Draco Well Pad proposal approved 4-1

The ECMC voted in favor of the plan after an Alternative Location Analysis showed other sites were infeasible

The Draco Well Pad proposal from Civitas Resources, Inc. was approved by the Colorado Energy & Carbon Management Commission (ECMC) 4-1 during the March 26 hearing, allowing the pad to be developed at the original site in unincorporated Weld County.

The ECMC met to hear and discuss the results of Civitas Resources’ Alternative Location Analysis, which the ECMC moved to require during a November 2024 hearing, specifically requesting that the applicant further investigate the viability of Alternative Location 4 within the Town of Erie.

However, an entirely coincidental but significant change near Alternative Location 4 created additional complications.

The Neuhauser landfill, located downgradient from Alternative Location 4, was declared a Superfund Site after two 55-gallon toxic drums were found there in 2017. The Colorado Department of Public Health & Environment (CDPHE) recently redesignated the landfill to include an environmental use restriction notice to prevent disruption in the area that could create health and environmental risks, said Tessa Sorensen, energy liaison for CDPHE.

Though the area outside the landfill is exempted, any stormwater or runoff flowing into the restricted area would be a violation. Alternative Location 4 was designed to divert runoff away from the landfill, but the proximity and natural downward gradient toward the landfill mean there is no way to ensure that runoff wouldn’t flow into the restricted area, according to a prehearing Drainage Memo from Civitas Resources.

The hearing then moved to witness David Frank, environmental director for the Town of Erie, which is the proximate local government for the originally proposed Draco Well Pad site. Frank reiterated the Town’s stance on the Draco Well Pad—namely, the 5-mile laterals that would be used to drill horizontally into Boulder County, the proximity to the developing Westerly Creek neighborhood and a proposed school site, and potential air quality impacts from greenhouse gas emissions associated with oil and gas drilling.

“Is this a project which should be rushed, thus increasing the likelihood of mistakes and the potential need to cut corners? Perhaps the first five-mile laterals in the state of Colorado should be attempted far from towns and families and under circumstances where the time needed to carefully test these uncharted waters is available,” Frank said during his remarks.

Frank also laid out three conditions of approval for the commission to consider:

That the Oil and Gas Development Plan include the execution of access agreements, transportation impact analysis, other local government permits, and the mitigation agreement reached between Extraction—a subsidiary of Civitas Resources—and Erie Land Company.
Incorporation of a previously abandoned well, a soil gas survey, and a monitoring agreement.
That drilling completions and other pre-production activities end no later than October 15, 2027, when Erie can no longer restrict issuance of certificates of occupancy for homes in the Westerly Creek neighborhood within 2,000 feet of Draco.

Pre-production poses a greater level of impact than other stages of operation, Frank noted, and the ECMC considers residences within 2,000 feet of an active drilling site to be at greater risk of adverse consequences. Civitas Resources has secured informed consent from the five currently occupied homes in Westerly Creek.

Representatives of Civitas Resources then presented the results of the Alternative Location Analysis and engagements with the Town of Erie after the November 2024 hearing. The analysis concluded that the alternative location is infeasible, citing CDPHE’s restriction notice and relevant Town of Erie Oil and Gas Siting Regulations that could make rezoning the district impossible, such as its proximity to residences, public parks, surface water bodies, and geological hazards.

Civitas Resources had proposed another location 1,000 feet south of Alternative Location 4, referred to as Alternative Location 4.1, which would comply with CDPHE’s restriction notice but had similar drawbacks to Alternative Location 4, including close proximity to the Vista Ridge neighborhood.

Civitas Resources outlined the benefits of the original Draco Well Pad: it aligns with zoning regulations in Weld County, requires fewer transportation miles, construction vehicles will navigate fewer intersections, supports dual-rig occupation, utilizes recycled water, has no downgradient water features nearby, and aligns with CDPHE recommendations and requirements.

They also reiterated the best management practices for the Draco Well Pad, including using recycled water, employing two simultaneous drilling rigs to expedite activity, installing three continuous air quality monitors, using electrified drilling rigs, and partially electrifying the completion fleet to reduce emissions.

The Oil and Gas Development Plan also includes a proposal to plug and abandon 22 legacy wells near occupied homes, which, according to Civitas Resources’ estimates, would create a net decrease in Volatile Organic Compound emissions by 3.82 tons per year.

“When you look at the cumulative impact side of things as well, they’re actually going to be reducing emissions and getting rid of some of these older legacy wells,” Commissioner Cross said during deliberation. “When you get rid of a lot of these older legacy wells, to me, that is perhaps the most crucial part of what’s being proposed here.”

Commissioner Messner was the only vote against the plan. He cited the proximity of the Westerly Creek neighborhood and an area about 1,500 feet north of the well pad that was identified and deeded to the St. Vrain Valley School District as evidence that the plan does not meet ECMC’s standards to adequately protect public health, safety, welfare, the environment, and wildlife resources.

“There’s a point where oil and gas development and subdivisions are colliding with one another, and I think this is a really good example of where that’s happening,” Messner said. “We’re starting to see it more often, and it’s certainly a challenging situation for all sides.”

Civitas Resources laid out a development schedule that would break ground in May 2026, complete drilling in March 2027, bring wells online in October 2027, and begin reclamation in December 2027.

This schedule would align with the Town of Erie’s conditions for approval. However, Civitas Resources has an official end date of May 2028 due to delays in the hearing process and outstanding requirements, including paving a half-mile of county road for construction vehicles accessing the Front Range Regional Landfill. The ECMC has requested that Civitas make reasonable efforts to conclude operations by December 2027.

Civitas Resources will hold two virtual town halls as development moves forward. Residents can sign up for notifications from the Town of Erie here.

“While the Town of Erie is disappointed with the Commission’s decision, the Town is committed to protecting the health, safety, and welfare of its residents and will continue to do so irrespective of this ruling,” read a March 26 message from the Town of Erie. “The Town of Erie is grateful for the commission’s acknowledgement of present and future impacts of the Draco Pad and its inclusion of the following conditions of approval to better protect the current and future residents of Erie.”