2023 Colorado Revised Statutes › Title 34 - MINERAL RESOURCES (§§ 34-1-100.5 — 34-70-101) › OIL AND NATURAL GAS (§§ 34-60-101 — 34-70-101) › CONSERVATION AND REGULATION (§§ 34-60-101 — 34-64-108) › Article 60 - OIL AND GAS CONSERVATION (§§ 34-60-101 — 34-60-143) › Section 34-60-124 - [Effective Until 8/7/2024] Energy and carbon management cash fund - definitions - repeal

(1)
The state treasurer shall credit the following money to the fund:
(a)
The revenues from the surcharge imposed by the commission pursuant to section
34-60-122 (1)(a)
;
(b)
Moneys reimbursed to or recovered by the commission in payment for fund expenditures;
(c)
Any moneys appropriated to such fund by the general assembly;
(d)
Any moneys granted to the commission from any federal agency for the purposes outlined under subsection (4) of this section;
(e)
Prepayments by operators, in situations where a responsible party cannot be identified, as a credit against the surcharge imposed by section
34-60-122 (1)(a)
, whether in cash or through the provision of services or equipment, in order that the commission may conduct the activities provided for in subsection (4) of this section;
(f)
Money recovered from the sale of salvaged equipment, as provided for in subsection (6)(c) of this section; and
(g)
Money credited to the fund pursuant to sections
34-64-108 (4)
and
37-90.5-106 (4)
.
(2)
The money in the fund does not revert to the general fund at the end of any fiscal year.
(3)
The money in the fund is subject to annual appropriation by the general assembly; except that money deposited in the fund constituting forfeited security or other financial assurance provided by energy and carbon management operators in accordance with section
34-60-106
(3.5), (9)(c)(IV)(A), and (13) is continuously appropriated to the commission for the purpose of fulfilling obligations under this article 60 upon which an energy and carbon management operator has defaulted.
(4)
The fund may be expended:
(a)
By the commission, or by the director at the commission's direction, prior to, during, or after the conduct of any operations subject to the authority of the commission to:
(I)
Investigate, prevent, monitor, or mitigate conditions that threaten to cause, or that actually cause, a significant adverse environmental impact on any air, water, soil, or biological resource;
(II)
Gather background or baseline data on any air, water, soil, or biological resource that the commission determines may be so impacted by the conduct of energy and carbon management operations; and
(III)
Investigate alleged violations of any provision of this article, any rule or order of the commission, or any permit where the alleged violation threatens to cause or actually causes a significant adverse environmental impact;
(b)
For purposes authorized by section
23-41-114 (4)
;
(c)
Repealed.
(d)
(I)
By the commission and Colorado state university, established in section
23-31-101
, for the purposes of the study conducted pursuant to section
34-60-136
;
(II)
This subsection (4)(d) is repealed, effective September 1, 2025;
(e)
(I)
To conduct the studies described in sections
34-60-137
,
34-60-138
, and
37-90.5-110
;
(II)
This subsection (4)(e) is repealed, effective July 1, 2025;
(f)
To create and maintain the website described in section
34-60-106 (22)
;
(g)
By the commission for the purpose of information technology initiatives; and
(h)
By the commission to fund the community liaison positions appointed pursuant to section 34-60-104.5 (2)(d)(III).
(5)
The director of the commission shall prepare an annual report for the executive director of the department of natural resources and the governor regarding the operations of and disbursements from the fund.
(6)
For the purposes provided for in subsection (4) of this section, the commission is authorized to:
(a)
Enter onto any lands or waters, public or private; and, except in emergency situations, the commission shall provide reasonable notice prior to such entry in order to allow a surface owner, local government designee, energy and carbon management operator, or responsible party to be present and to obtain duplicate samples and copies of analytical reports;
(b)
Require responsible parties to conduct investigation or monitoring activities and to provide the commission with the results;
(c)
Confiscate and sell for salvage any equipment abandoned by a responsible party at a location where the conduct of energy and carbon management operations has resulted in a significant adverse environmental impact; except that this authority is subject to and secondary to any valid liens, security interests, or other legal interests in such equipment asserted by any taxing authority or by any creditor of the responsible party.
(7)
If the commission determines that mitigation of a significant adverse environmental impact on any air, water, soil, or biological resource is necessary as a result of the conduct of energy and carbon management operations, the commission shall issue an order requiring the responsible party to perform the mitigation. If the responsible party cannot be identified or refuses to comply with the order, the commission shall authorize the necessary expenditures from the fund. The commission shall bring suit in the second judicial district to recover the expenditures from any responsible party that refuses to perform the mitigation or any responsible party that is subsequently identified, the action to be brought within a two-year period after the date that final expenditures were authorized. Money recovered as a result of the suit must first be applied to the commission's legal costs and attorney fees and must then be credited to the fund.
(8)
As used in this section:
(a)
"Fund" means the energy and carbon management cash fund created in section
34-60-122 (5)
.
(b)
(I)
"Responsible party" means any person who conducts an energy and carbon management operation in a manner that violates any then-applicable provision of this article 60, or of any rule or order of the commission, or of any permit that threatens to cause, or actually causes, a significant adverse environmental impact to any air, water, soil, or biological resource. "Responsible party" includes any person who disposes of any other waste by mixing it with exploration and production waste that threatens to cause, or actually causes, a significant adverse environmental impact to any air, water, soil, or biological resource.
(II)
Except as otherwise provided in subsection (8)(b)(I) of this section, "responsible party" does not include any landowner, whether of the surface estate, mineral estate, or both, who does not engage in, or assume responsibility for, the conduct of energy and carbon management operations.
(9)
For purposes of this section, any person who is found to be a responsible party shall be deemed to have consented to the jurisdiction of the commission and the courts of the state of Colorado. Each responsible party shall be liable only for a proportionate share of any costs imposed under this section and shall not be held jointly and severally liable for such costs.
(10)
The commission or the director of the commission shall expend the money in the fund for the purposes of administering the provisions of this article 60 and sections
34-64-108
and
37-90.5-106 (1)(b)
, including staffing, overhead, enforcement, and the payment of environmental responses costs, and for paying expenses in connection with the interstate oil and gas compact commission.
Amended by 2024 Ch. 216,§ 8, eff. 5/21/2024.
Amended by 2024 Ch. 183,§ 13, eff. 5/16/2024, app. to enforcement actions commenced by the division of administration in the department of public health and environment and the energy and carbon management commission on or after 5/16/2024.
Amended by 2023 Ch. 235,§ 18, eff. 7/1/2023.
Amended by 2023 Ch. 219,§ 3, eff. 5/18/2023.
L. 90: Entire section added, p. 1546, § 3, effective May 8. L. 91: (4) amended, p. 1416, § 6, effective April 19. L. 94: Entire section amended, p. 1985, § 11, effective June 2. L. 2000: (3) amended, p. 826, § 1, effective May 24. L. 2002: (5) amended, p. 878, § 8, effective August 7. L. 2005: IP(1), (1)(a), (1)(e), (2), (3), and (4) amended and (10) added, p. 732, § 2, effective July 1; (4) amended, p. 541, § 2, effective July 1. L. 2007: IP(4) amended and (4)(c) added, p. 1587, § 2, effective May 31. L. 2011: (4)(c) repealed, (HB 11 -1303), ch. 264, p. 1173, §86, effective August 10.
Amendments to subsection (4) by House Bill 05-1285 and Senate Bill 05-066 were harmonized.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
For the legislative declaration contained in the 1994 act amending this section, see section 1 of chapter 317, Session Laws of Colorado 1994.