This article contemplates how SB 181’s tweaks to the forced pooling process and requirement for new COGCC public health and safety rules may practically serve to impede new oil and gas development in the State of Colorado.
Part I: Realignment of the COGCC and Delegation of Control to Local Governments. On Tuesday, April 16, 2019, Governor Jared Polis signed into law Senate Bill 181 ‘Concerning Additional Public Welfare Protections Regarding the Conduct of Oil and Gas Operations, And, In Connection Therewith, Making an Appropriate.’ The bill, referred to here as SB 181, … Continue Reading
The restrictive covenant on my property that says ‘no oil/gas drilling allowed’ means no one can develop the minerals under my property, right? Not exactly. Buyers of Colorado real estate often mistakenly rest easy knowing their property is subject to a restrictive covenant disallowing oil and gas development (referred to herein as a ‘no oil … Continue Reading
I want to purchase then develop vacant commercial property, but I don’t think the minerals are included. What should I do? Targeting a split estate property on pre-contract strategies, common pre-closing considerations, and legal tools to repair split estate complications.
Why is the Duration of an Oil and Gas Lease Confusing? The duration of an oil and gas lease is the cause of a lot of confusion – and for good reason. An oil and gas lease contains two ‘terms,’ a primary term and a secondary term. If the lease carries over from primary term … Continue Reading
Article Updated: 7/11/2018 The oil and gas company told me to sign the lease or they would ‘force pool’ me. Can they do that? Yes, but it’s not as bad as it sounds. The term ‘forced pooling’ is slang for Colorado statute CRS § 34-60-116(6) that allows the oil and gas company to apply for … Continue Reading
I am purchasing a new property. Are the mineral rights included? The specific language in a property’s prior conveyances, known as the chain of title, dictates whether the rights to the minerals are included in the purchase. As clearly disclaimed in the Colorado Contract to Buy and Sell Real Property, buying a property does not … Continue Reading
Can I keep my mineral rights? Yes. The general rule of thumb is that minerals run with the land so the mineral ownership and rights to existing royalty payments (if any) pass with the land to the new owner. A landowner must actively reserve or convey the minerals to avoid passing them to a new … Continue Reading
They want to drill on my property and they own the mineral rights. Is there anything I can do to minimize the impacts? Property owners in Colorado often ask this question when they own the surface rights but not the mineral rights. While they may feel powerless, they do have enforceable rights and can take steps … Continue Reading
Owner purchased Black Acre in 1987 for $60,000 from Seller. Seller conveyed Black Acre to Owner through a general warranty deed. Seller paid for a title policy. The title company which issued Owner’s policy did not find a recorded mineral reservation against Black Acre and therefore failed to show the mineral reservation as an exception … Continue Reading