HomeMy WebLinkAbout20171609.tiffHEARING CERTIFICATION
DOCKET NO. 2017-42.B
RE: A SITE SPECIFIC DEVELOPMENT PLAN AND 5TH AMENDED USE BY SPECIAL
REVIEW PERMIT, 5MJUSR17-83-542, FOR MINERAL RESOURCE DEVELOPMENT
FACILITIES, OIL AND GAS SUPPORT AND SERVICE, NATURAL GAS PROCESSING
FACILITY, AND THE ADDITION OF NEW GAS PROCESSING EQUIPMENT TO
IMPROVE CAPACITY AND EFFICIENCY OF THE EXISTING PLANT AND ONE (1) UP
TO ONE HUNDRED (100) FEET IN HEIGHT SECURE COMMUNICATIONS TOWER IN
THE A (AGRICULTURAL) ZONE DISTRICT — DCP OPERATING COMPANY, LP
A public hearing was conducted on July 17, 2017, at 10:00 a.m., with the following present:
Commissioner Julie A. Cozad, Chair
Commissioner Steve Moreno, Pro -Tern
Commissioner Sean P. Conway
Commissioner Mike Freeman
Commissioner Barbara Kirkmeyer
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
Planning Services Engineer representative, Hayley Balzano
Health Department representative, Ben Frissell
The following business was transacted:
I hereby certify that pursuant to a notice dated April 28, 2017, and duly published
May 3, 2017, in the Greeley Tribune, a public hearing was conducted on May 31, 2017, at
10:00 a.m., to consider the request of DCP Operating Company, LP, for a Site Specific
Development Plan and 5th Amended Use by Special Review Permit, 5MJUSR17-83-542, for
Mineral Resource Development Facilities, Oil and Gas Support and Service, Natural Gas
Processing Facility, and the addition of new gas processing equipment to improve capacity and
efficiency of the existing plant and one (1) up to one hundred (100) feet in height secure
communications tower in the A (Agricultural) Zone District. The Board deemed it appropriate to
continue the matter to July 17, 2017, at 10:00 a.m., to allow the applicant adequate time to have
a neighborhood meeting to mitigate the concerns of the surrounding property owners. On July 17,
2017, Bob Choate, Assistant County Attorney, made this a matter of record.
Chair Cozad reviewed the procedures for today and clarified only new information will be
accepted during public input.
Kim Ogle, Department of Planning Services, presented a brief summary of the applicant's
efforts to meet with surrounding property owners, on June 19, 2017, to address concerns related
to: safety, plant security, noise levels, air emissions, future plant expansion, traffic, lighting,
potential chemical leaks, and property values. Mr. Ogle stated DCP Operating Company, LP,
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hereinafter referred to as DCP held a follow up meeting on July 10, 2017, to propose mitigation
solutions, which are included in their presentation today.
• Evan Pinkham, Department of Public Works representative, reviewed the access permit and
traffic count information and stated the Department of Public Works is requesting an
Improvements Agreement requirement be added to the Conditions of Approval for the period of
construction. He noted DCP delineated the traffic route to be used during construction as south
on County Road (CR) 35 to CR 32 to avoid residential properties. He clarified no tracking control
is being required at this time. In response to Commissioner Conway, Mr. Pinkham repeated the
proposed traffic routes during construction.
• Hayley Balzano, Planning Services Engineer representative, stated no additional
information.
• Ben Frissell, Department of Public Health and Environment, stated no additional information.
el Patrick Groom, Attorney with Witwer, Oldenburg, Barry and Groom, represented the
applicant and began with a PowerPoint presentation. He stated it is the right time to move forward
due to the demand and necessity to allow the natural gas and oil that is being produced to be
processed. He continued to say it is the right time to mitigate the impacts on property owners and
introduced DCP's commitment to the proposed mitigation measures that incorporate new
technology and address noise, air, lighting, traffic, and security. Mr. Groom reviewed DCP's large
footprint in Weld County with nine (9) processing plants, daily production numbers, number of
employees, and tax revenue. He further reviewed the proposed plant expansion to include its
capacity, production, newer technological benefits, capital investment, additional tax revenue,
jobs being created, and the importance of being able to meet the production demands in the DJ
Basin based on the estimated thirty percent increase of natural gas production in Weld County
alone. Mr. Groom reviewed the results of the last public hearing regarding numerous surrounding
property owners (SPOs) citing concerns and stated DCP subsequently reached out with two (2)
community meetings to learn more about these concerns and be able to address them. He
provided the details of these meetings to include number of attendees, specific concerns, minutes
taken, and the resulting internal review process and proposed mitigation. He stated that noise
was the most cited concern and other concerns included air emissions, flare, traffic, and security,
and, as a result, DCP contracted Wave Engineering to perform a 72 -hour noise emission study,
of which the results are included for the Board's review. He stated DCP held a follow-up
community meeting on July 10, 2017, which lasted about three hours, and included a PowerPoint
presentation, which has also been submitted for the Board's review. Mr. Groom reviewed the
results from the noise study performed by Wave Engineering and reported none of the readings
at any time exceeded 70 decibels. He stated area residents complained the noise is worse at
night and explained DCP identified certain equipment sources and committed to capture the noise
at the source rather than build a noise barrier. He reported DCP is proposing to insulate the
equipment and fully enclose it in an insulated engineered building that will cost 1.6 million dollars.
