HomeMy WebLinkAbout20151069.tiff HEARING CERTIFICATION
DOCKET NO. 2015-30
RE: APPROVE SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW
PERMIT, USR15-0006, FOR MINERAL RESOURCE DEVELOPMENT FACILITIES, OIL
AND GAS SUPPORT FACILITY (CLASS II OILFIELD WASTE DISPOSAL FACILITY -
SALTWATER INJECTION FACILITY, WATER RECYCLING, A TRUCK TANKER
WASHOUT FACILITY AND A TANK STORAGE CONTAINMENT AREA) IN THE
A (AGRICULTURAL) ZONE DISTRICT - BOOTH LAND AND LIVESTOCK, LLC, C/O
NGL WATER SOLUTIONS DJ, LLC
A public hearing was conducted on April 22, 2015, at 10:00 a.m., with the following present:
Commissioner Barbara Kirkmeyer, Chair
Commissioner Mike Freeman, Pro-Tem
Commissioner Sean P. Conway
Commissioner Julie A. Cozad
Commissioner Steve Moreno - EXCUSED
Also present:
Acting Clerk to the Board, Tisa Juanicorena
Assistant County Attorney, Brad Yatabe
Planning Services Department representative, Kim Ogle
Planning Services Engineer representative, Wayne Howard
Health Department representative, Heather Barbare
The following business was transacted:
I hereby certify that pursuant to a notice dated March 20, 2015, and duly published
March 25, 2015, in the Greeley Tribune, a public hearing was conducted to consider the request
of Booth Land and Livestock, LLC, c/o NGL Water Solutions DJ, LLC, for a Site Specific
Development Plan and Use by Special Review Permit, USR15-0006, for Mineral Resource
Development Facilities, Oil and Gas Support Facility (Class II Oilfield Waste Disposal Facility —
saltwater injection facility, water recycling, a truck tanker washout facility and a temporary tank
area) in the A (Agricultural) Zone District. Brad Yatabe, Assistant County Attorney, made this a
matter of record.
Chair Kirkmeyer advised Doug White, applicant, that since Commissioner Moreno was not
able to be present, he had the option of continuing this matter to a date with the full Board
present. However, if he decides to proceed today, it will require three affirmative votes, or in the
case of a tie vote, Commissioner Moreno will listen to the record and make the determining
vote. Mr. White indicated he would like to proceed.
El Kim Ogle, Department of Planning Services, presented a brief summary of the proposal
and stated the site is within the three (3) mile referral area of the Town of Eaton; however, there
was no referral response returned. Mr. Ogle stated the site is not within any recognized overlay
district, including geologic hazard, floodplain or airport overlay districts. The facility is located on
a 26.1-acre lease-hold parcel within a 260-acre parcel used for agriculture production. He
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reviewed the uses and adjacent properties in the area to include five residences located within
half a mile of the site. Planning staff received two letters and one telephone call from
surrounding property owners regarding concerns with safeguards of well water, transient
movement of injection fluids below their property, truck trips, hours of operation, traffic safety,
acceleration and deceleration lanes, and site lighting. Mr. Ogle pointed out there are other oil
and gas facility uses in the area and reviewed the proposal to include the water recycling facility,
truck washout, tank storage containment, 160 round trip truck trips per day, ten full-time
employees with no more than five (5) on-site at any given time, pump house, office, laboratory,
and up to three (3) disposal wells being considered for future development. Staff sent out 18
referrals and three responded without comments and four responded with comments that have
been taken into consideration. He entered the favorable recommendation of the Planning
Commission into the record as written.
ID Wayne Howard, Department of Planning Services Engineer, provided a brief overview of
the transportation plans and requirements to include location and road specifications regarding
right-of-way, traffic counts, and the traffic study review indicating a maximum number vehicle
trips and also recommending a Stop sign be installed. He reported the Access Permit number,
AP#15-00013, and reviewed the relevant requirements and permits to include tracking control,
Improvements and Road Maintenance Agreement, retention pond waiver, Drainage Narrative,
and grading. In response to Commissioner Cozad, Mr. Howard stated the traffic study did not
trigger improvements on County Road (CR) 74.
e Heather Barbare, Department of Public Health and Environment, reviewed the water and
sewer provisions and stated the applicant provided evidence of an Air Pollution Emmission
Notice to the Air Pollution Control Division, financial assurance, and the approved Dust
Abatement Plan. She reviewed the relevant requirements and permits regarding the proposed
vehicle washing area, the tank storage area, the commercial well for drinking water, and the
Waste Handling Plan which requires some revision for approval. Ms. Barbare stated the facility
requires registration with the Colorado Department of Public Health and Environment for
recycling and that the applicant has submitted a Groundwater Monitoring Plan that also requires
revision for approval. She conveyed the specific operations requirements that are required for
the release of building permits and stated injection wells are subject to these same standards.
