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HomeMy WebLinkAbout20083004.tiff MARCH, OLIVE & PHARRIS, LLC. ATTORNEYS AND COUNSELORS AT LAW J.BRADFORD MARCH 110 E.OAK STREET,SUITE 200 ARTHUR E.MARCH STEWART W.OLIVE FORT COLLINS,COLORADO 80524-2880 1908-1981 JOHN W.PHARRIS (970)482-4322 ARTHUR E.MARCH,JR. Fax (970)482-5719 1933-2005 October 31, 2008 VIA HAND DELIVERY & U. S . MAIL Weld County Board of Adjustment C/O: Clerk to the Board of County Commissioners 915 10th Street P.O. Box 758 Greeley, CO 80632 «, n rJ Re : Roger Kenney r James Warner Property ' APPEAL TO THE WELD COUNTY BOARD OF ADJUSTMENT > A. Determination Being Appealed o Pursuant to § 23-6-10 of the Weld County Code (WCC) , Roger Kenney hereby files this appeal of the determination by Thomas Honn, Director of the Weld County Department of Planning (Department) dated October 1, 2008 . A copy of a letter from Mr. Honn dated October 1, 2008, containing the determination at issue is attached hereto. The dispute concerns the Department' s determination that the current use of a parcel of real property located in Weld County owned by James Warner (Warner Property) is an allowed use by right under the WCC. B. Section of WCC in Dispute While the Department did not specify a specific section of the WCC as the basis for his determination, the Warner Property is zoned A-Agricultural therefore it is assumed that the section in dispute is § 23-3-20 . C. Descriptions of Grounds of Appeal The Warner Property is located in the NW1/4 of Section 5, Range 68 West, Township 4 North, Weld County, Colorado, and is bounded on the north by Colorado Highway 60 and on the west by County Road 3 . Mr. Kenney' s property is located immediately to the west of the Warner Property separated from the Warner Property by County Road 3 . At issue is can the Warner Property be used, as a use by right, for the operation of an oil and gas support services business for servicing off site oil an gas production Pt /9,7? usic 76/7 nn ' / 2008-3004 -07 facilities? According to the Department' s determination the answer is a qualified yes . Mr. Honn opined that the use of the commercial water tap on the Warner Property can be used to fill trucks owned by the owner' s company for use at well locations owned by the owner of the Warner Property. Conclusions drawn by Mr. Honn are not in accord with the clear language of the WCC. Section 23-3-20 of the WCC sets forth the allowed uses by right in the A-Agricultural Zone . Section 23-3-20 provides that oil and gas production facilities are uses allowed by right within the A-Agricultural zone . Importantly, § 23-3-20 does not allow oil and gas support and service operations to be uses by right in the A-Agricultural Zone . Instead, § 23-3-40 of the WCC requires that oil and gas support and service operations are uses allowed by special review only. Here, the water tap is used for the support of Mr. Warner' s company, Magpie Operating, Inc. , d/b/a Magpie Oilfield Supply also d/b/a Magpie Oilfield Services also d/b/a Loveland Gas Processing Company (Magpie) operations located off-site . Clearly, the operation of the water tap on the Property does not fit within the uses allowed by right for the zoning classification of the Property. D. Other Information These properties have been the subject of a long standing dispute as to the use of the Warner Property. Mr. Warner and Magpie have operated an oil and gas support services business from the Warner Property. The support services being the supply of water for off site oil and gas production support services from a commercial water tap located on the Warner Property. Historically, the support services entailed numerous tractor trailer vehicles pulling into the Warner Property to fill up with water being sold to other companies in the oil and gas business . The trucks lined up along County Road 3 in front of Mr. Kenney' s home causing excessive noise, dust, damage to his property and a traffic safety hazard. After numerous complaints by Mr. Kenney to the appropriate Weld County officials, Mr. Warner, and Magpie did not result in resolution of the matter, Mr. Kenney filed suit in the Weld County District Court on August 30, 2006. While the suit was pending, the Department determined that a Special Review Permit would be necessary to allow the Warner Property to continue to be used for oil and gas production support services . By a vote of 6 to 1, the Weld County Planning Commission denied Mr. Warner and Magpie' s application for a Special Review Permit . By resolution dated February 29, 2008, the Weld County Board of Commissioners unanimously denied Mr. Warner and Magpie' s application #1617 for an Oil and Gas Support Facility (Commercial Water Tap Used by Oil and Gas Specific Equipment and Transportation Vehicles to Service Off-Site Oil and Gas Operations) in the A (Agricultural) Zone District. Following the denial of the Special Review Permit by the Board of County Commissioners, by letter dated May 6, 2008, the owners of the Warner Property requested that they be allowed to have their own water trucks fill from the existing water tap on the Property and transport the water to its oil and gas operations . A copy of the May 6, 2008, letter is attached hereto for reference. Basically, the owners of the Property requested they be allowed to use the Warner Property for the exact same purpose which the Board had previously resolved was not allowable . In spite of not having a Special Review Permit in place, the owners of the Warner Property again used the commercial water tap located on the Warner Property to fill water trucks for oil and gas support operations in May, 2008 . Contrary to representations made by Magpie, the tap was used to fill a large semi-trailer truck in violation of the Board' s Resolution. The unlawful use of the Warner Property was reported to the Department' s Compliance Division by Mr. Kenney. Thereafter, a Violation Hearing was scheduled for June 17, 2008 . By letter dated May 30, 2008, the Department' s Compliance Division informed Mr. Warner that the Warner Property had a use by right to use the commercial water tap for the operation of Magpie' s purposes associated with oil and gas production facilities. A copy of the May 30, 2008, letter is attached hereto for reference. Based on the conclusion that a use by right existed, the Violation Hearing was canceled and the matter was considered closed. On July 15, 2008, this office wrote a letter to the Board of County Commissioners requesting on Mr. Kenney' s behalf that the Commissioners instruct the Department to enforce the law and require that the Property only be used within the confines of the A-Agricultural zone, or in the alternative require the owner of the Warner Property to submit a new application for a special review for the Warner Property. Thomas Honn, Director of the Weld County Department of Planning responded on October 1, 2008, a copy of which I received on October 14, 2008 . Apparently, it is the position of the Department of Planning Services that as long as the owner of a property uses the property for their own purposes, even if that use is considered a violation of the WCC, that the use is one by right. There are obvious problems with the Department' s position. First of all, there is the concern that owner of the Warner Property will expand his, and Magpie' s, oil and gas operations greatly expanding the effects of the unlawful use of the Warner Property. Second, there is the very serious concern that the Warner Property could be sold to an oil and gas company with its own large-scale operations . The result of the foregoing could be a 24/7 operation of an industrial use in the A-Agricultural Zone with no protection for the neighboring owners even though the Special Review was denied. E. Request In accordance with § 23-6-20, Appeals of Administrative Decisions, Mr. Kenney seeks a decision by the Board of Adjustment that the determination of the Department is erroneous and that the Warner Property cannot be used for oil and gas support and service operations without a Special Review Permit . Sincerely, Stewart W. Olive Attorney at Law attachments pc: client 4 • MARCH, OLIVE 8:PHARRIS, LLC. ATTORNEYS AND COUNSELORS AT LAW ARTHUR E MARCH J.BRADFORD MARCH 110 E.OAK STREET,SUITE 200 STEWART W.OLIVE FORT COLLINS,COLORADO 80524-2880 ARTHUR E. MARCH,JR. 1908-1981 JOHN W. PHARRIS (970)482-4322 1933-2005. MAR Fax (970)487-5719 July 15, 2008 David Long Douglas Rademacher Weld County Commissioners Weld County Commissioners 915 10th St. 915 10th St . P. O . Box 758 P. O. Box 758 Greeley, CO 80632 Greeley, CO 80632 Rob Masden William "Bill" Jerke Weld County Commissioners Weld County Commissioners 915 10th St. 915 10th St . P. O. Box 758 P.O. Box 758 Greeley, CO 80632 Greeley, CO 80632 Bill Garcia Weld County Commissioners 9_5 10-" St. P. O. Box 758 Greeley, CO 80632 Re: James Warner property: a Part of NW 1/4 , Section 5, Range 68 West, Township 4 North Dear Commissioners Long, Rademacher, Masden, Jerke, and Garcia: Please be advised that this office represents Roger Kenney regarding the use of the above referenced property (hereinafter the "Property. ") Concerns regarding the uses of the Property have previously come before the Commissioners through the requested Special Review Permit #1617 for an Oil and Gas Support .Facility (Commercial Water Tap -Used by Oil and Gas