HomeMy WebLinkAbout2.0 BOCC Staff Report 04.13.2009BOCC -4.13.09 DD PROJECT INFORMATION AND STAFF COMMENTS TYPE OF REVIEW: Special Use Permit ("SUP") SUMMARY OF REQUEST: The Applicant requests a SUP for the installation of a demonstration
project water treatment plant that utilizes alternative technology to treat and purify produced water APPLICANT! PROPERTY OWNER: Ailela, Inc. for Laramie Energy II, LLC LOCATION: NW
y., SW Y. of Section 20, Township 6 South, Range 93 West of the 6th PM. (Parcel # 2177-203-01-001, addressed as 2102-321 CR 321) SITE INFORMATION I ACCESS: Less than 1 acre of a 41.926-acre
parcel (Laramie Energy", LLC), County Road 321 EXISTING IADJACENT ZONING: AlR/RD (Agricultural/Residential/Rural Density) I. REQUEST The Applicant proposes an installation of a sma"
demonstration water treatment plant that utilizes patented AltelaRainsm system to treat I purify produced water. ;-1 + -:;r) The system is installed immediately adjacent to the existing
we" pad site used by Laramie Energy II. In February the we" was under a 'fracing' operation, which accounted for the large influx of water trucks arriving I departing from the site.
SUP Laramie Energy II, LLe, Altela Alternative Water Treatment Plant -BOee -4.13.09 PAGE I 2 Ii ~~O-o!>tI {!)20-0W ~)20-IW {~)~I}--l1D '---III. BACKGROUND II. ZONING & ADJACENT USES
The subject property is zoned Agricultural !Residential!Rural Density (ARRD) as are adjacent parcels. The type of use requested falls under the definition of "Site for extraction, processing,
storage of material handling of natural resources" That is contemplated as special use in the Agricultural! Residential! Rural Density zone district. Submitted prior to January 1,2009,
the application was deemed complete and is considered under the Zoning Resolution of 1978, as amended. Staff brought the application to the attention of the BOCC to determine if a referral
to the Planning Commission was necessary. The BOCC did not refer the application to the Planning Commission. The system is installed immediately adjacent to the existing Laramie Energy
well 20-12, just off the well-pad. (This was installed initially without a SUP as it was thought to be on the well pad site itself.) The site was previously owned by an individual who
owned PetroGulf Corporation, and applied for a Special Use Permit for an industrial storage yard in 2007, denied by the BOCC. The property was then sold to Laramie Energy II which placed
a well pad on the parcel, but has not initiated drilling operations until very recently. 'Frac-ing' operations are underway at the time of this writing, which accounts for a recent influx
of trucks moving water onto the site. Altela, Inc. was contracted by Laramie Energy to install a small demonstration unit of
SUP Laramie Energy II, LLe, Altela Alternative Water Treatment Plant -BGee -4.13.09 PAGE I 3 their water treatment process on the site. Placed just off the well pad, the site came under
the scrutiny of Code Enforcement; Altela, Inc. and Laramie Energy II immediately applied for a Special Use Permit to rectify the permit error. The operations on the well pad and Altela's
location have continued in the interim. The well pad is State-permitted under the COGCC and will continue its operation regardless of the outcome of this application, including the hauled
off-site of produced water in tanker trucks. IV. AUTHORITY & APPLICABILITY Pursuant to Section 9.03.04 of the Zoning Resolution, an application for a Special Use Permit shall be approved
or denied by the Board of County Commissioners after holding a public hearing thereon in conformance with all provisions of the Zoning Resolution. There was no referral to Planning Commission
for this application. V. REVIEW CRITERIA FOR SPECIAL USE PERMITS (SECTION 5:03) Pursuant to Section 5.03, as listed under the Zone District Regulations, special uses shall conform to
all requirements listed there under and elsewhere in the Zoning Resolution, as well as the following standards: 1. Utilities adequate to provide water and sanitation service based on
accepted engineering standards and approved by the Board of County Commissioners shall either be in place or shall be constructed in conjunction with the proposed use. Response The demonstration
water treatment plant operates 365 days a year, 24 hours each day as an unmanned facility fully automated with a minimum shutdown time of a few hours. One person visits the site to perform
the task of monitoring the system. An electronic dial-up is available as well as an electronic warning system failsafe. Sanitary facilities on the adjacent well pad site are available
to the individual that visits the site for monitoring. 2. Street improvements adequate to accommodate traffic volume generated by the proposed use and to provide safe, convenient access
to the use shall either be in place or shall be constructed in conjunction with the proposed use. Response The demonstration site is presently set up, so there will be no trip generation
related to installation. Trips are generated from monitoring (1-2 daily by passenger vehicle) and the off loading of produced water. Water quantity treated with this demonstration project
is 300 barrels (12,600 gallons), with 80% of that being converted into re-useable distilled water. The resultant produced water is 60 barrels (2520 gallons) which is removed via tanker
in loads of
SUP Laramie Energy II, LLC, Aftela Alternative Water Treatment Plant -80CC -4.13.09 PAGE I 4 approximately 420 gallons to a disposal facility in Cisco UT. The traffic generated is 6
tanker loads per day onto County Road 321 and 1-70. All of the truck travel will be traveling on County roads and require any involved contractor to have a valid Garfield County oversize/overweight
vehicle permit for any equipment used. (Garfield County Road & Bridge comments speak to the requirements of permits. No improvements to CR 321 were requested in response to this operation.)
3. Design of the proposed use is organized to minimize impact on and from adjacent uses of land through installation of screen fences or landscape materials on the periphery of the lot
and by location of intensively utilized areas, access points, lighting and signs in such a manner as to protect established neighborhood character. Response The property is located in
a rural area with the nearest residence 5 miles away. In response to noise concerns, sound is fully contained inside the containers that house the water treatment. Noise is generated
by the truck traffic associated with this use (6 truck loads weekly) but is transient; the trucks enter, load then travel away from the site. The water treatment structure, which resembles
an industrial shipping container (image below) should not serve to create adverse effects. The equipment on the site is painted with a neutral shade of tan non-reflective paint to minimize
glare and be more visually inconspicuous. The adjacent condensate tanks are painted the green recommended by the BLM for sites with trees. The small spill containment tanks are unpainted
corrugated steel and painting them shall be a condition of approval. The pad will not be fenced except for vehicle gates near the access drives for intermittent use. Its intent is for
use by smaller vehicles.
SUP Laramie Energy II, LLe, Altela Alternative Water Treatment Plant -Boee -4.13.09 PAGE I 5 As there is no open pool of water (pond) involved associated with the operation, the threat
to livestock, wildlife or human beings normally associated with impoundments is not present on this site. The spill containment enclosures are a safety reservoir that would prevent water,
untreated or treated, from spilling on-site. If any uncharacteristic water behavior was taking place, the warning system would alert the monitor and adjacent site operator for immediate
response. The monitor and/or adjacent site operator would respond to prevent damage to Altela's system of equipment contained in the basin, and manage any water before it would breach
the spill containment basin. The condensate is pumped incrementally into the condensate tanks.) The well pad site is visible from CR 321, but has been sited downhill to minimize its
presence. The Altela treatment plan is on lower ground immediately to the east. While no lighting more than the minimum for the water treatment facility is proposed, all lighting shall
be directed inward and downward. No signs are proposed. No screening has been proposed for the site, but could be a condition at the Board's request. Water is available on-site for a
vegetative screen. The nearest residence (to the east) is company-owned. In rural residential zones, the neighborhood character includes agricultural structures, such as barns with gambrel
rooflines. Industrial structures that seek to be compatible with the neighborhood character might consider structural design to mimic a barn; this would reduce the need for screening
the modular units. To mitigate the visual impact of the condensate tanks and the modular unit without adversely affecting the rural character of the neighborhood, a short berm be installed
with a number of browse-resistant trees (such as spruce) be planted atop it. The screen would only be for the water treatment facility and the condensate tanks; the well pad itself is
not the subject of this permit. Section 5.03.07 Yndustrial Operationsl Pursuant to Section 5.03.07 of the Zoning Resolution, a permit for Industrial Operations requires the submittal
of an impact statement on the proposed use describing its location, scope, design, and construction schedule, including an explanation of its operational characteristics. The impact
statement is required to address the following: (AJ Existing lawful use of water through depletion or pollution of surface run-off, stream flow or ground water. Response The facility
site has been designed to insure protection of ground water and nearby streams through the processing to clean the produced water to a level that is permitted (through a
SUP Laramie Energy II, LL(, Altela Alternative Water Treatment Plant -Boee -4.13.09 PAGE I 6 permit with the CDPHE, Water Control Division COG601 008) to place the treated water into
the Colorado River basin. (8) Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare or vibration, or other emanations. Response The alternative water treatment
facility is completely contained inside a structure. There is no smoke, noise or vibration associated with the operations. The structure, while industrial looking, is painted a non-reflective,
neutral desert tan and the condensate tanks are painted non-reflective 'beetle green', a color recommended by the BLM for forested sites. Garfield County Environmental Health Manager
Jim Rada included vapors and dust in his comments: • Very little is said about air emissions from this system. In my discussion with the operator, they readily admit that VOCs and water
vapor are emittedfrom the system. They also indicate that they have tested the produced water to determine VOC and other contaminant content to determine ultimate emission rates. They
indicate that at full site development, their VOC emission rates will be lower than the threshold requirements to file an APEN with CDPHE. None of this information is provided in the
submittal nor is there any indication that this system has been reviewed by CDP HE APCD relative to air emissions. I think it is prudent as this is the first system of its type here
that this information be provided • There is a relatively long, dirt access road to this site. No indications are made as to how Altela or Laramie energy intends to manage this road
to control dust emissions and dragging of mud on to the County Road The un-surfaced access road is traveled by tankers and other vehicles accessing the site, and mud is dragged onto
County Road 321 (that forms additional dust when it dries.) A condition of approval shall be to recommend that the Applicant mitigate fugitive dust and capture the mud with shake screens
before the traffic leaves the site. Staff recommends as a condition of approval that the Applicant provide verification to the GarCo Environmental Health Manager to confirm that the
site is operating with CDPHE standards for VOCs, and other contaminant water vapor. (C) Impacts on wildlife and domestic animals through the creation of hazardous attractions, alteration
of existing native vegetation, blockade of migration routes, use patterns or other disruptions. Response The site is located within overall range land for mule deer, elk and black bear
as identified on the Division of Wildlife's wildlife distribution maps. The site is also identified as winter range for elk and mule deer. The remainder of the well pad site is a former
pasture.
SUP Laramie Energy II, LLC, Altela Alternative Water Treatment Plant -BGCC -4.13.09 PAGE I 7 There were no plant species of concern, nor were there any species federally listed as 'threatened'
or 'endangered'. There were no Federally-listed animal species identified in the project area. The alternative water treatment facility site has been previously disturbed by well pad
activity. There is no human habitation onsite and the limited foodstuffs and refuse accumulated is emptied often enough to prevent the attraction and habituation of black bears and coyotes.
