C.R.S. Section 34-60-117
Prevention of waste

  • protection of correlative rights

(1)

The commission has authority to prevent waste and protect correlative rights of all owners in every field or pool, and when necessary shall limit the production of oil and gas in any field or pool in the exercise of this authority.

(2)

If the commission limits the total amount of oil or gas which may be produced in any pool in this state to an amount less than that amount which the pool could produce if no restriction were imposed, the commission shall allocate or distribute the allowable production among the several wells or producing properties in the pool on a reasonable basis, preventing or minimizing reasonably avoidable drainage, so that each property will have the opportunity to produce or to receive its just and equitable share, subject to the reasonable necessities for the prevention of waste.

(3)

The commission shall give due regard to the fact that gas produced from oil pools is to be regulated and restricted in a manner as will protect the reasonable use of its energy for oil production.

(4)

Each person purchasing or taking for transportation oil or gas from any owner or producer shall purchase or take ratably, without discrimination in favor of any owner or producer over any other owner or producer in the same common source of supply offering to sell his oil or gas produced therefrom to such person. If two or more persons purchase or take for transportation oil or gas from any common source of supply in quantities such that any tract of land of separate ownership is not producing its just and equitable share from the pool, the person purchasing or taking from the tract producing more than its just and equitable share shall, upon the proper offer to sell being made, reduce the amount purchased or taken from such tract and purchase from each tract not producing its just and equitable share so that each tract of land may produce its just and equitable share of production from the pool. In the event that any such purchaser or person taking oil or gas for transportation is likewise a producer or owner, he is prohibited from discriminating in favor of his own production or storage, or production or storage in which he may be interested, and his own production and storage shall be treated as that of any other producer or owner; but no owner or producer, who is also a purchaser of oil and gas, or who has a market for his oil and gas or either thereof, has the right to invoke the benefits of this section.

Source: Section 34-60-117 — Prevention of waste - protection of correlative rights, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-34.­pdf (accessed Oct. 20, 2023).

34‑60‑101
Short title 34‑60‑102
Legislative declaration 34‑60‑103
Definitions 34‑60‑104.3
Energy and carbon management commission - report - publication 34‑60‑104.5
Director of commission - duties 34‑60‑105
Powers of commission 34‑60‑106
Additional powers of commission - rules - definitions - repeal 34‑60‑107
Waste of oil or gas prohibited 34‑60‑108
Rules - hearings - process 34‑60‑109
Commission may bring suit 34‑60‑110
Witnesses - suits for violations 34‑60‑111
Judicial review 34‑60‑112
Plaintiff post bond 34‑60‑113
Trial to be advanced 34‑60‑114
Action for damages 34‑60‑115
Limitation on actions 34‑60‑116
Drilling units - pooling interests 34‑60‑117
Prevention of waste - protection of correlative rights 34‑60‑118
Agreements for development and unit operations 34‑60‑118.5
Payment of proceeds - definitions 34‑60‑119
Production - limitation 34‑60‑120
Application of article 34‑60‑121
Violations - investigations - penalties - rules - definition - legislative declaration 34‑60‑122
Expenses - energy and carbon management cash fund created 34‑60‑123
Interstate compact to conserve oil and gas 34‑60‑124
Energy and carbon management cash fund - definitions - repeal 34‑60‑127
Reasonable accommodation 34‑60‑128
Habitat stewardship - rules 34‑60‑130
Reporting of spills - rules 34‑60‑131
No land use preemption 34‑60‑132
Disclosure of chemicals used in downhole oil and gas operations - chemical disclosure lists - community notification - reports - definitions - rules - repeal 34‑60‑133
Orphaned wells mitigation enterprise - creation - powers and duties - enterprise board created - mitigation fees - cash fund created - rules - definitions 34‑60‑134
Reporting of water used in oil and gas operations - cumulative reporting - definitions - rules - repeal 34‑60‑135
Colorado produced water consortium - created - membership - recommendations - definitions - review of functions - repeal 34‑60‑136
Biochar in oil and gas well plugging working advisory group - created - members - study by Colorado state university - recommendations for the development of a pilot program - report - definitions - repeal 34‑60‑137
Hydrogen study - report - repeal 34‑60‑138
Pipeline study - report - repeal 34‑60‑139
Methane seepage in Raton basin - study of best management practices and water quality required - repeal
Green check means up to date. Up to date

Current through Fall 2024

§ 34-60-117’s source at colorado​.gov