CHAPTER 15 STATE LEASES: A PANEL DISCUSSION
| Jurisdiction | United States |
(May 2018)
STATE LEASES: A PANEL DISCUSSION
Scott Douglass & McConnico LLP
Austin, TX
Ramona L. Monroe
Stoel Rives LLP
Anchorage, AK
Stephanie Barber-Renteria
Lear & Lear PLLC
Salt Lake City, UT
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ELIZABETH N. "BECKY" MILLER is an attorney with the firm of Scott Douglass & McConnico LLP, in Austin, TX. Becky has practiced exclusively in the firm's oil, gas, and energy practice since she joined the firm in 1981. She began by handling regulatory matters before the Railroad Commission of Texas. In the late 1980s Becky moved to oil and gas litigation when she joined just a handful of lawyers Board Certified in Oil, Gas and Mineral law who litigated oil, gas and energy law cases full time. In her career she has tried cases in North, East, South, and West Texas, wherever wells are located. She has argued before appellate courts in Houston, Corpus Christi, and San Antonio, the Texas Supreme Court, and the 5th Circuit. Her practice has included all types of litigation arising out of the oil, gas, and energy business (except tort claims for personal injury). She has represented operators, lessees, non-operating working interest owners, and lessors. Becky has served as an adjunct professor at the University of Texas School of Law where she taught oil and gas law, and oil and gas leasing and regulation. Becky's practice also includes work as a mediator and arbitrator, particularly in regard to oil and gas related cases.
Recognitions & Awards:
Board Certified, Oil, Gas and Mineral Law, Texas Board of Legal Specialization, since 1987
Selected for The Best Lawyers in America in Natural Resources Law and Oil & Gas Law, 2007-2018
Best Lawyers' Austin Natural Resources Law "Lawyer of the Year," 2014 and 2016
The Center for American and International Law Institute Deans of Oil and Gas Practice Lecture honoree, 2014
Texas Super Lawyer, a Thomson Reuters business, Energy and Natural Resources Law, 2003 - 2017
Recipient of 2011 Pathfinder's Award-Travis County Women's Lawyer Association
Pattern Jury Charge Vice Chairmen, State Bar Pattern Jury Charge Committee for Oil and Gas
Texas Lawyer Top Five "Go To" Lawyer in Oil and Gas, 2008
Chairman, Oil, Gas and Mineral Law Section, State Bar, 1998-1999
Chairman, Oil, Gas and Mineral Law Section, Travis County Bar, 1988-1989
RAMONA L. MONROE is a Partner with Stoel Rives LLP, in Anchorage, AK. Ramona has over 20 years of experience representing natural resource companies and others in matters involving state and local government, transactions, and financing. Oil and gas companies rely on Ramona for title opinions, asset transactions, surface use and access issues, pipeline rights-of-way, matters arising under unit agreements and joint operating agreements, financing transactions, and compliance with Alaska's unique oil and gas regulations. Ramona assists mining companies with transactions, title reports, access issues, joint ventures, and other exploration and project development matters. She has also applied her title and due diligence experience to wind energy projects and timberland transactions. Ramona also has experience assisting clients with issues arising under the Coastal Zone Management Act and state coastal management programs. She has negotiated many cable television franchise agreements with local governments and represented these clients in hearings before elected officials to obtain approval of these agreements. Ramona serves as a Trustee-at-Large of the Rocky Mountain Mineral Law Foundation.
STEPHANIE BARBER-RENTERIA recently re-joined the natural resources law firm of Lear & Lear PLLC, specializing in oil and gas exploration and development on federal, state, and private lands in several states across the country. Stephanie's practice focuses on the preparation of drilling and division order title opinions and representing clients before administrative and regulatory agencies. Stephanie was previously an in-house attorney with the State of Utah, School and Institutional Trust Lands Administration (SITLA). During her time at SITLA, she advised the oil and gas, mining, and surface groups with respect to sales, leases, easements, and permits. She also represented the agency in matters before the SITLA Board of Trustees. Stephanie graduated from Temple University School of Law in 2000. Following graduation, she clerked for the Honorable Justice Michael J. Wilkins (ret.) of the Utah Supreme Court. Stephanie is currently licensed to practice in Utah, California, and Wyoming, and she is in the process of applying for reactivation of her New Mexico license.