The limited human presence and the fully enclosed facility mitigates noise disturbance that would reduce the adverse effects on elk and deer populations, which are more greatly affected
by the well pad activity next door. Citizen comments include the recommendation for fence enclosure to protect children and livestock. In response, Staff understands that this alternative
water treatment facility's design may not be well understood. Ponds are often associated with water treatment plants, but as this is a thermo-distillation treatment contained inside
a modular unit with piped connections to condensate tanks and has no open pond, Staff feels that there is little reason to required additional fencing. Mesh fence in the height to dissuade
wildlife from crossing over it would be more of an adverse visual effect on the neighborhood character than a simple barbed wire stock fence. It is more likely that errant livestock
would travel up the driveway from CR 321 to the corrugated surrounds, thinking them stock tanks with drinking water. Livestock would be prevented from accessing the site through the
driveways if a suitable shake screen or cattle guard were installed near the CR 321 connection. (D) Affirmatively show the impacts of truck and automobile traffic to and from such uses
and their impacts to areas in the County. Response As noted earlier, the alternative water treatment facility, once fully operational, is expected to generate limited vehicle trips per
day into and out of the facility. There is no proposed increase of occupancy of the site. This existing road meets the County's standards. Vehicles include range 2 trips (1 in, 1 out)
from pickup truck or passenger vehicle, to the water tanker trucks that will haul the remaining produced water offsite (3 in, 3 out). (E) That sufficient distances shall separate such
use from abutting property which might otherwise be damaged by operations of the proposed users). Response The operations at the facility will not involve any abutting property. The
proposed facility will not encroach upon existing setbacks or reduce current separation distances to abutting
SUP Laramie Energy II, LLe, Altela Alternative Water Treatment Plant -Boee -4.13.09 PAGE I 8 properties. Staff agrees that the existing facility is located well within required setbacks
and is sufficiently separated from adjacent properties in all directions. (F) Mitigation measures proposed for all of the foregoing impacts identified and for the standards identified
in Section 5.03.08 of this Resolution Special Use Permits may be granted for those uses with provisions that provide adequate mitigation for the following: (A) A plan for site rehabilitation
must be approved by the County Commissioners before a permit for conditional or special use will be issued; Response A plan for site rehabilitation has been submitted and shall be implemented
for on-going weed abatement and reclamation, should the site be abandoned. It is stated that the site would be returned to rangeland in the event that the site use is ended. Both long-term
and short-term securities are mentioned in the referral comments by Garfield County Vegetation Management and Garfield County Planning Department's Project Engineer, and shall be conditions
of approval. (8) The County Commissioners may require security before a permit for special or conditional use is issued, if required. The applicant shall furnish evidence of a bank commitment
of credit, bond, certified check or other security deemed acceptable by the County Commissioners in the amount calculated by the County Commissioners to secure the execution of the site
rehabilitation plan in workmanlike manner and in accordance with the specifications and construction schedule established or approved by the County Commissioners. Such commitments, bonds
or check shall be payable to and held by the County Commissioners; Response In the past, the Board has required, as a condition of approval that "A sufficient monetary security, determined
by the Board of County Commissioners, to ensure rehabilitation of the site once operation has ceased shall be provided by the Applicant." Both long-term and short-term securities are
mentioned in the referral comments by Garfield County Vegetation Management and Garfield County Planning Department's Project Engineer, and shall be conditions of approval. Section 5.03.08
[Industrial Petformance Standardsl Pursuant to section 5.03.08 of the Zoning Resolution, all Industrial Operations in the County shall comply with applicable County, State, and Federal
regulations regulating water, air and noise pollution and shall not be conducted in a manner constituting a public nuisance or hazard. Operations shall be conducted in such a manner
as to minimize heat, dust, smoke,
SUP Laramie Energy II, LLe, Altela Alternative Water Treatment Plant -BGee -4.13.09 PAGE I 9 vibration, glare and odor and all other undesirable environmental effects beyond the boundaries
of the property in which such uses are located, in accord with the following standards: (1) Volume of sound generated shall comply with the standards set forth in the Colorado Revised
Statutes at the time any new application is made. (2) Vibration generated: every use shall be so operated that the ground vibration inherently and recurrently generated is not perceptible,
without instruments, at any point of any boundary line of the property on which the use is located. (3) Emissions of smoke and particulate matter: every use shall be operated so as to
comply with all Federal, State and County air quality laws, regulations and standards. (4) Emission of heat, glare, radiation and fumes: every use shall be so operated that it does not
emit heat, glare, radiation or fumes which substantially interfere with the existing use of adjoining property or which constitutes a public nuisance or hazard. Flaring of gases, aircraft
warning signals, reflective painting of storage tanks, or other such operations which may be required by law as safety or air pollution control measures shall be exempted from this provision.
(5) Storage area, salvage yard, sanitary landfill and mineral waste disposal areas: (A) Storage of flammable or explosive solids or gases shall be in accordance with accepted standards
and laws and shall comply with the national, state and local fire codes and written recommendations /comments from the appropriate local protection district regarding compliance with
the appropriate codes; (B) At the discretion of the County Commissioners, all outdoor storage facilities may be required to be enclosed by fence, landscaping or wall adequate to conceal
such facilities from adjacent property; (C) No materials or wastes shall be deposited upon a property in such form or manner that they may be transferred off the property by any reasonably
foreseeable natural causes or forces; (D) Storage of Heavy Equipment will only be allowed subject to (A) and (C) above and the following standards: 1. The minimum lot size is five (5)
acres and is not a platted subdivision. 2. The equipment storage area is not placed any closer than 300 ft. from any existing residential dwelling. 3. All equipment storage will be enclosed
in an area with screening at least eight (8) feet in height and obscured from view at the same elevation or lower. Screening may include berming, landscaping, sight obscuring fencing
or a combination of any of these methods.
SUP Laramie Energy II, LLC, Altela Alternative Water Treatment Plant -BOee -4.13.09 PAGE 110 4. Any repair and maintenance activity requiring the use of equipment that will generate
noise, odors or glare beyond the property boundaries will be conducted within a building or outdoors during the hours of 8 a.m. to 6 p.m., Mon.-Fri. 5. Loading and unloading of vehicles
shall be conducted on private property and may not be conducted on any public right-of-way. (E) Any storage area for uses not associated with natural resources shall not exceed ten (10)
acres in size. (F) Any lighting of storage area shall be pointed downward and inward to the property center and shaded to prevent direct reflection on adjacent property. (6) Water pollution:
in a case in which potential hazards exist, it shall be necessary to install safeguards designed to comply with the Regulations of the Environmental Protection Agency before operation
of the facilities may begin. All percolation tests or ground water resource tests as may be required by local or State Health Officers must be met before operation of the facilities
may begin. Staff Response Should the Board approve the request for the alternative water treatment plant, Staff suggests the industrial performance standards be considered conditions
of approval as they are specifically intended to ensure that any industrial use such as the proposed treatment facility function in accordance with the proper best management practices
and within the parameters of the State statutes. • There is no proposed full time lighting and no signs. • There is no vibration or smoke associated with this use. • Glare has been or
can be mitigated by non-reflective paint. • Heat is re-used in process. • Fumes are generally associated with the condensate, which is contained in the closed system, inside the condensate
tanks and hauled offsite in tankers. • Radiation and fumes. The site shall be so operated that it does not radiation or fumes which substantially interfere with the existing use of adjoining
property or which constitutes a public nuisance or hazard. • The requirement for screening might be considered for the water treatment facility. • The site is not proposed to be used
for storage, aside from limited produced water, which shall, as a condition of approval, be properly stored in approved containers inside an adequately sized spill containment basin.
SUP Laramie Energy II, LLe, Aftela Alternative Water Treatment Plant -Boee -4,13,09 PAGE 111 Section 9.03.05 {Periodic Review of SUP, Pursuant to section 9,03,05 of the Zoning Resolution:
Any Special Use Permits may be made subject to a periodic review not less than every six (6) months if required by the County Commissioners. The purpose of such review shall be to determine
compliance or noncompliance with any performance requirements associated with the granting of the Special Use Permit. The County Commissioners shall indicate that such a review is required
and shall establish the time periods at the time of issuance of a Special Use Permit. Such review shall be conducted in such manner and by such persons as the County Commissioners deem
appropriate to make the review effective and meaningful. Upon the completion of each review, the Commissioners may determine that the permit operations are in compliance and continue
the permit, or determine the operations are not in compliance and either suspend the permit or require the permittee to bring the operation into compliance by a certain specified date.
Such periodic review shall be limited to those performance requirements and conditions imposed at the time of the original issuance of the Special Use Permit. Staff does not recommend
periodic review of the site as the conditions will serve as a mechanism for operating within the necessary standards of the permit. VI. REFERRAL AGENCY COMMENTS Staff referred this to
a number of referral agencies for comment: G. Garfield County Planning Department Project Engineer, John Niewoehner PE: Email, 3.30.09 There are no engineering land use issues pertaining
to the proposed AltelaRain water treatment system, No new grading is neededfor the proposed treatment system, Here are some thoughts I had during my review: • Is the treatment unit already
installed and operating? The discharge permit was issued by the State in April 2008, • Does the water treatment system, with its electric boilers, create afire hazard? Probably not any
more than other activities on the site, Besides, all elements are in a spill containment area, • How long will the treatment unit operate? Until the well stops producing gas? • For each
100 gallons of brackish water that enters the system, 80 gallons exits as distilled water and the remaining 20 gallons of brackish concentrate needs to be trucked to a treatment facility,
• It must take a huge amount of energy to distill the water, However, perhaps it takes less energy to distill the water than truck it offsite, John Niewoehner PE Project Engineer
SUP Laramie Energy II, LLC, Altela Alternative Water Treatment plant -BOee -4.13.09 PAGE 112 H. Garfield County Road & Bridge Department, Jake Mall, Administrative Foreman, Letter, 12.31.08
General Comments: Garfield County Road & Bridge Department has no objections to this application with the fOllowing comments. This application is exempt tram the drivewav access standard
as the access to Cr. 320 and the access to Cr. 321 have been permitted. The driveway access tram Cr. 320 is fOr all traffic. the driveway access to Cr. 321 is fOr vehicles tram the Brock
pad using only the agreed to portion orCr. 321 and not the entire length orCr. 321. All vehicles hauling equipment and materials fOr this project shall abide by Garfield County's oversize/overweight
permit system. Any vehicles requiring oversize/overweight permits shall apply fOr them at Garfield County Road & Bridge Department. Garfield County Road & Bridge Department shall have
on file a letter or e-mail tram Laramie 11 stating that these vehicles can apply for oversize/overweight permits under Laramie 11 bond on file with Garfield County. All vehicles hauling
to this location shall abide by Garfield County's haul route system. I. Garfield County Vegetation Management Department, Steve Anthony, Director, Letter 1.19.09 Noxious Weeds The weed
inventory and management plan is acceptable. It would be helpful if the applicant in the future could transpose the site location (which is on a separate map) onto the weed inventory
map. Site Rehabilitation Plan and Revegetation Plan The revegetation plan is acceptable. The applicant has stated that the site is under COGCC jurisdiction. 1 did not see any details
on decommissioning the site. The site is off the well pad and outside of the jurisdiction of the COGCC. Staff recommends a security of $2500 be held to rehabilitate the site if the water
treatment facility is decommissioned. (This is lower than the typical rate as there is little site disturbance and infrastructure to move -other than modular units.) J. Garfield County
Environmental Health Manager, Jim Rada, email 3.13.2009 1 have reviewed the submittal for the above referenced project and made afield visit to the site with a team of Altela representatives.
