Legal
Watch
stimulation techniques as well as prohibit drilling of new oil and gas wells and phase out existing wells. This would eliminate all local production of oil and gas resources in Monterey County. The lawsuit contends that Measure Z is preempted by federal and state laws and the County does not have legal authority to prohibit or regulate the ‘downhole activity’ of oil and gas production. View the full filing here: NARO-CA v. Monterey County Copy of Complaint 3-13-17.pdf
In a March 15, 2017 press release, NARO California revealed that a group of Monterey County mineral rights and royalty owners and the National Association of Royalty Owners California Chapter had jointly filed a lawsuit regarding Measure Z against the County of Monterey. Passed by voters in November 2016, the initiative entitled “Protect our Water: Ban Fracking and Limit Risky Oil Operations Initiative” (Measure Z) became effective on December 23, 2016. Measure Z would ban hydraulic fracturing and other well
Legislative
Watch
Oklahoma
There are two bills currently under review that affect horizontal drilling. SB 669, the “Horizontal Well Development Act” and SB 284, the “Oklahoma Energy Jobs Act of 2017” Current state law allows horizontal drilling of longer than a mile only in shale formations. These bills would expand horizontal drilling to non-shale formations.
The Oklahoma Energy Producers Alliance is lobbying to include protections for vertical producers in the legislation. At issue also is the gross production tax rate. Since July 2015, Oklahoma’s gross production taxes are assessed at 2 percent for three years on new wells before the rates rise to 7 percent. Alliance members mostly operate older vertical wells that are taxed at the full 7 percent rate.
Legal
Update
Wyoming Supreme Court reverses Anti-Washout decision of District Court
In Questar Exploration and Production Company et al. v. Rocky Mountain Resources, LLC, 2017 WY 10, the Wyoming Supreme Court issued a decision on February 1, 2017 that reversed and remanded the decision of the District Court, which had
held that an overriding royalty burdening a State of Wyoming Lease applied to a subsequent lease granted by a public drawing.
Two State of Wyoming Oil and Gas Leases that
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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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