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Home My WebLink About930804.tiff- .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. PUBLIC FORUM OIL AND GAS TASK FORCE RE: TO OBTAIN PUBLIC INPUT ON THE FUTURE GOALS OF THE WELD COUNTY OIL AND GAS TASK FORCE AND PROPOSED CHANGES TO ANY APPLICABLE ORDINANCES WITHIN WELD COUNTY A public forum was conducted on August 2, 1993, at 7:00 p.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, Carol Harding Assistant County Attorney, Lee Morrison Planning Department Director, Chuck Cunliffe Director, Environmental Protection Division, John Pickle County Engineer, Drew Scheltinga County Attorney, Bruce Barker Weld County Assessor, Warren Lasell The following business was transacted: I hereby certify that a public forum was conducted to hear public input concerning the future goals of the Weld County Oil and Gas Task Force and proposed changes to any applicable ordinances within Weld County. Chairman Harbert stated the Goals of the Weld County Oil and Gas Task Force are to evaluate County Zoning Ordinance, County Building Code, and health regulations to determine if amendments to the regulations are advisable to accomplish the following: A. Address areas of major health, safety, and welfare concerns which are inadequately addressed by existing state, federal or county regulations. B. Clarify the scope and applicability of county regulations. C. Estimate the resources necessary to carry out any proposed regulatory program. D. Confine the changes to within the limits of the county's power to regulate. Chairman Harbert then listed the topics to be discussed. NUMBER AND SIZE OF COMPRESSORS ON NATURAL GAS LINES: Mike Morgan, representing the North American Resources Company, expressed his opinion that the size is more important than the number allowed. At present one compressor is allowed; however, the size is undefined. He feels two small compressors would be more efficient than one compressor in many cases. His suggestion is that the definition include two compressors, with a limit set on total capacity. BRINE WATER INJECTION AND RECOVERY WELLS: Ellen Baker, Mayor Pro-Tem, City of Fort Lupton, expressed her concerns regarding: 1) the number of wells controlled by other entities which are within our boundaries; 2) the use of brine water, or any other material, being injected back into the earth; and 3) stated there are willing individuals available in Fort Lupton for committees, task forces, etc. 930804 Bec90igC Pi , t) RE: PUBLIC FORUM - OIL AND GAS TASK FORCE PAGE 2 POLICY ON BRINE WATER DISPOSAL FACILITY: Delores Martindale, property owner, related her experiences when she reported violations and illegal dumping on county roads. Although she had license plate numbers, times caught dumping, etc. the authorities did not properly handle her complaints. Dennis Page, Greeley, asked what the policy is on brine water. John Pickle, Director of the Environmental Protection Division for Weld County, explained there are two ways to dispose of brine water at the present time. The first is an injection well. The second is the use of disposal ponds. He pointed out our policy is based on the applicable state laws, and that an individual is not allowed to dump just anywhere. Lee Morrison, Assistant County Attorney, pointed out the Oil and Gas Regulations have been revised to allow the use of on-site treatment of waste, however, it requires written authorization from the surface owner. Susan McCannon, Colorado Oil and Gas Commission, explained they have been looking for a way to track the amount of brine water put into a well versus the amount that is disposed of properly. In this way, they will be able to tell if illegal disposal methods are being utilized. She stated there are two inspectors assigned to Weld County. Jeff Welborn, Attorney representing several oil and gas companies, discussed the problems in the past and said the new regulations by the State have only been in effect since May 30, 1993. He said the property owners will notice a change in the future, and anyone noticing dumping or having problems regarding disposal should call the Oil and Gas Conservation Commission to report it. Mr. Morrison noted the notice of hearings for the Oil and Gas Commission are posted near the Commissioner's Offices in the Centennial Complex. The address and phone number of the Colorado Oil and Gas Commission were placed on the overhead projector to allow individuals to copy. CONFLICTS WITH SURFACE USERS: Carol Haught, Hudson, discussed the restrictions on injection wells and bond requirements for remedial efforts. Mr. Pickle pointed out the county has NO involvement with anything at the production level. Steven Speilman, Vessels Oil and Gas Company, stated any report of a spill should be reported to Ed Herring, Weld County Department of Emergency Management. John Martindale, property owner, said it has to be over 20 barrels before it is considered a spill. Ms. McCannon explained the bonding requirements of the Oil and Gas Conservation Commission, and said the Commission is already looking at possible changes to those limits. She also mentioned the Environmental Response Fund which is obtained through a levy on production by the State to use for reclamation of orphaned drilling sites. Ms. McCannon said the threshold limit for reporting of spills is 5 barrels. She then presented an overview of the responsibilities of the Commission to: 1. Issue spacing orders 2. Determine bonding requirements and compliance 3. Inspect and enforce to maintain compliance 4. Rigorously track and report variance from requirements 5. Test wells 6. Test water in pits 7. Monitor disposal of muds and other wastes Ms. McCannon also discussed the state-wide rules being drafted, the bone requirement task force, and other applicable procedures being considered for revision. 930804 RE: PUBLIC FORUM - OIL AND GAS TASK FORCE PAGE 3 Jim Brown, Colorado Corn Grower's Association, stated his concerns regarding open pits, wells not being reclaimed properly, weeds not being cut, and oil spills left on the ground. He described his nightmare-like experience with the inspector who responded to the complaint. Celia Fitch, a resident of Boulder County, discussed the surface use agreement and how property owners are bullied into signing them because of lack of time to reach a negotiated agreement. She presented copies of articles from the Colorado Daily paper regarding the drilling problems. Dennis Kuehl, a property owner in the Johnstown/Berthoud area, stated he feels the county should give strong support to the surface owners whenever possible. John Kunzman, Fort Lupton, said his royalties have been dropping, and ad valorem taxes have been dropping. He would like the county to audit to see if they are receiving the proper amounts of ad valorem taxes from the oil and gas companies. Warren Lasell, Weld County Assessor, explained the reporting for oil and gas production is done on a voluntary basis, since there simply is no way to monitor the amounts. George Seaver of Wattenberg also had concerns about the amounts being produced. Elton Miller, Fort Lupton, asked about the Division Orders and who has responsibility for signing them. He was referred to Bruce Barker, County Attorney. Jim Hill, Platteville, said he found a survey stake on his property indicating the oil and gas people had driven onto his property and surveyed and staked it without a permit. Mr. Hill discussed the concern that the surface owner has no rights, and the way the oil and gas companies intimidate you into believing you have no choices. He feels the surface owner should have more say in site location, as well as location of roads and access routes to those sites. Bill Crews, Crews and Zeren, said draft copies of proposed state changes are available at the Oil and Gas Commission. Mr. Page reiterated the surface owner has few rights, and most oil companies do not care about those minimal rights. He, too, agrees the County should have more control, and especially the surface owners should be given more consideration. Further discussion ensued regarding the makeup of the Oil and Gas Conservation Commission, how individuals apply for open positions, and the Thornton and Broomfield Ordinances concerning each entities' rights. Todd McCormick, Platteville, said the oil company drilled on his property in February. They took 5.8 acres out of production, did not reclaim the area, drove across fields to access the wells, ignored regulations concerning cleanup and reclamation. He feels the county needs to do something about containment, as well as to ensure fair recompense for land that is lost. Dennis Hoshiko, Front Range Land and Mineral Owners' Association, discussed his organization and the goals and attainments since inception. John Evans, Attorney representing Front Range Land and Mineral Owners' Association, presented a draft of regulations proposed by their organization, and summarized their proposal. The Board decided to accept written comments concerning this issue until August 16, 1993. The suggestions received at this forum are summarized as follows: 930804 RE: PUBLIC FORUM - OIL AND GAS TASK FORCE PAGE 4 1. Include compressor in definition section of Zoning Ordinance. 2. Allow two compressors no larger than any one single compressor. 3. Examine referral process and citizen participation on brine water injection well proposals. 4. Environmental concerns of brine water injection wells. 5. Illegal disposal of brine water on county roads or private property. 6. Siting of drill sites -- surface impacts. 7. Access roads to site. 8. More protection for surface owners. 9. County/State jurisdiction issues. 10. Site reclamation 11. Self-funding administrative permit process. 12. Consider additional county regulations for surface brine water disposal facilities. 13. Bonds for environmental protection. 14. Open pits -- irrigation problems. 15. Oil spills 16. On-site weeds. 17. Surface agreements. "Break it -- fix it. " This summary be, and hereby is, certified on the 18th day of August, A.D. , 1993. All written comments received by the Board of County Commissiones are attached. 1 APPROVED: ATTEST y i7 4/44441177 BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Weld County Clerk to tile Board By: g ._-•(s Lae Constance L. H rbert, Chairman Deputy Clerk to the Board 2 f ,, I A, j _' W. L ster, Pro-- mm/;_Lfp TAPE #93-FORUM-1 e E'/(axter BC0018 Dale K. Hal/ /Barbara J. Kirkme er / 930804 Ad/ice Mov9avi 910 S• Cherry y #god Oenvev9 CO So;;a ger,eserr/mi : A0 th 4uiienCciti /?eio cC3s Coo /444 2. 34%e-g 0 M lc. r Pa) Ve ot5 F 1 Lift OA r0 HA or(. 1h c yC i /116O l ycj c',_941) 00 qOG 930804 LC rt . Le IE f C..C,1(C, 3 '1 . 1 / ) 11 If�� ; i4 j/� ` etii A ri -Tzief 3c1-5( 9S Btititaen to 80 3®I \, tes 6 2_ C `tC T ; 71L1 (ID lCC6� - SIosn4 " r1n (HA, Jo 5l'5 7'�2) w FN Y � 71L J b /p 1 1 '16c /'w .L,- ' in° TIRAparw , fir, (o . 80190 .- /SO / 14; \ \ \ r19 2_(o °OR ?ta "eoi 1 Co '30 s n / ✓ — L �JI /1 (l'e s Cre,Us A 7- e%- °yl v-Liiente 6GPe /*Pi ?cc 3y 930894 --add / Gam( /7,26 7 et/c 2 d42,e r' 'r/ De-Aavi 3/6e1( e4J CT X163/ ©yo on g(P,vs aitoua Cox,vs r . OIt/Na s D-SJ#d mride.v (3o 3' ? 9i -Qa .ts' ( 300 se 50eArideraapJ /irS"a'' E.�4 ail,aw►.D Ci ;oil/ PI Lc5(M P IC�nn,Gic_. eislorccdo f i I a GoGiott � rwtt cis l5$CG Lo�cu` * * 350 be Co `609,03 8584— 2100 August 16, 1993 n rr CREWS & ZEREN -PETROLEUM LAND CONSULTANTS. Board of Weld County Commissioners -- -�. 1223 28TH AVENUE, SUITE 2 910 10th CO80631 Street GREELEY, COLORADO 80631 Greeley, „ 1 S• 7 (303)350733 GREELEY CO (303)6597710 DENVER (303)351-0867 FAX C'! !^". Dear Commissioners: r, ' HAND DELIVERED At the public meeting on August 2,you solicited written comments concerning any changes believed necessary to the current zoning ordinance of Weld County. It is our belief that no changes are in order except for some housekeeping amendments (such as broadening the definition of oil production equipment to include compression equipment, as suggested by Mike Morgan on behalf of North American Resources Company). Weld County is protected by very good Use by Special Review procedures for wells in areas zoned other than Ag and I-3,where drilling is a use by right. During the process of a USR, the applicant must address many different areas of concern to the County (and to other agencies to which the application is sent by the Weld County Planning Department. The rules which the Colorado Oil and Gas Conservation Commission will be enacting, most likely at the Commission meeting today or tomorrow, are quite inclusive and should address most of the concerns of both local governments and surface owners. Experienced farmers from Weld County were among those on the committee,which was charged with drafting the rules changes. While each interest group involved may not have gotten every item of concern into the proposed regulations, we understand that all parties, except for the Front Range Land and Mineral Owners Association, are really quite pleased with the outcome. FRLMOA was unable to get its slate of changes adopted by the legislature, which recognized the fundamental and detrimental change in the relationship between surface and mineral estates which would have resulted. The legislators also found that the strict liability sought by the FRLMOA would virtually constitute a taking,since the compensation would have gone beyond any reasonable measure of the fair market value of any lands damaged. The FRLMOA has been absolutely unyielding in its quest for "fair and just compensation" based on strict liability. As a result it has alienated some active members who do not agree with the its radical position. The proposed rules presented to the Board at the August 2 meeting by FRLMOA are unnecessary, unworkable and would do great damage to an industry which contributes greatly to employment and tax revenue in Weld County. The OGCC has recognized that there have been problems regarding surface use and damages, and it has addressed the issues strongly and fairly in both policies and rules. We urge you to make the suggested housekeeping changes only, and to not take any action which would further polarize the agriculture and oil and gas industries. Your ordinances are adequate, fair and reasonable. Cordially, CREWS & ZEREN William G. Crews, CPL Partner WGC/mm 930894 8 August, 1993 Dear Weld County Commissioners, Hello. I am writing to you as regards your request for input about regulations regarding the Oil and Gas industry. My family lives on a farm, and I am in close proximity to storage tanks, rigs, etc. I am particularly concerned with the application of pesticides by these companies. What I have learned about Oil and Gas industry pesticide use is quite astounding to me. I believe there is a lack of social responsibility here, that needs to be corrected. DATELINE: Weld County, 1993. There is a strong possibility that a real input of harmful levels of chemicals into our soil and water is occurring; because of bare ground applications of chemicals by non-agricultural sources, i.e. the Oil&Gas industry. There is no monitoring, or even sampling, of soil and water around these sites. I have been told by Dept. of Ag. personnel, that no records need to be kept on in-house use of pesticides by the Oil&Gas industry. Only when the O&G companies subcontract the pesticide work out to commercial applicators, are records required. Because the amount of acres involved is widespread and often near water, I think awareness of what is being put into our county by these companies is our perogative. Employees of the oil and gas industry may be using their private applicator licenses to buy chemicals for these 'public ' industries. This clouds the paper trail even further. Maintaining a cleared ground effect takes A LOT of chemical inputs on a regular, sustained basis. This bare ground effect is necessary to prevent grass fires. Yet, many of these sites are long term: 10-15 years, and continued seasonal, or even yearly, applications of 'unknown' concentrations and constituents (at least to non-industry people) , is not desirable. I am in clear disagreement with how the Oil&Gas industry handles this safety concern on a year-in year-out basis. Their companies ' policies are not in Weld County's best interests. Nor, is it in the best interests of our children to be outdoors playing near these areas when no notice is given of spraying schedules. Also, no signs are posted that the area has been sprayed. It takes only a brief period of time to put these pesticides down, yet it takes 24-72 hours before the plants signal thy've been sprayed and I can knowingly keep my kids away. To me, this is an outrageous disregard for citizen health. I believe if you could buzz around the county and see the number of sites in close proximity to water, in close range ' of people at home and work, you would finally realize that we 930804 are dealing with considerable amounts of land and water and people. Or should I say, NOT dealing with. I am not an eco-freak. My family is involved with the use of pesticides also. I don' t begrudge the Oil&Gas industry the use of them either. But I do know that ranchers and farmers apply chemicals so that certain plants will grow, whereas the O&G folks do not live where they spray, and they do not use amounts that let anything grow. So I do begrudge them their attitude that they can secretly conduct their business at the expense of others. Their company policies indicate to me that they are more interested in staying beyond the scope of public scrutiny, than they are in creating company policies that allow them to make profits, while employing common neighborliness and good land stewardship. Please consider these behaviors of the Oil & Gas Industry. Weld County was once big, beautiful and a healthy place to live. Without proper leadership initiatives on your part, someday, it will just be big. �l R ectfully, ii-6-7‘0 X i atherine Miller 33108 WCR 29 Box 12 Windsor 93081)4 One DTC, Suite MAW %::kegna:* lnC; 80 5251 DTC Parkway Englewood. Coloradoo 80111 f 6 Telephone: 303-771-7777 R. E. NEHER President July 15, 1993 Board of County Commissioners P. 0. Box 758 Greeley CO 80632 Gentlemen: As an independent oil company which has been in business since 1959, we feel we must address the issues involved in your meeting of August 2, 1993. Unfortunately, we will be unable to attend personally, but would appreciate your consideration of our input. First of all, in our opinion, the Colorado Oil and Gas Conservation Commission has in the past been the most effective government body with which we have dealt. It has uniformly been staffed with competent, capable people who understand the industry and seemed dedicated to help the business work. That being the case, we feel that this is a private hassle between surface owners and oil operators, and should be left for them to settle by means available to them, failing in which they have the same remedies available to them that we all have. Government intrusion into this private fight will only result in another layer of bureaucracy for us to wade through. In all my years in this business, I've never been unable to amicably settle these disputes without any government help. Please give very serious consideration to leaving this matter to be settled by the Commission, the mineral owner, the surface owner, and the oil operator. The Weld County situation is unique and will go away in a year or two, while the road down which Mr. Hoshiko proposes to take us will be a burden forever on our already hurting business. Your thoughtful consideration will be greatly appreciated. Very truly yours, CHEMCO, INC. R. E. Neher REN/z j p S cc- E-; 9308^4 F o&gdraft.db DRAFT 6/25/93 Goals of Weld County Oil & Gas Task Force To evaluate County Zoning, Building Code and Health Regulations to determine if amendments are advisable to the regulations to accomplish the following : A. Address areas of major health, safety, and welfare concerns which are inadequately addressed by existing state, federal or county regulations . B. Clarify the scope and applicability of County Regulations . C. Estimate the resources necessary to carry out any proposed regulatory program. D. Confine the changes to within the limits of the County' s power to regulate . Specific Issues 1 . Consider scope o,f Zoning Ordinance "oil and gas support facility" definition in relation to: a. Number and size of compressors on Natural gas lines . b. Brine water injection and recovery wells . c . Policy on brine water disposal facility. 2 . Conflicts with surface uses . 830884 F A Brief Summary of Proposed Weld County Oil and Gas Ordinances 1. Purpose. The regulations are enacted to complement and harmonize with state law in the development of oil and gas in Weld County. It is important to facilitate the development of oil and gas while mitigating the damage to the surface of the land, whether avoidable or not. Damage to the surface of the land adversely affects the County's economy through reduction in agricultural productivity, the decline of property values and other effects of both a temporary and permanent nature. Further, the regulations recognize the rights of mineral owners to use the surface of the land to explore for and develop Weld County's oil and gas resources. The right to use the surface, however, does not include the right to destroy or damage the surface. When the surface is damaged or destroyed there must be just compensation to the surface owner. 2. Requirements and Procedures. The proposed regulations set forth an Administrative Permit system. The system will be paid for by permit fees and the more efficient collection of ad valorem taxes on non-producing oil and gas wells. 3. The administrative permit will require a site plan, setbacks for building and roads, minimization of surface impacts, and accurate maps showing the impact of drilling. The oil and gas operator will also be required to identify all of the working interest owners, required permits, provide an emergency response plan, an access plan, a visual mitigation plan, a weed control plan, and a description of the total acres to be used. There is also required a fire district plan and a contract for services and protection. The Health Department must approve noise, dust, odor, gas flaring and haul trucks. A detailed reclamation and restoration plan must be included prior to commencement of operations. A plan to minimize impact on drainage ditches, water ways, streams, rivers or wetlands must be on file. 4. Surface casing rules promulgated by the OGCC are adopted, including projections of the Fox Hills Aquifer which requires casing from the top to just below the aquifer. The OGCC requirement for pressure testing of wells, circulating of cement, and blow-out preventors shall be enforced. 5. Visual impact mitigation and landscaping is required. There are also drainage and infiltration requirements to protect streams and roads. Wildlife, wetlands and cultural impacts must be considered. 6. There must be consideration for the impact on county roads and bridges. Ingress and egress points must consider impact on traffic and discourage the use of local streets through residential areas. ( 4 EXHIBIT 930804 Weld County Oil and Gas Ordinances Summary Page Two Further, permits must include consideration for overweight or oversized vehicles and their impact on the land. 7 . There is a requirement for weed control, reporting of spills, and ground contamination or pollution. There are rules for open pits and storage. Pits are banned where groundwater is within two feet of the surface. 8. There is a security requirement for the oil and gas operator which covers all surface damages. It does not apply to those items covered by the State Bond as required by the OGCC. This provision requires the operator to post a bond, letter of credit, or other security with the County. The amount is not less than $5,000 for non-irrigated land, not less than $20,000 for irrigated land, and $50,000 if the well is located within a residential, industrial or commercial development. The oil and gas operator is released from the security requirement when all surface and road damages have been paid, and reclamation is complete. The oil and gas operator is required to carry a $1,000,000 dollar insurance policy for disasters, with the surface owner as a named insured on the policy. 9. There are strong reclamation requirements covering batteries, berming and containment, and fencing. Environmental and public safety are important considerations in the rules for waste disposal, water contamination, maintenance of structures and equipment, underground pipelines and air emissions. Upon abandonment, there is requirement for removal of pumps, tanks, towers, well casings, clean-up of foreign material and a requirement for soil and ground water testing. There are provisions for compaction of the soil and seedbed preparation. 10. Finally, there are enforcement powers. The County Attorney may institute a proceeding to prevent violations. There are remedies for pollution, cease and desist orders, and the imposition of fines. 930804 Basin Exploration, Int 370 17th Street,Suite 1800 rte. . Denver,CO 80202 Office 303/685-8000 BASIN • _„. Fax 303/685-8010 I■ June 3, 1993 Ms. Connie Harbert Weld County Board of Commissioners P. O. Box 758 Greeley, Colorado 80632 Re: Permitting Procedures -•- Water Injection Wells Dear Ms. Harbert: At the suggestion of Lee Morrison, I am writing to you on behalf of oil and gas operators active in Weld County to request that the county appoint a joint industry/citizens/ government study group to consider revising the Weld County Zoning Ordinance in connection with the regulation of water injection wells for oil and gas operations. By way of background, the disposal of produced water in connection with oil and gas operations is becoming an increas- ingly important problem in Weld County. There are not enough commercial facilities to keep up with the demand. Further, objections are increasingly heard to the operation of surface commercial facilities for environmental and cost reasons. It is likely that underground re-injection of produced water will be the alternative of choice for most oil and gas operators, not only because this alternative is environmentally safe and much less costly, but also because it may have applicability to enhanced recovery operations that prolong the life of existing oil and gas properties. And where better to put produced water than the formation from which it came? Our company has recently received a permit from the Colorado Oil and Gas Conservation Commission to operate one injection well in Weld County to dispose of water produced from our wells. Another permit has been delayed in view of protests received from, among others, the Towns of Frederick and Dacono and citizens from Ft. Lupton. Existing language of the Weld County Zoning Ordinance appears to exempt our proposed operations from the Use by Special. Review permit process, since in both instances ;sager will be transported to these wells via pipeline rather than stcred on site. Nevertheless, the Weld County Planning Department thinks that our operations are subject to the ordinance and that it would be important for us to go through the review process. As you may also know, recent decisions of the Colorado Supreme e : m'1- , G1,'-I (4/1)ti) NC, 930804 Ms. Connie Harbert June 3, 1993 Page 2 Court indicate that there is some room for local land use regulation of oil and gas activities, but the extent of that latitude was left undefined by the Court. Although the COGCC requires a rigorous technical review process before issuing a permit for an injection well, the Commission's procedures are oriented toward consideration of the down-hole implications rather than surface impacts. Accordingly, there is value in developing a procedure whereby the surface impacts can be properly considered and the public health, safety and welfare protected while at the same time safeguarding the ability of the oil and gas industry to conduct operations in a cost- effective manner. Recently these issues were faced by the Cities of Thornton, Broomfield and Westminster, which were considering enactment of oil and gas regulatory ordinances. Representatives of several oil and gas operators active in the area of these cities met with representatives of the cities to discuss mutual concerns presented by these proposed ordinances, and the result of these meetings was a negotiated form of regulatory ordinance that satisfied the objectives of the cities and the industry. Thornton and Broomfield have already adopted these negotiated ordinances, and Westminster is in the process of doing so. We think that a similar procedure would be useful in this context. At the least, it offers the opportunity for dialogue and education. The objective, however, would be to develop a procedure that satisfies industry' s concerns for objectivity, timeliness and cost control while assuring the County that the operations are conducted with due regard for potential surface impacts. Mr. Morrison suggested that a working group be composed of representatives of Weld County government, surface owners, interested local governments, and the oil and gas industry. If you agree, Basin would be willing to put together a group of industry representatives to serve on this project. I would be happy to answer any questions or to provide any additional information that you may require. I look forward to hearing from you. Sincerely, BASIN EXPLORATION, INC. " "�l Howard L. Boigon" Vice President - General Counsel 080.HLB: jm 930804 ' Ms. Connie Harbert June 3 , 1993 Page 3 cc: David Blandford, Vice President-Operations David Brody, Esq. - Amoco Production Company Gary Haefele - Snyder Oil Corporation Ronald Jacobs, Esq. - Elk Exploration John Longwell - Prima Oil & Gas Susan McCannen - Colorado Oil & Gas Conservation Commission J. Michael Morgan, Esq. Lohf, Shaiman & Ross Dan Schwartz, Vice President-Land Molly Sommerville, Esq. - Burns, Figa & Will John F. Welborn, Esq. - Welborn, Dufford, Brown & Tooley Kenneth Wonstolen, Esq. - Gerrity Oil & Gas Corporation 930804 . - WEEKEND EKEND it, JULY 30- AUGUST 2, 1993 • The Ultimate Fundraiser Whenithe4canvas is''celluloid, . I --Weather n- rt. —Weekend'Sports page 19: 'Weekend Entertav�ent,,page 23Sunny _High 90-9s° Weekend 1 . y m . ' (:,..,,::.-i-,,,,, . �l ) joioraao ofd `k u+ k 1 • °t" ' The independent press for CU and Boulder. VOL 101 NO.111 4 '41. + _ },f•9i f _ �ljl+t �d9` - - w ,, i r.,F t { ` -- - Charlie Johnson/Colorado Daily K` x•. .Pg!ga Julian Hernandez above,left,and Mike Hemandez,brothers,struggle to remove part of „ ,N, �I', fib'- ..,,,-.:4‹,,,,,,;, ,,,:4,, ,,,,.„,..,, x°.a ` a ,: 'a blowout preventer,which can withstand 20,000 pounds of pressure should a blowout of oil- " t or gas occur.At right is one of Gerrity Oil and Gas Corp.'s rigs in Boulder County. _"'�" ,y�r ' fr ,: 'f st " part Couu VOWS to hold , Gerrity to strict rules 4�, oc4 w,„ ` " Mika ,,,,,, I-44,44-4.1.i'•4, waf Testimony critical of oil company ,., By ERIK WILMSEN "_ - • Homer Page echoed Stewart's direction, �,,-.+ice M ` Colorado Daly stars wrier adding that someone should approach the + After hearing testimony from- residents' ''ii tt - addingdt Gas and Oil Conservation i M;i i'- angered by an oil company's plans to dril : ' a p Commission to discuss the state's responsi- t•s _. @ as many as 200 wells in the.county, the e bilities on this issue. �t i i �'Boulder County Commissioners promised "We need to let them know what's going $ ,� i' Thursday to issue the most stringent regu- here, Io . lations legally allowed to Gerrity Oil'and to engage said u Hume.nWe should ask them .i; _ ....�.,. ,y,�•r,,,yy- to engage public and environmental interests -" Gas Corp. '° at the highest level-and now." l Following a'two-and-a-half-hour public -The push for regulations is a response to _ hearing commissioners lost little time in the company's.recent surge of gas and oil .direeh4g staff�to draw up the strict regula- drilling on Boulder open space, both city [ions and to do rt,soon. i 'and-county,as`well as on private property. -4",„,.' --'I would like to ask the staff for pro-' :The issue,say many,is not whether min-. x posed regulations that,.to the extent posse eral-rights holders have the right to drill; ble, •allow ors,to regulate oil and gas they do. Rather, said those at theepublic drilling said Commissioner Ron Stewart (TURN TO PAGE 6) And I would ask chat it be done as quick ' r' '- - ' ,,_ , ii ,m. ,,,_.:.,,,. ly as possible:I wotild�also direct that any 11 1 .'„'."':.,'!!'1,',1„,,,t``...��7 1 additional ble I uons`we undertake should ill merchants Took inwar or solutions r be`borneby.the industry:' Commissioners Sand Hume and By ERIK WILMSEN chants and residents.- - conditions on the Hill. Attention became • Colorado Daily staff Writer Anne:,Dagdelen ,.,president of the focused on the University Hill area after an Failing to elicit a response for more Merchant Hill Associationwand member of altercation there in April resulted in some INSIDE THE DAILY police protection on the Hill;area merchants theK;UmversityHilb;General Improvement local teen-agers beating former CU student ''NE W5 - 1-:y j brainstormed this-week'on.ways.they;'can tDistrict;saidashe-Wantsto�make th'e Hill a Paul Kelly, leaving him with severe brain _ OpiNioN 12=17 improve the atmosphere of their business more'comfortable pace foradults i. injuries. -' SPORTS 19 district, and they,are asking the Boulder _ "ape wapf_this to be anwarea that caters Merchants said violence among the ,-. ENTERTAINMENT 23.