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Both houses of the Idaho Legislature unanimously approved House Bill 301a last week following a seven-hour negotiation and two days of hearings earlier this month.  Supported by Governor Otter, this bill will (among other things) amend the forced pooling provisions enacted just 12 months ago.  In fact, House Bill 301a is the latest in a series of legislative actions taken since exploration and development operations commenced in western Idaho in 2010.  The Idaho Department of Lands’ website shows nine producing wells plus six shut-in wells as of last month.

Changes to Idaho’s current oil and gas statutes brought by House Bill 301a include:

  • Decreasing the default spacing unit for a vertical gas well from 640 acres to 160 acres and allowing federal minerals to be excluded from a spacing unit if the U.S. Bureau of Land Management fails to auction a lease for such minerals for at least six months.
    Continue Reading Idaho Modifies Oil and Gas Statutes (Again)

The Oregon Legislature’s 2017 session officially kicked off last week. A variety of mineral-related bills have been introduced.  Here are some of the ones to follow:

Mining

SB 3 – SB 3 is primarily focused on suction dredge mining.  It would build on the 2013 enactment of a moratorium, currently in effect until 2021, on the use of motorized equipment engaged in small-scale precious metal mining of placer deposits (i) within and upstream of spawning habitat for salmon and bull trout, and (ii) 100 yards upland from such areas if water quality could be impacted.  SB 3 would wrap Pacific lamprey spawning habitat into the moratorium, but would eliminate the prohibition on upland use of such equipment starting in 2019.  Instead, the use of such equipment, regardless of the size of the operation, within 100 yards upland of any river’s ordinary high water line would be subject to the Department of Geology and Mineral Industries’ (“DOGAMI”) existing exploration and operating permit programs, including the associated reclamation requirements.  Starting in 2021, suction dredge mining would be permanently prohibited in a wide variety of locations unless the mining concerned a federal mining claim and the prohibition would violate federal law.  In those areas where suction dredge mining was allowed, it would require a removal-fill permit issued by the Department of Environmental Quality (“DEQ”) rather than the Department of State Lands.  SB 3 would also provide that the surface mining exclusion certificate required under ORS 517.753 only applies to commercial sand, gravel, and crushed stone operations.
Continue Reading Mineral-Related Bills Pending Before Oregon Legislature

Ready or not, California’s new Sustainable Groundwater Management Act (“SGMA”) is here and mine operators should be vigilant in monitoring and actively participating in developments under the law. Previously, the use of groundwater was largely unregulated.  Now local agencies are in the driver’s seat when it comes to addressing a very complex problem: managing groundwater to ensure sustainability.

Earlier this week, environmental consultant Bob Anderson, of Geosyntec and Stoel Rives attorneys Wes Miliband and Tom Henry hosted a webinar about the implications of SGMA for mine operators.  You can view a recording of the webinar here.  Below are a few key take away points for operators as they tackle SGMA.

The Compliance Timeline is Aggressive

SGMA requires the formation of local Groundwater Sustainability Agencies (“GSAs”) that must assess conditions in their local water basins and adopt locally-based groundwater sustainability plans (“GSPs”). GSAs have already started to form and will be developed by June 30, 2017.  Operators should investigate the proposed GSAs affecting their sites.  The Department of Water Resources has developed a useful interactive map showing the proposed GSAs.  Operators and the general public have the opportunity to be involved in the formation of GSAs and preparation of GSPs.
Continue Reading Why California’s New Groundwater Management Law is a Game Changer for Mine Operators

Two lawsuits were filed within days of each other in Oklahoma, claiming that energy companies engaged in hydraulic fracturing and underground disposal of produced water are causing earthquakes throughout the state. These lawsuits probably come as no surprise to the industry after the Sierra Club recently threatened to sue four oil companies for contributing to increased earthquakes in Oklahoma and southern Kansas.

A pair of Oklahoma residents, in a class-action lawsuit, have accused four energy companies of causing “a dramatic increase” in earthquakes throughout the state during the last five years. The lawsuit names Sandridge Exploration and Production, Chesapeake Operating, Devon Energy Production Company, and New Dominion as the defendants.

The plaintiffs claim that hydraulic fracturing and underground disposal of produced water are causing earthquakes across the state by increasing the pore pressure within faults making the fault more prone to slip.

The lawsuit alleges that the companies are liable to the plaintiffs and the class for nuisance, trespass, negligence, and engaging in an ultra-hazardous activity. The plaintiffs are seeking not only compensatory damages, but also punitive damages and attorneys’ fees.
Continue Reading Two Frackquake Lawsuits Filed in Oklahoma

In late-January, the North Dakota Petroleum Council’s task force on natural gas flaring released its much-anticipated recommendations to the North Dakota Industrial Commission, the administrative body that regulates oil and gas wells in the state.  The task force made several proposals with the aim to increase the amount of natural gas captured at wellheads…

The North Dakota Supreme Court issued an opinion last week resolving a constitutional question of public vs. private ownership of mineral interests in the area between the high and low water marks along navigable waters (commonly known as the “shore zone”).  Ultimately, the court found that the state’s interest in minerals begins at the high…

The North Dakota Supreme Court recently issued its second opinion in Van Sickle v. Hallmark & Associates, a case that has tested the boundaries of a mineral interest holder’s right to royalties when well operators go bankrupt.

The Van Sickles own interests in oil and gas produced from a well in McKenzie County that’s…

Mining operations are often conducted on leased lands.  As with any lease, disputes may come up between the landowner/lessor and the mining company/tenant.   Over the last few years I’ve dealt with multiple situations in which the landowner either made, or threatened to make, complaints about the mining operation to regulatory agencies.  In some situations the…

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Here Stoel Rives shares insight and analysis about key mineral law developments. Drawing on a very active natural resources practice, we aim to keep readers informed about the legal aspects of news that impacts exploration and development of all things mineral.