HomeMy WebLinkAbout20071463.tiff HEARING CERTIFICATION
DOCKET NO. 2007-43
RE: SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT#1604
FOR AN OIL AND GAS SUPPORT FACILITY(CLASS II OILFIELD WASTE DISPOSAL
FACILITY) IN THE A (AGRICULTURAL)ZONE DISTRICT - MARCUM MIDSTREAM
1995-2 BUSINESS TRUST
A public hearing was conducted on June 6, 2007, at 10:00 a.m., with the following present:
Commissioner David E. Long, Chair- EXCUSED
Commissioner William H. Jerke, Pro-Tem
Commissioner William F. Garcia
Commissioner Robert D. Masden
Commissioner Douglas Rademacher
Also present:
Acting Clerk to the Board, Jennifer VanEgdom
Assistant County Attorney, Cyndy Giauque
Planning Department representative, Kim Ogle
Health Department representative, Trevor Jiricek
Public Works representative, Jesse Hein
The following business was transacted:
I hereby certify that pursuant to a notice dated May 18, 2007, and duly published May 23, 2007, in
the Fort Lupton Press, a public hearing was conducted to consider the request of Marcum
Midstream 1995-2 Business Trust for a Site Specific Development Plan and Use by Special Review
Permit#1604 for an Oil and Gas Support Facility (Class II oilfield waste disposal facility) in the
A(Agricultural)Zone District. Cyndy Giauque, Assistant County Attorney, made this a matter of
record and 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,
it will require three affirmative votes, or in the case of a tie vote, Chair Long will listen to 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 favorable recommendation of the Planning Commission into the record as written. He stated
the site is located west of County Road 39 and two miles south of County Road 32, and it is not
located within the three-mile referral area for any municipality. He stated the facility will contain
eleven tanks and a building for the pumps and office, and two employees will work at the site. He
further stated the facility will accept trucks from 7:00 a.m. to 10:00 p.m., daily, and an average of
fifteen trucks will visit the facility approximately four times per day. Mr.Ogle stated surrounding land
uses are predominantly residential and agricultural, the site will be serviced with commercial well
water, and a septic system will handle the effluent flow. He stated the primary access and haul
route are located on County Road 39,which is a local paved road. He stated ten referral agencies
have reviewed the application, and nine offered comments that have been incorporated into the
Conditions of Approval and Development Standards. He further stated a letter has been received
from Nancy Frase, representing surrounding property owners, marked Exhibit F. He stated there
are currently oil and gas encumbrances located on the property,and the applicant has been working
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on an agreement with Kerr-McGee Oil and Gas OnShore, L.P.; however, it is not finalized. He
further stated the applicant is required to submit a copy of an agreement with the property's mineral
owners, stating the gas activities have been addressed,or the applicant may place drill envelopes
on the plat. In response to Commissioner Rademacher, Mr. Ogle stated the property is
approximately 80 acres in size; however,a Recorded Exemption for a 34-acre parcel has recently
been approved for the applicant, and the facility will be located within the 34-acre parcel.
Responding to Chair Pro-Tem Jerke, Mr. Ogle stated the property is located at the intersection of
County Roads 39 and 28,and an application for a horse racing facility was previously submitted on
this property and denied by the Board. He further stated the title to the property has been transferred
since the previous application,and Marcum Midstream 1995-2 Business Trust is now the fee owner
of the property, and conducts business as Conquest Oil Company.
Trevor Jiricek, Department of Public Health and Environment, stated the Department has worked
with the applicant at several similar facilities within Weld County, and the applicant has set the
standard within the County for design and operation for injection facilities. He stated the applicant
has agreed to construct and operate the facility in the same manner as current facilities, including
the use of concrete tanks and unloading pads. He further stated the facilities are inspected quarterly
by the Department, and the Colorado Oil and Gas Conservation Commission (COGCC)inspects
the facilities annually. In response to Commissioner Rademacher, Mr. Jiricek stated the
Department is required to monitor the groundwater.
Jesse Hein, Department of Public Works, stated County Road 39 is a collector status road,which
requires 80 feet of right-of-way at full buildout. He stated County Road 28 is a local paved road,and
safety issues exist at the intersection of County Roads 39 and 28; however, the applicant has
located the access away from the intersection to alleviate concerns. He stated the Department is
requesting a new detailed entrance plan for adequate vehicle staging,and the entrance will need to
be paved for at least 90 feet. He further stated prior to recording the plat, the applicant will be
required to provide a parking and circulation plan,and an Off-Site Improvements Agreement,which
will address improvements required for the acceleration and deceleration lanes.
