National Association of Division Order Analysts October / November / December 2024
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Volume MMXXIV • No 4
www.NADOA.org
Contents Feature
Articles
NADOA 2024 Officers President Vicki Danielson, CDOA 1st Vice President Kimberly Bowman 2nd Vice Presiden t Jean Hinton Treasurer Valerie Wible, CDOA Corresponding Secretary Lola Strickland Recording Secretary Melanie White, CDOA
Membership Recognition Awards................................................6 Legislative Updates Colorado-Pore Space Ownership & Carbon Storage Regs..................................................................8 Wyoming-Split Estate Act Overview........................................10 Clean Energy Hubs....................................................................14 Institute Highlights....................................................................19
In This
Issue
The NADOA News Magazine is a quarterly publication of the National Association of Division
President’s Corner..............................................................1 Decimal Points...................................................................2 Certification....................................................................... 3 Election Results...................................................................5 New Members...................................................................14 Counterpart Connections.................................................15 Calendar of Events...........................................................31
Order Analysts P O Box 1656 Palm Harbor, FL 34682
Subscription: By membership to NADOA, at $100.00 per year. News Magazine Editor Rona L. Erickson, CDOA magazine@nadoa.org
Graphic Design, Paul Beach
On the Cover: Oklahoma City National Memorial Photo Courtesy of Oklahoma City Convention & Visitors Bureau
All rights reserved. No part of this publication may be reproduced/copied without written permission. Editorial disclaimer: The contents of this newsletter are intended for member use only and any other use without permission from the NADOA Board of Directors is strictly prohibited. Articles published herein represent the view of the authors; publication neither implies approval of the opinions expressed nor accuracy of the facts stated and NADOA accepts no liability for misprints.
President’s
Corner
Vicki Danielson, CDOA 2024 NADOA President
All I can say is……. Thank you, thank you, thank you to everyone who helped in making this year’s NADOA Conference a Success. Yes, a Success!! I truly believe it was a Success!!
Back in January when the planning process began, I felt overwhelmed with all the things I wanted to include in this year’s conference. Residing in Houston I wanted to showcase a bit of the Oklahoma culture that I grew up with and expose those who had not been to Oklahoma. The Native American Indians were on my mind, and I just could not close out the conference without providing a taste of their culture. The Thursday night event was over the top. So much fun, with games, prizes, great food, in a relaxed atmosphere. The classes were well attended, so much so that we ran out of chairs in some and I apologize to those who had to stand. But I am grateful you went to class. Our Keynote speakers were amazing with the information they had to share. I am very pleased with how well everything was attended. This could not have been a success if it were not for the wonderful committee members and board members and all their hard work. It is now time to pass the torch to next year’s President, Kim Bowman. Kim has a great group of dedicated and hard-working individuals ready to get their feet on the floor and start planning the 2025 NADOA Institute in Boston. I am looking forward to another successful year for NADOA. I encourage all of you to volunteer and get involved, whether it be with NADOA or your local association. The rewards are great. Meeting new people, making new friends and opening all sorts of opportunities.
As the year ends, I wish you all a joyous holiday with your family and friends on Thanksgiving, and a blessed and Merry Christmas and a Happy New Year.
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NADOA
Decimal Points
Remember to keep your NADOA directory information updated. Due to all the changes taking place in our industry and the world, it is more important than ever to maintain professional contacts and receive the educational benefits of membership in NADOA. If you have a suggestion for someone to act as a Regional Reporter to help NADOA keep abreast of current legislation and legal issues for your region, please submit the name or the name of the firm. ADVERTISE WITH NADOA Advertising in the NADOA Newsmagazine is a great way to get your business name out to NADOA members. Contact Cheryl Hampton at champton@limerockresources.com for details. First Quarter.....................................January 31 Second Quarter...................................... May 2 Special Institute Edition......................... June 6 Third Quarter..............................September 12 Fourth Quarter............................November 14 2025 News Magazine Deadlines NADOA online Job Bank has new postings. Visit: http://www.nadoa.wildapricot.org/page-662233
Regional Reporters
ABADOA
Steptoe & Johnson PLLC Ryan.daniels@steptoe-johnson.com
CAPDOA DADOA
OPEN
Kelly Sandoval, CDOA Kelly.sandoval@sitio.com
DALWORTH Lewis Box, CDOA lewis.box@gmail.com HADOA Emily Sheffield
esheffield@oglawyers.com
PBADOA
OPEN
SADOA
