May 6, 2024
DENVER – Western Resource Advocates celebrates the passage of Senate Bill 24-230, Oil and Gas Production Fees, which invests in durable protections for Colorado’s remaining high-value natural areas and wildlife
Oil and gas operations have adverse and long-lasting impacts on Colorado’s communities and the environment, including the destruction and disturbance of natural areas and wildlife and greenhouse gas emissions that contribute to climate change and poor air quality. The state of Colorado incurs significant costs in addressing these harms. Oil and gas production is also the leading cause of land conversion across Colorado. Without sufficient land protections, more land and wildlife habitat will be lost to development, including from oil and gas, jeopardizing Colorado’s economy, biodiversity, quality of life, and legacy.
SB24-230 will drive landmark investments to address some of these harms by restoring wildlife habitat, improving ecosystem resilience, and funding land conservation.
SB 24-230 creates a new fee on oil and gas production tied to commodity prices, ensuring oil and gas operators are paying for remediation of the harm caused to the environment. The fee will be paid quarterly, and the revenue generated for Colorado Parks and Wildlife (CPW), estimated to be as much as $50 million dollars annually, will go toward significant investments in conservation and remediation of lands. The production fee for wildlife protection and land remediation will apply to all oil and gas produced in the state starting July 1, 2025.
Funds will be directed to CPW to create the Climate Resilient Wildlife and Land Fund. The agency will invest the fee revenue in remediation services to help offset oil and gas operations’ harm to wildlife and habitat. The funds may be used to support CPW’s work, including:
- Creating new state parks and state wildlife areas
- Slowing biodiversity loss and improving ecosystem resilience
- Improving wildlife connectivity and migration corridors
- Restoring lands to compensate for those lost to oil and gas development
- Acquiring and leasing lands and waters for the protection of wildlife and habitats
- Native species conservation, rehabilitation, and reintroduction
- Provision of grants, awards, and easements
Coloradans are concerned about the loss of natural habitat and overwhelmingly support broad conservation and climate goals. Clean air, public land, outdoor access, and wildlife are major contributors to Colorado’s economy, and our communities’ quality of life. SB24-230 will help improve the health of disproportionately impacted communities, expand access to nature, and protect Colorado’s majestic landscapes and biodiversity.
Media Contact:
Christie Silverstein, 602.803.4130, christie.silverstein@westernresources.org
