HERE IS A DRAFT LETTER THAT WILL BE SENT TO THE COLORADO OIL AND GAS CONSERVATION COMMISSION ON MONDAY, IF THE EL PASO COUNTY COMMISSIONERS APPROVE IT.

El Paso County is pleased that the Colorado Oil and Gas Conservation Commission is pursuing rulemaking regarding the public disclosure of chemicals associated with hydraulic fracturing. We believe that greater transparency related to these matters will be of benefit to the general public, landowners, water users and providers, and, ultimately, oil and gas operators because it will build a greater degree of trust in our
community.
El Paso County is in favor of the creation of a chemical disclosure registry. However, rather than having this registry posted only on a trade association website
(www.FracFocus.org) as is required in the proposed rule, we believe it is necessary to support transparency, objectivity, and public confidence by posting the chemical
disclosure registry on the COGCC website from the start, not just if the trade
association website proves inadequate in the future. If the disclosures are to be
pursuant to COGCC rules and pursuant to COGCC permits, the disclosures should be
available from the COGCC website so that it is clear that they are public records,
subject to the Colorado Open Records Act. The “Terms of Use” for the FracFocus.org
website limit the purposes for which the information on the site can be used and also state that the Terms of Use may be changed, or that the site may be discontinued, without notice. The FracFocus.org website also permits information to be removed from the site if, at the sole discretion of FracFocus.org or its agents, any information is deemed “harmful, objectionable, or inaccurate.” This is not the appropriate repository for public records and, in fact, may violate the preservation requirements for public
records.
We agree with the COGCC and oil and gas operators there is value in protecting
legitimate trade secrets and we support the creation of regulations which create trade secret protection. However, it is important that there are standards for what qualifies as a trade secret. Operators must be required to provide a justification or rationale in support of a claim of a trade secret, and the regulations must provide for discretionary review of the validity of a trade secret claim by the COGCC.
In particular, we believe that the individual constituents of a proprietary product should be available to the public but that the proportions of the ingredients are a legitimate trade secret. This is no different than products which are intended for human consumption. The individual constituents of Coke, Pepsi, or any other food product are on the product’s label but the actual recipe is a highly protected trade secret. Because the main concern regarding hydraulic fracturing chemicals is that they may make their way into ground water and be consumed by humans it is logical to take guidance from the disclosure requirements of products intended for human consumption.
Draft Rule 205A(B)(4) states that vendors are not responsible for inaccuracies in
information provided by third party manufacturers, service providers are not
responsible for inaccuracies provided by vendors, and operators are not responsible for inaccuracies provided by vendors or service providers. This waiver of liability is unreasonable and unacceptable. Operators are the ones who receive permits from the COGCC and/or local governments and they should be held responsible for the errors or inaccuracies of their agents. Because operators have contractual privity with service providers and vendors etc. they are in the best position to know who these other entities are and require accuracy of disclosure in their contracts with vendors and service providers. Surface owners, neighbors, local governments, and the COGCC are only able to seek redress from the permitted entity, i.e. the operator. This same concern also applies to Draft Rule 205A(B)(5)(C) (disclosures not required if not disclosed to operator by vendor, manufacturer, or service provider).
This is of particular significance because few operators actually perform hydraulic
fracturing themselves. Almost always it is a contractor which performs the process and provides the chemicals used. The only alternative to prevent a very significant
loophole in the chemical disclosure requirements and significant decrease in public
confidence would be to initiate legislation or rulemaking which would license or permit hydraulic fracturing contractors and hold them responsible for the disclosure of chemicals used in the process.
El Paso County supports the proposed requirements that operators provide 48 hours
advance notice of intent to conduct hydraulic fracturing treatment to the Commission
and that landowner notices shall include the COGCC’s information sheet on hydraulic
fracturing treatments. COGCC has stated that the purpose of the revisions to
landowner notices is, in part, to “offer instruction in the collection of baseline water samples if the surface owner is concerned about potential impacts from hydraulic fracturing.” Because it should be important to operators and the COGCC to have concern about potential impacts from hydraulic fracturing as well, we think it should be the operator’s duty to collect baseline water samples in all cases. Landowners may not be knowledgeable about the proper protocols for collecting water samples. Operator employees or contractors are familiar with the proper procedures for collecting accurate baseline water samples.
While hydraulic fracturing fluids are injected thousands of feet below aquifers
containing drinking water, the public deserves reassurance that if and when, and for
whatever reason, these fluids are inadvertently released into the environment in a
manner that causes contamination of soils at or near the surface and/or of drinking
water resources, those responsible for the contamination are held responsible. To that end, El Paso County requests that the proposed COGCC rules be amended to require that all hydraulic fracturing fluids include an inert marker that will enable the fluids to be traced to the source of any contamination.
Thank you for the opportunity to comment on the proposed rules and we look forward
to revisions in the spirit of greater transparency and accountability.
Sincerely,
THE BOARD COUNTY COMMISSIONERS,
EL PASO COUNTY, COLORADO

Under Colorado Springs’ new strong mayor system, a new mayor may fire any and all of the city department heads as he/she pleases. It would be disconcerting at best and probably bad policy at worst for any new mayor to get rid of all the department heads on the first day.

But here’s the deal: No citizen blames a new mayor for any department head who was there before the mayor. But after a while, if department heads remain in their jobs, they become the mayor’s people. When does this occur? Well, we’re all new to this but I would suggest it occurs when a mayor submits his first budget, and everyone from the top down must be on board with it.

Mayor Steve Bach is about to preside over his first city budget, and perhaps it was time for him to make a move on a department head with whom he had some misgivings. Maybe Bach’s move against Myers had as much to do with that as anything else.

Anyhow, this move was foreshadowed in my column last week:

http://www.gazette.com/news/year-125472-colorado-police.html

Would you like to learn you rules Niobrara? Here’s one clue — it isn’t anyone you can vote for, no one you can recall from office. Check out this web site for some details about the energy companies doing business in Niobrara.

HERE IS AN ARTICLE FROM THE OIL AND GAS JOURNAL ABOUT THE NIOBRARA SHALE FORMATION:

Is the Niobrara the next Eagle Ford?

The ‘surprise factor’ of the Niobrara may lure investors away from ‘mature’ Bakken

Investors will continue to abandon natural gas sensitive areas and refocus on oil, specifically the Niobrara, noted a September 29 report from Jefferies & Co. Inc.

