HomeMy WebLinkAbout20063113.tiff HEARING CERTIFICATION
DOCKET NO. 2006-72
RE: SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIALREVIEW PERMIT#1565
FOR AN OIL AND GAS PRODUCTION FACILITY(THREE(3)OIL AND GAS WELLS)IN
THE R-1 (LOW DENSITY RESIDENTIAL) ZONE DISTRICT - C. B. KEIRNES LAND
COMPANY, LLC, C/O TARH E AND P HOLDINGS, L.P.
A public hearing was conducted on November 8, 2006, at 10:00 a.m., with the following present:
Commissioner M. J. Geile, Chair
Commissioner David E. Long, Pro-Tem
Commissioner William H. Jerke
Commissioner Robert D. Masden
Commissioner Glenn Vaad
Also present:
Acting Clerk to the Board, Jenny Luna
Assistant County Attorney, Cyndy Giauque
Planning Department representative, Chris Gathman
Health Department representative, Char Davis
Public Works representative, Don Carroll
The following business was transacted:
I hereby certify that pursuant to a notice dated October 20, 2006, and duly published October 25,
2006, in the Fort Lupton Press, a public hearing was conducted to consider the request of C. B.
Keirnes Land Company, LLC, c/o TARH E and P Holdings, L.P., for a Site Specific Development
Plan and Use by Special Review Permit#1565 for an Oil and Gas Production Facility(three(3)oil
and gas wells)in the R-1 (Low Density Residential)Zone District. Cyndy Giauque,Assistant County
Attorney, made this a matter of record. Chris Gathman, Department of Planning Services,
presented a brief summary of the proposal, described the location of the site, and entered the
favorable recommendation of the Planning Commission into the record as written. He stated the
site is currently being utilized for crop production. He stated the applicant has indicated that
additional tank batteries may be placed on the site, which is a Use by Right in the A(Agricultural)
Zone District. He further stated Use by Special Review Permit(USR)#599 was approved in 1983,
in which several parcels of land were approved for oil and gas wells. He stated the current lease
is only for the area defined through this application,and one of the Conditions of Approval requires
that the applicant vacate the necessary portion of USR#599. Mr.Gathman stated correspondence
has been received from the Attorney representing the property owner,as well as from the Attorney
representing the applicant, regarding the Surface Use Agreement. In response to Commissioner
Vaad,Mr.Gathman stated the vacation of USR#599 is required through Condition of Approval#1.G.
Responding to Chair Geile, Mr. Gathman stated outstanding issues regarding the Surface Use
Agreement exist between the property owner,C. B. Keirnes Land Company, LLC,and the applicant,
TARH E and P Holdings, L.P. He further stated a subdivision has been approved to the north of the
site,and the landowner entered into an agreementwith the applicant regarding future drill sites,and
the limitations on the drill sites. He stated the issues were discussed at the Planning Commission
hearing, and Ms.Giauque determined at that time that the applicant could proceed. In response to
Commissioner Jerke, Mr. Gathman stated the site is located to the west of Seeley Lake.
2006-3113
/; PL1860
(7o ; it, Au, ! //-1,77_04,
HEARING CERTIFICATION - C. B. KEIRNES LAND COMPANY, LLC, C/O TARN E AND P
HOLDINGS, L.P. (USR #1565)
PAGE 2
Char Davis, Department of Public Health and Environment, stated she made a different
recommendation regarding the production and report of air pollution, which is addressed in
Condition of Approval #1.B.
Don Carroll, Department of Public Works, stated the site may be accessed from two separate
locations. He stated an access exists west of Seeley Lake on Weld County Road 66, also known
as AA Street, and an access exists to the north on State Highway 392.
William G. Crews, CPL, represented the applicant, and stated the northern well will be drilled
straight, and the southern well will be directionally drilled, so that operations above ground will not
interfere with the lake property. He stated he is aware that issues exist between the landowner and
the applicant; however,he cannot address the concerns until after the landowner's representative
has spoken. In response to Chair Geile,Mr.Crews stated he and the applicant have reviewed,and
concur with, the Conditions of Approval and Development Standards, as proposed.
Lance Astrella, attorney representing landowner C. B. Keirnes Land Company, LLC,distributed a
small presentation, marked Exhibit K. He stated the notice provided for the hearing was defective
since the landowner was listed as the applicant, and the landowner is not a part of the application.