The AltelaRain'" system offers an interesting option for dealing with produced water at gas well sites and appears to offer some substantial community and environmental benefits. It
appears that Altela, Inc. has addressed many of the concerns or questions 1 had about this application but 1 offer the following comments: • In reviewing the process description, the
applicant mentions the periodic changing of bagfilters. Although the description mentions that this filter is used to remove heavy particles, there is no information anywhere that characterizes
the materials that may accumulate on these filters. It is likely that if the filters are disposable, that they will
SUP Laramie Energy II, LLe, Altela Alternative Water Treatment Plant -BOee -4.13.09 PAGE 113 end up in the landfill. I would like the applicant to provide information to the landfill
operator and me that these filters do not represent a hazardous waste. • Very little is said about air emissions from this system. In my discussion with the operator, they readily admit
that vacs and water vapor are emittedfrom the system. They also indicate that they have tested the produced water to determine vac and other contaminant content to determine ultimate
emission rates. They indicate that at full site development, their vac emission rates will be lower than the threshold requirements to file an APEN with CDPHE. None of this information
is provided in the submittal nor is there any indication that this system has been reviewed by CDPHE APCD relative to air emissions. I think it is prudent as this is the first system
of its type here that this information be provided. • There is a relatively long, dirt access road to this site. No indications are made as to how Altela or Laramie energy intends to
manage this road to control dust emissions and dragging of mud on to the County Road. Thanks for the opportunity to review this application. Ijust got off the phone with Scott Pate field
of the CDPHE APCD. I described the Altela system to him and he seemed a bit concerned that Altela might be misstating the need to file and APEN or obtain an air emission permit. I gave
him Matt Bruff's name and number and he said he wouldfollow-up. I wouldfeel more comfortable with this application is we at least had a letter from the State saying that the system does
not require permits and is below the APEN thresholds. Jim Rada, REHS Environmental Health Manager Garfield County Public Health K. Rifle Fire Protection District, Kevin Whelan, Fire
Marshal, email 2.26.09 I have reviewed SUP 11908 for Laramie Energy II h20 treatment plant located at 2101 C. R. 321 in Rifle Colorado. In addition I have spoken with Matthew Bruff of
Altela, Inc about this project. The fire district has no requirements pertaining to the fire code. I would like to document my understanding of the process for future reference .' 1.
Removing distilled water from "regular" production water will not concentrate the production water contaminants to levels that would be below industry standards 2. Distilled water tanks
will be clearly marked 3. Distilled water tanks will not be interconnected to any well pad tanks 4. The site is limited in the amount of water it can treat for a specific permit area
only and cannot be used to treat water from other permitted well sites. 5. Secondary containment is adequate and designed per industry standard. 6. There is a way to download distilled
water from the distilled water tanks. The fire district would be interested in looking at these connections. 7. The activity has been ongoing since 1 0 /07 per the certification of discharge
If you have any further questions, please let me know! Kevin C. Whelan Division Chief /Fire Marshal Rifle Fire Protection District L. City of Rifle, Matt Sturgeon, Assistant City Manager,
email 3.13.09 Thanks for forwarding referral re Altela Inc water treatment facility. Rifie has no comment
SUP Laramie Energy II, LLC, Altela Alternative Water Treatment Plant -Boee -4.13.09 PAGE I 14 re that matter. Regards, Matt Sturgeon Assistant City Manager City of Rifle No comments
received: • Garfield County Oil & Gas Liaison, • Colorado Division of Wildlife (CDOW). VII. CITIZEN COMMENTS Staff received these comments via mail, email and delivery service. The first
two individuals were offered the opportunity to review the application materials in the Rifle or Glenwood Springs Planning Offices, but declined. (The comments from the third arrived
after the initial hearing.) They are included as exhibits, each associated with a letter. M. Shirley Donaghue, letter dated 2.9.09 N. Gennie Hooker, email dated 2.11.09 O. Kirk & Trina
Swallow, letter dated 2.15.09 These comments were made while fracturing operations were underway at the 20-12 well pad. Some of the comments are related to the well pad operations, which
is permitted by the State of Colorado and not part of this application. A number of the suggestions are part of conditions of approval, including safety plans, neutral paint scheme,
permit parameters, truck traffic reduction. All comments were referred to the Applicant. VIII. RECOMMENDED FINDINGS 1. Proper posting and public notice was provided as required for the
meeting before the Board of County Commissioners. 2. The meeting before the Board of County Commissioners was extensive and complete, that all pertinent facts, matters and issues were
submitted and that all interested parties were heard at that meeting. 3. The above stated and other reasons, the proposed special use permit has been determined to be in the best interest
of the health, safety, morals, convenience, order, prosperity and welfare of the citizens of Garfield County. 4. The application has met the requirements of Special Use (Sections 5:03,5:03:07,5:03.08
and 9:03) the Garfield County Zoning Resolution of 1978, as amended.
SUP Laramie Energy II, LLC, Aftela Alternative Water Treatment Plant -BOCC -4.13.09 PAGE 115 IX. STAFF RECOMMENDATION Due to the following conditions: • the limited nature of potential
impacts to surrounding properties, • the proposed is required to operated within compliance levels for noise and to mitigate glare and other emanations, Staff recommends the Board approve
the request for a Special Use Permit for the Altela, Inc. alternative water treatment plant with the following conditions: 1. That all representations of the Applicant, either within
the application or stated at the hearing before the Board of County Commissioners, shall be considered conditions of approval unless explicitly altered by the Board. 2. That the operation
of the facility be done in accordance with all applicable Federal, State, and local regulations governing the operation of this type of facility. 3. That the Applicant shall comply with
the fire protection provisions included in the rules and regulations of the Colorado Oil and Gas Conservation Commission (COGCC) and the International Fire Code as the Code pertains
to the operation of this facility. 4. Vibration generated: the alternative water treatment facility shall be so operated that the ground vibration inherently and recurrently generated
is not perceptible, without instruments, at any point of any boundary line of the property on which the use is located. 5. Emissions of smoke and particulate matter: the alternative
water treatment facility shall be so operated so as to comply with all Federal, State and County air quality laws, regulations and standards. 6. Emission of heat, glare, radiation and
fumes: the alternative water treatment facility shall be operated so that it does not emit heat, glare, radiation or fumes which substantially interfere with the existing use of adjoining
property or which constitutes a public nuisance or hazard. 7. Volume of sound generated shall comply with the standards set forth in the Colorado Revised Statutes and COGCC Series BOO.
B. No storage on the site is proposed or permitted, nor is human occupation of this site. 9. Any lighting shall be pointed downward and inward to the property center and shaded to prevent
direct reflection on adjacent property. 10. Prior to the issuance of the Special Use Permit, the Applicant will append the general Storm Water Management Plan and Spill Containment &
Counter Measure Plans for this site with site-specific plans. This plan shall include adequate design for the spill containment basin for the tanks that serve both Laramie Energy II
and Altela, Inc.
SUP Laramie Energy II, LLC, Altela Alternative Water Treatment Plant -BOee -4.13.09 PAGE 116 11. Those recommendations by the Rifle Fire Protection District for labeling tanks, operating
the facility within industry standards and limiting the operation on this site to its present level and connections shall be a condition of approval. 12. Prior to the issuance of the
Special Use Permit, the Applicant shall provide written confirmation to the Garfield County Environmental Health Manager from the Colorado Department of Public Health and Environment
(CDPHE) APCD that this system does not exceed air quality emission levels subject to reporting and/or permitting. 13. Prior to issuance of the Special Use Permit, a reclamation security
of $2500 per acre shall be submitted for the under i-acre site disturbance, as per the Garfield County Vegetation Manager. If the use as a alternative water treatment facility is ended,
reclamation shall be initiated within 60 days and meet the requirements set forth in the reclamation plan in place on the date the Special Use Permit issued, or the site reclamation
standards in place at the time of use cessation, whichever is more stringent. The reclamation standards at the date of permit issuance are cited in Section 4.06, 4.07 and 4.08 of the
Garfield County Weed Management Plan (Resolution #2002-94). 14. All securities for revegetation as per the Garfield County Vegetation Management Director shall be required to be in place
prior to the issuance of this permit. 15. Dust mitigation on the sites and access roads shall be performed to prevent fugitive dust and a shake screen or cattle guard shall be placed
on the access road to reduce mud being dragged onto Garfield County roads. 16. All equipment and structures associated with this permit shall be painted with nonreflective paint in neutral
colors (desert tan or beetle green) to reduce glare and make the facility less conspicuous. 17. A safety plan to protect the wellbeing of children, wildlife and errant livestock shall
be developed by the Applicant and submitted to the Garfield County Planning Department prior to the issuance of the Special Use Permit. 18. The Special Use Permit shall be limited to
the specifics presented in the application, including location and processing volume. Amendment to this permit may be considered under a Limited Impact Review Amendment. X. RECOMMENDED
MOTION "I move to approve a Special Use Permit to allow the installation of the Altela, Inc. alternative water treatment facility, with the conditions provided by Staff."
BOCC Exhibits (4/13/09) Spe cial Use Permit-Laramie Energy 11 /Al tela, Inc . Alternative Water Treatment Facility Exhlblf Letter (A to Z) A B C D E F G H I J K L M N 0 p Q R s T Exhibit
, Proof of Mail Receipts Proof of Publication Garfield County Zoning Regulations of 1978, as amended (the Zoning Code) Application Staff Report Staff Powerpoint Letter dated 12.30.08
from GarCo Planning Dept, John Niewoehner, PE, Proiect EnQineer Letter dated 1.6.09 from GarCo Road & Bridge Dept, Jake Mall, Administrative Foreman Letter dated 1.1 9.09 from GarCo
Vegetation Management Department, Steve Anthony, Director Email dated 3. 13.09 from GarCo Environmental Health Manager, Jim Rada Email dated 2.26.09 from Rifle Fire Protection District,
Fire Marshal, Kevin Whelan Email dated 3.13.09 from City of Rifle Assistant City Manager, Matt Sturgeon Leiter dated 2.9.09 forwarded scanned/signed from Shirley Donaghue, 9245 CR 320,
Rifle Email dated 2. 11 .09 from Gennie Hooker, 8902 CR 320, Rifle Letter dated 2.1 6.09 from Kirk & Trina Swallow, 2170 CR 321, Rifle '::-1AA Ii il d ~ (/J"/.3 q 0 q .f:.. ~h/rC"'h
;~ IL l ,6lqo2. C,R 34;; (' /JD.A ~ (d fa C JIi ... ..",r ~.J/,."" :J" 1 f 0/1 (J , A.A -. tr:' I looA ~~)( r01 U [ u:c.-\ I I1YI hi .Lud l-0 f-I '...I }/7 . ,'il pipif1(j ~ p~ -prtJdRw~
~dkJ--WJt fer Ji~lJLJ I iWvlL 10* ~ 80 ~b /~ ~ VYJ{I}(lmU-M 5~ ~c1M~ [lo.~tkwJ , DVhlaCIt:F p" Cc6Cc, '2-0 -I~
Dusty --There are no engineering land use issues pertaining to the proposed AltelaRain water treatment systems. No new grading is needed for the proposed treatment system. Here are some
thoughts I had during my review: • Is the treatment unit already installed and operating? The discharge permit was issued by the State in April 2008. • Does the water treatment system,
with its electric boilers, create a fire hazard? Probably not any more than other activities on the site. Besides, all elements are in a spill containment area. • How long will the treatment
unit operate? Until the well stops producing gas? • For each 100 gallons of brackish water that enters the system, 80 gallons exits as distilled water and the remaining 20 gallons of
brackish concentrate needs to be trucked to a treatment facility. • It must take a huge amount of energy to distill the water. However, perhaps it takes less energy to distill the water
than truck it offsite. John Niewoehner PE Project Engineer
GARFIELD COUNTY Building & Planning Department Review Agency Form Date Sent: December 31, 2008 Comments Due: January 19, 2008 Name of application: Laramie Energy" H20 Treatment Plant
Sent to: ____ _ _ ____________________ _ Garfield County requests your comment in review of this project. Please notify the Planning Department in the event you are unable to respond
by the deadline. This form may be used for your response, or you may attach your own additional sheets as necessary. Written comments may be mailed, e-mailed, or faxed to: Garfield County
Building & Planning Staffs contact: Dusty Dunbar 109 8th Street, Suite 30 I Glenwood Springs, CO 81601 Fax: 970-384-3470 Phone: 970-945-8212 General Comments: Garfield County Road &
Bridge Department has no objections to this application with the following comments. This application is exempt from the driveway access standard as the access to Cr. 320 and the access
to Cr. 321 have been permitted. The driveway access from Cr. 320 is for all traffic. the driveway access to Cr. 321 is for vehicles from the Brock pad using only the agreed to portion
ofCr. 321 and not the entire length ofCr. 321. All vehicles hauling equipment and materials for this project shall abide by Garfield County's oversize/overweight permit system. Any vehicles
requiring oversize/overweight permits shall apply for them at Garfield County Road & Bridge Department. Garfield County Road & Bridge Department shall have on file a letter or e-mail
from Laramie II stating that these vehicles can apply for oversize/overweight permits under Laramie" bond on file with Garfield County. All vehicles hauling to this location shall abide
by Garfield County's haul route system. Name of review agency: Garfield County Road and Bridge Dept By: Jake B. Mall Date January 6. 2009 Revised 3/30/00
EXHIBIT II MEMORANDUM To: Dusty Dunbar From: Steve Anthony Re: Laramie Energy Water Treatment Plant Date: January 19,2009 Thanks for the opportunity to comment on this permit. Noxious
Weeds The weed inventory and management plan is acceptable. It would be helpful if the applicant in the future could transpose the site location (which is on a separate map) onto the
weed inventory map. Site Rehabilitation Plan and Revegetation Plan The revegetation plan is acceptable. The applicant has stated that the site is under COGCC jurisdiction. I did not
see any details on decommissioning the site, do you want to request that they provide information on final site rehabilitation?
