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HomeMy WebLinkAboutBOCC Staff Report 06.20.2005Exhibits for Encana, High Mesa Facility SUP Public Hearing held on June 20, 2005. L+ xhibit Letter 7 x bit A Mail Return - Receipts B Proof of Publication C Garfield County Zoning Regulations of 1978, as amended. D Garfield County Comprehensive Plan of 2000 E Project Information and Staff Comments F Encana High Mesa Facility SUP Application G H " e %.r - St ell ,x ,l'h J of gyp/) n ern 4'% , Wj K L M N O P Q R S T U X Z AA BB CC DD EE FF GG HH II JJ KK LL MM _ NN 00 PP PROJECT INFORMATION AND STAFF COMMENTS TYPE OF REVIEW APPLICANT LOCATION SITE INFORMATION EXISTING ZONING BOCC 06/20/05 MLB Special Use Permit for "Processing, Storage and Material Handling of Natural Resources" Encana Oil & Gas USA, Inc The subject property is located in N1 /2, Section 36, T.7S., R96W of the 6th P.M., generally located approximately 4 miles south of Parachute off of CR 304. 30.45 acres Agricultural/Residential /Rural Density (A/R/RD) ADJACENT ZONING AIR/RD I. DESCRIPTION OF THE PROPOSAL The application is for "Storage, Processing, and Material Handling of Natural Resource" in order to construct a series of three (3) lined water storage ponds on a 30.45 acre property owned by Encana Oil & Gas USA, Inc located approximately 4 miles south of Parachute in the High Mesa area, along County Road 304. The proposed storage ponds will serve as a holding pond where produced water generated from natural gas drilling operations in the area can be stored and evaporated. The proposal includes pipelines and tanker trucks to haul or transport produced water from drilling sites to the subject site where the water is skimmed to remove petroleum constituents at a portion of the site with storage tanks and a separator. In the initial period of project, water will be hauled to the site by truck. Eventually, fresh water will be piped to the site from the Colorado River. These treatment tanks will serve as the primary separation point for lighter than water hydrocarbons and heavier than water solids/ paraffin/ wastes /oils ( "petroleum constituents "). These tanks are also called separators where natural separation process allows the solids to be skimmed off the produced water then be hauled away for disposal while the produced water is pumped (from a pump located in an enclosed pump house) directly into the storage pond for reuse in drilling operations. The proposed ponds will be able to contain approximately 302,000 barrels of produced water at capacity. The Applicant asserts that this facility will reduce the need for water hauling trucks to travel around the High Mesa area. The facility will operate 24 hours a day, year- round, although most of the hauling will occur during the daylight hours. Access to the site is proposed to be via CR 304. An evaporation pit that contains, treats, and evaporates this water is dealt with in Section 908 Centralized E &P Waste Management Facilities of the COGCC rules. The applicant has included their application to the COGCC for a Centralized E &P Waste Management Facility. These rules also require that operators may be subject to local requirements for zoning which meant a Special Use Permit was required for the facility. II. SITE DESCRIPTION The proposed site for the facility is to be located on a mesa sitting above the south side of the Colorado River. The site slopes gently at about a 4% grade, from the east to the west. The site is underlain by Potts loam , an alluvial soil derive from sandstone, shale and basalt. Pete and Bull Creek runs to the northwest, about a' /z mile southwest of the site. Some other unnamed intermittent drainages lie to the north and south, but will have no effect on the site. III. ZONING & ADJACENT USES The subject property is zoned Agricultural/Residential /Rural Density. The type of use requested falls under the definition of "Process, Storage and Material Handling of Natural Resources" which are identified as special uses in the A/R/RD zone district. The proposed pond is located on approximately 2 acres of 30.45 acre property. The neighboring uses on those lands appear to be rangeland grazing, farming, and resource extraction (natural gas drilling). 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. 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 thereunder 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 proposed use does not appear to need or require potable water or wastewater services. 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 proposed facility is expected to generate an average of 6 water tanker trips per day into and out of the facility, during peak usage times. Most of this truck travel will be corning from and going back to drilling sites on existing and future on -lease roads in the area. The Applicant states that County Road 304 is the primary access to the area, but is currently a non - maintained road by the County. Encana has stated that they will assume the responsibility of maintenance of the road. County Road 304 has been the subject of potential litigation from one of the adjoining property owners. They claim that the road is not a County road and that they should be able to gate the access to the area. The applicant' s attorney' s have had conversations with the County Attorney' s office about this issue, but they have not provided any documentation to the County Attorney to assist in determining whether or not this is a County road. It is staff's understanding that the road access is controlled by Encana per an agreement Tom Brown Oil made with the land owners, to make sure that the vehicles using the road are only oil company vehicles. 