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HomeMy WebLinkAbout20161771.tiff BEFORE THE WELD COUNTY COLORADO, PLANNING COMMISSION RESOLUTION OF RECOMMENDATION TO THE BOARD OF COUNTY COMMISSIONERS Moved by Benjamin Hansford, Ihat the following resolution be introduced for passage by the Weld County Planning Commission Be it resolved by the Weld County Planning Commission that the application for CASE NUMBER USR16-0009 APPLICANT 7N LLC . C/O EXTRACTION OIL 8 GAS PLANNER DIANA AUNGST REQUEST A SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAI REVIEW PERMIT FOR OIL OR GAS PRODUCTION FACIUTIES 124 WELLS 18 OIL TANKS. 2 WATER TANKS, 24 SEPARATORS. 2 METER HOUSES. 4 VAPOR RECOVERY UNITS 8 EMISSION CONTROL DEVICES AND 2 VAPOR RECOVERY TOWERS ) IN THE R-1 (LOW DENSITY RESIDENTIAL ) ZONE DISTRICT LEGAL DESCRIPTION. PART OF LOT A OF RE304. PART OF THE S2NW4 OF SECTION 15. TSN . R65W Of THE 6' " P. M. , WELD COUNTY, COLORADO LOCATION . EAST OF AND ADJACENT TO CHERRY AVE AND APPROXIMATELY 300 FEET NORTH OF EAST 24TH STREET. be recommended favorably to the Board of County Commissioners for the following reasons 1 The submitted materials are in compliance with the application reqwrements of Section 23-2-260 of the Weld County Code I 2 It is the opinion of the Planning Commission that the applicant has shown compliance with Section 23-2- 220 of the Weld County Code as follows. A Section 23-2-220 A. 1 -- The proposed use is consistent with Chapter 22 and any other applicable code provisions or ordinance in effect Section 22-5- 100A - OG Goa/ 1 states. 'Promote the reasonable and orderly explorafion and development o/ oil and gas mineral resources. -� The applicant is proposing a multiple oil and gas well pad which includes 24 horizontally drilled wells, 18 oil tanks, 2 water tanks. and associated production equipment There is an existing well pad on the subject property that will be plugged and abandoned and the associated production equipment will be removed . The applicaUon materials state that this new well pad will allow for efficient drilling of minerals from one single location and will also allow minerals to be developed which may otherwise be stranded due to regulations pertaining to well pad siting The hours of operations are 24-hours a day / 7-days a week Up to 50 employees working in two shifts, will be on-site during the drilling , once the wells are completed the facility will be monitored daily by an Extraction employee No on-site employees are proposed Access to the site will be conVolled by an automatic gate that will control access via a key pad Construction of the well pad, earthwork operations. and construction of the facilities will be conducted during typical business hours but may occur 7-days a week The application materials state that a 6-foot wood privacy-fence and hees are proposed along the west, north , and a portion of Ihe south property boundary A 6-foot black chain-link fence is proposed along the boundary that is adjacent to the Greeley #3 Ditch (the south and east boundary) Section 22-5- f00B - OG Goa/ 2 states. "Ensure that the extraction of oil and gas resources conserves fhe land and minimized the impact on surrounding land and the existing surrounding land uses " The app6cant will implement various best management prac6ces (BMPs) dunng the drili�ng phase of this project to minimize impacts to surrounding land owners Some of the BMPs that will be implemented include�. EXHIBIT � - Il - 9 �-� � a � � � - n -� i RESOLUTION USR16-0009 7N LLC Ci0 EXTRACTION OIL & GAS PAGE 2 . Installation of temporary sound walls during drilling and completion activities. • If feasible, powering the drilling rig off of a high line power line. which would eliminate ihe noise caused by the generators on the ng This noise mitigation solution requires proper infrastructure supplied by the power company and therefore may be out of Extraction's hands • During drilling. Green Completion Practices and a closed loop system will be used for the drilling fluids No open pits will be used. • Use of a local or nearby water source to fll the Modular Large Volume Tanks (MLVTs) during completions operaUons therefore reducing truck traffic by not hauling water to the site • Install Emission Control Devices (ECD) and Vapor Recovery Units (VRU) to reduce the VOC I vapors that are generated from crude oil condensate srorage tanks The ECD and VRU units reduce VOC emissions by at least 95% through combustion and sequestration ' • Silica dust suppression will be implemented during the completion process so that dust generated from the silica sand used during hydraulic fracturing will be contained using a vacuum system Section 22-5- 100. 8 - OG. Policy 2 9 states. "Impose pro[ective measures fhrough available state. County and federal regulations to ensure that fhe mineral operatorconducts operations in a manner !hal will minimize current and luture environmental impacts". The application materials state that termination of the Use by Special Review is not expected until the oil and gas wells no longer produce or the wells are no longer fnancially viable The wells will be plugged and abandoned and all debris, abandoned gathering line risers, flowline risers, and surface equipment shall be removed within three (3) months of plugging a well in accordance with COGCC Rcde 1004 Final Reclamation ol Well Sites and Associated Producfion Facilities. Financial assurance has been posted with the COGCC to guarantee fnal reclamation of the site is completed B Section 23-2-220 A2 — The proposed use is consistent with the mtent of the A (Agricultural) Zone District Section 23-3- 110 6 which allows for a Site Specific Development Plan and Use by Special Review Permit for Oil or Gas Production Facilities (24 wells. 18 oil tanks, 2 water tanks, 24 separators. 2 meter houses, 4 vapor recovery units. 8 emission wntrol devices and 2 vapor recovery towers) in the R- 1 (Low Density Residential) Zone District C Section 23-2-220.A 3 — The uses which will be permitted will be compatible with the existing surrounding land uses. The adjacent lands consist of pastures, crops, rural residences and a school in the RE-6 District (Bella Romero Academy 4-8 campus). There is a residence on the parcel on the northwest corner and the parcel on the southwest corner ad�acent to the site. There are three residences south of the Greeley #3 Ditch The closest residence is on the parcel adjacent to the southwest corner of ihe site There are seventeen ( 17) USRs within one mile of the site USR- 1726 for second home and accessory parking. USR15-0009 for a trucking company and storage, USR-834 for a home business, USR- 1106 for a trash business, USR-503 for the sales of cemetery monuments, Amended USR-926 for RV storage, Amended USR-345 for a gravel pit. USR-771 for cultured marble fabricahon USRJ55 for plastic products manufactunng, and USR14-0023 for a gravel pit are all located north of the site. USR-808 for a private recreahonal facility, USR-306 for gravel mining. MUSR12-0012 for an RV park & storage, and USR-852 for oil and gas production facilities are all located south of ihe site. Amended USR-1208 for paint ball recreational facility and USR-832 for an oil and gas production facility are located east of the site. USR-693 for an oii and gas production facility is located west of and adjacent to the site The Weld County Department of Planning Services has received six (6) letters and a few phone calls from the surrounding property owners that ob�ect to this USR The letters outline concems about health risks, the risk of drilling next to a school, safety of the citizens in the area , and the health of the children in the school RESOLUTION USRi6-0009 7N I.LC. C/O EXTRACTION OIL & GAS PAGE 3 D Section 23-2-220 A 4 — The uses which will be permdted will be compatible with future development of the surrounding area as permitted by the existing zoning and with the future development as projected by Chapter 22 of the Weld Counry Code and any other applicable code provisions or ordinances in effect. or the adopted Master Plans of affected municipalities The site is located within the three (3) mile referral area of the Town of Kersey and the Cities of Greeley and Evans The Town of Kersey in their referral agency comments dated March 15. 