Dena Blevins dblevins@frontierland.net
Arkansas
OPEN
Kansas
Amy Flaming Amy.flaming@chsinc.com Kimberly A. Backman kbackman@crowleyfleck.com Zachary P. Oliva zoliva@oglawyers.com Margaret Patton mpatton@pattonfirm.com
North Dakota
New Mexico
Louisiana
2024 News Magazine Team Rona Erickson , CDOA Editor Susan Bradley, CDOA Associate Editor Cheryl Hampton Associate Editor
Armando Lopez Associate Editor
Sonya Turner, CDOA Associate Editor
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CANDIDATES FOR CERTIFICATION Publication of the following “Certified Division Order Analyst” applicant(s) fulfills the requirement as stated in the Voluntary Certification Policy, III C.2 which states: “…applicant’s name will be published in the NADOA Newsletter or other official publication of NADOA.” This allows the NADOA membership an opportunity to present objections to the certification of the applicant. Any objection to the certification of the applicant must be in writing and signed by a NADOA member or non-member who qualifies his knowledge and objection of the applicant. All such letters will be considered confidential and must be received by the NADOA Certification Committee at the following address within thirty (30) days following the last day of the month in which the Newsletter or other official publication of NADOA was published: NADOA Certification Committee P O Box 1656 Palm Harbor, FL 34682 If the objection warrants denial of the certification or temporary withholding of certification, the applicant will be notified by Certified Mail. CANDIDATES FOR CERTIFICATION
CANDIDATES FOR RECERTIFICATION Anthony B Daniel – Dallas, TX
Mikayla Inlow – Houston, TX
Tanya M Almon – Mount Vernon, IN Yoli Bazan Colletti – Houston, TX Dalton Donaldson – Midland, TX Evan Hanes – Dallas, TX Roxanne L Heath – Oklahoma City, OK Danny Peach – Oklahoma City, OK
Dawn Podrazik – Midland, TX Douglas M Potter – Highlands Ranch, CO Amy L Smith – Oklahoma City, OK Shirley Smith – Snyder, TX Brandon S Wallace – Dallas, TX Valerie K Wible – Oklahoma City, OK
Managing your CDOA account: • Log into CDOA account. (https://members.nadoa.org/ OR https://nadoa.org/ certification/), click Self Certification. Use GOOGLE CHROME if possible • Once logged in, update password if needed • Go to My Account to log employment or continuing education credits • Click on Add a Credit then “select a preapproved credit” for a drop down list of preapproved education events
Beginning January 1, 2025, CDOA credits will need to be accompanied by an official CDOA Credit Request Form, similar to those that other professional organizations use to request credits. This form will be available on the NADOA website.
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Becoming a CDOA If you are interested in applying to become a Certified Division Order Analyst, please go to https://nadoa. org/certification/. Application and sponsor forms are available on the certification page. When ready to study for the CDOA exam, in addition to the CDOA study guide there are Quizlets available to assist you. Download the free app to use Quizlet to study on your phone. To find the Quizlets, go to www.Quizlet.com. Sign up for a free account if you want to track your progress. Search “CDOA” and then click on the “VIEW ALL” button. ***Note: there is another group with CDOA Quizlets that do not cover oil and gas. If you open one of these, just close and go on to the chapter you’re looking for. Click on “RESULTS” for a large list of quizzes/information. Scroll through the list on the left for available information. When you open a study chapter, information can be reviewed through the “LEARN” button. Use “FLASHCARDS” to quiz yourself on the information. The “MATCH” option puts up tiles of information for you to match. Finally, “TEST” your knowledge. More information on Quizlets will be published in the NADOA News Magazine in 2025. News Bulletin: The CDOA Committee, along with other CDOA’s, will launch a Study Group beginning in March 2025. This study group will be an online series in the GoToMeeting format so that attendees can easily ask questions and interact with the presenter. More details coming soon.
CDOAs whose certifications are due to expire
Name
ID
Chapter DADOA
Name
ID
Chapter HADOA CAPDOA Retired CAPDOA
Stanley Vargas Maryann Maimo Angela Dempsey David Carrico Nicholas Brewer Daniel Dovalina John Massie Anita Hulsey Melanie White
698 697 696 302 695 694 436 565 428 619
Scott Strahan Leigh Price Teresa Offutt Dea Mengers April Hubbard David Elliott Barbara Davis
560 579 563 569 618 432 425 427 414
CAPDOA
DALWORTH
HADOA
Cynthia Allison-Hynson
HADOA DADOA CAPDOA HADOA
DALWORTH
Jacqueline Clotfelter
Retired HADOA
Laurie Chase
We would like to thank everyone who attended the CDOA Q&A classes at the Oklahoma City Institute. We fielded many many questions and had lots of great ideas and suggestions from those in attendance. The CDOA Committee will be holding annual testing at the upcoming NADOA 2025 Institute in Boston on Saturday, August 30, 2025. I would like to thank the 2024 CDOA Committee for diving in and working so hard to achieve our goals for this year. They have been amazing!!!! As a committee, we are working towards getting a REVISED Study Guide and Exam to those who will be eligible and interested in testing; however, it will be several years before this is completed due to the amount of work involved. We’ve heard your requests and hope that the planned CDOA Study Sessions will encourage those interested to go ahead and apply and test.
