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1 Colorado Court of Appeals 2 East 14th Avenue Denver, CO 80203 District Court, Boulder County, Colorado 2013CV63 COLORADO OIL & GAS ASSOCIATION, COLORADO OIL AND GAS CONSERVATION COMMISSION, TOP OPERATING COMPANY Plaintiffs, v. CITY OF LONGMONT, COLORADO Defendant Defendants-Intervenors: OUR FUTURE, OUR LONGMONT; SIERRA CLUB; FOOD AND WATER WATCH; EARTHWORKS COURT USE ONLY Plaintiff TOP Operating Attorney: Thomas J. Kimmell, Reg. No. 9043 Zarlengo & Kimmell, PC 700 N. Colorado Blvd. #598 Denver CO. 80206 303-832-6204 [email protected] Court of Appeals Case Number: 2014CA1759 TOP OPERATING COMPANY’S AMENDED ANSWER BRIEF Plaintiff-Appellee TOP Operating Company (“TOP”) hereby files its Amended Answer Brief.

Top Operating amended answer brief

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Longmont voters instituted a ban on hydraulic fracturing in 2012, an industry group and a state agency sued the city. A district court found with against the city and Longmont is now appealing the decision.

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Page 1: Top Operating amended answer brief

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Colorado Court of Appeals

2 East 14th Avenue

Denver, CO 80203

District Court, Boulder County, Colorado

2013CV63

COLORADO OIL & GAS ASSOCIATION,

COLORADO OIL AND GAS

CONSERVATION COMMISSION, TOP

OPERATING COMPANY

Plaintiffs,

v.

CITY OF LONGMONT, COLORADO

Defendant

Defendants-Intervenors: OUR FUTURE,

OUR LONGMONT; SIERRA CLUB;

FOOD AND WATER WATCH;

EARTHWORKS

COURT USE ONLY

Plaintiff TOP Operating Attorney:

Thomas J. Kimmell, Reg. No. 9043

Zarlengo & Kimmell, PC

700 N. Colorado Blvd. #598

Denver CO. 80206

303-832-6204

[email protected]

Court of Appeals Case

Number: 2014CA1759

TOP OPERATING COMPANY’S AMENDED ANSWER BRIEF

Plaintiff-Appellee TOP Operating Company (“TOP”) hereby files its

Amended Answer Brief.

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CERTIFICATE OF COMPLIANCE

I hereby certify that this Brief complies with all requirements of

C.A.R. 28 and C.A.R. 32, including all formatting requirements set forth in

these rules. Specifically, the undersigned certifies that:

The Brief complies with C.A.R. 28(g). It contains 8775 words.

The Brief complies with C.A.R. 28(k)

For the party raising the issue:

It contains under a separate heading (1) a concise statement of the

applicable standard of appellate review with citation to authority; and (2) a

citation to the precise location of the record (R. _______, p. __________),

not to an entire document, where the issue was raised and ruled on.

For the party responding to the issue:

[x] It contains, under a separate heading, a statement of whether such

party agrees with the opponent’s statements concerning the standard of

review and preservation for appeal, and if not, why not.

I acknowledge that my brief may be stricken if it fails to comply

with any of the requirements of C.A.R. 28 and C.A.R. 32.

/s/ Thomas J. Kimmell

___________________________

Thomas J. Kimmell

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TABLE OF CONTENTS

TABLE OF AUTHORITIES……………………………………………....6

STATEMENT OF THE ISSUES PRESENTED FOR REVIEW…….....8

STANDARD OF REVIEW AND PRESERVATION FOR APPEAL…..8

I. STATEMENT OF THE CASE …………………………...…………9

A. NATURE OF THE CASE………………………....…….…...9

B COURSE OF PROCEEDINGS….………………..….….....10

C. STATEMENT OF UNDISPUTED FACTS ………….......11

1. TOP Operating’s Interests in Longmont………………..11

2. 2012 Contracts between TOP and Longmont…………...12

3. Longmont expressly permits hydraulic fracturing in its

2012 Contracts with TOP………………………...……….....12

4. Inconsistent nature of Longmont claims………………...13

5. TOP’s practice and intent to hydraulically fracture all

TOP’s oil and gas wells in the Wattenberg Field…...……...14

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6. Conflict between Longmont and State Rules as to

Hydraulic Fracturing…………………………….........……..15

II. ARGUMENT………………………………………………...………15

A. SUMMARY OF ARGUMENT……………………………..15

B. UNDER THE LAW OF IMPLIED PREEMPTION,

LONGMONT IS PREEMPTED FROM REGULATING A

TECHNICAL ASPECT OF OIL AND GAS OPERATIONS, SUCH AS

HYDRAULIC FRACTURING………………………………………..…17

C. LONGMONT’S FRACKING BAN IMPERMISSABLY

CONFLICTS WITH STATE RULES AND POLICIES AND IS

INVALID AND PREEMPTED AS A MATTER OF LAW……………23

1. Colorado has a substantial state interest in uniform

regulation of oil and gas…………..……...……………….…23

2. The Colorado Oil and Gas Conservation Commission

expressly allows and regulates Hydraulic Fracturing……..25

3. The City of Longmont has banned any Hydraulic

Fracturing Operations and storage and disposal of related

wastes from any location within Longmont ...……………...29

4. An impermissible operational conflict exists when a

locality prohibits an oil and gas operation that the state

allows……………………………………………………….....30

5. Under the Operational Conflict Test, since an

irreconcilable conflict exists between the state rule and the

local rule in an area of exclusive state interest or of mixed

state and local interest, the local rule must yield to the state

rule and deemed preempted…………………………………33

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III. CONCLUSION …………………………………...……………….42

TABLE OF AUTHORITIES

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CASES:

Amos v. Aspen Alps 123, LLC, ……………………………………………...9

280 P. 3d 1256, 1259 (Colo. 2012)

Bd. Of County Commissioners v. Bowen/Edwards Associates, Inc

830 P. 2d 1045, 1061 (Colo. 1992)…………………18,21,22,24,30,33,36,42

Bd. Of County Commissioners of Gunnison County v. BDS International,

LLC,………………………………………………………………….36,37,41

159 P. 3d 773, 779 (Colo. App. 2006)

Cit of Northglenn v. Ibarra, …………………………………………...…..34

62 P. 3d 151, 155, 163 (Colo. 2003)

Colorado Mining Association v. Board of County Commissioners of Summit

County, 199 P. 3d 718, 730 (Colo. 2009)………………………...19,21,31,41

JAM Restaurant, Inc. V. City of Longmont, …………………………...…..39

140 P. 3d 192 (Colo. App. Div. 2 2006)

Town of Carbondale v. GSS Properties, LLC, ………………………...…..33

140 P. 3d 53, 59-60 (Colo. App. 2005)

Town of Frederick v. North American Resources Company……..18,22,37,41

60 P. 3d 758, 761 (Colo.App.2002)

Town of Milliken v. Kerr-McGee Oil & Gas Onshore, LP……….….…31,37

2013 COA 72, 12 CA 1618 (Colo. App 2013)

Town of Telluride, CO v. Lot Thirty-Four Venture, L.L.C.,…………….….38

3 P. 3d 30 (Colo. 2000)

Voss v. Lundvall Brothers, Inc., ……………………….11,24,34,35,36,41,42

830 P. 2d 1061 (Colo. 1992)

Webb v. City of Black Hawk, ……………………………………..…32,34,38

295 P. 3d 480, 2013 CO 9 (Colo. 2013)

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RULES AND STATUTES:

