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HomeMy WebLinkAbout02 Project DescriptionPROJECT DESCRIPTION O\OLSSON ASSOCIATES THIS PAGE LEFT BLANK FOR TWO-SIDED DUPLICATION. O\OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 Table of Contents Section 4-203.B.5 Project Description 1 Facility Operations 1 Hours of Operation 7 Parking Lot and Access Road 7 Alternatives Analysis 7 List of Tables Table 1. Development Timeline 6 Table 2. Summary of Required Permits 8 List of Figures Figure 1 — Inside Watson Ranch B pump house 5 Figure 2 — Inside Watson Ranch B pump house 5 Figure 3 — Front of Watson Ranch B pump house 5 Figure 4 — End of Watson Ranch B pump house 5 Figure 5 — DOH certificate — Watson Ranch B pump house 6 May 19, 2017 OLSSON 8 ASSOCIATES Battlement Mesa PUD Phase II — BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 This page intentionally blank. May 19, 2017 OLSSON 8 ASSOCIATES Battlement Mesa PUD Phase II — BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 Article 4.203.6.5 — PROJECT DESCRIPTION SECTION 4-203.B.5 PROJECT DESCRIPTION Ursa Operating Company, LLC (Ursa) and Battlement Mesa Land Investments LLC (BMLI) request a Garfield County (GarCo) Special Use Permit (SUP) and approval for construction and operation of the proposed BMC A Injection Well Facility within the Battlement Mesa PUD (PUD). Ursa is asking for this SUP as directed in GarCo Resolution 82-121 recorded October 20, 1982 creating the PUD which specifies that extraction and processing natural resources is an allowed special use. Ursa is requesting this permit under the "Injection Well, Small" land use that is an allowed use in the PUD Public, Semi -Public, Recreation, and Injection Well (PSRI) zone district. The water to be handled at this facility is produced from completion and production operations associated with natural gas wells. Water that is produced from these operations is classified as an exploration and production (E&P) waste by the Colorado Oil and Gas Conservation Commission (COGCC). The proposed facility will store and dispose of water only from Ursa's holdings. Fluids will be delivered to the facility via pipeline from well pads in Ursa's Battlement Mesa Field. This application is written using the Garfield County 2013 Land Use and Development Code with references to the 1979 Zoning Code. The submittals, standards, and public noticing for a Major Impact Review are being followed for this Special Use Permit. To provide for a thorough disclosure of the project's potential impacts and mitigations, Ursa has taken into consideration the Garfield County Colorado Health Impact Assessment (HIA) for Battlement Mesa. A matrix addressing Ursa's response to the HIA is included with this submittal. The proposed facility will be located on a well pad approved by the COGCC. In addition to being permitted pursuant to COGCC Rule 325, the proposed facility will be permitted according to COGCC Forms 31 and 33 for injection wells as well as COGCC Form 26 for source of produced water. All of Ursa's surface disturbances (final reclamation requirements) are covered under a statewide blanket surface bond held by the COGCC. A copy of Ursa's bond is included in the Reclamation Plan section. The site for the proposed Ursa BMC A Injection Well is located adjacent to the Battlement Mesa PUD Water and Sewer Treatment Plant. The proposed well pad is off River Bluff Road (CR 307) in the NE % of the SE 1/4 of Section 13, Township 7 South, Range 96 West and the NW % of the SW 1/4 of Section 18, Township 7 South, Range 95 West of the 6t" P.M. on Garfield County parcel number 2407-081-00-152. The parcel is approximately 1248.873 acres. Battlement Mesa Land Investments own the surface. Ursa and Battlement Mesa Land Investments, have a Surface Use Agreement allowing Ursa to develop the natural gas resources within the PUD. The proposed injection well will be operated exclusively by Ursa. The surface area of the proposed project is approximately 2.74 acres. Facility Operations The facility will consist of the following equipment: one (1) injection well, one battery of storage tanks to be dedicated to the disposal facility (6 tanks total) with a total volume of 1,800 Bbls with a 3 -foot high containment wall area around each tank battery, a valve set, and a maximum 20 May 19, 2017 1 .OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 foot by 40 foot building for the electric pumps. The site perimeter will have an earthen berm a minimum of 18 inches high. The proximity of Ursa's operations to the proposed injection well necessitates the construction of this facility, so that water produced during the completion and production of natural gas wells in the area may be collected and disposed of in a centralized location. Operation and monitoring of the facility will not require any additional equipment other than what is outlined above. Monitoring of operations will typically be performed periodically during the daylight hours of 7:00 am to 7:00 pm by an Ursa employee or contractor arriving via pickup truck. Natural gas well pads typically have a productive life span of approximately 20 to 30 years. When the amount of gas produced by a well declines to the