The Oklahoman

FAIR OR FOWL?

- By Jack Money Business writer jmoney@oklahoman.com

In a case before the state Supreme Court, a company seeks to exit its contract after the prairie chicken's de-listing

An Oklahoma oil and gas operator t hat hasn't held up it send of a contract it entered to help maintain habitat for the lesser prairie chicken is asking Oklahoma's Supreme Court to decide whether its actions were justified.

Le Norman Operating, part of Templar Energy — a company started and grown but no longer owned by David Le Norman, chair - man of the Oklahoma Petroleum Alliance—is being sued in Oklahoma County District Court by the Western Associatio­n of Fish and Wildlife Agencies, a nonprofit group that runs a program to preserve habitats for the bird.

The nonprofit asserts in its lawsuit the company owes it about $4.1 million that it would use to help landowners undertake conservati­on measures to help preserve the species.

The company countersue­d, arguing that the agreement it had entered into effectivel­y was voided because of a federal judge's 2015 determinat­ion that the U.S. Fish and Wildlife Service had acted “arbitraril­y and capricious­ly by improperly interpreti­ng and then applying” applicable law when it made its determinat­ion the bird was threatened.

The same judge' s ruling also effectivel­y removed the bird from the service's threatened species list.

In its answer as part of the Oklahoma County case, Le Norman Operating asserted it owed the nonprofit nothing because it didn't enroll in the program until after the Fish and Wildlife Service had determined the species was threatened.

It asked the judge to require the nonprofit to repay it about $ 352,000 it had given the organizati­on so far, and asked the judge to also require the nonprofit to pay Le Norman's attorney fees, costs and expenses.

Shortly thereafter, Le Norman Operating sought a summary judgment in the case.

In July, Oklahoma County District Court Judge Richard C. Ogden denied Le

Norman's request, ruling the contract between the two was valid.

Last month, Ogden heard argument son whether to allow Le Norman Operating to appeal his ruling to the supreme court, and ul timately agreed to that request.

This week, Le Norman Operating asked the supreme court to consider the case.

Bird's status remains political

While the U.S. government dropped its effort to list the lesser prairie chicken as a threatened species in 2017, environmen­talists' efforts to change that position continue.

Three groups, including Defenders of Wildlife, filed a lawsuit against the federal government in June seeking further evaluation of the bird's status. To resolve that case, the U.S. Fish and Wildlife Service agreed to conduct another review of the bird's status and complete it before the end of 2021.

Meanwhile, U.S. Sens. Jim In ho fe and James Lank ford, both Oklahoma Republican­s, signed a letter along with senators from other involved states, sent to the Secretary of Interior asking for federal authoritie­s to give the associatio­n' s conservati­on program an adequate opportunit­y to accomplish i ts mission before undertakin­g another review.

“It is imperative that you provide the fullest and fairest opportunit­y for such private conservati­on plans to succeed ,” the letter stated.

The bird' s habitat includes parts of western Oklahoma, Kansas, Texas, New Mexico and Colorado, and some oil and gas and agricultur­e advocates fear listing the bird as an endangered species could cur tail activities within those states.

A report released in March by the Western Associatio­n of Fish and Wildlife Agencies estimated the bird' s population at 38,637, an increase of 29% from the previous year, and credited that growth to its mitigation plan.

Its latest annual report, published in January, also stated industry partners had committed more than $64 million in enrollment and mi tigati on fees to pay for conservati­on actions, and that land owners across the range had agreed to conserve more t han 1 50,000 acres of habitat through 10-year and permanent conservati­on agreements.

However, it observed declining industry enrollment­s were threatenin­g the long-term viability of its mitigation framework.

And t he Le Norman lawsuit raises another critical question.

If the company were to obtain an affirmativ­e ruling from the supreme court, might t hat give other participat­ing companies in Oklahoma that joined the program between when the chicken was listed as threatened and when it was delisted a precedent to void their contracts as well?

Attorney Jason Rylander, senior counsel at Defenders of Wildlife, said that potential is troublesom­e for an organizati­on that already appears to be having difficulti­es carrying out its plans.

“The rangewide plan was an unpreceden­ted attempt to engage states and private landowners in conservati­on, but for us, the proof is in the pudding,” Rylander said.

“We need to see plans in place that are meaningful, robust and enforceabl­e. If you aren't going to protect the species by placing it on the list, these plans have to do the work, and we have growing concerns that the associatio­n' s range wide plan is not adequate.”

Le Norman, meanwhile, is no longer connected to the company involved in the case.

He now owns a venture capital company called Reign Capital Holdings, which invests in upstream and midstream oil and gas and oil and gas services.

He was selected to serve a two- year term earlier this year as the first chairman of the Petroleum All i ance of Oklahoma, t he oil and natural gas trade associatio­n formed by the merger of the Oklahoma Independen­t Petroleum Associatio­n and the Oklahoma Oil& Gas Associatio­n.

A representa­tive for Le Norman didn't respond Friday to a request for comment.

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 ?? [OKLAHOMA STATE UNIVERSITY] ?? A lesser prairie chicken is seen trying to attract a mate.
[OKLAHOMA STATE UNIVERSITY] A lesser prairie chicken is seen trying to attract a mate.

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