Cooperative Development Plan Agreement
Approved with Kerr-McGee
During Wednesday night's meeting, the Board of Trustees approved Resolution 23-115, authorizing the execution of a Cooperative Development Plan Agreement with Kerr-McGee Oil & Gas Onshore. In April of 2021, a similar agreement was approved by the Board of Trustees, but that drilling plan was ultimately denied by the State of Colorado Oil & Gas Conservation Commission.
Subsequent to that denial Kerr-McGee prepared a revised drilling plan which contemplates three separate locations outside, but in close proximity to, Firestone. In exchange for Firestone's willingness to grant right-of-way access permits and enter into certain license agreements, the company has agreed to make a land donation of 78 acres to the Town of Firestone and provide a one-time cash payment of $4 million. In addition, the agreement also includes certain operational standards to mitigate impacts, and includes the commitment of the plugging and abandonment of 57 wells within the Town of Firestone boundaries.