HomeMy WebLinkAbout20101864.tiff HEARING CERTIFICATION
DOCKET NO. 2010-32
RE: SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW
PERMIT#1747 FOR AN OIL AND GAS SUPPORT FACILITY (CLASS II OILFIELD
WASTE DISPOSAL FACILITY - SALTWATER INJECTION FACILITY AND A WATER
RECYCLING FACILITY) IN THE A (AGRICULTURAL) ZONE DISTRICT - MARCUM
MIDSTREAM 1995-2 BUSINESS TRUST, DBA CONQUEST OIL
A public hearing was conducted on August 18, 2010, at 10:00 a.m., with the following present:
Commissioner Douglas Rademacher, Chair
Commissioner Barbara Kirkmeyer, Pro-Tern - EXCUSED
Commissioner Sean P. Conway
Commissioner William F. Garcia
Commissioner David E. Long
Also present:
Acting Clerk to the Board, Jennifer VanEgdom
County Attorney, Bruce Barker
Planning Department representative, Kim Ogle
Health Department representative, Troy Swain
Public Works representative, Don Carroll
Public Works representative, Janet Carter
Public Works representative, Clay Kimmi
The following business was transacted:
I hereby certify that pursuant to a notice dated July 16, 2010, and duly published July 21, 2010,
in the Fort Lupton Press, a public hearing was conducted to consider the request of Marcum
Midstream 1995-2 Business Trust, dba Conquest Oil, for a Site Specific Development Plan and
Use by Special Review Permit#1747 for an Oil and Gas Support Facility (Class II Oilfield Waste
Disposal Facility - saltwater injection facility and a water recycling facility) in the A (Agricultural)
Zone District. Bruce Barker, County Attorney, made this a matter of record. Chair Rademacher
advised the applicant's representative, Dale Butcher, that he has the option of continuing the
matter to a date when the full Board will be present. However, if he decides to proceed today,
the matter will require three affirmative votes, or in the case of a tie vote, Commissioner
Kirkmeyer will review the record and make the determining vote. Mr. Butcher indicated he
would like to proceed today.
Kim Ogle, Department of Planning Services, presented a brief summary of the proposal and
entered the unfavorable recommendation of the Planning Commission into the record as written.
He stated the site is approximately twelve acres in size, and is located north of County Road 74,
west of County Road 69, and northwest of State Highway 392. He indicated the site is located
outside of the three-mile referral area for any municipality, and the property is relatively flat, with
a slight slope from north to south and east. He stated the site will be utilized for oilfield brine
water disposal, containing tanks for the brine water, separator tanks, and one building
containing the pumps and office. He further stated there will be two employees on the site when
accepting trucks for disposal between the hours of 7:00 a.m., and 10:00 p.m., and it is expected
C(✓ `. , 2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 2
that a total of fifteen trucks will arrive approximately four times per day. Mr. Ogle indicated the
surrounding lands are predominantly agricultural in nature, with several single-family residences
located within the general area. He indicated a commercial well will serve the facility and the
permit application is currently pending, and a septic system will handle effluent flows. He
clarified the primary access to the site will be on County Road 74, with traffic travelling to State
Highway 392 to head north or south. He explained independent water haulers will bring brine
water to the facility, and each load is inspected by Conquest before the water is placed into the
primary tanks for filtering. He indicated the oil skim is resold and the remaining liquid, brine
water, is filtered and re-injected, or processed through the water recycling facility. He indicated
ten referral agencies reviewed the application materials, with four providing comments which
have been addressed within the Conditions of Approval and Development Standards. He
further indicated several letters of concern have been received, including one petition of
opposition, several telephone inquiries have been received by staff, and there has also been
several reviews of the case file. He clarified the concerns presented included additional traffic,
loss of property value, effective screening methods, and the affect of this operation on water
quality. Mr. Ogle displayed photographs of the site and the surrounding area, and in response
to Chair Rademacher, he confirmed there are two residences within one-quarter mile west of
the site.
Don Carroll, Department of Public Works, confirmed access to the site will be on County Road
74, which is classified as a paved arterial road, requiring 140 feet of right-of-way at full buildout,
and the applicant will be required to reserve an additional 40 feet of right-of-way. He stated
County Road 69 is classified as a local gravel road, requiring 60 feet of right-of-way at full
buildout, and State Highway 392 is under the jurisdiction of the Colorado Department of
Transportation (CDOT). He indicated the applicant will be required to install tracking control for
the site, by either paving a distance of 300 feet into the site, or 100 feet of pavement, with the
addition of two cattle guards. He confirmed this requirement will help to keep trucks from
tracking mud and debris onto the road, and he clarified the access is approximately 300 feet
from the intersection of County Roads 74 and 69. Mr. Carroll indicated the site will contain one
building, four unloading areas, seven recycle tanks, and 23 other tanks, and 15 to 20 trucks,
weighing approximately 40 tons each, will access the site to unload water four times per day, for
a total of 60 to 70 roundtrips per day.
Janet Carter, Department of Public Works, stated in an effort to address road safety in the area,
a hazard analysis was performed, and it was determined there have been three reported traffic
accidents within the past nine years. She described the traffic accidents, occurring in 2001,
2007, and 2009, and indicated the most recent traffic count taken on State Highway 392, in the
year 2009, indicates approximately 1,800 vehicles per day, with eighteen percent of the traffic
being trucks. She stated the most recent traffic count on County Road 74, taken in 2008,
indicated 147 vehicles per day, with the 85th percentile of traffic travelling at a speed of 59 miles
per hour, and sixteen percent of the overall traffic being trucks. She clarified CDOT attempted
to collect additional traffic counts after the Planning Commission hearing, since the public
indicated the counts were not accurate; however, there was not adequate time to obtain new
counts, due to a construction project in the area. Ms. Carter clarified, based upon the traffic
information provided, this location is not considered to be hazardous through engineering
practices, and auxiliary lanes are not currently warranted, based upon the current conditions.
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 3
She explained the information regarding this intersection was calculated by a computer program
which ranks the associated hazards, and this intersection received a value of 0.67; however, in
order to be considered a dangerous location, the minimum standard value is 2.22. She
indicated the applicant is proposing 70 roundtrip vehicles, on a daily basis, and based upon this
trip generation, auxiliary lanes are still not warranted at this time; however, the lanes are
required within the long-range plan for State Highway 392, and are currently proposed for the
year 2030. She explained the process for determining the long-range forecast, and stated the
Department is requesting language within the Improvements Agreement to include the specific
triggers for when turn lanes are warranted and shall be installed. She suggested additional
language for Condition of Approval #1.1, as referenced within Exhibit P, which she read for the
record. She clarified the applicant will be required to be pay a proportional share of the turn
lane improvements to be constructed on State Highway 392, and although the additional volume
of traffic associated with the facility may trigger the need for additional improvements, the need
for improvements may not be solely based upon the traffic travelling to the facility. In response
to Chair Rademacher, Ms. Carter confirmed language regarding trigger points on State
Highways has not been included within Resolutions before, because CDOT has jurisdiction on
these roads, and the County is not able to dictate what happens within another jurisdiction.
However, within the conversations held with CDOT, it was determined that the proposed
language would be the most acceptable way to confirm that the applicant will participate when it
becomes necessary for the turn lanes to be constructed. She confirmed CDOT will make the
final determination regarding improvements and will conduct future traffic studies on State
Highway 392, and the Department will provide future traffic counts for County Road 74. Chair
Rademacher expressed his concern regarding the Department conducting work which should
be completed by CDOT.
