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Home My WebLink About1.00 General Application Materials_PartBAppendix J: Copy of the Amended City of Rifle Ordinance 7-2018 Table of Contents CITY OF RIFLE, COLORADO ORDINANCE NO. 7 SERIES OF 2018 AN ORDINANCE OF THE CITY OF RIFLE, COLORADO, AMENDING ARTICLE II OF CHAPTER 13 OF THE RIFLE MUNICIPAL CODE PERTAINING TO THE RIFLE WATERSHED DISTRICT. WHEREAS, the City of Rifle ("Rifle" or the "City") is a home-rule municipality organized pursuant to Article XX of the Colorado Constitution and with the authority of the Rifle Home Rule Charter; and WHEREAS, Article II of Chapter 13 of the Rifle Municipal Code establishes the City's Watershed District and sets for the permitting and regulatory requirements within the Watershed District, as provided pursuant to the authority of Section 31-15-707, C.R.S.; and WHEREAS, the City has recently decommissioned its Beaver Creek Water Plant affecting the regulation of the Beaver Creek watershed and requiring amendments to Article II, Chapter 13 of the Rifle Municipal Code; and WHEREAS, the City desires to clarify prohibited and regulated activities in its watershed with amendments to Section 13-2-240 of the Rile Municipal Code; and NOW, THEREFORE, THE COUNCIL OF THE CITY OF RIFLE, COLORADO, ORDAINS THAT: 1. The City Council incorporates the foregoing recitals as conclusions, facts, determinations, and findings by the City Council. 2. Chapter 13, Article 2 of the Rifle Municipal Code is hereby amended as follows, with double underlined text added and strike lkreugh language deleted: Article II-Watershed District Division 1 -General Provisions Sec. 13-2-20. -Jurisdiction and map. The jurisdiction of the District shall extend over the territory occupied by the City waterworks and all reservoirs, streams, trenches, pipes and drains used in and necessary for the construction, maintenance and operation of the same, and over Bea>i,cer Creek, the Colorado River and all water sources and drainage areas tributary thereto for five ( 5) miles above the points from which water is diverted for use by the City. The District Map, with all notations, references and City of Rifle, Colorado Ordinance No. 7, Series of 2018 Page 2 of6 other information shown thereon, is incorporated herein as part of this Article. The official District Map is located and can be reviewed in the office of the City Clerk, and copies thereof are available on request at a cost as set forth in Appendix A to this Code. Sec. 13-2-30. -Definitions. Whenever the following words or phrases are used in this Article, they shall have the following meaning: **** Tributary means any watercourse, stream, creek, spring or drainage area which provides a source of supply to the City's potable water diversion points on Beaver Creek ans the Colorado River. **** Sec. 13-2-40. -Prohibited activities; permitted activities requiring notice. (a) It is unlawful for any person to cast, place, dump or deposit in any part of the City waterworks any substance or material which may injure or obstruct the same or tend to contaminate or pollute the water or obstruct the flow of water through the City's water facilities. For a distance of five (5) miles upstream from the points where the water supply is diverted, no person shall: ( 1) Throw, cast, put or deposit any pollutant or contaminant into or in close proximity to Beaver Creek, the Colorado River, or any of thew its tributaries or drainage areas; (2) Store or retain any offensive or unwholesome substance on any premises in such position that the substance or drainage therefrom may be carried by natural causes into BeErter Creek, the Colorado River; or any of thew ~ tributaries or drainage areas; or (3) Permit to flow into Beaver Creelc, the Colorado River, or any of thew ~ tributaries or drainage areas from any place or premises any foul or contaminating fluid . (b) It shall be unlawful for any person to cause injury or damage to the City waterworks. (c) In addition to the general prohibitions of Sections 13-1-820, 13-1-830 of this Chapter and Subsections (a) and (b) above, it shall be unlawful for any person to engage in any of the following activities within the Watershed District, which activities the City Council finds pose a potential or threat of injury to the waterworks or polJution to the City's water supply, unless such person shall, prior to commencement of such activity, receive a permit for such activity under the provisions of this Article: O) C onstruction, mainten ance ancJmr operation of any sewa ge treatment dis pqs§.\ .system with an average des ign capacity greater th ,m 2.000 gallons per day; provi ded that City of Rifle, Colorado Ordinance No. 7t Series of2018 Page 3 of6 any sewage disposal system with an average design capacity less than or equal to 2,000 gallons per day is also subject to regulation under this Article if it is not installed, operated and maintained in compliance with all applicable laws, rules. regulations, permits, and Best Management Practices which condition is met if Garfield County regulations are adhered to, or is located within one hundred (100) feet of any watercourse. CanskUotion er installation of a sewage disposal s~rstem. (2) Construction, maintenance and/or operatjon of a surface or subsurface tank that stores chemicals, chemical waste, biological nutrient or material, radioactive material, petroleum product, or any industrial. municipal or agricultural waste, excepting residential propane tanks and septic systems. Q~ Excavation, dredging, filling, grading. or compaction of any topsoil. sand. rock, dirt, or other material over an area in excess of 0.5 acre. The area disturbed by the construction and maintenance of a driveway to a single family residence shall not be included in the calculation of the 0 .5 acre threshold under this section. E1wavation, gradiag, filling or s1:1rfaoiag. (9) Removal of any vegetation or trees by any method over an area in excess of O.~ acre. Remo•,ial of '<'egetatiaa. (4) Timber har.