HomeMy WebLinkAbout991202.tiff HEARING CERTIFICATION
DOCKET NO. 98-57
RE: APPROVE SITE SPECIFIC DEVELOPMENT PLAN AND SPECIAL REVIEW PERMIT
#1198 FOR AN OIL AND GAS SUPPORT AND SERVICE FACILITY (BRINE WATER
DISPOSAL) IN THE A (AGRICULTURAL) ZONE DISTRICT - ENVIRO-CYCLE, LLC
A public hearing was conducted on May 19, 1999, at 10:00 a.m., with the following present:
Commissioner Dale K. Hall, Chair
Commissioner Barbara J. Kirkmeyer, Pro-Tem
Commissioner George E. Baxter
Commissioner M. J. Geile
Commissioner Glenn Vaad
Also present:
Acting Clerk to the Board, Esther Gesick
Assistant County Attorney, Lee Morrison
Planning Department representative, Julie Chester
Health Department representative, Trevor Jiricek
Public Works representative, Don Carroll
The following business was transacted:
I hereby certify that pursuant to a notice dated, September 25, 1998, and duly published,
October 28, 1998, in the Fort Lupton Press,a public hearing was conducted to consider the request
of Enviro-Cycle, LLC, % Howard Boatright for an Oil and Gas Support Service Facility(brine water
disposal) in the A (Agricultural) Zone District, at which time said matter was continued to
December 21, 1998. Pursuant to a notice dated December 4, 1998, and duly published
December 9, 1998, a pubic hearing was conducted on December 21, 1998, to consider a
Certificate of Designation for the facility. At said hearing on December 21, 1998, said matter was
continued to January 20, 1999, at the request of the applicant due to unresolved issues. In a
memorandum from the Clerk to the Board's Office, dated December 28, 1998, the Board agreed
to continue the hearing from January 20, 1999, to January 27, 1999, due to scheduling conflicts.
At said hearing on January 27, 1999, the Board deemed in advisable to continue said matter to
March 3, 1999, due to unresolved issues regarding the Certificate of Designation and jurisdiction.
At the hearing on March 3, 1999,the Board deeded it advisable to continue said matter to April 21,
1999, to allow adequate time for the Oil and Gas Commission to complete it review of the facility
and moved to Find that a Certificate of Designation is not required. At the hearing on April 21,
1999,the Board moved to continue said matter to May 19, 1999, at the applicant's request. At said
hearing on May 19, 1999, Lee Morrison, Assistant County Attorney, made this a matter of record.
Julie Chester, Department of Planning Services,stated she has reviewed the amended application
plan and recommends approval with some additional Conditions of Approval and Development
Standards. Ms. Chester stated the Oil and Gas Conservation Commission has given preliminary
approval; however, it will not grant final approval until the well has been constructed and inspected.
Trevor Jiricek, Department of Public Health and Environment, referred to his memorandum to the
Board dated May 12, 1999, marked Exhibit GG, listing suggested Conditions of Approval and
Development Standards. In response to questions from the Board, he stated if the necessary
financial assurance exceeds what the Oil and Gas Commission can require, the remainder will be
posted with Weld County. Mr. Jiricek stated he has been working with the applicant and they are
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aware of the changes. Commissioner Kirkmeyer commented the proposed Conditions #3.H
and #3.1 need to be corrected to refer to the Weld County Department of Public Health and
Environment.
David Dill, Oil and Gas Conservation Commission, stated he has reviewed the revised plan for the
surface facility and downhole construction and they appear to be adequate; however, he will have
to wait until the well is constructed before giving his final approval. In response to Commissioners
Geile and Vaad, Mr. Dill stated if the well is not approved, the applicant will have to fix the problems
or it will not be used. He described the review process of downhole construction, stated the depth
of the well and casing is determined by the surrounding uses and off-set wells, and stated this type
of well will be much deeper and have a different construction than that of a fracking operation.
Melvin Dinner, Attorney, represented the applicant and reiterated this operation is located in the
Agricultural Zone District. Mr. Dinner submitted a copy of Recorded Exemption #2367, marked
Exhibit CC, and stated Lot B is approximately 67.3 acres which is owned by Enviro-Cycle, LLC.
