SB 18-063

Senate Bill 18-063 in Colorado sets stricter financial assurance requirements for oil and gas companies. It mandates that these companies must provide substantial proof that they have enough money set aside to cover all potential costs if they fail to comply with environmental regulations. Additionally, the bill introduces reclamation standards similar to those used for hard rock mining, which are aimed at ensuring proper cleanup of sites after operations end. This bill has been signed into law and will affect oil and gas operators in Colorado by increasing their financial obligations and regulatory compliance requirements.

Official Summary

Section 2 of the bill prohibits the Colorado oil and gas conservation commission from accepting any of the available types of financial assurance unless the operator demonstrates, by clear and convincing evidence, that the financial assurance will be sufficient to finance all reasonably foreseeable expenses related to ensuring compliance with the oil and gas law if the operator fails to meet its compliance obligations. The commission shall calculate the total financial assurance required by multiplying the number of oil and gas facilities subject to the application by the projected cost to finance every reasonably foreseeable eventuality related to ensuring compliance with regard to each type of facility. Section 4 adds reclamation requirements that are adapted from the reclamation requirements applicable to hard rock mines.(Note: This summary applies to this bill as introduced.) , Read More