She mentioned various permit requirements, Conditions of Approval and Development
Standards.
e Doug White, applicant, stated this is a standard saltwater disposal facility based on the
needs of Noble and PDC operations in the area. From the geologic perspective, this location
was as far west as NGL was comfortable with building a new facility due to the uplift of the
Rocky Mountains and foothills. He stated the facility is currently drilling one well and projecting it
will have a maximum 15,000 barrels per day due to geology, and NGL is working with the
Colorado Oil and Gas Conservation Commission on any seismic interests or concerns and they
are requiring seismic monitoring devices be installed prior to operation. He stated NGL has met
with many of the surrounding property owners to mitigate concerns; and, with there being over
50 oil and gas production wells in the three-mile radius of the facility, it is a good location. Mr.
White communicated there is already a high level of truck traffic and, regarding the concerns
related to light, noise and traffic, NGL will use downcast lighting to light as much as possible,
and plant trees as a noise and/or pollution barrier. Further, Mr. White stated NGL has met with
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Mr. Johnson to address concerns regarding his water rights in relation to the irrigation ditch
running through both properties and stated NGL is committed to developing the entrance and
exit in a manner to preserve his water rights. He conveyed NGL has reduced their maximum
truck trips based on concerns expressed at the Planning Commisison hearing and the future
development of the facility includes piping water which will also reduce truck trips and save
money.
e In response to Commissioner Cozad, Mr. White explained as with all their facilities, they
have been asked to prepare for the future which is why they are putting in plans for a truck
washout, and future recycling ability. However, presently the primary phase of construction is for
the salt water disposal faciltiy and he pointed out the various steps of the operation from entry to
exit to include the location of the aforementioned irrigation ditch and the plans to preserve it. In
regard to safety measures in relation to the proxemity of this facility to other residents in the
area, Mr. White communicated that all of the Colorado tanks are bonded and grounded and
NGL is implementing additional lightning protection at all facilities due to recent events. He
further explained the primary, secondary, and tertiary third level containment measures and
regarding the seismic safety measures, NGL is working closely with the State utilizing seismic
monitors and acquiescing to the limitation of 10,000 barrels per day for injection wells until the
state allows them to increase the maximum number of barrels at each phase of operational
approval.
la Dale Trowbridge, property owner to the west, reviewed his concerns regarding increased
truck traffic and asked how it will be mitigated not to exceed the limitation; and, further regarding
traffic, there is no shoulder to help with getting off the road making it a very dangerous location
and there is a need for deceleration lanes. Mr. Trowbridge pointed out the hill and the drainage
patterns that flow through the property, and mentioned his concerns regarding the potential risk
to groundwater as it relates to his well and irrigation. Lastly, he mentioned the unknown effects
of the injection well dispersing the contaminated water under his and other properties causing
him concern because it is being done without compensation regarding property rights. In
response to Chair Kirkmeyer, Mr. Trowbridge stated the water being injected is spread out.
e John Johnson, neighbor, owns Johnson Dairy to the south, stated his concern is not to
stop the project and he is a proponent of oil and gas; however, he wants to make sure things
are done as properly as can be. He concurred that NGL had met with him as the facility plans
progressed; however, he sought clarification on the truck trip figures, stating the reality is 320
truck trips in regard to the engineering based on a maximum of 250, and questioned how this
number will change again with another well being drilled in the future. Mr. Johnson further stated
the road is not adequate for semi truck turning radius and the road needs to be widened for
safety to provide adequate space to maneuver. Mr. Johnson also mentioned the lightning strike
causing concern with the explosive flammable material and questioned what chemicals are
present to cause such a volatile reaction. He expressed concern over the future truck wash and
the reality that the contaminated and volitile water will be washed out and into a holding pond
and even if the pond itself is lined, it will not prevent the spill over with a big rainfall and with the
drainage patterns allowing it to flow downhill toward other properties and also seeping into the
ground water.