In response to Commissioner Long, Mr. Barker clarified the proposed language is aiming to
require that the applicant work with CDOT, which can be a requirement of the USR permit. He
explained a previous USR permit required an applicant to work with the County regarding the
access to the facility on county roads, even though the facility was located within the Town of
Milliken. He confirmed it is not an uncommon request, and this situation has occurred with other
jurisdictions as well. Mr. Barker expressed his concern regarding the proposed language, which
indicates "the Department will require," which puts the burden on the Department, instead of
upon the applicant, and he suggested the language be re-worded to state, "the applicant
shall...". Ms. Carter clarified CDOT is allowed to required the turn lanes through the use of the
access permit, and specific requirements may be written into an access permit. Chair
Rademacher indicated he concurs with the recommendation provided by Mr. Barker, and
Ms. Carter indicated agreement as well. In response to Chair Rademacher, Ms. Carter
indicated there is not an established haul route for this facility, as it is expected that the traffic
will mainly utilize State Highway 392, and haul routes are typically only required when the facility
is located a long distance from a major road. She further indicated County Road 74 is a paved
road, and typically haul routes are required for facilities which are located on gravel roads.
Commissioner Long indicated the traffic from the facility will not access directly from State
Highway 392, and he questioned how the access permit with CDOT will be able to control this
facility. Ms. Carter clarified this facility will generate more than a 20 percent increase of the
overall traffic on State Highway 392, therefore, CDOT has the ability to require the applicant to
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 4
submit an access permit. She indicated CDOT will typically require a permit from a facility that
is located within one-mile from a State Highway, or along a frontage road. Further responding
to Commissioner Long, Ms. Carter confirmed if the traffic generated by this facility does not
create more than a 20 percent increase of the overall traffic along State Highway 392, the
applicant may not be required to obtain an access permit. She clarified the access permit will
create a baseline level for traffic generation, and the permit may be re-evaluated within the
future, and the facility may not be required to participate in the construction of the turn lanes, if
the overall percentage of traffic dramatically increases in the future.
Troy Swain, Department of Public Health and Environment, stated Conditions of Approval #1.F
through #1.H, and #6.E through #6.J, and Development Standards #3 through #20 address the
concerns of the Department. He clarified the waste disposal facility will also conduct water
recycling activities on the site, and the Department will be conducting regular inspections of the
facility.
Mr. Butcher confirmed Conquest Oil will be operating this site, and the company was
established in 1984, and has been an operator within Weld County since 1993. He confirmed
the facility will dispose of wastewater in an environmentally sensitive way, by either re-injecting
the water, or treating the water for re-use. He confirmed the company currently operates five
injection facilities within Weld County, and he explained the wastewater treated at these
facilities is primarily made up of water, brine, sand, and a small amount of hydrocarbons. He
explained the oil is removed from the water before it is injected or recycled, and he indicated
this is the preferred way to dispose of the water collected by oil and gas operations, as it has
been proven to be environmentally sound. He confirmed the site will be regulated by the
Colorado Oil and Gas Conservation Commission (COGCC) and is subject to regulations issued
by the Environmental Protection Agency (EPA). He further confirmed the Weld County
Department of Public Health and Environment will regulate the use of the surface facilities on
the site, and the recycling of the water will be regulated by the Colorado Department of Public
Health and Environment. He explained the construction of the wells will protect the fresh water
aquifers, secondary containment is required, and the facility will contain concrete berms and
floors, and impermeable liners, to help prevent damage caused by leaks. He further explained
the flow lines are above ground and the property will contain monitoring wells, which are
monitored on a quarterly basis. Mr. Butcher displayed an aerial map, depicting the residences
within a three-mile area from the facility, contained within Exhibit O, and confirmed the area is
sparsely populated. He indicated he understands there are several concerns regarding the
traffic within the surrounding area, and he reiterated there have been three accidents since the
year 2001, with one including a serious injury; however, none of these accidents involved a
truck. He explained all of the truck traffic expected to travel to this facility is already utilizing
surrounding roads in the area to travel to other facilities, and this new facility will actually
significantly reduce the amount distance that many of these trucks currently travel to facilities in
Greeley, LaSalle, or Kersey. He clarified the facility, when it reaches total capacity, will actually
reduce the amount of miles driven by these trucks by approximately 2,400 miles per day, or
750,000 miles per year. In response to Commissioner Long, Mr. Butcher confirmed all of the
trucks expected to travel to this facility already travel a much farther distance south to one of the
existing facilities, and it is expected that virtually all of the traffic to this facility will come from
north of the facility.
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 5
Mr. Butcher indicated there were many questions raised at the Planning Commission hearing,
and he explained the company always researches a potential location before determining it is a
good location. He clarified he seeks a potential site which is within a general area of demand,
located on a paved road, and within an area of low residential density, and this site meets all of
these criteria. He confirmed he met with representatives from the Department of Public Works
at a very early stage to confirm the roads in the area were adequate, and at that time, he was
informed there was not a Fire Protection District serving this site. He explained he then made
contact with the Galeton Fire Protection District, which is located approximately eight miles
away, and made arrangements to annex into the District. He confirmed he worked with the
District to determine the proper fire prevention measure, including fire barriers, and all of these
similar facilities contain significant fire suppression equipment on the site, with the employees
receiving thorough training regarding the use of the equipment. He indicated the storm
drainage plans for the property have been created, and the dust control on the site will be
addressed through the use of a paved entrance and driveway; however, magnesium chloride
will be utilized on other portions of the site, if necessary. He further indicated the Lighting Plan
has been submitted for review, and due to the advanced lighting systems available, there
should be minimal impact to surrounding property owners. He explained there is another
injection well facility located five miles south on State Highway 392, which is operated by
another company; however, the facility has strict restrictions regarding the amount of water it
may accept and process, and this facility is wholly inadequate to service the entire oil and gas
industry in this area of the County.
Mr. Butcher confirmed Conquest Oil works hard to be a good neighbor, and he indicated he has
met with several of the neighbors and gave them the contact information for the other facilities
already in operation. He briefly described the situation he encountered with a surrounding
property owner at the first facility for which a USR permit was issued in the year 1993, indicating
the neighbor was initially opposed to the facility; however, this neighbor confirmed Conquest Oil
was a great neighbor to have after the first year of operations commenced. He clarified this
neighbor wrote a letter of support for the applicant, marked Exhibit I, which he reviewed for the
record. He explained the oil and gas industry is a large part of the economy within Weld
County, and these activities provide revenue and thousands of jobs for residents. He reviewed
the specific statistics of oil and gas funds provided to the Eaton and Briggsdale School Districts,
and he confirmed it is apparent that the area has a need for additional support facilities,
especially in light of the recent discovery of additional natural gas resources within the northern
portion of the County. In response to Commissioner Conway, Mr. Butcher confirmed all of
Conquest's other facilities are located within a Fire Protection District, and this will be the first
site where the property will annex into a District. Chair Rademacher indicated most of the
surrounding land in that area is within a Fire Protection District, and he is surprised that this
particular property has not been included. Commissioner Long clarified the area has not been
annexed by the District, due to its low density and the reluctance of the surrounding property
owners. In response to Chair Rademacher, Commissioner Long clarified the homeowners
within this area are provided fire protection through mutual aid agreements. Responding to
Commissioner Conway, Mr. Butcher confirmed it is his intention to annex into the District.
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 6
Andy Peterson, professional engineer with Peterson Energy Management, represented the
applicant and confirmed he has over 30 years of experience with wells. He briefly explained the
process for drilling one of these wells, indicating the first step is to drill a twelve-inch hole to a
depth of approximately 545 feet, and then the hole is cased with steel and cemented back to the
surface. He confirmed the depth will vary, depending on the depth of the aquifers and existing
wells within the surrounding area, and these proposed wells will most likely contain a deeper
surface setting depth. He confirmed the necessary depth will be determined by the COGCC,
and the purpose of this drilling is to get past the surface aquifers and provide the proper casing
so that they are protected. He further explained a 70-inch bit is utilized to drill down to a total
depth of approximately 10,000 feet, and a string of steel casing is set and the area is cemented
all the way back up to the surface. He indicated the zones for injection are picked, and the
casing is opened at the bottom for water to be injected into those zones for testing. He further
indicated a string of steel tubing is inserted and the annular space surrounding this tubing is
continually monitored for any signs of leaks, which may be detected immediately. He confirmed
the tubing is easily removed, and is either repairable or replaceable, if necessary. Mr. Peterson
indicated the COGCC is charged with protection of the underground sources of drinking water,
and this is accomplished through the installation of five barriers, three strings of steel, and two
zones of solid cement. In response to Chair Rademacher, Mr. Peterson confirmed he has not
experienced any contamination within this area during the past 30 years.
