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Code of Colorado Regulations eDocket
Details of Tracking Number
2022-00243
CCR details
| Tracking Number |
2022-00243 |
| 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 |
05/18/2022 |
| Rule |
ProposedRuleAttach2022-00243.docx
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| Additional Information |
AddInfoAttach2022-00243.pdf
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| Statutory Authority |
C.R.S. § 34-60-105(1), C.R.S. § 34-60-106(13) and C.R.S. § 34-60-108 |
| Description of Subjects/Issues |
On May 10, 2022, the Colorado Legislature adopted S.B., 22-198, the “Orphaned Oil and Gas Well Enterprise” bill. SB-22-198 creates an orphaned wells mitigation enterprise. SB22-198 provides that on or before August 1, 2022, and on or before April 30, 2023 and on or before April 30 of each year thereafter, each oil and gas operator in the State of Colorado will pay “a mitigation fee to the enterprise for each well of an operator that has been spud but is not yet plugged and abandoned.” SB22-198 at p. 9, lines 16-18. SB22-198 sets the initial mitigation fee and provides that the enterprise board will consider whether to adjust future fees. SB22-198 at p. 9, 11. 2-13. SB22-198 further directs the Commission to promulgate rules implementing the assessment of the mitigation fee. SB22-198 at p. 11, lines 9-11.
Rule 205.c. and SB22-198 are in conflict in two main ways. First, Rule 205.c.(2) provides the annual registration fee must be paid to the Commission, while SB22-198 provides the mitigation fee must be paid to the enterprise. Second, Rule 205.c.(3) does not recognize the Enterprise Board’s authority to change the dollar amount of the fee. The purpose of the Orphan Well Mitigation Fee Rulemaking is to make Rule 205.c. consistent with SB22-198. |
| Purpose/Objective of Rule |
On May 10, 2022, the Colorado Legislature adopted S.B., 22-198, the “Orphaned
Oil and Gas Well Enterprise” bill. SB-22-198 creates an orphaned wells mitigation
enterprise. SB22-198 provides that on or before August 1, 2022, and on or before
April 30, 2023 and on or before April 30 of each year thereafter, each oil and gas
operator in the State of Colorado will pay “a mitigation fee to the enterprise for
each well of an operator that has been spud but is not yet plugged and
abandoned.” SB22-198 at p. 9, lines 16-18. SB22-198 sets the initial mitigation fee
and provides that the enterprise board will consider whether to adjust future fees.
SB22-198 at p. 9, 11. 2-13. SB22-198 further directs the Commission to
promulgate rules implementing the assessment of the mitigation fee. SB22-198 at
p. 11, lines 9-11.
Rule 205.c. and SB22-198 are in conflict in two main ways. First,
Rule 205.c.(2) provides the annual registration fee must be paid to the
Commission, while SB22-198 provides the mitigation fee must be paid to the
enterprise. Second, Rule 205.c.(3) does not recognize the Enterprise Board’s
authority to change the dollar amount of the fee. The purpose of the Orphan Well
Mitigation Fee Rulemaking is to make Rule 205.c. consistent with SB22-198. |
| Basis And Purpose |
BasisAndPurposeAttachment2022-00243.pdf
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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 |
22-198
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| Hearing Date |
06/30/2022 |
| 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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