manufacturer.
(3) Operator chemical disclosure information - declaration. (a) On and after July 31, 2023, and subject to subsection (3)(b) of this section, an operator of downhole operations using a chemical product must:
(I) Disclose to the commission:
(A) The date of commencement of downhole operations;
(B) The county of the well site where downhole operations are being or will be conducted;
(C) The unique numerical identifier assigned by the American Petroleum Institute to the well where downhole operations are being or will be conducted and the US well number assigned to the well where downhole operations are being or will be conducted; and
(D) The trade names and quantities of any chemical products the operator used in downhole operations; and
(II) Provide a written declaration to the commission that the chemical product contains no intentionally added PFAS chemicals.
(b) (I) Repealed.
(II) For a downhole operation that commences on or after July 31, 2023, the information and declaration required to be provided pursuant to subsection (3)(a) of this section must be provided to the commission within one hundred twenty days after the commencement of the downhole operation.
(c) The commission shall ensure that the information and declaration required to be provided under subsection (3)(a) of this section is provided to the commission.
(4) Change in chemical disclosure information. If there is a change in the information provided under subsection (2)(a)(I) or (3)(a)(I) of this section, the discloser or operator, or in the case of disclosure under subsection (2)(d) of this section, the manufacturer, must submit the change to the commission within thirty days after the date the discloser, manufacturer, or operator first knew of the change.
(5) Chemical disclosure lists. (a) The commission shall use the chemical disclosure information to create a chemical disclosure list for each applicable well site.
(b) (I) The commission shall include in the chemical disclosure list an alphabetical list of the names and Chemical Abstracts Service numbers of each chemical used in downhole operations at the well site.
(II) Notwithstanding any law to the contrary, the commission shall include the names and Chemical Abstracts Service numbers of all chemicals used in downhole operations in the chemical disclosure list and shall not protect the names or Chemical Abstracts Service numbers of any chemical as a trade secret or proprietary information. Any formulas and processes continue to have trade secret protections.
(c) The commission shall not include in the chemical disclosure list:
(I) The trade name of a chemical product used in downhole operations at the well site; or
(II) The total amount of a chemical in a chemical product.
(d) No later than thirty days after an operator makes the disclosures required under subsection (3) of this section, the commission shall:
(I) Post the chemical disclosure list on the chemical disclosure website and include the date of the submission of the chemical disclosure list to the commission in the post; and
(II) Provide the chemical disclosure list to the operator of the applicable well.
(e) The commission shall:
(I) Post an updated chemical disclosure list if there are any notifications received from a discloser, manufacturer, or operator under subsection (4) of this section and include the date of the notification by the discloser, manufacturer, or operator in the post; and
(II) Ensure that:
(A) All chemical disclosure lists and updated chemical disclosure lists remain viewable by the public;
(B) The chemical disclosure website is searchable by chemical, date of submission or update of a chemical disclosure list, name and address of the operator, and county of the well site; and
(C) The chemical disclosure website allows members of the public to download chemical disclosure lists in an electronic, delimited format.
(6) Community notification. (a) On or before July 31, 2023, and subject to subsection (6)(b) of this section, an operator shall provide the chemical disclosure list to:
(I) All owners of minerals that are being developed at the well site;
(II) All surface owners, building unit owners, and residents, including tenants of both residential and commercial properties, that are within two thousand six hundred forty feet of the well site;
(III) The state land board if the state owns minerals that are being developed at the well site;
(IV) The federal bureau of land management if the United States owns the minerals that are being developed at the well site;
(V) The Southern Ute Indian tribe if the minerals being developed at the well site are within the exterior boundary of the tribe's reservation and are subject to the jurisdiction of the commission;
(VI) All schools, child care centers, and school governing bodies within two thousand six hundred forty feet of the well site;
(VII) Police departments, fire departments, emergency service agencies, and first responder agencies that have a jurisdiction that includes the well site;
(VIII) Local governments that have a jurisdiction within two thousand six hundred forty feet of the well site;
(IX) The administrator of any public water system that operates:
(A) A surface water public water system intake that is located fifteen stream miles or less downstream from the well site;
(B) A groundwater under the direct influence of a surface water public water system supply well within two thousand six hundred forty feet of the well site; and
(C) A public water system supply well completed in a type III aquifer within two thousand six hundred forty feet of the well site; and
(X) The division if:
(A) There is a high-priority habitat area within one mile of the well site; or
(B) There is a state wildlife area, as defined in section 33-1-102 (42), or a state park or recreation area within two thousand six hundred forty feet of the well site.