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 fairly remote private location on a mesa that is visible from the west to people traveling along I -70.. Further, the site itself is situated in an area already characterized by intense industrial activity from the natural gas exploration. No screening is necessary. While no lighting is proposed, any future lighting shall be directed inward and downward towards. Section 5.03.07 [Industrial Operations] 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: (A) Existing lawful use of water through depletion or pollution of surface run -off, streamflow or ground water. Response The application states that the pond is to be lined with a 60 millimeter, impermeable high - density polyethylene liner placed on top felt skid free pad to prevent the poly liner form moving. The liner and pad will be placed on a prepared dirt pad surface, that is tilled and raked to at least an 18 inch rock free surface. The pond berms will be compacted to meet or exceed 95% Proctor Density. (B) Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare or vibration, or other emanations. Response The pumps that will be used to move the water between the ponds will be electric and will produce a low -level noise and minimal amounts of vibration. The applicant has stated that any sound emanating from will comply with CRS 25 -12 -103, industrial standards. The nearest residential use is approximately 3/4 mile to the northwest and at a lower elevation than the proposed facility. (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 facility sits in an area identified as by the Colorado Division of Wildlife as winter range for mule deer and elk. The applicant acknowledges that that facility is incompatible with continued wildlife access, but the entire facility will only occupy two (2) acres. The entire facility will be fenced to prevent access from deer and elk, and a deterrence system will be installed, if water fowl end up trying to land on the ponds. (D) Affirmatively show the impacts of truck and automobile traffic to and from such uses and their impacts to areas in the County. Response The proposed pond is expected to generate an average of 6 water tanker trips per day into and out of the facility. This truck travel will be corning from and going back to drilling sites on the High Mesa area. The Applicant states that the pond will reduce the need for more truck hauling water on CR 304 since the pond will be at the property where the drilling activity occurs rather than hauling the water to other disposal sites in the County. The applicant has stated that they will be responsible for maintenance of the road in the area. (E) That sufficient distances shall separate such use from abutting property which might otherwise be damaged by operations of the proposed use(s). Response The operations at the facility will not involve any abutting property with residential structures. The nearest residence is located approximately 3/4 of a mile to the northwest. The house is located at a lower elevation and not visible from the facility. (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 The application includes a reclamation plan that would govern treatment of the site once the useful life of the facility (20 years) has expired which includes: 1) Removal of all surface equipment and liner material; 2) Restoration and re- contouring of grade to approximate original conditions; 3) Replacement of stockpiled topsoil; and 4) Compliance with all prevailing Colorado Oil and Gas Conservation Commission and Garfield County regulations governing final reclamation. (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." In addition, the Board should be aware that Section 704 of the OGCC rules and regulations regarding proper reclamation of Centralized E &P Waste Management Facilities requires the following: 704. CENTRALIZED E &P WASTE MANAGEMENT FACILITIES An operator which makes application for an off -site, centralized E&P waste management facility shall, upon approval and prior to commencing construction, provide to the Commission financial assurance in the amount of fifty thousand dollars ($50,000) to ensure the proper reclamation, closure and abandonment of such facility. The Application contains such a Performance Bond for $50,000 filed with the COGCC for an E &P Waste Facility. Section 5.03.08 %Industrial Performance Standards] 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. The only permanent noise generated from the facility will emanate from the electric pumping equipment which will be housed in a building intended to protect the equipment and dampen the noise generated. EnCana has committed to adhere to the noise standards specified by the Colorado Revised Statutes and the Colorado Oil and Gas Conservation Commission rules. More specifically, the Applicant has committed that the noise will not exceed 75 decibel maximum set out in the statutes. The application did not provide any analysis of noise generated from the facility as it relates to the statutes; however, Staff agrees that the pump building facility will dampen the noise generated so that it will not be detected outside of the property. The proposed equipment buildings will aid in mitigating any minimal vibration, and the vibration, if any, should be localized to a small area immediately surrounding the pumping equipment. If, in the unlikely event, nuisance vibration is detected at any point along the property boundary, additional measures shall be taken to control the vibration. Staff agrees that there will be limited vibration that will most likely not be detected at the boundaries of the property. The equipment associated with the pond will add no emissions of smoke and particulate matter. The facility shall be required to comply with Federal, State, and County air quality regulations and standards. There will be some glare by the nature of the water surface; however, it will not be able to impact adjacent properties due to the secluded location of the pond being surrounded by canyon -like steep topography. (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 f `ire 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. 