Mr. Butcher stated Conquest Oil Company began in 1993 with one well,and the company has since
replaced several other companies which were not providing environmentally friendly practices. He
stated the company now owns six wells at five locations, and he understands that oil and gas
activities are very important in Weld County, since approximately forty percent of the tax base in
Weld County is derived from oil and gas activities. He further stated several rural school districts
within the County receive approximately 75 percent of the yearly operating revenues from oil and
gas activities. He stated it is important to provide as much capacity to treat the waste as the
industry needs, and another facility is necessary. In response to Commissioner Masden,
Mr. Butcher stated between 20,000 and 30,000 barrels of water are injected each day, and the
company is the primary provider of this service to all of the oil and gas companies within the area,
with the exclusion of KP Kauffman Company. Responding to Chair Pro-Tem Jerke, Mr. Butcher
stated the facility located at the intersection of County Roads 39 and 40, approximately six miles
away, is the busiest facility in operation, and it is currently operating at maximum capacity. He
further stated opening the newfacilitywill alleviate the high amount of traffic to the facility located at
County Roads 39 and 40.
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Joan Camp, surrounding property owner, stated she is speaking on behalf of her father Melvin
Camp,and he is a co-owner of the property directly west of the proposed development. She stated
she is pleased that the applicant will not utilize County Road 28 to access the site; however, she
still has many concerns, including the availability of water, the drilling depth of the wells, and the
effect to the water supply for long-term usage. She requested that the applicant provide information
regarding the studies completed relating to water and other natural resources. She stated the
facility located on County Road 39, six miles to the north, is very unsightly, is in close proximity to
a residential property, the operations on the site are very noisy, and many traffic problems are
occurring on County Roads. Ms. Camp expressed her opposition to the facility since her father's
land is leased as agricultural and pasture lands, there is only one source of water in the area, not
including a ditch that runs through the area, and approval of the application would be a gross
injustice.
Nancy Frase, Frase Consulting Group,spoke on behalf of sixteen surrounding property owners and
families, all of which have placed a large investment to create safe and peaceful homes for their
families. She provided an outline of her presentation, marked Exhibit I, and stated the proposal is
at odds with current and future residential development. She further stated the appearance will
create an eyesore,and the noise from the 60 truck trips per day will create a noise issue in addition
to the noise created by the pumping operations. She further stated the possibility of environmental
contamination exists, especially concerning the well water,and the proposed facility will affect the
property values within the surrounding area. Ms. Frase stated the Brunson family, surrounding
property owners to the north,would like to subdivide their property;however,the new parcel would
be located right next to the proposed facility,therefore,the family believes it is no longer a feasible
option. She stated the surrounding property owners believe the use is not compatible with the area,
and request the application be denied. She further stated if the application is approved, the
surrounding property owners are requesting that several issues be addressed in the Development
Standards. She stated the applicant has agreed to plant and maintain trees along the northern
perimeter of the parcel, move the pump-house garage doors, keep the west pump-house garage
door closed a vast majority of the time, and restrict the use ofjake-brakes on the trucks entering the
facility. Ms. Frase stated the surrounding property owners have an additional five requests to which
an agreement was not reached, including a request that the unloading of trucks be completed by
7:00 p.m. She clarified the neighbors do not have concerns with early morning noise;however,they
do have issues with late evening noise. She stated the surrounding property owners also request
a ten-foot fence be placed along the northern perimeter of the property and that County Road 28 not
be utilized for trucks coming to the facility. She clarified that this section of road is utilized for other
oil and gas operations; however, the road is gated and locked, and the applicant has not had an
opportunity to respond to this particular request since the use of the road has only recently come
to her attention. She further stated the surrounding property owners request the applicant be
required to comply with noise levels required in the Residential Zone District along the northern
perimeter of the property,and that the applicant pave the entire length of the access driveway,from
County Road 39 to the loading pad. Ms. Frase requested the County provide further review of the
road design, ingess and egress, emergency roads, and acceleration and deceleration lanes, and
she requested additional development and review be completed regarding the Dust Abatement Plan.
She stated the surrounding property owners have difficulty getting grass to grow in the area,and the
plan needs further review. In response to Chair Pro-Tem Jerke, Ms. Frase clarified the applicant's
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representative has been aware of the surrounding property owner's requests,with the exception of
the request regarding not utilizing County Road 28 for truck traffic. She stated the concerns and
requests were provided to the applicant's representative at a previously held meeting.