C.R.S. Section 34-60-101……………………………………………..……24

C.R.S. Section 34-60-106(2)(a), (2)(b), (2)(d) ………………………..20,24

C.R.S. Section 34-60-106(15)…………………………………………...…38

C.O.G.C.C. Rule 205……………………………………………………….27

C.O.G.C.C. Rules 303 ……….…………………………………….………27

C.O.G.C.C. Rule 303 E…………………………………………………….27

C.O.G.C.C. Rule 305 . 27

C.O.G.C.C. Rule 305. E. (1)…………………………………………….…27

C.O.G.C.C. Rule 305. (c)(1)(iii)………………………………………...…28

C.O.G.C.C. Rule 316…………………………………………………….…28

C.O.G.C.C. Rule 316C……………………………………………………..27

C.O.G.C.C. Completed Interval Report, Form 5A…………………………27

C.O.G.C.C. Rule 317A………………………………………………..……28

C.O.G.C.C. Rule 318A. 4………………………………………………….28

C.O.G.C.C. Rule 325……………………………………………………….28

C.O.G.C.C. Rule 604………………………………………………...……..28

C.O.G.C.C. Rule 703……………………………………………………….28

C.O.G.C.C. Rule 706…………………………………………………….…28

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C.O.G.C.C. Rule 802…………………………………………………...…..28

C.O.G.C.C. Rule 804……………………………………………………….28

C.O.G.C.C. Rule 805…………………………………………………...…..28

C.O.G.C.C. Rule 907……………………………………………………….28

C.O.G.C.C. Rule 908……………………………………………………….28

C.O.G.C.C. Rule 1002…….……………………………………………….28

C.O.G.C.C. Rule 1003……………………………………………………..28

Longmont Resolution R-2012-67…………………………………….…….29

Longmont Resolution R-2012-79…………………………………………..13

Article XVI of the Longmont Municipal Code…………………………….10

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STATEMENT OF THE ISSUES PRESENTED FOR REVIEW

Plaintiff-Appellee TOP Operating Company disagrees with the

Statements of the Issues Presented for review by the Appellants. These

statements consist of argument. TOP contends that the issue is properly

stated as whether the District Court erred in ruling that under Colorado

law, Longmont’s fracking ban is invalid as preempted by state law and by

operational conflict.

STANDARD OF REVIEW AND PRESERVATION FOR APPEAL

Longmont’s Opening Brief does not provide under a separate

heading a statement of the applicable standard of review. However, TOP

acknowledges that appellate review of a grant of summary judgment is

done on a de novo basis. Amos v. Aspen Alps 123, LLC, 280 P. 3d 1256,

1259 (Colo. 2012). TOP also states that the issues were preserved for

appellate review.

I. STATEMENT OF THE CASE

A. NATURE OF THE CASE

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Longmont voters passed a referendum then adopted as Article

XVI of the Longmont Municipal Charter which contains an absolute and

permanent ban on any hydraulic fracturing operations within Longmont.

Not surprisingly since enactment of the ban, not a single oil and gas well has

been drilled and completed within Longmont. The Colorado Oil and Gas

Association commenced the present action and TOP Operating Company,

the principal oil and gas operator within Longmont, and the Colorado Oil

and Gas Conservation Commission then intervened as Plaintiffs. All

Plaintiffs sought a judicial declaration and injunction that Longmont’s

fracking ban is invalid as preempted by Colorado law.

As set forth in more detail below, the Boulder County District Court

properly ruled that no genuine issues of material fact exist, the ban on

hydraulic fracturing passed by Longmont directly conflicts with state policy

and rules which allow hydraulic fracturing, and Longmont’s ban is,

therefore, invalid as preempted by state law.

B. COURSE OF PROCEEDINGS

After considerable discovery, including the taking of numerous

depositions, each Plaintiff filed a Motion for Summary Judgment. TOP’s

Motion for Summary Judgment appears in the Record on Appeal (“Record’)

at pages 450-540.

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On July 24, 2014, Boulder County District Court Judge Mallard

entered an Order Granting Summary Judgment, which is the subject of this

Appeal. Record, pp. 2071-2087. Judge Mallard found that resolution of this

matter by summary judgment was appropriate, reasoning as follows:

This Court, like the courts in Voss, the Town of Frederick,

and BDS, finds it can resolve this matter in an order of summary

judgment. The operational conflict in this case is obvious and

patent on its face. There are no genuine issues of material fact in

dispute. There is no need for an evidentiary hearing to determine

whether the ban on hydraulic fracturing, as a practical matter,

creates operational conflict.

Record, p. 2087. Based on this operational conflict, the Court entered

declaratory judgment that Article XVI “is invalid as a result of operational

conflict preemption.” The Court also granted the Plaintiffs’ request for an

injunction enjoining Longmont from enforcing the fracking ban, and then

stayed the injunction during the pendency of this appeal. Id.

C. STATEMENT OF UNDISPUTED FACTS

1. TOP Operating’s Interests in Longmont. TOP Operating

Co. (“TOP”) is a Colorado corporation that owns oil and gas interests and

operates oil and gas wells in Colorado. The principal holdings of TOP,

which consist of undrilled lease acreage and producing oil and gas wells, are

located within or adjoining to the City of Longmont. See Record, pp. 534-

536, Affidavit of Murray Herring attached as Exhibit B to TOP’s Motion for

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Summary Judgment. These oil and gas assets are located within the

Wattenberg field.

2. 2012 Contracts between TOP and Longmont. In the

summer of 2012 after lengthy negotiations and studies, the City of

Longmont, acting through its City Council and Mayor, entered into contracts

with TOP providing for TOP’s development of its oil and gas leases in

Longmont, expressly including oil and gas development of both surface and

mineral rights owned by Longmont. These contracts consist of the Master

Contract dated August 8, 2012 and Operator’s Agreement dated July 17,

2012. See Record, pp. 471-486, 492-517, Exhibit D to Motion for Summary

Judgment.