Mr. Dinner also submitted a copy of the Warranty Deed, marked Exhibit DD, and stated this
documentation should resolved any questions of ownership. He further stated the Oil and Gas
Commission has given preliminary approval in a letter dated April 27, 1999, marked Exhibit Y; the
Lyons formation is approximately 10,000 feet deep and there is no oil or gas in the area; the site
is not located in a flood, geohazard, or airport area;the Weld County Departments of Public Health
and Environment and Planning Services approve of the plan with additional Conditions of Approval
and Development Standards; and the road access requirements have been met. Mr. Dinner
submitted the resume of Cliff Roberts, marked Exhibit EE.
Cliff Roberts also represented the applicant and gave a brief description of his qualifications. Mr.
Roberts stated he was hired to advise on this project half way through the process and stated the
area is appropriate for this type of operation; however, he suggested the facility be redesigned to
be completely above ground. He explained the unloading, separating, storage, and injection
processes under the new plan. In response to Commissioner Kirkmeyer, Mr. Roberts stated the
product will be stored in steel tanks, the run-off pit will be covered with a steel grate, and there will
be no open water storage areas. Responding to further questions from Commissioner Kirkmeyer,
Mr. Morrison referred to Mr. Jiricek's memorandum stating staff does not feel the new plan
proposes any significant changes. Mr. Roberts stated the original process of using underground
settling ponds was very slow. (Clerk's note: Switched to Tape #99-19) In response to questions
from the Board regarding open water and odor problems, Mr. Jiricek stated the above ground tanks
are uncovered, allowing for the removal of solids. Mr. Roberts clarified the process uses mud tanks
which are not usually required to be covered; however,the applicant is willing to place steel netting
over the top. Mr. Jiricek stated one of the Conditions of Approval requires the tanks be covered
or netted. Mr. Roberts clarified Wayne Fisher, drilling engineer, has indicated the mud tanks are
covered and do have a hatch for removing the solids. In response to Commissioner Baxter, Mr.
Roberts stated the type of fire suppression has been discussed; however, the applicant is waiting
for approval before implementing the plan. He further stated the applicant is proposing to increase
the number of holding tanks, which will be located in a concrete bunker, from six to twelve.
Responding to Commissioners Kirkmeyer and Baxter, Mr. Roberts explained the tanks hold 6,000
barrels and once the water is treated, there may be too much to be injected; therefore, six tanks
may not be sufficient. Mr. Jiricek stated he feels the addition of six more tanks is a significant
increase; however, some of the other proposed changes are enhancements to the first plan which
staff had originally requested. Ms. Chester stated the applicant has indicated if the additional tanks
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will cause a significant change, they will wait until a later date to see if the tanks are necessary and
apply for an amendment at that time. Mr. Morrison stated the requested increase in storage does
not significantly change the application because the operation will still only inject 4,000 barrels per
day, and the traffic and location will remain the same, and the other changes are what staff
originally recommended. In response to Commissioner Baxter, Ms. Chester indicated a significant
increase is based on the number of tanks and two or three tanks would seem more reasonable.
Mr. Dinner stated the proposed changes are enhancement features and will increase safety at the
site. Chair Hall commented he does not feel the additional storage is a significant increase
because the capacity will not change. In response to Mr. Morrison, Mr. Dinner clarified that Howard
Boatright is no longer the owner; the property is currently owned by Mike Cervy, who is also the
manager; and he stated further correspondence can be sent to Enviro-Cycle, LLC, c/o Melvin
Dinner. In response to Commissioner Geile, Mr. Dinner stated all of the old contracts for Lot B are
void and have been replaced with new contracts, and eight acres of the property will be used for
the operation,with the remaining acres used for agriculture. Commissioner Vaad commended the
current owner for greatly improving the application for the site. In response to Commissioner Vaad,
Mr. Dinner explained the closure process under the U.S. Bureau of Reclamation, and the formation
of the LLC, and stated the LLC will provide insurance beyond the date of closure.
James Oster, surrounding property owner, expressed his concern regarding this application. Mr.