- City Council for help. 'to an older clientele 'she;said.?`And we throngsiof teen=agers'that swarm the Hill at MOJiEs 25 During a'meeting among several mer 'want ltd bea—positive`' ",'experience. night has become increasingly worse, and WHAT'S HAPPENING - 32 chants,'a:Hill patrolman and Mayor Leslie ,;,The,brainstorming session,followed last they blamed the youths,for intimidating ens- CLASSIFIEDS 33 +:. COMIGS 37 Durgin, participants'tossed out ideas they 'week's'larger meeting`at which•many mer- -Comers and pushing business away. _ thought would make the area better for mer- chants expressed anger'and-frustration about .,,, ,'- [TURN To PAGE s] EXHIBIT • ar �. "' x tt. ! irk if. �1� on di, a{ss " i Y C o'. W 'a„ai o T C'� U q E � eC ,o., .. . el'',.2- ;� �? E T o Iii; V r e e i 4_ u? • F il' ((//�{,vr'�g'+ s�`�� t °' lJfluiflil O T` '' `• ( C' 'W a 8 L O W ' ' y,. 1 st y (� g a'm-E y p,-:.!,1-1,'..', �5 p ro t �•i'. tgg _' I -04 a u . 9 >,--- ry'" �- d' !7 }(p `, q .4 8 v v c'c.. 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OV ''OYO d,�ii� EE �C7 T ..�C � 0E ^C?C W�• Q L G- 26°..7: LyE..i��... U �i W `a L , >y. C N O . L . 1 OD O T pp N = 7; N'O O C N ❑'d y !.fix " p Y o° v m o 'v E � .�.o » v,a. o W � u w E • .F c `. f'2'A' ." '' °'" y 9 0.; Q .� W m 0.. --= -o E Q o vu b �x.�= ',, E >x. •...� c y y ° u„ >,° o u 3 ❑ `�a" T Loo ^O C � o L CO'C L _. .E O O tit ,."'s L t p v •• �.L 'V v �: m 3 vOi v 3 O A�y+ N 7 9 m 0 E a.E w m F E o Rry.e o ff;.•J-19,} wke "'7A 5. Ti II:- . Weld County Oil and Gas Ordinances FRONT RANGE LAND AND MINERAL OWNERS ASSOCIATION Prepared by: John M. Evans, Esq. 6300 S. Syracuse Way Suite 555 Englewood, CO 80111 (303) 796-9225 930804 Table of Contents 1 SECTION I. SECTION II. Definitions 2 SECTION III. Requirements and Procedures• 5 I. Proposed New Wells, Redrilling and Enhanced Recovery Operations. 5 II. Inspections. III. Proof of Payment of Ad Valorem Tax - Producing and Non-Producing Wells 6 SECTION IV. Special Use Permit for Proposed New Wells, Redrilling and Enhanced Recovery Operations and Gathering Lines, Pipe Lines or Gathering Systems - Application 6 Procedures 6 I. Special Use Permit Approval Requirements 7 II. Contents of Special Use Permit Application . 15 III. Notice to Proceed IV. The applicant shall comply with all of the following drilling procedures and regulations . . . 17 SECTION V. Existing Wells 35 SECTION VI. Building Permit/As-Built Plans 36 SECTION VII. Security Requirements 36 SECTION VIII. Insurance 40 SECTION IX. Storage Tanks and Accessory Equipment 41 SECTION X. Environmental and Public Safety 42 SECTION XI. Site Restoration 45 SECTION XII. Enforcement 51 SECTION XIII. Severability 55 930804 WELD COUNTY OIL AND GAS ORDINANCES SECTION I. These regulations are enacted to protect and promote the health, safety, morals, convenience, order, prosperity or general welfare of the present and future residents of Weld County, Colorado. It is the intent of the Board of Commissioners of Weld County by enacting these regulations to facilitate the development of oil and gas resources within the County while mitigating the damage to the surface of the land, whether avoidable or not. It is recognized that damage to the surface of the land adversely affects the County's economy through reduction in agricultural productivity, the decline of property values and other effects of both a temporary and permanent nature. The development of these regulations is an attempt to bring a uniform and consistent land use policy to the entire county. The Colorado Oil and Gas Conservation Commission by special order, not regulation, established a D-J Basin Policy for approximately one third of the count for Causes Nos. 499, 232, 407, 250, 496 and 493. These ordinances are established to complement, and intended to be harmonius with State law. The establishment of these regulations recognizes rights of mineral owners to explore for and develop Weld County's oil and gas resources. The right to use the surface estate for the extraction of minerals, despite the right of reasonable use, does not include the right to destroy or damage the surface. The mineral estate reservation includes the right to "use" so much land as is 1 930804 reasonably necessary. The word "use" is not to be read to include the destruction of the surface. The surface estate and the mineral estate must be harmoniously reconciled with the policies for land use in Weld County. The "rights" of the "surface estate" must be exercised with due regard for the "rights" of the "mineral estate" and vice versa. Local governments have a recognized, traditional authority and responsibility to regulate land use within their jurisdiction, including use for oil and gas drilling. These regulations are intended as an exercise of this land use authority. Should it be established by competent evidence that a proposed oil and gas facility cannot be operated in compliance with these regulations, land use approval for such a facility may be denied. SECTION II. Definitions: I. Definitions A. ACT shall mean the Oil and Gas Conservation Act of the State of Colorado. B. COMMISSION or COUNTY BOARD means the County Board of Weld County. C. DAY shall mean a period of twenty-four (24) consecutive hours. D. LAND PRODUCTIVITY means the ability to produce income from the use of the surface of a tract of land, either through agriculture or otherwise. E. INSPECTOR means any person designated by the Weld 2 930804 County Commissioners or by an agent of the Commissioners who shall have the authority to insect a well site to determine compliance with this Ordinance and other applicable ordinances of Weld County. F. MINERAL ESTATE OWNER means any person(s) having title or right of ownership in subsurface oil and gas or leasehold interests therein. G. NEW WELL means a well that is spudded after the effective date of this Ordinance. H. OIL AND GAS ESTATE means an estate in or ownership of all or part of the oil and gas underlying a tract of land. I. OIL AND GAS OPERATIONS means exploration for oil and gas or the drilling of oil, gas, oil and gas, fluid- injection, stratigraphic, or gas storage well or seismic hole that requires entry upon the surface of a tract of land, including any production operations related to such exploration or drilling and any installation of pipelines or flowlines. J. OPERATING PLAN means a general description of oil and gas operations identifying purpose, use, typical staffing pattern, seasonal or periodic considerations, routine hours of operating, source of services and infrastructure, and any other information related to the functioning of that facility. K. OIL AND GAS OPERATOR OR OPERATOR means any person, 3 930804 including any contractor or subcontractor who is identified in the records of the Oil and Gas Conservation Commission as the person conducting oil and gas operations on a tract of land. L. PRODUCTION OPERATION means the operation of a well for the production of oil and gas including all acts, structures, equipment, and roadways necessary for such operation. M. SURETY BOND is an agreement in which one party called a "surety" , obligates itself to a second party called "obligee" , to answer for the default of a third party, called principal. It is an agreement providing for monetary compensation should there be a failure to perform specified acts within a stated period. N. SURFACE ESTATE means an estate in or ownership of all or part of the surface of a tract of land. O. WELL means a hole drilled into the earth for the purpose of exploring for or extracting oil, gas or other hydrocarbon substances for the purposes of recharging, secondary recovery, storage or disposal thereof. P. WELL HEAD means the mouth of the well at which oil or gas is produced. Q. WELL SITE means that area of land surrounding a proposed or existing well or wells, which is disturbed by oil and gas operations including, but not limited to, tanks and tank batteries, pipelines and gathering lines, buildings 4 930804 or structures, pits, roads, and any accessory structures and equipment necessary for the safe operation of drilling and production activities. II. All terms used herein that are defined in the Act or in Commission regulations and are not otherwise defined in Subsection I of the Section shall be defined as provided in the Act or in such regulations as of the effective date of ordinance. III. All other words used herein shall be given their usual customary and accepted meaning. SECTION III. Requirements and Procedures: I. Proposed New Wells, Redrillinq and Enhanced Recovery Operations. Within all zone districts, it shall be unlawful for any person to drill, redrill, perform enhanced recovery operations (i.e. injection wells) , lay, construct, replace, relocate, change the size of and remove pipeline to transport oil or gas from the lease to the main pipeline in the area, or construct a well unless an Administrative Permit has first been granted by Weld County in accordance with the procedures defined in the Article. The granting of Administrative Permits shall not relieve the operator from otherwise complying with all applicable regulatory requirements of this jurisdiction, the State of Colorado and the United States. 5 930894 II. Inspections. In recognition of the potential impact associated with oil and gas drilling operations, all wells and accessory equipment and structures, pipelines and gathering lines shall be subject to inspection by Inspectors of the Weld County Health Department or any other county agency delegated by the Commissioners to determine compliance with the applicable provision of this Article, the Weld County Uniform Fire code, the Weld County Uniform Building Code, and other applicable Weld County health and safety standards. Inspection fees shall be assessed per the fee structure set forth in Ordinance 84. III. Proof of Payment of Ad Valorem Tax - Producing and Non- Producing Wells At the time of granting a permit, oil and gas operators shall present a copy of a report to the County Tax Assessor of an assessed market value of the mineral interest owned of the non- producing well, the calculated taxes owed, and a certificate that all tax payments are current to the permitting date for the producing or non-producing well. SECTION IV. Special Use Permit for Proposed New Wells, Redrilling and Enhanced Recovery Operations and Gathering Lines, Pipe Lines or Gathering Systems - Application Procedures An application for special use permit pursuant to this chapter 6 930894 shall be filed with (appropriate official) and shall include the following: I. Special Use Permit Approval Requirements. In order to approve an Application for a Special Use Permit for proposed new wells, redrilling, enhanced recovery operations, gathering lines, pipe lines or gathering systems, the County or its designated agent must find in the application record that: A. The applicant has complied with all the requirements for an application documentation as defined in Section IV. (II) of this ordinance. B. Obtained Written Permission to Enter the "Surface Estate" by the surface owner or furnished adequate security requirements as defined in Section VIII of this ordinance. II. Contents of Special Use Permit Application. All extraction permit applications shall, at a minimum, contain the following: (1) a site plan; (2 ) a vicinity map; and (3) narrative elements, as described herein: A. Site Plan 1. Site information Site information shall be submitted on a plat or map at a scale no less than 1 inch - 50 feet with a true north arrow feet showing the proposed location of (a) the rig, wellhead, mud tanks, retaining pits, evaporation pits, collection lines, racks, 7 930804 and similar structures and equipment; (b) any tank or tank battery and flow lines or collection lines associated with the proposed well in the event of production; (c) existing tank batteries and flow lines within a half-mile radius of the proposed location; (d) all existing trail improvements, buildings and equipment within one-half ( 1/2) mile of the well site; (e) all existing utility easements and other easements and rights-of-way; (f) all irrigation or other ditches within 300 ' of the well site; (g) location of all access roads to the well site; (h) all site and lease boundaries with fences; (i) slope contours for the entire well site area; (j) a ground water contour for the entire well site area; (k) identification of zoning districts per the County Zoning Map; and (1) the signature and seal of a professional land surveyor. 2. Setbacks Unless it would violate OGCC spacing rules, the wellbore, production tanks and onsite production equipment shall be located not less than six hundred feed (600 ' ) from a building, including agricultural buildings such as barns, public road above-ground utility line, railroad, sensitive wildlife or cultural resource area, scenic area or vista, hiking, biking or horseback trail, or 8 930804 buildings permitted for construction. 3. Minimization of Surface Impacts Where possible, in order to minimize surface impact, the applicant shall develop multiple reservoirs or locations by drilling from common pads or by multiple completions or commingling in existing wellbores provided such operations are authorized by the OGCC regulations. 4 . Drainage/Erosion Control The operator shall provide drainage plans and erosion control plans for onsite and offsite drainage which shall be sufficient to safely convey a 100-year storm off-site. B. Vicinity Map 1. Vicinity information shall be submitted on USGS 7.5 minute series or assessor base maps which indicate topographic detail and show all existing waterbodies and watercourses within a 3-mile radius of the proposed well or wells. For any existing waterbody or watercourse topographically lower and within 2,000 feet or less from the well site, a detailed description shall be submitted or proposed methods to be employed to prevent water pollution or alteration of the waterbody or watercourse. A determination of whether the well-site is within 2,000 feet from an established "floodway" or "flood 9 930804 plain" shall be included. 2. Location and type of water supply (rivers, creeks, lakes, ponds, ground water wells, and ditches or similar features) and plan for disposal of water shall be provided. This information shall be provided on a plat or map or by a written description. Further, the source and amounts of all water to be used in the drilling and operation of the proposed wells should be described. The methods and routes for transporting water to the well-site and methods and location of disposal of produced waters shall be described. If ground water is proposed to be utilized, State Engineer approval or permits must be provided with an approved "change of use" . 3. The location of existing oil and gas and water wells and facilities shall be submitted on a map which shall include all wells (producing, abandoned, temporarily abandoned, shut-in, injection, drilling, water etc. ) within a 2-mile radius of the proposed location of a well. All gathering systems, transmission lines and compressor stations must also be reflected on this map. 4 . The exact location of drill site and/or gathering system shall be reflected on a plat or map of the section in which the drill site is to be located. 10 930804 The plat of the section shall be at a scale of no less than 1 inch - 1,000 feet, and shall include the following information: (a) All dimensions of the section (north line, south line, west line, and east line) ; (b) Location of the drill site, given in feet from two lines of the section, e.g. , 1,000 ft. FNL and 1,500 ft. FWL, (c) Township and Range information; (d) Section Number; (e) Location expressed in appropriate 1/4 1/4 1/4 section; (f) True North Arrow; and (g) Parcel Tax Identification Number. 5. The location of any subdivision lots, agricultural lands or any facilities defined above as comprising a quiet zone shall be reflected. 6. Access roads within three miles of the well site shall be specified. 7. All trails or other passive recreational use areas existing on the surface shall be specified. C. Narrative Elements 1. The applicant and operator's working interest owners' and surface owners' names and addresses shall be provided, as well as copies of any legal instruments identifying the applicant's interest in the property and any applicable OGCC Form 1, Designated Agent. 2. A listing of any permits or approvals obtained or 11 930894 yet to be obtained from local, State or Federal agencies shall be provided. 3. The applicant shall provide a copy to the County of the Notice of Intent to Drill that has been sent to the surface owner or surface tenant, as provided by the Rules and Regulations of the OGCC. 4 . An emergency response plan shall be provided including, but not limited to listing of local telephone numbers of the public and private entities and individuals to be notified in the event of an emergency, means of identifying location of well, and provisions to be made for access by emergency response entities. 5. A plan of access to well site and/or gathering system and evidence of easements secured from all affected surface owners shall be provided. 6. A visual mitigation plan shall be provided as described under Section IV(IV) (B) . 7 . A description of weed control plan to County standards and a description of any unusual flora or fauna native or unique to the area shall be provided. 8. A description of the total number of acres required for the entire drill site and/or gathering system operation, i.e. , rig, mud pits, evaporation pits, pipe racks, temporary trailers, mud pumps and 12 930804 parking areas shall be provided. 9. All operations shall be included within a fire district, or be under contract with a fire district for protection services, or be provided with private fire protection. A copy of any contract for fire protection shall be submitted. In addition, the following conditions shall be met: (a) A fire protection plan shall be provided, specifying types of equipment, response time, number and capability of personnel available, planned actions for probable emergency events, and any other pertinent information. If private fire protection is utilized, said plan shall provide for a level of protection at least equal to that provided by the reviewing public fire agency. (b) Prior to submitting the application to the County, a proposed fire and emergency plan shall be provided to and reviewed by the appropriate public fire agency. 10. The location of any personnel facilities may be shown on a map or plat or by written description. Any proposed temporary or permanent structures must be noted. Building permits must be secured if required by Ordinance 119 or Zoning Code 89. Sanitary facilities must comply with Section 602 (g) 13 930804 of the OGCC regulations existing as of the effective date of these regulations. Vehicle parking areas shall be noted and number of expected vehicles and their type shall be specified. 11. The application shall contain proof that the State of Colorado and the Weld County Health Department regulations are complied with regarding noise, dust, odor, gas flaring and haul trucks. Further, proof shall be supplied that the State Division of Wildlife, and any Soil Conservation District and County weed and pest control program has approved the proposed weed and pest control measures. 12. In the event that additional wells are planned or contemplated for the same immediate area, a field- wide operating plan must also be submitted. 13. A detailed reclamation and restoration plan must be included with the application which shall meet or exceed County reseeding standards and which shall provide for complete reclamation of the site to the same or a better condition than existed prior to the commencement of operations. 14 . A list of the names and addresses of all surface owners of lands adjacent to or contiguous with the drill site spacing unit of the proposed well shall be provided. 15. The name, address and phone number of all 14 930804 subcontractors or third parties the applicant anticipates may work on any portion of the work contemplated to be performed under the extraction permit shall be provided. 16 . A plan to minimize or prevent any effect on drainage ditches, water ways, streams, rivers or wetland shall be provided. 17 . A signed agreement to govern dispute resolution which provides: "Any controversy or claim arising out of or relating to the bond, (as provided for herein in Section VIII, pages 36-40) or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. " D. Timing Applicants for extraction permits should be aware that due to the lengthy review process contemplated for investigation, verification and review of the application, that such submittal should be tendered to the County at least six (6) months prior to the time applicant wishes to commence operations. III. Notice to Proceed Prior to commencement of drilling, redrilling, recompletion or 15 930894 enhanced recovery operations, or installation of pipelines, flow lines or gathering systems for which an extraction permit has been granted, a "Notice to Proceed" shall be obtained from the County. The following documentation shall be submitted and approved prior to the issuance of the Notice to Proceed: A. A copy of the decision approving an application for drilling, recompletion, or gathering system/pipeline for the specific well(s) issued by the County. B. A copy of the site plan and vicinity map presented in conjunction with approval of the application. C. Copy of the financial security approved by the County Attorney to secure compliance with these regulations. D. Drainage and grading plans for the well site meeting the requirements of the Department of Planning Services. E. Copy of an approved overweight/oversized vehicle permit issued by the County. F. Copy of a receipt for any fees required pursuant to Section G. Copy of the OGCC permit and any federal permit (if required) issued for the operation. B. A copy of the Administrative Permit required if contemplated operations exist or occur on districts which are residential or estate zoned. I. A copy of any easement secured to grant access to the wellsite, gathering system or pipeline right-of-way. J. A copy of the approved reclamation/restoration plan. 16 330804 K. A copy of the Agreement governing dispute resolution. IV. The applicant shall comply with all of the following drilling procedures and regulations: A. Rules, Regulations and Special Orders of the OGCC The applicant shall comply with Rules and Regulations 317 and 319 of the OGCC, as enacted on the effective date of these Oil and Gas Regulations, entitled "General Drilling Rules" and "Abandonment" which are incorporated herein in their entirety and adopted as part of the oil and gas regulations, subject to the following: 1. 317 (e) . The written notice of commencement of earthwork shall be provided to the County no less than thirty (30) days prior to commencement of such operations. 2. 317 (m) . Prior written notice of flaring shall be provided to the appropriate Fire Department, to the persons required to receive such notice under Weld County Health Department Regulations and to the Communications Center. 3. 317 (q) . The burning or burial of such materials is also subject to air quality regulations and may only occur with advance written permission from the County Health Department and a permit for air quality regulations. 4. 317 (r) . Reclamation and restoration shall commence 17 930894 within one ( 1) month after completion of operations. 5. 319 (a) (6) . A minimum of twenty days advance written notice of the time and date of plugging shall also be provided to the county. 6. 319(a) (8) . All such reclamation work shall be completed within two (2) months of plugging a well, unless the County grants an extension in such time period for good cause shown. 7 . 319 (b) ( 1) . Wells on lands subject to these regulations shall not be temporarily abandoned unless compelling circumstances exist which justify such action and only after the County approves such action after notice and hearing based upon competent evidence in the record. 8. Protection of the environment and prevention of pollution. Rule 1. Surface Casing A minimum of two hundred (200) feet of surface casing shall be run. In those areas where the base of the Fox Hills Aquifer, which shall include the transition zone, is five hundred (500) feet deep or less, surface casing shall be set at least fifty (50) feet below the base of the aquifer. In those areas where the base of the Fox Hills aquifer is at a depth in excess of five hundred (500) feet, the operator may select between the options provided in Rule 317 (h) , (k) , and (i) , formerly (c) 18 930804 (d) and (k) of the general rules and regulations of the Commission; however such operation shall result in cement from fifty (50) feet below the base of the fox Hills aquifer across all aquifers above it. Cement shall be circulated to the surface or one hundred ( 100) feet into the surface casing if stage cementing is selected and allowed to set a minimum of eight (8) hours prior to commencing drilling operations (Note: Logs of wells in the vicinity or Hydrologic Atlas No. 650 of the U.S. Geological Survey may be reviewed for estimating the depth to the base of the Fox Hills aquifer. ) Rule 2 . Requirements After Fracinq. Upon completion of the frac operation the operator shall furnish the Commission with a copy of the bond log, the frac charts showing pressure and time, as well as a detailed description of the work program. A copy of the service company job summary may be submitted in lieu of the work program. Further, a mud logging unit shall be operated on all oil and gas wells drilled, in the area set forth below, to determine the presence of hydrocarbon in the mud from the surface of the ground to a depth of 3000 feet by a method approved by the Director of the OGCC. A continuous record shall be maintained with a copy submitted to the Oil and Gas Conservation Commission and Weld County including: Township 4 North, Range 65 West, Sections 5 & 6 Township 4 North, Range 66 West, Section 1 19 930804 Township 5 North, Range 65 West, Sections 4-11; 15-22; and 29-32,inclusive Township 5 North, Range 66 West, Sections 1-4, 9-16, N 1/2 22, 23, 24, and 36 Township 6 North, Range 66 West, S 1/2 31, SW 1/4 32 It is further ordered that the following rules and regulations shall apply to those wells drilled, completed or recompleted in the area from Township 4 through 7 North and Range 64 through the E 1/2 of 68 West, inclusive, unless otherwise waived by the Director. Rule 3. Production Casing. After thorough circulation of a hole, cement shall be pumped behind the production casing as provided for in Rule 317 (h) , formerly (d) to a height in the annulus sufficient to result in a good bond extending at least 300 feet above the top of the Niobrara formation. Rule 4 . Completion Requirements and Monitoring. Upon completion of any well for production and on wells presently. completed, the operator shall equip the bradenhead access to the annulus between the production and surface casing with a needle valve and fittings to allow for a pressure reading. Following release of any pressure developed during completion operations and at least 24 hours therafter, pressure readings shall be taken for a period of 96 hours and the date, time and pressure shall be recorded. In the event that the pressure exceeds a value equal to the setting depth of the surface casing x 0 .7 or 250 psi, whichever is less, the operator shall 20 930804 contact the Director of the OGCC within 8 hours for a well located in a residential area and within 24 hours in other areas. A residential area shall be an area that has a platted density of two (2) acres per dwelling or within five hundred (500) feet of a residence or a building of public assembly. In the case of the platted area, the Director of the OGCC and the County shall determine that development is to take place within 3 years. A remedial plan shall be prepared by the operator to determine the source of the gas subject to the approval of the Director and the County. If the gas is found to be coming from a shallow sand or aquifer, then such gas shall be utilized by the operator to prevent waste, and to remove the gas from that shallow zone which will help eliminate a potentially hazardous situation. If no pressure in excess of the setting depth of the surface casing x 0.7 or in excess of 250 psi is noticed following the initial bleeding of this annulus after completion and for a period of 96 hours, the operator shall observe the pressure every month, and maintain such records in their office for a period of three (3) years. These records shall be submitted to the Commission or to the County upon request. Rule 5. Requirements Before Fracinq. Before any operator fracs a well for production in an area as defined in above, he must submit a Form 4, Sundry Notice, indicating his intention to frac, setting forth the interval to be fraced, the method 21 930804 of fracing, a detailed account of the work to be performed and the name of the contractor doing the work. The commission shall be advised of the height of cement properly bonded above the zone to be fraced. Approval of procedures must be obtained prior to undertaking such work, but the commission shall endeavor to respond within 24 hours of receipt of such notice of intention to frac. Cement placed behind the production casing in accord with Rule 3 shall be allowed to set a minimum of forty eight (48) hours prior to the undertaking of any frac operation. Verbal approval may be given, but must be confirmed in writing. Rule 6. Workovers. Prior to undertaking any workover which involves the pulling of tubing from a well located in a residential area as defined in 4 above, the operator or contractor shall contact the Commission and County by submitting a Sundry Notice Form 4 of the OGCC, and shall indicate thereon the name of the operator and contractor, the location of the well with a detailed description of the work to be done and the date on which the work is to commence. Verbal approval may be given, but must be confirmed in writing. Rule 7 . Blow-out Preventors. Blow-out preventors and kill line or lines shall be installed prior to commencement of any operation to remove tubing from any well completed in the Niobrara, Codell or "J" Sand formations unless waived by the Director upon a showing that no danger from blow-out exists. 22 930804 All blow-out equipment must be in good working order and operated once each 24 hours. Sufficient fluid and equipment shall be on location to kill the well immediately in the event of an operational accident. Rule 8. Timing of Operations. The cooperation of the various operators and contractors is solicited in timing work events to allow maximum opportunity for observance of work procedures by Commission personnel. The operator and/or contractor shall notify the Commission of fracing, cementing and workovers in the defined areas. The Commission and the County Officer of Emergency management shall be notified immediately of any leaking or other incidents that may effect the safety of the citizens and property in the area. B. Visual Impact Mitigation 1. To the maximum extent possible, oil and gas facilities or gathering systems shall be located away from prominent natural features such as distinctive rock and land forms, vegetative patterns, river crossings scenic vistas and other landmarks. 2 . To the maximum extent possible, facilities shall be located to avoid crossing hills and ridges. The applicant shall attempt to locate facilities at the base of slopes to provide a background of topography and/or natural cover to minimize visual prominence of the facilities. 23 930804 3. To the maximum extent possible, the applicant shall use structures of minimal size to satisfy present and future functional requirements. 4. If any cutting of trees or vegetation for construction of facilities is required, advance consent from the surface owner must be secured and the applicant shall feather and thin edges of vegetation. 5. The applicant shall replace earth adjacent to water crossings at slopes less than the normal angle of repose for the soil type of the site. 6. The applicant shall align access roads to follow existing grades and minimize cuts and fills. 7 . Facilities shall be painted a uniform, non- contrasting, non-reflective color tone matched to land slightly darker than adjacent landscape. 8. Construction of enclosures or barriers shall be required where facilities create noise and visual impacts non-mitigable because of proximity, density, or intensity of adjacent land use, areas of high use by persons or wildlife or other similar nuisance factors, all as determined by the County. 9. The following landscaping practices shall be required, on a site specific basis: a. Establishment of screening ground cover, shrubs or trees; any such landscaping must be 24 930894 periodically maintained by the applicant. b. Shaping cuts and fills to appear as natural forms. c. Cutting rock areas to create irregular forms. d. Designing the facility to utilize natural screens. e. Construction of fences such as woven wood or rock for use with or instead of landscaping. C. Drainage and Infiltration 1. Stream boundaries shall be preserved in a natural undisturbed state. If disruption of these areas is unavoidable, prior written approval of such disturbance must be secured from the County or its designated agent. Rehabilitation of disturbed stream boundaries shall imitate the form and vegetative character that would occur under long term natural process. 