CO HB1173

Prohibits oil and gas operators from using, storing, or disposing of hydraulic fracturing fluids or flow-back in open pits on or after July 1, 2014, requiring use of closed-loop systems instead.

Allows the Oil and Gas Conservation Commission to approve open pit use in specifically designated areas where the commission determines no risk exists to occupied structures, surface water, or tributary groundwater.

Permits open pit use if hydraulic fracturing fluids meet water quality standards sufficient for direct discharge into state waters without requiring a discharge permit.

Directs the Oil and Gas Conservation Commission to promulgate rules implementing these restrictions.

Takes effect 90 days after final adjournment of the general assembly (August 7, 2012, if sine die is May 9, 2012), subject to voter approval if a referendum petition is filed, and applies to hydraulic fracturing treatments occurring on or after the effective date.