A recent decision from the Colorado Court of Appeals (“Court”) could mean a new focus for the Colorado Oil and Gas Conservation Commission (COGCC). On March 23, a three-judge panel issued a split decision in Martinez v. Colo. Oil & Gas Conservation Comm'n, 2017...
Oil & Gas
Earthquakes: State Regulation of O&G Injection Wells Is OKOklahoma Judge Dismisses Federal Lawsuit on Jurisdictional Grounds
On Tuesday, April 4, 2017, Judge Stephen P. Friot, United States District Court for the Western District of Oklahoma, dismissed a nationally significant lawsuit brought over earthquakes linked to oil and gas wastewater injection wells on jurisdictional grounds. See...
Nonconsenting Owner in a Colorado Oil and Gas Well Must First Pursue Claim for Payment of Proceeds of Production at COGCC – not District Court
A recent Colorado Court of Appeals decision involves two parts of the statutes regarding the Colorado Oil and Gas Conservation Commission (Commission): the pooling statute and the statute regarding payment of proceeds of production. In Grant Brothers Ranch, LLC v....
CAUTION: New Federal Oil And Gas Royalty Regulations Take Effect January 1, 2017
The U.S. Department of Interior recently announced new regulations (effective January 1, 2017) governing how federal royalties on oil and gas produced from federal leases are to be calculated. These regulations make some significant changes on how lessees are to value...
Don’t Risk Litigation Over the Arbitration Clause in Your Oil and Gas Lease
The arbitration clause in an oil and gas lease is likely not the most hotly negotiated term or even one that the parties think twice about. However, recent litigation in Pennsylvania should serve as a reminder to lessors and lessees to be aware that a poorly drafted...
The Dakota Access Pipeline and What It Means
On September 9, 2016, 30 minutes after winning and stopping the Standing Rock Sioux Tribe’s (“Sioux” or “Tribe”) request to enjoin the Dakota Access Pipeline (“DAPL”), the Obama administration upended the rule of law. The Departments of Justice, Army and the Interior...
Revisiting Proposed Initiatives 75 and 78 and Amendment 71
On August 29, 2016, Colorado Secretary of State Wayne Williams found that the proponents of Proposed Initiative 75 (Local Government Control of Oil and Gas Development) and Proposed Initiative 78 (Mandatory Setback from Oil and Gas Development) did not collect the...
BLM Fracking Rule Dead—For Now
It was an interesting week for BLM’s hydraulic fracturing rule first finalized and then immediately challenged on March 26, 2015. On Monday (June 20, 2016), the BLM filed its final brief in the Tenth Circuit arguing that the Wyoming Federal District Court erred when...
Look Out! A Colorado Court Finds that a Mineral Reservation in the Habendum Clause of a Deed, Not the Granting Clause, is a Valid Reservation
An old rule of thumb for title examiners was that a mineral reservation needs to be in the granting clause, not the warranty clause, of a deed to be valid. As the courts have moved to seeking to determine the parties’ intent in a deed, these old rules have been...
Colorado Severance Tax – New Case Allows Operators To Deduct The Cost Of Capital
A decision in late April, 2016, by the Colorado Supreme Court, allows deduction of the cost of capital for construction of gas processing and transportation facilities in calculating Colorado severance tax. In BP America Production Company v. Colorado Department of...
2012 and 2013 Local Fracking Regulations Held Invalid and Preempted by State Law
In companion decisions issued May 2, 2016, the Colorado Supreme Court (Gabriel, J.) affirmed district court summary judgment orders invalidating home-rule oil and gas regulations concerned with hydraulic fracturing (“fracking”). The Court relied on the intent and...
More Oil and Gas Regulation Headed for Colorado Ballots?
Come November, Colorado voters may decide whether oil and gas development should be subjected to more stringent regulation. Three ballot initiatives proposed by Boulder-based Coloradans Resisting Extreme Energy Development have survived legal challenges and are now...