Because the Niobrara is in its infancy, Jefferies called the play “ripe for investing” as “the market likes room for surprises.” While the company points out the Bakken as the “premier shale oil play,” it is “more mature and hence has less potential for surprises.”

The company points out, however, that the Niobrara “is not well understood and data has been spotty.” On the other hand, the Bakken is “verifiably economic with growth potential in Montana and extensional counties to the south of North Dakota.”

Colorado Springs School District 11 Adult and Family Education
Announces Fall Classes
Fall Classes 2011
Registration for Adult Basic Education (ABE), GED Preparation, Adult English Language, and Family Literacy classes will be held on:
August 9 at 6:00 p.m.
August 10 at 9:00 a.m.
August 16 at 9:00 a.m.
August 16 at 6:00 p.m.
Each registration session will take approximately 3 hours. Tuition cost is $65 per semester; there is no tuition cost for students under 21 years of age. The cost for ABE and GED Prep books is $35. Adult and Family Education is located in the Irving Educational Center, 1702 N. Murray Blvd., on Murray between Palmer Park Blvd. and Constitution Ave.
For more ABE, GED, or Adult English class information,
please call 328-3000 after August 1, 2011.
****************************************************
Family Literacy Classes for ESL and GED Learners: For adults with children ages: 6 weeks old – 5th grade Must live in Sch

ool District 11 Parent and child must both participate.
Parents may attend ESL, ABE, or GED classes.
Family Literacy Tuition Cost: Registration fee: none Class cost: none
Family Literacy Classes are offered Monday-Thursday, mornings and evenings.
For Family Literacy information call: 328-3028 or 328-3023 after August 1, 2011.

Catholic Charities of Southern Colorado will begin offering ESL classes at Our Lady of Guadalupe and St. Patrick’s Sept. 7. To register or to sign up as a volunteer, call 719-636-2345.

And here is another program:

Let’s be honest. Although Colorado Springs voters repeatedly have supported medicinal marijuana, there are quite a few officials who don’t like it and they’ve tried to undermine the constitutional right created more than a decade ago every chance they get.

Members of the Colorado Springs Planning Commission tried to enact rules that would have eliminated many of the stores. The rules were rejected. Now the city clerk’s office is proposing onerous fees for the operations — much higher fees than are imposed on drug stores or liquor stores in town.  We’re fresh from a municipal election in which many of the successful candidates talked about creating a business-friendly atmosphere in the city.

Here are the draft rules that will be presented to the City Council on Tuesday:

