Town of Erie demands conditions for approval of DRACO OGDP permit

The Energy and Carbon Management Commission (ECMC) convened on March 26, 2025, to discuss the proposed Development Plan for the DRACO Oil and Gas Development Project (OGDP) in Colorado. The meeting highlighted significant concerns raised by the town of Erie regarding the potential impacts of the project on local residents and the environment.

Erie officials emphasized three critical conditions for the approval of the DRACO OGDP. First, they requested that the project be contingent upon the execution of access agreements, a transportation impact analysis, and other necessary local government permits. This requirement aims to ensure compliance and provide a means of enforcement beyond litigation, which can be lengthy and costly.

Second, the town insisted that provisions from a previously abandoned well soil gas survey and monitoring agreement be incorporated into the OGDP. This inclusion is vital for maintaining oversight and ensuring that the project adheres to safety standards.

The most pressing concern raised was the need for a strict deadline for drilling and pre-production activities, proposed to be no later than October 15, 2027. This date is crucial as it aligns with the development agreement for the nearby Westerly neighborhood, where residential building units (RBUs) are already under construction. Erie officials argued that without this condition, the commission should evaluate the project's impacts based on the anticipated 66 RBUs within 2,000 feet of the DRACO site, rather than the current five.

The discussions also touched on the potential risks associated with the untested five-mile lateral drilling techniques proposed for the DRACO site. Erie representatives expressed concerns about the safety and integrity of these operations, especially given their proximity to residential areas. They referenced past issues with similar drilling techniques that resulted in environmental and safety concerns, urging the commission to consider the implications of rushing such a significant project.

In response to questions from commissioners, Erie officials clarified that while the town has civil authority to enforce agreements, they lack land use authority in this unincorporated area, making state recognition of these agreements essential for effective oversight.

The meeting underscored the tension between energy development and community safety, with Erie officials advocating for stringent conditions to protect public health and welfare. As the commission deliberates on the DRACO OGDP, the outcome will have lasting implications for both the local community and the broader regulatory landscape for oil and gas development in Colorado. The next steps will involve further evaluation of the proposed conditions and their potential impact on the approval process.