HomeMy WebLinkAbout20181228.tiffHEARING CERTIFICATION
DOCKET NO. 2018-36
RE: A SITE SPECIFIC DEVELOPMENT PLAN AND 2ND AMENDED USE BY SPECIAL
REVIEW PERMIT, 2MJUSR18-12-1792, (FOR MINERAL RESOURCE DEVELOPMENT
FACILITIES, OIL AND GAS SUPPORT AND SERVICE, NATURAL GAS PROCESSING
FACILITY) ONE (1) UP TO ONE HUNDRED (100) FEET IN HEIGHT SECURE
COMMUNICATIONS TOWER, AND THE ADDITION OF NEW GAS PROCESSING
EQUIPMENT TO IMPROVE CAPACITY AND EFFICIENCY OF THE EXISTING PLANT
IN THE A (AGRICULTURAL) ZONE DISTRICT — DCP LUCERNE 2 PLANT, LLC
A public hearing was conducted on April 25, 2018, at 10:00 a.m., with the following present:
Commissioner Steve Moreno, Chair - EXCUSED
Commissioner Barbara Kirkmeyer, Pro -Tern - EXCUSED
Commissioner Sean P. Conway
Commissioner Julie A. Cozad
Commissioner Mike Freeman, Acting Chair Pro -Tern
Also present:
Acting Clerk to the Board, Tisa Juanicorena
Assistant County Attorney, Bob Choate
Planning Services Department representative, Kim Ogle
Public Works Department representative, Evan Pinkham
Public Works Engineer representative, Hayley Balzano
Health Department representative, Ben Frissell
The following business was transacted:
EI I hereby certify that pursuant to a notice dated March 15, 2018, and duly published March 20,
2018, in the Greeley Tribune, a public hearing was conducted to consider the request of DCP
Lucerne 2 Plant, LLC, for a Site Specific Development Plan and 2nd Amended Use by Special
Review Permit, 2MJUSR18-12-1792, (for Mineral Resource Development Facilities, Oil and Gas
Support and Service, Natural Gas Processing Facility) one (1) up to one hundred (100) feet in
height secure communications tower, and the addition of new gas processing equipment to
improve capacity and efficiency of the existing plant in the A (Agricultural) Zone District. Bob
Choate, Assistant County Attorney, made this a matter of record.
• Chair Pro-Tem Freeman provided notice regarding only three (3) Commissioners present
will require a unanimous decision. Patrick Groom stated he understands and would like to
proceed.
• Tom Parko on behalf of Kim Ogle requested a brief recess.
• Chair Pro -Tern Freeman announced there is a sign-up sheet circulating. He recessed the
hearing briefly at 10:05 a.m.
• Chair Pro-Tem Freeman reconvened the hearing at 10:05 a.m.
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=Y Kim Ogle, Department of Planning Services, presented a brief summary of the proposal and
described the location of the expansion to the west in relation to relevant County Roads (CR),
provided the historic use of the site, surrounding uses and closest residences. He stated there
are three (3) pipelines conveying gas to the facility and that it is located within the three (3) mile
referral area of the Town of Kersey, which did not submit any concerns. Mr. Ogle confirmed staff
received one letter and one phone call in reference to the application prior to the Planning
Commission hearing and since then staff has received more correspondence that is included in
the record. He explained the applicant is proposing the expansion to improve quality and
productivity, and with the expansion, the number of full-time employees will increase from 10 to
15. He stated septic is installed and the applicant has provided mitigation plans for noise, and
visual concerns. Mr. Ogle reported 14 referrals were sent out and only two agencies responded
with comments that have been addressed thru the Conditions of Approval (COA) and the
Development Standards (DS). He displayed images of the site and surrounding views and entered
the favorable recommendation of the Planning Commission into the record as written. In response
to Commissioner Conway, Mr. Ogle stated the noise standard, at the request of the applicant at
Planning Commission, is 65 dBA; however, staff is requesting it be reduced to 50 dBA due to the
close proximity of residential properties.
• Evan Pinkham, Department of Public Works representative, had no additional comments.
Hayley Balzano, Public Works Engineer representative, provided a brief overview of the
transportation plans and requirements and stated the access location, average daily traffic counts
and truck percentages on relevant County Roads. She reviewed the applicant's traffic narrative
which indicates 50-95 daily round trips during construction and thereafter reduced to 15 daily
round trips. Ms. Balzano stated an Improvements Agreement is required; however, tracking
control is not. She reported the applicant has submitted a final drainage report and detention pond
design; however, the applicant may be required to obtain an easement to utilize one of the existing
detention ponds located on a separate parcel. She reviewed the grading requirements.