MEDICAL MARIJUANA RULES AND REGULATIONS
FOR THE CITY OF COLORADO SPRINGS
PART 1 – General Rules
Section 1 – Applicability
Rule 1.1.00 Applicability of Rules
Section 2 – Authority and Jurisdiction
Rule 1.2.00 General
Rule 1.2.01 City Clerk
Rule 1.2.02 Jurisdiction of Authority
Section 3 – Hearings
Rule 1.3.00 Conduct of Hearings
Rule 1.3.01 Final Agency Action
Section 4 – Inspections
Rule 1.4.00 Inspection of Books and Records
Rule 1.4.01 Inspection of Licensed Premise
PART 2 – Application and Proceedings (Non-Disciplinary)
Section 1 – Applications and Forms
Rule 2.1.00 Applications
Rule 2.1.01 Forms and Fees
Rule 2.1.02 Application Requirements for Medical Marijuana Business License
Rule 2.1.03 Application Review and Findings for Medical Marijuana Business License
Rule 2.1.04 Unlawful Financial Interest, Assistance, Owner-Manager
Rule 2.1.05 Transfer of Ownership and Changes in Licensed Entities
Rule 2.1.06 Changing, Altering or Modifying Licensed Premises
Rule 2.1.07 Change of Trade Name
Rule 2.1.08 Change of Location
Rule 2.1.09 License Renewal
PART 3 – Disciplinary Proceedings: Rules Related to Suspension, Revocation
and Non-Renewals
Section 1 – General Provisions Applicable to All Disciplinary Proceedings
Rule 3.1.00 Notice
Rule 3.1.01 Discovery and Exhibits
Rule 3.1.02 Hearings
Rule 3.1.03 Decision
Rule 3.1.04 Penalty
Rule 3.1.05 Summary Suspensions
Rule 3.1.06 Disposition of Unauthorized Marijuana or Marijuana-Infused Products and Related Materials
Rule 3.1.07 Renewal Hearings
Rule 3.1.08 Consequence of Inactivity
Medical Marijuana Rules and Regulations
6/21/2011 Page 2
MEDICAL MARIJUANA RULES AND REGULATIONS
FOR THE CITY OF COLORADO SPRINGS
PART 1 – General Rules
Section 1 – Applicability
Rule 1.1.00 Applicability of Rules
In addition to any other rules or laws which may be applicable, these rules shall govern all Medical Marijuana business license applications, suspension or revocation proceedings, or license renewals of any kind whatsoever which have been filed with the City Clerk as the Local Licensing Authority (“Authority’) for the City of Colorado Springs.
Section 2 – Authority and Jurisdiction
Rule 1.2.00 General
The Local Licensing Authority (or the “Authority”) of the City of Colorado Springs for Medical Marijuana business licenses as authorized by Colorado Revised Statutes, the rules and regulations of the state licensing authority, the Code of the City of Colorado Springs and by these rules and regulations, shall possess all powers given to local licensing authorities by the provisions of state statutes, City Code and state and local rules and regulations.
Rule 1.2.01 City Clerk
The City Clerk shall be the Local Licensing Authority for the City of Colorado Springs, except as otherwise provided by ordinance or by these rules. The City Clerk shall function as the Licensing Officer and the Deputy City Clerk shall function as the Deputy Licensing Officer.
Rule 1.2.02 Jurisdiction of Authority
A. The Local Licensing Authority or its designee shall have jurisdiction over all Medical Marijuana business licensing matters related to licensed premises within the City of Colorado Springs.
B. The jurisdiction and authority of the Local Licensing Authority is delegated to the following designees:
1. License Enforcement Officer – The City Clerk’s designee assigned to review and make recommendations to the Deputy Licensing Officer regarding Medical Marijuana business applications and renewals. The License Enforcement Officer shall be responsible for coordinating the issuance of show cause documents in the event of an alleged license violation. The License Enforcement Officer shall assist the Authority by receiving all applications,
Medical Marijuana Rules and Regulations
6/21/2011 Page 3
conducting investigations, coordinating with other City departments and state agencies as required, and by scheduling public hearings.
2. Deputy Licensing Officer –The Deputy City Clerk or the City Clerk’s designee responsible for reviewing, granting or denying Medical Marijuana business license applications. The Deputy Licensing Officer shall also sign show cause documents on a finding of probable cause that there has been a business license violation.
3. Hearing Officer – An independent hearing officer appointed by the City Clerk and acting on behalf of the Local Licensing Authority who conducts hearings on appeals from the Deputy Licensing Officer’s decisions, and on orders to show cause for alleged license violations.
Section 3 – Hearings
Rule 1.3.00 Conduct of Hearings
A The Local Licensing Authority shall conduct public hearings on appeals of the denial of a license and suspensions or revocations of a Medical Marijuana business license, including hearings to temporarily or summarily suspend a Medical Marijuana business license.
B. All hearings shall be open to the public. Any hearing may be adjourned and reconvened at a time and place determined by the Hearing Officer.
C. Public notice of all hearings shall be posted pursuant to the Colorado Springs City Charter § 3-60(d). Licensees issued an order to show cause shall be given at least ten (10) days prior notice of the time, place, and nature of the hearing. Notice shall be served personally or by mailing by first-class mail to the last address furnished to the Hearing Officer by the applicant or licensee to be notified. Appeals from the Deputy Licensing Officer’s decision must be presented in writing to the City Clerk’s Office within ten (10) of the decision. Failure to appeal the Deputy Licensing Officer’s decision in accord with this section shall be deemed a waiver of the right to appeal pursuant to CRCP 106 by virtue of a failure to exhaust administrative remedies.
D. If an applicant, licensee, or the City requests postponement of a hearing, the Hearing Officer shall have the discretion to continue the hearing as it deems fit.
E. At hearings on appeal of denial of a license, the burden of proof shall be on the appellant to prove, by a preponderance of the evidence, that the Deputy Licensing Officer exceeded its jurisdiction or abused its discretion based on evidence in the record before the Deputy Licensing officer. At suspension or revocation, the City shall have the burden to establish that a violation occurred by a preponderance of the evidence, as provided in Rule 3.1.02.
F. Evidence and requirements of proof shall conform, to the extent practicable, with those in civil non-jury cases in the district courts. Evidence not admissible under those rules may be admitted if the evidence possesses probative value commonly accepted
Medical Marijuana Rules and Regulations
6/21/2011 Page 4
by reasonable and prudent persons in the conduct of their affairs. Objections to evidentiary offers may be made and shall be noted in the record. Incompetent and unduly repetitious evidence may be excluded. Documentary evidence may be received in the form of a copy, but, upon request, a party shall be given the opportunity to compare the copy with the original. The Hearing Officer may take notice of general, technical, or scientific facts within the Hearing Officer’s knowledge, but only if the fact so noticed is specified in the record or is brought to the attention of the parties before final decision and every party is afforded an opportunity to dispute the fact noticed.
G. All testimonial evidence, whether provided in person or by affidavit, must be sworn. The Hearing Officer shall have the power to issue subpoenas, to compel testimony or present documents, records or any other tangible evidence. Questions concerning the materiality, relevancy or competency of witnesses to testify on behalf of or in opposition to a licensee or applicant will be determined as questions arise.
H. Any applicant, licensee, or person testifying before the Hearing Officer may offer exhibits or demonstrative evidence to the Licensing Authority for its consideration. The Hearing Officer shall have the discretion to accept or reject the offer and to weigh the exhibit or demonstrative evidence as it deems appropriate. All exhibits in support of or opposition to an application for a license shall be submitted to the City Clerk by twelve o’clock noon, three (3) days prior to the hearing date.
I. The Hearing Officer may establish reasonable time limits for presentations, which shall apply to both the proponents and opponents of an item. The Hearing Officer may request representatives to speak for an entire group or portions of a group, but shall not require such representation against the wishes of the group involved. Whenever necessary, the Hearing Officer shall direct that remarks be germane to the item. Further, the Hearing Officer has the right to limit the presentation of evidence tending to be repetitious, irrelevant, speculative or conjectural.
J. Any person having business before the Hearing Officer shall provide a qualified interpreter if necessary to participate in the hearing subject to the following:
Every person acting as an interpreter shall be administered an oath or affirmation that the person will make a true translation; and
1. Every person acting as an interpreter shall be required to be qualified as an interpreter and accepted by the Hearing Officer. A person may be qualified by virtue of their knowledge, skill, experience, training, or education.
2. In determining whether an individual is qualified to act as an interpreter in any proceeding before the Hearing Officer, the Hearing Officer may consider, but is not limited to:
a. Whether the interpreter is a certified Court interpreter by the State of Colorado Office of the State Court Administrator or the Federal Courts;
b. Any special training or education received by the interpreter in
Medical Marijuana Rules and Regulations
