HomeMy WebLinkAbout20163467.tiffINVENTORY OF ITEMS FOR CONSIDERATION
Applicant Discovery DJ Services, LLC
Case Number U R16-0028
Submitted or Prepared
Prior to At
Hearing Hearing
SPO
Notification
Post
Cards -
Returned
2
Anadarko
Petroleum
Corporation
Letter
of
Objection
dated
October 28, 2016
'
Response
Discovery
Letter
DJ
from Thomas
Services,
LLC
dated
Kimmel',
October
Esq.,
31,
Zarlengo
2016
&
to Anadarko
Kimrnell,
Letter
PC
on
of
behalf
October
of
28, 2016
4
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6
I hereby certify that the items identified herein were submitted to the Department of Planning Services at or prior
to the scheduled Planning Commissioners hearing.
Kim 0e I ) Planner
Case U: IJ R1B-0028
Name: Discovery DJ Services, LLC
Proposed Project USR for 16 inch rlierete
natural gas pipeline in the Agricultural Zone
District.
Location: South of CR 12; East of CR 31;
North of and adjacent to CR 2; West of CR 43.
Planner: Kim 0gie
PC Hearing bate: Nov. 1, 2016 at 12:30 pm
BOCC Hearing Date: Nov. 16, 2016 at 10 am
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Case : USHI6-0028
Name: Discovery DJ Services, LLC
Proposed Project USR for 16 inch diameter
natural gas pipeline in the Agricultural Zone
District.
Location: South of CR 12; East of CR 31;
North of and adjacent to CR 2; West of CR 43.
Planner: Kim Ogle
PO Hearing Date: Nov�.1, 2016 at 'i2:30 pm
BOCC Hearing Date; Nov, 16, 2016 at 10 am
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EXHIBIT
ANADARKO PETROLEUM CORPORATION MAiN (720) 929-6000
1 099 18TH STREET, SWIE 1800 ° DENVER, COLORADO 80202
Petroleum Corporation
October 28, 2016
VIA E-MAIL
Kim Ogle, Planner
Weld County — Department of Planning
1555 N 179) Ave
Greeley, CO 80631
kogle �weldgov.com
NOTICE OF OIL AND GAS LEASEHOLD INTERESTS OWNED BY KERR-McGEE
OIL & GAS ONSHORE LP, EXISTING PIPELINES OWNE D BY :ERR-McGEE
GATHERING LLC AND OBJECTION
Re: USR16-0028
Discovery DJ Services, LLC — "Applicant"
Multiple Parcels
Weld County, Colorado
Mr. Ogle:
This letter is being sent by Anadarko Petroleum Corporation on behalf of its subsidiaries
Kerr-McGee Oil & Gas Onshore LP ("KMG") and Kerr-McGee Gathering LLC "K I ") in
response to the Request for Comments relating to the proposed Discovery DJ services, LLC Project
('Project"). KMG is the owner of valid oil and gas leases underlying numerous parts of the Project
("Leased Lands") and KMGG is the owner of numerous existing pipelines along or in close
proximity to the proposed Project route. KMGG and KMG are submitting this comment and
objection timely, in accordance with State of Colorado and the County's procedural requirements.
KMG's recorded oil and gas leases are real property interests entitling it to produce oil and
gas from the Leased Lands (and, as may be applicable, adjacent lands). KMG has the right to
utilize the Leased Lands to produce from existing wells, to maintain, rework, recomplete, and
fracture those existing wells to enhance production, andto drill new wells to produce oil and gas,
in accordance with applicable Colorado Oil and Gas Conservation Commission regulations and
Colorado Statutes. KMG's oil and gas assets have significant value, and the Company is
consequently concerned about any development, surface use, plan of use, PUD, zoning or
rezoning, or other action by the County that would impair or preclude its ability to develop its oil
and gas interests.
KMGG owns and operates numerous existing pipelines along the proposed Project route,
and consequently is concerned about any nearby construction activity. Our initial review of the
Project indicates there are approximately twenty proposed crossings of existing KMGG pipelines.
EXHIBIT
� vs¢tCr.oazg
KMG and KMGG have determined that the proposed Project also will intrude upon several
oil and gas drilling windows (as prescribed by statute and the Colorado Oil and Gas Conservation
Commission) and come within close proximity to two existing wellheads and two tank batteries
within Weld County. KMG must object to any approval by the County for the Applicant's plans
that fail to fully accommodate K G's right to explore for, develop and produce oil and gas from
its leasehold interests or the Leased Lands. KMG and KIVIGG request that the County withhold
final approval until such time as the Applicant, KIVIG and KMGG have addressed all concerns.
Please contact me at 720-929-3013 if you have any questions or comments about this
matter. KMG and KMGG hope to resolve all outstanding issues with the Applicant, and we look
forward to working with the County to accomplish its land use planning goals.
