Rigzone Website Survey Says Denver is World's No. 4 Ranked City in "Up and Coming" Oil and Gas Cities

A recent survey of "up and coming" cities for oil and gas professionals lists Denver as No. 4 in the world. According to the same survey, the No. 1 city is Dubai, United Arab Emirates, followed by Calgary, Canada, at No. 2 and Rio de Janeiro, Brazil, No. 3.

The survey was conducted by Rigzone, a Houston-based website that calls itself the "gateway to the oil and gas industry."

David Kent, the president of Rigzone, told the Denver Business Journal, "Houston is considered the oil and gas capital of the world, but with its weather, 98 degrees and 98 percent humidity in the summer, I'd rather be in Denver. I'm not surprised that Denver popped up on the list" ("Gushing praise for Denver," July 8-14, 2011.).

Other cities ranked in the top 10 were: No. 5, Singapore; No. 6 Perth, Australia; No. 7, Cairo, Egypt; No. 8 Kuala Lumpur, Malaysia; No. 9, Jakarta, Indonesia; and No. 10, Ciudad del Carmen, Mexico.

The oil and gas industry in Colorado employs about 50,000 people directly while supporting nearly 200,000 additional jobs. The sector contributes $24 billion in value added economic output annually, according to the Colorado Oil and Gas Association.

Don Smith, director of the Denver Law Environmental and Natural Resources Law & Policy Program, said, "Those of us who call Denver home are not surprised by Rigzone's survey findings. Denver is great place to live and do business. Moreover, Denver Law offers an exceptional array of courses that address oil and gas from domestic and international perspectives. Students from all across the world come to Denver Law to study about this important natural resources sector."

Terence Daintith, Author of Book About the History of Oil and Gas Industry, Speaks to Adjunct Professor Ken Jones' Oil and Gas Course

The author of Finders Keepers? How the Law of Capture Shaped the World Oil Industry spoke recently at the University of Denver Sturm College of Law. Terence Daintith, the former director of the University of London's Institute of Advanced Legal Studies and a co-editor of a treatise on United Kingdom oil and gas law, was a guest in Adjunct Professor Ken Jones' course "Oil & Gas Law."

Mr. Daintith spoke about a 2008 Texas Supreme Court decision, Coastal v. Garza, in which the majority held, according to Mr. Daintith, that "the rule of capture prevents recovery for drainage caused by [hydraulic fracturing], both to the early development of the rule of capture in the U.S. and to contemporaneous developments in the United Kingdom, where the legal consequences of slant-hole drilling have just been considered for the first time by the U.K. Supreme Court [formerly known as the House of Lords] in Bocardo v. Star Energy."

Mr. Daintith's comparison illustrated the "effects of different property right systems for oil and gas, and also demonstrates the contrasting approaches to policy and doctrinal questions in the two [U.K. and U.S.] courts."

He also talked more broadly about the law of capture (also called the rule of capture), that provides that "oil and gas become the property of the person who recovers them by drilling on land he or she owns or has lawful access to, even if that oil and gas may have migrated from under adjoining lands." In his book, Mr. Daintith writes:

"At first thought, this may seem like just one of a multitude of rather mundane and technical rules of property law; in practice, however, the choice between acceptance and rejection of this particular rule has been crucial to the way the oil industry has developed. This is true not just of the United States, but of oil-producing countries generally...One of the aims of this book is to show why, despite this common beginning, the rule today is of marginal importance elsewhere yet remains the foundation of the complex legal structure that regulates the domestic U.S. industry."

For those interested in the oil and gas sector, this book is well worth reading. Owen L. Anderson, a professor at the University of Oklahoma, has written that the book is "a thorough analysis of the most fundamental of all rules of oil and gas. Every oil and gas lawyer, petroleum landman, petroleum geologist, and petroleum engineer should read this important book."

Leading Natural Resources Attorneys Steve Bain and Robert Bassett to Compare International Mining and Petroleum Law at Sturm College of Law Nov. 10

Two well-known attorney experts in international natural resources law, Steve Bain and Robert Bassett, will compare international mining law and international petroleum law on Nov. 10, 2010, from 12 noon to 1 p.m. in room 125 at the University of Denver Sturm College of Law.

