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Oil & Gas Operations FAQ'S

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1. Can the Town prohibit oil and gas operations within Erie?

No. The Colorado Oil & Gas Conservation Commission (COGCC) governs the permitting and regulation of oil and gas wells throughout the state according to the Oil and Gas Conservation Act. Municipalities such as the Town of Erie have limited authority when it comes to the oversight of oil and gas operations within its boundaries. A 2002 Colorado State Court of Appeals decision affirmed an earlier judgment which defines to what extent a local jurisdiction may regulate drilling operations within its boundaries. However, in August of 2012, the Board of Trustees approved Memorandums of Understanding (MOU) with EnCana Oil & Gas (USA) Inc. and Anadarko Petroleum Corporation wherein the operators have agreed to address the Town’s concerns regarding public health and safety impacts. The MOUs are the first agreements in Colorado that include best management practices that supplement and are in addition to Colorado Oil and Gas Conservation Commission (COGCC) rules and regulations.

2. What can the Town regulate?

The Town regulates land uses around oil/gas facilities. In addition, as part of the land use regulation, the Town has standards for the appearance of oil/gas facilities provided the standards do not interfere with the operations of the oil/gas facility. The Town is prohibited by law from regulating any operational aspects of oil/gas facilities

3. How do we do it?

The Town, property owners and mineral rights owners take mineral rights into account prior to the approval of development on a property. Title 10 of the Town of Erie Municipal Code outlines standards for development, such as setbacks, in and around oil/gas facilities. The Municipal Code also sets standards of oil/gas facilities such as color of equipment, fencing and access.

Additionally, during a Special Meeting on Wednesday, March 7, 2012, the Board of Trustees approved an ordinance imposing a temporary (180 Days) moratorium on the acceptance, processing and approval of any land use applications related to mining and mineral extraction – including oil and gas development. The moratorium, approved as an emergency ordinance, is effective immediately. Reasons given in the proposed ordinance for the imposition include:

• To allow time to enter into an agreement between the Town and oil and gas operators wherein the operators would voluntarily agree to comply with Town requirements. Such requirements may exceed Colorado Oil and Gas Conservation Commission requirements - including a plan to reduce airborne Volatile Organic Compounds related to mineral extraction.

• To review the Town's Unified Development Code with regard to oil and gas development regulations, with an eye towards updating if there are reasons to do so.

4. Is our Town water supply safe?

Yes. The Town water supply comes from surface water and is treated following State of Colorado regulations.

5. Why did the Town allow Red Hawk Elementary to be built in proximity to oil and gas operations?

Public schools are regulated by the state including building plan review and building inspections. In the State of Colorado, school districts are not subject to local land use controls including site plan review.