Loading...
HomeMy WebLinkAbout2.0 BOA Staff Report 10.08.2007• Exhibits (10/08/07) — Unimin Corp. Exhibit Letter (A to Z) Exhibit A Proof of Mail Receipts B Proof of Publication C Garfield County Zoning Resolution of 1978, as amended D Staff Memorandum E Application F Letter from Scott Grosscup, Balcomb and Green, PC, dated September 26th, 2007 G Letter from Ken Jamroz, Director of Transportation Operations Unimin Corporation and attached letters of support H Applicant Presentation • Unimin Special Use Permit Project Information and Staff Comments BOCC 10/08/2007 CR REQUEST APPLICANT / OWNER LOCATION WATER/SEWER EXISTING ZONING ADJACENT ZONING PARCELNO. Special Use Permit to allow deviation from maximum height requirement within the Drinking Water Constraint Zone Union Pacific (Unimin Corporation, Lessee) 21630 Highway 6 & 24, Rifle, CO N/A Drinking Water Constraint Zone Overlay Resource Lands Zone District Special Use Permit -Commercial Park City of Rifle -Light Industrial, Resource Lands, Agricultural Residential Rural Density 217523200141 -i- REQUEST The Applicant has submitted a Special Use Permit to allow the construction of three (3) storage silos exceeding the identified maximum height requirement (40ft) within the Drinking Water Constraint Zone (DWC), deviation from this standard is allowed if approved by the Board of County Commissioners (the Board) as a Special Use Permit (§3.14.07). • •' BOCC 10/08/2007 CR As proposed the silos will be constructed at approximately eighty-nine (89) feet in height excluding the proposed elevator. The total height of the new silos including the elevator will be one hundred thirty-two (132) feet in height. The Applicant has cited §5.06.01 regarding the exemption of elevator cupolas and has requested that the elevator not be included in measuring the height of the proposed structures. Staff's interpretation of "Elevator cupola" is a dome structure situated on top of another structure to allow room for mechanical components of an elevator. This is an architectural term associated with inhabitable structures. When determining the height of the proposed storage silos, the measurement shall include the height of the proposed elevator. (One hundred and thirty-two feet) 2 • �l BOCC 10/08/2007 CR The requested one hundred thirty-two (132) feet structure results in an increase of 230% from the maximum building height requirement. 250 - 200 - 150 100 - 50 - 0 230 1 2 3 o Building Height o Percentage of Increase I BACKGROUND A Special Use Permit allowing a Commercial Park on the subject property was approved on August 5th, 1980. Resolution No. 80-178 identifies material handling and storage areas as uses allowed under the approved Special Use Permit. LJnimin currently utilizes railcars for storage and a conveyor for distribution of sand used by the Oil and Gas Industry. The proposed increase in storage capacity is not expected to increase daily traffic to and from the site. II § 5.03 Review Standards 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; Staff Finding The proposed operation is located within the DWC. Water is not utilized in conjunction with the existing storage and material handling facility. Bottled water is provided on-site when needed. 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; Staff Finding During the site visit conducted by Staff the Applicant explained the current operation. Trucks arrive at the facility, form a line and utilize the existing conveyor to load sand into 3 • �I BOCC 10/08/2007 CR the trucks. The intent of the proposed storage silo is to expedite the loading process with less down time for the delivery vehicles. It was represented that an increase in traffic to and from the existing facility will not occur as a result of this Special Use Permit. 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; Staff Finding The existing distribution facility is located within an approved "Commercial Park". Adjacent uses include similar storage activity within the Commercial Park. The subject property is adjacent to the City of Rifle, CO. The City's adjacent zoning is Light Industrial. The Applicant has suggested painting the proposed storage silos to reduce the visual impacts. 1-70 is at a higher elevation than the existing Commercial Park. Screening the proposed silos will not eliminate visual impacts from the 1-70 corridor. (south view from 1-70) 4 i •' BOCC 10/08/2007 CR III GAFIELD COUNTY COMPREHENSIVE PLAN The subject property is situated within Study Area 3 of the Garfield County Comprehensive Plan and is designated as Outlying Residential. As Identified in the Comprehensive Plan the subject property is situated within the visual corridor. The Visual Corridor definition is based upon significant view sheds or natural features, distance from a major travel corridor, and topographic conditions that define sight distance from a major roadway. 