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HomeMy WebLinkAbout20201875.tiffINVENTORY OF ITEMS FOR CONSIDERATION Applicant EWS 12 LLC Case Number U R20-0007 Submitted or Prepared Prior to At Hearing Hearing 1 Thornton SPO Dingess, Letter in prepared P.C., opposition Attorneys by dated Austin and April Hamre Counselors 16, with 2020, Hamre, at and Rodriguez, Law on received behalf April of Ostrander 21, the City 2020 of n _ 2 X Response dated April to 16, City of Thornton 2020. Unknown Letter if from Letter was EWS 12, sent to LLC City with of responses Thornton 3 PCTechs Rodriguez, on behalf email Ostrander of the from City Steven of & Thornton Dingess, Louis with P.C., Prescott, questions Attorneys Special during and Counsel Counselors public comment with Hamre, at Law 4 5 I hereby certify that the items identified herein were submitted to the Department of Planning Services at or prior to the scheduled Ptanning Commissioners hearing. Kim Ogle Planner John M. Dingess Donald M. Richard F. Rodriguez Austin Havre Anthony J. Basile Lynn B. Obernyer -- 2003 ITA NI k RODRIGUEZ, OSTRANDER& PINGESS, RC. Attorneys and Counselors at Law 3600 S. Yosemite Street, Suite 500 Denver, Colorado 80237-1829 Telephone: (3 03) 779-0200 Telefax: (303) 779-3662 nail@hrodlaw.eom wwvv.hrodlawscom April 16, 2020 Via Q.T.S. and Electronic Mail Weld County Department of Planning Services c/o Kim Ogle 1555 N. 17th Ave. Greeley, CO 80631 kogle@weldgov.com EXHIBIT ti Special Counsel Paul C. Rufien, P.C. Teri L. Petitt, LLC Stephanie M. Ceccato, LLC Joel M. Spector, LLC Steven Louis -Prescott, P.C. ,.k r 14 IF_'':r ice' r r' A) P. re'? Filly it* (.1.4. ti Ito rgoirits Jc 1 _ 4 1 ,. ,. -sue ..6.1 Lt. Re: EWS ##I2 DJ Basin LLC Saltwater Disposal Site, Case No. U R O-0007 (the "Project") Dear Mr. Ogle: I submit this comment to the Project on behalf of the City of Thornton ("Thornton"). As a nearby landowner and interested neighbor, Thornton desires to participate in the discussion related to the location and feasibility of the Project. The notice of hearing ("Notice") for the Project shows it will be located in the Ei2E/2 of Section 30 in Township 8 North, Range 65 West, 6th P.I1 ., Weld County (the "Lands"). Thornton owns land immediately north, west, and south of the Lands, along with some mineral rights. Thornton has numerous questions and concerns related to the Project that it desires to discuss with Expedited Water Solutions Colorado, LLC ("EWS") and the County Planning Department, including but not limited to the following: 1. What is currently planned for the Project on the Lands? In the Pre - Application meeting with the County, the proposed Project involved a Class II injection well facility. See October 6, 2017 Memorandum ("Pre -Application Memo"). The Notice also identifies the Project as a Class II Saltwater Disposal Facility. However, according to the Use By p►ecial Review Questionnaire ("USR Questionnaire") submitted to the County, the Project is described as a "Class IV salt water injection well facility." Class II and Class IV injection wells are sufficiently different: Class II includes wells used to inject fluids associated with oil and gas production and are subject to the jurisdiction of the Colorado Oil and Gas Conservation Commission ("COGCC"); Class IV includes shallow wells used to dispose of radioactive or Page 2 April 16, 2020 hazardous waste into or above freshwater aquifers, and are now banned by the EPA except where used as part of groundwater cleanup. For purposes of this letter, Thornton presumes the Project involves Class II injection wells, 2. Has DNS sought and/or obtained the requisite permits for the Project? Class II injection wells are subject to COGCC permitting and location regulations, which regulations are being substantially modified pursuant to Senate Bill 19-181 (COGCC Mission Change Rulemaking). The Pre -Application Memo requests evidence of State permits. Has EWS applied for and obtained the requisite COGCC permits? No permits for the Project are identified on the COGCC website, If this is the case, the CO 's review of the Project will likely be subject to the new, more stringent COGCC regulations. It is unclear that the Project will meet these COGCC regulations, so as to receive requisite State permits, Additionally, Class 11 injection wells require WOGLA permits. Thornton has not received notice or information related to such an application with the County. 3. The new COGCC regulations will require numerous additional analyses before the Project may be approved. Have they occurred? What were the results? These include an alternative location analysis, seismicity evaluation, and disposal formation hydrocarbon evaluation. 