Kevin Brunson, surrounding property owner, stated he appreciates the Board's consideration of
requests mentioned by Ms. Frase,especially modification to the hours of operation on the site. He
stated the trucks visiting the site are very disruptive and noisy at night. There being no further
comments, Chair Pro-Tem Jerke closed the public input portion of the hearing.
Mr. Butcher stated he would like to respond to the concerns previously expressed. He stated the
wells are approximately 10,000 feet deep,and the water is placed under pressure through a pump
to the Lyons Formation. He stated the Lyons Formation is approximately 100 feet thick and is dry
sand with a granite barrier above and below. He stated the COGCC provides limits for the amount
of pressure to place the water in the ground,which is determined by a scientifically-determined frac
gradient,and the frac gradient will determine what point of pressure would cause the water to break
out of the top or the bottom. He further stated when the well is drilled, the seven-inch casing is
placed, and the back of the well is cemented behind the casing from the bottom of the formation to
the surface. He stated a bond log is then completed to ensure the cement has bonded to the
casing, and that no gaps exist. He further stated tubing is inserted within the casing, groundwater
is protected by the tubing, and the pressure of the space between the tubing and the casing is
monitored. He explained if the space contains pressure, it means that water has escaped from the
tubing and into the casing, and the State requires that operations cease immediately. He stated
before any water could escape from the containment, the casing would have to fail and then the
cement would have to fail, therefore, he feels very comfortable that the groundwater is well
protected. Mr. Butcher stated the subsurface water is monitored by at least four monitoring wells
at each location, and the wells are checked approximately every three to six months. He further
stated independent environmental engineers complete the testing, determine which direction the
water is flowing underneath the facility, and test for contamination between the approach to the
facility and the exit from the facility. He stated if the water were to be contaminated, it would be
quickly discovered, and operations would be shut down immediately.
Mr. Butcher stated the unsightly facility located at the intersection of County Roads 39 and 40 was
purchased from a gentleman who had already constructed the facility. He stated the company
would not have built it that way, or at that location; however, the facility meets all the required
standards. He stated the trucks that will visit the proposed facility are already part of the traffic count
on the roads traveling to other facilities, most of them at a farther distance,and the proposed facility
will reduce truck mileage for water disposal activities. He stated the closest surrounding property
owner to the first facility constructed was very angry after the facility was approved, and offered to
sell his property in order to move away from the facility. Mr. Butcher stated the company began
negotiations a year later to purchase the property, and the property owner had doubled the price
because he believed the company was a really good neighbor, and now the company has been a
good neighbor for over fourteen years. He stated the company does not want to be a bad neighbor,
and he is open to talking to surrounding property owners regarding concerns. He stated the facility
is an industrial use,and several properties within the area are also industrial uses, including turkey
ranches, salvage yards, and Tire Mountain, all of which are located within one-half mile of the
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proposed facility. He further stated the proposed facility will have a more appealing look than the
previously mentioned facilities. Mr. Butcher stated the facility is required to comply with a noise level
of less than 70 decibels,and all other facilities are already in compliance with that requirement. He
stated many of the other facilities have surrounding property owners within a closer proximity than
the 1,000-foot distance at this proposed facility. He reiterated the facility will comply with all noise
requirements, and the applicant will work to mitigate all concerns voiced by surrounding property
owners.
Mr. Butcher stated the company has agreed to four of the requests presented by Ms. Frase, and
clarified that trees will be planted along the northern perimeter of the property;however,they will not
plant mature trees. He stated the request to have trucks unloaded by 7:00 p.m.is unreasonable and
unacceptable. He explained that the trucks are loaded at various sites during the morning hours,
therefore, the drop-off facility does not begin to receive loads until early afternoon. He stated the
requirement of a ten-foot opaque fence would be very expensive,and it is excessive to require it to
be placed along the entire northern boundary of the property. He stated if issues come up after
approval,the company will work with surrounding property owners. He clarified delivery trucks will
not utilize County Road 28; however, it may be necessary for the drilling rig to utilize the road, and
workover rigs may need to utilize the road on a very infrequent basis. Mr. Butcher stated the
70 decibel noise limit is appropriate for the site, and the applicant has agreed to mitigate dust. He
clarified the company would prefer to provide other dust abatement measures and not be required
to pave the entire driveway. He stated the acceleration and deceleration lanes have been reviewed
as a part of the application, and have been designed by Pickett Engineering. He further stated the
company is committed to not cause unnecessary dust.