3. Longmont expressly permits hydraulic fracturing in its

2012 Contracts with TOP. In these 2012 contracts, as to Longmont’s

mineral rights, Longmont ratified the validity of previous oil and gas leases

previously taken by TOP in which Longmont had succeeded to a

mineral/royalty interest and executed three new oil and gas leases to TOP on

other minerals owned by Longmont. In addition to leasing its mineral rights,

Longmont expressly contracted for TOP’s use of certain of Longmont’s

surface properties to conduct its oil and gas operations. These contracts

expressly provide for TOP’s right to conduct fracking and re-fracking

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operations on such surface location. In particular, Paragraph 1.b of the

Operator’s Agreement states, in pertinent part, as follows:

Subject to the terms and conditions of the Contract and this

Agreement, the Sites shall be made available to the Company

for its use and in their present condition for all oil and gas

operations to be conducted by the Company in accordance

with this Agreement and the Contract, which operations may

include, but are not limited to, drilling, completion, and

maintenance of wells and equipment, production operations,

workovers, well recompletions and deepenings, fracturing,

re-fracturing, twinning, and drilling of replacement wells and

the location of associated oil and gas production and drilling

equipment and facilities (“Operations”). (Emphasis added.)

Record, p. 500, Operator’s agreement, p. 1.

4. Inconsistent nature of Longmont claims. Only a few

months after execution of these contracts, in November 2012, the Longmont

voters passed Resolution R-2012-79, which contains an absolute and

permanent ban on any hydraulic fracturing operations within Longmont. It

goes without saying the current claims in Longmont’s Brief as to the

environmental hazards associated with fracking and as to TOP’s inability to

safely operate were not believed by Longmont’s City Council and Mayor in

July and August 2012, when these contracts were executed, and these claims

are entirely inconsistent with the contracts and determinations made in the

summer of 2012 by Longmont in expressly allowing fracking and other oil

and gas operations by TOP on Longmont owned properties.

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5. TOP’s practice and intent to hydraulically fracture all

TOP’s oil and gas wells in the Wattenberg Field. For the last twenty to

thirty years, all wells drilled by TOP and virtually, if not all, wells drilled by

other operators in the Wattenberg field to the normal targeted formations,

consisting of the Codell, Niobrara, and J Sand shale formations, have been

completed with hydraulic fracturing and hydraulic fracking is a standard and

essential industry practice 1. See Record, p. 535, Affidavit of Murray

Herring, paragraph 5; p. 585, Report of Oil and Gas Commission, December

2011, finding that “Nearly all active wells in Colorado have been

hydraulically fractured.”

In accordance with standard industry practice in the Wattenberg Field,

TOP plans to utilize hydraulic fracturing as to the targeted formation(s),

which consist of the Codell, Niobrara, and J Sand shale formations, in all

wells in Longmont. Record, p. 535. TOP will not and cannot economically

drill and complete these wells without the ability to conduct hydraulic

fracturing operations, which it is currently unable to do in view of

Longmont’s fracking, ban. Id. TOP did obtain a drilling permit from

Longmont but in view of Longmont’s permit condition that fracking is not

1 . - The only evidence presented by Defendants of oil and gas wells drilled

in the Wattenberg Field without hydraulic fracturing concerns a few wells

drilled into the Lyons Formation, which is not a shale formation.

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permitted; TOP has not drilled the permitted well. See Record, p. 538,

Drilling Permit, p. 1, attached as Exhibit A to TOP’s Motion for Summary

Judgment. Since passage of the fracking ban in November 2012, TOP has

not drilled any wells in Longmont. The only well drilled since November

2012 within Longmont was done by Synergy Resources, Inc. (“Synergy”).

Although Synergy drilled a well from the Town of Firestone in the vicinity

of the border with Longmont and ran laterals into bottom hole locations with

Longmont, because of the hydraulic fracturing ban, Synergy never

completed and has yet to produce the portion of the well and minerals

underlying Longmont. See Record, p. 565, Affidavit of Edward Holloway,

paragraphs 5-8; p. 2023, Exhibit E, deposition of Ed Holloway, pp. 74-75.

6. Conflict between Longmont and State Rules as to

Hydraulic Fracturing. There is a conflict between Longmont’s fracking

ban and the rules and policies followed by the Colorado Oil and Gas

Conservation Commission (referred to as “the Commission” or the

“COGCC”). As explained in Section II.B below, this conflict is actual and

direct: Longmont expressly prohibits hydraulic fracturing and the COGCC

expressly allows hydraulic fracturing.

II. ARGUMENT

A. SUMMARY OF ARGUMENT

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The District Court properly ruled that the City of Longmont’s

absolute and permanent ban on fracking operations within Longmont is

preempted by state law and is, therefore, invalid. This ruling is consistent

and in accordance with two legal principles that have been firmly established

in the Colorado cases. First, as a matter of law, Longmont’s attempt to

prohibit a technical aspect of oil and gas operations like hydraulic fracturing

is impliedly preempted and the field of regulation of the technical aspects of

oil and gas operation is subject to the exclusive regulation of the Colorado

Oil and Gas Commission. Second, Longmont has prohibited hydraulic

fracturing, while the state oil and gas regulatory agency, the Colorado Oil

and Gas Conservation Commission, expressly allows an operator to conduct

fracking operations in all parts of Colorado. A direct and actual conflict

exists between the law and regulations of Longmont and the law and

regulations of the State of Colorado as to the ability to conduct hydraulic

fracturing of oil and gas wells. In view of this direct and unquestionable

operational conflict; the strong state policies in uniform regulation of oil

and gas operations, in ensuring that private property is not taken without just

compensation and in protecting the correlative rights of all Colorado owners

to obtain their fair share of oil and gas reserves; and the firmly established

Colorado judicial precedent that oil and gas regulation is a matter of

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exclusive state or mixed state and local concern, Longmont’s ban must yield

to and be deemed preempted by state law and regulation.

The District Court was also correct in finding that it could resolve this

matter in an order on summary judgment. Under the Colorado law of

preemption, the only factual issue for the trial court to determine is whether

the local law (i.e., Longmont’s fracking ban) creates an operational conflict

with state law and regulations. The District Court properly ruled that the

“operational conflict in this case is obvious and patent on its face” and no

genuine issues of material fact are in dispute. Record, p. 287. Contrary to

Appellants’ arguments, the evidence proferred by Appellants as to the safety

or environmental effects of fracking is not relevant and has not been deemed

relevant by any Colorado preemption case. Clearly, the Court’s role is not to

substitute its own judgment as to wisdom of the determination to allow

fracking, made after extensive review and rule making, by the state

administrative agency delegated to oversee oil and gas operations in

Colorado.

B. UNDER THE LAW OF IMPLIED PREEMPTION,

LONGMONT IS PREEMPTED FROM REGULATING A

TECHNICAL ASPECT OF OIL AND GAS OPERATIONS, SUCH AS

HYDRAULIC FRACTURING

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Appellants confuse the doctrines of express preemption and implied

preemption. It is correct that the Colorado Courts have held that the

Colorado Oil and Gas Conservation Act does not expressly preempt the

entire field of oil and gas regulation. Accordingly, TOP and the District

Court decision do not claim or rely upon express preemption as grounds to

invalidate the Longmont fracking ban. Rather, TOP contends that under the

alternative doctrine of implied preemption, Longmont’s attempts to regulate,

and indeed prohibit, a technical aspect of oil and gas operations, such as

hydraulic fracturing, is invalid. Indeed, in all situations in which the

Colorado Courts found that local regulations affecting oil and gas

operations were not preempted, the cases concerned local regulations that

either incidentally affected oil and gas operations, like the so-called “land

use coordination standards” designed to minimize conflicts between

differing land uses considered in Bd. of County Commissioners v.