Craig Mulica, Engineer, CGRS, Inc., displayed a schematic of the existing C6 facility, as
contained within Exhibit O, and explained the monitoring program will involve the installation of
groundwater monitoring wells into the shallow aquifer. He clarified the aquifer depth at this
proposed location will be between 18 to 22 feet below top of ground surface, and the monitoring
wells will obtain baseline water quality samples, to determine the natural water conditions at this
site. He further clarified the wells will be monitored every three months, for the purpose of
pinpointing any changes in levels and for the purpose of locating hydrocarbons, chlorides, and
dissolved solids. He confirmed the review of these wells will confirm if there are any
contaminants getting beyond the secondary containment, liners, and sumps, and if discovered,
further investigation will be necessary to determine if there is an issue. In response to Chair
Rademacher, Mr. Mulica confirmed the monitoring wells are provided oversight by the COGCC,
and his agency provides the sampling and monitoring, which are submitted to a certified
laboratory. He indicated the results are then provided to the COGCC and the operator of the
facility. Further responding to Chair Rademacher, Mr. Mulica indicated the unloading pad is
constructed of concrete, with a liner underneath, and if any fluids make contact with the liner, it
will be known within the sub-pad monitoring report, and he confirmed there is also a liner
underneath the sump. He further confirmed the liners are constructed in accordance with the
regulations of the COGCC.
Virginia Harvey, surrounding property owner, expressed her concerns regarding the safety of
traffic and indicated that if one child is injured or killed at the adjacent school bus stop, then
everyone here today will be guilty of not doing their best. She requested the proposed injection
facility be relocated to a safer area, and confirmed the location of the facility will not affect the
overall oil and gas revenue received by Weld County. She acknowledged a more likely
placement for the facility would be to the south of the proposed site, or within the surrounding
area of the Town of Grover, especially since the applicant has already discussed building a
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 7
similar facility within the Grover area. She explained this area of Weld County is agricultural in
nature, not commercial; however, she does understand that oil well drilling will continue to
happen within this area. She clarified there are already too many hazards in this vicinity, and
the truck traffic generated by the proposed facility will add to the overall hazardous condition of
this intersection with State Highway 392. She confirmed the applicant is proposing to send at
least 60 trucks per day to this facility, loaded down with over 5,000 barrels of water, which
equates to one truck, weighing up to 40 tons, accessing the site every 20 minutes. She stated
the surrounding area actually is quite populated, and the traffic travelling to the archery range is
negligent, and vehicles repeatedly run the Stop sign. She explained when vehicles approach
this intersection, they must remain alert to all of the off-set roads, and numerous accidents have
occurred along State Highway 392. She indicated she previously submitted a petition for the
record, marked Exhibit H. In response to Commissioner Conway, Ms. Howard confirmed a
school bus stop is located on the east side of the intersection of County Road 74 and State
Highway 392, which is in very close proximity to the proposed facility. She explained she
understands there are many trucks which are already traveling on the roads within the
surrounding area; however, this facility will require the trucks to turn at this dangerous
intersection. Further responding to Commissioner Conway, Ms. Howard submitted her poster
map for the record, marked Exhibit J, and gave a brief explanation of how the school bus
accesses the property for picking up students waiting at the site.
Rick Mondt, Superintendent, Briggsdale School District RE-10J, confirmed the east view
photograph displayed by staff depicts the bus stop in the background. He confirmed this
location is the safest place for the bus to pick up and drop off students, since it provides an area
where the bus may safely turn around. He indicated approximately 20 students get picked up
and dropped off from this site on a daily basis during the school year, and many of the students
wait within their family vehicles until the bus arrives in the morning. In response to Chair
Rademacher, Mr. Mondt confirmed the pick up location is a dirt area, donated by Dr. Brown, and
tends to be fairly crowded with all of the waiting vehicles.
Leonard Harvey, surrounding property owner, expressed his concerns regarding the traffic
counts provided by staff, and he clarified County Road 74 was not paved in the year 2008, when
the count was taken, since the paving project began in Spring, 2009, and was just completed a
few weeks ago. He indicated the traffic on State Highway 392 has increased at least 25
percent, and he confirmed he is a heavy equipment mechanic who travels these roads
frequently. He clarified he recently began counting the number of water trucks utilizing the road,
and on one specific night, there were eleven trucks travelling on the road between the hours of
12:00 and 2:00 a.m. He stated the water trucks will be traveling these roads 24 hours per day,
and the amount of truck traffic tends to be heavier between 10:00 p.m., and 12:00 a.m., when
shifts are changing. He indicated the Department provided inaccurate information regarding the
traffic conditions, and he confirmed he is concerned for all of the children in the area which
utilize the school bus stop area.
Bill May, surrounding property owner, expressed his concerns and acknowledged this proposed
facility is a profoundly bad idea. He indicated residents within the area fear the threat of fire, the
lack of water, and the traffic conditions on State Highway 392, and virtually everyone living
within the vicinity has had a friend or relative involved in a traffic accident. He stated State
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 8
Highway 392 is one of the most dangerous roads in the State of Colorado, and he indicated
there is already a similar facility located on State Highway 392, operated by Apollo. He clarified
the request for this facility is basically a war between Conquest and Apollo, with the welfare of
the residents being caught in between the war. Mr. May stated Steve Wells, of the Wells
Ranch, confirmed land was set aside for Conquest to construct a new facility on his property;
however, he requested payment for the nuisance of having a large number of trucks driving by
his residence. He further stated Mr. Butcher indicated to him that it would be too expensive to
construct a facility on the Wells property. He clarified the trucks travelling to and from the facility
will travel through the intersection on a daily basis, and the rest of the traffic will be required to
stop and wait for the trucks to be ensure traffic is clear before making the turn. He confirmed
most of the traffic travels at a high rate of speed, most likely at 70 miles per hour, and accidents
happen all the time, and create a large mess. He explained the left-hand turn from State
Highway 392 is not an a 90-degree angle, and a truck will be required to take up the entire
intersection in order to get a large truck turned off of the road. Mr. May further expressed his
concerns regarding water quality, and confirmed another operator recently had a leak in the
lining and had to pay a rancher for the damage the leak caused on his property. He explained
there is already an injection well within fairly close proximity, and this community does not need
another injection well. He submitted informational materials, contained within Exhibit K,
regarding the new process of trilogy technology, which does not require injection of the water.
He clarified a study was completed within the State of Utah where the water is reprocessed
above the ground, and may be treated to the point where it may be consumed as drinking water.
He further expressed his concerns regarding fire protection on the site, and he believes if a fire
breaks out at this facility, the entire Section will burn. He clarified the fire district does an
excellent job within the area; however, it is a volunteer force, therefore, response times are
often delayed. He submitted photographs taken after a previous fire in the surrounding area,
contained within Exhibit L, and he confirmed a total of 700 acres burned in a very short amount
of time. He clarified a road grader working in the area was able to get to the site and cut a fire
break before the fire was able to spread any farther, and that action saved many more acres.
He explained he understands the oil and gas industry is important to Weld County; however, it is
not fair for the area residents to be the ones who suffer by experiencing all the traffic which will
be travelling to the two injection wells located along State Highway 392. He confirmed the
applicant does have options for other locations, or other technology to clean the water.
