Justia Colorado Supreme Court Opinion Summaries

At issue in this case was whether Colorado had jurisdiction to award benefits for out-of-state work-related injuries and to impose a statutorily penalty on an employer under 8-41-204, C.R.S. (2016), when the employer was not a citizen of Colorado, and had no offices or operations in Colorado, only that the employer hired a Colorado citizen within the state. The Supreme Court held that on the facts presented here, Colorado lacked personal jurisdiction over the employer. View "Youngquist v. Miner" on Justia Law

The citizens of home-rule City of Longmont voted in favor of a moratorium on hydraulic fracturing and the storage of its waste products within city limits. Thereafter, the Colorado Oil and Gas Association (the Association), an industry organization, sued Longmont seeking a declaratory judgment invalidating, and a permanent injunction enjoining Longmont from enforcing, Article XVI. "In a lengthy and thorough written order," the district court granted these motions, ruling that the Oil and Gas Conservation Act preempted Longmont’s bans on fracking and the storage and disposal of fracking waste. Longmont and the citizen intervenors argued on appeal to the Supreme Court that: (1) the district court erred in its preemption analysis; and (2) the inalienable rights provision of the Colorado Constitution trumped any preemption analysis and required the Supreme Court to conclude that ArticleXVI superseded state law. Finding no reversible error, the Supreme Court affirmed the district court's judgment. View "City of Longmont v. Colo. Oil and Gas Ass'n" on Justia Law

The citizens of home-rule city Fort Collins voted in favor of a moratorium on hydraulic fracturing and the storage of its waste products within city limits. The Colorado Oil and Gas Association (the Association), an industry organization, sued Fort Collins and requested: (1) a declaratory judgment declaring that the Oil and Gas Conservation Act, and the rules and regulations promulgated pursuant thereto, preempted Fort Collins’s fracking moratorium; and (2) a permanent injunction enjoining the enforcement of the moratorium. The Association subsequently moved for summary judgment on its declaratory judgment claim, and Fort Collins filed a cross-motion for summary judgment, asking the district court to find that the moratorium was not preempted by state law. The Supreme Court concluded that "fracking is a matter of mixed state and local concern," Fort Collins’s fracking moratorium was subject to preemption by state law. Furthermore, the Court concluded that Fort Collins’s five-year moratorium on fracking and the storage of fracking waste operationally conflicted with the effectuation of state law. Accordingly, the Court held that the moratorium was preempted by state law and was, therefore, invalid and unenforceable. The district court’s order was affirmed, and the matter remanded for further proceedings. View "City of Fort Collins v. Colo. Oil and Gas Ass'n" on Justia Law

The issue this case presented for the Supreme Court's review centered on whether 39-29-105(1)(a) permitted a deduction for the “cost of capital” associated with natural gas transportation and processing facilities. In general terms, the cost of capital was defined as the amount of money that an investor could have earned on a different investment of similar risk. In this case, the cost of capital was the amount of money that BP America Production Company’s (“BP”) predecessors could have earned had they invested in other ventures rather than in building transportation and processing facilities. BP claimed it could deduct the cost of capital because it was a cost associated with transportation and processing activity. Respondent Colorado Department of Revenue argued that the cost of capital was not a deductible cost because it was not an actual cost. The court of appeals held that the cost of capital as not a deductible cost under the statute. BP appealed, and the Colorado Supreme Court reversed, holding that the plain language of section 39-29-102(3)(a) authorized a deduction for any transportation, manufacturing, and processing costs and that the cost of capital was a deductible cost that resulted from investment in transportation and processing facilities. The appellate court was reversed and the case remanded back to the district court for further proceedings. View "BP Am. v. Colo. Dept. of Revenue" on Justia Law

Public Service Company of Colorado applied for a tax refund from the state Department of Revenue. The company argued that it was entitled to a refund because it paid taxes when it was actually eligible for an exemption. The district court held in favor of the company, concluding that electricity was tangible personal property and that the production of electricity constituted manufacturing, thus entitling the company to the exemption (the "manufacturing exemption" under 39-26-709(1)(a)(II) C.R.S. (2013)). Upon review of the Department's argument on appeal, the Supreme Court reversed, finding that section 39-26-104(1)(d.1) applied in this case: electricity did not qualify as tangible personal property, and that the Code "contemplate[d] that 'electricity furnished and sold'" was to be taxed as a service. View "Department of Revenue v. Public Service Co." on Justia Law