4. What are the sources of produced water (lease and location) to be injected as part of the Project? This information is necessary for a COGCC permit, and should be shared with the County and neighbors to the Project. 5. The new COGCC regulations will require an in-depth cumulative impacts analysis related to risks to public health, safety, welfare, wildlife, and the environment. Has this occurred? Specifically, EWS will be required to submit narratives related to risks to air, water (surface and ground), wildlife, noise, dust, traffic, light, ecosystems, waste, and best management practices employed in relation to each. 6, What steps will EWS take to protect its neighbors from nuisances associated with the Project? According to the USR Questionnaire, there is no landscaping, screening, road expansion, or fencing (in addition to existing barbed wire) planned for the Project. But according to the EWS #12 Site USR19-OOXX Map and USR Questionnaire submitted with the application documents, the Project is planned to have a detention pond, leach field, 35 tanks for salt water processing, injection facilities and activities, oil recovery, a drum of biocide, a drum of scale inhibitor, a septic system, 20 passenger vehicle trips per day, and as many 100 truck visits per day. In addition, it plans to operate 24 hours per day, 365 days per year. The Project raises serious nuisance concerns related to, among other things, noise, dust, light, air, odor, traffic, and pests. 7. How will surface and groundwater resources be protected? There are dozens of water wells, ditches, and canals on the Lands, Thornton's property, and other lands within a one-half (1/2) mile of the Lands. Have the owners thereof received the Notice? How will EWS ensure the protection of these valuable water resources? Page 3 April 16, 2020 8. How has the County ensured compliance with its code requirements related to the Project (in addition to WOGLA LA requirements, including those enacted August 5, 2019)? By way of example only, the County Code mandates: (1) "Groundwater contamination must be prevented by following state regulations that require cementation of wells (including injection wells) to prevent commingling of water, oil and gas into other formations."; (2) "E&P Waste, when transported off -site within Colorado for treatment or disposal, shall be transported to facilities authorized by the COGCC Director or permitted waste disposal facilities approved to receive E&P Waste."; (3) "OG.Policy 1.1. The County should encourage cooperation, coordination and communication between the surface owner and the mineral owner/operators with respect to any developments of either the surface or the mineral estate."; (4) "OG.Policy 1.2. Oil and gas support facilities which do not rely on geology for locations should locate in commercial and industrial areas, when possible, and should be subject to review in accordance with the appropriate sections of this Code."; (5) "o .Policy 2.5. The County should use its regulatory powers, to the extent authorized by law, to minimize the impacts of oil, gas and other mineral extractions to the land and land uses and ensure complete restoration of the areas impacted, from start-up through termination of production."; (6) "OG.Policy 2.6. Promote the safety of all citizens and structures that are in relatively close proximity to oil and gas facilities."; (7) "OG.Policy 2.8. Oil- and gas -drilling activities should be planned to accommodate current and future surface subdivision activities to the extent such development can reasonably be anticipated."; (8) "OG.Policy 2.9. Impose protective measures through available state, County and federal regulations to ensure that the mineral operator conducts operations in a manner that will minimize current and future environmental impacts."; (9) "OG.Policy 2.10. Promote that well sites are reclaimed and closed by techniques which address that the future use of the property is not impaired because of environmental or safety problems[,]"; Page 4 April 16, 2020 (10) "OG Policy 3.1. Support regulations for cementing wells (including injection wells) to prevent commingling of water, oil and gas into other formations."; and (11) "O .Policy 3.3. The extraction of oil and gas minerals should minimize the impact on the quality and quantity of ground and surface water." 9. Has EWS anticipated additional surface development in the area? The Lands are less than 2 miles from Pierce and the Project access is on County Road 90, which is paved and subject to moderate traffic. Traffic will increase as Pierce expands, calling into question the ability of County Road 90, as currently constructed, to handle 100 additional semi -truck trips to and from the Lands each day. 10. What types of fluids and chemicals will be injected on the Lands? New COGCC regulations will require disclosure of this information. It is important for the County and neighbors to know what they risk exposure to if an accident occurs. 