(b) The chemical disclosure list must be disclosed in accordance with subsection (6)(a) of this section within thirty days after the operator's receipt of the chemical disclosure list from the commission.
(7) Reporting to the general assembly. (a) (I) The commission shall prepare an annual report that includes a list of the chemicals used in downhole operations in the state in the prior calendar year.
(II) The commission shall present the annual report to the transportation and energy committee of the senate and the energy and environment committee of the house of representatives, or their successor committees, during the committees' hearings held prior to the 2026 regular session, and each session thereafter, of the general assembly under the State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act, part 2 of article 7 of title 2. The commission shall also post the report on the commission's website.
(b) Notwithstanding section 24-1-136 (11)(a)(I), the requirement to report to the legislative committees continues indefinitely.
(8) Rules. The commission may promulgate rules that are necessary for the implementation and administration of this section.
(9) Local governments. Nothing in this section or the rules promulgated by the commission pursuant to this section limits a local government from enacting or enforcing any ordinance, regulation, or other law related to the disclosure of any chemical product.
(10) Collection of chemical disclosure information under other provisions of law. Notwithstanding any law to the contrary, nothing in this section or the rules promulgated by the commission pursuant to this section prevents the commission, the state, or a local government from collecting chemical disclosure information from disclosers, manufacturers, or operators under any other provision of law.
Source: L. 2022: Entire section added, (HB 22-1348), ch. 478, p. 3479, � 2, effective June 8. L. 2023: (5)(b) amended, (HB 23-1301), ch. 303, p. 1842, � 82, effective August 7. L. 2025: (1)(t) amended, (SB 25-275), ch. 377, p. 2077, � 207, effective August 6.
Editor's note: Subsections (2)(b)(I)(B) and (3)(b)(I)(B) provided for the repeal of subsections (2)(b)(I) and (3)(b)(I), respectively, effective July 1, 2024. (See L. 2022, p. 3479.)
Cross references: For the legislative declaration in HB 22-1348, see section 1 of chapter 478, Session Laws of Colorado 2022.
34-60-133. Orphaned wells mitigation enterprise - creation - powers and duties - enterprise board created - mitigation fees - cash fund created - rules - definitions - legislative declaration. (1) Enterprise created. (a) The orphaned wells mitigation enterprise is created in the department for the purpose of:
(I) Imposing and collecting mitigation fees;
(II) Funding the plugging, reclaiming, and remediating of orphaned wells and marginal wells in the state;
(III) Ensuring that the costs associated with plugging, reclaiming, and remediating orphaned wells and marginal wells are borne by operators in the form of mitigation fees; and
(IV) Determining the amount of mitigation fees.
(b) The enterprise board, in consultation with the commission, shall administer the enterprise in accordance with this section.
(c) (I) The enterprise constitutes an enterprise for purposes of section 20 of article X of the state constitution so long as it retains the authority to issue revenue bonds and receives less than ten percent of its total revenues in grants, as defined in section 24-77-102 (7), from all Colorado state and local governments combined. So long as it constitutes an enterprise, the enterprise is not a district for purposes of section 20 of article X of the state constitution.
(II) The enterprise is authorized to issue revenue bonds for the expenses of the enterprise, secured by revenue of the enterprise.
