HomeMy WebLinkAbout20082084.tiff ewsT 4 WELD COUNTY ATTORNEY'S OFFICE
915 TENTH STREET
P.O. BOX 758
GREELEY, CO 80632
WEBSITE: www.co.weld.co.us
+ PHONE: (970) 336-7235
FAX: (970) 352-0242
COLORADO
July 1,2008
James B. Borgel, Esq.
Holland & Hart
P.O. Box 8749
Denver, CO 80201-8749
RE: Suncor Energy(U.S.A.), Inc. Interstate Pipeline
Project
Dear Mr. Borgel:
This letter is in response to your letter of June 18,2008,regarding the Suncor Energy(U.S.A.), Inc.
Interstate Pipeline Project.
Thank you for the full description of the pipeline project which you wrote in your letter. Such
description gives us a good understanding of what will be involved with the pipeline's installation and
operation.
Your letter correctly states that as described, the pipeline does not require the granting of a Use-by-
Special Review Permit pursuant to Chapter 23 of the Weld County Code in order to operate in Weld
County.
Please feel free to call me at (970) 356-4000, ext.4390, if you should have any questions regarding this
letter.
Sincerely,
C
1'B ci a eT Barkers
Weld County Attorney
pc: Tom Honn
,242914112-1.41-4-6a rt. /LO/
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HOLLAND &HART.. pn James B. Borgel
TH L w Phone(303)295-8245
E ,� T w e iC -
Fax(303)713-6314
Jbborgel@hollandhart.com
June 18, 2008
Board of County Commissioners
Weld County
918 10th Street
Greeley, CO 80631
Re: Suncor Energy (U.S.A.), Inc. Interstate Pipeline Project
Dear Board of County Commissioners:
On April 21, 2008 Bruce Barker, County Attorney, and Kim Ogle, Weld County
Planning Manager met with me, Jamie Jost, Corporate Legal Counsel for Suncor Energy
(U.S.A.), Inc., and Tim Koch from Trigon EPC. The purpose of the meeting was to
discuss Suncor's plan to construct a new interstate crude oil pipeline through Weld
County from Suncor's Cheyenne, Wyoming pump station to its refinery in Commerce
City, Colorado (the "Interstate Pipeline"). In addition, we also wanted to discuss with
Mr. Barker our determination that the Interstate Pipeline did not require a Weld County
Use by Special Review permit since it is regulated, licensed or permitted under federal
regulations as an interstate transmission line and is therefor exempt from regulation
under Weld County's Zoning Code.
The Interstate Pipeline will primarily transport crude oil from Suncor's Cheyenne
facility to its Commerce City refinery for processing. A map showing the general route
for the Interstate Pipeline is attached for your information. The route for the Interstate
Pipeline will primarily cross private lands and will largely run parallel to Suncor's
existing 10" pipeline that also runs between their Cheyenne and Commerce City
facilities. Suncor has existing multi-line easement rights on many parcels of private
land and, for those parcels for which it does not have an easement, it is currently in the
process of obtaining new easements on those lands.
The Interstate Pipeline will be approximately 16 inches in diameter, and will be located
underground. It will include all parts of the facility through which crude oil moves in
transportation, including, valves, pumps, meters and other appurtenances connected to
the pipeline.
The Interstate Pipeline is comprehensively regulated and permitted under federal
regulations. The pipeline is regulated under standards established by the United States
Department of Transportation ("DOT") for the transportation of hazardous liquids by
pipeline. See 49 C.F.R. Part 195. The DOT regulations require pipelines to meet
design requirements and comply with numerous DOT requirements during the
Holland&Hart ur rt 0,4
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yeJ LZ�p'hone f3037 295-8000 Fax[303]295-8267 www.hollandhart.com 2008-
555 17th Street Suite 3200 Denver,CO 80202 Mailing Address PO.Box 8749 Denver,CO 80201-8749
Aspen Billings Boise Boulder Cheyenne Colorado Springs Denver Denver Tech Center Jackson Hole Salt Lake City Santa Fe Washington,D.C. O
HOLLAND&HART, pi Board of County
Commissioners
Trig Aw our wesT June 18, 2008
Page 2
construction. The DOT regulations require a pipeline right-of-way to avoid "as far as
practicable, areas containing private dwellings, industrial buildings, and places of
public assembly." The regulations state in specific detail the requirements for materials
inspections, construction inspections, welding, cover over buried pipelines, backfilling,
valves, pumping equipment, etc., and require that a complete construction record be
maintained for the life of the project. DOT regulations will continue to govern how the
pipelines are operated and maintained after they are constructed. Under the federal
permits, the federal agencies maintain regulatory control over construction, operation
and decommissioning practices relating to the pipeline. Finally, the Federal Energy
Regulatory Commission ("FERC") also regulates the Interstate pipeline, providing
commercial oversight.
In addition, Suncor is not a public utility under Colorado or Wyoming law. The
Interstate Pipeline will be used to move crude oil between its Wyoming and Colorado
facilities, and will not be utilized to provide any of these products directly to the public.
Neither is it a "Major Facility of a Public Utility" as defined by Section 23-1-90 of the
Weld County Code. As a result, the Interstate Pipeline is not a public utility and thus
does not require a Use By Special Review Permit under Chapter 23 of the Weld County
Code.
In sum, there is continuous federal regulation and oversight through the development,
construction and operational phases of the entire project. Because the Interstate
Pipeline is regulated and permitted under these federal regulations, the exemption in
Weld County Code Section 23-1-90 applies to the Interstate Pipeline project and a Use
By Special Review Permit is not required for the project.
We appreciate the opportunity to meet with Mr. Barker and Mr. Ogle to brief them on
Suncor's plans for the Interstate Pipeline. Mr. Barker orally confirmed our
understanding that a Use By Special Review Permit is not required for the Interstate
Pipeline. He asked that we write this letter to you, again introducing the project, and he
stated that he would prepare a letter in response confirming our understanding.
Of course, we will be glad to answer any additional questions whenever they may arise.
HOLLAND&HART.. I Board of County
Commissioners
THE LAW OUT WEST June 18, 2008
Page 3
Thank you for your understanding, and thanks again to Mr. Barker and Mr. Ogle for
their time and efforts.
Sincerely,
egin
741,9.
James B. Borgel
for Holland & Hart LLP
RAM
Enclosure
cc: Bruce Barker, Weld County Attorney
Kim Ogle, Weld County Planning Manager
Jamie Jost, Suncor
Tim Koch, Trigon EPC
3878241_2.DOC
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