Ben Frissell, Department of Public Health and Environment, reviewed the water and sewer
provisions, stating the site is serviced by an existing septic and the Central Weld County Water
District provides water service. He reported the existing septic is sized for 12 employees;
therefore, the applicant will need to submit a letter from an Engineer stating the current septic can
handle the increased load from additional employees. Mr. Frissell stated DS #8-26 address
Environmental Health items.
• Attorney Patrick Groom, of Witwer, Oldenburg, Barry and Groom, LLP, represented the
applicant and displayed a PowerPoint presentation (Exhibits S & T). He began by stating DCP
has had over 20 meetings with surrounding property owners (SPOs) at this point and are
committed to having a continued dialogue. He explained the proposal to amend the current USR
for the expansion of the plant which currently produces 190 million cubic feet of natural gas per
day, and the new plant is being designed to double that production on -site to 390 million cubic
feet per day. He stated the need is being generated by increased oil and gas production in the
area promoting an increase in gathering and processing making it necessary to expand at this
location. Mr. Groom displayed a map and reviewed the overall footprint of DCP operations in Weld
County. He explained the overall process to get natural gas from the ground to market and stated
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that DCP is committed to transmitting as much as possible via pipelines to reduce truck traffic. He
reviewed the proposed expansion site which is west of the current plant and explained this area
was chosen because it would have the least impact on SPOs and traffic. Mr. Groom reviewed the
traffic route and access locations and asserted all traffic will be limited to CR 50, as there is no
need to access CR 51 for construction traffic and after construction there would be limited traffic
on CRs 49, 50 and 51 within the limited haul route as agreed upon in the Improvements
Agreement. He described the pipeline corridor to include pipelines coming into the plant, and the
compressor stations. He stated the major concerns of the neighbors included lighting, sound,
traffic and safety, and he explained the effort to mitigate these concerns currently and the future
measures being taken to continue to address these concerns to include: downcast lighting,
potential dark skies standard, reducing the noise standard to 65 dBA, enclosing all compressors
with insulated buildings, constructing a 20 -foot wall around the perimeter, and further proposing
to reduce the noise standard confidently to 60 dBA. In response to Commissioner Cozad, Mr.
Groom pointed out the perimeter location of the concrete sound wall, which should provide more
sound mitigation than landscaping and berms, according to Jeff Kwolkoski, who conducted the
noise study and reviewed various mitigation techniques. He stated there would be some additional
landscaping to assist with screening; however, the site is located on a hill and he explained it is
not possible to completely screen the use. He further explained DCP offered to beautify the
acreage with berms and trees. In response to Commissioner Conway, Mr. Groom stated the wall
at the Mewbourn Plant is not completed, but he provided photo simulations of what it would look
like (Exhibit T). He also displayed photo images from SPOs.
Mr. Groom moved on to address the safety concerns regarding the flare. He explained that
historically the flare has been disruptive, causing huge vibrations, resulting in property owners
claiming damage to their property and possible health issues. He stated DCP determined the
current flare needs to be decommissioned and replaced. He explained the important safety
function of the flare and stated a new state-of-the-art flare will be installed and they are confident
the new flare will resolve these issues. Mr. Groom described the one occasion when the current
flare malfunctioned and started a grass fire in October of 2014, which occurred due to a power
failure from Poudre Valley Electric, and a valve defaulted to remain open. He stated that default
has been repaired and that flare will now be replaced. He reviewed the federal, state and local
regulations DCP is required to comply with and stated he is not aware of any current violations
as DCP continues to operate at the highest safety standard. Mr. Groom agreed it is important to
have an ongoing communication dialogue with neighbors, therefore, DCP has established an
online portal and a direct telephone line, and is committed to improving communications with
property owners. He stated he believes the recent dialogue has been productive as a lot of the
proposals are a direct result of that dialogue. He further agreed that this should have happened
in the past; however, moving forward he suggested a Communication Plan be required as a
Development Standard. He further stated DCP can provide mitigation for the location that is more
compatible for the future than the current plant today and he asserted an approval today benefits
all in the long run because now is the right time for an expansion. In response to Commissioner
Conway, Mr. Groom clarified currently the noise standard is Industrial, at 75-80 dBA.
El Brad Wagner, SPO, provided a PowerPoint presentation and stated that DCP has stated ad
nauseum that they want to be that good neighbor; however, there is no follow through and the
neighbors have been told that unless it passes today, there will be no follow through with what
has been proposed today for mitigations. He requested these things be put in writing and that the
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Commissioners hold DCP accountable. Mr. Wagner expressed his distrust with the conduct of
DCP to date and stated certain aspects of the presentation lack definition. He referenced scientific
findings related to low pressure shock waves pounding to the point of vibration and provided
videos and audio files to display the high level of vibration that was rattling the dishes in his
cabinet. He clarified he has confronted DCP several times and they have not done anything about
it. He addressed the issue of the flare and stated this is not part of their air permit, as it has
surpassed the 20% capacity and that he has learned more about this subject than he ever wanted
to. Commissioner Cozad stated the Board has the videos in the record (Exhibit J). Mr. Wagner
continued to state that he is not convinced that the design is fixed and is concerned with the
amount of production doubling. He clarified he is not ignorant to the economic effect of oil and
gas in Weld County; however, he requested these items be put in writing and that DCP be held
accountable. In response to Commissioner Conway, Mr. Wagner stated he wants to believe the
regulations regarding the air permit are being adhered to.
