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HomeMy WebLinkAbout930582.tiff RESOLUTION RE: ACTION OF BOARD AT SHOW CAUSE HEARING CONCERNING SPECIAL REVIEW PERMIT #540 - NORTHERN COLORADO BRINE, C/O MIKE CERVI WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, on May 19, 1993, a Show Cause Hearing was conducted to consider revocation of Special Review Permit #540, issued to Northern Colorado Brine, c/o Mike Cervi, and WHEREAS, at said hearing on May 19, 1993, said matter was continued to June 23, 1993, at 10:00 a.m. , at which time said matter was again continued to July 7, 1993, at 10:30 a.m. , and WHEREAS, Mike Cervi is the owner of the facility located on property described as part of the NE* of Section 26 and part of NW* of Section 25, all in Township 5 North, Range 67 West of the 6th P.M. , Weld County, Colorado, and WHEREAS, at said hearing of July 7, 1993, said matter was continued to August 30 and 31, 1993, at 10:00 a.m. , so that a court reporter can be present for the hearing, and WHEREAS, also at the July 7, 1993, hearing, the Board determined the installation of the new two-stage heater-treater equipment to not be a material deviation; therefore, no amended Permit is required at this time, subject to review and approval by the Weld County Health and Planning staffs. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Show Cause Hearing concerning revocation of Special Review Permit #540, issued to Northern Colorado Brine, c/o Mike Cervi, be, and hereby is, continued to August 30 and 31, 1993, at 10:00 a.m. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 7th day of July, A.D. , 1993. AR/ /4 BOARD OF COUNTY COMMISSIONERS ATTEST: WEA COUNTY, COLORADO `UViw, ✓J /✓ vvbc-i,Ci/7 Weld County Clerk to the Board it / Consttg/annce L. Harber�/t/, Chai�rmannp �BY: ./zR ��L! CC G f7 c�� I�- � d/ b)T H1- - 1 Deputy Clerk to the Bo _ W. H. ebster, ro-Tem(/ APPROVED AS TO FORM: L � - a �J r ,^ G�ol�gejE. Baxte County Atto ey le K. Hall Barbara J. Kirkmeyer 930582 HEARING CERTIFICATION DOCKET NO. 93-22 RE: SHOW CAUSE HEARING TO CONSIDER REVOCATION OF USR #540 - NORTHERN COLORADO BRINE, C/O MIKE CERVI A public hearing was conducted on July 7, 1993, at 10:30 A.M. , with the following present: Commissioner Constance L. Harbert, Chairman Commissioner W. H. Webster, Pro-Tem Commissioner George E. Baxter Commissioner Dale K. Hall Commissioner Barbara J. Kirkmeyer Also present: Acting Clerk to the Board, Shelly Miller Assistant County Attorney, Lee Morrison Planning Department representative, Keith Schuett Health Department representative, John Pickle The following business was transacted: I hereby certify that pursuant to a notice dated April 12, 1993, and duly published May 6, 1993, in the Windsor Beacon, a public hearing was conducted on May 19, 1993, to consider the revocation of USR #540 issued to Northern Colorado Brine, c/o Mike Cervi. At said hearing of May 19, 1993, said matter was continued to June 23, 1993, at which time it was again continued to July 7, 1993, at 10:30 a.m. At the July 7, 1993, hearing, Lee Morrison, Assistant County Attorney, made this a matter of record. Mr. Morrison noted at the last hearing the permit holder's representative, Ken Lind, was asked to prepare and submit in advance exhibits, and staff was asked to present any material to Mr. Lind as timely as possible. Let the record reflect Mr. Lind's exhibits were submitted on June 30, 1993, and entered into the record as Exhibits 13 through 64. Mr. Morrison indicated the Air Quality Control Division draft of the proposed agreement had been revised and updated by representatives. Reference to volume as being a reason for delay if the Board did not approve the 10, 000 barrels per day was deleted. Mr. Morrison further explained the consequences if the County denied permission to install the equipment. Let the record reflect that Chairman Pro-tem Webster is now acting as Chairman. Mr. Lind explained the draft dated July 1, 1993, between the State and Northern Colorado Brine, which proposes the time schedule for the installation of the heater-treater system and limits production to 2, 000 barrels per day. Mr. Lind's letter dated July 6, 1993, to the Department of Planning Services was submitted as Exhibit 65. Mr. Lind said the equipment will be ordered and installed; however, the facility is bound by the 2, 000 barrels per day limited in the Special Review Permit. If the volume increases, Mr. Cervi will apply for an Amended Permit and Certificate of Designation. Mr. Lind explained El Toro Management indicated the equipment cannot be scaled down, and there would be no financial savings if it could be. Operating at 2,000 barrels per day has no effect on the equipment's efficiency. Mr. Lind stated once the equipment is installed and operating capability is proven, then the amended applications to increase the capacity will be submitted. He noted the new equipment will result in the closure of all but one or two evaporation ponds. The remaining ponds will be used either for irrigation or drilling water, with the details to be submitted with the amendment. Let the record reflect Chairman Harbert has now returned. Mr. Lind said the stipulation has been approved by Mr. Cervi, and Gregory Hobbs, Attorney, is working with the Attorney General so that the final draft may be signed by July 9, 1993. He noted the equipment would not be 930582 Ptoo5 9 c c , rh_ RE: HEARING CERTIFICATION - NORTHERN COLORADO BRINE, C/O CERVI PAGE 2 ordered until the stipulation is signed and asked the Board to consider and review the replacement of equipment as a minor change to