CO SB192

Local governments that ban hydraulic fracturing of oil and gas wells are liable to mineral interest owners for the full value of the mineral interest lost due to the prohibition.

Local governments that enact a moratorium of any duration on oil and gas activities must compensate oil and gas operators, mineral lessees, and royalty owners for all costs, damages, and fair market value losses associated with the moratorium.

Compensable losses include delays or losses in royalty payments, delays or losses in developing oil and gas resources, and delays or losses in realizing the value of mineral leases.

The act takes effect at 12:01 a.m. on August 8, 2018, unless a referendum petition is filed, in which case it requires voter approval at the November 2018 general election.

The act applies to local government conduct occurring on or after its effective date.