Colorado's Erie Town Council to reconsider mineral rights sale tied to proposed Draco Pad

On Tuesday, the Erie Town Council is set to vote for a second time on whether to sell the town's remaining mineral rights tied to a major oil and gas project that would stretch from Weld County into Boulder County. The reconsideration comes just five days after the proposal failed in a tie vote.

The company behind the project, SM Energy, plans to develop the Draco Pad, which, if built, would be one of the largest oil and gas developments in Colorado. The state approved the Draco Pad last year, but Colorado law gives Erie the final say over its remaining mineral rights associated with the project.

The initial vote failed after council members split evenly. Last Friday, Erie Town Councilmember Brian O'Connor requested that the issue be reconsidered, sending it back to the council for another vote.

Some residents who spoke before last week's vote said they're concerned about potential impacts on property values, the environment and public health.

While he was unable to attend last week's vote, Erie Town Councilmember Daniel Hoback said he plans to vote against the sale.

When asked for his reaction to the town's reconsideration of the vote, Hoback said, "Discouraged, discouraged. I know how our residents feel about it." 

"They're tired of the fracking, they're tired of oil and gas in the town," said Hoback. 

The proposed agreement would give Erie 158 acres of land, the city estimates around $20 million over the next 10 to 20 years, the plugging of some existing wells and inspection access related to the project.

Councilmember Brandon Bell said approving the deal would allow the town to receive compensation for assets it already owns.

"Literally this is a case where we have an asset in this area, we can get something back for it, or we can get nothing, and really, if we, if this deal ends in the same way it did Tuesday night, those assets are really worthless," Bell said.

Bell also said residents who support the sale were less vocal before the initial vote because they believed the measure would pass.

"I think many of them just thought this was going to go through, and so I don't think they were as vocal, and as soon as the vote failed, there were many of them that emailed to us," Bell said, "I was in support of the measure, so I'm, I'm glad to see it come back."

Another point of concern for some residents is the consultant that was hired to help broker this possible sale for Erie, a former Civitas (now SM Energy) executive. While Moore says this unique perspective helped create more benefits for the town, he also recognized potential frustration from residents about the process in the consultant's sole-source hiring process. Moore says there were paperwork issues and is working to address them.

Questions have also been raised about how much discussion on this issue took place behind closed doors in executive session.

Residents and Hoback expressed concerns about the process and shared that they believe it was not a complete representation of what was being discussed. Residents say they have raised concerns with the Colorado Attorney General's office. Hoback said he believes residents need more time to understand the options.

Erie Mayor Andrew Moore said the executive sessions followed all applicable laws and that nothing improper had been brought to the town's attention.

The Erie Town Council is scheduled to vote on the proposal on Tuesday.