point that it is no longer economical to continue operations, the well is plugged and abandoned. The plugging process involves the installation of permanent, impermeable concrete in the well bore, sufficient to prevent any movement of water, oil, or gas in accordance with applicable COGCC and CDPHE Rules. The abandonment process involves the removal of all surface equipment and the backfilling of all excavation, per applicable COGCC and CDPHE Rules. When all the wells at BMC A have reached uneconomic levels of production and have been plugged and abandoned, the site will enter Final Reclamation, following applicable COGCC and CDPHE Rules. All equipment will be removed, and the pad and associated infrastructure (roads and pipeline rights-of-way) will be closed, graded, recontoured, and seeded with appropriate seed mix. The Final Reclamation process is considered complete when vegetative cover over the entire site reaches 80% of pre - disturbance levels. This determination is made by the COGCC and includes only desirable vegetation, not weed species. A dust control program will be implemented for the construction interval and use of the access road. The proposed facility will not impact groundwater due to engineering design of the injection well and the depth at which fluid will be injected. As part of the Garfield County permit approval process, Ursa will secure all appropriate Colorado Department of Public Health and Environment (CDPHE) air quality (AQ) permits for the storage tanks. The approved Air Quality permit also will address the impacts and appropriate level of mitigation for the facility associated with fugitive dust and hydrocarbon venting from the facility. The key benefits of the proposed project are: • Minimize impacts to wildlife and vegetation by constructing a facility on previously disturbed surface • Reduce road maintenance • Utilize an engineering controlled transfer system onsite • Reduce Ursa's overall development and operating cost by negating the requirement for transport and fluid disposal at distant locations • Reduce trucking and improve safety by use of the pipeline network Adjacent property uses include residential, PUD open space, wastewater treatment, RV and equipment storage, and natural gas exploration. There are residences within 500 feet of the site. May 19, 2017 2 OLSSON ASSOCIATES Battlement Mesa PUD Phase II — BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 The north edge of the well pad and proposed injection well facility is located approximately 56 feet from the southern property boundary of the BMMD wastewater treatment parcel. The rest of the pad is more than 200 feet from the nearest property boundary. As part of the GARCO Special Use Permit approval process, proper notification will be provided to all appropriate landowners and mineral owners. The list of landowners and mineral owners that will be sent certified letters informing them of the proposed project and decision date are included as part of the submittal package. The design for the proposed facility is provided in the facility site diagram and construction documents. Stormwater management protections, specific best management practices (BMPs) and other drainage controls have been designed into the facility. The facility will be constructed according to the criteria identified in the COGCC Rule 325. The injection well facility will be accessible to Ursa personnel and their contractors 24 hours -a - day, 365 -days -a -year. Daily inspections will be conducted by local operations personnel. Operations and maintenance of the proposed facility will be coordinated with the existing operations in the area. An analysis of the traffic impacts generated by this project is provided in the Traffic Study section. The project will be developed in one (1) phase and will include: • Six storage tanks totaling 1,800 Bbls • Injection pump and pump house • Associated piping It is anticipated that one pump will supply fluids to the proposed injection well. Therefore, Ursa is requesting approval for one pump and the necessary associated equipment. The injection pump will be powered by electricity. A copy of the "Will Serve" letter from Holy Cross is included in the Standards section of the application. Delivery of fluids to the proposed facility could come from several of Ursa's well pads, including Yater, Watson Ranch, Monument Ridge, Speakman A, B&V, Monument Ridge B, BMC A, BMC B, BMC D, BMC L, and Tompkins. Potential future well pads in the Battlement Mesa Field could send water to the proposed injection facility. Produced water from the aforementioned sites may be delivered to the existing Speakman A, Tompkins, Watson Ranch B, and the proposed BMC A injection wells. Water will be delivered to the injection well facilities via pipeline. A full traffic impacts analysis has been provided as part of this submittal. If approved by Garfield County, the injection well will be appropriately permitted through the COGCC Form 31 and Form 33 process. This process reviews the formation into which water is to be injected and all underground sources of drinking water which may be affected by the proposed operation. The COGCC requires a water analysis and a