2. Roads or other site improvements obstructing drainages shall provide for culverts adequately sized for storm flows. 3. The County may require concrete pads or barriers underlying tanks in order to prevent potential seepage or infiltration. D. Wildlife Impacts 1. Wildlife a. When a facility is located within an area 25 930894 designated by the State Division of Wildlife, as having a moderate or high impact on wildlife, the applicant shall consult with the Division of Wildlife to obtain recommendations for appropriate site specific and cumulative impact mitigation procedures. Recommendations shall be submitted for review and approval by the State Division of Wildlife or a designated County agent. b. The following mitigation measures shall be included as appropriate in the site specific wildlife mitigation procedures as required under Paragraph D( 1) (a) above, as appropriate: i. Avoid conducting drilling and construction activities during critical use periods (for example: near heron or eagle nests during nesting or wildlife winter ranges during winter. ) ii. Avoid conducting on-site operations and maintenance activities during critical use hours. iii. Confine vehicular access to established roads except under emergency circumstances. iv. Forbid use of firearms in project areas. v. Install gates which can be locked at the 26 930804 first property boundary crossed when accessing the facility from the closest public road. vi. Conduct work near watercourses in a manner that minimizes siltation and erosion and at a period of little or no flow. vii. Stabilize excess material at watercourse crossings in place or remove off site. viii. Stabilize excess material at watercourse crossings in place or remove offsite. ix. Complete fueling and lubrication of construction equipment or vehicles away from the well site. x. Multiple Sites: In lieu of a site specific mitigation review for each facility, the Applicant may submit to the County a multi-site plan addressing cumulative impacts to wildlife from the total facilities. The multi-site plan shall include but not be limited to all items under this paragraph (b) . 2 . Cultural Resources a. All proposed activity in an archaeologic or historic resource area or sensitive geologic area as identified by local regulation, or the 27 930804 State Archeologist shall provide for the preservation of the resource after completion of necessary study and work as specified by the Office of State Archeologist and County personnel before any development begins. Should a resource be uncovered during operations, those operations shall be suspended pending recommendation of the State Archeologist or County. E. Impacts to Roads and Bridges 1. If required maintenance of county roads accessing the well site is more extensive than what is currently provided, the applicant shall, by contractual agreement acceptable to the County Attorney, provide for either private maintenance of the County roads or reimburse the County for additional maintenance costs in accordance with a Road Impact Agreement. 2. The county has the authority to close or limit use of any street or road at its discretion if such road surface is in poor condition and would be further damaged by additional use. F. Access 1. Ingress and egress points shall be located and improved in order to: a. Assure adequate capacity for efficient 28 9301304 movement of existing and projected traffic volumes. b. Minimize hazards to street or road traffic and adjacent property and human activity. c. Discourage the use of local streets through residential areas. d. Assure that all-weather access roads, suitable to handle emergency equipment, are provided to any well site, structure, improvement, or activity area from the public road. Road design, base and location must be approved by the Fire Department prior to operation commencement. All roads shall be maintained to provide a passable roadway free of ruts. 2. All applicable permits or approvals shall be obtained, including: a. Access permits to State, County or City roads. b. Construction of pipelines within State, County or City highway easements. c. Overweight or oversize loads permits for all extra-legal vehicles or loads. d. All gathering systems or pipelines will comply with minimum pipeline standards established by the D.O.T. Prior to construction, the depth of cover, design formula and method of protection, installation and marking shall be 29 930804 approved by the County. Depending upon the nature and scope of pipelines to be installed, the City may require additional security to protect the health and welfare of persons utilizing the lands. e. Army Corps of Engineers permits regarding wetlands. G. Weed Control Oil and gas well sites shall be maintained in a weed- free, clean condition. The operator shall follow the weed control plan approved by any applicable soil conservation district for weed control, reclamation, and revegetation which shall be immediately initiated after completion of drilling and be finally implemented at cessation of production. Special care shall be utilized to protect all unusual flora and fauna which may be unique or native. H. Reporting of Spills and Ground Contamination/Pollution 1. The working interest owner(s) and operator(s) shall be jointly and severally responsible for prevention, reporting and prompt removal of any and all spills involving waste materials, oil/raw gasoline or toxic or hazardous materials. In addition to the reporting requirements of the OGCC immediate verbal notice, followed as soon as practicable by written confirmation, of any spill 30 1 930894 of any material must be provided to the appropriate Fire Department, Sheriff's Department, Weld County Health Department or County Attorney. 2 . The working interest owner(s) and operator shall jointly be responsible to take such precautions as are necessary to prevent polluting the waters of the state, surface or subsurface, by oil, gas, salt or brackish water or other oil field wastes. No discharge shall be made from any disposal system or otherwise into the waters of the State. 3. No operator, in the conduct of any oil or gas operation shall perform any act or practice which shall constitute a violation of any comprehensive plan adopted by the Air or Water Quality Control Commissions for the prevention, control and abatement of pollution of the air or waters of the State. 4. No injection shall be authorized pursuant to Rule 326 or Rule 401 of the OGCC Rules and Regulations as adopted on the effective date of these regulations, unless the person applying for authorization to conduct the injection activities demonstrates that those activities will not result in the presence in an underground source of drinking water of any physical, chemical, biological or radiological substance or matter 31 930894 which may cause a violation of any primary drinking water regulation in effect as of July 12, 1982 and found at Title 40 C.F.R. part 142, as amended, or may otherwise adversely affect human health. An underground source of drinking water is an aquifer or any portion thereof: a. which supplies any public water system; or b. which contains a sufficient quantity of ground water to supply a public water system; and i. currently supplies drinking water for human consumption; or ii. contains fewer than 10,000 milligrams per liter total dissolved solids. 5. No person shall accept water produced from oil and gas operations, or other field waste for disposal in a commercial disposal facility, without first obtaining a Certificate from Weld County in accord with the regulations pertaining to solid waste disposal sites and facilities promulgated by the Colorado Department of Health. I. Open Pits and Storace 1. When reserve pits for drilling and produced fluids are being employed in the drilling of an oil and/or gas well, or to take any other actions related to the maintenance or testing of said well, these pits 32 930894 shall be dug and the soil horizons segregated as per the recommendtions of the "McMillan Committee" . These soils should be protected (covered) if conditions suggest such action should be taken to provide that erosion does not disperse the soils. When the pits are filled, the soil horizons are to be put back in reverse order to their removal in order to reconstruct, as closely as possible, the soils sequence in the area. 2. When reserve pits for drilling and produced fluids are being employed in the drilling of an oil and/or gas well, or to take any other actions related to the maintenance or testing of said well, these pits shall be lined in accordance with established protocols and guidelines as promulgated by the American Petroleum Institute (API) , with the intent to protect the environmental integrity of the surface and subsurface horizons at or adjacent to the drill site. These guidelines will have set minimum recommendations for liner material, attachment of said liner to the ground, and minimum volume of pits relative to mud system volume and target depth of the borehole. 3. In addition, all bentonite and other drill solids shall be stored at a location on that site which is also lined to prevent loss of the material and 33 930804 solids contamination to the agriculturally productive surface layer (topsoil) . 4. Whenever surface pits or above surface tanks are being employed for the temporary storage of drilling and produced fluids, a spill prevention and response plan must be in effect and have been demonstrated to minimize environmental impact to the surface and subsurface. Failure to respond in a timely manner as per said plan may result in fines being levied against the operator and/or the shut down of operations at the specificed site. 5. These actions should be taken and focused on minimizing the impact to the highly productive topsoil in the agriculturally important regions of the county. Lined pits and storage areas should eliminate or limit the impact caused by drill solids and fluids and produced fluids contamination of agricultural lands. J. Special Conditions 1. Whenever the groundwater at a location to be drilled has been shown to be within two feet of the planned depth of a reserve or other pit, or is shown through operations at the time (such as the digging of said pit) the operator will be required to use above ground "pits" (ie. tanks) for the retention of drilling and produced fluids, this 34 930804 being done to assure the integrity of the contamination system and the protection of groundwater resources. K. Special Exceptions Special exceptions to these requirements may be requested by the Applicant. Requests for special exceptions for proposed facilities may be based on, but not be limited to, one or more of the following factors: 1. Topographic characteristics of the well site; 2. Duration of use of the facility; 3. Ownership status of adjacent and affected land; 4. Construction of adequate infrastructure to serve the project; and, 5. Planned replacement and upgrading of facility equipment. If the County finds that compliance with these regulations is not possible, a special exception may be granted for a period of time not to exceed six (6) months. Upon completion of the six-month period, the application shall receive additional review in accordance with these regulations. SECTION V. Existing Wells Any well which was in production immediately prior to the effective date of these regulations and any well in existence when, after the effective date of these regulations, may continue in production until economic production has ceased or until such well 35 930804 is abandoned. The operator of each such existing well must obtain from the County a certificate of compliance stating that to the extent possible the well complies with these regulations, within one hundred eighty (180) days after the effective date of these regulations or within one hundred eighty (180) days after the effective date of the designation of the lands on which the well site is located, whichever date is later, and such operator shall not be subject to the provisions of these regulations after the conclusion of such one hundred eighty (180) day period except for new operations commenced after the effective date hereof. SECTION VI. Building Permit/As-Built Plans A. In conjunction with the completion of a well or gathering system, County building permits shall be obtained for all above-ground structures. B. Within thirty (30) days after a well is in production, the operator shall tender to the surface Owner and County as-built plans/drawings which reflect the actual as-built well site, easements, gathering system, tanks and all other buildings or structures thereon. SECTION VII. Security Requirements A. Every well operator, gas or oil transmission pipeline company or other operator as defined in this ordinance shall be required to furnish the County as surety, an Irrevocable Letter of Credit, Surety Bond, or other 36 930804 security to the County at the time an application to drill an oil or gas well is submitted which shall be in an amount sufficient to cover all damages to the surface owner by the operator to crops, trees, shrubs, fences, roads, structures, improvements and livestock thereon caused by drilling new wells, redrilling and enhanced recovery operations and gathering lines, pipelines or gathering systems. The bond shall also cover subsequent damages to growing crops, trees shrubs, fences, roads, structures, improvements and livestock caused by subsequent production operations of the operator thereon. The bond shall also cover all acts of the operator that cause measurable damage to the productivity capacity of the soil. In addition, the bond shall compensate the operator for the land taken completely out of production by the exploration, production and development of the mineral estate. The amount of the letter of credit or bond for one well on non-irrigated land shall be no less than five thousand dollars ($5,000), and for one well on irrigated land the amount of the letter of credit or bond shall be no less than twenty thousand dollars ($20,000) . A well to be located within a residential, industrial, commercial or land development shall have a letter of credit or bond for one well no less than the amount of fifty thousand dollars ($50,000) . The bond shall be executed by a corporate surety duly authorized to conduct 37 930804 business in Colorado. The irrevocable letter of credit shall be issued by a bank or financial institution acceptable to the County Attorney. This bond or letter is necessary due to the unique character of Weld County's agricultural lands and is required in addition to that required by the O.G.C.C. The bond or letter does not apply to those items covered by the State bond. B. Release of the security shall be subject to verification by the County Attorney that all damages due the surface owner have been paid, that reclamation is complete, that revegetation necessary is acceptable and that all affected roads are in good condition, with no damages other than normal wear and tear. The operator shall request in writing the release of all security, at least thirty (30) days in advance of the anticipated date for the release of the security. Additional charges or conditions for release will be added to the above procedure in the event of any pollution during the operations conducted by the applicant. C. Protection of Ground Water. If the domestic, livestock, or irrigation water supply of any person who owns an interest in real property within one-half mile of where geophysical or seismograph activities are or have been conducted or within one mile of an oil or gas well site, has been disrupted or diminished in quality or quantity by the drilling operations and certified water quality 38 930894 and quantity test has been performed by the person who owns an interest in real property within one year preceding commencement of drilling operations, the person who owns an interest in the real property is entitled to recover from the bond, letter of credit or other security by the oil and gas operator the cost of repair, alteration, or construction that ensures the delivery to the surface owner the quality and quantity of water available to the surface owner prior to the commencement of drilling operations. 1. Any person who owns an interest in the real property who obtains all or a part of that person's wter supply for domestic, agricultural, industrial or other beneficial use from an underground source has a claim against the bond for relief; 2. Prima facie evidence of injury under this section is established by a showing that the oil and gas producer penetrated or disrupted an aquifer to cause a diminution in water quality or quantity within the distance empowered by this section. 3. A claim for damages under this section must be brought within six years after completion of the well or the time the claim might have been discovered in the reasonable exercise of 39 930894 diligence. 4 . No tract of land shall receive water contaminated by drilling operations on another tract of land, and the owner of such a tract so injured shall have a claim against the bond to recover damages. D. Bond Claim(s) . The surface owner shall submit all claims on the bond, letter of credit, or other security to the County no later than one year after completion, recompletion of completion of the pipeline or gathering system. The county or its designated agent shall notify the oil/gas or gathering system operator and the bonding company of the claim. It shall be the responsibility of the oil/gas operator or gathering system operator to answer such claim(s) within 30 days. If there is no answer, the bond shall be deemed forfeited. If the claim is disputed, the parties shall submit to contract arbitation to determine damages covered by the bond. See Section IV(II) (C) ( 17) . SECTION VIII. Insurance. Each applicant shall also submit, with its written application, a copy of a policy of insurance in the amount of one million dollars ($1,000,000.00) insuring the Applicant against all claims or causes of action made against the Applicant for damages to persons or property arising out of the drilling, maintenance, 40 930804 production and other work done with respect to such proposed oil and/or gas well and related facilities. Environmental damage shall not be exempted from this certificate of insurance. The surface owner shall be an additional named insured on this insurance policy. SECTION IX. Storage Tanks and Accessory Equipment A. Central Battery - Storage tanks and all other accessory equipment shall be located and installed on a well site in accord with Natural Fire Protection Association Pamphlet No. 30 unless otherwise approved as part of the application, and to the extent possible, shall be located within a central battery area which shall be located at least 300 feet from all buildings, rights-of-way and property lines. Unless otherwise approved, no more than two permanent storage tanks, none of which shall have a rated storage capacity in excess of 500 barrels, shall be installed on any one well-site. Storage tanks shall comply with Sections 79.501-79.510 and Sections 79. 1101- 79. 1111 of the Uniform Fire Code ( 1991) . Smoking shall be prohibited at wells and tank locations. B. Berminu/Containment - All accessory equipment, such as tanks, heaters and separators shall be contained within a berm. Such berm shall be designed to permit reasonable and adequate access and service. In all cases, the berm shall be so designed to be capable of impounding an 41 930804 amount of fluid equal to one hundred percent ( 100%) of the capacity of the tanks therein and shall be of a height and depth to mask said tanks from view. In sensitive areas, appropriate concrete or other barrier pads may be required by the County or its designee to insure no leakage onto the surface occurs. C. Fencing - All pumping systems, treaters and separators used in the operation of a completed well shall be enclosed on all sides by a security fence as defined above. Fencing for tanks shall be required on a case-by- case basis depending on location and whether the associated tank control valves are able to be securely locked. Tank control valves shall be locked when not in use by the operator or its agent. SECTION X. Environmental and Public Safety In addition to compliance with OGCC regulations, the following shall apply to operations on County lands: A. Signage - Each well shall have posted in a conspicuous place a legible sign of not less than two (2) square feet and not more than four (4) square feet bearing the name of the owner and operator, name and number of the lease and number of the well printed thereon. The sign shall warn of safety hazards to the public and shall be maintained on the premises from the time materials are delivered for drilling purposes until the well is 42 930804 properly abandoned. The number and location(s) of such signs shall be approved in advance by the County. B. Waste Disposal - Spreading of drilling mud for agricultural purposes shall not be permitted. Disposal of excess drilling muds shall be by transporting said mud to an appropriately licensed disposal facility. C. Water Contamination - No oil, gas or other deleterious substances or pollutants shall be permitted to alter or affect any surface or subsurface fresh waters in violation of any applicable federal, state, County or City ordinance or regulation. D. Maintenance of Structures and Equipment - All structures and equipment shall be maintained so as not to become a hazard or injurious to public health and safety. E. Underground Pipeline - All produced oil or gas shall be transported from the well to the on-site production facilities by buried pipeline the location of which shall be marked as directed by the surface owner. If required, appropriate easements must be secured. F. Air Emissions - Air contaminant emission sources shall comply with the permit and control provisions of the Colorado Air Quality control Program (Title 25, Article 7 , C.R.S. ) and the rules and regulations promulgated by the Colorado Air Quality Control Commission. If operations result in the generation of amounts of dust in excess of applicable standard set forth therein, along 43 930894 access routes and on the well site, the permittee shall institute adequate dust control measures. G. Rule 600-606 of the OGCC - All operators shall comply with Rules 600 through 606 of the OGCC as adopted on the effective date of these regulations, entitled "Safety Regulations. " Further, all operators shall comply with the "900 series" rules of the OGCC once adopted. Such regulations are incorporated herein in their entirety and adopted as part of these regulations as minimum standards subject to the following: 1. Rule 603 (q) . Such burning and burial of waste material shall be subject to prior written approval by the County Health Department and other City and County agencies as designated from time to time. 2. Rule 605. Seismic activity shall not occur unless and until approval is granted, after public notice and hearing, by the County Board. The County or designated agent may impose as stringent health and safety regulations as it deems necessary to protect the public health and safety as a condition to permitting seismic operations. Approval shall only be sought after operator has complied with the provisions of Section 335 of the Rules and Regulations of the OGCC. H. No Trespassing - A "No Trespassing Zone" will be established three hundred (300) feet from the work site 44 930804 and roped off with a watchperson assigned on a twenty- four (24) hour basis during drilling and fracturing. I. OGCC Reports - All reports filed by operator with the OGCC shall be simultaneously filed with the County and its designated agent. J. Sour Gas - If any sour gas is encountered the well shall immediately be shut-in and notice provided to the appropriate Fire Department and County staff which shall thereafter determine, in conjunction with the operator, appropriate safety procedures to undertake. SECTION XI. Site Restoration A. It shall be the responsiblity of the operator, upon abandonment, to restore all areas affected by operations to their original condition as soon as conditions permit immediately following the completion of well drilling or spudding operations, but no later than three months after said completion. Within thirty days after abandonment of the well, the drilling and/or production site shall be cleared of all oil and gas equipment and facilities. The Director of the OGCC and the County may extend the three month period due to conditions beyond the control of the operator. Upon any such extension, the operator shall notify the affected surface owner. Prior to any such extension, the Director of the OGCC or the County shall consult with the surface owner regarding any special 45 930804 circumstances which might affect reclamation. B. Prior to restoration, the well owner and operator undertaking such activity shall provide the County with written notice on intent to commence restoration, which shall be attended by a report ocncerning the results of the soil and ground water tests and evidence of approval by the OGCC showing compliance with state law and regulations applicable to such abandonment. A plan, including an anticipated time schedule, for restoration of the surface and all other affected lands shall be approved by the Director of the OGCC and the County. The plan will state the proposed program for surface restoration upon abandonment and for the period after drilling but prior to abandonment. The party responsbile for such reclamation shall be the operator. Not less than seven days before any reclamation is to take place, the operator shall notify the surface owner that such is to occur and when it is to occur. Restoration of the well site shall, at a minimum, include but not be limited to: 1. Removal of pumps, tanks, towers and other surface and any subsurface structures or fixtures. 2 . Removal of subsurface structures and fixtures shall be to a depth of at least four feet below grade, however, with respect to pipelines, flowlines or gathering systems, the surface owner shall conduct 46 930804 site inspection and approve the removal no later than ten ( 10) business days after receipt of written notice by the operator of the intent to commence restoration; or may recommend that properly abandoned pipelines remain buried in order to reduce surface disturbance. All buried steel lines shall be wrapped and/or coated and protected to minimize corrosion potential. a. When lines cross a cultivated field operator shall segregate topsoil while trenching flowlines, pipelines or gathering systems. Lines shall be backfilled and water packed prior to topsoil replacement. Efforts shall be made to run pipelines parallel to crop irrigation rows. 3. Removal of well casing to a point at least four feet below grade. The top ten feet of the remaining casing shall be filled with a cement plug conforming to industry standards. 4. Clean-up and removal of all foreign material and all hydrocarbon, excess salinity or other contaminated soil to a designated solid-hazardous waste disposal site is appropriate. 5. Both soil samples and ground water samples shall be obtained at operator's expense to determine the 47 930804 existence of any contaminants or hazardous materials in the soil or ground water. At a minimum, the soil sample shall consist of two test pits excavated to a depth of six feet with one test pit excavated adjacent to the tank battery and one test pit excavated adjacent to the well head. A total petroleum hydrocarbon (TPH) test shall be required for both test pits excavated on the well site. At a minimum, two water test wells shall be drilled at a location and depth as specified by the surface owner or County. In the event of discovery of petroleum hydrocarbons in excess of OGCC or any federal, state or other legislation or regulation maximum, the site shall be brought into compliance with all applicable federal, state laws and local regulations in accord with the directives issued by the County or its designated agent. 6. All holes, retaining pits, sludge pits, excavations and depressions shall be filled and packed after the completion and approval of the environmental samples. a. All drilling waste, except cuttings, shall be removed from the pits and disposed of properly (in accordance with 315 q. Drilling fluids will be removed from pit and disposed of properly as soon as 48 930804 possible. 7 . All holes, retaining pits, sludge pits, excavations and depressions shall be allowed to dry adequately and then will be filled and packed after the completion and approval of the environmental samples. Said earth material shall be of a quality at least as good as that native to the site, in accordance with the soil segregation plan, and be capable of sustaining vegetation. 8. The operator should assume the entire site has been compacted. Remove and return to original contour and compaction all necessary roads to well location and all unvegetated spots caused by the oil and gas operations. Ideally, the operator shall rip the soil to a depth of 1.5 times the depth of the compacted zone when the soil moisture is below 35% of field capacity, but in no case shall ripping be less than 18 inches. When soil moisture is higher than 35%, additional passes and followup may be needed to properly restore original soil conditions (tilth) . 9. Seedbed preparation. All excavated subsoil and topsoil shall be replaced in their original relative positions and contours prior to excavation and shall be tilled adequately to reestablish a proper seedbed. If perennial vegetation was 49 930804 present prior to the aforesaid operations and destroyed by such operations, such vegetation shall be reestablished by the operator to its original condition prior to such operations following USDA Soil Conservation Service standards and specifications for "range seeding" and "critical area treatment" or as per owner specifications. Operator shall coordinate with the Soil Conservation District and County weed and pest program to determine reseeding period, rate, species, and whether fertilizer or mulching will be required. Operator shall fence reseeded drill site until such time as revegetation is well established. The goal of such activities shall be to reclaim promptly the affected areas to their productivity level prior to the oil and gas operations. 10. To the extent feasible, initial reclamation activities shall commence immediately after completion of the drilling. Within thirty (30) days after abandonment of the well, the drilling and/or production site shall be cleared of all oil and gas equipment and facilities. Thereafter, such disturbed areas and all cultural resources shall be restored in accordance with a reclamation plan acceptable to the surface owner and the County. 50 930804 C. Prior to restoration, the well owner and operator undertaking such activity shall provide the surface owner with written notice of intent to commence restoration, which shall be attended by a report concerning the results of the soil and ground water tests and evidence of approval by the OGCC showing compliance with state law and regulations applicable to such abandonment. Restoration shall not commence until the surface owner has conducted a site inspection, which shall be conducted no later than ten ( 10) business days after receipt of written notice by the county of the intent to commence restoration. SECTION XII. Enforcement A. Unlawful to Construct or Install Unapproved Oil and Gas Facilities It is unlawful to construct, install, or cause to be constructed or installed, any oil and gas facility or gathering system facility within Weld County unless a Administrative Permit has been granted by the County Commissioners or their agents. Further, no person, firm, corporation, or legal entity which owns, leases, or operates an oil and gas well or well site shall construct, install, or use, or cause to be constructed, installed, or used, any oil and gas well or well site without first receiving approval from the County and a Notice to Proceed from the County. Any person violating 51 930804 these regulations shall be guilty of an offense pursuant to B. County Attorney May Institute Proceeding to Prevent Violation The County Attorney may commence a proceeding to prevent violation of these regulations, by serving a summons and complaint on any persons believed by an inspector or otherwise to be violating the same. Such citation shall be enforceable in County Court. The Court shall have the authority to impose the full fine and penalties set forth in the County Court and may, in addition, issue a cease and desist order to insure further compliance. C. Other Remedies in the Event of Pollution 1. In addition to enforcement in County Court, if a violation of the rules involving pollution occurs, or in the event that the County Attorney receives notice alleging that an owner is causing pollution, it shall notify the operator of such charge. The operator shall immediately cease all polluting activity. Within ten (10) days after receipt of such charge, the operator may elect to file a plan to prevent future pollution or if no election is made within the ten ( 10) day period, the County Attorney may proceed to enjoin such action or obtain other appropriate relief. 2 . In the event that any owner or operator after 52 930804 notice of an alleged pollution violation shall submit a plan to prevent any further pollution with the County Attorney. The County Attorney shall either approve such plan or set it for hearing before the County Commissioners. 