James Dilka, surrounding property owner, confirmed his children ride the school bus from the
pick-up site at the corner of State Highway 392 and County Road 74, and he further confirmed
he is the Assistant Chief of the volunteer fire department. He clarified the department does
provide coverage for this proposed property; however, a fire district has not been enacted for
this area. He acknowledged the applicant has the ability to annex into the Galeton Fire
Protection District (FPD); however, the site will experience problems with confusion at dispatch,
especially since State Highway 392 will not be annexed into the District. He clarified the
Galeton FPD does not currently extend past County Road 65, and he confirmed there is a
mutual aid agreement for this area. Mr. Dilka clarified the bus stop is in very close proximity to
the proposed facility, and there are residences within one-eighth of a mile. He further clarified
all of the intersection within the area are angled, which makes it nearly impossible for a semi-
truck to be able to make an adequate turn if there is another vehicle waiting at a corner of the
intersection. He explained he was on duty last year when there was a traffic accident involving
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 9
a large truck, and he believes the traffic counts are considerably lower than the actual amount of
traffic utilizing these roads. He indicated there are several housing developments within the
surrounding area, and these roads act as a main thoroughfare for the residents living within
these developments. He confirmed most of the traffic travels at high speeds, and it is almost
impossible to see when making a turn, since the roads do not align properly. He further
confirmed many motorists have to complete an illegal turn just to be safe, and there are many
accidents which happen along State Highway 392 which go unreported. Mr. Dilka indicated the
eleven acres of property for this proposed facility has been underwater on numerous occasions
after rainstorms, and the drainage from this site goes under the roads and eventually into Crow
Creek. He confirmed he believes the injection well will be safe, and he does not have any
personal grievances against Conquest Oil; however, the company will not be able to dig a
detention area large enough to hold all of the runoff from this site. He explained this site is a
bad location for this facility, and if the applicant were to relocate this facility to another area,
even more miles could be saved on a daily basis. He further explained most of the truck traffic
will generate within the Grover area, therefore, this proposed facility should be located there.
Mr. Dilka concurred with the information presented by Mr. May and indicated the company could
utilize the new techniques available so that water does not have to be re-injected, or clean water
hauled from the site by contaminated trucks. In response to Chair Rademacher, Mr. Dilka
confirmed the housing developments were completed within the past five to ten years, during
the most recent housing boom. He clarified he has lived in the area for over 23 years, and the
traffic in the area never used to be excessive. He reiterated he is not opposed to the oil and gas
industry; however, this location is a bad idea, due to the dangerous intersection, and the
applicant should consider another location with clear sight distance.
Scot and Chelle Wahlert, surrounding property owners, confirmed there have been several
properties sold within the immediate area, they purchased their property in 1998, and there are
approximately 20 families who utilize County Road 65 for access to their residences.
Mr. Wahlert explained the area vegetation is sparse unless there is a large amount of rain fall,
as most of the area produces dryland crops, and when a fire occurs, a property owner is almost
guaranteed to lose a few acres, which is the risk taken for living in this area. He confirmed his
biggest concern is regarding the traffic, especially since there are a large number of residences
located east on County Road 74. He clarified most of the property owners within a five-mile
radius travel to State Highway 392 as their main route, and a large amount of trucks and trailers
visit the veterinary facility operated by Dr. Brown on the east side of State Highway 392. He
explained he does not know much information about the existing Apollo site; however, he does
not understand why another injection facility is necessary within a close proximity. He clarified
the applicant should have taken the dangerous intersection into consideration, property values
within the area will not increase just because Conquest is a "good neighbor," and he does not
believe the company will receive a warm reception from any of its neighbors, like discussed at
another facility. Mr. Wahlert indicated he understands the importance of the oil and gas
industry, and if the industry is developed properly, it provides a benefit for all residents within the
surrounding area. He clarified there are three wells currently located on his property, and he
appreciates the testimony provided by the applicant's representatives; however, he is not
convinced that the employees on the site will provide the proper follow through.
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 10
Ms. Wahlert expressed her concerns regarding the existing traffic and she indicated the
Department's perception of the traffic is skewed, since it is done from an office; however, she
drives through this intersection on a daily basis, and she understands the traffic patterns. She
submitted an accident report from the Weld County Sheriff's Office, marked Exhibit M, which
indicates many more than three accidents, just from the year 2009. She confirmed she has not
been previously assured that Conquest Oil will be a "good neighbor," especially since company
representatives had to come apologize after they were trespassing on the property without
adequate notification. She confirmed there were numerous concerns raised at the Planning
Commission hearing, including concerns regarding the injected water, and one of the applicant's
engineers previously indicated that the re-injected water is "slightly undrinkable," which will
prove to be dangerous for the cattle on her property. Mr. Wahlert confirmed that accidents can
happen, even though a company will try its hardest not to let an accident occur. He clarified he
is not opposed to the injection well facility; however, it should be constructed in a better location
where the trucks could remain up north. Ms. Wahlert indicated it appears the applicant is driven
solely by potential profits, and they are not concerned about the other issues which affect the
surrounding community.
Kim Pfeiff, surrounding property owner, stated the applicant did not hold a community meeting,
and many of the concerns presented are the same for each family living within this area. She
submitted photographs of the intersection, marked Exhibit N, depicting that the intersections are
offset and very narrow. She clarified when a vehicle approaches an intersection to complete a
turn, it becomes necessary to pull to the side of the lane to be able to have a clear view. She
confirmed she took these photographs two days after the Planning Commission hearing, and
there are lots of distractions in the area, with cars pulling around you if you are waiting to turn.
She confirmed it is not possible to see the corner of State Highway 392 from the intersection of
County Roads 69 and 74, and most drivers do not turn and look back to make sure they have
the adequate clearance. She requested that the applicant reconsider the site for this proposed
facility, and confirmed the water trucks on the roads already travel at an excessive speed. She
confirmed trucks try to pass each other all of the time, and recently, a truck almost hit the mail
carrier in front of her residence because he was not paying attention to turning traffic.
Kay Washburn, surrounding property owner, indicated he is a rancher/farmer, and he agrees
with all of the concerns which have already been presented. He confirmed he has lived in the
surrounding area all of his life, and State Highway 392 has become a dangerous road,
experiencing a large amount of accidents. He indicated he has lost several friends during these
accidents, and during winter months, the hazards on the road are even worse, due to the
freezing snow and ice. He explained when the road is slick, it will create additional problems for
the trucks trying to turn, and this is not a good intersection for additional truck traffic.
Terri Jeffryes, surrounding property owner, confirmed her property is within 500 feet of the
proposed facility, and also has had previous encounters with an oil company not being a
courteous neighbor when the company chose to drill a well within 300 feet of her residence,
even though there was over 30 acres of land to choose from. She indicated she concurs with
the concerns previously expressed, which she briefly reiterated. She stated it is her
understanding that the EPA thinks this practice is safe; however, she believes the activities on
the site warrant further investigation. Ms. Jeffryes stated Conquest indicated this site was
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 11
chosen for its convenience; however, it is only convenient for the drivers, and not for anyone
else. She acknowledged that she understands Weld County relies on revenues from oil and
gas operations; however, the location of this site presents major safety concerns for motorists,
and the company appears to only be worried about its potential profit and a sign already claims
this site is the future home of the C7 facility. She confirmed she is opposed because her
residence is in such close proximity; however, her main concern is the safety of the intersection
and the immediate increase in traffic volume. She explained this site will be open to
independent hauling companies, and the fears already expressed by other surrounding property
owners are not frivolous or unfounded, especially since truck traffic will not be reduced, but
rather, redirected. Ms. Jeffryes confirmed she will fear for her children's safety if this facility is
approved, as their risk for danger will increase every time a truck crosses the intersection. She
further confirmed she fears for all of the children who ride the school bus, as well as all other
motorists who pass through this area on a daily basis, since truck traffic increases the risk for
accidents due to the increased breaking distances required for a truck to make a complete stop.
