HomeMy WebLinkAbout2.0 Staff Report 03.26.08PC 03t26t2008 FJ
PROJECT INFORMATION AND STAFF COMMENTS
REQUEST
APPLICANT/OWNERS
REPRESENTATIVE
Amend the text of County Zoning Resolution of 1978,
as amended, to include "Storage, Processing and
Material Handling" as a Conditional Use in the
Resource Lands - Plateau Zone District
Marathon Oil Company
Amy Stoodt (Marathon Oil Company)
I. BACKGROUND
As natural gas drilling generates large amounts of water from the drilling process as a by-
product (also defined by the COGCC as E & P Waste), some operators have preferred to
transport this water to storage ponds either for evaporation, treatment and discharge, or for
reuse in the fraccing process. Additionally, there may be a desire to create storage ponds to
hold fresh water used in the fraccing process.
The County defines these facilities generally as "storage and Material Handling of Natural
Resources." ln the case where there is a processing element such as removing hydrocarbons
to clean the water, it would be defined as "Storage, Processing, and Material Handling of
Natural Resources." Examples of these facilities approved by the County are shown below:
Marathon Oil Company (Marathon) owns land and is pursuing naturalgas development on the
Plateau northwest of Parachute, CO. ln doing so, they have identified the need to store and
reuse produced water that is generated from the natural gas drilling activity typically including
drilling, completion, and production operations. This activity is currently classified as "storage,
Processing, and Material Handling of Natural Resources" in other zone districts in the County
but is not explicitly identified as an allowed use on the Plateau of the Resource Lands Zone
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District. So, as the County's Zoning Resolution of 1978, as amended (the Code) is presently
written, Marathon could not construct a pond to hold, reuse, or evaporate produced water on
the Plateau.
[Note, while some drilling operations have water pits on the COGCC regulated drill pad, these
uses that are the subject-of this application are those ponds that are to be constructed on lands
other than well pads. This does not extend to regulate water pits on well pads that are specific
to that drilling operation. That said, if an operator wishes to use a water pit to hold water from
other drilling operations, it would fall under this regulation.l
II. PROPOSAL
Based on the above, Marathon submitted a request to Garfield County to amend the County's
Zoning Resolution of 1978, as amended (the Code) to include "storage, Processing, and
Material Handling of Natural Resources" as a Conditional Use in the Code.
III. COMPREHENSIVE PLAN LAND USE GOALS, POLICIES, AND OBJECTIVES
The plateau region within the Resource Lands is generally classified as either "Public Lands" or
"Ouflying Resilential" for privately owned lands. As you are aware, there are very few
residLnces in these rather remote areas of the County. ln contemplating this requested use on
the plateau, it's important to review the goals, policies, and objectives identified in the
Comprehensive plan germane to this activity which are provided here:
9.0 NATURAL RESOURCE EXTRACTION
ISSUES:
primary issues concerning natural resource extraction identified during the Comprehensive
Plan process include the following:
. The relationship between previously approved mining operations and residential
development has resulted in visual, noise and traffic compatibility issues;
. The property rights of private property owners must be balanced with the rights of
mineral lessees;
o The County must be proactive in reacting to market conditions that will impact the level,
location and scale of mineral extraction within the county;
. Garfield County has significant mineral resources that has, and will continue to have, a
considerable impact on the economic health of the county.
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GOAL:
Garfield County recognizes that under Colorado law, the surtace and mineral interests
have certain legal rights and privileges, including the rightto extract and develop these
inferesfs. Furthermore, private property owners also have certain legal righb and
privileges, including the right to have the mineral estate developed in a reasonable
manner and to have adverse land use impacts mitigated.
OBJECTIVES:
9.1 The County will require adequate mitigation to address impacts of mineral extraction on
private property owners, without undue burden on the legal rights of mineral lessees.
9.2 The County through the implementation of the Comprehensive Plan, Zoning and Special
Use Permit policies, will address future compatibility issues with current mining
operations.
9.3 The County will ensure that mineral extraction activities will not adversely affect the
natural environment, including air quality, water quality, wildlife habitat or important
visual resources.
POLICIES:
Garfield County, to the extent legally possible, will require adequate mitigation to
address the impacts of mineral extraction on adjacent land owners. These measures
may include the following:
A. Landscaping and screening;
B. Modification of phasing or area to be mined;
C. Roadway improvements and signage;
D. Safe and efficient access routes;
E. Drainage improvements to protect surface and groundwater.
Garfield County, in coordination with relevant special districts, authorities and
municipalities, will require that developers of energy or mineral extraction projects
finance the construction and operation of any public improvements which, now or in the
future, will be required by their projects.
Garfield County will require developers of mineral extraction projects to participate in and
contribute to the funding of the County's monitoring of the demographic changes and
socioeconomic impacts associated with such projects. The applicability of this policywill
be assessed on a case-by-case basis by the Board of County Commissioners.