3. The remedies set forth herein shall be without prejudice to any other remedies the county may have to abate nuisances, enforce statutes, ordinances, rules or regulations. D. Presentation of Evidence Full opportunity shall be afforded all interested parties at any hearing to present evidence and to cross-examine witnesses whether in quasi-judicial hearings in accord with County Code. In general, the rules of evidence shall be applicable, provided that such rules may be relaxed, where, by so doing, the ends of justice will be better served. No order shall be made which is not supported by competent legal evidence. It shall be the responsibility of the Applicant or operator to establish any affirmative defenses by credible evidence on the issues. E. Violations and Penalties Any person who violates any provision of these regulations, or any rule, regulation, or order issued hereunder shall be subject to penalties at law, ordinance or resolution. In addition, the County Attorney shall 53 930804 have an immediate and continuous right to compel the operator or owner to cease and desist the violation and terminate its operations. To the extent required, the Weld County Sheriff may enforce compliance with these regulations. F. Civil Action In case any building, oil and gas well, gathering system, pipeline or structure is proposed to be erected, constructed, reconstructed, altered, or used, or any land is or is proposed to be used, in violation of any provision of these regulations, the County Attorney, in addition to the other remedies provided by law, ordinance, or resolution, may institute an injunction, mandamus, abatement, or other appropriate action or proceeding to abate nuisances and/or to prevent, enjoin, abate, or remove such unlawful erection, construction, reconstruction, alteration, or use. In any action for legal or equitable relief, in addition to any other penalties or remedies which may be available, the County or any other party shall be entitled to recover any damages, costs of action, expert witness fees and reasonable attorney's fees incurred should the County prevail. G. False or Inaccurate Information The county may rescind approval of an extraction permit if it is determined at a public hearing, held on at least 54 930804 ten ( 10) days notice to the applicant, that the applicant provided information and/or documentation upon which approval was based, which the applicant, its agents, servants and employees, knew, or reasonably should have known, was false, misleading, deceptive, or inaccurate. The applicant shall be provided with an opportunity to be heard at the public meeting prior to the County Commissioner rendering their decision. SECTION XIII. Severability If any provision of these regulations is found by a court of competent jurisdiction to be invalid, the remaining provisions of these regulations will remain valid, it being the intent that the provisions of these regulations are severable. 55 930804 WELD COUNTY BOARD OF COUNTY COMMISSIONERS PUBLIC HEARING August 2, 1993 INTRODUCTION: Several oil companies which are actively engaged in oil and gas operations in Weld County submit these comments to the Board of County Commissioners of Weld County ("Board") for consideration by the Board as part of a public forum to be held on August 2, 1993. We understand that the forum has been convened by the Board to consider whether changes are needed in existing Weld County zoning regulations, building codes and health regulations that address oil and gas operations currently being conducted in the County. The oil companies that submit these comments are Amoco Production Company, Basin Exploration, Inc., Elk Exploration, Inc., North American Resources Company, Snyder Oil Company, Union Pacific Resources Company and Vessels Oil and Gas Company (the "Companies"). The comments are in three parts. Section 1 includes a proposal which the Companies make to the Board that a consortium of industry representatives and representatives for the County be organized and that the mission of the consortium be to work collaboratively to discuss the need for any changes or additions to the current County regulations. We believe that such a process would provide the Board with the benefit of the technical expertise of the industry to resolve any issues that the Board perceives may be raised from oil and gas development in the County. Section 2 includes a description of the structure of the Colorado Oil and Gas Conservation Commission ("COGCC") and a summary of the manner and extent to which the COGCC regulates and is proposing to regulate aspects of oil and gas operations.' Section 3 includes a summary of various legal authorities and arguments which the Companies wish the Board to consider that may limit the authority of the Board to regulate oil and gas exploration and development. The summary in Section 3 is presented in an abbreviated fashion and is by no means intended to be comprehensive or exhaustive or to preclude the Companies from providing the Board with additional authorities and arguments at a later time. 1. PROPOSAL FOR A CONSORTIUM The Companies understand that the Board may wish to review the regulations which the County now has in place and which affect oil and gas exploration and development. The impact of oil and gas operations on surface owners of properties with severed mineral interests, the 1 We also include a chart as Attachment 1 to these comments that references COGCC regulations on specific matters that we thought might be of interest to the Board. UNION\WELDNAG.FIN 0729931240 930804 impact of oil and gas operations on platted areas and on municipalities within the County and the compatibility of oil and gas operations with future land uses are all matters of concern to the Board and the residents of Weld County. These comments provide you with information on aspects of oil and gas development that we thought might be useful for you to consider as you review County regulations that affect oil and gas operations. They also outline the extent to which the COGCC has already acted by adopting regulations in the areas of reclamation, financial assurance, exploration and production wastes, pollution prevention, inspections, protection of aquifers, and public health and safety. We also want you to understand that the doctrine of preemption legally precludes you from adopting regulations that affect aspects of oil and gas development and that regulations that prevent lessees and mineral interest owners from developing the mineral estate could result in an unconstitutional "taking" for which the County may be required to compensate oil and gas lessees and owners as hereinafter discussed. We recognize that the County has legitimate land use concerns and that it has the power to regulate in specific instances. To address similar concerns held by municipalities, some of the Companies have recently worked cooperatively with the cities of Thornton and Broomfield to provide technical and legal expertise in the development by the cities of local ordinances designed to regulate oil and gas operations.2 In this way, the concerns both of the cities and of the oil companies were thoroughly discussed and ordinances were adopted which both sides could support. You may be aware that the cooperative exchange between the cities and industry representatives occurred at a time when the cities were considering the adoption of a model ordinance that had been drafted by the Colorado Municipal League and with which the industry had serious concerns. Oil and gas companies working collaboratively with the cities of Broomfield and Thornton is one of the latest examples in a history of cooperation between industry and regulatory bodies, including municipalities, the state legislature, Colorado Counties, Inc. and the COGCC. We urge the Board to continue this trend of cooperative effort and ask that the Board and the Companies take a similar approach in Weld County and that a consortium of representatives from industry and from the County meet to review the regulations which the County currently has in effect that apply to oil and gas development, to explore any concerns of the Board with respect to oil and gas operations in the County and to discuss any appropriate changes or additions to the current regulations.' 2 See Attachments 2 and 3 which are the ordinances adopted by the Cities of Thornton and Broomfield in consultation with certain oil companies. 3 These comments are submitted on behalf of all of the Companies. Individual companies may submit additional more specific comments that address their individual concerns. UNION\WELDWRG.FIN 0729931230 -2_ 930804 2. STATE REGULATION OF OIL AND GAS OPERATIONS The COGCC consists of volunteer commissioners appointed by the Governor, one from each Congressional District, together with a staff of paid employees under the leadership of a Director, a Deputy Director and a Supervising Engineer. Included in the staff are 6 field inspectors with offices throughout the State: 1 in the Durango area, 1 in the Grand Junction area, 3 in the eastern half of the State and one underground injection engineer who works the entire state. The COGCC undertakes comprehensive regulation of all oil and gas operations within the State of Colorado. The statutory charge to the COGCC is to prevent the waste of oil and gas, to protect each mineral owner's right to his or her fair share of the minerals and to protect the public health, safety and welfare from adverse impacts of oil and gas operations. In order to meet its statutory charge, the COGCC, among other things, regulates as follows: • the number, location and spacing of oil and gas wells; • the manner in which oil and gas wells and injection wells are drilled, equipped, cased and completed so as to protect potable aquifers; • the manner in which wells are drilled and operated so as to ensure a safe working environment and a safe environment for the public who are proximate to such wells; • the handling of exploration and production wastes generated by oil and gas operations and the construction and location of surface pits and other waste disposal facilities; • the distance between oil and gas wells and non-oil and gas surface structures, especially inhabited structures; • the underground disposal of water produced by oil and gas operations so as to protect potable aquifers and to prevent adverse surface impacts; • the manner in which wells and well sites are plugged, abandoned and reclaimed; and • the furnishing of absolute security by the operator to insure the availability of funds for proper plugging, abandonment and reclamation. A. Spacing Spacing is the determination by the COGCC of the maximum area that one well, producing from a particular formation, will efficiently and economically drain that formation. Once a spacing order has been issued as to a particular producing formation, then only one well may be drilled in each spacing unit for production from that formation. For example, in the UNION\WELDHRG.FIN 0729931230 -3- 930804 Denver Julesburg Basin, which underlies a good portion of Weld County, the J Sand has been spaced so that one well is allowed for each 320-acre tract with an optional additional well in the tract at the discretion of the operator. This means that up to one well for each quarter section (160 acres) may be drilled for J Sand production. Also in the DJ Basin, the OGCC has spaced the shallower Codell/Niobrara formation so that one well may be drilled in each 80-acre tract with an optional, additional well in each 80-acre tract at the discretion of the operator. Thus, under current orders for spacing in the J Sand and the Code11/Niobrara formations, the maximum number of wells for a given 160-acre tract is five, one well producing from the J Sand and four wells producing from the Codell/Niobrara formation. Because production from the Codell/Niobrara formation is cost-sensitive and in light of the high costs of drilling and equipping a single well bore, COGCC rules also allow for the commingling of production from the J Sand and the Codell/Niobrara in the same well bore. As a practical matter, this usually reduces the maximum number of wells in a 160-acre tract to four: three producing from the Codell/Niobrara formation only and one producing from both the J Sand and Codell/Niobrara formations. Spacing orders for referenced formations have been in effect for many years. In recent years, however, oil and gas market forces have made it economic to drill Codell/Niobrara wells with the result that in some areas one such well has been drilled in each 40-acre parcel. The COGCC, however, encourages commingling of production from different formations so as to maximize the use of particular well bores and to minimize surface impact as well as drilling costs. B. Well Location The COGCC requires that all wells be located no less than 1200 feet from another well producing from the same formation and no less than 600 feet from the mineral property line, except where topographical or other conditions justify a variance. Further, individual spacing orders require the location of a well within a drilling window around the center of each drill site spacing unit. Again, exceptions can be made for topographical reasons and sometimes for geologic reasons. As is discussed below, new COGCC rules further regulate well locations by requiring specific set backs from occupied structures. C. Trends in COGCC Regulation. Traditionally, the primary function of the COGCC has been to regulate the respective rights and obligations of competing mineral owners as they attempt to explore, develop and produce the oil and gas resources of the State. In recent years, however, and especially in the middle 1980's, the COGCC has assumed more responsibility in regulating oil and gas operations to protect the interests of local governments, the public and surface owners. Attachment 1 to these comments summarizes the aspects of oil and gas operations which are now regulated by the COGCC. The 600 Series Rules referred to in Attachment 1 are generally referred to as the "Safety Rules," and were enacted in the mid-1980's; however, as a result of initiatives agreed upon by a joint Colorado Counties, Inc.\Oil and Gas Industry Task Force, comprehensive UNION\WELDHRG.FIN 0729931230 -4- 930804 changes to the 600 Series were made, as well as many other changes throughout the COGCC regulations. The Task Force was moderated by the COGCC during 1991 and 1992 and resulted in the adoption of COGCC rules with respect to the following: • Provide a mechanism for participation by local governments in the location of wells and well facilities (See Rule 303); • Provide for special requirements and setbacks pertaining to oil and gas operations which occur in high density areas so that the 150 foot setback requirement (from buildings and occupied structures) is increased to 350 feet in these areas. (See Rule 603b.); • Regulate the noise emitted by and the aesthetic impacts of oil and gas operations (See 800 Series Rules); • More carefully define the signage which must accompany all oil and gas operations in the field See Rule 210); These rules were finalized and promulgated in May 1992 and have since been revised, most recently by the addition of the 900 Series Rules, which regulate the handling and disposal of exploration and production wastes. The COGCC is continuing its ongoing effort to protect non-oil and gas interests from the impact of oil and gas operations. It is currently engaged in formal rule making (final rules expected by mid-October 1993) which would codify the so-called "DJ Basin Policy" (See Attachment 4), a policy which was adopted by the COGCC as an interim/emergency measure in February 1993 to address the significant increase in oil and gas exploration and production occurring in the DJ Basin. The Companies understand that a COGCC representative will attend the Weld County Commissioners forum and will, among other things, explain the status of regulations currently being considered by the COGCC, especially as they relate to the DJ Basin Policy. The significance of the Policy, however, whether it will become codified on a statewide basis or be limited in its application to the Denver Julesburg Basin, remains as follows: • No heavy equipment activity can occur at an oil and gas well site unless and until the surface owner has received at least 30 days' notice of such proposed activity and has been given the opportunity to consult with the mineral owner/lessee in the location of the surface activities and facilities necessary for the proposed oil and gas operations. • The surface owner must also be given an opportunity to consult with the oil and gas operator concerning compensation to be paid for certain surface damages caused by oil and gas operations. UNION\WELDNRG.FIN 0729931230 -5- 930804 • Soil protection and site reclamation procedures are a recognized part of oil and gas operations and those procedures include segregation and stockpiling of topsoil, seed bed preparation and revegetation maintenance. As a part of formal rule making, the COGCC intends to also strengthen its enforcement and penalty procedures. For example, the COGCC has recently announced that it is investigating the amount which it currently requires companies to post as security to secure the plugging and abandonment and the reclamation obligations at abandoned sites. Questions to be answered are whether the salvage value of abandoned equipment and casing is sufficient to meet the operator's financial obligations and whether the State has a prior lien on the equipment and casing. An analysis of currently effective and proposed COGCC regulations indicates that the Commission is engaged in comprehensive regulation of the oil and gas industry at all levels and intends not merely to preempt, but also to fully regulate with the result that further regulation by local government entities either may not be necessary or should be greatly reduced. 3. LIMITATIONS ON THE AUTHORITY OF THE BOARD TO REGULATE: A. Preemption: The issue of whether the Colorado Oil and Gas Conservation Act ("Act") preempts the regulation of oil and gas operations by local governments was recently decided, at least, in part, by the Colorado Supreme Court in the Voss case involving a home rule city (Greeley, Colorado in Weld County) and in the Bowen/Edwards case involving proposed regulation by LaPlata County in southwest Colorado.4 In the Voss case, the Supreme Court held that a home rule city may enact land use regulations applicable to various aspects of oil and gas development and operations within the city, but only if such regulations do not frustrate and can be harmonized with the development and production of oil and gas in a manner consistent with the goals of maximizing production as set forth in the Act. In the Bowen/Edwards case, the issue was whether the Act preempted a county ordinance regulating oil and gas development activities. The Court held that there is a state interest in uniform regulation of these matters, but that there is not necessarily an implied legislative intent to preempt all aspects of a county's statutory authority to regulate land use within its jurisdiction. ° Lundvall Bros. , Inc. v. Voss, 812 P.2d 693 (16 Colo. App. 1990) , aff'd. Voss v. Lundvall Bros. , Inc. , 831 P.2d 1061 (Colo. 1992) ; Bowen/Edwards Assoc. , Inc. v. Board of County Comm'rs. , 812 P.2d 656 (Colo. App. 1990) , aff'd in part and rev'd in part, 831 P.2d 1045 (Colo. 1992) . UNION\WELDHAG.FIN 0729931230 -6 930804 The Court was not precise in either case in articulating the extent to which local land use regulations could apply to oil and gas activities,5 and it did not in either case establish precise guidelines to determine questions of preemption. It is clear from the cases, however, that there can be no local regulation of the technical aspects of oil and gas operations since the Court in Bowen/Edwards expressly approved such a reading of an earlier case, Obome v. Board of County Commissioners, 764 P.2d 397 (Colo. App. 1981). See Bowen/Edwards, supra, at 1060 fn 7. The Court in Obome struck down technical requirements that Douglas County sought to impose on oil and gas operators including, regulations with respect to the construction of a dirt berm for sediment ponds; land reclamation requirements; a bond to cover reclamation; protection of water supplies and the disposal of liquid wastes; assurances regarding surface spills; a fire protection plan; cement casing requirements; independent monitoring and technical advice requirements; and protection of underground water supplies. When the local entity attempts to regulate the non-technical aspects of oil and gas operations, the question of whether the local regulation is preempted by state law or regulation is not as clear and generally concerns the issue of whether a local entity has the authority to 1) require a different and/or more stringent standard than the COGCC standard; 2) adopt the same standard that the COGCC has adopted and thereby take the position that it has the right to enforce the standard; and 3) set standards for matters which are within the authority of the COGCC, but upon which the COGCC has not acted. We have reviewed cases that address issues of preemption, and the legal standards and case law are discussed at length in Attachment 5 to this document. A summary of the preemption standards which we believe apply to local regulations follows: Summary of Preemption Standards: a. With respect to technical matters6, local regulation will be preempted in all aspects 1) even where there is no state regulation on point and 2) where the local regulation is identical to that of the state. b. With respect to matters of safety, reclamation and aesthetics, local regulation will be preempted to the extent that it conflicts with or goes farther than the state statute or regulation and thereby forbids or burdens what the state has authorized. 5 Note that the facts on which these decisions were based are facts which predate the adoption by the COGCC of its May 1992 comprehensive regulations and rules which address local concerns, including pre- drilling notification to consult with local governmental designees as well as procedures for dealing with exploration and production wastes. With the adoption of these rules, the COGCC has greatly increased its occupation of the field of oil and gas regulation. 6 Technical matters includes reclamation, bonding, protection of water supplies, disposal of wastes, cement casing, and development, maintenance and production operations, among other matters. UNION\WELtHRG.FIN 0729931230 -7 9308804 c. With respect to matters of safety, reclamation and aesthetics, local regulation will not be preempted so long as state law or regulation has either 1) not addressed the subject; or 2) the local ordinance is identical to the state regulation and the local regulation does not frustrate the state purpose. d. With respect to well location, local regulation will be preempted to the extent that it would prohibit the drilling of a well at a legal, COGCC approved, location. e. With respect to areas in which a local regulation might be upheld if it is identical to a state regulation, the local regulation will be in conflict with the state regulation to the extent that the two governmental entities would not enforce or interpret such a regulation in the same manner and pursuant to the same criteria.' Because the preemption doctrine substantially limits the area in which a local entity can regulate oil and gas activity, the local entity is similarly limited in what it has the authority to require and review. For example, the County requires that an oil and gas operator obtain a special use permit to drill a well in certain zoning districts. We believe that the County is limited in granting or denying a special use permit at least as follows: • The scope of review for a special use permit must be limited to an inquiry into only those matters which the County can validly regulate. • Compliance by an operator with requirements that the County imposes for an operator to obtain a special use permit can make the drilling of certain wells economically prohibitive such that it can be argued that such requirements on their face materially hinder the State in achieving its interest to foster the development and production of oil and gas within the State, a result which is disapproved in Bowen/Edwards, supra, and Lundvall, supra. • Commission Rule 303 provides that, as a general rule, a permit to drill is void after 120 days from the date it is approved. A special use permit process which would extend beyond the 120 day drilling window (thus effectively denying the operator the right to use the state permit) may be void as being in conflict with and thus preempted by the state drilling regulation. 7 Certain local provisions that mirror state statutes or regulations may not be preempted per se; however, such provisions may be preempted to the extent that they are applied or interpreted by the local entity in a way which would be inconsistent with the manner in which the state would enforce or interpret the regulation. For example, the local entity on the one hand and the COGCC on the other might not enforce the identical regulation in the same way with the result that the local entity would deny or shut down operations which a state inspector might find to be in compliance. UNION\WELDNEG.FIN 0729931230 -8- 930804 In summary, the Bowen/Edwards and Voss cases allow local jurisdictions to regulate utilizing the authority conferred upon them by statute to regulate land uses; however, the land use authority of the County is circumscribed to the extent that the exercise of that authority by the County frustrates the goals in the Act, including encouraging efficient and economic production of oil and gas. Traditional areas of land use would include matters of noise and aesthetics, wildlife impact mitigation, floodplains and geologic hazards, and access and use of County roads. B. Regulatory Taking: Regulations that allow the County to deny a special use permit may constitute a regulatory taking, especially where the operator is deprived of "all economically viable use of its land" within the meaning of the recently decided United States Supreme Court case of Lucas v. South Carolina Coastal Council, 112 S.Ct. 2886 (1992). A County Court in Michigan decided a case in September 1991 which is popularly known in that state as the "Nordhouse Dunes" case in a manner that closely parallels the Lucas decision. In the Nordhouse Dunes case, the Miller Brothers had taken oil and gas leases which covered portions of the Nordhouse Dunes area in Western Michigan. After review by the State, public hearings, and the draft of an environmental impact statement, the director of the Department of Natural Resources for the State issued an order which prohibited all oil and gas drilling in the Dunes area. The Miller Brothers and the mineral interest owners filed complaints against the State alleging inverse condemnation, and the County Court thereafter awarded a money judgment of $71 million plus interest. The case was appealed by the State of Michigan to the Michigan Court of Appeals, See Miller Brothers v. State of Michigan, Docket #150573. Oral argument in the case is scheduled in August 1993. (See Attachment 6 for newspaper articles regarding the case.) In other cases, the United States Claims Court and the Federal Circuit Courts have awarded compensation or affirmed decisions to award compensation to energy and mining companies based upon claims by the companies that their mineral properties had been taken by the government without just compensation because of government regulations which disallowed the development by the companies of their mineral rights. See for example Whitney Benefits, Inc. v. United States, 18 Cl.Ct. 394 (1989), corrected, 20 Cl. Ct. 324 (1990), aff'd., 926 F.2d 1169 (Fed.Cir.), cert. denied, 112 S.Ct. 406 (1991); Florida Rock Industries v. United States, 21 Cl. Ct. 161 (1990); United Nuclear Corporation v. United States, 17 Cl. Ct. 768, aff'd., 912 F.2d 1432 (1990). In the Florida Rock Industries case, for example, the Claims Court awarded Florida Rock over $1 million in compensation based on a takings claim that the Army Corps of Engineers deprived Florida Rock of almost all economically viable use of its property when the Corps denied Florida Rock a permit to discharge dredged materials into waters regulated by the Clean Water Act. UNION\WELDHRG.FIN 0729931230 -9 930804 The Court in the United Nuclear Corporation case specifically found that a leasehold interest in minerals could be the subject of a "taking" within the meaning of the Fifth Amendment. The Court found that United's mining plan to mine uranium pursuant to two leases which the Navaho Tribal Council had issued to United satisfied the regulations of the United States Geological Survey as well as the necessary environmental impact regulations and that United had spent substantial sums of money in expectation of mining the leases. The Court held that, when the Secretary of the Interior refused to allow United to mine the leases without the approval of the Navaho Tribal Council (which approval was not forthcoming prior to the expiration of the leases), the leasehold interests held by United had been taken and the government was required to pay United just compensation. Note that the cases we cite do not stand for the proposition that a governmental entity cannot prevent the exploration and development of the mineral estate. The cases do hold, however, that in the event that a governmental entity chooses to regulate, regulations which prevent the exploration and development of the mineral estate may amount to a "taking" such that the governmental entity will be liable to the mineral interest owners and lessees for either the fair market value of the resource which cannot be developed or the difference between the fair market value of the property interest before and after the government action. C. Impairment of Vested Property and Contractual Rights: Colorado case law is clear that the mineral owner (or lessee) owns the dominant estate and has the right of reasonable access to and use of the surface estate to extract minerals. See Frankfort Oil Company v. Abrams, 413 P.2d 190 (Cob. 1966). Regulations that purport to reverse this basic tenet of Colorado property law, and thereby deprive the mineral interest owner of its vested property and contractual rights, may be violative of federal and state constitutional provisions. Further, retroactive application of new regulations to existing oil and gas facilities is prohibited. A general rule of law is that a zoning ordinance that applies retroactively to abrogate valid existing uses and thereby impairs vested property rights will not be upheld. See for example, City and County of Denver v. Denver Buick. Inc., 141 Cob. 121, 347 P.2d 919 (1960); 83 AmJur 2d Zoning § 624. 