She confirmed she is prepared to sell her property if she feels like she is forced to do so;
however, she does not want to remove her children from this school district, and she will be
forced to teach her children to be more cautious. She explained she sincerely hopes that she
never gets the chance to come back to the Board to say "I told you so."
(Chair Rademacher issued a recess for the purposes of a lunch break.)
Upon reconvening, Rob Pfeiff, surrounding property owner, stated he does not want this
proposed facility to help turn State Highway 392 into a problem road like U.S. Highway 34 or
County Road 49. He confirmed if the relocation of this site to another property will help to save
lives, it is well worth it. He clarified State Highway 392 is a main arterial for many truck drivers
from the State of Wyoming, including drivers hauling cattle all the way from Canada, and grain
haulers travelling to the ethanol plant located in the Town of Windsor. He confirmed he is a
truck driver, in addition to operating a farm/feedlot, there does not appear to be any solid values
exhibited by truck drivers anymore, and it is not wise to propose more truck traffic in this area.
He indicated he drives on State Highway 392 on a daily basis, and it appears that almost all
motorists have forgotten how to properly drive. He clarified as trucks approach this intersection
and are shifting down in anticipation of a turn, it will create a big hazard for other motorists
barreling through the area. He explained lessons should be learned from the previous lives
which have been lost on roads within Weld County, and he confirmed vehicles can be replaced,
but lives cannot be replaced.
Dr. Norman Lysder, Weld County resident, clarified he owns property east of the Greeley-Weld
County Airport, in close proximity to Conquest's C4 facility, which is approximately 600 feet from
his residence. He clarified Coors Energy previously drilled in the area, searching for oil and
gas, and this site was converted into the injection well operated by Conquest Oil. He explained
he was not happy with his previous neighbors; however, he has been pleased to have Conquest
Oil as a neighbor, and he knows it is a company that takes great pride in its operations. He
confirmed Conquest cleaned up the property and made the necessary repairs on the property,
and the company continues to make significant improvements on the site. He further confirmed
the company provided the necessary improvements to County Road 64, and continues to
provide excellent maintenance of the road by controlling dust and dirt with the application of
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 12
magnesium chloride. Dr. Lysder explained the well facility is manned by employees at all times;
however, the operations only occur on the site between the hours of 7:00 a.m., and 9:00 p.m.
He further explained the employees working the day shift handle the delivery trucks and the
pumping activities, and the employees working during the night hours are responsible for the
cleaning and maintenance of the site, and other aspects of the operation. He confirmed the
concrete pad on the site is kept clean, the improvements on the site are nicely painted, and the
facility is maintained in excellent shape. He further confirmed trucks travelling to the facility are
limited to 35 miles per hour, and the use of jake brakes is prohibited. He indicated the truckers
are very good about following the posted enforcements, the trucks do not present a noise
problem, and in fact, the school bus picking up children in the morning is nosier than the trucks
travelling to this site. He stated he has been told he can access the facility at any time, and he
has visited the site on occasion. He further stated he has the personal contact information for
employees, and he is encouraged to call anytime he has a problem. He invited the surrounding
property owners of this proposed facility to come visit the C4 facility to see how a first class
operation is run and what activities occur on the site. In response to Chair Rademacher, Dr.
Lysder confirmed the C4 facility is fenced, and he is not able to hear the pump on the site, even
during the quiet night-time hours.
Susan Turman, surrounding property owner, explained it has been stated that a majority of the
traffic will come south on State Highway 392; however, there is a large amount of traffic with
excessive speeds travelling on County Road 74 as well. She clarified a large amount of traffic
travels south on State Highway 392 and then goes east on County Road 74, over to Galeton.
She expressed her concerns regarding lighting at the facility, and confirmed she does not want
the lights from the facility to shine within the windows of her residence.
Frank Harvey, surrounding property owner, explained talking about the facility located on
County Road 64 is irrelevant to this proposed facility and the concerns with this intersection. He
clarified no one has made mention of the proposed impact to wildlife within the area for this
proposed facility, and he confirmed the area contains bald eagles, badgers, deer, porcupine,
prairie dogs, and other species living in the surrounding area, and the habitat of these animals
should be taken into consideration. He indicated the natural habitat will be disturbed and he
explained most of his neighbors live in a quiet area which is zoned agriculturally, on purpose,
because they do not want to live in an industrial area.
Dorothy Williams, surrounding property owner, expressed her concern regarding the children
who are picked up by the school bus, and she confirmed she used to be a bus driver in this
area. She indicated when there is fog in the area, which is a fairly frequent occurrence, it
becomes almost impossible to see other traffic. She confirmed she is concerned the additional
truck traffic will contribute to a major accident in the area, and she is also concerned about
ground water quality. In response to Commissioner Conway, Ms. Williams confirmed she drove
a bus for over nine years for children attending Highland, and she indicated the weather is
unpredictable in this area of the County.
Avram Yaffe, surrounding property owner, indicated it really is not fair for the applicant to solicit
comments from the surrounding property owners of other sites, and he believes there are
probably many other property owners who do not feel the same way as the ones who spoke
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 13
today. He explained the statements provided appeared to be contrived, as the neighbors
tended to have more information about the site than normally expected. He confirmed there is a
large habitat of wildlife in the area, and he has five children, and the traffic in the area has
gotten worse. He explained the accidents that occur are bad, and will only get worse with the
addition of the turning truck traffic, similar to County Road 49. He clarified County Road 49 is
actually a better improved road than State Highway 392, and he does not have concerns with
Conquest Oil as a company; however, this location is not the right place for this facility. There
being no further testimony, the Chair closed the public input portion of the hearing.
In response to Chair Rademacher, Mr. Butcher clarified he would like to allow two additional
engineers to speak and address the presented concerns.
Paul Sorenson, Engineer, CGRS, Inc., indicated he has over 30 years of experience with waste
water and drainage engineering. He reviewed the map containing the drainage conditions of
the site, and he explained the site is low-lying, containing a culvert under County Road 74, and
the site drains from the north into the culvert. He clarified a wetlands engineer evaluated the
site, and no wetland species were identified on the site. He explained the soils on the site drain
rapidly, and because the site lays so low, a standard detention facility could not be utilized,
therefore, the Department of Public Works issued a variance for a retention area. He clarified
the diversion ditch runs along the north side of the property, and will intercept the flow from the
north, and the large retention basin is designed to hold 130,000 cubic feet of water. He
explained the basin will be able to catch all the water associated with a 100-year flood event,
and in fact, the water issues on the site should be reduced since the water will now be retained.
Commissioner Conway expressed his concerns regarding the testimony provided that there are
times when this entire property is under water. Mr. Sorenson confirmed this area does receive
a lot of water during a large precipitation event; however, the facility will not be affected, as it will
be built up, and the retention basin will catch the runoff. He clarified, in the past, the site has
been covered with water; however, the water tends to drain quickly, and the proposed elevation
differences for the culverts will also help to facilitate drainage. He explained the proposed
improvements to the site are designed to accommodate 2.89 inches of precipitation in a 24-hour
period. In response to Chair Rademacher, Mr. Sorenson confirmed the site is not located within
a FEMA floodplain.
