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Home My WebLink About20061259 SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW (USR) APPLICATION FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT# /$ CASE#ASSIGNED: APPLICATION RECEIVED BY PLANNER ASSIGNED: Parcel Number 0803-28-0-00-062 Legal Description Section 28, Township 6N, Range 65W of the 6th P.M. Flood Plain: Zone District: A Total Acreage: 77.532 approx. Overlay District: Geological Hazard: , Airport Overlay District: FEE OWNER(S) OF THE PROPERTY Name: Duke Energy Field Services by Virtue of an acquisition from ANGC corporation Work Phone: (970) 356-9700 Address: 1324 N. 7th Avenue, Greeley, Colorado 80631 APPLICANT OR AUTHORIZED AGENT (See Below: Authorization must accompany applications signed by Authorized Agent) Name:Timothy V. Clancy of Witwer Oldenburg Barry&Johnson, LLP, attorney for Duke Energy Address: 822 7i° Street, Ste. 760, Greeley, Colorado 80631 Work Phone: (970) 352-3161 PROPOSED USE: I hereby state that all statements and plans submitted with the a plication are true and correct to the best of my knowledge. Signature: wner or orized Agent EXHIBIT 2006-1259 ^ RESPONSES TO USE BY SPECIAL REVIEW QUESTIONNAIRE (LUCERNE) 1. The Proposed Use of the Property The Lucerne Compressor Station is a natural gas processing plant and compressor station designed to extract natural gas liquids from field-produced natural gas,and recompress the processed gas prior to transmission to the sales pipeline. The Lucerne facility provides a critical link between natural gas producers at the wellhead and end use consumers at the burner tip. The composition of raw natural gas produced in the Weld County area is such that it must be processed at a plant in order to meet the gas quality specifications of interstate pipelines and local distribution companies. Due to the recent increases in drilling activity, and projected additional increases by DEFS' producer customers, it will be impossible for the Lucerne facility to adequately serve the mineral owners and well operators. DEFS estimates that the plant must be modernized by May 2006 in order to facilitate additional gas production growth without any disruption of service. It is therefore critical that DEFS commence improvements as soon as possible. Natural Gas Associates, a predecessor of DEFS, purchased the existing facility in 1986. The facility had been originally constructed pursuant to a USR issued at about that time and most recently amended in 2004. DEFS would now like to modernize the existing equipment to its current standards, both to enhance the plant's safety and modify the gas processing portion of the facility to handle more gas on site (rather than, for example, moving it to other Duke facilities in Weld County via the connected gathering pipelines). To allow optimum equipment spacing, the facility's footprint will increase in size by 200' on the west side and 300' on the south side. Compression capacity to move gas through the site will nominally increase from the current maximum capacity of 28 MMcfd to approximately 30 MMcfd. Through the use of a different gas processing skid from another location,the gas processing capacity at the site will increase from the current maximum capacity of 17 MMcfd to approximately 30 MMcfd in order to match the capacity of the inlet compression. In sum, while the proposed changes will slightly increase the capacity of the facility to move gas,there will be no change to the scope of operations of the facility. The changes, which are summarized below, will effectively make the facility safer and ensure its continued operation for many years to come: a. Removal of Existing Equipment. The process skids, heater, coolers, vessels, and other existing miscellaneous processing equipment will removed from the site to make plot space available to locate the new or reworked compressors per DEFS spacing guidelines. b. Engines and Compressors. Existing engines and compressors (C-105,C-106,C-107, C-108, C-109, and C-110) will be replaced with new or reworked engines and compressors that are appropriately sized and located per DEFS spacing guidelines. One new engine and compressor will also be installed. Please note that despite these changes,the site will still meet all development