The Elbert County Oil and Gas Interest Group (ECOGIG) Page
March 14, 2012
Jill and Jim Duvall, Co-coordinators
(303) 646-3202
Three items of note today:

---- At the last BOCC meeting in February, Jill Duvall made a presentation asking the county commissioners to revisit and/or rescind their October 2010 approval for a Metropolitan District west of Safeway--the Elizabeth 86 Residential Metropolitan District. There is another, sister district for commercial uses in the same location. This Metropolitan District is part of the Karl Nyquist/Diane Miller group of companies/metropolitan districts. Jill's premise for revisiting the approval was based on the lack of transparency exhibited last summer during the third amendment hearings for the Elbert and Hwy 86 Commercial Metropolitan District as well as possibly flawed financial review that the commissioners used to make their approval.


Our legal advisor has told us: "Our position is that if the commissioners convened a fresh public hearing with proper notice under the SPECIAL DISTRICT ACT, they could re-hear the service plan and make a different decision if they thought it was justified under the evidence presented."

---- There has been a coordinated push, backed by the oil industry and the leaders in state government, to have one set of regulations, administered by the state alone, to control ALL drilling and oil exploration in the state. WE FIRMLY BELIEVE THAT REASONED, LOCAL GUIDELINES TO ADDRESS PARTICULAR NEEDS IN ELBERT COUNTY ARE MORE APPROPRIATE--WORKING IN CONJUNCTION WITH STATE REGULATIONS OF THE COGCC, ELBERT COUNTY HAS THE RIGHT TO MAKE LAND USE POLICIES WHEN OIL AND GAS DRILLING AND PRODUCTION AFFECT EACH INDIVIDUAL PROPERTY OWNER.

Please do your research on the Oil and Gas Regulatory Task Force recently appointed by the Governor. Here is a link to the new web site--you can make email comments to the task force through a link on the right of the website:

It has come to our attention (thanks to the work of an ECOGIG member) that Chesapeake Energy has voided/not paid in excess of 120 oil and gas leases in Elbert County. This brings up three important points in our discussion:

1. Chesapeake is true to form--they have done this in numerous states prior to Colorado--it is called "cold drafting" and is essentially negotiating in bad faith with property owners who lack the information necessary to make an informed decision when the landmen come calling, dangling money for what looks like a lucrative lease--unfortunately, it is not always what has been presented and Chesapeake holds all the cards. As someone said in an article about this practice, "try doing this with your landlord." Chesapeake does it and gets away with it.

2. Is there really as much oil and gas as the County officials, economic development contractor, water speculators and industry landmen/spokesmen would have us believe. We wonder if this may be an indication that there is not as much economic incentive and supply of oil in this portion of the Niobrara play as many would have us believe. Which leads to the next point.........

3. Time is our ally--don't rush into anything--regulations, leases, planning how to spend all this oil money....... If there really is a large play, more players with more money will be back!

As always, thanks for your advocacy.

March 12, 2012
SCORE: Nyquist 1.....Elbert County Citizens 0

Today, the county commissioners of Elbert County let their fears of a lawsuit by Karl Nyquist take precedence over protecting the citizens of Elbert County. Even though they have the power to rescind Nyquist's metropolitan service district, they stated in the BOCC meeting today that they can't take on the potential liability of a lawsuit. Sad day for Elbert County citizens.......

Plan on attending the district court session involving this metropolitan district this Friday, March 16 at 11 AM at the Justice Center in Kiowa. Our presence is our message!

These are the kinds of actions we need the commissioners to explain as they run for re-election.