Colorado Oil And Gas Regulators Approve ‘Strongest’ Financial Rules

"Higher bonding amounts, expanded orphaned well program will fund cleanup of thousands of aging sites".

"Colorado regulators on Tuesday approved a sweeping set of new financial requirements for oil and gas companies that operate within the state, completing the last major rule change mandated by a landmark drilling reform law passed by Democrats in the General Assembly three years ago.

The five-member Colorado Oil and Gas Conservation Commission voted unanimously to adopt the new rules on financial assurance, also known as bonding. When they take effect in April, the changes will significantly increase the amounts of the bonds that oil and gas producers must provide to the state to cover potential cleanup costs, and new fees will raise millions of dollars to fund the plugging of wells that are abandoned, or “orphaned,” typically as a result of bankruptcy.

In a press release, COGCC officials called the new rules “the strongest in the nation.” Commissioner John Messner, a former Gunnison County commissioner, said prior to Tuesday’s vote that the rules represent a “paradigm shift.”"

Chase Woodruff reports for Colorado Newsline March 2, 2022.

Source: Colorado Newsline, 03/03/2022