Bowen/Edwards Associates, Inc., 830 P. 2d 1045, 1061 (Colo. 1992), or

attempted to regulate land use aspects of oil and gas operations, like noise

and visual impact, such as in Town of Frederick v. North American

Resources Company, 60 P. 3d 758, 761 (Colo. App. 2002). In marked

contrast to all the above cases, the present case involves a local

regulation that does not incidentally regulate but rather purports to

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directly prohibit a technical aspect and procedure of oil and gas

operations, namely the hydraulic fracturing completion technique.

The most direct and applicable precedent to the Longmont fracking

ban is the 2009 Colorado Supreme Court case of Colorado Mining

Association v. Board of County Commissioners of Summit County, 199 P. 3d

718, 730 (Colo. 2009). At issue in this case was the validity of a Summit

County ordinance that banned the use of toxic or acidic chemicals, such as

cyanide, for mineral processing in mining operations. As noted by the

Colorado Supreme Court, the “effect of this ordinance is to prohibit a certain

type of mining technique customarily used in the mineral industry to extract

precious metals, such as gold.” Id at 721. The state agency in charge, the

Colorado Mined Land Board, did not issue any specific cyanide permits, as

in the present case with respect to fracking, and had not promulgated any

express regulations allowing the use of cyanide. However, as found by the

Colorado Supreme Court, the Colorado legislature had assigned to the state

agency “the authority to authorize and comprehensively regulate the use of

toxic or acidic chemicals, such as cyanide, for mineral processing in mineral

operations, a field identified by the legislature.” Id. at 722. Similarly, in the

present case, under the Colorado Oil and Gas Conservation Act, the

Colorado Legislature has expressly provided for the Commission’s authority

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to regulate “drilling, producing … and all other operations for the production

of oil or gas”, “[t]he shooting and chemical treatment of wells”, and “[o]il

and gas operations so as to prevent and mitigate adverse environment

impacts”. C.R.S. Section 34-60-106(2) (a), (2) (b), (2) (d).

The Supreme Court struck down the Summit County ordinance on the

grounds of implied preemption: namely, by finding that the Colorado

General Assembly had assigned to the state agency the field of regulating

the technical issues as to the use of chemicals in mining operations. The

Court held, in pertinent part, as follows:

Application of the preemption analysis we utilized in

Voss, Ibarra, Banner Advertising, and other cases leads to the

conclusion that Summit County’s ban on the use of cyanide or

other toxic or acidic regents for mineral processing

impermissibly conflicts with the MLRA [Mined Land

Reclamation Act], resulting in the implied preemption of the

Summit County ordinance. Id….

The General Assembly assigned to the Board [the Mined

Land Reclamation Board] the authority to authorize and

comprehensively regulate the use of toxic or acidic chemicals,

such as cyanide, for mineral processing in mining operations

that Summit County’s existing ordinance would occupy,

negating the Board’s statutory role. We conclude that

Summit County’s existing ordinance is not a proper exercise

of its land use authority because it excludes what the

General Assembly has authorized. Due to the sufficiently

dominant state interest in the use of chemicals for mineral

processing, we hold that the MLRA impliedly preempts

Summit County’s ban on the use of toxic or acidic

chemicals, such as cyanide, in all Summit County zoning

districts. Id. at 723.

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This holding is directly applicable to the present case. To the same

extent that Summit County’s ban on the use of certain mining chemicals is

preempted because of the state’s grant of exclusive authority to the state

mining agency to regulate the use of chemicals for mining, Longmont’s

ban on fracking is similarly invalid because the field of regulation of

technical aspects of oil and gas operations is given and reserved to the

Colorado Oil and Gas Conservation Commission. Further, like Summit

County’s ban, Longmont’s Resolution affects an otherwise allowable

operation and technical aspect of oil and gas operations, which conflicts with

the Colorado Oil and Gas Commission’s delegated and exercised authority

to regulate this technical aspect of oil and gas drilling.

Colorado Mining Association v. Board of County Commissioners of

Summit County, 199 P. 3d 718, 730 (Colo. 2009) , is not only binding and

recent precedent from the Colorado Supreme Court, but, in addition, is

consistent with the holdings in oil and gas preemption decisions relating to

the lack of local authority to regulate technical aspects of oil and gas

operations. For example, in Bd. of County Commissioners v.

Bowen/Edwards Associates, Inc., 830 P. 2d 1045 (Colo. 1992), the Supreme

Court noted the need for uniform state regulation of the technical aspects of

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drilling while allowing local regulation of traditional land use matters,

stating as follows:

[P]reemption may be inferred if the state statute impliedly

evinces a legislative intent to completely occupy a given field

by reason of a dominant state interest…

There is no question that the efficient and equitable

development and production of oil and gas resources within the

state requires the uniform regulation of the technical aspects of

drilling, pumping, plugging, waste prevention, safety

precautions, and environmental restoration…. The state’s

interest in uniform regulation of these and similar matters,

however, does not militate in favor of an implied legislative

intent to preempt all aspects of a county’s statutory authority to

regulate land use within its jurisdiction….(Emphasis added.)

Id. at 1056, 1058.

In Town of Frederick v. North American Resources Company, 60 P. 3d

758, 761 (Colo. App. 2002), the Colorado Court of Appeals ruled that

“certain provisions of the Town’s ordinance do regulate technical aspects of

drilling and related activities and thus could not be enforced. Id at 764. The

Court noted that as held in Bd. of County Commissioners v. Bowen/Edwards

Associates, Inc., 830 P. 2d 1045 (Colo. 1992), only ‘nontechnical aspects’ of

oil and gas operations are subject to local regulation, stating as follows:

The Bowen/Edwards court did not say that the state’s interest

‘requires uniform regulation of drilling’ and similar activities.

Rather, according to the court, it ‘requires uniform regulation of

the technical aspects of drilling’ and similar activities. The

phrase ‘technical aspects’ suggests that there are ‘nontechnical

aspects’ that may yet be subject to local regulation. Id. at 763.

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Proper application of the above holdings to the present case compels a

conclusion that the Longmont prohibition on hydraulic fracturing is invalid

under the doctrine of implied preemption, because it impermissibly attempts

to regulate a technical aspect of oil and gas operations, the regulation of

which is exclusively assigned to the Colorado Oil and Gas Conservation

Commission.

C. LONGMONT’S FRACKING BAN IMPERMISSABLY

CONFLICTS WITH STATE RULES AND POLICIES AND IS

INVALID AND PREEMPTED AS A MATTER OF LAW

Should the Court not find that the Longmont ban on hydraulic

fracturing is invalid under the doctrine of implied preemption, then the Court

must undertake the analysis of whether an impermissible operational conflict

exists between the Longmont ordinance and state rules and policies.

