In a unanimous vote on August 25, 2026, the Erie Town council voted to repeal Ordinance No. 028-2026, which had originally authorized the sale of the Town’s mineral interests in the Draco drilling and spacing unit (DSU) to SM Energy. This came after SM Energy notified the Town of Erie last week that it was withdrawing from the agreement. While no formal reason for the termination was given by SM Energy in its written communication to the Town, in his comments during the August 25th meeting, Mayor Andrew Moore indicated that the referendum to put the mineral rights sale to a ballot vote would put their tight project timeline at risk (SM Energy has agreed to finish its pre-production activities at Draco by May 2028).
In her comments, Councilmember Baer put it best: “dangling health and safety as a carrot in front of municipal governments is wrong; health and safety should never be used as a bargaining chip.”
What Now?
While this officially concludes the referendum effort that garnered over 1,800 signatures, it opens the door for the Town of Erie to establish “Affected Person” status, according to ECMC Rule 507.a:
A person who may be adversely affected or aggrieved by an application may submit a petition to the Commission as an Affected Person to participate formally as a party in an adjudicatory proceeding. The petition will set forth a brief and plain statement of the facts which entitle that person to be admitted and the matters that the person claim should be decided. The Commission, Administrative Law Judge, or Hearing Officer may admit any person or agency as a party to the proceeding for limited purposes.
In an August 21, 2026 filing (see above), Town of Erie Environmental Services Director David Frank asserts that, “The Town of Erie is requesting Affected Person designation so it may participate as a party in the Hearing on Extraction’s pooling application due to the Erie Mineral Interests within the Application Lands. The Town has rejected the offer to lease those minerals and does not consent to having its mineral interests included as part of the pool in the Draco DSU.”
Should the petition be approved the Town of Erie is requesting a 30-minute block of time to provide testimony regarding its refusal to lease its mineral rights to SM Energy at the October 21 ECMC pooling hearing. Additional information is available on the Town of Erie website.
For more information see this media coverage:
- Daily Camera: Why Erie Town Council will vote on SM Energy sale ordinance, even after company pulled out of deal
- CBS News: Erie mineral rights deal falls apart as SM Energy cancels contract for Colorado town
- Colorado Hometown Weekly: Erie’s controversial drilling deal folds as oil and gas company backs out
- Yellowscene: SM Energy ends controversial mineral rights agreement
- Town of Erie: Council Approves Mineral Rights Agreement
- Yellowscene: Rocky mineral rights deal passes in 4-3 vote in spite of opposition
- Daily Camera: In reversal, Erie Town Council votes to sell underground mineral rights to oil and gas operator
- CBS Colorado: Erie Town Council to reconsider Colorado mineral rights sale tied to proposed Draco Pad
- Daily Camera: Erie Town Council could reverse its vote on deal tied to Draco oil and gas project
- 9News: Proposal to sell Erie’s mineral rights fails in town council after 3-3 vote
- Daily Camera: In split vote, Erie Town Council rejects deal tied to Draco oil and gas project
- Yellowscene: Erie mineral rights deal fails as O’Connor breaks from council majority