He further stated the existing gas compressors will be taken offline which will have a positive
impact on noise levels, the new plant will house compressors and compressor piping, and in
addition to that, when the flare goes off and the siren goes off, DCP is proposing to use strobe
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lights for normal circumstances; however, in the event of a true emergency, the alarms will still be
used. He addressed the concern of plant lighting at night and stated DCP is proposing to turn off
the lights at night except for walkways, which will have downcast lighting only, and using additional
lighting only when necessary for maintenance. Mr. Groom stated DCP is proposing a schedule to
minimize maintenance which requires flares at night along with a 16 -foot in height, wall on the
west side of the plant to reduce light pollution and visual impact to neighbors. He addressed traffic
concerns during construction and stated, based on input from homeowners, DCP is committed to
routing construction traffic from the south to CR 32 to CR 35 to the plant and emphasized DCP is
also committed to dust mitigation with water suppression, as also preferred by homeowners. He
mentioned DCP is aware there was a problem with trash during the last expansion and DCP is
committed to monitoring that, enforcing it, and if contractors do not meet these standards, they
will be fired. Mr. Groom stated the next issue is air emissions, which will be addressed by John
Admire, Senior Director of Environmental Quality and Protection. In response to Commissioner
Moreno, Mr. Groom reviewed the use of the strobe light for flare notification under normal
circumstances and in cases of plant emergency and/or a genuine public safety risk, the alarms
will go off. In response to Commissioner Conway, Mr. Groom clarified the strobe light would be
used all the time for normal flare circumstances, not just at night.
John Admire, Senior Director of Environmental Quality and Protection for DCP, stated DCP
received their Air Quality Permit last week and can submit a copy to the Board. He noted it is a
permit for the expansion and covers the operation of the entire facility. He listed the inclusions
and stated the profile for emissions is very low, is in compliance with the Clean Air Act and with
current regulations. He reviewed the Colorado Department of Public Health and Environment
(CDPHE) process of routine inspections, records examination, thorough testing, and identifying
and taking actions when there is a deficiency. Mr. Admire stated when there is a deficiency, DCP
immediately pursues corrective actions and he addressed the two (2) formal enforcement issues
in April, 2015, and June, 2016, and explained, in detail, the circumstances leading up to and the
corrective actions taken by DCP to alleviate each deficiency. He emphasized DCP's desire to
strive to be in compliance and the staff of dedicated professionals that keep track of operations
to stay in compliance. Mr. Admire explained as a part of the existing permit, (Exhibit V)DCP is
allowed to flare up to 4.5 million cubic feet of gas per year and stated DCP has not exceeded the
flare volume. He mentioned the current investigation of seven (7) flaring events that were
submitted to the State for review by a neighbor and that DCP is in the process of reviewing those
events and have a deadline of July 26th to provide a preliminary analysis back to the State and,
furthermore, it does not appear that there were any exceedances that would be reportable in
those videos. He also explained the limitation on smoking. In response to Commissioner
Kirkmeyer, Mr. Admire stated DCP is in compliance and at times there are compliance orders that
have to be addressed. He clarified the State performs an annual inspection and also inspects if
there is a complaint.
Commissioner Kirkmeyer reviewed the June, 2016, compliance order and the report
received, Case #2013-035, and she asked how so many infractions could be a record keeping
issue? In response to Commissioner Kirkmeyer, Mr. Admire explained he was transparent in
explaining some of those issues earlier and that the majority of them are related to poor record
keeping, but a few items required corrective operational measures. He also explained the
operational event on July 7, 2017, that caused the plant to shut down and the evacuation of the
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employees to the perimeter until the problem was isolated and resolved resulting in very quickly
concluding that it was not an emergency, only a faulty sensor. In response to Chair Cozad, Mr.
Admire stated they are using turbines which is the lowest source of emissions available.
IE Mr. Groom stated, in response to Commissioner Kirkmeyer, is that the applicant must comply
with all federal, state and local laws and he explained the fact there is a violation does not mean
it is a violation of the law, only if DCP chooses to ignore and not address the violation does it
become a matter of non-compliance with the law. In conclusion, he stated this is a project
necessary to meet the needs of Weld County and it is a state-of-the-art facility that will reduce
light and noise pollution, and in totality, this plant will provide a better plant than what they have
today. Mr. Groom clarified DCP is in compliance and will continue to operate under the current
permit if denied, but this improved expansion offers the Board the ability to implement new
Development Standards to protect the homeowners. In response to Commissioner Moreno,
Mr. Groom clarified the 1.6 million dollars is just the one residue compressor building, and all the
mitigation offered will be in excess of three million dollars. In response to Chair Cozad, he clarified
the additional 1.4 million dollars is what DCP has agreed to incur for additional mitigation. In
response to Commissioner Conway, Mr. Groom stated it is impossible to perfectly predict the
decibel levels of the new equipment, the levels are ranges, and DCP is predicting a significant
reduction. In further response, Mr. Groom explained there will be a total of 200 employees, with
a maximum of 70 on -site at any one time.
Chair Cozad opened the public hearing and reminded those wishing to speak of the three
(3) minute time limit to allow everyone an equally allotted time.
Lynette Kilpatrick, surrounding property owner (SPO), stated she has heard this Board state
several times that they are adamant about the protection of personal property rights. She
expressed that DCP is negatively affecting the surrounding property owners and keeping them
from enjoying their properties. She stated the neighbors are only asking for simple things to
improve, and knowing DCP has $11 billion in assets makes it difficult to understand why these
items cannot be taken care of. Ms. Kilpatrick pointed out the only reason DCP chose this location
for expansion was because they thought this area would offer the least resistance and the only
reason they held community meetings was because this Board requested they do so. She stated
the proposed mitigation efforts are minimal and consist of improvements that should have been
made long ago. Ms. Kilpatrick expressed her frustration regarding air emissions and requested
another continuance and suggested dispersal studies and compliance to air regulations. In
response to Commissioner Conway, she reiterated her wishes for a continuance to allow air
emissions studies, and more progress made with noise, traffic, and lighting issues.
Richard Stahl, SPO, stated he lives approximately one (1) mile southeast of the site and
emphasized that every proposal and implementation must be accountable. Mr. Stahl expressed
his frustration from the July 10th community meeting when DCP could not give a specific answer
in regard to the noise levels, when they have agreed to specific noise levels at other facilities. He
stated his second request is regarding communication for periodic meetings with surrounding
property owners and some type of notification for emergency events. He described an event on
July 7th resulting in evacuation of the plant; however, none of the community residents were
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notified. Mr. Stahl requested the existing plant be shut down until it can be updated, and if that is
not reasonable, then he requested a continuance to have time to draw up measurable agreements
to address the issues. In response to Commissioner Moreno, Mr. Stahl suggested setting the
noise limitation to 55-60 decibels. In response to Commissioner Conway, Mr. Stahl reiterated his
request for communication to include one regular meeting per quarter with dialogue between DCP
and neighbors and a commitment to notification to surrounding property owners in the event of
an emergency.
