to conduct further rulemakings before the end of 2026 that will impose additional requirements on operators to report air emissions associated with their produced water recycling efforts. See generally, Cause No. 1R, Docket No. 240900229 (https://ecmc. state.co.us/hearings.html#/rulemaking/producedwater).
Other Aspects of the Rules
The Rules formalize several additional requirements relating to the water usage standards, several of which were specifically directed by the statutory amendments of H.B. 23-1242. Examples of these other considerations are outlined below. Waste Management Plans. New Rule 905.a.(4) requires any operator submitting a Form 2A (Oil and Gas Location Assessment) to have a detailed waste management plan that outlines “how the operator will treat, characterize, manage, store, dispose and transport all types of [E&P Waste] generated” at the proposed well site. Further, each OGDP filed after January 1, 2026, must include a plan that specifies how the operator intends to recycle and reuse produced water as necessary to meet the minimum percentages imposed by the Rules. See 2 C.C.R. 404-1-905.a.(4). DIC Siting Prohibition. While the water usage system will necessitate the eventual growth of water treatment facilities and related infrastructure development, the Rules reiterate the broad legislative prohibition against the siting of any new “Centralized E&P Waste Management Facilities” in any area designated as a Disproportionately Impacted Community under existing ECMC regulations. See 2 C.C.R. 404-1-907.b.(5) . This includes any facility that “receives for collection, treatment, temporary storage, and/or disposal of Produced Water, drilling fluids, completion fluids, and any other exempt E&P Wastes” generated from oil and gas operations. See 2 C.C.R. 404-1-100 . Air Quality Concerns. As directed by H.B. 23-1242, the Commission acknowledged in its rulemaking that these new water usage standards would, over time, require infrastructure improvements and operational changes, which themselves could pose additional environmental impacts, namely with respect to air emissions. To address those concerns, the Rules require the submission of quarterly reports that detail, in mileage, the operator’s reliance on water transport trucks to take fresh and produced water from each well location to and from recycling or disposal sites. See 2 C.C.R. 404- 1-431.f .(1). Finally, the Commission has committed
Conclusion
As outlined above, while their enforcement will be phased in over the coming years, the Rules pose a host of new monitoring and reporting burdens on operators in Colorado. Time will tell whether compliance with the Rules will significantly impact the economic viability of new development, at least in certain basins or regions in the state.
The Author:
James M. Tartaglia, Member Charleston, WV
Phone : (304) 353-8185 Email : jim.tartaglia@steptoe-johnson.com Jim Tartaglia concentrates his practice
in the area of energy and natural resources law. Mr. Tartaglia regularly assists clients with a variety of their transactional needs, including mineral title and due diligence, corporate and securities matters, and oil and gas lending. Licensed In • Colorado • West Virginia • Virginia
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