(1) (a) It is declared to be in the public interest and the commission is directed to:
(I) Regulate the development and production of the natural resources of oil and gas in the state of Colorado in a manner that protects public health, safety, and welfare, including protection of the environment and wildlife resources;
(II) Protect the public and private interests against waste in the production and utilization of oil and gas;
(III) Safeguard, protect, and enforce the coequal and correlative rights of owners and producers in a common source or pool of oil and gas to the end that each such owner and producer in a common pool or source of supply of oil and gas may obtain a just and equitable share of production therefrom; and
(IV) Plan and manage oil and gas operations in a manner that balances development with wildlife conservation in recognition of the state's obligation to protect wildlife resources and the hunting, fishing, and recreation traditions they support, which are an important part of Colorado's economy and culture. Pursuant to section 33-1-101, C.R.S., it is the policy of the state of Colorado that wildlife and their environment are to be protected, preserved, enhanced, and managed for the use, benefit, and enjoyment of the people of this state and its visitors.
(b) It is neither the intent nor the purpose of this article 60 to require or permit the proration or distribution of the production of oil and gas among the fields and pools of Colorado on the basis of market demand. It is the intent and purpose of this article 60 to permit each oil and gas pool in Colorado to produce up to its maximum efficient rate of production, subject to the protection of public health, safety, and welfare, the environment, and wildlife resources and the prevention of waste as set forth in section 34-60-106 (2.5) and (3)(a), and subject further to the enforcement and protection of the coequal and correlative rights of the owners and producers of a common source of oil and gas, so that each common owner and producer may obtain a just and equitable share of production from the common source.
(2) It is further declared to be in the public interest to assure that producers and consumers of natural gas are afforded the protection and benefits of those laws and regulations of the United States that affect the price and allocation of natural gas and crude oil, including the federal "Natural Gas Policy Act of 1978", 15 U.S.C. sec. 3301 et seq., as amended, and particularly that the energy and carbon management commission created in section 34-60-104.3
(1) be empowered to exercise such powers and authorities as may be delegated to it by the laws or regulations of the United States, including said "Natural Gas Policy Act of 1978", and, in the exercise of such powers and authorities, to make such rules and to execute such agreements and waivers as are reasonably required to implement such power and authority.
(3) It is further declared to be in the public interest for the commission to implement and administer a program for the permitting and regulation of permanent geologic storage operations in a way that prioritizes:
(a) Contributions toward achieving the state's greenhouse gas emission reduction goals, as set forth in section 25-7-102 (2)(g);
(b) Benefits to the state and global environment by reducing carbon dioxide pollution;
(c) Opportunities to support a just transition and to help retrain workers, particularly workers previously employed in the fossil fuel industry;
(d) Protecting disproportionately impacted communities and advancing environmental justice; and
(e) The safe and responsible use of Colorado's abundant natural resources for the permanent storage of carbon dioxide.
Source: L. 55: p. 656, § 10. CRS 53: § 100-6-22. C.R.S. 1963: § 100-6-22. L. 79: Entire section amended, p. 1319, § 1, effective February 16. L. 94: (1) amended, p. 1978, § 2, effective June 2. L. 2007: (1) amended, p. 1357, § 2, effective May 29; (1) amended, p. 1328, § 1, effective July 1. L. 2019: IP(1)(a), (1)(a)(I), and (1)(b) amended, (SB 19-181), ch. 120, p. 506, § 6, effective April 16. L. 2023: (2) amended, (SB 23-285), ch. 235, p. 1256, § 34, effective July 1. L. 2024: (3) added, (HB 24-1346), ch. 216, p. 1323, § 1, effective May 21.
Editor's note: Amendments to subsection (1) by House Bill 07-1341 and House Bill 07- 1298 were harmonized.
Cross references: For the legislative declaration contained in the 1994 act amending subsection (1), see section 1 of chapter 317, Session Laws of Colorado 1994. For the legislative declaration contained in the 2007 act amending subsection (1), see section 1 of chapter 320, Session Laws of Colorado 2007.
Notes of Decisions
Colo. Oil & Gas Conservation Comm'n v. Martinez, 2019 CO 3 (Colo. 2019).
· cites it 23× “Applicable Provisions of the Act ¶20 Section 34-60-102(1) sets forth the Act's legislative declaration and provides, in pertinent part: (1)(a) It is declared to be in the public interest to: (I) Foster the responsible, balanced development, production, and utilization of the…”
Bd. of Cnty. Commissioners v. Bowen/Edwards Assocs., Inc., 830 P.2d 1045 (Colo. 1992).
· cites it 3× “See section 34-60-102(1), 14 C.R.S. (1984). The county regulations thus appear to be designed to harmonize oil and gas developmental and operational activities with the county’s overall plan for land-use and with the state’s interest in those developmental and operational…”
Martinez v. Colorado Oil & Gas Conservation Comm'n, 2017 COA 37 (Colo. Ct. App. 2017).
· cites it 32× “taking into consideration cost-effectiveness and technical feasibility[]” — demonstrates that the Act calls for the balance that the Commission read into the language of section 34-60-102. However, section 34-60-106(2)(d) supports the conclusion that the Commission has authority…”
Williams Nat. Gas Co. v. Mesa Operating Ltd. P'ship, 778 P.2d 309 (Colo. Ct. App. 1989).
· cites it 2× “Mesa objected, arguing that, since Williams’ interest was based on market demand, a factor the commission was specifically prohibited from considering under § 34-60-102, C.R.S. (1984 Repl.Vol. 14), Williams lacked standing to participate in the proceedings.”
Voss v. Lundvall Bros., Inc., 830 P.2d 1061 (Colo. 1992).
