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HomeMy WebLinkAbout20013263 HEARING CERTIFICATION DOCKET NO. 2001-68a RE: USE BY SPECIAL REVIEW PERMIT#1346,CONDITION OF APPROVAL#3,REGARDING THE ISSUE OF OIL AND GAS ACTIVITIES ON THE SITE -WESTERN MOBILE, INC. A public hearing was conducted on November 14, 2001, at 10:00 a.m., with the following present: Commissioner M. J. Geile, Chair Commissioner Glenn Vaad, Pro-Tem Commissioner William Jerke Commissioner David Long Commissioner Robert Masden Also present: Acting Clerk to the Board, Esther Gesick Assistant County Attorney, Lee Morrison Planning Department representative, Robert Anderson Public Works representative, Don Carroll The following business was transacted: I hereby certify that pursuant to a notice dated September 21, 2001, and duly published September 26, 2001, in the Tri-Town Farmer and Miner, a public hearing was conducted on October 10, 2001,to consider the request of Western Mobile, Inc.,for a Site Specific Development Plan and Use by Special Review Permit#1346 for an Open Pit Sand and Gravel Mining Operation, including the conveyance of excavated sand and gravel, importation of sand and gravel materials, processing and sale in the A (Agricultural) Zone District. At said hearing the Board deemed it advisable to approve the application, with the addition of Condition of Approval #3 requiring the applicant to submit to the Weld County Department of Planning Services, a copy of an agreement with the property mineral owners stipulating the oil and gas activities have adequately been incorporated into the design of the site. However, in the absence of such an agreement a hearing was scheduled for November 14, 2001, to resolve the issue. Lee Morrison, Assistant County Attorney, made this a matter of record, and stated in the absence of an agreement, the applicant must show that reasonable accommodation has been made. He stated the property is owned by Virginia Shaw and leased by Western Mobile, a subsidiary of LaFarge Corporation. Duane Bollig represented the applicant and stated there is an agreement in principal and all parties involved are committed to finalizing the agreement once a few minor issues are resolved. Mr. Bollig submitted a Draft of the Final Agreement, marked Exhibit M, and stated they staked the primary drill boxes, held meetings with the property owners and Kerr-McGee regarding alternate drill locations, water issues, and an easement for a pipeline. He stated they have made, and are continuing to make, an adequate attempt to mitigate the oil and gas concerns, and he requested the Board allow them to proceed with the understanding that an agreement will be finalized. In response to Commissioner Vaad, Mr. Bollig clarified the surface and mineral ownership,as well as the mineral leasing status. Responding to Chair Geile, Mr. Bollig stated the Final Agreement is almost complete. 2001-3263 ��� �L A�; L PL1556 HEARING CERTIFICATION -WESTERN MOBILE, INC. (OIL AND GAS AGREEMENT PURSUANT TO USR#1346) PAGE 2 Mike Shaw, property owner, stated they met with Kerr-McGee and LaFarge on several occasions during the past month and there is a good working relationship with both. Mr. Shaw expressed frustration with trying to locate a well location that works for all parties without requiring directional drilling. He stated the other issue of concern deals with additional requests made by Kerr-McGee Rocky Mountain Corporation,which also owns a portion of the mineral rights. Mr. Shaw stated they have worked to address all of the issues and more are being proposed at this late stage. He requested the Board allow them to proceed as proposed. Chris Greneaux, Kerr-McGee Rocky Mountain Corporation,concurred with the previous comments as to status of the surface use agreement. In response to Commissioner Masden, Mr. Greneaux stated they are exploring the possibility of drilling outside the legal drilling window, and the property owner has agreed to a waiver. He further stated they are trying to finalize a map to show the pipelines, accesses, drill sites, etc. Mr. Greneaux further stated the company would prefer not to do directional drilling due to the extra cost, so they are still working on that issue. Molly Sommerville, attorney, represented RME Petroleum Company and RME Land Corporation, which own a portion of the mineral rights. Ms. Sommerville stated the problem site is located in the northeast quarter of the section, and although there has been significant progress, there are still issues that need resolved. She requested the Board require an agreement before commencing operations. CommissionerJerke expressed concern with that request because it grants veto power to the mineral owners. Ms. Sommerville stated if approved without an agreement, the rights of the mineral owners may be negatively impacted. Responding to Commissioner Vaad, Ms. Sommerville stated Dan Casper spoke on her behalf at the previous hearing on October 10, 2001. She also gave a brief summary of the corporation structure. There being no further comments, Chair Geile closed public testimony. Responding to Commissioner Vaad, Mr. Morrison stated this particular proposal is not one where there will be houses or development that will impact or preclude drilling. He commented that directional drilling may be more expensive, but the mineral rights will not be precluded. Chair Geile stated there has been a lot of discussion as to the near completion of the agreement, and he feels all parties are motivated to complete it within a timely manner. In response to Commissioner Jerke, Mr. Morrison stated a proper motion would be to remove Condition of Approval#3 if the Board feels there is adequate evidence that a reasonable accommodation has been made. Commissioner Jerke moved to delete Condition of Approval #3, with all other conditions as approved on October 10, 2001, to remain in effect. The motion was seconded by Commissioner Masden, and upon a call for the vote, the motion carried unanimously. There being no further discussion, the hearing was completed at 10:30 a.m. 2001-3263 PL1556 HEARING CERTIFICATION - WESTERN MOBILE, INC. (OIL AND GAS AGREEMENT PURSUANT TO USR#1346) PAGE 3 This Certification was approved on the 19th day of November 2001. APPROVED: BOARD OF C UNTY COMMISSIONERS WELD COU , COLORADO ATTEST: Mail . J. eile, C air Weld County Clerk to the abr1 t .w� =1O.7 1/49 �, /% iq enn aad, - m BY: Deputy Clerk to the Boar Willi Jerke TAPE #2001-49 v�II avid E. Long DOCKET#2001-68a .N,n4 Robert. M sden 2001-3263 PL1556 EXHIBIT INVENTORY CONTROL SHEET Case USR#1346 -WESTERN MOBILE, INC. Exhibit Submitted By Exhibit Description A. Planning Staff Inventory of Item Submitted B. Planning Commission Resolution of Recommendation C. Planning Commission Summary of Hearing (Minutes 08/07/2001) D. Clerk to the Board Notice of Hearing E. Magnum Constructors Letter to Planning (08/09/2001) F. LaFarge Letter to Public Works re: Repair and Maintenance of WCR 3.25 (08/15/2001) G. Greg Balmes Letter of Concern (08/07/2001) H. Davis, Graham, and Stubbs, LLC Letter from Attorney for HS Resources re: Notification (08/06/2001) Applicant Response to Condition of Approval #2 (09/20/2001) J. Duane Bollig Proof of Ownership of Sand and Gravel Resources (10/09/2001) K. Planning Staff Photos of signs posted at site L. Applicant Commitment and Agreement M. Dwane Bolliq Draft Surface Use Agreement (11/14/2001) N. O. P. Q. R. S. T. U. 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