HomeMy WebLinkAbout20021436.tiff HEARING CERTIFICATION
DOCKET NO. 2002-39
RE: CONSIDER ACCEPTING STIPULATION IN CASE 01-CV-713, ENVIRO-CYCLE, LLC,
PLAINTIFF, V. BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY,
COLORADO,DEFENDANT,WHICH STIPULATION PROVIDES FOR THE DISMISSAL OF
THE LAWSUIT CONTINGENT UPON THE CLOSING OF A TRANSACTION
TRANSFERRING A PORTION OF THE LAND,AND THE EQUIPMENT AND OPERATION
DESCRIBED AS AN OIL AND GAS SERVICE FACILITY (BRINE WATER DISPOSAL)
UNDER USE BY SPECIAL REVIEW PERMIT #1198 PURSUANT TO AN ASSET
PURCHASE AGREEMENT BETWEEN THE PLAINTIFF AND CONQUEST OIL COMPANY
- ENVIRO-CYCLE, LLC AND CONQUEST OIL COMPANY
A public hearing was conducted on June 3, 2002, at 10:00 a.m., with the following present:
Commissioner Glenn Vaad, Chair
Commissioner David D. Long, Pro-Tem
Commissioner M. J. Geile
Commissioner William H. Jerke
Commissioner Robert D. Masden
Also present:
Acting Clerk to the Board, Esther Gesick
Assistant County Attorney, Lee Morrison
Planning Department representative, Monica Mika
Health Department representative, Trevor Jiricek
Public Works representative, Don Carroll
The following business was transacted:
I hereby certify that pursuant to a notice dated May 17, 2002, and duly published May 22, 2002,
in the Tri-Town Farmer and Miner and the Greeley Tribune, a public hearing was conducted to
consider Accepting a Stipulation in Case 01-CV-713, Enviro-Cycle, LLC, Plaintiff, v. Board of
County Commissioners of Weld County, Colorado, Defendant, which Stipulation Provides for the
Dismissal of the Lawsuit Contingent upon the Closing of a Transaction Transferring a Portion of
the land, and the Equipment and Operation Described as an Oil and Gas Service Facility (brine
water disposal)under Use by Special Review Permit(USR)#1198 Pursuant to an Asset Purchase
Agreement Between the Plaintiff and Conquest Oil Company. Lee Morrison, Assistant County
Attorney, made this a matter of record. He stated USR#1198 was revoked by action of the Board
on June 25, 2001, and Enviro-Cycle, LLC, later filed a lawsuit seeking to overturn the motion. He
stated the lawsuit has been stayed pending the outcome of today's hearing. Mr. Morrison stated
there is an Asset Purchase Agreement with Conquest Oil Company,and approval of the Stipulation
to be filed with the Court will result in a dismissal with prejudice. He stated the operation will
transfer to Conquest Oil Company as Amended Use by Special Review Permit #1198, with
proposed changes to the hours of operation and the permit area. He clarified that although the
permit boundary is proposed to be amended, the area of operation will not be altered, and
Conquest will also be required to ratify a Road Maintenance Improvements Agreement and record
an amended plat which documents all the changes.
2002-1436
CC' ; Z /) 7<��i 9) PL1259
HEARING CERTIFICATION - ENVIRO-CYCLE, LLC AND CONQUEST OIL COMPANY
(USR #1198)
PAGE 2
In response to Commissioner Geile, Mr. Morrison stated the Stipulation provides for the transfer
of the brine water disposal operation, and the Recorded Exemption will divide off a portion of the
property which is not relevant to the operation. Monica Mika, Director of Planning Services,
referred to a map showing the boundaries of Recorded Exemption Lots A and B in green and
yellow, respectively, and the Use by Special Review boundary in burgundy. She stated the new
Use by Special Review Permit boundary will become consistent with the boundary for Lot A of
Recorded Exemption #3308; however, the operation boundary will not change, which will create
an additional buffer associated with the operation, and staff has no conflicts with this proposal or
the Recorded Exemption. Ms. Mika stated the Recorded Exemption materials are in compliance
with Section 24-8-40.B.1 through 24-8-40.8.6. She stated this case is unique because this
property was part of another Recorded Exemption within the past ten years; however, due to the
current circumstances with pending court litigation, staff is agreeable to waiving the restrictions.
She stated no additional building sites will be created; however, Lot B is still eligible for a residence.
She further stated there are no residences on Lot A, which includes the brine water disposal
operation. In response to Chair Vaad, Mr. Morrison stated he has discussed the form of the
Stipulation with the current operator's attorney; however, the document needs to be signed.
Dale Butcher represented Conquest Oil Company and stated after discussing the new proposed
hours of operation, the applicant is willing to reduce the request to 9:00 p.m. to address the
concerns of the surrounding property owners. Responding to Commissioner Geile, Mr. Butcher
stated although the permit area will be expanded through this proposal, they will continue to
operate the facility that is enclosed within the fence line. He stated the area outside the current
permit boundary is not proposed for any additional use. Rather, they have discussed transferring
the area west of the current permit boundary line to the McDonalds who own land adjacent to this
site on the west.
