Developing Federal Minerals – Due Diligence Strategies

When it comes to operating on federal lands, timing and know-how are everything. To develop federal oil and gas leases, operators need to conduct extensive due diligence to avoid permitting delays and to identify and mitigate potential litigation risks. This is particularly important for current areas of renewed focus for developing natural gas resources (e.g., Colorado, Utah, and northern New Mexico) that have not been subject to much development activity over the past eight years.

Regulatory certainty is a must for efficient business planning and allocation of capital. Unfortunately, operators are confronting an increasing array of environmental and regulatory issues at the federal level, as well as numerous legal challenges to federal lease sales that place the status of federal leases in jeopardy.