HomeMy WebLinkAbout20200875.tiffHEARING CERTIFICATION
DOCKET NO. 2020-01.B
RE: A SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT,
USR19-0060, FOR OIL AND GAS SUPPORT AND SERVICE, INCLUDING AN
UNMANNED, PIPELINE ONLY, CLASS II SALTWATER DISPOSAL FACILITY AND
RELATED INFRASTRUCTURE, UP TO FIVE (5) CONSTRUCTION TRAILERS AND FIVE
(5) CONEX CONTAINERS FOR TEMPORARY USE DURING CONSTRUCTION IN THE
A (AGRICULTURAL) ZONE DISTRICT - NGL WATER SOLUTIONS DJ, LLC
A public hearing was conducted on March 11, 2020, at 10:00 a.m., with the following present:
Commissioner Mike Freeman, Chair
Commissioner Steve Moreno, Chair Pro-Tem
Commissioner Scott K. James
Commissioner Barbara Kirkmeyer - EXCUSED
Commissioner Kevin D. Ross
Also present:
Acting Clerk to the Board, Jess Reid
Assistant County Attorney, Bob Choate
Planning Services Department representative, Kim Ogle
Public Works Department representative, Zackery Roberson
Health Department representative, Ben Frissell
The following business was transacted:
I hereby certify that pursuant to a notice dated November 15, 2019, and duly published
November 20, 2019, in the Greeley Tribune, a public hearing was conducted on January 8, 2020,
to consider the request of NGL Water Solutions DJ, LLC, for a Site Specific Development Plan
and Use by Special Review Permit, USR19-0060, for Oil and Gas Support and Service, including
an unmanned, pipeline only, Class II Saltwater Disposal Facility and related infrastructure, up to
five (5) construction trailers and five (5) conex containers for temporary use during construction
in the A (Agricultural) Zone District, at which time, the Board deemed it advisable to continue the
matter to March 11, 2020, to allow the applicant adequate time to address the survey and
engineering issues related to the project. Bob Choate, Assistant County Attorney, made this a
matter of record.
Kim Ogle, Department of Planning Services, presented a brief summary of the proposal,
provided the location of the facility and stated it is within the three (3) mile referral area of the
Towns of Eaton, Severance and Windsor and the City of Greeley, and is within the Coordinated
Planning Agreement area of the Towns of Severance and Windsor. He described the surrounding
lands, mentioned notices were sent to five (5) surrounding property owners (SPO), described the
correspondence received by the Department of Planning staff, and outlined the SPO concerns.
He indicated representatives for the applicant met with owners of the surface estate on an
individual basis, they had extensive discussions with the adjacent property owner, Donn Leffler,
whose residence is to the south/southeast of the project parcel, and stated Mr. Leffler had
concerns about contamination of his irrigation water within the proposed injection well facility. He
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described surrounding uses, stated the site has historic agricultural access onto County
Road (CR) 31, noted the proposal is for an unmanned, pipeline delivery only, saltwater disposal
facility and is partially located in a floodplain. He described the layout of the site, indicated all
brine water will be piped to the facility for final disposal, and provided the hours of operation. He
stated 19 referrals were sent out and four (4) agencies responded, he entered the favorable
recommendation of the Planning Commission into the record as written, and displayed images of
site and surrounding views.
• Zackery Roberson, Department of Public Works (PW), provided a brief overview of the
transportation plans and requirements, reiterated the access is on CR 31, and indicated the
applicant had updated their access location, which now meets spacing requirements. He provided
traffic counts, average speed, and traffic associated with the facility, and mentioned PW is
requesting tracking control during construction or permanent road base, as well as a Road
Maintenance Agreement. He presented the drainage and grading requirements and stated PW
was requesting a new Development Standard (DS) #18 (disposal of water/wastewater/other
material), be added to the Resolution. In response to Chair Freeman, Mr. Roberson reiterated the
traffic associated with the facility and clarified the term of the Road Maintenance Agreement would
be for the life of the project, and in response to Commissioner Ross, he provided the distance
between the intersection and the access.
Ei Ben Frissell, Department of Public Health and Environment, reviewed the water and sewer
provisions and stated the facility will be an unmanned site, and as such only bottled water and
portable toilets will be required. He indicated a Groundwater Monitoring Plan will be required and
DS #18-38 address Environmental Health items.