In response to Commissioner Garcia, regarding late night noise concerns, Mr. Butcher stated the
facility will accept wastewater until 10:00 p.m.; however,the water received is pumped 24 hours per
day. He clarified the trucking operations are limited, but the pumping operations are not. In
response to Chair Pro-Tem Jerke, Mr. Ogle stated this requirement is addressed in Development
Standard #27; however, the language only addresses the hours for the acceptance of the
wastewater. Responding to Commissioner Rademacher, Mr. Butcher stated the company has
never had a formation completely fill; however, as more water is placed, the amount of pressure
necessary to inject water increases, and the process is regulated by the COGCC. Further
responding to Commissioner Rademacher, Mr. Butcher stated approximately 60 to 70 trucks per
day will visit the site on the busiest days,and the trucks that visit the site will already be on the roads
visiting other injection sites if this facility were not approved. He further stated it takes approximately
10 to 20 minutes to unload each truck. In response to Commissioner Masden, Mr. Jiricek stated
inspections are completed quarterly,and the sample reports are submitted quarterly for the first four
to eight quarters. He further stated the facility is a Class II well, therefore, it can only receive
exploration and production waste. He stated the COGCC is the lead authority regarding downhole
injection,which requires a minimum of one inspection per year with an inspector. Responding to
Commissioner Masden, Mr. Butcher stated the maximum amount of pressure allowed varies per
well, based on the science completed to determine the frac gradient; however, generally it is
approximately a couple thousand of pounds of pressure. He stated most of the pressure is friction
due to the pumping of thousands of barrels of water down the small tubing. He further stated if
some of the wells were allowed to rest, the wells would actually suck water out of the tanks;
however,the tanks have not rested in a long time. In response to Commissioner Rademacher, Mr.
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Jiricek stated the monitoring activities are completed by both the Weld County Department of Public
Health and Environment and the COGCC. Mr. Butcher clarified a third-party environmental firm drills
the wells, and another company completes the water testing at the well. He stated the company
takes a sample at the well and then tests the sample at its laboratory,then a report containing the
results is sent to the applicant, the County, and the COGCC.
Commissioner Garcia stated the language of Development Standard#27 only addresses the hours
of operation for truck traffic, and he has concerns that the pumping activity may be in violation of the
language presented. In response, Ms. Giauque stated the language will need to be revised to
address the pumping operations. In response to Commissioner Rademacher, Mr. Hein stated the
most recent traffic count was completed in 2004,and the traffic on County Road 39 varies between
650 and 1,400 vehicle trips per day. Responding to Commissioner Rademacher, Mr.Ogle indicated
the placement on the nearest residences on the provided map, and stated it is approximately 1,000
feet from the facility boundary to the nearest residential home. Mr. Jiricek clarified the closest
residence is just over 1,500 feet. In response to Chair Pro-Tem Jerke, Mr. Hein stated the Brunson
residence is approximately 1,600 feet from the facility. Responding to Commissioner Masden,
Mr. Hein stated he has information regarding which percentage of the average daily traffic count is
trucks; however, he cannot access that information with the current GIS program he is utilizing on
his computer. In response to Chair Pro-Tern Jerke, Mr. Butcher stated he has read, and concurs
with,the Conditions of Approval and Development Standards,with the exception of some wording
in Condition of Approval#1.N and Development Standard#22. He stated the language refers to a
Road Maintenance Agreement, and the draft language he received contains the words "any
damage"which makes him feel uncomfortable. Following discussion among the Board, Mr. Hein
recommended the language be modified to state: "... and the applicant shall be responsible for
maintenance and repair of County Road 39, related to truck traffic at the facility...". Mr. Butcher
concurred with the proposed language. In response to Commissioner Rademacher,Mr. Hein stated
the Department of Public Works will determine the damage since it is a County Road. The Board
concurred with the modification of the language to Condition of Approval#1.N and Development
Standard #22, as described by Mr. Hein.
Ms.Giauque recommended the words"of operation"be removed from the language of Development
Standard#27. Chair Pro-Tem Jerke stated he would prefer the language address the hours of the
pumping operations, and in response Ms. Giauque recommended the language state: "Hours of
operation, excluding acceptance of wastewater,shall be 24 hours perday, and hours foracceptance
of wastewater shall be limited from 7:00 a.m. to 10:00 p.m. daily." The Board concurred with the
recommendation of Ms. Giauque. In response to Chair Pro-Tern Jerke, Mr. Butcher indicated he
concurs with the modifications discussed.