1-70 serves as a linear gateway to the rest of the County and it provides visitors to Garfield County with their first impression. This impression also assumes the rest of the County is treated in the same manner regarding appropriate land use or associated mitigation of land uses. An unmitigated or inappropriate land use only detracts from the natural assets / resources of the County. The Applicant's request is not in compliance with the Comprehensive Plan. (visual corridor) 5 • BOCC 10/08/2007 CR IV ADJACENT USES Adjacent uses include the Holcim storage facility and Frac Tech storage silos. A survey conducted on behalf of the Applicant by Sexton Survey represents that the existing cement storage facility is approximately one hundred (100) feet tall and was previously approved by the Board. The existing Frac Tech silos are approximately forty-nine (49) feet tall and exceed the identified maximum height requirement. Approval to exceed the maximum height requirement within the DWC was not obtained. Frac Tech will receive notification regarding this zoning violation. V SUGGESTED FINDINGS 1.) That proper public notice was provided as required for the hearing before the Board of County Commissioners; 2.) That the hearing before the Board of County Commissioners was extensive and complete and that all interested parties were heard at that meeting; 3.) The Application is in conformance with Garfield County Zoning Resolution of 1978, as amended; 4.) That for the above stated and other reason, the proposed Special Use Permit is not in the best interest of the health, safety and welfare of the citizens of Garfield County; VI STAFF RECOMMENDATION Staff recommends denial of the proposed Special Use Permit allowing deviation from the maximum height requirements within the Drinking Water Constraint Zone as represented. The request to increase the maximum height requirement by 230% within the identified visual corridor is inappropriate. Should the Board move to approve the request Staff recommends that a height limitation consistent with the adjacent legal uses be considered. (Cement storage facility — 100.6 ft) 6 EDWARD MULHALL, JR. SCOTT BALCOMB LAWRENCE R. GREEN TIMOTHY A. THULSON DAVID C. HALLFORD CHRISTOPHER L. COYLE THOMAS J. HARTERT CHRISTOPHER L. GEIGER SARA M. DUNN DANIEL C. WENNOGLE SCOTT GROSSCUP JORDAN MAY Via Internet • • BALCOMB & GREEN, P.C. ATTORNEYS AT LAW P. 0. DRAWER 790 818 COLORADO AVENGE GLENWOOD SPRINGS, COLORADO 81602 TELEPHONE: 970.94 5.6546 FACSIMILE: 970.945.9769 www.balcombgreen.com September 26, 2007 Craig Richardson Senior Planner Garfield County Building and Planning Department 108 8t' Street, Suite 401 Glenwood Springs, CO 81601 EXHIBIT KENNETH BALCOMB (1 920-2005> OF COUNSEL: JOHN A. THULSON Re: Special Use Permit Application for Union Pacific — Unimin Dear Craig: I am sending you the results of the survey of the heights of the buildings on the adjacent properties and diagram placing Unimin's proposed silos in perspective. The base of the new silos will be at approximately the same elevation of the railroad tracks on the property. We might also note that this site is down gradient from Interstate 70 and the frontage road. From the ground to the top of the silos is 89 feet. We would also like to point out section 5.06.01 of the Garfield County Zoning Resolution that states that the height limitations of the Resolution do not apply to elevator cupolas. Thus, assuming that the silos are covered by the code, the height for purposes of this application should only be measured to the top of the silos and not include the elevator. Sexton Survey measured the height of the various structures in the immediate vicinity of the property. The existing Holcim cement plant is 100.6 feet tall from base to top. The top of the largest silo measured at the top of the green box on the silo stands at roughly 82.4 feet. Also in the immediate vicinity are the yellow and green silos operated by Frac Tech, which are roughly 49.2 feet tall. k171iwnvn Corptir IWi.N.m V -t 07 Jur • • BALCOMB & GREEN, P.C. ATTORNEYS AT LAW September 26, 2007 Page 2 We took GPS coordinates of the property and determined that the base of the cement plant is approximately 5 feet higher in elevation than the current sand un -loader facility. When this decrease is considered, the total height of the silos will approach