• Matt Kilker, NGL Water Solutions DJ, LLC (NGL), outlined the issues they had addressed
since the Planning Commission hearing, referenced the Badger Sump decree (Exhibit F), and
stated NGL will monitor the water volume above and below their property to ensure the water
volume supplied Mr. Leffler is not injured. He indicated NGL relocated the pump building to allow
full access to Mr. Leffler and they are proposing to move the detention pond to keep it away from
all underground structures. He described the Ground Penetrating Radar survey (Exhibit G) and
indicated three (3) below -grade structures were found, surveyed, and put on the plat. He stated
access to the structures will be given to Mr. Leffler in the event maintenance is required, confirmed
the structure will be protected during construction and development, and described additional tank
containment measures, beyond the requirements of Weld County and the Colorado Oil and Gas
Conservation Commission (COGCC). In response to Commissioner James, Mr. Kilker confirmed
there was a noise study done on an existing building at a different facility and in response to
Commissioner Moreno, he clarified there will be no screening at the facility.
• Maria Petrocco, Law Offices of Maria Petrocco, represented Mr. Leffler with regard to his oil
and gas matters. She stated NGL does not have a permit for the disposal well and indicated the
permit they have from the COGCC precludes the construction of the well without Mr. Leffler's
approval, which he will not give due to the potential of water contamination. She explained Owl
Creek previously owned the subject parcel and wanted to put an injection well on it, and stated in
2015, she wrote a letter of protest to Owl Creek's attorney and also filed a letter of objection with
the COGCC. She cited concerns about the disruption of historic flow, irrigation water
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contamination, NGL's recent spill history, and the lack of secured easements for produced water.
She reiterated Mr. Leffler will not grant consent for the disposal well and indicated that as such,
the COGCC is considering denying the disposal well permit. She requested the Board deny the
application or provide time for herself and Mr. Leffler's water council to review the exhibits
presented by Mr. Kilker. In response to Commissioner Moreno, she stated she believed a 30 -day
continuance would be adequate.
eg Ryan Donovan, Lawrence Jones Custer Grasmick, LLP, represented Mr. Leffler with regard
to his water rights. He stated there is an existing PDC Energy pad on Mr. Leffler's property, and
affirmed Mr. Leffler is supportive of the oil and gas industry. He reiterated the request for additional
time to review the new information submitted and indicated 30 days is not enough time. He stated
he is concerned about the Badger Sump, a coffin well, that serves Mr. Leffler's farm, provided the
history, definition and signifigance of coffin wells, and stated Mr. Leffler is trying to protect his
water right with regard to the well. He explained when NGL purchased their property they acquired
a servient estate, with Mr. Leffler's property being the dominant estate, which means they can
utilize their property so long as it does not interfere with the decreed flow rate of the water. In
response to Commissioner James, Mr. Donovan further clarified the meaning of a servient estate,
versus a dominant estate, explained Mr. Leffler's property is benefitted by the NGL property, and
indicated activities on the NGL property effect Mr. Leffler's property.
Whitney Phillips, Fischer, Brown, Bartlett and Gunn, PC, represented the Cache La Poudre
Water Users Association (the Association) and explained the members of the Association consist
of the Cities of Fort Collins and Greeley, the Tri-Districts (East Larimer County, Fort
Collins -Loveland, North Weld County), Northern Water, and the major ditch companies. She
outlined the concern of the Association as being the impact to Mr. Leffler's water rights with regard
to quality and amount. She echoed Mr. Donovan's request for more time to allow Mr. Leffler to
hire an engineer to survey the situation to ensure no injury occurs to his water rights and stated
an injury to an individual's water rights potentially impact other water owners downstream.
Chair Freeman recessed the hearing for five (5) minutes.