Matt Delich, Delich Associates, indicated he has over 43 years experience as a traffic engineer,
and he explained that he discussed the traffic impact study with Ms. Carter before the
application process began. He confirmed the study was completed in accordance with industry
standards and Weld County criteria, and the study has been reviewed by both the Department
of Public Works and CDOT. He indicated all affected intersections in the area operate
acceptably and meet the criteria, even with the added truck traffic proposed by this facility. He
further indicated the sight lines on the roads and the access are adequate and also meet the
criteria. He explained, based upon a traffic study of 70 vehicles travelling to and from the site in
a 24-hour period, it was calculated that seven vehicles will access the site in any given hour,
which is a generous estimate. He clarified the school bus loading and unloading takes a few
minutes, and the probability of a water truck arriving at the site at the same time the school bus
is arriving at the bus stop area is very small. He further clarified there is no question it will
occasionally occur; however, the trucks are governed by regulatory safety standards, and there
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 14
will not be much of a difference from the composition of the traffic already travelling through the
intersection. He clarified the traffic study concluded that this intersection does not have an
increased incidence of accidents, and it does not meet the qualifying data to be considered as a
dangerous intersection. In response to Commissioner Conway, Mr. Delich confirmed he had
not previously seen the information submitted in Exhibit M, regarding additional traffic accidents.
Further responding to Commissioner Conway, Mr. Delich indicated the school bus unloading
and loading should take approximately three to six minutes, and he estimates the parents cars
will arrive at the site approximately five minutes before the scheduled time of pickup or dropoff;
however, the arrival time could deviate with inclement weather. He further indicated he
estimates a window of approximately ten minutes, twice per day, when the school bus will be
arriving across the road, during which time one truck may travel to or from the facility; however,
it is also very likely that no trucks will access the site during these windows. In response to
Commissioner Garcia, Mr. Delich confirmed he has over 30 years of experience working in
conjunction with CDOT in Region 4, regarding the need for additional lanes, which are primarily
required to address safety concerns. He clarified the general criteria for the requirement of a
right-turn lane is more than 25 vehicles per hour, for a left-turn lane it is ten vehicles per hour,
and for acceleration lanes it is 50 vehicles per hour. He confirmed the purpose of these
additional lanes is so that vehicles can continue to safely pass these slow moving vehicles.
Further responding to Commissioner Garcia, Mr. Delich indicated he concurs with the
improvements proposed by CDOT.
Mr. Butcher clarified he understands there is a lot of concern regarding the fresh water aquifer,
and he confirmed this is the reason the expense is being taken to install monitoring wells on the
property. He explained a new treatment process was mentioned by one of the neighbors, which
he assumes is the reverse osmosis treatment, and he confirmed this treatment process costs at
least 20 times more to complete than the proposed treatment of the water. He clarified the
facility will attempt to recycle some of the water on the site; however, a designated facility is still
needed to complete additional cleaning measures for the water. Mr. Butcher confirmed he is
willing to meet with representatives of the school district to discuss any improvements which
could be made at the bus stop to enhance safety. He clarified these water trucks are already
travelling along State Highway 392, and they will have to turn off of State Highway 392 at some
point, even if it is not at this location. He clarified the company is currently in the process of
identifying a potential site within the area of Grover for an additional facility, and he expects that
the Board will be reviewing a USR permit request in the near future. He explained there is a
need for this proposed facility, even if another facility is built within the Grover area, since the
demand has already been demonstrated. He clarified once this facility is operational, the truck
traffic being required to travel south to another facility will be significantly reduced, and the
company is working as quickly as possible to get approval for the Grover site, which will reduce
even more truck traffic travelling south. Mr. Butcher indicated it may be necessary for an
additional truck to come to the site to retrieve the clean water to haul off of the site; however, the
facility intends to adhere to the limit of 70 trucks per day, whether water is being hauled into the
site, or from the site. He confirmed he is not opposed to designating County Road 69 as a non-
haul road, and the truck drivers will be advised not to utilize this road for access to the facility.
He indicated he concurs with the language proposed by Ms. Carter, in conjunction with the
requirements set forth by CDOT. In response to Chair Rademacher, Mr. Butcher stated an
environmental impact assessment was not completed; however, the Colorado Division of
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 15
Wildlife (CDOW) was notified of this request, and did not return a referral response. Mr. Ogle
confirmed a referral response was not received from the CDOW. Further responding to Chair
Rademacher, Mr. Butcher explained fresh water is being hauled from the Greeley area for oil
and gas operations to the north, and the produced water from the oil and gas sites is currently
being hauled to existing facilities to the south, therefore, water trucks are travelling both
directions. He clarified most of the water coming to this proposed facility will be from a radius of
approximately fifteen miles. In response to Chair Rademacher, Commissioner Long clarified
County Road 69 is a gravel road, and the bus stop is located at the southeast corner of the
intersection of State Highway 392 and County Road 74. Commissioner Conway indicated he
understands there has been increased demand for these services, due to the increased amount
of oil and gas productions in the northern portion of the County. In response to Commissioner
Conway, Mr. Butcher confirmed it is expected that 100 percent of the water coming to this site
will be from operations to the north and east of this site, and the proposed site for Grover,
known as the C8 facility, is expected to receive water from the northern-most portions of the
County. He clarified, when both facilities are operational, the amount of total mileage for truck
hauling will be significantly reduced on the roads within Weld County. Further responding to
Commissioner Conway, Mr. Butcher indicated the company has experienced a 25 percent
increase in demand in the past 18 months, and approximately 4,000 to 6,000 gallons of water
are received from the Grover area on a daily basis. He explained the Apollo facility located on
State Highway 392 is currently at maximum capacity on a daily basis, as that facility is limited in
the amount of water it may receive. In response to Commissioner Conway, Mr. Butcher
confirmed the need for this proposed site is due to the increase in activity, and the proposed
future site in Grover will help to accommodate the loads of water which are currently required to
travel to facilities in Kersey or Greeley.
Commissioner Conway reiterated his concerns regarding the school bus location, and he
questioned whether the applicant would be willing to instruct trucks to avoid arriving at the site
during the times in which the school bus is expected to pick-up or drop-off students.
Mr. Butcher indicated it may be possible to limit truck traffic coming from the east on County
Road 74 during specific time frames; however, he does not expect a large amount of trucks to
be travelling to the site from this direction. He confirmed the proposal would require additional
study; however, he is not opposed to creating a rule which indicates trucks may not come to, or
leave from, the facility when the school bus is located at the bus stop. Mr. Delich clarified the
traffic study included expected distribution amounts, and it is estimated that approximately
25 percent of the overall traffic to the site will travel on County Road 74, east of the facility. He
clarified the only traffic from the east will most likely be from wells that are within the immediate
vicinity of this facility, and he estimates a total of two vehicles per hour to travel to the facility on
County Road 74. He confirmed the facility should be able to accommodate the request to
prevent trucks from travelling through this intersection during school bus windows of time.
Chair Rademacher indicated working in conjunction with the school district is to the applicant's
advantage; however, it is the responsibility of the school district to ensure the bus stop area is
safe for the students. In response to Chair Rademacher, Mr. Butcher confirmed he is willing to
help provide any necessary improvements to increase the safety of the bus stop area, so long
as it does not require the purchase of any additional property. Commissioner Conway indicated
it is important for the parties to work together to avoid the potential for an accident to occur,
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 16
which is major concern when there is inclement weather, and he indicated he is pleased that the
applicant appears to be willing to work in conjunction with the school district. Mr. Butcher
confirmed he also would like to avoid trucks travelling to the facility during the times that the
school bus is loading or unloading children at the bus stop; however, he cannot control the
schedule of the trucks. He reiterated he is willing to provide fencing and signage, or other
improvements necessary, to increase safety measures at the site. Ms. Carter clarified is it her
preference that the bus stop be removed from County Road 74, with an adjustment to the
setback of the bus stop; however, she is not sure that the property owner would concur. She
clarified the school district typically determines what type of signage will be installed at a bus
stop; however, they are not required to provide any. She further indicated a better location for
the bus stop would be along County Road 69, a slight shift from its current location. In response
to Chair Rademacher, Mr. Butcher confirmed he is willing to donate a portion of his property for
the development of a school bus stop, if it is deemed appropriate by the school district, and he
confirmed he is willing to work with the school district to mitigate any concerns. In response to
Commissioner Garcia, Mr. Butcher confirmed the property is not prime agricultural land, as it
contains prairie grass, and to his knowledge, crops have not been planted on this property in the
past.
