No preview available
HomeMy WebLinkAbout2.0 PC Staff Report and Exhibits 03.12.2014Planning Commission Exhibits – TXTP 7733 LETTER EXHIBIT A Public notice documents B Garfield County Land Use and Development Code C Garfield County Comprehensive Plan 2030, as amended D Application E Staff Report dated February 12, 2014 F Letter from Phil Vaughan Construction Management Inc, dated October 2, 2013 G Letter from Western Slope Colorado Oil and Gas Association, dated February 7, 2014 H Letter from Western Slope Colorado Oil and Gas Association, date February 26, 2014 I Staff Report date March 12, 2014 J Staff Presentation dated March 12, 2014 DateAd ID 9632082 Time10/14/2013 2:11 PM Ad shown is not actual print size 1 | Page PROJECT INFORMATION AND STAFF ANALYSIS TYPE OF REVIEW: Text Amendment Article 15, Oil and Gas Drilling and Production Definition APPLICANT: Board of County Commissioners DATE: February 12, 2014 I. PROPOSAL DESCRIPTION The Board of County Commissioners (“Board”) has requested an amendment to the Land Use and Development Code, as amended for Article 15 in regard to the Oil and Gas Drilling and Production Definition. At the July 15, 2013 adoption of the revised land use code, Phil Vaughan of Phil Vaughn Construction Management, Inc, requested that the Board change the definition of Oil and Gas Drilling and Production as follows: In July of 2013, a request was made to Garfield County to modify the County’s Oil and Gas Drilling and Production definition, a use that is a by-right use in the County. The BOCC decided to adopt the balance of the code changes, but directed staff to initiate an additional text amendment process to address the Oil and Gas Drilling and Production proposed definitional change. The initial requires from Vaughn was to modify the definition as follows: Oil and Gas Drilling and Production. Any operation on a COGCC-approved well location utilizing equipment that advances a borehole into substrata for the purpose of discovery, development, and/or production of oil or gas, including all surface facilities associated with such operations. These facilities include produced water pits or tanks condensate tanks, storage, separation, treating, dehydration, power supply, pumping, metering, monitoring, flowline and other equipment directly associated with oil and gas wells. II. BACKGROUND At the December 11, 2013, Planning Commission meeting, sufficient public notice was established and staff requested a continuance due to a need to work with Industry representatives on the refinement of the definition. Since then, County staff has worked with Phil Vaughan, as well as representatives from Oxy, to both understand the need for the definitional change as well as to construct an amendment that is reflective of the objectives of those requesting the change. Based on that work, Vaughn and Oxy have proposed a revised draft of the definition, as proposed below. The proposed changes also impact the verbiage associated with Water Impoundments, therefore additional redlines have also been proposed to this definition. Staff has also solicited input from other Industry representatives in correspondence sent on January 13th. As of the time of that this staff report was written, staff has received several inquiries about the proposed changes, but no additional information or comments have been received. 2 | Page Oil and Gas Drilling and Production. Any operation on a COGCC-approved well location utilizing equipment that advances a borehole into substrata for the purpose of discovery, development, and/or production of oil or gas, including all surface facilities associated with such operations. These facilities include produced water pits or tanks and condensate tanks with a total tank volume of 5,000 barrels or fewer, storage, separation, treating, dehydration, power supply, pumping, metering, monitoring, flowline and other equipment directly associated with oil and gas wells. These facilities exclude all uses that are otherwise specifically defined by this Code. Water Impoundment. Confined water such as surface pits or ponds, wastewater treatment settling ponds, surface mining ponds, detention and retention ponds, artificial lakes and ponds (not related to agriculture), and produced water and condensate tanks. Water impoundment excludes tanks with a total tank volume of 5,000 barrels or fewer on a well pad used exclusively for activities associated with Oil and Gas Drilling and Production and Injection Wells. III. STAFF ANALYSIS –CRITERIA FOR A TEXT AMENDMENT Section 4-114 outlines the procedures and criteria for consideration of a Land Use Code Text Amendment request to the ULUR. The criteria for approval of a Land Use Code Text Amendment are as follows: 1. The proposed text amendment is in compliance with any applicable Intergovernmental Agreements. There are no intergovernmental agreements impacted by the proposed text amendment. 