Court Dismisses 20 County Claims Against Crestone Fracking Plans

BOULDER, CO -- Boulder District Court Judge Thomas Mulvahill on Feb. 14 dismissed 20 of the claims in a September Boulder County lawsuit against Crestone Peak Resources. The suit brought complaints against a possible 140 wells on three proposed drilling pads that would lie on either Boulder County Open Space or county-owned conservation easements.

Despite the pending lawsuit, Crestone submitted its plans to the Colorado Oil and Gas Conservation Commission for approval in late November, 2018. In response, on Jan. 9 of this year, the county filed a motion to dismiss the proposals pending resolution of the litigation.

Mulvahill found that most of the county's claims regarding possible harm to conservation easement land were premature. Until Crestone's plans are finalized and have passed through the state regulatory process, he explained in his ruling, they may still be amended and therefore present no material threat to the county's assets.

With regards to the claims that Crestone's plans would constitute a breach of contract, Mulhavill found that the County's charges did not meet a standard of "definite and equivocal" breach of contract because the plans had not been finalized or approved by the state.

“Crestone’s plans [may] be rejected or materially modified by either the COGCC or the County” during permitting processes and therefore the county would need to wait to file the remaining claims until these permit processes were completed," explained Thursday's ruling.

The four claims that will be allowed to proceed concern the terms of Crestone's lease on the county's Haley property which the county claims has expired.

“We stand behind our position that these leases and conservation easements will not allow for the proposed development,” said Commissioner Matt Jones in a statement.

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