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 34-60-134 - Reporting of water used in oil and gas operations - cumulative reporting - definitions - rules - repeal

(1)
Definitions.
As used in this section and in section
34-60-135
, unless the context otherwise requires:
(a)
"Consortium" means the Colorado produced water consortium created in section
34-60-135 (2)(a)
.
(b)
[Repealed]
(c)
(I)
"Produced water" means water, including the water's mineral and chemical components, in or introduced to a geological formation, that is coproduced with oil or natural gas.
(II)
"Produced water" includes flowback water, excluding proppants returned to the surface.
(d)
"Recycled or reused produced water" means produced water that is reconditioned into a reusable form or that is reused without reconditioning.
(2)
Well reporting - rules.
Beginning September 1, 2023, operators shall report to the commission on a monthly basis, in a manner that provides for concurrent reporting with required production reporting, for each oil and gas well:
(a)
The volume, expressed in barrels, of all fresh water used downhole;
(b)
The volume, expressed in barrels, of all recycled or reused produced water used downhole;
(c)
The volume, expressed in barrels, of all produced water that is produced from the well and the volume, expressed in barrels, of the produced water removed from the oil and gas location for disposal, including:
(I)
The disposal method, as defined by the commission by rule; and
(II)
The disposal location, including facility identification, if applicable; and
(d)
The volume, expressed in barrels, of all produced water that is produced from the well and:
(I)
Recycled or reused in another well at the same oil and gas location; and
(II)
Removed from the oil and gas location for recycling or reuse in oil and gas operations at a different oil and gas location, including for use by another operator.
(3)
Oil and gas location reporting - rules.
(a)
Beginning January 1, 2024, an operator shall report to the commission, on a quarterly basis, for each oil and gas location at which the operator conducted oil and gas operations in the previous reporting period:
(I)
The volume, expressed in barrels, and whether the fresh water was acquired from industrial, commercial, municipal, or agricultural water sources for use in oil and gas operations at the oil and gas location;
(II)
The volume, expressed in barrels, and source of all recycled or reused water used in oil and gas operations at the oil and gas location;
(III)
The volume, expressed in barrels, of all produced water disposed of from the oil and gas location, including:
(A)
The disposal method, as defined by the commission by rule; and
(B)
The disposal location, including facility identification, if applicable;
(IV)
The volume, expressed in barrels, of all produced water that is removed from the oil and gas location for recycling or reuse in oil and gas operations, including by another oil and gas operator; and
(V)
The total volume, expressed in barrels, of all water produced from all wells at the oil and gas location in each month of the reporting period.
(b)
An operator shall:
(I)
File the report required under subsection (3)(a) of this section no later than forty-five days after the end of the previous calendar quarter; and
(II)
Include in each report filed pursuant to subsection (3)(a) of this section the total amounts of all fresh water, produced water, and recycled or reused produced water managed at the oil and gas location for any purpose. Information reported under this subsection (3)(b)(II) does not include storm water.
(4)
Scope of report - operational lifetime of a well.
An operator's produced water reports described in subsections (2) and (3) of this section must describe all water produced or used throughout the operational lifetime of a well, beginning with site construction, drilling, completion, stimulation and production operations, associated plugging and abandonment, facility decommissioning, remediation, and reclamation.
(5)
Rules.
(a)
For the purpose of collecting the data required by subsections (2) and (3) of this section, the commission may adopt rules authorizing operators to include information in their reports that is not otherwise reported pursuant to existing commission rules.
(b)
The commission shall not adopt a rule designating the data required pursuant to subsection (5)(a) of this section as confidential information that an operator may redact when reporting the information to the commission.
(c)
(I)
On or before December 31, 2024, the commission shall adopt rules to require a statewide reduction in fresh water usage, and a corresponding increase in usage of recycled or reused produced water, at oil and gas locations. The rules must not apply to activities occurring within the exterior boundaries of an Indian reservation located within the state.
(II)
In adopting rules pursuant to subsection (5)(c)(I) of this section, the commission shall consider:
(A)
The data in reports filed with the commission pursuant to subsections (2) and (3) of this section; and
(B)
Recommendations that the consortium develops.
(d)
The rules adopted pursuant to this subsection (5) must include:
(I)
Requirements for new oil and gas development plans and substantial modifications to previously approved permits to include a plan specifying the methods and locations for treatment of the produced water, quantifying recycled or reused produced water used in place of fresh water, describing emission controls associated with produced water treatment, and including any other requirements the commission determines are necessary for implementation of this section;
(II)
A prohibition against placement of a new centralized produced water storage or treatment facility in a disproportionately impacted community;
(III)
A requirement that an operator quantify and report, for each oil and gas location, the vehicle miles traveled in relation to fresh water and produced water management, including vehicle miles traveled for the recycling and reuse of produced water.
(e)
The rules adopted pursuant to subsection (5)(c) of this section:
(I)
Must:
(A)
Require for each oil and gas production basin an iterative and consistent increase in the use of recycled or reused produced water without increasing emissions associated with oil and gas operations; and
(B)
Establish, based on recommendations of the consortium, an iterative and consistent schedule of dates that will significantly increase the usage of recycled or reused produced water and decrease the amount of fresh water utilized in oil and gas operations in the state, while ensuring the protection of public health, safety, and welfare; the environment; and wildlife resources. The consortium shall review the dates annually to ensure that the dates continue to represent significant advancement of the goals of this section, taking into consideration population dynamics, improvements in technology, research, best management practices, and infrastructure development around produced water.
(II)
May include oil-and-gas-basin-specific benchmarks to comply with the requirements established by rule pursuant to subsection (5)(e)(I) of this section.
(6)
Cumulative impacts reporting.
The commission shall include in its annual reporting on cumulative impacts of oil and gas operations in the state information reported pursuant to this section.
(7)
(a)
On or before April 1, 2025, the commission shall submit a report to the house of representatives energy and environment committee and the senate transportation and energy committee, or their successor committees, summarizing the reports developed pursuant to this section.
(b)
This subsection (7) is repealed, effective July 1, 2025.
Amended by 2024 Ch. 216,§ 10, eff. 5/21/2024.
Added by 2023 Ch. 435,§ 2, eff. 6/7/2023.