fracture pressure or fracture gradient analysis of the injection formation. If remediation is required for drinking wells within a quarter of a mile of the injection well, a remediation plan must be filed with the COGCC. The facility will be operated in accordance with the conditions dictated by the COGCC permitting/approval process. May 19, 2017 3 OLSSON ASSOCIATES Battlement Mesa PUD Phase II — BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 The construction of the well casing is highly regulated by the COGCC. The regulations require a resistivity log and full description of the casing of the well. The minimum and maximum amounts of water to be injected daily are assigned by the COGCC. Anticipated injection pressures are required to be reported to and approved by the COGCC. Prior to application approval, the proposed disposal well must satisfactorily pass a mechanical integrity test. The proposed injection well must continue to pass mechanical integrity testing throughout the life of the well. Environmentally sound and safe operation of the proposed injection well is assured with the implementation of the following emergency controls: • Bradenhead Pressure Alarm: monitors surface casing pressure • Wireless Casing Pressure Monitor/Transmitter: monitors casing pressure • Wireless Tubing Pressure Monitor/Transmitter: monitors tubing pressure • Remote Shut Down Controls: the injection well is equipped with a stand-alone remote telemetry (shutdown) unit that would allow the injection well to continue to operate (but shut down if any alarms or operational issues occur) in the event that the operator loses contact with the injection well; it is solar powered and has a backup battery power supply. Each control is designed to notify the operator regarding any issues with the injection well and, the controls have the capability to remotely shut down the well, without operator assistance. In addition to the injection well controls listed above, Ursa will have additional controls, which consist of: • Pump(s) supporting the injection well are equipped with Programmable Logic Controls, which monitors the pump package and pressures. • The pump(s) are equipped with Low Oil Level Alarms and high and low tank alarms. The equipment also monitors flow rates, including the maximum daily pressure/volume (as set by the COGCC). The pump house building will be a skid mounted prefabricated metal building certified by the Colorado Department of Housing. It will be built specifically for the purpose of housing the electric pump for the injection well. The building will be delivered as part of the pump package. The photos below show the typical pump house used by Ursa. This one is located at the Watson Ranch B injection well facility. A building permit will be obtained prior to putting the building into use. May 19, 2017 4 OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 Figure 1 — Inside Watson Ranch B pump house Figure 2 — Inside Watson Ranch B pump house Figure 3 — Front of Watson Ranch B pump house Figure 4 — End of Watson Ranch B pump house May 19, 2017 ON OLSSON ig ASSOCIATES Battlement Mesa PUD Phase 11— BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 • • THIS INSIGNIA IS THE PROPERTY OF THE STATE OF COLORADO DIVISION OF HOUSING THIS NONRESIDENTIAL STRUCTURE COMPLIES V[ITI; TME FICTOSiti 13411LT NONRESIDENTIAL CONSTRUCTION STANOAADS OF THE STATE OF COI.ORAIIO FACTORED/SF NAME _ •1, ��,� ■ �� PPROVAL, ND.M1111.31,1A UNIT IDs,i r1.. y .._ M CERTIFICATION NO. F6MR 276 MANUFACTURER CERTIFIES THE FOLLOWING: ESA ON LOAD �� PSF PEED MIETPM + MPH � DESIGN LOAD �:r. /IM P5f CY M411=I ZONE CODE E 1 I 1 VI2PR+n.s1iI.IG 2-012. Figure 5 — DOH certificate — Watson Ranch B pump house DevpinDment Timeline and Emplover N11mhers The typical timeline for the development and production of the well pad is: Table 1. Development Timeline Phase Duration No. of Employees Facility Installation 7 days 6 contractors per day Drilling 5 days 20 contractors per day Completions 10 days 35 contractors per day The well will be drilled as part of the BMC A drilling occupation. Final reclamation will be done as part of the BMC A reclamation. The facility will be operated for the life of the gas wells in the area. This is currently estimated to be 20 years or more. At the end of the economic life of wells in the area, the site will be reclaimed by removing all surface facilities, plugging the natural gas wells and injection well, grading to restore original contours, replacing topsoil, and revegetating the reclaimed area as outlined in the reclamation plan included in this submittal. The anticipated construction schedule will be approximately one month beginning in the fourth quarter of 2017, with drilling starting the first quarter of 2018. Construction start is dependent upon weather conditions. Grading and/or construction sequence, including the installation and removal of erosion and sediment control measures, and the estimated duration of exposure of each area prior to the completion of temporary erosion and sediment control measures will follow Ursa's CDPHE approved Stormwater Management Plan and Permit and COGCC Rules for interim and May 19, 2017 VNOLSSON ig ASSOCIATES 