2016 indicated no concems The City of Evans did not respond with referral comments The City of Greeley in their referral comments dated April 14 , 2016. indicated that the site is within Greeley's Long Range Expected Growth Area. Development Standards from Greeley's Triple Creek case were included in the referral comments and requested to be part of the County's approval process Greeley stated that the applicant should utilize Best Management Practices, host a neighborhood meeting, and situate equipment so that a trail can be placed along the Greeiey #3 Ditch The Greeley Engineering Department has requested that the operator enter into a road maintenance agreement Additionally Greeley had concems about the traffic numbers and the source of water for the hydraulic fracturing . The City of Greeley stated that if the water is not being supplied by the Greeley #3 Ditch or piped to the site the traffic narrative should be revised accordingly. Staff has included a Condition of Approval for the applicant to attempt to address the comments from the City of Greeley No referral agency comments were received from the Greeley #3 Ditch Staff has added a Condition of Approval for the applicant to revise the traffic narrative if the water is required to be trucked into the site E Section 23-2-220 A 5 -- The application complies with Chapter 23, ARicles V and XI, of the Weld County Code. The site is not in a floodplain Building Permits issued on the lot will be required to adhere to the fee structure of the County-Wide Road Impact Fee Program Building Permits issued on the proposed lot will be required to adhere to the fee structure of the I County Facility Fee and Drainage Impact Fee Programs F Section 23-2-220 A 6 - The applicant has demonstrated a diligent effort to conserve prime agricultural land in the locational decision for the proposed use The proposed facility is located on approximately 35 00 acres of soils designated as Other' per the �i 1979 Soil Conservation Service Important Farmlands of Weld County Map The USR will not take any "Prime Qrrigated)" farmland out of production G Section 23-2-220A7 -- There is adequate provisions for the protection of the healih, safety, and welfare of the inhabitants of the neighborhood and County The Design Standards (Section 23-2-240, Weld County Code), Operation Standards (Section 23-2- 250. Weld County Code) . Conditions of Approval and Development Standards can ensure that there are adequate provisions for the protection of heaith, safety, and welfare of the inhabitants of the neighborhood and County This recommendation is based. in part, upon a review of the application materials submitted by the applicant, other relevant information regarding the request. and responses from referral entities The Planning Commission recommendation for approval is conditional upon the following �. � 1 . Prior to recording the map�. ' I RESOLUTION USR16-0009 7N LLC. C/O EXTRACTION OIL & GAS PAGE4 A. The applicant shall develop an Emergency Action and Safety Plan with the Office of Emergency Management and the Fire District. Submit evidence of acceptance of the Emergency Action and Safety Plan to the DepaRment of Planning Services. (DepaRment of Planning Services) B The applicant shall complete a Partial Vacation of USR-665. (Department of Planning Services) C The applicant shall record Recorded Exemption RECX16-0043 (Department of Planning Services) D The applicant shall attempt to address the requirements of the Division of Water Resources, as stated in the referral response dated April 14, 2016 Written evidence of such shall be submitted to the Weld County Department of Planning Services (Department of Planning Services) E The applicant shall attempt to address the requirements of the City of Greeley. as stated in the referral response dated March 15, 2016 Written evidence of such shall be submitted to the Weld County Department of Planning Services (Department of Planning Services) F The applicant shall submit a revised traffic narrative if the water fo� completions cannot be delivered via temporary pipeline or through local ditches and must be trucked to the site. (Department of Planning Services) I G A Drainage Variance request is required and shall be submitted for review and approval in conjuncfion I with the Drainage Narrative The Variance Request form can be found at the following link http //www co weld co uslDeoartmentslPlanninaZoninq/Enqineerinq html . (Department of Planning Services - Engineer) H An Improvements and Road Maintenance Agreement is required for offsite improvements at this location Road maintenance induding dust control , damage repair, specifed haul routes and future traffc triggers for improvements will be included (Department of Public Works) I The map shall be amended to delineate the following. 1 ) All sheets of the map shall be labeled USR16-0009 (Department of Planning Services) 2) The attached Develo ment Standards D � p ( epartment of Planning Services) 3) The map shall be prepared per Section 23-2-260 D of the Weld County Code (Department of Planning Services) 4) All signs shall be shown on the map and shall adhere to Chapter 23, Article IV. Division 2 and Appendices 23-C , 23-D and 23-E of ihe Weld County Code. (Department of Planning Services) 5) The map shall delineate the screening from public rights-of-way and surrounding property owners. (Department of Planning Services) 6) The map shall delineate site and equipment lighting, if applicable. (Department of Planning Services) 7) Cherry Avenue is a paved road and is designated on the Weld County Road Classification Plan as a local road which requires 60 feet of right-of-way at full buildout The applicant shall delineate on the site plan the existing right-of-way All setbacks shall be measured from the edge of right-of-way This road is maintained by Weld County (Department of Public Works) 8) Show and label the approved access (AP16-00117) and the appropriate turning radii on the site plan (Department of Public Works) 9) Show and label the approved tracking control on ihe site plan . (Department of Pubhc Works) RESOLUTION USRi6-0009 7N LLC. GO EXTRACTION OIL & GAS PAGE 5 10) Show and label the entrance gate set back a minimum of 100 feet from edge of shoulder. (Department of Publfc Works) 11 ) The applicant shall show and label ihe accepted drainage features and drainage flow arrows Water quality features or stormwater ponds should be labeled as "Water Quality Feature/Stormwater Detention, No-Buiid or Storage Area" and shall include the calculated volume (Department of Planning Services - Engineer) 12) Show and label the parking and traffic circulation flow arrows showing how the traffic moves around the property (Department of Planning Services - Engineer) 2. Upon completion of Condition of Approval #1 above. the applicant shall submit one ( 1 ) paper copy or one ( 1 ) electronic copy ( pd� of the map for preliminary approval to the Weld County Departmen[ of Planning , Services Upon approval of the map the applicant shall submit a Mylar map along with all other ' documentation required as Conditions of Approval The Mylar map shall be recorded in the offce of the Weld Counry Clerk and Recorder by the Department of Planning Services The map shall be prepared in accordance with the requirements of Section 23-2-260D of the Weld County Code The Mylar map and additional requirements shall be submitted within one hundred twenty (120) days from the date of the Board of County Commissioners Resolution The applicant shall be responsible for paying the recording fee (Department of Planning Services) 3. In accordance with Weld County Code Ordinance #2012-3, approved April 30, 2012 , should the map not be recorded within the required one hundred twenty ( 120) days from the date of the Board of County Commissioners Resolution, a $50 00 recording continuance charge shall added for each additional three (3) month period . (Department of Planning Services) 4 The Department of Planning Services respectfuily requests a digital copy of this Use by Special Review, as appropriate Acceptabie CAD formats are dwg. dxf. and dgn (Microstation) ; acceptable GIS formats are ArcView shapefiles or ArcGIS Personal GeoDataBase (MDB) The preferred format for Images is tif (Group 4) (Group 6 is not acceptable). This digital fle may be sent to ma�s a(�co weld co us (Department of Planning Services) 5. Prior to Construction A The approved access and tracking control shall be consVucted prior to on-site construction. (Department of Public Works) 6 The Use by Special Review activity shall not occur. nor shall any building or electrical permits be issued on the property, until the Use by Special Review map is ready to be recorded in the offce of the Weld County Clerk and Recorder or ihe applicant has been approved for an early release agreement. (Department of Planning Services) Motion seconded by Bruce Johnson VOTE For Passaqe Aqainst Passaae Absent Benjamin Hansford ', Bruce Johnson Bruce Sparrow Jordan Jemiola Joyce Smock Michael Wailes Nick Berryman Terry Cross I Gene Stille RESOLUTION USR16-0009 7N LLC GO EXTRACTION OIL & GAS PAGE 6 The Chair declared the resolution passed and ordered that a certified copy be forwarded with the file of this case to the Board of County Commissioner's for further proceedings CERTIFICATION OF COPY I . Kristine Ranslem , Rewrding Secretary for the Weld County Planning Commission . do hereby certify that the i� above and foregoing resolution is a true copy of the resolution of Ihe Planning Commission of Weld County, Coiorado adopted on June 7 . 2016 Dated the 7�" of June, 2016 Digltally signed by Kristine Ranslem ,���� ,�Y��.��.� Date: 2016.06. 10 10: 7 5: 16 -06'00' Kristine Ranslem Secretary I I SITE SPECIFIC DEVELOPMENT PLAN USE BY SPECIAL REVIEW PERMIT DEVELOPMENT STANDARDS 7N , L�C c/o Extraction Oil & Gas USR16-0009 1 A Site Specific Development Plan and Use by Special Review Permit. USR16-0009 for Oil or Gas Production Facilities (24 wells, 18 oil tanks, 2 water tanks, 24 separators, 2 meter houses, 4 vapor recovery units, 8 emission control devices and 2 vapor recovery towers) in the R-1 (Low Densiry Residential) Zone District. subject to the Development Standards stated hereon (Department of Planning Services) 2 Approval of this plan may create a vested property right pursuant to Section 23-8- 10 of the Weld County Code (Department of Planning Services) 3 This is an unmanned facility. (Department of Planning Services) 4 The landscaping/screening on the site shall be maintained (Department of Planning Services) 5. All si ns h II g s a adhere to Chapter 23, Article IV, Division 2 and Appendices 23-C, 23-D and 23-E of the Weld County Code (Department of Planning Services) 6. The property owner or operator shall provide written evidence of an approved Emergency Action and Safety Plan on or before March 15'" of any given year signed by representatives for the Fire District and the Weld Counry Offce of Emergency Management to the Department of Planning Services (Department of Planning Services) 7 The property owner shall conirol noxious weeds on the site (Department of Public Works) 8. The access on the site shall be maintained to mitigate any impacts to the public road including damages and/or offsite tracking (Department of Public Works) 9 There shall be no parking or staging of vehicles on public roads On-site parking shall be utilized (Department of Public Works) 10. During design, a drainage report or letter shall be submitted ( Department of Public Works-MS4 Requirements) 11 Prior to the start of construction, a Stormwater Management Plan (SWMP) shall be implemented as required by the Colorado Department of Public Health and Environment (CDPHE) permit for Stormwater � Discharges Associated with Construction Activities (COR030000) As detailed in the SWMP, Best Management Practices (BMPs) shall be utilized to prevent sediment and other potential pollutants, including trash, from leaving the site and entering adjacent properties or nearby waterways (Department of Public Works-MS4 Requirements) 12. During construction, Public Works shall be allowed to inspect BMPs for proper installation and maintenance, ensuring adequate safety measures are taken to protect the landowner. neighboring properties, adjacent roadways and nearby waterways from potentially adverse effects of stormwater runoff. The contact witl be notified prior to inspection in order for access to be granted to the inspector. Inspections will be performed at a frequency required by the CDPHE MS4 General Permit (COR090000) (Department of Public Works-MS4 Requirements) 13. Upon final stabilization of the site. permanent structural BMPs may be inspected to verify compliance with the design submitted in the drainage report (Department of Public Works-MS4 Requirements) I� 14 Subsequent inspections may be performed to ensure proper operation and maintenance of the permanent structural BMP at a frequency reqwred by the CDPHE MS4 General Permit. ( Department of Public Works-MS4 Requirements) RESOLUTION USR16-0009 7N LLC. C/O EXTRACTION OIL & GAS PAGE 8 15 The historical flow pattems and runoff amounts on ihe site will be maintained (Department of Planning Services-Engineer) 16 Weld County is not responsible for the maintenance of onsite drainage related features (DepaRment of Planning Services-Engineer) 17 All liquid and solid wastes (as def ned in the Solid Wastes Disposal Sites and Facilities Act, 30 20 100 5. C R S ) shall be srored and removed for fmal disposal in a manner that protects agamst surface and groundwater