•esting. (5) Any surface or subsurface mining or mineral resource extraction. including any and all oil and/or natural gas drilling. extraction or mining. Drilliag operations. (6) (7) Alteration, improvements or modifications of any water drainage courses. S1:1rfaoe and sl:lhs1:1rfaee miniAg operations. (18) Use of any restricted use pesticide <RUP), herbicjde fungicide. rodenticide. insecticide or any other chemical for eradication or control of any plants or animals that is within one hundred (1 OQ) feet of any watercourse. Spraying or using herbioides. (8) Construction of any impervious surface with an aggregate area greater than 25,000 square feet that could direct any contamination or pollutant toward watercourse or Town waterworks. (9) Using, handling, storing or transmitting toxic or hazardous substances, including but not limited to radioactive materials. (I 0) Using, handling, storing or transporting flammable or explosive materials, except for domestic purposes or within vehicular fuel storage tanks. City of Rifle, Colorado Ordinance No. 7, Series of2018 Page 5 of6 (9} Modifications to any watercourse for fisheries improvements or riparian habitat creation and/or restoration pennitted by the Anny Corns of Engineers. ( 1 O} Emergency riparian work. provided that any permanent work shall be regulated if otherwise regulated by this ordinance: and (11) Wildland fire mitigation and emergency firefighting activities; and (12) Drilling of domestic wells serving less than (3) residences. (1) Stock grazing (2) Road ma-iatenance aml ifflJ:lf0¥es b~· go:i.•ernffleatal entities. The written notice required under this Subsection shall include the name and address of the person undertaking the activity, a legal and common description of the location of the proposed activity, a description of the proposed activity, a discussion of the potential impacts upon the City's waterworks or water supply, and such other information as the City may require. The purpose of this notice requirement is to allow the City an opportunity to protect the waters of the District by suggesting a best management practice for such activity prior to its commencement. (e) In the event that any activity not listed in Subsection (c) above is being conducted in such a manner that the City Council finds that there exists a foreseeable risk of injury to the City's waterworks or pollution to the City's water supply, the person responsible for such activity shall be notified by the City of such finding and the City may require that the activity cease and desist until a permit is obtained for the activity under the provisions of this Article. INTRODUCED on May 16, 2018, read by title, passed on first reading, and ordered published by title as required by the Charter. INTRODUCED a second time at a regular meeting of the Council of the City of Rifle, Colorado, held on June 6, 2018, passed without amendment, approved, and ordered published in full as required by the Charter. Dated this ~day o~ 2018. ATTEST: BY:~ ~ - Mayor Appendix K: Alternative Location Analysis Table of Contents Alternative Location Analysis – 304.b.(2) South Leverich 13-09 Oil and Gas Location Loc ID #335045 July 2022 TER Page 2 of 14 INTRODUCTION TEP Rocky Mountain LLC (“TEP”) has prepared the following Alternative Location Analysis (“ALA”) for the South Leverich 13-09 pad in compliance with the requirements listed under the Colorado Oil and Gas Conservation Commission (“COGCC”) Rule 304.b.(2). The South Leverich 13-09 pad is an existing Oil and Gas Location within Lot 3 and Lot 4 of Section 13, Township 7 South, Range 94 West, 6th P.M. and currently supports production operations for four (4) existing natural gas wells. TEP is proposing to reconstruct and expand the existing South Leverich 13-09 pad to develop twenty-one (21) proposed natural gas wells. During the development planning process, TEP reviewed the ALA Criteria outlined under COGCC Rule 304.b.(2).B and determined that criteria i., Residential Building Unit (“RBU”) within 2,000 feet of the Working Pad Surface (“WPS”), and vi.aa, Oil and Gas Location within a surface water supply area, were met for the existing South Leverich 13-09 pad. TEP initiated an ALA, which includes the evaluation of four (4) alternative proposed Oil and Gas Locations within the vicinity of the proposed South Leverich 13-09 pad. The ALA prepared by TEP includes the evaluation of all ALA criteria listed under Rule 304.b.(2).B, and the well location and siting requirements under Rule 604. Additionally, TEP evaluated each alternative based on landscape level characteristics (i.e. slope) and mineral development potential. PROPOSED OIL AND GAS LOCATION (TIER IV-A) The South Leverich 13-09 pad is an existing Oil and Gas Location located on private surface (Gordman Leverich, LLP) within Lot 3 and Lot 4 of Section 13, Township 7 South, Range 94 West, 6th P.M. From the existing South Leverich 13-09 pad, TEP would directionally drill twenty-one (21) proposed natural gas wells located within Sections 13 and 24 of Township 7 South, Range 94 West, 6th P.M., and Section 18 of Township 7 South, Range 93 West, 6th P.M. Of the twenty-one (21) proposed natural gas wells, nineteen (19) wells would be directionally drilled into Fee minerals and two (2) wells would be directionally drilled into Federal minerals (COC-63721). Please see the ALA Overview Map showing the Area of Mineral Development for the South Leverich 13-09 pad. Advantages 1) The South Leverich 13-09 pad is an existing Oil and Gas Location. New surface disturbance would be minimized. Construction of the Oil and Gas Location and associated support facilities will result in approximately 8.26-acres of surface disturbance, of which 7.13-acres would be classified as existing disturbance and 1.13-acres would be classified as new disturbance. 2) The location also maximizes mineral development potential and the use of existing infrastructure. 3) Maximizes the distance to RBUs while also maximizing the area of mineral development. The distance to the nearest RBU is 1,195 feet. 4) There are no building units within 1,000 feet of the working pad surface (WPS). 5) RBU owners have provided signed informed consent for this location. 6) A Surface Use Agreement (“SUA”) has been signed for the use of the South Leverich 13-09 pad. 7) The location would be located outside of High Priority Habitat (“HPH”). 8) The location is outside of Disproportionately Impacted Communities. 