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. Response The size of the entire facility is approximately 2 acres. The Applicant states that there will be no storage of flammable or explosive solids or gases on the property. No increase in the size of the property is associated with the proposed changes. No heavy equipment will be stored on site. Any additional lighting installed at the facility will be installed so that it is 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. Response The Applicant states that the facility is designed to protect groundwater and surface water resources and will not generate any adverse impact on water through depletion, pollution of surface runoff, stream flow or surface water. No sewage will be generated, no water supplies will be used and there will be no disposal of water. All water brought to the facility will be contained in above ground storage tanks which shall be contained within adequate secondary containment structures constructed from impermeable materials. Oil and Gas Conservation Commission (OGCC) Rules For background, the following provisions are rules and regulations required by the COGCC which basically point out that 1) produced water is defined as exploration and production waste, and 2) whose disposal is governed by the OGCC and not the Colorado Department of Public Health and Environment (CDPHE). EXPLORATION AND PRODUCTION WASTE (E &P WASTE) shall mean those wastes associated with operations to locate or remove oil or gas from the ground or to remove impurities from such substances, and which are uniquely associated with and intrinsic to oil and gas exploration, development or production operations of which are exempt from regulation under Subtitle C of the Resource Conservation and Recovery Act (RCRA), 42 USC Sections 6921, et. seq. For a waste to be considered an E &P waste, it shall be associated with operations to locate or remove oil or gas from the ground or to remove impurities from such substances and it shall be intrinsic to and uniquely associated with oil and gas exploration, development or production. For natural gas, primary field operations include those production - related activities at or near the wellhead and at the gas plant (regardless of whether or not the gas plant is at or near the wellhead), but prior to transport of the natural gas from the gas plant to market. In addition, uniquely associated wastes derived from the production stream along the gas plant feeder pipelines are considered E&P wastes, even if a change of custody in the natural gas has occurred between the wellhead and the gas plant. In addition, wastes uniquely associated with the operations to recover natural gas from underground storage fields are considered to be E&P waste. SENSITIVE AREA is an area vulnerable to potential significant adverse ground water impacts, due to factors such as the presence of shallow economically usable ground water or pathways for communication with deeper economically usable ground water; proximity to surface water, including lakes, rivers, perennial or intermittent streams, creeks, irrigation canals, and wetlands. The procedure for identifying Sensitive Areas is set forth in the Sensitive Area Identification Decision Tree and Guidance Document. 704. CENTRALIZED E &P WASTE MANAGEMENT FACILITIES An operator which makes application for an off -site, centralized E &P waste management facility shall, upon approval and prior to commencing construction, provide to the Commission financial assurance in the amount of fifty thousand dollars ($50, 000) to ensure the proper reclamation, closure and abandonment of such facility. This section does not apply to underground injection wells and multi -well pits covered under Rules 706 and 707. 901. INTRODUCTION a. General. The rules and regulations of this series establish the permitting, construction, operating and closure requirements for pits, methods of E &P waste management, procedures for spill /release response and reporting, and sampling and analysis for remediation activities. The 900 Series rules are applicable only to E&P waste, as defined in ¢34 -60- 103(4.5), C.R.S., or other solid waste where the Colorado Department of Public Health And Environment ( "CDPHE ") has allowed remediation and oversight by the Commission. CRS §34 -60- 103(4.5) "Exploration and production waste" means those wastes that are generated during the drilling of and production from oil and gas wells or during primary field operations and that are exempt from regulation as hazardous wastes under subtitle c of the federal "Resource Conservation and Recovery Act of 1976", 42 U.S.C. sec. 6901 to 6934, as amended. 