WHO WE ARE
The Colorado Petroleum Association (CPA) is a non-profit trade organization deeply rooted in the professional representation of the oil and gas industry before state, regional and federal governmental entities. Since 1951 large and small companies have banded their voices together through the association to advance ideas and plans which have helped shape a strong and thriving energy industry. Through public and professional education, lobbying, regulatory activities and media relations, CPA has long been recognized as the primary spokesperson for the industry in Colorado and the Rocky Mountain Region.

AFFILIATIONS
CPA takes pride in working with other organizations to accomplish policy goals of the oil and gas industry. CPA is closely allied with the American Petroleum Institute; other state industry trade associations located in Montana, North Dakota, Utah and Wyoming; and Public Lands Advocacy, an industry group promoting access to federal lands for responsible, environmentally sound oil and gas exploration and development.

ORGANIZATION
The activities of the Association are guided by its Board of Directors. CPA's President carries out Association duties as directed by the Board. CPA's President is a registered lobbyist and experienced advocate representing the industry before numerous regulatory agencies.

The strength of CPA lies with its broad-based membership and standing committees, which steer the activities of the Association in specific areas of expertise. The committee structure has proven to be extremely effective in identifying and responding to critical legislative and regulatory issues. CPA committees present a unified voice for both independent and major oil and gas companies and provide opportunities for the open exchange of information on emerging issues and trends. Standing committees include Exploration & Production, Environmental Affairs, Refining, Marketing & Transportation, Tax, and Government Affairs.

CPA lobbied or followed over 60 bills during the 2001 legislative session and was successful in efforts to protect the oil and gas industry from some onerous legislative proposals.

Oil & Gas
The Department of Natural Resources (DNR) advanced three bills it considered would restore "balance" between surface and mineral estate owners. While not agreeing with the premise that such an imbalance indeed exists, CPA attempted to worked with the Department to enact reasonable legislation to address the general controversy surrounding oil and gas development.

The first bill in the DNR package, HB 1062, would have required surface and mineral owners to negotiate a surface damage compensation agreement before drilling was initiated. It also established an arbitration process if an agreement could not be reached. The bill originally limited damage awards to current use of the land. After passage in the House, the Department attempted to amend the bill by basing damages on speculative value. Dissatisfied with the Department's failure to bring all interest groups together to discuss possible amendments, all joined to oppose the bill which was killed in the Senate Agriculture Committee.

HB 1068, the Oil and Gas Dormancy Act, was the most onerous bill in the DNR package. It would have required mineral interest owners to record a notice of intent to preserve a dormant mineral estate (defined as one that had not been used in 20 years or more). Absent such notice, the mineral estate would automatically revert to the surface owner(s). Viewing HB 1068 as a "takings" bill, CPA was the only oil and gas association that lobbied heavily against it and the bill was also killed in the Senate Agriculture Committee.

The one successful bill was HB 1088 requiring surface owners to be notified of severed mineral interests prior to closing a real estate purchase, and requiring mineral estate owners to be notified of impending surface development. The bill was signed into law with both surface owners and the oil and gas industry agreeing that additional notification is appropriate to forestall future conflicts between estate owners.

Again this session, a bill to change the composition of the Colorado Oil and Gas Conservation Commission was advanced by groups representing surface owners. SB 103 originally would have removed all industry members from the Commission. The bill passed the Senate amended to remove only one industry member. Successful lobbying led to the bill's defeat in the House.

Legal
CPA organized a coalition to successfully oppose HB 1150 which attempted to impose new standards of immunity in Strategic Lawsuits Against Public Participation (SLAPP suits). Passage of the bill would have discouraged the filing of counter suits by companies accused of wrongdoing. A citizen making a false claim against a company to the government would have been immune from libel and slander prosecution. CPA was the only oil and gas association to oppose the bill.