9) The location is within the External Buffer of the Beaver Creek surface water supply area; however, the City of Rifle Ordinance 7-2018 eliminated the Beaver Creek potable water diversion point and removed the City’s jurisdiction over Beaver Creek. Page 3 of 14 Disadvantages 1) The South Leverich 13-09 pad is located within 2,000 feet of four (4) RBUs. Potential impacts to public health, safety, welfare, the environment, and wildlife resources. The WPS of the proposed South Leverich 13-09 pad would be located approximately 1,195 feet from the nearest RBU. This RBU is occupied full time by the RBU owner. The second and third closest RBU are located 1,393 feet and 1,489 feet respectively from the WPS and are owned by TEP. Both are currently unoccupied and TEP currently does not intend to have a tenant on the property. The fourth closest RBU is located 1,582 feet from the WPS and is owned by the surface owner who has entered into a SUA with TEP. This RBU is not a full-time residence and is only occupied periodically during the year for recreational purposes. All RBU owners within 2,000 feet of the WPS have provided informed consent for the proposed Oil and Gas Location. The potential impact to RBUs is minimal since the WPS would be more than 1,000 feet from the RBUs. Potential impacts to RBUs include noise, light, odors, and air emissions originating from the Oil and Gas Location during construction, drilling, completions, and long- term production operations. These impacts have been addressed through proposed site specific mitigation measures and best management practices to eliminate or minimize potential impacts to receptors. The South Leverich 13-09 pad is located outside of all HPH boundaries listed in the COGCC 1200 Series rules. The nearest HPH is Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat, which is located approximately 73 feet from the Oil and Gas Location. Proposed operations on the South Leverich 13-09 pad are unlikely to impact Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat. However, vehicle truck traffic to the location will utilize the existing Garfield County Road 317A which traverses through Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat. TEP will be implementing mitigation measures along this section of the access road to minimize impacts to Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat during development of this location. Please see the Wildlife Protection Plan attached to the Form 2A for site specific mitigation measures planned for this location. The South Leverich 13-09 pad is located within the Beaver Creek surface water supply area as shown on the COGCC online map. However, as noted above, while the existing oil and gas location is within the external buffer of the surface water supply area, the Beaver Creek public water system intake is no longer in use by the City of Rifle. Please see Ordinance Number 7-2018 attached to the Form 2A for further details. Permitting Considerations TEP is required to permit this location through the COGCC via the Oil and Gas Development Plan (“OGDP”) process. TEP has obtained informed consent from the RBU owners within 2,000 feet of the proposed Oil and Gas Location and is permitting the South Leverich 13-09 pad in compliance with COGCC Rule 604.b.(1). The Relevant Local Government for the South Leverich 13-09 pad is Garfield County. A Garfield County Oil and Gas Permit is required prior to development of this Oil and Gas Location. TEP will be submitting the Garfield County Oil and Gas Permit application for the South Leverich 13-09 pad concurrently with the South Leverich 13-09 OGDP. TEP will provide the approved Garfield County Oil and Gas Permit to the COGCC upon approval of the application. Page 4 of 14 Conditions or factors that make this location unavailable There are no conditions known to TEP that would make the South Leverich 13-09 pad unavailable for development of the twenty-one (21) proposed natural gas wells. ALTERNATIVE LOCATION – 1 (TIER IV-B) Alternative 1 would be a new Oil and Gas Location located on private surface (Gordman Leverich, LLP) within Lot 2 of Section 13, Township 7 South, Range 94 West, 6th P.M. The location would be north of the South Leverich 13-09 pad and would be accessed via Garfield County Road 317A and an existing lease road. Alternative 1 would require the construction of a new Oil and Gas Location, access road, and pipeline corridor. Alternative 1 would also trigger an ALA due to the proximity to existing RBUs and the Oil and Gas Location would be located within a Public Water Supply Area (no longer in use by the City of Rifle). Additionally Alternative 1 would not fully develop the minerals proposed by the Form 2A. Based on these consideration Alternative 1 would be classified as a Tier IV-B location. The following advantages and disadvantages would apply to Alternative 1: Advantages 1) The location would be outside of all HPH boundaries. 2) The location would be outside of Disproportionately Impacted Communities. 3) The location is within the External Buffer of the Beaver Creek surface water supply area; however, the City of Rifle Ordinance 7-2018 eliminated the Beaver Creek potable water diversion point and removed the City’s jurisdiction over Beaver Creek. Disadvantages 1) There are three (3) RBUs within 2,000 feet of the WPS, with the distance to the nearest RBU (periodically occupied) at 1,038 feet. 2) Alternative 1 would require construction of a new Oil and Gas Location creating more new disturbance. The project would result in approximately 11.87-acres of surface disturbance, of which 3.15-acres would be classified as existing disturbance and 8.72-acres would be classified as new disturbance. 3) Alternative 1 would only provide for the development of seventeen (17) of the twenty-one (21) proposed well locations; fifteen (15) Fee wells and two (2) Federal wells. Please see the Well Siting Optimization Map included in Attachment A, Alternative Location Analysis Maps and Exhibits, for further details. Potential impacts to public health, safety, welfare, the environment, and wildlife resources. The Alternative 1 pad location would be within 2,000 feet of three (3) RBUs. The nearest RBU is located 1,038 feet from the WPS and is currently only periodically occupied by the owner (Gordman Leverich, LLP) for recreational purposes. The second closest RBU is located 1,689 feet from the WPS and is occupied full time by the owner. The third closest RBU is located 1,753 feet from the WPS and is occupied full time by the owner. Although, there is an overall reduction in the number of RBUs within 2,000 feet, there would be an increase in the number of occupied RBUs within 2,000 feet if this location were selected. Potential impacts to RBUs include noise, light, odors, and air emissions originating from Page 5 of 14 the Oil and Gas Location during construction, drilling, completion, and long-term production operations. These impacts could be mitigated with the implementation of appropriate mitigation measures. The Alternative 1 pad is located outside of all HPH boundaries listed in the COGCC 1200 Series rules. The nearest HPH is Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat, which is located approximately 116 feet from the WPS. Potential operations on the Alternative 1 pad are unlikely to impact Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat with the implementation