Dunbar From: Jim Rada Sent: Friday, March 13, 2009 8:15 AM To: Dusty Dunbar Subject: SUP 11908 -Laramie Energy II Water treatment plant Attachments: Jim Rada Urada@garfield-county.com).vcf;
image001 .gif Dusty, I have reviewed the submittal for the above referenced project and made a field visit to the site with a team of Altela representatives. The AltelaRain'M system
offers an interesting option for dealing with produced water at gas well sites and appears to offer some substantial community and environmental benefits. It appears that Altela, Inc.
has addressed many of the concerns or questions I had about this application but I offer the following comments: 1. In reviewing the process description, the applicant mentions the periodic
changing of bag filters. Although the description mentions that this filter is used to remove heavy particles, there is no information anywhere that characterizes the materials that
may accumulate on these filters. It is likely that if the filters are disposable, that they will end up in the landfill. I would like the applicant to provide information to the landfill
operator and me that these filters do not represent a hazardous waste. 2. Very little is said about air emissions from this system. In my discussion with the operator, they readily admit
that VOCs and water vapor are emitted from the system. They also indicate that they have tested the produced water to determine VOC and other contaminant content to determine ultimate
emission rates. They indicate that at full site development, their VOC emission rates will be lower than the threshold requirements to file an APEN with CDPHE. None of this information
is provided in the submittal nor is there any indication that this system has been reviewed by CDPHE APCD relative to air emissions. I think it is prudent as this is the first system
of its type here that this information be provided. 3. There is a relatively long, dirt access road to this site. No indications are made as to how Altela or Laramie energy intends to
manage this road to control dust emissions and dragging of mud on to the County Road. Thanks for the opportunity to review this application. Jim Kada, KEHS Environmental Health Manager
Garfield County Public Health 195 W 14" Street Rifle, CO 81650 Phone 970-625-5200 x8113 Cell 970-319-1579 Fax 970-625-8304 Email jrada@garfield-county.com Web www.garfield-county.com
1
Dusty Dunbar From: Sent: To: Cc: Subject: Dusty, Kevin Whelan [kewhelan@riflefiredept.org] Thursday, February 26,20093:17 PM Dusty Dunbar matthew.bruff@altelainc.com SUP 11908 Laramie
energy II h20 Treatment Plant EXHIBIT I I have reviewed SUP 11908 for Laramie Energy II h20 treatment plant located at 2101 C. R. 321 in Rifle Colorado. In addition I have spoken with
Matthew Bruff of Altela, Inc about this project. The fire district has no requirements pertaining to the fire code. I would like to document my understanding of the process for future
reference : 1. Removing distilled water from "regular" production water will not concentrate the production water contaminants to levels that would be below industry standards 2. Distilled
water tanks will be clearly marked 3. Distilled water tanks will not be interconnected to any well pad tanks 4. The site is limited in the amount of water it can treat for a specific
permit area only and cannot be used to treat water from other permitted well sites. 5. Secondary containment is adequate and designed per industry standard. 6. There is a way to download
distill water from the distilled water tanks. The fire district would be interested in looking at these connections. 7. The activity has been ongoing since 10 107 per the certification
of discharge If you have any further questions, please let me know! "The Mission of the Rifle Fire Protection District is to Enhance Health and Safety and to Protect the Life, Home,
and Property of the People We Serve. " Kevin C. Whelan Division Chief 1 Fire Marshal Rifle Fire Protection District kewhelan@riflefiredept.org Office-(970) 625-1243 Cell-(970) 618-7388
Fax-(970) 625-2963 1
Dusty Dunbar From: Sent: To: Cc: Subject: Dusty, Matt Sturgeon [msturgeon@rifleco.orgJ Friday, March 13, 2009 9:38 AM Dusty Dunbar Fred Jarman Rifle Referrals EXHIBIT J--=.L._ Thanks
for forwarding referral re Altela Inc water treatment facility. Rifle has no comment re that matter. Please pass on to Scott Hall that we have no comment re Daler/Swanson Subdivision
Exemption. Scott's email was not on referral form. Regards, Matt Sturgeon Assistant City Manager City of Rifle 202 Railroad Ave Rifle CO 81650 msturgeon@rifleco.org 970-625-6224 1
John Me.rtIn, Chairman SHIRLEY DONAGHUE !J24!! County Road 320 Rifle, CO 81650 February 9,2009 Board of County Commissioners ofOarfield 1088111 Street . Olenwood Springs, CO 81601 (4)
RECEIVED FEB I 02009 GARFIELD COUNTY BUILDING & PLANNING RE: A1tela, ln~. I Laramie Energy II, LLC Special Use Pel'lllit ApplieatioD Dear Chalnnan Mattln: My name is Shirley Donaghue.
I IIvc adjacent to thc proposed site fur Altela's water treatment facility. I am concerned about the effect orthe proposed water tn:atment facility on my neiihborhood. As you know, the
property is zoned AgriculturallResldentlal/Rural Density. I purchased my property in 1999 due to the I'UlIII nature of the area. The enclosed pictures demonstrate that the area, exoept
for oil and gas wells over which we have DO control, is completely non-commerclal. Fencing does not provide an appropriate scrcen for this commerciallindustrlal use because Taughenbaugh
Mesa runs on slope from south to north. Also due to the location, I believe the site will be In the view plane for the ~ority of the areas in the City of Rifle. Even assuming that the
facility will be run as "green" as indicated by Altela, this water treatment facility will destroy the beauty orths area as well as my propcrty values. If the Board of County Commissioners
is willing to approve this use, I ask that cerlAln conditions be imposed to reduce the effect of this usc. First, the special use permit should be Ilmlted to the AltelaRain system and
to the size of facility already in place. Second, the special use permit should require that the facility be painted in neutral colors and landscaped to minimize its visual Impact on
me and my neighbors. Third. the special uso pcnnit should require fencins to protect livestock, wildlife, and neighborhood children. Fourth, the special use permit should require routine
checks by Oarfield County to determine that the system is beilli operated saf"ly and the condensate is being treated properly. As you know, the approval of II special use permit is absolutely
discretionary. I ask that the Board of County Commissioners either deny the application or 'condition its approval as set forth above. Sincerely, ~Pffl4~ Shirley Donaghue Enclosures
I,,
Fred Jarman From: Sent: To: Cc: Subject: Gennie Hooker [bobgenh@sopris.net] Wednesday, February 11, 2009 2:09 PM Tresi Houpt; Mike Samson; John Martin; Fred Jarman; Jim Rada njsb99@msn.com;
Judy Meyer EXHIBIT I NW Special Use Permit For The Construction Of A Water Treatment Plant (Schedule hearing 2-17-09) The purpose of this e-mail is to voice our concerns and opposition
over the proposed Water Treatment Plant to be constructed on the Laramie Energy II property located at 2101 CR 320, Rifle Co. -BACKGROUND-In May 2007, the previous property owners, Mr.
Douglas McLeod who at that time owned Petrogulf Corp applied for a Special Use Permit to construct an Industrial Storage facility on subject property. After hearing from residents in
this area and the potential health and other related issues, the county Commissioners denied the request. Since then Petrogulf sold out to Laramie Energy. Laramie has constructed a drilling
pad on this property and has not drilled any wells from this 10cation.(NOTE) Currently this drilling site is being used as a staging area for water trucks and storage facility for Frac
tanks. It is not being used for a drilling pad. In addition Laramie applied for a temporary Special Use Permit to construct an experimental Water Treatment Plant next to the drilling
pad. The County approved the temporary permit. Currently Altela Inc and Laramie Energy have petitioned the county for a Special Use Permit for the permanent construction a Water Treatment
Plant. This hearing is scheduled for February 17th 2009 at 1: 15 p.m. in the Garfield County Plaza Building. IMPACT: A major devaluation of property values (Reference LaPlata County-Net
reduction of 22%). Although Laramie has indicated that this will reduce truck traffic on C.R. 320, it in fact has not since the experimental plant has been completed. If anything, water
truck activity has increased. The trucks coming off the drilling pads are contaminated with a variety of chemicals of which we the public cannot determine due to PROPRIETARY INFORMATION
established by the oil and gas industry. The chemicals are used in drilling, fracing etc. and are extremely dangerous to the public health. These chemicals are not only transported in
the trucks, but on the tires etc. Dripping occurs from the trucks hauling from the drilling sites to this facility. The chemicals from the tires are then transferred to the road and
contaminate the roads and bar ditches. Residents from this area then breathe the dust from these chemicals. Eventually our well water will become contaminated. The chemicals used are
known to be carcinogen. SUMMARY-We recommend all County Commissioners, if they have not already done so; please read the March 13, 2008 Health Consultation document created by the U.S.
Department of Health and Human Services, Agency for Toxic Substances and Disease Registry. In addition the (ATSRD) Agency for Toxic Substances and Disease Registry which was developed
with the cooperation of many Federal, State, and Garfield County officials. Based on the above documents, it is incomprehensible as to how and why projects such as these are approved.
The contamination from chemicals, trucks, dust and most importantly fumes from these facilities cannot be underestimated. Both in our air quality and drinking water. As early as February
11, 2009, I had a conversation with Mr. Ken Leis of Laramie Energy regarding Laramie providing us with a copy of the plans of the proposed facility. Mr. Leis said that I would have to
contact a Mr. Matt Spruss with Altela in Denver. Mr. Leis further indicated that Laramie really didn't have anything to do with the project? Mr. Leis did inform me that as far as Laramie
was concerned the facility did not meet the goal set by Laramie. To me this sounds like the experimental project does not work. As of the time this e-mail wastransmitted. Mr. Spruss
has not returned my telephone call regarding sending us a plan of the Water Treatment Plant.
As you are aware, Taughenbaugh Mesa has been used for years as a residential and farming/ranching area. This area is zoned for Residential/Agriculture. It has been zoned in this manner
for decades. Now, Laramie and Altela ( whom are absentee owners) want to convert a portion for Industrial use and construct a facility which is detrimental to the health of Rifle/Garfield
County Residents. Laramie Energy is an Industrial land owner therefore; not subjected to the day to day issues, activities and health concerns as the local residents are. We are not
against mineral development, but as custodians for the residents of this county, you must protect the health of the residents. This simply is not the location to construct such a facility.
