State oil and gas regulators listened to hours of testimony Friday on Crestone’s proposal to drill up to 166 wells in a neighborhood near Aurora Reservoir, but put off a decision until next week on the project that has fired up area homeowners.
Consultants working with the community organization Save The Aurora Reservoir, which wants the state to reject the drilling plan, told members of the Energy and Carbon Management Commission that the company’s plan doesn’t adequately address potential impacts on the reservoir or health risks to the people who live in Lowry Ranch in Arapahoe County.
Brian O’Mara, a geologist who was a witness for the community group, criticized Crestone’s plan as not going far enough to ensure the company would diligently monitor water quality. He also raised concerns about fracking potentially causing earthquakes.
Fracking involves blasting water, chemicals and sand underground at high pressure to break through rock or tight sands and extract oil and gas. The U.S. Geological Service says that earthquakes can be triggered by injecting fracking waste fluids underground.
“My recommendation is to deny or stay it until you get additional information. There are a lot of gaps,” O’Mara said.
Jamie Jost, an attorney representing Crestone, questioned witnesses’ conclusions and their experience on specific aspects.
Julie Murphy, director of the ECMC, has recommended that the commissioners approve the plan. The commission will hear closing statements from the parties and start deliberations at 9 a.m. Wednesday.
Crestone has said its proposal complies with state oil and gas regulations as well as Arapahoe County’s rules. The company maintains that the reservoir won’t be harmed because more than 7,500 of rock, including several impermeable formations, separate the reservoir and the oil and gas.
Aurora Reservoir provides drinking water for nearly 400,000 people.
Under the plan by Crestone, a subsidiary of Denver-based Civitas Resources, up to 166 wells would be drilled on 11 locations across about 40,480 acres. Much of the land is state trust lands managed by the State Land Board.
Denver owns the land over the Lowry Landfill, a 480-acre Superfund site at the northeast corner of Quincy Avenue and Gun Club Road. While Crestone has agreed not to frack under the landfill, Democratic Congressman Jason Crow asked the Environmental Protection Agency about potential impacts on the landfill if the drilling sets off seismic activity.
In a letter to Crow, the regional EPA office said the contamination — an estimated 138 million gallons of liquid industrial waste — is contained and that controls are in place “that are protective of human health and the environment.”
The EPA said it asked ECMC to approve “a reasonable setback” for drilling near the landfill. The state has committed to confer with the EPA on specific drilling locations proposed by Crestone.
The commission is considering what’s called a comprehensive area plan. Specific drilling locations would be proposed later.
Lowry Ranch residents have raised concerns about possible health risks from the drilling and oil and gas production and the effects on air quality. The area is part of a large swath of counties along the Front Range that is out of compliance with federal air-quality standards.
Thirty environmental organizations wrote a recent letter to Gov. Jared Polis to urge him to oppose Crestone’s proposal.
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