In response to Commissioner Masden, Mr. Butcher stated they intend to improve the appearance
of the site,and there will likely be some changes to the operations to improve the existing situation.
He stated they anticipate fewer complaints and a more attractive facility. Responding to
Commissioner Geile, Mr. Butcher stated the primary contingency of the Asset Purchase Agreement
is to receive approval of the Stipulation and Amended Use by Special Review Permit#1198. He
stated there are no financial contingencies; however,there are Due Diligence contingencies which
they are currently working on. Mr. Butcher stated they intend to close on the property 30 days after
approval of this amended permit and Recorded Exemption. He stated if these items are approved
today, they are in agreement with the terms of the Purchase Agreement, and the only thing that
could prevent them from closing on the property are the provisions under Due Diligence. In
response to Mr. Morrison, Mr. Butcher confirmed the applicant would like to assign the area west
of the existing permit boundary to Mr. McDonald. Mr. Morrison stated to ensure that the proposal
is not hindered in the future, the Resolution will need to clarify that the western portion is not to be
included in the amended Use by Special Review Permit boundary. Chair Vaad referred to a
memorandum submitted by Cindi Etcheverry,marked Exhibit E,indicating the Department of Public
Health and Environment has no objections to this proposal. Don Carroll, Department of Public
Works, stated he has no objections with the assurance that all of the transportation items will be
transferred from the current operator to Conquest. Commissioner Jerke commented this facility
is located near the intersection of Weld County Roads 39 and 40, which is on the list for funding
and improvements in the very near future to create better sight distances.
2002-1436
PL1259
HEARING CERTIFICATION - ENVIRO-CYCLE, LLC AND CONQUEST OIL COMPANY
(USR #1198)
PAGE 3
Brian McDonald, surrounding property owner, stated the potential operator has been very
cooperative and he is agreeable to the 9:00 p.m. closing time. There being no further comments,
Chair Vaad closed public testimony.
Mr. Morrison stated if the Board agrees to extend the hours of operation, the Resolution will need
to be modified to reflect that change, and exclude the area west of the current Use by Special
Review Permit boundary from the amended Use by Special Review Permit Boundary as shown on
the file map. In response to Commissioner Geile, Mr. Morrison stated Conquest IS not responsible
for operations at the site until the Asset Purchase Agreement closes. He further stated if this
agreement does not close,the property would remain in Enviro-Cycle's name with a revoked permit
and result in court litigation,and Conquest Oil Company would be relieved from any responsibilities
of the agreement. In response to Commissioner Jerke, Mr. Butcher indicated the property transfer
to Mr. McDonald would also include the area northwest of the permit boundary line. Monica Mika,
Director of Planning Services, stated the McDonald property was created under Subdivision
Exemption #72, which will need to be modified to reflect the additional area to be acquired.
Commissioner Geile moved to accept the Stipulation in Case 01-CV-713, Enviro-Cycle, LLC,
Plaintiff, v. Board of County Commissioners of Weld County, Colorado, Defendant, which
Stipulation Provides for the Dismissal of the Lawsuit Contingent upon the Closing of a Transaction
Transferring a Portion of the land, and the Equipment and Operation Described as an Oil and Gas
Service Facility (brine water disposal) under Use by Special Review Permit#1198 Pursuant to an
Asset Purchase Agreement Between the Plaintiff and Conquest Oil Company, based on the
recommendations of the Planning staff and County Attorney's Office, with the Conditions of
Approval as entered into the record. His motion also included extending the hours of operation
to 7:00 a.m. to 9:00 p.m. and defining the boundary of Amended Use by Special Review Permit
#1198 as all that portion of Recorded Exemption Lot A, east of the west line of the original Use by
Special Review Permit, extended north to Weld County Road 40. The motion was seconded by
Commissioner Jerke, and it carried unanimously. There being no further discussion, the hearing
was completed at 10:35 a.m.
2002-1436
PL1259
HEARING CERTIFICATION - ENVIRO-CYCLE, LLC AND CONQUEST OIL COMPANY
(USR #1198)
PAGE 4
This Certification was approved on the 5th day of June 2002.
APPROVED:
BOARD OF COUNTY COMMISSIONERS
�� WELD COUNTY, COLORADO
ATTEST: facet ��'v"
GIad, Ch
Weld County Clerk to the ar w
CO �p AP F David E. L g, Pro-Tern
BY: 6 6
Deputy Clerk to the Bdartl a n a1e "
M. J. eile
TAPE #2002-18 / t
li H. erke
DOCKET#2002-39
Robert . Masden
2002-1436
PL1259
EXHIBIT INVENTORY CONTROL SHEET
Case USR #1198 - ENVIRO-CYCLE, LLC/CONQUEST OIL COMPANY
Exhibit Submitted By Exhibit Description
A. Clerk to the Board Notice of Hearing
B. Clerk to the Board Memorandum requesting Monday Hearing
date (05/15/2002)
C. Surrounding Property Owner Copy of Notice with comments of no
concern (05/28/2002)
D. County Attorney Asset Purchase Agreement
E. Health Staff Memorandum re: No objection to Transfer
of Permit (06/03/2002)
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