Colorado HB 17-1124: Local Government Liable Fracking Ban Oil And Gas Moratorium

Bill Text

First Regular Session
Seventy-first General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 17-0484.01 Thomas Morris x4218 HOUSE BILL 17-1124
House Committees Senate Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACT
CONCERNING A REQUIREMENT THAT A LOCAL GOVERNMENT THAT101
INTERFERES WITH OIL AND GAS OPERATIONS COMPENSATE102
PERSONS DAMAGED BY THE INTERFERENCE.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/.)
The bill specifies that a local government that bans hydraulic
fracturing of an oil and gas well is liable to the mineral interest owner for
the value of the mineral interest and that a local government that enacts
a moratorium on oil and gas activities shall compensate oil and gas
operators, mineral lessees, and royalty owners for all costs, damages, and
HOUSE SPONSORSHIP
Buck,
SENATE SPONSORSHIP
Neville T.,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.

losses of fair market value associated with the moratorium.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 29-20-204.5 as2
follows:3
29-20-204.5. Compensation required - hydraulic fracturing4
ban - oil and gas moratorium. A LOCAL GOVERNMENT THAT ADOPTS OR5
ENFORCES AN ORDINANCE, RESOLUTION, OR OTHER POLICY OR6
REGULATION THAT PROHIBITS AN OIL AND GAS OPERATOR, AS THAT TERM7
IS DEFINED IN SECTION 34-60-103 (6.8), FROM CONDUCTING A HYDRAULIC8
FRACTURING TREATMENT ON AN OIL AND GAS WELL THAT IS OR, BUT FOR9
THE PROHIBITION, WOULD BE LOCATED WITHIN THE LOCAL GOVERNMENT'S10
JURISDICTION IS LIABLE TO THE MINERAL INTEREST OWNER FOR THE VALUE11
OF THE MINERAL INTEREST NOT RECEIVED DUE TO THE PROHIBITION. A12
LOCAL GOVERNMENT THAT ENACTS A MORATORIUM OF ANY DURATION ON13
OIL AND GAS ACTIVITIES IN ITS JURISDICTION SHALL COMPENSATE OIL AND14
GAS OPERATORS, MINERAL LESSEES, AND ROYALTY OWNERS FOR ALL15
COSTS, DAMAGES, AND LOSSES OF FAIR MARKET VALUE ASSOCIATED IN16
ANY RESPECT WITH IMPOSITION OF THE MORATORIUM, INCLUDING DELAY17
OR LOSS OF ROYALTY PAYMENTS, DELAY OR LOSS IN DEVELOPING OIL AND18
GAS RESOURCES, OR DELAY OR LOSS IN REALIZING THE VALUE OF MINERAL19
LEASES.20
SECTION 2. Act subject to petition - effective date. This act21
takes effect at 12:01 a.m. on the day following the expiration of the22
ninety-day period after final adjournment of the general assembly (August23
9, 2017, if adjournment sine die is on May 10, 2017); except that, if a24
referendum petition is filed pursuant to section 1 (3) of article V of the25
HB17-1124-2-

state constitution against this act or an item, section, or part of this act1
within such period, then the act, item, section, or part will not take effect2
unless approved by the people at the general election to be held in3
November 2018 and, in such case, will take effect on the date of the4
official declaration of the vote thereon by the governor.5
HB17-1124-3-