Aurora reviews 2024 oil and gas activity: more wells, quarterly inspections and rising revenue

Jeffrey Moore, manager of the Energy and Environment Division for the City of Aurora, told the Planning & Economic Development Policy Committee on Dec. 11 that Aurora now has 189 wells — up from 59 in 2019 — with 67 wells plugged and a mix of producing, drilling and planned sites concentrated in Ward 2 around I‑70.

"We are continuing to add more wells in the city," Moore said during the annual update, noting maps and graphs staff use to track producing sites, wells in completion and future drilling. He said production levels are starting to rebound after a year‑long dip and presented monthly and daily conversions that show about 47,000 MCF of natural gas per day, roughly 20,000 barrels of oil per day and about 6,000 barrels of produced water per day.

Maria Alvarez, a senior planner, summarized permitting activity: the city processed 11 oil and gas site‑plan applications this year (five well sites and six pipeline applications) and completed its first application under the city’s oil and gas manual tied to Chapter 135 of Aurora City Code. Alvarez said the manual’s two‑phase process and focused environmental review led one complex Phase 2 application to require 48 weeks of review due to water‑delivery and road‑maintenance agreement negotiations.

"All applications have been processed within the agreed time frames as determined by the operator agreement," Alvarez said, adding that quarterly inspection reports and permitting information will be published on the city’s public oil and gas website.

Susan Sherman, senior oil and gas inspector, described the city’s inspection program and enforcement priorities: quarterly production inspections, complaint follow‑ups (three last year), FLIR camera surveys for air emissions and coordination with state agencies. She highlighted the city’s work on orphan‑well plugging and called Aurora’s drinking‑water monitoring program and blowout‑preventer inspections “best in class.”

"The purpose of our oil and gas inspections is to protect our people, the environment, and wildlife," Sherman said.

Assistant City Attorney Dave Scott briefed the committee on legal and policy developments, signaling a recent state change he said affects municipal mineral leasing: "SB 24185 ... provides for a specific exemption from forced pooling for mineral rights held by municipalities," Scott said, adding the change gives cities greater negotiating leverage on leases. He also noted minor amendments to Chapter 135 will go for a first reading at the Dec. 16 city‑council meeting.

Scott described a newly negotiated road maintenance agreement for surface operations permitted under Chapter 135 that raised per‑well payments from roughly $9,000 to $40,000; for an eight‑well pad, he said, that equates to a $320,000 upfront payment to the city to offset roadway impacts.

Moore told the committee that the Energy & Environment Division is fully fee‑funded by operators via inspection and permit fees and that rising income and royalties — nearly $3 million in the last 12 months — could support hiring a second inspector to keep inspections timely.

Committee members asked about data sources and public reporting. Moore said production data come from monthly operator reports filed with the state (operators typically have 45 days after month‑end to file) and that the state ECMC dashboard provides near‑real‑time figures. Alvarez said the city’s site map will include inspection reports within a day of completion and that advisory‑committee meetings are open to the public.

The presentation also covered environmental projects: remediation at the Highway 30 landfill and cooperative cleanup near a former Denver training site, work on easements to preserve access around plugged wells, and calibration of a city air‑quality monitoring network with possible participation in the statewide "Love My Air" rollout next spring.

The committee chair and members praised staff for the program improvements and coordination with state and regional agencies. The presentation closed with staff offering to answer follow‑up questions and provide inspection and permitting details via the city’s public oil and gas web pages.