The Colorado Energy and Carbon Management Commission voted unanimously on Nov. 15 to indefinitely halt the proposed Draco Pad oil and gas project. The plan would have allowed a fracking well pad to be built just outside the Town of Erie, less than half a mile from a residential neighborhood, with drilling extending 2.5 miles horizontally into Boulder County. The decision requires Extraction Oil & Gas, the developer, to evaluate an alternative location.
The five-member commission’s decision followed two public hearings where commissioners heard comments — mainly from residents opposed to the project — and reviewed presentations from Extraction Oil & Gas and Weld County, which had approved the project.
Commissioners ultimately decided Extraction had not sufficiently demonstrated that the impacts of the Draco Pad — particularly its close proximity to residential areas — were unavoidable.
Under state rules, the commission evaluates drilling proposals using the “mitigation hierarchy,” a framework prioritizing avoiding harm first, reducing it second, and addressing any remaining unavoidable damage as a final step. Extraction had considered another potential site where no homes would be within 2,000 feet of the well pad, adhering to a state restriction. However, the company rejected that option, citing concerns about securing permits.
“It makes sense to me, and seems necessary and reasonable, to ask the operator to work further with the Town [of Erie] on [the alternate location] in order to appropriately apply the mitigation hierarchy,” Commissioner Brett Ackerman said.
Advocates applaud commission’s decision to stay application
The Draco Pad, proposed by Extraction Oil & Gas, a subsidiary of Civitas Resources, aimed to drill 26 wellbores to depths of 8,000 feet beneath the town of Erie and extend into Boulder County. However, the proposed well pad’s location at the Crestone Peak Resources Hub — at the intersection of County Roads 6 and 7 in unincorporated Weld County — placed it outside the jurisdiction of both the town of Erie and Boulder County. Approved by Weld County in February, the project required state approval before construction could begin. In response, grassroots opposition emerged, driven by concerned residents.
Erie’s Westerly neighborhood lies within 2,000 feet of the proposed well pad. While the neighborhood currently has only five homes within that range, the number would grow to 77 once all planned homes are built. Also within 2,000 feet would be a neighborhood park, part of a regional trail, and property reserved for a future St. Vrain Valley district school.
The State of Colorado and the Town of Erie prohibit drilling within 2,000 feet of occupied homes, while Weld County’s setback is only 500 feet. Because the project requires state approval, the 2,000-foot setback rule still applies. To circumvent this restriction, Extraction obtained “informed consent” signatures from eight residents at three addresses along County Road 7 — none of whom lived in Westerly. According to Jason Maxey, Weld County’s director of oil and gas, Westerly homes were not visible on the maps used in the county’s 2,000-foot analysis.
At a Nov. 13 hearing, Boulder County Commissioner Ashley Stolzmann voiced concerns about air pollution, citing research identifying oil and gas production in Weld County as a leading contributor to ground-level ozone pollution in the Front Range. She also highlighted risks associated with a leaky legacy well in unincorporated Boulder County.
Other public concerns included adverse health effects, extensive water use during drought conditions, interactions with Erie’s leaking and improperly sealed legacy wells, and decreased property values. Research indicates that living near fracking sites is associated with increased risks of asthma, preterm births, decreased birth weight and cancer.
In response, Civitas argued that the Draco Pad would benefit Erie by removing oil tanks, paving County Road 6 and sealing 22 legacy wells — many located in populated areas. Extraction also plans to use two drilling units to expedite the process and use some recycled water. Through the permitting process, Extraction highlighted advantages of the proposed well pad location, including its capacity to support two electric drills and its proximity to a landfill.
Advocates against the proposal applauded the commission’s decision to stay the application.
“We are deeply relieved and grateful that the Colorado Energy and Carbon Management Commission listened to the voices of Erie residents and issued a stay on the Draco oil and gas development project,” Sami Carroll, founder of the Flatiron Meadows Oil & Gas Monitoring Group, said in a press release.
Commissioners push for further review of alternative site
The portion of the application that drew the most attention from commissioners was the alternative site analysis. Extraction was required to consider alternative locations as part of its application but did not fully evaluate them, as it was not mandatory. One potential site, Alternative Site #4, stood out to commissioners. The location, zoned for agriculture-residential use, would need rezoning for industrial use. While no homes are within 2,000 feet of the site, a neighborhood lies just beyond that range. Relocating the well pad to this site would place it within Erie’s jurisdiction, granting the town more regulatory authority over the project.
“I would be in favor of staying and requiring an additional analysis on alternative four,” said the commission’s chair, Jeff Robbins, noting that the site would allow Erie residents, the people most affected, a greater voice in the project.
Extraction claims Alternative Site #4 is not viable due to an unclear permitting path. David Frank, Erie’s director of environmental services, said he had initiated discussions with Extraction about permitting, but the company never pursued the opportunity. There was also debate over the site’s designation as a superfund site and Erie’s code prohibiting oil and gas operations within 500 feet of surface water.
Commissioner Michael Cross appeared to be the sole commissioner considering immediate approval of the proposal. He expressed concerns about delays if the Draco Pad application were stayed for further analysis, warning that additional homes in Westerly could complicate matters and that the three-year agreement between Erie, Southern Land (Westerly’s developer) and Extraction could expire. To reduce the impact on residents, Southern Land had agreed not to occupy homes within 2,000 feet for three years if Extraction ensures drilling is finished in the same timeframe.
With a prolonged delay, “the proposed location — which I do believe avoids to the extent possible, and what it can’t avoid, does sufficiently minimize and mitigate adverse impacts — will no longer be available,” he said.
Cross said he wanted an expedited alternative site analysis to ensure the original location remains a fallback option, adding that the commission should not “eliminate a very good application.”
“I think we’ve come to the right conclusion for today,” Commissioner Robbins said once the motion to stay the proposal had passed. “We look forward to working with folks on this matter in the future.”
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