SB 24-159

Senate Bill 24-159, which has been signed into law, aims to reduce the number of new oil and gas permits issued in Colorado by requiring the Energy and Carbon Management Commission to stop issuing them before January 1, 2030. The bill also mandates that any permit issued after July 1, 2024, must include a condition for operations to begin by December 31, 2032. Additionally, it expands environmental mitigation requirements and holds current or prior owners and operators responsible for the costs of addressing any adverse environmental impacts caused by their activities. This law affects oil and gas companies operating in Colorado and aims to protect the environment while also considering the economic impact on workers through future recommendations from the Office of the Future of Work.

Official Summary

On or before July 1, 2027, section 2 of the bill requires the energy and carbon management commission (commission) to adopt rules (permitting rules) to cease issuing new oil and gas permits (permits) before January 1, 2030, which rules must include certain reductions in the total number of oil and gas wells covered by new permits issued in 2028 and 2029. Section 2 also requires the commission to include as a condition in any permit issued after July 1, 2024, that certain operations must commence on or before December 31, 2032, as to each oil and gas well included in the permit. If the commission determines that mitigation of adverse environmental impacts is necessary as a result of oil and gas operations, current law requires the commission to issue an order requiring a responsible party to perform the mitigation. If the responsible party refuses to perform the mitigation or is identified after the state provides funds for the mitigation, the commission must sue the responsible party to recover the costs of the mitigation. Section 3 changes current law by: Expanding mitigation to include mitigation of adverse environmental impacts as a result of any activity regulated by the commission; Adding a prior owner or operator to the definition of "responsible party"; and Allowing a current or prior owner or operator to be held jointly and severally liable for the costs of any mitigation. Section 4 requires the office of future of work to present recommendations as a result of the adoption of the permitting rules to the general assembly in January 2028.(Note: This summary applies to this bill as introduced.)