907(c) Produced Water (1) Treatment of produced water. Produced water shall be treated prior to placement in a production pit to prevent crude oil and condensate from entering the pit. (2) Produced water disposal. Produced water may be disposed as follows: A. Injection into a Class II well, permitted in accordance with Rule 325.; B. Evaporation/percolation in a properly permitted lined or unlined pit; C. Disposal at permitted commercial facilities; or D. Disposal by roadspreading on lease roads outside sensitive areas for produced waters with less than 5,000 mg/1 TDS when authorized by the surface owner. Roadspreading shall not result in pooling or runoff of produced waters and the adjacent soils shall meet the allowable concentrations in Table 910 -1. Water Quality Monitoring for the Proposal As noted previously, the Applicant states that the liner is designed with a high density polyethylene liner on a skid free liner. In previous water storage applications, the Board has required the Applicant to conduct an annual review of the water chemistry contained in the evaporation pit at such time when free standing water is within the pit. This analysis would be submitted to the Building and Planning Department once a year every year the pit is in operation. The cost of this analysis shall be born entirely by the Applicant. If this water is determined, through this analysis, to be hazardous or toxic based on applicable standards, the Applicant or owner / operator of the facility shall be required to submit an additional SUP to specifically address / mitigate any detected potential hazards. Lastly, it is clear that the COGCC 900 Series Rules are applicable only to E &P waste, as defined in §34 -60- 103(4.5), C.R.S., or other solid waste where the Colorado Department of Public Health and Environment ( "CDPHE ") has allowed remediation and oversight by the Commission. As a result, the CDPHE does not regulate water in these ponds. 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. IV. 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. V. STAFF RECOMMENDATION Staff recommends that the Board approve the Special Use Permit for "Processing, Storage and Material Handling of Natural Resources" on High Mesa for Encana Oil & Gas, USA with the following conditions: I. 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 National Fire Code as the Code pertains to the operation of this facility. 4. The issuance of the SUP shall be subject to an annual review of the water chemistry contained in the evaporation pit at such time when free standing water is within the pit and water samples collected from the ground water monitoring well. These analyses shall be submitted to the Building and Planning Department on the first day of July for every year the pit is in operation. The cost of this analysis shall be born entirely by the Applicant. If this water is determined, through these analyses, to be hazardous or toxic based on applicable standards, the Applicant or owner / operator of the facility shall be required to submit an additional SUP to specifically address / mitigate any detected potential hazards. 5. The County reserves the right to retain outside expertise, at the expense of the Applicant / operator of the facility, in order to conduct tests or analyses of the physical nature, water chemistry or groundwater properties on or away from the site. 6. That this facility is for the sole use of the Applicant. If any other entities are to be added as users, then they would be subject to an additional SUP as well as rules and regulations as administered by the COGCC. 7. That all out -of -state vehicles and equipment assn iated with � eJ peration of the facility be properly licensed within ty /A7'G 8. All produced water brought to the facility that is contained in any above ground storage / treatment / separator tanks shall be contained within an adequate secondary containment structures constructed from impermeable materials to prevent any spill from impacting groundwater. 9. The Applicant shall comply with the following requirements in order to mitigate adverse affects of this operation on wildlife: a. The Applicant shall monitor the pond for the presence of oil as a matter of typical operation and maintenance duties and to prevent wildlife from being harmed. If, in the unlikely event, oil reaches the pond water, the Applicant shall take measures to immediately remove it. b. The Applicant shall install a waterfowl deterrence system that consists of the placement of high - tensile wire at regular intervals across the pond. These wires act as a visual deterrent to birds attempting to land on the water, and as a noise deterrent, as the stretched wire creates an ultrasonic (inaudible to humans) sound. c. The Applicant shall immediately report the death of any migratory bird caused by activities or structures at the facility to the Colorado Division of Wildlife and the United States Fish and Wildlife Service in accordance with state and federal regulations. 10. Prior to the issuance of a Special Use Permit, the Applicant shall submit the following items to the Count Vegetation Manager for approval: a. The Applicant shall map and inventory the property for the County Listed Noxious Weeds. b. The Applicant shall provide a Weed Management Plan for the inventoried noxious weeds. c. The Applicant shall augment the site reclamation plan by providing a plant material list and planting schedule for the reclamation. d. The Applicant shall provide a Mosquito Management Plan that will address how the Applicant intends to monitor and manage this site for mosquitoes. 1.Q ' - pc ii ant,shallib required to pay doub e the !Ath.t. n •e&f ,fee the . ildin an nnin department prior tc7Wissuan a Sp t• be Sete mined by al Use mit. 41, o / 7 a � �� r ,44,t/t--A citoLa P4J 7)1/6 ejd14--/ _,?.}L, \-44-0