Oster stated since the hearing held on April 21, 1999, he has been in contact with the applicant,
and the Departments of Planning Services and Public Health and Environment. Mr. Oster
submitted his list of questions and concerns, marked Exhibit FF, and stated although he was under
the impression that the contracts had expired, previous discussion indicates there are new
contracts. Mr. Oster asked whether the new contracts have water rights, what the applicant's
intentions are for the agricultural area, and read the road access plan for the record. Ms. Chester
stated the proposed Condition of Approval #2.D.4 addressed the access issue and the plat shall
delineate, "A 'No right turn, local traffic only' sign posted at the entrance/exit to the proposed
facility,"and proposed Development Standard#28 states truck traffic shall only exit to the west on
Weld County Road 40. Mr. Oster expressed concern with trucks exiting to the west; indicated there
is a fault in the injection area which the applicant claims will not affect the well, asked how the
applicant can be sure the injected materials will only flow one-quarter mile from the injection site;
and what will happen if it is determined that the Lyons Sandstone formation is not adequate once
the well is constructed. Mr. Morrison stated if the well is unsuitable, the Oil and Gas Commission
will not issue a permit and this Use by Special Review Permit is conditional upon approval from the
Oil and Gas Commission. Commissioner Baxter commented the injection well will receive brine
water from drilling wells in the area; therefore, the injected water will be returned to its origin. In
response to Mr. Oster, Ms. Chester stated the Conditions of Approval require the applicant to
address any concerns of the LaSalle Fire Protection District prior to the final approval of any
building permits; however, this condition can be required prior to recording the plat. Mr. Oster
stated the Central Weld County Water District has indicated the site is not within the district;
expressed concern with Development Standard#16,stating there should be a detailed closure plan
and bond prior to approval of the application; asked who is responsible for clearing the site once
the operation ceases; and stated he has concerns with the heavy trucks on gravel roads and
appreciates the requirement of directing traffic to the west.
Kenneth Krouse, surrounding property owner, stated he agrees with Mr. Oster's concerns and
expressed additional concerns regarding the entrance of trucks onto Weld County Road 39,which
is at the bottom of a hill, since oncoming traffic from the south may not be able to stop if the slope
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is icy. Mr. Krouse stated there is water in the Lyons formation so the area should be tested for
permeability, and the applicant's prediction that the substance will only travel for one-quarter mile
from the site of injection may not be correct.
In rebuttal, Mr. Dinner stated Lot B of Recorded Exemption #2367 has never had water rights;
however, the agricultural portion does not have to be irrigated to qualify as agricultural land. He
stated the applicant intends to use the remaining portion of the property for pasture or alfalfa if
water is rented;the property is owned by Enviro-Cycle, LLC; injection into the Lyons formation must
meet the standards of the Oil and Gas Commission; and the presence of water in the formation is
not the only determining factor in whether the site qualifies for injection.
Mr. Fisher stated he has reviewed the revised plan and the drilling permit allows drilling and testing
for suitability of the site prior to use. He explained these tests are submitted to the Oil and Gas
Commission for determination of whether the well is suitable. Responding to concerns, Mr. Fisher
stated sometimes fault structures benefit an injection site because they tend to stop the natural flow
and many are microscopic and hard to identify. He further stated the Gas Research Institute has
done extensive research on the natural-flow of different rock formations and he believes the one-
quarter mile estimate to be correct, and because the Lyons formation is currently holding water,
there is additional proof that it will be an ideal site for holding injection water. In response to
Commissioner Baxter, Mr. Fisher stated the Oil and Gas Commission does an outline of the plug
and abandonment of an injection well based on the estimated life cycle, the State can add
requirements, and the well history determines the final plugging procedure.
Mr. Roberts stated he understands the concerns expressed regarding truck traffic; however, this
facility will enforce courtesy rules of which the drivers will be aware. Mr. Roberts stated he strongly
supports the proposed sign indicating no right turn unless it is local traffic only. In response to
Commissioner Baxter, Don Carroll, Department of Public Works, stated the requirement of
acceleration and deceleration lanes may be excessive since the traffic study indicates only 15 to 25
vehicles per day from 7:00 a.m. to 7:00 p.m., totaling only one or two trucks per hour. Mr. Carroll
stated a majority of the traffic from the development located south of the site, travels south and
west, and there were two accident reports at the intersection of Weld County Roads 40 and 39
which happened in 1992 and 1993. He further stated he measured 600 feet from the intersection
to the crest of the hill which meets the requirements, and although the acceleration and
deceleration lanes would provide added safety, the traffic volume does not require them. Mr.
