The Colorado Energy and Carbon Management Commission (ECMC) convened on July 9, 2025, to deliberate on a contentious pooling application submitted by Noble Energy, which seeks to include the mineral interests of 5M Farms in a 2,400-acre drilling unit. The commission's discussions centered around the legal and equitable implications of pooling, particularly in light of 5M's objections regarding the validity of its lease.

Noble Energy argued that its pooling application complies with Colorado's regulations, asserting that 5M is subject to a valid lease that allows for pooling. They emphasized that the pooling statute aims to ensure fair distribution of production proceeds among mineral interest owners, and that denying the application would lead to inequitable outcomes for other stakeholders in the unit.

Conversely, 5M Farms contended that Noble's application violates regulatory rules by treating their interest as leased without proper authority. They argued that the commission should consider the validity of their lease based on past agreements and claimed that Noble's actions could unjustly benefit them at 5M's expense. The company requested that the commission require Noble to treat them as an unleased mineral owner, which would entitle them to a new lease offer.

During deliberations, commissioners expressed a consensus that the commission lacks jurisdiction to resolve contractual disputes, emphasizing that their role is to assess whether the pooling application meets statutory requirements. They noted that the existence of a lease, regardless of its terms, means that 5M is not entitled to the same considerations as unleased mineral owners.

Ultimately, the commissioners leaned towards approving Noble's pooling application, recognizing that excluding 5M's minerals could lead to stranded resources and negatively impact other mineral owners. They encouraged 5M to pursue any contractual disputes through the appropriate legal channels, reinforcing that the commission's authority is limited to evaluating compliance with the pooling statute.

The commission's decision is expected to facilitate the development of the drilling unit, ensuring that all mineral interests are accounted for and that production can proceed without unnecessary delays. The outcome underscores the importance of clear contractual agreements in the energy sector and the commission's commitment to equitable resource management.