(1.5) Legislative declaration. The general assembly finds and declares that:
(a) Orphaned wells and marginal wells present risks to public health, safety, and welfare, including risks to the environment and wildlife resources;
(b) Environmental justice is a priority for the state, and the enterprise board should administer this section in a manner that reduces burdens on overburdened communities;
(c) The enterprise helps mitigate risks by plugging, reclaiming, and remediating orphaned wells and those marginal wells that are at the highest risk of becoming orphaned;
(d) All oil and gas wells will require plugging and reclaiming at the end of their useful lives;
(e) Many oil and gas wells will require remediation at the end of their useful lives;
(f) Pursuant to section 34-60-106, all operators are required to provide financial assurance demonstrating that the operators are financially capable of fulfilling every obligation imposed on the operators pursuant to this article 60, including the operators' plugging, reclamation, and remediation obligations; and
(g) The services that the enterprise provides benefit all operators in the state by:
(I) Mitigating the risks of an operator's oil and gas well becoming an orphaned well; and
(II) Plugging, reclaiming, and remediating qualifying marginal wells and eliminating the risk of such qualifying marginal wells becoming orphaned wells.
(2) Powers and duties. In addition to any other powers and duties specified in this section, the enterprise board has the following general powers and duties on behalf of the enterprise:
(a) To adopt procedures for conducting its affairs;
(b) To acquire, hold title to, and dispose of real and personal property;
(c) In consultation with the director of the commission or the director's designee, to employ and supervise individuals, professional consultants, and contractors as are necessary in its judgment to carry out its business purposes;
(d) To contract with any public or private entity, including state agencies, consultants, and the attorney general's office, for professional and technical assistance, office space and administrative services, advice, and other services related to the conduct of the affairs of the enterprise;
(e) To seek, accept, and expend gifts, grants, donations, or other payments from private or public sources for the purposes of this section, so long as the total amount of all grants from Colorado state and local governments received in any state fiscal year is less than ten percent of the enterprise's total annual revenue for the state fiscal year. The enterprise shall transmit any money received through gifts, grants, donations, or other payments to the state treasurer, who shall credit the money to the fund.
(e.5) To issue guidance establishing standards for marginal wells to qualify for funding pursuant to subsection (1)(a)(II) of this section. In establishing these standards, the enterprise board shall consider:
(I) An oil and gas well's location in or near a disproportionately impacted community or a highly populated area; and
(II) An oil and gas well's risk of adverse impacts on public health, safety, welfare, the environment, and wildlife resources; and
(f) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers and duties granted by this section.
(3) Enterprise board created - membership - repeal. (a) The orphaned wells mitigation enterprise board is created to administer the enterprise. The enterprise board includes the following five members:
(I) The chair of the commission;
(II) The director of the commission or the director's designee;
(III) An individual with substantial experience in the oil and gas industry, to be appointed by the governor and confirmed by the senate;
(IV) A local government official, preferably from a jurisdiction that has oil and gas development and orphaned wells, to be appointed by the governor and confirmed by the senate; and
(V) An individual with formal training or substantial experience in land reclamation projects, to be appointed by the governor and confirmed by the senate.
(b) Repealed.
(c) The members of the enterprise board described in subsections (3)(a)(III), (3)(a)(IV), and (3)(a)(V) of this section shall each serve terms of three years; except that the initial term of the member appointed pursuant to subsection (3)(a)(III) of this section is one year, and the initial term of the member appointed pursuant to subsection (3)(a)(IV) of this section is two years. In the event of a vacancy, the governor may appoint an individual to complete the term of the member whose seat has become vacant.
(d) An individual may be appointed as a member of the enterprise board pursuant to subsection (3)(a)(III), (3)(a)(IV), or (3)(a)(V) of this section an unlimited number of times.
(e) Enterprise board members serving pursuant to subsections (3)(a)(III), (3)(a)(IV), and (3)(a)(V) of this section may receive compensation from the department on a per diem basis for reasonable expenses actually incurred in the performance of duties required of enterprise board members under this section.
(f) The governor shall select a member of the enterprise board to serve as chair of the enterprise board.