the total height of the largest silo at the cement plant. Additionally, the silos will be almost twice as far from Interstate 70 than the cement plant, making them appear smaller to the eye. As we have discussed, there are a number of structures in the vicinity, such as power lines and the gas flare, that exceed the height limitations. Finally, with respect to painting, we would propose that the silos be painted in earth tones such as a tan color to best blend in with the surrounding area. If you have any questions, please feel free to contact me at your convenience. Very truly yours, BALCOMB & GREEN, P.C. By cc: Ken Jamroz Scott Balcomb, Esq. Encls. Scott Grosscup • urnmin Unimin Corporation 258 Elm Street, New Canaan, CT 06840 Phone: 203-966-8880 Fax: 203-966-3453 or 203-972-1870 Date: September 10, 2007 Craig Richardson Senior Planner Garfield County Building and Planning Department 108 8th Street, Suite 401 Glenwood Springs, CO 81601 Re: Unimin Corporation Special Use Permit Request Dear Craig: EXHIBIT y I wanted to thank you for taking the time to visit Unimin's leased property in Lacy Colorado, the site of Unimin's proposed storage silos. In preparation for the visit, I wanted to provide you with some background on the project and why Unimin is proposing to build the particular structures identified in the Special Use Permit Application. First, Unimin supplies industrial materials that are used in various manufacturing processes around the world. In Garfield County, we are the primary, if not only, provider of sand to the oil and gas industry that is used primarily in the "fracing" process. We move hundreds of thousands of tons of sand a year. Last year alone, we shipped approximately 250,000 tons of sand by rail from our deposits in Minnesota to our Lacy facility. The sand is then trucked from this terminal to the various gas well sites in and outside the county. The industry has very specific requirements about the type of silica sand that it will use in the fracing process. The sand must meet certain size and quality requirements and also be clean and dry. At the present time, sand is transported to our site where it is stored in rail cars before it can then be transferred, one -at -a -time, to the waiting semi- trailers and then hauled off to where it is ultimately re -injected into the ground. As you know, Unimin is proposing to build three storage silos that will allow it to store up to 6,000 tons of this material. At the present time, our only ability is to store this material in the rail cars that deliver it. The new storage silos will allow us to accommodate shipping schedules and provide on-site storage. Glass Sands • Frac Sands • Foundry Sands • Foundry Customix • Ground Silica • Feldspar • Nepheline Syenite • Kaolin High Purity Quartz • Microcrystalline Silica • Dolomite • Olivine • Southern Bentonite • Specialty Sands • Ball Clay • unimrn Unimin Corporation 258 Elm Street, New Canaan. CT 06840 Phone: 203-966-8880 Fax: 203-966-3453 or 203-972-1870 • Due to the logistical bottlenecks that we experience, running out of sand can and does occur. This causes our customers to go to other states or the Front Range in search of sand while we arrange for the new rail cars to be moved onto the site. Additionally, the new silos will allow for up to three trucks to fill with sand at once, up from our one -at -a -time practice, greatly reducing wait times and lines that often occur. At present,on a good day, we can process about seven to eight trucks an hour. Even at this pace, we see long lines at the terminal as we can simply not meet the industry's demands. These lines have been known to back out all the way to the county road. Reducing wait times should have the ancillary benefit of reducing truck traffic on county roads as fewer trucks will be needed to provide the same amount of sand — i.e., the customer will not need two trucks, one to deliver and one to wait in line, but can use only one vehicle to deliver the material. These proposed silos are also specially designed to meet the needs of the product. Ninety percent of the sand we deliver must be a certain size. When sand is allowed to roll out over a long distance, the larger particles migrate to the sides. Much like pouring sand out of a bucket, the larger particles go to the sides while the smaller sand forms the top of the cone. This migration can cause the product to be "off spec" and unusable. Thus, the diameter of the silo is very important to reduce the potential that the product becomes unusable. Unfortunately, because we are limited by the diameter of the silo, we can only