It appeared dead last week after failing in a 3-3 tie vote, but a controversial mineral rights deal that has drawn the ire of many Erie residents narrowly passed Tuesday night after the town council reconsidered it.
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The 4-3 revote in favor clears the way for Erie to sell about 182 acres of its underground mineral rights to SM Energy, an oil and gas company pursuing the Draco Pad project, which will drill horizontal wells underneath homes in Erie.
In return for the mineral rights, the town said it will get a 3% share of the proceeds from its production, a cash payment of $4.5 million, and nearly 160 acres of land. The oil and gas operator will also plug 17 abandoned wells and allow town officials to inspect the drilling operations at the Draco Pad.
Council member Brian O’Connor initially voted against the deal, but he flipped his vote on Tuesday.
He said the town could be left with a “worthless mineral island” if it didn’t agree to the deal. He added that the transaction is “in the best interest of the town” and allows Erie to have more leverage over the Draco Pad drilling operations.
“It's the ability to pursue our own environmental testing at the Draco pad, instead of standing on the outside looking in,” he said.
Several residents continued to speak out against the deal during a public comment period that lasted over two hours Tuesday night.
Opponents said the deal was negotiated in secret and the town did not follow its procurement policies when it awarded a no-bid contract to a consultant to help negotiate the deal.
The consultant was also previously employed by a company pursuing the Draco Pad project, a revelation that led to allegations of a conflict of interest.
More than 100 residents recently signed a letter asking Attorney General Phil Weiser to investigate the mineral rights deal.
Critics say there’s a lack of trust in how the deal was negotiated.
“In borrowing a line from Tom Hanks in the movie Apollo 13, ‘Erie, we have a problem,’ resident Eric Lillard said Tuesday night. “Rather than pressing forward under a cloud of concern, the responsible course is to pause, correct the process, and ensure the town is adhering to its own policies.”
Other residents raised concerns about how the drilling operations would affect their health and property values.
The company pursuing the Draco Pad project responded to a list of community concerns in a 2024 letter.