We recommend that Laramie and Altela explore other avenues such as existing industrial sites. We respectfully request our concerns be considered in opposition to this project. Bob and
Genevie Hooker 8902 County Road 320 Rifle, CO 81650 Phone: 970-625-5362 2
Board of County Commissioners Garfield County State of Colorado Dear Commissioners, EXHIBIT 10 This letter is to protest against the issuing of a Special use Permit to Altela, Inc. and
Laramie Energy II, LLC, to build and operate a water treatment plant on the 41.926-acre parcel, 210 I CR 321, Rifle Co. This area is zoned ARRD, the residents don't want a water treatment
plant, it will cause increased truck traffic in a residential/agricultural area, property devaluation, storage tank eyesore, noise pollution not to mention future smell pollution. Laramie
has moved in somewhere around 50 frac tanks to the nearby well pad. Where I assume they have already been hauling load after load of water into them, there has been truck after truck
rolling into that property the last month or so. I question weather this Special Use Permit is already a given they way they are hauling in water. They come in at all hours of the night
and day, you can always see a truck that is traveling on a road it is not supposed to be on, ie 321 road or traveling towards Rifle on 320 road, usually on a weekend or late at night.
How is it that when we normal residential folk build a driveway we have to have a driveway permit and concrete or asphalt the entry, limiting opening size, the entry that Laramie is
using appears to be very large with just gravel, lots of it flowing onto 320 rd., Laramie appears to be using the house on the property for a field office. Does that also need to have
a Special Use Permit? These people abuse the system, as I'm afraid they will do with a water treatment plant. Let them drill their wells and move on, we don't want an ongoing water treatment
plant. It has already changed the wildlife wintering habits, the elk that have been in that field for 30 years have not been there this year. I urge you to deny this request, leave the
country the country, let the drilling companies set up their commercial plants, drilling related yards in the already developed commercial areas, not the old farms, ranches and residential
areas of our community. Sincerely Kirk Swallow 2170 Co. Rd. 321 Rifle, Co. 81650. Trina Swallow 2170 Co. Rd. 321 Rifle, Co. 81650
CONSIDER A REQUEST FOR A SPECIAL USE PERMIT FOR AN ALTERNA TIVE WATER TREATMENT PLANT IN THE ARRD ZONE DISTRICT, SOUTHWEST OF RIFLE ON CR321. APPLICANT IS ALTELA, INC. ON BEHALF OF LARAMIE
ENERGY II, LLC -DUSTY DUNBAR Dusty Dunbar, Don DeFord, Bob with Laramie, Matthew were present. Don reviewed the noticing requirements for the public hearing and advised the Board they
could proceed. Met with folks who had concerns. List of 7 names were added who were not within the 200 feet and they were noticed. Chairman Martin swore in the speakers. Planner Dusty
Dunbar submitted the following exhibits: Exhibit A -Proof of Mail Receipts; Exhibit B -Proof of Publication; Exhibit C -Garfield County Zoning Regulations of 1978 as amended (old code);
Exhibit D -Application; Exhibit E -Staff Report; Exhibit F -Staff Power Point; Exhibit G -GEmail, GARCO Planning Department Project Engineer, John Niewoehner, PE dated 4-01-09; Exhibit
H -Letter, GARCO Road and Bridge Dept., Jake Mall, Administrative Foreman dated 3-9-09; and Exhibit I -Letter, GARCO Vegetation Management Dept., Steve Anthony, Director dated 3-20-09;
Exhibit J -Email GARCO Environmental Health Manager, Jim Rada, dated 3-20-09; and Exhibit K -Email dated 2-26-09 from Rifle Fire Protection District, Fire Marshal, Kevin Whelan; Exhibit
L -Email dated 3-13-09 from the City of Rifle Assistant City Manager, Matt Sturgeon; Exhibit M-Letter dated 2-09-09 forwarded scanned and signed from Shirley Donaghue, 9245 CR 320, Rifle;
Exhibit N -Email dated 2-11-09 from Gennie Hooker, 8902 CR 320, Rifle; and Exhibit 0 -Letter dated 2-16-09 from Kirk and Trina Swallow, 2170 CR 321, Rifle; Exhibit P -Bob and Gennie
Hooker CR 320; and Exhibit Q-Statement of fact on behalf of Laramie Energy LLC. Chairman Martin entered Exhibits A -Q into the record. Dusty stated in her power point that this is a
request to install a small demonstration water treatment plant that utilizes patented plant that utilizes patented AltelaRain system to treat/purify produced water. This is on one acres
of 41 ,926 acre parcel owned by Laramie Energy. BOCC-4.13.09 00 PROJECT INFORMATION AND STAFF COMMENTS TYPE OF REVIEW: SUMMARY OF REQUEST: APPLICANT! Special Use Permit ("SUP") The Applicant
requests a SUP for the installation of a demonstration project water treatment plant that utilizes alternative technology to treat and purify produced water PROPERTY OWNER: Altela, Inc.
for Laramie Energy II, LLC LOCATION: NW y., SW Y. of Section 20, Township 6 South, Range 93 West of the 6th PM. (Parcel # 2177-203-01-001, addressed as 2102-321 CR 321) SITE INFORMATION!
ACCESS: Less than 1 acre of a 41.926-acre parcel (Laramie Energy II, LLC), County Road 321 EXISTING !ADJACENT ZONING: NR/RD (Agricultural/Residential/Rural Density) III. REQUEST The
Applicant proposes an installation of a small demonstration water treatment plant that utilizes patented AltelaRainsm system to treat I purify produced water. =0 --"---'-:~'<:'';-~',
III. BACKGROUND II. ZONING & ADJACENT USES The subject property is zoned Agricultural /Residential/Rural Density (ARRD) as are adjacent parcels. The type of use requested falls under
the definition of "Site for extraction, processing, storage of material handling of natural resources" That is contemplated as special use in the Agricultural/Residential/Rural Density
zone district. Submitted prior to January 1, 2009, the application was deemed complete and is considered under the Zoning Resolution of 1978, as amended. Staff brought the ___ 1: __
.1.: __ .1._ .&.L-. __ .LL __ .I.: ___ £ .1.1..._ n~,..... ..... L_ -1_.&. ___ : __ :.c ___ .t' ____ 1 .1._ LL._ nl ___ : __
their water treatment process on the site. Placed just off the well pad, the site came under the scrutiny of Code Enforcement; Altela, Inc. and Laramie Energy II immediately applied
for a Special Use Permit to rectify the permit error. The operations on the well pad and Altela's location have continued in the interim. The well pad is State-permitted under the COGCC
and will continue its operation regardless of the outcome of this application, including the hauled off-site of produced water in tanker trucks. IV. AUTHORITY & APPLICABILITY Pursuant
to Section 9.03.04 of the Zoning Resolution, an application for a Special Use Permit shall be approved or denied by the Board of County Commissioners after holding a public hearing thereon
in conformance with all provisions of the Zoning Resolution. There was no referral to Planning Commission for this application. V. REVIEW CRITERIA FOR SPECIAL USE PERMITS (SECTION 5:03)
Pursuant to Section 5.03, as listed under the Zone District Regulations, special uses shall conform to all requirements listed there under and elsewhere in the Zoning Resolution, as
well as the following standards: 1. Utilities adequate to provide water and sanitation service based on accepted engineering standards and approved by the Board of County Commissioners
shall either be in place or shall be constructed in conjunction with the proposed use. Response The demonstration water treatment plant operates 365 days a year, 24 hours each day as
an unmanned facility fully automated with a minimum shutdown time of a few hours. One person visits the site to perform the task of monitoring the system. An electronic dial-up is available
as well as an electronic waming system failsafe. Sanitary facilities on the adjacent well pad site are available to the individual that visits the site for monitoring. 2. Street improvements
adequate to accommodate traffic volume generated by the proposed use and to provide safe, convenient access to the use shall either be in place or shall be constructed in conjunction
with the proposed use. Response The demonstration site is presently set up, so there will be no trip generation related to installation. Trips are generated from monitoring (1-2 daily
by passenger vehicle) and the off loading of produced water. Water quantity treated with this demonstration project is 300 barrels (12,600 gallons), with 80% of that being converted
into re-useable distilled water. The resultant produced water is 60 barrels (2520 gallons) which is
removed via tanker in loads of approximately 420 gallons to a disposal facility in Cisco UT. The traffic generated is 6 tanker loads per day onto County Road 321 and 1-70. All of the
truck travel will be traveling on County roads and require any involved contractor to have a valid Garfield County oversize/overweight vehicle permit for any equipment used. (Garfield
County Road & Bridge comments speak to the requirements of permits. No improvements to CR 321 were requested in response to this operation.) 3. Design of the proposed use is organized
to minimize impact on and from adjacent uses of land through installation of screen fences or landscape materials on the periphery of the lot and by location of intensively utilized
areas, access points, lighting and signs in such a manner as to protect established neighborhood character. Response The property is located in a rural area with the nearest residence
5 miles away. In response to noise concerns, sound is fully contained inside the containers that house the water treatment. Noise is generated by the truck traffic associated with this
use (6 truck loads weekly) but is transient; the trucks enter, load then travel away from the site. The water treatment structure, which resembles an industrial shipping container (image
below) should not serve to create adverse effects. The equipment on the site is painted with a neutral shade of tan non-reflective paint to minimize glare and be more visually inconspicuous.
The adjacent condensate tanks are painted the green recommended by the BLM for sites with trees. The small spill containment tanks are unpainted corrugated steel and painting them shall
be a condition of approval. The pad will not be fenced except for vehicle gates near the access drives for intermittent use. Its intent is for use by smaller vehicles.
As there is no open pool of water (pond) involved associated with the operation, the threat to livestock, wildlife or human beings normally associated with impoundments is not present
on this site. The spill containment enclosures are a safety reservoir that would prevent water, untreated or treated, from spilling on-site. If any uncharacteristic water behavior was
taking place, the warning system would alert the monitor and adjacent site operator for immediate response. The monitor and/or adjacent site operator would respond to prevent damage
to Altela's system of equipment contained in the basin, and manage any water before it would breach the spill containment basin. The condensate is pumped incrementally into the condensate
tanks.) The well pad site is visible from CR 321, but has been sited downhill to minimize its presence. The Altela treatment plan is on lower ground immediately to the east. While no
lighting more than the minimum for the compressor control facility is proposed, all lighting shall be directed inward and downward. No signs are proposed. No screening has been proposed
for the site, but could be a condition at the Board's request. Water is available on-site for a vegetative screen. The nearest residence (to the east) is company-owned. In rural residential
zones, the neighborhood character includes agricultural structures, such as barns with gambrel rooflines. Industrial structures that seek to be compatible with the neighborhood character
might consider structural design to mimic a barn; this would reduce the need for screening the modular units. To mitigate the visual impact of the condensate tanks and the modular unit
without adversely affecting the rural character of the neighborhood, a short berm be installed with a number of browse-resistant trees (such as spruce) be planted atop it. The screen
would only be for the water treatment facility and the condensate tanks; the well pad itself is not the subject of this permit. Section 5.03.07 [Industrial Operationsl Pursuant to Section
5.03.07 of the Zoning Resolution, a permit for Industrial Operations requires the submittal of an impact statement on the proposed use describing its location, scope, deSign, and construction
schedule, including an explanation of its operational characteristics. The impact statement is required to address the following: (AJ Existing lawful use of water through depletion or
pollution of surface runoff, stream flow or ground water. Response The facility site has been designed to insure protection of ground water and nearby streams through the processing
to clean the produced water to a level that is permitted (through a permit with the CDPHE, Water Control Division COG601008) to place the treated water into the Colorado River basin.
