Brighton City Council finalizes lease with Synergy for oil, gas work

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By Crystal Nelson

BRIGHTON — Brighton City Council gave final approval Tuesday, June 24, for a lease agreement with Synergy Resources Corporation for oil and gas work affecting about 140 acres of city-owned property.

Council approved the agreement 8-0 during a special council meeting, which was needed to complete the second reading of the ordinance before the offer to enter into a lease agreement expired on June 26.

The agreement gives Synergy Resources Corporation a three-year period to obtain oil and natural gas from the city by horizontal wells using hydraulic fracturing. The city will receive a bonus and a 20-percent royalty rate if the corporation is able to extract oil or gas from the wells. 

The agreement does not allow facilities or infrastructure to be built on city property and the work would occur at least a half-mile away from the city’s water infrastructure.

Councilwoman Lynn Baca arrived late to the meeting and was unable to cast her vote.

In other business, council postponed action on a water storage and delivery agreement, which is part of an ongoing water court case, until a future date. Acting Utilities Director Clint Blackhurst said the agreement has not been completed at this time.