SM Energy backed out of the sale just weeks after the town received enough signatures to take the question of mineral rights to a voter referendum this fall.
ERIE, Colo. — The Erie Town Council voted this week to repeal the sale of its mineral rights to SM Energy.
“It feels like a roller coaster because we’re selling the minerals and then we’re not, and then we are, and now we’re not again,” said Emily Baer, an Erie town councilmember.
The on-again, off-again Erie mineral rights sale is now off for good.
This story continues below.
“SM decided to back out of the deal,” said Brandon Bell, Erie Mayor Pro Tem. “They had language in the contract that allowed them to back out; both parties did. I believe that the timeline did not work for them to be able to wait for the election to see which way this was gonna go.”
Bell, who supported the sale, said SM Energy’s decision to call it quits with Erie came just weeks after residents gathered enough signatures to take the measure into their own hands and take the mineral rights question to the voters this fall.
“But ultimately, what the referendum teaches us, or shows us, is that residents want to have a say,” Baer said.
Baer, who opposed the mineral rights sale, said they’ve fielded questions from the public for months over how they handled the sale. Those questions continued even in the minutes before council formally repealed their approval of the deal Tuesday.
“Residents are angry about what they perceive as secrecy surrounding executive sessions and handling of the agreement,” said Eric Lillard, an Erie resident speaking before the town council Tuesday.
“Anything moving forward must be transparent, well communicated, and involve residents and voters, in my opinion,” Baer said.
Even without their approval, drilling close by on the Draco well pad is expected to move forward. What that looks like, including how they avoid the town’s input, isn’t clear.
“There’s a little bit of uncertainty because they definitely can’t extract our minerals,” Bell said. “What that looks like, I’m not sure.”
The Colorado Energy and Carbon Management Commission, or ECMC, is expected to discuss this in a hearing next month. Baer said the town is now an interested party and will be at those meetings to see how the drilling could impact the community.