(B) Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare or vibration, or other emanations. Response The alternative water treatment facility is completely
contained inside a structure. There is no smoke, noise or vibration associated with the operations. The structure, while industrial looking, is painted a non-reflective, neutral desert
tan and the condensate tanks are painted non-reflective 'beetle green', a color recommended by the BLM for forested sites. Garfield County Environmental Health Manager Jim Rada included
vapors and dust in his comments: • Very little is said about air emissions from this system. In my discussion with the operator, they readily admit that VOCs and water vapor are emittedfrom
the system. They also indicate that they have tested the produced water to determine VOC and other contaminant content to determine ultimate emission rates. They indicate that at full
site development, their VOC emission rates will be lower than the threshold requirements to file an APEN with CDP HE. None of this information is provided in the submittal nor is there
any indication that this system has been reviewed by CDPHE APCD relative to air emissions. I think it is prudent as this is the first system of its type here that this information be
provided. • There is a relatively long, dirt access road to this site. No indications are made as to how Altela or Laramie energy intends to manage this road to control dust emissions
and dragging of mud on to the County Road. The un-surfaced access road is traveled by tankers and other vehicles accessing the site, and mud is dragged onto County Road 321 (that forms
additional dust when it dries.) A condition of approval shall be to recommend that the Applicant mitigate fugitive dust and capture the mud with shake screens before the traffic leaves
the site. Staff recommends as a condition of approval that the Applicant provide verification to the GarCo Environmental Health Manager to confirm that the site is operating with CDPHE
standards for VQCs, and other contaminant water vapor. (C) Impacts on wildlife and domestic animals through the creation of hazardous attractions, alteration of existing native vegetation,
blockade of migration routes, use patterns or other disruptions. Response The site is located within overall range land for mule deer, elk and black bear as identified on the Division
of Wildlife's wildlife distribution maps. The site is also identified as winter range for elk and mule deer. The remainder of the well pad site is a former pasture.
There were no plant species of concern, nor were there any species federally listed as 'threatened' or 'endangered'. There were no Federally-listed animal species identified in the project
area. The alternative water treatment facility site has been previously disturbed by well pad activity. There is no human habitation onsite and the limited foodstuffs and refuse accumulated
is emptied often enough to prevent the attraction and habituation of black bears and coyotes. The limited human presence and the fully enclosed facility mitigates noise disturbance that
would reduce the adverse effects on elk and deer populations, which are more greatly affected by the well pad activity next door. Citizen comments include the recommendation for fence
enclosure to protect children and livestock. In response, Staff understands that this alternative water treatment facility's design may not be well understood. Ponds are often associated
with water treatment plants, but as this is a thermo-distillation treatment contained inside a modular unit with piped connections to condensate tanks and has no open pond, Staff feels
that there is little reason to required additional fencing. Mesh fence in the height to dissuade wildlife from crossing over it would be more of an adverse visual effect on the neighborhood
character than a simple barbed wire stock fence. It is more likely that errant livestock would travel up the driveway from CR 321 to the corrugated surrounds, thinking them stock tanks
with drinking water. Livestock would be prevented from accessing the site through the driveways if a suitable shake screen or cattle guard were installed near the CR 321 connection.
(D) Affirmatively show the impacts of truck and automobile traffic to and from such uses and their impacts to areas in the County. Response As noted earlier, the alternative water treatment
facility, once fully operational, is expected to generate limited vehicle trips per day into and out of the facility. There is no proposed increase of occupancy of the site. This existing
road meets the County's standards. Vehicles include range 2 trips (1 in, 1 out) from pickup truck or passenger vehicle, to the water tanker trucks that will haul the remaining produced
water offsite (3 in, 3 out). (E) That sufficient distances shall separate such use from abutting property which might otherwise be damaged by operations of the proposed users). Response
The operations at the facility will not involve any abutting property. The proposed facility will not encroach upon existing setbacks or reduce current separation distances to abutting
properties. Staff agrees that the existing facility is located well within required setbacks and is sufficiently separated from adjacent properties in all directions.
(F) Mitigation measures proposed for all of the foregoing impacts identified and for the standards identified in Section 5.03.08 of this Resolution Special Use Permits may be granted
for those uses with provisions that provide adequate mitigation for the following: (A) A plan for site rehabilitation must be approved by the County Commissioners before a permit for
conditional or special use will be issued; Response A plan for site rehabilitation has been submitted and shall be implemented for on-going weed abatement and reclamation, should the
site be abandoned. It is stated that the site would be returned to rangeland in the event that the site use is ended. Both longterm and short-term securities are mentioned in the referral
comments by Garfield County Vegetation Management and Garfield County Planning Department's Project Engineer, and shall be conditions of approval. (B) The County Commissioners may require
security before a permit for special or conditional use is issued, if required. The applicant shall furnish evidence of a bank commitment of credit, bond, certified check or other security
deemed acceptable by the County Commissioners in the amount calculated by the County Commissioners to secure the execution of the site rehabilitation plan in workmanlike manner and in
accordance with the specifications and construction schedule established or approved by the County Commissioners. Such commitments, bonds or check shall be payable to and held by the
County Commissioners; Response In the past, the Board has required, as a condition of approval that "A sufficient monetary security, determined by the Board of County Commissioners,
to ensure rehabilitation of the site once operation has ceased shall be provided by the Applicant." Both long-term and short-term securities are mentioned in the referral comments by
Garfield County Vegetation Management and Garfield County Planning Department's Project Engineer, and shall be conditions of approval. Section 5.03.08 {Industrial Performance Standardsl
Pursuant to section 5.03.08 of the Zoning Resolution, all Industrial Operations in the County shall comply with applicable County, State, and Federal regulations regulating water, air
and noise pollution and shall not be conducted in a manner constituting a public nuisance or hazard. Operations shall be conducted in such a manner as to minimize heat, dust, smoke,
vibration, glare and odor and all other undesirable
environmental effects beyond the boundaries of the property in which such uses are located, in accord with the following standards: (1) Volume of sound generated shall comply with the
standards set forth in the Colorado Revised Statutes at the time any new application is made. (2) Vibration generated: every use shall be so operated that the ground vibration inherently
and recurrently generated is not perceptible, without instruments, at any point of any boundary line of the property on which the use is located. (3) Emissions of smoke and particulate
matter: every use shall be operated so as to comply with all Federal, State and County air quality laws, regulations and standards. (4) Emission of heat, glare, radiation and fumes:
every use shall be so operated that it does not emit heat, glare, radiation or fumes which substantially interfere with the existing use of adjoining property or which constitutes a
public nuisance or hazard. Flaring of gases, aircraft warning signals, reflective painting of storage tanks, or other such operations which may be required by law as safety or air pollution
control measures shall be exempted from this provision. (5) Storage area, salvage yard, sanitary landfill and mineral waste disposal areas: (A) Storage of flammable or explosive solids
or gases shall be in accordance with accepted standards and laws and shall comply with the national, state and local fire codes and written recommendations /comments from the appropriate
local protection district regarding compliance with the appropriate codes; (8) At the discretion of the County Commissioners, all outdoor storage facilities may be required to be enclosed
by fence, landscaping or wall adequate to conceal such facilities from adjacent property; (C) . No materials orwastes shall be deposited upon a property in such form or manneiiliat they
may be transferred off theproperfyby any reasonably foreseeable natural causes or forces; (D) Storage of Heavy Equipment will only be allowed subject to (A) and (C) above and the following
standards: 1. The minimum lot size is five (5) acres and is not a platted subdivision. 2. The equipment storage area is not placed any closer than 300 ft. from any existing residential
dwelling. 3. All equipment storage will be enclosed in an area with screening at least eight (8) feet in height and obscured from view at the same elevation or lower. Screening may include
berming, landscaping, sight obscuring fencing or a combination of any of these methods. 4. Any repair and maintenance activity requiring the use of equipment that will generate noise,
odors or glare
beyond the property boundaries will be conducted within a building or outdoors during the hours of 8 a.m. to 6 p.m., Mon.-Fri. 5. Loading and unloading of vehicles shall be conducted
on private property and may not be conducted on any public right-of-way. (E) Any storage area for uses not associated with natural resources shall not exceed ten (10) acres in size.
(F) Any lighting of storage area shall be pointed downward and inward to the property center and shaded to prevent direct reflection on adjacent property. (6) Water pollution: in a case
in which potential hazards exist, it shall be necessary to install safeguards designed to comply with the Regulations of the Environmental Protection Agency before operation of the facilities
may begin. All percolation tests or ground water resource tests as may be required by local or State Health Officers must be met before operation of the facilities may begin. Staff Response
Should the Board approve the request for the alternative water treatment plant, Staff suggests the industrial performance standards be considered conditions of approval as they are specifically
intended to ensure that any industrial use such as the proposed treatment facility function in accordance with the proper best management practices and within the parameters of the State
statutes. • There is no proposed full time lighting and no signs. • There is no vibration or smoke associated with this use. • Glare has been or can be mitigated by non-reflective paint.
• Heat is re-used in process. • Fumes are generally associated with the condensate, which is contained in the closed system, inside tnecondens,lfefanksaridhauledoffslte in tankers. -•
Radiation and fumes. The site shall be so operated that it does not radiation or fumes which substantially interfere with the existing use of adjoining property or which constitutes
a public nuisance or hazard. • The requirement for screening might be considered for the water treatment facility. • The site is not proposed to be used for storage, aside from limited
produced water, which shall, as a condition of approval, be properly stored in approved containers inside an adequately sized spill containment basin. Section 9.03.05 [Periodic Review
of SUPl .
Pursuant to section 9.03.05 of the Zoning Resolution: Any Special Use Permits may be made subject to a periodic review not less than every six (6) months if required by the County Commissioners.
The purpose of such review shall be to determine compliance or noncompliance with any performance requirements associated with the granting of the Special Use Permit. The County Commissioners
shall indicate that such a review is required and shall establish the time periods at the time of issuance of a Special Use Permit. Such review shall be conducted in such manner and
by such persons as the County Commissioners deem appropriate to make the review effective and meaningful. Upon the completion of each review, the Commissioners may determine that the
permit operations are in compliance and continue the permit, or determine the operations are not in compliance and either suspend the permit or require the permittee to bring the operation
into compliance by a certain specified date. Such periodic review shall be limited to those performance requirements and conditions imposed at the time of the original issuance of the
Special Use Permit. Staff does not recommend periodic review of the site as the conditions will serve as a mechanism for operating within the necessary standards of the permit. VI. REFERRAL
AGENCY COMMENTS Staff referred this to a number of referral agencies for comment: G. Garfield County Planning Department Project Engineer, John Niewoehner PE: Email, 3.30.09 There are
no engineering land use issues pertaining to the proposed AltelaRain water treatment system. No new grading is needed for the proposed treatment system. Here are some thoughts I had
during my review: • Is the treatment unit already installed and operating? The discharge permit was issued by the State in April 2008. • Does the water treatment system, with its electric
boilers, create a fire hazard? Probably not any more than other activities on the site. Besides, all elements are in a spill containment area. • How long will the treatment unit operate?
Until the well stops producing gas? • For each 100 gallons of brackish water that enters the system, 80 gallons exits as distilled water and the remaining 20 gallons of brackish concentrate
needs to be trucked to a treatment facility. • It must take a huge amount of energy to distill the water. However, perhaps it takes less energy to distill the water than truck it ojJsite.