6/21/2011 Page 5
providing interpretation and/or translation;
c. The interpreter’s means of knowledge regarding the languages translated from and translated to;
d. Number of times that the interpreter has performed interpretation/translation services and the type of proceedings where these services were rendered; and
e. The relationship of the interpreter to the individual who will be using the interpreter’s service to determine whether any bias, or other motive would preclude the interpreter’s ability to provide a true, literal and complete bilateral translation of the entire proceeding.
K. If an appellant fails to appear at a scheduled appeal hearing, the application will be deemed abandoned and will be denied. If a licensee receives notice pursuant to Rule 3.1.00 and fails to appear at a scheduled disciplinary hearing pursuant to Part 3 – Disciplinary Proceedings: Rules Related to Suspension, Revocation and Non-Renewals, the hearing shall go forward in the licensee’s absence.
Rule 1.3.01 Final Agency Action
The decision of the Hearing Officer shall constitute final agency action of the Local Licensing Authority for all purposes under the Colorado Revised Statutes, the rules and regulations of the state licensing authority, the Code of the City of Colorado Springs and these rules and regulations. Any appeal of the decision of the Hearing Officer shall be to the district courts of Colorado in accord with the Colorado Rules of Civil Procedure as now existing or later amended. There shall be no stay of execution of the Licensing Officer’s decision pending decision by the District Court, except by court order. Failure to appeal the decision of the Hearing Officer shall be deemed to be a waiver of the right of appeal.
Section 4 – Inspections
Rule 1.4.00 Inspection of Books and Records
Each licensee shall keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which shall be open at all times during business hours for the inspection and examination of the Local Licensing Authority, its designees, or the Colorado Springs Police Department. Each licensee shall retain all books and records necessary to show fully the business transactions of the licensee for a period of the current tax year and the three (3) immediately preceding tax years. The Local Licensing Authority may require any licensee to furnish information it considers necessary for the proper administration of the state code or the Code of the City of Colorado Springs 2001, as amended. The Local Licensing Authority may require an audit to be made of the books of account and records of the licensee, on occasion as it deems necessary, by an auditor to be selected by the Local Licensing Authority who shall likewise have access to all books and records of the licensee, and the expense of the audit shall be paid by the licensee.
Medical Marijuana Rules and Regulations
6/21/2011 Page 6
Rule 1.4.01 Inspection of Licensed Premise
The licensed premises, including any places of storage where Medical Marijuana is grown, stored, cultivated, sold, or dispensed, shall be open and made immediately available for inspection by the Local Licensing Authority and the Colorado Springs Police Department during all business hours and other times of apparent activity, for the purpose of inspection or investigation. For examination of any inventory or books and records required to be kept by the licensees, access shall be required during business hours. Where any part of the licensed premises consists of a locked area, upon demand to the licensee, the area shall be made available for inspection without delay, and, upon request by authorized representatives of the Local Licensing Authority, the licensee shall open the area for inspection.
PART 2 – Application and Proceedings (Non-Disciplinary)
Section 1 – Applications and Forms
Rule 2.1.00 Applications
A. All applications for a Medical Marijuana business license, including but not limited to new license applications, renewal applications, applications for change of location, applications for change of corporate structure, applications for transfer of ownership, applications for manager registration, or applications for change of trade name, as well as applications for expansion, alteration or modification of the premises, shall be filed with the Local Licensing Authority on approved forms, together with all fees and documents required by the City and State, with the exception of State Associate license material, which the applicant must forward directly to the State Licensing Authority.
B. A request for a change in the class of license from that presently held by a licensee shall be considered an application for a new license.
Rule 2.1.01 Forms and Fees
The following shall be filed:
A. State Medical Marijuana business license application forms, which shall be filled out and completed in all material details, with applicable documentation as required. Incomplete application forms shall be rejected.
B. The Local Licensing Authority application forms, as provided by the City, which shall be filled out and completed in all material details, with applicable documentation as required. Incomplete application forms shall be rejected.
C. Local application and license fees, payable by check or money order to the City of Colorado Springs, as established by separate City Council Resolution. Application fees will not be refunded upon withdrawal or denial of an application or license. License fees may be refunded only if the application or subsequent licensing period had not
Medical Marijuana Rules and Regulations
6/21/2011 Page 7
been approved or effective on the date of request. The application fee is valid for all license types submitted concurrently for a single applicant. Subsequent applications for additional locations require an additional application fee.
D. A State application fee payable to the Colorado Department of Revenue shall be filed in the form of a certified check or money order. The amount shall be provided by C.R.S. 12-43.3, Part 5, as amended.
E. A State license fee payable to the Colorado Department or Revenue shall be filed in the form of a certified check or money order. The amount shall be provided by C.R.S. 12-43.3, Part 5, as amended.
Rule 2.1.02 Application Requirements for Medical Marijuana Business License
A. Every application for a license to operate a Medical Marijuana business shall be legible, be filed in triplicate and shall include but not be limited to the following:
1. The full name and any other names under which each owner is or has been known, the address and telephone number, date of birth, and social security number of each owner, principal, officer, director, member, and registered agent and/or managing agent for the applicant;
2. The full name and any other names under which the managing owner, registered agent or managing agent is or has been known, the residence address, contact telephone number, date of birth and social security number of the managing owner, registered agent and/or managing agent;
3. The name under which the applicant intends to do business, the address of the local principal place of business and any optional premises;
4. A description of the specific types of services to be rendered;
5. An Applicant Interview Form and one classifiable set of fingerprints for each owner and managing agent;
6. The residence address of each owner, registered agent and managing agent for the five (5) years prior to the date of the application;
7. Statement containing the date, place and disposition of any criminal history of any owner and registered agent and/or managing agent of the applicant;
Medical Marijuana Rules and Regulations
6/21/2011 Page 8
8. A statement containing information relating to the denial, suspension or revocation of any business license held by any owner and registered agent and/or managing agent of the applicant, whether in this state or any other state;
9. A release statement signed by the applicant, each owner, principal, officer, director, member, and registered agent and/or managing agent for the applicant allowing the City to check and review all known criminal and financial records at any time;
10. A professionally drawn 8½” x 11” floor plan diagram, drawn to a specified, commonly used scale (e.g. 1” = 20’, ¼” = 1’) of the Medical Marijuana premises showing the uses and functions within the premises, including the dimensions of the rooms and their primary functional use, and a depiction of where any services other than the dispensing of Medical Marijuana are proposed to occur (such as offices, bathrooms, storage areas, waiting areas and hallways).; and
11. If the applicant is not the owner of the proposed location of the Medical Marijuana business, a notarized statement from the owner of the property authorizing the submission of the application pursuant to City Code;
12. A copy of the deed, lease, contract or other document governing the terms and conditions of occupancy of the premises licensed or proposed to be licensed reflecting the ownership and right to possess the property that is the subject of the Medical Marijuana business license;
13. A statement of the applicant’s personal, financial and management associations and the interests of other persons in the Medical Marijuana business and a statement of the business backgrounds of each owner, principal, officer, director, member, and registered agent and/or managing agent for the applicant with applicable documentation;
14. An acknowledgement and consent that a background investigation will be conducted;
15. Evidence of a City of Colorado Springs Sales Tax License, as applicable; Someone might want to double check with Sales Tax, but I thought there was at least one class of business license that did not require a sales tax license.