(4) Enterprise board - duties. In addition to administering the enterprise, at least annually, the enterprise board shall:
(a) Consider whether the amounts of the mitigation fees should be increased or reduced, based on current circumstances and reasonably anticipated future expenditures from the fund;
(b) If the enterprise board determines that an increase or reduction of the mitigation fee amounts is warranted, adjust the mitigation fee amounts; except that the enterprise board shall not set the fee amounts in an amount that results in a violation of subsection (6)(b) of this section; and
(c) Advise the commission of the outcome of the enterprise board's deliberations pursuant to this subsection (4).
(5) Mitigation fees. (a) On or before August 1, 2022; on or before April 30, 2023; and on or before April 30 each year thereafter, each operator shall pay a mitigation fee to the enterprise for each well of an operator that has been spud but is not yet plugged and abandoned, in accordance with rules of the commission. Mitigation fees due by August 1, 2022, shall be paid in the following amounts:
(I) For operators with production that is equal to or less than a threshold to be determined by rules of the commission, one hundred twenty-five dollars for each well; and
(II) For operators with production that exceeds a threshold to be determined by rules of the commission, two hundred twenty-five dollars for each well.
(b) Mitigation fees paid after August 1, 2022, shall be paid in the amounts described in subsection (5)(a) of this section, as such amounts may be adjusted by the enterprise board pursuant to subsection (4) of this section.
(c) The enterprise shall transfer all money collected as mitigation fees pursuant to this subsection (5) to the state treasurer, who shall credit the money to the fund.
(6) Cash fund. (a) The orphaned wells mitigation enterprise cash fund is created in the state treasury. The fund consists of:
(I) Money received as mitigation fees;
(II) Any money received from the issuance of revenue bonds, as described in subsection (1)(c)(II) of this section;
(III) Any gifts, grants, or donations received pursuant to subsection (2)(e) of this section; and
(IV) Any other money that the general assembly may appropriate or transfer to the fund.
(b) The total amount of money credited to the fund as mitigation fees may not exceed one hundred million dollars in the first five fiscal years of the enterprise, beginning with the 2022-23 state fiscal year.
(c) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. Any unexpended and unencumbered money remaining in the fund at the end of a fiscal year remains in the fund and shall not be credited or transferred to the general fund.
(d) Money credited to the fund is continuously appropriated to the fund for use by the enterprise and shall be expended to:
(I) Provide plugging, reclaiming, and remediating services at the request of the director of the commission;
(I.5) Plug, reclaim, and remediate qualifying marginal wells, as determined based on factors that include:
(A) The oil and gas well's location in or near a disproportionately impacted community or a highly populated area; and
(B) The oil and gas well's risk of adverse impacts on public health, safety, welfare, the environment, and wildlife resources;
(II) Pay the enterprise's reasonable and necessary operating expenses; and
(III) Otherwise exercise the enterprise's powers and perform its duties as authorized by this section.
(7) Rules. The commission shall promulgate rules for the implementation of subsection (5)(a) of this section and as may be otherwise necessary to implement this section.
(8) Definitions. As used in this section, unless the context otherwise requires:
(a) Department means the department of natural resources.
(b) Enterprise means the orphaned wells mitigation enterprise created in subsection (1) of this section.
(c) Enterprise board means the orphaned wells mitigation enterprise board created in subsection (3) of this section.
(d) Fund means the orphaned wells mitigation enterprise cash fund created in subsection (6) of this section.
(d.5) Marginal well means an oil and gas well that presents a high risk of becoming orphaned.
(e) Mitigation fee means a mitigation fee authorized and imposed pursuant to subsection (5) of this section.
(f) Orphaned well means an oil and gas well, location, or facility in the state for which no owner or operator can be found or the owner or operator is unwilling or unable to pay the costs of plugging, reclaiming, and remediating.
Source: L. 2022: Entire section added, (SB 22-198), ch. 331, p. 2325, � 2, effective July 1. L. 2024: (1)(a)(II) and (1)(a)(III) amended and (1.5), (2)(e.5), (6)(d)(I.5), and (8)(d.5) added, (SB 24-229), ch. 183, p. 997, � 14, effective May 16.
Editor's note: Subsection (3)(b)(II) provided for the repeal of subsection (3)(b), effective July 1, 2023. (See L. 2022, p. 2325.)
