Erie Development News

Erie Town Council Approves Sale of Mineral Rights and Real Property Exchange After Reconsideration

The Town Council of Erie reconsidered and ultimately approved Ordinance No. 28-2026, which authorizes the sale of town-owned mineral rights to 7N LLC, the conveyance of real property from 7N LLC, and approves agreements with 7N LLC, SM Energy Company, and Extraction Oil and Gas Incorporated regarding the exchange of mineral rights for real property. This decision followed a 3-3 tie vote on June 16th, with Councilmember O'Connor moving for reconsideration due to public intimidation and increased awareness of the agreement. Despite concerns raised about the procurement process, potential conflicts of interest, and the long-term implications of selling a public asset, the council voted 5-2 to approve the ordinance. The approved deal includes a $4.5 million upfront cash payment, conveyance of approximately 158 acres of land, plugging of 17 older wells, and future royalty payments, while the town retains mineral rights below a certain depth and the ability to conduct its own environmental testing at the Draco Pad. The town attorney confirmed no known violations of law or contact from the Attorney General's office regarding the process. An independent audit will be conducted regarding the procurement process lapse.