CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT HOW THE TWO - PowerPoint PPT Presentation

CONSERVATION EASEMENTS & OIL AND GAS DEVELOPMENT HOW THE TWO CAN COEXIST Colo lorado, rado, From om One Genera ration tion to the Next…

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 Colo lorado, rado, From om One Genera ration tion to the Next…

What a conservation easement seeks to accomplish This… Not this… Colo lorado, rado, From om One Genera ration tion 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 Colo lorado, rado, From om One Genera ration tion 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 Colo lorado, rado, From om One Genera ration tion 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) Colo lorad ado, , From om One Genera ration tion 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 Colo lorado, rado, From om One Genera ration tion 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 Colo lorado, rado, From om One Genera ration tion 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 Colo lorado, rado, From om One Genera ration tion 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 Colo lorado, rado, From om One Genera ration tion to the Next…

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 : What worked: • Develop one well pad per 320 acres • Early communication • Communication throughout Solution: • Respectful negotiation • Negotiated to one well pad per 640 acres • Mutual understanding

Questions? Erik Glenn Executive Director Colorado Cattlemen's Agricultural Land Trust 8833 Ralston Road Arvada, Colorado 80002 (303) 225-8677 EGlenn@ccalt.org

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 What worked: Request : • Early communication • Develop mineral estate post • Communication throughout easement • Respectful negotiation Solution: • No surface occupancy lease Colo lorado, rado, From om One Genera ration tion to the Next…