Surface damage bill a good bill for landowners
Untitled
Colorado
The Senate Agriculture, Natural Resources & Energy Committee overwhelmingly passed HB 1185 on March 16. The legislation establishes a process for surface damage compensation negotiations when oil & gas drilling takes place on private land.
"This legislation is good for landowners", said Alan Foutz, President of Colorado Farm Bureau. "We would like to commend legislators on both sides of the aisle who have recognized that this legislation protects the rights of both the surface owner and the mineral estate owner."
For the first time in Colorado law, HB 1185, sponsored by Representative Kathleen Curry, D-Gunnison, and Senator Jim Isgar, D-Hesperus, would require oil and gas operators to negotiate in good faith with landowners to arrive at a surface use agreement.
The bill has resulted in bitter debates in both the House and the Senate by groups representing agricultural landowners, oil & gas operators, surface developers and the environmental community. In spite of this, the bill has been granted approval by a large vote margin. It was approved by the House of Representatives by a 60-3 vote and the Senate Agriculture, Natural Resources & Energy Committee by a 6-1 vote.
Colorado Farm Bureau strongly supports HB 1185 because it guarantees surface owners the right to negotiate a compensation package prior to the start of development. Language in the bill establishes a process that includes guaranteed negotiations for a surface use agreement, an appraisal process for determination of damages, and after all administrative process have been exhausted, surface owners have the right to go to court to settle differences.
"HB 1185 provides for more protection for landowners than they currently have under existing law," said Foutz. "The oil & gas industry has reached out to landowners by recognizing that there needs to be reasonable compensation for damages resulting from oil & gas activity."
Date: 3/23/06
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