The Energy and Carbon Management Commission on Oct. 22 approved the Outpost 33‑8 oil and gas development plan submitted by Catamount Energy Partners for lands in Township 33 North, Range 8 West in La Plata County. The commission’s approval included conditions of approval to limit winter disturbance and to reduce the number of produced‑water tanks once the site reaches production.

Catamount proposed a roughly 2,560‑acre drilling and spacing unit targeting the Mancos formation, with two concurrent Form 2A requests: an expansion of an existing Red Willow‑operated pad (Outpost 33‑8) to host 10 horizontal wells, and a temporary tank pad for freshwater storage used during completion operations. Catamount told the commission the tank pad would be fully reclaimed after completion operations.

The application is exploratory: Catamount intends to drill two initial wells in a first occupation (to test the play) and if successful carry out subsequent occupations to drill the remainder. Because the pad sits within mapped mule deer severe winter range, CPW consulted and the commission incorporated protective stipulations into the approval. CPW granted a waiver for the location’s mapped wetland upgrade conditional on protections and mitigation fees, and the Southern Ute Indian Tribe submitted a letter supporting the project.

Commissioners and staff debated the operational timing and the number of tanks. Catamount initially proposed six produced‑water tanks for early operations, saying the early production of water on new wells requires on‑site storage before pipeline takeaway is available. During deliberations Catamount agreed to an operational condition after production phase that would reduce tankage; the commission adopted a slightly more flexible, documentation‑based condition following commissioner input.

The conditions of approval adopted by the commission included the director‑recommended scheduling stipulation and two additional operational conditions negotiated on the record:
1) If all required local, state and other permits are acquired by Dec. 1, 2025, Catamount may proceed to continuously construct, drill and complete the two initial horizontal wells in the first occupation; if permits are not obtained by Dec. 1, 2025, construction and drilling must be postponed until May 1, 2026 (the director’s recommended COA).
2) Operator will conclude the first‑occupation drilling and completion operations and demobilize from the location no later than Feb. 7, 2026. Operator will employ best efforts to conclude those operations and demobilize as early as possible. If upset conditions are encountered that delay demobilization, the operator will document the upset via a Form 4 sundry and must conclude operations no later than March 1, 2026.
3) Upon reaching production phase, the operator will make best efforts to reduce the number of produced‑water tanks to the minimum tank count necessary for production operations; the operator will document the tank count reduction by filing a Form 4 sundry.

The commission voted to approve the Outpost 33‑8 OGDP with those conditions. ECMC staff said notice and consultation were provided to La Plata County, the Southern Ute Indian Tribe and Colorado Department of Public Health and Environment. Catamount said it holds a pad sharing agreement with Red Willow Production Company and has executed surface use agreements with the landowner. The company also described best management practices it will implement, including electrified operations where practicable, closed‑loop drilling, raptor and migratory bird surveys prior to site work, weed control and shielded lighting.

Commissioners noted the exploratory nature of the proposal and the need to balance operational efficiency, local permitting timelines and wildlife protections. Catamount and staff indicated they expected La Plata County to complete its permit review within days of the hearing. The commission’s motion to approve passed with no recorded opposition on the record.