4. SELF EVALUATION OF NOISE ISSUES As some of you may be aware, the Broomfield City Council received complaints about noise which was caused by the drilling operations of Gerrity Oil & Gas or its contractor with respect to a well that Gerrity was drilling a few weeks ago just outside the Broomfield City limit. In response to the concerns that were raised by representatives of Broomfield, the Companies have commissioned Insurance Management Associates, an insurance company that is familiar with oil and gas operations, to perform a noise study. The study is being performed in consultation with representatives from Broomfield. The scope of the noise study includes the UNION\WELDHRG.FIN 0729931240 -10- 930804 testing of decibel readings at several drillsites for several types of operations such as braking and pipe handling operations, changing drill bits and noise emissions from various types of motors. Tests will be performed at drillsites which are generally located in the D. J. Basin in West Weld County, West Adams County and East Boulder County. Tests will be performed at meaningful distances from the source of the noise such as within the range of where members of the public and occupied buildings would be located with respect to the drillsites. We hope to use the results of the noise study to consult with engineers to come up with alternatives that are technically feasible and that will mitigate adverse noise impacts from drilling operations in urbanized areas. We expect that the study will be used in conjunction with the existing Broomfield ordinance so that the Broomfield City Council will have a variety of options to deal with noise from drilling operations in noise-sensitive areas. UNION\WELDHRG.FIN - 0729931240 -11- 930804 COGCC REGULATIONS Attachment 1 SUBJECT OGCC RULE Application for Permit; 303; 315; 602.h Submission of Plat and Surface Use Information Safety Regulations 600 Series Well and Facilities 316; 603; 604; 602.h. Locations and setbacks Visual Impacts 802, 804 and 805 Aquifer Protection 124, 125, 209, 322A; 324 E&P Waste Handling and 126 through 133; 603.g; 900 Series Disposal High Density Areas 134; 603.b Plugging and 304.b., 317 Abandonment Noise Abatement 803 Wildlife Impacts None; See Federal Endangered Species Act/Colorado Division of Wildlife regulations Sign Standards 210 Site Restoration 304.b.; 315.q. and r.; 317.a. and b.; D-J Policy; 900 Series Bonding 304; D. J. Policy Roads and Access Roads 333, 802.b. and c. Seismic Operations 335; 605 Surface owners issues 304.b. 315.e.; D. J. Policy Local government notice 135, 136; 214; 303.e.; 303.j. 310.g; 602.h.; 802.c.; D. J. Policy Flood plain areas and 603.h. areas of geological hazards 930804 ATTACHMENT C. D. No. 93-083 ORDINANCE NO.: 2255 INTRODUCED BY: Norber¢ AN ORDINANCE AMENDING CHAPTER 58 OF THE CODE OF THE CITY OF THORNTON, COLORADO, ADDING REGULATIONS PERTAINING TO OIL AND GAS FACILITY DEVELOPMENT, AND REGULATION OF USES ADJACENT TO OIL AND GAS WELLS. WHEREAS, the City-of Thornton Development Code is codified as Chapter 58 of the City Code; and WHEREAS, it is recognized that under Colorado law the surface and mineral estates are separate and distinct interests in land and that one may be severed from the other and that owners of subsurface mineral interests have certain legal rights and privileges, including the right to use that part of the surface estate reasonably required to extract and develop their subsurface mineral interests, subject to compliance with the provisions of these regulations and any other applicable statutory and regulatory requirements; and WHEREAS, the State of Colorado has a recognized interest in fostering the efficient development, production and utilization of oil and gas resources, and particularly in the prevention of waste and protection of the correlative rights of common source owners and producers to a fair and equitable share of production profits; and WHEREAS, owners of the surface estate have certain legal rights and privileges, including the right to have the mineral estate developed in a reasonable manner; and WHEREAS, the exercise of zoning authority for the purpose of regulating land use within the City, a home rule municipality, is a matter of local concern and local governments have a recognized, traditional authority and responsibility to regulate land use within their jurisdiction, including use for oil and gas development; and WHEREAS, the exercise of police powers for the purpose of protecting the health, safety, and welfare of persons and property within the City, a home rule municipality, is a matter of local concern and local governments have a traditional authority and responsibility to protect persons and property within their jurisdiction by regulation activities, including use for oil and gas development and WHEREAS, oil and gas resources are located under a portion of the City and its growth area, and such resources are being explored by mineral owners; and the 930804 -2- C.D. No. 93-083 City wishes to facilitate the removal of needed energy resources from land located within the corporate limits of the City in a manner which minimizes adverse land use impacts; and WHEREAS, Chapter 58 of the Thornton City Code permits the drilling and production of oil and gas wells as a land use within the City subject to certain conditions; and WHEREAS, the City wishes to allow said resource removal while protecting the safety of persons and use of property located within the corporate limits of the City; and WHEREAS, the City has studied the effects of oil and gas drilling and production on adjacent residential and businesses uses; and WHEREAS, it is necessary to amend Chapter 58 regarding the development standards for oil and gas exploration, drilling, and production to establish a reasonable and fair balance between the interests of both existing and proposed residential and commercial development and the growth of oil and gas production; and WHEREAS, it is necessary to amend Chapter 58 of the Thornton City Code to allow for the adoption of regulations which are consistent with State laws and regulations, and which provide adequate performance standards for oil and gas development within the corporate limits of the City; and WHEREAS, amending Chapter 58 of the Thornton City Code provides the City with comprehensive regulations which allow for the safe extraction of energy resources while ensuring the compatible coexistence of extraction activities and urbanized development within the City; and WHEREAS, in 1992 there were approximately 12,000 wells in the State with approximately 1,000 in Adams County and 5,000 in Weld County; so it is necessary to provide further regulations in Chapter 58 in a manner consistent with state laws and regulations; and WHEREAS, it is the City's intent to provide fair, efficient, and speedy enforcement of any violations of Chapter 58 in the City's municipal court and WHEREAS, it is the intent of the City that to the extent a matter is not coverer in this Ordinance, the general provisions of the Development Code shall apply; and 930804 -3- C.D. No. 93-083 WHEREAS, these regulations may be amended from time to time based on amendments that may occur in the future to the Act and WHEREAS, as a home rule municipality, the City can regulate in areas of mixed concern in the same manner as the State as long as no conflict exists. These powers are granted the City through the Colorado Constitution. None of the amendments herein conflict with state purposes, and it is the declared intent of the City not to conflict with the Oil and Gas Conservation Act or any regulations of the Oil and Gas Conservation Commission. These amendments reenforce the provisions of the Act and Regulations and do not conflict with any provisions therein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THORNTON, COLORADO, AS FOLLOWS: 1. Section 58-1.105 Definitions, is hereby amended by the addition of the following capitalized definitions to be placed alphabetically in said Section: ACCESSORY EQUIPMENT SHALL MEAN ANY EQUIPMENT WHICH IS INTEGRAL TO THE PRODUCTION AND OPERATION OF AN OIL OR GAS WELL, INCLUDING BUT NOT LIMITED TO, TANKS, TREATERS, SEPARATORS AND PRODUCTION PITS. ACT MEANS THE OIL AND GAS CONSERVATION ACT OF THE STATE OF COLORADO, AS FROM TIME TO TIME AMENDED. BERM MEANS AN EARTHEN BARRIER OF COMPACTED SOILS PREVENTING THE PASSAGE OF LIQUID MATERIALS, OR PROVIDING SCREENING FROM ADJACENT USES, AS MAY BE SPECIFIED IN AN APPLICABLE DEVELOPMENT STANDARD. DESIGNA i Ell AGENT, MEANS THE DESIGNATED REPRESENTATIVE OF ANY PRODUCER, OPERATOR, TRANSPORTER, REFINER, GASOLINE OR OTHER EXTRACTION PLANT OPERATOR OR OWNER DEVELOPING AREA MEANS AN AREA DETERMINED BY THE PLANNING COMMISSION TO CONTAIN AN AVERAGE RESIDENTIAL DENSITY LESS THAN ONE DWELLING UNIT PER 2.5 ACRES OR HAS LESS THAN AN AVERAGE OF 50,000 SQUARE i tr i OF GROSS FLOOR AREA DEVOTED TO NON-RESIDENTIAL STRUCTURES WHICH REQUIRE A CERTIFICATE OF OCCUPANCY. • GAS MEANS ALL NATURAL GASES AND ALL HYDROCARBONS NOT DEFINED IN THIS SECTION AS OIL. 930894 • -4- C.D. No. 93-083 INIECTION WELL MEANS ANY HOLE DRILLED INTO THE EARTH INTO WHICH FLUIDS ARE INJEC.t all FOR THE PURPOSES OF SECONDARY RECOVERY, STORAGE, OR DISPOSAL, PURSUANT TO AUTHORIZATIONS GRANTED BY THE OGCC. LOCAL GOVERNMENT DESIGNEE MEANS THE DIRECTOR WHO RECEIVES, ON BEHALF OF THE an, COPIES OF ALL DOCUMENTS REQUIRED OR REQUESTED TO BE FILED WITH THE LOCAL GOVERNMENT DESIGNEE PURSUANT TO THE OGCC REGULATIONS AND THESE RULES. OGCC MEANS THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO. OIL MEANS CRUDE Ph TROLEUM OIL AND ANY OTHER HYDROCARBONS, REGARDLESS OF GRAVITIES, WHICH ARE PRODUCED AT THE WELL IN LIQUID FORM BY ORDINARY PRODUCTION METHODS, AND WHICH ARE NOT THE RESULT OF CONDENSATION OF GAS BEFORE OR AFTER IT LEAVES THE RESERVOIR OIL AND GAS MEANS OIL OR GAS OR BOTH OIL AND GAS. OIL AND GAS WELL MEANS A HOLE DRILLED INTO THE EARTH FOR THE PURPOSE OF EXPLORING FOR OR EXTRACTING OIL, GAS, OR OTHER HYDROCARBON SUBSTANCES. OPERATING PLAN MEANS A GENERAL DESCRIPTION OF AN OIL OR GAS WELL FACILITY IDENTIFYING PURPOSE, USE, TYPICAL STAFFING PATTERN, SEASONAL OR PERIODIC CONSIDERATIONS, ROUTINE HOURS OF OPERATION, SOURCE OF SERVICES/INFRASTRUCTURE, AND ANY OTHER INFORMATION RELATED TO REGULAR FUNCTIONING OF THAT FACILITY. OPERATOR MEANS THE PERSON DESIGNATED AS OPERATOR AND NAMED IN OGCC FORM 2 OR A SUBSEQUENTLY FILED OGCC FORM 10. OWNER MEANS ANY PERSON WITH A WORKING INTEREST OWNERSHIP IN THE OIL AND GAS OR LEASEHOLD INTEREST THEREIN. PRODUCTION PITS MEANS THOSE PITS USED FOR INITIAL SETTLING, TEMPORARY STORAGE, OR DISPOSAL OF PRODUCED WATER BY PERMEATION OR EVAPORATION AFTER DRILLING AND INITIAL COMPLETION OF THE WELL. 930804 -5- C.D. No. 93-083 PRODUCTION SITE MEANS THAT SURFACE AREA IMMEDIATELY SURROUNDING PROPOSED OR EXISTING PRODUCTION PITS, OR OTHER ACCESSORY EQUIPMENT NECESSARY FOR OIL AND GAS PRODUCTION ACTIVITIES, EXCLUSIVE OF TRANSMISSION AND GATHERING PIPELINES. SALES AND USE TAX IS THE TAX PAID BY A CONSUMER FOR USING, STORING, DISTRIBUTING OR OTHERWISE CONSUMING TANGIBLE PERSONAL PROPERTY OR TAXABLE SERVICES INSIDE THE CITY. TANK MEANS ANY CONTAINER USED IN CONJUNCTION WITH THE PRODUCTION OR STORAGE OF PETROLEUM AND HYDROCARBON SUBSTANCES, STORED AT OR NEAR ATMOSPHERIC PRESSURE. TREATMENT FACILITIES MEANS ANY PLANT, EQUIPMENT OR OTHER WORKS USED FOR THE PURPOSE OF TREATING, SEPARATING OR STABILIZING ANY SUBSTANCE PRODUCED FROM A WELL. TWINNING MEANS THE DRILLING OF A WELL ADJACENT TO OR NEAR AN EXISTING WELL BORE WHEN THE SAID EXISTING WELL CANNOT BE DRILLED TO THE OBJECTIVE DEPTH AND/OR PRODUCED DUE TO AN ENGINEERING PROBLEM SUCH AS COLLAPSED CASING OR FORMATION DAMAGE. URBANIZED AREA MEANS AN AREA DETERMINED BY THE PLANNING COMMISSION TO CONTAIN AN AVERAGE RESIDENTIAL DENSITY EQUAL TO OR GREATER THAN ONE DWELLING UNIT PER 2.5 ACRES OR HAS AN AVERAGE OF 50,000 SQUARE FEET OR GREATER OF GROSS FLOOR AREA DEVOTED TO NON-RESIDENTIAL STRUCTURES. WELL MEANS AN OIL AND GAS WELL OR AN INJECTION WELL. WELL 511h MEANS THAT SURFACE AREA OF A PROPOSED OR EXISTING WELL OR WELLS, AND ITS PUMPING SYSTEMS. 2. Section 58-1.105 Definitions, the definition of Applicant is hereby amended by the addition of the capitalized words to read as follows: Applicant means the owner of land, OR THE OWNER OF SUBSURFACE OIL AND GAS OR LEASEHOLD INTEREST THEREIN, or the applicant's authorized representative, or the City or other quasi-governmental entity that is proposing an action requiring review and approval by one or more of the sections in this Chapter. An applicant may subsequently become the 930804 -6- C.D. No. 93-083 developer once approval is granted, and in this case the terms shall be interchangeable. 3. Sections 58-2.111(b)(2), 58-2.112(b)(2), 58-2.113(b)(2), 58-2.114(b)(2), 58- 2.115(b)(2), 58-2.116(b)(2), 58-2.121(b)(2), 58-2.122(b)(2), 58-2.123(b)(2), 58- 2.124(b)(2), 58-2.125(b)(2), 58-2.126(b)(2) are hereby amended by the addition of the capitalized words and deletion of the stricken words to read as follows: (b) Main Uses Permitted (2) Industrial Uses • Oil and Cac Well Silk. OR PRODUCTION SITE (SUP). 4. Section 58-2.203 Industrial Uses, paragraph (b) Listed Uses, item (4) Oil and Gas Wells, title is hereby amended by the deletion of the stricken words and addition of the capitalized words to read as follows: (4) Oil and Cac Well SITES OR PRODUCTION SITES 5. Section 58-2.203 Industrial Uses, paragraph (b) Listed Uses, item (4) Oil and Gas Wells, (B) Districts Permitted is hereby replaced by the addition of the capitalized words to read as follows: (B) Districts Permitted: By SUP only, in all districts. (B) DISTRICTS PERMITTED: BY RIGHT IN ALL DISTRICTS. 6. Section 58-2.203 Industrial Uses, paragraph (b), item (4)(E) Additional Provisions (ii), is hereby replaced by the addition of the capitalized words to read as follows: (ii) The applicant for a SUP to operate an oil or gas well shall submit to the Director a copy of the master plan and site plan, operations plan, and restoration plan that have met State requirements. (ii) ADDITIONAL PROVISIONS FOR THE DEVELOPMENT OF OIL AND GAS WELL AND INJECTION WELLS SITES OR PRODUCTION SITES ARE CONTAINED N ARTICLE X OF THIS CHAPTER 7. That section 58-2.214, Use Charts, is amended by the deletion of all "S" references under the Oil and Cac Well SITE OR PRODUCTION Silk. line and 930Aoa -7- C.D. No. 93-083 addition of "R" as the type of use in every zoning district, thus making Oil and Gas Wells and Injection Wells a use by right in every zoning district. 8. Section 58-3.103 Applicability, paragraph (b), item (5) is hereby amended by the addition of the capitalized words to read as follows: (5) WHEN SUBSURFACE OIL AND GAS MINERAL RIGHTS ARE SOLD OR LEASED, OR WHEN A DEVELOPMENT PERMIT IS OBTAINED UNDER SECTION 58-10.103. 9 Section 58-3.205 Submission Requirements, paragraph (a), item (1) is hereby amended by the addition of the capitalized words to read as follows: (E) COPIES OF ANY MINERAL LEASES. 10. . That section 58-6.201(c)(2) is hereby amended by the addition of item (E) in capitalized words to read as follows: (E) AREAS WHERE WELL SITES AND PRODUCTION SITES ARE LOCATED OR PROPOSED TO BE LOCATED. THE RESTRICA Ell LOT OR TRACT SHALL BE OF AN ADEQUATE SIZE TO ALLOW A rIDVIMUM SEPARATION OF 200 FEET BETWEEN THE WELL SITE OR PRODUCTION SITE AND ANY NEAREST EXISTING OR PROPOSED PROPERTY LINE. THE MINIIvfUM SEPARATION OF 200 FEET MAY BE INCREASED AT THE TIME OF SUBDIVISION APPROVAL BASED ON THE FOLLOWING CRITERIA: (1) PROPOSED DWELLING UNIT DENSITY OR PROPOSED FLOOR AREA RATIO; (2) TOTAL CAPACITY OF ALL PRODUCTION TANKS; (3) TOPOGRAPHY; (4) CAPABILITY OF REDEVELOPMENT OF THE RESTRICTED LOT OR TRACT FOR FUTURE RESIDENTIAL OR NONRESIDENTIAL DEVELOPMENT IN COMPLIANCE WITH ARTICLE VI. THE SIZE REQUIRED FOR THE RESTRIL I hU LOT OR TRACT SHALL BE DETERMINED AT THE TIME OF SUBDIVISION APPROVAL. 930804 -8- C.D. No. 93-083 11. That section 58-6.202(a)(5) is hereby amended by the addition of item (B) in capitalized words to read as follows: (B) THE CITY MAY REQUIRE FENCING AROUND RESTRICTED LOTS OR TRACTS WHERE WELL SITES AND PRODUCTION SITES ARE LOCATED. 12. That section 58-6.202(a) is hereby amended by the addition of subsection (6) in capitalized words to read as follows: (6) LANDSCAPING (A) THE CITY MAY REQUIRE LANDSCAPING AROUND FENCING OF RESTRIC.i ED LOTS OR TRACTS WHERE WELL Sl i tS AND PRODUCTION SITES ARE LOCATED. ANY REQUIRED LANDSCAPING SHALL CONFORM TO THE LANDSCAPING CRITERIA CONTAINED IN SECTION 58- 10.307. 13. That section 58-6.202(b)(4) is hereby amended by the addition of the following capitalized words to read as follows: (4) When a residential subdivision borders a railroad or transit right-of- way, freeway or arterial street, WELL SITE OR PRODUCTION SITE, the subdivision design shall include adequate provisions for noise reduction, safety, AND VISUAL SCREENING. Parallel streets, fences, landscaped buffer areas, berms, and sound walls, among other measure: may be required. 14. Chapter 58 of the Code of the City of Thornton is hereby amended to add Article X, which reads as follows: 930804 -9- C.D. No. 93-083 ARTICLE X OIL AND GAS FACILITY REGULATIONS DIVISION 58-10.100 GENERAL PROVISIONS SECTION 58-10.101 PURPOSE: THE COUNCIL FINDS AND DECLARES THAT: (a) THE CITY, PURSUANT TO ITS POWER TO PROTECT AND PROMOTE THE HEALTH, SAFETY, AND GENERAL WELFARE OF THE PRESENT AND FUTURE RESIDENTS OF THE CITY, IS ENACTING THESE REGULATIONS AND MAY ENFORCE THESE WELL AND PRODUCTION SITE REGULATIONS AS PROVIDED HEREIN. IT IS THE CITY'S INTENT BY ENACTING THESE REGULATIONS TO FACILITATE THE DEVELOPMENT OF OIL AND GAS RESOURCES WITHIN THE THORNTON CORPORATE LIMITS WHILE MITIGATING POTENTIAL LAND USE CONFLICTS BETWEEN SUCH DEVELOPMENT AND EXISTING, AS WELL AS PLANNED, LAND USES. THE CITY HAS A RECOGNIZED, TRADITIONAL AUTHORITY AND RESPONSIBILITY TO REGULATE LAND USE WITHIN ITS JURISDICTION, INCLUDING USE FOR OIL AND GAS DRILLING. THESE REGULATIONS ARE INTENDED AS AN EXERCISE OF THIS LAND USE AUTHORITY AND THE POLICE POWER. SHOULD IT BE ESTABLISHED BY COMPETENT EVIDENCE THAT A PROPOSE OIL OR GAS FACILITY DOES NOT MEET THESE REGULATIONS, A DEVELOPMENT PERMIT FOR SUCH A FACILITY MAY BE DENIED; AND (b) FURTHER, THESE REGULATIONS ESTABLISH A REASONABLE AND FAIR BALANCE BETWEEN THE INTERESTS OF BOTH EXISTING AND PROPOSED RESIDENTIAL, COMMERCIAL DEVELOPMENT, AND EXISTING AND PROPOSED OIL AND GAS OPERATIONS. ONCE THESE REGULATIONS HAVE BEEN MET BY AN APPLICANT AND A DEVELOPMENT PERMIT HAS BEEN ISSUED, IT IS THE CITY'S INTENT TO ENFORCE THESE REGULATIONS THROUGH THE IMPOSITION OF PENALTIES IN THE MUNICIPAL COURT, WITHOUT PERMIT REVOCATION, N ADDITION TO ANY OTHER REMEDIES PROVIDED BY LAW SUCH AS ACTIONS FOR AN INJUNCTION, MANDAMUS, OR ABATEMENT; AND (c) FURTHER, IT IS THE INTENT OF THE CITY BY ADOPTING THESE REGULATIONS TO PROVIDE A MEANS FOR THE CITY TO ENFORCE THESE REGULATIONS IN A MANNER THAT IS CONSISTENT WITH 930804 -10- C.D. No. 93-083 STATE LAW N ORDER TO ASSIST THE STATE OF COLORADO IN ITS EFFICIENT AND TIMELY REGULATORY ACTIVITIES BY PROSECUTION OF ANY VIOLATIONS OF CHAPTER 58 IN THE CITY'S MUNICIPAL COURT; PROVIDED HOWEVER THAT NOTHING HEREIN SHALL BE CONSTRUED AS GIVING THE CITY THE AUTHORITY TO ENFORCE STATE REGULATIONS, EXCEPT TO THE EXTENT THAT STANDARDS PROVIDED N SUCH REGULATIONS ARE SPECIFICALLY ADOPTED IN THIS ARTICLE; AND (d) FURTHER, THROUGH POWERS GRANTED IT BY THE COLORADO CONSTITUTION, THE CITY HAS ADOPTED THESE REGULATIONS TO BE CONSISTENT WITH THE INTENT AND PURPOSES OF THE OIL AND GAS CONSERVATION ACT. IT IS THE DECLARED INTENT OF THE CITY TO NOT CONFLICT WITH THE ACT OR ANY REGULATIONS OF THE OGCC. THESE REGULATIONS COMPLEMENT THE PURPOSES AND THE PROVISIONS OF THE ACT AND REGULATIONS AND DO NOT CONFLICT WITH ANY PROVISIONS THEREIN. SECTION 58-10.102 APPLICABILITY (a) WELL Sit_ES AND PRODUCTION SITES THAT ARE N EXISTENCE ON THE EFFECTIVE DATE OF THIS ORDNANCE, OR ARE LOCATED WITI-IN TERRITORY WHICH THEREAFTER IS ANNEXED TO THE CITY, MAY CONTINUE OPERATING WITHOUT THE ISSUANCE OF A DEVELOPMENT PERMIT UNTIL THE PRODUCTION SITE IS EXPANDED, OR NEW WELLS ARE DRILLED ON THE WELL SITE. CONSTRUCTION OR RECONSTRUCTION OF ACCESS ROADS SHALL CONFORM TO THE REQUIREMENTS OF THIS ARTICLE, AND SHALL REQUIRE A MINOR DEVELOPMENT PERMIT, PURSUANT TO SECTION 58-2.702. THE CONSTRUCTION OR RECONSTRUCTION SHALL NOT REQUIRE THE ACCESSORY EQUIPMENT IN A PRODUCTION SITE OR A WELL SITE, TO CONFORM TO THE DEVELOPMENT STANDARDS IN THIS ARTICLE. THE RIGHT TO OPERATE A WELL btth OR PRODUCTION SITE TERMINATES IF THE USE THEREOF IS DISCONTINUED FOR SIX MONTHS OR MORE, OTHER THAN BY TEMPORARY ABANDONMENT OR SHUT-IN WHICH IS IN CONFORMANCE WITH OGCC REGULATIONS. (b) ACCESSORY EQUIPMENT AND PUMPING SYSTEMS THAT ARE N EXISTENCE ON THE hFFECTIVE DATE OF THIS ORDINANCE, OR ARE LOCATED WITHIN TERRITORY WHICH THEREAFTER IS ANNEXED TO THE CITY, MAY CONTINUE OPERATING WITHOUT THE ISSUANCE OF A DEVELOPMENT PERMIT. ANY RENOVATION OR REPAIR OF 930804 -11- C.D. No. 93-083 NONCONFORMING ACCESSORY EQUIPMENT OR PUMPING SYSTEMS SHALL BE PERMITTED WITHOUT A DEVELOPMENT PERMIT, PROVIDED THE WORK DOES NOT INCREASE THE DEGREE OF NONCONFORMITY. ANY REPLACEMENT OF EXISTING ACCESSORY EQUIPMENT OR ANY ADDITION OF ACCESSORY EQUIPMENT SHALL CONFORM TO THIS ARTICLE AND REQUIRE A MINOR DEVELOPMENT PERMIT, PURSUANT TO SECTION 58-2.702. THE REPLACEMENT OR ADDITION OF INDIVIDUAL TANKS, TREATERS, OR SEPARATORS SHALL NOT REQUIRE THE REMAINING ACCESSORY EQUIPMENT N A PRODUCTION Si l h, AN ACCESS ROAD, OR A WELL SITE, TO CONFORM TO THE DEVELOPMENT STANDARDS IN THIS ARTICLE. (c) THE PROVISIONS OF THIS ARTICLE SHALL APPLY TO THE PERMITTING, CONSTRUCTION, ERECTION, MAINTENANCE, AL TERATION, REPAIR, AND LOCATION OF WELLS, ACCESSORY EQUIPMENT OR STRUCTURES WITHIN THE CITY. (d) ANY DEVELOPMENT PERMIT GRANTED PURSUANT TO THIS ARTICLE SHALL BE EXPRESSLY EXEMPT FROM THE REVOCATION OF A DEVELOPMENT PERMIT PROVIDED FOR IN SECTION 58-1.103(b). THE PURPOSE OF THIS EXEMPTION IS TO AVOID ANY POSSIBLE CONFLICT WITH THE OGCC AUTHORITY OR REGULATIONS. THE CITY DOES NOT WAIVE ANY OTHER ENFORCEMENT POWER RELATED TO THE PROSECUTION OF UNLAWFUL ACTS IN MUNICIPAL COURT OR ANY PUNISHMENT THAT MAY BE IMPOSED UPON CONVICTION IN SUCH MUNICIPAL COURT, OR ANY OTHER POWER THE CITY MAY HAVE TO REMOVE OR PREVENT ANY VIOLATION OF THIS ARTICLE OR ANY DEVELOPMENT PERMIT OR STANDARD. (e) NOTHING HEREIN SHALL BE CONSTRUED TO LIMIT OTHER APPLICABLE ORDINANCES OF THE CITY NOT IN CONFLICT HEREWITH. IF THERE IS A CONFLICT BETWEEN ARTICLE X AND OTHER REGULATIONS AND STANDARDS IN CHAPTER 58, ARTICLE X SHALL GOVERN. (f) ALL TERMS USED HEREIN THAT ARE DEFINED IN THE ACT OR N OGCC REGULATIONS AND ARE NOT OTHERWISE DEFINED IN SECTION 58-1.105 SHALL BE DEFINED AS PROVIDED N THE ACT. (g) ALL OTHER WORDS USED HEREIN SHALL BE GIVEN THEIR USUAL CUSTOMARY AND ACCEPTED MEANING, AND ALL WORDS OF A TECHNICAL NATURE, OR PECULIAR TO THE OIL AND GAS INDUSTRY, 930804 -12- C.D. No. 93-083 SHALL BE GIVEN THAT MEANING WHICH IS GENERALLY ACCEPTED IN SAID OIL AND GAS INDUSTRY. SECTION 58-10.103 GENERAL PROVISIONS (a) SUBJECT TO SECTION 58-10.102, WITHIN ALL ZONING DISTRICTS, IT SHALL BE UNLAWFUL FOR ANY PERSON TO DRILL A WELL, OR REACTIVATE A PLUGGED OR ABANDONED WELL, OR TO PERFORM INITIAL INSTALLATION OF ACCESSORY EQUIPMENT OR PUMPING SYSTEMS UNLESS A DEVELOPMENT PERMIT HAS FIRST BEEN GRANTED BY THE COMMISSION N ACCORDANCE WITH THE PROCEDURES DEFINED IN SECTION 58-2.702, WHERE APPLICABLE. THE INITIAL DEVELOPMENT PERMIT SHALL ALLOW ANY TWINNING OF A WELL AND RELOCATION OF ACCESSORY EQUIPMENT OR GATHERING AND TRANSMISSION LINES SO LONG AS ALL DEVELOPMENT STANDARDS IN DIVISION 58-10.300 ARE MET. IF ANY TWINNING OF A WELL OR RELOCATION OF ACCESSORY EQUIPMENT OR GATHERING AND TRANSMISSION LINES OCCURS, THEN WITHIN 30 DAYS OF SUCH ACTIVITY, THE OPERATOR SHALL FILE A REVISED SITE PLAN WITH THE DIRECTOR DEPICTING ANY CHANGES FROM THE APPROVED DEVELOPMENT PERMIT AND DEMONSTRATING HOW SUCH CHANGES COMPLY WITH ALL DEVELOPMENT STANDARDS N DIVISION 58-10.300. WHEN A DEVELOPMENT PERMIT HAS BEEN GRANTED FOR A WELL, REENTRY OF SUCH WELL FOR PURPOSES OF SIDETRACKING, DFFPENING, RECOMPLETING, OR REWORKING SHALL NOT REQUIRE A DEVELOPMENT PERMIT AMENDMENT. TT SHALL BE UNLAWFUL FOR ANY PERSON TO FAIL TO DO OR PERFORM OR CAUSE TO BE OMITTED OR NOT PERFORMED ANY ACT OR THING REQUIRED TO BE DONE BY A DEVELOPMENT PERMIT OR BY THIS ARTICLE X (b) A DEVELOPMENT PERMIT FOR A WELL SITE OR PRODUCTION MAY BE GRANTED ON UNSUBDIVIDED PROPERTY WITHOUT REQUIRING THE PROPERTY TO BE SUBDIVIDED. (c) SALES AND USE TAX LICENSE. OPERATORS SHALL AT ALL TIMES HAVE A VALID CITY SALES AND USE TAX LICENSE. SUCH LICENSE MAY BE OBTAINED BY FILING THE APPROPRIATE APPLICATION WITH THE CITY FINANCE DEPARTMENT. ALL OPERATORS MUST CONFORM TO APPLICABLE PROVISIONS OF CHAPTER 9 OF THE THORNTON CITY CODE RELATING TO TAXATION. (d) BUILDING PERMIT. FOLLOWING THE COMPLETION OF A WELL, BUILDING PERMITS SHALL BE OBTAINED PRIOR TO THE 930804 -13- C.D. No. 93-083 CONSTRUCTION OF ALL ABOVE-GROUND STRUCTURES TO THE EXTENT REQUIRED BY THE CITY BUILDING CODE THEN IN EFFECT. (e) NOTICE PROCEDURES. (1) EVERY OPERATOR OF ANY WELL SUBJECT TO THE PROVISIONS OF THIS ARTICLE SHALL DESIGNATE AN AGENT RESIDING WITHIN COLORADO TO RECEIVE ANY LEGAL PROCESS OR ORDERS AND NOTICES PROVIDED FOR N THIS ARTICLE. NOTICE OF CHANGE OF THE AGENT AND HIS OR HER ADDRESS SHALL BE SUBMITTED BY CERI IFIE.D MAIL, RETURN RECEIPT REQUESIED, TO THE DIRECTOR WITHIN TEN (10) DAYS FOLLOWING THE OCCURRENCE OF SUCH CHANGE. (2) NOTICE TO THE DIRECTOR SHALL BE EFFECTIVE UPON RECEIPT BY THE THORNTON COMMUNITY DEVELOPMENT DEPARTMENT AT THE THORNTON CIVIC CENTER, 9500 CIVIC CENTER DRIVE, THORNTON, CO 80229. (f) CIVIL ACTION. IN CASE ANY BUILDING OR STRUCTURE IS OR IS PROPOSED TO BE ERECTED, CONSTRUCTED, RECONSTRUCTED, ALTERED, OR USED, OR ANY LAND IS OR IS PROPOSED TO BE USED, IN VIOLATION OF ANY PROVISION OF THIS ARTICLE OR THE CONDITIONS AND REQUIREMENTS OF THE DEVELOPMENT PERMIT, THE CITY ATTORNEY, IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY LAW, ORDINANCE, OR RESOLUTION, MAY INSTITUTE ANY INJUNCTION, MANDAMUS, ABATEMENT, OR OTHER APPROPRIATE ACTION TO PREVENT, ENJOIN, ABATE, OR REMOVE SUCH UNLAWFUL ERECTION, CONS TRUCTION, RECONSTRUCTION, ALTERATION, OR USE. DIVISION 58-10.200 DEVELOPMENT PERMIT PROCEDURES SECTION 58-10.201 SUBMISSION REQUIREMENTS (a) GENERAL SUBMISSION REQUIREMENTS (1) AN APPLICATION FOR A DEVELOPMENT PERMIT PURSUANT TO THIS ARTICLE SHALL BE FILED WITH THE DEPARTMENT AND SHALL INCLUDE THE FOLLOWING INFORMATION: 930894 -14- C.D. No. 93-083 (A) A COMPLETED APPLICATION ON A FORM FURNISHED BY THE CITY. (B) THE OPERATOR'S NAME AND ADDRESS, COPIES OF APPLICABLE OGCC FORMS 1 AND 2. (C) AN OPERATING PLAN. (D) A LISTING OF ALL PERMITS OR APPROVALS OBTAINED OR YET TO BE OBTAINED FROM STATE OR FEDERAL AGENCIES OTHER THAN OGCC. (E) AN EMERGENCY RESPONSE PLAN WHICH INCLUDES BUT IS NOT LIMITED TO A LISTING OF LOCAL TELEPHONE NUMBERS OF THE PUBLIC AND PRIVATE ENTITIES AND INDIVIDUALS TO BE NOiitit.11 IN THE EVENT OF AN EMERGENCY, THE LOCATION OF THE WELL, THE LOCATION OF DRILLING EQUIPMENT AND RELATED FACILITIES AND STRUCTURES, AND PROVISIONS TO BE MADE FOR ACCESS BY EMERGENCY RESPONSE ENTITIES. (F) A SCHEDULE OF DRILLING AND ANTICIPATED COMPLETION EVENTS RELATED TO THE PROPOSED WELL. (G) AN ACCESS PLAN INDICATING PROPOSED EQUIPMENT ROUTES AND LOADING INFORMATION. (H) TWENTY FIVE (25) COPIES OF THE DRAINAGE AND EROSION CONTROL PLANS FOR ON-bl1_h AND OFF-bi l h DRAINAGE. a) GRAPHIC REPRESENTATIONS (PREFERABLY A REPRESENTATIVE PHOTOGRAPH(S) OR PICTORIAL DRAWING) OF THE TYPE OF EQUIPMENT TO BE USED DURING DRILLING, COMPLETION, MAINTENANCE, OR ABANDONMENT OPERATIONS, AS APPLICABLE. (J) AN 8.5 X 11 INCH BLACK AND WHITE REDUCTION OF EACH SITE PLAN AND VICINITY MAP SUITABLE FOR PHOTOGRAPHY SHOWING SUFFICIENT DETAIL, BUT GENERAL ENOUGH TO BE LEGIBLE. (K) APPLICATION FEE AS ADOPTED BY COUNCIL. 930804 -15- C.D. No. 93-083 (b) VICINITY MAP APPLICATION ELEMENTS (1) ALL VICINITY MAPS SUBMITTED AS PART OF THE DEVELOPMENT PERMIT SUBMISSION SHALL INCLUDE: (A) LOCATION OF ALL EXISTING BODIES OF WATER AND WATERCOURSES, INCLUDING DIRECTION OF WATER FLOW. THIS INFORMATION SHALL BE SUBMITTED ON UNITED STATES GEOLOGICAL SERVICE (USGS) 7.5 MINUTE SERIES, ASSESSOR BASE MAPS WHICH INDICATE TOPOGRAPHIC DETAIL AND SHOWS ALL EXISTING BODIES OF WATER AND WATERCOURSES WITH A PHYSICALLY DEFINED CHANNEL WITHIN A 1000 FOOT RADIUS OF THE PROPOSED WELL OR A MAP OF EQUAL QUALITY AND INFORMATION. (B) LOCATION OF EXISTING OIL AND GAS WELLS AS REFLECTED IN OGCC RECORDS. THIS INFORMATION SHALL BE SUBMITTED ON A MAP AND SHALL INCLUDE ANY AND ALL WELLS (INCLUDING ABANDONED WELLS) WITHIN A 1000 FOOT RADIUS OF THE PROPOSED LOCATION FOR THE WELL. (C) LOCATION OF PROPOSED WELL SITE AND PROPOSED PRODUCTION SITE. THE INFORMATION TO BE SUBMITTED SHALL BE THAT CONTAINED ON OGCC FORM 2 AND SHALL BE GRAPHICALLY DEPICTED ON A MAP OF THE SECTION IN WHICH THE SITES ARE TO BE LOCATED. THE INFORMATION SHALL ALSO INCLUDE THE PARCEL TAX IDENTIFICATION NUMBER OF THE PROPERTY ON WHICH THE WELL SITE AND PRODUCTION Si i IS TO BE LOCATED. (D) TWENTY FIVE (25) Stab OF THE VICINITY MAP APPLICATION ELEMENTS. (c) SITE PLAN APPLICATION ELEMENTS (1) THE SITE PLAN INFORMATION FOR THE WELL SITE AND PRODUCTION Sit h SHALL BE SUBMTITED ON ONE OR MORE PLATS OR MAPS, DRAWN ON 24" X 36" PAPER AND AT A SCALE NO LESS THAN 1 INCH EQUALS 100 FEET OR LARGER, SHOWING: 930804 -16- C.D. No. 93-083 (A) A LEGAL DESCRIPTION OF THE PROPERTY UPON WHICH THE WELL SITE AND PRODUCTION SITE ARE TO BE SITUATED. (B) A SITE PLAN WITH A NORTH ARROW AND NAME OF PROPOSED WELL(S) AND THE LOCATION OF THE PROPOSED WELL SITE AND PRODUCTION SITE INCLUDING WELL, PROPOSED TWINNING LOCATIONS, MOTORS, TANK BAi iERY, SEPARATORS AND TREATERS, PRODUCTION PITS, TRANSMISSION AND GATHERING PIPELINES AND OTHER ACCESSORY EQUIPMENT TO BE USED DURING THE DRILLING, MAINTENANCE AND OPERATION OF THE PROPOSED WELL. THE Si i t PLAN SHALL IDENTIFY ALL PROPOSED ACCESS WAYS, AND STORAGE FACILITIES ASSOCIATED WITH THE WELL SITE AND PRODUCTION SITE DEPIL i EU, AND SHALL CONTAIN A DESCRIPTION AND LOCATION OF PROPOSED LANDSCAPING, INTENDED COLOR OF PAINT FOR STORAGE TANKS AND OTHER PERMANENT STRUCTURES, FENCING AND BERMING FOR THE SITE. (C) THE SITE PLAN SHALL DEPICT ALL EXISTING PHYSICAL FEATURES, INCLUDING DRAINAGEWAYS, FLOODPLAINS, ROADS AND RIGHTS-OF-WAY WITHIN 1000 FEET OF A WELL SITE OR PRODUCTION SUE. THE SITE PLAN SHALL ALSO DEPICT EXISTING SUBDIVISION BOUNDARIES, EXISTING BUILDING OR STRUCTURES, PROPERTY LINES, PUBLIC AND PRIVATE UTILITY EASEMENTS OF RECORD AND UTILITY FACILITIES AND IMPROVEMENTS WITHIN 400 FEET OF THE WELL SITE OR PRODUCTION Si (D) INCLUDE 25 FOLDED, BLUE OR BLACK LINE SETS OF THE SITE PLAN APPLICATION ELEMENTS, AND ONE St_i OF PHOTOGRAPHIC ORIGINAL MYLAR SHEETS. (2) THE DIRECTOR MAY WAIVE ONE OR MORE OF THE ITEMS LISTED AS SUBMISSION REQUIREMENTS IF THEY ARE NOT APPLICABLE GIVEN THE LOCATION OF THE WELL SITE OR PRODUCTION SITE. THE DIRECTOR MAY ALSO REQUEST FROM THE APPLICANT ANY OTHER REASONABLE AND PERTINENT INFORMATION RELATED TO THE SUBMISSION REQUIREMENTS DEEMED NECESSARY FOR THE REVIEW OF THE DEVELOPMENT PERMIT. 930804 -17- C.D. No. 93-083 SECTION 58-10.202 DEVELOPMENT PERMIT REVIEW CRITERIA (a) THE COMMISSION SHALL APPROVE OR APPROVE WITH CONDITIONS A DEVELOPMENT PERMIT FOR A WELL Si i h OR PRODUCTION Sub. THAT MEETS THE FOLLOWING REQUIREMENTS: (1) COMPTJPS WITH THE SUBMISSION REQUIREMENTS CONTAINED IN SECTION 58-10.201; AND (2) COMPLIES WITH THE GENERAL PROVISIONS CONTAINED IN SECTION 58-10.103, AND THE DEVELOPMENT STANDARDS CONTAINED IN DIVISION 58-10.300. (3) COMPLIES WITH THE UNIFORM BUILDING CODE, UNIFORM FIRE CODE, CHAPTER 9 OF THE THORNTON CITY CODE, AND DRAINAGE PROVISIONS OF THE STANDARDS AND SPECIFICATIONS FOR DESIGN AND CONSTRUCTION OF PUBLIC IMPROVEMENTS. (b) THE COMMISSION SHALL DENY A DEVELOPMENT PERMIT FOR A WELL Si i h OR PRODUCTION SITE THAT DOES NOT MEET THE REQUIREMENTS LIS!Ell N (a)(1), (2), AND (3) ABOVE. SECTION 58-10.203 VARIANCE FROM DEVELOPMENT STANDARD (a) THIS VARIANCE PROCESS ADDRESSES THE APPLICATION OF THESE REGULATIONS TO THE OPERATIONAL UNIQUENESS THAT MAY EXIST FOR OIL AND GAS WELL AND INJECTION WELL DRILLING AND PRODUCTION. THIS PROCESS IS IN ADDITION TO THE VARIANCE PROCESS DESCRIBED IN SECTION 58-2.701. IF THE APPLICATION OF THESE REGULATIONS CREATES AN OPERATIONAL CONFLICT, THE APPROVAL OF A REQUEST FOR A VARIANCE FROM THE SPECIFIC REGULATION WILL PERMIT THE CONTINUED EFFICIENT DEVELOPMENT OF THE OIL AND GAS RESOURCES. (b) AN APPLICANT FOR A DEVELOPMENT PERMIT UNDER ARTICLE X MAY APPLY FOR A VARIANCE TO A DEVELOPMENT STANDARD LISTED IN DIVISION 58-10.300. THE PROCEDURE IN SECTION 58-2.701, APPEALS TO THE ZONING BOARD OF APPEALS, SHALL APPLY. A DEVELOPMENT PERMIT AND VARIANCE REQUEST MAY BE PROCESSED SIMULTANEOUSLY. 930804 -18- C.D. No. 93-083 (c) THE ZONING BOARD OF APPEALS SHALL GRANT A VARIANCE TO THE APPLICANT WITHOUT REQUIRING THE APPLICANT TO MEET THE STANDARDS N SECTION 58-2.701(c)(1) OR (2) IN EITHER OF THE CASES AS FOLLOWS: (1) THE APPLICANT ESTABLISHES THAT THE APPLICATION OF THE DEVELOPMENT STANDARD TO THE APPLICANT OR THE APPLICANT'S PROPERTY RESULTS N A DIRECT CONFLICT WITH THE ACT OR THE OGCC REGULATIONS; OR (2) THE APPLICANT ESTABLISHES THAT ANY DEVELOPMENT STANDARD AS APPLIED TO THE APPLICANT OR THE APPLICANT'S PROPERTY CONSTITUTES A TAKING OR DAMAGE BY THE CITY WHICH VIOLATES THE UNITED STATES CONSTITUTION OR A TAKING OR DAMAGE BY THE CITY WHICH VIOLATES ARTICLE 2 SECTION 3 OF THE COLORADO CONSTITUTION. (d) IF A VARIANCE IS GRANTED UNDER (c) ABOVE, THE APPLICANT SHALL MEET THE DEVELOPMENT STANDARD TO THE MAXIMUM EXTENT POSSIBLE AND THE APPROVAL SHALL BE FOR THE MINIMUM VARIANCE THAT WILL AFFORD RELIEF WITH THE LEAST MODIFICATION POSSIBLE TO THE DEVELOPMENT STANDARD. (e) IF AN APPLICANT CANNOT ESTABLISH THE REQUIREMENTS UNDER (c) ABOVE, THE ZONING BOARD OF APPEALS SHALL REVIEW, UPON • REQUEST OF THE APPLICANT, THE VARIANCE REQUEST UNDER THE STANDARDS ESTABLISHED N SECTION 58-2.701(c)(1) AND (2). SECTION 58-10.204 ISSUANCE OF DEVELOPMENT PERMIT (a) THE FOLLOWING DOCUMENTATION SHALL BE SUBMITTED AND APPROVED FOR COMPLETENESS BY THE DIRECTOR OR DESIGNEE PRIOR TO THE ISSUANCE OF A DEVELOPMENT PERMIT UNDER THIS ARTICLE X FOR A WELL SITE OR PRODUCTION SITE: (1) A COPY OF ANY APPROVED OVERWEIGHT/OVERSIZED TRUCK PERMIT ISSUED BY THE CITY PUBLIC WORKS DEPARTMENT PURSUANT TO THE THORNTON CITY CODE. (2) A COPY OF THE CITY SALES AND USE TAX LICENSE. 930804 -19- C.D. No. 93-083 (3) A COPY OF ALL NECESSARY STATE OR FEDERAL PERMITS ISSUED FOR THE OIL OR GAS OPERATION. (4) A COPY OF ANY RESOLUTION BY THE ZONING BOARD OF APPEALS GRANTING A VARIANCE FROM ANY DEVELOPMENT STANDARD. DIVISION 58-10.300 DEVELOPMENT STANDARDS SECTION 58-10.301 WELL SITE AND PRODUCTION SITE SETBACKS (a) N ALL AREAS OF THE CITY THE FOLLOWING SHALL APPLY: (1) A WELL SITE LOCATION SHALL BE SETBACK A MINIMUM OF THREE HUNDRED FIFTY (350) FEET FROM ANY OCCUPIED BUILDING OR OCCUPIED BUILDING PERMITTED FOR CONSTRUCTION AND SHALL BE SETBACK A MINIMUM OF SEVENTY FIVE (75) FEET FROM ANY PUBLIC RIGHT-OF-WAY. (2) A PRODUCTION SITE LOCATION SHALL BE SETBACK A MINIMUM OF THREE HUNDRED I-in_Y (350) FEET FROM ANY OCCUPIED BUILDING OR OCCUPIED BUILDING PERMITTED FOR CONSTRUCTION AND SHALL BE SETBACK A MINIMUM OF SEVENTY FIVE (75) FEET FROM ANY PUBLIC RIGHT-OF-WAY. (3) PROPOSED SUBDIVISION OF PROPERTY ON WI-ITCH WELL SITES OR PRODUCTION SITES ARE LOCATED OR ARE PROPOSED TO BE LOCATED SHALL BE SUBJECT TO SECTION 58-6.201(c)(2)(E). (4) IN THE EVENT THAT A BUILDING IS CONSTRUCTED CLOSER THAN 350 FEET TO AN EXISTING WELL SITE OR PRODUCTION bl l E, SUCH WELL SITE OR PRODUCTION bl l E SHALL NOT BE N VIOLATION OF THIS SECTION. SECTION 58-10.302 PRODUCTION SHE CONTAINMENT (a) TO THE MAXIMUM EXTENT POSSIBLE, ALL ACCESSORY EQUIPMENT SHALL BE LOCATED WITHIN A CENTRAL BAI TERY AREA WHICH CONFORMS TO THE PRODUCTION Si it SETBACK REQUIREMENTS. 