• Cindy Clement, SPO, stated she lives one mile west of the plant and that she and the group
of neighbors that are present have worked hard for their homes that are being jeopardized. She
stated she has lived next to DCP since it's unwanted beginning and for 34 years have had to deal
with the noises, light, smell, unwanted emissions in the air, and the traffic. She expressed her
frustration with the 200-300 workers that will be traveling on County roads each day. She stated
this is supposed to be an agricultural area, not industrial, and that many generations helped create
the country life and in just one generation, it is ruined. She gave the example of beehives that
used to be on her farm for Rice's honey and they had to be removed because after DCP moved
in, the bees died. Ms. Clement stated the site glows like a small city and she would like to see
multiple rows of trees planted to help hide the facility and help clean the air. She stated there is
no more wildlife habitat in the area because they have become victims also. She reported a group
of neighbors have tirelessly researched this plant, found years of violations, and this causes her
to wonder how much danger they are in. She requested a warning system be put in place for the
neighbors. Ms. Clement expressed further frustration that while DCP's value increases, theirs
decreases as they live everyday with this plant in their back yard. She concluded with a scripture
from the Bible to love your neighbor as yourself and stated on a lighter note, Mr. Rogers did not
prepare her for this neighborhood. In response to Commissioner Moreno, Ms. Clement stated she
has no evidence of property values decreasing; however, she stated other neighbors have proof.
• Jill Lafferty, SPO, stated she lives approximately 4,000 feet from the plant and she asked
the Board to keep in mind that everything DCP is proposing is based on an expansion approval;
however, when asked if the expansion is not approved would they still mitigate the noise and
lighting and other issues, DCP replied "No" due to funding being tied up in the expansion budget.
She expressed her frustration at being held hostage to the expansion for any improvements to be
made and stated this does not bode well for co -existing now or in the future. She reiterated that it
has been a difficult two months consuming the time of herself and others to learn how gas plants
operate, regulations to oversee them, and learning of the violations and lack of accountability.
She stated the noise is constant, the flare events wake them between 2:00 a.m. and 5:00 a.m.
and she requested a 60 -decibel limit if the permit is approved. In response to Commissioner
Kirkmeyer, Ms. Lafferty stated her letter covered the evacuation and she was at the property
boundary during the evacuation. In further response, Ms. Lafferty repeated the information
regarding the dates on the reports and emphasized there are no real-time results.
• Rick Margheim, SPO, stated he is the closest resident to the plant, was born and raised in
Platteville, and has been at the current residence for 20 years. He stated because of DCP they
can never open the windows, they must run the air conditioning 24 hours a day all summer, they
stopped having friends and family over, and they leave the television on 24 hours a day and are
still awakened by the noise and bright light of the flare. He emphasized DCP represents a history
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of broken promises and lies and he gave the personal account of five years ago, when his property
was buried in sand that was blowing over from DCP and DCP offered no compensation or repairs.
He requested the Board look deeper into the matter for consideration. In response to
Commissioner Conway, Mr. Margheim requested the noise be limited to 50-60 decibels.
• Ed Lafferty, SPO, stated he understands the need for the natural gas industry; however, as
this process continues there seems to be more and more concerns. He mentioned DCP has
reached out and listened and did come up with some good ideas; however, DCP has been
disingenuous in how they described the community meetings. Mr. Lafferty stated there is no
accountability and the neighbors are asking for solutions to limit the noise to 60 decibels, provide
visual mitigation such as a wall, berms and landscaping, and to reduce the lighting. He further
requested this be the last expansion allowed.
• Terri Dechant, SPO, stated she lives adjacent to the plant and her biggest concern is the
noise pollution. She requested a mandatory noise limit of 55-60 decibels. She explained the noise
affects her rodeo training occupation as she cannot hear or speak without the noise drowning out
their voices while trying to train clients. She speculated the air pollution has caused eight of the
nine cotton trees on her property to die. She stated her neighbor, Rick Margheim is the most
impacted and she suggested DCP buy them out to give them the opportunity to relocate or build
elsewhere.
Eg Connie Nagel, SPO, stated she has been to all the meetings expressing her feelings of
frustration and she noted once DCP sent her a letter back telling her to close her windows and
she wouldn't hear as much. She stated her property is the closest to the west and they can see
the entire plant from her back door. She clarified that to block the visual impact, she would need
a 50 -foot wall and she described the plant as looking like a metal jungle and complained they
cannot have family gatherings or even dinner outside because of the noise. Ms. Nagel stated their
homes are all they have and she requested the Board listen to what the community is saying.
Rich Hartness, SPO, stated he lives about one mile west of the plant. He mentioned he
looked up the zoning code and liked what he read regarding balance with residential, farming and
industry, and because of the mixed uses with residential, then residential standards should apply.
Mr. Hartness stated he believes in development and good paying jobs, but he expressed a
difficulty with sleeping because the noise is so loud at night and he lives a mile away while some
of his neighbors live much closer. Mr. Hartness stated residential standards regarding noise
limitations should be enforced and the neighbors should not hear the present plant or the future
plant and he requested the Commissioners strengthen the standards.
• Gerald Johnson, SPO, clarified the plant will grow south and west and stated he submitted
a petition in opposition to this expansion that was signed by over 40 residents. He stated he is an
immediate neighbor to DCP. Mr. Johnson clarified he is a third -generation farmer and very proud
of this heritage and he used to believe in the future of agriculture but now he believes in gas plants
and heavy industry taking away the agricultural way of life even though they were there first.
