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Home My WebLink About20082703.tiff HEARING CERTIFICATION DOCKET NO. 2008-67 RE: SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT#1666 FOR AN OIL AND GAS PRODUCTION FACILITY IN WESTERN DAIRYMEN COOPERATIVE, INC., IN THE C-3 (BUSINESS COMMERCIAL) AND I-I (INDUSTRIAL) ZONE DISTRICTS-MILKY WAY OWNERS ASSOCIATION,INC.,C/O KERR-MCGEE OIL AND GAS ONSHORE, LP A public hearing was conducted on October 8, 2008, at 10:00 a.m., with the following present: Commissioner William H. Jerke, Chair Commissioner Robert D. Masden, Pro-Tem Commissioner William F. Garcia Commissioner David E. Long Commissioner Douglas Rademacher Also present: Acting Clerk to the Board, Esther Gesick Assistant County Attorney, Cyndy Giauque Planning Department representative, Jacqueline Hatch Health Department representative, Lauren Light Public Works representative, David Snyder The following business was transacted: I hereby certify that pursuant to a notice dated August 29, 2008, and duly published September 5, 2008, in the Greeley Tribune,a public hearing was conducted to consider the request of Milky Way Owners Association, Inc., c/o Kerr-McGee Oil and Gas OnShore, LP, for a Site Specific Development Plan and Use by Special Review Permit#1666 for an Oil and Gas Production Facility in Western Dairymen Cooperative, Inc., in the C-3(Business Commercial)and I-1 (Industrial)Zone Districts. Cyndy Giauque, Assistant County Attorney, made this a matter of record. Jacqueline Hatch, Department of Planning Services, presented a brief summary of the proposal and entered the favorable recommendation of the Planning Commission into the record as written. She stated the site is located west of County Road 7.5, south of State Highway 119, and consists of approximately 19 acres. She stated the applicant intends to directionally drill three wells by augmenting an existing well site located on property owned by the Milky Way Owners' Association, Inc. She stated the facility is surrounded by agricultural uses to the west, commercial development to the east, the Town of Firestone to the north, and an open space area and St. Vrain school site,which is part of the Idaho Creek PUD,to the south. She stated the site is in the Special Flood Hazard Area, as determined by the Federal Emergency Management Agency(FEMA), and the Conditions of Approval and Development Standards require a Flood Hazard Development Permit(FHDP) for the site. Ms. Hatch stated the site is within the three-mile referral area for the Towns of Firestone, Frederick, and Mead, and the City of Longmont, which indicated no conflicts with its interests. She stated, in the referral response dated July 14, 2008, the Town of Frederick indicated the wells are within the Town's planning area designated for rural residential uses by its Comprehensive Plan. Therefore, the Town is requesting the installation of fencing, which meets its requirements in the event of an annexation. She further stated the applicant has responded to 2008-2703 PL1980 HEARING CERTIFICATION - MILKY WAY OWNERS ASSOCIATION, INC., C/O KERR-MCGEE OIL AND GAS ONSHORE, LP (USR#1666) PAGE 2 the Town of Frederick's referral, in a letter dated September 4, 2008, indicating the fencing recommendation has been taken under advisement; however, in the absence of an annexation agreement, the applicant intends to comply with the fencing requirements established by Weld County. Ms. Hatch stated no comments were received from the Towns of Firestone or Mead, and staff received one telephone inquiry from a surrounding property owner. She stated 17 referral agencies reviewed the proposal, five offered no comment, seven provided comments which have been addressed in the Conditions of Approval and Development Standards, no response was received from the Colorado Oil and Gas Conservation Commission(COGCC), the Boulder Valley/ Longmont Soil Conservation District, or the Idaho Creek Ditch Company, and she displayed photographs of the site and surrounding area. Clay Kimme, Department of Public Works,stated the site is accessed from County Road 7.5,which is a minor arterial with 110 feet of right-of-way required as part of the Idaho Creek PUD. He stated there are no traffic counts; however, this one-half-mile portion of roadway is used primarily by the residents of the Idaho Creek PUD, as well as businesses in the adjacent Western Dairymen Business Park. Mr. Kimme stated the applicant will be required to place a tracking pad at the entrance, and obtain a Stormwater Discharge Permit from the Colorado Department of Public Health and Environment. He further stated, on August 12, 2008, the Department of Public Works granted conditional approval of the FHDP,with the understanding that the applicant will anchor the tank batteries. Lauren Light, Department of Public Health and Environment, stated this facility will not be manned, therefore, water and sewer services