6 Battlement Mesa PUD Phase II - BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 final reclamation and the SUA. The cost of the soil erosion control measures is $5,000 to $15,000 for the pad. Hours of Operation Preliminary construction of the well pad generally takes place during daylight hours. These hours are restricted by the SUA to between 7:00 am and 8:00 pm. Drilling will take place 24 hours a day as allowed in the SUA. Ursa will limit completion activities to between 7:00 am and 7:00 pm as an added BMP. Once the pad enters the Production phase, it will be an unmanned facility with periodic visits by Ursa personnel and contractors for routine inspections and maintenance between the hours of 7:00 am and 7:00 pm. Parking Lot and Access Road No formalized parking lot will be developed as part of the BMC A Injection Well. Only authorized personnel will be on the site during any part of the operation of the well pad. No public access will be allowed. Employees and contractors will be directed to park in specific areas based on safety needs during each phase of the pad's operation. The access road is approximately 785 feet from River Bluff Road to the proposed well pad site. The road will be graveled to control mud tracking off the site onto public roads. The access is designed to channel stormwater off the road and around the well pad site, while controlling erosion and sedimentation. Alternatives Analysis Ursa performed an alternatives analysis for this location to make sure that it is the most appropriate place for this injection well. Existing/future planned pad locations proximate to but outside of the BM PUD were all considered as possible locations for injection wells. Due to topography, the Colorado River and planned and existing infrastructure including the additional injection wells discussed above, the preferred location for the fourth injection well is along the western side of the BM PUD. Per the 2009 SUA, an injection well has been planned within the BM PUD boundary from the BMC G pad. In response to community concern, Ursa eliminated the BMC G pad from the BM PUD development plan and was successful in constructing adjacent well pads (Yater and Watson Ranch B) outside of the BM PUD boundary. The injection well within the BM PUD was replanned at the BMC B pad location. Due to community and CDPHE concerns regarding the proximate location to the Colorado River, PUD drinking water intake and 317B public water supply internal buffer, Ursa has worked with the surface owner and Garfield County staff and commissioners to move the surface location for the planned injection well to the BMC A pad location. The proposed BMC A location is outside of the 317B public water supply area, outside of the floodplain and is located nearly 2000 feet from the Colorado River. Due to adjacent land uses surrounding the proposed BMC A pad, Ursa feels this site is best suited for their injection needs for their development. The Battlement Mesa Metro District sewer treatment plant is immediately adjoining to the N/NE along with the Battlement Mesa Company maintenance shop and an RV storage lot. All other pads that Ursa operates are surrounded by residential areas other than the Proposed BMC M pad which is located along the Golf Course May 19, 2017 7 OLSSON ASSOCIATES Battlement Mesa PUD Phase II — BMC A Injection Well Ursa Operating Company and Battlement Mesa Land Investments 016-3531 area in the middle of Battlement Mesa. To locate this injection well on the BMC M pad would create a large amount of additional disturbance to build the pad, access road and pipeline connections through the Battlement Mesa community. Ursa feels it is best to try and utilize an already planned producing pad to continue their efforts in overall reduction of disturbance in the area. If Ursa is allowed to place this injection facility at the proposed BMC A pad, they are one more step closer to eliminating yet another pad from the overall development, which started as 14 well pads, and this plan would help Ursa reduce their planned well pads down to 4. A full alternatives analysis is included in this submittal. Table 2. Summary of Required Permits Permit Required Responsible Regulatory Agency Status Land Use Change Permit —Special Use Permit and Major Impact Review Garfield County Application submitted May 2017 Stormwater Permit CDPHE Permit COR03K66 issued 5/21/2013, and administratively continued 5/21/2013, included in this permit. Air Quality CDPHE Air Permit Application will be submitted prior to commencement of operations of the injection well. Form 2 — Application for Permit to Drill COGCC Permit Applications submitted May 2017 Form 2A — Location Assessment COGCC Permit Application submitted May 2017 Forms 31 and 33 — Injection Well Permit COGCC Permit Application will be submitted prior to completion of the injection well. Access/Driveway Permit Garfield County Ursa will obtain any required access permits within 30 days prior to construction Pipeline Special Use Permit and Pipeline Development Plan Garfield County Applications submitted May 2017 Building Permits Garfield County Ursa will obtain when necessary for the pump house. May 19, 2017 OLSSON ASSOCIATES 8