maximize storage by building the silos taller. To meet the storage requirements, industry demand and product needs, we are proposing to build three silos each 89 feet tall. In order to fill these silos, we must then also construct one bucket elevator that will be an additional 43 feet above the silos. While in excess of the particular district's height limitation, it is not completely out of character for the area, which is a rail road unloading and storage area. On the adjacent property, leased by the Holcim Cement Company, are several white silos that are 94 feet tall from top to bottom. A gas flare structure 135 feet tall is also nearby as well as a number of smaller green silos with yellow tops. We might point out that there are also several silos down the road near Parachute that are approximately 94 feet tall with elevators that approach 160 feet tall and large power lines approximately 180 feet in height. Notwithstanding the surrounding area, we would appreciate your thoughts on how to best mitigate the visual impact of these structures. Attached to this letter are copies of a number of letters of support that we have received from various parties that are interested in seeing this project come to Glass Sands • Frac Sands • Foundry Sands • Foundry Customix • Ground Silica • Feldspar • Nepheline Syenite • Kaolin High Purity Quartz • Microcrystalline Silica • Dolomite • Olivine • Southern Bentonite • Specialty Sands • Ball Clay • unimrn Unimin Corporation 258 Elm Street, New Canaan, CT 06840 Phone: 203-966-8880 Fax: 203-966-3453 or 203-972-1870 • completion. These letters all express the need for more storage and problems that these entities face when forced to leave the county to search for sand. I look forward to meeting with you next week and discussing our project. Your en Jamr Directo ransportation Operations UNIMIN Corporation Glass Sands • Frac Sands • Foundry Sands • Foundry Customix • Ground Silica • Feldspar • Nepheline Syenite • Kaolin High Purity Quartz • Microcrystalline Silica • Dolomite • Olivine • Southern Bentonite • Specialty Sands • Bail Clay • • UNION PACIFIC August 21, 2007 The Honorable John Martin, Chairman The Honorable Larry McCown The Honorable Tresi Houpt Garfield County Commissioners 108 8th Street, #213 Glenwood Springs, CO 81601 Dear Commissioners Martin, McCown, and Houpt: Richard M. Hartman Special Representative to the President I am writing to lend Union Pacific's support to the project Unimin Corporation is proposing at Lacy, Colorado, to construct three sand storage silos. This project is to be completed on land that Unimin leases from Union Pacific and is an extension of land they have leased from us for a number of years. We have thoroughly reviewed the plans finding them satisfactory that they meet all of our engineering guidelines for new construction. As you know, this region of Colorado has experienced rapid growth in the past few years due to the increased drilling that is taking place. We are projecting that Unimin will ship approximately 2,600 carloads of sand in 2007 from their Minnesota sand plants to Lacy, and this business is expected to grow in the future. When completed, this project, which will add 6,000 tons (60 railcars) of storage to this area, will be a positive not only for Unimin and Union Pacific but the entire region. Additional storage will allow Unimin to process railcars more timely and consistently which will reduce the amount of time the cars remain in our Grand Junction yard or at Lacy. In addition, a more consistent unloading schedule will reduce the peaks and valleys of local truck deliveries from the sand terminal to the drilling sites. By having a supply of sand on hand at all times Unimin will be able to load trucks more consistently. This will allow them to load trucks throughout the week and not just on the days they receive a switch from Union Pacific. We currently switch their terminal on Tuesdays, Thursdays, and Saturdays. We would appreciate your favorable consideration of this worthwhile project. Should you have any questions for Union Pacific about this project, please contact Steve Nielsen, Senior Business Manager, at (610) 530-1910 or via e-mail at sinielsen(aiup.com. Sincerely, t CMC - UNION PACIFIC RAILROAD 2120 Care): Avenue Suite 410 Cheyenne, WY 82001 ph. (307) 778-3359 • •I August 17, 2007 Garfield County Commissioner c/o Balcomb & Green, P.C. Attorneys at Law P.O. Drawer 790 818 Colorado Avenue Glenwood Springs, CO 81602 Re: Unimin SUP Application Dear County Commissioner: BJ Services Company, U.S.A. (BJ) provides goods and services to the oilfield stimulation