There have been and continue to be numerous questions, misunderstandings, and misgivings about the mineral rights for SFTR and the possibility that they may be developed contrary to the wishes of the property owners. I’ll try to memorialize some history and the other facts as I understand them to bring everyone current on this issue. Directly beneath is a chronological history of the ownership of the mineral rights, along with the filing information at the Las Animas Clerk and Recorder’s office;
3/9/90 BOOK 873 PAGE 219 Same as below
10/21/92 BOOK 890 PAGE 947 Pettigrew deeds mineral rights to Baldwin, keeps an undivided third for himself, but grants Baldwin negotiation rights.
Pettigrew 33.33% Baldwin 66.66%
12/1/92 BOOK 891 PAGE 803 TYPICAL WARRANTY DEED Baldwin retains 75% of his (66.66% of total) mineral rights. The other 25% transfers with the land to the purchaser. Baldwin conveys 25% (16.67%) to the POA and keeps 50% (33.3%)
Pettigrew 33.33% Baldwin 33.33% POA 16.67% Individual 16.67%
7/28/98 BOOK 965 PAGE 160 Baldwin deeds gas well to POA
7/28/98 BOOK 965 PAGE 146 Baldwin deeds his 33.33% to the POA
Pettigrew 33.33% POA 50% Individuals 16.67%
7/28/98 BOOK 965 PAGE 153 Baldwin deeds his right and authority to negotiate Pettigrew's interest to the POA
Pettigrew owns 33.33%, but POA has rights of negotiation
POA owns and controls 50%
Individuals own and control 16.67%
In meetings with Bill Bontrager, an oil and gas attorney retained by the SFTR POA, I was told that a drilling unit cannot cross a section line, which, as I understand it, negates the fear of force pooling by activity overlapping from property adjoining our development, since our West and North boundaries are section lines, our East boundary is Interstate 25, and the South boundary is the State line.
Since the owners voted to approve a new Covenant prohibiting mineral development in the POA Special Meeting of 21 Apr 07, even the (economically prohibitive) possibility that an individual could enter into an agreement to drill on his property is no longer an issue. The amended Covenants were recorded with the Las Animas County Clerk and Recorder on 27 Apr 07, Book 1067, Pages 589-606.
In addition, it appears HB 1341 has passed through the Colorado General Assembly and only awaits the Governor’s signature at this time. That bill will lessen the gas and oil industry influence over the Colorado Oil and Gas Commission, and should help protect property owner rights in the future.
Bob Scott
SFTR POA President