Cross references: For the legislative declaration in SB 22-198, see section 1 of chapter 331, Session Laws of Colorado 2022. For the legislative declaration in SB 24-229, see section 1 of chapter 183, Session Laws of Colorado 2024.
34-60-134. Reporting of water used in oil and gas operations - cumulative reporting - definitions - rules. (1) Definitions. As used in this section and in section 34-60-135, unless the context otherwise requires:
(a) Consortium means the Colorado produced water consortium created in section 34-60-135 (2)(a).
(b) Repealed.
(c) (I) Produced water means water, including the water's mineral and chemical components, in or introduced to a geological formation, that is coproduced with oil or natural gas.
(II) Produced water includes flowback water, excluding proppants returned to the surface.
(d) Recycled or reused produced water means produced water that is reconditioned into a reusable form or that is reused without reconditioning.
(2) Well reporting - rules. Beginning September 1, 2023, operators shall report to the commission on a monthly basis, in a manner that provides for concurrent reporting with required production reporting, for each oil and gas well:
(a) The volume, expressed in barrels, of all fresh water used downhole;
(b) The volume, expressed in barrels, of all recycled or reused produced water used downhole;
(c) The volume, expressed in barrels, of all produced water that is produced from the well and the volume, expressed in barrels, of the produced water removed from the oil and gas location for disposal, including:
(I) The disposal method, as defined by the commission by rule; and
(II) The disposal location, including facility identification, if applicable; and
(d) The volume, expressed in barrels, of all produced water that is produced from the well and:
(I) Recycled or reused in another well at the same oil and gas location; and
(II) Removed from the oil and gas location for recycling or reuse in oil and gas operations at a different oil and gas location, including for use by another operator.
(3) Oil and gas location reporting - rules. (a) Beginning January 1, 2024, an operator shall report to the commission, on a quarterly basis, for each oil and gas location at which the operator conducted oil and gas operations in the previous reporting period:
(I) The volume, expressed in barrels, and whether the fresh water was acquired from industrial, commercial, municipal, or agricultural water sources for use in oil and gas operations at the oil and gas location;
(II) The volume, expressed in barrels, and source of all recycled or reused water used in oil and gas operations at the oil and gas location;
(III) The volume, expressed in barrels, of all produced water disposed of from the oil and gas location, including:
(A) The disposal method, as defined by the commission by rule; and
(B) The disposal location, including facility identification, if applicable;
(IV) The volume, expressed in barrels, of all produced water that is removed from the oil and gas location for recycling or reuse in oil and gas operations, including by another oil and gas operator; and
(V) The total volume, expressed in barrels, of all water produced from all wells at the oil and gas location in each month of the reporting period.
(b) An operator shall:
(I) File the report required under subsection (3)(a) of this section no later than forty-five days after the end of the previous calendar quarter; and
(II) Include in each report filed pursuant to subsection (3)(a) of this section the total amounts of all fresh water, produced water, and recycled or reused produced water managed at the oil and gas location for any purpose. Information reported under this subsection (3)(b)(II) does not include storm water.
(4) Scope of report - operational lifetime of a well. An operator's produced water reports described in subsections (2) and (3) of this section must describe all water produced or used throughout the operational lifetime of a well, beginning with site construction, drilling, completion, stimulation and production operations, associated plugging and abandonment, facility decommissioning, remediation, and reclamation.
(5) Rules. (a) For the purpose of collecting the data required by subsections (2) and (3) of this section, the commission may adopt rules authorizing operators to include information in their reports that is not otherwise reported pursuant to existing commission rules.
(b) The commission shall not adopt a rule designating the data required pursuant to subsection (5)(a) of this section as confidential information that an operator may redact when reporting the information to the commission.
(c) (I) On or before December 31, 2024, the commission shall adopt rules to require a statewide reduction in fresh water usage, and a corresponding increase in usage of recycled or reused produced water, at oil and gas locations. The rules must not apply to activities occurring within the exterior boundaries of an Indian reservation located within the state.