contamination (Department of Public Health and Environment) 18 No permanent disposal of wastes shall be permitted at this site This is not meant to include those wastes specifically excluded from the def nition of a solid waste in the Solid Wastes Disposal Sites and Facilities Act. 30 20 100 5, C R S (Department of Public Health and Environment) 19 Waste materials shall be handled. stored , and disposed in a manner that controls fugitive dust fugitive I particulate emissions, blowing debris, and other potential nuisance conditions The applicant shall operate in accordance with Chapter 14. Article 1 of the Weld County Code (Department of Public Health and Environment) 20 Fugitive dust should attempt to be conf ned on the property Uses on ihe property should comply with the Colorado Air Quality Commission's air qualiry regulations ( Department of Public Health and Environment) I 21 The facihty shall adhere to the maximum permissible noise levels allowed in the Residential Zone as I delineated in 25 12 103 CR S (Department of Public Health and Environment) I 22 Adequate drinking. hand washing and toilet facilities shall be provided for employees, at all times For employees or contractors on site for less than 2 consecutive hours a day, and 2 or Iess full time employees on site. portable toilets and bottled water are acceptable Records of maintenance and proper disposal for portable toilets shall be retained on a quarterly basis and available for review by the I Weld County Depariment of Public Health and Environment. Portable toilets shall be serviced by a cleaner licensed in Weld County and shall contain hand sanitizers (Department of Public Health and I Environment) 23 Any stained or contaminated soils on the facility shall be removed and disposed of in accordance with ' applicable rules and regulations All spills will be documented and records will be kept onsite for WCDPHE review upon request All spills will be reported to local. state and federai agencies in accordance with all state and federal regulations (Department of Public Health and Environment) 24 . All potentially hazardous chemicals must be handled in a safe manner in accordance wdh product , labeling All chemicals must be stored secure. on an impervious surface. and in accordance with manufacturer's recommendations (DepaRment of Public Health and Environment) 25 Secondary containment shall be constructed around tanks to provide containment for the largest single tank and sufficient freeboard to contain precipitation Secondary containment shall be suffciently impernous to contain any spilled or released material . Secondary containment devices shall be inspected at regular intervals and maintained in good condition . All secondary coniainment will comply with the Colorado Oil and Gas Conservation (COGCC) Commission Rule 604 and/or the provisions of the State Underground and Above Ground Storage Tank Regulations (Department of Public Health and Environment) 26 The applicant shall acquire an Air Pollution Emission Notice (AP E N ) and Emissions Permit Application from the Air Pollution Control Division . Colorado Department of Public Health and Environment, as app�icable (Department of Public Healih and Environment) 27 The applicant shall obtain a Colorado Discharge Permit System or CDPS permit from the Colorado Department of Public Health and Environment (CDPH&E) Water Quality Control Division as applicable ( Department of Public Health and Environmenq RESOLUTION USR16-0009 7N LLC . Go Extraction Oil & Gas PAGE 9 28. A Spill Prevention , Control and Countermeasure Plan . prepared in accordance with the applicable provisions of 40 CFR. Part 112. shall be available on site. (Department of Public Health and Environment) 29 The operation shall compty with all appiicable rules and regulations of State and Federal agencies and the Weld County Code (Department of Public Health and Environment) 30 Sources of light shall be shielded so that light rays will not shine directly onto adjacent properties where such would cause a nuisance or interfere with the use on the adjacent propeRies m accordance with the plan Neither the direct, nor reflected, light from any light source may create a traffc hazard to operators of motor vehicles on public or private sireets No colored lights may be used which may be confused with , or construed as, traffc control devices (Department of Planning Services) 31 A building permit may be required. per Section 29-3- 10 of the Weid County Code Currently the following has been adopted by Weld County 2012 International Codes, 2006 International Energy i Code; 2014 National Electrical Code; A building permit application must be completed and two complete sets of engineered plans bearing the wet stamp of a Colorado registered architect or engineer must be submitted for review. A geotechnical engineering report performed by a registered State of Colorado engineer shall be reqwred or an open hole inspection (Department of Building Inspection) � 32 . The property owner or operator shali be �esponsible for complying with the Design and Operation I Standards of Chapter 23 of the Weld County Code 33. Necessary personnel from ihe Weld County Departments of Planning Services, Public Works. and I Public Health and Environment shall be granted access onto ihe property at any reasonable time in order to ensure the activities carried out on the property comply with ihe Conditions of Approval and ' Development Standards stated herein and all applicable Weld County regulations 34 The Use by Special Review area shall be limited to the plans shown hereon and governed by ihe ' foregoing standards and all applicable Weld County regulations. Substantiai changes from the plans or I Development Standards. as shown or stated, shall require the approval of an amendment of the Permit I by the Weld County Board of County Commissioners before such changes from the plans or Development Standards are permitted Any other changes shall be f led in the offce of the Department of Planning Services. i 35 The property owner or operaror shall be responsible for complying with all of the foregoing Development Standards. Noncompliance with any of the foregoing Development Standards may be reason for revocation of the Permit by the Board of County Commissioners 36 RIGHT TO EXTRACT MINERAL RESOURCES STATEMENT Weld Counry has some of the most abundant mineral resources. including, but not limited to. sand and gravel . oil. natural gas and coal . Under title 34 of the Colorado Revised Statutes minerals are vital resources because (a) the state's commercial mineral deposits are essential to the state's economy: (b) the populous counties of the state face a critical shortage of such deposits: and (c) such deposits should be extracted according to a rational plan , calculated to avoid waste of such deposits and cause the least practicable disruption of the ecology and quality of life of the citizens of the populous counties of the state Mineral resource locations are widespread throughout the County and person moving into these areas , must recognize the various impacts associated with this development Often times, mineral resource sites are fxed to their geographical and geophysical locations Moreover, ihese resources are protected propeRy rights and mineral