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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 en'B-; 2015-1069 PL2334 HEARING CERTIFICATION - BOOTH LAND AND LIVESTOCK, LLC, C/O NGL WATER SOLUTIONS DJ, LLC (USR15-0006) PAGE 2 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 2015-1069 PL2334 HEARING CERTIFICATION - BOOTH LAND AND LIVESTOCK, LLC, C/O NGL WATER SOLUTIONS DJ, LLC (USR15-0006) PAGE 3 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. 2015-1069 PL2334 HEARING CERTIFICATION - BOOTH LAND AND LIVESTOCK, LLC, C/O NGL WATER SOLUTIONS DJ, LLC (USR15-0006) PAGE 4 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 2015-1069 PL2334 HEARING CERTIFICATION - BOOTH LAND AND LIVESTOCK, LLC, C/O NGL WATER SOLUTIONS DJ, LLC (USR15-0006) PAGE 5 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, 2015-1069 PL2334 HEARING CERTIFICATION - BOOTH LAND AND LIVESTOCK, LLC, 0/O NGL WATER SOLUTIONS DJ, LLC (USR15-0006) PAGE 6 • 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 2015-1069 PL2334 HEARING CERTIFICATION - BOOTH LAND AND LIVESTOCK, LLC, CIO NGL WATER SOLUTIONS DJ, LLC (USR15-0006) PAGE 7 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 ATTESTW:docti Jas. L LeLUI arbara Kirkmeyer, hair Weld County Clerk to the Board M �� U lac_I'L�o k Mike Freeman, Pro-Tem i r , to th Bo- Sean P. Co ay /arc) ' + ' ►� . e A. Cozad EXCUSED Steve Moreno 2015-1069 PL2334 Y \ 4 s \ \ y � y : _9 | 1 \ c J / % \ a y } } : , § { » / \ / / \ \ } ® % f i , » % ( / ) , , \ , / ) q L. O. \ \ \ \ \ \ \ 4 : d ,p ,, 1 \ / rn 2 \ \ / \ \ 3 \ \ < , / « C j - } L. [ \ \ \ \ ) 3 ! w ` p 4 » \ • ® / \ 2I } \ w ' 6 / J I— al e \ ) . } y .1R w / . % y r:..., \ % G 2 � / \ \ \ �. ) \ » \ ---...1 \ 9 \ 2 \ \ \ r / / ' � C m ! \ a x) 0 z / / 3 » & C % / / \ » ( \ >- 03 \ / J. § � ` % s : • ' I— \ e z � « E 7 \ . E / / / @ 2 s tu J & , , — y 2 2 \ \ % f - § \ � \ ( \I— « z p,, •y, S ; \ / Hello