2. The proposed text amendment does not conflict with State Law. The Colorado Revised Statute Title 30, Article 28, Section 133, as amended, provides for the approval of subdivision plans and plats, and the adoption of regulations governing such plans and plats by the Board of County Commissioners for the unincorporated areas of Garfield County, Colorado. This proposed text amendment is in compliance with this statutory provision. Figure 1: 4,000 Barrels Figure 2: 5,000 Barrels 3 | Page In addition to the formal criteria for reviewing a text amendment, it is important to consider what may result from the definitional change in the way of land use patterns and development. In brief, the modification to the definition would expand the ability of Industry to construct “consolidated and/or centralized” facilities off a well pad (so long as they relate to the advancement of the borehole) and that those uses would be uses by-right. If changed as proposed, the limitation to the facility (both on and off the pad) would be limited to 5,000 barrels. These barrels often hold produced water or condensate and may previously have been consider Tanks or Water Impoundments and review as such. Figure 3: 6,000 Barrels V. PLANNING COMMISSION RECOMMENDATION The Planning Commission should review the application, conduct a public hearing, and motion to recommend approval, approval with modifications, denial, or continuance of this text amendment. If the recommendation is to approve, the Planning Commission must make a finding of compliance with the criteria for a text amendment Section 4-114 (C)(1) and (2). Page 1 of 2 October 2, 2013 Ms. Tamra Allen Planning Manager Garfield County Community Development Department 108 8th Street, Suite 401 Glenwood Springs, CO 81601 Sent via email: tallen@garfield-county.com Dear Ms. Allen, Please find below comments and questions regarding the text amendments to the Garfield County Land Use and Development Code (LUDC) posted on the Garfield County website noted as “Exhibit E” for the October 9, 2013 Garfield County Planning Commission hearing. I will be in attendance for the 10/9/13 hearing as well. Article 4: Application and Review Procedures Article 4- Page 4-26. Section 4-203.B.3.b. Amended language is being proposed stating “A list of mineral estate owners in the subject parcel, their name, and the mailing address for each owner or lessee.” I would recommend that the minerals ownership be provided for the portion of the project where the proposed use will be conducted. This is especially important on large parcels where the development is to occur on 25 acres of a 600 acre parcel. Article 14: Areas and Activities of State Interest Page 14-20. Section 14-404. Proposed language has been included for “Additional submittal requirements applicable to municipal and industrial water projects”. In 2012 and 2013 I made an inquiry to Garfield County if this language for “industrial water projects” under the 1041 powers includes facilities such as centralized exploration and production waste facilities operated by oil and gas companies. Garfield County indicated that this type of E&P waste facility does not fit in the 1041 regulatory realm, but is defined as a “Water Impoundment”. I would request clarification of this issue again by Garfield County within the LUDC so that this issue is clear. Page 2 of 2 Article 15- Definitions I had recommended at the 7/15/13 Garfield County Board of Commissioners hearing that the following Colorado Oil and Gas Conservation Commission definition of “oil and gas location” be added to article 15 for further clarification. The term “oil and gas location” is noted within the proposed definition of “Oil and Gas Drilling and Production”. “Oil and Gas Location shall mean a definable area where an operator has disturbed or intends to disturb the land surface in order to locate an oil and gas facility.” If you have questions or comments, please do not hesitate to call our office at (970) 625-5350. Sincerely, Phil Vaughan Construction Management, Inc. Philip B. Vaughan President February 7, 2014 Garfield County Planning Commission C/O Garfield County Planning Department RE: Delivered Electronically Dear Planning Commissioners: Members of the West Slope Colorado Oil & Gas Association appreciate the time, energy and efforts you invest in our community through service on the Garfield County Planning Commission. We understand the Planning Manager and natural gas industry and other stakeholders have discussed amending Article 15 of the Land Use and Development Code. This proposed amendment is in relation definitions for oil and gas drilling and production operations. We applaud your continual efforts to ensure Garfield County’s code is a current and effective regulatory document. On behalf of the natural gas exploration and production companies in Garfield County we request the Planning Commission provide a 30-day continuance in consideration of the proposed amendment. This additional time will allow stakeholders to develop a proposed amendment that strengthens the code and creates a workable language for all relevant parties. Thanks for your consideration. Sincerely, David Ludlam Executive Director West Slope Colorado Oil & Gas Association CC: Garfield County Board of Commissioners Garfield County Community Development Department PO Box 89 Grand Junction, CO 81502 Phone 970 433 2178 info@WSCOGA.org WWW.WSCOGA.ORG February 26, 2014 Garfield County Planning Commission C/O Garfield County Planning Department RE: Delivered Electronically As you know the natural gas industry in Western Colorado is often referred to by the homogenous term “the industry.” Despite perceptions member companies are incredibly diverse and have very different operational models and practices. For this reason we greatly appreciate your willingness to defer last month’s consideration of amendments to the drilling and production definitions. Please accept this letter as our collective support for the proposed language that incorporates the 5,000 barrel limit on Oil and Gas Drilling and Production locations and excludes tanks with a total volume of 5,000 barrels from the definition of Water Impoundment. Thank you for your continued patience that allowed an extended review of the language and its implications for our operations. Thanks for your consideration. Sincerely, David Ludlam Executive Director West Slope Colorado Oil & Gas Association CC: Garfield County Board of Commissioners Garfield County Community Development Department PO Box 89 Grand Junction, CO 81502 Phone 970 433 2178 info@WSCOGA.org WWW.WSCOGA.ORG 