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Ski Hills Not Just For Skiing

7/19/2012

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Today, Vail Resorts announced a major new proposal to increase its summer activities and programming as part of a federal initiative to encourage increased use of public lands during the summer. The new activities will include zip-lining, tubing, an alpine slide, and numerous educational classes.

Following a dismal snow season, it doesn’t come as much of a surprise that Vail is making an effort to bolster its off-season business. Across Colorado, the 2011-2012 ski season was lackluster, with low snowpack and sluggish tourism. The snow conditions had such a negative impact on the ski business that, in March of this year, Vail was accused of over-exaggerating its snow reporting in order to encourage and salvage skier activity.

While the summer activities would be a major change for Vail’s operations, here in Durango, Durango Mountain Resort already offers a slew of summer fun. Many of the activities that Vail is considering are already established and available at DMR. 

However, what will be interesting to see is how Vail executes its plan and what impact it will have on off-season revenue. For many other Colorado ski areas that don’t already have summer programming, Vail’s program may act as a roadmap to expand their revenue base.
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It's All Fun & Games, Until Someone Loses An Eye

5/25/2012

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As the Memorial Day weekend approaches, people throughout Colorado and New Mexico are dusting off their camping gear, filling coolers, and heading out into the mountains, parks, and lakes. With the already-hot weather that the Rocky Mountain region has experienced this spring, it’s an ideal time to get outdoors and enjoy the sun.

However, not wanting to be the wet blanket, a major aspect of the holiday weekend is also the liability associated with thousands of people flooding into the back country, looking to cut loose.

Both Colorado and New Mexico experience huge swells of people looking to get out of the metro areas and partake in the amazing natural resources available. But, those swells of people also create significant risks and hazards.

Recreational businesses like whitewater rafting, horseback riding, and numerous other guided activities see this weekend as a major money-maker (which it is).  And, as the crowds build on the rivers and hiking trails, many of the outdoor businesses scramble to accommodate the increased demand. As a result, safety and common sense sometimes take a back seat to trying to put more people on the river and making more money.

In both states, the legislatures have passed numerous laws that specifically regulate many of the outdoor activities, including equine activities (horses), shooting ranges, whitewater rafting, ballooning, skier safety, and snowmobiling. These laws are in addition to the more broad laws and regulations covering motor vehicles, fishing and hunting, federal and state lands, and business licensing.

While no one wants to quickly review C.R.S. § 33-32-101 et seq., regulating River Outfitters, before they put their friends and family on a whitewater raft, it is important to remember that these laws do exist and they may determine who is liable if an accident does happen.

It is important to have fun and enjoy the holiday, but it is equally important to be careful and be conscientious of those around you.  So, get out of town this weekend, enjoy the sun, and watch out for all those other crazy people trying to do the exact same thing.
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Fracking: friend or foe?

11/22/2011

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Commerce City and its residents are upset because drilling and hydraulic fracturing (or "fracking") operations began this week in an area of unincorporated Adams County relatively close to a residential subdivision. The residents and city are upset because they feel that Adams County didn't keep them in the loop about the drilling operation. However, development of the mineral rights has been permitted since 1972.

It is understandable that the residents don't necessarily want oil rigs and heavy pumping equipment in their back yards (especially if they aren't the royalty owners), and the jury is still out on the extent of potential health risks produced by fracking, but I think it is a stretch to claim that this is a complete surprise. Oil & gas development is a major industry in Colorado, and virtually all oil & gas interests are of public record.  All of the residents of the subdivision, and especially Commerce City, should have known that oil development was a possibility long before they built or purchased their homes.

It is important for land owners and home buyers to understand that living in a rural or semi-rural area opens the door to conditions and concerns that you wouldn't otherwise have to deal with in a more urban environment.  This is a prime example of why it is important to conduct more due diligence and inquire into the potential uses of the surrounding areas before purchasing real property.

While I sympathize with the families of Commerce City who now have a direct view of the pumping stations our of their dining room window, I think the situation could have been avoided with a little foresight and better planning.