of stormwater and reclamation best management practices. However, vehicle truck traffic to the location will utilize the existing Garfield County Road 317A, which traverse through Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat. TEP would implement mitigation measures along this section of the access road to minimize impacts to Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat during development. The Alternative 1 pad is located within the Beaver Creek surface water supply area as shown on the COGCC online map. While the Alternative 1 pad is within the internal buffer of the surface water supply area, the Beaver Creek public water system intake is no longer in use by the City of Rifle. Please see Ordinance Number 7-2018 attached to the Form 2A for additional details. It is unlikely for a spill or release to impact a public water supply system. Permitting Considerations TEP would be required to permit the Alternative 1 pad through the COGCC via the OGDP process. Since this location is within 2,000 feet of three (3) RBUs, TEP would be required to seek informed consent from all three (3) RBU owners per COGCC Rule 604.b.(1) or permit the location subject to COGCC Rule 604.b.(4). The Relevant Local Government for the Alternative 1 pad is Garfield County. A Garfield County Oil and Gas Permit is required prior to developing of this Oil and Gas Location since the Oil and Gas Location would be subject to an Alternative Location Analysis per COGCC Rule 304.b.(2).B. The Bureau of Land Management (“BLM”) would be required to complete an additional environmental assessment prior to approval of any associated Application for Permits to Drill since this alternative would develop Federal Minerals. Conditions or factors that make this location unavailable Development of the Alternative 1 Oil and Gas Location would require the execution of a SUA with the surface owner. TEP has approached the surface owner to determine if development of Alternative 1 would be an acceptable option. Since the surface owner of Alternative 1 is the same as the surface owner of the existing South Leverich 13-09 pad, the surface owner prefers the use of the existing South Leverich 13-09 pad over construction of a new Oil and Gas Location on the property. ALTERNATIVE LOCATION – 2 (TIER V-B) Alternative 2 would be a new Oil and Gas Location located on private surface (TEP Rocky Mountain LLC) within SW¼SW¼ of Section 13, Township 7 South, Range 94 West, 6th P.M. This location would be west of the South Leverich 13-09 pad and would be accessed via Garfield County Road 317A. TEP originally evaluated this location as a proposed site for development before the adjacent surface owner constructed a home on the adjacent property. Due to the proximity of the RBU, TEP elected to evaluate alternatives and determined that the South Leverich 13-09 pad may allow for development of minerals Page 6 of 14 originally proposed for development at the Alternative 2 location. Alternative 2 would require the construction of a new Oil and Gas Location, reconstruction of an existing access road, and construction of a new pipeline corridor. Alternative 2 would also trigger an ALA due to the proximity to existing RBUs and the Oil and Gas Location would be located within a Public Water Supply Area (no longer in use by the City of Rifle). The nearest RBU is located within 500 feet of the WPS and the RBU owner is unlikely to provide a waiver as required by 604.a.(4); therefore, a variance to Rule 604.a.(4) would be required. Additionally, Alternative 2 would not fully develop the minerals proposed by the Form 2A. Based on these consideration Alternative 2 would be classified as a Tier V-B location. The following advantages and disadvantages would apply to Alternative 2: Advantages 1) There would be a fewer overall number of building units within 2,000 feet of the WPS. 2) The location would be outside of all HPH boundaries. 3) The location would be outside of Disproportionately Impacted Communities. Disadvantages 1) Alternative 2 would require construction of a new Oil and Gas Location creating more new disturbance than is necessary to develop the proposed minerals. The project would result in approximately 43.11-acres of surface disturbance, of which 11.60-acres would be classified as existing disturbance and 31.51-acres would be classified as new disturbance. 2) Alternative 2 would only provide for the development of thirteen (13) of the twenty-one (21) proposed well locations; eleven (11) Fee wells and two (2) Federal wells. Please see the Well Siting Optimization map included in Attachment A, Alternative Location Analysis Maps and Exhibits, for further details. 3) Alternative 2 would be located within 500 feet of an existing RBU. This location would be subject to Rule 604.a.(4) and would require a written waiver from the RBU owner or approval of a variance by the Commission to Rule 604.a.(4). Based on limited conversations with the RBU owner, TEP believe that it is unlikely for the RBU owner to provide a waiver under Rule 604.a.(4). 4) Alternative 2 is located in close proximity to existing surface water (existing springs and potential wetlands) and existing domestic water wells. Please see Attachment A, Alternative Location Analysis Maps and Exhibits, and Attachment B, Alternative Location Analysis Data Worksheet for additional details. Potential impacts to public health, safety, welfare, the environment, and wildlife resources. The Alternative 2 pad location would be located within 500 feet of one (1) existing and occupied RBU. Per COGCC Rule 604.a.(4), no WPS will be located within 500 feet of a RBU without a SUA or waiver from the RBU owner. Since the WPS of Alternative 2 is located 438 feet from the RBU, it is unlikely that the RBU owner would provide a waiver agreeing to the siting of this location. Potential impacts to the RBU may include noise, light, odors, air emission, and dust. Noise and light impacts could be minimized through the use of mitigation measures such as sound walls and placement of equipment and lighting fixtures during drilling and completion operations. Odors and air emission could also be minimized through the use of water based/bentonitic drilling muds, green completion technology, and minimizing storage of fluids on location by installing pipelines to transport fluids to a remote location for initial Page 7 of 14 storage and measurement. Access to Alternative 2 would utilize the existing access road that passes by the RBU. During the initial phase of development, truck traffic on the access road passing by the RBU would significantly increase. Given the