allow the time schedule to take place. He reminded the Board there are daily penalties if the stipulation is not adhered to. Mr. Lind said the installation of the new equipment is not a wise economic decision to handle only 2, 000 barrels per day because the cost is not decreased, and Mr. Cervi is taking a great financial risk. Mr. Morrison stated for the record copies of the stipulation have been presented to the Board and the audience. In response to a question from Commissioner Kirkmeyer, Mr. Lind indicated Mr. Hobbs is not anticipating problems from the review with the Attorney General; however, he does not know what specifically is being reviewed. He explained the revisions to the emissions permit are to allow volume to be paralleled with the County. He reiterated there will be no amendments to a level above 2,000 barrels per day until the equipment is properly operating. Mr. Lind also explained the stipulation settles all violations with a payment to date and daily penalties until the equipment is installed and operating at a 15: 1 odor standard. John Pickle, Health Department representative, stated he feels the 15: 1 standard is adequate for this facility. He spoke with the State who indicated they are close to settling the stipulation. Patty Deplazes, Eastern Plains Environmental Service, said she is a certified nose and explained the procedure for taking odor readings. There was further discussion about the applicability of the 15:1 standard. Mr. Morrison said the State will make a final ruling on August 20, 1993, concerning the standard if the stipulation is not entered into before then. In response to questions from the Board, Mr. Pickle indicated past violation readings have been between 31:1 and 170: 1. Mr. Morrison explained the inspections are done under contract with State guidelines, and the Special Review Permit requires general compliance with other permits. He reiterated, on behalf of Commissioner Kirkmeyer, the State will not authorize over 2,000 barrels per day without County approval. Volume, emissions, and the odor standard will be resolved at the State's August 20 hearing if the stipulation is not previously approved. Mr. Lind explained the mishap of the 10,000 barrel per month limit in the emissions permit and reiterated that issue is part of the stipulation. In response to questions from Commissioner Hall, Mr. Lind reiterated only if the equipment is properly operating at the 15: 1 standard and an amendment is approved by the County, will the State approve 10,000 barrels per day or 300,000 barrels per month. In reference to the draft, Mr. Morrison reiterated the portion concerning approval of 10, 000 barrels per day by the County had been deleted, and it now only addresses the installation of the equipment. In response to a question from Commissioner Baxter, Mr. Lind indicated a facility in New Mexico is using the treated water for irrigation. He said the potential for drilling use was proposed just last week by the State Engineer and noted the key is the removal of hydrocarbons and bacteria to avoid odor and contamination. In response to questions from Chairman Harbert concerning future violations, Mr. Morrison said the permit holder has the right of appeal to the State for odor violations. Mr. Lind stated the stipulation provides for enforcement through the District Court, which considerably shortens the length of time. Keith Schuett, Planning Department representative, said the County should review the proposed equipment, and if the equipment is found to not be a material deviation, the permit holder needs to be bound by additional requirements to remedy any violations. Mr. Lind said the equipment does not need to be approved by the County because the item concerning 10, 000 barrels per day was removed from the stipulation and tied the County into the State, who is looking for the County to agree to the installation of the new equipment. Mr. Pickle reiterated the stipulation is close to agreement, and the Board could approve the equipment as a minor change to remedy the odor without affecting the stipulation. Mr. Lind noted the compliance schedule would be delayed by not installing the equipment. Mr. Schuett questioned the odor inspection procedures outlined in the stipulation concerning the 1,000-foot limit. After discussion, Mr. Schuett recommended that section 930582 RE: HEARING CERTIFICATION - NORTHERN COLORADO BRINE, C/O CERVI PAGE 3 of the stipulation be reviewed. (Changed to Tape #93-24. ) Mr. Pickle said a 500-foot limit was originally proposed, and the State raised it to 1,000 feet. He noted the Attorney General has not raised the issue; however, he will bring it to the State's attention. Mr. Morrison said if the Board finds it is not a material deviation to install the equipment, the only issue is allowing the stipulation. Mr. Schuett said the stipulation can proceed, but there are unanswered questions. He reiterated the equipment still needs to be reviewed along with State input and feels there is not enough information, at this time, for the Board to decide whether it is a minor change. Mr. Morrison noted delaying installation of the equipment will delay the time frame and start-up. Mr. Schuett reiterated State Health input concerning the operation is needed, and the plan covers only basic information, not all points. In response to a question from Commissioner Hall, Mr. Schuett, Mr. Lind, and Ms. Deplazes explained the process of the old versus the new equipment. To avoid delay, Mr. Lind suggested adjourning until next Wednesday to provide additional information to Mr. Schuett for