El Chair Freeman reconvened the hearing. Mr. Kilker presented an amended proposed site plan
(Exhibit H), clarified NGL does currently hold an injection well permit from the COGCC and
confirmed there is a stipulation for the permit that Mr. Leffler has to approve it. He stated they
have provided documentation to the COGCC for the enhanced casing of the pipeline, noted the
fluid running through the pipeline is monitored remotely, and indicated the majority of the spills
last year were caused by third -party truck operators. He reiterated they have no intention to serve
as a truck facility, only a pipeline facility, and explained right-of-way may not be obtained by NGL
directly, rather, they would require the operators for whom they work to obtain right-of-way
agreements with landowners in the area. In response to Chair Freeman, Mr. Kilker provided
examples of how the right-of-way could be obtained and stated, per the Badger Sump decree,
the structure is not tributary to any naturally flowing structure. He affirmed it is NGL's intention to
protect the livelihood of Mr. Leffler and the farmers in the area and to ensure the SPOs are free
from contamination. In response to Commissioner James, Mr. Frissell explained the COGCC is
the regulatory body that permits the well, including the pressure, casing and formation; however,
the surface use is within the purview of the Board. He confirmed obtaining the well permit is not
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a Condition of Approval (COA) in the Resolution, as NGL cannot operate without it, and Mr. Ogle
confirmed there is an existing Recorded Exemption on the site. In response to
Commissioner James, Mr. Kilker explained the site was chosen and purchased because Owl
Creek had already applied for the well permit, there was an existing injection well onsite, and its
close proximity to State Highway 392. He mentioned the site was initially proposed as a truck
facility but was converted to a pipeline only facility to get trucks off the road. In response to
Commissioner Ross, Mr. Kilker affirmed the barriers, casings, and additional rig mats were
discussed with Mr. Leffler, his council, and the COGCC at a December 2019, meeting, but the
arrangement of the plat had not been provided to them prior to this hearing. In response to
Commissioner Moreno, Mr. Kilker stated he was in agreement with a continuance, responding to
Chair Freeman, he confirmed it is a COA of the COGCC that Mr. Leffler agree to the injection
well, and there was further discussion about a continuance. Mr. Kilker stated the USR is
necessary prior to obtaining the well permit, as NGL needs a surface facility to be able to support
a sub -surface agreement. He displayed images of the site plan, described the proposed protection
measures and stated the SPO to the north is supportive of the facility.
There was discussion about the timeframe of a continuance and Mr. Donovan stated he will
be in a court trial all of April and the first half of May. He asserted in the water court context an
extension of 182 days would be granted to review pertinent documentation and noted Mr. Leffler
needs time to obtain an engineer. Chair Freeman recounted the January 8, 2020 hearing was
continued to allow NGL adequate time to complete their engineering study and Mr. Donovan
reiterated the request for at least 60 days, if not 182 days, for a continuance. Ms. Petrocco
proposed the Board require NGL to get their COGCC permit prior to the next hearing to ensure
they are able to obtain said permit.
EI Mr. Kilker rebutted the aforementioned statements, outlined what NGL had accomplished
since the previous 60 -day continuance, and stated 60 days should be sufficient for Mr. Leffler and
his team to obtain an engineer, complete a survey, and review the documentation NGL has
provided them. In response to Chair Freeman, he stated he cannot speak to the expected
timeframe for obtaining the COGCC well permit.
IR After the Board expressed their thoughts about the time frame, they decided to continue the
hearing to June 10, 2020, at 10:00 a.m. and all parties agreed to the date.
---m, Commissioner Moreno moved to continue the request of NGL Water Solutions DJ, LLC, for
a Site Specific Development Plan and Use by Special Review Permit, USR19 0060, for Oil and
Gas Support and Service, including an unmanned, pipeline only, Class II Saltwater Disposal
Facility and related infrastructure, up to five (5) construction trailers and five (5) conex containers
for temporary use during construction in the A (Agricultural) Zone District, to June 10, 2020, at
10:00 a.m., to allow Mr. Leffler adequate time to complete a survey and review the information
provided by NGL. The motion was seconded by Commissioner Ross, and it carried unanimously.
There being no further discussion, the hearing was completed at 11:47 a.m.
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This Certification was approved on the 16th day of March, 2020.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: dititoo X:40 ok,
Weld County Clerk to the Board
eputy Clerk to the Board
Mike Freeman, Chair
P2-t.>"1-e"."--40P--
Steve Moro, Pro -Tern
Scott K!James
XCUSED
arbara Kirkm
O
Kevin D. Ross
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