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THE VOTES ARE IN AND THE RESULTS ARE FINAL FOR THE 2025 NADOA BOARD
By Norma Dooley The 2025 elected Board members were announced at our annual Institute in Oklahoma City in October. I want to thank those who participated on the Nominating Committee, who assisted in finding candidates to run: Betty Davidson, Lisa Buffaloe, Cheryl Hampton and Kim Bowman. With a total count of 284 members voting, I want to also say Thank you to the Tellers Committee who helped certify the ballot count: Valerie Wible, Betty Davidson, Brenda Pirozzolo and Sandi Rupprecht. A special THANK YOU to all the candidates who ran for the Board as well as the Local Directors. Below are the results:
President .................................... Kim Bowman 1st Vice President ....................... Jean Hinton 2nd Vice President ...................... Armando Lopez Treasurer ..................................... Iris Alcantara Recording Secretary .................... Samantha Rodelo Corresponding Secretary ............ Nichole Dwire Board Advisor ............................. Vicki Danielson, CDOA CAPDOA ................................... Lola Strickland DADOA ..................................... Sandi Rupprecht Dalworth .................................... Norma Dooley HADOA ..................................... Cyrus Perkins PBADOA .................................... Sarah Rotan SADOA ...................................... Cyndi Price
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2024 NADOA Membership Recognition
Corporate Award - Is presented to the group or company that has contributed to NADOA’s growth and development, the Division Order profession, and/or industry during the past year. This company supports the division order profession by allowing their employees to volunteer on local and national boards and attend events. This year we present the Corporate Award to ENDEAVOR ENERGY RESOURCES .
Education Award - This award is presented to the NADOA member who has dedicated their time and service to the betterment of Division Order Professionals through influence and mentorship. This analyst has worked with relentless dedication and commitment for many years on the CDOA Certification Committee. This same excellence of dedication and commitment can also be seen in her roles of leadership in her workplace. She has trained, encouraged, educated and mentored her teams. She is to be commended and recognized for her contributions to NADOA, her colleagues and the industry as a whole. This year’s Education Award is given to SHERRY WERTH, CDOA . Accepting the award on behalf of Sherry is Charles Goldsmith Russell Schetroma Memorial Speaker’s Award - This award is presented to an individual who has contributed to NADOA’s growth and development by speaking, educating and sharing knowledge on numerous occasions to the NADOA Membership, the Division Order profession and/or the industry during the past year. This speaker is a great speaker and gracious to her audience. Her pace is always right on and perfect timing for questions during her presentations. This year’s Russell Schetroma Memorial Speaker’s Award is presented to SHAWN MORGAN with Steptoe & Johnson. Accepting the award on behalf of Shawn is Paula Rauchfuss.
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Interaction Award - This award is presented to the NADOA member or affiliated organization who has had a positive community impact and extraordinary service and dedication in leading and promoting the Division Order profession. This member is a past HADOA President, Institute Committee Co-Chair, loves road trips, 5K participant and has been involved in NADOA in many facets while balancing work and personal goals. This year the Interaction award is presented to ARMANDO LOPEZ . Ellis Rudy Memorial Lifetime Achievement Award - This award is presented to the NADOA member who has exemplified the Division Order profession through demonstrated leadership contributions to the industry and the profession during his/her career. This member works to promote NADOA and the benefits of being a member. Is a regular go to when questions about anything NADOA arise. Always has a smile for you, is a past NADOA president and a great friend to many. It is our honor to present the Ellis Rudy Lifetime Achievement Award to NORMA DOOLEY .
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Legislative
Updates
Colorado Codifies Pore Space Ownership and Regulation of Carbon Storage Operations
Colorado
In May 2024, Governor Polis signed House Bill 24-1346 (“Act”) into law, which amended several statutes related to Colorado’s Energy and Carbon Management Commission (“Commission”). Among other things, the Act introduced the state’s first legislative authority governing the ownership of pore space and the regulation of subsurface carbon dioxide storage operations.
reserves the sequestration estate, including by broad reservation of the pore space.” 5
The Act also clarifies that ownership of the actual injected CO 2 , and the related facilities and equipment used for storage operations, is held by the geologic storage operator that injects it into a geologic storage resource approved by the Commission, or any other party who later acquires such rights from the original injecting owner. 6 Notably, these title-related provisions in the new C.R.S. § 34-60-140 are not intended to affect interests in pore space beyond the sequestration estate. The Act does not limit or impact the ability of a pore space owner to “(i) broadly convey or reserve all of the owner’s right, title, and interest in and to the pore space, including the owner’s interest in the sequestration estate; or (ii) convey or reserve any right, title, or interest in and to the estates in pore space other than the sequestration estate…”. 7 Further, these new statutes are prospective only and do not impact private or common law interpretations of any subsurface storage rights acquired or reserved before May 25, 2024. 8
The Act Adopts Majority Rule in Allocating Pore Space to Surface Owner
The Centennial State is now aligned with the majority ‘American rule’ in allocating pore space rights to the owner of the overlying surface estate. The Act defines “pore space” as any “cavity or void, whether natural or artificially created, in a subsurface stratum.” 1 The owner of the “sequestration estate,” or the interest(s) in any “geologic storage resource,” is the person who owns the pore space “necessary for geologic storage.” 2 In turn, “geologic storage” is defined as “the injection and underground sequestration of inject[ed] carbon dioxide in a geologic storage resource,” pursuant to a valid Class VI permit issued under the U.S. Safe Drinking Water Act, 42 U.S.C. 300f, et seq. 3 The Act creates a statutory presumption “that ownership of the sequestration estate in the state is vested in the owner of the overlying surface estate,” absent a severance pursuant to C.R.S. § 34-60-140(2)(b), which provides that “ownership of the sequestration estate may be: (i) severed from the overlying surface estate; and (ii) conveyed or reserved in the same manner as ownership of the mineral estate.” 4 In order to sever the sequestration estate from the surface, the parties must state such intent clearly in applicable muniments of title. Any conveyance of the surface of a tract of land will be deemed to include the grantor’s interest in the underlying sequestration estate, unless “the conveyance instrument expressly
The Act Expands Commission Authority to Regulate and Unitize Carbon Storage Operations
The Act broadens the purview of the Commission
to include the regulation of “energy and carbon
[1] C.R.S. § 34-60-103(37). [2] Id . at -103(40), -103(19). [3] See id . at -103(14). [4] See C.R.S. § 34-60-140(2)(a-b). [5] Id. at -140(3)(a-b). [6] See id. at -140(2)(a)(II)(b). [7] C.R.S. § 34-60-140(5)(c). [8] See id. at -140(5)(a-b).