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la In response to Chair Kirkmeyer, Mr. White expressed his thanks to both homeowners for
their presence, comments and participation in the process, stating it helps NGL be a better
company. He further stated, in reference to the idea of driveway expansion, that NGL is not
against it and will revisit this with the engineering team within the stipulations of the county to
see how much they might expand the driveway and create turn lanes; and for the record, NGL
will do whatever needs to be done to maintain the safety of the highway. Mr. White clarified the
160 truck trips means round trips so that a truck arrives and delivers water to be disposed of
and leaves empty. He further stated with the well limitations, the maximun projected is 20,000
barrels per day clarifying that NGL will maintain the 160 round trip truck trips as mitigation for
the neighbors. He explained the initial well will deteriorate over time which is the reason to drill a
second well in the future. Mr. White reviewed the process from start to finish and stated
everything they do at the facility is 99% contained from the facility operation to the truck
washout. The system is fully contained to the maximum requirements.
la Commissioner Conway asked for clarification of truck trips to which Mr. White reviewed
the 160 round trip truck trips explanation. Chair Kirkmeyer requested staff explain the entry
radius requirements for trucking type facilities. Janet Lundquist, Department of Public Works,
clarified that 160 round trip trucks means 320 trips which triggers the need for turn lanes and the
Improvements and Road Maintenance Agreement. Chair Kirkmeyer asked the applicant to
explain what was burning in the lightning strike and Mr. White explained the breakdown of the
process and the trace amounts of chemicals, biosolids, and hydrocarbons in the water and
conveyed in this particular situation the fire reached the oil tanks that held the separated oil and
hydrocarbons and this is what was burning. In response to Chair Kirkmeyer, Mr. White stated
the injected water itself goes well beyond the boundaries of the USR and this is normal practice
based on the permits from the Colorado Oil and Gas Conservation Commission (COGCC) that
NGL is in possession of.
ID Mr. White indicated due to the lightning strike, NGL has lost a portion of another disposal
facility, and would request the ability to take water at the subject facility prior to the entire
surface being completed, therefore, once the permanent off load pad is in place, they are
requesting Board approval to off load water to a temporary dirt berm and plastic lined
containment that contains ten frack tanks then transfer the water to the inejction well for a period
of up to six months, and during that time be able to construct the rest of the facility. In response
to Chair Kirkmeyer, Mr. White reiterated he would like to operate the facility prior to substantial
completion of the permanent facility to include offloading the trucks on the permanent offload
pad and offload that water into a temporary berm and plastic lined containment area that
contains up to ten frack tanks for a period of up to six months. Mr. White also requested to move
Conditions of Approval (COA) #5.A and #5.B to become the new #8.D and #8.E under "Prior to
Operation." Further, Mr. White requested discussion regarding the Waste Handling Plan and
the Groundwater Monitoring Plan as he sees changes in how these are administered and he is
curious why there are differences making it more stringent.
El Chair Kirkmeyer addressed the comments of the applicant with staff. Mr. Ogle clarified that
the time limit would be six months. Ms. Barbare stated there are requirements regarding
submittal of plans and language of the intent regarding the temporary containment.
Commissioner Conway agreed with the applicant's request under the circumstances because
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this applicant has a positive history of accomodating and he would be in support of the new
COA. Commissioner Cozad stated her support for the temporary operation if staff could provide
some language for the Board's review.
el Mr. Ogle offered some language for a new Development Standard (DS) for the Board's
review and read it for the record. Chair Kirkmeyer suggested removing the words, "temporary
facility," and instead to say, "if there is anything temporary in nature, it would have to be
removed" keeping in compliance with the original proposed plan for the Use. Commissioner
Cozad expressed her thoughts regarding where to place this for the record to better
communicate the Board's intent. Chair Kirkmeyer concurred saying it should be a new DS #30,
and it would also be added to the resolution paragraph section, "Now therefore be it resolved,"
with wording provided by Counsel.
Chair Kirkmeyer addressed the comments from the applicant regarding COA #1.D Waste
Handling Plan and #1.E Groundwater Monitoring Plan and asked staff to answer the questions
proposed. Ms. Barbare stated staff did provide comments back to NGL regarding both of these
plans and it appears there were oversights as the requests are for the same items as for other
facilities. Mr. White inquired specifically in regard to the Groundwater Monitoring Plan.
Ms. Barbare clarified that usually a consultant completes the process of information gathering
and submits it to the Department of Public Health and Environment and to be clear staff has not
received these items which could be why Mr. White is seeing these requirements for the first
time and thinking they are different. In response to Commissioner Cozad pointing out the
responsibility is on the applicant and asking if staff reviews these plans and reports,
Ms. Barbare clarified there are employees on staff who can and do review these submittals.
le In response to Commissioner Conway asking what has changed, Chair Kirkmeyer
suggested the Board revisit the possible changes with more discussion in a work session or if
necessary a public hearing. She further suggested a change in wording for both COA #1.D and
#1.E to reflect the submittal of these plans to the relevant Weld County Department for review
and approved by the Board of County Commissioners. The Board agreed with moving the
COAs #5.A and #5.B to become the new #8.D and #8.E under Prior to Operation instead of
Prior to the Release of Building Permits.
e Commissioner Freeman suggested the removal of the third sentence of DS #9.