930804 -20- C.D. No. 93-083 (b) ALL PERMANENT PRODUCTION TANKS SHALL BE LOCATED WITHIN A CONTAINMENT BERM. SUCH CONTAINMENT BERM SHALL BE DESIGNED TO PERMIT REASONABLE AND ADEQUATE ACCESS AND SERVICE. THE CONTAINMENT BERM SHALL BE SO DESIGNED TO BE CAPABLE OF IMPOUNDING AN AMOUNT OF FLUID EQUAL TO ONE HUNDRED PERCENT (100%) OF THE CAPACITY OF THE LARGEST TANK WITHIN SAID BERM. SECTION 58-10.303 VISUAL IMPACTS AND AESTHETICS (a) TO THE MAXIMUM EXTENT PRACTICABLE, A WELL SITE AND A PRODUCTION SITE SHALL BE LOCATED AWAY FROM PROMINENT NATURAL FEATURES SUCH AS DISTINCTIVE ROCK AND LAND FORMS, VEGETATIVE PATTERNS, RIVER CROSSINGS, CITY-OWNED AND DESIGNATED OPEN SPACE AREAS, AND OTHER DESIGNATED LANDMARKS. (b) TO THE MAXIMUM EXTENT PRACTICABLE, A WELL 51 it AND A PRODUCTION SITE SHALL BE LOCAIEll TO AVOID THE TOP OF HILLS AND RIDGES IN ORDER TO PREVENT THE APPEARANCE OF PUMPJACK AND ACCESSORY EQUIPMENT PROFILES ON THE HORIZON. (c) ELECTRIC PUMPING SYSTEMS SHALL BE REQUIRED N AREAS WHERE FEASIBLE. (d) IN URBANIZED AREAS, NO TANKS LOCATED IN A PRODUCTION SITE SHALL EXCEED 6 (SIX) brbi IN HEIGHT. N DEVELOPING AREAS, NO TANKS LOCATED N A PRODUCTION SITE SHALL EXCEED 9 (NINE) FEET N HEIGHT. (e) N URBANIZED AREAS, NO TREATMENT FACILITIES LOCATED N A PRODUCTION SITE SHALL EXLt.ti) 6 (SIX) FEET N HEIGHT, WITH THE EXCEPTION OF VENTING PIPES WHICH SHALL NOT EXCEED 16 FEET IN HEIGHT. IN DEVELOPING AREAS, NO TREATMENT FACILITIES LOCATED N A PRODUCTION SITE SHALL EXCEED 9 (NINE) Hsi IN HEIGHT, WITH THE EXCEPTION OF VENTING PIPES WHICH SHALL NOT EXCEED 16 Ithi N HEIGHT. - (f) TO THE MAXIMUM EXTENT PRACTICABLE, THE APPLICANT SHALL LOCATE FACILITIES AT THE BASE OF SLOPES TO PROVIDE A BACKGROUND OF TOPOGRAPHY AND/OR NATURAL COVER 930804 -21- C.D. No. 93-083 (g) TO THE MAXIMUM EXTENT PRACTICABLE, THE APPLICANT SHALL ALIGN ACCESS ROADS TO FOLLOW EXISTING GRADES AND MINIMIZE CUTS AND FILLS. (h) FACILITIES SHALL BE PAINTED AS FOLLOWS: (1) UNIFORM, NON-CONTRASTING, NON-REFLECTIVE COLOR TONES, SIMILAR TO MUNSELL SOIL COLOR CODING SYSTEM. (2) COLOR MATCHED TO LAND, NOT SKY, SLIGHTLY DARKER TI-LkN ADJACENT LANDSCAPE (3) EXPOSED CONCRETE COLORED TO MATCH SOIL COLOR. (i) ELECTRICAL LINES SERVICING PUMPING AND ACCESSORY EQUIPMENT SHALL BE INSTALLED BELOW GROUND ONLY. (j) AF MR COMMENCEMENT OF PRODUCTION OPERATIONS, ALL EXCAVATION SLOPES, BOTH CUT AND FILL, SHALL BE PLANTED AND MAINTAINED WITH GRASSES, PLANTS, OR SHRUBS FOR THE PURPOSES OF ADEQUATE EROSION CONTROL. SECTION 58-10.304 ACCESS ROADS (a) ALL PRIVATE ROADS USED TO ACCESS A PRODUCTION SITE OR A WELL Silt SHALL BE IMPROVED PRIOR TO THE DRILLING OF THE WELL AND MAINTAINED ACCORDING TO THE FOLLOWING STANDARDS WHICH SHALL CONTROL N THE EVENT OF A CONFLICT: (1) ACCESS ROADS TO THE PRODUCTION SITE SHALL BE SUBJECT TO REVIEW BY THE CITY ENGINEER N ACCORDANCE WITH THE CITY STANDARDS AND SPECIFICATIONS AND THE FOLLOWING MINIMUM STANDARDS: (A) A GRADED ROADWAY. HAVING A PREPARED SUBGRADE AND AN AGGREGATE BASE COURSE SURFACE A MINIMUM OF TEN (10) INCHES THICK COMPACTED TO A MINIMUM DENSITY OF 95 PERCENT OF THE MAXIMUM DENSITY DETERMINED N ACCORDANCE WITH GENERALLY ACCEPTED ENGINEERING SAMPLING AND TESTING PROCEDURES. THE AGGREGATE BASE COURSE AT A MINIMUM SHALL MEET THE REQUIREMENTS FOR 930804 -22- C.D. No. 93-083 COLORADO DEPARTMENT OF HIGHWAYS CLASS 1, 4, 5, OR 6 AGGREGATE BASE COURSE, AS SPECIFIED IN THE COLORADO DEPARTMENT OF HIGHWAYS "STANDARD SPECIFICATIONS FOR ROAD AND BRIDGE CONSTRUCTION," LATEST EDITION. (B) GRADED SO AS TO PROVIDE DRAINAGE FROM THE ROADWAY SURFACE AND CONSTRUCTED TO ALLOW FOR CROSS DRAINAGE OF WATERWAYS (I.E. ROADSIDE SWALES, GULCHES, RIVERS, CREEKS, ETC.) BY MEANS OF AN ADEQUATE CULVERT PIPE. ADEQUACY OF THE PIPE SHALL BE SUBJECT TO APPROVAL OF THE DIRECTOR OF PUBLIC WORKS OR HIS DESIGNEE. (C) MAINTAINED SO AS TO PROVIDE A PASSABLE ROADWAY GENERALLY FREE OF RUTS. (2) ACCESS ROADS TO WELL SITES SHALL BE SUBJECT TO REVIEW BY THE CITY ENGINEER IN ACCORDANCE WITH THE CITY STANDARDS AND SPECIFICATIONS AND THE FOLLOWING MINIMUM STANDARDS WHICH SHALL CONTROL IN THE EVENT OF A CONFLICT: (A) A GRADED, DIRT ROADWAY COMPACTED TO A MINIMUM DENSITY OF 95 PERCENT OF THE MAXIMUM DENSITY DETERMINED IN ACCORDANCE WITH GENERALLY ACCEPTED ENGINEERING SAMPLING AND TESTING PROCEDURES. (B) GRADED SO AS TO PROVIDE DRAINAGE FROM THE ROADWAY SURFACE AND CONSTRUCTED TO ALLOW FOR CROSS DRAINAGE OF WATERWAYS BY MEANS OF AN ADEQUATE CULVERT PIPE. ADEQUACY OF THE PIPE SHALL BE SUBJECT TO APPROVAL OF THE DIRECTOR OF PUBLIC WORKS, OR HIS DESIGNEE. (C) MAINTAINED SO AS TO PROVIDE A PASSABLE ROADWAY GENERALLY FREE OF RUTS. (3) PUBLIC ACCESS ROADS (A) AN OVERSIZED/OVERWEIGHT TRUCK PERMIT SHALL BE REQUIRED FOR ALL OVERSIZED/OVERWEIGHT TRUCKS 930804 -23- C.D. No. 93-083 AND EQUIPMENT WHICH USE PUBLIC STREETS. SAID PERMIT, IF REQUIRED, SHALL BE OBTAINED FROM THE DIRECTOR OF PUBLIC WORKS, OR HIS DESIGNEE, PRIOR TO MOBILIZATION. (B) ALL PROPOSED ACCESS ROADS TO WELL St 11 S AND PRODUCTION SITES WHICH GAIN ACCESS OFF OF PAVED PUBLIC RIGHT-OF-WAY SHALL BE IMPROVED AS STATED ABOVE AND, IN ADDITION, THE POINT OF INTERSECTION WITH THE PUBLIC RIGHT-OF-WAY SHALL BE IMPROVED TO THE FOLLOWING MINIMUM STANDARDS: (i) AN ACCESS WIDTH OF 20 FEET WITH PAVED 25 FOOT RADII AT EACH SIDE OF THE ACCESS ROAD AT THE POINT OF INTERSECTION WITH THE PUBLIC RIGHT- OF-WAY; AND (ii) A MINIMUM OF 6 INCHES OF ASPHALT PAVEMENT OVER THE INITIAL 20 FOOT PORTION OF THE PROPOSED ACCESS ROAD, BEGINNING AT THE EDGE OF THE EXISTING PAVEMENT OF A PAVED PUBLIC RIGHT-OF-WAY. SECTION 58-10.305 ADDITIONAL PERFORMANCE STANDARDS (a) UNLESS OTHERWISE STATED IN TI-TIS ARTICLE, ALL WELLS AND ACCESSORY EQUIPMENT SHALL COMPLY WITH ARTICLE IV OF CHAPTER 58 PERTAINING TO FLOODPLAIN REGULATIONS AND WITH ARTICLE IX OF CHAPTER 58 PERTAINING TO ENVIRONMENTAL PERFORMANCE STANDARDS. N ADDITION, THE FOLLOWING STANDARDS SHALL APPLY: (1) ALL STRUCTURES AND EQUIPMENT SHALL BE MAINTAINED SO AS NOT TO BECOME A HAZARD OR INJURIOUS TO PUBLIC HEALTH AND SAFETY. (2) ALL PRODUCED OIL OR GAS SHALL BE TRANSPORTED FROM THE WELL TO THE ON-SITE TREATMENT FACILITIES AND PRODUCTION PITS BY BURIED PIPELINE. (3) AIR CONTAMINANT EMISSION SOURCES SHALL COMPLY WITH THE PERMIT AND CONTROL PROVISIONS OF THE COLORADO 08©4 -24- C.D. No. 93-083 AIR QUALITY CONTROL PROGRAM (TITLE 25, ARTICLE 7, CRS) AND THE RULES AND REGULATIONS PROMULGATED BY THE COLORADO AIR QUALITY CONTROL COMMISSION. IF OPERATIONS RESULT IN THE GENERATION OF AMOUNTS OF DUST IN EXCESS OF APPLICABLE STANDARDS SET FORTH N THE THORNTON CITY CODE, ALONG ACCESS ROUTES AND ON THE WELL SITE OR PRODUCTION Silt, THE PERMITTEE SHALL INSTITUTE ADEQUATE DUST CONTROL MEASURES AS SET FORTH IN SECTION 58-9.106. (4) NOISE: (A) ALL POWER SOURCES USED IN PRODUCTION OPERATIONS AND FOR PUMPING SYSTEMS SHALL BE ELECTRIC MOTORS OR MUFFLED INTERNAL COMBUSTION ENGINES, SUCH THAT NOISE EMISSION SHALL NOT EXCEED THE SOUND LEVEL STANDARDS SET FORTH N CHAPTER 58 OF THE THORNTON CITY CODE. (B) DRILLING OPERATIONS ASSOCIATED WITH WELLS SHALL BE EXEMPTED FROM SECTION 58-9.102(C)(5) OF THE THORNTON CITY CODE. (C) FOR THE PURPOSES OF NOISE REGULATIONS, ALL DECIBEL READINGS SHALL BE TAKEN FROM THE SETBACK LINE FROM ALL WELL SITES AND PRODUCTION SITES. (b) WILDLIFE IMPACT MITIGATION (1) WHEN A WELL but OR PRODUCTION SITE IS LOCATED N A SIGNIFICANT WILDLIFE HABITAT, AS DEFINED BY THE COLORADO DIVISION OF WILDLIFE OR AS DESIGNATED N THE THORNTON COMPREHENSIVE PLAN, THE APPLICANT SHALL CONSULT WITH THE COLORADO DIVISION OF WILDLIFE AND THE CITY TO OBTAIN RECOMMENDATIONS FOR APPROPRIATE 511_t SPECIFIC AND CUMULATIVE IMPACT MITIGATION PROCEDURES. THE OPERATOR OR OWNER SHALL IMPLEMENT SUCH PROCEDURES AS RECOMMENDED BY THE DIVISION OF WILDLIFE AFTER CONSULTATION WITH THE CITY. (2) THE APPLICANT SHALL NOT ENGAGE IN ACTIVITIES WHICH THE COLORADO DIVISION OF WILDLIFE DETERMINES THREATEN ENDANGERED SPECIES. 930804 -25- C.D. No. 93-083 SECTION 58-10.306 SIGN STANDARDS (a) EACH WELL SITE AND PRODUCTION SITE SHALL HAVE POSTED IN A CONSPICUOUS PLACE A LEGIBLE SIGN OF NOT LESS THAN THREE (3) SQUARE FEET AND NOT MORE THAN SIX (6) SQUARE FEET BEARING THE CURRENT NAME OF THE OPERATOR, A CURRENT PHONE NUMBER, INCLUDING AREA CODE, WHERE THE OPERATOR MAY BE REACHED AT ALL TIMES, NAME OR NUMBER OF THE LEASE AND NUMBER OF THE WELL PRINTED THEREON. THE SIGN SHALL WARN OF SAFETY HAZARDS TO THE PUBLIC AND SHALL BE MAINTAINED ON THE PREMISES FROM THE TIME MATERIALS ARE DELIVERED FOR DRILLING PURPOSES UNTIL THE WELL SITE AND PRODUCTION SITE IS ABANDONED. SECTION 58-10.307 FENCING AND LANDSCAPING REQUIREMENTS (a) FENCING. . (1) WITHIN ALL RESIDENTIAL ZONING DISTRICTS, ALL PUMPING SYSTEMS AND ACCESSORY EQUIPMENT USED IN THE OPERATION OF A COMPLETED WELL SHALL BE SCREENED ON ALL SIDES BY A SOLID WOOD PRIVACY FENCE OF A HEIGHT EQUAL TO THE HIGHEST ACCESSORY EQUIPMENT, WITH THE EXCEPTION OF VENTING PIPES ASSOCIATED WITH SAID EQUIPMENT. (2) WITHIN ALL NONRESIDENTIAL ZONING DISTRICTS, ALL PUMPING SYSTEMS AND ACCESSORY EQUIPMENT USED IN THE OPERATION OF A COMPLETED WELL SHALL BE SCREENED ON ALL SIDES BY A FENCE OF A HEIGHT EQUAL TO THE HIGHEST ACCESSORY EQUIPMENT, WITH THE EXCEPTION OF VENTING PIPES ASSOCIATED WITH SAID EQUIPMENT. THE FENCE SHALL BE CONSTRULmED OF EITHER SOLID WOOD OR CHAIN LINK WITH SLATS. THE SLATS SHALL BE PAINTED THE SAME COLOR AS THE ACCESSORY EQUIPMENT WITHIN THE FENCE. THE SPECIFIC MATERIAL USED FOR THE FENCE SHALL BE DETERMINED BY THE COMMISSION DURING THE DEVELOPMENT PERMIT REVIEW PROCESS BASED ON COMPATIBILITY WITH ADJACENT DEVELOPMENT AND VISIBILITY FROM SURROUNDING RESIDENTIAL DEVELOPMENT. 930804 -26- C.D. No. 93-083 (3) A REQUIRED SCREENING FENCE MAY NOT HAVE MORE THAN 10 SQUARE INCHES OF OPENINGS IN ANY GIVEN SQUARE FOOT OF SURFACE. ACCESS THROUGH THE FENCE MAY BE PROVIDED BY A SOLID GATE WHICH PRESERVES THE INTEGRITY OF THE SCREENING. SAID ACCESS GATE SHALL BE SECURELY LOCKED TO PREVENT ACCESS BY UNAUTHORIZED PERSONS. WHEN A SOLID WOOD FENCE IS INSTALLED, THERE SHALL BE A MINIMUM SEPARATION OF 25 FEET BETWEEN THE FENCE AND THE ACCESSORY EQUIPMENT. (b) LANDSCAPING. THE OWNER SHALL BE RESPONSIBLE FOR LANDSCAPING THE PERIMETER OF THE FENCE IMMEDIATELY SURROUNDING THE WELL SITE AND PRODUCTION SITE. THE SPECIFIC REQUIREMENTS FOR LANDSCAPE SCREENING AND BUFFERING SHALL BE DETERMINED BY THE COMMISSION, AS PART OF THE APPROVAL OF THE DEVELOPMENT PERMIT, BASED ON ONE OR MORE OF THE FOLLOWING LANDSCAPE CRTIERIA: • (1) EARTHEN BERM LOCAIEll AROUND THE PERIMETER ETER OF THE FENCE AND PLANTED WITH TURF GRASS OR GROUND COVER GENERALLY RECOGNIZED BY LANDSCAPE ARCHITECTS AND HORTICULTURISTS FOR LOCAL AREA USE FOR THE PURPOSE OF GENERAL SCREENING. (2) INSTALLATION OF GROUND COVERS, TREES, AND SHRUBS FOR SCREENING AND AESTHETIC PURPOSES. (3) DESIGNING THE FACILITY TO UTILIZE NATURAL SCREENS. (4) ALL PLANT MATERIALS SHALL BE MAINTAINED IN A HEALTHY GROWING CONDITION AT ALL TIMES. THE OPERATOR IS RESPONSIBLE FOR THE REGULAR WEEDING, MOWING, FERTILIZING, PRUNING, AND OTHER MAINTENANCE OF ALL PLANT MATERIALS AS NEEDED. PROPER IRRIGATION OF PLANT MATERIALS SHALL BE PROVIDED, EXCEPT AUTOMATIC IRRIGATION SYSTEMS ARE NOT REQUIRED. SECTION 58-10.308 REQUIREMENTS IN DEVELOPING AREAS (a) THE CITY IS URBAN IN CHARACTER WITH THE ASSOCIATED DEVELOPMENT, DENSITY, INFRASTRUCTURE, AND SERVICES THAT EXIST IN OTHER URBAN CITIES. THE CITY RECOGNIZES THAT 930804 -27- C.D. No. 93-083 PORTIONS OF THE CITY AND ITS GROWTH AREA HAVE UNDEVELOPED LAND THAT DOES NOT HAVE THE SAME CHARACTERISTICS AS URBAN AREAS. IN SUCH DEVELOPING AREAS THE CITY ACKNOWLEDGES THAT SOME OF THE REGULATORY SAFEGUARDS PROVIDED IN THESE DEVELOPMENT STANDARDS MAY NOT BE NECESSARY. IT IS THE INTENT OF THE CITY TO PERMIT WAIVER PERIODS FROM THE STANDARDS CONTAINED IN SECTION 58-10.307 UNTIL AREAS LYING WITHIN A ONE HALF MILE RADIUS SURROUNDING WELL SITES AND PRODUCTION Si i hS BECOME URBANIZED PURSUANT TO SECTION 58-10.309. (b) THE STANDARDS IN SECTION 58-10.307 SHALL BE WAIVED BY THE COMMISSION IF THE AREA WITHIN A ONE HALF MILE RADIUS SURROUNDING A WELL SITE OR PRODUCTION SITE IS DETERMINED TO BE A DEVELOPING AREA. SECTION 58-10.309 PROCEDURE FOR EXISTING WELL SITES OR PRODUCTION SITES IN URBANIZED AREAS (a) THE CITY RECOGNIZES THAT THE POTENTIAL EXISTS FOR APPROVAL OF A DEVELOPMENT PERMIT FOR WELL SITES OR PRODUCTION SITES IN AREAS THAT, AT THE TIME OF APPROVAL, WERE DEVELOPING AREAS. THE CITY ALSO RECOGNIZES THAT THOSE AREAS THAT WERE DEVELOPING AREAS HAVE THE POTENTIAL TO BECOME URBANIZED AREAS SOMETIME DURING THE LIFE OF THE APPROVED WELL but OR PRODUCTION SITE. THEREFORE, WELL SITES OR PRODUCTION SITES APPROVED IN DEVELOPING AREAS THAT LATER BECOME URBANIZED AREAS, SHALL BE SUBJECT TO THE FOLLOWING PROCEDURE: (1) AT THE TIME AN AREA WITHIN A ONE HALF MILE RADIUS SURROUNDING AN EXISTING WELL SITE OR PRODUCTION SITE NO LONGER QUALIFIES AS A DEVELOPING AREA, ANY PERSON OR ENTITY THAT IS ADVERSELY AFFEL 1 Ell OR THE CITY MAY REQUEST THE COMMISSION MAKE A FINDING OF ADVERSE IMPACT RELATED TO NOISE FROM THE SITE OR VISUAL BLIGHT FROM THE SITE. IN MAKING SUCH FINDING, THE COMMISSION SHALL FOLLOW THE PROCEDURE OUTLINED IN SECTION 58- 2.604(a)(1). THE COMMISSION SHALL MAKE ITS DECISION ON A FINDING OF ADVERSE IMPACT BASED ON STAFF REPORTS FROM THE DIRECTOR AND OTHER EVIDENCE PRESENTED AT THE PUBLIC HEARING REGARDING THE AFFECTED WELL SITE OR �p _ PRODUCTION SITE. IF A FINDING OF ADVERSE IMPACT IS M y�3V804 -28- C.D. No. 93-083 BY THE COMMISSION, THE AFFECTED WELL SITE OR PRODUCTION SITE SHALL BE REQUIRED TO COMPLY WITH THE DEVELOPMENT STANDARDS CONTAINED IN SECTION 58-10.307 OF THIS ARTICLE. (2) ANY REPLACEMENT OF EXISTING ACCESSORY EQUIPMENT FOR WHICH A DEVELOPMENT PERMIT HAS PREVIOUSLY BEEN GRANTED, OR ANY ADDITION OF ACCESSORY EQUIPMENT SHALL CONFORM TO THE HEIGHT REQUIREMENTS FOR ACCESSORY EQUIPMENT IN URBANIZED AREAS AND REQUIRE A MINOR DEVELOPMENT PERMIT AMENDMENT, PURSUANT TO SECTION 58-2.702. 15. If any article, section, paragraph, sentence, clause or phrase of this Chapter is held to be unconstitutional or invalid for any reason, such decision shall not affect the validity, enforceability or constitutionality of the remaining provisions of this Ordinance. 16. This Ordinance shall take effect on the date of final passage. INTRODUCED, READ, AND PASSED on first reading, ordered posted in full, and title ordered published at a regular meeting of the City Council of the City of Thornton, Colorado, this 10th day of may , 1993. PASSED AND ADOPTED on second and final reading this 24th day of May . 1993. CITY OF THORNTON, COLORADO \ cva% dr W \. et ; t¢h,J MAr Mtrel� . Carpenter, Mtor ATTEST: _.l fk 1 Nancy A. Vincent, City erfE THIS ORDINANCE IS ON FILE IN THE CITY CLERK'S OFFICE FOR PUBLIC INSPECTION. 930804 -29- C.D. No. 93-083 APPROVED AS TO LEGAL FORM Kevin Maggio, City tt rney PUBLICATION: Post in six public places for ten days after first reading and second reading. Published in the Northglenn-Thornton Sentinel on May 13, 1993 and on May 27 . 1993 . oil.58.15/may6 930804 • ATTACHMENT as amended May 11, 1993 ORDINANCE NO. 967 AN ORDINANCE AMENDING 1'1th BROOMFIELD MUNICIPAL CODE BY ADDING A NEW CHAPTER 17.54 TO TITLE 17, ENTITLED "OIL AND GAS LAND USE REGULATIONS," AND AMENDING CERTAIN SECTIONS OF CHAPTER 17.30, USES PERMITTED BY SPECIAL REVIEW, AND OF CHAPTER 16.28, DESIGN STANDARDS, TO FURTHER REGULATE OIL AND GAS WELL LAND USES BE IT ORDAINED BY THE CITY COUNCIL OF 1'1th CITY OF BROOMFIELD, COLORADO. Section 1. The Broomfield Municipal Code is amended by adding a new chapter 17.54 to title 17, entitled "Oil and Gas Land Use Regulations," to read as follows: Chapter 17.54 OIL AND GAS LAND USE REGULATIONS 17.54.005 Short title. This chapter is known and may be cited as the "Broomfield Oil and Gas Regulations." 17.54.010 Purpose. This chapter is enacted to protect and promote the health, safety, morals, convenience, order, prosperity or general welfare of the present and future residents of the city. It is the intent of the city council by enacting these regulations to facilitate the development of oil and gas resources within the city while mitigating potential land use conflicts between such development and existing, as well as planned, land uses. It is recognized that under state law the surface and mineral estates are separate and distinct interests in land and that one may be severed from the other. Owners of subsurface mineral interests have certain legal rights and privileges, including the right to use that part of the surface estate reasonably required to extract and develop their subsurface mineral interests. 'The state has a recognized interest in fostering the efficient development, production and utilization of oil and gas resources, and particularly in the prevention of waste and protection of the correlative rights of common source owners and producers to a fair and equitable share of production profits. Similarly, owners of the surface estate have certain legal rights and privileges, including the right to have the mineral estate developed in a reasonable manner. Municipal governments have a recognized, traditional authority and responsibility to regulate land use within their jurisdiction. These regulations are intended to be an exercise of the O&G-REGS.GRD;9.0512 1 930804 • land use authority of the city. Nothing in this chapter shall be construed as giving the city authority to enforce state or federal laws, rules, or regulations. 17.54.020 Definitions. All terms used in this chapter that are defined in the Act or in Commission regulations and are not otherwise defined in this section are defined as provided in the Act or in such regulations as of the effective date of this chapter. All other words used in this chapter are given their usual customary and accepted meaning, and all words of a technical nature, or peculiar to the oil and gas industry, shall be given that meaning which is generally accepted in said oil and gas industry. When not clearly otherwise indicated by the context, the following words and phrases used in this chapter have the following meanings: A. "Act" means the Oil and Gas Conservation Act of the State of Colorado. B. "Commission" or "OGCC" means the Oil and Gas Conservation Commission of the State of Colorado. C. "Day" means a period of 24 consecutive hours. D. "Director" means the director of the Oil and Gas Conservation Commission of the State of Colorado. E. "Injection Well" means any hole drilled into the earth into which fluids are injected for the purposes of secondary recovery, storage, or disposal, pursuant to authorizations granted by the Commission. F. "Inspector" means any person designated by the chief building official, or designee thereof, who shall have the authority to inspect a well site to determine compliance with this chapter and other applicable ordinances of the city. G. "Oil and gas well" means any hole drilled into the earth for the purpose of exploring for or extracting oil, gas, or other hydrocarbon substances. H. "Operating plan" means a general description of a facility identifying purpose, use, typical staffing pattern, cPasonal or periodic considerations, routine hours of operating, source of services, infrastructure, and any other information related to regular functioning of such facility. I. "Operator" means the person designated by the working interest owners as operator and named in Commission Form 2 or a subsequently filed Commission Form 10. J. "Owner" means any person with a working interest ownership in the oil and gas or leasehold interest therein. O&G-REGS.ORD;9.0512 2 93%%04 K. "Production site" means the area surrounding proposed or existing production pits or other accessory equipment required for oil and gas production, at which may also be located tanks and tank batteries, exclusive of transmission and gathering pipelines. L. "Reentering" means accessing an existing well bore for either the original or amended purpose,provided that such well has not been abandoned. M. "Sidetracking" means entering the same well head from the surface, but not necessarily following the same well bore, throughout its subsurface extent when deviation from such well bore is necessary to reach the objective depth because of an engineering problem. N. "Twinning" means the drilling of a well within a radius of 50 feet from an existing well bore when the well cannot be drilled to the objective depth or produced because of an engineering problem, such as a collapsed casing or formation damage. O. "Use Tax" means the tax paid by a consumer for using storing, distributing or otherwise consuming tangible personal property or taxable services inside the City. P. "Well" means an oil and gas well or an injection well. Q. "Well head" means the equipment attaching the surface equipment to wellbore equipment at the well. R. "Well site" means that area surrounding a proposed or existing well or wells and accessory structures and equipment necessary for drilling completion, recompletion, workover, development, and production activities. 17.54.030 Inspections. In recognition of the potential impacts associated with oil and gas drilling and well operation in an urban setting, all wells and accessory equipment and structures may be inspected by the inspectors of the city at reasonable times to determine compliance with applicable provisions of this chapter, the Uniform Fire Code, the Uniform Building Code, and all other applicable standards in this title. For the purpose of implementing and enforcing the provisions of this chapter, the city personnel have the right to enter upon private property after reasonable notification to the operator, which provides the operator an opportunity to be present. 17.54.040 Use permitted by special review. Within all zoning districts, including a PUD planned unit development district, when an applicant wishes to drill a well that has not been previously permitted under this chapter, it is unlawful for any person to perform any such operation, unless a use permitted by special review has first been approved by the city council as provided in this chapter. When a use permitted by special review has been approved for a well, the twinning, sidetracking, or reentering of such well for the purposes of deepening, recompleting, or reworking shall not require a subsequent approval under this chapter. The approval of such use by special G&G-REGS.ORD;9.0512 3 930804 review does not relieve the operator from otherwise complying with all applicable regulatory requirements of the city, state, and federal governments. 17.54.050 Application requirements - site plans. The site plans for a well site submitted with an application for a use permitted by special review shall be submitted on one or more plats or maps, at a scale no less than 1 inch = 50 feet, showing the following information: A. The proposed location of well site facilities associated with the well in the event production is established, if applicable. Future development of the resource shall be considered in the location of the tank battery. Existing tank batteries and transmission and gathering pipe lines within 660 feet of the well site shall be shown. B. The location of layout, including, without limitation, the position of the drilling equipment and related facilities and structures, if applicable. C. True north arrow. D. Existing improvements, if any. E. Existing utility easements and other rights-of-way of record, if any. F. Existing irrigation or drainage ditches within 400 feet of the well site, if any. G. Drainage and erosion control plans for the well site and the area immediately adjacent to the well site, if applicable. H. Location of access roads. I. Well site and existing lease boundaries. J. The names of abutting subdivisions or the names of owners of abutting, unplatted property within 400 feet of the well site or production site. K. The name and address of the operator and the signature and seal of a professional land surveyor. L. The site plan shall contain a statement which reads as follows: "Approval of this use permitted by special review request may create a vested property right pursuant to Article 68, Tide 24, C.R.S." 17.54.060 Application requirements - vicinity maps. The vicinity maps for a well site - submitted with an application for a use permitted by special review shall be submitted on one or more plats or maps showing the following information: o&o-RPGS.ORD;9.051 4 930804 A. Location of all existing water bodies and watercourses, including direction of water flow. This information shall be submitted on USGS 7.5 minute series or assessor base maps which indicate topographic detail and shows all existing water bodies and watercourses with a physically defined channel within a 400 foot radius of the proposed well. B. Location of existing oil and gas wells or injection wells as reflected in OGCC records. This information shall be submitted on a map and shall include any and all wells within a 1000 foot radius of the proposed location for the well. C. Location of drill site. The information to be submitted shall be Commission Form 2 and shall include the parcel tax identification number. 17.54.070 Application requirements - narrative. In addition to the site plans and the vicinity maps required in sections 17.54.050 and 17.54.060 above, the application shall also include the following: A. The operator and surface owner's names and addresses, OGCC Form 1, and designation of agent, if applicable. B. An operating plan. C. A list of all permits or approvals obtained or to be obtained from local, state or federal agencies other than OGCC. D. An emergency response plan that is mutually acceptable to the operator and the appropriate fire district that includes but not limited to a list of local telephone numbers of public and private entities and individuals to be notified in the event of an emergency, the location of the well, and provisions for access by emergency response entities. E. A plan for weed control at the well site. F. A fire protection plan that is mutually acceptable to the operator and the appropriate fire district that includes planned actions for possible emergency events and other pertinent information. Prior to application to the city, a proposed fire protection and emergency response plan shall be submitted to and reviewed by the fire district. G. To the extent it can be determined at the time of application and to the extent applicable, sources of water to be used in drilling operations of a proposed well. H. Sanitary facilities must comply with section 602(g) of the OGCC regulation. 0.1G-REGS.ORD;9.0512 5 • 930894 17.54.080 Review criteria. The city council shall approve an application for a use permitted by special review for a well site if the application submitted by the applicant conforms to the following requirements: A. The site plans for a well site application comply with the requirements of section 17.54.050 of this chapter. B. The vicinity maps for a well site application comply with the requirements of section 17.54.060 of this chapter. C. The narrative for a well site application complies with the requirements of section 17.54.070 of this chapter. D. The well location and setbacks comply with section 17.54.110 of this chapter. E. When applicable, compliance with the provisions for special mitigation of noise required in section 17.54.140 of this chapter. F. When applicable, compliance with the provisions for visual special mitigation measures required in section 17.54.160 of this chapter. G. When applicable, compliance with the provisions for geologic hazards, flood plains, or floodway required in section 17.54.210 of this chapter. H. When applicable, compliance with the provisions for wildlife mitigation procedures required in section 17.54.230 of this chapter. 17.54.090 Notice to proceed. Prior to commencement of operations for which a use permitted by special review has been approved, a "notice to proceed" shall be obtained from the city engineering department. The following documentation must be submitted and approved prior to the issuance of the notice to proceed: A. A copy of the city council resolution approving a use permitted by special review for a well or wells. B. A copy of the approved site plan. C. Copies of any necessary state or federal permits issued for the operation, if not previously submitted. 17.54.100 Building permits required. Building permits must be obtained for all above- ground structures to which the Uniform Building Code applies. 17.54.110 Well location and setbacks. In all areas of the city the following apply: O&G-REGS.ORD;9.0512 6 930804 A. A well site shall be setback not less than 350 feet from any occupied building or occupied building permitted for construction and shall be setback not less than 75 feet from any public right-of-way. B. Production sites shall be setback not less than 350 feet from any occupied building or occupied building permitted for construction and shall be setback not less than 75 feet from any public right-of-way. 17.54.120 Compliance with state environmental requirements. The approval of an oil and gas permit shall not relieve the operator from complying with all current applicable state and federal regulations and standards concerning air quality, water quality, and waste disposal. 17.54.130 Noise regulation and special mitigation measures. A. Any equipment used in the drilling, completion or production of a well shall comply` with Section 25-12-103, C.R.S. (Maximum Permissible Noise Levels). Any operation involving the use of a drilling rig, workover rig, cementing or fracing equipment, is subject to the Maximum Permissible Noise Levels in Section 25-12- 103(5), C.R.S. All other operations shall comply with the maximum permissible noise levels established by statute, if any, for the particular land use existing in the zone in which the operation occurs; provided that the City shall grant relief from these noise level requirements to the extent granted by the Commission. To the extent practicable, exhaust from all engines, motors, coolers, and other mechanized equipment shall be vented in a direction away from occupied buildings. 17.54.140 Special mitigation measures-noise. A. Where a well and well site does not comply with the required setback or other requirements of this chapter or where the well and well site is in an area of particular noise sensitivity, additional noise mitigation may be required. An area of particular noise sensitivity includes but is not limited to the following: Hospitals, dwelling units, nursing homes, hotels, churches, and designated wildlife preserves. In determining noise mitigation, specific site characteristics shall be considered, including but not limited to the following: 1. Nature and proximity of adjacent development, location, and type; 2. Prevailing weather patterns, including wind directions; 3. Vegetative cover on or adjacent to the site; or 4. Topography. B. Based upon the specific site characteristics set forth above, nature of the proposed activity, and its proximity to surrounding development, and type and intensity of the O44O-REGS.ORDh 9.O512 7 930804 noise emitted, additional noise abatement measures may be required. The level of required mitigation may increase with the proximity of the well and well site to areas of particular noise sensitivity or the level of noise emitted by the well and well site. One or more of the following additional noise abatement measures may be required: 1. Acoustically insulated housing or cover enclosing the motor or engine; 2. Noise management plan identifying hours of maximum noise emissions, type, frequency, and level of noise to be emitted, and proposed mitigation measures; or 3. Any abatement measures required by the Commission for high density areas, if applicable. 17.54.150 Visual Impacts and Aesthetics. A. To the maximum extent practicable, oil and gas facilities shall be located away from prominent natural features such as distinctive rock and land forms, vegetative patterns, ditch crossings, city approved open space areas, and other approved landmarks. B. To the maximum extent practicable, oil and gas facilities shall be located to avoid crossing hills and ridges or silhouetting. C. To the maximum extent practicable, the applicant shall use structures of minimal size to satisfy present and future functional requirements. D. To the maximum extent practicable, when clearing trees and vegetation for construction of oil and gas facilities, the applicant shall feather and thin edges of vegetation. E.' To the maximum extent practicable, the applicant shall locate facilities at the base of slopes to provide a background of topography or natural cover. F. The applicant shall replace earth adjacent to water crossings at slopes less than the normal angle of repose with the soil type of the site. G. To the maximum extent practicable, the applicant shall align access roads to follow existing grades and minimize cuts and fills. H. Facilities shall be painted as follows: 1. Uniform, non-contrasting, non-reflective color tones. • 0,10-RPfl5.ORD;9.0512 8 R 930804 2. Color matched to land, not sky, slightly darker than adjacent landscape. 3. Exposed concrete colored to match soil color. 17.54.160 Special Mitigation Measures-visual. Where a well or well site does not comply with the required setback or other requirements of this chapter, or in areas of increased visual sensitivity, such as a location near an occupied subdivision, the applicant shall submit a visual mitigation plan including one or more of the following standards, as appropriate: A. To the maximum extent practicable, exterior lighting shall be directed away from residential areas, or shielded from said areas to eliminate glare. B. One or more of the following landscaping practices may be required where practicable, on a site specific basis: 1. Establishment and proper maintenance of ground covers, shrubs, trees; 2. Shaping cuts and fills to appear as natural forms; 3. Cutting rock areas to create irregular forms; 4. Designing the facility to utilize natural screens; or 5. Construction of fences for use with or instead of landscaping. 