review. Commissioner Kirkmeyer suggested proceeding with the stipulation whether the Board agrees to the minor change or not. There was discussion as to whether the minor change needs to be determined by the Board or staff. Mr. Morrison said there are already noted violations; therefore, staff has found material deviations. However, the different system makes the matter more complicated. Commissioner Webster moved to recess until 1:30 p.m. , and Commissioner Kirkmeyer seconded the motion which carried unanimously. Let the record reflect a recess was taken at this time. Upon reconvening, Commissioner Hall moved the Board consider the two-stage heater-treater equipment to not be a major change and not require an amendment. The motion was seconded by Commissioner Webster. Commissioner Hall clarified his motion for Mr. Schuett stating changing out the current equipment with the new would not be a major change and not require an amendment. Mr. Schuett asked if there would be no additional review on the new equipment even though there are differences. In response to a question from Commissioner Kirkmeyer, Mr. Schuett said he feels staff review is necessary because there are unanswered questions concerning the parameters of the water going in and out of the facility and the chemicals to be used. After further discussion between staff and the Board, Mr. Lind stated the preliminary design was submitted May 18, 1993, and the final design was completed and submitted to State Health, Attorney General, and Weld County Planning on June 10, 1993, and noted there have been no comments nor questions received from Planning. Mr. Lind indicated, for the record, Exhibit 55B is the final design from El Toro Management Systems, Inc. , and Exhibit 55A is the odor abatement plan. Mr. Schuett said he assumed the final design was for the larger quantities. Mr. Lind reiterated it was the final design that was submitted on June 10, 1993. Mr. Pickle said the State Solid Waste Division has not completed the review of the final design, and he also assumed the final design would be with the increase of volume; therefore, he has not yet reviewed it either. Mr. Schuett indicated the final design is incomplete and not enough for review. He noted that Mr. Lind stated the equipment would not be economically feasible at the lower volume. Commissioner Kirkmeyer noted the letter notifying the new equipment would be installed at the production level of 2,000 barrels per day was received yesterday, which allowed only one day for review. Mr. Lind reiterated there were no questions or comments received from the County, and the Attorney General and State Air Quality have reviewed it. He stated there have been no changes since May, at which time he submitted a letter requesting review and approval. In response to a question from Commissioner Hall, Mr. Lind said the applicant entered into an odor abatement program and provided information to the County and State. Mr. Pickle confirmed an earlier version of an odor plan had been approved. Mr. Morrison answered various questions from the Board concerning responsibilities of administrative 930582 RE: HEARING CERTIFICATION - NORTHERN COLORADO BRINE, C/O CERVI PAGE 4 review and approval. Mr. Schuett suggested the Board determine the concept not be a material deviation, and allow staff additional review of the fine details. Mr. Morrison confirmed such a determination may be a good way to establish a base line to prevent future arguments. Chairman Harbert recommended Commissioner Hall amend his motion to state the concept of the new equipment would not be considered a material deviation, subject to administrative review and approval. Mr. Lind said he would not object to said language being incorporated into the motion and would provide needed information by Monday. Mr. Schuett said any reasonable Conditions of Approval and/or Development Standards could be identified through the administrative review process. Mr. Lind stated that subject could be addressed when the amended application is submitted and suggested continuing to September 1, 1993, to allow for review by Planning and/or Health, at which time an update of the status of the equipment could be done. Mr. Schuett said he still has concerns as to whether the administrative or hearing process is necessary. Mr. Lind suggested if an agreement has not been reached prior to September 1, the hearing procedure should be followed. Commissioner Kirkmeyer confirmed the determination that there is not a material deviation is subject to review and approval by Health and Planning staff. Commissioners Hall and Webster agreed to amend said motion as stated. After a statement by Commissioner Webster concerning the Board's objective, the motion carried unanimously. Upon the decision of the Board to proceed with the violations of the Show Cause Hearing, Mr. Lind noted there was no court reporter present and stated he had submitted a written request for a court reporter because one is necessary to preserve the record. Mr. Morrison explained the Clerk incorrectly assumed a court reporter would be present because of the continuance. Mr. Lind reiterated a court reporter is critical and objected to proceeding with the hearing. Mr. Morrison noted the inconvenience to all parties and potential problem if the case went to court. He then read the provisions of the rules justifying a continuance into the record. Commissioner Webster moved to continue said matter to September 1, 1993, based on staff recommendation. Mr. Lind said he had no objections to that date. Commissioner Kirkmeyer noted that date would