standards, including those relating to sound. c. Installation of Cryogenic Process. This process consists of a distillation column, heat exchangers, pumps, vessels, coolers, a heater and three skids containing processing equipment. This process is more efficient and is capable of processing more gas than the existing refrigeration process. d. Installation of Liquids Treating Process. The liquids treating process consists of a distillation column, pumps, vessels, a heater, and one skid containing treating equipment. This process removes H2S from the liquid. H2S is a compound that concentrates in the liquids and can create product quality issues. As a field ages, more H2S is sometimes found. Given the age of the field, DEFS believes it is important to install this equipment for safety and quality control purposes. e. Installation of three storage tanks and Truck Rack Expansion. The new process, being more efficient than the existing process,can extract more liquids from the gas. As a result,three additional storage tanks and an expanded truck rack are required to handle the increased liquids. f. Replacement of original underground pipes with modern above ground pipes and pipe rack. These new pipes will significantly enhance the safety of the facility. They are constructed according to the strictest new standards, and, given their above ground locations, their integrity may be more easily monitored. g. Replacement of the control system. The new system will utilize a digital computer control system rather than the older pneumatic system. This new system will allow DEFS to operate the facility more safely and efficiently. h. Replacement of Motor Control Centers with one new modern Motor Control Center Building. The new Motor Control Center(MCC BLDG)will serve the same function as prior motor control centers,but will of course be more modem,efficient,and safe. Installation of Flare and Thermal Oxidizer. A new flare will be installed to safely bum appropriate relief valve discharges and a new thermal oxidizer may be installed to safely bum the liquid treating vent. It is important to note that this flare will not incorporate a large visible flame, but instead use a small blue flame that will generally not be visible (see for example the Greeley and Platteville facilities). j. Installation of miscellaneous processing equipment. Storage tanks and pumps for necessary processing fluids (water, antifreeze, treating chemicals, lube oils, sumps, etc.) will be installed per the latest DEFS safety and environmental standards. 2. Consistency with Weld Comprehensive Plan: The proposed use is consistent with the Comprehensive Plan because it seeks to use the land to foster the development of the vast natural resources in Weld County. Moreover, given the property's size together with the absence of any water rights attached to the property,it is impractical to use this property for farming. 3. Consistency with the Intent of the Weld County Zoning Ordinance and the zone district: The proposed use is consistent with the intent of the Agricultural Zone District, as it will foster the development of oil and natural gas resources, and Section 31.2 of the Weld County Ordinance provides that Oil and Gas Production Facilities are allowed as a matter of right in the Agricultural Zone District. Further, it will not interfere with any agricultural operations. 4. Surrounding Uses: The site is surrounded by agriculture uses. 5. Details regarding Use: a. How many people will use the site?1-2 generally just operator with perhaps a mechanic or technician or boss b. How many employees will be on site? Employees generally 2. c. What are the hours of operation? 24 hours d. Structures to be built? See maps e. What type of animals? None. f. What type of vehicles? Pickup truck for employees; 1-3 semis for Y-grade natural gas liquids (NGL) not condensate; approximately three per day g. Who will provide fire protection? Greeley Fire Department h. What is the water source? North Weld Water (account#181110) i. What is the sewage disposal? Septic j. Will there be any warehousing?No 6. Explain the Proposed Landscaping: There is no landscaping. Weld County Department of Planning Services Page 4 December 8, 2005 7. Proposed Reclamation Procedures: No reclamation procedures will be necessary. 