John Niewoehner PE Project Engineer H. Garfield County Road & Bridge Department, Jake Mall, Administrative Foreman, Letter, 12.31.08
General Comments: Garfield County Road & Bridge Department has no objections to this application with the tollowing comments. This application is exempt trom the driveway access standard
as the access to Cr. 320 and the access to Cr. 321 have been permitted The driveway access trom Cr. 320 is tor all traffic. the driveway access to Cr. 321 is tor vehicles trom the Brock
pad using only the agreed to portion orCr. 321 and not the entire length orCr. 321. All vehicles hauling equipment and materials tor this project shall abide by Garfield County's oversize/overweight
permit system. Any vehicles requiring oversize/overweight permits shall apply tor them at Garfield County Road & Bridge Department. Garfield County Road & Bridge Department shall have
on file a letter or e-mail trom Laramie II stating that these vehicles can apply tor oversize/overweight permits under Laramie II bond on file with Garfield County. All vehicles hauling
to this location shall abide by Garfield County's haul route system. I. Garfield County Vegetation Management Department, Steve Anthony, Director, Letter 1.19.09 Noxious Weeds The weed
inventory and management plan is acceptable. It would be helpful if the applicant in the future could transpose the site location (which is on a separate map) onto the weed inventory
map. Site Rehabilitation Plan and Revegetation Plan The revegetation plan is acceptable. The applicant has stated that the site is under COGCC jurisdiction. I did not see any details
on decommissioning the site. The site is off the well pad and outside of the jurisdiction of the COGCC. Staff recommends a security of $2500 be held to rehabilitate the site if the water
treatment facility is decommissioned. (This is lower than the typical rate as there is little site disturbance and infrastructure to move -other than modular units.) J. Garfield County
Environmental Health Manager,Jim Rada, email 3.13.2009 I have reviewed the submittal for the above referenced project and made afield visit to the site with a team of Altela representatives.
The AltelaRain'" system offers an interesting option for dealing with produced water at gas well sites and appears to offer some substantial community and environmental benefits. It
appears that Altela, Inc. has addressed many of the concerns or questions I had about this application but I offer the following comments: • In reviewing the process description, the
applicant mentions the periodic changing of bag filters. Although the description mentions that this filter is used to remove heavy particles, there is no information anywhere that characterizes
the materials that may accumulate on these filters. It is likely that if the filters are disposable, that they will end up in the landfill. I would like the applicant to provide information
to the landfill operator and me that these filters do not represent a hazardous waste. • Very little is said about air emissions from this system. In my discussion with the operator,
they readily admit that VOCs and water vapor are emittedfrom the
system. They also indicate that they have tested the produced water to determine VOC and other contaminant content to determine ultimate emission rates. They indicate that at full site
development, their VOC emission rates will be lower than the threshold requirements to file an AP EN with CDP HE. None of this information is provided in the submittal nor is there any
indication that this system has been reviewed by CDP HE APCD relative to air emissions. I think it is prudent as this is the first system of its type here that this information be provided
• There is a relatively long, dirt access road to this site. No indications are made as to how Altela or Laramie energy intends to manage this road to control dust emissions and dragging
of mud on to the County Road Thanks for the opportunity to review this application. Ijust got off the phone with Scott Pate field of the CDPHE APCD. I described the Altela system to
him and he seemed a bit concerned that Altela might be misstating the need to file and A PEN or obtain an air emission permit. I gave him Matt Bruff's name and number and he said he
would follow-up. I would feel more comfortable with this application is we at least had a letter from the State saying that the system does not require permits and is below the AP EN
thresholds. Jim Rada, REHS Environmental Health Manager Garfield County Public Health K. Rifle Fire Protection District, Kevin Whelan, Fire Marshal, email 2.26.09 I have reviewed SUP
11908 for Laramie Energy 11 h20 treatment plant located at 2101 C. R. 321 in Rifle Colorado. In addition I have spoken with Matthew Bruff of Altela, Inc about this project. The fire
district has no requirements pertaining to the fire code. I would like to document my understanding of the process for future reference: 1. Removing distilled water from "regular" production
water will not concentrate the production water contaminants to levels that would be below industry standards 2. Distilled water tanks will be clearly marked 3. Distilled water tanks
willn()tbe interconnected)oany well P.Pcc11al1ks_ 4. The site is limited in the amount of water it can treat for a specific permit area only and cannot be used to treat water from other
permitted well sites. 5. Secondary containment is adequate and designed per industry standard 6. There is a way to download distilled water from the distilled water tanks. The fire district
would be interested in looking at these connections. 7. The activity has been ongoing since 10/07 per the certification of discharge If you have any further questions, please let me
know! Kevin C. Whelan Division Chief /Fire Marshal Rifle Fire Protection District L. City of Rifle, Matt Sturgeon, Assistant City Manager, email 3.13.09 Thanks for forwarding referral
re Altela Inc water treatment facility. Rifle has no comment re that matter. Regards, Matt Sturgeon Assistant City Manager City of Rifle No comments received: • Garfield County Oil &
Gas Liaison,
• Colorado Division of Wildlife (CDOW). VII. CITIZEN COMMENTS Staff received these comments via mail, email and delivery service. The first two individuals were offered the opportunity
to review the application materials in the Rifle or Glenwood Springs Planning Offices, but declined. (The comments from the third arrived after the initial hearing.) They are included
as exhibits, each associated with a letter. M. Shirley Donaghue, letter dated 2.9.09 N. Gennie Hooker, email dated 2.11.09 O. Kirk & Trina Swallow, letter dated 2.15.09 These comments
were made while fracturing operations were underway at the 20-12 well pad. Some of the comments are related to the well pad operations, which is permitted by the State of Colorado and
not part of this application. A number of the suggestions are part of conditions of approval, including safety plans, neutral paint scheme, permit parameters, truck traffic reduction.
All comments were referred to the Applicant. VIII. RECOMMENDED FINDINGS 13. Proper posting and public notice was provided as required for the meeting before the Board of County Commissioners.
14. The meeting before the Board of County Commissioners was extensive and complete, that all pertinent facts, matters and issues were submitted and that all interested parties were
heard at that meeting. 15. The above stated and other reasons, the proposed special use permit has been determined to be in the best interest of the health, safety, morals, convenience,
order, prosperity and welfare of the citizens of Garfield County. 16. The application has met the requirements of Special Use (Sections 5:03, 5:03:07, 5:03.08 and 9:03) the Garfield
County Zoning Resolution of 1978, as amended. IX. STAFF RECOMMENDATION Due to the following conditions: • the limited nature of potential impacts to surrounding properties, • the proposed
is required to operated within compliance levels for noise and to mitigate glare and other emanations,
Staff recommends the Board approve the request for a Special Use Permit for the Altela, Inc. alternative water treatment plant with the following conditions: 10. That all representations
of the Applicant, either within the application or stated at the hearing before the Board of County Commissioners, shall be considered conditions of approval unless explicitly altered
by the Board. 11. That the operation of the facility be done in accordance with all applicable Federal, State, and local regulations governing the operation of this type of facility.
12. That the Applicant shall comply with the fire protection provisions included in the rules and regulations of the Colorado Oil and Gas Conservation Commission (COGCC) and the International
Fire Code as the Code pertains to the operation of this facility. 4. Vibration generated: the alternative water treatment facility shall be so operated that the ground vibration inherently
and recurrently generated is not perceptible, without instruments, at any point of any boundary line of the property on which the use is located. 5. Emissions of smoke and particulate
matter: the alternative water treatment facility shall be so operated so as to comply with all Federal, State and County air quality laws, regulations and standards. 6. Emission of heat,
glare, radiation and fumes: the alternative water treatment facility shall be so operated that it does not emit heat, glare, radiation or fumes which substantially interfere with the
existing use of adjoining property or which constitutes a public nuisance or hazard. 7. Volume of sound generated shall comply with the standards set forth in the Colorado RevisedStatutes
and COGCC Series BOO. B. No storage on the site is proposed or permitted, nor is human occupation of this site. 9. Any lighting shall be pointed downward and inward to the property center
and shaded to prevent direct reflection on adjacent property. 10. Prior to the issuance of the Special Use Permit, the Applicant will append the general Storm Water Management Plan and
Spill Containment & Counter Measure Plans for this site with site-specific plans. This plan shall include adequate design for the spill containment basin for the tanks that serve both
Laramie Energy" and Altela, Inc. 11. Those recommendations by the Rifle Fire Protection District for labeling tanks, operating the facility within industry standards and limiting the
operation on this site to its present level and connections shall be a condition of approval.
12. Prior to the issuance of the Special Use Permit, the Applicant shall provide written confirmation to the Garfield County Environmental Health Manager from the Colorado Department
of Public Health and Environment (CDPHE) APCD that this system does not exceed air quality emission levels subject to reporting and/or permitting. 13. Prior to issuance of the Special
Use Permit, a reclamation security of $2500 per acre shall be submitted for the under 1-acre site disturbance, as per the Garfield County Vegetation Manager. If the use as a alternative
water treatment facility is ended, reclamation shall be initiated within 60 days and meet the requirements set forth in the reclamation plan in place on the date the Special Use Permit
issued, or the site reclamation standards in place at the time of use cessation, whichever is more stringent. The reclamation standards at the date of permit issuance are cited in Section
4.06, 4.07 and 4.08 of the Garfield County Weed Management Plan (Resolution #2002-94). 14. All securities for revegetation as per the Garfield County Vegetation Management Director shall
be required to be in place prior to the issuance of this permit. 15. Dust mitigation on the sites and access roads shall be performed to prevent fugitive dust and a shake screen or cattle
guard shall be placed on the access road to reduce mud being dragged onto Garfield County roads. 16. All equipment and structures associated with this permit shall be painted with non-reflective
paint in neutral colors (desert tan or beetle green) to reduce glare and make the facility less conspicuous. 17. A safety plan to protect the wellbeing of children, wildlife and errant
livestock shall be developed by the Applicant and submitted to the Garfield County Planning Department prior to the issuance of the Special Use Permit. . 18. The Special Use Permit shall
be limited to the specifics presented in the application, including location and processing volume. Amendment to this permit may be considered under a Limited Impact Review Amendment.
X. RECOMMENDED MOTION "I move to approve a Special Use Permit to allow the installation of the Altela, Inc. alternative water treatment facility, with the conditions provided by Staff."
