September 13, 2022. As an extension of SB 19-181 rulemaking, earlier this year, Colorado regulators approved a sweeping set of new financial requirements for oil and gas companies operating in the state. The Colorado Oil and Gas Conservation Commission (COGCC) voted unanimously to adopt the new rules on financial assurance, also known as bonding, impacting every producer in the state.
The new requirements will increase the amounts of the bonds that oil and gas producers must demonstrate to the state to cover potential cleanup costs and liabilities associated with their operations. Additionally, a new annual fee will raise funds to plug old wells that have been abandoned, or “orphaned,” usually resulting from operator bankruptcy.
Although the new rules took effect in April and initial deadlines for the financial assurance plan were in July, the rollout of the new reporting form and process has been delayed due to resources at the COGCC. The new form for the financial assurance plan, however, is expected to be released soon. And the deadlines were extended per the Notice to Operators regarding compliance with Rule 702.
Now is the time to get prepared! We already know the information required, we just do not yet have access to the COGCC form.
Benefits of getting a jump-start:
- Get an early view of likely financial exposure
- More efficient business processes with smooth, on-time filings
- Take advantage of exceptions and extended timelines available today
Contact TCO Compliance for assistance in preparing for Colorado Financial Assurance Plans. We make compliance simple, efficient, and effective!
Compliance Division Manager
TCO Land Services and Compliance