also allow time for the Air Quality ruling on August 20. In response to a question from Commissioner Webster, Mr. Morrison said the first motion allowed Mr. Cervi to proceed with installation of the new equipment and reiterated the odor violation will not be finally determined until after August 20. Commissioner Webster restated his motion to continue said matter to September 1, 1993, at 10:00 a.m. Said motion was seconded by Commissioner Baxter. Mr. Morrison suggested allowing public testimony on the issue of the continuance only. James Gardner, Debi Sauer, Steve Sauer, and Doris Fields, all surrounding property owners, spoke in opposition of the continuance. Ms. Sauer also noted there is water in the monitoring wells, which indicates the ponds are leaking. Mr. Pickle said the water was cited after the probable cause hearing. Mr. Morrison clarified that this matter was not properly noticed; therefore, it cannot be used as evidence today. Commissioner Kirkmeyer suggested all interested parties clear their calendars for September 1 and 2. Commissioner Webster amended his motion to include both September 1 and 2, 1993. Chairman Harbert suggested having the hearing on Monday and Tuesday, August 30 and 31, 1993, rather than Wednesday and Thursday. The possibility of having a 5:00 p.m. hearing was also discussed. Mr. Lind said there may be a problem obtaining a court reporter for an evening hearing and feels it would be an inconvenience to all parties involved. During his rebuttal, Mr. Lind stated this is not a ploy, as indicated during public testimony, and they are merely trying to make this work with the State and County. He also noted Mr. Cervi did not take this facility over until 1990. Commissioners Webster and Baxter agreed to amend the motion to continue said matter to August 30 and 31, 1993, at 10:00 a.m. On roll-call vote, the motion carried three to two with Commissioner Kirkmeyer and Chairman Harbert voting nay. 930582 RE: HEARING CERTIFICATION - NORTHERN COLORADO BRINE, C/O CERVI PAGE 5 This Certification was approved on the 12th day of July, 1993. APPROVED: ATTES %��� BOARD OF COUNTY COMMISSIONERS WEIA COUNTY, COLORADO Weld County Clerk to the Board {/ Y By: jG-L42-(9. -: Constance L. Harbert, Chairman Deputy Clerk to the B W. ebster, Pro-Tem TAPE #93-23 and #93-24 S�L eorge 27-Baxter. DOCKET #93-22 Hall PL0059 ,la Barbara J. Kirkme er 930582 ATTENDANCE RECORD HEARINGS ARE AS FOLLOWS ON THIS 7th DAY OF July 1993: DOCKET II 93-44 - Special Review Permit, Edward and Betty Frank DOCKET II 93-22 - Show Cause Hearing, Northern Colorado Brine, c/o Mike Cervi DOCKET II DOCKET # PLEASE write or print your name legibly, your address and the DOCKET II (as listed above) or the name of the applicant of the hearing you are attending. NAME ADDRESS 1 HEARING ATTENDING ).?'L ?7 -icaC"k 'S'f l��'FL?' l-�'�`�AA/ . � ✓` /) 9t er; Lc, r.A L5: � ylv,11'Ji ti ,/ J ''7 Ci"t /% /7 V l.'V �'/C J / / jaiihrt /� -- / V 'L (' I / /O&3J1 Lc;<' 2//://lei ) `�3 / 0151c73 Eck C?— in. Iti v., 4 3 z z e6; / o9 `i3Wc1L . Pi iI.. k i.9 - z it* ao:- HT&R ''1 :3038324465 JUL 01 ' 93 18 : 11 No .021 P .05 PRAFT BRUISED 7-1-93 NORTHERN COLORADO BRIM; V. AIR POLLUTION CONTROL DIVISION STIPULATION AND AGREEMENT The following Stipulation and Agreement ("Agreement") is made with regard to the Notices of violation, compliance orders and civil penalty assessments issued by the Air Pollution Control Division to Northern Colorado Brine on April 21, 1993 by Certified Letter No. P 860 424 449 and Certified Letter No. P 860 424 448, which were appealed by Northern Colorado Brine on May 4, 1993, and February 18, 1993 to the Colorado Air Quality Control Commission for hearing set for August 20, 1993 and all other notices of violation, penalty assessments or compliance orders pending as of the date of execution of this stipulation and agreement by the parties thereto. The Division and Northern Colorado Brine stipulate and agree as follows: 1. The Notices, Orders and Penalty Assessments issued by the Division contained in the above-identified Certified Letters superseded any previous notices and orders issued by the Division and/or the Weld County Health Department with regard to odor violations at the Northern Colorado Brine oil and gas brine water disposal and oil recovery facility in Weld County, Colorado. 2. The Division's Notices, orders and Penalty Assessments were timely appealed to the Air Quality Control Commission (the "Commission") and were stayed for enforcement purposes pending a hearing by the Commission set for August 20, 1993, in accordance with the Colorado JUL 1 ' 93 18: 12 3038324485 PRGE . 005 £ . dbL+ / 1 / 940056 HT&R 70 :3038324465 JUL 01 ' 93 18 : 12 No .021 P .06 Air Quality Control Act and the Colorado Administrative Procedure Act. Among the issues raised in the Northern Colorado Brine hearing request is whether the Weld County Health Department and the Air Pollution Control Division are applying the appropriate odor control standard to the facility. Northern Colorado Brine contends that Regulation No. 2 Section A. (3) (a)+(b) . (Best Practical Control/ 127-1 Odor Standard) applies to the facility, not Section A.2 15: 1 Odor Standard) . 