owners should be afforded the opportunity to exiract the mineral resource I RESOLUTION USR16-0009 7N LLC. C/O EXTRACTION OIL 8 GAS PAGE 10 37 WELD COUNTY'S RIGHT TO FARM Weld County is one of the most productive agricultural counties in the United States, typically ranking in the top ten counties in the country in total market value of agricultural products sold. The rural areas of Weld County may be open and spacious. but ihey are intensively used for agriculture. Persons moving into a rural area must recognize and accept there are drawbacks, including conflicis with long-standing agricultural practices and a lower level of services than � in town . Along with the drawbacks come the incentives which attract urban dwellers to relocate to rural areas open views spaciousness wildlife, lack of city noise and congestion, and the rural atmosphere and way of life. Wthout neighboring farms, those features which attract urban dwellers to rural Weld County would quickly be gane forever Agricultural users of ihe land should not be expected to change their long-established agricultural practices to accommodate the intrusions of urban users into a rural area Well-run agricultural acfivities will generate off-site impacts. including noise from tractors and equipment, slow-moving farm vehicles I on rural roads; dust from animal pens, feld work. harvest and gravel roads, odor from animal confnement, silage and manure. smoke irom ditch buming , flies and mosquitoes: hunting and trapping activities: shooting sports, legal hazing of nuisance wildlife; and the use of pesticides and fertilizers in the felds. including ihe use of aerial spraying. It is common pradice for agricultural producers to utilize an accumulation of agricWtural machinery and supplies to assist in their agricWtural operations. A concentration of miscellaneous agricultural materials often produces a visual disparity between rural and urban areas of the County Section 35-3 5-102 . C R S . provides that an agricultural operation shall not be found to be a public or private nuisance if the agricultural operation alleged to be a nuisance employs methods or practices that are commonly or reasonably associated with agricultural production Water has been , and continues to be, the lifeline for the agricultural community. It is unrealistic to assume that ditches and reservoirs may simply be moved "out of the way" of residential development. When moving to the County. property owners and residents must realize ihey cannot take water from irrigation ditches, lakes. or other structures. unless they have an adjudicated right to the water. Weld County covers a land area of approximately four thousand (4 .000) square miles in size (iwice the size of the State of Delaware) with more than three thousand seven hundred (3,700) miles of state and county roads outside of municipalities The sheer magnitude of the area to be served stretches available resources Law enforcement is based on responses to complaints more than on patrols of the County, and the distances which must be traveled may delay all emergency responsea including law enforcement, ambulance, and fre Fire protection is usually provided by volunteers who must leave their �obs and families to respond to emergencies County gravel roads, no matter how often they are bladed. will not provide the same kind of surface expected from a paved road Snow removal priorities mean that roads from subdivisions to arterials may not be cleared for several days after a major snowstorm Services in rurel areas, in many cases will not be equivalent to municipal services Rural dwellers must, by necessity, be more self-sufficient than urban dwellers. Peop�e are exposed to different hazards in the County than in an urban or suburban setting Farm equipment and oil feld equipment, ponds and irngation ditches. eledrical power for pumps and center pivot operations, high speed traffic, sandburs, puncture vines, territorial farm dogs and livestock, and open buming present real threats. Controlling children's activities is impoRant, not oniy for Iheir safety, but also for the protection of the farmer's livelihood ' � C ��nu.�es �0 - 1 - � � SUMMARY OF THE WELD COUNTY PLANNING COMMISSiON MEETING Tuesday. June 7 2016 A regular meeting of the Weld County Planning Commission was held in the Weld County Administration Building. Hearing Room , 1150 O Street, Greeley Colorado This meeting was called to order by Chair, Jordan Jemiola, at 12: 30 pm Roll Call. Present Benjamin Hansford Bruce Johnson Bruce Sparrow Jordan Jemiola. Joyce Smock Michael Wailes. Nick Berryman , Terry Cross AbsenY Gene Stille. Also Present: Diana Aungst, Department of Planning Services; Hayley Brown, Department of Planning Services - Engineering Division; Lauren LighL Department of Health , Janet Lundquist, Public Works Bob Choate, County Attorney. and Kris Ranslem , Secretary Motion Approve the May 17. 2016 Weld County Planning Commission minutes, Moved by Benjamin Hansford Seconded by Joyce Smock Motion passed unanimously CASE NUMBER�. USR16-0009 APPLICANT� 7N I.LC GO EXTRACTION OIL & GAS PLANNER DIANA AUNGST RE�UEST A SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW � PERMIT FOR OIL OR GAS PRODUCTION FACILITIES (24 WELLS. 18 OIL � TANKS, 2 WATER TANKS. 24 SEPARATORS, 2 METER HOUSES 4 VAPOR RECOVERY UNITS B EMISSION CONTROL DEVICES. AND 2 VAPOR RECOVERY TOWERS ) IN THE R-1 (LOW DENSITY RESIDENTIAL) ZONE DISTRICT LEGAL DESCRIPTION . PART OF LOT A OF RE-304. PART OF THE S2NW4 OF SECTION 15. TSN . � R65W OF THE 6 `" P M. , WELD COUNTY, COLORADO. , LOCATION EAST OF AND ADJACENT TO CHERRY AVE AND APPROXIMATELY 300 FEET NORTH OF EAST 24TH STREET Diana Aungst, Planning Services, presented Case USRt6-0009. reading the recommendation and comments into the record, Ms Aungst noted that this site was approved in 1985 under USR-665 for oil and gas production facilities This boundary of the permitted area under USR�65 contains 80 acres, however since 1985 the original 80 acres has been divided into six (6) separate parcels using the Recorded Exemption process The proposed site will be vacated from USR-665 and be replaced under this request. Ms. Aungst noted that eight (8) letters as well as multiple phone calls were received cding concems of health risks, risks of drilling next to a school, safety of the citizens of the area and the health of the children of the school. The Department of Pianning Services recommends approval of this apphcation with the attached conditions of approval and development standards. Commissioner Wailes inquired as to why the applicants would want to vacate USR-665 if it's ihe same use. Ms Aungst said that after review by staff and the applicants, it was determined in the end it might be an easier process to go through a new USR rather than amend the existing USR permit She added that the well on the south side of the ditch doesn't belong to them Janet Lundquist. Public Works. reported on the existing traffic in the area and access to the site Hayley Brown. Engineering. reported on the drainage conditions for the site ' Ben Frissell, Environmental Health, reviewed the public water and sanitary sewer requirements on-site I dust control . and the Waste Handhng Plan Blane Thingelstad . Extraction Oil and Gas, said that their best management practices are centered around minimrzing impacis to the neighborhoods and added that health and safety is their number one oal He EXHIBIT d � n s l-l.