HomeMy WebLinkAbout20011241.tiff HEARING CERTIFICATION
DOCKET NO. 2001-22
RE: HEARING TO SHOW WHETHER GOOD CAUSE EXISTS FOR REVOCATION OF SITE
SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT#1198 FOR
AN OIL AND GAS SUPPORT AND SERVICE FACILITY (BRINE WATER DISPOSAL) IN
THE A(AGRICULTURAL) ZONE DISTRICT - ENVIRO-CYCLE, LLC/MIKE CERVI
A public hearing was conducted on June 25, 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, Julie Chester
Health Department representative, Cindi Etcheverry
The following business was transacted:
I hereby certify that pursuant to a notice dated April 13, 2001, and duly published April 18, 2001,
in the Tri-Town Farmer and Miner, a public hearing was conducted on April 30, 2001,to determine
whether good cause exists for revocation of Site Specific Development Plan and Use by Special
Review Permit #1198 for an Oil and Gas Support and Service Facility (brine water disposal) in
the A(Agricultural)Zone District. At said hearing on April 30, 2001,the Board deemed it advisable
to continue the matter to Wednesday, July 25, 2001, at 10:00 a.m., to allow the facility operator
additional time to comply with all outstanding issues. At the request of the Board, a meeting was
held on June 11, 2001, to consider setting an earlier hearing date for the Show Cause Hearing, at
which time they continued the matter to June 18, 2001, due to scheduling conflicts of the property
owner. On June 18, 2001, the Board deemed it advisable to set the Show Cause Hearing date for
June 25, 2001. Lee Morrison, Assistant County Attorney, made this a matter of record. Julie
Chester, Department of Planning Services, gave a brief description of the location of the site, and
stated the operator is still out of compliance with the Development Standards regarding the hours
of operation. Cindi Etcheverry, Department of Public Health and Environment, stated she received
a revised Waste Management Plan on June 22, 2001,so she has not had adequate time to review
it. She stated the underdrain has fluids in it and has not been property sampled, and she has not
received an analytical for the underdrain samples. Ms. Etcheverry stated she received a complaint
on May 8,2001,and later inspected the site on May 11, 2001, at which time she saw sludge on the
pad, and added cleaning of the solids separation tank should not result in spillage. She further
stated the Manager indicated this was the first time they had cleaned the tank and a spill occurred
while they were trying to figure out the process. Ms. Etcheverry stated other complaints have been
received regarding strong petroleum odors,the origin of which she has not been able to determine,
as well as noise, vehicles after hours, and cleaning of frac tanks on the weekend. In response to
Commissioner Vaad, Ms. Etcheverry stated there was a significant amount of sludge on the pad
and there was not a manager on site.Responding to Commissioner Masden, Ms. Etcheverry stated
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the spillage contaminated a large portion of the receiving pad,the operator contracted with CSI and
Todd Amen's crew to remove the sludge, and the site is now clean. She explained the operator
has submitted paperwork regarding the incident; however, she has not received the proper
analytical reports which is a violation of the permit. In response to Commissioner Long, Ms.
Etcheverry gave an estimate of the amount of sludge that was on the receiving pad.
Melvin Dinner,attorney,represented the site operator and stated the Use by Special Review Permit
was granted in 1999, and he indicated the site is in compliance at this time. Mr. Dinner stated the
site is located in the Agricultural Zone District,therefore,the Right to Farm Covenant should protect
the operator from the various complaints that have been received. Commissioner Jerke stated this
use is not agricultural in nature regardless of the Zone District. Mr. Dinner gave a brief description
of Rande Bernal's qualifications, and her management duties at the facility, and submitted a
summary of training given to Enviro-Cycle employees, marked Exhibit R. He gave a brief
description of Mike Cervi's background and family history throughout the region, and submitted a
Revised Waste Management Plan, marked Exhibit S. He stated the underdrain was sampled in
March 2001, and is to be sampled every six months.
