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Broomfield decides not to issue order halting oil, gas work because of coronavirus concerns

City leaders point to likelihood of legal challenge by Extraction Oil and Gas Co.

DENVER, CO - DECEMBER 12:  Judith Kohler - Staff portraits at the Denver Post studio.  (Photo by Eric Lutzens/The Denver Post)

Facing a likely legal challenge, Broomfield elected officials have decided not to issue a public health order that would have delayed work at an oil and gas site while a statewide stay-at-home order is in place to curb the spread of the coronavirus.

The Broomfield City Council, acting as the county health board, voted 9-1 on Wednesday night against the measure after appearing ready a couple of weeks ago to direct Extraction Oil and Gas Co. to put off the work until the stay-at-home order is lifted.

Gov. Jared Polis has extended the order to April 26 from April 11.

Broomfield leaders wanted Extraction to delay its planned “flow back” on an 18-well site while people are spending most of their time at home. They said they pursued an emergency health order after the company refused to wait .

Extraction has said it wants to start the work in mid-April. The company declined Thursday to specify a date.

Flow back, in which liquids used in hydraulic fracturing are brought to the surface, produces some of the highest levels of emissions in oil and gas operations, according to studies, including a 2019 state health study. Substances emitted include benzene, known to cause cancer.

Several hundred Broomfield residents signed a petition asking the city to halt the work during the coronavirus pandemic to protect nearby residents, including a development for people 55 and older.

Extraction, which said its closed-loop system will greatly reduce emissions, won a temporary restraining order to block action by Broomfield. Although state District Judge Robert W. Kiesnowski, Jr. reversed the order Monday, he warned that if the city issued the health order, the company’s claims of breach of contract “are certainly ripe for adjudication.”

During a March 25 hearing, city and outside attorneys told council members that Extraction, which has an agreement with the city for its oil and gas operations, likely would sue over an order halting its work. They said if the public health order were found factually or legally insufficient, the city could end up paying damages.

“We were told Extraction would have a strong case,” Mayor Pro Tem Guyleen Castriotta said on Thursday. “We were hanging onto hope that we could get this relief for the residents, but we hit a wall.”

Castriotta and other council members expressed concern about the financial risks of a court battle while the city faces budget shortfalls because of coronavirus-related economic upheaval.

Experts working for the city told the council that Extraction’s technology is different from traditional flow-back techniques and is among the most up-to-date.

“Our technology and best practices are known to be among the best in the state. Broomfield’s own oil and gas experts testified to as much multiple times last week in council meetings,” Extraction spokesman Brian Cain said in an email. “We applaud Broomfield’s decision last night and their recognition of responsibilities to their community.”

Castriotta said city officials will watch out for residents’ interest by  continuing to monitor air quality, any complaints and the company’s work.

“This was a tough one to swallow. Senate Bill 181 is here to allow locals to protect the health of the community, but we found out that there are more barriers than anybody anticipated,” said Nathalie Eddy of the environmental group Earthworks, referring to a new law giving local governments more control over oil and gas development.