He stated the surrounding property owners have assumed that C. B. Keirnes Land Company, LLC,
is protecting the interest of the surface rights. He requested that the notice be corrected, and
republished,and the matter be continued. In response to Chair Geile, Ms.Giauque stated the notice
does mention the landowner, and a difference of opinion exists between the landowner and the
applicant. She stated the notice does not contain a major defect,and the only mineral owner for this
property is the surface property owner. She further stated several of the surrounding property
owners are related to Brad Keirnes, and it is purely speculative to assume that the surrounding
property owners would not attend the hearing due to the belief that Mr. Keirnes will represent their
interests. Ms.Giauque stated the request for an Oil and Gas Production Facility was obvious,and
the County Attorney's Office is not convinced that the need exists to republish the notice.
Mr. Astrella stated the main issue is that the notice is defective. He stated the landowner has a
Surface Use Agreement which has been signed by the applicant and the landowner. He referred
to Exhibit K, and stated the yellow area represents the property, and the blue areas represent the
oil and gas operation areas. He stated the Surface Use Agreement, marked Exhibit G, states the
surface owner has unfettered use of the land highlighted in yellow. He further stated page 3 of the
Surface Use Agreement defines the areas in which the applicant may conduct oil and gas
operations,which states: "There shall be no limitation hereunder on the use and development by
Surface Owners of any portion or the Property which is outside of the Operation Areas, so long as
access roads and pipeline areas provided for herein are maintained." Mr. Astrella stated the
application requests placement of wells that are not contained within the defined oil and gas
operation areas. He stated each of the proposed wells will require a setback of 350 feet,which is
approximately 8.8 acres per well, and the wells should be clustered at the northern section of the
property. He stated the Surface Use Agreement has been breached, and the Board is not
responsible to interpret the Agreement;however,the Board must consider the Agreement as a part
of the application. Mr.Astrella referenced Section 23-2-230 of the Weld County Code,and explained
the Code states that conflicts between mineral owners and surface uses should be minimized,and
2006-3113
PL1860
HEARING CERTIFICATION - C. B. KEIRNES LAND COMPANY, LLC, C/O TARH E AND P
HOLDINGS, L.P. (USR#1565)
PAGE 3
that oil and gas drilling activities should be planned, and take into account, current and future
development. He further stated the extraction of oil and gas resources should conserve the land
and minimize impact on surrounding land. He stated the Agreement states the applicant will only
operate within the blue areas; however, the application states otherwise.
Mr.Astrella stated if the Board denies the application,the applicant will declare that the Surface Use
Agreement is not valid, and will sue C. B. Keirnes Land Company, LLC,within a Court of Law. He
further stated if the Board were to approve the application,the applicant will be allowed to drill the
wells, and each well will consume 8.8 acres in setbacks and easements. He stated C. B. Keirnes
Land Company, LLC,will collect several million dollars,based upon the value of property;however,
the residents of the County will suffer since the area will be adversely affected. He stated the wells
cannot be undrilled,and the additional truck traffic will create additional noise,etcetera. Mr.Astrella
stated oil and gas companies should be expected to abide by the deals they make with surface
owners.
Jeff Carlson,Texas American Resources Company, represented the applicant and stated a Surface
Use Agreement has been signed by both parties. He stated Mr. Astrella provided an isolated
interpretation of the agreement, and the nature of the agreement does not restrict the applicant's
right to moved forward with the application. He stated the applicant is exercising its reasonable
privilege of the oil and gas lease, and has been consistent with the rules and regulations of the
Colorado Oil and Gas Commission. He further stated it is misinformed information that the wells
will consume over 25 acres of land, and the applicant has made efforts to minimize any surface
impacts. He stated the proposal will have a minimal impact to the vacant agricultural land.
Ms. Giauque stated her comments at the Planning Commission hearing indicated the agreement
did not have bearing on the proceedings that day. She determined the Planning Commission could
hear testimony regarding the application,and her determination is the same today. She suggested
a Condition of Approval be placed within the Resolution,stating the parties will work together within
the parameters of the agreement. Ms Giauque stated the Board should not interpret the agreement;
the interpretation should be handled by a Court. In response to Chair Geile, Mr. Carlson thanked
Ms. Giauque for placing her comments into the record.
Tom Rogers,Texas American Resources Company,represented the applicant,and stated he was
involved in the collaboration of the Surface Use Agreement, and at that time, Mr. Keirnes was in a
hurry to gain approval for his proposed development. He stated the applicant worked to facilitate
Mr. Keirnes' requests, and the wells proposed for the southern portion of the property were never
discussed. (Changed to Tape#2006-40.) He stated he believes the applicant was providing a
favor for Mr. Keirnes, by cooperating in a timely manner,and the leases were just purchased within
the last year.