Commissioner Cozad recommended adding the round trip truck trips limitation to 160, to which
Chair Kirkmeyer suggested language to be created and placement as the new DS #29.
Commissioner Conway asked for clarification regarding the language. Mr. Howard added to the
discussion that the 250 truck trip limitation is in reference to 250 round trips or 500 trips per the
traffic study and upon full buildout the study has addressed the issue of operation over the 24-
hour period. E Commissioner Conway asked for further explanation from Ms. Lundquist, who
explained the possibilities of traffic increase resulting in triggering the turn lanes and the
Improvements Agreement. Chair Kirkmeyer stated it is the applicant's decision to either be
conservative and complete these improvements ahead of time or wait until it is required. She
recommended removing the word "annual"from DS #15, and creating a new DS reflecting the
preservation of the rights and flow of the irrigation ditch which will become the new DS #30,
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• Brad Yatabe, Assistant County Attorney, discussed the intent of the language regarding
the temporary operation of the facility for up to six months prior to the completion of the facility.
Chair Kirkmeyer recommended allowing for staff discretion to create the appropriate language
allowing the temporary operation to occur; and, she summarized all the changes for those
present and for the record. The Board agreed with all the amendments to the Conditions of
Approval and Development Standards.
a In response to Chair Kirkmeyer, Mr. White questioned who will determine whether the
irrigation ditch development standard has been met or unmet. Chair Kirkmeyer responded the
final say is up to the Board. Mr. White stated NGL will meet that new development standard
regarding the irrigation ditch at or above the current condition of the ditch. He further indicated
he has reviewed, and agrees to abide by, the Conditions of Approval and Development
Standards, as amended.
a Chair Kirkmeyer expressed her appreciation for the surrounding property owners who
came to the hearing, and also thanked NGL for trying to work with the neighbors and being
considerate of their concerns for the health, welfare and safety of the neighborhood. She further
clarified that 34 of the 37 Development Standards apply to the health, welfare, and safety of the
public and NGL has to comply with state, federal and county regulations, and because of these
extensive efforts of mitigation, she will be supporting the application.
• Commissioner Conway also thanked Mr. Johnson for bringing to light the truck trip
numbers for reconsideration. He also thanked the applicant for reaching out and addressing the
issues and requested NGL continue to operate under the good neighbor policy.
• Commissioner Cozad also expressed her appreciation for those present and participating
in the process; and, further moved to approve the request of Booth Land and Livestock, LLC,
do NGL Water Solutions DJ, LLC, for a Site Specific Development Plan and Use by Special
Review Permit, USR15-0006, for Mineral Resource Development Facilities, Oil and Gas
Support Facility (Class II Oilfield Waste Disposal Facility — saltwater injection facility, water
recycling, a truck tanker washout facility and a tank storage containment area) in the
A (Agricultural) Zone District, based on the recommendations of Planning staff and the Planning
Commission, with the Conditions of Approval and Development Standards as amended and
entered into the record. The motion was seconded by Commissioner Freeman, and it carried
unanimously. There being no further discussion, the hearing was completed at 12:43 p.m.
*(Clerk's Note: at 1:12 p.m., the notes to follow reference the subsequent hearing with the same
applicant and Chair Kirkmeyer's wishes to reopen this hearing to amend the Resolution by
removing the word temporary as it relates to tank storage; therefore, reflects changes herein.
The audio is not able to be heard; however, can be accessed in relation to USR15-0007.)
*Chair Kirkmeyer requested the Board consider reopening the prior hearing regarding
USR15-0006 to remove the word "temporary" in relation to tank storage per the applicant
request and keeping with the integrity of the intent of the proposal. Commissioner Cozad
moved to reconsider the approval of the Resolution for the Site Specific Development Plan and
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Use by Special Review, USR15-0006, to which Commissioner Freeman seconded, and it
carried unanimously. Further, Chair Kirkmeyer suggested the removal of the word "temporary"
in relation to tank storage. Mr. White agreed and accepted this change. Therefore,
Commissioner Freeman moved to amend the Resolution of USR15-0006, by removing the word
"temporary" in relation to tank storage throughout the document. Commissioner Cozad
seconded the motion and it carried unanimously. Lastly, Commissioner Cozad moved to
approve the amended, amended Resolution as discussed, and it was seconded by
Commissioner Freeman. Chair Kirkmeyer verified the changes for the applicant and the staff.
The motion carried unanimously. There being no further discussion, the second and final
hearing of the day was adjourned at 1:15 p.m.
This Certification was approved on the 27th day of April, 2015.
BOARD OF COUNTY COMMISSIONERS
W D COUNTY, COL ADO
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2015-1069
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