�l - said that even before turning the dirt they perform water quality monitoring by sampling water wells and taking baseline noise levels Mr. Thingelstad said that in looking at noise mitigation they are proposing to plug the rig into high line power and installing sound walls The impact to surrounding properties is less since they can drill horizontal wells from one location Water is proposed to be used by the Greeley #3 Ditch through an agreement, thereby reducing the amount of truck traffic The sandbox technology will be used at this sde which eliminates noise and dust Emissions are a large concem and added that there wili be a vapor recovery tower which captures the last little bit of gas that comes out of solution Additionally, LACT units will be installed which eliminates the escape of any vapors and reduces any spills Staff will be on site to perform leak detection and repair inspections regularly Mr. Thingelstad said that there is about 1300 feet from the equipment to the school. He added that by being able to drill further they have been able to move or eliminate fve (5) well pads Commissioner Wailes asked if they have received approval for using high line power for this site Mr Thingelstad said that it is currently in process, however he feels confident that Xcel will be able to provide power for ihe rig and the facility Commissioner Wailes asked that after the wells are completed and in production, will the oil be piped as well as the gas Mr Thinglestad replied yes and added that they are working to get this pad connected to an oil pipeline: however until this site is approved he cannot move fonvard with getting the pipeline approved through other regulatory agencies. In response to Commissioner Wailes, Mr. Thingelstad said that they are working with people that currently have water rights and will receive water either from the ddch or the river and ihey will use surface disiribution to get it to this location . Commissioner Wailes asked when they anticipate the drilling to start and the process time until it is in � production Mr Thingetstad said that they hope to start drilling in six (6) months and they will develop this site in two (2) phases Each phase has 12 wells and will be drilled in two batches He added that it is about a 250 day process for each phase Commissioner Smock asked why 24 wells were chosen Mr Thingelstad said that they have done some testing in Ihe area and noted that there are multiple formations He added ihat to recover those resources they believe between 16 and 24 wells is appropriate, therefore they are asking for up to 24 wells Commissioner Smock asked what the life expectancy of these welis will be Mr Thingelstad said life expectancy is 20 to 30 years Commissioner Smock referred to the application, specifically regarding drill cuttings, and asked him to explain their process for that Mr Thingelstad said that the shavings are collected . dried out and disposed of at an approved facility Ms Smock said that she found out recently that in Canada they are land applying these cuttings and in a few years the land won't grow anything Mr Thingelstad said he couidn't speak about Canada but on this site they are collecting, drying out and disposing of the cuttings at an approved disposal faciGty Commissioner Sparrow asked if the oil tanks will be larger ihan the typical storage tanks ihey see Mr Thingelstad said ihe tanks will be 10 foot tall, 400 barrel tanks. Mr Sparrow clarified if the only emissions left are carbon monoxide and water. Mr. Thingelstad replied yes. Commissioner Johnson asked which direction the honzontal wells will be located. Mr Thingelstad said these wells will be drilled due west from the site up to 2 miles. Commissioner Berryman referred to comments submitted from the public and asked why Ihis site was chosen Mr Thingelstad said that after looking and reviewing land selection it is about access, setbacks, and access to pipelines and power Mr Berryman asked if they have had discussions with the neighborhood Mr Thingelstad said that they held a neighborhood mee6ng with some people from Greeley. surrounding property owners and some folks from the school attending 2 Commissioner Smock asked rf they anticipate having their permit through COGCC before the Board of County Commissioner's heanng Mr Thingelstad said that the state process is taking longer than anticipated: therefore they will not have the permits prior to the Board of County Commissioner hearing Commissioner Smock asked what facility the drill cuttings will be disposed of Josh Carlisle, Extraction Oil and Gas. said that the waste is disposed of at a variety of approved landfills such as Waste Management, Waste Connections, and Buffalo Ridge. Commissioner Smock asked how often inspec6ons are performed at the site Mr Thingelstad said facility inspections are performed daily With air quality, leak detection and repair are performed monthly The Chair asked if there was anyone m the audience who wished to speak for or against this application Carl Erickson, 821 22n° Street, Greeley, noted the various decisions between the Colorado Oil and Gas Association vs City of Ft Collins and the Colorado Oil and Gas Conservation Commission and Colorado Oil and Gas Association vs City of Longmont He urged the Planning Commission to review all of these decisions and all the implications that they have and deny this application as incompatible with the long range plans of the County. Bill Shell. 2119 Glenfair Drive, stated that he had met with Extraction Oil and Gas yesterday and liked what they heard He added that they liked the idea of electric drills, sound walls, and pipelines for both oil and gas: however he understands that the oil pipeline is not yet in place He provided a list of 93 complainis against EMraction Oil and Gas from the Colorado Oil and Gas Commission . Mr Shell said that by locating a facility next to a school and trying to teach and provide a good learning enwronment will be difficult He said that a number of sites were rejected and added that a number of citizens were involved in the process that lead to holding those sites back and try to steer them toward more appropriate sites He suggested talking with EMraction Oil and Gas about finding altemative locations that are appropriate He suppoRs Extraction Oil and Gas in having a pipeline that will receive oil north of the Weld County AirpoR which will prowde a great deal of protection for the school children and the neighborhood Conny Jenson. 2008 26'" Avenue, stated that she is one of the mineral rights owners for this project and is not interested in leasing her nghts She is concerned because it is located next to an elementary school. She added that there is evidence that when they breathe these toxic fumes it affects them badly and added that more of these sites will affect the ozone level She pleaded with the Planning Commission to deny this application Barbara Flores, 2045 Cherry Avenue, stated that she 6ves directly across from the proposed site She is concemed with the traffic and added that Cherry Avenue does not have any sidewalks and right now children walk to and from school on that street She asked that thls site be accessed from another loca6on. She also expressed concerned about property values She added that she serves on the Board of Directors for the Greeley Irrigation Company and hasn't seen anything from Extraction Oil and Gas for utilizing their water Alan Herman. 