Frederick trustees table oil-and-gas land‑use overhaul after church, developers raise project‑specific concerns

The Frederick Board of Trustees on Oct. 22 voted unanimously to table a proposed land‑use code amendment that would reshape how oil and gas production is permitted in town, giving staff two weeks to incorporate industry comments and meet with a congregation and developers who said the rules would impose severe, immediate economic hardship.

The board’s decision followed a technical presentation by special counsel Matt Sura outlining proposed changes meant to tighten local oversight of oil‑and‑gas operations. The draft would expand public‑notice distances, require conditional‑use review, and add layered setbacks including a 2,000‑foot buffer around schools, hospitals and assisted‑living facilities, a 1,000‑foot standard from residences (with a possible homeowner waiver), and a set of “reverse setbacks” limiting new homes within defined distances of existing well sites unless a site assessment shows the well is safe.

Why it matters: Town staff said the changes respond to safety concerns after 27 reported spills within Frederick over recent years and to increased pressure from development near well sites. Trustees and staff said the amendments are intended to give the town a local permitting tool to evaluate safety, notice and mitigation beyond state‑level documents from the Energy and Carbon Management Commission (ECMC).

Speakers pressed staff on practical impacts. Pastor Brady Thornton of Life Fellowship Church asked the board to pause, saying the congregation and a prospective home‑builder partner are under contract to develop about 40 acres that include multiple plugs and abandoned wells. "If this measure is adopted as spoken to, particularly with regard to plugged and abandoned wells, that it would compel us to have to have essentially our property rendered to 0 value," Pastor Brady said. Steve Gerber, who has worked on the project, told trustees the alternative compliance assessment required by the draft would be "so extensive, so expensive" that landowners would not use it.

Town counsel and staff responded that many recently plugged wells meet current ECMC standards and could qualify for the smaller 50‑by‑100‑foot access zones; they also cited ECMC’s recent financial assurance rulemaking that reduced replugging costs for recent work. "The intent of the 200‑foot setback is to promote safety and, frankly, to promote the landowner doing their due diligence," Sura said, describing three conditions for reduced buffers: locating the well, confirming it is not leaking, and verifying it was plugged to modern standards.

Board action and next steps: Mayor Kreitz and trustees moved to table the item to Nov. 12, 2024, so staff can provide a clean and redlined draft that reflects industry comments and to meet with Life Fellowship about a potential variance process. The motion passed 6–0. Town staff said they will return with clarified language and a redline of changes discussed by industry and community members.

Costs, liabilities and operator offers: During discussion trustees noted staff estimates and public testimony that plugging older wells can be costly; the mayor referred to earlier figures in the packet that estimated roughly $300,000 per well to fully plug and abandon in some circumstances, while Sura cited ECMC rulemaking that referenced $30,000–$40,000 for certain recent replugging work. Town representatives also said they had heard from operators: staff reported KPK was linked to the majority of recent spills ("roughly 90%" in staff comments) and later said KPK told town negotiators it would be willing to plug wells if the town (or other parties) provided funding in the order of "at least $250,000 per site."

What remains unresolved: The tabling preserves the draft ordinance but pushes final action to Nov. 12. Trustees said the board wants to balance public‑safety improvements with practical pathways for existing landowners to develop property and for staff to leverage ECMC materials and operator commitments. Public comment on the issue will remain part of the official record and may be extended at the November meeting.

Quote: "We want responsible oil and gas production. We require it," Mayor Kreitz said. "But a little bit more time to understand this property and if there are some concessions to be made or waivers to be agreed upon, I think is appropriate."

The board paused formal action to allow staff to produce a redline and a clean version of the ordinance and encouraged Life Fellowship and operators to work with town staff on potential variances or funding arrangements before the Nov. 12 hearing.