11. What formation(s) will the fluids and chemicals be injected into, what are its geographic boundaries, what is its permeability, and will the fluids and chemicals flow into pore space owned by the Thornton and other mineral owners? Thornton and other minerals owners are entitled to compensation if their mineral pore space is being used by EWS. 12. What is the status of the potential pipeline to the Project? EWS stated in the USR Questionnaire that a pipeline may be constructed to the Projectin two years to minimize truck traffic. Who will construct the potential pipeline? Is the construction still planned given the oil price crash? What is the likelihood of pipeline construction, timing of the construction, and effect on truck traffic? 13. Is the Project necessary and financially viable at $2Olbbl oil? $30/bbl? $40/bbl? Some experts do not expect oil prices to return to economic levels in 2020 or 2021. Without economic prices, oil and gas companies will stop drilling new wells, meaning there will not be a need to dispose of produced water. This must be a concern for a company preparing to construct a multi -million dollar injection well facility. How do oil prices affect EWS 's construction timing and plans? 14. What financial assurance has EWS provided? The remediation, restoration, and reclamation associated with the Project after initial construction and when it is abandoned, whether next year or in 50 years, will be substantial. Likewise, clean-up costs associated with any accidental spill would be substantial. The COGCC's current regulations require de mini is bonds which are not scheduled to be reviewed and revised this year. EWS will likely submit a $50,000 injection well bond for the Project, and maintain its $60,000 blanket plugging bond for its injection wells statewide. The collective COGCC bonding amounts would not be nearly enough to complete satisfactory remediation, restoration, and reclamation of the Project. What bonding is the County requiring to ensure its land and water are protected should an accident Page April 16, 2020 occur or should EWS dissolve or file for bankruptcy protection? Is the County concerned about inheriting clean-up liability? 15. What measures are being taken to ensure public safety related to earthquakes? Many recent studies show a causal effect between Class II injection wells and earthquakes. The only reportable earthquakes in Weld County have been associated with such injection wells. Thornton has concerns about owning land with residences and tenant farmers above the potential epicenter of an earthquake. In the USR Questionnaire, EWS recognizes there may be other single-family residences adjacent to the Lands. Thornton requests the opportunity to (virtually) meet with EWS and the County Planning D epartm ent to discuss these and other questions and concerns, and preserves its right to object to the Project at the hearings. Very1Tru3y Yours, ,Steven LouissPrescott, Esq. poo]steven@brotlaw.com cc: Joanne Herlihy, Senior Assistant Attorney, City of Thornton (email only) Scott Twombl , Real Estate Manager, City of Thornton (email only) EXHIBIT u52ia—cterJ Page 1 April 16,2 020 April 16, 2020 Via T.T.S. and. Electronic Mail Weld County Department of Planning Services do Kim Ogle 1555 N. 17th Ave. Greeley, CO 80631 kogleaweldgov.com Res EWS #12 DJ Basin LLC Saltwater Disposal Site, Case No. U R2 O-000 7 (the " Proj ect" ) Dear Mr. Ogle: I submit this comment to the Project on behalf of the City of Thornton ("Thornton"). As a nearby landowner and interested neighbor, Thornton desires to participate in the discussion related to the location and feasibility of the Project. The notice of hearing ("Notice") for the Project shows it will be located in the Ei2E/2 of Section 30 in Township 8 North, Range 65 West, 6th P.M., Weld County (the "Lands"). Thornton owns land immediately north, west, and south of the Lands, along with some mineral rights. Thornton has numerous questions and concerns related to the Project that it desires to discuss with Expedited Water Solutions Colorado, LLC ("EWS") and the County Planning Department, including but not limited to the following: 1. What is currently planned for the Project on the Lands? In the Pre- Application meeting with the County, the proposed Project involved a Class 1I injection well facility. See October 6, 2017 Memorandum (" Pre -Application Memo"), The Notice also identifies the Project as a Class II Saltwater Disposal Facility. However, according to the Use By Special Review Questionnaire "U SR Questionnaire") submitted to the County, the Project is described as a "Class IV salt water injection well facility." Class II and Class TV injection wells are sufficiently different: Class II includes wells used to inject fluids associated with oil and gas production and are subject to the jurisdiction of the Colorado oil and Gas Conservation Commission ("COGCC"); Class IV includes shallow wells used to dispose of radioactive or hazardous waste into or above freshwater aquifers, and are now banned by the EPA except where used as part of groundwater cleanup. For purposes of this letter, Thorn ton presumes the Project involves Class II injection wells. It is a Class II injection well that is a typo on my part not EWS (by Eric femsran). 