Sincerely,
ANADARKO PETROLEUM CORPORATION
( m 1 f Y
a r M
Paul Ratliff
Landman
cc: Jeff Fiske, Lead Counsel
Ron Olsen
Justin Shoulders
Don Jobe
ZARLENGO & KIMMELL, PC
eV! TO'.RNEYS AT LAW
"7 00 N._ CcuJchrado # 598, DENVER, COLORADO 80206
[J0MAS J. KINil iBi.L
3103-R32-620.4
Khannnel lt) 1. Mail.c;om
October 31, 2016
Kim Ogle
Weld County Department of Planning
1555 N. 17th Avenue
Greeley, CO 80631
kw' weI lisp...C4
Re: Response by Discovery DJ Services, LLC to Objection of Anadarko Petroleum Corp.
Dear Mr. Ogle,
On behalf of Discovery Di er vices,, LLC (`LDiseovcr '3), I am hereby responding to
Anadarko Petroleum Corp("Anadarko") as to the gas pipeline
theObjection . filed by�'
and plant project proposed by Discovery: As set forth below,Anadarko'sObjection is
� I
without merit and should be denied.
The objection made by Anadarko is that Discovery's proposed project "will
principal a
intrude upon several oil and gas drilling windows" and come within "close proximity" to
two existing wellheads and tank batteries. This objection misstates the facts and applicable
law. The fact that the Colorado Oil and Gas Conservation Commission ("COGCC") has
established five drilling windows for each 160 acre quarter section within the Greater
attenberg Area does not give Anadarko or any other oil and gas owner the automatic right
to drill new wells in each of the drilling windows or to prevent any other surface
development within these windows. If this argument were accepted, essentially no surface
development other than for drilling oil and gas wells would be allowed in weld County.
Further, given the trend by Anadarko and other producers toward drilling horizontal wells
which utilize significantly greater spacing units, such as 640 acre units, than the eighty (80)
acre units app lic ab le to vertical wells, oi] and gas operators no longer have the need to use
all the possible drilling window locations,
Rather, an oil and gas owner's right to develop minerals must be exercised in
accordance with Colorado law and the applicable rules and regulations of the CO C . In
this regard, the empowering statute, the Colorado Oil and Gas Conservation Act, sets forth
the rule of "reasonable accommodation" of other surface ~ 1e uses* C . R.. Sect
ion 34-60-127
fac
provides for that an oil and gas operator "shall conduct oil and operations in a manner that
accommodatesthe is ion upon and damage to the surface
surface owner �� minimizing intrusion �' �
of the land" and that minimizing intrusions upon and damage to the surface means, among
other things, "selecting alternative locations for wells."
In the present case, Discovery has entered into a contract with the current surface
owner to purchase the surface estate located in Section 1 l.: SE/4E/2 and SW/4, T. 1 N., R.
66 W. and is likely to exercise its option to purchase this estate in the near future. Under
EXHIBIT
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5
applicable law, as cited above, Anadarko must reasonably accommodate Discovery's
surface ri _ _ ht and proposed surface uses. Discovery intends to construct a plant on
�
approximateiy twenty (20) acres of this surface and to install pipelines on the property to
connect to the plant. As to Anadarko's existing two wells in this area, Discovery's proposed
plant
site complies with all setback requirements o It the and Weld County. Neither
the COGCC or Weld County impose any setbacks as to the siting of the buried pipelines
that will be constructed by Discovery.
In response toAnadarko's objections, at a cost of approximately $120,000, Discovery
has already agreed to move its pipeline route to accommodateAnadarko's stated desire to
leave open other locations for future oil and gas drilling by Anadarko. Discovery also
remains willing to consider further accommodation to Anadarko by agreeing to potential
exception locations within Section I I which would allow Anadarko to drill outside of the
standard drilling windows. Accommodation is a two-way Anadarkotreet and has an equal
obligation to accommodate Discovery's proposed surface uses, which can be done without
any detriment to Anadarko.
Anadarko's s ur .her objection that it operates existing underground pipelines that cross
Discovery's ro osed route and is "`concerned about any nearby construction activity" is
proposed
equally without merit. Both Anadarko and Discovery have established customary
procedures and safety rules for crossing other companies' pipelines and Discovery is
follow these � - , _ • 3 ,rules to void any damage to Anadarko's
willing to these customary procedures and a.
lines. Indeed, the law is clear that easements, such as the pipeline easements previously
given to Anadarko over Section 11, are limited interests in property and must be exercised
in a way that does not unreasonably interfere with other reasonable uses of the property,
including the current and future surface owner's desire to run other buried pipelines on the
property. As recognized in the recent Ohio ease of Hawkins v. Creech, 031913 + )H A4, 12
CA
of Appeals 0 1 3 "Generally, , the Court should presume the parties
'���Dh�ot.`�pR � �`
contemplated normal development ►•ould, result in sonic changes in the mode of use of the
p
easement, even if the parties have not anticipated the specific change which occurs. Myers
v. McCoy, 4th Dist. No. 2004CAE07059, 9, 2005 Ohio -2171, 2005 WL 1038871, Paragraph
211" In the present case, permitting additional pipelines in Section 11 which would cross
previously installed pipelines is .a normal development of the property that can be
accommodated without an.y detriment to Anadarko.
In conclusion, for the reasons set forth above. Discovery requests that the Weld County
Hamlin"
g Department artment deny Anadarko's objections and approve the project proposed by
Discovery.
Very truly yours,
A- I ily
/ oitei
Thomas J. K mrn
cc, Discovery DJ Services, LL
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