(II) In adopting rules pursuant to subsection (5)(c)(I) of this section, the commission shall consider:
(A) The data in reports filed with the commission pursuant to subsections (2) and (3) of this section; and
(B) Recommendations that the consortium develops.
(d) The rules adopted pursuant to this subsection (5) must include:
(I) Requirements for new oil and gas development plans and substantial modifications to previously approved permits to include a plan specifying the methods and locations for treatment of the produced water, quantifying recycled or reused produced water used in place of fresh water, describing emission controls associated with produced water treatment, and including any other requirements the commission determines are necessary for implementation of this section;
(II) A prohibition against placement of a new centralized produced water storage or treatment facility in a disproportionately impacted community;
(III) A requirement that an operator quantify and report, for each oil and gas location, the vehicle miles traveled in relation to fresh water and produced water management, including vehicle miles traveled for the recycling and reuse of produced water.
(e) The rules adopted pursuant to subsection (5)(c) of this section:
(I) Must:
(A) Require for each oil and gas production basin an iterative and consistent increase in the use of recycled or reused produced water without increasing emissions associated with oil and gas operations; and
(B) Establish, based on recommendations of the consortium, an iterative and consistent schedule of dates that will significantly increase the usage of recycled or reused produced water and decrease the amount of fresh water utilized in oil and gas operations in the state, while ensuring the protection of public health, safety, and welfare; the environment; and wildlife resources. The consortium shall review the dates annually to ensure that the dates continue to represent significant advancement of the goals of this section, taking into consideration population dynamics, improvements in technology, research, best management practices, and infrastructure development around produced water.
(II) May include oil-and-gas-basin-specific benchmarks to comply with the requirements established by rule pursuant to subsection (5)(e)(I) of this section.
(6) Cumulative impacts reporting. The commission shall include in its annual reporting on cumulative impacts of oil and gas operations in the state information reported pursuant to this section.
(7) Repealed.
Source: L. 2023: Entire section added, (HB 23-1242), ch. 435, p. 2556, � 2, effective June 7. L. 2024: (1)(b) repealed, (HB 24-1346), ch. 216, p. 1338, � 10, effective May 21.
Editor's note: Subsection (7)(b) provided for the repeal of subsection (7), effective July 1, 2025. (See L. 2023, p. 2556.)
Cross references: For the legislative declaration in HB 23-1242, see section 1 of chapter 435, Session Laws of Colorado 2023.
34-60-135. Colorado produced water consortium - created - membership - recommendations - definitions - review of functions - repeal. (1) (a) As used in this section, unless the context otherwise requires:
(I) Beneficial use has the meaning set forth in section 37-92-103 (4).
(II) Department means the department of natural resources.
(III) Executive director means the executive director of the department.
(IV) Governing body means the governing body of the consortium appointed pursuant to subsection (3)(a) of this section to appoint members of the consortium.
(V) Local government means a statutory or home rule city, city and county, or county.
(VI) Nontributary groundwater has the meaning set forth in section 37-90-103 (10.5).
(VII) State institution of higher education has the meaning set forth in section 23-18-102 (10).
(VIII) Water right has the meaning set forth in section 37-92-103 (12).
(b) Definitions in section 34-60-134 (1) apply to terms as they are used in this section.
(2) (a) There is created in the department the Colorado produced water consortium to make recommendations that are protective of public health, safety, and welfare; the environment; and wildlife with regard to:
(I) An informed path for the recycling and reuse of produced water within, and potentially outside of, oil and gas operations in the state; and
(II) Measures to address barriers associated with the utilization of produced water.
(b) The consortium has no role within the exterior boundaries of an Indian reservation located within the state.
(c) The primary goal of the consortium is to help reduce the consumption of fresh water within oil and gas operations. The consortium shall bring together the following groups to collaborate on working toward that goal:
(I) State and federal agencies;
(II) Research institutions;
(III) State institutions of higher education;
(IV) Affected and interested nongovernmental organizations;
(V) Local governments;
(VI) Affected industries;
(VII) Environmental justice organizations;
(VIII) Disproportionately impacted community members; and
(IX) Other interested parties.
