A decision by Colorado state regulators to halt two multiwell oil and gas proposals highlighted the growing impact of Denver-area antidrilling groups. These groups have mobilized over the past decade in response to significant fossil fuel developments near suburban neighborhoods.
In November, Colorado’s Energy & Carbon Management Commission rejected a request by Extraction Oil & Gas Inc. to construct a 26-well oil facility, known as the Draco pad, in Weld County. The company intended to use this platform to drill under the town of Erie, which opposes oil and gas extraction. More details can be found in the original article.
In early January, the commission also denied an application by a smaller operator for a 20-well pad southeast of Denver. This project, called Secret Stash, was planned on a former bombing range designated for additional wells.
Both developments would have been within a mile of expanding suburbs surrounding Denver. Blocking these projects marks a significant win for community organizations lobbying to move drilling operations away from residential areas.
Randy Willard, a longtime Aurora resident, expressed concerns at a January hearing about the cumulative impact of the Secret Stash proposal, adding that it would significantly affect the area.
Both decisions bring to light the difficulties energy companies face in accessing profitable shale deposits beneath Colorado’s Front Range communities. A 2019 Colorado law mandates that health, safety, and environmental concerns take precedence over industry profits. For more information on this legislation, see Senate Bill 181.
These regulatory changes are affecting the market value of oil and gas companies, with industry analysts noting investor hesitancy. Civitas Resources Inc., the parent company of Extraction, is contemplating selling its assets in the Denver-Julesburg basin, according to a Bloomberg News report.
The commission requested further details from GMT Exploration Co. LLC on the Secret Stash project’s potential air emissions and traffic impact. They asked GMT to revise its application for better clarity on environmental effects.
In Erie, state regulators urged Extraction Oil & Gas Inc. to consider an alternative site for the Draco pad, which already hosts numerous wells and landfills. Commissioner Brett Ackerman emphasized the challenges related to multijurisdictional issues but acknowledged the proposal included best practices.
The commission unanimously put the plan on hold after extensive hearings, emphasizing the need for a full analysis of alternative sites, such as Redtail Ranch, a heavily contaminated area.
Community reactions were mixed, with concerns about merely relocating industrial operations to other neighborhoods. Residents like Christiaan van Woudenberg are prepared to continue opposing the project.
Noise and pollution from earlier drilling at Redtail Ranch in 2017 led to numerous complaints from residents. Extraction’s application mentioned using electric equipment to minimize emissions, but concerns remain about its proximity to planned residential areas.
Extraction argued that alternative sites like Redtail Ranch were unfeasible, despite being farther from homes. The Redtail Ranch site has been a source of numerous complaints and would need rezoning and cleanup due to existing contaminants.
Uncertainty persists regarding rezoning and drilling application procedures at Redtail Ranch. Erie’s environmental services director, David Frank, stated that further analysis is necessary to ensure resident protection.
The Erie Town Council previously rejected a development proposal for the Redtail Ranch site, citing safety and contamination issues. Community opposition remains strong, led by residents like Sami Carroll, who continue to advocate against the Draco pad.
Original Story at insideclimatenews.org