8. Storm Water Drainage: The current natural drainage will not be disturbed. 9. Timetable for Construction and Landscaping: All construction is complete. 10. Storage of Wastes: All wastes will be removed by truck or other appropriate method Applicant: Planner: ,3 -c - c. Case#: RE- 1 5352 51 I iiii 1, ,, , / ' _.. .i e 1 I I 8 I 8 I i ....., 1 50 r A i 1 \I i r Al Iv 1...„.....„_________________Iii 0.4 0 0.4 0.8 Miles z 1 v ' Highways Major Roads A/ Local Roads N Railroads NStreams & Ditches Plsspoly1.shp \ / SoilsSoil Types W j r E Lakes Floodplains S C f / B. CL a o § c cc f 2 LL. t2 0ca - CO• � � � 0@ ® \ � � � ` a » / 2222 ) � ` cI Q I- ia § f 22 = i § k c« a \\ \\ \ \ — \ - ) - . k § / [ 2 2 = ° o � /\ / 5 La� � o % a , 0 -. § c 0 CO 8 fl 2 _ _ � 2 a k � /\ \\ § § �_ 9 ff ti k # � k � lie- ' 02 f/ \\ 7777 f0 k � J kR 2 I - k § p . 22 [ ® - ` ® - - J § � I //} /\ \ E � Cl) a O 2 § f . ) 2 7 $ a 0 TA ) EEE to / s EEE -ojjj k co ) a) o ] ] ] 2222 § J , 2 ■ 2Z k k z - k • . $ coo \ k © 20 � « « 20000 m § § 7 41 C a 2 . } t22 0 ¢I � \ f27 II • TELEPHONE NUMBER DUKE EMPLOYEES AND CONT ACTORS DUKE Operations Duke Energy Field Services 370 17th Street, Suite 900 (303) 595-3331 Denver, Co. 80202 DUKE Greeley Plant (970) 330-3272 3009 W. 49th Street Evans, CO 80620 Plant Manager: Rusty Hopkin Office Home (970) 330.3272 Mobile (970) 356-5238 (970) 539-1785 Area Asset Manager: James Wakeley Office Home (970) 378-6345 Mobile (970) 506-4195 (970) 539-1932 a Safety Leader Jenifer Ureste Office ext 6368 (970) 356-9701 Home Mobile (970) 284.5686 (970) 539-1861 DUKE Corporate Personnel Rockies Business Unit General Manager George Courcier Office Cell (303) 605-1788 Home 1303) 886-6177 (303) 721-2974 DUKE Safety Department Mitch Griggs Office Cell (720) 944-9378 (303) 809-0732 DUKE Greeley Plant Page A-1 8/9/2001 Emergency Response Plan Risk Management(Insurance) Orlin Berg Office (713)989-3234 Home 4 (281)838-1126 ^-0obile l (713)504-8228 Environmental Paul Parks Office 4 (970)378-6372 Home (970)339-5279 Cell (970)539-1908 Public Relations (Charlotte) Office { (888)266-3853 Legal Department Paul Biancardi Office (713)627-5225 Home j (281)360-6314 Pager (800)916-8354 Paul Tourangeau Office Home (720)944-1738 Mobile { (303)320-8688 (720)635-6052 EMERGENCY EQUIPMENT AND SERVICESI: Flint Engineering (303)857-2791 Packhoes, Hazwoper trained personnel Barron Oil I (303)857-2698 Backhoes, Hazwoper trained personnel LT Environmental (303)433-9788 Hazwoper trained personnel Leed Fabrication Service (303)659-6801 Vac Trucks, Hazwopper trained personnel, backhoes Federal Agencies: National Response Center F 800-424-8802 ChemTrec I 1-800-424-9300 FBI (303)629-7171 EPA (800)227-8917 Colorado Agencies: Colorado State Patrol. (Hazmat) (303)239-4546 1sill Clean Up Equipment DUKE Greeley Plant Page A-2 8/9/2001 Emergency Response Plan Spill Clean Up Equipment Oiling Safety (303)399-1319 _ab Safety (800)356-0783 Pig Company (800)468-4647 • 1 I I DUKE Greeley Plant Emergency Response Plan • Page A-1 8/9/2001 WITWER, OLDENBURG, BARRY &JOHNSON, LLP ATTORNEYS AT LAW r 822-7TH STREET.SURE 760 STOW L.WITWER.JR. GREELEY, CO 80631 JEFFREY T.BEDINGFIELD R.SAM OLDENBURG OF COUNSEL JOHN J. BARRY JACQUELINE JOHNSON TELEPHONE:(970)352-3161 PATRICK N.GROOM FACSIMILE(970)352-9165 TIMOTHY V.CLANCY SENDERS E-MAIL ADDRESS: KEYNEN JAE WALL.JR. TClancy@WOBJLAW.com October 20, 2005 Kim Ogle Weld County Department of Planning Services 918 10th Street Greeley, CO 80631 Re: Lucerne Plant Dear Kim: We represent Duke Energy Field Services,LP ("DEFS") with respect to its operations at the Lucerne processing facility in Weld County. The Board of Commissioners recently approved an amended USR permit for the Lucerne facility. The final Mylar is in the County's possession but has not yet been executed and recorded. The Lucerne facility provides a critical link between natural gas producers at the wellhead and end use consumers at the burner tip. The composition of raw natural gas produced in the Weld County area is such that it must be processed at a plant in order to meet the gas quality specifications of interstate pipelines and local distribution companies. As you may know,Natural Gas Associates,a predecessor of DEFS,purchased the existing facility in 1986. The facility had been