Mr. Astrella stated no evidence exists which supports the applicant's position. He stated the
agreement specifically states that the landowner has the unfettered right to develop the land,without
interference. He stated the applicant was not providing Mr. Keirnes a favor by complying with his
requests; the applicant is required to enter into a Surface Use Agreement. In response to Chair
Geile, Mr. Astrella stated Mr. Keirnes has provided the offer to explore other opportunities.
2006-3113
PL1860
HEARING CERTIFICATION - C. B. KEIRNES LAND COMPANY, LLC, C/O TARH E AND P
HOLDINGS, L.P. (USR #1565)
PAGE 4
Mr. Crews stated he does not understand the 350-foot setback, since the well is located on
agricultural property. In response to Chair Geile, Mr. Crews stated an oil and gas lease has been
completed, and he does not believe the Surface Use Agreement applies, and he requested the
Board move forward and grant approval of the application.
Ms.Giauque requested the Board place a Condition of Approval within the Resolution,stating that
the applicant is required to work with the surface owner,within the parameters of the Surface Use
Agreement. In response to Mr. Gathman, Ms. Giauque stated the Condition of Approval should
acknowledge that an agreement exists, and she recommended that the Board not take a position
regarding the agreement. She proposed Condition of Approval#1.1 be added to read:"The applicant
will work with the surface owner within the parameters of the Surface Use Agreement,to the extent
such agreement is applicable." The Board concurred with Ms. Giauque's recommendation. In
response to Chair Geile, Mr. Carlson stated the condition would be better stated to read that the
Board recognizes the agreement; however, it does not take a position. In response to Mr.Carlson,
Ms. Giauque stated the language she suggested states the same sentiments. Mr.Carlson stated
he believed the language is significantly different. In response to Mr.Gathman, Ms.Giauque stated
the intent of the language provided is to state that the agreement exists, and staff will not need to
address the matter in regard to recording the plat.
Commissioner Jerke stated the notification was misleading, and listing C. B. Keirnes Land
Company, LLC,as an applicant is a significant problem. He stated he believes surrounding property
owners read the notice to believe that Mr. Keirnes was a part of the application for an Oil and Gas
Production Facility. He stated the true applicant is not easily identifiable on the notice,therefore,the
notice was not adequate. He stated he is not in support of approving the application today due to
inadequate notification, and due to the Surface Use Agreement issues which were presented.
Commissioner Masden stated the applicant needs to work within the parameters of the Surface Use
Agreement; however, it is not the Board's jurisdiction to interpret the agreement. He stated he
believed the notice was misleading, and the matter should be continued so that a new notice may
be sent out to surrounding property owners. In response to Chair Geile, Ms. Giauque stated the
Board will need to make a motion to continue the matter, with the instruction to provide
re-notification. Mr.Gathman stated the notice for the Planning Commission listed TARH E and P
Holdings, L.P., as the applicant, therefore, the matter does not need to be sent back for
reconsideration. Upon conferring with the Acting Clerk to the Board, Ms. Giauque suggested
continuing the matter to December 20, 2006, at 10:00 a.m.
Commissioner Jerke moved to provide re-notification,and to continue the request of TARH E and P
Holdings, L.P.,for a Site Specific Development Plan and Use by Special Review Permit#1565 for
an Oil and Gas Production Facility(three(3)oil and gas wells)in the R-1 (Low Density Residential)
Zone District, to December 20, 2006, at 10:00 a.m. The motion was seconded by Commissioner
Masden,and it carried unanimously. There being no further discussion,the hearing was completed
at 11:00 a.m.
2006-3113
PL1860
HEARING CERTIFICATION - C. B. KEIRNES LAND COMPANY, LLC, CIO TARH E AND P
HOLDINGS, L.P. (USR#1565)
PAGE 5
This Certification was approved on the 13th day of November 2006.
APPROVED:
BOARD OF OUNTY COMMISSIONERS
WELD CO TY, COLORADO
ATTEST: y � I— ti's
����_�� M. . eile, Chair
Weld County Clerk to th �"�' 4 ('
� David E. Long, Pro--Tem
BY:
De u Clerl the Board
WI • H. Jerke
TAPE #2006-39 and #2006-40
Robe D. Mas en
DOCKET#2006-72
Glenn Vaa
2006-3113
PL1860
Hello