are not required. She stated the Dust Abatement Plan was approved by staff, and she has no concerns with the proposal. Robert Spencer represented the applicant and stated the FHDP received conditional approval,the applicant will install the split-rail fence, and he will be conducting a site visit today to verify the tracking pad has been completed. In response to Chair Jerke, Mr. Spencer stated this application is for three directional wells on 80-acre drill windows. He further stated one well will be drilled into the J Sand formation, and the other two will access the Codell-Niobrara formation. Kevin Lyles, surrounding property owner, stated his primary concern is the issuance of building permits prior to the determination of the Commissioners. He commended the applicant for combining drilling activities at existing sites, and stated he is not opposed to the drilling activities; however, some additional conditions are necessary. Mr. Lyles stated he checked the Colorado Department of Public Health and Environment website and found that the applicant had not been issued a Stormwater Discharge Permit; however, grading work had started and they did fill in a portion of Idaho Creek and a small nearby pond. He expressed concern with the noise of activities at the site, which is adjacent to 351 residences, and he proposed requiring the applicant to construct a hay bale wall to mitigate noise. He stated Planning Services staff indicated a hay bale wall is not feasible on the subject site, due to flood hazard restrictions. He further stated the applicant needs to 1)file a Stormwater Permit,2)install a vehicle tracking pad on County Road 7.5, 3) install a noise abatement wall east of the site, 4) construct a fence to prevent surrounding residents who are using the open space from entering the facility, 5) mitigate wetland impacts, as acceptable to the Environment Protection Agency, and 6) re-vegetate the disturbed areas with 2008-2703 PL1980 HEARING CERTIFICATION- MILKY WAY OWNERS ASSOCIATION, INC., C/O KERR-MCGEE OIL AND GAS ONSHORE, LP (USR#1666) PAGE 3 native species. In response to Chair Jerke, Mr. Lyles stated he is the President of the Idaho Creek PUD Homeowners' Association, and he wants to ensure the open space is treated to remain consistent with the improvements made by the Homeowners'Association. He noted that although he believes his statements reflect the sentiments of the residents, he did not formally seek their input or support for his representation. In response to Commissioner Garcia, Mr. Lyles stated he has not reviewed the Development Standards. Responding to Commissioner Masden, Mr. Lyles stated the subject site is part of the Western Dairymen Cooperative Inc. PUD and is privately owned, and the Idaho Creek PUD Homeowners'Association owns the open space adjacent to the south. Commissioner Masden stated if there is a separate property, it may suggest the need for a fence to protect the rights of both sides. Mr. Lyles stated the Idaho Homeowners' Association has placed boulders and signs to designate the boundary in an attempt to restrict trespassing and off-road activities. He further stated they have also filed complaints with the Sheriff's Office; however, they were informed that the open space is available for public use as long as there are no illegal activities. Mr. Lyles submitted photographs, marked Exhibit E. Regarding the grading and possible infill of the wetland area, Mr. Spencer stated they did conduct an environmental audit and he will also be meeting with the operations personnel to ensure that the grading work complies with all necessary regulations. He indicated the applicant intends to anchor and fence the improvements, and although he would prefer to use a chain-link fence, Weld County staff indicated a split rail fence is necessary to address flood hazard issues. Regarding the noise concerns, Mr. Spencer stated the operations are located beyond the required setback from the neighborhood, and the applicant did not install the hay bales due to the flood hazzard. He stated he is willing to place 24-hour security at the facility to help prevent trespassing, and he will need to discuss the re-vegetation plan with operations personnel before committing to specific species. In response to Commissioner Rademacher, Mr. Spencer stated the facility is beyond the 350-foot minimum standard of the COGCC, and they will be using a traditional Patterson drilling rig. In response to Chair Jerke, Ms. Hatch stated Development Standard #11 addresses the requirement for a Stormwater Discharge Permit, Condition of Approval#1.A.4 requires installation of a tracking pad,and Development Standard#8 requires compliance with State noise statutes and regulations. Responding further to Chair Jerke, Mr. Kimme stated hay bales are not allowed at the subject site due to flood hazard concerns; however, since the drilling activities will be temporary and only last