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Erie council hires broker to value municipal mineral rights as drilling plans move forward
Summary
Council approved a contingency professional services agreement with Alameda Mineral Advisors to solicit offers and report market value for the town's mineral rights. The 7% contingency contract passed 4–3; no sale or lease was authorized by the vote.
Erie, Colo. — The Erie Town Council voted 4–3 on Dec. 16 to hire Alameda Mineral Advisors to solicit offers and advise the town on the market value of its mineral rights in advance of possible oil‑and‑gas spacing and production actions in the area.
The professional services agreement is contingency‑based: Alameda will be paid an agreed percentage (approximately 7%) of aggregate value only if the town accepts offers and a transaction closes. Town staff emphasized the vote authorizes evaluation and marketing only; any sale or lease would require separate council approval and, where appropriate, public hearings.
The motion to hire the broker came amid divided council sentiment. Supporters argued the town has a fiduciary duty to learn the market value of its mineral assets in a context where drilling and spacing actions (the DRACO/Drake proposals were discussed previously) could effectively allow production on town‑adjacent lands. "If Draco is going to be drilled, not getting anything for our minerals is a lose‑lose proposition," one council member said, urging the town to gather market information before decisions are forced.
Opponents said the measure risks eroding public intent and community opposition to new drilling. Several council members and public speakers said they do not want the town to proactively sell or lease minerals and emphasized resident opposition to expanded oil and gas development within town boundaries.
Staff told council the new 2024 state law (Senate Bill 24‑185) modifies forced‑pooling rules in ways that can protect local governments that have rejected an offer to lease, but officials said the statute has not yet been tested in court and that the legal landscape is partly uncharted.
The roll call for the Alameda Minerals agreement was recorded as 4–3 in favor (Council members O'Connor, Mortillero, Mayor Pro Tem and Mayor Moore voted yes; Council members Hoback, Baer and Pesa Morelli voted no). Staff said the results of Alameda’s solicitation and any offers will come back to council for public discussion before any disposition is finalized.