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management operations,” including all “activities performed for the purpose of engaging in geologic storage in the state,” such as the construction, drilling and operation of injection wells, flow lines and related facilities used in the subsurface storage of carbon dioxide. 9 The Act authorizes the Commission to issue and enforce permits, collect fees, and establish other rules necessary to administer its statutory directions. 10 The Act empowers the Commission to issue unit orders that establish terms and conditions for the unitized operation of geologic storage facilities. The Commission may, upon application and hearing, issue a “geologic storage unit order” if such unitized development “is reasonably necessary to effectuate a geologic storage project.” 11 Each geologic storage unit order must be just and reasonable and establish a plan for unit operations. Specifically, the unit plan must include: (1) a description of the geologic storage area and proposed storage operations to be conducted; (2) an explanation of how storage rights are allocated in the unit area and how those several owners will be compensated for the proposed operations; and (3) a description of the proposed management, operation, term, and cost liability for the proposed storage unit. 12 Like unitized oil and gas development, all operations conducted pursuant to an effective geologic storage unit order on any portion of the unit area will constitute operations on each separately owned tract within the unit area. A storage unit order shall not be construed to transfer or convey any owner’s title to any part of the sequestration estate within the unit area. 13 For a geologic storage unit order to take effect, the unit plan must be “approved in writing by those persons that, pursuant to the geologic storage unit order, collectively own at least [75%] of the geologic storage resources included in the geologic storage unit area.” 14 An owner of a sequestration estate that was not included in a storage unit order may petition the Commission for inclusion. 15 In several aspects, the Act also broadens the scope of prior statutes such that Commission authority and procedure will extend to geologic storage operations much like they already applied to oil and gas development. For example, administrative penalties for violations set forth in C.R.S. § 34-60-121 were amended to cover
all “energy and carbon management” operators and operations. Similarly, the existing statutory promotion of local government jurisdiction over oil and gas operations also applies to geologic storage. 16 On the other hand, the Act, or any geologic storage unit order issued thereunder, expressly does not confer eminent domain authority on any approved unit operator. 17 regarding geologic storage siting and land use decisions to request that the Commission appoint a technical review board to assist the local government’s analysis of a given operation or decision. 18 The Act also directs the Commission to establish accounting procedures for CO 2 storage operations and to work together with the state’s Finally, the Act provides an avenue to local governments that are seeking technical assistance Department of Public Health and Environment “to facilitate the monitoring, verification and accounting of carbon dioxide in geologic storage operations.” 19
About the Author:
Jim Tartaglia , is an attorney with Steptoe & Johnson PLLC He concentrates his practice in the area of energy and natural resources law. Mr. Tartaglia regularly assists clients with a variety of transactional needs, including mineral title and due diligence, corporate and securities matters, and oil and gas lending.
[9] See C.R.S. § 34-60-103(10), -103(17). [10] See id. at -106(9)(c-d).
[11] C.R.S. § 34-60-141(4)(a-b). The size of the geologic storage unit area “must be based on site characterization and modeling conducted pursuant to the” federal Safe Drinking Water Act and any Commission rules adopted pursuant thereto. [12] See id. at -141(4)(c)(II). [13] See id . at -141(8-9). [14] Id. at -141(4)(d).
[15] Id. at -141(6). [16] See id. at -131. [17] See id. at -141(7)(a-b).
[18] See id. at -142. [19] See id. at -143.
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An Overview of the Wyoming Split Estate Act
Wyoming
staking, surveys, measurements, and general evaluation of proposed routes and sites for access and facility location. Prior to initial entry upon the land for non-surface disturbing activities, the operator must provide at least five days prior notice to the surface owner. See WY Stat § 30-5-402(b).
In Wyoming, when surface real property and the corresponding oil and gas interests under that surface are owned or possessed by different parties, the Wyoming Split Estate Act (the Act) – codified in Wyoming Statutes (WY Stat) §§ 30-5-401 et seq. – governs the interactions between the parties. The Act codifies the accommodation doctrine, which recognizes the need for each party to reasonably accommodate the use of the land by the other party. In a split estate situation, the Wyoming Supreme Court has noted that the surface estate and the mineral estate are “mutually dominant and mutually servient.” The Act was enacted in 2005 and is specific to oil and gas operations, as Wyoming has different split estate statutes related to hard rock mining. The Act places a reasonableness standard on the surface estate and oil and gas estate parties. Specifically, the Act expressly provides any “oil and gas operator” (operator) with a right to “enter the land for all purposes reasonable and necessary to conduct oil and gas operations to remove the oil or gas underlying the surface of that land.” WY Stat § 30-5-402(a). However, the operator must first comply with the provisions of the Act and “reasonably accommodate existing surface uses.” Id . A surface owner may waive in writing any rights afforded to it under the Act. The Act differentiates between an operator’s “non-surface disturbing activities” and “oil and gas operations” (the latter of which, by definition, disturbs the surface).
