Erie OK's controversial Draco mineral rights deal
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Erie Town Council narrowly approved a controversial deal Tuesday to sell mineral rights tied to the planned Draco oil and gas project, despite months of resident opposition.
Why it matters: Town residents have expressed frustration not only with the decision itself but with what they see as a rushed process marked by closed-door negotiations and potential conflicts of interest.
Driving the news: Erie Town Council approved the agreement 4–3 Tuesday night, just one week after it failed on a 3–3 vote when one councilmember was absent.
- The turnaround came after Councilmember Brian O'Connor, who initially opposed the deal, requested reconsideration and switched his vote, saying he heard from more residents were in favor.
What's in it: The deal with SM Energy could bring the town more than $23 million in cash and future revenue share and 160 acres of land on County Line Road.
- SM Energy also agreed to plug and abandon 17 wells.
Context: Colorado regulators approved the Draco project last year despite objections from Erie residents who raised health and safety concerns.
- The project includes 26 wells drilled from a pad in unincorporated Weld County, with drilling that will run beneath portions of Erie and unincorporated Boulder County.
Reality check: Most councilmembers argued the state approval meant Draco would move forward regardless of whether Erie sold its mineral rights.
The other side: Councilmember Emily Baer said opponents were never trying to stop Draco outright.
- Instead, she said, selling mineral rights would reduce the town's leverage to raise concerns during the pre-well review process.
- When supporters cited the commitment to plug 17 wells as a benefit, Baer called it a "gross tactic," arguing the work should have happened regardless.
Between the lines: Residents also questioned how the agreement was negotiated, raising concerns about transparency and potential conflicts of interest.
- Critics called out the town for heavily relying on executive sessions to discuss the deal, limiting public scrutiny.
- Some questioned the hiring of consultant Matt Owens, who was hired without a formal request-for-proposals process and and had ties with Civitas Resources, which recently merged with SM Energy Co.
What we're watching: More than 100 residents have signed a letter asking the Colorado Attorney General's Office to investigate the negotiations.
- The letter's author told YellowScene Magazine the AG's Office had confirmed it was officially reviewing the matter.