Welborn is proud to announce a pivotal win on behalf of its client Verdad Resources LLC, capped by the Colorado Court of Appeals published decision in Myrick v. Colorado Energy and Carbon Management Commission, 2026 COA 61.
In a case of first impression, overriding royalty owners argued that they should be paid oil and gas proceeds from a well’s first production despite their parent working interest having elected to nonconsent the well, not participate in paying the well’s costs, and having been force pooled pursuant to Colorado’s pooling statute, C.R.S. § 34-60-116(7).
The case was first heard before the Colorado and Energy and Carbon Management Commission (“ECMC”), where Welborn attorney, Joe Pierzchala, successfully represented Verdad resulting in an ECMC order holding that the overrides were subject to the same treatment under C.R.S. § 34-60-116(7) as the parent working interest from which the override derived and therefore were not entitled to payment until after the well reached payout.
Welborn attorneys Sam Bacon and Mr. Pierzchala then successfully defended that decision through two successive appeals — securing a clean sweep at every stage of review. The Court of Appeals’ order affirming the ECMC order brings a definitive end to years of contested proceedings and underscores Welborn’s strength in energy regulatory litigation and appellate advocacy.
Congratulations to Sam, Joe, and the Verdad team on a hard-earned and well-deserved result, establishing clear law for oil and gas operators across the State of Colorado.
The opinion is available at https://www.coloradojudicial.