originally constructed pursuant to a USR issued at about that time and most recently amended in 2004. Due to the recent increases in drilling activity, and projected additional increases from the wells of DEFS' producer customers, even with the recently approved improvements, it will be impossible for the Lucerne facility to adequately serve the mineral owners and well operators. DEFS estimates that the plant must be modernized once again by May 2006 in order to facilitate additional gas production growth without any disruption of service. It is therefore critical that DEFS commence improvements as soon as possible. As we discussed in our meeting two weeks ago, you believe such expansion will constitute a substantial change to the amended USR and therefore DEFS will need to take the facility through the amended USR process once again. The purpose of this letter is to request an early release of building permits for the expansion. It is critical that work commence immediately to be operational by May deadline, otherwise DEFS will not be able to adequately serve its customers and will either lose substantial business or be forced to simultaneously modernize the existing plant and install the new plant at the cost of several hundred thousand dollars. WITWER, OLDENBURG, BARRY &JOHNSON, LLP Kim Ogle Weld County October 19, 2005 Page 2 Details concerning the proposed expansion are set forth below in this letter and are also depicted on the enclosed plot plan. Please note, importantly, that that even after the expansion, the Lucerne facility will meet all other development standards currently applicable to the site. In addition,DEFS has discussed this project in great detail with the owners of the land adjacent to the proposed expansion area,Paul and Mike Hungenberg, and they do not object to the plans. A letter is enclosed. Finally, I note that DEFS has consistently cooperated with staff and other in connections with its USR applications, and this will continue. The modernization will also provide DEFS the opportunity to simultaneously once again enhance the safety of the facility. The request to increase the footprint is driven in part by safety considerations. To allow optimum equipment spacing, the facility's footprint will increase in size by 200' on the west side and 300' on the south side. Compression capacity to move gas through the site will nominally increase from the current maximum capacity of 28 MMcfd to approximately 30 MMcfd. Through the use of a different gas processing skid from another location, the gas processing capacity at the site will increase from the current maximum capacity of 17 MMcfd to approximately 30 MMcfd in order to match the capacity of the inlet compression. In sum, while the proposed changes will slightly increase the capacity of the facility to move gas, there will be no change to the scope of operations of the facility. The areas which require work are highlighted on the enclosed schematic drawing. The changes, which are summarized below, will effectively make the facility safer and ensure its continued operation for many years to come: 1. Removal of Existing Equipment. The process skids, heater, coolers, vessels, and other existing miscellaneous processing equipment will removed from the site to make plot space available to locate the new or reworked compressors per DEFS spacing guidelines. 2. Engines and Compressors. Existing engines and compressors (C-105,C-106,C-107,C-108, C-109, and C-110) will be replaced with new or reworked engines and compressors that are appropriately sized and located per DEFS spacing guidelines. One new engine and compressor will also be installed. Please note that despite these changes, the site will still meet all development standards, including those relating to sound. 3. Installation of Cryogenic Process. This process consists of a distillation column, heat exchangers, pumps, vessels, coolers, a heater and three skids containing processing equipment. This process is more efficient and is capable of processing more gas than the existing refrigeration process. WITWER, OLDENBURG, BARRY &JOHNSON, LLP Kim Ogle Weld County October 19, 2005 Page 3 4. Installation of Liquids Treating Process. The liquids treating process consists of a distillation column, pumps, vessels, a heater, and one skid containing treating equipment. This process removes H2S from the liquid. H2S is a compound that concentrates in the liquids and can create product quality issues. As a field ages,more H2S is sometimes found. Given the age of the field, DEFS believes it is important to install this equipment for safety and quality control purposes. 