If the Lyles exercise their right to use the surface in connection with their mineral estate, Midway must yield to the extent required by the accommodation doctrine. However, because the Lyles are not using their rights, there is nothing to be accommodated and Midway has not encroached on the Lyles’ surface rights. Until the Lyles actually seek to develop their mineral estate the Court concluded that the Lyles’ claims are premature. Aware that this case was between a mineral owner and the owner of a solar facility, the court’s opinion began by recognizing that Texas is a leader in energy, producing
more oil and gas than any other state. However, it stated that Texas public policy “favors adding renewable energy sources into the State’s energy portfolio.” With the anticipated growth in renewable energy in the future, there will likely be more disputes between mineral owners and solar developers. The decision underscores the importance of careful land and legal work in determining surface and mineral ownership. At press time, it was not known if further petitions would be filed to seek review by the Texas Supreme Court.
Legislative
Update
A plethora of bills affecting the oil & gas industry have been introduced all around the country. Following are the measures that were found to have been signed into law at press time. Arkansas AR HB1273 - ENACTED 3/8/21 To Establish the Oil and Gas Owner’s Lien Act of 2021 Texas HB17 - Prohibits political subdivisions from discriminating against specific fuel sources like natural gas and coal. ENACTED . To take effect 9/1/2021 SB13 – Prevents the state from investing in ESG financial products that boycott Texas energy companies. ENACTED . To take effect 9/1/2021
Conservation Commission
Communications
First Professional Colorado Oil & Gas Conservation Commission Confirmed by Senate on March 1, 2021
The Colorado Oil and Gas Conservation Commission (COGCC) announced that the Colorado Senate has con- firmed the first full-time professional Commissioners ap- pointed by Gov. Jared Polis as part of the implementation of SB 19-181. “Coloradans are better off because of the work of this Commission, which has demonstrated the expertise and professionalism necessary to implement the landmark SB 19-181,” said Gov. Polis. “The historic Mis- sion Change Rulemaking included diverse stakeholders, hundreds of hours of deliberation and testimony, and was done with broad consensus and support. These directives provide a bold path forward and national model for oil and gas development that is protective of public health, safety, our environment and wildlife. Congratulations on
being confirmed by the Senate today.” Source: Colorado Oil and Gas Conservation Commission press release To implement SB19-181, the Colorado Oil and Gas Conservation Commission unanimously approved a sweeping set of new rules that took effect January 15, 2021. Completion of final rule making related to financial assurances and reclamation are expected to be completed in the spring of 2021. Dan Haley, President & CEO of the Colorado Oil & Gas Association, stated these new rules mean, “Colorado now undoubtedly has the toughest oil and natural gas development regulations in the country.”
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N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s
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