Oil and Gas Operations
The Act defines “oil and gas operations” as “the surface disturbing activities associated with drilling, producing and transporting oil and gas, including the full range of development activity from exploration through production and reclamation of the disturbed surface.” WY Stat § 30-5-401(a)(iv). An operator must take several required steps under the Act before entering the surface land to conduct oil and gas operations.
Requirements Prior to Entry
Before entering the land for oil and gas operations, the operator must provide the required notice (discussed in more detail below), attempt good faith negotiations, and either: (i) secure the written consent or waiver of the surface owner for entry onto the land for oil and gas operations; (ii) obtain an executed surface use agreement providing for compensation to the surface owner for damages to the land and improvements as provided in the Act; (iii) secure a waiver from the surface owner as permitted by the Act; or (iv) in lieu of complying with clause (i) or (ii), execute a sufficient surety bond or other guaranty to the Wyoming Oil and Gas Conservation Commission (the Commission) for the use and benefit of the surface owner to secure payment of damages. See WY Stat § 30-5-402(c).
Non-surface Disturbing Activities
An operator has the right to enter upon the surface land for non-surface disturbing activities that are reasonable and necessary to determine the feasibility and location of oil and gas operations. Non-surface disturbing activities include inspections,
Notice Prior to Entry
Before entering upon the land for oil or gas operations, the operator must give all affected surface owners a written notice of its proposed oil
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and gas operations on the land. The notice must be given no more than 180 days nor less than 30 days before commencement of any oil and gas operations on the land. See WY Stat § 30-5-402(d), (e).
location of facilities and access routes, or oil and gas operations substantially and materially different from those previously disclosed to the surface owner, without first providing additional written notice disclosing the proposed changes and offering to schedule a meeting to comply with the requirement of good faith negotiation of a surface use agreement. See WY Stat § 30-5-402(g).
Contents of Prior Notice
The notice must sufficiently disclose the plan of work and operations to enable each surface owner to evaluate the effect of oil and gas operations on the surface owner’s use of the land. The notice must include at a minimum: (i) the proposed dates on which planned operations shall commence; (ii) to the extent reasonably known at the time, the proposed facility locations and access routes related to the proposed oil and gas operations, including locations of roads, wells, well pads, seismic locations, pits, reservoirs, power lines, pipelines, compressor pads, tank batteries and other facilities; (iii) the name, address, telephone number and, if available, facsimile number and electronic mail address of the operator and its designee, if any; (iv) an offer to discuss and negotiate in good faith any proposed changes to the proposed plan of work and oil and gas operations prior to commencement of oil and gas operations; and (v) a copy of the Act. See WY Stat § 30-5-402(e).
Related Oil and Gas Commission Filing
Before an application for permit to drill is approved by the Commission, the operator who filed the application must also file a statement with the Commission that includes the applicable surface owner’s identity and contact information, and includes a certification that (i) proper notice of proposed oil and gas operations was provided to the surface owner, (ii) the parties attempted good faith negotiations to reach a surface use agreement, as required by the Act, and (iii) the other requirements for entry upon the land for oil and gas operations have been met. See WY Stat § 30-5-403(a).
Surety Bond or Other Guaranty
Any surety bond or other guaranty required by the Act must be executed either by the operator or a bonding company acceptable to the Commission. Additionally, any forms of guaranty other than a surety bond must be acceptable to the Commission. Any surety or guaranty required by the Act shall be in addition to the surety bonds or other guaranties required by other Wyoming law for reclamation and compliance with the administrative rules and promulgated orders of the Commission. See WY Stat § 30-5-404 for the above and below information on surety bonding and other guaranty requirements.
Good Faith Negotiations
After providing the notice of proposed oil and gas operations to the surface owner, the operator and the surface owner shall attempt good faith negotiations to reach a surface use agreement. The surface use agreement should provide for protection of the surface resources, reclamation activities, timely completion of reclamation of the disturbed areas and payment for any damages caused by the oil and gas operations. At any time in the negotiation, at the request of either party and upon mutual agreement, dispute resolution processes (including mediation or arbitration) may be employed or the informal procedures for resolving disputes established pursuant to Wyoming Statutes Title 11 Chapter 41 may be requested through the Wyoming Agriculture and Natural Resource Mediation Program. See WY Stat § 30-5-402(f).
