PRESS RELEASE: National Association of Royalty Owners Addresses Local Control Issues and Announces Colorado Conference on June 6-7


Mineral interest owners’ point of view largely missing from oil and gas local control debate

DENVER (May 12, 2014) – With more than 600,000 mineral interest owners in Colorado, the impact that pending local control initiatives and possible legislation have on private property owners should be a key point of discussion in the debate over local control.  Today, the National Association of Royalty Owners, Rockies Chapter is calling on local control advocates to consider the impact that these initiatives would have on property owners.

“Advocates of local control should not discount the private property rights of Colorado’s mineral owners,” said Michelle Smith, president of the National Association of Royalty Owners (NARO) Rockies Chapter. “These valuable assets provide a significant tax base, which supports statewide infrastructure improvements, funds schools, and supplements farming and ranching incomes. Colorado mineral owners will not stand idly by while the fate of their property is decided without their input, or any consideration of how the value of their resources contributes to our state’s prosperity.”

NARO has closely monitored the pending ballot initiatives, and the related last ditch efforts at local control legislation.  Local control advocates have failed to address three secondary effects of taking away property owners’ rights: compensation for removing the right to develop property, the possible resulting patchwork of regulation, and the impact of the loss of revenue on Colorado families.

“While NARO sees merit in working together to develop a solution to the issues behind the local control initiatives, NARO believes the property owners most impacted by this decision must be included in the conversation,” added Smith.

One of the most basic premises of property ownership is the right to use and develop the privately-held interest.  When the right to develop the mineral estate is made impossible by regulations or bans, the law requires just compensation.  The just compensation of property owners is an omission that Colorado’s lawmakers and local governments must consider.

The second issue that has not been addressed by local control advocates is how local control initiatives would impact the Colorado Oil and Gas Conservation Commission’s (COGCC) regulatory structure.  Since its inception in 1951, the COGCC has fostered the development of our State’s resources under a strong regulatory regime, designed to also protect public health and the environment. Under local control, local communities may be forced to fund expensive highly-technical staff necessary to undertake COGCC functions.  The resulting numerous regulatory jurisdictions would create a patchwork of regulations that would further confuse an already-complex regulatory structure.

The final, and perhaps most important, consideration is how these local control initiatives would impact families throughout Colorado, many of whom depend on income from royalties to raise their families, support their communities, and secure their retirements.

“The income from our mineral ownership has allowed us to keep our family’s farms in Colorado,” said Cristy Koeneke, a fourth generation Coloradan and NARO member. “My family had been just eking out a living in rural Colorado in past generations, and without our royalty income, we would have had to sell our land to developers, taking money out of our local economy.  Now, we’re able to continue to farm our land, grow locally-grown crops, send our sons to college, give back to our community, and help our local economy thrive.  Our royalties have helped our family ride the peaks and valleys of farming and ranching that come with our economy and Colorado’s climate.”

The National Association of Royalty Owners – Rockes Chapter will be hosting a Conference on June 6-7, 2014.  Click Here for Agenda and Details

WHY should you attend this conference and bring your next generation mineral owner, your neighbor mineral owner, and business owners in your community with you?

Your Personal Property Rights are at Stake!

As many of you know, last fall six jurisdictions voted on ballot measures to
significantly delay or ban oil and gas development. These communities include
Broomfield City and County, Boulder City and County, Fort Collins and Lafayette.
Any governmental agency that passes regulation that prohibits the
development of a mineral right is committing an unconstitutional taking of private
property. This is considered a “taking” of mineral rights and is subject to just

The next step to stopping oil and gas development in our state is a 2014 ballot
measure that would give more control over oil and gas drilling, but in a way so broad that
it would allow cities to ban ANY for-profit business that community leaders don’t want to
see in their towns and deem to be a threat to the health, safety and welfare of the people.
Passage of this proposed ballot measure will devastate the Colorado economy and
could effectively condemn your mineral rights!

HELP stop this devastating movement. ATTEND the conference to learn practical tools to PROTECT YOUR MINERAL INTERESTS

NARO Rockies, Colorado Conference
June 6-7, 2014
Embassy Suites Loveland Hotel, Spa & Conference Center
4705 Clydesdale Parkway
Loveland, CO 80538

About the National Association of Royalty Owners (NARO) – Rockies Chapter
NARO encourages and promotes exploration and production of minerals in the Rocky Mountain region.  NARO represents the interests of the nearly 600,000 mineral interest owners in the state of Colorado.  The organization preserves, protects, advances and represents the interests and rights of mineral and royalty owners through education, advocacy and assistance to its members, to NARO chapter organizations, to government bodies and to the public.  Additional information about NARO can be found here.

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