Erie’s long-simmering fight over what happens beneath residents’ feet is heading for a pivotal vote. Town officials say they have a tentative agreement with SM Energy to sell the town’s remaining mineral rights connected to the Draco oil and gas development, a controversial project already cleared by state regulators. If the Town Council signs off at a June 16 public meeting, Erie would trade its minerals for land, revenue, and a binding role in how old wells under the community get inspected and plugged.
What the tentative deal would deliver
Town staff told reporters the draft agreement would give Erie 158 acres of land, more than $20 million in revenue over the next 10 to 20 years, funding to plug additional abandoned wells and access for inspections, according to CBS News. Environmental Services Director David Frank told the council the town had “significantly more leverage than a typical mineral owner would have” and cast the deal as a way to lock in remediation and local oversight in exchange for giving up the town’s remaining minerals tied to Draco.
How the Draco project reached this point
The Draco pad was approved by the state Energy and Carbon Management Commission in March 2025 and calls for 26 wells whose laterals would run roughly five miles beneath parts of Erie, according to Boulder Weekly. A town briefing to the council in April lays out mitigation commitments connected to the project, including plans to plug and abandon dozens of legacy wells and to limit pre-production occupancy for lots within a state setback, as detailed in Town of Erie documents.
Residents worry about health and transparency
Residents packed the council chambers and did not mince words. They pressed leaders on property values, environmental impacts and health risks as the project moves toward drilling beneath neighborhoods. Heather Sabo, a 17-year resident, told the meeting, “It’s a project that’s drilling right under my home,” and said she is considering moving if the town sells its minerals, according to CBS News.
Coverage in local outlets has also raised alarms about how negotiations unfolded, pointing to repeated closed-door sessions and arguing that the pace and secrecy of talks left many residents feeling sidelined, as reported by Yellow Scene.
What happens next
The town calendar lists a Town Council meeting on June 16, where an ordinance to finalize any sale is expected to be considered, according to the Town of Erie meeting listings. Town staff has said a full agreement and ordinance will be posted for public review before any final vote. If council members approve an ordinance, the sale terms, along with requirements for inspections and plugging of legacy wells, would become binding and would dictate how SM Energy proceeds beneath town property.
Why municipal mineral ownership matters
A 2024 state law that tightened rules around forced pooling has given publicly owned mineral holders more control and was a central reason Erie officials say they had leverage in talks, according to the Colorado General Assembly’s summary of SB24 185. That legal shift has reshaped bargaining between local governments and energy operators across Colorado and helps explain why Erie’s council opted to negotiate conditions rather than be left on the sidelines while drilling moves forward under town land.