2.. Has EWS sought and/or obtained the requisite permits for the Project? Class II injection wells are subject to COGCC permitting and location regulations, which regulations are being substantially modified pursuant to Senate BM 19-181 (COGCC Mission Change Rulemaking). The Pre -Application Memo requests evidence of State permits. Has Page 2 April 16,2020 EWS applied for and obtained the requisite COGCC permits? No permits for the Project are identified on the COGCC website. If this is the case, the COGCC' s review of the Project will likely be subject to the new, more stringent COGCC regulations. It is unclear that the Project will meet these COGCC regulations, so as to receive requisite State permits. Additionally, Class II injection wells require WO LA permits. Thornton has not received notice or information related to such an application with the County. EWS will attain all necessary permits from Weld County and COGCC 3. The new COGCC regulations will require numerous additional analyses before the Project may be approved. Have they occurred? What were the results? These include an alternative location analysis, seismicity evaluation, and disposal formation hydrocarbon evaluation. EWS will attain all necessary permits from Weld County and COGCC 4. What are the sources of produced water (lease and location) to be injected as part of the Project? This information is necessary for a COGCC permit and should be shared with the County and neighbors to the Project, EWS will attain all necessary permits from Weld County and COGCC and provide information as required to do so 5. The new COGCC regulations will require an in-depth cumulative impacts analysis related to risks to public health, safety, welfare, wildlife, and the environment. Has this occurred? Specifically, EWS will be required to submit narratives related to risks to air., water (surface and ground), wildlife, noise, dust, traffic, light, ecosystems, waste, and best management practices employed in relation to each. EWS will attain all necessary permits from Weld County and COGCC 6. What steps will EWS take to protect its neighbors from nuisances associated with the Project? According to the USR Questionnaire, there is no landscaping, screening, road expansion, or fencing (in addition to existing barbed wire) planned for the Project. But according to the EWS 12 Site USR19.-00XX Map and US.USR Questionnaire submitted with the application documents, the Project is planned to have a detention pond, leach field, 5 tanks for salt water processing, injection facilities and activities, oil recovery, a drum of biocide, a drum of scale inhibitor, a septic system, 20 passenger vehicle trips per day, and as many 100 truck visits per day. In addition, it plans to operate 24 hours per day, 365 days per year. The Project raises serious nuisance concerns related to, among other things, noise, dust, light, air, odor, traffic, and pests. The truck traffic that has been requested for the site has since been reduced to 50 trucks a day: EWS will meet all of the requirements of Weld County for a U K Page 3 April 16,2 020 7. How will surface and groundwater resources be protected? There are dozens of water wells, ditches, and canals on the Lands, Thornton' s property, and other lands within a one-half (1/2) mile of the Lands. Have the owners thereof received the Notice? Howwill EWS ensure the protection of these valuable water resources? The surface water from rain and snow will drain to an engineered detention pond that is approved by the County. EWS cements 300' below the aquifer and alt the way back to surface. 