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ECMC stays Crestone Peak reoccupation plan, asks for Frederick’s final disposition

Colorado Energy and Carbon Management Commission · April 10, 2026

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Summary

The commission placed Crestone Peak Resources’ application to expand an existing pad on hold until the Town of Frederick reaches final disposition. Commissioners cited the town’s outstanding variances and neighborhood proximity; the stay passed 5–0 by roll call.

The Colorado Energy and Carbon Management Commission voted 5–0 on April 8 to stay consideration of Crestone Peak Resources’ oil‑and‑gas development plan (OGDP) for the existing 32HK268 pad until the Town of Frederick issues a final disposition.

The OGDP seeks to expand an active location and add up to 28 new horizontal wells (bringing the pad’s working total to as many as 48 wells) to develop about 3,744 mineral acres across six drilling spacing units. Crestone told the commission the proposal reuses existing infrastructure and would modernize the pad with a tankless design, electrified production and drilling equipment, 32‑foot sound walls during drilling/completions and continuous leak and noise monitoring; Crestone said the plan would plug and abandon 18 legacy wells and reclaim eight locations and estimated a net reduction of about 33 tons per year in VOC emissions after reclamation.

Town of Frederick representatives told the commission the local conditional‑use review is not yet complete and that the application requires three local variances under Frederick’s land‑use code: (1) a location setback variance because an existing dwelling unit lies less than 400 feet from the proposed edge of disturbance where the code requires 1,000 feet (unless informed consent is provided); (2) a setback variance to Philly Lake (Frederick requires 1,000 feet; the proposed edge is ~640 feet); and (3) a variance to local noise limits. Frederick asked ECMC to impose a condition of approval (COA) requiring an updated joint ambient noise survey and point‑of‑compliance adjusted noise limits under ECMC Rule 4‑23 so state and local enforcement are consistent. Matt Sura, special counsel for the Town of Frederick, said the town is still conducting its quasi‑judicial CUP process and that Frederick cannot formally support or oppose ECMC’s action until the town’s public hearing and trustee vote are complete.

ECMC staff read a proposed COA into the record, which requires the operator to submit, and receive approval for, an updated noise mitigation plan via Form 4 sundry before construction. The plan must include a jointly conducted ambient noise survey for A‑ and C‑scale noise (to inform allowable adjustments under Rule 4‑23‑d) and a best‑management practice document specifying the adjusted noise limits for each point of compliance. Ben Frizzell (ECMC planning/permitting manager) told commissioners staff believes the read‑in language is enforceable.

Crestone counsel Ryan McKee said the company and the town had agreed to a jointly requested COA and that Crestone will install permanent sound walls around agreed equipment, conduct two years of continuous sound monitoring after production begins, install four dedicated water‑monitoring wells and provide timely water‑testing data to the towns of Erie and Frederick. Caleb Rausch, Crestone asset‑development engineer, walked commissioners through an alternatives analysis that, Crestone said, favors reoccupying the existing pad because other alternatives would require multiple new pads, additional infrastructure and greater environmental disturbance.

Commissioners focused deliberations on timing and the proximity of the proposed Shores on Plum Creek subdivision. Several commissioners said the decision felt premature until Frederick completed more of its local review; others weighed the OGDP’s modernized design and Crestone’s commitments to mitigation and monitoring. Chair Robbins moved to stay the application until final disposition by the Town of Frederick; the commission approved the stay by roll call vote, 5–0 (Ackerman: yes; Cross: yes; Messner: yes; Oates: yes; Chair Robbins: yes).

What happens next: ECMC recorded the stay; staff will circulate the staff‑and‑party COA language to the parties and the matter will return to ECMC after Frederick reaches final disposition. Crestone acknowledged that if the OGDP changes materially, it will return to ECMC under the applicable sundry/form or modification rules.

Sources: Town of Frederick presentation, Crestone presentations, ECMC staff COA read into the record, ECMC roll‑call vote at April 8, 2026 hearing.