Rande Bernal, site manager, stated the June 1, 2001, water tests have been completed and she
submitted a copy for the record, marked Exhibit T. She explained the test results were compiled
by Weld County Laboratories and indicated the water meets drinking standards. Mr. Dinner stated
the County staff inspection indicates the spillage was contained to the receiving pad and later
cleaned. He further stated the complaints regarding odors have not been substantiated, and he
submitted a copy of the Site Specific Development Standards, marked Exhibit U, and stated the
site has not exceeded the 70 decibel limit as determined by Development Standard#9. Mr. Dinner
stated the Colorado Oil and Gas Conservation Commission did conduct tests at the site on June 6
and 11, 2001, and he submitted a copy of the test reports, marked Exhibit V. He stated the reports
indicate good results and an additional test was conducted at the tank battery at the request of the
operator which measured no more than 47-50 decibels.
In response to Chair Geile, James Bernal stated the test was started at 11:00 a.m. on June 6,
2001, it lasted for approximately one and one-half hours, and readings were taken from two
different locations. He stated the facility is willing to extend the fence to help block the noise,
although the new system is very quiet compared to the old system. In response to Chair Geile, Mr.
Bernal stated the tests were conducted while the new system was operating. Mr. Dinner submitted
a Field Inspection Report, marked Exhibit W,and stated Mr. Bernal was present during the June 6,
2001, inspection, and Rande Bernal requested use of the equipment to take additional readings
at a later time. In response to Chair Geile, Mr. Bernal stated the second test was started at
2:30 p.m.; however, the results were slightly distorted by the wind. Mr. Dinner reiterated the site
has never exceeded the decibel standards, there has been no frac tank cleaning since the issue
was discussed with the Weld County Department of Public Health and Environment, and all frac
cleaning facilities have been removed. Ms. Bernal stated the frac tanks were removed before she
started working at the facility, and added there was a frac tank on the site for approximately 12
hours while CSI,an accredited solid waste handler,removed the sludge spill. Mr. Dinner submitted
a copy of the letter from Ms. Bernal confirming the change of the heater-treater unit, marked
Exhibit X. In response to Chair Geile, Ms. Chester stated staff did receive a copy of that letter and
determined the change in equipment was not a substantial change to the permit. Mr. Dinner
submitted a copy of the Weekly Test Well results, marked Exhibit Y, as well as a Warranty Deed
and Recorded Exemption plat, marked Exhibits Z and AA. He also submitted a vicinity map, a
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Warranty Deed for property owned by Brian MacDonald and Elisa Santagata, a copy of Weld
County's Right to Farm, and correspondence dated June 15, 2001, from Michael T. LeSage, all
marked Exhibits BB, CC, DD, and EE, respectively. Mr. Dinner stated the correspondence from
Mr. LeSage discusses issues regarding jurisdiction of the site by the Colorado Oil and Gas
Conservation Commission versus the jurisdiction of Weld County. In response to Chair Geile, Mr.
Dinner stated he feels the County has jurisdiction over any of the planning and zoning issues;
however,the environmental issues should by addressed by the Colorado Oil and Gas Conservation
Commission.
Responding to Commissioner Masden, Mr. Dinner stated the facility is allowed to accept brine
waste water between the hours of 7:00 a.m. and 7:00 p.m., and added those hours of operation
have not been violated. Ms. Bernal explained the gates are shut at 7:00 p.m.; however, if a truck
enters slightly before closing, they are allowed to enter and the job may not be completed before
the gates are closed; however, no additional trucks are admitted. Responding to Commissioner
Masden, Mr. Dinner reiterated the County has jurisdiction over operation hours, not environmental
issues. Ms. Bernal added the Waste Management Plan calls for cleaning the tanks every six
months; however, if they receive extra business, the tanks will be cleaned more frequently if
necessary. She gave a brief explanation of the cleaning process, and in response to
Commissioner Masden, she reiterated they are not cleaning any frac tanks or trucks. Responding
further to Commissioner Masden, Mr. Dinner stated the test results for this site meet all
requirements,and Ms. Bernal added the two monitoring wells are tested weekly. She further stated
the monitoring wells and underdrain refer to the same thing, and she explained the equipment is
not able to pump out the last remaining inch of fluid in the wells, but any additional fluid is removed.