8. How has the County ensured compliance with its code requirements related to the Project (in addition to WO LA requirements, including those enacted August 5, MB)? By way of example only, the County Code mandates: (1) "Groundwater contamination must be prevented by following state regulations that require cementation of wells (including injection wells) to prevent commingling of water, oil and gas into other formations. "; (2) "E&P Waste, when transported off -site within Colorado for treatment or disposal, shall be transported to facilities authorized by the COGCC Director or permitted waste disposal facilities approved to receive E&P Wastes"; (3) "OG.Policy U. The County should encourage cooperation, coordination and communication between the surface owner and the mineral owner/operators with respect to any developments of either the surface or the mineral estates"; (4) '"O .Policy 1.2. Oil and gas support facilities which do not rely on geology for locations should locate in commercial and industrial areas, when possible, and should be subject to review in accordance with the appropriate sections of this Code.„; (5) "O .Policy 2.5. The County should use its regulatory powers, to the extent authorized by law, to minimize the impacts of oil, gas and other mineral extractions to the land and land uses and ensure complete restoration of the areas impacted, from start-up through termination of production."; (6) "OG.Policy 2.6. Promote the safety of all citizens and structures that are in relatively close proximity to oil and gas facilities".; (7) HOG.Policy 2.8. Oil- and gas -drilling activities should be planned to accommodate cun- ent and future surface subdivision activities to the extent such development can reasonably be anticipated."; (8) "O .Policy 2.9 Impose protective measures through available state, County and federal regulations to ensure that the mineral operator conducts operations in a manner that will minimize current and future environmental impacts."; (9) "OaPolicy 2.10. Promote that well sites are reclaimed and closed by techniques which address that the future use of the property is not impaired because of environmental or safety problem s[.]"; Page 4 April 16,2020 (10) '"o .Policy 3.1. Support regulations for cementing wells (including injection wells) to prevent commingling of water, oil and gas into other formations. % and (11) "OG Pol icy 3.3. The extraction of oil and gas minerals should minimize the impact on the quality and quantity of ground and surface water." EWS will attain all necessary permits from Weld County and COGCC 9. Has EWS anticipated additional surface development in the area? The Lands are less than 2 miles from Pierce and the Project access is on County Road 90, which is paved and subject to moderate traffic. Traffic will increase as Pierce expands, calling into question the ability of County Road 9O as currently constructed, to handle 100 additional semi -truck trips to and from the Lands each day. The truck traffic that has been requested for the site has since been reduced to 50 trucks a day. EWS will meet all of the requirements of Weld County for a U R, 10 What types of fluids and chemicals will be injected on the Lands? New COGCC regulations will require disclosure of this information. It is important for the County and neighbors to know what they risk exposure to if an accident occurs. There will be no fluids or chemicals injected on the lands. We use 4 1/2" coated pipe to inject the fluids to approximately 7,500' and below. Only chemicals we use on our location is biocide and a scale inhibitor to keep our walls of our pipe free of scale. 11. What formation(s) will the fluids and chemicals be injected into, what are its geographic boundaries, what is its permeability, and will the fluids and chemicals flow into pore space owned by the Thornton and other mineral owners? Thornton and other minerals owners are entitled to compensation if their mineral pore space is being used by EW S. The COGCC labels the zone as the "a1 Basin Injection Zone". Usually the top zone would be the Lyons formation with approximately 5 to 7 more zones under the Lyons. It is my understanding the mineral owners do not own the pore space they only own what is in the space, in our case we will test the DJ Basin injection zones for potable water and hydrocarbons. If there are 0 have never seen any) signs of hydrocarbons we would abort the use of that zone. As for potable water the economics for bringing water up from that deep does not make since from a economic stand point. 12. What is the status of the potential pipeline to the Project? EWS stated in the USR R. u estion nai re that a pipeline may be constructed to the Project in two years to minimize truck traffic. Who will construct the potential pipeline? Is the construction still planned given the oil price crash? What is the likelihood of pipeline construction, timing of the construction, and effect on truck. traffic? Page 5 April 16,2020 The main reason for the new facility is to accommodate a client that is piping water. The pipeline will be constructed to the facility at or very close to the time that the facility is expected to open. EWS has agreed to limit trucks to 50 per day regardless of the completion of the pipeline or not. 13. Is the