topography of the area, relocation of the access road would not be possible or would not allow significant alteration in the alignment to reduce noise, dust, and traffic on the access road. During long-term production operations, truck traffic could be minimized through the installation of a pipelines to transport fluids off location minimizing fluid hauling and activities on the Oil and Gas Location. During review of Alternative 2, TEP identified one potential wetland feature within the disturbance boundary of the proposed Oil and Gas Location per the National Wetland Inventory Databased. Further analysis of potential wetlands within and adjacent to Alternative 2 would be required to evaluate potential environmental impacts. TEP also identified one existing spring (Hooker Spring) and a domestic water well adjacent to the Oil and Gas Location, which may be used to provide a source of water to the RBU. Potential impacts to surface water features, ground water, and domestic water sources are a significant concern for Alternative 2; however, by minimize long-term storage of fluids on location and by implementing procedures for periodic inspection of the Oil and Gas Location and water sources, potential adverse impacts could be minimized or mitigated. Alternative 2 would be located outside of all HPH boundaries listed in the COGCC 1200 Series rules. The nearest HPH boundary is Elk Production and is located approximately 1,063 feet to the northwest of the proposed WPS. Potential operations on the Alternative 2 pad are unlikely to impact elk within the Elk Production HPH boundary. Permitting Considerations TEP would be required to permit the Alternative 2 pad through the COGCC via the OGDP process. Since this location is within 500 feet of one (1) RBU, TEP would be required to seek a waiver, including informed consent, from the RBU owner per COGCC Rule 604.a.(4) or permit the location subject to the approval of a variance to COGCC Rule 604.a.(4) if a waiver is not obtained from the RBU owner. The Relevant Local Government for the Alternative 2 pad is Garfield County. A Garfield County Oil and Gas Permit would be required prior to developing this Oil and Gas Location since the Oil and Gas Location would be subject to an Alternative Location Analysis per COGCC Rule 304.b.(2).B. The Bureau of Land Management (“BLM”) would be required to complete an additional environmental assessment prior to approval of any associated Application for Permits to Drill since this alternative would develop Federal Minerals. Conditions or factors that make this location unavailable Development of the Alternative 2 Oil and Gas Location would require the execution of a waiver from the adjacent RBU owner, which would include informed consent. The RBU owner is unlikely to provide informed consent for this location due to the close proximity of the Oil and Gas Location. ALTERNATIVE LOCATION – 3 (TIER IV-B) Alternative 3 is an existing Oil and Gas Location (South Leverich 18-13 pad; Loc ID: 335049) located on private surface (Gordman Leverich, LLP) within Lot 4 of Section 18, Township 7 South, Range 93 West, 6th P.M. The location would be east of the South Leverich 13-09 pad and would be accessed via Garfield County Road 317A. Alternative 3 would require the reconstruction and expansion of an existing Oil and Gas Location, and construction of a new pipeline corridor. Page 8 of 14 Alternative 3 would also trigger an ALA due to the proximity to existing RBUs and the Oil and Gas Location would be located within a Public Water Supply Area (no longer in use by the City of Rifle). Additionally, Alternative 3 would not fully develop the minerals proposed by the Form 2A. Based on these consideration Alternative 3 would be classified as a Tier IV-B location. The following advantages and disadvantages would apply to Alternative 3: Advantages 4) The location would be outside of all HPH boundaries. 5) The location would be outside of Disproportionately Impacted Communities. 6) The location is within the External Buffer of the Beaver Creek surface water supply area; however, the City of Rifle Ordinance 7-2018 eliminated the Beaver Creek potable water diversion point and removed the City’s jurisdiction over Beaver Creek. Disadvantages 4) There are two (2) building units within 2,000 feet of the WPS, with the distance to the nearest RBU (periodically occupied) at 1,620 feet. 5) Alternative 3 would require the reconstruction of a new Oil and Gas Location creating more new disturbance than would be required for the proposed South Leverich 13-09 pad. The project would result in approximately 8.27-acres of surface disturbance, of which 7.01-acres would be classified as existing disturbance and 1.26-acres would be classified as new disturbance. 5) Alternative 3 would only provide for the development of eight (8) of the twenty-one (21) proposed well locations; all eight (8) being Fee wells. Please see the Well Siting Optimization map included in Attachment A, Alternative Location Analysis Maps and Exhibits, for further details. Potential impacts to public health, safety, welfare, the environment, and wildlife resources. The Alternative 3 pad location would be within 2,000 feet of two (2) RBUs. The nearest RBU is located 1,620 feet from the WPS and is currently only periodically occupied by the owner (Gordman Leverich, LLP) for recreational purposes. The second closest RBU is located 1,986 feet from the WPS and is currently unoccupied. Potential impacts to RBUs include noise, light, odors, and air emissions originating from the Oil and Gas Location during construction, drilling, completion, and long-term production operations. These impacts could be mitigated with the implementation of appropriate mitigation measures. Although there is an overall reduction in the number of RBUs within 2,000 feet of the WPS, development of Alternative 3 would require more surface disturbance than proposed at the South Leverich 13-09 pad and would result in a significant reduction in mineral development. This location may not be an economically viable location given the significant reduction in potential mineral development. The Alternative 3 pad is located outside of all HPH boundaries listed in the COGCC 1200 Series rules. The nearest HPH is Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat, which is located approximately 1,187 feet from the WPS. Potential operations on the Alternative 3 pad are unlikely to impact Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat with the implementation best management practices. However, vehicle truck traffic to the location will utilize the existing Garfield County