we committed to do all we could to ensure that what happened to the Martinez and Irwin families never happens again,” said Hickenlooper. The Governor is overseeing policy initiatives for changes through either rulemaking or legislation in the following areas: • Strengthening COGCC flowline regulations • Enhancement of the 8-1-1 call program to give homeowners access to pipeline information • Creation of a nonprofit orphan well fund to plug and abandon orphan wells, estimated to be 700 to 800 wells, which would be paid for by oil and gas operators • Prohibition of future domestic gas taps on mineral owner’s property • Improvement of safety training through creation of a technical workgroup • Peer review of some COGCC rules • Exploring a methane leak detection pilot program
The governor’s office stated the initiatives should be completed within 12 months. “The motivation here is that we do everything we can to make not only workplaces safer but our communities safer,” the Governor said. An announcement is expected from the Colorado Department of Public Health and Environment establishing an alliance with the Occupational Safety and Health Administration, the National Institute for Occupational Safety and Health and the Colorado Oil and Gas Association. Beginning in September, the alliance will collaboratively develop best practices to address safety within the oil and gas industry and ensure the safety and health of the industry’s workforce.
Locke Lord QuickStudy: The Stone Energy Bankruptcy: Lessons for the JOA By Martin Gibson and Berry D. Spears These materials reflect only the personal views of the author and are not individualized legal advice. It is understood that each case is fact-specific, and that the appropriate solution in any case will vary. Therefore, these materials may or may not be relevant to any particular situation. Thus, the author and their law firm cannot be bound either philosophically or as representatives of their various present and future clients to the comments expressed in these materials. The presentation of these materials does not establish any form of attorney-client relationship with the author or their law firm. While every attempt was made to insure that these materials are accurate, errors or omissions may be contained therein, for which any liability is disclaimed.
remaining after excluding the voting interest of the Operator that was removed or resigned. In late 2016, Stone filed Chapter 11. In early 2017, Stone filed a motion to sell certain assets, including the West Virginia Acreage to EQT Production Company for $527 million. The sale was properly noticed to all appropriate parties, including Triad, which did not object to the sale. The bankruptcy court approved the sale and the transaction closed. Stone and EQT provided notice to Triad that Stone had assigned all of its interests, including its rights as Operator, to EQT. Triad responded by asserting it (Triad) was the sole remaining party with an “Exhibit A ownership” and it had opted to select itself as the successor Operator. The court’s Order did not specifically designate EQT as successor Operator.
In 2011, Stone Energy Corporation and Triad Hunter, LLC entered into a development agreement for the exploration of about 4,200 acres in West Virginia under a 1989 form JOA. Each party owned 50% and Stone was designated as Operator. The operator replacement language in Art. V.B.2. reads as follows: Upon the resignation or removal of Operator …, a successor Operator shall be selected by the parties. The successor Operator shall be selected from the parties owning an interest in the Contract Area at the time such successor Operator is selected. The successor Operator shall be selected by the affirmative vote of two (2) or more parties owning a majority interest based on ownership as shown on Exhibit “A”; provided, however, if an Operator which has been removed or is deemed to have resigned fails to vote or votes only to succeed itself, the successor Operator shall be selected by the affirmative vote of the party or parties owning a majority interest based on ownership as shown on Exhibit “A”
At a subsequent hearing, EQT complained of Triad’s
21
G r o w t h T h r o u g h E d u c a t i o n - J a n u a r y / F e b r u a r y / M a r c h 2 0 1 7
Made with FlippingBook Annual report