Erie Town Council Meeting on Mineral Rights Sale Reconsideration - June 23, 2026
Erie Town Council Meeting on Mineral Rights Sale Reconsideration - June 23, 2026
The Erie Town Council met on June 23, 2026, to reconsider the sale of the town's mineral rights to SM Energy (via 7N LLC) after a 3-3 tie vote on June 16. The meeting also included a proclamation for America's 250th and Colorado's 150th anniversaries, and approval of a duplex special review use. Public comment was extensive, with residents divided on the mineral rights deal.
Consent Calendar
- Approved the May 26, 2026, town council meeting minutes.
- Proclamation of Parks and Recreation Month.
- Resolution approving an agreement for Asphalt Maintenance Services with Western Plains Construction.
- Resolution approving the first amendment to the construction contract with Good Land Construction for downtown infrastructure improvements.
Public Comments & Testimony
Over 40 residents spoke, with many expressing concerns about the process and transparency of the mineral rights deal. Key positions included:
- Opponents argued that the town's procurement policy was violated, the consultant Matthew Owens of Alameda Minerals had a conflict of interest (former Civitas executive), and the deal undervalued the town's leverage. They cited health and safety risks, the loss of legal protection under Colorado Senate Bill 24-185 (which prevents forced pooling of municipal minerals), and the lack of competitive bidding. Several speakers noted that the immediate cash payment ($4.5 million) was nearly equal to the consultant's fee ($4.5 million cap), leaving the town with little net cash. Many urged the council to delay the vote, conduct a competitive process, or put the issue to a public vote.
- Supporters emphasized that the Draco pad is already approved and will be drilled regardless. They argued the deal provides significant benefits: 17 additional wells plugged and abandoned, $4.5 million upfront cash, 3% royalty stream, 158 acres of land near the airport (valued for future development), and on-site inspection rights. Supporters cited the town's fiduciary responsibility and the need to secure tangible benefits rather than holding onto mineral rights that may become worthless. Some residents reported intimidation and threats from opponents, and a few expressed support for the deal after independent analysis.
Discussion Items
- Reconsideration of Mineral Rights Sale (Ordinance 028-2026): Councilmember O'Connor moved to reconsider the June 16 vote, stating he learned that some supporters were intimidated and did not speak, and that many residents requested reconsideration. He clarified that exaggerated numbers from the consultant's LinkedIn post were not accurate. The motion to reconsider passed 4-3 (O'Connor, Mortalero, Bell, Moore in favor; Baer, Hoback, Pessamarelli opposed).
- Councilmember Statements: Councilmember Baer opposed the deal, citing the termination clause that would prevent the town from objecting to Draco before production, and the history of the Crestone operator agreement. Councilmember Mortalero supported, arguing Draco is inevitable and the deal provides health and safety benefits (plugging old wells) and on-site monitoring. Councilmember Hoback opposed, noting the valuation discrepancies and that the town's procurement process was not followed. Councilmember O'Connor supported, emphasizing the land value and oversight. Councilmember Pessamarelli opposed, citing lack of transparency and fiduciary safeguards. Mayor Pro Tem Bell supported, noting that the town received many emails in favor and that the deal was vastly improved from initial offers. Mayor Moore supported, stating his fiduciary duty and that the land is the long-term value.
- Erie Junction Duplex Special Review Use (Item 2026-370): Staff presented a request for 20 duplex units on 2.73 acres zoned Old Town Residential. The Planning Commission unanimously recommended approval. The applicant noted the project is market-rate, with units expected north of $700,000. The council approved the resolution unanimously.
Key Outcomes
- Reconsideration of Mineral Rights Sale: Motion to reconsider passed 4-3. The ordinance authorizing the sale of minerals to 7N LLC, accepting conveyance of real property, and approving agreements was approved by a 4-3 vote (same split).
- Erie Junction Duplex Special Review Use: Approved unanimously.
- Proclamation: Recognized July 2026 as America 250, Colorado 150 celebration.
- Council Reports: Councilmember Baer committed to a working group on state policy for legacy well plugging. The council will reconvene on July 14 after a break.
- Executive Session: The council voted to enter executive session to discuss legal advice on construction defects.
Meeting Transcript
Order the town council meeting on June 23rd, 2026. Will you please please rise and join me in the Pledge of Allegiance? And to the Republic for which it stands. One nation under God, indivisible with liberty and justice for all. Okay, will the town clerk please take roll? Mayor Pro Tem Bell. Here. Commissioner Council Member Fair. Present. Councilmember Mortalero. Here. Council Member O'Connor. Present. Councilmember Pessimarelli. Present. Councilmember Hoback. Here. And Mayor Moore. Here. Mayor, you have a quorum. All right. Thank you. All right. Do we have a motion to approve the agenda tonight? So move. Second. A motion is second. All in favor, say aye. Aye. Aye. All opposed, say no. Motion carries. We have an agenda. We've got uh number of items on the consent agenda, so bear with me as I read through these. Uh the first item is 2026 408, approval of the May 26, 2026 town council meeting minutes. Item 2026 405, proclamation of parks and recreation month, sponsored by Mayor Potem Bell and Council Member O'Connor. Item number 2026 223, a resolution of the town council of the town of Erie approving the agreement for services with Western Plains Construction for Asphalt Maintenance Services. Item 2026 364, resolution of the town council of town of Erie approving the first amendment to the construction contract with good land construction incorporated for the downtown infrastructure approvements. Seepage rehabilitation investigation analysis and design. So move. Second. Motion second. Any further discussion? All in favor say aye. Aye. All opposed say no. All right, we'll go into public comment, and I know there is um a lot of public comment here tonight. Um because so many people have signed up. We're reducing uh the time uh to two minutes per person. Um please remember that public comment is not an interactive question and answer forum, but rather a time for you to state your comments on a particular item or issue.
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