Road 317A, which traverse through Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat. TEP would implement mitigation measures along this section of the access road to minimize impacts to Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat during development. Page 9 of 14 The Alternative 3 pad is located within the Beaver Creek surface water supply area as shown on the COGCC online map. While the Alternative 1 pad is within the external buffer of the surface water supply area, the Beaver Creek public water system intake is no longer in use by the City of Rifle. Please see Ordinance Number 7-2018 attached to the Form 2A for additional details. It is unlikely for a spill or release to impact a public water supply system. Permitting Considerations TEP would be required to permit the Alternative 3 pad through the COGCC via the OGDP process. Since this location is within 2,000 feet of two (2) RBUs, TEP would be required to seek informed consent from both RBU owners per COGCC Rule 604.b.(1) or permit the location subject to COGCC Rule 604.b.(4). The Relevant Local Government for the Alternative 3 pad is Garfield County. A Garfield County Oil and Gas Permit is required prior to developing of this Oil and Gas Location since the Oil and Gas Location would be subject to an Alternative Location Analysis per COGCC Rule 304.b.(2).B. Conditions or factors that make this location unavailable Development of the Alternative 3 Oil and Gas Location would require the execution of a SUA with the surface owner. TEP has not approached the surface owner to determine if development of Alternative 3 would be an acceptable option. Since Alternative 3 is an existing Oil and Gas Location, TEP believes the surface owner would agree to further development of the location if requested. However, since there would be a significant decrease in mineral development potential from this Oil and Gas Location it is likely that this Alternative will result in an unviable project. ALTERNATIVE LOCATION – 4 (TIER IV-B) Alternative 4 would be a new Oil and Gas Location located on private surface (TEP Rocky Mountain LLC and Gordman Leverich, LLP) within the NE¼NE¼ of Section 13, Township 7 South, Range 94 West, 6th P.M. The location would be south of the South Leverich 13-09 pad and would be accessed via Garfield County Road 317A. Alternative 4 would require the construction of a new Oil and Gas Location, access road, and pipeline corridor. Alternative 4 would also trigger an ALA due to the proximity to existing RBUs and the Oil and Gas Location would be located within a Public Water Supply Area (no longer in use by the City of Rifle). Additionally, Alternative 4 would not fully develop the minerals proposed by the Form 2A. Based on these consideration Alternative 4 would be classified as a Tier IV-B location. The following advantages and disadvantages would apply to Alternative 4: Advantages 1) The location would be outside of all HPH boundaries. 2) The location would be outside of Disproportionately Impacted Communities. 3) The location is within the Internal Buffer of the Beaver Creek surface water supply area; however, the City of Rifle Ordinance 7-2018 eliminated the Beaver Creek potable water diversion point and removed the City’s jurisdiction over Beaver Creek. Disadvantages 1) There are two (2) building units within 2,000 feet of the WPS, with the distance to the nearest RBU at 798 feet. Page 10 of 14 2) Alternative 4 would require construction of a new Oil and Gas Location creating more new disturbance. The project would result in approximately 7.23-acres of surface disturbance, all of which would be classified as new surface disturbance. 3) Alternative 4 would only provide for the development of fourteen (14) of the twenty-one (21) proposed well locations; all fourteen (14) being Fee wells. Please see the Well Siting Optimization map included in Attachment A, Alternative Location Analysis Maps and Exhibits, for further details. Potential impacts to public health, safety, welfare, the environment, and wildlife resources. The Alternative 4 pad location would be within 2,000 feet of two (2) RBUs. The nearest RBU is located 798 feet from the WPS and is currently unoccupied by the owner (TEP Rocky Mountain, LLC). The second closest RBU is located 836 feet from the WPS and is also owned by TEP and is currently unoccupied. Potential impacts to RBUs include noise, light, odors, air emissions, and traffic originating from the Oil and Gas Location during construction, drilling, completion, and long-term production operations. However, given that both RBUs will be unoccupied during the initial phase of development these impacts would be eliminated. Although development of Alternative 4 would have no impacts on RBUs within 2,000 feet, this alternative would result in additional new surface disturbance than development of the existing South Leverich 13-09 pad. The Alternative 4 pad is located outside of all HPH boundaries listed in the COGCC 1200 Series rules. The nearest HPH is Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat, which is located approximately 194 feet from the WPS. Activities on the Alternative 4 Oil and Gas Location are unlikely to impact Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat with the implementation of appropriate best management practices. However, vehicle truck traffic to the location will utilize the existing Garfield County Road 317A, which traverse through Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat. TEP would implement mitigation measures (i.e. dust suppression, spill response measures) minimize impacts to Aquatic Native Species Conservation Water and Cutthroat Trout Designated Crucial Habitat during development. The Alternative 4 pad is located within the Beaver Creek surface water supply area as shown on the COGCC online map. While Alternative 4 is within the internal buffer of the surface water supply area, the Beaver Creek public water system intake is no longer in use by the City of Rifle. Please see Ordinance Number 7-2018 attached to the Form 2A for additional details. It is unlikely for a spill or release to impact a public water supply system. Permitting Considerations TEP would be required to permit Alternative 4 through the COGCC via the OGDP process. Since this location is within 2,000 feet of two (2) RBUs, informed consent would be required per COGCC Rule 604.b.(1) or permit the location subject to COGCC Rule 604.b.(4). Since TEP is the owner of the RBUs, TEP would provide informed consent for this location. The Relevant Local Government for Alternative 4 is Garfield County. A Garfield County Oil and Gas Permit is required prior to developing of this Oil and Gas Location since the Oil and Gas Location would be subject to an Alternative Location Analysis per COGCC Rule 304.b.