(1) (a) In addition to the filing and service fee required to be paid under section 34-60-106 (1)(f) and the fees authorized for other services provided by the commission by section 34-60-106 (16), there is imposed on the market value at the well of all oil and natural gas produced, saved, and sold or transported from the field where produced in this state a charge not to exceed one and seven-tenths mills on the dollar. The commission shall, by order, fix the amount of such charge in the first instance and may, from time to time, reduce or increase the amount thereof as, in its judgment, the expenses chargeable against the oil and gas conservation and environmental response fund specified in subsection (5) of this section may require.
(b) On and after July 1, 2019, the commission shall ensure that the unobligated portion of the fund does not exceed fifty percent of total appropriations from the fund for the upcoming fiscal year and that there is an adequate balance in the fund to support the operations of the commission and to address environmental response needs.
(2) (a) On or before March 1, June 1, September 1, and December 1 of each year, every producer or purchaser, whichever disburses funds directly to each and every person owning a working interest, a royalty interest, an overriding royalty interest, a production payment and other similar interests from the sale of oil or natural gas subject to the charge imposed by subsection (1) of this section, shall file a return with the commission showing the volume of oil, gas, or condensate produced or purchased during the preceding calendar quarter, and the actual sales value of such oil, gas, or condensate, including the total consideration due or received at the point of delivery. Such return shall be accompanied by the total amount of the charges due on all interests in the oil or gas except those interests exempted under the provisions of subsection (4) of this section.
(b) Each producer shall advise the commission whether he or the purchaser will be responsible for reporting and remitting the levy under the provisions of paragraph (a) of this subsection (2). If the return is filed by the producer, the producer shall maintain at his place of business for three years the invoice or statement issued by each purchaser showing the amount of oil or gas purchased, the producing lease from which such purchase was made, and the total sales price paid. Such purchaser invoice or statement may be requested periodically by the commission with the quarterly report.
Any producer or purchaser who files a return pursuant to subsection (2) of this section shall pay any such charge or any interest other than his own, and such producer or purchaser is authorized to deduct the amount of such payment from any amount owed by him to the person for whom such charge was paid. Any such charge not paid when required by subsection (2) of this section shall bear interest at the rate of three percent per month, from the date of delinquency until paid.
The charge imposed by subsection (1) of this section shall not apply to the interest inany oil or gas or the proceeds therefrom of the following:
The United States;
The state of Colorado or any of its political subdivisions;
Any Indian or Indian tribe on production from land subject to the supervision of theUnited States.
(5) (a) The commission shall collect all charges and penalties under this article 60 and remit them to the state treasurer for deposit in the oil and gas conservation and environmental response fund, which fund is hereby created in the state treasury.
There is hereby created in the fund the environmental response account, into whichshall be deposited penalties pursuant to section 34-60-121 (1). Expenditures authorized pursuant to section 34-60-124 (4) shall be paid in the first instance from the account, and expenditures authorized pursuant to section 34-60-124 (10) shall not be paid from the account. The year-end balance of the account remains in the account.
The general assembly shall annually make appropriations for the purposes authorizedby section 34-60-124, and warrants shall be drawn against the appropriations as provided by law.
Source: L. 51: p. 662, § 18. CSA: C. 118, § 68(16). L. 53: p. 444, § 3. CRS 53: § 100-620. L. 59: p. 606, § 1. C.R.S. 1963: § 100-6-20. L. 65: p. 900, § 1. L. 71: p. 1051, § 1. L. 77: (1) and (5) amended, p. 1570, § 2, effective June 1; (2) and (3) amended, p. 1769, § 9, effective January 1, 1978. L. 78: (5) amended, p. 273, § 96, effective May 23. L. 84: (2) R&RE and (3) and (5) amended, pp. 936, 937, §§ 1, 2, effective April 27. L. 86: (1) and (5) amended, p. 1073, § 2, effective April 3. L. 87: (1) amended, p. 1274, § 1, effective May 8. L. 88: (5) amended, p. 1217, § 1, effective April 14. L. 90: (1) R&RE, p. 1545, § 2, effective May 8. L. 91: (2)(a) and (5) amended, pp. 1415, 1416, §§ 4, 5, effective April 19. L. 94: (1)(b) and (2)(a) amended, p. 1984, § 10, effective June 2. L. 2005: (1)(a), (1)(b), and (5) amended, p. 731, § 1, effective July 1; (1)(b) amended, p. 542, § 3, effective July 1. L. 2006: (1)(b) amended, p. 220, § 1, effective March 31. L. 2014: (1)(b) amended, (HB14-1077), ch. 79, p. 319, § 1, effective March 27. L. 2018: (5) amended, (HB 18-1098), ch. 107, p. 796, § 1, effective April 9. L. 2019: (1)(b) amended, (SB 19-181), ch. 120, p. 519, § 15, effective April 16.
Editor's note: Amendments to subsection (1)(b) by House Bill 05-1285 and Senate Bill 05-066 were harmonized.
Cross references: (1) For disposition of moneys collected by state agencies or instrumentalities, see § 24-36-103.
(2) For the legislative declaration contained in the 1994 act amending subsections (1)(b) and (2)(a), see section 1 of chapter 317, Session Laws of Colorado 1994.