9.2
9.3
.y 9.4 Dust, odors and fumes should be contained within the extraction site generating such
emrssions and should not negatively affect any surrounding land use.
r.- g.5 Any proposal regarding mineralextraction that cannot mitigate adverse impacts may be! denied based on a finding of incompatibility, for the following reasons:
',, A. Adversely affecting the desirability of the immediate neighborhood or the entire
community;
\ )^, B. lmpairing the stability or value of existing adjacent properties;
C. Adversely affecting the quality of life of existing adjacent residences;
D. Showing a lack of quality or function in operational planning and/or design;
E. Creating a public danger or nuisance to surrounding areas;
F. Altering the basic character of adjacent land uses or the entire community.
PROGRAMS:
9.1 The Garfield County Zoning Resolution will be revised to reflect the Goals, Objectives
and Policies regarding resource extraction. lt is suggested subdivision developers
obtain all subsurface rights (mineral rights) associated with the land proposed for
subdivision prior to Final Plat approval. All mineral leases and owners of record of the
platted property shall be identified on the Final Plat.
9.2 Planning staff, with the cooperation of the Planning Commission, will revise the Special
Use Permit process to reflect the need to ensure compatibility of mineral extraction
activities with adjacent land uses.
4.0
'TVDUSTR'AL
USES
GOALS:
lndustrial: Garfietd County will encourage the development of a diversified industrial
Oase for the County which recognizes the human resources, natural resources and
physical location-to-market capabilities of the community, and which further recognizes
and addresses the social and environmental impacts of industrial uses,
Direct heavy industrial developments to the airpoft center.
Future, long-term commerciat and industrial development in western Gartield County
and at interchanges along l-70.
OBJECTIVES:
4.1 To ensure that industrial development is compatible with adjacent land uses and
mitigate impacts identified during the plan review process.
4.2 Encourage the location of industrial development in areas where visual, noise, air quality
and infrastructure impacts are reduced.
4.5 Ensure that the type, size and scope of industrial development are consistent with the
long-term land use objectives of the County.
4.6 Ensure that Zoning Regulations addressing lndustrial uses reflectthe changing land use
patterns and demographics of the County and encourage the further diversification of
the County's economy.
4.7 Ensure an industrial development policy that is environmentally sound and acceptable to
County residents and policy makers.
POLICIES:
4.2 County zoning regulations regarding industrial development will be compatible with land
use policies of adjacent jurisdictions.
4.3 Landscaping and screening will be required to address specific visual impacts of
ind ustrial development.
4.4 The project review process will include the identification and mitigation of transportation
impacts related to industrial development.
4.5 Zoning regulations and a review process will be developed and enforced that recognize
the differences in size, scope, and type of industrialdevelopment. A hierarchicalreview
process will be developed which respects the unique land use issues based on the size
and scope of the project. The County will require impact mitigation for these projects,
when appropriate.
Staff Findins
The issues, goals, objectives, and policies listed above would all need to be considered in this
request because the intent of the regulations (or changes to them in this case) should
implement the Comprehensive Plan. The most important goal to bear in mind is lhat"Gafield
County recognizes that under Colorado law, the surface and mineral interests have
certain tegal rights and privileges, including the right to extract and develop fhese
interesb. Furthermore, private propefi owners also have ceftain legal righE and
privileges, including the right to have the mineral esfafe developed in a reasonahle
manner and to have adverse land use impacts mitigated."
Much of the language above discuses compatibility issues and efforts to reduce impacts that
are to be evaluated through a review analysis on a project by project basis. So, it would seem
appropriate to allow "storage, Processing, and Material Handling of Natural Resources as a
Gonditional Use so that the-County has a review process to ensure the goals and objectives of
the Comprehensive Plan can be met. Additionally, this type of use is consistent with other
Conditional Uses on the Plateau such as extraction, processing, fabrication, etc. that are similar
in impact.
IV. PRESENT USES ON THE PLATEAU
Uses. by riqht
Ra.chi.gJarming and general agriculture, guiding and outfitting, accessory uses and
structure! related to agriculture; Single-family dwelling units related to an individual ranch or
farmstead. Pipeline (Subject to review and approval per procedure and requirements of Section
e.07)
Conditional Uses
Conrmunication tower, extraction, processing, fabrication, storage area, salvage yard, sanitary
land-fill, water impoundments, mineral waste disposal atea,warehouse facilities/staging areas,
and accessory use to the above, group home for the elderly.
Special Uses
Air o.affter airport, commercial, recreation uses; public gatherings, communication facility,
correction facility, utility lines, utility substations, Mass Transit Facility, and Temporary
Employee Housing
You will recall, the Planning Commission and Board of County Commissioners have recently
reviewed this issue in the draft revised land use regulations and have defined the use as a
"Water lmpoundment" and agree that it be a "Limited lmpact Review" on the Plateau and has
been defined in Article XVI as follows:
Water lmpoundment: lncludes wastewater treatment seftling ponds, surface mining
ponds, detention and retention ponds, artificiallakes and ponds,
and simitar water features. Also included, but not limited to
produced water and condensate impoundments as the terms are
used bv the oil and qas industtY.