The issue before the Supreme Court in this case called for a determination of whether section 15-11-1106(2) C.R.S. (2013) required a court to reform a revocable option that was negotiated as part of a commercial contract entered into before the effective date of the statutory Rule Against Perpetuities Act. In Colorado, the Act superseded the common law rule for nonvested property interests created after May 31, 1991. The common rule still applied to nonvested property interests created prior to that date. Under the Act, all donative transfers after that date were valid so long as the property interest created vested or terminated within ninety years of its creation. With regard to the specifics of this case, the trial court concluded that the revocable option at issue violated the common law rule against perpetuities. The Court then inserted a savings clause pursuant to statute, to prevent the option from being voided by the common law rule, and ruled that the option holder was entitled to specific performance of the reformed option. The court of appeals affirmed. The Supreme Court concluded, however, that the option did not violate the common law rule, and therefore no reformation by the trial court was necessary. View "Atlantic Richfield Co. v. Whiting Oil and Gas Corp." on Justia Law

This case was an appeal of a final water court order which voided a rule promulgated by the Office of the State Engineer regarding nontributary ground water extracted in the course of coalbed methane (CBM) production and other oil and gas development. The final rules were challenged by owners of vested water rights and citizen groups whose members owned vested water rights. After extensive briefing by the parties, the water court upheld the Final Rules in their entirety except for the "Fruitland Rule," which it invalidated. The water court held that although H.B. 1303 granted authority to the State Engineer to promulgate the Fruitland Rule, the Tribal Rule essentially divested the State Engineer of that authority. The water court also found that the State Engineer had issued an improper "advisory" rule, and thus could not promulgate the Fruitland Rule unless he first obtained a judicial determination of his authority over nontributary ground water underlying the Reservation. The State Engineer, the Tribe, and several Intervenors appealed the water court's decision. Upon review, the Supreme Court reversed, concluding that the water court erred in invalidating the Fruitland Rule based on the Tribal Rule. The Court concluded the Tribal Rule did not divest the State Engineer of this authority: it stated on its face that the Final Rules themselves do not form the basis of or "establish" the State Engineer's authority to administer the nontributary ground water within Reservation boundaries. Because the Tribal Rule did not divest the State Engineer of his authority, the water court erred in invalidating the Fruitland Rule on that ground. Furthermore, the water court also erred in labeling the Fruitland Rule an "advisory" rule and in requiring the State Engineer to obtain a judicial determination that he had authority to administer nontributary ground water within the boundaries of the Reservation. Accordingly, the Supreme Court reversed the water court’s invalidation of the Fruitland Rule and remanded the case for further proceedings. View "Dick Wolfe v. Pawnee Well Users, Inc." on Justia Law

The Supreme Court held that CRCP 26(b) requires a trial court take an active role managing discovery on questions of scope. The trial court must determine the appropriate scope of discovery in light of the reasonable needs of the case and tailor discovery to those needs. To resolve a dispute regarding the proper scope of discovery, the trial court should, at a minimum, consider the cost–benefit and proportionality factors set forth in CRCP 26(b)(2)(F). The Court also held that title opinions may contain privileged attorney–client communications if the parameters of that doctrine are met. View "In re DCP Midstream, LLP v. Anadarko Petroleum Corporation" on Justia Law

Through cold calls, defendants sold plaintiffs shares in oil and gas joint ventures in Texas, Alabama and Mississippi. Plaintiffs all signed agreements with forum selection clauses stating that courts in Dallas County, Texas would have exclusive jurisdiction should any disputes arising from the agreements arise. The ventures lost money, and plaintiffs sued in Colorado, raising violations of the Colorado Securities Act (CSA) and various other common-law claims. Defendants moved to dismiss all claims citing the forum selection clause. Plaintiffs argued on appeal that the clauses were void because they were unenforceable on public policy grounds. Upon review, the Supreme Court held that the forum selection clauses were valid, and that they requires the parties to litigate their claims in Texas. View "Cagle v. Mathers Family Trust" on Justia Law

Grand Valley Citizens' Alliance filed a complaint alleging that it was entitled to a hearing on an application for permit to drill pursuant to section 34-60-108(7), C.R.S. (2011), of the Oil and Gas Conservation Act. The district court dismissed the complaint. The court of appeals reversed the district court, holding that under subsection 108(7), Grand Valley Citizens were entitled to a hearing because it had a filed a petition on a matter within the jurisdiction of the Commission. After its review, the Supreme Court reversed the court of appeals judgment, holding that section 34-60-108(7) requires a hearing only for rules, regulations, and orders. Permits are governed by section 34-60-106(1)(f), which grants the Oil and Gas Commission broad authority to promulgate rules governing the permitting process, including the authority to determine who may request a hearing. View "Colorado Oil & Gas Conservation Commission" on Justia Law