A proposed 10-well oil and gas development within Johnstown town limits moved forward in the local review process this week, as the Planning and Zoning Commission considered a recommendation for conditional approval of the Carnation Use by Special Review application submitted by Kerr-McGee.
The project, known as Carnation, would include 10 oil and gas wells on a site north of County Road 16 and west of Colorado Boulevard, according to town planning documents.
Town staff recommended conditional approval, with one significant condition: the use would not be approved until the applicant provides proof of approval from the Colorado Energy and Carbon Management Commission, the state agency that regulates oil and gas development. A state hearing on the permit is expected later this spring, according to the staff report.
Planning staff wrote that the proposed well site is surrounded primarily by agricultural land, with a dairy farm residence located approximately 1,697 feet north of the proposed facility. No other residences are noted within 2,000 feet of the site.
Under Johnstown’s land use code, the town cannot regulate where oil and gas facilities may be located, though setbacks for structures near oil and gas facilities are addressed in code. The report notes that location-specific regulation of the well site falls under state authority through ECMC.
Staff found the proposal met the criteria for a Use by Special Review and concluded the project would be compatible with surrounding uses and would not permanently negatively affect long-range plans for the area.
A required neighborhood meeting on the proposal was held Feb. 19 at the Johnstown YMCA, where nearby residents, including an adjacent dairy operator, raised questions and concerns that were discussed with company representatives and state officials, according to the report.
Following Planning and Zoning review, the proposal is scheduled for consideration by the Johnstown Town Council on May 4, 2026, according to town documents.
The Carnation proposal remains subject to state permitting and further review before final approval.
Source: Town of Johnstown Planning and Zoning Commission agenda communication, April 22, 2026.