16. A listing of the number of employees, contractors, and managers;
17. Supporting documents that ensure that the Medical Marijuana business will operate in a manner consistent with State Law and City Code and any other documents required by the Local Licensing Authority.
18. Suitable additional evidence of citizenship, residence, and good character and reputation.
Medical Marijuana Rules and Regulations
6/21/2011 Page 9
19. Five (5) years employment history of each owner, principal, officer, director, member, and registered agent and/or managing agent for the applicant.
B. An application for an original, renewal, or optional premises Medical Marijuana business license shall be accompanied by:
1. The fees established by the City;
2. If applicable, a trade name registration, if any, and a certificate of good standing from the Colorado Secretary of State;
3. Upon application for the initial license, a statement of the work history for the last ten (10) years of each owner/principal/managing agent; and
4. A release statement signed by the applicant, owner(s), principal(s) and managing agent allowing the City to check annually for any pertinent criminal history.
C. Burden of Proof: The applicant shall have the burden to establish that the applicant has met all the requirements of the state laws and local ordinances governing the particular application by a preponderance of the evidence.
Rule 2.1.03 Application Review and Findings for Medical Marijuana Business License
The License Enforcement Officer shall gather evidence as required by State and local law and ordinance. The investigation shall consider the following matters:
A. Whether it satisfactorily appears that the applicant or licensee is or will be entitled to possession of the premises for which application is made under a lease, rental agreement, or other arrangement for possession of the premises, or by ownership;
B. Whether the premises sought to be licensed is in compliance with the zoning, fire, building and other applicable laws of the City of Colorado Springs;
C. Whether the building containing the licensed premises is located more than four hundred feet (400′) from any K-12 school, alcohol or drug treatment facility or residential child care facility.
D. Whether the applicant or licensee has submitted false applications, made willful misrepresentations and/or committed fraudulent acts;
E. Whether the applicant or licensee has a criminal history involving crimes of moral turpitude. By way of example, crimes of moral turpitude shall include, but not be limited
Medical Marijuana Rules and Regulations
6/21/2011 Page 10
to: murder, burglary, robbery, arson, kidnapping, sexual assault, illegal drug or narcotics convictions;
F. Whether the applicant or licensee has had previous Medical Marijuana business licenses denied, suspended or revoked as a result of violations of law;
G. Whether the applicant or licensee has been found to be delinquent in the payment of any state or local taxes, and whether record of the tax delinquency has been filed in a court having jurisdiction or has been made a public record by some other lawful means;
H. Whether the applicant or licensee has committed violations of law resulting in suspension, revocation or denial of any other government granted business permit, clearance, or license. For purpose of this section, the suspension or revocation of a state-issued driver’s license shall not be considered;
I. When making a determination as to the character, record or reputation of a licensee or applicant, the License Enforcement Officer shall consider evidence of rehabilitation. Evidence of rehabilitation may include, but not be limited to, evidence of no criminal history, education achievements, financial solvency, community standing, lack of additional arrests or convictions, or the lack of parole or probation violations since the last conviction.
Rule 2.1.04 Unlawful Financial Interest, Assistance, Owner-Manager
A. Each license must be held by the owner of the licensed Medical Marijuana business. “Owner” means the person or persons whose proprietary interest is such that they bear risk of loss other than as an insurer, and have opportunity to gain profit from the operation or sale of the establishment.
In determining who is the owner, elements considered, in addition to risk of loss and opportunity for profit, include: (1) possession; (2) who controls the license; (3) who guarantees the establishment’s debts or production levels; (4) who is beneficiary under the establishment’s insurance policies; and (5) who acknowledges liability for the business’ federal, state, or local taxes.
B. Owners may hire managers, and managers may be compensated on the basis of profits made, gross or net. A license may not be held in the name of the manager.
C. A spouse of a licensee may hold a license in his or her own right if he or she is the owner of the separately licensed Medical Marijuana business, regardless of whether the spouses file separate or joint income tax returns.
D. A partnership interest, limited or general, a joint venture interest, ownership of a share or shares in a corporation or a limited liability company which operates a Medical Marijuana business, or having a secured interest in furniture, fixtures, equipment or inventory of a Medical Marijuana business constitutes ownership and a direct financial
Medical Marijuana Rules and Regulations
6/21/2011 Page 11
interest. Each individual having these types of ownership or direct financial interests must obtain and hold the appropriate license.
E. Any person who guarantees production levels, yields, quantities produced or any other obligations of the licensee or its operation shall be deemed to have a financial interest.
Rule 2.1.05 Transfer of Ownership and Changes in Licensed Entities
A. Corporations and Limited Liability Companies
1. If the applicant for any license is a corporation or limited liability company, it shall submit with the application the names, addresses, the names and addresses of any managers, a copy of its articles of incorporation or articles of organization, and evidence of its qualification to do business within this State. In addition, each applicant shall submit names, addresses and background forms for all persons owning any of the outstanding or issued capital stock, or of any person holding a membership interest of ten percent (10%) or greater.
2. Any transfer of capital stock or any change in principal officers or directors of any corporation holding a license under the provisions of the Colorado Medical Marijuana Code shall be reported at least thirty (30) days prior to the transfer or change. With the report, the licensee shall submit names, addresses, and background forms for any new officer, director, or stockholder acquiring any outstanding capital stock.
3. Any transfer of membership interest or any change in managers of any limited liability company holding a license shall be reported at lease thirty (30) days prior to the transfer or change. With the report, the licensee shall submit names, addresses and background forms for any new manager, or member acquiring a membership interest.
B. Partnerships
1. If the applicant for any license is a general partnership, limited partnership, limited liability partnership or limited liability limited partnership, the applicant shall submit names, addresses and background forms for all of its partners and a copy of its partnership agreement;
2. Any transfer of partnership interest or any change in general or managing partners of any partnership holding a license shall be reported at least thirty (30) days prior to the transfer of change. With the report, the licensee shall submit the names, addresses and background forms for any new partner, or any other partner acquiring a partnership interest.
C. Entity Conversions
1. Any licensee that qualifies for an entity conversion shall not be required to file a transfer of ownership application upon statutory conversion, but shall submit a
Medical Marijuana Rules and Regulations
6/21/2011 Page 12
report containing suitable evidence of its intent to convert at least thirty (30) days prior to the conversion. Evidence required shall include, but not be limited to, any conversion documents or agreements for conversion at least ten (10) days prior to the date of recognition of conversion by the Colorado Secretary of State. In addition, at least thirty (30) days prior to the date of the conversion, the licensee shall submit names, addresses and background forms or any new officers, directors, managers, general or managing partners, and for all persons having an ownership interest of ten percent (10%) or greater.
All reports required by this rule shall be on forms supplied by the Local Licensing Authority or the State of Colorado.
C. No application for a transfer of ownership may be received or acted upon by either the State or Local Licensing Authority if the transferring licensee has surrendered its license or had it canceled or revoked by either Authority prior to submission of the transfer application. In cases where surrender, cancellation or revocation has occurred prior to the submission of a transfer of ownership application, the license applicant shall follow the procedures for a new license application pursuant to these Rules and Regulations.
Rule 2.1.06 Changing, Altering or Modifying Licensed Premises
