E7ED252A250BAF56872583B6005E0E85 Hearing Summary

Senator Fenberg, bill sponsor, introduced Senate Bill 19-181.  The bill addresses public welfare and the oil and gas industry by altering the makeup of its regulatory commission (the Colorado Oil and Gas Conservation Commission, or COGCC), allowing local communities to monitor and regulate oil and gas extraction activities in their jurisdictions, and allowing local governments to make regulatory decisions related to air quality.  Senator Fenberg further described the fiscal impacts of the bill, and introduced three amendments.  Amendment L.015 (Attachment A) requires the director to publish permitting criteria within 30 days of passage of the bill.  Amendment L.025 (Attachment B) directs the commission to research changes to professionalize the commission.  Amendment L.026 (Attachment C) makes technical adjustments for clarity.

Senator Court made a procedural announcement.  Committee discussion ensued.

Senator Fenberg responded to questions from the committee regarding the bill's impact on drilling moratoria and how local governments are involved in the permitting process.

Jeff Robbins, COGCC, testified in support of the bill.  Doug Vilsack, Department of Natural Resources (DNR), testified in support of the bill.  Bill Levine, DNR, testified in support of the bill.  Mr. Levine responded to a question from the committee regarding Colorado Parks and Wildlife funding.

Dan Haley, Colorado Oil and Gas Association (COGA), testified against the bill.  Jim Cole, COGA, testified against the bill.  Gregory Patton, Great Western Oil and Gas, testified against the bill.  Mr. Haley responded to a question from the committee regarding severance tax revenue. Mr. Cole responded to questions from the committee regarding other public revenues derived from the oil and gas industry and impacts of the bill on those revenues.  Mr. Patton responded to questions from the committee regarding the bill's impact on oil and gas operations and its employees.

Senator Fenberg commented on the bill's fiscal note.  Mr. Patton responded to questions from the bill sponsor regarding his testimony. Senator Fenberg responded to questions from the committee regarding permitting delays.

Mr. Haley responded to questions from the committee regarding worst-case job loss scenarios and the capacity of the commission.  Mr. Patton responded to a question from the committee regarding cooperation with local governments.  Mr. Cole and Mr. Haley responded to a question on decade-scale impacts on industry.

Connie Beach, Front Range Residents for Environment, Safety, and Health, testified in support of the bill.  Matt Samelson, representing himself, testified in support of the bill.  Kevin Lynch, representing himself, testified in support of the bill.

Mr. Samelson responded to questions from the committee regarding severance tax revenues and property values.

Kathie Barstnar, NAIOP, the Commercial Real Estate Development Association, testified against the bill.  Kent King, representing himself, testified against the bill.  Buz Koelbel, Koelbel and Company, testified against the bill.

Mr. Koelbel responded to questions from the committee regarding local government agency.  Mr. King and Mr. Koelbel responded to questions about asset valuation.

Garry Kaufman, Colorado Department of Public Health and Environment, testified in support of the bill.  Kate Merlin, representing herself, testified in support of the bill.  Andrew Forkes-Gudmundson, Citizens for a Healthy Community, testified in support of the bill.  Gina Hardin, 350 Colorado, testified in support of the bill.

Ms. Merlin responded to questions from the committee regarding her testimony.  Mr. Kaufman responded to questions from the committee regarding air pollution in Colorado and the impact of the oil and gas industry.

Blake Hill, Extraction Oil & Gas, testified against the bill.  Simon Lomax, Vital for Colorado, testified against the bill.  Grant Nelson, International Council of Shopping Centers and NAIOP, testified against the bill.

Mr. Nelson, Mr. Hill, and Mr. Lomax responded to questions from the committee regarding uncertainty in the real estate market, the economic effect of the bill, and rules development.

Senator Todd and Senator Court announced that the committee was going to recess so that the Senate Education Committee could meet, after which the Senate Finance Committee would resume.

Nicole Johnston, representing herself, testified in support of the bill.  Heidi Henkel, representing herself, testified in support of the bill.  Jean Lim, representing herself, testified in support of the bill.  Sandy Toland, Be the Change USA, testified in support of the bill.

Ms. Lim responded to questions from the committee regarding mineral rights.

Barbara Kirkmeyer, Weld County, testified against the bill.  Brenda Dones, Weld County Assessor's Office, testified against the bill and provided a copy of her prepared testimony (Attachment D).  Rich Werner, Upstate Colorado Economic Development, testified against the bill.

