Indefinite Pause For Crestone Drilling Proposal In Boulder County

BOULDER, CO - The Colorado Oil and Gas Conservation Commission has postponed its hearing on Crestone Peak Resources Operating LLC's proposal to drill on Boulder County land. The hearing originally scheduled for October 29-30 is delayed pending the resolution of the lawsuit that the Boulder County Commissioners filed to prevent the drilling operation on September 25.

The COGCC's Thursday ruling was based on uncertainty due to Boulder County's lawsuit. As its decision explained, “[Boulder County's] Lawsuit seeks judicial resolution of several lease and easement issues which are outside the Commission’s jurisdiction, but which could directly affect Crestone’s right to pursue the [Drilling Plan].” Boulder County requested the postponement, while Crestone had opposed it.

The Crestone suit concerns 140 wells on three proposed drilling pads that would lie on Boulder County Open Space or county-owned conservation easements. The county alleges that two of the mineral leases Crestone claims on its proposed drilling sites have expired due to lack of production, and that the size and scale of the proposed drilling operations is incompatible with the company's mineral leases. The suit also claims that the drilling would run counter to the status of the land as conservation easements because it would "threaten the conservation values for which they were established."

In July, COGCC director Julie Murphy issued a statement concluding that the proposed sites were suitable for production. Crestone's reply to the Boulder County complaint is due by October 19.

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