5. Installation of three storage tanks and Truck Rack Expansion. The new process,being more efficient than the existing process, can extract more liquids from the gas. As a result, three additional storage tanks and an expanded truck rack are required to handle the increased liquids. There will be a total of approximately 15 truck trips per day. 6. Replacement of original underground pipes with modern above ground pipes and pipe rack. These new pipes will significantly enhance the safety of the facility. They are constructed according to the strictest new standards, and, given their above ground locations, their integrity may be more easily monitored. As you will note from the schematic drawing, DEFS would remove all compression and process equipment from the process area of the existing site. New or reworked compression, located at slightly different locations within the current process area, will replace old process related compression and will serve the same function as previously existing equipment. One additional compressor will be added to the site. The new process equipment will be located to the west in "Proposed Expansion Area 1"and will serve essentially the same function as the previously existing equipment. Since the new process equipment is of a slightly different process design, some additional equipment is necessary but the primary function of processing natural gas remains unchanged. DEFS is making this substantial investment to modernize its facility and to keep it operational for many years. Importantly, these proposed changes will not materially increase the size or off-site impact of the facility. In short, DEFS's new facility,except for the footprint,will comply with the design and operational standards under the current USR (as noted above, truck trips will total approximately 15 per day). While this investment will of course benefit DEFS, it will also benefit the residents of Weld County. Mineral owners and gas producers will be assured of a plant with adequate capacity to process natural gas, and all Weld County residents will retain an important tax base. DEFS therefore respectfully requests that you allow an early release of building permits for this site. DEFS acknowledges that it may need to alter or modify its plans in the event the Board of Commissioners determines any changes are necessary. However, it is critical that the permits be released as soon as possible to allow DEFS to timely complete the project. WITWER, OLDENBURG, BARRY &JOHNSON, LLP Kim Ogle Weld County October 19, 2005 Page 4 Over the past five years, I believe DEFS has consistently fulfilled each commitment it has made to the County. Thank you again for your careful consideration, and I look forward to hearing from you. Yours very truly, WITWER, OLDENBURG, BARRY & JOHNSON, LLP Timothy V. Clancy /7/ TVC:zah 10/20/2005 09:38 H0.505 P02 Michael B. Hungenberg Paul D. Hungenberg 32500 WCR 41 Greeley,Colorado 80631 October 10, 2005 To Whom it May Concern: We own the property on which Duke Energy Field Services proposes to expand its Lucerne Plant. We have met with Lew H{agenlock to discuss this matter, and we have reviewed the plot plan. We have no objection to the plans of Duke Energy Field Services as reflected on the attached plot plan. Sincerely: Wes . Z T T 7 ��"`r � T - - i ._i . .i_ i. . .7 . r�•��' t . .i i ■I tt- .0s,3 as.LD.00a4. 2 p ■ I 4�:11 o� N�1 qa � � II ' �il ft .: a. au ZIT =MI zsit �..�.v.. .:r NW a di:: ;I .. II r■ M ■ II � rU AM r . IIriiii iir Ill* ■ a $ 1 ft M ., VC 14‘34101611 AR 3.ft,SO dON Mt 3�C.ZO.OON LA... O �� - t• O ■ y0 / • moon 7 O Q ■ a ri • I s: 1--... ri iG o o s ri okir) I • :ii:' .: k by ! ® . 1\---isijr:111,01—) ID Ill ) k • a Aa 31Sm.= V • {Vih NO. UtiUJ- ti-4 ,...4..-bI4 • 1^f I I f h 1 f F I I 1 ► 1 I I 4 f I F f f 28-�o zo 5 .?30'• �'` ,C/c9d:28:81Y,•,/3.2 9.35, Qom' 30 .2.4'8 Acres � f Z V \\ • Go?' 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