Oil and gas cases discussed during county meeting | News
The San Miguel Board of County Commissioners (BOCC) received legal updates on several matters during their meeting on Thursday, Jan. 23, including a Suncor court case and the Pandora Midstream bankruptcy case.
A court in Boulder decided in June that the City of Boulder and Boulder County’s lawsuit against ExxonMobil and three Suncor entities can proceed. The case is for ExxonMobil and Suncor allegedly misleading the public about the threats presented by climate change. It is one of the first climate lawsuits in the United States to overcome a motion to dismiss.
The Colorado Supreme Court will hear the case on Feb. 11.
San Miguel County is engaged in the same litigation in a Denver court.
“San Miguel County’s case was separated out and is in the Denver County Court, but the Boulder portion of the case is going to the Colorado Supreme Court on Feb. 11, and that’s on the jurisdictional question of whether it should be heard in federal court or state court,” San Miguel County attorney Maura Fahey said.
“We are not involved in it, though it will likely have some implications for our own case,” Fahey said.
Both the Boulder and San Miguel County lawsuits were filed because these communities determined that the oil companies’ business practices and decisions have significantly contributed to an altered climate.
“The purpose of this lawsuit is to force Exxon/Suncor to pay their fair share for the impacts they have created in our jurisdiction,” San Miguel County Commissioner Lance Waring told the Daily Planet in June.
Over the next 30 years, these communities are estimated to face at least one hundred million dollars in costs related to climate change from the use of fossil fuel products, such as Suncor and Exxon. As the effects of climate change increase, taking legal action against these oil companies could help lessen the burden on taxpayers.
Although the case is separate, the commissioners have the option to attend or participate in the briefing with the county’s outside counsel, Fahey noted.
“I don’t believe our attendance would have any impact on the outcome. It’s more an opportunity for San Miguel County commissioners or myself to meet in person with our outside counsel who are located out of state,” Fahey said.
Waring asked if there would also be an option to attend virtually.
“While I understand and appreciate the beauty of face-to-face, human-to-human contact, if Feb. 11 turns out to be the biggest snowstorm of the year, it may be harder than it’s worth,” Waring said.
The legal battle started in 2018 in San Miguel County. The county did not allege any federal claims, but one of the defenses claimed by the energy companies is that federal law preempts the local governments’ claims. San Miguel County earned a favorable recommendation from the Office of the Solicitor General for the state-level litigation to proceed, rather than move to federal court.
The BOCC also held an executive session with Fahey on the Pandora Midstream bankruptcy case. The oil and gas company owes San Miguel County thousands of dollars in taxes.
Paradox Midstream LLC, Paradox Upstream LLC and their parent company, Paradox Resources LLC, filed for bankruptcy on May 22, 2023. The cases are filed in the U.S. Bankruptcy Court for the Southern District of Texas.
Paradox Midstream owes $421,325.30 in property taxes to the San Miguel County Treasurer’s Office and Paradox Upstream owes $337,542.15, according to the proof of claim forms. In the court filing, Paradox Upstream listed that the company has more than 1,000 creditors, $50 million in assets and more than $50 million in liabilities.
In the court filing, Paradox Resources also reported owing more than $1.5 million to the Colorado Office of Natural Resources and more than $1.3 million to Elk Petroleum Aneth LLC. It also owes over $1 million to the San Juan County Tax Assessor.
