Extraction Oil & Gas pays $462,000+ after removing minerals from public land

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DENVER – Extraction Oil & Gas, Inc. has agreed today to pay or $462,000 to resolve allegations that the company drilled and operated three different oil and gas wells in Weld County, Colorado that removed minerals from federally-owned public lands without permission.

The company will pay this in addition to a $884,407 settlement from February 2020 for twelve other wells also in Weld County, Colorado that had performed similar activity.

Acting U.S. attorney Matt Kirsch said, “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing–in amounts up to the full value of the minerals they removed, not just the royalties they would have owed had they first obtained a federal lease.”    

Removing minerals without permission is considered trespassing. If a company obtains the proper lease and permit that grants them permission, it will be required to pay a percentage of royalties of the federal minerals that they remove. 

The Bureau of Land Management owns and manages the rights to the aforementioned lands.

To learn more about BLM, visit their website.

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