HomeMy WebLinkAbout20161914.tiffSUMMARY 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.
Absent: Gene Stille.
Also Present: Diana Aungst, Department of Planning Services; Hayley Brown, Department of Planning
Services — Engineering Division; Lauren Light, 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 LLC, C/O EXTRACTION OIL & GAS
PLANNER: DIANA AUNGST
REQUEST: 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 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, T5N,
R65W OF THE 6TH 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 USR16-0009, 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-665 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 citing concerns 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 Planning Services recommends approval of this application 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 the 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
dust control, and the Waste Handling Plan.
Blane Thingelstad, Extraction Oil and Gas, said that their best management practices are centered around
minimizing impacts to the neighborhoods and added that health and safety is their number one goal. He
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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 site which eliminates noise
and dust. Emissions are a large concern and added that there will 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 five (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 the 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. Thingeestad 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 forward 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 ditch or the river and they will use surface distribution
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. Thingelstad 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 the area and noted that there are multiple formations. He added that 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 wells 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 couldn't speak
about Canada but on this site they are collecting, drying out and disposing of the cuttings at an approved
disposal facility.
Commissioner Sparrow asked if the oil tanks will be larger than the typical storage tanks they see. Mr.
Thingelstad said the 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 horizontal 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 this 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 meeting with some people from Greeley,
surrounding property owners and some folks from the school attending.
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Commissioner Smock asked if they anticipate having their permit through COGCC before the Board of
County Commissioner's hearing. 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 inspections 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 in the audience who wished to speak for or against this application.
Carl Erickson, 821 22nd 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 complaints
against Extraction 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 environment 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 Extraction Oil and Gas about finding alternative locations that are appropriate. He supports
Extraction Oil and Gas in having a pipeline that will receive oil north of the Weld County Airport which will
provide a great deal of protection for the school children and the neighborhood.
Conny Jenson, 2008 26th Avenue, stated that she is one of the mineral rights owners for this project and is
not interested in leasing her rights. 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 lives directly across from the proposed site. She is
concerned 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 this site be accessed from another location.
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 24th Street, stated that he lives across from the proposed facility. He is concerned
with the impacts to roads and the neighborhood. Additionally, he emphasized concern that the 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 14th 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 involved 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 the possible 5% escape of VOC's leaking from the
tanks and the air quality for the children.
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Commissioner Jemiola stated that he is familiar with VOC's as he serves on the North Front Range MPO
and air quality has improved substantially since the 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 monitor VOC's and added that there are two (2)
things to consider with VOC's: 1) elevation and 2) wind patterns. She stated that the elevation of this
location is lower than Greeley and the wind patterns blow from the south.
The Chair called a recess at 2:04 pm and reconvened the hearing at 2:20 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 this is an industrial complex. She wanted to hear the exact number
of trucks expected to come through. She expressed concern with 5% of the VOC's 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 production
of the well but rather 5% of the fumes from tanks that is released.
Maydean Worley, 1232 24th Avenue Court, 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 VOC's.
Ann Curry Sanchez, 1527 44th Avenue Court, Greeley, asked how it is possible that an industrial complex
can be located 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 Extraction Oil and Gas did not meet the
requirements for the COGCC floodplain criteria. Ms. Speed provided a handout of the reported spills for
June 6, 2016.
Rachel Gilbert, 1321 19th Street, Greeley, said that her friend's children attend Bella Romero and they were
not aware of this proposed project. She expressed concern 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 the Planning Commission if they would allow the
drilling 22 wells next to a Caucasian elementary school. Commissioner Hansford replied yes. He said that
everyone asks them 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 concerning the health hazards of these
children in the future.
Mr. Gerrero expressed concern regarding the amount of traffic related to this site.
Wes Wilson, 2505 Yales Street, Denver, Colorado, said that the oil and gas emissions that come from Weld
County don't only stay in Weld County. According to NOAA and the State of Colorado 55% of the VOC's
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 living close to oil and gas wells. He
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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 Colorado, shared the compinion from the Concerned Health
Professionals of New York regarding fracing and stated that 70% of studies on groundwater indicate injury
to groundwater or the potential injury 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 the 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
rating 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 the gas is captured and routed through combustors to create 98% efficiency.
Mr. Thingelstad 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 that 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 health, safety and welfare issues in regard to
environmental responsibility from the oil and gas industry. His experience on the Colorado Oil and Gas
Commission was that the industry were the leaders on making suggestions to improve the process.
Commissioner Jemiola referred to noise and dust concerns from the public and asked the applicant to
address those. Mr. Thingelstad said that the sand boxes will eliminate the majority of the dust and noise.
In regard to traffic concerns, Mr. Thingelstad said that there was an existing access to the site; however
they felt it was too close to the neighbors. Therefore they looked at access from 20th 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 type of screening is proposed for the site. Mr. Thingelstad said that
there will be fencing along the north and west side of the property. He added that they will add some privacy
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 said that the drilling
and completion phase are the 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 that 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.
Commissioner Wailes referred to a comment regarding a location area north of airport. Mr. Thingelstad
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 that pipeline as well.
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Commissioner Wailes referred to a comment regarding floodplain rules and asked the applicants to explain
that. Josh Carlisle 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; therefore he applied for an extension to July 1, 2016 to have the additional mitigations in place.
The reason he applied for an extension was because he was potentially anticipating a wet spring 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 next year, they will have
meetings with them. He added that there are multiple sources of water in this location.
The Chair asked staff if there are any changes to the staff report.
Ms. Aungst suggested adding Condition of Approval 1.A that states "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 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 15th of any given year signed by representatives for the Fire District and the Weld County Office of
Emergency Management to the Department of Planning Services".
Motion: Add Condition of Approval 1.A and Development Standard 6, as stated by staff, Moved by Bruce
Johnson, Seconded by Benjamin 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
since 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 concerns 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 applicant mitigating some of these concerns and
believes that they 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 it fits into Section 22-5-100.B Ensure the extraction of
oil and gas resources conserves the land and minimizes the impact on the surrounding land and the existing
surrounding land use.
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The Chair asked the public if there were other items of business that they would like to discuss. No one
wished to speak.
The Chair asked the Planning Commission members if there was any new business to discuss. No one
wished to speak.
Meeting adjourned at 3:44 pm.
Respectfully submitted,
Kristine Ranslem
Secretary
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