Erie Town Council Special Meeting on Potential Sale of Mineral Rights - April 21, 2026

On April 21, 2026, the Erie Town Council held a special meeting at 1:00 PM to discuss the potential sale of the town's mineral rights within the Draco drilling and spacing unit. The meeting was informational only; no decisions were made. Staff presented the status of ongoing negotiations with Civitas/SM Energy, and over 20 members of the public provided comments. The majority of speakers opposed selling the mineral rights, citing health, safety, environmental, and transparency concerns, while a minority supported the deal for its potential revenue and additional protections.

Presentation

• Staff reported that the Draco pad (26 wells) was approved by the Colorado Energy and Carbon Management Commission (ECMC) in March 2025. The pad is located north of the landfill, outside Erie's boundaries, but wells will extend horizontally up to five miles under Erie neighborhoods, targeting depths between 7,500 and 8,000 feet.
• A 2024 state law exempts local government-owned minerals from forced pooling. Erie owns mineral rights under roughly 3.5% of the Draco spacing unit (some previously leased, some unleached). If the town does not sell, unleached minerals cannot be force-pooled, but the operator must avoid them—the practical implications are untested.
• Proposed terms (still under negotiation) include: plugging and abandoning 16–17 additional wells (expedited), monthly on-site inspections by the town, additional compensation comprising production revenue, a cash payment of approximately $4.5 million, and three parcels of surface land along County Line Road.
• Any final agreement would require a public hearing and council vote. No agreement is yet finalized.

Council Questions

• Councilmembers asked about the origin of negotiations (Alameda Minerals contact), the rationale for selling vs. leasing, the precise location of town minerals, and the ability of the operator to drill through or around town-owned mineral interests.
• Staff clarified that the town's unleached minerals are a small percentage but could be strategically located; the operator could potentially adjust well paths or casing to avoid them, but that is speculative until formal drilling applications are filed.
• The expedited timeline for Draco (pre-production completion by May 2028, target October 2027) may create pressure but was not confirmed to be directly affected by the mineral rights decision.

Public Comments & Testimony

• More than 20 speakers signed up; each was allotted two minutes. Positions were broadly split, with a majority opposed to selling the mineral rights.
• Opposition arguments included: health and safety risks (air quality, water contamination, subsidence from abandoned mines), conflicts of interest (Alameda Minerals' CEO Matt Owens was former COO of Civitas), lack of transparency and competitive bidding, and the view that selling would undermine Erie's leverage and extend the town's relationship with the oil and gas industry. Several speakers urged the council to use the new law to say no.
• Notable speakers: Carol Campbell (former EPA senior executive) recommended no action or leasing vs. selling, citing insufficient comparison of alternatives. Mike Foote (former state senator) highlighted the hard-fought local control provisions and urged council to follow resident wishes and reject the sale. Emily Brecht raised concerns about the council's conflicting statements on how the consultant was introduced. Jennifer Ott and James Floyd spoke in favor, arguing the town would gain value and protections from a project that is already approved.
• Support arguments included: the deal offers substantial revenue (~$63–75 million in land value per one speaker), additional safety measures, and the opportunity to control surface parcels. Supporters argued that not selling would mean Erie receives nothing while the drilling proceeds anyway.

Council Closing Remarks

• Council members expressed appreciation for public input and acknowledged the community's deep concerns. Several highlighted the need for transparency, a complete map of town minerals, and a robust public review before any vote.
• Councilmember Baer stated her opposition to the sale, emphasizing that health and safety should not be compromised for revenue and that the town's new legal authority provides leverage to limit Draco's reach. She noted that the conditions of approval (air monitoring, well plugging) are independent of the mineral rights decision.
• Councilmember Hoback raised questions about subsurface trespass, the lack of an RFP for consultants, and potential conflicts of interest. He argued that the town's mineral rights could significantly impair Draco's ability to drill the full approved area, contrary to the narrative that the deal has no effect on development.
• Councilmember Mortalero acknowledged health risks but supported continued negotiations as a way to secure additional protections and compensation for a project that will proceed regardless.
• Mayor Moore reiterated that no deal has been reached, that the town must protect its negotiating position, and that the decision ultimately lies with the council after full public disclosure. He compared the situation to the landfill annexation, which yielded ongoing revenue for the town.

Key Outcomes

• No votes or binding decisions were made. The meeting was strictly informational.
• The council will continue negotiations; if an agreement in principle is reached, a public hearing will be scheduled with full details, maps, and terms shared in advance.
• The public will have additional opportunities to comment before any vote. The council committed to transparency in that future meeting.
• The meeting adjourned with no further action.