Town officials in Erie, Colo., reached an anticipated agreement with Encana Corp. regarding operations on five new drill sites in Erie and three drill sites adjacent to the Erie but outside town limits, Encana said.
Erie officials said these locations are fully permitted locally for drilling. Shortly after that operating agreement was announced, Encana announced plans to sell the property involved, but all indications were that the new owners would abide by the agreement with Erie.
Under the operating agreement, Encana said it would adhere to standards higher than Colorado's regulations for oil and gas operations, including bigger setbacks, stricter noise limits, additional air quality inspections, and neighborhood meetings to discuss drilling plans.
The Erie board of trustees approved the new operating agreement by a 6-0 vote Aug. 25. Quarterly meetings were planned between the board and the operator.
The 5-year agreement renews automatically although it can be terminated at the end of the term if either party gives at least 30-day notice.
Colorado's D-J basin has been home to oil and gas exploration for several decades. Erie is among various Colorado communities working closely with operators (UOGR, Nov/Dec 2013, p. 1).