3. Northern Colorado Brine withdraws its appeal to the Commission regarding the order for compliance with the 15:1 standard of Regulation No. 2.A.2. subject to this agreement first being executed by all the parties hereto. The stay of enforcement pending review by the Air Quality Commission shall expire upon the Commission's action in vacating the hearing by signature of the Commission on the last page of this agreement. Pursuant to S 25-7- 114.5(7) (a) (I), the Division agrees that it will not unreasonably withhold approval of the pending application of Northern Colorado Brine for a modified permit, including the request to allow a production level up to 300,000 barrels per month, provided that, at a minimum, a) Northern Colorado Brine demonstrates that approval of any such request would not cause Northern Colorado Brine's odor emissions to exceed the 15:1 standard of regulation No. 2; and b) Northern Colorado Brine supplements its emission permit modification application with information concerning the odor control system described in this agreement. 4. Without admitting that any violations of Colorado law or regulations with regard to its facility have occurred, Northern Colorado Brine accepts as final: a) Nonhen Colon&Urine Stipulation Page JUL 1 ' 93 18: 12 3038324465 PRGE . 006 I / i _ 940056 'L HT&R TD : 3038324465 JUL 01 '93 18 : 12 No .021 P .07 paragraphs 1 and 2 of the "Order" section of the Order for Compliance dated February 1, 1993, and b) paragraphs 1 aid 3 of the "Order" section of the Order for Compliance', dated April 21, 1993, both of which order compliance with the 15:1 standard of Regulation No. 2, Section A.2. Based on this stipulation, the Division will revise emission permit 9OWE161 to reflect a production limitation of 2,OOO barrels per day, the currently- authorized Weld County special review permit production level. a. Northern Colorado Brine will order, construct, install and operate the new water treatment and odor emission control system identified in Appendix A. Northern Colorado Brine will provide all details requested by the Air Pollution Division, concerning the water treatment and odor emission control equipment to be installed at the facility. The Compliance Schedule for construction and operation of this system shall be as follows: Final Design Completed ,0, 44:4t-1.:,2‘.i Order. Placed for Treatment System a ° Commence Construction of Treatment system M,.� Ptr r4* s Complete Construction and Start-Up of Treatment system 1 'F5 . 1 Final Compliance Inspection :04„..„4,q.. .11.:) This schedule shall be automatically extended to compensate for any delay caused by any entity of Colorado or Weld County government in giving any Northern Colorado Brine Stipulation Papa • JUL 1 ' 93 18: 13 3038324465 PRGE . 007 1-17- 940056 3 HT8R ID :3038324465 JUL 01 '93 18 : 13 No .021 P .08 necessary approvals to install or operate the new water treatment and odor emissions control equipment proposed by Northern Colorado Brine. b. Northern Colorado Brine will pay to the State of Colorado, within 30 days of the execution of this agreement by both parties, $7,000 as a penalty to settle all violations of Regulation No. 2.A.2 . and Emission Permit No. 90WE161, including those alleged by Weld County and the Air Pollution Control Division, existing on or before the execution of this stipulation and agreement. Northern Colorado Brine does not admit that the violations occurred, but forgoes its right to contest the alleged violations. c. Northern Colorado Brine will pay $1,000 per violation, with a maximum of one violation/one penalty per day assessed against it, if the 15:1 odor standard of Regulation No. 2, Section A.2. is exceeded by Northern Colorado Brine while the compliance schedule set forth in paragraph .4(b) above is in effect, or such extensions as are provided in Paragraph No. 6 below. Violation of the standard shall be documented by a certified air quality odor inspector, through correct usage of the Barneby-Cheney Scentometer inspection procedure, outside but not farther than 1000 feet from the property line of the Northern Colorado Brine facility. The Division shall make reasonable efforts to give prompt notice to Northern Colorado Brine of each inspection and the readings therefrom, so that Northern Colorado Brine will have the opportunity to have its certified reader Nora Colondo Brine Stipulation Pap 4 JUL 1 '93 16: 13 3038324465 PRGE . 008 err 940056 HT&R ID: 3038324465 JUL 01 '93 18 : 13 No .021 P .09 perform reasonably contemporaneous readings. Disputes regarding compliance by the Division or • Northern Colorado Brine with the terms of this agreement, including the Compliance Schedule set forth in this agreement shall be heard and determined by the Commission. d. Northern Colorado Brine will operate and maintain the existing emission control systems at the facility, except for periods of temporary malfunction or upset in accordance with the regulations of the Commission, pending completion and operation of the new water treatment and emission control system. e. operation and maintenance of the existing odor emission control systems will occur in a manner which will produce the best available performance for those systems. 5. After the period of the Compliance Schedule has expired, the "Order" sections of the Orders for Compliance dated February 1, 1993 and April 21, 1993 ordering compliance with the 15:1 standard of Regulation No. 2 shall continue to operate in full force and effect, enforceable in a court of law pursuant to any applicable authority, including SS 25-7-121 and 25-7-122, C.R.S. If the Division issues a revised emissions permit to Northern Colorado Brine allowing production in excess of 2,000 barrels/day under paragraph 3 of this agreement, then Northern Colorado Brine may produce in accordance with such revised permit. 6. Northern Colorado Brine agrees to pay a stipulated Northern Colorado Skint SIIpolatloa Pete JUL 1 '93 18: 14 3038324465 PAGE . 009 -7-Fr 940056 5 HT&R TD :3038324465 JUL 01 ' 93 18 : 14 No .021 P . 