Latest Changes to Extraction Proposal Will Be Discussed at Oct. 17 Study Session

Additional negotiated changes between the City and Extraction will be discussed during a Council Study Session on Tuesday, Oct. 17 at 6 p.m. in City Council Chambers.  They are described under “Current Status of Negotiations” starting on page 4 of the City’s summary, which is available here.  You can find a map of the proposal here.

Citizens are usually not permitted to make comments during a study session.  You can convey your concerns in two ways:

  1. Your presence and attentive listening always makes an impression.  The proposal is the first item on the agenda.
  2. You should email your concerns to the City Council at council@broomfieldcitycouncil.org and to City staff at oilandgas@broomfield.org.

At this study session, the City will also decide if they are ready for final public comment (a public hearing) and City Council consideration (vote) on the proposed agreement at their October 24 City Council meeting, or if more negotiations are needed first.

Here is the City’s summary of the “new items from negotiations this week.

“Phase II of Livingston Pad consisting of 15 wells is eliminated, in exchange for a zero percent royalty
lease to Extraction on all unleased Broomfield oil and gas minerals in the Broomfield spacing units, and
all royalty revenues on leased, Broomfield owned mineral acres within Extraction’s Broomfield spacing
units;
● Broomfield will arrange for conveyance of mutually agreed-upon right of way and pipeline crossings as
specified in the draft agreement in order to enable closed-loop development with zero permanent
storage tanks;
● Ban on 17 of the 19 chemicals on Committee’s list of chemicals to ban, remaining chemicals are
acrylamide and napthylamine;
● Grant to Broomfield of an additional 7 acres of Open Space (bringing total to approximately 39 acres)
with a pipeline easement reserved, with Extraction to remove buildings and debris from such open
space, and a trail easement granted to the City at no cost;
● General liability insurance of $100,000,000 during all drilling operations on the pads, including drilling,
hydraulic fracturing, and completions, until production, regardless of corporate ownership;
● Extraction will agree to 90% or more emissions reduction based upon combustion during liquid
unloading; and
● Extraction will propose 17% royalty offer for unleased mineral owners in the Wildgrass neighborhood.”

Wildgrass mineral owners have consistently stated that the royalty offer was not the only essential change needed to their lease offer.  They have asked for removal of liability as non-consenting owners, removal of Extraction’s access to their surface rights, and removal of the homeowners’ need to warrant their minerals.  Wildgrass attorneys have not been included in the City negations.  Extraction hasn’t formally made any new offer to lease to Wildgrass, so nothing is currently guaranteed as far as new offers.

The City document has a list of “benefits to Adams County” on page 4 that Adams County residents might want to question.  The document addresses legal objections raised by Adams County Commissioner  at the October 10 Council meeting as follows:

“At the October 10, 2017, Council Meeting, an Adams County representative called to the City’s attention a 2001 grant of $64,010 for the purchase of 3.46 acres of a larger 40.48 acres of the Nordstrom Open Space north of the Northwest Parkway, where Extraction had moved two pads of 8 wells each in order to move pads farther from Adams County residents. Arguably, the terms of the grant would require the approval of the Board of County Commissioners of Adams County for use of that 3.46 acres of open space for oil and gas.  Extraction has agreed to amend its pad location such that it no longer occupies any of the 3.46 acres that was partially funded by the Adams County grant. A copy of the Adams County Open Space Grant Application and map showing the portion of the Nordstrom Open Space purchased with the Adams County grant funds is included as Attachment 3.”

Again, you can find the map here.