Responding to Commissioner Masden, Mike Cervi,site operator,stated there were fluids in the first
underdrain approximately one and one-half years ago and they ceased operations until the issue
was resolved and tested. In response to Commissioner Vaad, Mr. Dinner stated Weld County's
Right to Farm applies to the Agricultural Zone District; however, Commissioner Vaad commented
this use is not an agricultural operation. Responding to Chair Geile, Ms. Bernal stated the facility
handbook was written by Jim Daniels in 1999, the staff is tested each week, the tests are kept on
file, and she prepared the revised Waste Management Plan.
Brian MacDonald, surrounding property owner, stated this is not an agricultural process and any
fluid in the monitoring wells should result in a mandatory shut down. He indicated the new heater-
treater unit does not produce as much noise; however, the facility still does not comply with the
specified hours of operation. Responding to Commissioners Masden and Jerke, Mr. MacDonald
stated the heater-treater unit is started and shut back down late at night, which disturbs the
neighbors who are trying to sleep, and there is a strong odor which he described as similar to a
pesticide smell.
Marilee Santagata, surrounding property owner, expressed concern with frac tank cleaning going
on during the weekends when the county is closed, alarms going off during the night, and staff
wearing white protective suits and respirators. Ms. Santagata stated she lives within 100 feet of
the site boundary and she expressed concern with potential health hazards for her family.
Lee Crosby, surrounding property owner, stated he purchased the proposed use for this site was
not disclosed to him when he purchased his property. Mr. Crosby questioned the validity of the
Right to Farm Covenant protecting this use, since it is not an agricultural use, but a special use in
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the Agricultural Zone District. He stated the operator has not made any significant changes to how
they operate the site, and the County staff inspections always indicated violations. In response to
Mr. Crosby, Commissioner Jerke stated he has visited the site several times; however, the other
Commissioners indicated they had not been to the site. Ms. Etcheverry stated she incorporated
Commissioner Jerke's comments into her Memorandum, dated May 16, 2001. Mr. Crosby
reiterated the operator's testimony has not sufficiently indicated any substantial changes that will
bring the site into compliance.
Ms. Bernal stated the old heater-treater unit has been disconnected for several months, and she
took a meter reading from the fence which read 47.6 decibels with the triplex and heater-treater
running. She stated the odors have been inspected by Health Department staff and other agencies
which responded favorably, they do operate on the weekends while the other facility is shut down,
and she responded to a call, at which time her staff stated the alarms had not gone off. In
response to Commissioners Vaad and Jerke, Mr. Bernal stated the new heater-treater is quieter
and Daniel Perera has been working as the assistant manager for approximately eight months.
Ms. Etcheverry stated on several of her inspections, the staff at the facility was not aware of the
attending manager; however, she has now been informed as to who should be in charge.
Responding to Commissioner Jerke, Ms. Bernal stated they are using dust abatement chemicals
on Weld County Road 39, they do wash the receiving pad twice a day, they will use a liner when
cleaning the tank next time, and they use a biocide which kills any bacteria in the sludge. In
response to Commissioner Long, Mr. Bernal gave a brief description of the noise readings she took
at the site which never exceeded the decibel limit indicated in Development Standard #9. Mr.
Dinner stated Enviro-Cycle, LLC, is in compliance with the Conditions of Approval and
Development Standards, and there is no basis for revocation of the permit.
(Switched to Tape #2001-27) Ms. Chester requested copies of the exhibits for the staff file, and
stated there was a lease agreement for use of the property when the Use by Special Review Permit
was granted; however, she would like to receive a copy of the recorded deed. She added the
applicant was granted an early release of building permits; however,they began operation prior to
recording the plat and have had various violations ever since.
