02/03/2023
Ward 6 Oil and Gas Meeting
Council Member Francoise Bergan hosted a Ward 6 meeting on 2/2/2023 to discuss the oil and gas wells proposed east of the Aurora Reservoir. These are my notes.
Key points:
***** The well plan is still draft, and another version is expected in March.
***** Colorado State Land Board owns the well sites. The profits and much of the severance tax will go to Colorado public schools. https://slb.colorado.gov/
***** The wells pose little to no threat to the Aurora Reservoir because they will be located east of a ridge that runs north and south adjacent to and east of the reservoir. If the well develops a leak either on the surface or subsurface, the residue will flow away from the reservoir and not towards it.
***** The wells will be drilled on land controlled by Arapahoe County. The City of Aurora has no control. If residents want to oppose the wells, they need to address both county and state legislators.
***** Both Council Member Bergan and Mayor Pro Tem Gardner pledged to submit a formal letter to Arapahoe County strongly urging they move the wells closest to the reservoir further away.
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The city presenters were Jeffrey Moore, the Director of Oil and Gas; and Marshall Brown, the Director of Aurora Water. In addition, Chris McGowen, a Colorado attorney specializing in oil and gas explained the law.
Mr. Moore gave a slide presentation that showed the location of the well pad sites and where the horizontal wells will be located. He explained wells will be drilled straight down to approximately 7,000 feet. At that point, the well will be turned horizonal and drilled for up to 3 miles. A pipe will be inserted in the vertical hole and then encased in concrete. The horizontal well holes will be about 12 inches in diameter and then a 10-inch pipe will be inserted. There will be approximately one mile of bedrock between the bottom of the water table and the horizontal pipes. Based on the map provided, most of SE Aurora from the Aurora Reservoir south to County Line Road and west to near E-470 will have wells underneath. Mr. Moore said he would provide his slides to the public.
Mr. Brown explained the impact of the well on the reservoir. The reservoir was designed to be totally independent of groundwater and runoff water. It is filled exclusively with water pumped from the mountains and rain. He said there are two types of oil wells: extraction and injection. Extraction wells pull oil, gas, and water from 7,000 feet deep. Once the well is drilled, no additional pressure is applied to it. Injection wells are used to push wastewater back into the earth. He said those wells can be dangerous so the city has mandated they can be no closer than one mile from a city reservoir. He said extraction wells pose a much lower threat. After he explained that groundwater typically follows the flow on the surface, he said all of the well pads are on ground that slopes away from the reservoir. The likelihood of any type of fluid contamination flowing from a surface or subsurface accident was low. He said that risk would not be close to the top ten risks faced by the reservoir.
Mr. McGowen explained property rights. Houses, buildings, and mineral rights are “real property.” Automobiles and apartment leases are “personal property.” There are specific laws for each type of property. It’s unusual, but many homes in the area own their mineral rights. Therefore, these residents have been receiving requests to lease their mineral rights to the oil company. The owner can either lease the rights or refuse. If the owner refuses to lease and the oil company controls 65% of the rights needed to extract oil, the oil company can begin a process to have the remaining leases “pooled.” If an owner rejects the pooling, the owner can force a separate contract. Given those choices, Mr. McGowen explained that if an owner leases the rights, the oil company will continuously pay the owner until the wells no longer produce. The leaser has no fiscal responsibility for the operation or liabilities of the well. In the other two cases, the owners will share in the profits of the well but will also incur responsibility for the costs of the well itself. Mr. McGown emphasized repeatedly that he was talking in general terms about Colorado law and recommended anyone with questions obtain legal representation.
Most of the audience was strongly against having any wells in the area. Questions ranged from air quality, to noise, to vibration. The key responses were that Colorado Public Health and Safety is responsible for overseeing the health of the wells. Mr. Moore said that the same company was drilling in other parts of the city, and their air quality met all standards except one. That would have passed if they had taken the sample at the law required distance. Moore said he expects the wells will be serviced pipelines as opposed to truck. Pipelines restrict gas leaks. As to noise, one resident played well noise from her phone. Mr. Moore said well noise occurs from the generators needed for power during the fracking process. He understands that the oil company intends to use commercial power which eliminates the excess noise. Several people told worrisome stories about wells in West Texas and other locations. Both Mr. Moore and Mr. Brown explained the situation was very different in Colorado. For one reason, the land is different and for another, there will be no injection wells used. A person running against Council Member Bergan attempted to have her and Mayor Pro Tem Gardner pledge not to allow the oil companies to pool the oil under city property. Mr. Moore said that would be illegal. As explained above, if a city or homeowner was included in a pooled group, that group would be responsible for unknown future costs. A city council currently in session cannot levy an unknown, must-pay bill upon a future council under Colorado law. Mayor Pro Tem Gardner explained that some sitting council members have made pledges to stop pooling that they are prohibited from executing.
Many questioners stated what they thought the city “should” do. The answers explained what State law and regulations require the city “must” do. Council Member Bergan and Mayor Pro Tem Gardner encouraged all concerned to petition the county and state legislators as well as the Colorado Oil and Gas Commission.
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