a few weeks, he is more concerned with the type of permanent fencing. Commissioner Rademacher stated a hay bale wall would need to be 20 feet tall to block the drilling rig. Ms. Hatch stated the nearest residence is 1,000 feet away, and Mr. Kimme stated he was not able to hear any unreasonable noise when he visited the site yesterday. Commissioner Rademacher stated he does not believe the noise mitigation is necessary. In response to Commissioner Masden, Mr. Spencer confirmed the rig is equipped with the noise reduction mufflers, and noise abatement insulation. Chair Jerke stated the noise regulations are enforced at the property line, and Ms. Light stated the noise is also regulated through the COGCC. Mr. Kimme stated the original FHDP did propose a chain link fence; however, they can be hazardous in a flood when flows are blocked resulting in a flow onto adjacent properties. In response to Commissioner Rademacher, Mr.Kimme stated the fence will be permanent,therefore, he suggested a split rail fence; however, it does not provide security. Responding further to 2008-2703 PL1980 HEARING CERTIFICATION- MILKY WAY OWNERS ASSOCIATION, INC., C/O KERR-MCGEE OIL AND GAS ONSHORE, LP (USR#1666) PAGE 4 Commissioner Rademacher, Mr. Kimme agreed this is a 50-square-foot parcel, located within a much larger open space, therefore, it is likely that flood waters would flow around the site. Commissioner Rademacher stated he is agreeable to allowing a chain link fence to address the security issue. Mr. Kimme stated the fencing is addressed in the FHDP,and accommodations may be made on a case-by-case basis. The Board agreed that it is more appropriate to address the security and safety issues with a chain link fence, which is not likely to pose a flood hazard, and Mr. Kimme verified the FHDP will be amended to allow a 6-foot chain link fence. Ms. Hatch stated the post-drilling re-vegetation could be added as a Development Standard; however, it is also a requirement of the COGCC. Mr. Spencer stated the applicant is required to return the site to its original condition, and he will confer with the operations personnel. Commissioners Rademacher and Masden indicated it would also be appropriate for the applicant to coordinate with the surface owner to meet their requirements. Responding to Chair Jerke, Mr. Spencer stated wetland mitigation is required by the COGCC, and the applicant hired a third-party contractor, by the name of Otter Tail, from Boulder County, to ensure the site is returned to its original state. In response to Commissioner Rademacher, Ms. Hatch stated the applicant was granted an early release of building permits for the oil and gas drilling rig. Chair Jerke stated this type of use is typically allowed as a Use by Right, and the Board only considers the use if located out of the A (Agricultural) Zone District. Mr. Spencer stated on November 6, 2008, the applicant will be hosting a rig tour, and he invited the Board to attend. Commissioner Long stated he has a schedule conflict, but requested notice of any rig tours in the future. Responding to Chair Jerke, Mr. Spencer stated he and the applicant have reviewed, and concur with, the Conditions of Approval and Development Standards. He reiterated the applicant will provide 24-hour security during the remainder of the drilling activities. Commissioner Rademacher moved to approve the request of Milky Way Owners Association, Inc., do Kerr-McGee Oil and Gas OnShore, LP, for a Site Specific Development Plan and Use by Special Review Permit #1666 for an Oil and Gas Production Facility in Western Dairymen Cooperative, Inc., in the C-3 (Business Commercial) and I-1 (Industrial)Zone Districts, based on the recommendations of Planning staff and the Planning Commission, with the Conditions of Approval and Development Standards as entered into the record. The motion was seconded by Commissioner Masden,and it carried unanimously. There being no further discussion,the hearing was completed at 10:55 a.m. 2008-2703 PL1980 HEARING CERTIFICATION -MILKY WAY OWNERS ASSOCIATION, INC., C/O KERR-MCGEE OIL AND GAS ONSHORE, LP (USR#1666) PAGE 5 This Certification was approved on the 13th day of October, 2008. APPROVED: S BOARD OF COUNTY COMMISSIONERS _ � s ELD COUNTY, COLORADO �®ATTEST: ''caul 6 u �2.2 " "liam H. Jerke, Chair Weld County Clerk to the Bo`aFt> ;is `.\/)(7 77-k XCUSED DATE OF APPROVAL amp,- Robert Masde Pro-Tem BY:\ , Vc De .y Cle to the Board �� Will. Garcia Cuu David E. Long InkL c.C?/ EXCUSED DATE OF APPROVAL Douglas Rademacher 2008-2703 PL1980 EXHIBIT INVENTORY CONTROL SHEET Case USR#1666 - MILKY WAY OWNERS' ASSOCIATION, INC., C/O KERR-MCGEE OIL AND GAS ONSHORE, LP Exhibit Submitted By Exhibit Description A. Planning Staff Inventory of Items Submitted B. Planning Commission Resolution of Recommendation C. Planning Commission Summary of Hearing (Minutes 09/16/2008) D. 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