2019 Mineral Rights Leases Rejected

Updated on Thu, 09/05/2019 - 11:32am

In Summer 2019, 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 Century Middle School in Thornton, and Extraction Oil and Gas requested to lease mineral rights under Meridian Elementary in Broomfield. 

The Board of Education voted unanimously at its Sept. 4 board meeting to reject the mineral rights lease offers from both Great Western and Extraction. Based on recent changes in law and rulemaking around the oil and gas industry, there no longer exists a significant liability for mineral rights owners who decide not to sign leases. The board directed district staff to require Great Western and Extraction to use forced pooling if it continues to move forward with extracting the minerals beneath Century and Meridian. The board does not have the authority to stop the drilling and both companies have already received a permit from the state. 

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 Century Middle

Background

Great Western Oil and Gas contacted Adams 12 Five Star Schools with a request to lease 22.27 acres of subsurface mineral rights located approximately two miles beneath Century Middle School’s property. 

Surface drilling will take place more than three miles away, at the Ivey Wellpad located northwest of York Street and 152nd Parkway, just south of E-470. No surface drilling will take place on Century’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

  • Sept. 4 Board of Education Meeting: In order to address this request to lease mineral rights and determine the best path forward, the Five Star District received multiple legal perspectives from outside counsel to gather more information regarding oil and gas leases. Outside legal counsel presented information to the Board of Education in executive session at its Sept. 4 regular meeting.

    Based on recent changes in law and rulemaking around the oil and gas industry, there no longer exists a significant liability for mineral rights owners who decide not to sign leases. As such, the Board of Education voted unanimously at its Sept. 4 board meeting to reject the mineral rights lease offer from Great Western Oil and Gas. Additionally the board directed district staff to require Great Western to use forced pooling if it continues to move forward with extracting the minerals beneath Century. The board does not have the authority to stop the drilling and Great Western has already received a permit from the state. 

Extraction Oil and Gas LLC Request — Under Meridian Elementary

Background

Extraction Oil and Gas LLC contacted Adams 12 Five Star Schools with a request to lease 7.85 acres of subsurface mineral rights located approximately two miles beneath Meridian Elementary School’s property.

Surface drilling will take place more than two miles away, at Extraction Oil and Gas LLC’s Northwest A and B pads located on the northeast corner of Zuni Street and 156th Avenue, just south of Northwest Parkway. No surface drilling will take place on Meridian’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

  • Sept. 4 Board of Education Meeting: In order to address this request to lease mineral rights and determine the best path forward, the Five Star District received multiple legal perspectives from outside counsel to gather more information regarding oil and gas leases. Outside legal counsel presented information to the Board of Education in executive session at its Sept. 4 regular meeting. 

    Based on recent changes in law and rulemaking around the oil and gas industry, there no longer exists a significant liability for mineral rights owners who decide not to sign leases. As such, the Board of Education voted unanimously at its Sept. 4 board meeting to reject the mineral rights lease offer from Extraction Oil and Gas LLC. Additionally the board directed district staff to require Extraction to use forced pooling if it continues to move forward with extracting the minerals beneath Meridian. The board does not have the authority to stop the drilling and Extraction has already received a permit from the state.