CO SB198

Creates the Orphaned Wells Mitigation Enterprise within the Department of Natural Resources to plug, reclaim, and remediate orphaned oil and gas wells in Colorado using revenue from mitigation fees paid by operators.

Establishes a five-member enterprise board including the commission chair, director, and three governor-appointed members representing oil and gas industry, local government, and land reclamation expertise.

Imposes annual mitigation fees on operators starting August 1, 2022: $125 per well for small operators and $225 per well for larger operators, with amounts subject to annual review and adjustment.

Creates the Orphaned Wells Mitigation Enterprise Cash Fund capped at $100 million in the first five fiscal years, with continuous appropriation for plugging services, operating expenses, and enterprise duties.

Classifies mitigation fees as business enterprise fees rather than taxes, ensuring the enterprise's revenue does not count against state fiscal year spending limits under the Colorado Constitution.