A group in Erie is gathering signatures to force a resident vote on the Town Council’s controversial agreement to sell underground minerals to SM Energy, the oil and gas company behind a plan to drill new wells just outside town limits.
But even if the petition succeeds, town officials say it would not stop the company’s planned Draco well pad.
Petition organizers have until Aug. 7 — 45 days after the council approved the SM Energy deal — to gather roughly 1,400 signatures to place a measure in front of Erie voters.
Voters could then either uphold the council’s decision or reject the mineral rights sale entirely, likely through a special election in December.Town officials say an election would determine only whether Erie moves forward with selling its mineral rights to SM Energy, not whether the company can move forward with the Draco Pad.
The Draco project, planned to sit just outside Erie’s boundaries in Weld County, received approval from the Colorado Energy and Carbon Management Commission last year. If Erie voters were to ultimately reject the mineral rights sale, SM Energy would only need to amend its drilling plan to avoid the town’s minerals.
“The petition really would stop the sale of the mineral rights. It really will do nothing to stop Draco,” said Erie Mayor Pro Tem Brandon Bell, who voted in favor of the deal.
Bell said his concern, if the petition does gather enough signatures, is that SM Energy would walk away from the deal before an election happens. The company faces a deadline from the state commission that Draco’s pre-production phase, including construction and drilling, be completed by May 2028.
“I’m a little worried that if they gather enough signatures this won’t even make it to a vote, or at least the vote will be a moot point,” Bell said. “We have a timeline we have to follow based on the contract. If the petition prevents that, then SM could back out.”
Town officials say it is unlikely the measure could meet the timeline to appear on the November ballot.
“It is a very, very slim possibility all of the pieces and parts could be completed in time to sit on the regular election,” town spokesperson Gabi Rae said.
Petition organizer points to transparency concern
Petition organizer Emily Brecht did not disclose her estimate for how many signatures the petition has gathered so far, but said she is “very optimistic” that the issue will make it to a ballot.
For some residents, opposition to the SM Energy deal has appeared driven by a general animosity toward oil and gas, with concerns about how drilling might impact a community’s health and safety. Others have taken issue with how the mineral rights deal came about, including more than one discussion held in executive session, a type of meeting closed to the public.
“I knew many people did not feel heard when the town council passed the ordinance, but I did not know just how popular this issue would be with the public before we started gathering signatures,” Brecht told the Daily Camera in an email.
“Residents have repeatedly brought up the feeling that the deal was put together under a cloak of secrecy,” she added.
Councilmember Emily Baer, who in June opposed the deal, said a vote would give residents a chance to “take some of the power back.”
“If enough signatures are gathered and a vote is held on whether or not to sell the town’s mineral rights, then voters will have a meaningful say in the decision,” Baer said in an email. “I think that is the most important part. I heard repeatedly from residents that they felt the sale of the mineral rights was unclear, questionable, secretive even.”
SM Energy on a deadline
Erie Mayor Andrew Moore said some negotiations “by definition have to have a level of secrecy around them until the deal is done.”
“I get that people wanted to be a part of the negotiations. But that’s just not the way life works, not to get the best deal,” Moore told the Camera.
The Town Council voted 4-3 in June to approve the agreement with SM Energy, which would sell about 180 acres of mineral rights — roughly 4.9% of the total Draco drilling area, according to the town.
Without Erie agreeing to sell its mineral rights, SM Energy could still move forward with a drilling plan showing how it would avoid the town-owned minerals. Moore said he wanted to negotiate a deal before SM Energy chose that option.
“The bottom line is we could get nothing from Draco, or we could get something,” Moore said.
Under the agreement approved in June, Erie could receive more than $23 million in cash and future revenue, including a $4.5 million upfront payment and a 3% ongoing royalty for the Draco project, according to town information. The town has estimated that royalty payments could exceed $19 million over time.
The agreement also would transfer roughly 160 acres of land along County Line Road to the town and allow Erie staff to conduct inspections at the Draco well pad.
“How do you make the best of a situation that you cannot change?” Moore said. “In this case, we cannot change the fact that Draco is going to be drilled. The risk is, if for whatever reason the deal is off the table, Erie will have to live with Draco and get nothing.”
ECMC spokesperson John Brown said a hearing scheduled for Sept. 24 and Sept. 25 with the state commission would review SM Energy’s drilling plan.