C.R.S. Section 31-15-714
Oil and gas leases

  • unit agreements

(1)

The governing body of each municipality has the power:

(a)

To lease any real estate or any interest therein owned by the municipality for oil and gas exploration, development, and production purposes, upon such terms and conditions as may be prescribed and contracted by the governing body in the exercise of its best judgment and as such governing body deems to be in the best interests of the municipality. Any such lease of oil and gas rights shall be for a term not to exceed ten years and as long thereafter as oil or gas is produced and shall provide for a royalty of not less than twelve and one-half percent of all oil or gas produced, saved, and marketed or the equivalent market value thereof, which royalty may be reduced proportionately under appropriate provision in such lease if the interest of the municipality is less than a full interest in the land or oil and gas rights in the land described in such lease. When, in the opinion of the governing body and because of the size, shape, or current use of any tract of real estate owned by said municipality, the best interest of the municipality so requires, any such lease of such tract may provide that no drilling shall be conducted on the land covered thereby, in which case such lease shall be for a term not to exceed ten years and so long thereafter as the municipality may share in royalties payable on account of production of oil or gas from lands adjacent to such tract so leased.

(b)

To enter into, on behalf of the municipality, when deemed by the governing body to be in the best interest of the municipality, any agreement providing for the pooling, unitization, or consolidation of acreage covered by any oil and gas lease executed by such municipality with other acreage for oil and gas exploration, development, and production purposes and providing for the apportionment or allocation of royalties among the separate tracts of land included in such unit or pooling agreement on an acreage or other equitable basis and, by such agreement, with the consent of the lessee under such lease, to change any of the provisions of any such lease issued by such municipality, including the term of years for which such lease was originally granted and any drilling requirements contained therein, in order to conform such lease to the terms and provisions of such unit or pooling agreement and to facilitate the efficient and economic production of oil and gas from the unit lands.

(2)

All leases of oil and gas or rights therein and all unit agreements relating to or dealing with oil and gas and containing provisions similar to those set forth in this section affecting municipal lands made or entered into by any municipality prior to April 16, 1953, acting by its governing body, are hereby confirmed, validated, and declared to be legal and valid in all respects.

Source: Section 31-15-714 — Oil and gas leases - unit agreements, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-31.­pdf (accessed Oct. 20, 2023).

31‑15‑101
Municipalities bodies politic - powers 31‑15‑102
Review without bond 31‑15‑103
Making of ordinances 31‑15‑104
Powers not exclusive 31‑15‑201
Administrative powers 31‑15‑301
Definitions 31‑15‑302
Financial powers - legislative declaration 31‑15‑401
General police powers 31‑15‑402
Liability for violation of nuisance ordinance 31‑15‑403
Prohibition against the use of restraints on pregnant women in custody 31‑15‑404
Menstrual hygiene products for a person in custody 31‑15‑405
Opioid treatment for a person in custody 31‑15‑406
Incarceration of a person with the capacity for pregnancy 31‑15‑407
Access to criminal history record information - illicit massage businesses - human trafficking - definitions 31‑15‑501
Powers to regulate businesses 31‑15‑601
Building and fire regulations - emission performance standards required - reporting 31‑15‑602
Energy efficient building codes - legislative declaration - definitions - repeal 31‑15‑603
Charging station rules prohibited 31‑15‑701
Necessary buildings 31‑15‑702
Streets and alleys 31‑15‑703
Improvements - petition - construction 31‑15‑704
Collection of assessments 31‑15‑705
Construction of highway - petition - notice - election - tax 31‑15‑706
Railroad track 31‑15‑707
Municipal utilities 31‑15‑708
Water and water systems 31‑15‑709
Sewers and sewer systems 31‑15‑710
Water pollution control 31‑15‑711
Other public improvements 31‑15‑711.5
Municipal jails - sanitary standards 31‑15‑712
Public improvements by contract - cities 31‑15‑713
Power to sell public works - real property 31‑15‑714
Oil and gas leases - unit agreements 31‑15‑715
Legislative declaration concerning landfill gas 31‑15‑716
Municipal authority relating to landfill gas 31‑15‑801
Agreements - ordinance - financing 31‑15‑802
Tax exemption 31‑15‑803
Enforceability 31‑15‑901
Miscellaneous powers 31‑15‑902
Deferred compensation plans 31‑15‑903
Legislative declaration - municipalities - new business facilities - expanded or existing business facilities - incentives - limitations - authority to exceed revenue-raising limitation 31‑15‑904
Third-party food delivery service fee restrictions - definitions 31‑15‑905
Regulation of pesticide use - definitions 31‑15‑1001
Legislative declaration 31‑15‑1002
Definitions 31‑15‑1003
Municipal authority relating to solid waste-to-energy incineration systems 31‑15‑1004
Department of public health and environment rules 31‑15‑1101
Mobile home parks - definition
Green check means up to date. Up to date

Current through Fall 2024

§ 31-15-714’s source at colorado​.gov