1 | Page PROJECT INFORMATION AND STAFF ANALYSIS TYPE OF REVIEW: Text Amendment Article 15, Oil and Gas Drilling and Production Definition APPLICANT: Board of County Commissioners DATE: March 12, 2014 I. PROPOSAL DESCRIPTION The Board of County Commissioners (“Board”) has requested an amendment to the Land Use and Development Code, as amended for Article 15 in regard to the Oil and Gas Drilling and Production Definition. At the July 15, 2013 adoption of the revised land use code, Phil Vaughan of Phil Vaughn Construction Management, Inc, requested that the Board change the definition of Oil and Gas Drilling and Production as follows: In July of 2013, a request was made to Garfield County to modify the County’s Oil and Gas Drilling and Production definition, a use that is a by-right use in the County. The BOCC decided to adopt the balance of the code changes, but directed staff to initiate an additional text amendment process to address the Oil and Gas Drilling and Production proposed definitional change. The initial requires from Vaughn was to modify the definition as follows: Oil and Gas Drilling and Production. Any operation on a COGCC-approved well location utilizing equipment that advances a borehole into substrata for the purpose of discovery, development, and/or production of oil or gas, including all surface facilities associated with such operations. These facilities include produced water pits or tanks condensate tanks, storage, separation, treating, dehydration, power supply, pumping, metering, monitoring, flowline and other equipment directly associated with oil and gas wells. II. BACKGROUND At the December 11, 2013, Planning Commission meeting, sufficient public notice was established and staff requested a continuance due to a need to work with Industry representatives on the refinement of the definition. In December, County staff worked with Phil Vaughan, as well as representatives from Oxy, to both understand the need for the definitional change as well as to construct an amendment that is reflective of the objectives of those requesting the change. Based on that work, Vaughn and Oxy have proposed a revised draft of the definition, as proposed below. The proposed changes also impact the verbiage associated with Water Impoundments, therefore additional redlines have also been proposed to this definition. Staff has also solicited input from other Industry representatives in correspondence sent on January 13th. A request was received prior the scheduled hearing on February 12th to continue the text amendment for 30 days. The Planning Commission approved a motion to continue the hearing to March 12th. On February 26th, staff received a letter from Western Slope Colorado Oil and Gas Association that there was collective support for the definition, as proposed by Oxy and their representative, as follows: 2 | Page Oil and Gas Drilling and Production. Any operation on a COGCC-approved well location utilizing equipment that advances a borehole into substrata for the purpose of discovery, development, and/or production of oil or gas, including all surface facilities associated with such operations. These facilities include produced water pits or tanks and condensate tanks with a total tank volume of 5,000 barrels or fewer, storage, separation, treating, dehydration, power supply, pumping, metering, monitoring, flowline and other equipment directly associated with oil and gas wells. These facilities exclude all uses that are otherwise specifically defined by this Code. Water Impoundment. Confined water such as surface pits or ponds, wastewater treatment settling ponds, surface mining ponds, detention and retention ponds, artificial lakes and ponds (not related to agriculture), and produced water and condensate tanks. Water impoundment excludes tanks with a total tank volume of 5,000 barrels or fewer on a well pad used exclusively for activities associated with Oil and Gas Drilling and Production and Injection Wells. III. STAFF ANALYSIS –CRITERIA FOR A TEXT AMENDMENT Section 4-114 outlines the procedures and criteria for consideration of a Land Use Code Text Amendment request to the Land Use and Development Code. The criteria for approval of a Land Use Code Text Amendment are as follows: 1. The proposed text amendment is in compliance with any applicable Intergovernmental Agreements. There are no intergovernmental agreements impacted by the proposed text amendment. 2. The proposed text amendment does not conflict with State Law. The Colorado Revised Statute Title 30, Article 28, Section 133, as amended, provides for the approval of subdivision plans and plats, and the adoption of regulations governing such plans and plats by the Board of County Commissioners for the unincorporated areas of Garfield County, Colorado. This proposed text amendment is in compliance with this statutory provision. Figure 1: 4,000 Barrels Figure 2: 5,000 Barrels 3 | Page In addition to the formal criteria for reviewing a text amendment, it is important to consider what may result from the definitional change in the way of land use patterns and development. In brief, the modification to the definition would expand the ability of Industry to construct “consolidated and/or centralized” facilities off a well pad (so long as they relate to the advancement of the borehole) and that those uses would be uses by-right. This would be significant departure from how the County has historically reviewed these types of facilities. The County has historically reviewed any kind of “centralized” facility on or off the well pad. If changed as proposed, the limitation to the facility (both on and off the pad) would be limited to 5,000 barrels. These barrels often hold produced water or condensate and may