1. COLORADO HAS A SUBSTANTIAL STATE INTEREST

IN UNIFORM REGULATION OF OIL AND GAS OPERATIONS

The law is firmly established in Colorado that oil and gas regulation is

a matter of state concern and interest. Both the legislature and the Courts

have unequivocally recognized that the state has a substantial interest in

regulation of oil and gas operations In particular, the Colorado Supreme

Court cases and the legislation have recognized the state’s strong interest in

the uniform, efficient and fair development of oil and gas resources and,

regardless of where located, and in protecting the coequal and correlative

Page 24: Top Operating amended answer brief

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rights of mineral owners and producers throughout the state to a fair share of

the production profits. See Voss v. Lundvall Brothers, Inc., 830 P. 2d 1061

(Colo. 1992) and Bd. of County Commissioners v. Bowen/Edwards

Associates, Inc., 830 P. 2d 1045 (Colo. 1992); Oil and Gas Conservation

Act, C.R.S. Section 34-60-101 et. seq. Colorado has empowered the

Colorado Oil and Gas Conservation Commission as the agency with the

expertise, manpower, and authority to regulate oil and gas development and

effects upon safety and the environment and throughout the state, including

as to all downhole operations like hydraulic fracturing. Since passage of the

Oil and Gas Conservation Act in 1951 and continuing with amendments

throughout 2013, the Colorado Legislature has expressly provided for the

Commission’s authority to regulate “drilling, producing and all other

operations for the production of oil or gas”, “[t]he shooting and chemical

treatment of wells”, and “[o]il and gas operations so as to prevent and

mitigate adverse environment impacts”. C.R.S. Section 34-60-106(2) (a),

(2) (b), (2) (d). As set forth in more detail below, in accordance with this

statutory authority, the Commission has enacted comprehensive rules and

regulations governing oil and gas operations, expressly including and

permitting hydraulic fracturing operations. Accordingly, for purposes of the

preemption analysis in the present case, Colorado law is established that the

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matter of regulation of oil and gas operations is either an exclusive state or a

mixed state and local concern.

2. THE COLORADO OIL AND GAS

CONSERVATION COMMISSION EXPRESSLY ALLOWS AND

REGULATES HYDRAULIC FRACTURING

There can be no factual dispute that pursuant to the authority

delegated to the Commission, the Commission allows hydraulic fracturing of

all oil and gas wells in Colorado, including wells located in Longmont.

Indeed, on December 13, 2011, as indicated in the Report of Commission

beginning on P. 584 of the Record and attached as Exhibit C to TOP’s

Motion for Summary Judgment, the Commission completed its rule making

as to hydraulic fracturing, stating “A major reason for adopting the new rules

and amendments was to address concerns regarding hydraulic fracturing”.

Record. p. 593. As indicated in this Report, the Commission’s decision to

allow hydraulic fracturing was done in its capacity as the agency with the

expertise to regulate oil and gas operations, was based on substantial

scientific study and on “discussions with those intergovernmental

organizations, as well as other states, industry associations, individual

operators, and conservation groups” and to “strike a reasonable balance”.

Record, P. 594 The court should defer to the determinations made by the

Colorado Oil and Gas Conservation Committee and require Longmont to

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participate in the permitting process before the COGCC as a local

governmental designee rather than creating its own conflicting regulatory

prohibitory scheme.

Not a single preemption decision by the Colorado courts has ever held

that it is the trial court’s function to question the regulatory determinations

made the state agency or to make its own judgment as to the safety, need for,

and environmental consequences to the locality of a particular oil and gas

operation. The pages upon pages of argument and factual claims contained

in the briefs of Longmont and the Citizens’ Intervenors as to the safety, local

environmental effects, property value effects, and technical need for

hydraulic fracturing are entirely irrelevant to the required preemption

analysis. The relevant standard in a preemption case is simply if the local

regulation is not impliedly preempted and if the matter is one of exclusive or

mixed state concern, as in the present case, whether an operational conflict

exists between the local and state rule which would compel a finding of

preemption. While TOP vigorously disagrees with most, if not all, of

Defendant’s environmental contentions, in view of their irrelevance, it is

beyond the scope of this Reply to address and refute these contentions.

Defendants correctly state that the Commission does not require a

separate permit to conduct hydraulic fracturing. However, the fact that the

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Commission does not require a separate permit for a particular operation is

irrelevant and does not mean it is not subject to regulation; indeed, the

Commission regulates virtually all oil and gas operations, including surface

configuration and related setbacks, the installation of casing and tubing,

drilling operations, perforating, and completion pursuant to two general

permits, namely the Form 2A Oil and Gas Location Assessment and the

Application for Permit to Drill. See Rules 303 and 305 of the Colorado Oil

and Gas Conservation Commission.

Further, in addition to the general permits required for drilling a new

well, hydraulic fracturing is regulated by numerous specific COGCC

regulations. Commission regulations include requirements expressly

applicable to hydraulic fracturing. These rules include disclosure of

chemicals used in hydraulic fracturing treatments (Rule 205); notice to

landowners of the details of hydraulic fracturing treatments (Rule 305.E.

(1)); advance written notice of any hydraulic fracturing treatments and

completion of a specified Form 42 as to such treatments, a copy of which is

also provided to the local governmental designee (Rule 316C); and the filing

of a Completed Interval Report, Form 5A; which must contain the details of

any hydraulic fracturing treatment. The Commission has also adopted

numerous rules designed to ensure safety and prevent adverse environmental

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of all oil and gas operations, which apply to hydraulic fracturing, including

requiring tests or surveys to determine the occurrence of water pollution,

such as Braidenhead monitoring of the annulus between the production

tubing and casing (Rule 305(c)(1)(iii)); requiring operators to install casing

that satisfies specified quality and quantity requirements and to follow

specified cementing procedures in order to protect and isolate groundwater

formations (Rule 317A); groundwater monitoring to determine and prevent

contamination (Rule 318A.4); procedures for the disposal of fluids,

including fluids used for hydraulic fracturing (Rule 325); preparation,

interim reclamation and final reclamation of drill sites ( Rules 1002, 1003);

financial assurance requirements on operators, including for protection of

surface owners ( Rule 703); notices to and consultation with surface owners

and local government representatives (Rule 316); regulation of odors and

dust from oil and gas operations, including as to sand used in fracking

operations (Rule 805); noise abatement requirements (Rule 802); visual

impact rules (Rule 804; protection of soil (Rule 706); disposal of waste and

fluids (Rules 907 and 908); mitigation measures in certain circumstances,

such as requiring closed loop systems as to fluids used in oil and gas

operation (Rule 604); and procedures for inspection and enforcement of the

Commission’s rules.

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In summary, the Commission expressly permits Operators to utilize

hydraulic fracturing procedures on all wells in Colorado and regulates these

and related procedures through detailed and comprehensive rules,

regulations, and drilling related permits.