Amount; Other Requirements
The surety bond or other guaranty shall be in an amount of not less than $10,000 per well site on the surface owner’s land unless the operations involve seismic activities. If the operations involve seismic activities, the surety bond shall be as provided in WY Stat § 30-5-104(d)(v)(A), which states that the surety bond or other guaranty shall be in an amount of not less than $5,000 for the 1,000
The operator shall not engage in work,
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acres or portion thereof for which access is sought for seismic activities and not less than $1,000 for each additional 1,000 acres or portion thereof for which access is sought for seismic activities. For the purpose of assuring compliance with this minimum bonding requirement, the Commission may pool parcels of land of different surface owners where no single parcel exceeds 40 acres. At the request of the operator, after attempted consultation with the surface owner the Commission may establish a blanket bond or other guaranty in an amount covering oil and gas operations on the surface owner’s land, provided the blanket bond shall be in an amount not less than $10,000 per well site. The Commission shall notify the surface owner of receipt of the surety bond or other guaranty, or the establishment of a blanket bond or other guaranty based on the operator’s request. The surface owner has 30 days to object to the bond. If, at the expiration of 30 days after receipt of the Commission’s notice, the surface owner does not make an objection to the amount or the type of surety bond or guaranty, the Commission shall approve the surety bond or guaranty. The Act specifically provides that neither the minimum amount of the bond or other guaranty specified or referenced in the Act nor a blanket bond or other guaranty established by the Commission is intended to establish any amount for reasonable and foreseeable damages. The Commission shall not accept a surety bond for seismic activities for lands upon which the operator or seismic activity operator has no right to enter. The operator shall provide evidence of the right to enter derived from one or more mineral interest owners.
compensation has been received, (ii) an agreement for release has been entered into with the operator, or (iii) the surface owner has failed to give the written notice required (see Remedies below) or failed to bring a timely action for damages. The Commission may , in its sole discretion, release any surety bond, other guaranty or blanket bond related to particular lands if the operator shows just cause for the release. See WY Stat § 30-5-404(f). The Act requires the Commission to release a surety bond or other guaranty after: (i) compensation for damages has been paid to the surface owner(s); (ii) an agreement for release has been executed by all parties; (iii) final resolution of the judicial appeal process for any action for damages has occurred and all damages have been paid; or (iv) the operator has certified in a sworn statement that the surface owner has failed to give the written notice required under WY Stat § 30-5-406(a) or has failed to bring an action for damages within the required time period. See WY Stat § 30-5-404(e).
Surface Damage and Disruption Payments; Remedies
Payments and Late Payment Penalty
The Act requires the surface owner and the operator to agree on a surface damage payment to be paid by the operator. The amount shall equal the damages sustained by the surface owner for loss of production and income, loss of land value, and loss of value of the surface improvements caused by the oil and gas operations. The Act prohibits the severance of the right to receive surface damage payments from the surface estate. See WY Stat § 30- 5-405(a). An operator who fails to timely pay an installment under any annual damage agreement negotiated with a surface owner is liable to the surface owner for twice the amount of the unpaid installment if the installment payment is not paid within 60 days of receipt of notice of failure to pay from the surface owner. See WY Stat § 30-5-405(b).
Release
The Commission authorizes the release of any surety bond or other guaranty. Prior to the release of any applicable bond or other guaranty, the Commission must make a reasonable effort to contact the surface owner and confirm that either: (i)
Remedies
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In the event an operator commences oil and gas operations without an agreement for compensation for all damages, the affected surface owner shall give written notice of the improper operations to the operator and a description of the damages sustained. The notice must be sent within two years after the surface owner discovered the damage or should have discovered the damage through due diligence. See WY Stat § 30-5-406(a). Unless both parties agree otherwise in a written agreement, within 60 days after the operator receives notice of surface damages the operator shall make a written offer of settlement to the surface owner. This offer may be accepted or rejected by the surface owner. See WY Stat § 30-5-406(b). If the surface owner who submits a notice as detailed above either receives no reply to its notice, receives a written rejection or counteroffer, or rejects an offer or counteroffer from the operator, the surface owner may bring an action for compensation for damages in the district court in the county where the damage was sustained. See WY Stat § 30-5-406(c).
Statute of Limitations
A surface owner entitled to bring an action for damages under the Act, or to seek any other remedy at law for damages caused by oil and gas operations, must bring such action within two years after it discovered the damage, or should have been discovered through due diligence. See WY Stat § 30- 5-409.
About the Author:
John R. Chadd is an attorney with Steptoe & Johnson PLLC He is a trusted adviser for
companies and investors on a broad spectrum of energy transactions, including oil and gas and renewable energy matters, and is often at the table when deals are being structured, negotiated, and closed.
