May 26, 2013

Colorado Supreme Court: Oil and Gas Conservation Commission Has Broad Authority to Promulgate Rules Governing Permitting Process

The Colorado Supreme Court issued its opinion in Colorado Oil and Gas Conservation Commission v. Grand Valley Citizens’ Alliance on June 25, 2012.

Application for Permit to Drill—Hearings.

Grand Valley Citizens’ Alliance filed a complaint alleging it was entitled to a hearing on an application for permit to drill pursuant to CRS § 34-60-108(7) of the Oil and Gas Conservation Act. The district court dismissed the complaint. The court of appeals reversed the district court’s judgment, holding that under subsection 108(7), Grand Valley was entitled to a hearing because it had a filed a petition on a matter within the jurisdiction of the Colorado Oil and Gas Conservation Commission.

The Supreme Court reversed the court of appeals’ judgment, holding that § 34-60-108(7) requires a hearing only for rules, regulations, and orders. Permits are governed by CRS § 34-60-106(1)(f), which grants the Commission broad authority to promulgate rules governing the permitting process, including the authority to determine who may request a hearing.

Summary and full case available here.

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2013-05-26 09:20:16