Erie oil drilling plans change after Colorado residents push back; $17 million lawsuit possible

A controversial oil and gas project in Colorado is being redrawn after residents pushed back against plans to drill underneath hundreds of Erie homes, but the fight could now move to the courtroom.

SM Energy initially planned to drill wells miles underneath parts of Erie as part of the Draco project. But SM Energy backed out of the multimillion-dollar mineral rights deal after residents worked to put the agreement to a ballot vote.

The company is now changing its plans, removing some neighborhoods from the drilling area and moving planned operations to a nearby landfill. The town estimates that the change means an estimated 1,400 homes will no longer be included in the area planned for drilling underneath.

For Erie resident Emily Brecht, who helped organize opposition to the mineral rights sale, the change is a major victory.

"We shouldn't be beholden to a giant oil company," Brecht said.

Brecht pointed to Thomas Reservoir and nearby open space, along with neighborhoods to the west, that she says will no longer be included in the drilling plans.

"Thomas Reservoir and open space, it will not be fracked anymore, as well as over there, back behind us, and neighborhoods all the way to the west," Brecht said.

The debate over the Draco oil project has been going on for years. A new Colorado law, however, changed the situation for Erie by preventing the town from being forced to sell its mineral rights.

This summer, Brecht organized a petition seeking to put the proposed sale to a vote.

"I care because I live here. I care because it was the right thing to do," she said.

With the sale in jeopardy, SM Energy pulled out.

The company is now redrawing its drilling map, removing the area covering the estimated 1,400 homes and shifting its plans to a nearby landfill.

"You know, this was absolutely, I think, like David and Goliath people have said, but in that story, David wins," Brecht said.

But the dispute may not be over as Erie received a $17 million claim from investors who argue residents should not have been able to put the mineral rights sale to a vote.

Erie Mayor Andrew Moore told the town's environmental director during town council meeting last week said, "We basically have been notified, in a $17 million potential lawsuit."

Now, Erie leaders are looking at ways to fight the claim at the state level by speaking with state regulators.

Moore added, "How do you see this playing out and how can we best fight this because now I'm mad, right? We're not getting anything. So, how are we going to stop this thing?"

For Brecht, the fight is far from over.

"The town absolutely should keep fighting," she said.

"We live in a democracy, and we have power."

SM Energy and the attorneys who sent the $17 million claim were contacted for comment but had not responded.