El Don Loloff, SPO directly east of the current plant, stated he has three small trees, and other
than that, there is nothing between his home and the plant. He explained that he and his wife
moved into their home in 2008, and he was aware they were building the first plant in October of
2013. Mr. Loloff described flare events that have shook their home and picture windows, knocked
pictures off the wall, put a crack in their ceiling, and he alleged that he has attempted to speak to
DCP several times about the damage and that they promised to fix these things and change
things and to date, nothing has been fixed or changed; therefore, DCP has not been a good
neighbor. He addressed the application for a second plant and expressed concern regarding the
flare events, sound, safety and security. Mr. Loloff stated he has spent hours researching 67 years
of gas line accidents, and he is very concerned regarding safety. At this point, he and his wife
have decided to take out some of their retirement and add onto the west end of their house and
build a wall to feel safe and be able to sleep at night. He expressed his frustration that DCP
provided these latest offers of mitigation last night at 6:30 p.m., and they have not had a lot of
time to consider the implications. He stated it appears they are trying to do something on the
surface but the track record is not good on follow through. He clarified he can support safe oil and
gas but safety and security should be an important consideration. He requested a continuance or
a denial. In response to Commissioner Cozad, Mr. Loloff pointed out where he lives in proximity
to the plant and stated as far as suggestions beyond a wall, that trees are nice, but nothing is
going to completely mitigate this for him.
E Ali McGregor, SPO, stated her residence is the closest to the north and they have sustained
several cracks in their home and their concrete foundation. She testified that she was told that
the technology was the latest and greatest and they just needed time to work out the kinks. She
stated she also learned that the current and future plant are design -build projects which means
there are no details such as flow rates, velocity capacity, or venting regulations for the flare. She
requested a substantial berm with trees to absorb some of the vibrations and the flare event
impacts. She explained her family had been there for over 15 years before DCP moved in.
Ms. McGregor stated the flare stack is 100 feet tall and it is not uncommon for the flare to double
and triple that height. She provided testimony regarding the flare event that caused the grass fire
in October of 2014, and the reality that there was nothing but dry grassland and weeds between
her yard and DCP. She stated they turned on the sprinklers and prayed the winds would not pick
up. Ms. McGregor stated she is not in favor of the wall because it will provide a resting place on
either side for tumbleweeds which would create the perfect disaster for a fire. She explained that
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event impacted her family mentally and physically. In response to Chair Pro-Tem Freeman, she
stated lowering the noise statute and requiring a 20 -foot wall does not mitigate her concerns. In
response to Commissioner Conway, Ms. McGregor stated the grass fire started because the flare
was out of control and that DCP has given multiple excuses. In response to Commissioner Cozad,
she confirmed her property damage was caused by the vibrations and they have had discussions
with DCP; however, there has never been any resolution or follow through.
El Chair Pro -Tern Freeman requested public input be limited to the allotted three (3) minutes.
He explained the Board will also be taking a break at 11:50 a.m. for other commitments, to return
at 1:15 p.m. He further invited those who may not be able to return after the lunch hour to come
forward to speak.
CI Brian Murray, Manager of Production for PDC Energy, Evans, Colorado, explained the
growth in their office as an active oil and gas developer due to the availability of product in the
Wattenberg field. He explained they work closely with DCP and support this expansion that will
allow operators to continue to develop. He agrees with the importance of mitigating for the
surrounding neighbors to minimize the impact; however, he emphasized the importance of this
expansion.
Chair Pro-Tem Freeman again welcomed anyone from the public, who may not be able to
return after the lunch break, to come forward to speak.