Mr. Johnson asked for berms, planting blue spruce trees and installing a drip line to maintain them
along with a sound wall to mitigate the visual and noise impacts. He emphasized that this
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community has endured much and never asked for much. Mr. Johnson expressed his frustration
with submitting a plan to DCP before the second meeting and little or no effort was given to the
idea. He insisted that in light of the recent merger with Phillips 66, it seems DCP could build a
berm with trees and a sound barrier wall. Mr. Johnson stated he is not opposed to the expansion,
as long as the needs of the residents are met. He requested information and communication
regarding evacuation distances in the event of an emergency and asked for a second continuance
to allow more time for DCP to work with the community. In response to Commissioner Moreno,
Mr. Johnson explained his reason for requesting more time to actually agree on solutions.
Dennis Nagel, SPO, pointed out his residence on the map and stated although the
Commissioners may be sick of hearing about the noise, he invited them to visit his home to hear
the noise, as he lives in very close proximity to DCP. He asked the question of what has DCP
done to help any of the neighbors? He stated you can't trust DCP because they say one thing
and do another and he pleaded with the Board to help the neighbors.
• Neil Ray, stated he is a member of the Vital For Colorado Board, President of the Colorado
Alliance of Mineral and Royalty Owners, and presented a letter (Exhibit W) from Vital, Carbon
Valley Chamber of Commerce, and Energy Proud regarding the importance of the Oil and Gas
Industry encouraging the Commissioners to approve the expansion, preserve current levels of
production, and provide real jobs for real residents. He stated Weld County leads the state in
business investment and this would unlock further investments to allow Weld County to stay at
the top. He asked the Commissioners to consider the economic and financial benefits to the
County.
• Fred Krumpeck, SPO, stated he is an adjacent neighbor and lives due east of the plant. He
expressed his frustration with the bright lights at night resulting in his house being lit up even with
all the blinds closed, lack of visible stars, and subsequent disappearance of nocturnal wildlife. He
reported when he tried to discuss the lighting problems with DCP, he was told they did not have
personnel to address lighting at that time. He requested DCP turn off exterior lighting at night.
Mr. Krumpeck also addressed the different types of lighting being used at night and how it affects
sleep schedules and over-all health of living organisms. He expressed his frustration with being
a shift worker for 40 years and the need for sleep and he requested a wall be built on the east
side, as well as the west side, to mitigate the light pollution. In response to Commissioner
Kirkmeyer, he stated he lives due east, less than 1,000 feet from the plant.
• Sheri Hannah -Ruh, SPO, stated she has lived at her current location for 13 years and
explained what it was like when she first moved in compared to what it was like after the first
expansion to include increased traffic, lack of tranquility, constant noise, cannot be outside, can
no longer hear toads and birds, the visual impact looks like a small city, negative financial impact
with decreased property values, and overall feeling like being placed inside an industrial box. She
stated she was not notified by DCP regarding this proposed expansion but was notified by
neighbors. Ms. Hannah -Ruh declared she attended the community meetings and does not feel
heard but placated, as none of the mitigation efforts have been in writing. She feels threatened
by a big company flexing its muscles. She requested the Board hold off the expansion until
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mitigation is put in writing. In response to Commissioner Conway, Ms. Hannah -Ruh stated she
joined the process late but feels DCP has not done their due diligence or reached out in writing.
Chair Cozad recessed for lunch, at 12:07 p.m., to return at 1:15 p.m.
• Chair Cozad reconvened the hearing at 1:15 p.m.
Scott Sherman, SPO, stated he lives about two tenths of a mile from the plant. He expressed
his concerns about security issues and stated he thinks the plant is very vulnerable to terrorist
attack and he offered to provide examples of a few places that thought they were secure and
were not. He insisted that a chain -link fence is not security and if something were to happen it
would take police up to ten minutes to arrive. He suggested DCP consider implementing armed
security and building walls around the perimeter. Mr. Sherman provided a visual aid, called a
t -wall, as an example for security. In response to Chair Cozad, Mr. Sherman stated he can take
a picture of the t -wall example and send it as an exhibit (Exhibit Y). Mr. Sherman stated he is also
confused because DCP is saying they are installing insulation, changing turbines, and so forth,
when the Air Pollution Permit for December of 2016 states they were already going to do those
things. In response to Commissioner Conway, Mr. Sherman stated you can make a t -wall any
height you want, and it will block light and sound, and he suggested DCP put this style of wall the
entire perimeter. In response to Chair Cozad, he provided his service history in law enforcement,
corrections, federal government, security, and oversees.
• Rochelle Sherman, SPO, stated she lives in very close proximity to the facility and was not
notified of the expansion or invited to the community meetings but found out through hearsay.
She expressed her frustration with DCP not being a good neighbor by failing to notify them about
the hearing and the community meetings. She also clarified DCP is not doing anything for the
neighbors because these improvements were already in the works. She requested walls be built
around the entire perimeter. Ms. Sherman stated she was not happy regarding DCP's response
that if the expansion is not approved there will be no mitigation. She insisted the noise readings
were taken nowhere near the loudest locations because she has gotten readings of 85 decibels
and she has not been able to get a reading below 70 decibels. She requested a dark skies
ordinance and residential noise limitation because currently her house shakes, she cannot sleep
and cannot have the windows open. In response to Commissioner Conway, Ms. Sherman stated
she got an application for her phone to do the decibel readings and she added that the phone
application readings coincide with the readings from the professional study in the areas they
chose to measure. In response to Chair Cozad, she stated she found out about the meetings from
her neighbors. In response to Commissioner Kirkmeyer, she explained the dark skies ordinance
and gave examples of facilities that adhere to it.
• Juanita Stockwell -Carlson, SPO, stated the plant essentially sits in her backyard and she
was present for the meetings with DCP to address concerns regarding sound, light, pollution,
visual impact, construction traffic, trash, road maintenance and these concerns make the
expansion frightful. She expressed her frustration regarding the evacuation and asked the
question of how many other times has this happened? She reiterated that DCP already had the
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mitigated improvements on the report. She requested a noise limit of 55-60 decibels and for berms
to be built.
