CO HB1322

Defines "lease gas" to include recovered gas vapors that flash from produced oil and would otherwise be vented or flared as waste.

Grants the Colorado oil and gas conservation commission rule-making authority to allocate recovered gas that would otherwise be lost as waste.

Recovered gas is gas that has not yet passed through a sales meter and can be used pursuant to a lease to run processing equipment at an oil and gas location.

Aims to reduce air emissions compared to venting or flaring while increasing royalty payments and severance taxes by enabling recovery and use of flash gas through available technology.

Applies to acts occurring on or after the effective date of the act.