fracturing market segment and has made a long term commitment to Western Colorado oil and gas development. BJ supports Unimin's endeavor to expand their Lacy Terminal. Unimin is a key supplier for frac sand proppants to the oil and gas stimulation market. We believe the Lacy Terminal expansion will play a strategic role in the future development of the oil and gas opportunities for Western Colorado. BJ and Unimin have had a long history working together in providing well stimulation services to the oil and gas industry. It has been BJ's experience that Unimin has employed best business practices in maintaining and operating their terminals and BJ feels confident their Lacy Terminal will be no exception. We look forward to doing business with Unimin at their expanded Lacy Terminal. Regards, W:cf2faf Michael Dory Senior District Manager BJ Services USA 2403 River Road Grand Junction, Colorado 81505 • /I Well Services 783 22 Road GrandJunction, CO 81505 Tel 1970)683-4000 August 29, 2007 To: John Martin, Chairman Larry McCown, Commissioner Tresi Houpt, Commissioner Garfield County Commissioners 108 8th Street # 213 Glenwood Springs, Colorado 81601 Re: Unimin sand terminal expansion Sirs, Schlemberier The Unimin sand terminal located off the West Rifle exit in Garfield County, CO is a strategic part of a supply system bringing materials into the area to support the gas drilling industry. Through the years Unimin and their terminal operator Goodrich Mud Company have supplied frac sand needed to stimulate production in gas wells across the Westem Slope. The fantastic growth in the Piecance Basin has led to record volumes through this terminal. Track extensions in 2004 and 2006 increased the storage capacity of the Lacy terminal, but the growth rate of the local industry, and especially the commitments being made by major industry producers, indicate it is time to once again improve the supply infrastructure. The addition of the proposed storage silos will mean Tess congestion and help to smooth out the flow of both incoming rail cars and outgoing trucks. Schlumberger has had Tong -term positive relationships with both Unimin and Goodrich Mud Company, and we are very sincere in offering our support for this expansion project. Thank you for your consideration, Stephen G. Mullinax Schlumberger Well Services USWest Supply Manager • /1 August 13, 2007 To: Garfield County Commissioners John Martin, Chairman Larry McCown, Commissioner Tresi Houpt, Commissioner From: Russ Justice Brady Trucking, Inc. 356 27 '/� Rd. Grand Junction, Colorado 81501 To Whom it may concern; I am writing this letter in support of a Rail Served Sand Silo Storage area at Lacy, Colorado. We employ approximately 35 people in this area. We have hauled from this rail site for several years. There are countless hours spent waiting on rail switches so storage in this area would be most welcomed, not to mention the loading of trucks in a timely manner and therefore getting our drivers home earlier each day. Also it would stop a lot of trucks being sent to Brighton, Rock Springs, Canada, New Mexico and several other places chasing sand. The Safety aspect alone is reason enough to put these silo's in place. We can do twice the work with less trucks if this happens. nkyou — 111N — Russ Justice_ Operations Manager Brady Trucking, Inc. • �r September, 5, 2007 Mr. Larry McCown Garfield County Commissioner 108 8th Street, Suite 213 Glenwood Springs, CO 81601 Larry, I enjoyed our visit during our outing at the Energy Invitational Golf Tournament, and appreciate your interest and concern of Energy development of Garfield County. You have always been willing to listen to our industry, and offer good pointed direction on issues concerning the issues that face our industry and the citizens of Garfield County. The balanced approach you take has greatly benefited Garfield County. I am asking for your support of Unimin's proposed 6000 Ton Sand Silo at the Lacy Terminal. As you know this is the Industry's primary point of sand delivery and the site is used by Halliburton and most of our competitors to off-load Frac sand. The increased activity in the area has us bottlenecked at this delivery point, with excessive wait times to load our trucks. The silo will naturally provide us with storage, but more importantly, it will allow us to reduce waiting time to load. The overhead silo will be able to load 2 trucks every 15 minutes versus 1 truck every 30-45. This will help reduce our need to have additional drivers because we will be logging less DOT time and therefore we will need fewer drivers to accomplish sand