Rockelle Rissler, SPO, stated her family has been in the area since 1819, and homesteaded
part of the state and seeing this happen is breaking her heart. She cited concerns regarding noise,
lights and emissions. Ms. Rissler explained how the light pollution is affecting her and her family
personally. She stated there is tons of documentation that supports how continuous light has a
negative effect on the immune system and bodily systems. She gave the example of a native pair
of barn owls having reproduction problems, and the negative reproductive effect it is having on
her herd of cattle resulting in several they cannot sell. Ms. Rissler explained they moved here to
raise cattle and enjoy being outside and it is not enjoyable day or night and at night the lights of
the plant are so bright it causes a significant impact on their sleep. She stated DCP has lied
numerous times and she gave the example of DCP running pipes through their property and to
date the promised reclamation has not happened. Based on this lack of trust, Ms. Rissler
requested the Board: delay approval to allow more time for community meetings; require a
commitment, in writing, to reduce noise levels to the residential level; require a commitment, in
writing, to adhere to the dark skies ordinance; require, in writing, a commitment from DCP to
communicate with the neighbors in an ongoing dialogue; and lastly, require this be the last
expansion at that location.
Eric Ewing, SPO, stated he lives north of the facility and he referred to a letter that he sent
prior to today's hearing offering that there are other gas processing facilities and other operators
that can perform these operations and mentioning the lack of noise compliance. He also
mentioned that he provided information based on Commissioner Freeman's desire for all electric
compressors and he referenced the ECHO report and stated there are several high priority
violations not yet resolved. Mr. Ewing insisted DCP is not compliant. He reported DCP alters the
equipment settings and shuts down equipment for inspections. He stated it took almost five (5)
years to address some of the prior air pollution issues. Mr. Ewing requested the Board deny the
permit to expand. In response to Commissioner Kirkmeyer, he stated he has tried to provide all
the information he possibly can. In response to Chair Cozad, he stated he attended the meetings
and he tried his best to provide ideas and suggestions.
la Eric Jacobsen, Senior Vice President of Operations for Extraction Oil and Gas, expressed
his gratitude for the opportunity to address the Commissioners and regarding the project at hand,
he stated the timely start up and expansion are critical to the DJ Basin productivity. He further
stated that approving an expansion ensures the system is running properly because increased
line pressures places strain on the system and there is a need to avoid unsafe line pressures.
Mr. Jacobson explained Extraction delivers their gas to the DCP system and he believes the
location makes sense for the expansion and they are confident DCP and the neighbors will
collaborate as DCP has a strong track record in this regard with best practices in midstream and
upstream. He stated it is an investment in the safety and economy of Weld County and to the
Industry and the timing is critical. In response to Commissioner Kirkmeyer, Mr. Jacobson stated
expansion commonly assists with updating and he clarified his perspective as a customer, DCP
has demonstrated good practices socially, environmentally and with safety issues in the industry.
In response to Commissioner Conway, he stated approval of this expansion is critical and there
are no other options. Mr. Jacobson explained all of the operators are continuing to drill and
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production gets bottlenecked without gas being processed. Denial of the expansion will cause
facilities to shut down as the pressure in the lines is already high. He explained Extraction has
contracts with DCP and no ability to go elsewhere with product; the local industry will be in real
trouble if this expansion is not approved.
el Chad Calvert stated he manages government relations, external affairs and policy for Noble
Energy Colorado. He submitted a letter (Exhibit Z) and expressed strong support as a
stakeholder; however, he clarified he was not present to diminish the neighborhood concerns. Mr.
Calvert stated he was present to speak on behalf of Noble as a company, the 500 or more
employees in Greeley, and the 1,000 or more contractors that support them in the industry. He
stated there is a context issue regarding the capacity and lifting the constraints will have an
economic impact on production allowing Noble to process 30-35 thousand barrels of oil. He stated
it is simple math regarding calculating the revenue for oil production and tax revenue if this can't
be done, and he provided dollar figures representing these amounts.
Mike Guinn, Director of Operation for Noble, stated with over 1,500 employees and
contractors and 7,000 wells in Weld County, this DJ Basin asset is one of two onshore assets and
this expansion is crucial to the growth and success of Noble. He explained the operational impact
regarding midstream and stated he believes there can be an amicable solution. In response to
Commissioner Kirkmeyer, Mr. Guinn stated they had a similar situation at a different facility and
he recommended working with the neighbors, listening to the issues and implementing BMPs to
bring about solutions. He clarified that the concerns seem to be centered around lighting and
sound mitigation and there is technology that can be implemented to take care of some of the
issues. In response to Commissioner Conway, Mr. Guinn described his experiences regarding
similar situations, reflecting the positive of expansion and the negative of a lack of expansion and
how each scenario results in positive or negative consequences.
Charlie Chambers, Production Engineering Manager for Noble Energy, stated his
responsibility is to manage wells and oversee the production of those wells, to safely and cost
effectively produce oil and gas from those wells. He reported, regarding the capacity constraints,
hitting an all-time pressure high on June 29, 2017, and as line pressure increases it backs up into
the well facilities and high pressure lines and equipment are running at a higher than normal
pressure, still within the operating guidelines, but definitely a concern to those in the field working
around higher pressure iron than normal.
Bill Jerke stated he lives a couple miles away but he shares the concerns of the people here
that he still considers neighbors and described them as friends that he shares a history with. He
expressed his appreciation for DCP as a neighbor and described his dealings with DCP as
excellent. Mr. Jerke stated the economics of this expansion makes sense for the County in light
of huge property taxes that will benefit all the school districts, fire districts and special districts and
he thinks it can be mitigated properly and enforced appropriately. He expressed support for
approval based on necessity regarding the industry. In response to Commissioner Moreno,
Mr. Jerke stated he is no expert on the case but sound seems to be the biggest concern, along
with light and road maintenance.