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There's A Wolf At The Door

11/9/2011

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This week, a federal court in Montana will decide the fate of the grey wolf in Idaho and Montana, yet again. For the past twenty years, wildlife advocates have been in court fighting for the wolves. The first wave of litigation was an effort to put them on the endangered species list. The second effort was to fight to keep them on the list once the population grew. And now, advocates are fighting to stop trophy hunting of the animals.

This year, federal biologists gave the go-ahead for wolf trophy hunting in both Idaho and Montana, and so far 150 wolves have been killed pursuant to valid hunting licenses. The hunting programs are coordinated under state law, but the U.S. Fish and Wildlife Service, who is responsible for establishing and maintaining the protected species lists, is monitoring the hunts.

The Wildlife Service’s official position is that it will not get involved in regulation of the hunting as long as the respective wolf populations remain above the targeted goals of each area. Currently, Idaho has a goal of maintaining at least 150 wolves, but the state has an estimated population of 700. Montana is looking to maintain a target level of 425 wolves, which would allow for a population reduction of 25% of the existing population this year.

The grey wolf has been a major issue throughout the rocky mountain region because of the disparate interests involved: one side seeks to reestablish the animal to its original population, while the other seeks to protect private land and ranching interests against a known predator. Throughout the mid-twentieth century, wolf populations were nearly eradicated as a result of loose hunting regulations and aggressive ranching operations. But, over the last decade, the grey wolf population has rebounded after its deliberate reintroduction to the region, and the rift between ranchers and wildlife advocates has resurfaced anew.

This week’s case is taking place in the 9th Circuit of the federal court system, which includes Idaho and Montana, as well as the western pacific states. Colorado is in the 10th Circuit and therefore the outcome of this case will not have a direct effect upon the laws applied here. However, there will be a ripple effect that will make its way down to us from the north.

Currently, there are no grey wolves in Colorado, according to the Colorado Wildlife Division. Hence, there is no current debate on whether or not to hunt them. But, as trophy hunting is allowed in Montana and Idaho, the potential for the wolf population to spread into our state decreases.

Moreover, Wyoming recently ended its own legal bout in federal court over the wolf, where the state fought to de-list the grey wolf as a protected species and give it a dual classification. The new classification will allow trophy hunting in the northwest region of Wyoming (near Idaho and Montana), and will list the wolf as a predator throughout the rest of the state, allowing for defensive killing of wolves to protect domestic livestock.

Wyoming has attempted to allow hunting of its wolf population since 2004, but the state’s requests had previously been rejected. Following the most recent hearings, the 10th Circuit federal court held that wolf hunting may be permitted in Wyoming, as long as there is sufficient proof that the hunting will not decrease the state’s wolf population below target levels. So, as soon as state and federal biologists can agree on a number, it is likely that wolf trophy hunting will open in Wyoming as well.

Why does Colorado care about the Wyoming case in particular? Well, the Wyoming case is important because both Colorado and Wyoming are within the 10th Circuit.  Therefore, the decisions reached in that case will apply directly to any future cases brought in Colorado. Also, as the wolf issue continues to unfold, many of the legal battles taking place in Idaho and Montana today will also likely determine the outcome of cases in Colorado in the future. This is somewhat ironic because even though there are no wolves here yet, their fate in Colorado is already being influenced, if not determined by other states.

Colorado is also uniquely situated for the wolf controversy. According to the Colorado Division of Wildlife, wolves used to inhabit every county in the state. Accordingly, the state is geographically ideal for a large wolf population. But, there have not been wolves in the state since 1930. Colorado ranchers essentially wiped the population out in response to the wolves’ predation, or killing of ranch livestock. One of the key factors in the wolf’s history within the state (or lack thereof) if the fact that Colorado has the largest human population of all of the rocky mountain states. Therefore, Colorado will have a greater struggle between the private landholder interests and those of wildlife advocates.

So, while it may seem like Colorado doesn’t yet have a dog in this hunt, it may just be that Colorado’s future relationship with the wolf has already been determined without us fully realizing it.

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    First Draft is a collaborative effort between Beth and Paul Padilla, both equity partners in the firm, and is intended to give you a brief overview of current legal topics and let you know what effects those issues may have in your life.

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