A. The licensee shall make no physical change, alteration or modification of the premises which materially or substantially alters the premises or the usage of the premises from the plans and specifications submitted at the time of obtaining the license, or as defined by these Rules, without prior written consent from the Local Licensing Authority as set forth in this Rule. For purposes of this Rule, physical changes, alterations or modifications of the premises, or in the usage of the premises requiring prior written consent, shall include, but not be limited to, the following:
1. Any increase or decrease in the total size or capacity of the licensed premises, whether the increase or decrease be to restricted or unrestricted areas.
2. The sealing off, creation of or relocation of a common entryway, doorway, passage or other means of public ingress and/or egress that permits access to the licensed premises from or between public streets or thoroughfares, adjacent or abutting buildings, rooms or premises.
3. Any material change in the interior of the licensed premises that would affect the basic character of the premises or the physical structure that existed in the plan on file with the latest prior application. The foregoing shall not apply to painting and redecorating the licensed premises; the installation or replacement of fixtures or equipment or plumbing, refrigeration, air conditioning or heating fixtures and equipment; the lowering of ceilings; the installation and replacement of floor coverings; the replacement of furniture and equipment, and other similar changes.
Medical Marijuana Rules and Regulations
6/21/2011 Page 13
In making its decision with respect to any proposed change, alteration, expansion or modification the Local Licensing Authority must consider whether the licensed premises, as changed, altered, expanded or modified, will meet all of the pertinent requirements of applicable State and City law.
Rule 2.1.07 Change of Trade Name
No licensee shall change the name or trade name of the licensed business without submitting completed and approved form(s) with required fee(s) to the Local Licensing Authority at least ten (10) days prior to the change.
Rule 2.1.08 Change of Location
A. Before the location of a license is changed, the licensee shall submit an application on forms provided by the State Licensing Authority in triplicate to the City Clerk for the change of location, accompanied by the required application fee(s).
B. All applications for a change in location shall be filed with the City Clerk and shall be subject to Part 2 of these Rules of Procedure, except that the character of the applicant shall not be considered.
C. The Authority shall not authorize a change of location before thirty (30) days from the date the application has been filed.
Rule 2.1.09 License Renewal
A. All applications for renewal of a Medical Marijuana Business License shall be on forms provided by the State Licensing Authority, and must be submitted in duplicate to the Local Licensing Authority, no later than forty-five (45) days prior to the license expiration date, together with the required license and renewal application fees, in the form of a check or money order.
B. If an application for renewal is filed less than forty-five (45) days prior to the license expiration date, and no other objections have been filed with the Local Licensing Authority as set forth in Subsection E of this Section, then the Authority shall process the application as provided in Subsection D of this Section. If objections are filed, then the provisions of Rule 3.1.08 shall apply. If, due to the lateness of the filing of the renewal application form, the license cannot be renewed by the City and by the State prior to its expiration date, then the licensee shall not be allowed to sell, distribute or cultivate Medical Marijuana, or manufacture Medical Marijuana-infused products until a new license application has been approved and issued to the licensee, unless the Authority, for good cause shown, expressly waives this provision. No application for
Medical Marijuana Rules and Regulations
6/21/2011 Page 14
renewal of a Medical Marijuana business license shall be accepted after the date of expiration except as provided in Subsection C, below.
C. Notwithstanding the provisions of Subsection B of this Section, a licensee whose license has been expired for not more than ninety (90) days may file a late renewal application upon the payment of a nonrefundable late application fee payable to the City of Colorado Springs. A licensee who files a late renewal application and pays the required fee may continue to operate until the Local Licensing Authority has taken final action to approve or deny the licensee’s late renewal application. No late renewal application shall be accepted more than ninety (90) days after the expiration of a licensee’s annual license. Any licensee whose permanent annual license has been expired for more than ninety (90) days must apply for a new license pursuant to C.R.S. 12-43.3-Part 3, and shall not cultivate, distribute or sell any Medical Marijuana, or manufacture any Medical Marijuana-infused products until all required licenses have been obtained.
D. Upon receiving the properly completed renewal application, the City Clerk shall assemble the file of the applicant containing all of the various City departments’ records regarding the applicant or the premises dating back for a period of at least one (1) year. Unless there is evidence to the contrary, whether contained in the applicant’s file or otherwise, it will be presumed that the licensed premises comply with the provisions of the statutes and applicable regulations, and that the character of the applicant continues to be satisfactory. If these presumptions apply, the application shall then be approved by the Authority and forwarded to the State Department of Revenue, Medical Marijuana Enforcement Division.
E. Whenever objections to the renewal of a license have been raised by an interested party, organized neighborhood group or the City prior to the renewal of the license, the Authority shall have the discretion to set the matter for a renewal hearing pursuant to Rule 3.1.08. Objections to renewal of a license must be for good cause. “Good Cause” is defined by C.R.S. § 12-43.3-104(1).
F. In the event that an application for a transfer of ownership of a license is pending at the same time that an application for a renewal is pending, both applications shall be processed simultaneously. If the renewal of the license occurs prior to the transfer of the license, then the licensee may continue to operate pending final determination of the application for transfer of ownership. If the transfer of ownership occurs prior to the renewal of the license in the name of the original licensee, then the date of approval of the transfer of ownership shall be the renewal date for the transferee’s license and the original licensee’s renewal application shall be moot.
PART 3 – Disciplinary Proceedings: Rules Related to Suspension, Revocation and Non-Renewals
Section 1 – General Provisions Applicable to All Disciplinary Proceedings
Medical Marijuana Rules and Regulations
6/21/2011 Page 15
Rule 3.1.00 Notice
A. Upon commencement of suspension and revocation proceedings, the Local Licensing Authority shall set a time and place for the hearing of the matter.
B. The Local Licensing Authority shall give the licensee no less than ten (10) days advance notice of the time, place and nature of the hearing, the authority and jurisdiction under which it is to be held, the violations asserted and/or the good cause generally asserted as the grounds. Notice shall be served personally or by mailing by certified mail to the last address furnished to the City by the licensee, except that the time for Notice of Hearings on license renewal applications shall be governed by Rule 3.1.08. Notwithstanding the above notice requirements, the Hearing Officer may summarily suspend the license without notice pursuant to State law and these Rules.
C. In the discretion of the City, suspension and revocation proceedings may include violations occurring during the immediate preceding licensing period as well as the current licensing period.
D. For purposes of disciplinary proceedings, the parties shall be the Licensee and the City.
Rule 3.1.01 Discovery and Exhibits
A. For purposes of hearings on license suspension or revocation, the parties shall, upon request of the other party, exchange copies of all exhibits intended for introduction at the hearing, exchange all pertinent written reports of witnesses whose testimony is anticipated at hearing, and respond to all other reasonable discovery requests, within a reasonable period of time. In the event a party intends to introduce evidence which is not subject to photocopying or electronic duplication, a description of the evidence will be provided to the other party and the evidence will be made available for inspection under supervision by appointment.
B. The Hearing Officer shall have the discretion to make any orders necessary to address alleged non-compliance with this Rule. Orders shall include, but not be limited to, ordering the non-complying party to permit the discovery of the material and information not previously disclosed, continuing the hearing, or any other orders that the Hearing Officer deems just under the circumstances. Upon a finding that this Rule has been violated by a party, the Hearing Officer should impose the least severe sanction that will ensure that there is full compliance with this Rule.
Rule 3.1.02 Hearings
A. The Hearing Officer shall conduct hearings on revocation or suspension.
Medical Marijuana Rules and Regulations
6/21/2011 Page 16
B. The Hearing Officer shall have the power to administer oaths, issue subpoenas and, when necessary, grant continuances.