previously have been consider Tanks or Water Impoundments and review as such. Figure 3: 6,000 Barrels V. PLANNING COMMISSION RECOMMENDATION AND FINDINGS The Planning Commission should review the application, conduct a public hearing, and motion to recommend approval, approval with modifications, denial, or continuance of this text amendment. If the recommendation is to approve, the Planning Commission must make a finding of compliance with the criteria for a text amendment Section 4-114 (C)(1) and (2). Oil and Gas Drilling and Production Definition Article 15 - Text Amendment March 12, 2014 Planning Commission Previous Definition (prior to 7/15) Current Definition Proposed Definition •Oil and Gas Drilling and Production. Any operation on a COGCC-approved well location utilizing equipment that advances a borehole into substrata for the purpose of discovery, development, and/or production of oil or gas, including all surface facilities associated with such operations. These facilities include produced water pits or tanks and condensate tanks with a total tank volume of 5,000 barrels or fewer, storage, separation, treating, dehydration, power supply, pumping, metering, monitoring, flowline and other equipment directly associated with oil and gas wells. These facilities exclude all uses that are otherwise specifically defined by this Code. Proposed Definition •Water Impoundment. Confined water such as surface pits or ponds, wastewater treatment settling ponds, surface mining ponds, detention and retention ponds, artificial lakes and ponds (not related to agriculture), and produced water and condensate tanks. Water impoundment excludes tanks with a total tank volume of 5,000 barrels or fewer on a well pad used exclusively for activities associated with Oil and Gas Drilling and Production and Injection Wells. Historical Review On Pad Approved Location (Off Pad/Centralized) Hydraulic Fracturing Remote Surface Facility By-Right Permit Required All other uses (including “centralized” uses Surface facilities for supporting oil and gas drilling and production By-Right Issues? •COGCC Approved Well vs. Location? –Location examples: •Tank farm •Produced water management tanks •Cuttings disposal •Production pit •Remote frac pad •Compressor pad Issues? •Uses that may become by-right? (“not otherwise specifically defined by the Code”) –Other typical activities on well pad that could be “centralized” but not subject to a barrel size restriction: –Drill cuttings/treatment (storage/processing) –Staging Areas –Produced or freshwater ponds –Amine treatment facility –Water treatment facility –Gas treatment facilities (dehydration, removal of Co2, water and liquefiable hydrocarbons) Centralized Off Pad Facilities •Condensate tanks •Separators •Dehydration Units Issues? •Governor’s on Size? –Tankage? –Square footage? –Other? 4,000 Barrels 5,000 Barrels 6,000 barrels Semcrude 10 – 400 barrel tanks (condensate) SUP in 2007 Other Uses? •Example: Soil Treatment •For example, a company could propose a “land farm” to treat and reuse soils that had been contaminated with petroleum hydrocarbons in the natural gas development process. The proposal may include hauling contaminated soil to a specific property (Material Handling), storing it on-site (Storage) then using the property as a centralized treatment facility for impacted soils from the energy company’s well sites and other exploration and production (E&P) facilities. Other Uses? •Example: Drill Cuttings •With the more common use of closed-loop drilling systems, many companies are utilizing centralized facilities for the management of drill cuttings. These facilities are considered as “Storage” by the County and, if any treatment is associated with the facility, “Processing” may also be applicable. Drill cutting treatment on an approved APD does not require a County land use permit. Other Uses? •Example: Gas Processing/Treatment Facilities •Where an operator proposes to construct a natural gas processing or treatment facility intended to treat and transport natural gas, it is defined as “Material Handling and Processing.” these facilities typically include 1) a Master Control Center that houses process control equipment that also provides limited storage for instruments and tools; 2) insulated buildings constructed to house the compressors and generators for the project; and 3) a variety of gas treatment facilities that are intended to condition the gas prior to sending it to market. Treatment includes dehydration, removal of CO2, water, and liquefiable hydrocarbons. Other Uses? •Example: Produced water •As natural gas drilling generates large amounts of water from the drilling, completion and production processes as a by-product some operators have preferred to transport this water to storage ponds either for treatment and discharge, for reuse in drilling and completion processes or for disposal in a disposal well or other permitted methods. Additionally, operators will construct fresh water storage ponds for use in their drilling operations. The County defines these facilities as “Water Impoundments.” Typically, these are large centralized facilities that serve many well drilling or completion operations. Water Treatment Fresh Water Storage Summary •Significant departure from past policy –On pad vs. off pad or Centralized •May be other uses (besides tanks) that become by-right uses – unless specifically defined •Size and scale of other uses should be considered Section 4-114 •Provide recommendation to BOCC about legislative policy (approve, approve with modifications, deny) •Review Criteria –1. The proposed text amendment is in compliance with any applicable Intergovernmental Agreements. –2. The proposed text amendment does not conflict with State Law.