As you can see, the Planning Commission recommended and the Board of County
Commissioners (Board) agreed (with the participation of the Oil and Gas lndustry on both
accounts) thatthe storage of produced water on the Plateau should be included as Limited Use
which requires a public hearing before the Board. Also note, a Limited lmpact Review is more
aligned with a Special Use, in that, the Board can deny the use; whereas, a Conditional Use
miy only be conditioned and generally not denied. ln this way, to be consistent with what both
the Planning Commission and the Board have discussed with the participation of the Oil and
Gas lndustry in the Draft Land Use Regulations, Staff suggests the Planning Commission
recommend the Board amend the Zoning Resolution of 1978, as amended to include water
impoundments as a Special Use on the Plateau and change the definition of said use to match
what is proposed in the Draft Regulations.
Additional Comments
These water storage ponds / evaporation ponds are uses that can pose environmental hazards
to wildlife as attractants, have the potential to leak or breach thereby polluting surface and
groundwater sources, emit significant odors, and generate specific large truck tiaffic for water
and petroleum byproduct (hydrocarbons) haulers on county roads.
On the other hand, they can serve as valuable reservoirs / holding areas for the significant
amount of water produced in the drilling and completion operationi where the watei can be
recycled for future use. Additionally, when used in conjunction with pipelines, Iiquids can be
efficiently moved 319und partially eliminating the need forwater hauling tankers thioughoutthe
County reducing PM-10 generation and increasing safety. Finally, therL are methodsinat help
mitigate some of the environmental concerns such as good liners and leak detection systems,
fencing, waterfowl netting / deterrent systems, and biotides that help reduce odors. nithough
these ponds can consume significant amounts of surface land, they also serve (if containing
fresh water) as a potentialwater source in the event of a wildland fire in areas where there may
be no water at all.
Based on these comments coupled with the language in the Comprehensive Plan and direction
already provided by the Planning Commission and the Board with the participation of the Oil
and Gas lndustry, Staff recommends the Planning Commission recommend the Board amend
the Resource Lands - Plateau Zone District be amended to include Water lmpoundments as a
Special Use and amend the definitions to include the revised definition stated earlierforWater
lmpoundments as well as amend the definition of lndustrial Operations to include Waterlmpoundments. ln this way, it would be subject to the Couniy's lndustrial performance
Standards in Section 5.03.07 and 5,03.08.
Public Notice
The Applicant has provided public notice (publication only) that reflects their request to add"Storage, Processing and Material Handling of Naturai.Resources to the plateau as aConditional Use. As you can see from the Staff comments, Staff recommends a differentrecommendation. Should the Planning Commission prefer the Applicant's requested
amendments, notice to the Board is fine. Should the Board prefer the Staffs recommendation,
notice to the Board would need to be modified as it currently does not reflect those options.
V. STAFF RECOMMENDATION
Staff recommends the Planning Commission recommend the following amendments to the text
of the County's Zoning Resolution of 1g78, as amended:
1) Amend Section 3.10.01 to include "Water lmpoundments" as a Special Use;
2) Amend Section 2.02.531o replace the existing definition of Water lmpoundmentwith the
following:
Water lmpoundment: lncludes wastewater treatment setiling ponds, surface mining
ponds, detention and retention ponds, artificiailakes and pondi,
and similar water features. Also included, but not timited toproduced water and condensate impoundmenfs as the terms are
used by the oil and gas industry.
3) Amend Section 2.00 to replace the old definition of Water lmpoundment with ,,Water
Reservoir" as the following:
Water Reseruoir: A natural or artificiat ptace where water is collected and storedfor use, esp. water for supptying a community, irrigating land,
furnishing power.
4) Amend Section 2.02.31and Section 5.03.07 to add "Water lmpoundment" as defined inSection 2.02.53.
VI. SUGGESTED FINDINGS TO THE BOARD OF COUNTY COMMISSIONERS
1 ' That the meeting before the County Planning Commission was extensive and complete,that all pertinent facts, matters and issues were submitted and that all interested partieswere heard.
2' !y.h use is appropriate to the physiographic and general environmental character of theDistrict to which it is added;
3' Such use does not create any more hazards to or alteration of the natural environmentthan the minimum amount normally resulting from the other uses permitted in the Districtto which it is added;
4. Such use does.not create any more offensive noise, vibration, dust, heat, smoke, odor,glare or other objectionable influences or more traflic hazards than the minimum amountnormally resulting from the other uses permitted in the district to which it is added;
5' Such use is compatible to the uses existing and permitted in the district to which it isadded.
That the proposed text amendment can be determined to be in the best interest of the
!eal!h, safety, morals, convenience, order, prosperity and welfare of the citizens ofGarfield County.
That the application h.as met the requirements of the Garfield County Zoning Resolutionof 1978, as amended.
6.
7.
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