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					  Regulatory Interface Between the
State of Colorado and Federal Agencies
          Nick A. Swartzendruber
      Poulson, Odell & Peterson, LLC
            Mesa State College
      Energy Management Symposium
          September 17-18, 2009
Responsibilities of the
Bureau of Land Management

Nationwide: 256 million
surface acres, 700 million
mineral acres


Colorado: 8.4 million surface
acres, 29 million mineral acres
Responsibilities of the
United States Forest
Service

Nationwide: 193 million surface
acres (national forests and
grasslands)


Colorado: 15 million surface
acres
 State of Colorado Regulatory Scheme




• Source of authority: police power
• Manner exercised
  –   Colorado Oil and Gas Conservation Act
  –   Colorado Oil and Gas Conservation Commission
  –   Prevention of waste
  –   Protection of correlative rights
  –   Environmental regulation
COGCC Environmental Regulation
• House Bills 1341 and 1298 (2007)
• COGCC Rulemaking (2008)
  –   Chemical inventories
  –   Compliance checklists
  –   Form 2A
  –   Public water system protection
  –   Dust and odors
  –   E & P waste management
  –   Stormwater management
  –   Reclamation and weed control
  –   Wildlife protections
   Federal Regulatory Scheme
• Source of authority: Property Clause
• Basic approach
• Land management
  – Federal Land Policy & Management Act
  – National Forest Management Act (shorthand)
• Environmental/operational regulation
  –   National Environmental Policy Act
  –   43 C.F.R. Part 3160, 36 C.F.R. Part 228, Subpart E
  –   Onshore Oil and Gas Order No. 1
  –   Others
                Federal Statutes
• FLMPA
  – Policy
  – Planning processes
• NFMA
  – Policy
  – Planning processes
• NEPA
  –   Purpose
  –   Triggers
  –   Process
  –   Timing and tiering
  –   Categorical exclusions
   Onshore Oil & Gas Order No. 1
               Approval of Operations
• Authority: 43 C.F.R. Part 3160, 36 C.F.R. Part 228, Subpart E
• Applications for Permits to Drill
   – Early communication and consultation
   – Notice of Staking option
   – Onsite inspection
   – Incorporation of BMPs
   – Drilling and surface use plans
   – Timeframes
   – NEPA
   – Conditions of approval
   – Master Development Plans
   – Substantive environmental/operational requirements
   – Subsequent operations
   Law of Federal Preemption
• Supremacy Clause
• Types of preemption
  – Express
  – Implied
    • Field
    • Conflict
       – Actual
       – Frustration of federal objectives
                 Principal Cases
•   Kleppe v. New Mexico (the wild burros case)
•   Ventura County v. Gulf Oil Corp.
•   California Coastal Comm’n v. Granite Rock
•   Takeaways
    –   The clear cases
    –   The not so clear cases: frustration of purpose
    –   The regulation/prohibition distinction
    –   Procedural posture
     Federal State Cooperation
• Federal statutes
   – Mineral Leasing Act
   – FLMPA and NFMA
   – NEPA
• Federal oil and gas rules
• Cooperative conservation/ “4 C’s” initiative
   – Executive Order 13352
   – Interagency memoranda of understanding
      • Spacing, pooling, requests for increased well density
      • Oil and gas operation permitting
 COGCC-USFS-BLM Permitting MOU

• Process
  – Concurrent filing
  – State participation in federal process
  – Incorporation of state standards
• Observations/questions
  – Practical effects
  – NEPA issues
  – “At least as stringent” language
Special Split Estate Considerations
• Federal minerals/fee surface
• Land grant statutes
• Scope of issue
   – Nationwide, 58 million acres
   – Colorado, 5.2 million acres
• Federal framework
   – Mineral estate “dominance”
   – Numerous surface owner protections
• State framework
   – House Bill 1252 (C.R.S. § 34-60-127)
   – House Bill 1298 (C.R.S. § 34-60-128) surface owner consent
     provision
• Synthesis
Conclusion

				
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posted:9/9/2012
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