As expected, Colorado Gov. John Hickenlooper has signed two bills supported by the oil and gas industry that, among other things, better protect mineral and royalty owners and expand the scope of state’s energy office.
Senate Bill (SB) 230, backed by the industry, regulates how mineral and royalty owners would fairly divide products and profits without inhibiting energy development. Forced pooling gives oil and gas companies the right to access underground minerals owned by others, when some of the mineral rights owners or leaseholders have consented to exploration and production.
Hickenlooper also signed SB 003 into law to widen the scope of the Colorado Energy Office.
Colorado Oil and Gas Association CEO Dan Haley said the legislation signed was a "remarkable outcome from a productive 2018.”
SB 003 expands the scope of the Colorado Energy Office to include all sources, which includes promoting nuclear and hydroelectric power as cleaner energy sources. The bill also adds energy storage systems and propane as separate sources.
"Colorado has a variety of energy resources that allows competition to flourish when conditions are set to provide all companies a chance to succeed," Haley said. "Competition spurs innovations, drives investment, and ultimately keeps prices low for Colorado homeowners and businesses."