HomeMy WebLinkAbout3.0 BOCC Staff Report and Exhibits 05.12.2014Board of County Commissioners – May 12, 2014
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 Letter from Phil Vaughan Construction Management Inc, dated October 2, 2013
F Letter from Western Slope Colorado Oil and Gas Association, dated February 7,
2014
G Letter from Western Slope Colorado Oil and Gas Association, date February 26,
2014
H Planning Commission Staff Report dated March 12, 2014
I Planning Commission Staff Presentation dated March 12, 2014
J Email from Phil Vaughan dated April 24, 2014
Ad Name: 10027762A
Customer: Garfield County Building
Your account number is: 1008693
PROOF OF PUBLICATION
THE RIFLE CITIZEN TELEGRAM
STATE OF COLORADO,
COUNTY OF GARFIELD
I, Jim Morgan, do solemnly swear that I am General
Manager of The Rifle Citizen Telegram, that the same
weekly newspaper printed, in whole or in part and
published in the County of Garfield, State of Colorado,
and has a general circulation therein; that said newspaper
has been published continuously and uninterruptedly in
said County of Garfield for a period of more than fifty-
two consecutive weeks next prior to the first publication
of the annexed legal notice or advertisement; that said
newspaper has been admitted to the United States
mails as a periodical under the provisions of the Act of
March 3, 1879, or any amendments thereof, and that
said newspaper is a weekly newspaper duly qualified
for publishing legal notices and advertisements within
the meaning of the laws of the State of Colorado.
That the annexed legal notice or advertisement was
published in the regular and entire issue of every number
of said weekly newspaper for the period of 1
consecutive insertions; and that the first publication
of said notice was in the issue of said newspaper dated
3/20/2014 and that the last publication of said notice
was dated 3/20/2014 the issue of said newspaper.
In witness whereof, I have here unto set my hand this
03/24/2014.
___________________________
Jim Morgan, General Manager
Publisher Subscribed and sworn to before me, a
notary public in and for the County of Garfield, State
of Colorado this 03/24/2014.
________________________________
Pamela J. Schultz, Notary Public
My Commission expires:
November 1, 2015
16#-*$/05*$&
5BLF/PUJDFUIBUUIF#PBSEPG$PVOUZ$PNNJTTJPOFSTIBTSFRVFTUFEUPBNFOE"SUJDMFJOSFHBSEUPUIFEFGJOJUJPOPG0JMBOE(BT%SJMMJOHBOE1SPEVDUJPOBOE8BUFS*NQPVOENFOU
"MMQFSTPOTBGGFDUFECZUIFQSPQPTFEUFYUBNFOENFOUBSFJOWJUFEUPBQQFBSBOETUBUFUIFJSWJFXT
QSPUFTUTPSTVQQPSU*GZPVDBOOPUBQQFBSQFSTPOBMMZBUTVDIIFBSJOH
UIFOZPVBSFVSHFEUPTUBUFZPVSWJFXTCZMFUUFS
BTUIF#PBSEPG$PVOUZ$PNNJTTJPOFSTXJMMHJWFDPOTJEFSBUJPOUPBMMDPNNFOUTSFDFJWFE
JOEFDJEJOHXIFUIFSUPBQQSPWF
NPEJGZPSEFOZUIFUFYUBNFOENFOUTBOEDPSSFDUJPOTBOENBLFUIFSFRVFTUFEEFTJHOBUJPOT5IFBQQMJDBUJPONBZCFSFWJFXFEBUUIFPGGJDFPGUIF1MBOOJOH%FQBSUNFOUMPDBUFEBUUI4USFFU
UI'MPPS
(BSGJFME$PVOUZ"ENJOJTUSBUJPO#VJMEJOH
(MFOXPPE4QSJOHT
$PMPSBEPCFUXFFOUIFIPVSTPGBNBOEQN
.POEBZUISPVHI'SJEBZ
"QVCMJDIFBSJOHPOUIJTSFRVFTUIBTCFFOTDIFEVMFEGPSUIFUIEBZPG.BZBUQNJOUIF$PVOUZ$PNNJTTJPOFST.FFUJOH3PPN
(BSGJFME$PVOUZ"ENJOJTUSBUJPO#VJMEJOH
UI4USFFU
(MFOXPPE4QSJOHT
$PMPSBEP
1VCMJTIFEJOUIF$JUJ[FO5FMFHSBN.BSDI
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
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.
Previous Definition (prior to 7/15)
Issues?
•Well vs. Location?
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)
SemCrude 2007
10 – 400 barrel tanks (condensate)
WPX centralized facilities
•Condensate tanks
•Separators
•Dehydration Units
Issues?
•Governor’s on Size?
–Other size issues
beside tank size?
4,000 Barrels
5,000 Barrels
6,000 barrels
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.
Section 4-114
•Criteria for Approval.
–1. The proposed text amendment is in
compliance with any applicable
Intergovernmental Agreements.
–2. The proposed text amendment does not
conflict with State Law.
1
Tamra Allen
From:Phil Vaughan [phil@pvcmi.com]
Sent:Thursday, April 24, 2014 1:49 PM
To:Tamra Allen; Fred Jarman; 'Moss, Brad'; 'Bittner, Tyler'; 'Ashlee Fechino'
Cc:Kirby Wynn; Philip Vaughan
Subject:RE: Meeting on O&G Definition
Tamra,
I hope that you are doing well today.
I have conferred with WPX Energy and I received a voice mail from Fred Jarman last Friday as well.
We concur with the recommendation that the County Commissioners refer the definition back to the Planning
Commission for review.
We can schedule a meeting date between WPX Energy and you, Fred and Kirby as the group’s schedule allows.
Thank you and please contact me with questions.
Sincerely,
Phil Vaughan
Phil Vaughan Construction Management, Inc.
1038 County Road 323
Rifle, CO 81650
970‐625‐5350
From: Tamra Allen [mailto:tallen@garfield-county.com]
Sent: Thursday, April 24, 2014 8:54 AM
To: Phil Vaughan; Fred Jarman; 'Moss, Brad'; 'Bittner, Tyler'; Ashlee Fechino
Cc: Kirby Wynn
Subject: RE: Meeting on O&G Definition
Phil – Have you been able to receive feedback yet on the approach you all would like to take in regard to the oil and gas
drilling and production definition? Please let me know how you would like to proceed, at your earliest convenience.
Thank you,
Tamra Allen, Planning Manager
Garfield County Community Development Department
tallen@garfield-county.com
970-945-8212 (office)
970-945-1377 x1630 (direct)
From: Phil Vaughan [mailto:phil@pvcmi.com]
Sent: Wednesday, April 16, 2014 10:31 AM
To: Fred Jarman; 'Moss, Brad'; 'Bittner, Tyler'; Ashlee Fechino