About the Oil & Gas Production Fee
Due to the passage of Senate Bill 24-230, effective July 1, 2025, Colorado imposes a fee on all oil and gas produced in Colorado. Known as the Oil & Gas Production Fee, this fee includes the Production Fee for Clean Transit and the Production Fee for Wildlife and Land Remediation.
Every producer of oil and gas in Colorado is responsible for reporting the volume of oil and/or gas produced during the preceding calendar quarter and paying the fee amount due. The production fee amounts fluctuate based on the average spot price of oil and gas during the quarter. Average spot prices will be published after the end of each quarter by the Energy & Carbon Management Commission (ECMC). In general, the producer responsible for remitting the separate Oil and Gas Conservation Levy to ECMC will be responsible for remitting the Oil & Gas Production Fee.
Oil and gas are defined and quantified in the same manner as reported to the ECMC on Form 7. The fee is reported in barrels of oil and MCF’s of gas produced.
- Barrel means 42 U.S. gallons at 60 degrees Fahrenheit at atmospheric pressure.
- MCF means one thousand cubic feet.
- Gas means all natural gases and all hydrocarbons not defined as oil, and includes natural gas liquids.
- Oil means crude petroleum oil and any other hydrocarbons, regardless of gravities, that are produced at the well in liquid form by ordinary production methods and that are not the result of condensation of gas before or after it leaves the reservoir.