“§ 34-60-102(1), 14 C.R.S. (1984). The Oil and Gas Conservation Act establishes the Oil and Gas Conservation Commission and vests the commission with authority to enforce the provisions of the act, to make and enforce rules and orders pursuant to the act, and to do whatever may…”
Superior Oil Co. v. W. Slope Gas Co., 549 F. Supp. 463 (D. Colo. 1982).
“CRS 1973, as amended, § 34-60-102(2) (Supp.1981). Thus, it has been deemed by the State Legislature that the policy of Colorado regarding the “price and allocation of natural gas” is the policy expressed by Congress in the NGPA.”
City of Fort Collins v. Colorado Oil & Gas Ass'n, 369 P.3d 586 (Colo. 2016).
· cites it 3× “See § 34-60-102(1)Gb); of. Long- *594 mont, T 23 (noting that the record before the court demonstrated that many operators had determined that fracking is necessary to ensure the productive recovery of oil and gas and that for these operators, banning frack-ing would result in…”
Antero Resources Corp. v., 2023 CO 13 (Colo. 2023).
· cites it 2× “Pooling is the consolidation of various mineral interests into one “drilling and spacing unit” so that a single well can efficiently drain a large area of oil and gas with each interest holder in the pool bearing costs and receiving proceeds according to their interest type.”
— Colo. Rev. Stat. § 34-60-102(1) — 7 cases
Colo. Oil & Gas Conservation Comm'n v. Martinez, 2019 CO 3 (Colo. 2019).
“Applicable Provisions of the Act ¶20 Section 34-60-102(1) sets forth the Act's legislative declaration and provides, in pertinent part: (1)(a) It is declared to be in the public interest to: (I) Foster the responsible, balanced development, production, and utilization of the…”
Bd. of Cnty. Commissioners v. Bowen/Edwards Assocs., Inc., 830 P.2d 1045 (Colo. 1992).
“See section 34-60-102(1), 14 C.R.S. (1984). The county regulations thus appear to be designed to harmonize oil and gas developmental and operational activities with the county’s overall plan for land-use and with the state’s interest in those developmental and operational…”
Voss v. Lundvall Bros., Inc., 830 P.2d 1061 (Colo. 1992).
“§ 34-60-102(1), 14 C.R.S. (1984). The Oil and Gas Conservation Act establishes the Oil and Gas Conservation Commission and vests the commission with authority to enforce the provisions of the act, to make and enforce rules and orders pursuant to the act, and to do whatever may…”
City of Fort Collins v. Colorado Oil & Gas Ass'n, 369 P.3d 586 (Colo. 2016).
“See § 34-60-102(1)Gb); of. Long- *594 mont, T 23 (noting that the record before the court demonstrated that many operators had determined that fracking is necessary to ensure the productive recovery of oil and gas and that for these operators, banning frack-ing would result in…”
— Colo. Rev. Stat. § 34-60-102(1)(a)(I) — 5 cases
Colo. Oil & Gas Conservation Comm'n v. Martinez, 2019 CO 3 (Colo. 2019).
“Applicable Provisions of the Act ¶20 Section 34-60-102(1) sets forth the Act's legislative declaration and provides, in pertinent part: (1)(a) It is declared to be in the public interest to: (I) Foster the responsible, balanced development, production, and utilization of the…”
Martinez v. Colorado Oil & Gas Conservation Comm'n, 2017 COA 37 (Colo. Ct. App. 2017).
“taking into consideration cost-effectiveness and technical feasibility[]” — demonstrates that the Act calls for the balance that the Commission read into the language of section 34-60-102. However, section 34-60-106(2)(d) supports the conclusion that the Commission has authority…”
— Colo. Rev. Stat. § 34-60-102(1)(a)(III) — 1 case
Antero Resources Corp. v., 2023 CO 13 (Colo. 2023).
“Pooling is the consolidation of various mineral interests into one “drilling and spacing unit” so that a single well can efficiently drain a large area of oil and gas with each interest holder in the pool bearing costs and receiving proceeds according to their interest type.”
— Colo. Rev. Stat. § 34-60-102(1)(b) — 4 cases
Colo. Oil & Gas Conservation Comm'n v. Martinez, 2019 CO 3 (Colo. 2019).
“Applicable Provisions of the Act ¶20 Section 34-60-102(1) sets forth the Act's legislative declaration and provides, in pertinent part: (1)(a) It is declared to be in the public interest to: (I) Foster the responsible, balanced development, production, and utilization of the…”
City of Fort Collins v. Colorado Oil & Gas Ass'n, 369 P.3d 586 (Colo. 2016).
“See § 34-60-102(1)Gb); of. Long- *594 mont, T 23 (noting that the record before the court demonstrated that many operators had determined that fracking is necessary to ensure the productive recovery of oil and gas and that for these operators, banning frack-ing would result in…”
— Colo. Rev. Stat. § 34-60-102(2) — 3 cases
Bd. of Cnty. Commissioners v. Bowen/Edwards Assocs., Inc., 830 P.2d 1045 (Colo. 1992).
“See section 34-60-102(1), 14 C.R.S. (1984). The county regulations thus appear to be designed to harmonize oil and gas developmental and operational activities with the county’s overall plan for land-use and with the state’s interest in those developmental and operational…”
Superior Oil Co. v. W. Slope Gas Co., 549 F. Supp. 463 (D. Colo. 1982).
“CRS 1973, as amended, § 34-60-102(2) (Supp.1981). Thus, it has been deemed by the State Legislature that the policy of Colorado regarding the “price and allocation of natural gas” is the policy expressed by Congress in the NGPA.”
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