C. Representation. The City may be represented by a prosecuting attorney from the Office of the City Attorney. The licensee may be represented by counsel or may proceed pro se. The licensee will be given an opportunity to be heard, present evidence, cross-examine witnesses and offer evidence in mitigation of any alleged violations. At the Hearing Officer’s discretion, a municipal attorney from the Office of the City Attorney may advise the Hearing Officer regarding any procedural questions during a hearing. Under no circumstances will the same municipal attorney act as a prosecuting attorney during any hearing.
D. All hearings before the Hearing Officer shall be electronically recorded. Summary suspension hearings shall be similarly recorded.
E. In all suspension or revocation proceedings before the Hearing Officer, the City shall have the burden to establish that a violation occurred by a preponderance of the evidence.
Rule 3.1.03 Decision
A. The Hearing Officer shall make a written decision within fifteen (15) days after the conclusion of the hearing. The Hearing Officer shall consider only the testimony and evidence presented at the hearing in making his or her decision. A copy of this decision shall be mailed to or served upon the licensee.
B. In the event of revocation, suspension or surrender of the license, no portion of the license fee or any levied occupation tax shall be refunded.
Rule 3.1.04 Penalty
A. Upon a finding by the Hearing Officer that the licensee, or any of the licensee’s agents or employees, committed a violation, the Hearing Officer shall have the power to suspend the license for a period not to exceed six (6) months (to include both time the license is actually suspended and suspension time held in abeyance), or to revoke the license. Any summary suspension ordered pursuant to Rule 3.1.06 shall be further limited in duration by that Rule.
B. In determining an appropriate penalty, the Hearing Officer may consider factors including, but not limited to, any recommended penalties for the violation contained in regulations promulgated by the State Licensing Authority pursuant to State law, any history of violations committed by the licensee or by any of its agents or employees, and any aggravating and mitigating factors.
Rule 3.1.05 Summary Suspensions
A. The Hearing Officer may summarily suspend a license without notice pursuant to state law:
Medical Marijuana Rules and Regulations
6/21/2011 Page 17
1. Where the Hearing Officer has reasonable grounds to believe and finds that a licensee is guilty of a deliberate and willful violation of any applicable law, rule or regulation; or
2. Where the Hearing Officer has reasonable grounds to believe that the protection of public health, safety or welfare imperatively requires emergency action.
B. Upon the summary suspension of a license, the Hearing Officer shall render an order incorporating these findings.
C. The summary suspension of a license without notice pending any prosecution, investigation, or public hearing shall be for a period not to exceed fifteen (15) days, during which time the City shall institute suspension or revocation proceedings.
D. In the event the Hearing Officer grants a summary suspension and the licensee requests that the hearing date is continued beyond fifteen(15) days, the Hearing Officer shall have discretion to continue the hearing date so long as the licensee stipulates to the summary suspension continuing through the next scheduled hearing date.
D. In the event of the summary suspension of a license, no portion of the license fee or occupation tax shall be refunded.
Rule 3.1.06 Destruction of Unauthorized Marijuana or Marijuana-Infused Products and Related Materials
A. The Colorado Springs Police Department, and the Local Licensing Authority, shall not be required to cultivate or care for any marijuana or marijuana-infused product belonging to or seized from a licensee.
B. If the Hearing Officer issues a final agency order imposing a disciplinary action against a licensee pursuant to § 2.3.108 of the Code of the City of Colorado Springs 2001, as amended, then, in addition to any other remedies, the Hearing Officer’s order may specify that some or all of the licensee’s marijuana or marijuana-infused product is not Medical Marijuana or a Medical Marijuana-infused Product and is an illegal controlled substance. The order may further specify that the licensee shall lose any interest in any of the marijuana or marijuana-infused product even if the marijuana or marijuana-infused product previously qualified as Medical Marijuana or a Medical Marijuana-infused Product pursuant to the State Medical Marijuana Code and State Medical Marijuana Rules and Regulations. The final agency order may direct the destruction of any marijuana and marijuana-infused products pursuant to the State Medical Marijuana Code and State Medical Marijuana Rules and Regulations. Destruction of any illegal controlled substances will be under supervision of the Colorado Springs Police Department and the Local Licensing Authority.
Medical Marijuana Rules and Regulations
6/21/2011 Page 18
C. Following the issuance of a final agency action ordering destruction authorized by subsection (B) of this Rule, a licensee shall have fifteen (15) days to file a petition for stay of agency action with the District Court. The Colorado Springs Police Department and the Local Licensing Authority shall not carry out the destruction ordered by the Hearing Officer until fifteen (15) days have passed from the date of the Hearing Officer’s Order without the filing of a petition for stay of agency action, or until the District Court has issued an order denying a stay of agency action.
D. Following the issuance of a final agency action ordering destruction authorized by subsection (B) of this rule, the Local Licensing Authority shall immediately provide written notice to the 4th Judicial District Attorney’s Office that an order for destruction has entered and that the order will be executed 15 days after entry of the order unless the 4th Judicial District Attorney’s Office notifies the Local Licensing Authority that the marijuana or marijuana-infused product(s) constitute(s) evidence in a criminal proceeding, in which case the 4th Judicial District Attorney’s Office will be granted access for that purpose.
E. Whenever a decision of the Hearing Officer suspending a license becomes final, and the licensee petitions the Hearing Officer for an order of clarification permitting the licensee to maintain its inventory, the Hearing Officer may, if in compliance with State Medical Marijuana Rules and Regulations, grant the petition and order that the proposed suspension shall not prohibit the licensee from maintaining its existing inventory.
Rule 3.1.07 Renewal Hearings
A. Whenever the City files an objection to the renewal of a license based on “Good Cause” as that term is used in C.R.S. § 12-43.3-104(1) prior to the renewal of the license, the Authority shall have the discretion to set the matter for a renewal hearing. A hearing on the renewal application shall be held not less than 10 days from the date the licensee receives the City’s objection by personal service or certified mail as provided in Rule 3.1.00. A notice of hearing shall be conspicuously posted on the licensed premises for a period of no less than ten (10) days prior to the renewal hearing. The renewal hearing shall be conducted by the Hearing Officer in accord with this Part 3. The licensee shall be permitted to sell and possess Medical Marijuana pending the renewal hearing.
B. In the event that an application for change of corporate structure is pending at the same time that a renewal hearing is pending, then the change of corporate structure, as applicable, must be determined prior to the license being renewed. If the application for renewal is otherwise in compliance with state statutes and Rule 2.1.09, and the application for change of corporate structure cannot be heard prior to the expiration of the license, the license renewal hearing may be continued by the Hearing Officer after the expiration of the license pending determination of the change of corporate structure issues. Upon the completion of those determinations, the renewal application shall be acted upon by the Hearing Officer. If a renewal hearing is held after the expiration of the license, and the filing of the renewal application is timely, pursuant to the requirements of Rule 2.1.09, then the licensee may continue to operate pending
Medical Marijuana Rules and Regulations
6/21/2011 Page 19
final determination of the change of corporate structure issues prior to the renewal hearing being held.
D. In the event that an application for renewal is pending at the same time that a disciplinary hearing is pending, then the resolution of the disciplinary hearing must be determined prior to the license being renewed. If the application for renewal is otherwise in compliance with state statutes and Rule 2.1.09, and the disciplinary hearing cannot be held prior to the expiration of the license, the license renewal may be extended by the Hearing Officer after the expiration of the license pending determination of the disciplinary hearing. Upon the completion of those determinations, the renewal application shall be acted upon by the Hearing Officer.
Rule 3.1.08 Consequence of Inactivity
A. Where an approved license is for a premises which has not been constructed and placed in operation within one (1) year of approval of the application, in the discretion of the Authority, may be suspended, revoked, or denied upon application for renewal.
B. Where a licensed premise has been inactive for more than one (1) year, the premises may be deemed abandoned and the license, in the discretion of the Authority, may be revoked or denied subsequent renewal