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George Courcier, Vice President of Marketing and Midstream for PDC Energy, stated he is
here to support the expansion. He reported unprecedented cooperation with DCP to look at and
study the development in the basin and consider expanding this plant and develop more plants
in the future due to the projected trend for an increase. He reiterated the current situation of
pressures increasing across the system and a shortage of midstream capacity and he
recommended the Board approve this critical expansion and allow the industry to follow through
with drilling plans and continue with investments. He stated if there is not available midstream
capacity then companies will look elsewhere to deploy capital. Mr. Courcier stated the industry is
already seeing curtailment and he listed concern related to cutbacks and the ripple effect it has
in the industry. Mr. Courcier reported hiring 50 new employees in the last year due to growth and
stated this expansion is good for the oil and gas business and for Weld County. In response to
Commissioner Kirkmeyer, Mr. Courcier stated when you make representation you are going to
mitigate problems and you recognize there are issues, you should deal with it.
Craig Rasmuson, SRC Energy, stated SRC moved the field office from Platteville to west
Greeley and he explained 80 percent of the daily operational conversation going on reflects high
line pressure and not being able to move the product volume they could if they had the ability with
more plant capacity and bigger lines. He explained they are considering reducing their rigs from
two to one based on not being able to move product because of line pressure and he reviewed
dollar amounts regarding investments and losses to include a huge decrease in employment. He
further stated the industry needs the plant. Mr. Rasmuson stated in regard to DCP's lack of
mitigation, and speaking as an individual, not as a representative for SRC, he does not think there
was great foresight and he believes DCP is making it right now. What has been done was below
par for years, and he hopes it can now be a win -win for both the industry and the neighbors. He
also stated with 120-150 thousand people moving to Colorado each year for the last four years,
there is going to be that conflict with development. In response to Commissioner Conway, Mr.
Rasmuson stated they have already cut back production and are talking about laying one rig off
and it is a concern because it slows everything down.
El Dr. Dave Kisker, Twin Peaks Partners Consulting, stated he is acting as an informal advisor
to the community and is generally familiar with the case and his primary objective has been to
help the community better understand the case. He noted it would be foolish to argue economics
but clarified there is definitely a compatibility issue. He reviewed the concerns mentioned by
neighbors to include the sound, lighting and emissions and recommended measurable solutions.
In response to Commissioner Conway, Mr. Kisker stated DCP seems interested but reluctant to
make a commitment to performance criteria. In response to Commissioner Kirkmeyer, he stated
he is making his own observations on behalf of the consultation business and he has not been
hired by the community nor is he official representation. In response to Commissioner Moreno,
he stated suitable mitigation is possible in the ways discussed.
El Mr. Groom began his response by clarifying that Mr. Yost stated he did not have the authority
to approve the mitigation solutions. He stated DCP has been moving forward with the goal of
approval and if the expansion is denied then DCP will have to evaluate what can or cannot be
done and DCP is committed to doing that. He declared that clearly there has been poor
communication; however, DCP is committed to have meetings with the homeowners on an
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ongoing basis and is prepared to meet quarterly, or can adjust the schedule. He further explained
DCP is prepared to provide online communication tools and will commit to that before the
construction is completed. Mr. Groom addressed the consensus regarding a dark sky ordinance
and stated DCP is prepared to commit to that type of mitigation with some exceptions and will
reschedule maintenance of the flare to daytime hours. He stated he did not hear any objection to
the proposed construction traffic route and this will be stipulated in the Resolution and/or
Improvements Agreement which allows for County enforcement and DCP will fire contractual
labor who do not comply. In relation to dust mitigation, Mr. Groom stated the community
consensus prefers water suppression. He addressed security and stated DCP follows the
homeland security regulations, relies on the information the federal government provides, and
has an emergency response plan. He insisted that the industrial noise standard is the proper
standard and was adopted in the earlier Resolutions and DCP operates within this limit.
He refuted the accusations regarding the mitigations being listed in the current Air Permit and
clarified the expansion improvements and the mitigation improvements DCP is willing to commit
to. Mr. Groom reiterated he is unsure how the sound will be measured if a more stringent noise
standard is put into place, but DCP is willing to commit to the mitigation technology to make a
positive impact on SPOs. He addressed the ECHO Report submitted by a neighbor and stated
DCP is not currently in violation and DCP does not control when the reports are generated. He
clarified the Colorado Department of Public Health and Environment (CDPHE) inspects, reviews
the records and he is confident it will not result in a violation of any Air Permit or any laws as it
costs money if not in compliance and DCP tries to avoid those costs. Mr. Groom reviewed the
effort being made to be in compliance at all times at a facility with over 10,000 pieces of
equipment. He continued to insist that DCP is compatible with the proposed mitigations and the
application is consistent based on cited Code references he used to summarize his response to
include the economic benefit to the industry and the County.
In response to Commissioner Conway, Mr. Groom reviewed the mitigations related to noise
and stated DCP is confident this will reduce the sound overall by 5-10 decibels around the plant,
but it may not be that great of a reduction at every location on the boundary. He stated it makes
sense to maintain the industrial noise standard and require the mitigation measures. He continued
with reminding the Board that the current plant is in the industrial standard and he is unclear where
the noise levels will end up even with mitigation measures. In further response to Commissioner
Conway regarding blue lighting versus yellow lighting and lessoning the visual impact, Mr. Groom
stated he is unaware of the impact of different colors of lighting and he stated DCP is proposing
to replace all the lighting on the property and will install whatever is recommended and it will be
downcast.
In response to Commissioner Kirkmeyer, Mr. Groom stated, regarding communication, DCP
is committed to the internet platform and having the quarterly meetings. In reference to a current
haul route, he clarified there is not a current haul route because there is no hauling being done
currently and the haul route proposed is based on community input regarding the future
construction plans. He further stated DCP has new management and is willing to consider all that
is being discussed and propose solutions if possible. In further response, he reiterated DCP has
no control over when State reports are finalized and it can be typical for it to take 12-24 months.
