Firestone has accepted $4 million and a 78-acre land donation from oil and gas operator Kerr-McGee as part of an agreement that will allow the company to drill near the town.
Kerr-McGee has prepared a drilling plan for three locations outside of, but still near, the town limits.
One pad is located on Weld County Road 28, east of the St. Vrain Valley School District bus barn. Another pad is southwest of Weld County Road 18 and Weld County Road 17 and the final one is southwest of Weld County Road 20 and Weld County Road 19.
The town has granted right-of-way access permits to Kerr-McGee that will allow the company's construction vehicles and equipment to get to the pad sites. The plan requires Kerr-McGee to pipe all oil and gas. It does not allow for the truck transport of oil and gas products.
"We believe in building strong, lasting partnerships with the local communities where we operate. Our development plans should not only achieve our goals but also bring meaningful and positive benefits to these areas," Kerr-McGee, which is Oxy's permitting name in Colorado, said in a statement.
Firestone Mayor Don Conyac said Friday that he supported the agreement between the town and Kerr-McGee.
"The oil and gas industry ... in Weld County and Firestone, we work together," Conyac said. "We have a good relationship with them."
How the $4 million will be spent is ultimately up to the Firestone Board of Trustees. However, it's possible that some of it will go toward offsetting the cost of bringing Target to town.
The town agreed to pay Target up to $2.5 million for site acquisition costs as part of a development agreement with the retailer.
The 78 acres Kerr-McGee gave to the town is at the southwest corner of Grant Avenue and Frontier Street. The property is currently undeveloped but zoned for medium-density residential usage.
"We don't know exactly what we want to do with it yet," Conyac said of the 78 acres. "That's yet to be determined."
Kerr-McGee has also agreed to plug and abandon 57 wells within the town's boundaries.
Town Manager A.J. Krieger said Firestone takes pride in working simultaneously to protect residents' health and safety while also respecting private property rights.
"By working collaboratively with Kerr-McGee, we've reached an agreement that respects not only their right to drill and produce but also recognizes how important domestic energy production is to our country," Krieger said.