Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

A proposal is being heard by the Colorado Senate Committees of Agriculture, Natural Resource, & Energy Thursday regarding compensation for mineral owners whose property value is reduced due to regulations limiting hydraulic fracturing. The bill is one of many being considered in Colorado during state’s ongoing discussion about fracing.

The bill states that the owner of any land which has its market value reduced by 60% or more by “an ordinance, resolution, rule, regulation, or other form of official policy concerning mineral extraction operations” will be compensated for the value of their land.

If the value of the land is reduced by at least 60%, “the bill specifies that the owner’s interest is deemed to have been taken for public use,” and in such cases, “the bill allows the owner to obtain compensation from the local government for the full diminution in the fair market value of the owner’s interest.”

The bill goes on to establish a framework in which owners can seek compensation from the local government, and their rights in obtaining compensation. Mineral owners can choose to have their case heard in a district court, by the board of commissioners or a jury. The bill also states that land owners may challenge the value determination if they feel it is too low, but the state is only able to challenge the determination if it thinks the amount is too high after it has posted a bond for the full amount of the award.

The governor of Colorado’s Oil and Gas Task Force, a broad citizen coalition representing the environmentalists, oil and gas industry, real estate developers and others, is also addressing the issue of how to handle local government rules and regulations relating to oil and gas operations around the state.  The task force’s next meeting is scheduled for Feb. 24, 2015 in Denver.

The bill can be read in full by clicking here.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.