3. THE CITY OF LONGMONT HAS BANNED ANY

HYDRAULIC FRACTURING OPERATIONS AND STORAGE AND

DISPOSAL OF RELATED WASTES FROM ANY LOCATION

WITHIN LONGMONT.

In November 2012, Longmont passed Resolution R-2012-67. This

Resolution contains an absolute and permanent ban on any hydraulic

fracturing operations within Longmont and on the storage or disposal of

wastes created in connection with the hydraulic fracturing process within

Longmont. Since passage of this Resolution, Longmont has required as a

condition of approval for any oil and gas well drilled in Longmont a ban on

the use of any hydraulic fracturing (‘fracking”) techniques. See Record, p.

538, Exhibit A to TOP’s Motion for Summary Judgment. Accordingly,

Longmont unequivocally prohibits oil and gas owners from conducting

fracking operations under all circumstances as to property located within

Longmont, while the State of Colorado unequivocally allows fracking

subject to compliance with regulatory requirements.

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4. AN IMPERMISSABLE OPERATIONAL CONFLICT EXISTS

WHEN A LOCALITY PROHIBITS AN OIL AND GAS

OPERATION THAT THE STATE ALLOWS

The argument made by Longmont and Citizens Intervenors there is no

conflict between Longmont and the COGCC’s rules as to hydraulic

fracturing is frankly ludicrous and without any foundation in law or fact.

The Colorado courts have repeatedly recognized that operational conflict is

not limited to situations in which the Commission issues an express permit

for the activity in question and the requirements for the state permit conflict

with local permitting requirements. Rather, an impermissible conflict is

deemed to exist where among other things, the locality bans a practice and

the state allows the practice.

As held by the Colorado Supreme Court in Bowen Edwards, at 1060,

an impermissible operational conflict exist when a local government

imposes conditions on an oil and gas operation for which no such conditions

are imposed under the state regulatory scheme, stating as follows:

[T]he operational effect of the county regulations might be to

impose technical conditions on the drilling or pumping of wells

under circumstances where no such conditions are imposed

under the state statutory or regulatory scheme, or to impose

safety regulations or land restoration requirements contrary to

those required by state law or regulation. To the extent that

such operational conflicts might exist, the county regulations

must yield to the state interest.

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In the 2009 Colorado Supreme Court case of Colorado Mining

Association v. Board of County Commissioners of Summit County, 199 P. 3d

718, 730 (Colo. 2009), a case also on all fours, the Colorado Supreme Court

held that operational conflict exists when a county bans a methodology

which the state has authorized a state agency to regulate, regardless of

whether the state agency has adopted express regulations as to such a

methodology or issued specific permits for use of a particular methodology.

Although the state agency in charge, the Colorado Mined Land Board, had

not issued any specific cyanide permits, as in the present case with respect to

fracking, and had not promulgated any express regulations allowing the use

of cyanide, the Court found nevertheless that an impermissible operational

conflict existed, stating as follows:

[A] local regulation and a state regulatory scheme

impermissibly conflict if they “contain either express or implied

conditions which are inconsistent and irreconcilable with each

other.” Id. at 725.

Similarly in the recent 2013 decision of the Colorado Court of Appeals

in Town of Milliken v. Kerr-McGee Oil & Gas Onshore, LP, 2013 COA 72,

12 CA 1618 (Colo. App. 2013) the Court ruled that a finding of preemption

based on operational conflict was not limited to circumstances in which the

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Commission had actually promulgated a rule or permit condition which

expressly conflicted with the local regulation. Rather, as stated by the Court,

The relevant inquiry is whether the Town’s inspections

concern ‘matters that are subject to rule, regulation, order or

permit condition administered by the commission, Section 34-

69-106(5). The statute’s plain language does not limit its

application to matters on which the Commission has already

promulgated rules, regulations, orders, or permit conditions,

and we decline to read such a limitation into the statute. Id at p.

4.

The recent Colorado Supreme Court decision in Webb v. City of Black

Hawk, 295 P.3d 480, 2013 CO 9 (Colo. 2013), holds similarly that

preemption based on operational conflict exists if the home rule city’s

ordinance forbids what the state allows, stating as follows:

In light of our conclusion that the regulation of bicycle

traffic on municipal streets is of mixed state and local concern,

we next look to determine whether Black Hawk's ordinance

conflicts with state law. The test to determine whether a conflict

exists is whether the home-rule city's ordinance authorizes what

state statute forbids, or forbids what state statute authorizes.

The Webb case has most precedential value since it is the most

recent Colorado Supreme Court Case involving a preemption challenge

to a home rule city ordinance. Contrary to Appellants’ arguments, this

case establishes the standard for preemption as to home rule city. It

holds directly that the operational conflict test applies with a home rule

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city, like Blackhawk, and an invalid conflict exists when the state

statute authorizes what the home rule ordinance forbids.

Applying these principles to the present case, based on the

evidentiary record presented in the summary judgment filings, the

conclusion is inescapable as a matter of law that a direct and actual

conflict exists between state rules and policies which allow hydraulic

fracturing and Longmont’s prohibition against hydraulic fracturing

and, therefore, the Longmont ban is preempted and invalid.

5. UNDER THE OPERATIONAL CONFLICT TEST, SINCE

AN IRRECONCILABLE CONFLICT EXISTS BETWEEN THE

STATE RULE AND THE LOCAL RULE IN AN AREA OF

EXCLUSIVE STATE INTEREST OR OF MIXED STATE AND

LOCAL INTEREST, THE LOCAL RULE MUST YIELD TO

THE STATE RULE AND IS DEEMED PREEMPTED

The policy behind the preemption doctrine in Colorado “is to establish

a priority among potentially conflicting laws enacted by various levels of

government.” Town of Carbondale v. GSS Properties, LLC, 140 P. 3d 53,

59-60 (Colo. App. 2005); Bd. of County Commissioners v. Bowen/ Edwards

Associates, Inc., 830 P. 2d 1045, 1057 (Colo. 1992). Given the clear conflict

between Longmont and State of Colorado rules as to fracking operations,

this case is a prime example of a conflict to be resolved under the law of

preemption.

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The standard to evaluate preemption challenges to legislation passed by

home rule cities (like Longmont, like Blackhawk in Webb v. City of

Blackhawk, or like Greeley in Voss v. Lundvall Bros.) is well established.

The Courts have first analyzed whether the matter is one of statewide,

mixed, or local concern. If the local ordinance is a matter of purely local

concern, then the ordinance supersedes state law. If, however, the ordinance

affects a matter of statewide or mixed concern, then the state rule supersedes

and preempts the local ordinance if there is any conflict between the

different rules or if the state Constitution or state law does not provide

specific authorization to the locality to legislate in this area. City of

Northglenn v. Ibarra, 62 P. 3d 151, 155, 163 (Colo. 2003); Webb v. City of

Blackhawk, 295 P. 3d 496 (Colo. 2013) (applying the operational conflict

test to a home rule ordinance); Voss v. Lundvall Bros, 830 P.2d at 1067.