(2).B. Page 11 of 14 Conditions or factors that make this location unavailable Development of the Alternative 4 Oil and Gas Location would require the execution of a SUA with Gordman Leverich for a portion of the proposed pad and the access road to the Oil and Gas Location. It is unlikely that the surface owner would agree to this location since other existing Oil and Gas Locations are readily available. OTHER CONSIDERATION Surface Constraints During evaluation of potential alternative locations TEP also reviewed best available surface information (i.e. slope) to determine what area within the project area would be suitable for site construction. TEP generally limits site construction to areas with slope less than 35 percent to ensure site stability and to minimize overall site disturbance. Slope between 35 percent and 50 percent can be utilized to some limited capacity when site conditions permit. Areas with steep slopes require more surface area for cut and fill slope, which can significantly increase total surface disturbance for the same working pad footprint. Additionally, steep slopes required a more in-depth geotechnical evaluation to ensure slope stability and suitable for proposed activities. TEP has prepared a Slope Map included in Attachment A, Alternative Location Analysis Maps and Exhibit, showing areas within the vicinity that have steep slopes greater than 35 percent and that may be problematic for site construction. Garfield County, Colorado Land Use Code As mentioned above, TEP is required to obtain approval of an Oil and Gas Permit through Garfield County, Colorado, per Garfield County Land Use and Development Code, Article 9: Pipelines and Oil and Gas Code, Division 2. Oil and Gas Code prior to development of the South Leverich 13-09 and any alternative location the triggers an ALA or if a variance is needed to COGCC noise or light standards. As required by Section 9-203, TEP formally requested a Pre-Application Conference with the Community Development Department on September 1, 2021 for the South Leverich 13-09 pad and included the required Pre-Application Materials as required under Section 9-203.B of the Garfield County Land Use and Development Code. The Pre-Application Conference was conducted by Garfield County on September 15, 2021, as required by Section 9-203.C, and was attended by representative of TEP, Garfield County, and COGCC. Garfield County’s Community Development Director, Sheryl Bower, provided a summary of the pre-application conference to TEP on October 6, 2021, as required by Section 9-203.E, which provided further guidance on application materials required for review of the Oil and Gas Permit. Please see Appendix A, Garfield County Pre-Application Conference Summary, of the Pre-Application Consultation Summary document attached to the Form 2A for additional details. TEP conducted a pre-application Neighborhood Meeting, as required by Section 9-203.D, on October 28, 2021, with surface owners and tenants of all properties within 2,000 of the proposed WPS of the Oil and Gas Location. Please see Appendix B, Neighborhood Meeting Summary, of the Pre-Application Consultation Summary document attached to the Form 2A for additional details. Page 12 of 14 TEP has prepared all applicable materials required for the Oil and Gas Permit as well as those materials requested during the Pre-Application Conference and has submitted the Oil and Gas Permit concurrently with submittal of the South Leverich 13-09 OGDP. Bureau of Land Management (BLM) Permitting Requirements During initial planning of the South Leverich 13-09 pad, TEP consulted with BLM regarding planned operations on the South Leverich 13-09 pad. TEP submitted required documentation to BLM for completion of the environmental assessment for this project. BLM has completed and approved the Upper Beaver Creek Environmental Assessment which includes the South Leverich 13-09 pad. Since Federal minerals would be developed from Alternative 1 and Alternative 2 if selected, BLM would be required to complete additional analysis of these alternative locations prior to development, which would further delay project development. TEP has prepared and submitted the BLM APDs associated with development of the Federal wells on the South Leverich 13-09 concurrently with submittal of the South Leverich 13-09 OGDP. ALTERNATIVE LOCATION ANAYSIS SUMMARY Through the ALA process, the South Leverich 13-09 pad was selected as the preferred location because it minimizes the potential impact to public health, safety, welfare, the environment, and wildlife resources, while also maximizing the potential for mineral development. The South Leverich 13-09 pad maximizes the distance between the WPS and the RBUs and minimizes the number of RBUs that are occupied full time. Of the four (4) RBUs within 2,000 feet of the WPS, two (2) are owned by TEP and are unoccupied, one (1) is owned by Gordman Leverich LLP and is periodically occupied, and one (1) is owned by Mr. and Mrs. Fischer and is occupied. The occupied building unit would be 1,195 feet from the WPS. TEP has developed comprehensive dust, noise, light, and odor mitigation plans for the South Leverich 13-09 pad to minimize potential impacts to the RBU owner. Furthermore, the South Leverich 13-09 pad is an existing oil and gas location with existing production operations. Utilizing the existing Oil and Gas Location would minimize the amount of new surface disturbance required for development of the proposed minerals and reduces landscape level environmental impacts. The South Leverich 13-09 pad provides the same level of protection for wildlife resources as the four (4) alternative locations. The South Leverich 13-09 pad and all four (4) locations are located outside of HPH and are within similar proximity to HPH boundaries within the project area. The South Leverich 13-09 pad also minimizes potential impacts to water resources based on proximity to surface water features. TEP has consulted with all the RBU owners within 2,000 feet of the South Leverich 13-09 pad and has secured informed consent from each RBU owner per COGCC Rule 604.b.