Many of your readers are land, mineral and royalty owners, in Colorado and other states.
In 2000-2001, there was renewed push to lease mineral interests and drill wells, in the region. With this renewed interest comes the need for informed mineral interest owners.
In 1980, the National Association of Royalty Owners (NARO) was created "to organize the millions of people, families, schools, churches, corporations and companies that own mineral rights. Mineral rights produce royalty revenue, which makes house payments, pays college tuition for the kids and is the retirement income that makes the difference for those golden years."
NARO has produced a concise, well organized pamphlet entitled, "Oil and Gas Leasing for Mineral Owners." It can be down-loaded and printed free, on two sheets of legal size paper, from it web site, www.naro-us.org. You also can reach NARO by mail, at NARO, PO Box 5779, Norman, OK 73070-5779; via e-mail, at email@example.com; or telephone, at 405-573-2972. You can contact the Rocky Mountain Chapter through the chapter president: Janice Good, PO Box 968, Leadville, CO 80461; telephone, 719-486-3372.
The pamphlet covers things you should know before you lease, defines terms, such as "spacing units" and "force pooling," and outlines what you should know before you sign a Division Order.
Another good reason for Colorado residents to become more informed, as quickly as possible, is the probability of Colorado legislative action, in the near future, that will impact royalty payments. Last year, Senate Bill 141 would have over-turned a Supreme Court ruling in a Yuma County District Court case. The proposal of that bill, by the Colorado Oil and Gas Association, brought up enough opposition from royalty owners statewide that the House amended it to set up a committee to study the issues. Because the Senate didn't bring SB 141 to a final vote, it died.
Don Ament, Colorado commissioner of agriculture, under the Colorado Department of Agriculture's Ag Insights Group, has set up an Informal Oil and Gas Working Group to study the issue of royalty payments, in Colorado. The group consists of representatives of royalty interest owners, producers and over-riding interest owners. So far, members seen to agree that Colorado needs to clarify, change or create statutes in order to improve relationships between producers and royalty owners.
The working group met Aug. 25 and Sept. 25. The best source of information about the working group would be to contact Don Ament, Colorado Commissioner of Agriculture, 700 Kipling St., Lakewood, CO 80215-5894; or fax, 303-239-4125; or telephone, 303-239-4100.--Mary Lou Brophy, Wray, CO.