(3) (a) (I) Except as provided in subsection (3)(a)(IV) of this section, a governing body of the consortium shall make appointments to the consortium in accordance with this subsection (3). The members of the governing body also serve as members of the consortium.
(II) The executive director or the executive director's designee shall appoint the following three individuals to serve as the governing body and members of the consortium:
(A) One representative of the commission;
(B) One representative of the division of water resources in the department; and
(C) One representative from the Colorado department of public health and environment.
(III) The governing body shall appoint the following twenty-two members of the consortium:
(A) Four representatives from a state or federal agency, other than a commissioner of the commission, associated with the regulation of produced water, including at least one member from the Colorado department of public health and environment. A staff person for the commission may be appointed pursuant to this subsection (3)(a)(III)(A).
(B) Four representatives from research institutions or state institutions of higher education with experience in produced water;
(C) Four representatives from environmental nongovernmental organizations that engage in work and advocate for policies related to produced water;
(D) Four representatives from the oil and gas industry, with one member appointed from each of the following basins: The Denver-Julesburg oil and gas basin; the Piceance oil and gas basin; the San Juan oil and gas basin; and the Raton oil and gas basin;
(E) Two representatives who serve on a governing body of a local government, who shall be appointed with consideration of the need for geographic representation of areas of the state that have current or anticipated recycled or reused produced water; and
(F) Four representatives with expertise and experience in produced water.
(IV) The president of the senate and the speaker of the house of representatives shall appoint six members of the consortium as follows:
(A) Three members, each from a nongovernmental organization in the state that works on and advocates for policies related to environmental justice and conservation, two of whom are appointed by the president of the senate and one of whom is appointed by the speaker of the house of representatives; and
(B) Three members, each of whom must be from a nongovernmental organization in the state that works with and advocates for disproportionately impacted communities and communities of color or must reside in a disproportionately impacted community, one of whom is appointed by the president of the senate and two of whom are appointed by the speaker of the house of representatives.
(b) Any vacancy in membership of the consortium shall be filled as soon as practicable in accordance with the appointment process set forth in subsection (3)(a)(III) or (3)(a)(IV) of this section.
(c) The governing body shall call the first meeting of the consortium, at which meeting the members of the consortium shall elect a member to serve as chair of the consortium. The chair of the consortium serves for two years, and the members of the consortium elect a new chair as needed.
(d) (I) Members shall be reimbursed for actual and necessary expenses incurred while performing official duties, together with mileage, at the rate at which members of the general assembly are reimbursed pursuant to section 2-2-317. All consortium members are entitled to receive fifty dollars for each meeting attended during the 2023-24 state fiscal year; except that members who are appointed under subsection (3)(a)(IV)(B) of this section and reside in a disproportionately impacted community are eligible to receive an additional one hundred fifty dollars for each meeting attended during the 2023-24 state fiscal year.
(II) A member of the consortium who, as part of the member's typically assigned, regular job duties, receives professional compensation for the member's participation in a consortium meeting is not eligible for the additional per diem for representatives of a disproportionately impacted community pursuant to subsection (3)(d)(I) of this section.
(III) The director of the consortium hired pursuant to subsection (3)(e) of this section shall annually adjust the per diem amounts set forth in subsection (3)(d)(I) of this section based on the annual percentage change in the United States department of labor's bureau of labor statistics consumer price index for Denver-Aurora-Lakewood for all items paid by all urban consumers, or its successor index.
(IV) The director of the consortium shall determine the form and manner by which a consortium member may request expense reimbursement, mileage reimbursement, or a per diem allowance.
(e) The executive director shall hire a director and a director of research to assist the consortium as follows:
(I) The director of the consortium shall provide administrative support; coordinate meetings and membership; write grants; prepare the consortium budget; contract for analyses and studies; and interact with and report to agencies and the general assembly regarding policies, rule-making proceedings, and legislation regarding reuse, recycling, and beneficial use of produced water;
(II) The director of research for the consortium shall manage academic analyses, research, pilot projects, and case studies for the consortium.