Ms. Etcheverry stated the underdrain analysis does not include all of the necessary chemicals,she
has not been notified of the testing times for the volatile compounds so she is not certain the tests
are being conducted properly, and the waste management procedures have resulted in several
spills. She further stated there should be no spillage on the receiving pad, the Management Plan
does not include proper procedures,this is the only facility that has been in noncompliance at every
inspection, and it takes a large portion of staffs' time and resources compared to other facilities.
Don Carroll, Department of Public Works, stated there is a Road Improvements Agreement with
Enviro-Cycle for the upgrade and paving of Weld County Road 40 from the intersection at Weld
County Road 39. He stated the applicant has completed the road upgrade, widening and paving.
In response to Commissioner Jerke, Mr. Morrison stated it is appropriate to submit his findings from
his visit to the facility; however, if he submits new information, the applicant should be given a
chance to respond. Commissioner Jerke stated he received a call from the MacDonalds and he
visited the site on May 9, 2001, at 9:30 p.m. He stated the gate was not closed,and upon entering
the facility he viewed a large truck backed up to the receiving pad with approximately seven
individuals dressed in protective white uniforms. He contacted Ms. Etcheverry and arranged for
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an appointment to inspect the site on Friday, May 11, 2001,where they found residue still there on
the pad. He continued by stating he received another call from the MacDonalds on Sunday, May
13, 2001, and he visited the site at 9:20 p.m.; however,this time the gate was closed. He did hear
loud noises, could smell a strong petroleum odor, and could see a large truck operating in the
facility. He reported his findings to Ms. Etcheverry and although he received other calls, he was
unable to inspect the site on those occasions.
In response to Chair Geile, Mr. Dinner stated he was already aware of situations detailed in
Commissioner Jerke's comments and he feels those issues have been addressed. In response
to Chair Geile, Mr. Morrison read a portion of Weld County's Right to Farm for the record. He
stated it refers to protection of agricultural land and uses, not agricultural zoning,and regarding the
May 15, 2001, letter from Michael LeSage, he stated the applicant has the option of applying for
an amendment and addressing the various items that they feel should only be under the jurisdiction
of the Colorado Oil and Gas Conservation Commission. He explained the County Health
Department acts as the local agency which helps enforce State agency policies. He further stated
the issues discussed during this hearing are not outside of the Board's jurisdiction, the burden of
proof is on staff to show evidence that the terms and conditions have been violated which justifies
revocation of the permit. Mr. Morrison stated the Board has the options of dismissing the matter
based on lack of evidence,ordering further supervision based on the finding of technical violations
not sufficient for revocation,or revoking the permit. He clarified the consideration should be based
on violations which do not protect the health, safety, and welfare of the neighborhood and County.
Responding to Commissioner Vaad, Mr. Morrison stated if the permit is revoked,the operator can
apply for a Substantial Change involving changes to the design, neighborhood characteristics, or
applicable law within the next five years. In response to Commissioner Jerke, Mr. Morrison stated
a change in operators is not considered a Substantial Change or grounds for reapplying.
Commissioner Vaad stated these facilities are an integral part of the Oil and Gas industry which
is very beneficial to the citizens of Weld County. He referred to the last paragraph of the Weld
County's Right to Farm which refers to oil field equipment, although it is not an agricultural
operation. Commissioner Vaad stated the facility has not been in compliance since the permit was
granted, and various complaints have been received by the citizens, which establishes a pattern
of noncompliance.