Ms. Kirkmeyer and Ms. Dones responded to questions from the committee regarding their testimonies.

The committee recessed.

The committee reconvened for announcements from the chair, and recessed again.

The committee reconvened.

Ms. Kirkmeyer, Ms. Dones, and Mr. Werner returned.  Ms. Kirkmeyer responded to a question from the committee regarding local government impacts.  A discussion ensued.  Ms. Kirkmeyer responded to a question from the committee regarding permitting delays.

Devon Reynolds, representing herself, testified in support of the bill.

Ms. Kirkmeyer responded to a question from the committee regarding Weld County's experience with oil and gas permitting.  Mr. Werner responded to questions regarding the economic impact of the oil and gas industry.  Ms. Dones responded to a question from the committee regarding assessments impacted by changes in the incidence of the oil and gas industry.  Ms. Kirkmeyer responded to questions from the committee regarding ad velorum taxes.  Ms. Kirkmeyer responded to questions from the committee regarding the extent of oil and gas revenues.  Mr. Werner responded to a question from the committee regarding the fiscal impact of oil and gas producers leaving the state.

Gayleen Castriotta, City and County of Broomfield, testified in support of the bill.  Ms. Castriotta distributed a handout (Attachment E). Chris Brown, Common Sense Policy Roundtable, gave neutral testimony on the bill.  Lizzy Lario, representing herself, testified in support of the bill.

Mr. Brown responded to questions from the committee regarding his testimony and the economic impact of climate change on Colorado.  Ms. Lario and Ms. Castriotta responded to questions from the committee regarding the sale of mineral rights.

Senator Lundeen distributed a written testimony from Robert Boswell, Laramie Energy, against the bill (Attachment F).

Travis Vitek, 6G Wellhead, testified against the bill.  Carla Neal, representing herself, testified against the bill.  Richard Orf, Associated Governments of Northwest Colorado, testified against the bill.

Elizabeth Hudetz, Be the Change USA, testified in support of the bill.  Susan Noble, North Range Concerned Citizens, testified in support of the bill.  Wes Wilson, Be the Change USA, testified in support of the bill.

Mr. Wilson responded to a question from the committee regarding natural gas flaring.

Bill Skewes, Colorado Chamber of Commerce, testified against the bill.  Ryan Zorn, representing himself, testified against the bill.  Senator Woodward read the written testimony of Ted Leighty, Colorado Association of Home Builders, against the bill (Attachment G).

Mr. Zorn responded to a question from the committee regarding his testimony.

Neal Shaw, representing himself, testified in support of the bill.  Brad Gibson, representing himself, testified in support of the bill.  Abbey Pizel, Colorado Fiscal Institute, testified in support of the bill.

Mr. Shaw responded to a question from the committee.

Sandra Solin, Northern Colorado Legislative Alliance, testified against the bill.  Jimmy Henderson, SRC Energy, testified against the bill.

Mr. Henderson responded to a question from the committee regarding capital investment in Colorado.

Megan Wilder, representing herself, testified in support of the bill.  Phil Doe, Be the Change USA, testified in support of the bill.  Gary Norton, representing himself, testified in support of the bill.

Mr. Doe responded to questions from the committee regarding bonding and orphan wells.

Barbara Mills-Bria, Be the Change USA, testified in support of the bill.  Gail Dubas, representing herself, testified in support of the bill.  Tim Howard, representing himself, testified in support of the bill.

Mr. Howard responded to questions from the committee about the impact of the regulatory environment on capital flows and oil production.

Patty Sullivan, representing herself, testified in support of the bill.  Ann Marie Cleary read a written testimony in support of the bill on behalf of Laura Frankowiecz.  Margaret Fuhr, representing herself, testified in support of the bill.  Kristi Douglas, representing herself, testified in support of the bill.

Ms. Sullivan responded to a clarifying question from the committee.

Senator Fenberg returned to describe amendment L.015.

Senator Fenberg described amendment L.025.

Senator Fenberg described amendment L.026.

Senator Woodward introduced amendment L.023 (Attachment H).  The bill sponsor made comments on the amendment.  Committee discussion ensued.

Senator Woodward introduced amendment L.024 (Attachment I). The bill sponsor commented on the amendment. Discussion ensued.

Senator Woodward discussed a conceptual amendment for a petition clause.  The bill sponsor responded to the proposal.  Committee discussion ensued.  Senator Woodward did not move the conceptual amendment.