Niobrara, Codell · Colorado · Wyoming · Nebraska · Kansas
The Denver-Julesburg Basin — Colorado's primary oil and gas producing region, centered in Weld County.
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Just received a certified letter about a forced pooling application from Civitas Resources for a 640-acre unit in Weld County. The application is at the ECMC. I'm unleased on 80 NMA in this unit. The letter says I have 30 days to elect my participation option. What are my choices and which one is best?
Under Colorado's forced pooling statute (C.R.S. §34-60-116), you have three primary election options as an unleased interest owner: (1) **Accept the minimum royalty** — typically 1/8 (12.5%) with costs withheld until recovered; (2) **Participate as a Working Interest owner** — you pay your proportionate share of costs but receive a larger production share; or (3) **Cash-bonus option** — some applications include an option for a one-time cash payment. CRITICAL: Do NOT select option 2 without forming an LLC first — Working Interest ownership in your personal name exposes your entire net worth to liability. What is the proposed royalty rate in option 1?
I'm getting monthly royalty checks from Civitas but the stub literally just says 'Net Royalty: $847.22' with no breakdown whatsoever. No volumes, no prices, no deductions listed. Is this legal in Colorado? Who do I complain to?