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Code of Colorado Regulations eDocket
Details of Tracking Number
2021-00376
CCR details
| Tracking Number |
2021-00376 |
| Type of Filing |
Permanent Rule |
| Department |
400 Department of Natural Resources |
| Agency |
404 Energy and Carbon Management Commission |
| CCR Number |
2 CCR 404-1 |
| CCR Title |
PRACTICE AND PROCEDURE |
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Proposed rule
| Notice Filed with SOS |
06/15/2021 |
| Rule |
ProposedRuleAttach2021-00376.docx
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| Additional Information |
AddInfoAttach2021-00376.pdf
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| Statutory Authority |
§§ 34 60-102, 34 60-103, 34 60-104.5, 34 60-105, 34-60-106, 34-60-108, 34-60-120, 34-60-121, 34-60-122, 34-60-124, 34-60-127, and 34-60-131, C.R.S. |
| Description of Subjects/Issues |
Pursuant to Rule 529.a, the Oil and Gas Conservation Commission of the State of Colorado (“Commission”), on its own motion, will consider additions and amendments to Commission Rules of Practice and Procedure, 2 C.C.R. 404-1 (“Rules”), 100-Series, 200-Series, 300-Series, 400-Series, 500-Series, 700-Series, 800-Series, and 900-Series as part of its “Financial Assurance” rulemaking.
On April 16, 2019, Governor Polis signed Senate Bill 19-181 into law. Senate Bill 19-181 required the Commission to conduct a rulemaking to update its financial assurance rules. This Financial Assurance Rulemaking fulfills that statutory obligation. Specifically, Senate Bill 19-181 provides that:
The commission shall require every operator to provide assurance that it is financially capable of fulfilling every obligation imposed by this article 60 as specified in rules adopted on or after April 16, 2019. The rule-making must consider: Increasing financial assurance for inactive wells and for wells transferred to a new owner; requiring a financial assurance account, which must remain tied to the well in the event of a transfer of ownership, to be fully funded in the initial years of operation for each new well to cover future costs to plug, reclaim, and remediate the well; and creating a pooled fund to address orphaned wells for which no owner, operator, or responsible party is capable of covering the costs of plugging, reclamation, and remediation.
C.R.S. § 34-60-106(13). |
| Purpose/Objective of Rule |
Pursuant to Rule 529.a, the Oil and Gas Conservation Commission of the State of
Colorado (“Commission”), on its own motion, will consider additions and
amendments to Commission Rules of Practice and Procedure, 2 C.C.R. 404-1
(“Rules”), 100-Series, 200-Series, 300-Series, 400-Series, 500-Series, 700-Series,
800-Series, and 900-Series as part of its “Financial Assurance” rulemaking. On
April 16, 2019, Governor Polis signed Senate Bill 19-181 into law. Senate Bill 19-
181 required the Commission to conduct a rulemaking to update its financial
assurance rules. This Financial Assurance Rulemaking fulfills that statutory
obligation. Specifically, Senate Bill 19-181 provides that:
The commission shall
require every operator to provide assurance that it is financially capable of fulfilling
every obligation imposed by this article 60 as specified in rules adopted on or after
April 16, 2019. The rule-making must consider: Increasing financial assurance for
inactive wells and for wells transferred to a new owner; requiring a financial
assurance account, which must remain tied to the well in the event of a transfer of
ownership, to be fully funded in the initial years of operation for each new well to
cover future costs to plug, reclaim, and remediate the well; and creating a pooled
fund to address orphaned wells for which no owner, operator, or responsible party
is capable of covering the costs of plugging, reclamation, and remediation. C.R.S.
§ 34-60-106(13). |
| Basis And Purpose |
BasisAndPurposeAttachment2021-00376.rtf
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| Submitted in response to issues raised by COLS/OLLS? |
No
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| Is this rule adopted in response to recent legislation? |
Yes
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| Recent legislation bill number |
19-181
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| Hearing Date |
09/21/2021 |
| Hearing Time |
09:00 AM |
| Hearing Location |
Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Ste. 801 Denver, CO 80203 |
| Contact Name |
Mimi Larsen |
| Contact Title |
Hearings and Regulatory Affairs Manager |
| Contact Telephone |
3038942100 |
| Contact email |
mimi.larsen@state.co.us |
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Adopted rule
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