1321 E 24'" Street, stated that he lives across from the proposed facility He is concerned with the impacts to roads and the neighborhood Additionally, he emphasized concem ihat ihe entrance and exit to this site is directly across from his house. Commissioner Jemiola asked if there is anything that could be mitigated to make this more acceptable. Mr Herman said that he doesn't think there is anything that can be mitigated He added that a chain link fence will not hold back the dust and noise Therese Gilbert, 1715 14'" Avenue, Greeley, stated that as her role as a teacher and someone who is dedicated to protecting the health and safety of children she got very mvolved with trying to move some of the sites that Mr Thingelstad referred to Ms Gilbert said that these kids will be playing and breathing within 1000 feet of this proposed facility She provided a handout of studies of health effects pertaining to children Ms Gilbert emphasized concern regarding ihe possible 5% escape of VOCs leaking from the tanks and the air quahty for the children 3 Commissioner Jemiola stated that he is familiar with VOCs as he serves on the North Front Range MPO and air quality has improved substantially since Ihe 1970 s He added that he is familiar with a lot of the controls and emissions standards and testing done by the State Air Quality Commission . which monitors daily around the state Ms Gilbert said that they do not moniror VOCs and added that there are two (2) things to consider wrth VOCs 1 ) elevation and 2) wind pattems She stated that the elevation of this location is lower than Greeley and the wind pattems blow from the south The Chair called a recess at 2 04 pm and reconvened the hearing at 220 pm Amanda Harper, 517 CR 18, stated that she has been fighting to keep 24 wells out of her neighborhood in southwest Weld County and added that ihis is an industrial complex. She wanted to hear ihe exact number of trucks expected to come through She expressed concern with 5% of the VOCs that will be leaked. She added that she has pictures and video of dark orange on the prairie. Commissioner Sparrow referred to the 95% that is captured and clarified that it is not the total produc6on of the well but rather 5% of the fumes from tanks that is released . Maydean Worley, 1232 24'" Avenue CouR, Greeley, stated that she doesn't live in the area but her grandson is a student at another school near the Triple Creek well pad that has been approved by the City of Greeley. She is concerned that these children will be less than 1000 feet away from this facility and will be affected by methane and other VOCs Ann Curry Sanchez, 1527 44'" Avenue Court, Greeley, asked how it is possible that an industrial complex can be tocated within an area that is designated as low density residential She highly encouraged the Planning Commission to deny this application Karen Speed. 8310 Cherry Blossom Drive. Windsor. stated that she is here to advocate on behalf of the children who attend Bella Romero Elementary School She provided the demographics of the student population of Bella Romero Elementary School She requested that this application be denied for the health , safety and welfare of the children She is curious as to why EMraction Oil and Gas did not meet the requirements for the COGCC floodplain critena Ms Speed provided a handout of the reported spills for June 6. 2016 Rachel Gilbert, 1321 19'" Street. Greeley, said that her friend's children attend Bella Romero and they were not aware of this proposed project She expressed concem that the children don't have a voice and ultimately by not notifying the parents they don't have a voice today as well She also expressed concern that many of these permits relating to this site are not currently approved and requested denial of this application Dr. Andres Gerrero, 1601 Cedar Avenue, Greeley, asked ihe Planning Commission if they would allow the drilling 22 wells neM to a Caucasian elementary school Commissioner Hansford replied yes He said that everyone asks ihem if he would like to live next to this and added that he is surrounded by multiple gas processing plants as well as seeing several oil rigs from his front porch so he does have this in his back yard as well Mr. Gerrero asked if the parents were notified of this project Mr Hansford said that landowners within 500 feet of the property are notified The Chair asked Mr Gerrero to ask questions pertinent to this land use case Mr Gerrero asked if the County is willing to pay for all the lawsuits conceming the health hazards of these children in the future. Mr Gerrero expressed concem regarding the amount of traffic related to this site Wes Wilson , 2505 Yales Sireet Denver, Colorado. said Ihat the oil and gas emissions that come from Weld County don't only stay in Weld County According to NOAA and ihe State of Colorado 55°/o of the VOCs that contribute to ground level ozone noncompliance originate from the oil and gas industry on the Front Range According to Dr Lisa McKenzie there are birth defects when hwng close to oil and gas wells He 4 asked the Planning Commission to maintain this residential zoning and assure that these wells are properly located from residents and these school children Phil Doe, 7140 South Depew. Littleton Cobrado. shared the compinion from the Concemed Health Professionals of New York regarding fracing and stated that 70% of studies on groundwater indicate injury to groundwater or the potential in�ury to groundwater Additionally, 88% of the professional studies on air quality show a degradation of air quality from fracing He also said that 84% of the studies on public health show that there is a consequence on public health or ihe likely hood of consequence on public health Mr Thingelstad said that their design and best management practices are all designed around protecting the health and safety of the surrounding community Although the LACT unit and the combustors have a reting of 98% plus, they are only allowed to claim 95% efficiency through the Colorado Department of Health Regulations The industry has created new designs to protect air quality by creating more of a loop system where ihe gas is captured and routed through combustors to create 98% efficiency Mr Thmgelstad said that they take the air questions very seriously He added that they are out there all the time inspecting for leaks with equipment and flare cameras He said ihat they live and play here as well and will be held accountable ' Commissioner Cross agreed that safety regulations for oil and gas has improved over the years and is impressed that 24 wells can fIt within a small space list this Commissioner Johnson said that he served nine (9) years on the Colorado Oil and Gas Commission and worked with the Colorado Health Department on heatth . safety and welfare issues in regard to environmental responsibility from the oil and gas industry. His experience on ihe Colorado Oil and Gas I Commission was that the industry were the leaders on