17.54.170 Abandonment and plugging of wells. The approval of a use permitted by special review shall not relieve the operator from complying with all Commission rules with respect to abandonment and plugging of wells. The operator shall provide the City with Commission Form 4 at the time that it is filed with the Commission. 17.54.180 Seismic operations. The approval of a use permitted by special review shall not relieve the operator from complying with all Commission rules with respect to seismic operations. All notices which an operator is required to file with the Commission with respect to seismic operations shall be filed with the City on a timely basis. The City shall comply with the same confidentiality requirements which bind the Commission. 17.54.190 Signs. The approval of an oil and gas permit shall not relieve the operator from complying with all Commission rules with respect to signs. In addition, the owner or operator shall maintain in good, readable condition all signs required by such Commission regulations. 17.54.200 Reclamation. The approval of an oil and gas permit shall not relieve the operator from complying with all Commission rules with respect to site reclamation. D&G-REGS.GRD:9.0512 9 930804 17.54.210 Geologic hazard, flood plain, floodway location restrictions. All equipment at drilling and production sites in geological hazard and floodplain areas shall be anchored to the extent necessary to resist flotation, collapse, lateral movement or subsidence and to the extent necessary to comply with the Federal Emergency Management Act. 17.54.220 Access roads. All private roads used to access the tank batteries and the well head shall be improved and maintained according to the following standards: A. Access roads to tank batteries shall be subject to review by the City Engineer in accordance with the following minimum standards: 1. A graded gravel roadway having a prepared sub-grade and an aggregate base course surface a minimum of six inches thick compacted to a minimum density of 95 percent of the maximum density determined in accordance with generally accepted engineering sampling and testing procedures. The aggregate material, at a minimum shall meet the requirements for Class 3, Aggregate Base Course as specified for aggregate base course materials in the Colorado Department of Transportation's "Standard Specifications for Road and Bridge Construction," latest edition. 2. Graded so as to provide drainage from the roadway surface and constructed to allow for cross drainage of waterways (such as roadside swales, gulches, rivers, creeks, and the like) by means of an adequate culvert pipe. Adequacy of the pipe is subject to approval of the city engineer. 3. Maintained so as to provide a passable roadway reasonably free of ruts at all times. B. Access roads to well head shall be subject to review by the City Engineer in accordance with the following minimum standards: 1. A graded roadway approved by the city engineer. 2. Graded so as to provide drainage from the roadway surface and constructed to allow for cross drainage of waterways by means of an adequate culvert pipe. Adequacy of the pipe shall be subject to approval of the city engineer. 3. Maintained so as to provide a passable roadway generally free of ruts. C. An extra-legal vehicle or load permit shall be required for all extra-legal vehicles or loads as defined in sections 42-4401 through 411, C.R.S., which use city streets. Said permit, if required, shall be obtained from the city traffic engineer prior to such use. ORG•REGS.GRD;9.0512 10 930804 17.54.230 Wildlife. The applicant shall not engage in activities which, in the opinion of the Division of Wildlife, threaten endangered species. 17.54.240 Conflicting provisions. In the event of a conflict between the provisions of this chapter and any other provision of title 17, the provisions of this chapter shall control. 17.54.250 Emergency Response Costs. The operator shall reimburse the city or the fire district for any emergency response costs incurred by city or the fire district in connection with activity at the well site or production site, except that the operator shall not be required to pay for emergency response costs where the response was precipitated by the mistake of the City or of other third parties or was the result of the acts of third parties. 17.54.260 Unlawful to construct or install unapproved oil and gas facilities. Except as otherwise provided in this chapter, it is unlawful to construct, install, or cause to be constructed or installed, any oil and gas facility within the city unless approval has been granted by the city. The unlawful drilling or redrilling of any well or the production therefrom is a violation of this chapter. 17.54.270 Penalty. Any person, firm, corporation, or legal entity that constructs, installs, or uses, or which causes to be constructed, installed, or used, any oil, gas, or injection well, production site, or well site in violation of any provision of this article or of the conditions and requirements of the oil and gas special use permit may be punished as provided in chapter 1.12 of the Broomfield Municipal Code. Each day of such unlawful operation constitutes a separate violation. 17.54.280 Civil action. In case any building or structure is or is proposed to be erected, constructed, reconstructed, altered, or used, or any land is or is proposed to be used, in violation of any provision of this article or the conditions and requirements of the oil and gas special use permit, the city attorney, in addition to the other remedies provided by law, ordinance, or resolution, may institute an injunction, mandamus, abatement, or other appropriate action or proceeding to prevent, enjoin, abate, or remove such unlawful erection, construction, reconstruction, alteration, or use. 17.54.290 False or inaccurate information. The city manager may revoke approval of a facility if it is determined after an administrative hearing, held on at least ten days notice to the applicant, that the applicant provided information or documentation upon which approval was based, which the applicant, its agents, servants and employees, knew, or reasonably should have known, was materially false, misleading, deceptive, or inaccurate. 17.54.300 Severability. If any provision of this chapter is found by a court of competent jurisdiction to be invalid, the remaining provisions of this chapter will remain valid, it being the intent of the city council that the provisions of this chapter are severable. 17.54.310 Prospective application. Unless specifically provided otherwise, this chapter shall apply only to wells which are drilled in the city on and after the date this chapter is adopted. The reentering of a well in existence prior to the date of adoption of this chapter, for purposes of 08G-REGS.DRD;9.0512 11 930804 deepening, recompleting, or reworking, shall not require approval of a use permitted by special review as required by this chapter. SECTION 2. Section 17.30.030 of the Broomfield Municipal Code is amended to read as follows: 17.30.030 Application-contents. A. The application shall contain a site plan containing a statement which reads as follows: "Approval of this special review request may create a vested property right pursuant to Article 68, Title 24, C.R.S.," showing, when applicable, the location of the buildings(s), off-street parking areas, off-street loading areas, service and refuse areas, ingress and egress to the property; major landscaping or other screening proposals, signs, pedestrian areas, a time schedule for development, and any other items which may help the planning and zoning commission to make a reasonable recommendation. The application for usesetariitted by special review for oil or gas;wells orfo it ectiort wells shall follow the applic on requirements set forth fn chapter 1734 of title 17 SECTION 3. Section 17.30.040 of the Broomfield Municipal Code is amended to read as follows: 17.30.040 Request-review. The planning and zoning commission shall hold a public hearing on the request. Notice shall be given in accordance with the provisions of chapter 17.52 of title 17. A Except far osl and gas wells or injection wells factors to be considered are the relation of the requested uses to the character of the surrounding neighborhood, the desirability and need for such a use in the specific area of the community, adverse environmental influence that might result from its location, and, in general, compliance with the intent of this title. Rt l7ai oil and jai-tank of WIectfon wsll4 the rem criteria shall lie the factors set tcrth in section 1734080 of:.chapter 7. SECTION 4. Chapter 16.28 of the Broomfield Municipal Code is amended to add a new section 16.28.180 to read as follows: 16.28.180 Oil and gas wells or injection wells. No residential lots in any subdivision shall be platted any closer than 200 feet from a well site as "well site" is defined in subsection 17.54.020 of the Broomfield Municipal Code. • O&G-REGS.ORD:9.0512 12 930804 Section 5. The penalties for violation of this ordinance are prescribed in chapter 1.12 of the Broomfield Municipal Code. Section 6. This ordinance shall be effective seven days after publication following final passage. INTRODUCED AND APPROVED after first reading on March 9, 1993, and ordered published in full. INTRODUCED A SECOND TIME and approved on May 11, 1993, and further ordered published in full, as amended. CITY OF BROOMFIELD, COLORADO Mayor ATTEST: Lir rranrci-- City Clerk Cc,�?Li . ` f • APPROVED AS TO FORM: SEAL: ca.a-we City Att ey First Publication: March 11, 1993 Second Publication: May 20, 1993 oac-REGS.oRD;9.0512 13 930804 ATTACHMENT BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF CHANGES TO THE RULES AND ) CAUSE NO. 1 REGULATIONS OF THE OIL AND GAS CONSERVATION ) DOCKET NO. 1-12-20 COMMISSION OF THE STATE OF COLORADO AMENDED D-J BASIN POLICY FOR CAUSE NOS. 499 , 232 , 407, 250, 496 AND 493 TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: I. FINDINGS A. The Colorado Oil and Gas Conservation Commission ( the "Commission") has facilitated a series of meetings of an ad hoc task force whose purpose has been to discuss and attempt resolution of various issues arising out of conflicts between surface landowners/tenants and oil and gas mineral owners/operators in the State of Colorado. B. The said ad hoc task force made a formal report to the Commission at the Commission 's regularly scheduled hearing on December 21, 1992 . At the request of the Task Force, the Commission held an informational hearing on January 20, 1993 , to consider the adoption of policies and guidelines, and to consider the possibility of future rule making, all relative to the following issues: (1) The Commission' s procedures relating to bonds and bonding for surface damages; (2) The requirement that the surface owner/tenant be consulted prior to the location of surface facilities in connection with oil and gas operations; (3) Reclamation and site stabilization requirements, 930804 both interim and permanent; (4) The time period for giving notice to the surface owner/tenant that surface activities will occur in connection with proposed oil and gas operations ; (5) The procedure for enforcing the Commission 's rules, especially as they relate to activities which affect the surface of lands; and (6) The procedure for the surface owner/tenant to appear before the Commission through representatives or representative organizations. C. The Commission has considered the report made to it on December 21, 1992 , and has considered the information presented at the January 20, 1993 , informational hearing. D. Various concerns which have been brought to the attention of the Commission at the above-described Commission hearings can be addressed by action which is within the scope of the Commission 's statutory authority. Such action should include rule making and certain rule changes. On an interim basis and prior to and during the pendency of formal rulemaking proceedings, it is appropriate and necessary to address these issues, in part, by the adoption of guidelines and procedures applicable only to the following: 1. Oil wells and gas wells to be located within the Subject Lands, as defined in Finding E below, for which Commission permits are applied on or after February 15, 1993 . 2. Reclamation and reclamation activities occurring on oil or gas wells or related facilities on or after February 15, 2 930804 1993 , within the Subject Lands, as defined in Finding E. below. 3 . Alleged violations of Commission rules and regulations and of this Order. E. The term "Subject Lands, " for purposes of this Notice, means all lands covered by and included within Commission Cause Nos . 232 , 250, 407, 493 , 496 and 499 . F. The adoption of the interim guidelines and procedures is necessary for the protection of public health, safety and welfare in the Subject Lands. II. ORDER WHEREFORE, the Commission hereby orders that the following guidelines and procedures shall be effective February 15, 1993 (the "Effective Date") and shall be limited in their application as hereinafter set forth: A. NOTICE, CONSULTATION, BONDING. The following guidelines and procedures shall apply, and shall only apply, to each oil and gas well for which a permit to drill under Rule 303 is applied on or after the Effective Date and which is to be located within the boundaries of Subject Lands: 1. Thirty Day Notice. Before any person shall commence operations for the drilling or reentry of any well, such person shall evidence his/her intention to conduct such operations by giving the surface owner and local governmental designee notice thereof in accordance with this paragraph 1. Such notice is hereinafter referred to in this Order as the "Thirty Day Notice. " In the event of difficulty in determining the identity of surface 3 930804 owner for the purpose of giving the Thirty Day Notice, the local county tax records may be relied upon. The Thirty Day Notice shall be in writing, shall be sent by certified mail (return receipt requested) , and shall give the estimated date that operations with heavy equipment are to commence. Included with the Thirty Day Notice shall be the following: (a) The name and phone number of the operator and the name of the individual representing the operator who can and will consult with the surface owner concerning the proposed oil and gas operations and especially the location thereof. (b) A return addressed, postage prepaid postcard on which the recipient may request his or her preference with respect to the consultation hereinafter provided for. (c) A legal description (or plat) indicating the area under the Commission's rules or orders within which the proposed well is proposed to be located. The Thirty Day Notice shall be sent not more than one hundred eighty (180) days and not less than thirty (30) days prior to commencement of operations with heavy equipment. If known at the time the Notice is given, the Thirty Day Notice shall describe by diagram the proposed location and dimensions of the drill site, location of the well, production facilities, pipelines, roads and other areas to be used for petroleum operations. 2 . Recompletion u « _. Before any person shall commence operations for the recompletion of any well, such person shall evidence his/her intention to conduct such operations by 4 930804 giving the surface owner notice thereof in accordance with this paragraph 2 . In the event of difficulty in determining the identity of surface owner for the purpose of giving such Notice, the local county tax records may be relied upon. Such Notice shall be in writing, shall be sent by certified mail (return receipt requested) , and shall give the estimated date that recompletion operations are to commence. Such Notice shall be sent not more than thirty (30) days and not less than seven (7) days prior to • commencement of recompletion operations. In the event the well to be recompleted is located upon irrigated crop lands and the recompletion operations are to take place during the irrigation season, the provisions of Paragraph 6 of the policy shall also be complied with. This Notice requirement shall not apply if it has been waived by the affected surface owner in writing. 3 . Form2 ADorova ---- . �. Unless a variance is granted under Paragraph 4 below, the Director shall not approve or deny the Form 2 ('pplication for permit to drill under Rule 303) for the well described in the Thirty Day Notice prior to the expiration of the seven (7) day period provided for in Rule 303 .d. nor prior to the expiration of the 30-day minimum notice period provided for in Paragraph 1 above. Eadh operator submitting a Form 2 shall add to it a copy of the Thirty Day Notice and certified receipt from the surface owner or, in lieu thereof, a verified attachment indicating the date that the said 30-day period will expire. 4 . Variancg. The Director may, upon request of the operator, waive the 30-day minimum notice period provided for in 5 930804 Paragraph 1 above and approve or deny the Form 2 , but only in the event that the operator files an affidavit and demonstrates therein to the Director' s satisfaction that on the date the affidavit is filed one or both of the following circumstances apply to the well referenced in the Form 2 : (a) The operator has the right or obligation under the terms of an existing contract to drill the well and that the operator owns a leasehold estate or has a right to acquire a leasehold estate under said contract which will be terminated or lost unless the variance is granted. (b) The surface owner to be affected by the granting of the permit has waived the said 30-day minimum notice requirement in writing. 5. Consultation Re uir „t In locating roads, production facilities and well sites and in making the determinations required under Rules 802 (a) and (b) , the operator shall consult in good faith with the surface owner if so requested after receipt by the surface owner of the Thirty Day Notice. The following rules shall govern such consultations: (a) The consultation with the surface owner shall occur at or after the time a request is made by the surface owner, but not less than seven (7) days prior to the commencement of operations with heavy equipment upon the lands of the surface owner. (b) When consulting with the surface owner, the operator shall furnish a diagram describing the proposed drilling 6 930804 location and dimensions of the drill site, locations of the well, production facilities, pipelines, roads and other areas to be used for petroleum operations, if not previously furnished to such surface owner or if different from what was previously furnished. (c) The purpose of such good faith consultation requirement is to allow the party being consulted to offer comments to the operator regarding preferred locations and timing for the construction of these production facilities, roads and well sites. (d) In making its final decision concerning the location and timing of construction of such road, production facilities and well sites, the operator shall have due regard for preferences concerning such locations as expressed by the surface owner during the consultation. "Due regard" shall mean the consideration of reasonable requests by the surface owner to move such locations in order to minimize inconvenience to then existing surface uses. "Due regard" shall not mean that the operator shall be required to accept locations or time schedules which would unreasonably increase the operator's cost of operations, which would require the operator to compromise its geological and geophysical interpretations in connection with well site location, which would require the siting of roads, facilities and well sites in violation of applicable rules and orders of the Commission or which would result in the operator losing or forfeiting its 7 930804 fair opportunity to drill and develop its mineral resources . (e) If mutual agreement concerning the location of well sites, roads and production facilities is not achieved at least seven (7) days prior to the day heavy equipment operations are due to be commenced, the surface owner may request that the designee of the Chairman of the Commission attend and moderate another meeting between the surface owner and operator (or one (1) designated representative for each) in an effort to reach agreement. Such meeting shall be held in the County where the well and facilities are to be located within the seven days prior to final action by the Director upon the Form 2 for the well in question. If such joint meeting does not result in agreement between the surface owner and the operator concerning location of well sites, roads and production facilities, then the Chairman's designee shall make a full written report thereon to the Commission including such person's evaluation of why agreement was not reached and of whether further action by the Commission is necessary. 6. artialltd_sropa If a well is to be drilled upon irrigated crop lands during the irrigation season, the operator, in addition to meeting the consultation requirements of Paragraph 4 above, shall contact the party in possession of the surface at least fourteen (14) days prior to commencement of surface activities by the operator and arrange to coordinate drilling operations to avoid unreasonable interference with irrigation plans and activities. 8 930804 7 . Damacre Bond. Prior to entering a drill site with heavy equipment, the operator shall negotiate in good faith with the surface owner for the payment of damages, if any, which may be caused by the drilling or producing operations. In the absence of an agreement between the surface owner and the operator, and in instances in which the owner of the surface is not a party to the oil and gas lease, prior to commencement of operations, the operator shall post a good and sufficient bond (the "Damage Bond") payable to the State of Colorado, conditioned as follows: (a) that, upon completion of drilling operations, the party in possession of the surface shall be paid for crop losses resulting from use of the premises by the operator, the amount of the payment to equal the value of the lost crop for the growing season or seasons during which the well was drilled. Such value shall be determined by reference to current agricultural industry published standards for the crop or crops in question. (b) that prior to production operations, or to abandonment of the well if it is not completed as a producer, the party in possession of the surface shall be paid for any unreasonable damage to farm land resulting from the use of the premises by the operator. "Unreasonable damage to farm land" shall mean, as to both cultivated and uncultivated farm lands, any and all loss of current fair market value of the land as farming land attributable to its reduction in productivity due to oil and gas operations but to the extent and only to the 9 930804 extent that reclamation thereof is not performed'.in accordance herewith and in accordance with the Commission ' s rules. In no event shall the total amount of the Damage Bond exceed the current fair market value of the affected land. B. RECLAMATION. The following guidelines and procedures shall apply to all future oil and gas wells on the Subject Lands and to any existing wells not yet abandoned: 1. Fencing. Each drillsite and access thereto shall be fenced or otherwise marked to ensure that vehicles and other equipment and personnel moving to and from the drillsite remain within a defined roadway or path and to avoid unnecessary surface disturbance and to prevent the intrusion of livestock upon the drillsite. 2 . Topsoil. During all excavation operations occurring after the Effective Date, all topsoil, to a depth determined by the Soil Conservation Service of the United States Department of Agriculture, shall be stockpiled separately from all underlying subsoil. In segregating topsoil and subsoils, the operator shall rely on apparent changes in physical characteristics such as color, texture, density and consistency. Should the drill site be fenced, all excavated soils shall be stockpiled within such fenced area if practicable to do so. All soils, stockpiled or otherwise, shall be protected from degradation due to contamination, compaction and wind and water erosion, and all surface and underground water resources associated with the premises shall be protected from 10 930804 contamination during well drilling and completion, or reentry operations . 3 . Interim Stabilization and Reclamation. Interim site maintenance and soil stabilization and concurrent reclamation of drilling locations shall take place during operations as conditions permit or require, but in no event less than is necessary to meet standards, if any, established by the Commission from time to time. 4 . Affected Areas. All areas affected by operations shall be reclaimed to standards established by the Commission, if any, or in the absence of such standards, as near as practicable to their original conditions (excluding areas reasonably needed for production operations during continuance of such operations) as soon as conditions permit following the completion of well drilling and completion, or reentry operations, but no later than six (6) months after said completion. The Director may extend said six-month period due to conditions beyond the control of the operator. Upon any such extension, the operator shall notify the affected surface owner. Prior to any such extension, the Director shall consult with the surface owner regarding any special circumstances which might affect reclamation. 5. Final Reclamation. Not less than seven (7) days before any final reclamation is to take place, the operator shall notify the surface owner that such is to occur and when it is to occur. The party responsible for such reclamation shall be the operator. The operator shall consult with the local office of the Soil Conservation Service of the United States Department of 11 930804 Agriculture and the surface owner with respect to- the proposed reclamation operations including any special considerations relating thereto. 6. Final Standards. Following the removal of all equipment and materials brought upon the premises that are not necessary for the continued operation of the well, all excavated subsoil and topsoil shall be replaced in their original relative positions and contour prior to excavation. As soon as all soils compacted during well drilling and completion, or reentry operations that are to be revegetated are to a state of sufficient dryness, they shall be shattered to the depth necessary and tilled adequately to reestablish a proper seedbed. If perennial vegetation was present prior to the aforesaid operations and destroyed by such operations, such vegetation shall be reestablished by the operator to its original condition prior to such operations as nearly as practicable or to standards, if any, established by the Commission. The goal of such activities shall be to restore promptly the affected area to its productivity level prior to the oil and gas operations, as such level can be documented by landowner, County, State Soil Conservation Service and extension service records; however, the Commission recognizes that achieving such goal may not always be practically or technologically possible. 7. Reclamation Bond. The Commission may, on a discretionary basis, require that an operator, before or after commencement of operations, post a good and sufficient bond payable • 12 930894 to the state of Colorado (the "Reclamation Bond") conditioned that the lands affected by operations associated with the drilling and operating of such well shall be stabilized and reclaimed in accordance herewith and with the Commission 's rules. C. BOND FORECLOSURE. Any surface owner whose lands lie within the Subject Lands and whose lands are covered by any bond (i. e. , Damage or Reclamation) payable to the State of Colorado shall have the right to request that the Commission foreclose upon that bond in the case where that surface owner alleges that the operator of the well drilled upon such lands has not paid such surface owner for crop losses and unreasonable land damage and/or has not complied with this Order and the Commission ' s rules concerning reclamation. Such request shall be made in writing to the Director at any time no more than one (1) year after the well site has been abandoned. Thereafter the following shall occur: (a) Following receipt of such letter, the Director shall undertake to determine the merits of the complaint and shall inspect the wellsite. (b) If the Director determines that foreclosure upon the bond is recommended, he/she shall make such recommendation to the Commission at its next scheduled hearing and shall give the operator written notice thereof. At the hearing, the operator shall have the burden of proof of showing that the complaining surface owner has been paid for crop losses or unreasonable land damage as required herein, and the requisite 13 930804 reclamation has occurred. Failing in such burden of proof, the Commission shall foreclose upon such bond and use the funds in accordance with the terms of the bond. Any funds not so used shall be paid to the party who posted the bond. (c) If the Director does not recommend foreclosure upon the bond, the surface owner may file an application with the Commission to request foreclosure upon the bond at its next scheduled hearing and shall give the operator written notice thereof. At the hearing, the burden of proof will be upon the surface owner to show that he/she has not been paid for crop losses or unreasonable land damage or that the requisite reclamation has not occurred. (d) Foreclosure upon a bond shall not be construed as releasing the operator from any obligations to comply with the Commission's rules or as releasing the operator from any liabilities under applicable law. D. ALLEGED VIOLATIONS. The following procedures shall apply to all oil and gas operations throughout the State of Colorado: 1. Upon written protest by the surface owner, surface tenant, or local governmental designee alleging a violation of any of the rules of the Commission or of this Order, the Commission shall promptly take such action, including emergency action and the imposition of penalties under C.R.S. § 34-60-121, as it may deem necessary and appropriate in response thereto to bring the site into compliance. 