On June 19, 2017, the Colorado Supreme Court ruled against the petition of Kinder Morgan CO2 Co., LP -- the operator of oil and gas leaseholds -- disputing the Montezuma County Assessor's 2009 corrective tax assessment on leaseholds for the prior tax year which...
Oil & Gas
Paris Agreement Exit: Who Holds the Real Power?
President Trump announced on June 1 that the United States is withdrawing from the Paris Agreement. The announcement follows months of uncertainty about whether President Trump would fulfill his campaign pledge to withdraw U.S. participation in the deal (which was...
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...
Unintentional Misconduct and Standardless Discretion: The Department of Interior’s New Rules for Valuing Oil, Gas and Coal
The Office of Natural Resources Revenue (ONRR) within the Department of the Interior issued new royalty valuation rules on July 1, 2016. Although the goal of the regulations is to simplify the calculation of royalties on federal oil, gas and coal, the 65 pages of...
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...












