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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 I{ 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 .• tat It 1' ••-- a Ana ea _••.-. • *:-a.,rw ,-.«Y r',. »..i .. ...re S r 44 I . is • • -L .-• 1.: ■/M.M} n• I.I A D * Mi; 1• • • 1 • i U S POSTAGE>>Pirre?8 }VE5 ,OS. iLir alsitspliSiffolin err • 00n0-3;-,F7e9 or:1 tit 2016 Weld County Planning Services 1555 N 17thAve Greeley ''e"' (970)353-C r •tP' RECEIVED OCT 19 2016 Weld County Planning Department GREELEY orncE OKONSKI �lMOTiiY 1) 169 SLE AVE LOiCHTBUIE CO 80603 I' 'limb' iIi'i NIXIE ri' •_1 208 NEE a 1618610 RE-T-uPN TO 5Er4GE; ▪ — r. _ a. • •' C r� ec ijI11�1:la..P ait0-95267_ j4k+f�1II; zj l Ii i1 x�i1 �;� �ti�'l II 12-4€ 1 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 a rJ I..,_ .ardor -xi. Iars. _._—rte r •a'l I •r re, r a 1 P • • _ OINNIN It h 1 ■ Y7S1- }f}rI*'1r•_Ji?y 4S1• • �u:.- 1 C. ,'fj j..- .y..---.. .to a'.aSite r rak+ .-a..• Y 4' eJ. - 9 1� •t, I t. 1 of He j�`'u, E??F':It r£i,-IY•,W _'` charie—setnisf -temmals !2iP1 ,000 34° nrrironSiarc, '2 t Weld County Planning Service 1555 N 17th Ave Greeley CO 80631 (970)353-6100 ext. 3540 H3j/ BINDER HOWARD E., .1R. :i� ��C IUM Y ROAD 22S N -FT-LAUPTON co 80621 !!ii uii Ihi iiiiu,, iii I iiii ii ji iiiiiii5r r. ts i ►- sw 11 3C: s I r FE TuE.N1 its s NDE T O 4'1 t �1'Y'I�iL1 7 1 C U 14 I'S f I i• k--. It r .� -- r R ea" 'OR wrvaan 1J I I la - Sim t1 BQ63 911",5 E 20- el318-'1.2--d,�. 'I,k1ic1(►��1�1,Itl1�l���,liji�ll 111i1�11:'{Illijs�l;,�l���l�t 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 vac* steetetti 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 Hello