Virtus Banowetz introduced his wife Amy, SPOs to the southwest of the site, and stated she
will read their collective statement but he would like to say a few things first. Mr. Banowetz stated
they have a USR Permit for an event center and bed and breakfast and the DCP plant is in direct
view of both and he is asking for DCP to visually mitigate on both the DCP property and on his
property and he is asking for help and support to make sure this is done. Ms. Banowetz read her
letter for the record (Exhibit P) stating they are here today because they did not know about the
prior plant. She expressed concerns regarding lighting, sound and visual issues and stated DCP
has made many promises. She stated DCP mitigated the lighting quickly to change it to mostly
downcast; however, as far as they know, there were no sound or structural engineers hired to
meet with the neighbors. She provided pictures (Exhibit P) of the view of the plant from their
property that they have owned for 20 years and explained they have built their home and business
themselves. She elaborated on the event center that offers outdoor country weddings and
receptions and it is concerning to have guests mingling with an industrial site in the background,
as the view is unsightly and the constant sound of motors can be heard. Ms. Banowetz stated the
industrial view and noise will double which takes away from the tranquility of the neighborhood
and the atmosphere they are trying to provide for their guests. She expressed feelings of no
choice or voice and now having to live with this for the rest of their lives. She stated she and her
husband hosted the second community meetings and they collectively requested visual
mitigation, but she stated she does not feel like DCP took their concerns to heart. She reiterated
that DCP offered the wall as mitigation last night and she offered her appreciation for that proposal
but clarified these mitigation conversations have been stressful and not always agreeable and
she agreed with her neighbors that there has been a lack of accountability and requested a
continuance to address the unknowns. In response to Commissioner Conway, Ms. Banowetz
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stated DCP toned the lights down at night quite a bit but not all of them are shielded and she
would prefer the dark skies standard.
El Rochelle Rissler, SPO, requested a continuance to allow time for DCP to meet with the
neighbors again to discuss the mitigation offer that was only presented last night to the
surrounding property owners.
5. Scott McGregor, SPO, stated he received no notification for the original plant. He reviewed
the history of the purchase of their land, painstakingly building their home and improving their
property. He stated they have the same concerns as their neighbors who have spoken to include
serious issues with noise, vibrations, light, and safety regarding the current plant. Mr. McGregor
asserted the proposed landscape plan is not adequate and does not mitigate or include enough
coverage with a mere 71 trees being proposed in comparison to his property alone having over
400 trees. He requested more buffering and screening to be compatible and suggested more
berming, landscaping and fencing due to the existing plant being located on the tallest hill in the
area. He stated he is concerned about the expansion doubling the visual eyesore and he
expressed his frustration over the lack of true solutions and poor communication by DCP. Mr.
McGregor stated a concrete wall is fitting for an interstate or an industrial area; however, this is
residential and he urged that only a berm and more landscaping will mitigate because the reality
is it is not compatible. In response to Commissioner Conway, Mr. McGregor pointed out his
property on the map.
• Tom Norton, Mayor for the City of Greeley, stated he supports this application and testified
to the importance of the economic growth of the oil and gas industry and the midstream process
in Weld County. He stated he supports the industry for the long run and these are difficult
problems; however, there are mitigation solutions. Mayor Norton stated it is important to help the
neighbors, but he is in support of this expansion. In response to Commissioner Conway, he stated
he is not aware of many accidents and feels they can be addressed through proper planning.
11 Terri DeChant, SPO to the DCP Mewbourn Plant, stated she is here on behalf of the SPOs
today and insisted they should be compensated for the damages to their properties. She
suggested a denial or continuance until these issues are addressed and truly mitigated for the
neighbors. She encouraged the Board to stand up for the public because these impacts are
substantial.
EA Ryan Seastrom, Community Outreach Coordinator for the Colorado Oil and Gas Association
(COGA), stated he supports this application and read a statement of support for the record
regarding the benefits of this expansion.
• Chair Pro-Tem Freeman recessed the hearing at 11:53 a.m., and stated the plan to
reconvene at 1:15 p.m.
• Chair Pro-Tem Freeman reconvened at 1:17 p.m., and encouraged the public to keep their
comments to the allotted three (3) minutes.
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Todd Loose, SPO, provided a PowerPoint presentation (Exhibit Q), and stated he agrees
regarding the need for the increased capacity for the oil and gas industry and that it can co -exist
if the operator acts properly and takes responsibility. He stated the requirement to only notify
neighbors within 500 feet needs to be eliminated as it allows the applicant to use it to their
advantage especially in rural residential areas. He explained he has lived in the area for 40 years
and DCP came to the neighborhood and has not been a good neighbor. He cited a lack of
transparency and honesty, damage, vibrations, neglect to consider issues, and stated he has
learned that if it is not documented, it will not get addressed. He stated they are not in compliance
with the lighting code as he has photos from last week showing the plant lit up at night. He further
stated the pictures displayed by the applicant do not show the proposed pipelines or the meter
structure and meter housing, which is also a source of noise. He mentioned the Tallgrass
development and what is expected to be approved with eminent domain. Mr. Loose expressed
his frustration regarding the community meetings, the noise study, and the type of misdirect that
they have all lived with for years. He pointed out that staff provided recommendations to reduce
the noise to the residential standard and how the applicant presented a well -crafted argument to
include a reduction to commercial rather than residential. He stated the applicant has stated they
can easily meet residential standards with the installation of new equipment and insulated
buildings, so why not hold them to that? In response to Commissioner Conway, he provided the
dates the pictures were taken of the flare events and explained there are a lot of flare events that
have occurred and have gone on for many hours. He expressed his disappointment that
conversations regarding the specifications for the flare and the noise standard have been largely
ignored and that the existing flare is a design failure exceeding the limits of the emissions and
should result in fines. Mr. Loose provided copies of an ESA report which notes several violations
for DCP locations to include the current plant being discussed today for a possible expansion. He
insisted DCP is not in compliance with lighting, nor VOC emissions, resulting in 39 fines and they
are supposed to notify Weld County when there is a violation.
