DENVER—The Colorado State Land Board has unanimously approved a $137 million oil and gas development lease with ConocoPhillips to develop resources at the 26,000-acre Lowry Range property.
The Denver Post reports ( ) the board had delayed its vote on the lease because another state agency is pressing ConocoPhillips to pay $152 million for cleanup of leaky underground gas tanks at 354 sites. State officials said Friday that dispute is unrelated to the lease.
The deal approved Friday represents the largest per-acre mineral lease price for the land board. ConocoPhillips would pay the state 20 percent royalties on oil and natural gas produced there.
The lease only allows for 650 acres of surface disturbance, but the company can use horizontal drilling to drill multiple wells from a single well pad.
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Information from: The Denver Post,