In response to Chair Rademacher, Ms. Carter indicated CDOT has studied the need for a
stoplight at this intersection; however, the data compiled regarding the volume of traffic, number
of accidents, etcetera, does not meet the required warrants. She explained CDOT conducts
traffic counts every other year, and a specific count may be requested by the Department if
there is a change in circumstances in the meantime. She confirmed the results of a traffic count
are typically available the next week. Further responding to Chair Rademacher, Ms. Carter
explained the required timeframe for installation of the additional road improvements depends
upon the existing traffic figures, and the amount of traffic expected to travel to this facility upon
full buildout. She confirmed the Department does monitor traffic counts at USR locations, and a
count may also be initiated by a citizen complaint or observed additional impacts to surrounding
roads within the area. In response to Chair Rademacher, Ms. Carter clarified the accident
report statistics she utilized where within a radius of 1,800 feet from the intersection, and the
report previously provided most likely contained accidents which also occurred outside of this
radius. She explained she uses the same data as the Sheriff's Office to compile statistics, and
once an accident is documented by a law enforcement agency, the information is provided to
the Colorado Department of Revenue, which releases the official information. Chair
Rademacher concurred Exhibit M contains accidents which occurred at a distance of up to three
miles away from this location, and Ms. Carter confirmed her findings were only for this specific
location.
Responding to Chair Rademacher, Clay Kimmi, Department of Public Works, indicated the
Department is content with the conceptual drainage plans for the site and the retention pond on
the site will actually be larger than the requirements for a 100-year flood event. Commissioner
Conway clarified Exhibit M contains the addition of four traffic accidents which occurred outside
of the radius described by Ms. Carter, and the information does depict the three traffic accidents
previously identified by Ms. Carter. Ms. Carter clarified an additional accident recently occurred
within the area; however, it was too recent to be included within the data she compiled, and she
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 17
concurred that there have been a total of four vehicle accidents at this intersection within the
past ten years.
In response to Commissioner Garcia, Mr. Kimmi confirmed the property is not within a
designated floodplain, and he clarified FEMA has not mapped this area. He further clarified the
property is designated within Zone D, which means the area has not been studied, and localized
flooding issues may occur on the site. Responding to Chair Rademacher, Mr. Swain confirmed
the drilling of the hole and the casing materials are provided oversight by the COGCC, and the
County provides oversight of the surface activities on the site. He clarified the applicant is
required to provide monitoring, since the aquifer is quite shallow, and liners and secondary
containment are also required, to provide protection against any possible leaks. He confirmed
the Department does complete regular inspections at these types of facilities, which includes
checking the inspection logs completed by the COGCC during unannounced inspections. In
response to Chair Rademacher, Mr. Swain clarified the inspections are completed on a
quarterly basis, and any complaints received against the facility are investigated by staff.
Responding to Chair Rademacher, Mr. Butcher confirmed the company works with the
respective fire protection districts regarding fire mitigation, and for this property, he approached
the Galeton district and indicated he was willing to annex into the district. He clarified the
preliminary discussions indicated a fire barrier of between 50 and 100 feet would be required,
and he confirmed he is committed to making whatever improvements are necessary to ensure
the site is operated in a safe manner. In response to Commissioner Long, Mr. Butcher
confirmed the company has experienced two small fires at other facilities; however, the fires
were quickly handled and did not leave the site of the facility.
In response to Ms. Carter, Mr. Barker confirmed the comments provided earlier should be
incorporated into Condition of Approval #1.1, as requested within Exhibit P, which was reviewed
for the record. The Board concurred with the modification of Condition of Approval #1.1, as
listed within Exhibit P. In response to Chair Rademacher, Mr. Ogle clarified any outdoor storage
on the site will be required to be screened, including the dumpster, and the surrounding property
owners have requested vegetative screening to offset the look and feel of the facility. Chair
Rademacher indicated the facility will have a hard time maintaining vegetative screening on the
site, due to the lack of water. Mr. Butcher concurred, indicating it will be near impossible to
keep any trees alive on the site; however, he is willing to provide trees to be utilized as
screening to be planted on the properties of affected neighbors, which will be a more effective
method, and better use of funds. In response to Chair Rademacher, Ms. Carter indicated the
average daily traffic count for County Road 49, near Interstate 76 is 3,650 vehicles, and the
count for State Highway 66, east of Interstate 25, is 2,201 vehicles.
Responding to Commissioner Conway, Chair Rademacher confirmed it has been stated within
the record that the applicant is willing to annex into the Galeton Fire Protection District, and is
willing to work with the school district regarding improvements for the bus stop, therefore, he is
confident the applicant will provide the necessary follow through. He clarified it is the
responsibility of the school district to ensure that the bus stop area is safe, and the Resolution
should not include a Condition of Approval related to the follow through of the school district.
Commissioners Garcia and Conway concurred. In response to Chair Rademacher, Mr. Butcher
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 18
confirmed he has reviewed, and concurs with, the Conditions of Approval and Development
Standards, as modified.
Commissioner Garcia expressed his appreciation to all who came to provide testimony today,
and he confirmed his biggest concern was the traffic in the area, especially since the Planning
Commission recommended denial of this application, due to traffic concerns. He explained it
would have been helpful to have recently updated traffic counts for this area; however, even if
the traffic counts could have been completed within the past few weeks, they would not have
been an accurate portrayal, due to the construction project in the area. He indicated the
proposal created between CDOT and Ms. Carter has been an interesting development, the
proposed additional lanes will be useful to get traffic off of the road, when appropriate, and if this
information had been provided at the Planning Commission, he believes the Planning
Commission may have voted differently. He expressed his appreciation to Mr. Butcher for
presenting new possibilities as solutions to concerns, and he confirmed it makes no sense to
operate a business if it will cause accidents to occur. He indicated he is intrigued by the idea of
the facility limiting truck traffic during the school bus times, and he appreciates that the applicant
is willing to work with the school district to improve safety. Commissioner Garcia indicated he
also had concerns regarding the ability of the facility to assimilate into the surrounding area,
especially because the Board must make the finding that the proposed use is compatible. He
explained many of the neighbors acknowledged the importance of oil and gas operations within
Weld County, and it is well known that these types of operations are compatible with agricultural
activities. He clarified a large number of people are affected by this application, and if the
application is approved, the applicant will need to work with the surrounding property owners to
address any future concerns. He stated there was testimony provided that the applicant has
previously included neighbors within discussions at other facilities; however, it does not appear
to have happened for this facility. He clarified his underlying concerns regarding safety have
been met; however, the applicant must continue to build positive relationships with its
neighbors. He confirmed this application does meet the specified Code criteria for approval,
and he supports approval of the application.
Commissioner Conway expressed his appreciation to those who provided comments today, and
he confirmed he listened carefully to all of the concerns presented. He indicate this application
is a difficult decision for the Board to make, especially because it is well known that there are
already a large number of trucks on Weld County roads. He confirmed it is important to
understand that this facility will not be adding any additional truck traffic to the roads; rather, it is
expected to reduce the amount of overall mileage completed by trucks hauling water. He stated
this benefit is a significant safety improvement to the concerns presented, and he appreciates
the applicant's willingness to possibly dedicate some land to create a safe school bus location.
He concurred that the applicant will need to continue to work with the school district, and make it
a first priority to avoid danger for school children. Commissioner Conway explained the
application does meet the required standards from a safety standpoint, and the applicant's
willingness to annex into the closest fire protection district will also create additional revenue for
the district. He confirmed he will be watching to ensure that the applicant follows through with
the appropriate mitigations of concerns, and he encouraged the applicant to retain the status of
being a good neighbor. He indicated this facility will create a positive enhancement to the
surrounding area.