El Ryan Buderus, Chief of Platte Valley Fire District, stated he has experienced very good
interactions with DCP and reported he was one of the first responders at the scene for the October
2014 fire event. He explained for oil and gas facility calls, they wait until cleared by the site
manager, as they are the professionals and the experts on -site. In response to Commissioner
Conway, Chief Buderus explained the protocol and reiterated that DCP was very transparent
regarding the incident. He further confirmed they are committed to additional training.
Ei Rich Werner, President of Upstate Colorado Economic Development, stated he is also a
founding member of Energy Proud, and he advocates for the project to allow safer production
flows. He encouraged the applicant to continue to work with the community but stated the
midstream process is an increasingly important component making an expansion like this
necessary. He encouraged the Board to support the expansion and recognize the tremendous
impact this has on Weld County, and to focus on the permitting process that follows to get them
up and running in a timely manner. In response to Commissioner Conway, Mr. Werner stated he
is hearing there is an extreme deficit with midstream production and the consequences will
increase safety issues, decrease activity, and cause operations to shift to other areas.
Brian Cain, Director of Public Affairs for Extraction Oil and Gas, provided a few facts about
the industry and stated a new facility would add processing capacity which is of the utmost
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importance. He expressed his support for the plant addition to allow operating in stringent safety
requirements, and for producers to have that additional capacity and be able to responsibly
develop resources. He stated this technology is advanced; however, the infrastructure has fallen
behind. Mr. Cain stated Extraction supports thoughtful growth and mentioned the partnership with
communities adding 31 billion dollars to the economy. He asserted the project expansion would
allow for continued development and he also recognized the concerns of the nearest neighbors
and encouraged DCP to bridge the gap with stakeholder groups through mitigating the impact of
the construction and operation of this plant. He suggested installing downcast lighting and
adopting the dark skies initiative. Mr. Cain responded to Commissioner Conway's earlier question
by stating as an operator, it is devastating to producers when the resources are available and the
infrastructure is not and that this is an area of the country dealing with uncertainty while competing
with places like Texas for capital making it difficult when the infrastructure is not available to get
the product to market. He stated the result is developers start looking at other places and he
would like to keep business strong in Colorado. In response to Commissioner Conway, he stated
this expansion will stabilize the line pressure and allow more development and that projects like
this are critical to our State.
Doug Dennison, HighPoint Resources Corporation, stated he understands the Board has to
uphold the mitigations and add conditions and standards to assist the neighbors, but he insisted
the project is needed and the natural gas take away capacity and activity is dependent on DCP
and this plant. He explained the industry has experienced increased line pressures and curtailing
the operations impacts development and causes wells to be shut in. He encouraged the mitigation
for the neighbors but requested the plant expansion be approved and permitted as quickly as
possible.
Bill Jerke, La Salle resident, stated he is a neighbor about six miles away from the plant but
that he has a big pipeline running through his farm. He stated he is a member of the fuel group,
Colorado Association of Mineral Rights Owners (CAMRO), Energy Proud, and NCLA Energy
Committee. He explained there is a slow down due to midstream capacity and it is a big deal as
it affects operators, mineral rights owners, jobs and economies. Mr. Jerke explained some of the
history of legislature related to the oil and gas industry. He asserted the expansion is needed and
DCP needs to mitigate for the neighbors, but it should allow extra production and should be quieter
with the newer equipment.
,. = Chair Pro -Tern Freeman closed public input and asked the applicant to address the
concerns.
