Extraction Oil and Gas, Inc., Trespassing, Colorado 2024

“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing.

According to a federal investigation, Extraction Oil and Gas, Inc., a Denver-based oil and gas company, removed minerals from three oil and gas wells on federal public lands in Weld County, Colorado, without permission. The company will pay over $462,000 to resolve the allegations.

This settlement is in addition to a $884,407 payment Extraction made in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.

Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Removing minerals without permission is considered trespassing.

The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.

The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.

The settlement is the result of the U.S. Attorney’s Office, the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, the Bureau of Land Management, and the Office of the Solicitor working collaboratively to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.

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