Specific Equipment and Transportation Vehicles to Service Off-Site Oil and Gas Operations) in the A (Agricultural) Zone District - James Warner, c/o Ryan Warner. In essence, the special review request involved contractor and owner operated water trucks which filled from the existing commercial water tap on the Property and transported the water to oil and gas operations . Pursuant to that certain Resolution dated February 29, 2008 , the application for the special review permit was denied by the Board of County Commissioners. Unfortunately, issues continue regarding the uses of the Property. Following the denial of the special review permit by • 4, the Board of County Commissioners, by letter dated May 6, 2008 , the owners of the Property requested that they be allowed to have their own water trucks fill from the existing water tap on the Property and transport the water to its oil and gas operations . A copy of the May 6, .2008 , letter is attached hereto for your reference . Basically, the owners of the Property were requesting that they be allowed to use the Property for the exact same purpose which the Board had previously resolved was not allowable . In spite of not having a special review permit in place, the owners of the Property again used the commercial water tap located on the Property to fill water trucks for oil and gas support operations in May, 2008 . Contrary to the representations made by Magpie Operating, the tap was used to fill a large semi- trailer truck in violation of the Board' s Resolution. I have attached a copy of a photograph of the semi-trailer truck for your information. The unlawful use of the Property was reported to the Department of Planning Services, Compliance Division by Mr. Kenney. Thereafter, a Violation Hearing was scheduled for June 17 , 2008 . By letter dated May 30, 2008, the Compliance Division informed James Warner that the owner of the Property, Magpie Operating, Inc . , had a use by right to use the commercial water tap for the operation of Magpie Operating Inc . ' s purposes associated with oil and gas production facilities . A copy of the May 30, 2008 , letter is attached hereto for your reference . Based on the conclusion that a use by right existed, the Violation Hearing was canceled and the matter was considered closed. The logic of the Compliance Division flies in the face of both the Weld County Code (WCC) and the prior Resolution of the Board. Section 23-320 of the WCC provides that oil and gas production facilities are uses allowed by right within the A-Agricultural zone. However, § 23-3-40 of the WCC requires that oil and gas support and service operations are uses allowed by special review only. The definition section of the WCC provides the Oil and Gas Production Facilities are those which: Consist of the oil or gas well, pumps, heater treators, separators, meters, compressors, TANK BATTERY and other equipment directly associated with the producing well, all of which must be connected and functional . Here, the water tap is used for the support of Magpie' s operations located off-site . Clearly, the operation of the water tap on the Property does not fit within the uses allowed by right for the zoning classification of the Property and is a use already denied by both the Planning Commission and the Board of County Commissioners . Further, in his letter to the Planning Department, P..yan Warner stated that at most there would he 4 trucks filling from the water tap during any day. However, on Wednesday July 2, 2008 , between 9 : 35 a .m. and 11 : 50 a.m. ten trucks filled from the water tap and between 12 : 30 p .m. and 5 : 00 p.m. five more trucks filled from the tap. The level of use of the water tap on July 2 , 2008 , is typical . Simply put, the Property is being used in violation of the WCC without any concessions or conditions on the part of the Property' s owners . Mr. Kenney requests that the Commissioners instruct the Planning & Zoning Department to enforce the law and require that the Property only be used within the confines of the A-Agricultural zone . In the alternative, the Commissioners should require the owner of the Property to submit a new application for a special review for the Property. If the Planning Department is unwilling to enforce the law and the decisions of the Commissioners, the Commissioners should refer the matter to the District- Attorney' s office for enforcement as provided by the WCC. Thank you for your assistance in this matter. If you have any question or comments, please contact me . . Sincerely, 'Stewart W. Olive Attorney at Law pc: Bruce Barker client May 6, 2008 Weld County Planning Department 915 10°i St. Greeley, CO 80631 Case:VI-0700710 Dear Sir or Madam, Ryan Warner, Magpie Operating, Inc. and James Warner respectfully request that Weld County.