December 27, 2011
Category:
Arkansas Environmental, Energy, and Water Law
Arkansas Environmental, Energy, and Water Law
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Author:
Walter G. Wright
The Osage Nation ("Osage") (federally recognized Indian tribe) had leased its mineral interests within certain acreage in Oklahoma to Spy Glass Energy Group, LLC and others. Osage filed a lawsuit against Wind Capital Group, LLC and Osage Wind, LLC (collectively "Wind") arguing that their development of wind energy project on the same acreage would unlawfully interfere with its rights to develop the Osage Mineral Estate for oil and gas activities.
Wind facilities would consist of 94 turbines, underground collection lines running between turbines into a substation, a transmission line, and associated facilities. The estimated surface footprint of the facilities, including the surface of the ground above where the collection lines would be installed, was stated to be less than 1.5% of the 8,500 or so acres that Wind had under lease.
A federal district court in
The Osage Nation, et al vs. Wind Capital Group, LLC, et al, 2011 U.S. Dist. LEXIS 146407 (N.D. Okla. Dec. 20, 2011) addressed whether:
(1) Under federal law would the wind farm interfere with the Tribe's right to use so much of the surface of the land within the Osage Mineral Estate as to be unreasonable for oil and gas development;
(2) Under state law would the wind farm unlawfully interfere with the Tribe's right to make reasonable use of the surface estate, including the right of ingress and egress therefore, for the purpose of exploring, severing, capturing and producing oil and gas.
The opinion contains an extensive discussion of both the proposed oil and gas development and the details of the wind farm operations.
The federal district court ultimately held that Osage did not prove that the wind farm would unreasonably interfere with its rights to make reasonable use of the surface estate, nor did it prove that wind would unreasonably hinder the right to use so much of the surface as to may be reasonable for oil and gas operations and marketing.
A copy of the opinion can be downloaded below.
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