DENVER, April 11, 2016 /PRNewswire/ -- Heartland Energy Development Corporation (HEDC) today announced it plans to appeal a Denver District court's April 8, 2016 reversal of its earlier decision in HEDC's favor. In its 2013 decision, after a seven-day trial, the court ruled that HEDC's joint venture partnerships are not securities under Colorado law. In 2009, the Colorado Securities Commissioner filed the case against HEDC and two other companies, despite previous contrary decisions by a Texas federal district court on similar issues, the Colorado Securities Board and a jury.
In its earlier ruling against the Commissioner, the trial court found among other things that the joint venture partners possessed "significant knowledge and experience in business affairs" sufficient to make business decisions relating to the partnerships' oil and gas business. This factor is stated in numerous federal and other states' cases.
"HEDC's partners are business savvy people. Many have previously invested in oil and gas partnerships," HEDC attorney Tom Tenenbaum said. "Their ability to make knowledgeable business decisions is clearly shown on the record of this case in many ways, including the recordings of the numerous partnership business meetings, where we hear first-hand the partners' discussions and decision making process." Tenenbaum noted that HEDC's partners include Motorola, Goldman Sachs, CitiBank and other high-level business executives.
After an appeal by the Commissioner in 2014, the Colorado Court of Appeals held that the trial court should expand its review from whether the partners possessed sufficient business knowledge and experience generally, but specifically as to the oil and gas business. Based on the same evidentiary factual record from which the trial court previously held the partnerships not to be securities, it now determined that the partners did not meet the "industry specific" criterion set by the Court of Appeals.
"This decision could further hamper an already badly hammered oil and gas industry by restricting its access to capital by adding even more government regulations," Tenenbaum said. "This is bad for small business overall."
About Heartland Energy Development Corporation
Heartland Energy Development Corporation is an independent oil and gas company specializing in the exploration and production of domestic oil and natural gas fields.
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SOURCE Heartland Energy Development Corporation