Misinformation has recently spread across the Erie community regarding the status of the “Draco Pad” oil and gas project, fueled by concerns that a pending state hearing signifies a collapse of the town’s mineral rights deal with SM Energy. Social media speculation suggested that a scheduled Sept. 24 Colorado Energy and Carbon Management Commission (ECMC) hearing was designed to exclude Erie’s minerals from the project, implying that the operator intended to abandon the agreement approved by the Town Council in June. However, town officials and state regulators have moved to clarify that the hearing addresses a routine request filed by SM Energy back in August 2025—long before the mineral rights negotiations were finalized.
According to town spokesperson Gabi Rae and ECMC representative John Brown, there is no evidence to support the claims circulating online. Brown explicitly confirmed that Erie’s mineral rights remain part of the current drilling and spacing unit (DSU) under review. Furthermore, town officials report that they have received no communication from SM Energy suggesting they intend to withdraw from the mineral rights purchase. The confusion appears to have stemmed from a misunderstanding of the regulatory timeline, as the amendment in question specifically targets the westernmost portion of the project’s drilling plan and has no functional connection to the recent local government agreement.
The confusion is partly rooted in the complex regulatory steps required for oil and gas development. While the Draco Pad DSU was approved in March 2025, operators must also secure pooling applications to prove they have legal access to the minerals they intend to extract. SM Energy did submit an amendment to their pooling application on July 8, which noted an absence of “local government” unleased minerals; however, officials suggest this filing may have been premature, reflecting a state of flux while the town’s sale agreement undergoes due diligence. Because the sale is not yet finalized, the administrative status of those minerals remains fluid.
The situation is further complicated by a resident-led petition that seeks to force a public vote on the mineral rights sale. This petition, which has gathered enough signatures to potentially trigger a November ballot measure or a special election, has created a climate of uncertainty. Mayor Pro Tem Brandon Bell previously expressed concern that the delays associated with the petition process might exhaust the patience of SM Energy, which is operating under a strict state-mandated deadline. The ECMC requires that all construction and drilling for the Draco Pad be completed by May 2028, putting significant pressure on the project’s schedule.
While Bell has warned that such delays could theoretically drive SM Energy away from the deal, there has been no formal indication that the company is planning to exit. The town is currently in the midst of a due diligence phase, with consultants expected to deliver results in approximately one month. Town officials noted that these findings will likely remain private, as they are part of ongoing contract negotiations, and the property in question remains under private ownership until the transaction is legally executed.
Ultimately, the alarmist narratives circulating on social media regarding the Sept. 24 hearing appear to be a case of community members drawing inaccurate conclusions from standard regulatory procedures. As of this week, both the ECMC and Erie’s municipal government maintain that the drilling plan and the mineral rights agreement are proceeding as separate, albeit overlapping, administrative matters. Until official notice is provided by SM Energy, the town maintains that the agreement remains intact, and the upcoming hearing remains focused on the minor adjustments to the drilling footprint initially requested by the operator last year.