making suggestions to improve the process Commissioner Jemiola referred to noise and dust concems from the public and asked the applicant to I address those. Mr Thingelstad said that the sand boxes will eliminate the majority of the dust and noise In regard to traffic concems. Mr. Thingelstad said that there was an existing access to the site: however �i they felt it was too close to the neighbors Therefore they looked at access from 20'" Street as well as Business Highway 34 He added that they are hoping to receive approval for the access off of Business � Highway 34 Commissioner Jemiola asked what rype of screening is proposed for the site Mr Thingelstad said ihat there will be fencing along the noRh and west side of the propeRy He added that they will add some privacy li screening before the ditch as well Commissioner Berryman asked if there were other sites they contemplated and explain why they didn't work Mr Thingelstad said it comes down to electricity. access to pipeline, setbacks and number of , residences. Commissioner Berryman clarified if there are 23 round trips per day Mr Thingelstad sa�d ihat the drilling and completion phase are ihe busiest traffic times with 23 round trips per day Mr. Berryman asked if there is a haul route Mr Thingelstad said it will be coming south and not going on Cherry Avenue or by the schooL Commissioner Berryman said there is a lot of information regarding VOC's and asked staff for guidelines they should be taking into account for this project Mr Frissell said that they are not experts in air quality either which is why there is a development standard ihat refers back to the State of Colorado Air Pollution '� Division and requires the applicant apply for permits for an Air Pollution Emissions Notice and the permit associated with it He added that the State of Colorado does regulate all those aspects of it and has the appropriate loading calculations that they perform I Commissioner Wailes referred to a comment regarding a location area north of atrport Mr Thingelstad I said that there is a new pipeline being constructed from Lucerne to Cushing, Oklahoma. He said that the purpose is to get the oil from here to Oklahoma and they intend to connect to ihat pipeline as well 5 Commissioner Wailes referred to a comment regarding floodplain rules and asked the applicants to explain that Josh Carhsle said it was a headline grab and explained that the rules going into effect allowed for an extension deadline FEMA updated their floodplain information two weeks prior to that deadline to apply for an extension and that new information from FEMA incorporated about 25 additional locations from their facilities. iherefore he applied for an extension to July t . 2016 to have the additional mitiga6ons in place The reason he applied for an extension was because he was potenUally anticipating a wet spnng and wanted to get work done on these sites when it was dry He said that he currently has crews out installing anchors and diversionary berms at their sites Commissioner Wailes asked if the applicants have talked to the Greeley Irrigation Ditch about surface water rights Mr Thingelstad said that at this point it is too early to be involved with the ditch companies as far as moving water When it comes time for the completion phase, which will be late ne�R year, they will have meetings with them. He added that there are multiple sources of water in ihis loca6on. The Chair asked staff if there are any changes to the staff report. Ms Aungst suggested adding Condition of Approval 1A that states "The applicant shall develop an i Emergency Action and Safety Plan with the Office of Emergency Management and the Fire District Submit evidence of acceptance of the Emergency Action and Safety Plan to the Department of Planning Services". Additionally, she suggested that a new Development Standard 6 be added that reads "The property owner or operator shall provide written evidence of an approved Emergency Action and Safety Plan on or before March 15'" of any given year signed by representatives for the Fire District and the Weld County Office of Emergency Management to the DepaRment of Planning Services" Motion : Add Condition of Approval 1 A and Development Standard 6, as stated by staff, Moved by Bruce Johnson , Seconded by Ben�amin Hansford Motion carried unanimously The Chair asked the applicant if they have read through the amended Development Standards and Conditions of Approval and if they are in agreement with those The applicant replied that they are in agreement Motion : Forward Case USR16-0009 to the Board of County Commissioners along with the amended Conditions of Approval and Development Standards with the Planning Commission's recommendation of approvaL Moved by Benjamin Hansford, Seconded by Bruce Johnson Vote: Motion passed (summary : Yes = 8. No = 0. ) Yes: Benjamin Hansford . Bruce Johnson, Bruce Sparrow, Jordan Jemiola. Joyce Smock Michael Wailes Nick Berryman , Terry Cross Commissioner Wailes stated that they have seen a lot of oil and gas production facilities come through and smce serving on this Board he is amazed at how the industry continues to improve and evolve with their equipment and efficiencies Commissioner Sparrow said that he hopes the applicant will address where he will get the water, electricity and how the product will be transported out of the area prior to the Board of County Commissioners hearing. Commissioner Smock said that the safety is one of the largest concems and added that she would like to hear comments from someone that lives close to one of these facilities Commissioner Berryman said that he appreciated the apphcant mitigating some of these concems and believes that ihey are turning in the right direction concerning safety and the residents He appreciated all of the public coming in to voice their concerns and believes that that their comments help to improve regulations. albeit it may be at a glacier pace Commissioner Johnson said that as far as land use rt fits into Section 22-5- 100 6 Ensure the extraction of oil and gas resources conserves the land and mmimizes the impact on the surrounding land and the exisUng surrounding land use. 6 The Chair asked the public if ihere were other items of business that they would like to discuss No one wished to speak The Chair asked the Plannmg Commission members if there was any new business to discuss. No one wished to speak . Meeting adjoumed at 3 44 pm. Respectfully submitted , Digitally signed by Kristine Ranslem �,y,��u_. �y;��(;�nti Date: 2016.06. 10 10:2833 -O6'00' Kristine Ranslem Secretary 7 ATTENDANCE RECORD • NAME ADDRESS John Doe 123 Nowhere Street, City, State, Zip Ln;ji1,/I 42, 'R'l 5/1 Rd. 1 )L GL' c_f- C cf��-)7 , I:31 1, i..... <5HG/. L -- J ALA Er i.e_l2sr,_ TLictGSG :89-61"-i- /7/.C /141"" fry /'e&/&�,co i°6a/ CennK /&n 6/1 E3ur ra_ P) re S �" ac45 CN t N Ave.A( ree\e �j�ir6>�i'%r, j�'O706,31 /a?3a?e �n/,-f'(g 6,?% ed1-1.tr -nag- , nv/-eJK )3a4 frS4- O� `/ t'' S4, %rem. lE /(io OOG / /rl Kreyr,. 7 ,S\,6(_ 3 a^ in 2 6,4C�S0 acl,�.z 1 <i, I br,� I..; 1 {+ + Anne' C(6 rn SarAnd-,Pz. 152 3- Av CT- Greek C 93639 r6Gwrrein),74, ob'cif, Andy/Jy ,� /4c) (Jim rAL -16.4-/r , ?pjt2 (J1r5 /sue .. dcic ice S Y.4 r4-5 SY. � r�dr- f &J a� rAL/ Doe 7/461 5. o.,rl 4, ? �//77 gd g4/2-- Hello