Mr. Groom began with addressing the concern with the flare. He repeated the reason for the
October 2014 event and the circumstances leading up to, during and after this event. He further
reiterated the mitigation to replace the flare and DCP has confidence that the new flare will
address the concerns. He explained DCP will agree to remove the existing flare if that will alleviate
concerns. He stated DCP is committed to safety and to being in compliance with all the complex
state and federal permits and regulations; however, that does not mean there are not violations
from time to time and the violations Mr. Loose was referring to were from 2013-2014 and DCP
addressed those through an Early Settlement Agreement (ESA) and modified equipment and
made changes to be in compliance. Mr. Groom asserted he cannot guarantee DCP will never
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have a violation again but DCP is committed to reducing those incidents and the impacts to the
public. He agreed with the addition of a Development Standard requiring DCP to notify the County
if there is a violation to provide awareness and transparency. He addressed the noise concerns
and clarified that DCP cannot be responsible for the noise from other operators; however, the
proposed noise mitigation will reduce noise by 20 decibels which should have a huge impact to
the quality of life for the neighbors. He explained the primary noise reduction is from enclosing
the equipment and not from the wall; however, the wall provides more security and visual
mitigation. Mr. Groom stated DCP believes screening is appropriate for mitigation and is
proposing screening with the 20 -foot concrete wall and landscaping placed sporadically to make
it more compatible to surrounding property owners, and he clarified DCP feels the number of trees
proposed is sufficient and will be a significant improvement to what exists. He pointed out the
many representatives from the oil and gas community that offered support for this expansion
which is essential to future growth in the County as development will be compatible with future
use. He emphasized the importance of midstream development and stated it can be done wisely
with mechanisms in place to regulate that use; furthermore, the resolution with mitigation will
accomplish that.
A Commissioner Cozad requested a property map be displayed to show all three parcels that
are owned by DCP. In response to Commissioner Cozad, Mr. Groom pointed out the location of
the split rail fence and pointed out the Banowetz property as the closest residence. He stated
there are vibrations associated with the operation of the plant; however, he stated there will be
less vibrations associated with the flare because it will be replaced with the newer one that is
more efficient and has smaller blowers. He further responded that he is aware of other facilities
and compressors in the area that belong to other operators and most likely cause vibrations but
he suspects the disputed vibrations were caused by the flare that is being replaced. Mr. Groom
confirmed the old flare will be decommissioned and removed and DCP is confident there will be
no need to reconnect it. Commissioner Cozad addressed safety and stated the continued
dialogue with the neighbors is important and the emergency response plan will need to be updated
with the expansion if it is approved. She also reiterated the input from Fire Chief Buderus
regarding ongoing training and requested more information from the applicant regarding basic
safety. Mr. Groom stated DCP is in the process of scheduling tours with homeowners, and that
kind of continued education and dialogue will be important moving forward. He confirmed there is
safety training with employees and anyone coming to the site with specific processes and
procedures. He reiterated that many of the safety processes are automated and the number of
employees is limited to 15 who are extensively trained. He explained that no one denies that
natural gas and petroleum products are flammable which makes safety a huge priority. He agreed
that in the past, DCP did not have the best communication with neighbors, but there was never a
compromise on safety. Mr. Groom explained there is always someone on -site 24/7, the plant is
designed with automatic shutoff mechanisms to address malfunctions as they are evident. He
explained the flare is a part of the safety design and burns automatically as needed.
Commissioner Cozad encouraged the applicant to provide more information to the neighbors
regarding safety. Mr. Groom repeated the new communication tools being provided to include the
online platform and the telephone number to allow neighbors to contact DCP and to allow DCP
to respond much quicker. Commissioner Cozad stated many testified regarding visual mitigation
needs and many reported damages to their homes caused by the vibrations of the flare and she
asked what is the applicant's plan to work with those who have reported damage to their homes.
Mr. Groom stated if DCP is responsible for the damage then DCP is liable. He explained DCP
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has arranged to have an engineer go out and inspect these properties and the property owner
needs to submit their demand in writing. Commissioner Cozad stated it appears those property
owners did contact DCP and nothing was done. He responded stating there are DCP personnel
here and they are welcome to discuss it before leaving today. Mr. Groom clarified, in answer to
the visual mitigation, that DCP reached out to 100 property owners and has heard from the same
five to six property owners, and have not had a response from the other property owners. He
explained there have been group communications and individual communications and DCP has
offered several ideas regarding mitigation and it has been impossible to tailor a plan to every
property, hence the mitigation to build the 20 -foot wall and landscape with tree plantings and a
split rail fence all on DCP property and hopefully this has provided a reasonable compromise.
Commissioner Cozad address the issue of violations and requested explanation. Mr. Groom
stated the violations were from 2013-2015 and they were addressed as DCP became aware of
them. He asserted that the ESA Report is not a factual document; however, as a violation
occurred, such as a malfunction of a piece of equipment, then if fines were issued, DCP paid the
fines and repaired or replaced the equipment. He clarified he is not aware of any recent violations
and to his knowledge, since those incidents there have been no violations.
E In response to Commissioner Conway, Mr. Groom confirmed that in the event of a violation
that incurs a fine, DCP must settle the fine and mitigate the equipment. Mr. Groom stated the
violations go into August of 2015 and beyond that, he is not aware of any violations. In further
response, he reiterated the details of the proposed measures for a Communications Plan, similar
to the Mewbourn Plant Communications Plan, which has been successful and he added
correspondence is answered within 24 hours.
