HB23-1242 Summary

• Requires oil and gas operators to report monthly water usage data beginning September 1, 2023, including volumes of fresh water used, recycled/reused produced water, and disposal methods.

• Mandates quarterly reporting by location beginning January 1, 2024, detailing sources of fresh water, recycled water usage, and disposal information for each oil and gas location.

• Requires the Colorado Oil and Gas Conservation Commission to adopt rules by December 31, 2024, establishing statewide reduction targets for fresh water usage and corresponding increases in recycled produced water usage, with basin-specific benchmarks.

• Creates the Colorado Produced Water Consortium with 25 members representing state/federal agencies, research institutions, environmental organizations, oil and gas industry, local governments, and environmental justice advocates to provide recommendations on produced water reuse and recycling.

• Appropriates $464,512 to the Conservation Commission and $30,169 to the Department of Public Health and Environment for fiscal year 2023-24 to implement reporting requirements and consortium operations.