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Legislative Year: 2022 Change

Bill Detail: SB22-198

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Title Orphaned Oil And Gas Wells Enterprise
Status Governor Signed (06/02/2022)
Bill Subjects
  • Natural Resources & Environment
House Sponsors M. Weissman (D)
P. Will (R)
Senate Sponsors R. Scott (R)
S. Fenberg (D)
House Committee Finance
Senate Committee Finance
Date Introduced 04/07/2022

The bill creates the orphaned wells mitigation enterprise
(enterprise) in the department of natural resources for the purpose of:
  • Plugging, reclaiming, and remediating orphaned wells
located in the state for which no owner or operator can be
found or for which the owner or operator is unwilling or

unable to pay the costs of plugging and abandoning the
  • Ensuring that the costs associated with the plugging,
reclaiming, and remediating of orphaned wells are borne by
operators in the form of mitigation fees;
  • Determining the amounts of mitigation fees; and
  • Imposing and collecting mitigation fees.
On or before August 1, 2022; on or before April 30, 2023; and on
or before April 30 each year thereafter, each operator shall pay a
mitigation fee to the enterprise for each well that has been spud but is not
yet plugged and abandoned, in accordance with rules promulgated by the
Colorado oil and gas conservation commission (commission), in the
following amounts:
  • For operators with production that is equal to or less than
a threshold to be determined by rules of the commission,
$125 for each well; or
  • For operators with production that exceeds a threshold to
be determined by rules of the commission, $225 for each
Money collected as mitigation fees is credited to the orphaned
wells mitigation enterprise cash fund (fund), which is created in the bill.
The bill also creates the orphaned wells mitigation enterprise board
(enterprise board) and requires the enterprise board to administer the
enterprise and, at least annually, to:
  • Consider whether the mitigation fee amounts should be
increased or reduced, based on current circumstances and
reasonably anticipated future expenditures from the fund;
  • If the enterprise board determines that an increase or
reduction of the mitigation fee amounts is warranted, adjust
the mitigation fee amounts; and
  • Advise the commission of the outcome of the enterprise
board's deliberations.
The commission may promulgate rules as necessary to implement
the enterprise.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (04/18/2022) (most recent)  
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