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Boulder County commissioners decline to lease mineral rights

County risks forced pooling on rights owned near Longmont with hearing set in January
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Blue Paintbrush DSU

Boulder County commissioners rejected a lease offer for county-owned mineral rights near Longmont, opening the county to the risk of forced pooling but continuing the policy of not voluntarily leasing mineral rights for development.

On Tuesday, the commissioners unanimously rejected the offer from Extraction Oil and Gas offering to lease the county’s mineral rights in connection with Extraction’s Blue Paintbrush well pad in Weld County. With the decision, the commissioners risk a statutory pooling order from the Colorado Oil and Gas Conservation Commission.

The pad is approximately 1,000 feet east of the Boulder County line on land that includes a county-owned conservation easement. Extraction has permits from the state and Weld County to drill up to 32 wells on the pad, which are designed to drill horizontally to produce oil and gas under four square miles of Boulder County.

Boulder County filed a lawsuit in 2019 arguing that its conservation easement and several existing leases do not allow for the approved drilling, but that suit was unsuccessful.

Considering the threat of forced pooling and the significant amounts of land, minerals and money at stake in this lease offer, the county completed a full public process before the commissioners reached a decision. The Boulder County Parks and Open Space Advisory Committee and Boulder County staff recommended that the commissioners reject the offer.

On Tuesday, about 20 members of the public offered their comment along with nearly 100 written comments received prior, almost all of whom opposed accepting the leasing offer.

“The Board of County Commissioners agrees with our residents that leasing Boulder County-owned minerals on county open space is not in the best interests of the county or its residents,” Commissioner Chair Marta Loachamin said in a release. “Substantial evidence makes it clear that development of oil and gas poses significant threats to public health and the environment, including air quality and wildlife resources.”

Extraction filed an application with the state to force pool the county’s minerals on July 7, which is currently set for a hearing on Jan. 25. The commissioners made clear in their statements their belief that forced pooling, which would require the county to act as a business partner with Extraction, would be a violation of constitutional and statutory requirements.

“In addition to the detrimental health and environmental impacts, accepting this lease offer would require Boulder County to be in business with a private corporation on oil and gas development — something the county cannot and will not do,” Commissioner Claire Levy said. “If the result of our decision is an application to force Boulder County to allow Extraction Oil & Gas to develop our mineral interests, we will fight that. Boulder County should not be required to participate in something that we find so detrimental to the public interest.”