Forget the Kurds, initially. Just cordon the town, none of our people go in, no food deliveries, no water, no power.
ANybody who wants to leave can leave, by the main gate where they will be checked against pictures of wanted terrorists
Anybody trying to sneak around other than at the main gate gets shot on sight.
After a while it will be a ghost town.
THEN relocate in a few thousand Kurds, and give them all jobs in the oil industry and guarding the pipelines