CO SB 40 Glossary: Key Terms & Definitions for Developers and Consultants
CO SB 40 Key Terms & Definitions
Air quality: The condition of the air in terms of the presence or absence of pollutants, and its suitability for human health and the environment. SB 40 requires operators to minimize emissions of air pollutants from oil and gas facilities and to comply with state air quality standards (Colo. Rev. Stat. § 34-60-106(2)(d)).
Alternative location analysis: The process of evaluating alternative sites for proposed oil and gas facilities to minimize adverse impacts on public health, safety, welfare, and the environment, as required by SB 40 (Colo. Rev. Stat. § 34-60-106(1)(f)).
Best available control technology (BACT): A pollution control standard that requires the use of the most effective and economically feasible technology available to reduce emissions from a specific source. SB 40 mandates the use of BACT to minimize environmental impacts and ensure efficient resource extraction (Colo. Code Regs. § 404-1:805).
Closed-loop drilling system: A drilling method that uses a closed system to contain drilling fluids and minimize the potential for environmental contamination. SB 40 encourages the use of closed-loop drilling systems to prevent contamination of surface water and groundwater from oil and gas operations (Colo. Code Regs. § 404-1:904).
Colorado Oil and Gas Conservation Commission (COGCC): The primary state agency responsible for regulating oil and gas activities in Colorado, including administering and enforcing SB 40 (Colo. Rev. Stat. § 34-60-104).
Comprehensive environmental impact assessment: A detailed analysis of the potential environmental impacts of a proposed oil and gas project, required by SB 40 to identify and mitigate adverse effects (Colo. Code Regs. § 404-1:303).
Cumulative impacts: The combined environmental effects of multiple oil and gas activities or other development projects in a specific area over time. SB 40 requires the COGCC to consider cumulative impacts when evaluating permit applications (Colo. Rev. Stat. § 34-60-106(1)(f)).
Environmental impact mitigation: The implementation of measures to reduce, minimize, or offset the adverse environmental effects of oil and gas development, as required by SB 40 (Colo. Code Regs. § 404-1:303).
Flaring: The controlled burning of natural gas that cannot be captured or used during oil and gas operations. SB 40 prohibits the uncontrolled flaring of natural gas, except in limited circumstances related to safety or during the initial phases of well completion (Colo. Code Regs. § 404-1:903).
Flowback fluid: The fluid that returns to the surface after hydraulic fracturing, which may contain a mixture of water, chemicals, and dissolved minerals. SB 40 requires operators to properly manage and dispose of flowback fluid to prevent environmental contamination (Colo. Code Regs. § 404-1:906).
Groundwater: Water found beneath the Earth's surface in soil pore spaces and fractures of rock formations. SB 40 mandates that operators implement measures to prevent contamination of groundwater from oil and gas operations (Colo. Code Regs. § 404-1:909).
Hydraulic fracturing: A well stimulation technique that involves injecting a mixture of water, sand, and chemicals under high pressure into a rock formation to create fractures and enhance oil and gas production. SB 40 regulates hydraulic fracturing to minimize its potential environmental impacts (Colo. Rev. Stat. § 34-60-103(5.5)).
Occupied structure: A building or structure that is regularly occupied by humans, such as a residence, school, or hospital. SB 40 establishes setback requirements for oil and gas facilities from occupied structures to protect public health and safety (Colo. Rev. Stat. § 34-60-116(1)(a)).
Oil and gas facility: Any structure, equipment, or installation used for the exploration, production, processing, or transportation of oil and gas resources. SB 40 regulates the permitting, siting, and operation of oil and gas facilities in Colorado (Colo. Rev. Stat. § 34-60-103(6.2)).
Oil and gas waste: Any solid, liquid, or gaseous material resulting from oil and gas operations that is not put to beneficial use. SB 40 prohibits the disposal of oil and gas waste in underground injection wells without proper permitting and monitoring (Colo. Code Regs. § 404-1:907).
Operator: Any person or entity that is responsible for the conduct of oil and gas operations in Colorado. SB 40 requires operators to obtain permits from the COGCC before constructing or operating oil and gas facilities (Colo. Rev. Stat. § 34-60-103(6.8)).
Permit: An authorization issued by the COGCC that allows an operator to conduct specific oil and gas activities, such as drilling a well or constructing a facility. SB 40 establishes the permitting requirements and process for oil and gas operations in Colorado (Colo. Rev. Stat. § 34-60-116).
Protect Public Welfare Oil and Gas Operations Act: The formal title of Colorado Senate Bill 19-181 (SB 181), which amended SB 40 to prioritize the protection of public health, safety, welfare, and the environment in the regulation of oil and gas operations (Colo. Rev. Stat. § 34-60-102(1)(a)(I)).
Public health, safety, and welfare: The collective well-being and quality of life of the people of Colorado, which SB 40 aims to protect from the potential adverse impacts of oil and gas development (Colo. Rev. Stat. § 34-60-102(1)(a)(I)).
Setback: The minimum distance required between an oil and gas facility and an occupied structure, water source, or other sensitive area, as established by SB 40 to protect public health and safety (Colo. Rev. Stat. § 34-60-116(1)(a)).
Surface water: Water that is present on the Earth's surface, such as rivers, lakes, and streams. SB 40 requires operators to implement measures to prevent contamination of surface water from oil and gas operations (Colo. Code Regs. § 404-1:909).
Venting: The intentional release of natural gas into the atmosphere during oil and gas operations. SB 40 prohibits the uncontrolled venting of natural gas, except in limited circumstances related to safety or during the initial phases of well completion (Colo. Code Regs. § 404-1:903).
Vulnerable area: An area that is particularly sensitive to the potential adverse impacts of oil and gas development, such as a school, hospital, or drinking water source. SB 40 establishes setback requirements for oil and gas facilities from vulnerable areas to protect public health and safety (Colo. Rev. Stat. § 34-60-116(1)(a)).
Water quality monitoring: The regular collection and analysis of water samples to assess the presence or absence of contaminants and ensure compliance with water quality standards. SB 40 requires operators to conduct water quality monitoring to detect and prevent contamination from oil and gas operations (Colo. Code Regs. § 404-1:909).
Well site: The surface area immediately surrounding an oil or gas well, including the well pad and associated equipment. SB 40 regulates the construction and operation of well sites to minimize their environmental impacts (Colo. Rev. Stat. § 34-60-103(14.5)).
Wildlife habitat: The natural environment that supports the survival and reproduction of wildlife species. SB 40 requires the COGCC to consider the impacts of oil and gas development on wildlife and their habitats, and to impose conditions on permits to minimize adverse effects (Colo. Rev. Stat. § 34-60-106(1)(f)).
A Note to Our Readers: We hope this guide is a valuable resource in helping you better understand the . However, it's not a substitute for professional advice and doesn't cover every scenario. Always consult with regulatory bodies and professionals for the most current advice and project-specific guidance.