Commissioner Vaad moved to revoke Site Specific Development Plan and Use by Special Review
Permit #1198 for an Oil and Gas Support and Service Facility (brine water disposal) in the
A(Agricultural)Zone District held by Enviro-Cycle, LLC/Mike Cervi. The motion was seconded by
Commissioner Jerke. Mr. Morrison requested the motion also cite the specific items for the record
which are being violated for purposes of the Resolution. Commissioner Vaad clarified the facility
is out of compliance with Development Standard #4 because there is evidence that a
knowledgeable manager has not been on site at all times, and Development Standard #32 which
states noncompliance with any of the Development Standards is reason for revocation of the
permit. Commissioner Jerke added he supports the motion because he feels the facility has not
complied with Development Standard#3 based on several spills that have occurred, Development
Standard #9 due to the amounts of noise he witnessed at the site, and there was evidence of
noncompliance with Development Standard #17 because it did not appear the pad was washed
daily. Commissioner Masden added he does not feel Development Standard #19 has been
adequately followed for proper testing of the underdrain. Commissioner Long indicated he had no
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additional comments. Chair Geile concurred with the statements made by the other members of
the Board and stated he has concerns with inadequate samples, and poor waste management
procedures. He cited evidence for lack of compliance with Development Standards #4, #7, #14,
#16, and#32 as his reasons for supporting the motion. Upon a call for the vote, the motion carried
unanimously. In response to Mr. Dinner, Mr. Morrison stated the revocation will be effective upon
signature of the Resolution with the decision at which time all operations will need to cease.
This Certification was approved on the 27th day of June 2001.
APPROVED:
BOARD COUNTY COMMISSIONERS
W LD UNTY, COLORADO
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M. . Geile, hair
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TAPE #2001-26 and #2001-27 l,.
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DOCKET#2001-22
Robert D. Masden
2001-1241
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EXHIBIT INVENTORY CONTROL SHEET
Case SHOW CAUSE RE: USR#1198 - ENVIRO-CYCLE, LLC
Exhibit Submitted By Exhibit Description
A. Michael LeSage Letter re: Continuance (01/12/2001)
B. Planning Staff Case Summary, Inspection Report, Site
Photographs, Letter to applicant
(01/10/2001), and Memo re: meeting with
applicant
C. John Mahoney Letter requesting copies of documentation
(01/17/2001)
D. Health Staff Memo re: Noncompliance with Development
Standards (01/29/2001)
E. Planning and Health Staff Summary of Notifications
F. Planning Staff Oversized Plat map for RE #2367
G. Vicky Sprague E-Mail of phone complaint made by Marilee
Santagata (05/15/2001)
H. Planning Staff Memorandum requesting Board
consideration of an earlier hearing date
(05/29/2001)
Planning Staff Memorandum re: Reasons for
reconsideration of hearing date
(05/29/2001)
J. Health Staff Letter re: Complaint and Violations
(05/16/2001)
K. Health Staff Memorandum re: Complaint Findings
L. Planning Staff Background information
M. Planning Staff Letter re: Oil processing changes and test
results (05/07/2001)
N. Planning Staff Inspection Report (06/01/2001)
O. Health Staff Waste Management Plan Review
(06/15/2001)
P. Planning Staff Request from Applicant for Amendment to
Operating hours of USR#1198
(05/30/2001)
Q. Michael LeSage Letter re: Jurisdictional Objection
(06/15/2001)
R. Melvin Dinner Summary of Manager Qualification and
Training (06/20/2001)
S. Melvin Dinner Revised Waste Management Plan
(06/20/2001)
T. Rande Bernal Weld Laboratories Testing Results
(06/22/2001)
U. Melvin Dinner Cope of Development Standards
V. Melvin Dinner Colorado Oil and Gas Conservation
Commission Western Weld Region Field
Inspection Report (06/06/2001)
W. Melvin Dinner Colorado Oil and Gas Conservation
Commission Western Weld Region Field
Inspection Report (06/11/2001)
X. Melvin Dinner Letter from Rande Bernal re: noise at the
facility
Y. Melvin Dinner Weekly Test Well Results
Z. Melvin Dinner Warranty Deed for Enviro-Cycle, LLC
AA. Melvin Dinner Recorded Exemption Plat
BB. Melvin Dinner Vicinity Map
CC. Melvin Dinner Warranty Deed for MacDonald/Santagata
DD. Melvin Dinner Weld County's Right to Farm
EE. Melvin Dinner Letter from Michael T. LeSage re:
Jurisdiction
FF. Planning Staff Vicinity Map Overhead
GG. Planning Staff Plat Map Overhead
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