Taxation
Tax issues played a less prominent role in the 2001 legislative session because of a reduction in surplus state revenues and the fact that the Colorado Commission on Taxation is studying structural changes to Colorado's tax laws. CPA successfully opposed the majority of attempts to raid surpluses in the Severance Tax Trust Fund to supplant budgetary shortfalls in various state programs. However, in response to high energy prices, HB 1107 passed easily in the first days of the session. The bill diverted $10 million from the Severance Tax Trust Fund to the Low-Income Energy Assistance Program.

CPA supported passage of HB 1287 to increase the percentage and cap on business personal property tax refunds.

Environment
CPA opposed HB 1087 which would have required the Colorado Department of Public Health and Environment to include language in its various programs addressing environmental justice. The bill failed.

HB 1270 created an emissions trading and banking program as proposed by the Denver Regional Council of Governments (DRCOG). The bill was an attempt by DRCOG to take authority away from the Air Quality Control Commission which has its own pollutant-trading program. A coalition of business groups, including CPA, successfully lobbied against the bill.

SB 21 continues the state's asbestos program. CPA took exception to efforts by the Department of Regulatory Agencies to extend the program to projects otherwise excluded from regulation under federal law. CPA worked with the bill's sponsor to narrow its scope.

Marketing
CPA worked with the Department of Labor and Employment in support of HB 1373 creating a new Division of Oil & Public Safety and repealing the Oil Inspection Section. Creation of the new division will help ensure petroleum storage tank funds are devoted exclusively to petroleum storage tank cleanups. The legislation was necessitated in part because the Legislative Joint Budget Committee siphoned dollars from the fund to other programs in the Department of Labor as the state appropriations bill was considered.

Marketing
CPA participated in a task force charged with revising Reasonable Cost Guidelines on Reimbursement for Third Party Liability related to petroleum storage tank releases. The new guidance represents a balanced approach for reimbursing 3rd parties while not jeopardizing the Petroleum Storage Tank Fund.

CPA's Marketing Committee is working with the Oil Inspector to evaluate the possibility of reimbursing the cleanup of pre-1988 releases from petroleum storage tank sites that have not yet been remedied.

Air Quality
CPA has participated in numerous air quality rulemakings affecting the oil and gas industry.

In the past 3 years, CPA has averted a threatened withdrawal of the Reid Vapor Pressure waiver by spearheading a program in which refiners supplying product to Colorado's Front Range voluntarily agreed to lower summertime RVP. Colorado adopted the Ozone Maintenance Plan in January which included a permanent 9 lb. RVP level.

During the rulemaking process to adopt EPA's Any Credible Evidence rule into Colorado air regulations, CPA raised the issue of including a "presumption" in the rule emphasizing that reference tests performed as specified under EPA and state regulations will remain the benchmark against which other emissions/parametric data or engineering analysis will be compared in evaluating source compliance. CPA also secured clarification in the rule that it will not alter the stringency of any of Colorado's air regulations.

CPA worked with the Colorado Department of Public Health and Environment and the Regional Air Quality Council to thwart EPA's attempt to include individual Title V permits and 24-hour emission limits in the Denver PM10 maintenance plan. Those opposing the inclusions contended the permits and emission limits were already enforceable by EPA and emissions from the sources do not contribute significantly to the Denver area's particulate pollution. EPA's final approval of the PM10 maintenance plan will mean the Denver area has achieved attainment status for all pollutants regulated by the Clean Air Act.

BENEFITS OF MEMBERSHIP

• Recognition: Membership in CPA brings recognition as a leader in the oil and gas community
• Strength: Participation in association activities strengthens industry's influence in shaping public policy
• Information: CPA's communication efforts provide members with the latest information about legislative and regulatory issues as well as compliance strategies
• Responsiveness: CPA is responsive to members' inquiries and assists in finding answers to questions or problems a company might face

CPA STAFF:
Stan Dempsey, Jr., President
Sdempsey@1410grant.com

CPA Officers:
Randy Matsushima, Chairman
Colorado Refining Company