` =rant Magpie the ability to continue limited operation of the referenced water tap for internal: non-commercial use. The Little Thompson water tap is owned and operated by Magpie. The recent use by special review application filed by Magpie sought to allow Magpie to sell water to a tucking company in bull; quantities for use in workovers and drilling throughout Weld County. Since Magpie was fast notified of the violation, the water tap was been shut off to this operation. Large semi-trailer trucks are no longer accessing the tap or the site. Magpie has accepted and complied with the decision by the Weld County Board of Commissioners. It is Magpie's strong desire to continue to use the tap on a limited basis for use in supporting Magpie's own operations. Magpie describes this use as an average of five trips per month using a Vacuum Truck, a smaller single-unit vehicle with a 70-barrel tank. Each of these tripswill take somewhere between five and ten minutes and will take place during noiwal working hours. Occasionally, Magpie may access the tap for more significant workovers when several hundred barrels of water are needed. These workovers will be rare but may require up to four trips per day for one to three days. Lastly, Magpie has yet to drill a well in the company's history but hopes to u the future. In such event,Magpie may require up to four nips per day for up to one week. Under these terms, Magpie will not have any disruptions in operations and can continue to thrive as an oil and gas operator in Weld County. Magpie believes that the limited use requested is both reasonable and necessary and will not constitute a nuisance or offense to the surrounding landowners. Thank you for your consideration. Sincerely, Ryan Warner,Vice President Magpie Operating,Inc. ki id 2,r 41`n ��+�2.!va , �/r kr li '3L �n r r "I `f"dY.;?,.�; 9. • xrri ihro - • 1w I �j1 '-' r';44. ((l M til. •.� t 'd; I:. i< , I Ly • ^' Ri.: 3:'7*;7 11'r Y_. µ.T.,,. giii, w 1,1 n + I .r k.' C l:}t 1 $977:7;"51r7,72 .▪ "',-,-7:,):'&"±71:17, .IJ I i 'hr 1'-r9 ° nil. ° I I—iY ;1' i a,I♦ T _ �: x., _ 1 U 4 ,t + 441{ . 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'!'^w4�, rl f l YI h•��+ 1� k �i r �•—o'`�:- _a"m4 l A �M tr n'C 'w"" YF La� 5 ,ar.W f4 Y i k 'p X t{p "k.-, ti w YI ., e1� j r f:, a rgpr' rf 'tl n " •M1Y t( tr ,----1-,..fl 1 y� i�'in y£'�'a� _ I .-11..-,4_`s'.u, wtt. ,wa'4t��`e 1 ',r ltu`."�" p.' (eitt;N, DEPARTMENT OF PLANNING SERVICES Compliance Division NORTH OFFICE 918 10TH Street GREELEY, CO 80631 C E-mailWdrss WWW.CO.WELD.CO.US WELD US o Address:s: bsalzman(a�co.weld.c.co.us PHONE: (970) 353-6100, Ext. 3555 COLORADO FAX: (970) 304-6498 May 30, 2008 JAMES WARNER DBA: MAGPIE OPERATING INC 6239 CR 36 PLATTEVILLE, CO 80651 Subject: VI-0700110, PT NW4 5-4-68 LOT D REC EXEMPT RE-3983 (10D2.96R) Dear Mr. Warner: This letter is to inform you staff discussed the use on the above described property and determined that the use as indicated below is a Use by Right/Accessory Use in the Agricultural Zone District per Sections 23-3- 20 and 23-3-30 of the Weld County Code (WCC). Currently a commercial water tap is situated on the above described property. We(Weld County, Department of Planning Services), understand the following: 1.) The owner of the land/commercial water tap and the owner/operator of Magpie Operating Inc.are one in the same. 2.) The water is used in association with the operations of oil and gas production facilities which is a Use by Right in the Agricultural Zone District(23-3-20.1, WCC) operated by Magpie Operating Inc. 3.) Magpie/Warner no longer sell water to outside businesses and strictly utilize the water for the operation of Magpie Operating Inc and/or any necessary farming functions. Therefore,the Violation Hearing previously scheduled for June 17,2008 has been canceled and this violation closed. Thank you for your cooperation in this matter. Should you have any questions regarding this letter, or if you need any further information, please feel free to contact me at the above address, telephone number or e-mail address. Sincerely, Bethany Salzman Zoning Compliance Officer II pc: VI-0700110 Department of Planning Services Stephanie Arries, County Attorney's Office SERVICE,TEAMWORK,INTEGRITY,QUALITY r . 