CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT

Transcription

1 CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT HOW THE TWO CAN COEXIST

2 Colorado Cattlemen s Agricultural Land Trust (CCALT) o Founded 1995 o First land trust founded by a livestock association o 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 easements o More than 465,000 acres conserved

3 What a conservation easement seeks to accomplish This Not this

4 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

5 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

6 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)

7 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

8 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

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10 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

11 Review Title Negotiating with a Conservation Organization 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

12 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

13 Questions? Erik Glenn Executive Director Colorado Cattlemen's Agricultural Land Trust 8833 Ralston Road Arvada, Colorado (303)

14 CASE STUDY (North Park) 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 What worked: Early communication Communication throughout Respectful negotiation Solution: No surface occupancy lease