delivery. Again, I appreciate what you and the Garfield County Commissioners do for the Energy Industry. We cannot succeed without your support. Sincerely, Larry D. Kent District Manager Halliburton Energy Grand Junction, CO August 28, 2007 John Martin, Chairman Larry McCown, Commissioner Tresi Houpt, Commissioner Garfield County Commissioners 108 8th Street #213 Glenwood Springs, Colorado 81601 Dear Garfield County Commissioners My name is Robert Goodrich. I am the local manager for an independent company (The Goodrich Mud Company) that operates the UNIMIN sand terminal in West Rifle. I am currently a proud resident of Rifle, CO and could not be happier with my place of residence, professionally and personally! The terminal is next to at least seven very large commercial buildings that are surrounded by cranes, heavy equipment, rental trailers, tractor trailers, off -colored silos, and pipe -yards. The closest residential subdivision/park is 3 miles away. The consumer demand for energy is not decreasing. I can only imagine that streamlining the production of it is in the best interest of all citizens' whether they are connected to the Oil and Gas Industry or not. When we run out of sand, the cost to get it goes up, traffic increases, productivity and safety decreases. Our supply affects every single energy company out here! UNIMIN silos will drastically reduce the odds of running out of sand. It will relieve myself and all involved in the transport and use of our product of the wicked hours and stresses often found in our current storage and loading capabilities. I love my family and the great company we work for. I am a new resident to Garfield County, but we are certainly not new to working here. We are currently in our 12th year of business in the exact same location in West Rifle. I have nothing but strong support for the Unimin silo project. I sincerely hope that you may see the positive impact that it will have on myself as well as the many people who are directly involved in the fracturing industry in Colorado. Thank you for you time, Sincerely, Robert Goodrich The Goodrich Mud Company • . Commissioners of Garfield County, U.S. Transport, formerly Havens Trucking, is in total support of putting sand storage at the Unimin Lacy terminal. We have had a truck terminal in Rifle for several years that primarily deals with hauling frac sand from Lacy to well sites. The company currently has sixteen truck that deal with this part of our business. With the increase in drilling and gas production, we have seen the traffic at Lacy double, sometimes triple, at times creating huge bottlenecks with trucks backed up to the highway. Without sand storage the trucks are commonly waiting on the train or they are diverted to other places to get sand, at times traveling hundreds of miles to get a load. With the shortage of drivers and equipment it is almost impossible to keep up with the customers frac schedules. We are constantly moving other trucks in and out of the area trying to help the customer, but creating a logistical nightmare for the company, oftentimes costing the company a lot of money. Under the current DOT regulations the drivers waiting to load waste many hours each day. In other places where trucks load from storage tanks we see very little of this wasted time, thus utilizing the drivers and equipment more efficiently and keeping costs in check. Also it should be noted that if the drivers aren't pushing to make up for wasted time they are usually safer on the road. Thank you for your consideration of this matter. Te Sterr rry ett Operations US Transport 800-225-3438 CALFRAC__es WEIL SERVICES CORP. 1111111111.1111 September 12, 2007 To Whom It May Concern: It has come to my attention that Unimin Corporation would like to erect fixed storage tanks at their terminal in Lacy, CO. As a customer of Unimin Corp. this proposal would be very beneficial to Calfrac and the oil industry in general. With this type of storage it would enable us to reduce the number of trucks sent into their terminal at one time therefore reducing traffic in and around Lacy. We at Calfrac depend on Unimin to supply us with fracturing sand. In the past there have times when Unimin ability to supply this sand to us because of issues with the railroad. If they had storage at the Lacy terminal it would allow us to continue operating without delay. �w1 Roy Montoya Manager, Material & Logistics Calfrac Well Services 717 17th Street Denver, CO 80202 717 17`" Ave. Denver, CO 80202 W Toll Free: 1-866-210-3822 • Fax: (303) 293.2939) • e-mail: rmontoya@calfrac.com • website: www.calfrac.com