Melvin Camp, surrounding property owner, expressed concerns regarding access to the site and
the haul route to be utilized. Chair Pro-Tem Jerke requested that Mr. Hein address Mr. Camp's
comments, out of respect of the fact that Mr. Camp is a long-time farmer and businessman within
Weld County. Mr. Hein stated the truck traffic will only access County Road 39. Chair Pro-Tem
Jerke stated it appears that most of the traffic will travel south on County Road 39,and some traffic
will travel east on County Road 28. Mr. Hein concurred that is the assumption of the Department
of Public Works. Chair Pro-Tern Jerke further commented the applicant has other facilities to the
west and south to receive business within other areas of the County.
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Commissioner Masden stated it appears that most of the requests from the surrounding property
owners have been addressed,the County has dealt with the applicant at several other locations of
business, and the applicant has proven to be a good neighbor. He stated the facility located at the
intersection of County Roads 39 and 40 was a problem facility before the applicant purchased the
property, and there have been no complaints against the facility since the change of ownership
occurred. He stated the applicant has a proven track record,and has done a great job working with
the COGCC and other groups, and he is in support of the application.
Chair Pro-Tern Jerke stated he received many complaints regarding the facility at the intersection
of County Roads 39 and 40 before the change of ownership took place, and he was able to see
firsthand that the previous property owner was participating in shady activities. He stated the former
operator has since served time in a federal facility and the applicant has stepped in to clean up and
run a formerly faulty facility without any complaints. He stated the background and reputation of the
applicant in the current facilities gives him confidence for approval of this proposed facility. He
further stated he understands the concerns of the surrounding property owners; however, the
applicant is conducting business responsibly and the operations conducted are preferable to the
night dumping that previously occurred in borrow pits, which created a serious potential of
groundwater contamination. He stated the applicant conducts business professionally with high
levels of monitoring, and he is in support of the application.
Commissioner Rademacher stated he would like to see all of the surrounding property owners'
requests fulfilled; however, some of the requests are unreasonable. He stated all modern trucks
have mufflers on the jake-brakes, and the area is agricultural,therefore, the use of jake-brakes is
justified. He further stated the hours of operation have been discussed,and regarding his question
about the proposed fence, Mr. Ogle stated the land to the north of the facility is pasture land.
Commissioner Rademacher stated a 10-foot fence is not justified, and he believes the request for
noise levels to be comparable with the Residential Zone District is also not justified. He further
stated the application is very well planned, and his concerns regarding the contamination of
groundwater have been addressed, therefore, he is in support of the application.
Commissioner Garcia stated an e-mail received from Ms. Frase indicated a methamphetamine lab
was previously located on the property, and he believes the applicant will be a good neighbor in
comparison to the previous occupants of the property. He further stated this use will be a good
benefit to the community.
Commissioner Masden moved to approve the request of Marcum Midstream 1995-2 Business Trust
for a Site Specific Development Plan and Use by Special Review Permit#1604 for an Oil and Gas
Support Facility(Class II oilfield waste disposal facility)in the A(Agricultural)Zone District, based
on the recommendations of the Planning staff and the Planning Commission, with the Conditions
of Approval and Development Standards as entered into the record. His motion included the
previously discussed modifications to Condition of Approval#1.N,and Development Standards#22
and#27. The motion was seconded by Commissioner Garcia, and it carried unanimously. There
being no further discussion, the hearing was completed at 11:10 a.m.
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This Certification was approved on the 11th day of June 2007.
APPROVED:
BOARD OF COUNTY COMMISSIONERS
���� /J WELD COUNTY, COLORADO
ATTEST: 4,1e v"G/,,��, EXCUSED
_""r David E. Long, Chair
Weld County Clerk to the Board _
BY. C.� �2 y1 William�l. JeKe Pro-Tem
lr
Deputy Cl rk to the Board I / C
am F. cia
TAPE #2007-16
Robert D. Masden
DOCKET#2007-43
Doug as ademacher
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EXHIBIT INVENTORY CONTROL SHEET
Case USR #1604 - MARCUM MIDSTREAM 1995-2 BUSINESS TRUST
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 04/17/2007)
D. Clerk to the Board Notice of Hearing
E. Public Works Staff E-mail re: Modification to Development
Standard #23, dated 05/21/2007
F. Planning Staff E-mail from Nancy Frase and neighbors,
dated 05/22/2007
G. Kerr-McGee Oil and Gas Letter of Support, dated 06/04/2007
H. Planning Staff Certificate and photo of sign posting
Nancy Frase Copy of presentation
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