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11:12:10 AM |
Senator Marble, prime-sponsor, discussed the provisions of
Senate Bill 18-230 cocnerning drilling unit pooling orders. This bill permits
the Colorado Oil and Gas Conservation Commission (COGCC) to authorize more
than one drilling unit in a pooling order for oil and gas resources. Drilling
units may cover any pool, or a portion of a pool. A statutory pooling
order must specify that a nonconsenting owner is immune from liability
for costs arising from spills, releases, damage, or injury resulting from
oil and gas operations on the drilling unit. Under current law, a
nonconsenting owner in a forced pooling situation is required to pay consenting
owners 200 percent of the nonconsenting owner's proportionate share of
the cost if drilling and operating the well. This bill limits this
required cost recovery to wells 5,000 feet or less in depth, and increases
the required compensation to 300 percent for wells greater than 5,000 feet
in depth, and for horizontal wells. Currently, a pooling order may
only be made after all mineral rights owners have been given a reasonable
offer to lease their rights to an oil and gas developer. The bill
specifies that the leasing offer must be given at least 60 days before
the pooling hearing, and include a copy of or link to a brochure supplied
by the COGCC that describes pooling procedures and the mineral owner's
legal options.
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