_= In response to Commissioner Cozad, Mr. Frissell stated he is not aware of any violations or
complaints for this site or the Mewbourn site. He confirmed that SPOs can contact him with a
complaint. In further response, Mr. Ogle stated the wall was not a part of the original Landscape
Plan that was submitted to the Department of Planning Services for review and approval;
however, he confirmed a new Landscape Plan was submitted last night that does include the wall.
He stated the plan is not adequate for mitigation and will need further mitigation to deal with the
height of the towers and equipment. Mr. Ogle reviewed his credentials and explained the process
for review. Commissioner Cozad requested clarification regarding the noise standard
requirements and if there was a new standard, as mentioned by Mr. Loose. Mr. Ogle stated there
is no new standard and each case is determined based on the referral from the Department of
Public Health and Environment and on a case by case basis. He further clarified that the reference
to the incoming permit for a 36 -inch pipeline is a separate USR application which will contain
separate requirements for mitigation. Commissioner Conway clarified for the public that it would
be a new USR and the public could choose to attend that hearing and comment at that time
regarding mitigation requests. Mr. Choate agreed that is the process.
ki Commissioner Cozad requested direction from her fellow Commissioners. After further
discussion, the Board agreed to move forward with amending the Resolution, mitigating public
concerns and updating the findings.
v = Commissioner Cozad requested clarification regarding the Improvements Agreement. She
suggested removing the last sentence of Condition of Approval, COA #1.A. Mr. Groom agreed
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with this change and stated DCP is comfortable with the Improvements Agreement and his only
request was to complete the Agreement as soon as possible. Commissioner Cozad pointed out
that COA #1.D and COA #1.G are duplicates. The Board agreed to remove COA #1.D.
In response to Commissioner Conway, Mr. Ogle clarified the landscape/screening plan to
date. Mr. Groom expressed frustration regarding the process. Commissioner Cozad requested
Mr. Groom work with Staff. Commissioner Freeman clarified that in terms of this case, the
applicant is instructed to work with the Planner, Kim Ogle, who should have final approval of said
landscape plan. The Board concurred. After further discussion with the applicant, the Board
agreed to amend the language of COA #1.F, to read, "The applicant shall develop a Landscape
and Screening plan for review and approval by the Department of Planning Services. The
applicant shall submit written evidence of consultation with surrounding property owners
concerning the Landscape Plan." The Board supported this change.
irm
Commissioner Cozad recommended amending COA #1.G, to include incorporating the dark
skies standard, as described by the applicant during testimony. The Board and the applicant
agreed. She further recommended deleting COA #6, referencing "Prior to Operation:", and
amending COA #6.A to become the new COA #5.C. The Board agreed. Commissioner Cozad
worked through language regarding the Emergency Action and Safety Plan to state on COA #5.C,
"The applicant shall adhere to the existing Emergency Action and Safety Plan during construction
and shall update the plan with the Office of Emergency Management and the Fire District following
construction. Submit evidence of acceptance to the Weld County Department of Planning
Services." The Board agreed to this amendment. Mr. Ogle suggested a new Condition regarding
the decommissioning and removal of the existing flare. Commissioner Cozad recommended
making this a new Development Standard stating, "The existing flare and equipment shall be
decommissioned and removed once the new flare is operating."
Mr. Groom suggested updating language for amended USRs in general to provide for
accommodation to continue to operate under the requirements of the old USR through the
process until the timing of accountability regarding the amended expectations which would
commence after the amended plat is recorded. Mr. Choate confirmed the applicants can continue
to operate under their existing USR throughout this process and that Weld County would not take
any enforcement action until the amended plat is recorded.
__= Commissioner Conway asked for clarification regarding DS #7. Mr. Ogle suggested after
the Communication Plan has been approved by the Department of Planning Services, the
applicant should consider sending notification to the surrounding property owners with information
regarding both online and telephone communication tools.
Commissioner Cozad suggested the aforementioned language regarding the flare being
removed become the new DS #8. Mr. Groom suggested the words, "...and associated
equipment..." be removed. The Board agreed it will read, "The existing flare shall be
decommissioned and removed once the new flare is constructed and operational."
Commissioner Cozad requested a new DS reflecting the applicant being required to notify
the County of any revocation or suspension of a State issued permit. Mr. Frissell stated DS #26
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PAGE 12
covers that. She suggested amending DS #14 to reflect the applicant's proposed reduction to 60
decibels, 24 hours a day, as stated in their testimony, and she recommended a new DS #15 to
address how they will comply with that reduced noise standard such as insulated buildings and
the 20 -foot wall being proposed. Commissioners Freeman and Conway suggested that this
information is implied in DS #14. The Board agreed.
a Mr. Groom did not have any other Conditions or Development Standards to discuss. He
requested a five (5) minute recess to confer with his clients. Chair Pro -Tern Freeman granted
Mr. Groom's request and recessed the hearing at 3:25 p.m.
