CO: The oil and gas industry is “closely regulated” for 4A purposes

The Colorado Oil and Gas Conservation Commission gas well inspection program is constitutional. It provides for unannounced inspections. The court concludes that the oil and gas industry is “closely regulated” for Fourth Amendment administrative inspection law. Maralex Resources, Inc. v. Colo. Oil & Gas Conservation Comm’n, 2018 COA 40, 2018 Colo. App. LEXIS 393 (Mar. 22, 2018):

[*26] We conclude that the oil and gas industry is closely regulated. The Oil and Gas Conservation Act (Act), §§ 34-60-101 to -130, C.R.S. 2017, provides COGCC with substantial authority to regulate oil and gas facilities. See generally Chase v. Colo. Oil & Gas Conservation Comm’n., 2012 COA 94M, ¶¶ 24-29, 284 P.3d 161, 165-67 (detailing COGCC’s history and authorizing legislation). Indeed, COGCC is empowered to “do whatever may reasonably be necessary to carry out the provisions of th[e Act].” § 34-60-105(1), C.R.S. 2017. To that end, COGCC has promulgated comprehensive rules regulating multitudinous aspects of the oil and gas industry. See City of Fort Collins v. Colo. Oil & Gas Ass’n, 2016 CO 28, ¶ 29, 369 P.3d 568, 593 (characterizing COGCC’s rules as “exhaustive” and “comprehensive[]”); City of Longmont Colo. v. Colo. Oil & Gas Ass’n, 2016 CO 29, ¶ 52, 369 P.3d 573, 584 (same). The inevitable effect of this exhaustive regulatory scheme is a lessened expectation of privacy in commercial premises for operators in Colorado’s oil and gas industry. See Eddie’s Leaf Spring Shop, 218 P.3d at 332-33.

[*27] Moreover, courts in other jurisdictions have concluded that the oil and gas industry is closely regulated. See United States v. Stinson, No. 1:12CR-00012-JHM, 2013 U.S. Dist. LEXIS 41241, 2013 WL 1221937, at *3 (W.D. Ky. Mar. 25, 2013) (unpublished opinion) (oil and gas industry is “highly regulated”); Matter of Mullins & Pritchard, Inc., 549 So. 2d 872, 876-77 (La. Ct. App. 1989) (“[I]t is obvious that the oil and gas production facilities subject to the warrantless searches fall under the ‘pervasively regulated industry’ exception to the warrant requirement.”). We similarly conclude that the comprehensive scheme governing oil and gas operations in Colorado renders the industry closely regulated.

This entry was posted in Administrative search. Bookmark the permalink.

Comments are closed.