State panel OKs fracking near Aurora Reservoir despite staunch resident opposition

AURORA | A controversial residential fracking operation south of the Aurora Reservoir was given the go-ahead Tuesday by the Colorado Energy and Carbon Management Commission after a year-long fight with local homeowners and environmental activists.

The commission held its final review hearing on alternative locations for a fracking operation on land owned by Lowry Ranch, where in a close 3-2 vote, they approved the State Sunlight-Long fracking site.The initial proposal for 32 oil and gas drilling well pads was proposed in 2022 by Civitas Resources, now SM Energy, and its subsidiary, Crestone Peak Resources and would be about a half-mile away from the Aurora Reservoir. 

The Sunlight/Long site is part of a network of 2022 Civitas proposed oil and gas developments as a comprehensive area plan, or CAP, for the Lowry Ranch, a 26,000-acre trust in Arapahoe County that includes the reservoir. 

In December, the commission postponed the plan following a year-long campaign by a newly formed neighborhood collective called Save the Aurora Reservoir or S.T.A.R. Much of the attention around STAR’s efforts has been specifically on the Sunlight/Long development and its proximity to residential areas and the environmental and health impacts that the operation risks. 

(Map of Proposed Sunlight-Long OGDP in relation to residential neighborhoods courtesy of STAR)

STAR partnered with 350 Colorado, an environmental advocacy group that is part of a broader national advocacy network, in its opposition to the site and residential fracking operations in Colorado. 

Sandra Duggan, a campaign coordinator for 350 Colorado, told Sentinel Colorado that her organization would consider their battle won if the commission either terminated the Sunlight-Long proposal or even if it imposed another postponement.

Duggan said that both STAR and 350 Colorado say that a 2019 state law, SB19-181, which extended oil and gas regulation powers to local governments, also changed the commission’s mission to regulate the industry and not just accommodate it. 

Duggan said it’s 350 Colorado’s position that the commission has not sufficiently regulated oil and gas proposals as per the 2019 law.

STAR has consistently generated a large amount of community engagement in opposition to the Sunlight-Long development. In this week’s virtual meeting, there were more than 1,000 people in attendance, maxing out the number of attendees imposed by Zoom, a first for the commission according to the commission chair.  By hour three of the hearing, there were still about 800 people listening to the proceedings. 

The commission asked SM Energy and Crestone at the December review hearing to do a comprehensive analysis of both their preferred location and alternative wellpad sites.

Jamie Jost, one of the legal representatives of the oil and gas developers in this case, said SM Energy and its subsidiary “maintains its position that the Sunlight-Long oil and gas development plan location is the safest location for human and community health and poses the least threat to the local environment and wildlife” of the 11 identified wellpad locations.

An alternative development site was proposed by STAR as a compromise with Crestone. Jost, however,  said STAR was “showing their true colors” by partnering with national activist groups, likely referring to 350 Colorado. The group is operated by Colorado activists. 

Since December, Crestone reduced the proposed 32 horizontal wells to 24 wells. Representatives for Crestone stated they opposed the alternative wellsites because they don’t currently have adequate access to the electrical grid, and they would require an additional transport of 20-25 miles, creating more greenhouse gas emissions.

One of the ECMC commissioners, John Messner, questioned Crestone’s analysis of the proposed sites. 

“The [previous order] was not to have you go out and find data to say that all other potential sites were going to cause harmful impacts; it explicitly ordered a comprehensive and narrative analysis of all feasible alternative oil and gas locations on Lowry Ranch lands,” Messner said. “I think it is a very different order than saying: ‘Give us support for the preferred Sunlight-Long OGDP site.” 

Crestone and SM Energy argued that when conducting a “cumulative analysis,” they still felt that their proposed location examined their site’s impact. 

Mike Foote, the legal representative for STAR, said the company did not comply with the commission’s order because Crestone’s comparative analysis merely “declared their site protective and found issues with other sites.” 

Commissioners Jeff Robbins and Mike Cross were not persuaded by STAR’s argument. Cross said in his deliberation that he “did not give a lot of credence” to STAR’s assessment as he felt there was “implicit bias” in their analysis of alternative sites and that he “didn’t buy the conclusory statements that the proposed Crestone site was not protective.”

He said he couldn’t declare this site as “not protective” without calling other ECMC-approved sites into question.

Cross was appointed to the board due to his substantial oil and gas experience, including working as legal counsel for companies in the oil and gas, mining, and other natural resource industries, according to commission records. 

The commission ultimately determined in a 3-2 vote that Crestone and SM Energy complied with the December 10 order of a cumulative analysis of alternative locations. 

Critics of the plan have repeatedly pointed to national studies showing health links between oil and gas development and nearby communities. There have been numerous studies examining the impact of residential fracking on community health, including those from Yale and the University of Colorado Anschutz, that have found that children living within eight miles of oil and gas well sites are two to three times more likely to develop leukemia and bone marrow cancer. 

The Lowry Ranch encompasses both the Aurora Reservoir and grassland ecosystems that are home to beavers, foxes, prairie dogs, burrowing owls, and other prairie life. 

The deciding vote came from Commissioner Brett Ackerman, who said the proposal met both state and local requirements, but that he was disappointed at the lack of cooperation between SM Energy and community partners.

Representatives for STAR expressed their disappointment in today’s result and said the group will discuss on Wednesday whether to take further action against SM Energy and Crestone and what form that might take. 

STAR’s former director, Randy Willard, said was a frustrated by what he said was a lack of transparency in terms of the state commission approval process. 

“Ultimately, this comes down to what we want our community to look like,“ Willard said. “The commission has now approved five of the seven proposed fracking operations and show no sign of changing their tune. If not this then what, if not now then when? (The commission]) needs to convey where they draw the line as to what is an acceptable fracking development.” 

Officials from 350 said they, too, would continue to resist the project.

“We’re all still recuperating from today’s hearing,” said Duggan. “Stay assured, however, that 350 Colorado will continue to work to stop the expansion of fracking in our Colorado.”

Arapahoe County and the ECMC have information available online for people to review about the well pad applications and the project.