Denver, CO (Feb. 09, 2023) - The Orphaned Wells Mitigation Enterprise Board announced today that the Colorado Senate has confirmed the first Board appointed by Gov. Jared Polis as part of the implementation of SB 22-198 and the Colorado Oil and Gas Conservation Commission’s Financial Assurance Rulemaking.
The Orphaned Wells Mitigation Enterprise imposes and collects mitigation fees, funds the plugging, reclaiming, and remediating of orphaned wells in the state, and ensuring that the costs associated with plugging, reclaiming, and remediating orphaned wells are borne by operators in the form of mitigation fees.
The Orphaned Wells Mitigation Enterprise Board appointments are as follows:
for a term expiring September 1, 2023:
Kimberly Mendoza-Cooke of Evergreen, Colorado to serve as an individual with substantial experience in the oil and gas industry;
for a term expiring September 1, 2024:
Lynn Baca of Brighton, Colorado to serve as a local government official from a jurisdiction that has oil and gas development;
for a term expiring September 1, 2025:
Christopher Simmons of Denver, Colorado to serve as an individual with formal training or substantial experience in land reclamation projects;
These members join COGCC Chair Jeff Robbins and COGCC Director Julie Murphy in statutory positions on the Enterprise.
For more information regarding the Orphan Wells Mitigation Enterprise Board, please visit the Orphan Wells Enterprise webpage.
About the Orphan Wells Mitigation Fee Enterprise:
The Orphan Wells Mitigation Fee Enterprise was created during the 2022 COGCC Financial Assurance rulemaking, and then enacted by SB22-198 to assess annually a per well permit fee by the oil and gas operators to fund the Enterprise.
The initial fees were $225 per well for Operators with an average daily per well production greater than 15 BOE or 22 MCFE for the previous calendar year; and $125 for Operators with an average daily per well production less than or equal to 15 BOE or 22 MCFE for the previous calendar year. The first registration fee was due in August of 2022 and the next registration payment will be due in April of 2023, with April being the on-going registration date for Operators. The current balance of the Orphan Wells Mitigation Fee Enterprise Fund is around $9 Million.
To learn more about the Orphan Wells Mitigation Enterprise Board, visit the ECMC website.