14 930804 2 . Any surface owner or group of surface owners alleging such a violation may appear before the Commission, with or without counsel , to make statements in support of such allegation and without payment of a docket fee. E. GENERAL. Terms used but not defined in this Order shall have the meanings given such terms in the Commission 's rules. This Notice may be executed in counterparts by each of the members of the Commission and shall be effective as of February 15, 1993 , upon the execution of a counterpart by a majority of the members of the Commission. • 15 930804 Lands Included D-J Basin Policy Cause Nos. 232, 250, 407, 493, 496, and 499 Twp Range 2S 64W W/2 2S 65W Sections 1 - 24 2S 69-70W All 1S 64-70W All 1N 64-70W All 2N 64-69W All 2N 70W Sections 1-5, 8-36 3N 63W W/2 3N 64-69W All 3N 70W Sections 1, 12, 13 , 21-28, 33-36 4N 63W W/2 4N 64-67W All 4N 68W Sections 1-3 , 9-17, 21-28, 32-36 4N 69W Sections 2-11, 14-22, 27-34 5N 63W SW/4 5N 64-65W All 5N 66W Sections 1 S/2, 2 S/2, 3-36 5N 67W All 5N 68W Sections 1-16, 23-26,34-36 5N 69W Sections 5-8, 17-19, 24, 25, 30 6N 64W All 6N 65W Sections 1-18, 23-26, 31-36 6N 66W Sections 1-14, 19 W/2, 24 N/2, 30, 31 6N 67-68W All 6N 69W Sections 1-4 , 9-16,21-28, 33-36 16 930804 • LEGAL STANDARDS Attachment 5 A. General Standards for Preemption In Obome v. Board of County Commissioners, the Court of Appeals found that permit conditions imposed by Douglas County related to matters that had been delegated in the Act to the Commission, and that local authority had been preempted.' The County was directed to issue the permit without the offending conditions.' The County failed to timely seek certiorari, and both industry and local governments were left to wonder and argue as to whether the Colorado Supreme Court would have affirmed or reversed. Four years later, that question was answered when two cases worked their way to the Colorado Supreme Court. In Board of County Commissioners v. Bowen/Edwards Associates 4 the Court found that the Act did not expressly preempt local regulation, and an intent to occupy all aspects of oil and gas regulation could not be found. The Supreme Court held, however, that the La Plata County regulation there considered would be preempted if it caused an "operational conflict." The case was remanded to the trial court for a factual determination as to the existence and extent of operational conflict. On the same day, in Voss v. Lundvall Brothers, Inc.,' the Supreme Court considered a home rule ordinance of the City of Greeley which banned drilling in all City zoning districts. Greeley argued that land use control, even of oil and gas drilling, was a matter of local concern, and home rule cities were free to regulate in the area. The Court disagreed, finding instead that regulation of oil and gas operations was a matter of mixed state and local concern; in the event of conflict, state law would prevail over home-rule regulation. Unlike Bowen/Edwards, in Lundvall Brothers the Supreme Court did not remand for a determination as to whether the drilling ban presented a conflict. Rather, the ban was declared void as a matter of law because it conflicted with the Commission's well location and spacing rules, and frustrated the conservation goals of the Act. The Supreme Court's opinions in Bowen/Edwards and Lundvall Brothers leave many questions unanswered. Operational conflict was not defined by the Court, and the type of local regulation which will offend the principles articulated was left for speculation.' A close examination of earlier Colorado preemption cases respecting other subjects gives some guidance. Those cases hold that a conflict will exist if the local ordinance either licenses or permits what the statute prohibits, or proscribes, burdens or limits what the statute authorizes.' Put another way, a local regulation will be partially or totally preempted to the extent it materially impedes or destroys a state interest.' At first blush, these tests seem heavily weighted in favor of preemption. Local regulation must be harmonized, however, if the local regulation is not irreconcilable with state UNION\STANDARD.LGL 072993-1112 930804 regulation.' There may also be room for a local ordinance to go farther than state regulation on the same subject, if in effect it does not authorize what the state has prohibited or prohibit what the state has authorized.I° Because preemption is not total, each provision of a local oil and gas regulation must be examined to determine whether it presents a conflict. The determination as to whether a conflict exists will be made on a case-by-case basis and in most cases will involve a factual determination. It is possible, however, to make predictions as to the general types of local regulations which are likely to be preempted and which are likely to be permissible. For this purpose, regulations can be divided into three classes, (1) technical, (2) safety, aesthetic and reclamation, and (3) location. The local permit conditions which were struck down by the Court of Appeals in Oborne were largely technical in nature. That case was cited with approval in Bowen/Edwards perhaps because the Act's technical requirements were found to be "extensive." " The Court noted that technical matters regulated by the Commission include drilling and production, casing, plugging, abandonment, the furnishing of security for drilling operations, and virtually all down-hole concerns.'2 The Bowen/Edwards Court suggested that local regulation of technical matters might conflict even when, "no such conditions are imposed under the state statutory or regulatory schemes. The implication here is that even in the absence of express or implied preemption, state regulation of technical aspects of oil and gas development is so pervasive as to give rise to a presumption that any regulatory gaps are intentional. Such an intentional omission would leave no room for local regulation within the gap. The Court made no such implication with respect to safety, land restoration and aesthetic matters. Here, preemption will only occur to the extent of actual operational conflict.14 Prior to 1984, the Act and its regulations had little to say about safety. In that year the Commission was given express authority over "health, safety and welfare" of the general public with respect to oil and gas operations. The Commission has since adopted two significant amendments which broadened its regulatory scheme. In 1985, it adopted Rules 601-606, which set standards for well and equipment set-backs from surface features, surface and down-hole equipment, safety standards and training, fire prevention and seismic operations. Last year, the Commission promulgated comprehensive amendments to its rules. These amendments were adopted in response both to the lower court holding in Bowen/Edwards and Lundvall Brothers that local regulation was entirely preempted, and local government concern that Commission rules provided neither adequate protection nor opportunity for local input. These amendments address signage, notification of and comment by local governments, site UNION\STANDARD.LOL 2 072993-1112 930804 reclamation, waste disposal, surface owner notification, wildlife protection, operations in areas of high population density, air drilling requirements, noise abatement, and aesthetic concerns such as surface disturbances, lighting and painting. In adopting these post-Bowen/Edwards amendments to its rules, the Commission considered a wide range of possible regulations, and imposed those which it believed to be consistent with its statutory goals. More stringent local regulations in this area must be analyzed on a case-by-case basis to determine whether, in operational effect, they prohibit what the state has authorized or materially frustrate the state purpose. At a minimum, this dramatic expansion in Commission rules respecting safety, reclamation and aesthetic concerns leaves little open field in which local governments may run. The thorniest problem may be local attempts to control well location, either through prohibition of oil and gas operations in certain zoning districts, the imposition of set-backs, or otherwise. The compatibility of an extractive use with a residential or commercial use, or set- back of the extractive use from other uses, is at the heart of local zoning authority. Yet the Court's decision to strike down the drilling ban in Lundval—Withers rested heavily on the necessity for wells to be drilled in an established pattern and at authorized locations to optimize recovery and avoid waste.16 The same logic applies equally to the prohibition of drilling in particular zoning districts; such districts could in some instances be larger than another entire municipality. Because well location is specifically authorized by the Commission, and proper well location is so important to recovery of oil and gas, it is likely that local attempts to regulate well location will be found to prohibit that which the Act authorizes and will be void. The case against local regulation of well location is bolstered by the Commission's 1992 amendments, which provide added protection for drilling in "high density" areas." The rules impose increased set-backs, require fencing, and encourage consolidation of well locations. 18 Drilling is not prohibited in residential areas. In effect, however, no well may be drilled in an area designated as "high density" without the consent of all adjacent surface owners. B. City or County Regulations Going Farther Than State Regulations on the Same Subject As a general principle, local regulation may go farther than state regulation on the same subject so long as there is no conflict. The real question, however, is under what circumstances will such further local regulation constitute a conflict. The determination of that question seems to hinge on whether the state statute merely establishes a prohibition or a standard, or whether it actually licenses, permits or authorizes activity. In Ray v. City and County of Denver 19 the Court stated: ". . .where both an ordinance and a statute are prohibitory and the only difference between them is that the ordinance goes further in its prohibition, but not counter to the prohibition under statute, and the municipality does not attempt to authorize by the ONION\STANDARD,LGL 072993-1112 3 930804 ordinance what the legislature has forbidden or forbid what the legislature has expressly licensed, authorized, or required, there is nothing contradictory between the provisions of the statute and the ordinance. . . ." The Ray Court went on to state that as to preemption, the question hinges on ". . . whether the state law confers authority, as a matter of right. . ." to do a certain thing, or whether the state statute merely set a ceiling or floor, with local governments free to set standards above or below.20 This distinction was reaffirmed by the Court thirty years later in Lakewood Pawnbrokers v. City of Lakewood21, when it stated: The test for determining whether such a conflict exists is whether the ordinance in question either licenses or permits that which the statute prohibits or whether it proscribes, burdens or limits that which the statute authorizes. Applying this principle, the Court struck down a municipal ordinance to the extent that (1) it imposed two bonds, rather than the one bond required by state law, (2) sought to impose a more stringent interest rate limitation than that imposed by state law, and (3) sought to limit the scope of business where state law, by implication, contained no such limitation on the authorized activity. Though the Court in Lakewood Pawnbrokers found that the regulatory scheme was "comprehensive", it found some room for local government regulation, by upholding a provision of the local regulation where no such provision was found in state law.22 The Colorado Oil and Gas Conservation Act is a comprehensive system under which permits may be issued for the drilling of wells "under such rules and regulations as may be prescribed by the commission."23 Taken as a whole, the statutory scheme, and the regulations promulgated thereunder, clearly permit, authorize and license the drilling of wells for which permits have been issued, pursuant to rules and regulations adopted under the Act. The Act is not a statute which simply limits, prohibits or even regulates conduct. Accordingly, under the tests set forth in Ray and Lakewood Pawnbrokers local regulation cannot impose additional or more stringent standards on the same subject. C. City or County Regulations Which Mirror or Require Compliance with State Regulations Local regulations which simply mirror state statute or regulation seem innocuous, in that they impose no new burdens. Though they are redundant, they do not conflict, and as a result, Courts have not found them void. For instance, in City of Aurora v. Martin24 the Court stated, There is nothing basically invalid about legislation on the same subject by both a ONION\STANDARD.LGL 072993-1112 4 930801 (municipality) and the state, absent some conflict between the two regulations. The problem may occur, however, if a local government interprets or enforces its regulations in a manner inconsistent with that of the state. That appears to be matter not yet ripe for review. UNION\STANDARD.LGL 072993-1112 5 930804 1 . 764 P.2d 397 (Colo. App. 1988) . 2 . The Court of Appeals' opinion actually went much farther. It stated that it was the intent of the General Assembly to vest the Commission with sole authority to regulate subjects addressed by the Act, and to, " . . bar any local regulation addressing those subjects . " Id. at 402 . But to avoid overruling the Oborne decision, the Supreme Court adopted a limited interpretation of the case, stating, " . . . we read the Oborne decision as turning on a narrow operational conflict between the conditions imposed by the county . and the regulatory authority vested in the Commission. Board of County Commissioners v. Bowen/Edwards Associates, 830 P. 2d 1045, 1060 (Colo. 1992) . 3 . The permit conditions sought to be imposed by Douglas County were : a dirt berm for sediment ponds; land reclamation requirements; a bond to cover reclamation, protection of water supplies and disposal of liquid waste; assurances regarding surface spills; a fire protection plan; cement casing requirements; independent monitoring and advise requirements; and protection of underground water supplies . 4 . 830 P. 2d 1045 (Colo. 1992) . 5 . 830 P. 2d 1061 (Colo. 1992) . 6 . It appears that preemption will apply equally to regulations of both counties and municipalities, whether they be statutory or home-rule. In Lundvall Brothers, the Court stated that what it said in Bowen/Edwards concerning the land-use authority of a county, "applies to a home-rule city. " Id. at 1068 . This follows from the Court' s finding that oil and gas regulation was a matter of mixed state and local concern. 7 . See National Advertising Co. v. Department of Highways, 751 P. 2d 632, 637-638 (Colo. 1988) ; Lakewood Pawnbrokers, Inc . v. City of Lakewood, 517 P.2d 834, 836-838 (Colo. 1974) . 8 . 830 P. 2d at 1059 . UNION\STANDARD.LGL 072993-1112 6 930804 9 . C & M Sand & Gravel v. Board of County Commissioners, 673 P. 2d 1013 , 1016 (Colo. App. 1983) . 10 . Ray v. City and County of Denver, 109 Colo. 74 , 121 P. 2d 886, 888 (1942) . 11 . See 2 C. C.R. 404-1 Rules 317-335 . 12 . 830 P. 2d at 1049, fn. 2; C.R.S . § 34-60-1O6 (1) (a) and 106 (3 . 5) . 13 . Id. at 1060 . 14 . Id. 15 . See 2 C. C.R. 404-1 Rules 601-106 . 9 . 16 . 830 P. 2d at 1067 . 17 . A "high density" area is any tract of land designated as such by the Commission upon application and after notice and hearing. 18 . See 2 C. C.R. 404-1 Rule 6O3 .b (1) - (7) . 19 . 121 P. 2d 886, at 888 (Colo. 1942) . 20 . Id. 21 . 517 P. 2d 834 , at 836 (Colo. 1974) . 22 . See also Fleckman v. City of Greeley, 673 P. 2d 376, 377 (Colo. App 1983) . "To the extent that the requirements imposed by the city ordinance are more onerous than those imposed by the state statute, the latter controls . " State Compensation Insurance Fund v. City of Colorado Springs, 602 P. 2d 881, 882 (Colo. App. 1979) . " • . . to the extent that the city ordinance imposes more stringent requirements than those imposed by the state statute the state statute controls . " 23 . C.R. S. Section 34-60-106 (1) (f) . UNION\STANDARD,LGL 072993-1112 7 9q(lAoS 24 . 507 P. 2d 868, 869 (Colo. 1973) . UNION\STANDARD.LGL 072993-1112 8 930$Q4 ATTACHMENT Michigan court awards $90 million to oil firm Michigan has appealed a I otherwise nas never perma- surface operations on the stare court ruling seen as a neney canned drilling in any p figures used to determine tr, landmark der co,could nave son ao the or- award Miller Bits. Gene decision on corn- other area in Michigan- A der have allowed CireC- pens ation to companies temporary prohibition was tional willing into potential re- agar H. Bits. General Mar blocked from developing re• enacted in the Pigeon River sources. p agarit Gas Miller told the holm sources because of environ- State Forest. but drilling ulti• pan Oil GabNews car mental o Instead, the state net- settlement ny would be amenable e opposition_ moiety was allowed with spa- cised its right of eminent do- discussions w�:- Last Sept. 20 Michigan's dial precautions. main. saying it wished to de- Michigan officials. Ingram County Circuit Court termine Just compensation. Meantime, he noted Inc Judge Peter Houk ordered Eminent domain That determination yielded state could be losing anclhe• the state to pay about $90 Upon receiving the prchibi• data indicating there likely $30,000/day in added inter• million to Miller Bros. Oil & lion order. Miller Bros. filed a are six reefs on the acreage est If It drags out an appea.. Gas Producers, Grand Rap- notice with the court notifying with average oil reserves of In a talk before a meetinc ids, Mich., its partners. and a DNR it considered the order 1.8 million bbUreef. group of private mineral own- to be a seizure of its lease- Af soc MichiganMiller Oil ai Gas ors in a case stemming from hold mineral rights, which itAssociation, said the the slate's ban on oil and gas valued at $93 million. What e sea ahead sage ward 'sends a dear mess development in Mason Coun- The state elected not to On Oct. 8 the state ap- to governmentgoing tonaee ty's Nordhouse Dunes area. rescind or change the order. slate's aaled c ion was not takinng g g that if you are is lake The state last month ap- Although Miller Bros. said it of property and calling the had away someone's be prepared • pealed the award, which never intended to conduct potential oil and gas reserves compensate them for it.' gives $46 million to Miller • Bros. and $25.5 million to the mineral owners plus interest. One aspect of the ruling is Long delayed Soviet refinery starts up that it awards compensation based on the projected value The U.S.S.R. has commis• from the Chardzhou plant in- duction plummeting since of unproven resource paten- sioned its first grassroots re- elude Uzbekistan. Tadjikis- 1983, the Chardzhou refinery Ital. No drilling has occurred finery in more than 6 years. tan, Kyrgystan, and southern likely will have to bid for limit- on the leases involved. Start-up of the plant, near Kazakhstan. Like many other � ed crude supplies against Chardzhou on the Amu Oar- regions of the U.S.S.R., other Soviet refineries as we::How It came about ye river in Southeast Turk- these areas have severe hy• as foreign customers olfer:r. The dispute dates to a menistan (Soviet Central =carton fuel shortages, the hard currency. 1987 order banning oil end I Asia), has been long da• Moscow newspaper Pravda The U.S.S.R. has a total G gas development or preemie- III 'eyed—more than 15 years. reported. 40-47 lion from the 4,500 acre i Even now the Chardzhou re- Economic viability of the depending g on how y units a, Nordhouse Dunes area in It finery is capable of producing Chardzhou plant is clouded some major plants are coup:- western Michigan. only mane (heavy fuel oil) by prospects that the cost of ed. Miiler Bros. began leasing I and diesel fuel. the Russian Republic's west•mineral rights in the area In Gasoline production is slat- P ChardzhouSoviet pria d w.il Fcrn si sit crude win be ar. (aeon caaci primary d11.7 the mid-1970s. Two seismic ed to begin ";horny." creased sharply next surveys shower potential for First 60,000 bid phase of With western Siberian oil pro- million dD capacity to about 11.7 significant reserves on the the Chardzhou refinery ciigi- prospect. which lies in the natty was scheduled to go on heart of the northern Silur;an stream in 1975. But work on Niagaren reel trend. I Inc foundation for the primary Pdvsa faces Orimulsion cuts The primary surface rights I distillation unit didn't begin owner, the U.S. Forest Ser• until 1978. Venezuela's Ministry of En- from the current 1 million vice. gave Miller Bros. ap• Soviet authorities pest- ergy and Mines has Ordered tons/year. Current contracts prover to conduct a live well poned the refinery's startup stale owned Petroleos de cover deliveries of 8 miliior, grilling program. However, date to the mid-1960s. then Venezuela to scale back its tons the next lew years. ex- state statute requires epprov to "no later than 1990." 52.5 billion program to devei- cluding a pilot project wen at from the supervisor of The Chardzhou refinery is op Orimulsion, Pdvsa's boiler Florida Power 8 Light. The wells, who al the lime was designed to operate on weal• fuel that is an emulsion of ministry also ordered Biter to Gordon Guyer, director of the ern Siberian crude delivered extra heavy crude, water, present feasibility studies on Department of Natural Re• through a long pipeline run- and a surfactant. for- sources (DNR). ning from Omsk through Pay- The joint partners ventn projects withp sisextent of the cut is rnut a develop heavy Miller Bros. said despite feeder and Cnimkent. The undisclosed. but presumably mullion or other extra heavy preparation of a hydrocarbon Chimkent refinery in South• planned expansion beyond crude projects. h development plan with five east Kazakhstan started up volumes needed to cover firm reflect government ellons to flezibie crilsites. ar environs early in 1985, 15 years alter contracts with power plants in focus Pdvsa resources on mental review, enc informal . groendcreaking. It was the Canada, Italy. Japan. Spain, light and medium cruces and advice from DNR start that last Soviet grassroots resin- and the U.K. will be delayed. ministry concerns Orimuls;cn drilling would be allowe& ery commissioned before Pdvsa's Orimulsion market- -might be included in Veneze- Guyer issued the drilling ban Chardzhou. ing unit Bitor had hoped to ela's Crean:station o! Petro- Apr. 23. 19887. Areas besides Turkmeni- boost Output to about 41 mil- leum Exporting Countries Miller Bros. noted the state sten that will receive products lion metric tons/year by 1995 quota. - se 0,l s Clf JaurA t,Nov it lint 9310804 • • State's appeal of judgements pending ,7 7r Special Events -Parallels drawn between Supreme Court Lucas ,nit Organisations) AILT decision and Nordhouse Dunes case (74)MitniOan AitocialICA el Petroleum L+nemen (MAPL)AnnuniAGs fOuting.POHLCITGolCeurte (Me.Plusanlnouta7mnt GRAND RAPIDS—A recent decision the property ti au rights of private individuals. sane 0.Contact: Ion snoers:(s 17)676.2900..2900. 2 eat. toe. of the United States Supreme Court in a they must be prepared to compensate 1Y9USt case in which it was determined that a those individuals for what was taken from (13)Michigan Petroleum Poliucauction Committee South Carolina resident's property had hem: (Michigan hfrdt.um PAC)GdifOmi,.Almay.The POHL CAT Gott Course(Mt.Pleasant Noltday Inn), been "taken" through exercise of new Both cases involved action by state mt. Pleasant Mk state laws governing construction in mail,- agencies that effectively denied the owners (13.14)Michigan Chamber of Commerce graftem tin coastal areas has close parallels to of property the right to develop it accord- mental Regulations Worunop. Grand learerse Resort, Acme MI. Contact: MI Chamber of Michigan's so-called "Nordhouse Dunes" trig to laws in existence at the time of the t Commerce: 1.800.741-0344 Dr(s i?)371-2100. case,according to Miller Brothers General purchase or leasing of mineral eights, Ito Filth Annual"Oilfield Class- Picnic and Gorr Partner H.Jack Miller. Miller said. Outing. All Day_Twin Bitch Golf Course.Kalkaska Mi.Contact:Wayne Goodwin;(616)255.952.or The U.S. Supreme Court on June 29, "This decision by a clear majority of the Lon Minor;(616) 2564514. 1992 handed down a 6-3 decision in the Supreme Court should send a message SEP TIMBER ca*of David H. Lucas v, South Carolina that before a state or local government (ID-11)011and Gas Tana lion Levels Sestina,5:00 Coastal Council;finding as had a Stare trial makes such a decision to take away the a.m,.NtroesymAccutntants Society 1ice eilMichigan, ununp MI. cilreleum Ac:aunAndl of Mlrs and court that action taken by the State after rights of an individual or individuals it Council of Petroleum Accountants Societies and Lucas had purchased his property with the ought to weigh all the facts and be pre- Professional Development Institute. WC lee. intention to build on it had deprived him of pared to make proper compensation," 56)6. Contact: Registration Assistant.P.0.1.: 7.80013Y all"economically viable use"of it. Miller said. (14)Bay Arad Ocst one Derrick Club.Travers• The South Carolina Supreme Court ilier Brothers had conducted seismic Cay. Contact:Kathy Bickel;(616) 941.0633. had overturned the lower court ruling, surveys over a period of several years in (14)Cascades Cub and Derrick Club.5:30 p.m.. leading toU.S. iking Steak House.Jackson MI.Contact:Virpinia Lucas' petition to the LS caiperation with Huron•Manistee Na-N Poole:(517) 717.9011. Supreme Court. tional Forest officials, who administered (74)Central Michigan Desk ant Derrick Club.5:00 H.Jack Miller,who along with Clyde E. surface use of the area,with mineral rights P.m..Mt.Pleasant Country Club.Mt.Pleasant M:. -5945. -Gene and C. John comprise the Miller under several of Miller Brothers'Niagaran CanuMicTgan oil And Association Ill) t Bolus M11 Co Gas Fran L. 1MDGill Bn+;hers.almmented recently on the site- reef prospects in the western Mason Grand Aeolus MI.Comae;:Fran Morel:(5174 ilaritics between the South Carolina case. County area on the Lake Michigan shore- 457.1092. which has attracted national attention and line just north of Ludington having been (17.IEMgnvatstrsocunoninycioisumlandmes (MAPA M:.Contact:,ur,Meliay:rand Plua,Gra 6. the Nordhouse case, in which Miller leased from private owners. Rlpios,Mi.Contact:Gail Brothers and a group of mineral owners The fairly unusual ce?mbinatinn of Fed- (17) Petroleum Accoun.rats Society Of Micalgan were awarded separate judgements eral surface ownership combined with the (PA5M)fuCuvve Meet rap and Tetnoica:Seiaons, Am..ayGs and Plata,0 rand Redid SMI.C onlac::G err against the State of Michigan in Svp- privately held mineral rights had resulted Mc Aleenan: (615) 676-2090. t ember 1991 totalling more than 571 mil- from the Federal government's condem- (22.23)1992 Natural Gas Pipeline Safely Seminar, lion after an Ingham County Court of nation of the surface after prior owners Lamm; Mt. Michigan Public Service Commission Claims ruling that the Srate's 1987 pr.+hi• planned commercial operations to remove got tonigan lyp itment. Trans n0; JIlio aluste• pot )uan Safely Idilimle. Cones::: 4711 h1]W sell bison of drilling in the 4,500-acre Nord- sand from the unique dunes area. (517)3346354 OCTOBER house Dunes Area constituted a taking of The State of Michigan became involved 1131 international Pipm el Way Association. their property rights. (See stories, Sep- when Miller Brothers first applied for oil Mi:Mipan Casper Seven, Fall Education Seminar. tember 27 la November 1. 1991 Michigan and gas drilling permits within the Nord. 9:00 a.m..Schuss Mountain,Seta"'MI,Coma.: ClEi S- Gas News.) house Dunes Area.which was under COn• (12)B: a A:Ar(5ea Disk 715-0633and De Bar area and Curia Club.Travers: 'The timing of this decision(by the U.S. sideration as a Federal wilderness area at city.Canuct:Katny Bickel;(616;941.0603. Supreme Court) couldn't have been bet- the time. (12) Cascades Desk and Duties Club,5.3C p.m.. Viking Sleek Hoe ter? said Miller when contacted at his Special review presses were devel- eosin (Si?) 7575 a0 on Ml.COntacc wgini: 9011, office in Grand Rapids. making reference oped to evaluate the impact of drilling and (12)Central Michigan Desk and DI,rlck Club.5:00 to the State of Michigan's pending apecal nil and gas production in the area. includ- p.m.,Mt.Pleasant Country Club,Mi.Pleasant Mt, of the 7991 tad •emends against the State. in formation of a joint f Contact Tammey Smalley:(Zr?) 773-5944. I b F R Department L (12.15; Independent Pal role win Association 01 "l7 reaffirms or belief that when a Natural ResourcesdBureau of Land Man America IIPAA)Annual Meeting Reno NV. government makes a decision affecting trnrltimrnf an hap 2+7 Regulatory Roster YKwiGss.OIL a GAS MEWS YaCA2inE:La11alY/Suer Orns.:Srl.•200.205 Is u1 YYn11Cn Si.l/1Huni GuHles 4l1aMeIYL'YUAn..MI44954:Y•Wne ACaraas:P.O.las 250.Mi.In I.M144904.02$e:7MgMnc Si?)1 772.'14I 5.1ev Marwlat AMU IwIW ratelsl Saa•rwUr/ 'Al Mumb.,n(5171 713-his. week aria keeryuer/a1.Ulry lure ernes taws Y JACK A.YCSraaoOt Score litutcri (5411!COrrtrTT elr.We M ter4ee Labia. 44. Sant Oft. OMelaat ii M.ta.lne£Mla 6al.., A.r5e1Ybt Mane✓ know Iualea.P.O.In 3a2S.LWsa KI 459011M..c SI1-aa4.eall. auaw55 OHNE P.O.OW 15060.Lansing.W tea01•M64 T.I.,Mnt IS171147.0440.ClaUOu MIILF R. JVLT A•Peiis In Intl M.Y.an inane/is be as won/toll tal.Ci al 1M•lease al r.Ilisanan.Sanwa/maim/✓I.rin,I/npra•nl 1"...21i143.7.."1":.t l"""°"Iul"""°"no CM Latta"14""win Si gash•twain wq a aauua Mr il"y.w'e.,r.a+,an In 1/1/•1.au•e. Ina C•NMw4 Lw✓. �wow l.. 750? Y. Saginaw hwy..I.-.Y Lam..id Coed Label ML MICM.G•M OIL4 GAS Mewl.YS5S4OS•ISOiSSN0746.57e1.COI7rignl leaf.YICMICA)e O11 a GASMFWS la.....lr CMta 4.752:asMW4 N11IiWOtltayMtl✓{Nalta- P sa.ca.an 01 Yiengan Out C.,New.Ineap.u4L•.Macy-a.n.d 4.ta4YM,of Manlean O5 sn.On•unW lea. IoM i15%-au.Coin.W Clan par onion 5.1 a✓IN • Knows.Ouse.'.P.O.I..10of0.Lanvin,.MliMean 4ela i.0WO.let 19171 ca 7.0493.606T0Aa•L.w0 S•Lls 1.37 nil.Wyllie.I warl73n.Iel.Salami Ss;7.10 0./ICI:Sane200.t01r.MNMt.n...ew-fho••n.O.•.M.c.bna.gllie magi.P.O.1••210 ill,•1.04-a2Sa,.Per. Ll Pi e.M.cn.4.n_ ism s7;—sees;.as:iS.t1 via-2170.3,n.../spats 14.33.Gentled Steno. lea nub.. 1251 t II mla✓ M.. Yes N 3524 psi.,..i•IL.00400 in..Cam t .. ..na.....— ;hoop)ale✓., Mueel.•n.1•...Y.eninp lC.s-lrun4N.1etOb......7. 44a Ma.la..L4Metwa•n01tan. cal ...asp.L.• Ma.•4111.14.twIeoLMIIF 5L Ca. r 1MO sac u.aaa.4 •• bboln . 1.5. •red.n.awes 49 4 r11 a•Mnt an I✓u skis. Caua 64 it 511: GM1Y taw N muffle on Mel M Mud 00••••••,. MO sate .Kra Cau1W wa•oulst.•N.S.ail•••P a✓gn 0.0•10411/010..M Sl.-0d ILLS. C Linn 100 00,64 e 011 se 1.n/M.e$YYOIaW .. Ce rowa✓r •Or[sirSIMG PATES avuLaa LC On AE OUFST.Stssn.raw Peu.4.rn.II MI..N,•.•nl.Wenyen .u5mn.e h✓Y/MIO•a<u tMlu•aelr.Orl01y WY lM MaW4 ...Hit .g in al re ,in D.C..ns.,at..lust a lust l Han s..1osn,y.slays sick.4 tine elaauc alean. Lasu Cello 2.211 sin Crib 25a, 1.1 1i Ai Ai SMti • .sp.n.ly a..w,,,,.•y is.Na..s.,.PO:TYaSTa Is;ten.•N.ta.......•a MICn,Can On a GAS Mara. Cs:Ili a a Sera I.0 L., 10060.Leann e.Mk 495.7.00+3. I WH Y n'Warrior lair 2)a Mtwwll MICHIGAN OIL E GAS NEWS JULY 17, 1992 Michigan Oil & Gas Drilling Activity • ANrim Der. State Otsego Late Al-11 ■ ►ooSa(mg! State A114143 Elk,11 DR,RILE VI St:Sac 17 Sw NW NW M 46179(TRt-2000) (WI Si:Sac 26 MI NW NW PM 46017(1101.37$0) • teetary E VI. taspms 91-13 O Ahern Dr. Sate Outgo lut3 C4.17 Bet:Sec 23 51.4 SE SW (W)St:Sc 13 NW SW NW PN 4332(Mosey) (F)Sl:Sec I7 SW NE SE st scans(nct.1 Ton u.—S SW 23 (BML:6505/LSOE) Flynn.110*, RISE el Amen Go Seas Oueto tau 3-20 1p 7A7192 • Moos,Edo(. Etch:1.13 (PI SI:Sec 70MW NE SW at 901060(Ant•1/007 m¢taNan i,ewR Ca Peu;Sat(WV SUN Allis 1.26 (W)Si:See 13 NW SW SW PH 4517?(Tft -1900') • Minn Gas Stale the tu4 IAS[7616.20 47)Si:Set 76 NE MW NW AP 920123(NON-3570') po Ott Sec 26 NW NE NW Waaltinglon, Till,RISE (F)Si.:r.c 20 NE Si NW P1 4602 1011.-21241 unit—f NW (110.316114530E) 0 Don Tone Ent Pu m;,6 ►RESOOE ALE Krakow,TS3M,R7E (W)SC Sic 6 SW MW NW AP 920609(PDC•7200) 0 W0CAL PLuyull l-27 pail--11W NW (982n/330W1 Allis,T34Y,RZE 01 SI.:Sec 29 SW SW SE At 920747(PDC•7500') Wats:taro,T1111,RILE ■ mesa Energy Suit Abe 3-24A uni—w SI (660S/655W) ■ mutiny 1sµ lays Q-N TN)Si:Se 24 SE SI NW tar 46221(NCN•3648J up(uD (w)SL See 34 NE NE SW EN 45416(TR1-1900) Brit:Su 24 NE SE NW a foal,7108, R151 aml—SE MW/NE SW (BnL76IS/615E1 *1157.5 I/T-3580 b 1/06/92 0 Lyme bap pasty 04-7 ST, CLAIR Mnaewn 2.cut WI St:Sec 9 C SE Sf Al 920396(TRNt•6795') Cotttellvilla,731(,816E I PWOSur(Mi@ Scam Allis 3.24 veil—Wa (660St6Ste a Main Pa.EVI. Long at al 14 (7l Si S:24 SE SE NW PN 4611?(NCN-3570) 3 Tone(ALAN a 591 G.isu 1.9 (7)Si:Sc 23 AP 9209091NGN-23007 inC Sec 24 Mw NW SW MI R'Sec 1 SW SW SE AP 920610(IM•1600) SL Dose Pin>i PM Con 204.NW tat--NW SW/SW NW 2e (Bnt:613W568w) tied—SW SE (3305/330W) mil-40 sc. on Rig Locations (R1gs capable of and/or drilling deep tests In bold type) ADS/TRIUNE a Rig I —ad McLACHLAN is Rig 104—sa a Rig 5 —sd a Rig I —or Nw 35.29N•1W.Chariton. •Rig 105—se ■Rig/—ad Outgo(Muetegon De-.) a Rig 7—Or Rig• 2—ar NW 26.3+N•2E.Allis. ANTRIM DRILLINGy MoSEmm5•10N•I!.Briley. OibatP NE , IDs(PW.t..a Energy) •Pm;1 —oFI nl 11.ncy• tW lv. En. ■Rog/— M nh $Ottncy(F rce A •Rig 3—or NE 1/-I/N•5W,l•nCain. N OnemprencY(WOL. En-.Prod.l Monim4renq(Farce andnm De..) BIGARD7DRILLERS a Rig 10—m, Gas IA N R 5W,Sive Onago(Antrim De-.) aRig4—mSWis f•W w,BWs .) •Rig 41 —N RaIL>ssa IA N R Si or`gel •Rqu— >m •Rq 11—soOCEANA •Rig 49—sd DUAL •Rig 3—dr NE 1a-151.13W.Merrill. •Rig 50—1: a Rig 34—ad Newayg0(Claraslon 0u) •Rig 53—Or NW 25.55•SE.Macon. •Rig 35—so ■Rig S—sd Len4wte(Telesis PC 1 •Rig 36—se RHINO ■Rig$6—to we NW 13-24N-13W,CISCO, Minute(Peteral 00) INDRIL a Rig I —to NE 12.30N•3W. Bagley. •Rig 57—3d Is Rig 1 — mi SW 2--7.25N-4W.Freaersc. Otsego(Terre Energy) •Rig 58—mt NE.32.29N•4'e.Rust, Crawford(Mc Corry Es of) SCOTT Monlnorency(Terra Energy) •Rig 2—co 5E 10.26N.4w,Freoeric, •R, H— •Rig 6—mi Sw 7.15.,w,Clarence. AIai es ..(Kid tzub Odd SDnngs, Cis.-lore IMerwry E4Di.1 Calhoun(Trsacol Kalaosaa CHIP Pvai Opr.l a Rig 1—SO •R.; 10—se 51BLET •Rig 2—ar SE 12-31N-5w.Warner. •Rig 14— Id •Rig 1 —to Antrim(Digmld in..) a Al; 15—10 SOMICH •Rig 3—se! •Rig 16—sd •Ri 47—9 se Parallels drawn between Supreme Court "Lucas" decision, Nordhouse rase 4'nrilinmrf from pose 5) agement Task Force. Order permanent. igan 8. 1991. Briefs fm the parties in the Following lengthy review, the furnish- Ingham Circuit Court Judge Peter Houk appeal were to be filed by June 19, 199:. ing of detailed and possibly unprecend- decided there had been a taking by sum- Miller notes that attorneys representing ented development plans for the entire mary disposition in August 1991. with a the State did not file a brief by that date. arra by Miller Brothers, several public separate action then commenced to deter- instead requesting a 35-day extension of hearings and the drafting of an Environ- mine lust compensation. the filing date. Miller said, mental Impact Assessment. then-DNR Judge Houk awarded the money judge- StJte Attorney Cenerd's Office spokes- Director Cordon Guyer in April 1987 moon of $71 million plus interest (for a person Chris DeWitt confirmed that the issued an Order prohibiting drilling within total amount estimated to be in excess of request for extension of the fil.ing deadline thy designated Dunes Area. 590 million at the time of the judgements) had been granted. with the State's brief Inverse condemnation complaints were alter sevenweck trial,in which witnesses now due on August 13. He would not filed by both Miller Brothers and the for Miller Brothers provided testimony comment on the possible impact of the group of mineral owners after Miller aimed at determining the potential value Supreme Court decision in the Lucas case Brothers served notice nn the DNR and of oil and gas in the leased area, biased on on the Dunes judgements. State official: that it considered the Order comparison to similar a mat of the North- Miller 13rnthcrs b represented in the Iu constitute a taking of NS lea whold min- ern NLagaran Red Trend. Nor.lhuuae Dunes rase•by the Crania Rap- oral rights,with the imirnding expiration An appeal of the Stptcnllxr 20. 1091 ids law firm Mika. Meyers. Beckett & of the lease making the injury from the judgements was filed by the Stale of Mich )ones. JULY 17, 1992 2P MICHIGAN OIL & GAS NE'wS Hello