10 penalty of $1,000.00 for each day of production of the facility after the final date specified in Paragraphs 4(a) , above, for which Northern Colorado Brine fails to have the new water treatment and odor emission control system completed and operating. Northern Colorado Brine shall not be required to pay the stipulated penalty if the reason for not completing and operating the new water treatment and odor emission control system is due to conditions or circumstances beyond Northern Colorado Brine's control. Circumstances beyond Northern Colorado Brine's control shall mean causes beyond the control and without fault or negligence of Northern Colorado Brine, which causes directly affect the implementation of the new system, for which Northern Colorado Brine cannot reasonably be held accountable and which could not reasonably have been foreseen at the time of execution of this stipulation. Such circumstances shall not include financial or economic conditions, negligence, or increased costs or expenses associated with completion of the new system. Northern Colorado Brine shall notify the Division in writing of any condition or circumstance beyond its control that causes or is anticipated to cause non-compliance with the Compliance Schedule. Such notification shall be given no later than five business days after Northern Colorado Brine knows or should have known of such condition or circumstance. The notification shall describe in detail the cause of the non-compliance, the measures taken to prevent or minimize the non-compliance, and the timetable by which those measures will be implemented.. If Northern Colorado Brine fails to comply with the notice requirements of this paragraph, then it shall not be relieved of its obligation to pay the stipulated penalty set forth in this paragraph. The Division shall not withhold Northam Colorado Bdn.Sdpolotion Page 6 JUL I ' 93 18: 14 3038324465 PAGE . 010 7-r-" 340056 HT&R ID :3038324465 JUL 01 '93 18 : 14 No .021 P . 11 concurrence with a requested extension unless the Division determines the request is unjustified due to Northern Colorado Brine's failure to diligently pursue completion and operation of the new water treatment and order emissions control system by the dates stated in this agreement, or any extension thereof under this agreement. 7. The above terms shall constitute an enforceable stipulation and agreement between and among the parties, shall be filed with the Air Quality Control commission for purposes of cancelling the hearing presently scheduled before the Commission on August 20, 1993, shall constitute a full and complete settlement of all matters involving the Notices, Orders, and Penalty Assessments issued by the Division and Weld County regarding Regulation No. 2 and Emission Permit No. 90478161, and any and all events and occurrences leading thereto, and shall govern future disputes and proceedings as set forth herein. 8. The parties agree that the venue for the enforcement of this agreement shall be the District Court for weld County. 9. This agreement is conditioned upon approval by the Air Division and any necessary or required approval of the Weld County Commissioners and the Waste Management Division of the Colorado Department of Health with regard to installation and operation of the new water treatment and odor emission control equipment and shall become effective upon its execution by the said parties. Northern Colorado Brtae Sdpukdon NV 7 • JUL 1 ' 93 18: 15 3038324465 PAGE . 011 7 940056 .7 HTBR ID :3038324465 JUL 01 '93 18 : 15 No .021 P . 12 10. This stipulation shall be considered a final order of the Division pursuant to S 25-7-115, C.R.S. DATED this day of July, 1993. FOR THE AIR QUALITY FOR NORTHERN COLORADO BRINE CONTROL DIVISION Director, Air Pollution President Control Division Northern Colorado Brine Assistant Attorney General Gregory J. Hobbs, Jr. , #`0009 Natural Resources Section Hobbs, Trout & Raley, P.C. State of Colorado 1775 Sherman Street, Suite 1300 Denver, Colorado 80203 TELE: (303) 861-1963, Ext. 120 FAX : (303) 832-4465 Northern CobSo Brine Stipulation Page g JUL 1 '93 18: 15 3038324465 PAGE . 012 D 7Y 940056 8 HT&R ID :3038324465 JUL 01 '93 18 : 15 No .021 P . 13 ORDER OF THE AIR QUALITY CONTROL COMMISSION In accordance with the above Stipulation, the hearing set for August 20, 1993, is vacated. DATED this day of , 1993. Chairman Northern Colorado Brine Stipulation Page 9 JUL 1 '93 18: 15 3038324465 PRGE . 013 117 94005s INSPECTION REPORT DATE: July 6, 1993 CASE NUMBER: ZCH-97 and ZCH-98 USR NUMBER: USR-540 NAME: Northern Colorado Brine c/o Mike Cervi 10600 Weld County Road 54 Milliken, CO 80543 LEGAL DESCRIPTION: Part of the NE4 of Section 26, and part of the NW4 of Section 25, all in T5N, R67W of the 6th P.M. , Weld County, Colorado. LOCATION: Approximately 1 mile east of State Highway 257, south of and adjacent to Weld County Road 54. The property was inspected to determine compliance with Operation Standards 1, 3, 6, 7-A, 7-H, 7-I, 7-J, 8-A, 15, and 16. Theses standards were identified as part of the Probable Cause hearing. Operation Standard Number 1 states as follows: The use shall be an oil and gas brine water disposal and oil recovery facility as described in the submitted application materials. No hazardous wastes or nonhazardous industrial waste shall be allowed at the site. The facility shall be designed, constructed, and operated to comply with the Colorado Department of Health Solid Wastes Disposal Sites and Facilities Act, Title 30-20, Part 1, CRS 1973, as amended. The inspection showed that the