PATH FORWARD: What Updates to Colorado SB-181 Mean for Oil Producers

Significant changes to Colorado regulations for mechanical integrity, under Senate Bill 181 (SB 181), which went into effect Jan. 15, are set to add further strain on oil and gas producers, according to an expert in asset performance management with Vysus Group, formerly Lloyd’s Register Energy.

“Many operators based in Colorado will need to allocate additional funds and increase maintenance OPEX budgets to accommodate the new requirements. And the costs are not insignificant,” Jamie Davidson, Americas regional business development manager of asset integrity and maintenance optimization at the Vysus Group, told Hart Energy’s Faiza Rizvi. 

The Colorado Oil and Gas Conservation Commission forecast that these now mandatory tests will result in an annual cost to industry of around $25 million per year, Davidson said.