Carroll added when street studies indicate the need, truck traffic signs will be posted. In response
to Commissioner Geile, Ms. Chester stated a third party will be hired to clear the site if the
operation is abandoned
Commissioner Kirkmeyer moved to approve the request of Enviro-Cycle, LLC for a Site Specific
Development Plan and Special Review Permit #1198 for an Oil and Gas Support and Service
Facility (brine water disposal) in the A(Agricultural)Zone District, based on the recommendations
of the Planning staff and the Planning Commission, with the Conditions of Approval and
Development Standards as entered into the record and the proposed changes requested by staff
in memorandums marked Exhibits AA and GG. The motion was seconded by Commissioner Vaad.
In response to Ms. Chester, Commissioner Kirkmeyer indicated the Board was not opposed to the
increase in storage tanks as proposed by the applicant. The motion carried unanimously.
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HEARING CERTIFICATION - ENVIRO-CYCLE, LLC (USR #1198)
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This Certification was approved on the 24th day of May, 1999.
APPROVED:
ATTEST: 4121 � �� �/4f0) BOARD OF COUNTY COMMISSIONERS
.i I : �✓ %" D COUNTY, CO O' S PO
1861 _
Weld County Clerk to th- 'o r
f 1 Da . K. Hall, Chair
BY: �.i./,i .I/1�i_.T%��' FT?
Deputy Clerk to the Bo
Barbara J. Kirkme 'ro-Tem
TAPE #99-18 and #99-19 iex
Geor E. axter
DOCKET#98-57
eile
Glenn Vaad
991202
PL1259
EXHIBIT INVENTORY CONTROL SHEET
Case USR#1198 - ENVIRO-CYCLE, LLC
Exhibit Submitted By Exhibit Description
A. Planning Staff Inventory of Items Submitted
B. Planning Commission Resolution of Recommendation
C. Planning Commission Summary of Hearing (Minutes)
D. Clerk to the Board Notice of Hearing
E. County Attorney Memorandum re: Certificate of Designation
(10/21/98)
F. Jacqueline Johnson, Attorney Letter re: Certificate of Designation
(11/06/98)
G. William Keefe Application for Class II Disposal Permit
H. State Health Department Letter re: Underground Injection Well
(10/16/98)
•
I. Weld County Health Department Senate Bill #95-017
J. Clerk to the Board Notice of Certificate of Designation (CD)
K. Planning Staff Photo of Posted CD Notice
L. Jacqueline Johnson Letter and back-up info to Roger Doak
(12/01/98)
M. Jacqueline Johnson Letter to Roger Doak (12/14/98)
N. Jacqueline Johnson Letter to Scott Ballstadt (11/09/98)
O. Jacqueline Johnson Letter requesting continuance (12/18/98)
P. Planning Staff Memorandum re: continuance (12/21/98)
Q. State Health Department Recommendation of Conditions of Approval
(12/18/98)
R. Weld County Health Department Memorandum re: Three Conditions
(01/26/99)
S. John Martin Letter of concern
T. State Department of Law Letter re: Jurisdiction (03/02/99)
U. James and Lelia Oster Letter of concern (03/25/99)
Exhibit Inventory Control Sheet - USR #1198, Enviro-Cycle, LLC
Page 2
V. Janet Frazier Letter of concern (04/02/99)
W. Chemical Applications Request for continuance (04/15/99)
and Engineering, Inc.
X. Planning Staff Memorandum re: Continuance of hearing
Y. Oil and Gas Conservation Letter re: Review of Facility (04/28/99)
Commission
Z. Chemical Applications and Revised Master Drawings
Engineering, Inc.
AA. Planning Staff Memorandum from Julie Chester (05/19/99)
BB. Melvin Dinner, Letter re: Request for Petition Documents
Applicant's attorney
CC. Melvin Dinner Recorded Plat of Recorded Exemption
#2367
DD. Melvin Dinner Warranty Deed
EE. Melvin Dinner Cliff Roberts Resume Summary
FF. James Oster List of Questions and Concerns
GG. Health Staff Memorandum from Trevor Jiricek
(05/12/99)
HH. Clerk to the Board Memorandum re: Continuance of Hearing
II.
JJ.
KK.
LL.
MM.
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PP.
QQ.
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M:\CTB\EX98-57
ATTENDANCE RECORD
HEARINGS ARE AS FOLLOWS ON THIS 19TH DAY OF MAY, 1999:
DOCKET#98-57 - ENVIRO-CYCLE, LLC, % HOWARD BOATRIGHT
DOCKET#99-28- DONALD LAFAVER AND CHARLES MILES,JR., % TUTTLEAPPLEGATE,
INC.
PLEASE legibly write or print your name and complete address and the DOCKET
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