National Association of Royalty Owners
Legislative Update
February 5, 2012
BILL# SPONSORS
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A M E N D E D
TITLE
S T R I K E T H R O U G H
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BILL NARRATIVE
HISTORY
POSITION
K I L L E D
HB12-1164
Looper
Require
Disclosure
Severed
Mineral Estate
HB12-1173
Wilson
Protect Pub
Health Oil &
Gas Hydraulic
Fracturing
Beginning in 2013, listing contracts, contracts of sale,
and sellers' property disclosures for real estate must
include a notice regarding whether the mineral estate
has been severed from the surface estate and
a surface owner's right of first refusal to purchase the
mineral estate when the taxes on the mineral estate
have not been paid. The seller must provide to the
buyer a copy of each instrument that severed the
mineral estate, the name and contact information of
the owner of the mineral estate, and the name and
contact information of any known current lessees of
the mineral estate, if that information is available. The
seller must also indicate whether mineral exploration
or development on the real property is or will be using
water that would otherwise be available to the buyer
as an incident of ownership of the real property.
On or after July 1, 2014, an oil and gas operator may
not use, store, or dispose of hydraulic fracturing fluids
or flow-back from a hydraulic fracturing treatment in
an open pit and must use a closed-loop system for
hydraulic fracturing treatments. However, the oil and
gas conservation commission may approve the use of
open pits where the commission determines there is
no risk to occupied structures or water sources, and
operators can use open pits if the fluids are clean
enough to discharge directly into state waters without
a permit.
1
Chuck N. Malick
303.277.9246
cnmalick@yahoo.com
01/20/2012 Introduced In
House - Assigned to Judiciary
Monitor
01/20/2012 Introduced In
House - Assigned to Local
Government
Monitor
National Association of Royalty Owners
Legislative Update
February 5, 2012
BILL# SPONSORS
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A M E N D E D
TITLE
S T R I K E T H R O U G H
HB12-1176
Ryden
SB12-031
White
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BILL NARRATIVE
HISTORY
POSITION
K I L L E D
Federal Mineral
Lease Districts
Section 1 of the bill specifies that the Colorado oil and
gas conservation commission has authority to require:
! Increased setbacks from wells that will be treated
with
hydraulic fracturing. The commission must require
setbacks of at least 1,000 feet from any school or
residence but allow a surface owner who is not
located in an urban area to request a shorter setback
than would otherwise apply.
! That best management practices for new
technologies be established by rule prior to use of the
new technologies.
Section 2 includes the owners of land overlying that
portion of a geologic formation within which
horizontal hydraulic fracturing is conducted within the
term "surface owner".
01/20/2012 Introduced In
House - Assigned to Local
Government
Monitor
The bill changes the laws regarding the formation of a
federal mineral lease district, including changes to the
district's and district board of director's powers, in
order for the district to be more autonomous from
the county creating the district. The bill specifies that a
federal mineral lease district is an independent body
politic, separate and distinct from the county that
creates it. Powers of the district and the board of
directors are further enumerated. The bill also
2
Chuck N. Malick
303.277.9246
cnmalick@yahoo.com
01/11/2012 Introduced In
Senate - Assigned to
Agriculture, Natural
Resources, and Energy
02/02/2012 Senate
Committee on Agriculture,
Natural Resources, and
Energy Refer Unamended Consent Calendar to Senate
Monitor
National Association of Royalty Owners
Legislative Update
February 5, 2012
BILL# SPONSORS
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A M E N D E D
SB12-063
TITLE
S T R I K E T H R O U G H
Brophy
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BILL NARRATIVE
HISTORY
POSITION
K I L L E D
Sev Tax
Revenues For
Rural Insts Of
Higher Ed
establishes how a district may be dissolved and
Committee of the Whole
clarifies the membership and terms of the board of
directors. The bill specifies that the district may
reserve all or a portion of the federal mineral lease
funding for use in subsequent years in order to
maximize the usefulness of the direct or indirect
distribution of funding for the areas socially or
economically impacted by the development,
processing, or energy conversion of fuels and minerals
leased under a federal act.
The bill establishes a $100 million cap, as adjusted
01/13/2012 Introduced In
annually for inflation, on the current allocation of
Senate - Assigned to Finance
severance tax revenue. Any revenue received above
the $100 million cap, as adjusted annually for inflation,
is first made available to any political subdivisions
socially or economically impacted by the development,
processing, or energy conversion of minerals and
mineral fuels subject to taxation, but only for
a serious need. Such political subdivision must make a
grant request at a joint committee hearing of the
house local government committee and the senate
local government and energy committee, or any
successor
committees. Whatever moneys remain after the joint
committee awards grants to those particular political
subdivisions is to be transferred to the rural higher
education cash fund and annually appropriated to
3
Chuck N. Malick
303.277.9246
cnmalick@yahoo.com
Monitor
National Association of Royalty Owners
Legislative Update
February 5, 2012
BILL# SPONSORS
*
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A M E N D E D
SB12-107
TITLE
S T R I K E T H R O U G H
Carroll
Wilson
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BILL NARRATIVE
HISTORY
POSITION
K I L L E D
Protect Water
Oil Gas
Operations
Fracking
rural
institutions of higher education on a proportionate
basis. The bill requires that each rural institution of
higher education set aside at least 50% of each annual
appropriation in a separate trust account in order to
build an endowment fund to be used by the rural
institution of higher education.
The bill enacts the "Water Rights Protection Act",
under which the Colorado oil and gas conservation
commission (commission) must establish rules for:
(See bill)
4
Chuck N. Malick
303.277.9246
cnmalick@yahoo.com
01/31/2012 Introduced In
Monitor
Senate - Assigned to Judiciary