use of the property has not been limited to oil and gas brine water disposal and oil recovery facility as described in the submitted application materials. Nonhazardous waste from Monfort and other facilities have not been received at the facility after the noncompliance was identified. Prior to this inspection, the use of the property was not limited to the oil and gas disposal and oil recovery facility as described in the submitted application materials. Nonhazardous waste from Monfort and other facilities were been disposed of at this site. No Frac tanks other than the two allowed on-site for pond skimming were observed. Prior to this inspection the facility was used for oil field equipment storage. - No material other than brine water and approved waste have been disposed of at the site after the noncompliance was identified. Prior to this inspection materials other than brine water had been disposed of at the facility. Receipt Numbers 40925 and 40862 indicate that motor oil and other materials were disposed of at the facility. cjkiAl Ales / ,J 940056 PROBABLE CAUSE, ZCH-97 ZCH-98 Northern Colorado Brine Page 2 The depth of the pond "E" is being reduced, however, the depth is still in excess of 5 foot. The depth of all ponds is not consistent with the application materials. The pond depth is not to exceed 5 feet (30 inches for freeboard, 6 inches for salt accumulation, and 24 inches for brine water) . Ponds A, B, C, and D meet the 30 inches of free board. Prior to this inspection all Ponds were not maintained with the minimum freeboard of 30 inches. Freeboard is a part of the 5 foot pond depth from the top of the pond liner (30 inches of freeboard, 6 inches of salt accumulation, and 24 inches of brine water) . The inspection showed that less than 2,000 barrels per day are being received. Prior to this inspection the facility had accepted more waste than it was designed for. The facility was designed for no more than 2,000 barrels per day. The facility had received as much as 9,000 barrels of brine water in one day. With less than 2,000 barrels per day received, the required 24 hour retention time should be obtained. The facility was designed for a retention time of 24 hours within the skim tanks prior to the release into the ponds. Prior to this inspection the retention time of the brine water had been as short as 4 to 6 hours with the amount of water (9,000 barrels) that the facility has received. - The inspection showed that appropriate records are being maintained at this time. Prior to this inspection appropriate recorded had not been maintained. The inspection showed that the contaminated soils have been removed from the site. Prior to this inspection contaminated soils had been located on the property and not properly handled. Contaminated soils were placed on the ground without any barrier or liner. The inspection showed that the facility is still receiving more waste than what was approved for emissions permit 90WE161. Slight odors were observed during the inspection, these odors were not as intensive as what was observed on past inspections. Prior to this inspection the facility had been cited for odor violations (2.1.2 of Solid Waste Regulations) . £55 940056 PROBABLE CAUSE, ZCH-97 ZCH-98 Northern Colorado Brine Page 3 Operation Standard Number 3 States: There shall be one (1) point of ingress and egress to the facility from Weld County Road 54. The point of access shall be located, designed and constructed in accordance with the submitted application materials and Use by Special Review Permit Plan Map. Only one access was observed during this inspection. Prior to this inspection more than one access to the facility was observed. Operation Standard Number 6 states: A six (6) foot chain link fence with three (3) strand barbed wire top shall enclose the Use by Special Review area. The inspection showed that the facility is enclosed with a (6) foot chain link fence with three (3) strand barbed wire top. Operation Standard Number 7-A states: The four (4) evaporative ponds shall be engineer-designed and operated in accordance with the submitted application materials and Use by Special Review Permit Plan Map. The inspection showed Pond "E" was not constructed in compliance with the submitted application materials (30 inches for freeboard, 6 inches for salt accumulation, and 24 inches for brine water) . Operation Standard Number 7-H states: A gauge height indicator shall be installed in the evaporation ponds. The gauge must clearly indicate the depth of brine water waste. The inspection showed that gauge height indicators have been installed. Operation Standard Number 7-I states: The evaporation pond(s) shall be kept free and clear of oil skims. The inspection showed that all ponds are not kept free and clear of oil skims. Pond skim was observed on ponds B, C, D, and E. SSS 9.40056 PROBABLE CAUSE, ZCH-97 ZCH-98 Northern Colorado Brine Page 4 Operation Standard number 7-J states: An aeration system shall be installed and operated on the four evaporative ponds. In the event of an odor problem emanating from the ponds, an odor abatement program shall be instituted. The inspection showed that an approved aeration system has not been installed on all ponds and a complete odor abatement program has not been submitted for review. An aeration system and a sprayer/misting system has been installed on all ponds. Prior to this inspection odor violations had been issued by the Weld County Health Department. Operation Standard Number 8-A states: The dump and skim tanks shall be engineer-designed in accordance with the submitted