SM Energy has backed out of its deal to purchase mineral rights from Erie, the town announced late Wednesday afternoon.
Attorneys representing the company informed the town of its decision earlier in the day, according to a town news release.
The Town Council had voted in June to sell the town’s mineral rights, an agreement that would have allowed SM Energy to drill beneath portions of the town from its Draco Pad just east of the town.
The end of the agreement follows a months-long back-and-forth over the deal.
In June, an agreement put before the council failed with council members split on the issue. One week later, the council reversed course and voted 4-3 to sell the town’s mineral rights to SM Energy. A month later, Erie residents who opposed the deal gathered enough signatures to put the issue up to voters in November.
Erie will retain ownership of its mineral rights for the time being. The town is still evaluating the implications of the end of the agreement, according to the release.
This is a developing story and may be updated.