1+ May 6, 2008 Weld County Planning Department 918 10`1' St. Greeley, CO 80631 Case: VI-0700110 Dear Sir or Madam, Ryan Warner, Magpie Operating, Inc. and James Warner respectfully request that Weld County grant Magpie the ability to continue limited operation of the referenced water tap for internal, non-commercial use. The Little Thompson water tap is owned and operated by Magpie. The recent use by special review application filed by Magpie sought to allow Magpie to sell water to a trucking company in bulk quantities for use in workovers and drilling throughout Weld County. Since Magpie was first notified of the violation, the water tap was been shut off to this operation. Large semi-trailer trucks are no longer accessing the tap or the site. Magpie has accepted and complied with the decision by the Weld County Board of Commissioners. It is Magpie's strong desire to continue to use the tap on a limited basis for use in supporting Magpie's own operations. Magpie describes this use as an average of five trips per month using a Vacuum Truck, a smaller single-unit vehicle with a 70-barrel tank. Each of these trips will take somewhere between five and ten minutes and will take place during normal working hours. Occasionally, Magpie may access the tap for more significant workovers when several hundred barrels of water are needed. These workovers will be rare but may require up to four trips per day for one to three days. Lastly, Magpie has yet to drill a well in the company's history but hopes to in the future. In such event, Magpie may require up to four trips per day for up to one week. Under these terms, Magpie will not have any disruptions in operations and can continue to thrive as an oil and gas operator in Weld County. Magpie believes that the limited use requested is both reasonable and necessary and will not constitute a nuisance or offense to the surrounding landowners. Thank you for your consideration. _ Sincerely, Ryan Warner, Vice President Magpie Operating,Inc. r K1 Hsu 's' x i ii . ii 1. f, , .'1 - 4.- I, 1 n1 j `3`v a :k d ' r<=w- t r A. J .J r J k{ 4 s i � ' � ill 14 '-w � Kt f yM 1 y ''''• rt' •r i k J3 1 1> F. rt t w k 1 �C, 4 k 1 e q Yu X x tr 'li. 'to. ( 5y Ftf>.'MhI .t �.b.-�.. M '',.':.:-ILL ♦ M � 1� �r w if vw vS' ti r, r.,, iy" A i i v.w r+e m•, �y, y f , '1* ^ 1.41 tee•_ ffiffiIi'', [4qX r hYa 2 a �j P sap' bl ` e m1'x i';! �' ' a i{ L. a. i - i "" Ktk (' • yx .ti r1::: ry _ i 3 '4%-m#:!.--- �aYYYi �: xi�Q Irk • 1 . e. �a GY h y • ',ay., 4 97L'1�•i n. ii t' 3 j 2 okG S ti i Y v� * r t l 1 r ' s � xE g .,a '+s.'',7:.,,.. r it DEPARTMENT OF PLANNING SERVICES fifin\i( 91B 10th Street GREELEY, COLORADO 80631 WEBSITE: www.co.weld.co.us PHONE(970)353-610D, EXT.3540 CFAX(970) 304-6498 • COLORADO October 1, 2008 Stewart W. Olive,Esq. March, Olive 8 Pharris, LLC 110 Oak Street, Suite 200 Fort Collins, Colorado 80524-2880 Re: James Warner Property Dear Mr. Olive: This letter is in response to your letters of July 15, 2008, and September 29,2008, regarding the James Warner property, located in the NW'/ of Section 5,Range 68 West, Township 4 North, Weld County, Colorado. Use-by-Special Review("USR") Permit 41617 was denied by the Board of County Commissioners of Weld County on February 6, 2008. It was for and Oil and Gas Support Facility,being a commercial water tap used by oil and gas specific equipment and transportation vehicles to service off-site oil and gas operations in the A (Agricultural)Zone District. As stated in the Hearing Certification for Docket No. 2007-823, Chris Gathman, Planner, explained at the hearing that, "the site consists of an existing commercial water tap operated by Magpie Operating, which contracts with outside water carriers who haul the water to be used at off-site oil and gas facilities." The Weld County Department of Planning Services investigated whether the commercial tap on Mr.Warner's property is being used for the purpose which was the basis of USR-1617. We have found no evidence that Mr. Warner is selling water from the commercial tap to outside water carriers. Rather, it is apparent that the company of which Mr. Warner is President,Magpie Operating, is filling its trucks at the tap on an intermittent basis for transport of water to Magpie well locations. Your letter of July 15, 2008, supports this finding. I do not conclude that use of the commercial tap by Magpie in this manner is violation of the Weld County Code. It is my opinion that a property owner may, as a use-by-right in the A (Agricultural)Zone District, fill trucks owned by his company at a commercial tap located on his property for use at well locations the company owns. Furthermore, I do not find that Mr. Warner is selling water at the commercial tap to outside water carriers. Please feel free to call me at (970) 353-6100, ext. 3540, or Bruce T. Barker, Weld County Attorney, at(970) 3564000, ext. 4390, if you have any questions regarding this letter. Si erel Thomas E.Honn, Director Weld County Department of Planning Services pc: Bruce T. Barker Hello