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Committee moves DNR cleanup bill that includes $5M litigation fund and statutory clarifications

Senate Natural Resources, Agriculture and Environment standing committee · February 24, 2026

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Summary

House Bill 157 (third substitute) passed out of committee unanimously; sponsors said it is a technical cleanup for the Department of Natural Resources that clarifies rulemaking, records retention, mineral-lease processes and provides $5 million for ongoing water litigation and other DNR needs.

Representative Shipp presented HB 157 as the Department of Natural Resources’ annual cleanup bill, describing a package of technical changes across divisions. The bill clarifies that some divisions may exercise rulemaking authority without advisory boards, aligns law-enforcement work-period language, allows the state engineer to retain records electronically or physically, clarifies mineral lease and royalty contract application directions, and repeals a partially removed alternative energy tax credit.

Representative Shipp and Nathan Schwabach, deputy director of DNR, told the committee the bill also includes a $5,000,000 allocation for ongoing litigation expenses that could arise from Colorado River or other water litigation. Schwabach described the cleanup process as regular, technical maintenance for agency efficiency.

Senator Stratton and others asked how new rulemaking authority would be coordinated with legislative oversight; the sponsor and committee members pointed to existing reporting and rule-approval processes. Senator Hankins moved a favorable recommendation and the committee approved the substitute unanimously.