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 19
Chair Rademacher expressed his appreciation to those in attendance for their comments, and
he confirmed he personally is a farmer, truck driver, and volunteer firefighter. He confirmed this
facility will actually be reducing the amount of truck traffic on the roads, by reducing the mileage
necessary to travel to another facility. He further confirmed it is well known that the demand for
this service is quite high, and it was mentioned earlier that the closest facility operated by Apollo
is already operating at maximum capacity. He explained he understands there are many more
traffic accidents in this area than are ever reported, especially in inclement weather; however,
there truly has not been an excessive amount of accidents within the last ten years, therefore,
traffic concerns are no longer an issue. He indicated the safety of the school bus is a big issue
of concern for him, and he is pleased that the applicant will be working with the school district to
make improvements, including the possible relocation of the bus stop to a more appropriate
location. He clarified the County does not have jurisdiction of State Highway 392, and the
surrounding property owners should petition CDOT to have the speed limit in this area reduced.
He confirmed he trusts the information provided by the applicant that this technology is safe for
the groundwater, and he understands contamination could happen; however, the likelihood of
contamination is very small. He acknowledged the applicant operates several other facilities
throughout Weld County, and the Board has never received a call of complaint from a
surrounding property owner of any of those facilities. He concurred that if the Planning
Commission had received the most recent information regarding proposed road improvements,
the vote may have been decided differently.
Commissioner Long concurred with the sentiments expressed regarding the dependability of the
applicant and the safety of the water treatment process. He acknowledged Conquest Oil is an
exemplary operator, and has actually stepped in to rehabilitate other sites throughout the
County, and has done a fantastic job at doing so. He indicated the injection process has been
proven safe, and the demand for this service will continue to increase in the future. He
confirmed he continues to have safety concerns regarding the location of this facility, especially
since the area is a focal point for transportation within the northern portion of Weld County. He
indicated he has witnessed near accidents in all weather conditions along State Highway 392,
and this area has a fairly safe environment; however, the addition of turning trucks at this
intersection is what concerns him. He clarified the trucks travelling straight through do not pose
a big concern; however, the near accidents almost always occur when trucks are slowing down
to make turns. He acknowledged the applicant's good record; however, this is simply the wrong
location for this facility, and he does not believe the mitigation measures should wait to be
enacted until more accidents occur. He explained this area will eventually change and develop
in the future, which would change his opinion at the time it is developed; however, this is not the
right location at this time, and he will not vote in favor of the application.
Commissioner Garcia moved to approve the request of Marcum Midstream 1995-2 Business
Trust, dba Conquest Oil, for a Site Specific Development Plan and Use by Special Review
Permit#1747 for an Oil and Gas Support Facility (Class II Oilfield Waste Disposal Facility -
saltwater injection facility and a water recycling facility) in the A (Agricultural) Zone District,
based upon the finding that the application is in compliance with Sections 23-2-230.6.1 through
23-3-230.B.7, of the Weld County Code, and with the Conditions of Approval and Development
Standards as entered into the record. His motion included the modification of Condition of
2010-1864
PL2073
HEARING CERTIFICATION - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST, DBA
CONQUEST OIL (USR-1747)
PAGE 20
Approval #1.I to state, "The applicant, or its successor, shall construct a right westbound
acceleration lane on County Road 74, when traffic volumes meet the triggers of 50 vehicles per
hour(vph) turning right out of the facility, during the peak hour. The applicant, or its successor,
shall construct a left eastbound deceleration lane on County Road 74 when traffic volumes meet
triggers of 10 vph turning left into the facility, during the peak hour. Final construction drawings
must be submitted to the Department of Public Works, by the applicant or its successor, and
shall be reviewed and accepted by the Department of Public Works, prior to the start of
construction of any of these auxiliary lanes. A Colorado Department of Transportation (CDOT)
approved Access Permit for the facility shall be submitted to the Department of Public Works. If,
at some future date, the CDOT permit requires auxiliary turn lanes to be constructed on State
Highway 392, the applicant, or its successor, shall pay to CDOT the applicant's proportional
share of the auxiliary turn lanes improvement costs (based on the ESAL calculation method), if
required by CDOT." The motion was seconded by Commissioner Conway. Commissioner
Long acknowledged he understands the applicant will work with the appropriate agencies to
ensure this site is as safe as possible, and the Board is committed to ensuring the safety of the
students and parents who utilize the school bus. He confirmed he cannot impress enough that
it is important for the drivers of all vehicles to eliminate distractions while driving, to help ensure
the safety of everyone travelling in the area. Chair Rademacher concurred and indicated
signage needs to be installed regarding the school bus stop. Commissioner Conway indicated
the school district needs to be willing to work with the applicant to help facilitate the necessary
improvements and he sincerely hopes the applicant's willingness to help will solve the concerns
of the residents within the area. He encouraged all surrounding property owners, including the
applicant, to continue to work to be a good neighbor. Upon the request for a roll call vote, the
motion passed three to one, with Commissioner Long opposed. There being no further
discussion, the hearing was completed at 3:00 p.m.
This Certification was approved on the 23rd day of August, 2010.
BOARD OF COUNTY COMMISSIONERS
m WELD COUNTY, COLORADO
ATTEST: • � j EL
as Radem cher, Chair
Weld County Clerk to the Bo-!l aei 1 • -=
.y�USED
�: 'f.ara Kirkmeyer, Pro-Tem
BY:
Dep y lerk t e Board
7Ra/ c7
Williariti F. Garcia
David E. Long
2010-1864
PL2073
v
N-.
v-, v, ,,,.. Ntsc...h..:5--, _ k
N 3,, Cam._.
W l I\ J _.). ""1
0 uu)j co U �,/? !.� , N .ti N 'V
�
Z cal - S • `Y '. � U \\
u -
I— >-
Z
O w N 3
Q v re Z • O '�
F ts G of �- �. `t1 ` i M ' M
c0 RI a r m r` .ti ^� A
Oin E 2 J W J R -
Z C7WO L- r
O ZIXF p I.
N W
U) } § i2 T F i. --... �,l
3 O 0 p c l
O-J awz 0-
7; VI
a > O a ' Y\ �- J s--
LL r > v a)
J •• r
U) 0
a) 1 • , 1 J
? YYY y w
v1 L . d m
r `
W 000 J Z g ' r) �_ _ � Cc ' ^f� ,--
s 000 a
y
EXHIBIT INVENTORY CONTROL SHEET
Case USR-1747 - MARCUM MIDSTREAM, DBA CONQUEST OIL
Exhibit Submitted By Description
A. Planning Staff Inventory of Items Submitted
B. Planning Commission Resolution of Recommendation
C. Planning Commission Summary of Hearing (Minutes dated 08/03/2010)
D. CDOT E-mail re: referral response, dated 08/04/2010
E. Jim & Debby Sullivan Letter of Concern, dated 08/11/2010
F. Various Citizens Letter of Concern, dated 08/03/2010
G. Public works staff E-mail re: CDOT requirements, dated 08/06/2010
Letter of Concern, dated 08/10/10, and Petition of
H. Virginia Harvey Opposition (32 signatures)
Letter of Support from Lloyd and Marcine Kempema,
I. Applicant dated 08/13/10
J. Virginia Harvey Oversized poster map
K. Bill May Trilogy Energy Documents
L. Bill May 24 photographs (scanned — originals returned)
M. Scott Wahlert Traffic accident report from WCSO
N. Kim Pfeiff 7 large photographs
Supporting documents, including maps and
O. Application photographs
P. County Attorney Proposed modification to Condition of Approval #1.1
Letter re: Follow-up of moving school bus stop, dated
Q. Applicant 08/19/10
R.
S.
T.
U.
V.
W.
Hello