(4) The consortium shall:
(a) Provide recommendations to state agencies and the general assembly as follows:
(I) On or before May 1, 2024, how state and federal agencies can better coordinate regulatory policies related to produced water;
(II) On or before September 1, 2024, topics related to produced water;
(III) On or before November 1, 2024, any legislation or agency rules needed to remove barriers to the safe recycling and reuse of produced water in the state, taking into consideration:
(A) Environmental justice issues;
(B) Any legal issues that may affect the recycling and reuse of produced water;
(C) Testing standards and procedures for treatment of produced water for both conventional and nonconventional oil and gas exploration and development;
(D) Research gaps associated with the treatment of produced water, including gaps in addressing emissions from produced water treatment and storage and any other deficiencies in the treatment of produced water;
(E) Water sharing agreements; and
(F) Infrastructure and storage for produced water reuse and recycling, specifically addressing new or existing pits;
(IV) On or before December 1, 2024, short- and long-term produced water reuse and recycling goals for the state and contemporaneous decreases in fresh water use;
(b) Participate in relevant state agency rule-making proceedings regarding produced water; except that the consortium shall not participate as a party in any rule-making proceeding;
(c) On or before March 1, 2024, develop guidance documents and case studies to promote best practices for in-field recycling and reuse of produced water throughout the state;
(d) On or before July 1, 2024, based on data reported under section 34-60-134, analyze and report on current produced water infrastructure, storage, and treatment facilities within the different oil and gas production basins in the state, with specific emphasis on opportunities within the Denver-Julesburg oil and gas production basin;
(e) On or before August 1, 2024, analyze and report on the volume of produced water produced in the different oil and gas production basins available for reuse and recycling in comparison to the total volume of water necessary for completion activities in new oil and gas operations;
(f) On or before September 1, 2024, analyze and report on the infrastructure, storage, and technology necessary to achieve different levels of recycling and reuse of produced water in oil and gas production basins throughout the state, with specific emphasis on opportunities within the Denver-Julesburg oil and gas production basin;
(g) On or before July 1, 2025, evaluate analytical and toxicological methods employed during produced water treatment and assess tools used to evaluate produced water and its potential for use outside the oil field; and
(h) On or before April 1, 2024, in the 2024 legislative session and annually thereafter, and notwithstanding section 24-1-136 (11)(a)(I), through the director of the consortium, update the house of representatives energy and environment committee and the senate transportation and energy committee, or their successor committees, on the consortium's work pursuant to this section.
(5) (a) On or before July 1, 2023, the governing body and membership of the consortium shall be appointed pursuant to subsection (3) of this section.
(b) The consortium shall meet on a monthly basis during the consortium's first year and on a quarterly basis in subsequent years, or more often if needed as determined by the chair of the consortium.
(6) (a) Reports and analyses that the consortium provides to both state agencies and the general assembly must be inclusive of all of the opinions of members of the consortium on the reported topics.
(b) Notwithstanding section 24-1-136 (11)(a)(I), the executive director or the executive director's designee shall include in the annual SMART Act departmental presentation, made to a joint committee of the general assembly, pursuant to section 2-7-203 (2) a summary of the consortium's work, including the consortium's recommendations made to the commission and reports prepared pursuant to this section.
(7) This section is repealed, effective September 1, 2030. Before the repeal, this section is scheduled for review in accordance with section 24-34-104.
Source: L. 2023: Entire section added, (HB 23-1242), ch. 435, p. 2560, � 2, effective June 7.
Cross references: For the legislative declaration in HB 23-1242, see section 1 of chapter 435, Session Laws of Colorado 2023.
34-60-136. Biochar in oil and gas well plugging working advisory group - created - members - study by Colorado state university - recommendations for the development of a pilot program - report - definitions - repeal. (Repealed)
Source: L. 2023: Entire section added, (HB 23-1069), ch. 219, p. 1135, � 2, effective May 18.
Editor's note: Subsection (7) provided for the repeal of this section, effective September 1, 2025. (See L. 2023, p. 1135.)