Trusted Legal Counsel to Energy Companies
Oil & Gas | Utilities | Mining | Renewables Steptoe & Johnson PLLC is a law firm with over 400 lawyers and other professionals across 18 offices serving all sectors of the energy industry
for more info visit steptoe-johnson.com
COLORADO | KENTUCKY | OHIO | OKLAHOMA | PENNSYLVANIA | TEXAS | WEST VIRGINIA
210 Park Avenue, Suite 2300, Oklahoma City, OK 73102
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THIS IS AN ADVERTISEMENT
NADOA Welcomes The Following New Members:
Aethon Energy Operating Corley Blount
Fortify Energy
MV Purchasing LLC Debi Reddick
Kristi Castanie Joy Lipp
BlackBrush Oil & Gas Jessica Brown
PakEnergy
Frost Bank
Darren Gagliardi
Alice Robles
BOKF, NA
Petro-Hunt LLC Vanessa Allen
Stephanie Catterson
HTX Petroleum Blake Cedillo
Nicolas Negron
Cholla Petroleum Inc Shannon Thayer Civitas Resources Inc Michelle Prince
Independent
Phoenix Capital Goup Cheyanne Winn
Scott Clark
Independent Student Preston Mahy J2W Consulting LLC Jennifer Wickham
Riverbend Energy Group Eliza Jekel
Covenant Royalties Blake Warwick
Ashley O’Neal Shelby Swigart
Devon Energy Erin Weigel
Sponte Operating, Inc. Julie Hollowell
Lease Analytics Trent Barnes
Endeavor Energy Resources LP Karina Hirth
Texas Tech University School of Law Bill Keffer
Magnolia Oil & Gas Jenny Barrow
ExxonMobil
Mark Cunningham
Melissa Stoute
TG Natural Resources Richard Hudspeth
Melissa Stoute
Funding provided under the Infrastructure Invest- ment and Jobs Act (IIJA) has begun to be awarded by the U.S. Department of Energy (DOE). An initial $30 million was awarded to the Appalachian Region- al Clean Hydrogen Hub (ARCH2), which will focus primarily on producing blue hydrogen using natural gas resources in conjunction with carbon capture and Clean Energy Hubs
carbon utilization technology. Reducing greenhouse gas emissions and job creation are two of the stated goals of the initiative. Seven Regional Clean Energy Hubs are to be created, with ARCH2 located in the West Virginia, Ohio and Pennsylvania area. See Hub Announcements for more information.
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Counterpart
Connection
Lola Strickland Local Association Coordinator
CAPITAL ASSOCIATION OF PROFESSIONAL DIVISION ORDER ANALYSTS (CAPDOA) Association based in the Oklahoma City, OK Area
APPALACHIAN BASIN ASSOCIATION OF DIVISION ORDER ANALYSTS (ABADOA) Association Based in the Pittsburgh, Pennsylvania Area Serving NY, OH, PA, WV (Inactive)
………………………………… ARKLATEX ASSOCIATION OF DIVISION ORDER ANALYSTS (ALTDOA) Association based in the Shreveport, LA Area (Inactive) …………………………………
We hope you enjoyed visiting our city for the NADOA conference this year! The turnout was spectacular, and the team did a great job of putting it together. CAPDOA gave away 2 registrations for this year’s conference and hope to do it again for the 2025 conference!
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We are so excited for our Christmas/Holiday lunch on December 3 as we have Linda Clark coming in to help inspire us to finish off 2024 strong and look forward to 2025. We will finish the charity drive that our members have been contributing to all year and choose the recipient. We will also be giving away some great prizes! For more information regarding CAPDOA, please visit our website at www.capdoa.org. ………………………………… DALWORTH ASSOCIATION OF DIVISION ORDER ANALYSTS (DALWORTH) Association serving the Dallas/Fort Worth, TX Area
sponsored by Diane Carrera and Caleb Pritchett sponsored by Christina Ferguson.
DALWORTH is hosting its Christmas Luncheon on December 4, 2024. We will be bringing TOYS to benefit TOYS FOR TOTS this Holiday Season. DALWORTH now has a LinkedIn page, please follow us on our new page for quick industry updates, event posts and other news. For information regarding DALWORTH, please visit our website at www.dalworth.wildapricot.org. ………………………………… DENVER ASSOCIATION OF DIVISION ORDER
DALWORTH 2024 BOARD Kimberly Bowman, Finley Resources – President OPEN – 1st Vice President Katrina Villarreal, Dorchester Minerals – 2nd Vice President Christy Ewert, Resource Royalty – 3rd Vice President Sara Buck, Comstock Resources – Recording Secretary Eli Murray, Dorchester Minerals – Corresponding Secretary Somchay Fairbanks, Aethon Energy – Treasurer Gorden Gallet, Elk Range, Director – Compliance OPEN Director – House Katrina Villarreal, Dorchester Minerals, Director – Hospitality Somchay Fairbanks, Aethon Energy, Director – Hospitality Brenda Pirozzolo, Steptoe & Johnson Land Admin Services – Contract, Director – Historian Lewis Box, Riverbend Energy Group, Director – Scholarship Eli Murray, Dorchester Minerals – Board Advisor Brenda Pirozzolo, Steptoe & Johnson Land Admin Services – Contract – NADOA Liaison DALWORTH has had a great year this 2024. We had a Successful Summer Seminar held at Aethon Energy. Our seminar was well attended, and our audience was enlightened by all our knowledgeable presenters. We also thank our Sponsors, Aethon Energy, Pegasus Resources, and Elk Range Royalties for supporting education on behalf of DALWORTH. DALWORTH is proud to announce that it has awarded two $1000 Scholarships this year. The recipients were Tyler Carrera
ANALYSTS (DADOA) Association based in the Denver, CO Area
DADOA held their final luncheon of 2024 on November 6, 2024, at the Steptoe & Johnson PLLC building conference center. We had a good turnout on a cold and snowy day to hear Steptoe & Johnson attorney, Jim Tartaglia present “Joint Operating Agreements 101”. Our 30 attendees from DADOA registrants and the Denver Steptoe & Johnson attorneys and office staff enjoyed a hearty pasta bar and salad from Maggiano’s. It warmed everyone up from their outdoor trek to the luncheon in the cold snowy weather. A big thank you to the registrants for attending despite
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the weather.
