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HomeMy WebLinkAbout2.0 BOCC Staff Report 08.15.2005BOCC 08/15/05 FJ PROJECT INFORMATION AND STAFF COMMENTS TYPE OF REVIEW APPLICANT LOCATION SITE INFORMATION EXISTING ZONING ADJACENT ZONING Special Use Permit for "Processing and Material Handling ofNatural Resources" for a Natural Gas Compressor Station Encana Oil & Gas USA, Inc The subject property is located at the end of CR 215 northwest of Parachute (UNOCAL Property) Approximately 27,000 acres Resource Lands (Gentle Slopes and Lower Valley Floor) I. DESCRIPTION OF THE PROPOSAL The Building and Planning Department received a Special Use Permit (SUP) application for "Processing and Material Handling of Natural Resource" for a natural gas compressor station (the Compressor) on a 27 ,000-acre property owned by Encana Oil & Gas USA, Inc located at the end of County Road 215 north of Parachute which is also formerly known as the old UNOCAL property where considerable oil shale processing occurred in the 1980s. The Compressor is located just beyond the private gate at the end of County Road 215 adjacent to a recently permitted produced water storage facility. Middle Fork Compressor Station BOCC-08115105 Page2 More specifically, the Applicant, represented by Wagon Wheel Consulting, requests approval for a Compressor which is presently under construction. This compressor will serve as a collector point where gathered natural gas is sent for dehydration and compression of gas collected in the North Parachute Ranch. Gathering systems in the area transport natural gas from wells to the proposed Middle fork Compressor Station. Once compressed, the natural gas is delivered to a higher pressure system and transported to a location where it is conditioned for sales. Processing The application indicates that natural gas producing wells require a gathering system operate at a low enough pressure that optimizes well performance and deliverability. Without the boost in pressure from a compressor station, most wells would not be able to produce into a high pressure system. The wells would not flow. At the time when the natural gas is delivered to the compressor station, free liquids including hydrocarbons and water are separated using conventional separation equipment. This separation is critical to prevent damage to compression equipment. The hydrocarbon liquids are measured and combined with other liquids and sold. The water is then hauled to an approved water treatment and disposal facility. The application describes the dehydration process where once the gas is compressed; it is then dehydrated using a methylene glycol (TEG) dehydration system. As the gas is contacted with lean TEG, the water is absorbed by the glycol, thus removing it from the gas. The glycol and water (rich) solution is sent to a reboiler where the water is driven off as steam. The lean TEG is then sent back to a contactor for a continuous removal of water from the gas stream. Once dehydrated the gas is then delivered to a common high pressure line and sent to a facility for more conditioning. Once conditioned, the gas is then sold and delivered to markets in the area. Associated Pipelines In order to send gas to and from the compressor, the Applicant intends to construct three segments of pipeline. The first segment consists of a 1 O" pipeline (having a length of 1.2 miles) and will bring gas from the existing gathering line network on the NPR to the compressor facility. The discharge pipeline consists of two segments (12" in width and having a length of approximately I mile); the first segment will leave the compressor and connect to an existing pipeline owned by Encana purchased from American Soda and then the second segment will run from that line to the Roan Cliff Interconnect which is an existing pipeline connection that delivers natural gas to the Rifle Compressor Station. The total pipeline length of the three segments is approximately 2.2 miles and ranges in width from 10" to 12". II. BACKGROUND As you will recall, at one time, the County did not "regulate" compressors as a stand-alone land use Middle Fork Compressor Station BOCC 08115105 Page3 due to a previous determination of the Colorado Oil & Gas Conservation Commission (COGCC). However, more recently, the COGCC officially acknowledged thatlocal governments could regulate compressors through their local zoning frameworks. As a result, Encana began construction of the subject compressor under the COGCC' s former position which is why Staff discovered the project "under construction" on a site visit for another project. So, technically, Encana could continue construction without a land use permit since construction had already begun under the previous COGCC determination. However; they wish to obtain the proper Special Use Permit for the facility. It should be noted that proper building permits were sought through Garfield County at the correct time for the project. New Pipeline Regulations As you are also aware, under the newly approved pipeline regulations this summer, this compressor would require County review if the pipelines to which the compressor station is appurtenant to are greater than 12" in diameter and over 2 