Contrary to the arguments raised by both Defendants, no Colorado

preemption case has ever held that a plaintiff bears the burden to prove

preemption beyond a reasonable doubt.

As discussed on pages 21-23 of the Brief, the law is firmly established

in Colorado that oil and gas regulation is a matter of state concern and

interest: the Colorado Courts have unequivocally and repeatedly held that

there is a strong need for and policy in favor of statewide uniformity as to

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regulation of oil and gas development and that the “regulation of oil and gas

development and production has traditionally been a matter of state rather

than local control”. Voss, 830 P. 2d at 1068. In Voss v. Lundvall Bros, 830 P.

2d at 1068-1069, the Colorado Supreme Court noted that a home rule city’s

attempt to prevent oil and gas development within the city’s boundaries

impermissibly interfered with the strong state policy, as codified in the

Colorado Oil and Gas Conservation Act, of allowing each mineral owner of

lands within Colorado to obtain its equitable share of production profits from

oil and gas development, stating as follows:

Limiting production to only one portion of a pool outside the

city limits can result in an increased production cost, with the

result that the total drilling operation may be economically

unfeasible. Greeley's total drilling ban thus affects the ability of

nonresident owners of oil and gas interests in pools that

underlie both the city and land outside the city to obtain an

equitable share of production profits in contravention of one of

the statutory purposes of the Oil and Gas Conservation Act….

State preemption by reason of operational conflict can arise

where the effectuation of a local interest would materially

impede or destroy the state interest.”

Given the widespread, and indeed, universal use of fracking on all oil

and gas wells in the Wattenberg Field, the holding in Voss v. Lundvall Bros.,

supra, invalidating Greeley’s ban on drilling within municipal borders

compels the conclusion that Longmont’s prohibition of any fracking in the

Longmont part of the Wattenberg Field also acts as a de facto drilling ban

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and is similarly preempted. TOP submits that Voss v. Lundval Bros. is

sufficient precedent in and of itself to invalidate Longmont’s fracking ban.

The Colorado courts have uniformly held that preemption is triggered

where local regulations materially impede the state interest, cannot be

harmonized with state statute or regulation, or contain conditions which are

inconsistent or irreconcilable with the state regulatory scheme. As stated in

Bowen/Edwards, 830 P. 2d at 1059, “State preemption by reason of

operational conflict can arise where the effectuation of a local interest would

materially impede or destroy the state interest.” As stated in Voss v.

Lundvall Bros., 830 P. 2d 1061, 1069 (Colo. 1992), “We conclude that the

state’s interest in efficient oil and gas development and production

throughout the state, as manifested in the Oil and Gas Conservation Act, is

sufficiently dominant to override a home-rule city’s imposition of a total ban

on the drilling of any oil, gas, or hydrocarbon wells within the city limits”.

In Board of County Commissioners of Gunnison County v. BDS

International, LLC, 159 P. 3d 773. 779 (Colo. App. 2006), the Colorado

Court of Appeals applied the operational conflict test, as follows: “Where

no possible construction of the County Regulations may be harmonized with

the state regulatory scheme, we must conclude that a particular regulation is

invalid.”

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In Town of Frederick v. North American Resources Company, 60 P. 3d

758 (Colo. App. 2002), the Court held that Frederick’s ordinance provisions

imposing set back requirements for the location of wells, regulating noise

abatement, and regulating the visual impact of oil and gas operations

conflicted with detailed requirements of the Commission rules and were

invalid on the grounds of operational conflict. Id. at 765. In Board of

County Commissioners of Gunnison County v. BDS International, LLC, 159

P. 3d 773. 778 (Colo. App. 2006), the Court of Appeals held that Gunnison

County’s regulations concerning fines, financial guarantees, and access to

records were invalid “because they operationally conflict with state statutes

or regulations.

In Town of Milliken v. Kerr-McGee Oil & Gas Onshore, LP, 2013

COA 72, 12 CA 1618 (Colo. App. 2013), the Court held that the Town of

Milliken was preempted from imposing fees for site safety and security

inspections on oil and gas wells conducted by the Town’s police department.

The Court rejected Milliken’s argument that its inspections of oil and gas

wells were different from and therefore not in conflict with the

Commission’s inspections. The Court held that regardless of whether the

Commission’s inspections were the same as the Town’s inspections, “The

relevant inquiry is whether the Town’s inspections concern ‘matters that are

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subject to rule, regulation, order or permit condition administered by the

commission.’ Section 34-60-106(15).” This holding applies with equal force

to the present case, since the technical aspects of oil and gas operations, like

fracking, are directly delegated to and regulated by the Commission.

In Town of Telluride, CO v. Lot Thirty-Four Venture, L.L.C., 3 P.3d 30

(Colo. 2000), the Colorado Supreme Court declared a Telluride ordinance

providing for rent control on private residential properties preempted by a

state statute that prohibited local municipalities from controlling rents,

stating as follows:

After determining that this is an issue of mixed local and

state concern, the next step in the analysis is to ask whether the

home rule ordinance conflicts with the state legislation. See

National Adver. Co., 751 P.2d at 638. Since we find Ordinance

1011 to be a form of rent control, the ordinance clearly conflicts

with the state statute. See supra, Part II. Because the two

measures conflict, the local ordinance must yield to the state

statute.

In the recent case of Webb v. City of Black Hawk, 295 P.3d 480, 2013

CO 9 (Colo. 2013), the Colorado Supreme Court considered the validity of a

ban by the City of Black Hawk of bicycles upon city streets. The Court

determined that Black Hawk’s ban was invalid as preempted by state law

providing that local governments can ban bicycle traffic only where a

suitable and adjacent bike path is established, stating as follows:

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In light of our conclusion that the regulation of bicycle

traffic on municipal streets is of mixed state and local

concern, we next look to determine whether Black Hawk's

ordinance conflicts with state law. The test to determine

whether a conflict exists is whether the home-rule city's

ordinance authorizes what state statute forbids, or forbids what

state statute authorizes.

The Court in Webb reaffirmed the state’s interest in regulatory uniformity,

in avoiding extraterritorial effects on state residents outside the municipality,

and in preventing a municipality from forbidding any activity that is

expressly permitted by state regulation.

Although not an oil and gas case and there is no direct “takings” claim

asserted in this case, JAM Restaurant, Inc. v. City of Longmont, 140 P.3d

192 (Colo. App. Div. 2 2006), is relevant in holding that even matters of

traditional local concern, like zoning, are preempted if they interfere with a

strong state policy, such as prohibiting the taking of private property without

just compensation. In this case, the Colorado Court of Appeals examined

the constitutionality of a Longmont ordinance which limited the locations of

“sexually oriented businesses” to industrially zoned areas. In response to a

challenge by the owner of a cabaret featuring nude dancing which was not

located in an industrial zone, the Court struck down this part of the City’s

zoning statute. In particular, the Court held that the Longmont ordinance

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was preempted by the state law prohibiting the taking of private property

without just compensation. The Court reasoned as follows:

We also must determine whether the Colorado Constitution

specifically commits zoning to state or local regulation. We

conclude the issue here is not exclusively committed to local

regulation. As previously noted, § 38-1-101 (3) (a) is not a

zoning regulation. It was enacted to protect inalienable property

rights recognized by the Colorado Constitution. Because

inalienable property rights are involved, both local and state

concerns are implicated, and the constitution "cannot be read to

dictate the matter at issue as one of exclusively local concern."