He interjected that there can also be inspections in the interim based on complaints. In response
to Commissioner Kirkmeyer regarding berming and landscaping, Mr. Groom stated the berm
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would have very little impact on sound, which is why DCP proposed a 16 -foot wall, and he
reiterated landscaping planted today would have very little impact for many years. In further
response, Mr. Groom stated DCP has no current plans for a future expansion and he explained
buying neighbors' homes does not solve the problem. Commissioner Kirkmeyer reminded the
public there is a reverse 911 notification in place. Mr. Groom addressed safety and reminded the
public and the Board that notification would be from the emergency responders. In response to
Chair Cozad, Mr. Groom stated he understands notification is left to emergency responders and
DCP invited the public to take a look at the Emergency Response Plan and it can be reviewed
on -site but cannot be copied due to Homeland Security. He clarified the emergency response
plan at the County is public record and these are two different documents.
El In response to Commissioner Kirkmeyer regarding the SPOs request for a continuance,
Mr. Groom stated there is no need for a continuance because the basis for a continuance is
opposition to the expansion. He clarified the last continuance was to allow DCP to hear the
concerns and this took place with two community meetings and DCP is addressing these issues
as presented today. He further expressed the need to move forward based on industry needs;
however, the dialogue is not going to stop and concerns will continue to get addressed.
In response to Commissioner Conway, Mr. Groom stated the reference to the site with a
residential noise standard is a booster station, not a gas processing plant, which is much smaller
with less equipment, meaning these two sites cannot be compared. He emphasized the DCP
plant is a huge facility with over 10,000 pieces of equipment and it does not make sense to operate
at anything less than an industrial noise standard. In further response, Mr. Frissell clarified the
different noise standards.
• In response to Commissioner Kirkmeyer, Mr. Ogle explained staff does not get notice from
the State regarding compliance. He stated staff has no evidence of any violation. Mr. Frissell
added that, to date, DCP is deemed compliant.
• Chair Cozad asked for direction from the Board regarding moving forward with mitigation or
a continuance. After input from each Commissioner, the Board decided to proceed with mitigation.
• In response to Chair Cozad, Mr. Groom stated DCP's stance on the communications tower
regarding safety issues; however, DCP is willing to allow co -location if third parties are in
agreement with DCP's security measures.
• Chair Cozad recommended adding the standard language requiring an Improvements and
Road Maintenance Agreement to the Resolution as a new Condition of Approval (COA) #1.B, and
she suggested adding a new COA #1.C, to add a landscaping/screening plan. Commissioner
Kirkmeyer agreed there needs to be a landscaping plan to include trees and plants to give a visual
mitigation around the perimeter.
• Commissioner Conway agreed and further suggested engaging the neighbors regarding
input on landscaping to build trust and be proactive. Chair Cozad interjected she agrees with a
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new Condition requiring a communication plan. Commissioner Freeman reminded everyone it is
difficult to appease a large group. Commissioner Kirkmeyer stated DCP should engage the
community. Commissioner Moreno asked for clarification regarding the parameters of the
landscaping plan. After further discussion, Mr. Choate provided language for the new COA #1.C
to read, "A landscaping/screening plan to mitigate visual impacts shall be submitted to the
Department of Planning Services after consultation with area property owners."
• Mr. Groom requested a five-minute recess after the Board completes the changes to the
Resolution to allow him to meet with his client. The Board agreed.
• Chair Cozad suggested a new COA #1.D requiring a Lighting Plan be submitted, to include
no lights at night except on walkways which would be downcast, and the only exception would be
operators working on equipment or emergencies, and requiring modification of maintenance
schedule to eliminate night time flaring. Mr. Groom revised the language to read, "All lights at the
plant will be turned off during nighttime hours except for walkways and as required by
maintenance and emergency demands." In response to Commissioner Conway, Mr. Groom
explained night time maintenance.
le Mr. Choate presented revised language at the request of the Board to read, "A lighting plan
shall be submitted to the Department of Planning Services which shall require all lights to be
turned off during night time hours except for walkways and as required by emergency
maintenance or as other emergencies demand."
• Chair Cozad recommended adding language requiring a Communication Plan as a new
COA #1.E. Commissioner Kirkmeyer agreed and suggested it include quarterly meetings with the
neighborhood and an online presence for communication. She further suggested a Development
Standard (DS) to require compliance with the Communication Plan. The Board agreed.
el Chair Cozad further recommended a Condition reflecting the proposed new construction.
Commissioner Kirkmeyer stated this is included in DCP's proposed Noise Mitigation Plan and can
be added as a new COA #1.F.
• Chair Cozad recommended adding notification to surrounding property owners and
neighbors in COA #6.A in the event of an emergency.
• Commissioner Conway suggested language regarding DS #5 to read, "Colocation of other
antennas by other service providers shall be allowed in accordance with DCP safety
requirements."
Commissioner Kirkmeyer suggested requiring construction and regular maintenance be
required to occur during daylight hours on DS #3. Mr. Groom interjected the possibility of regular
maintenance needing to occur at night. Commissioner Conway stated if there is required
maintenance at night to let neighbors know ahead of time. Mr. Groom stated DCP is wiring the
facility so when there is maintenance at night, only specific lighting in that area will be turned on.
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• In response to Chair Cozad, Mr. Choate read the new language as an additional sentence
to read, "Construction and routine maintenance shall occur during daylight hours."
• Chair Cozad added a new DS #7, to read, "The property owner shall comply with the
Communication Plan, as submitted to the Department of Planning Services." Commissioner
Freeman reminded the Board that additional compliance Development Standards were needed
regarding the Landscaping/Screening Plan (new DS #8) and the Lighting Plan (new DS #9).
• Commissioner Kirkmeyer recommended a new DS #12 requiring the removal of trash during
construction.
Commissioner Conway asked, per DS #4, if ten employees is adequate? Mr. Groom
requested an increase to 20. Mr. Frissell interjected the review process for septic in relation to the
increase.
▪ Commissioner Kirkmeyer recommended this facility be limited to the residential noise
standard due to many residents in the area. Commissioner Moreno asked how it is monitored.
Commissioner Kirkmeyer interjected there are monitoring devices that can be put up on the
perimeter of the property. Commissioner Freeman stated he thinks this level is setting them up
for failure. Commissioner Conway suggested the Light Industrial level of 65-70 decibels, due to it
being an existing facility. After further discussion and hearing from Counsel and the applicant, the
Board agreed to reduce the Noise standard to 65 decibels.