miles in length or any width of pipeline over 5 miles in length. However, in this case, there is 1.2 miles of a 10" pipeline and 1 mile of a 12" pipeline. As a result, these pipeline segments and compressor would not require any review by the County. Referral to Planning Commission In light of the above, Staff brought the application to your attention so that you could determine if a referral to the Planning Commission was necessary. You did not refer the application to the Planning Commission due to 1) the limited nature of potential impacts to surrounding properties, 2) the remote location of the property such that it is situated at the end of a dead-end county road which is used primarily for industrial traffic serving the existing industrial uses in the area with very limited general population traffic, and 3) the fact that the site itself will be situated in an industrial area already characterized by intense industrial activity from the oil shale exploration I processing activities. III. SITE DESCRIPTION The proposed site where the Compressor is located is situated on flat river basin land that is situated at the general confluence of the West, East, and Middle Forks of Parachute Creek. The Compressor is located on approximately 4 acres of , the total 27,000 acre parcel owned by Encana. The area where the Compressor is to Middle Fork Compressor Station BOCC-08115105 Page4 be located is surrotmded by steep slopes and canyons forming the general confluence of the three creeks. Much of the area near the Compressor has been denuded by the former oil shale operations and continues to be a location which contains staging areas for heavy machinezy, large water hauling trucks, drilling rigs, and pipes associated with natural gas exploration. Dense mature riparian vegetation exists along the creeks as they pass through the area. IV. ZONING & ADJACENT USES The subject property is zoned Resource Lands (Gentle Slopes and Lower Valley Floor). The type of use requested falls tmder the definition of"Processing and Material Handling ofNatural Resources" which are contemplated as special uses in the Resource Lands (Gentle Slopes and Lower Valley Floor) zone district. The property also now known as the North Parachute Ranch was the area where a majority of the oil shale exploration and development occurred. The compressor is located on approximately 4 acres of a 27,000 acre property which is surrotmded by properties also owned and utilized by the energy industzy such as Chevron, Exxon/Mobile, Williams Production RMT, American Soda, etc. Neighboring uses on those lands include rangeland grazing, farming, and resource extraction (natural gas drilling). V. 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 Cotmty Commissioners after holding a public hearing thereon in conformance with all provisions of the Zoning Resolution. VI. REVIEW AGENCY AND OTHER COMMENTS Comments have been received from the following agencies I community groups and are integrated throughout this memorandum as applicable. 1. Town of Parachute: Posed three questions including: 1) Would the application be subject to any road or traffic impact fees, 2) If so, are any of the funds collected dedicated to expansion of the I-70 interchange at Parachute, and 3) Does the Cotmty review the direct impact of the local jurisdiction? (See Exhibit E). 2. Garfield Cotmty Road and Bridge Department: Garfield Cotmty has no comments or requests for this application. The road to the new compressor site is an existing road that meets the Cotmty' s standards and does not foresee a major increase in traffic flow after the construction period and the compressor is online. (See Exhibit G). 3. Garfield Cotmty Vegetation Management: See Exhibit J. Middle Fork Compressor Station BOCC -08115105 Page5 4. Garfield County Oil and Gas Auditor: In the "Impact Statement" section and elsewhere where appropriate, I would recommend that the applicant indicate that they will also comply with the COGCC's noise limits in addition to the CRS citation provided. Currently, both sets of limits are consistent, however, there is the potential that the COGCC may revise their noise rules and inclusion of a reference to the COGCC rules will ensure compliance with both. (See Exhibit F). 5. Grand Valley Fire Protection District: No objections to the use. (See Exhibit I) VII. 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 Compressor is considered to be an unmanned facility. The operation of the facility requires no water or sanitation services since it is an unmanned operation. 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 application states that the Compressor, once constructed, is expected to generate an average of 4 pick·up trips per day into and out of the facility. Most of this truck travel will be coming from and going back to drilling sites on the North Parachute Ranch property on private roads constructed by the industry or from Parachute on CR 215. The Garfield County Road and Bridge Department has no comments or requests for this application. The road to the Compressor site is an existing road that meets the County's standards and the County does not foresee a major increase in traffic flow after the construction period and the Compressor is online. No improvements to CR 215 are necessary as a result of this Compressor. 