December 11 promises to be a memorable event, featuring door prizes and an exciting selection of raffle baskets, which will raise funds to support the Beacon, a nonprofit dedicated to helping Houston’s homeless community. We invite everyone to join us in this celebration and contribution to a worthy cause. For more information on Beacon’s incredible work, please visit https://www.beaconhomeless.org/. I’d like to extend a heartfelt thank you to our sponsors: TEAMS, Repsol, Cottera, and PO&G Operating, whose support makes our initiatives and events possible. As I step down from my role, I am honored to pass the baton to Cyrus Perkins, and I am confident HADOA will continue to thrive under his leadership. The HADOA executive board for the coming year includes Rebekah Jones as President, Cyrus Perkins as Past President, and Cheryl Hampton as 1st Vice President. Their commitment and expertise are invaluable as we move forward. Serving both HADOA and the National Association of Division Order Analysts (NADOA) has been an immense honor. I look forward to supporting NADOA and all the local associations in their continued growth and impact. Thank you to everyone who has contributed to an extraordinary year! Michelle Davila, 2024 HADOA Past President For additional information regarding HADOA please view our website: www.HADOA.org. ………………………………… MID-AMERICA ASSOCIATION OF DIVISION ORDER ANALYSTS (MAADOA) Association based in the Wichita, KS Area (Inactive)
The DADOA 2024 officers and all 2025 interested parties will hold a zoom meeting to discuss the 2025 registration fees, new ideas and general business later in November. We will be including representatives from DALTA to try to work closely with them to make sure both associations thrive in 2025. On a final note: We want to wish our treasurer, Alison Blancett the best as she awaits the late November arrival of her little girl. Stay tuned for more 2025 information as the meetings progress. For more information regarding DADOA, please visit our website at www.dadoa.org. ………………………………… HOUSTON ASSOCIATION OF DIVISION ORDER
………………………………… PERMIAN BASIN ASSOCIATION OF DIVISION ORDER ANALYSTS (PBADOA) Association based in the Midland, TX Area
ANALYSTS (HADOA) Association based in the Houston, TX Area
As I conclude my term as the 2024 Past President of HADOA, I am proud to reflect on the strides we’ve made in our industry and our community. Our upcoming Holiday Luncheon on
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PBADOA is currently recruiting for our 2025 Board, if you are interested, please contact our Nominating Committee. The holidays are just around the corner, and we hope everyone has a blessed and safe end to 2024. For more information regarding PBADOA, please visit our website at www.pbadoa.org. ………………………………… SOONER ASSOCIATION OF DIVISION ORDER ANALYSTS (SADOA) Association based in the Tulsa, OK Area
We want to thank NADOA for hosting a fabulous Institute. The Omni in Oklahoma was beautiful, and the food was delicious. The speakers were diverse, educational and interesting. Job well done! PBADOA was honored to donate two scholarships for our members to attend Institute. Our winners had this to say about their experience. Thanks to PBADOA for an amazing opportunity to attend the NADOA 2024 Institute in Oklahoma City, Oklahoma. NADOA Institutes never disappoint; we had a lot of great break-out sessions. All the presenters did a great job. The topics were key. Everything turned out amazing. I had lots of fun; it is a good way to get to meet new people. Again, thank you NADOA for continuing to bring us together. Estella Peña- Arrington Oil Getting to attend the NADOA conference this year in Oklahoma City was amazing, it was nice to see people I hadn’t seen in a long time and meet new people. I enjoyed the speakers, food and entertainment, great job to the NADOA board, JOB WELL DONE. Mary Quintana- Endeavor Energy/Diamondback Energy We are excited to co-host with PALTA our first “Give Thanks” social event featuring Friendship House. This is a great organization that provides work, recreation, bible studies and more to special needs adults in a Christian environment. It will be a fun time for our members to visit, play games, and paint.
It was so nice seeing everyone at the 2024 NADOA Institute in Oklahoma City, Oklahoma. The classes were interesting and informative and the venue had so much to offer. Already looking forward to next year! SADOA’s Webinar on October 16, 2024 was a big success. Mr. Gregory A. Harjo, Senior Attorney, Oliva Gibbs LLP presented the topic “Fundamentals of a Conveyance”. We had 31 participants log in to enjoy the talk. Our final board meeting for the year was held virtually on November 11, 2024. Next on the calendar is our SADOA Holiday Celebration to be held December 5, 2024 at the Tulsa Country Club from 11:30AM to 1:00PM. In years past we have had an evening dinner meeting but this year we are moving it to lunchtime. There will be Member Gifts presented to all members in attendance and the 2025 Board will be announced. The charity we will be supporting this year is City Lights Foundation of Oklahoma. City Lights Foundation is a nonprofit organization that has been bringing hope and dignity to those experiencing homelessness since 2013 through relational service and dignified housing. We are currently accepting donations of gloves, hats, scarves, coats, hoodies, men’s jeans (all sizes), blankets, sleeping bags and cash. There will also be a raffle item and all donations and cash will be presented to City Lights that afternoon. It has been a great 2024. We’re ready to do it all again in 2025! For more information regarding SADOA, please visit our website at www.oksadoa.org. …………………………………
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