Staff recommendation: Conditions 1 -18
Staff recommends approval of this Special Use Pennit for an alternative water treatment plant in the ARRD Zone District, southwest of Rifle on CR321. Applicant is Altela, Inc. on behalf
of Laramie Energy II, LLC with the 18 conditions are recommended. Dusty -no drilling activity. Nothing left on this pad. Houpt -How many active pads. Applicant -none -not ready to drill
at this time. The water plant serves many pads in the area. Two frac tanks and they will be removed 4-14-09. Shirley Donahoe -wants added 4 conditions. Dusty the ones we can respond
to Exhibit M =-3'd paragraph. The ones we can respond to have been incorporated in the conditions. Colors, landsacaping -defer to the Board as to whether it needs to be landscaped -SUP
shold b elimieted to this facility and the size. Lower level at lower thant he original intent. Permitting language and EPA would allow. Permit as per the application. 3 & 4 -fencing
to protect children. Livestock -there's a fence around the perimeter of the area and included the cattle guard to try and prevent that. The DOW because there's nothing else fenxwe, is
free to move unfettered. Neighborhood children -the well pad site is staffed on an ongoing basis whtne these operations are in working. The container is closed. This is a rural area
and the fencing area would be more industrial looking and would have to be mitigated Dusty -the operation doesn't have anything in them the fail safe alarm and the response from the
applicant to deal with this. Larimare Samson -Exhibit N -very last two paragraph. Dusty addressed this concern on sheet 1. Sayaing that Mr. Leice did not inform me that this ...... experimental
project, Mr. Groth has not returned the call. Mr. Lice. Mr. Leice -Gave to the Hookers the Athena-Applicant -sent letter and all informaitono he requrested. When we came here we included
him in more correspondence. Applicant: 5 minute video to explain what Athelna does. Short excerpt from Discovery Channel-Athelna -explains -"make it rain" Clean drinking water. N avado
-millions of gallons of oil and gas extraction -water purified. AltenaRain a treatment system to purify the dirty water. Termo evaporation. Mother nature puts this back in for the form
of rain. Altena Rain form a purified drinking water. Questions on this clip -Other slides. Were shown by the applicant: Altela, Inc. treating water naturally. Power Point was shown -Senate
Bill 1116 -Senator Salazar -before Interior Secretary. EPA had done a clean water Altena has COGCC Rule 907 re-use of water www.Altelanic.com treating water naturally. Piceance Basin
The amount of water treated is 65 barrels of water per day. How many evaporation ponds will be on site. Condensate tanks -20 12 pads and the 5 tanks This is not an industrial complex
that is treating 20,000 barrels per day. Right now there are only two there. Houpt -how many trucks per day. Applicant _ one truck per day over CR 320 -Houpt -if approved -what potential
-
Applicant full pennit -4 tanks 300 barrels and 6 trucks coming in. We can't make it go away. Produced water has to be treated. Difference is the clean water -value proposition is reduce
the trucking trhough Rifle by 4/5ths. Houpt -if this application is approved how many turcks of non treated water could be trucked in on a daily basis. 80 barrels -4 loads per day and
1/3 trucked out I 113 -5 1/3 truck runs -6 trucks. Neighbor may have seen trucks -frac tanks -no water being hauled. Fisco, Utah. Reduce the volume 04-53-59 listen West of Rifle Village
South Creek from Beaver Creek Land application -proved that this was non-tributary groundwater the oil and gas industry. Purified and reused. This is a wet water right that can be put
back into the Colorado River and put to beneficial use. Houpt -on the waste product -is that kept in a tank -5 tanks in the drawing -salty water in the tanks, hydrom condensates. One
for distilled water and Additional wels nearby pick up used water. Houpt -what happens if a group of kids get courious. Applicant -boxes closed and locked. Other than that there are
tanks and values you can open and close and a generator. Could tum the generator on and off -not much risk as on a well pad. Well pads in the neighborhood -mitigtation plan -if a child
wanted to walk up to a well pad a child could walk up to that too. One more concern -ideal of putting in a cattle guard at this site. Jake mall didn't ask for it. Wells and plants -drilled
some wells and put in an apron and expand CR 320 -mud and gravel back -to put a cattle guard. Hose on the comer -having those trucks go across the cattle guard would be more noise. Testimony
Name testimony. He is right next to this plant. 600 feet from the comer. Have talked with Laramie about traffic and dust -Elk and deer natural route -subdisivion lot 2 and they are lot
3 -Josh Goschick Lot I -Like they want to go green; problem well pad abondaned -last pad wasn't developing will leave the well pad -holding the water to the distilled. Went to his comer
-12 big bay windows. Main concern is the truck traffic -why not on 1-70 -have 3 childlren -can fix it with elk and deer. Location of it -laramire owns the property -their traffic is
not 6 trucks a day -numerous bobtails and long transkers 4 -6 at a time. Around the clock 24 hours a day. Sits 50 feet off the fence line. Didn't kow this road was put in until he saw
the sign -they bought Petrogulfthat bought iffrom Dave Leo. Irrigation water underground. Only has 5 acres. We get all the traffic 24 hours a day. 3 story house and we can see all of
it. Rus Marsh -live Y. mile away -question why are they so insistent and why not move it when they ddrill wells. 20-12 well pad is a red-heering -Johnson pad less than a couple hundred
yards they just built. Why not put in on the well pad simplier and cheaper. Petro gulf to have a pipeyard on that property. They want to use this property for an industrial.. Tom Vondette
-road for lease -adjoin and close -run cattle on it. Truck drivers bad about not locking gates. Applicant keeps discharged about Johnson property above 321. These people are saying -livestock
-natural feed and what kind of chemicals pick up from livestock -odors.
Taking limits -knowledge on limits -pounds per months -release it whenever. 6 homes fumes off it -what's new cancer rate -we don't know. Why in the middle of a residential area. Jim
Golden -suggest to move around -0648 Village 357 A -concems with this -talked with Matthew 2-17 -09 very impressed with his process. Leaps and bounds this process represents a green
way of handling things. Not impressed -did by-product is a little of benzene -below the standard of emissions. Benzene -data sheet on it. Run into in my household is we have reached
our maximum risk and has cancer in his house and doesn't need more. In this close proximity-100 of homes at bottom of Taughenbaugh -it stinks. My point is less than the EPA but doesn't
mean it is harmless. Tons of Benzene -in the air -little poison. Also make no mistake this was built as an alternative water treatement plant. What it is industrial waste water treatment
plant. Covered under prioririty information as to what chemicals are in there. It is not an inurt plant, not harmless = like to hear solutions offered. Solution -move this operation
to more acceptable location and not have to -county landfill. Has some employees to the same thing. One big difference they have insurance. Don't want any more benezene exposure. Inexpensive
but not for him or his neighbors. Photos taken this morning. Take objections to the location -closest 3102 permit was posted on CR 320 and I believe it meets all the intentions it meets.
Matthew 4-12-08. He over noticed and sent him a notice. Do not like benezene and not necessary. As County Commisisoners great frustrations -=hands tied -this your hands are not tied
and you do have the ability to deny -steam coming out of the units. Had been running for 6 -8 months. John Neal-CR 321 -south east -across from the street. Another road into the Jvhnson
Road property. Comes up high road and comes over the platform where they are going to drill. Have to open up the gates. Can see everything from his house. Road well traveled. Concerned
about lighting and have seen industrial parks blind you on 1-70. Cattle issue -run cattle onjohnson's cattle issue there. Pit sitting there and noto using it but pits were to be lined
and a white substance on the side of the pit I flooding on the road -two years ago. Rain situation for 24 hours, flood and ran over cr 321. Concern -this road will run directly into
this area. Trucking -because we were asked by Laramie for property -what kind of pipe. Visited New Mexico -hope it is not steel and pumps back flows and no more than 80 pounds. Nothing
heard about the piping coming in. Kurt Swallow -to the east of this plant. Vapors -have one system that doesn't meet bad air -how much benzene -don't know if the smell is being tested.
Q -is this for Laramire or commercial basised. 50 frac tanks -gues that weveral well tanks were from EnCana and Williams. Can't belive they will subdivide this property and then make
an industrial site. Close water wells -injuct the water to the wells -kills the fish. Wildlife -= 20 years. Shut blinds and seen going down the roads they are not supposed to go down.
Unlike the realm people affected 3 days -mesa -property tax reduction. Bob Hooker -82 02 Cr 320 -up hill from this location and visible -Samson -clarify -on 2-11 email and canceled and
4-9 email. Before -staff report these pictures do not do this propject justice at all. Staff report is inaccurate and deceivinf. Live y., mile from the closest well pad and after the
well pad -jim rada suma canister and took air samples y., mile away -Columbia anthelitical benzene levels 50 times thatn greater lab reporting and doesn't tolene ethel benzene and those
exceed those levels. Hjighley toxic Altena and Laramire through untested water lines. When water lines installed on our property -transporting clean water -not pipes cemented togheter
and pressure tested only carry water and now we know what is planned and we don't want these chemicals by utilizing these peoples. If these chemicals get into our water wells. We can
test our water wells but when chemicals are found -it's too late. Emails tells everyone we
want to be a good neighbor -this is not. Last -reports and statements by Althea can be twisted to their benefit. Kids tell parents what they want to hear. As a permanent resident -oppos
100% this project. Craig Brunner -resident Yo mile west of this facility. S\1 sl article 3 zoning use janu 1 -rural defines. Protect the area and property residents are being lowered.
2nd issue is Q -Altenainformed with Ken Lay to transport water-Pipine in place not enough to get it all down to the site. The plan was set up as a temporary to test the new technology
and hook up piples and they are flex pipes and high pressure pipes and would have to add more to it to get all the water. Question -any design in volved by engineering. He is an engineer
and has done pipeing before. 600 psi -flex pipe with fiber inside. Concerns about how the pipe was installed, plans to have it pressure tested and made available to us before -big disaster
if it leaks. Attest to heavy truck traffic between midnight and works to unload at WalMark -sees trucks coming in late at night. Serious reservations -great idea super idea but this
is not the place to do it. Nate Lullellun -first testiomony -house is only Terry Broughton -two piples in there -irrigation pipe and a production pipe -have to haul it around -last year
had a problem -spring went through the draw-Applicant: will take care of the fence Nate Lullellun. Fence -don't remember a conversation-New pads -wells produce water for 25 years -no
wells on this pad-Bring the produced pipes of other wells -pipes to run the tanks. Not as simple as putting pipes in the ground =-teting -we're trucking -stay -then we would look at
putting in pipes and testing. Vondette -thins in the past -Petro gulf days -not lost a truck since we took this over. Discharge point -next to a culvert -distilled water -state requires
us to tum in the tests. Too clean -for fish to live = then into the culvert and into the river. Water goes through the plant -sits in the tank -should stay in the bottom -pure that Lights
make usre none off location -have no pits -all pits are cuttings pit -no fluid and white stain calciUm in the gound. Not a commercial site. Nobody's water but Laramie. Last thing -comments
about heavy truck traffic -drilled a paid on Cr 320 Jake mall bring all trucks past eh rad through Johnson property. A lot ofturck but was required. We're not drilling there any time
soon -frac tanks -should never have been there -gone now. Matthew -long day -key -2-17 initial hearing -drilling of that well-trucks needed to do that. 100 barrels per day. Accused of
24 hours turcks a day. Water has to be treated. Issue with state oila dn gas and mineral interest and fee interest. Benezene -if we take altena out there will still -below the state
benzene lower levesl and give to RADA. 30,000 feet not industrial nature. Could have put on the pad and treated this, need backing of Garfield County with other sites and wonderful-how
to produce the water. Better way to address this. Houpt -never head this was a great opportunity. Have sited this facility in an area not being drilled, homes close by -what about a
commercial area or industrial area more remote. Talk to companies along 1-70 and everying has come to a skretching haul-no credit -all projects -we would have to find a location and
then get the water there -does it make sense to
build a fairly expensive plant. Why is it there -gried to use gravity one other feasible location and Johnson property. Dusty -some discussion back and foth about permit conditions.
As far as the photos -I took those pictures .. Commissioner Houpt made a motion to close the public hearing. Commissioner -Second. In favor: Houpt -aye Samson -aye Martin -aye Commissioner
made a motion to deny this SUP for SPECIAL USE PERMIT FOR AN ALTERNATIVE WATER TREATMENT PLANT IN THE ARRD ZONE DISTRICT, SOUTHWEST OF RIFLE ON CR321. APPLICANT IS ALTELA, INC. ON BEHALF
OF LARAMIE ENERGY II, LLC. Not to discourage this technology and applaud you for bringing this in. concern about disruptive of the character of the neighborhood. We deal daily -rual
residential areas and not make decisions to protect the character of this -like the technology. Good technology in a difficult not compatiel with OCommissioner Samson -Second. Then echo
everyting that Commissioner Houpt said -times good points on both sides. Like you to go away there is not a permantnt no within our county. Sore spot in the wrong spot and wrong time.
In running for county Commissioners not happy with Laramie and had a lot of drilling in south rifle and you have backed off on. To both of you of all the compaies here most professional.
Discussion has been pleasant -you have tried to do the best you can in a tough situation. Don'e give up come back with a better location. Martin -location more impactive -have to truck
out the water for some 20 years. They are not going to go away -visiblilty-Samson -have the technology and it is working and we have asked for the industry and use the frac water and
use if for the benefit of Colorado. Salazar has moved it forward -this morning do the same exact thing. We were all smiles -its in the worng location. Why should we have to relocate
it it is agoing to be there and the trucks are not going away and this ting benezene is not going away. Going to see a negative impact. Houpt -one is that weh Sup comes in it isn't in
place. Remove the question from this discussion. We need to make a decision of it's already there and it's a well site may never be drilled. Greated impact in a certain location. All
truck gravitate to the location. Martin -you're going to see a great impact of truck traffic than you have now. The answer you are seeking is acceptance fot his process. IF we vote it
down impacts greater -ini the short and long run -a disservice. In favor: Houpt -aye Samson -aye Opposed: Martin -aye They can reapply. Investment -we could be on the forefront of saving
water.