Project necessary and financially viable at $20/bbl oil? 30/bbl ' Soo/bbl ' Some experts do not expect oil prices to return to economic levels in 2020 or 2021. Without economic prices, oil and gas companies will stop drilling new wells, meaning there will not be a need to dispose of produced water. This must be a concern for a company preparing to construct a multi -million -dollar injection well facility. How do oil prices affect EWS's construction timing and plans? EWS thanks you for the concern but will continue to operate their business as EWS deems necessary 14. What financial assurance has EWS provided? The retned.iation, restoration, and reclamation associated with the Project after initial construction and when it is abandoned, whether next year or in 50 years, will be substantial. Likewise, clean-up costs associated with any accidental spill would be substantial. The COGCC's current regulations require de minimis bonds which are not scheduled to be reviewed and, revised this year. EWS will likely submit a $50,000 injection well bond for the Project, and maintain its $60,000 blanket plugging bond for its injection wells statewide. The collective COGCC bonding amounts would not be nearly enough to complete satisfactory remediation, restoration, and reclamation of the Project. What bonding is the County requiring to ensure its land and water are protected should an accident occur or should EWS dissolve or file for bankruptcy protection? Is the County concerned about inheriting clean-up liability? EWS will attain all necessary permits from Weld County and COGCC to construct the facility. 15. What measures are being taken to ensure public safety related to earthquakes? Many recent studies show a causal effect between Class II injection wells and earthquakes. The only reportable earthquakes in Weld County have been associated with such injection wells. Thornton has concerns about owning land with residences and tenant farmers above the potential epicenter of an earthquake. In the USR Questionnaire, EWS recognizes there may be other single-family residences adjacent to the Lands. There has not been any seismic activity at an EWS owned injection well. We currently have 11 wells in the DJ basin and each location has seismic equipment and are monitored 24/7/365 by an independent company. Thornton requests the opportunity to (virtually) meet with EWS and the County Planning Department to discuss these and other questions and concerns, and preserves its right to object to the Project at the hearings. Page 6 April 16,2020 Very ,Truly Yours, even Louis -Prescott, Es q. poo 1 Steven@h od1a . cone cc: Joanne Herlihy, Senior Assistant Attorney, City of Thornton (email only) Scott T ornbly, Real Estate Manager, City of Thornton (email only) Kristine Ranslem From: Sent: To: Subject: Follow Up Flag: Flag Status: Steven Louis -Prescott <poolsteven@hrodlaw.com> Tuesday, May 19, 2020 1:52 PM PCTec hs Public Comment by fly of Thornton in USR20-0007 Follow up Flagged Caution: This email originated from outside of Weld County Government Do not click links or open attachments unless you recognize the sender and know the content is safe. Steven Louis -Prescott, counsel for the City of Thornton: What is the status of COGCC permitting for this injection well location? What alternative site locations will be proposed to the COGCC if an application is not approved prior to November 1, 2020? When will a neighbor meeting be held, whether by Zoom or otherwise? How was EWS able to cut the truck traffic in half, when the pipeline is now indefinitely on hold? Can the nearby injection wells handle additional volume? Do they have requisite permitting to do so? Is EWS cutting its injection volumes in half as well? Does this impact the project's economics? BEST LAW FIRMS Ft o Il,F., Os'rR,N:c vrt Dl\c;iss P.C Steven Louis -Prescott Special Counsel IINVIRE, RODRIGUEZ, OSTRANDER & DINGESS, P C- 3600 S_ Yosemite Street Suite 5D0 Denver, Colorado 80237-1829 (303) 779-0200 ocolsteven@hroIaw,cort b Please consider the environment before printing this e-mail 2020 CONFIDENTIALITY NOTICE: This electronic mail message and any attachments may be confidential and/or subject to the attorney -client privilege and other privileges This message is intended only for use by the person(s) or entity named above If you are not the fintcnded recipient(s) or a representative of the intended recipients), then you are PROHIBITED from disclosing, copying, using, or disseminating any information in this message or its attachments. If you have received this electronic message in error, please immediately contact Steven Louis -Prescott at (303) 779-0200 or by ernai! at poolsteven hrodlaw corn, and destroy all electronic and hard copies of this EXHIBIT v sQZo _ ettri 1 Hello