City of Northglenn v. Ibarra, supra, 62 P.3d at 162 (quoting

City of Commerce City v. State, supra, 40 P.3d at 1283-84).

Although zoning regulations generally have little

extraterritorial impact and are traditionally a matter of local

concern, in consideration of the legislative declaration

respecting § 38-1-10(3)(a) and the importance of protecting

constitutionally based property rights, we conclude preventing

the taking of private property without just compensation is a

matter of statewide or, at the least, mixed concern. 140 P.3d

197. We therefore conclude § 38-1-101(3) (a) is constitutional,

does not violate the home rule amendment to the Colorado

Constitution, and prevails over Longmont's zoning ordinance as

applied to JAM.

This ruling, which has not been disturbed or questioned by the

Colorado Supreme Court, presents additional support for a determination

that Longmont’s fracking ban, is preempted and unconstitutional. Not only

is the fracking ban preempted by conflict with state regulation of this

technical aspect of oil and gas operation, but, in addition, another factor

supporting the District Court’s ruling is that Longmont’s fracking ban

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unduly conflicts with state law requiring just compensation for the taking of

private property. Undisputedly, the oil and gas reserves owned by TOP

within Longmont’s boundaries are extremely valuable using customary

drilling and completion practices, including fracking, are private property

and are rendered essentially worthless and thus deemed “taken” by

Longmont’s fracking prohibition.

In Colorado Mining Association v. Board of County Commissioners of

Summit County, 199 P. 3d 718, 725 (Colo. 2009), the Colorado Supreme

Court made it clear that in a matter of mixed concerns, the state rule

preempts the local rule if there is any conflict between the rules stating as

follows:

“Mere overlap in subject matter is not sufficient to void a

local ordinance. However, a local regulation and a state

regulatory statute impermissibly conflict if they” contain either

express or implied conditions which are inconsistent or

irreconcilable with each other.” If a local ordinance affects a

matter of statewide or mixed concern, then the state rule

supersedes and preempts the local ordinance if there is any

conflict between the different rules. City of Northglenn v.

Ibarra, 62 P. 3d 151, 155, 163 (Colo. 2003); Webb v. City of

Blackhawk, 295 P. 3d 496 (Colo. 2013); Voss v. Lundvall Bros,

830 P.2d at 1067.

The above determination is usually made by the Court based on the

evidentiary record presented on summary judgment without an evidentiary

hearing, as in Voss v. Lundvall Bros, Town of Frederick, and Gunnison

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County v. BDS. In the present case, the determination of preemption should

be made as a matter of law. Colorado law is firmly established that oil and

gas regulation, especially including regulation over technical aspects of oil

and gas operations (such as the COGCC’s decision to allow hydraulic

fracturing on all oil and gas wells located in Colorado subject to an

operator’s compliance with the Commission’s rules, regulations, and permit

conditions) is a matter of exclusive state or mixed state or local concern. See

Voss v. Lundvall Brothers, Inc., 830 P. 2d 1061, 1068 (Colo. 1992) and Bd.

of County Commissioners v. Bowen/Edwards Associates, Inc., 830 P. 2d

1045 (Colo. 1992). Further, there is no genuine issue of material fact that an

operational conflict exists between the Longmont prohibition of hydraulic

fracturing and the rules, regulations, and policies of the COGCC, which

expressly allow hydraulic fracturing on all wells in Colorado subject to

compliance with regulatory requirements.

III. CONCLUSION

WHEREFORE, Defendant TOP Operating Company prays that the

District Court’s ruling be affirmed, declaring that Longmont ‘s fracking ban

is invalid and preempted by state law and enjoining the City of Longmont

from any further enforcement of this Resolution.

Dated this 5th day of March, 2015.

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ZARLENGO & KIMMELL, LLC

/s/ Thomas J. Kimmell

Pursuant to CRCP 121, Section 1-

26(9) a duly signed original of this

document is on file at the offices of

Zarlengo & Kimmell, PC.

______________________________

Thomas J. Kimmell, Reg. No. 9043

CERTIFICATE OF SERVICE

I hereby certify that on this 5th day of March, 2015, I served a true and

correct of the foregoing TOP OPERATING COMPANY’S AMENDED

ANSWER BRIEF via ICCES, addressed to the following:

Eugene Mei, City Attorney

Daniel E. Kramer, Assistant City Attorney

City of Longmont

Civic Center Complex

408 3rd

Avenue

Longmont, CO 80501

Phillip D. Barber, Esq.

1675 Larimer Street, Ste. 620

Denver, Colorado 80202

Russ Miller

Karen L. Spaulding

Beatty & Wozniak, P.C.

216 Sixteenth Street, Suite 1100

Denver, CO 80202-5115

Jake Matter, Assistant Attorney General

Ralph L. Carr, Colorado Judicial Center

1300 Broadway, 10th Floor

Denver, CO 80203

E-Mail: [email protected]

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Julie M. Murphy, #40683

Ralph L. Carr, Colorado Judicial Center

1300 Broadway, 10th Floor

Denver, CO 80203

E-Mail: [email protected]

Attorney for COGCC

Kevin J. Lynch (Professor and Supervising Attorney; #39873) Elizabeth Kutch (Student Attorney) Timothy O’Leary (Student Attorney) Gina Tincher (Student Attorney)

University of Denver Sturm College of Law & Environmental Law Clinic

2255 E. Evans Ave, Ste 335

Denver, CO. 80208

E-mail: [email protected]

E-Mail: [email protected]

Christopher K Boeckx

Colorado Attorney General’s Office

1300 Broadway, 10th Fl

Denver CO 80203

Fax: 720-580-6039

[email protected]

COGCC Counsel

Geoffrey T. Wilson, #11574

COLORADO MUNICIPAL LEAGUE

1144 Sherman Street

Denver, Colorado 80203

Fax: (303) 860-8175

E-mail: [email protected]

City of Boulder’s Attorney’s Name:

Office of the City Attorney

Thomas A. Carr

Address: P.O. Box 791

Boulder, CO 80306

Fax Number: (303) 441-3859

E-mail: [email protected]

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Attorney for Board of County Commissioners of County of Boulder, State of

Colorado

Jeffery P. Robbins, Reg # 26649

Goldman, Robbins & Nicholson, P.C>

679 E. 2nd

Ave., Suite C

PO Box 2270

Durango, CO 81302

(970)259-8747

[email protected]

Representative Jared Polis, Pro Se

1433 Longworth

House Office Building

Washington DC 20515

(202)225-2161

[email protected]

/s/ Anne Vanvors