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 Middle Fork Compressor Station BOCC -08115105 Page6 The property is located in an extremely secluded portion of the property which is practically screened by adjacent steep topography and is located approximately 3 miles from the nearest residence. It cannot be seen from CR 215. As noted earlier, the proposed use will have relatively limited impact to surrounding properties. It is situated in a remote private location on the property such that it is situated at the end of a dead-end county road which is used primarily for industrial traffic serving the existing industrial uses in the area with very limited general population traffic. Further, the site itself is situated in an industrial area already characterized by intense industrial activity from the oil shale exploration I processing activities. No screening is necessary as it is already screened by steep topography. While no lighting is proposed, any future lighting shall be directed inward and downward towards. The Applicant plans to paint all the equipment beige in order to better blend in with the surrounding environment. Section 5.03.07 llndustrial 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, streamjlow or ground water. Response The facility site has been designed to insure protection of ground water and nearby streams through the development and implementation of a Storm Water Management Plan specific to the area which is contained at the rear of the application. Staff notes that while this plan is specific to the Compressor site, Encana has also submitted a larger Storm Water Management Plan for the general area. Further, containment facilities are designed into the facility for any hazardous material stored or used during operations. There will be no sewage or solid waste generated on the site. (B) Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare or vibration, or other emanations. Response Compressors produce considerable volumes of noise and vibration but whose acceptable levels are regulated by the Colorado Revised Statutes. The application states the Compressor is initially planned to be powered by natural gas which will not exceed the noise or vibration limits set forth by the State of Colorado Revised Statute 25-12-103. EnCana plans to convert the new compressor to electric powered motors as produced natural gas volumes increase and as economics warrant and Middle Fork Compressor Station BOCC-08115105 Page 7 those negotiations are underway with Excel Energy to provide three phase power service to the proposed facility site. Noise generated will have very little impact on adjacent properties since the compressor is located in a canyon-like area that will prevent any sound from traveling as well as being located well within the . boundaries of the subject property far from adjacent properties. In any event, EnCana shall adhere to the noise standards specified by the Colorado Revised Statutes and the Colorado Oil and Gas Conservation Commission rules. Given the remote location of the new facility, Staff agrees that noise will not be a nuisance to area residents. (C) Impacts on wildlife and domestic animals through the creation of hazardous attractions, alteration of existing native vegetatii>n, blockade of migration routes, use patterns or other disruptions. Response The site is located within winter rangeland for mule deer, elk, and turkey as identified on the Division of Wildlife's wildlife distribution maps. Staff referred the application to the Department of Wildlife (DOW) which provided no comments on the proposal. The Applicant plans to fence the entire site to minimize conflicts with wildlife. (D) Affirmatively show the impacts of truck and automobile traffic to and from such uses and their impacts to areas in the County. Response As noted earlier, the Compressor, once filly operational, is expected to generate an average of 4 pick- up trips per day into and out of the facility because most of the monitoring of the Compressor's performance will be done remotely. Also as mentioned above, most of this truck travel will be coming from Parachute on CR 215 which can accommodate the trips according to the Road and Bridge Department. The Garfield County Road and Bridge Department has no comments orrequests for this application. The road to the new compressor site is an existing road that meets the County's standards and does not foresee a major increase in traffic flow after the construction period and the compressor is online. No improvements to CR 215 are necessary as a result of this compressor station. (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. The proposed facility will not encroach upon existing setbacks or reduce current separation distances to abutting properties. Staff Middle Fork Compressor Station BOCC-08115105 Page8 agrees that the existing facility is located well within required setbacks and is sufficiently separated from adjacent properties in all directions. (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/or 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; 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. Staff recommends the Applicant, as a condition of approval, obtain an approved "Weed Management and Revegetation Plan" from the County Vegetation Manager that specifically addresses weed management and revegetation of the site. This plan needs to quantify the amount of surface area to be disturbed by the Compressor construction. Once this is done we will be able to determine an amount for a revegetation security. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It is the responsibility of the Applicant to contact the County, upon successful revegetation establishment, to request an inspection for bond release consideration. (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 specifu:ations 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 Middle Fork Compressor Station BOCC -08115105 Page9 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. " Tue Application contains a Performance Bond for $50,000 filed with the COGCC for an E&P Waste Facility. However, note this BOND is not specifically for the Compressor and is for E&P waste only such as an evaporation pond. Tue Board may wish to consider some type of security intended to address proper reclamation, closure and abandomnent of such 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 enviromnental 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. (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 fire codes and written recommendations I 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; Middle Fork Compressor Station BOCC -08115105 Page JO (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. (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. Staff Response Should the Board approve the request for the Compressor Station, Staff suggests the industrial performance standards be considered conditions of approval as they are specifically intended to ensure that any industrial use such as the proposed Compressor function in accordance with the proper best management practices and within the parameters of the State Statutes. 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 Middle Fork Compressor Station BOCC 08115105 Page 11 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 meaningf uL Upon the completion of each review, the Commissioners may determine that the permit operations are in compliance and continue the permit, or di!termine 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 VIII. 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. IX. STAFFRECOMMENDATION Due to 1) the limited nature of potential impacts to surrounding properties, 2) the remote location of the property such that it is situated at the end of a dead-end county road which is used primarily for industrial traffic serving the existing industrial uses in the area with very limited general population traffic, 3) and the fact that the site itself will be situated in an industrial area already characterized by intense industrial activity from the oil shale exploration I processing activities, Staff recommends the Board approve the request for a Special Use Permit for Processing and Material Handling ofNatural Resources for a Compressor on the North Parachute Ranch with the following conditions: 1. 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. Middle Fork Compressor Station BOCC-08115105 Page 12 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 International Fire Code as the Code pertains to the operation of this facility. 4. Prior to the issuance of a Special Use Permit, the Applicant shall submit the following items to the Count Vegetation Manager for approval prior to the issuance of a Special Use Permit. 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. 5. Volume of sound generated shall comply with the standards set forth in the Colorado Revised Statutes. 6. Vibration generated: the Compressor 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. 7. Emissions of smoke and particulate matter: the Compressor shall be so operated so as to comply with all Federal, State and County air quality laws, regulations and standards. 8. Emission of heat, glare, radiation and fumes: the Compressor 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. 9. Any storage area for uses not associated with natural resources shall not exceed ten (10) acres in size. l 0. Any lighting of storage area shall be pointed downward and inward to the property center and shaded to prevent direct reflection on adjacent property. Middle Fork Compressor Station BOCC -08115105 Page 13 11. 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. 12. The Applicant shall provide a copy of the appropriate bond supplied to the Colorado Oil and Gas Conservation Commission (COGCC) intended to guarantee reclamation of the Compressor site once the life of the Compressor has ended prior to the issuance of a Special Use Permit. 13. That all proper building permits are obtained for the structures associated with the operation of the Compressor prior to the issuance of a Special Use Permit. X. RECOMMENDED MOTION "I move to approve a Special Use Permit for a Natural Gas Compressor Station for EncanaOil and Gas USA, Inc with the conditions provided by Staff."