I. History of State Lands, Leasing and Administration:
A. Utah: Sections 2, 16, 32, 36 granted at statehood (1896) for benefit of public schools. In lieu lands granted if these sections unavailable. State also received quantity to grants for other public beneficiaries, e.g.:
Higher Education Institutions
University of Utah 156,080 acres
School of Mines 100,000 acres
Miners Hospital 100,000 acres
Utah State University 200,000 acres
Special Education Institutions
School for the Blind 100,000 acres
School for the Deaf 100,000 acres
Public Institutions
Public Buildings 100 sections
Juvenile Justice Services 100,000 acres
State Hospital 100,000 acres
Reservoirs 500,000 acres
Since 1994, lands managed by School and Institutional Trust Lands Administration (an independent state agency), under Utah Code Ann. § 53C-1-101 et seq. Agency is headed by a Director, appointed by a six-member Board of Trustees (whose members are appointed by the Governor). Oil and gas leasing is handled by Oil and Gas Group, under Assistant Director LaVonne Garrison. Leasing took place under predecessor agency, State Land Board, and agency still has active HBP leases dating back to 1930's.
B. New Mexico: After almost 60-year process, by statehood (1912) New Mexico granted Sections 2, 16, 32, 36 for the support of public schools. Also, received quantity grants similar to Utah's (New Mexico's universities and colleges, Schools for Blind and Deaf, Behavioral Institute, Miner's Medical Center, Penitentiary, Public Buildings, etc.).
Trust lands, 9 million acres of surface and 13 million acres of subsurface, are managed by the New Mexico State Land Office, which is overseen by the State Land Commissioner, elected to a four-year term. Commissioner is assisted by a seven-member State Lands Trust Advisory Board (appointed by the State Land Commissioner and confirmed by the State Senate to serve 6-year terms).
Oil and gas leasing overseen by Ed Martin, Oil & Gas Division Deputy Director, and Kenda Montoya is Oil and Gas Leasing Manager, 505-827-5749. First oil and gas lease issued in 1916, and first royalty payment received in 1924. Comprehensive Oil and Gas Manual is available online at www.nmstatelands.org
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C. Colorado: Sections 16 and 36 granted at statehood (1876) to support public beneficiaries, primarily public schools, similar to Utah and New Mexico. Quantity grants include 32,000 acres each for public buildings and a penitentiary, 46,080 acres for a state university (University of Colorado).
Lands managed by Colorado State Land Board (which has been in existence for 142 years). From statehood to 1909, agency was run by the Governor, Superintendent of Public Schools, Secretary of State, and Attorney General. In 1909, Land Board was created, but it was managed by Commissioners appointed by the Governor, who were accused of selling lands for less than fair-market value in the late 1950s and early 1960s. In 1996, Colorado Constitution was amended to current system of five-member Board of Commissioners, chosen by Governor and confirmed by Legislature to serve four-year terms. Board has dual responsibilities: to generate reasonable and consistent income over time, and to protect and enhance the natural values of state trust lands. For oil and gas leasing questions, contact Catie Stitt, Oil and Gas Specialist, catie.stitt@state.co.us
D. Alaska: With statehood in 1959, Alaska is a young state. Out of concern that the state would be a drain on federal resources, the state was given 105 million acres of land (which is larger than the entire State of California) at statehood from which to derive revenue to support the new state. The state began selecting lands which prompted Alaska' Natives to assert rights to many of those lands. In 1971, Congress passed the Alaska Native Claims Settlement Act (ANCSA) to address these competing claims. Instead of Indian Reservations, ANCSA created Native corporations and granted them title to 44 million acres of land (about the size of the State of Oklahoma). Village corporations received title to the surface estate and the corresponding Regional corporation received title to the subsurface estate. These Native lands are essentially private lands. Although they can theoretically be sold, most Native corporations will only lease their lands. Regional corporations have to share most revenues they derive from their lands with other Native corporations.
Much of Alaska's mineral development is on State lands. State lands are administered by the Department of Natural Resources. When disposing of interests in State lands, the State is required to reserve all minerals. Oil and gas is generally leased through a competitive sealed bid auction process. Before leasing, the State must make a finding that disposal is in the best interest of the State. This best interest finding has been the source of significant litigation in Alaska.
Current oil and gas development is primarily located in the North Slope and Cook Inlet regions of the State. Minerals in an oil-rich portion of the North Slope are jointly owned by State and Arctic Slope Regional Corporation (ASRC) as tenants in common--the result of a settlement of an ownership dispute. These minerals are...
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