Chair Pro -Tern Freeman reconvened the hearing at 3:33 p.m.
A __. In response to Chair Pro -Tern Freeman, Mr. Groom indicated he and his client have
reviewed, and DCP Lucerne 2 Plant, LLC, agrees to abide by, the Conditions of Approval and
Development Standards, as amended.
Commissioner Cozad stated that she is in agreement with this application, and believes all
of the changes made today will help alleviate the concerns of the SPOs. She stated she would
like to add references and comments into the findings. She began with #2.A.1 and requested that
the language be modified to delete the seventh and eighth sentences and modify the ninth
sentence to read, "The proposed use is in an area that can support this development and the
changes to the Landscaping/Screening Plan, Lighting Plan, and Noise Mitigation Plan have been
addressed through the Conditions of Approval and Development Standards and will assist in
mitigating the impacts of the facility on the adjacent properties and ensure compatibility with
surrounding land uses and the region." She referenced from the Weld County Code, A.Goal 7
and A. Policy 7.2, and stated she believes the applicant has shown they can be compatible with
the region as well as the regulations for this USR that do support this use and it is in an area that
can support the use and she believes the expansion will make things better for the neighbors.
She cited A.Goal 8, and stated adequate services are available; A.Policy 9.5, and stated the
applicant has shown they have engaged with the public in over 20 meetings, and there was
testimony today from the local Fire District Chief that DCP is working cooperatively with them and
there are adequate emergency services available to protect the health, safety and welfare of the
neighborhood; OG.Policy 2.6, and stated the testimony from the applicant regarding safety
procedures and the application materials meet the requirement by exceeding the safety
requirements. She agreed with Section 23-2-230.B.2 as written, and added to
Section 23-2-230.B.3, stating several letters from SPOs were received and, in response, DCP
held over 20 meetings and took input from the neighbors to propose mitigation. She noted there
were also several letters of support regarding the positive economic impact. She asserted the
amendment makes it more compatible due to the positive changes and mitigation and she
emphasized that the new Communications Plan is an important piece of compatibility, along with
the changes to the Landscape/Screening Plan, Lighting Plan and Noise Mitigation Plan which
further increase compatibility. She stated Section 23-2-230,B.4 was addressed by the applicant's
presentation. She agreed with Sections 23-2-230.B.5 and 23-2-230.B.6, as written; however, she
stated it is another reason she is supportive because it does not take prime farmland out of
production. Lastly, in Section 23-2-230.B.7, she added the modifications to include the
decommissioning and removal of the problematic flare to be replaced with a state-of-the-art flare,
2018-1228
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HEARING CERTIFICATION - DCP LUCERNE 2 PLANT, LLC (2MJUSR18-12-1792)
PAGE 13
the importance of the existing Emergency Action and Safety Plan that will be updated to include
the new completed construction, the applicant has been in compliance with the Air Permit, and
testimony from the Weld County Department of Public Health and Environment (WCDPHE) cited
no known violations since 2015. She stated ongoing communications and training for the facility
and the employees add to the safety, and the commitment to work with the surrounding property
owners to ensure the welfare of the neighborhood is another reason she will be supporting the
application. She also mentioned the positive economic benefits to the County that benefit
everyone.
Commissioner Conway added a comment to Finding 2.D, Section 23-2-230.B.4, that the
site is located in the three (3) mile referral area and the Town of Kersey did not indicate any
concerns. He thanked residents for their testimony and summarized his support for the changes
that were made today and stated his support for the application.
Commissioner Cozad moved to approve the request of DCP Lucerne 2 Plant, LLC, for a
Site Specific Development Plan and 2nd Amended Use by Special Review Permit,
2MJUSR18-12-1792, (for Mineral Resource Development Facilities, Oil and Gas Support and
Service, Natural Gas Processing Facility) one (1) up to one hundred (100) feet in height secure
communications tower, and the addition of new gas processing equipment to improve capacity
and efficiency of the existing plant in the A (Agricultural) Zone District, based on the
recommendations of Planning staff and the Planning Commission, with the Conditions of Approval
and Development Standards as amended and entered into the record. The motion was seconded
by Commissioner Conway, and it carried unanimously. There being no further discussion, the
hearing was completed at 3:52 p.m.
This Certification was approved on the 30th day of April, 2018.
BOARD OF COUNTY COMMISSIONERS
C.� �,�,/ WELD COUNTY, COLORADO
ATTEST: ditifet)•�Cllo
G ;eik. EXCUSED
Steve Moreno, Chair
Weld County Clerk to the Board
EXCUSED
BY:
Deputy Clerk to the B
APP: •VED AS TO
unty orney
Date of signature: 06.-W'k'
Barbara Kirkmeyer, Pro -Tern
Mike Freeman, Acting Chair Pro -Tern
2018-1228
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