CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT …dadoa.memberlodge.org/resources/Documents/2016...
Transcript of CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT …dadoa.memberlodge.org/resources/Documents/2016...
Colorado, From One Generation to the Next…
CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT
HOW THE TWO CAN COEXIST
Colorado, From One Generation to the Next…
Colorado Cattlemen’s Agricultural Land Trust (CCALT)
o Founded 1995o First land trust founded by a livestock
associationo 6 other western states have followed
Colorado’s lead (WY, MT, TX, CA, OR & WA)
o State-wide land trust
o Nationally Accredited Land Trust
o 292 conservation easementso More than 465,000 acres conserved
Colorado, From One Generation to the Next…
What a conservation easement seeks to accomplish
This… Not this…
Colorado, From One Generation to the Next…
The Basics of Conservation Easements (10,000 foot level)
• Voluntary agreements held by Qualified Organizations (501(c)3, Govt. or Tribes)
• Created under both state and federal law• Runs with the land• Recorded in the property records• Landowner retains title to the property• Perpetual• Meant to restrict certain uses in order to protect
certain resources
Colorado, From One Generation to the Next…
Eligibility Requirements
Legal requirements (Conservation Purposes)• Relatively natural habitat• Outdoor recreation or education• Open space/scenic• Historically important areas
Organizational requirements• Depends on the organization
Colorado, From One Generation to the Next…
What a conservation easement does…
Restricts development (including oil and gas) and subdivision
Typically prohibits severance of water rights and mineral rights (those rights owned by the surface owner)
Protects designated resources
What a conservation easement does NOT do…
Require public access Prohibit the property from being sold Stop condemnation Stop development of minerals (typically)
Colorado, From One Generation to the Next…
What rights are typically conveyed through an easement?
Development rights (including mineral rights if owned by landowner)
The right to divide the property
The right to share in proceeds earned from condemnation
The right to be a party to negotiations with third parties
Colorado, From One Generation to the Next…
Energy and Conservation: Traditional Resources
Mining by surface methods (eg, open pit coal mining, commercial gravel, etc.) is prohibited.
Subsurface mining (eg, oil & gas) is allowed if… It is limited It is localized It is not irremediably destructive of significant
conservation interests
Colorado, From One Generation to the Next…
What do conservation organizations care about?
Protection of the conservation values
Siting of infrastructure and spacing
Reclamation Bonding (sometimes)
Other rights being sought Roads Future lines
Colorado, From One Generation to the Next…
Negotiating with a Conservation Organization
Review Title
Call the conservation organization
Respect the easement & the organization
Recognize the rights of the easement holder
Understand that your work is taking time and energy away from organization’s primary mission and objectives
CASE STUDY (Weld County)Background:• 640 acre ranch• Easement conveyed in ’09• Protect scenic views, ranchland, native
prairie and prairie obligate species habitat
• Severed mineral estate
Request: • Develop one well pad per 320 acres
Solution:• Negotiated to one well pad per 640 acres
What worked: • Early communication• Communication
throughout• Respectful negotiation• Mutual understanding
Questions?
Erik GlennExecutive DirectorColorado Cattlemen's Agricultural Land Trust8833 Ralston RoadArvada, Colorado 80002 (303) [email protected]
Colorado, From One Generation to the Next…
Background:• 729 acre ranch• Easement conveyed in ’08• Protect scenic views, ranchland,
riparian corridor and sage grouse habitat
• Landowner owns mineral estate
Request: • Develop mineral estate post
easement
Solution:• No surface occupancy lease
What worked: • Early communication• Communication throughout• Respectful negotiation
CASE STUDY (North Park)