2018 Mineral Rights Leases Approved

Updated on Tue, 09/03/2019 - 8:18pm

In Fall 2018, Adams 12 Five Star Schools received two requests from separate companies to lease mineral rights under two district schools. Great Western Oil and Gas requested to lease mineral rights under Prairie Hills Elementary in Thornton, and Extraction Oil and Gas requested to lease mineral rights under Coyote Ridge Elementary in Broomfield. 

The Board of Education voted at its Jan. 16 special meeting to lease the mineral rights located beneath both Coyote Ridge Elementary and Prairie Hills Elementary rather than be force-pooled. State law indicates that forced-pooled parties are to be treated as if they have a working-interest ownership in the wells. This decision was made after taking into consideration all information presented at its Nov. 14, Dec. 19 and Jan. 16 meetings, and input from the district’s outside legal counsel regarding the pros and cons of forced pooling versus leasing.

For more information on the requests to lease mineral rights, including background and timeline, please click the appropriate tab below. 

Great Western Oil and Gas Request — Under Prairie Hills Elementary

Background

Great Western Oil and Gas contacted Adams 12 Five Star Schools with a request to lease 4.66 acres of subsurface mineral rights located approximately two miles beneath Prairie Hills Elementary School’s property.

Surface drilling will take place more than two miles away, at the Tollway Pad located near 156th Avenue and Colorado Boulevard, which is north of E-470. No surface drilling will take place on Prairie Hills property.

In order to address this request to lease mineral rights and determine the best path forward, the Five Star District has retained outside legal counsel to gather more information regarding oil and gas leases.

Timeline

  • Nov. 14 Board of Education Meeting: Matt Sura, the district's outside legal counsel, presented information to the Board of Education about the request to lease mineral rights below both Coyote Ridge and Prairie Hills elementary schools. Sura addressed steps the Five Star District can take to support the best interest of the district and its families, and provided more information regarding the pros and cons of forced pooling versus leasing. There was no Board vote at the Nov. 14 meeting. 
  • Dec. 19 Board of Education Meeting: the board received an update on the request including a presentation on the financial implications associated with forced pooling versus leasing, and information on emergency preparedness plans in the event of an oil and gas incident.

  • Jan. 16 Board of Education Meeting: The board voted at its Jan. 16 special meeting to lease the mineral rights located beneath the school rather than be force-pooled. State law indicates that forced-pooled parties are to be treated as if they have a working-interest ownership in the wells.

    This decision was made after taking into consideration all information presented at its Nov. 14, Dec. 19 and Jan. 16 meetings, and input from the district’s outside legal counsel regarding the pros and cons of forced pooling versus leasing.

Ferrari Energy (related to the Extraction Oil & Gas Drilling Unit) Request — Under Coyote Ridge Elementary

Background

Ferrari Energy (related to the Extraction Oil and Gas Drilling Unit from the Livingston Pad) contacted Adams 12 Five Star Schools with a request to lease 4.21 acres of subsurface mineral rights located approximately two miles beneath Coyote Ridge Elementary School’s property.

Surface drilling will take place more than two miles away, at the Livingston Pad located near the alignment of 156th Avenue and Sheridan Parkway, just south of the Northwest Parkway. No surface drilling will take place on Coyote Ridge’s property.

In order to address this request to lease mineral rights and determine the best path forward, the Five Star District has retained outside legal counsel to gather more information regarding oil and gas leases.

Timeline

  • Nov. 14 Board of Education Meeting: Matt Sura, the district's outside legal counsel, presented information to the Board of Education about the request to lease mineral rights below both Coyote Ridge and Prairie Hills elementary schools. Sura addressed steps the Five Star District can take to support the best interest of the district and its families, and provided more information regarding the pros and cons of forced pooling versus leasing. There was no Board vote at the Nov. 14 meeting. 
  • Dec. 19 Board of Education Meeting: the board received an update on the request including a presentation on the financial implications associated with forced pooling versus leasing, and information on emergency preparedness plans in the event of an oil and gas incident.

  • Jan. 16 Board of Education Meeting: The board voted at its Jan. 16 special meeting to lease the mineral rights located beneath the school rather than be force-pooled. State law indicates that forced-pooled parties are to be treated as if they have a working-interest ownership in the wells.

    This decision was made after taking into consideration all information presented at its Nov. 14, Dec. 19 and Jan. 16 meetings, and input from the district’s outside legal counsel regarding the pros and cons of forced pooling versus leasing.