Both Mr. Bassett and Mr. Bain teach as adjunct professors in the College of Law Environmental and Natural Resources Law (ENRL) program. Mr. Bassett teaches "International and Comparative Mining Law" while Mr. Bain co-teaches "International and Comparative Petroleum Law" with Carol Harmon. These courses, which have been very popular among DU law students, are part of a wide selection of natural resources-related courses offered at DU.

Mr. Bassett, a partner at Denver-based Holland & Hart, practices natural resources and international law with an emphasis on the mining industry. In recent years he has handled projects as diverse as: mining counsel in financing of a major coal company merger, a major copper company, and a major lead producer; development of mine methane capture and use programs; acquisition of major copper, gold, and uranium mines and royalty interests in the U.S., Latin America, and Africa.

Mr. Bain, a partner at Denver-based Welborn Sullivan Meck & Tooley, specializes in environmental and natural resources law and has significant experience with government negotiations. He has extensive experience in international law, especially in the former Soviet Union, and is past chair of the International Law Section of the Colorado Bar Association. Prior to joining his firm, he worked for two years in the Czech Republic as an advisor to the Czech Ministry of the Environment.

Don C. Smith, director of the ENRL program, said, "Students who have taken these courses from Adjunct Professors Bain and Bassett frequently say how valuable these courses are and point to the significant benefit from learning from industry leaders like Mr. Bain and Mr. Bassett. Their courses are clear examples of why many think at the ENRL program is the best of its kind in the U.S."

For more information about the event, please contact Carrie Golden at cgolden11@law.du.edu.

"Community Expectations for Sustainable Development in Natural Resources Projects" Short Course Concludes

A thought-provoking and cutting-edge short course, "Community Expectations for Sustainable Development in Natural Resources Projects," came to a close last Friday with these conclusory comments by Luke Danielson: "One of our world's greatest needs is to integrate the idea that those who consume goods and materials need to also be concerned about the conditions under which these things are produced."

Mr. Danielson, a Gunnison attorney, principal in the Sustainable Development Strategies Group (SDSG), and widely-recognized international expert in addressing sustainable development matters in large natural resource development projects (for instance, mines, oil and gas projects, etc.) and his teaching partner Cecilia Dalupan, an attorney licensed in the Philippines and the U.S. and also a principal in SDSG, conducted the five day "short course" for a group of DU law and graduate students.

The course was organized in five components:

• Introduction: what is sustainable development in natural resources projects?
• Understanding each other: differences in culture, values, and ideas
• Sources of misunderstanding and conflict
• Incorporating communities in the decision process: managing conflict successfully
• Conclusion

Mr. Danielson and Ms. Dalupan presented a series of lectures, which provided the context for the major issues explored in the course. They also reflected on their own global experiences in dealing with the issues while encouraging students to reflect on the often vexing issues involved with natural resources development.

Among the course highlights included guest lectures from an outstanding array of leading figures such as:

• Robert Bassett, attorney with Holland & Hart (who also teaches International Mining Law in the DU graduate program)
• James F. Cress, attorney with Holme Roberts & Owen (who has also taught in the graduate program)
• Donald C. Ewigleben, executive officer of sustainability and legal affairs for mining firm AngloGold Ashanti, one of the world's leading gold producers
• Ralph Godell, attorney with Fognani & Faught
• George (Rock) Pring, DU law professor
• Don Proebstel, director of environmental affairs and sustainability for Natural Power Concepts
• Connie Rodgers, attorney with Davis Graham & Stubbs
• Jonathan Stacey, program manager for Rio-Tinto/Birdlife International Partnership
• Susan Waldau, partner with mediation firm CDR Associates

Another highlight involved student presentations that went on during the course of the week. Each student was assigned a topic to research, analyze, and then present to their colleagues. The presentations were provocative and often raised as many questions as they answered. For example, one of the presentations focused on the Chino mine closure in southwest New Mexico. Others dealt with projects that were located in Africa, South America, and elsewhere.

The week was a busy one to be sure. But from what I observed first-hand, the benefits were many both quantitatively and qualitatively.

In closing, Mr. Danielson said, "This has been just great. You as students have worked hard and really put your hearts into it." I could not have said it better.