Colorado Proposition 112. Calculating Impact to Mineral Value

Colorado Proposition 112. Calculating Impact to Mineral Value

Proposition 112, known during the petition process as Initiative 97, could have a huge affect on the oil and gas activity in Colorado. This initiative proposes the oil and gas industry maintain a buffer of 2500 feet from schools, homes and businesses.  In Colorado, there is currently a 1000 foot set-back in place for schools and hospitals , as well as a 500 foot buffer for residential properties.

The oil and gas industry will be most directly affected by this proposition. However, there will  be a ripple effect, felt on a community  and at the state level. The full impact is still being heavily debated. What is certain, is that thousands of new wells will not be drilled, and producing wells will be restricted from fully developing allocated minerals. Minerals will no longer be accessible for development, using current technology, and the monetary value of those minerals will not be realized. 

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Calculating Impact of Proposition 112 on Mineral Value 

The LandGate (formerly named PetroValues) team added the affected acreage overlay to our mineral valuation map to simulate the change in oil and gas activity if this Proposition were adopted. In the video below, our President, Craig Kaiser, talks you through the valuation workflow using the interactive map to determine impact of the proposition.

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