• Chair Cozad requested discussion related to the request for no further expansion.
Commissioner Freeman stated it may not be wise to limit future technology or future Boards.
Commissioner Conway expressed his agreement with Commissioner Freeman and added that
any expansion would have to come before the Board anyway. Commissioner Kirkmeyer stated it
would not be limiting future Boards, just the current property owner. Commissioner Moreno
expressed agreement with Commissioners Freeman and Conway. The Board agreed to create a
new DS requiring all amendments to come before the Board of County Commissioners.
Mr. Choate stated the language to read, "No amendments to this USR Permit may be approved
administratively. All such amendments shall be considered major amendments requiring approval
by the Board of County Commissioners."
Commissioner Kirkmeyer expressed frustration with not receiving compliance advisories or
notices of violations. Mr. Frissell explained the process. Mr. Groom interjected DCP's willingness
to forward notifications. Mr. Choate provided language to be added to DS #19 to read, "The
applicant shall notify the Weld County Department of Public Health and Environment of all
compliance orders, on consent, or other enforcement actions by the Colorado Department of
Public Health and Environment within 60 days of the date of notification."
• Chair Cozad recessed the hearing at 4:45 p.m. for 15 minutes.
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El Chair Cozad reconvened the hearing at 5:04 p.m.
• In response to Chair Cozad, Mr. Choate stated he provided a list of the revisions to staff and
to the applicant, (Exhibit AA).
• In response to Chair Cozad, Mr. Groom stated regarding COA #1.B, his interpretation is that
this refers to the period of construction. The Board agreed and added qualifying language to that
Condition. Mr. Groom further requested clarification on the Board's wishes for the scope of
notification and stated DCP's intent is to provide notification to anyone within a half mile of this
property and anyone requesting information. He addressed the maintenance and timing of
maintenance and stated every three to five years, there is a full facility maintenance that
completely shuts down the plant until everything is cleaned, which can take up to three days. The
Board agreed to reflect this in COA #1.D and DS #3 as an exception. Mr. Groom agreed to notify
area property owners. Mr. Choate stated COA #1.E has been updated to delineate "property
owners within one half mile and anyone requesting notification", and that the terms "neighbors"
or "property owners" or "community" throughout the Resolution will be changed to this specific
delineation.
Mr. Groom suggested the Noise standard state the facility shall not exceed 65 dba as
measured in accordance with the Light Industrial Statute. Mr. Frissell agreed with this suggestion.
Mr. Groom requested an exception for minor swapping of equipment not be required to go
before the Board.
• Mr. Choate interjected that Mr. Ogle suggested changing the term "applicant" to "operator"
throughout the Resolution. The Board agreed.
• Chair Cozad, reviewed the changes.
• Chair Cozad welcomed discussion regarding amendments coming before the Board. After
hearing from the Board, Counsel and the applicant, Mr. Groom suggested a consent agenda item
bypass the Planning Commission and go directly to the Board of County Commissioners. After
further discussion, Mr. Choate provided the following language, "For any minor amendment to the
USR Permit, the operator shall notify all property owners within 500 feet of the property, if more
than 30% of such property owners object, the amendment shall be considered a major
amendment requiring approval by the Board of County Commissioners." The Board and applicant
agreed.
• In response to Chair Cozad, Mr. Groom on behalf of DCP Operating Company, LP, indicated
they have reviewed, and agree to abide by, the Conditions of Approval and Development
Standards, as amended.
Commissioner Freeman moved to approve the request of DCP Operating Company, LP, for
a Site Specific Development Plan and 5th Amended Use by Special Review Permit,
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5MJUSR17-83-542, for Mineral Resource Development Facilities, Oil and Gas Support and
Service, Natural Gas Processing Facility, and the addition of new gas processing equipment to
improve capacity and efficiency of the existing plant and one (1) up to one hundred (100) feet in
height secure communications tower 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. Commissioner Freeman stated his findings are supported by
Section 23-2-230.B.3 regarding compatibility as it is a long-time existing facility. He further stated
it complies with Section 23-2-230.B.5 as it is not in an overlay area. Commissioner Freeman
stated it complies with Section 23-2-230.6.6 and Section 23-2-230.B.1 because the applicant has
demonstrated leaving the north side of the property to agricultural use and grazing.
Commissioner Conway added that it is consistent with Section 23-2-230.B.1 and
Section 22-2-100.E. Chair Cozad stated after hearing all the input today and adding the new
Conditions and Development Standards to include a Noise Plan, Lighting Plan, Landscaping and
Screening Plan, Communication Plan, it does make this compatible with future development
regarding Section 23-2-230.6.4, and it does protect the health safety and welfare of the public
referred to in Section 23-2-230.B.7. She continued to state that it is now better than what is there
currently. Commissioner Kirkmeyer stated the reality is this is not going to make all the neighbors
happy, but the Board attempted to address every concern. She warned the applicant that the
Board will get notification on compliance and she encouraged DCP to be a good neighbor
because the neighborhood is not going away. Commissioner Conway concurred with
Commissioner Kirkmeyer and thanked those who remained and waited for the decision. He
believes the action taken today should make it better and he encouraged the applicant to take
advantage of the communication line. The motion carried unanimously. Chair Cozad thanked the
public for being present and emphasized that their input is an important part of the process.
Commissioner Conway thanked the public as well and stated it may seem disappointing but in
reality their active involvement made a difference today. Mr. Groom thanked the Board on behalf
of DCP. There being no further discussion, the hearing was completed at 5:41 p.m.
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PAGE 18
This Certification was approved on the 19th day of July, 2017.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: ,4,,E4)
Weld unty Clerk to the Board
Deputy C
APP: - yr D
ounty ttorney
Date of signature: i/�/// 7
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Julie A. Cozad, Chair
Steve Moreno, tiro-Tem
an P. Conway
Ike Freeman
EXCUSED DATE OF APPROVAL
Barbara Kirkmeyer
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