Consider Attending Special Council Meeting for Moratorium and Spacing Application Near Anthem

Broomfield City Council will hold a special meeting at 5 p.m. on Tuesday, May 14 to consider an ordinance “for a moratorium on processing new and pending applications for use by special reviews or operator agreements for oil and gas developments to allow Broomfield to amend its oil and gas regulations to account for new regulatory authority granted to local governments by SB 19-181.”  SB19-181 Protect Public Welfare Oil and Gas Operations gave local governments greater power to protect public health and safety by regulating oil and gas industry operations in their jurisdictions.  Please consider attending this meeting to register your concerns or you can write to Council at council@broomfieldcitycouncil.org.

Also at this special meeting, Council will consider whether or not to file a protest on a spacing application that was filed by BC Deep Holdings, LLC which would impact Anthem.  Extraction has an approved spacing unit that includes the area under a portion of Anthem Ranch and a smaller area south of the Acme Pad in Erie and north of Highway 7 (see purple area on map below).  Crestone has an approved spacing unit for the area in light blue which will be drilled from the Acme Pad. BC Deep Holdings owns mineral interests in the Extraction spacing unit, specifically in the area south of the Acme Pad in Erie between the Acme Pad and Highway 7, which is in red crosshatch on the map.  BC Deep Holdings is asking the COGCC to remove the red crosshatch area from Extraction’s spacing unit and add it to Crestone’s spacing unit for the Acme Pad, so that Crestone can develop BC Deep Holdings’ minerals.

Docket Item 190600405 on the COGCC June 17 & 18 Docket pertains to this spacing unit challenge. The City’s announcement states that “BC’s attorney has indicated that Crestone is supportive of this change to spacing units and Extraction opposes it.”  It is unknown where Extraction would site a pad to drain this spacing unit since it cannot put another pad in Broomfield according to the Operator Agreement.