Alex Obrecht Comments on Potential Outcomes of Proposed Colorado Energy Development Restrictions

News / August 20, 2018

Alex Obrecht is quoted in an article published by Law Week Colorado on Aug. 20, 2018. The article, “Competing Ballot Initiatives Could Open Legal Pandora’s Box,” reports on two proposed Colorado initiatives that would affect oil, gas, and mineral development in the state. Initiative 97 would increase the setback requirement for any new oil and gas development to 2,500 feet from any occupied structure or other area designated by the state government. Obrecht comments on Initiative 108, which would mitigate property value lost as a result of mineral development limited by Initiative 97 by requiring just compensation to property owners when a regulation reduces the property’s fair market value.

Obrecht told the publication that a reduction in fair market value would be a less onerous legal standard to prove than a complete or near-complete deprivation of value. “It is no longer a substantial deprivation, it is a diminution in fair market value standard, which theoretically would be easier to prove,” he said, leading to an increase in claims for reduction of fair market value that would require litigation to resolve.

Read the article (registration required).

Related Industries