application materials and Use by Special Review Permit Plan Map. The skim tanks are to be designed to have a minimum retention time of 24 hours. Due to the size and design of the existing skim facility, and the amount of water received, the 24 hour retention time of the brine water is being maintained. Prior to this inspection retention time was as low as 4 to 6 hours due to the amount of brine water received (9,000 barrels in one day) . Operation Standard Number 15 states: The Use by Special Review shall be limited to the plans shown hereon and governed by the Standards as stated above and all applicable Weld County Regulations. Any material deviations from the plans and/or Standards as shown or stated above shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans and/or Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. The inspection showed that the Use by Special Review site has not been limited to the plans shown and has not been maintained in compliance with all applicable Weld County Regulations. The Use by Special Review site is not in compliance with all Development Standards and all applicable Weld County Regulations and amendments to the approved plans have not been applied for. 940056 L PROBABLE CAUSE, ZCH-97 ZCH-98 Northern Colorado Brine Page 5 Operation Standard Number 16 states: The property owner and/or operator of this operation shall be responsible for complying with all of the above stated Standards. Noncompliance with any of the above stated Standards may be reason for revocation of the Permit by the Board of County Commissioners. The inspection showed that the property owner and/or operator of this operation has not maintained compliance with all operation standards. 940056 - S'S'S SOLID HASTE FACILITY INSPECTIC (Surface Impoundments) County t. P.;cl DATE 7 (c Facility �nl CdletuLao X13 Located in F,'n; ,.JL Incorporated Area Location ID Ir u c(2 Y4 i;1.ll, kz. (K/ Current Operator uh "(�2Ncu4,e Mailing Address of Operator e/6,c,C' UleR Current Owner (If different) /Y)({« Mailing Address of Owner ��Yv� (All items checked must be explaind in supplemental report) I• A. Public Health and/or Environmental Hazards B. Evidence of Potential for (Serious) Surface Water Pollution C. Evidence of Potential for (Serious) Groundwater Pollution D. Sludge or Septic Pumpings Disposal on Site (Unauthorized) E. Safety Hazards✓ F. Non-Compliance with Approved Design and Operation �1,S-f Ft\r cS._I "�`G` ✓ G. Structural Integrity of Dikes Questionable s.&u:i G'R�.It,LLC� • H. Records , I. Other �lyni > D. * RE.tEDIAL ACTION REQUIRED ( . i?b LIB,, II. Minimum Standards, CRS 30, 20-110 — (11tS tl act t'aytip £ N-9= cfr A. Odors and/or Vectors Present uate Fencing I tCx B. Inade 4 (to control access) C. Not Designated and/or Improperly Zoned D. Monitoring Wells (Maintenance, Intregrity, or Locking Cap not Present) E. Evidence of Minor Spills Around Disposal Area SK�wt C,b�.tt,�:. trt�S F. Water/Liquid Surface Covered with oil(s) or scumPc-h)Q *Jlf < 17k' t�•- G. Depth Gauges not Present and or Readible g j 1j < t% pr+:-i.1lT- H. Pond Freeboard Level Exceeded. G c �- I. Recommendations for Site Improvement 0 , 3 LZ/c (J�S_z,L- J. Other I -1 L 2'4, p .;_i_,t -t�{ � " "III. Remarks — C- tAi3tA 5Ki»�+1, T,E Qe{J� k To yak 2tC t a«.-, f wrath)`c ,l t1{rr-rte Son t CM c USI2 Mush- Fv not l , -to rtFltoE— `rRt.S. L • �r 6. Luck-1-p, Q ry 2i� A l�.l "�i)c ttrn 4,:� a; l.'S. �ltiS et\f_i.t t-c".0tUt t41),(.4_77(11 C-4 IIS� Y�Y�-`- ♦rf-111 -f h PCf 1hS. S f,-t- n Qu--Lf-t, 64- (1-rm.-.7,)--LA rke, ra ;14 S S rr to Lt T1 c,J,., . CLS ci �:,.Li /1- m 4�:,.\ l l 4t .yS 1b O - Z\., �l F I.'l f`j Fri C i l;St, (Name) PRESENT AT INSPECTION (Representing) /f (IKQ- C�zhv, AJ X . .(� ctee j111, , / TT • t I .tv u c c t f-1 c_ek. (WHITE COPY-FILE) (YELLOW COPY OPERATOR) (PINK COPY-COUNTY) Ec liibti- exp. 940056 / JUL- .2: ..- P. 02 • SOLID WASTE FACILITY INSPECTION (Surface Impoundments) 3 • County ‘,1/4.) 6(„7:3 DATE :IT)!)! 6 2Qgj Located in Facility Noei-Age4 ('otORh'Jo REv1/41E Incorporated Area Location • pot, Op t,'C' r'Z 55S/ Current Operator Alma Kt. CttQZ Mailing Address of Operator Current Owner (If different) Mailing Address of Owner o. £(X - , aia-c eO.10-4, .a.arw>e...awn.a..r...na.arasvaa.a.a.a.a.aaaaP.aw+.w... falls ...-Mr...r...q nn (All items checked must be explaind in supplemental report) A. Public Health and/or Environmental Hazards B. Evidence of Potential for (Serious) Surface Water Pollution C. Evidence of Potential for (Serious) Groundwater Pollution D. Sludge or Septic Pumpings Disposal on Site (Unauthorized) E. Safety Hazards.__.. . ._..,. . . - X F. Non—Compliance with Approved Design and Operation X G. Structural Integrity of Dikes Questionable H. Records _ I. Other * REMEDIAL ACTION REQUIRED II. Minimum Standards, CRS 30, 20-110 A. Odors and/or Vectors Present B. Inadequate Fencing (to control access) C. Not Designated and/or Improperly Zoned D. Monitoring Wells (Maintenance, Intregrity, or Locking Cap not Present) E. Evidence of Minor Spills Around Disposal Area P. Water/Liquid Surface Covered with oil(s) or scum G. Depth Gauges not Present and or Resdible H. Pond Freeboard Level Exceeded. • I. Recommendations for Site Improvement J. Other III. Remo cs `4 P ,�� f w • �d Z /r Po,‘ s i7 4i c;� Q� gnu onV n. S o -4sSR . Z P Cnn�. •C'f cyavo-4;kn �7 e,1x.4_ L, Etas+ v \' cam}\•. •MOOS= _ r;rt aaravaeraaa a-raa MI= soar_-arrraraaaaaraa aaaa.a am m...� (Name) PRESENT AT INSPECTION (Representing) vx:rk e • Inspection Engineer/Geologist R a &_t- (WHITE COPY—FILE) (YELLOW COPY OPERATOR) (PINK COPY—COUNTY) p940056_ 940056 Hello