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November 28, 2018

Crestone pushes forward with COGCC applications despite stay

Boulder County requests that the State reject or place the permits on hold

Boulder County, Colo. - In early November 2018, Crestone Peak Resources, LLC filed State applications to the Colorado Oil and Gas Conservation Commission (COGCC) for Form 2A approvals of oil and gas locations and Form 2 permits to drill specific wells in unincorporated Boulder County. The county received notice of these applications starting on November 16 and continuing through November 20. The applications are for well sites and wells in the Comprehensive Drilling Plan (“CDP”) area proposed by Crestone. The COGCC hearing on the CDP has been postponed indefinitely pending the outcome of the county’s lawsuit filed September 25, 2018.

Because the COGCC’s consideration of the CDP is on hold indefinitely, and because the county’s lawsuit against Crestone challenges the legal right to use the sites in the CDP, Boulder County requested that Crestone put its applications on hold until the lawsuit is resolved. Crestone declined, so the county has asked the COGCC to reject or suspend these applications. The county’s comments on each of the Form 2 and 2A applications address the pending litigation, the COGCC continuance of its CDP hearing, the lack of any drilling and spacing units having been established in the area and the county’s on-going public health and safety concerns, as outlined in its comments to drafts of the CDP.

Boulder County requested a response from the COGCC whether it will put these applications on hold or reject them as untimely. Should the COGCC proceed with the applications, the county will request a public hearing in front of the COGCC Commission.

“We are very disappointed that Crestone is jumping the gun with these permit applications when our lawsuit raises important legal questions underlying the entire CDP project,” said Commissioner Elise Jones. “These applications are clearly premature and waste everyone's time.”

The public may comment to COGCC on these applications through COGCC's website by searching for applications in Boulder County at (view the COGCC instructions on how to comment). The deadlines for public comment on the 110 State applications vary; the earliest and safest to rely on is December 6, 2018.

The subject Form 2A and Form 2 applications are permits that are reviewed by the COGCC, but any drilling proposals will ultimately require local approval under Boulder County’s regulations. For more information, please see Boulder County’s Oil and Gas Development website.