The Gazette story from Tuesday’s meeting of the El Paso County Commission underscores the power held by Colorado Springs Mayor Steve Bach under the city’s new strong-mayor system. As long as Bach retains a high approval rating he can probably control what measures go on the city ballot. The City Council has the power to put ballots measures up for a vote, but realistically they won’t have a chance if a popular mayor is opposing them.

Bach took a no-tax pledge that is supposed to be in effect for the duration of his four-year term. He alluded to the pledge when confronted last week with a sales tax increase proposal that would have funneled money to parks for maintenance. The tax measure was ill-conceived, but even if it had been thought out better, it was folly for its supporters to ask the mayor to cave in on a no-tax pledge after being in office for only a couple of weeks.

In recent years former Denver Mayor John Hickenlooper used his political capital to get many measures passed. Of course there is a key difference between the city and the county on ballot issues. In the city citizens can circulate petitions to get measures on the ballot, thus circumventing the council. The county has no petition process, so only the commissioners can place measures on the ballot.

In the first of three “white papers”  during the campaign, Steve Bach discussed how he would transform city government. Among other things, he wrote:

Empower our city employees. Inspire them to use their own ingenuity to innovate, cover their back when they fail, and honor them when they do great things. In many cases we need to just get out of their way and allow our city employees to do their jobs, fearlessly and with passion. We currently have 1,750 City General Fund, Police and Fire employees – who will all report to the next mayor – down from 2,609 in 2008. This group will help create the effective, productive new atmosphere that can be the genesis for a new start for how we approach running a city that is prepared to thrive.

Here is an excerpt from an article printed in the Woodmen Edition and the Cheyenne Edition. The Bach campaign  liked it enough to put it on the campaign web site:

Many candidates, running for mayor and council, have stated that they want “transparency.” Bach said that transparency “means everything to me” as a taxpayer and member of the community for many years. Transparency and two-way communication are the only way to do business, Bach said.

Here is the full text of the memo sent to city employees Wednesday:

A key part of the urban renewal in Colorado City was the Westside Plan, developed in conjunction with neighborhood groups. The plan was put together in 1979 and officially accepted by City Hall in January 1980. The process was really the birth of the Organization of Westside Neighbors.

Writi9ng about the process later, Westside activist Dave Hughes said, “I knew that unless there was some sort of organized response from business and property owners, the city planners would just come up with, and impose, their own lackluster plans with little attention to history.”

Hughes took it upon himself to contact property owners so a unified vision could come together for Colorado City. What resulted was no accident. Today’s backers of so-called urban renewal should take a page from Hughes and his fellow Westsiders. If these projects lack community involvement it should give City Hall pause.

One of the things that’s absent in the Copper Ridge or Vineyard Data Center proposals is that there are no neighborhood groups beseeching City Hall, “please do this.”  That’s understandable, given that there are no neighborhoods there now, so there’s nothing to “renew.” Look at that land up north where the Copper Ridge development was going to go. Does it look blighted? Same goes for the Vineyard property, which is across the highway from the World Arena. It’s an old golf course. there’s nothing there.

In addition, the Vineyard proposal calls for a trash-burning power plant. Not many neighborhoods are going to go wild about that idea, but never mind.

HERE IS  A SHOT OF A TYPICAL NATURAL GAS DRILL RIG, COURTESY OF THE UNITED STATES GEOLOGICAL SURVEY. DRILL TECHNIQUES ARE HIGHLY EFFICIENT NOW COMPARED WITH JUST A FEW YEARS AGO AND THE USE OF HORIZONTAL DRILLING MEANS DRILL PADS DON’T HAVE TO BE AS CLOSE TOGETHER OR AS NUMEROUS. THERE STILL ARE CONCERNS OVER WATER USE, OCCASIONAL WATER POLLUTION AND, OF COURSE, NOT MANY PEOPLE THINK HAVING A DRILL RIG NEXT DOOR IS ALL THAT ATTRACTIVE.

The National Association of Royalty Owners offers advice to property owners who are about to negotiate with companies interested in leasing land for exploration.