State Land Board of Colorado: Frequently Asked Questions - Fracking

Where can I find information regarding my personal mineral estate? top
The State Land Board maintains only State owned properties and does not maintain records for fee (private) or federal lands. For fee property, contact the county clerk & recorders office where the property is located. For federal lands, contact the Bureau of Land Management at 303-239-3600.

Am I able to review state mineral property on-line? top
No, we expect to have this available sometime in the future. However, you may come to the office and review our electronic database Monday through Friday, between 8:00am and 4:30pm.

What are the terms of oil and gas leases? top
Oil and gas leases are five-year leases. The rentals are $2.50 per acre per year for life of the lease regardless of production. The royalty due the State is 1/6 or 16.67% of all production.

When and where is the oil and gas lease auction held? top
State oil & gas lease auctions are by competitive bid and are held quarterly in February, May, August and November. Go to the 'Auctions' for specific dates and times. All auctions are held at 1127 Sherman St, Suite #200, Denver, CO 80203 unless posted otherwise.

Where can I get the results of the state oil & gas auction sale? top
Go to 'Auctions' and click on relevant date under ‘auction links’. Results will be posted 1 week after the sale.

Can I assign my lease? top
Yes, the assignment must be submitted for approval by the Board on the appropriate Board form along with a fee of $25.00 per lease. The record lessee must also submit their original copy of their lease at the time of the assignment. This document will be sent to the new record lessee. You may obtain the assignment form by clicking ‘Forms’ and selecting ‘Assignment Record’. If you have problems completing the form, see the Assignment Instructions document.

Can I assign a portion of my lease to another party? top
Yes, a portion of the lease acreage may be reduced from the original oil & gas lease and assigned to a new Assignee creating a new lease. On the State Assignment Form be sure to mark 'Partial" Assignment and submit original lease and $25.00 fee. You may obtain the assignment form by clicking 'Forms' and selecting 'Assignment Record' from the list. Or you may call 303-866-3454 x3322 to request by mail. Alterations of any kind are prohibited.

Can I use my own assignment form? top
If the parties to the agreement wish to transfer record title of the lease, then the Board's form must be used. If they wish to convey a minority interest in the lease, restrict the depth of the assignment, or maintain an override on the lease, then any form acceptable to the parties may be used and submitted to the Board. The Board will not approve or deny these agreements unless they breach the terms of the lease. These documents may be submitted to the Board at no cost.

How do I maintain an interest or overriding royalty at the time I assign my State lease? top
An interest or overriding royalty not to exceed 5% may be retained at the time of the assignment of record title (record lessee) by using any form that is acceptable to the parties. The State does not recognize or enforce any of these minority interests. Copies of these documents will be accepted and filed in the State’s lease records at no cost and are indexed under ‘Miscellaneous document’ in each lease file. Lease terms may limit the overriding royalty interest that is allowed.

Can I terminate my lease at any time? top
Yes, however all outstanding account balances and reclamation, if applicable, must be reconciled before the restoration bonds are released. The lessee of record may terminate all or a portion of their lease in writing, and the acreage reduced is described in governmental lots or legal subdivisions.

Can I use a credit card to pay for my new leases at auction? top
No, currently, credit cards are not accepted. Acceptable forms of payment are cash, company check, personal checks, money order and certified check. You may make arrangements with Felicia Bautista at 303-866-3454 x3307 one week prior to auction for wire transfers.

How do I obtain a solid minerals lease on State Lands? top
Go to ‘Forms’ and select Minerals Lease Application. Print and complete the form and enclose with the $20.00 fee addressed to the attention of Tim Kelly. He will contact you.

What are the terms of solid minerals leases? top
Solid minerals leases can be either five or ten year leases. The rentals are $3.00 per acre per year. Rentals for coal leases are $3.00 per acre. Advance minimum royalty and production royalty are determined at the time the lease is issued based on the mineral being mined, the potential for production, and the location of the mined property.

My Company has just completed a new well and now I must report royalty revenue to the State. Where can I get a royalty report? top
Go to ‘Forms’ and select the appropriate form and instructions for the product from the list. Or you may call 303-866-3454 x3319 to request by mail.

When do I need to report Oil & Gas production to the State? top
Royalty reports are expected to be filed within 90 days of first production. Thereafter, 60 days for gas production and 30 days for oil production and submitted no later than the last day of the following month.

Does the Land Board need my API number established by the OGCC? top
No, however, the Land Board does require you call our office at extension 3319 to set up a Royalty Accounting Unit/RAU for oil and gas production for a newly established well.

What is the bond requirement for State Wells? top
A reclamation bond is required on all wells drilled on State lands. The required bond amount is $5,000 per well or $15,000.00 per lease, or $25,000 statewide. The operator may post a surety bond, a certificate of deposit, an irrevocable bank letter of credit or cash bond in the appropriate amount.

Where can I get information on well production and status? top
Well information is available on-line through the Colorado Oil and Gas Conservation Commission at http://www.colorado.gov/cogcc

How do I obtain information regarding Renewable Energy leasing? top
Contact the District Office. Go to the 'Districts' tab and click appropriate office for the particular county.

Can I request a copy of a minerals lease file? top
Yes, according to the Colorado Open Records Request Act, you may request a copy of the lease file by callling or e-mailing Mark Davis at 303-866-3454 x3313 or mark.davis@state.co.us. Please allow 3 business days for a reply. In some cases, the Board reserves the right to deny inspection of mineral files due to confidential/financial information.

Can I terminate my lease at any time? top
Yes, however all outstanding account balances and reclamation, if applicable, must be reconciled before the restoration bonds are released. The lessee of record may terminate all or a portion of their lease in writing, and the acreage reduced is described in governmental lots or legal subdivisions.

SOURCE: COSTATE