(1). Additionally, TEP has entered into an SUA with the surface owner to develop the twenty-one (21) proposed natural gas wells planned for the South Leverich 13-09 pad. TEP believes the South Leverich 13-09 pad is the most protective of public health, safety, welfare, the environment, and wildlife resources, while also maximizing mineral development. Page 13 of 14 ATTACHMENT A SOUTH LEVERICH 13-09 PAD ALTERNATIVE LOCATION ANALYSIS MAPS AND EXHIBITS South Leverich 13-09 Lat: 39.435679 Long-107.829249 Alternative Location 2 Lat: 39.434697 Long-107.843138 Alternative Location 1 Lat: 39.440367 Long-107.829781 Alternate Location 3 Lat: 39.434548 Long-107.824308 Alternate Location 4 Lat: 39.430858 Long-107.827144CR317CR317A GL-67S93W 18SWSE Honea 19-05 Pad South Leverich 13-09 Pad South Leverich 18-13 Pad USFS-67S93W 19SENE FEDERAL RU 23-17 FEDERAL WMC 24-17 BEAVER CREEK RANCH, P 18-03 PAD SR 23-14 Tepee Park Ranch Pad 2 Tanks BLM Colorado, Maxar Structures Pad Centroid Working Pad Surface Limits of Disturbance Mineral Development Area 2000 ft. Buffer Active Oil and Gas Location Abandoned Oil and Gas Location Wetland Surface Water High Priority Habitat Section: 13 Township: 7S Range: 94W 6th P.M. Garfield County, CO Date: 7/13/2022 7:17 PM Author: Michael Clancy¹0 760 1,520380 Feet NOTE: THIS MAP IS A COMPILATION OF PUBLICLY AVAILABLE DATA. THE ACCURACY AND COMPLETENESS OF SAID DATA HAS NOT BEEN VERIFIED BY ECOPOINT, INC. EXISTING CONDITIONS MAY DIFFER FROM WHAT IS SHOWN. Overview Map (Rule 304.b.(2).C.i)ALTERNATIVE LOCATION ANALYSIS OGDP: South Leverich 13-09 OGDP 2A DOC. NO. 403064316 11 14 E---3 I I I I I I I I I I I , , ; , , , ,-, • 0 c::::J r .J r --. 0 • I I I • I -....... -D 20 0 &&&&&&&&&&&&CR 317C R 3 1 7 A 2 0 0 0 ' 1000' 500' BAUER, GEORGE R WHITE RIVER NATIONAL FOREST TEP ROCKY MOUNTAIN LLC BAUER, GEORGE R CPX PICEANCE HOLDINGS LLC WHITE RIVER NATIONAL FOREST FISCHER, JOEL & CINDY MCKEE, ROLAND PAUL & PAMELA S ENTRUST RETIREMENT SERVICES INC-FBO DAVID ADLER IRA# 13618-11 GORDMAN LEVERICH LLLP KARR, ELIZABETH & JOEL RAINEY, MICHAEL & CHERYL GORDMAN LEVERICH, LLP South Leverich 13-09 Lat: 39.435679 Long-107.829249 South Leverich 13-09 Pad South Leverich 18-13 Pad Tepee Park Ranch Pad 2 Tanks RBU RBU RBURBUBuilding RBU Building 1 36 2 4 57891011 South Leverich 13-09ALTERNATIVE LOCATION ANALYSIS DATA MAP OGDP: South Leverich 13-09 OGDP 2A DOC. NO. 403064316 NOTE: THIS MAP IS A COMPILATION OF PUBLICLY AVAILABLE DATA. THE ACCURACY AND COMPLETENESS OF SAID DATA HAS NOT BEEN VERIFIED BY LAT40, INC. EXISTING CONDITIONS MAY DIFFER FROM WHAT IS SHOWN. Date: 7/13/2022 6:52 PM Author: Michael Clancy 0 350 700175 FeetZoning: Rural (Agricultural) Land Use: Range Land / Resource Lands Section: 13 Township: 7S Range: 94W County: Garfield 1 Aquatic Cutthroat Trout Designated Crucial Habitat 72.67 W 1 Aquatic Native Species Conservation Waters 72.67 W 2 Public Road 731.57 SW 3 Wetlands 605.76 SW 4 Building Unit 1195.04 W 4 Residental Building Unit 1195.04 W 5 Building 1401.56 S 6 Property Line 623.55 W N/A Above Ground Utility >5280 N/A N/A Child Care Center >5280 N/A N/A County Boundary >5280 N/A N/A Designated Outside Activity Area >5280 N/A N/A Disproportionately Impacted Community >5280 N/A N/A Floodplain >5280 N/A N/A High Occupancy Building Unit >5280 N/A N/A Municipal Boundary >5280 N/A N/A Proximate Local Government >5280 N/A N/A Public Water Supply Well (Type III or GUDI) >5280 N/A N/A Railroad >5280 N/A N/A School Facility >5280 N/A N/A School Property >5280 N/A N/A Surface Water Supply Area >5280 N/A ID Near Feature Distance Direction Residental Building Unit 0 0 4 Building Unit 0 0 4 High Occupancy Building Unit 0 0 0 School Property 0 0 0 School Facility 0 0 0 Designated Outside Activity Area 0 0 0 WORKING PAD RADII 0-500' 501-1000' 1001-2000' ¹ 10 Rainey, Michael NW 2131.63 3 Fischer, Joel W 1195.04 6 TEP Rocky Mountain LLC SW 1393.91 7 TEP Rocky Mountain LLC SW 1489.4 9 Gordman Leverich, LLP NE 1582.33 ID Building Owner Direction Distance Building Unit Owners within 2,000' Cultural Distance Table - Count within Radii of WPS (Rules 304.b.(3).B) Distance to Nearest Cultural Features (Rules 304.b.(2).B and 304.b.(3). A & B) Aquatic Native Species Conservation Waters Aquatic Cutthroat Trout Designated Crucial Habitat Surface Water Wetland Water Wells Garfield Co. Parcels Existing Structure Closed Oil and Gas Location Abandoned Oil and Gas Location Active Oil and Gas Location Proposed Oil and Gas Location Proposed Working Pad Surface Buffer Pad Centroid Legend Wells Active Abandoned Location Active Permit Dry & Abandoned Drilling Domestic Expired Permit Injecting Producing Shut-In Temporarily Abandoned Waiting On Completion Plugged & Abandoned 0 • D r -I 0 ISS:'l c::::I • rz2l c::::J 0 + D ◊ -¢-◊ p: 9f * 0 ■ 0 (8) -0-$ 0 E---3 &&&&&&&&&CR317CR317A2000' 1000' 500' CPX PICEANCE HOLDINGS LLC FISCHER, JOEL & CINDY MCKEE, ROLAND PAUL & PAMELA S ENTRUST RETIREMENT SERVICES INC-FBO DAVID ADLER IRA# 13618-11 YOUBERG BEAVER CREEK RANCH KARR, ELIZABETH & JOEL RAINEY, MICHAEL & CHERYL BEAVER CREEK HIGHLANDS LAND AND CATTLE TRUST MID STATE CONSTRUCTION CO INC 401K PLAN-FBO WARE, WILLIAM S GORDMAN LEVERICH, LLP Alternative Location 1 Lat: 39.440367 Long-107.829781 RBU RBU RBU1 2 3 4 56 7South Leverich 13-09 Pad South Leverich 18-13 Pad South Leverich Alt 1 1 Aquatic Cutthroat Trout Designated Crucial Habitat 116.99 W 1 Aquatic Native Species Conservation Waters 116.99 W 2 Wetland or Riparian Corridor 587.86 SW 3 Property Line 595.62 W 4 Public Road 596.82 W 5 Building Unit 1038.72 E 5 Residential Building Unit 1038.72 E N/A Above Ground Utility >5280 N/A N/A Building 3145.98 S N/A Child Care Center >5280 N/A N/A County Boundary >5280 N/A N/A Designated Outside Activity Area >5280 N/A N/A Disproportionately Impacted Community >5280 N/A N/A Floodplain >5280 N/A N/A High Occupancy Building Unit >5280 N/A N/A Municipal Boundary >5280 N/A N/A Proximate Local Government >5280 N/A N/A Public Water Supply Well (Type III or GUDI) >5280 N/A N/A Railroad >5280 N/A N/A School Facility >5280 N/A N/A School Property >5280 N/A N/A Surface Water Supply Area >5280 N/A ID Near Feature Distance Direction ALTERNATIVE LOCATION ANALYSIS DATA MAP OGDP: South Leverich 13-09 OGDP 2A DOC. NO. 403064316 Section: 13 Township: 7S Range: 94W County: Garfield Residential Building Unit 0 0 3 Building Unit 0 0 3 High Occupancy Building Unit 0 0 0 School Property 0 0 0 School Facility 0 0 0 Designated Outside Activity Area 0 0 0 WORKING PAD RADII 0-500' 501-1000' 1001-2000' 5 Gordman Leverich, LLP 1038.72 E 6 Rainey, Michael 1689.57 W 7 Fischer, Joel 1753.65 SW ID Building Owner Distance Direction NOTE: THIS MAP IS A COMPILATION OF PUBLICLY AVAILABLE DATA. THE ACCURACY AND COMPLETENESS OF SAID DATA HAS NOT BEEN VERIFIED BY LAT40, INC. EXISTING CONDITIONS MAY DIFFER FROM WHAT IS SHOWN. Date: 7/13/2022 6:24 PM Author: Michael Clancy 0 350 700175 Feet¹ Aquatic Native Species Conservation Waters Aquatic Cutthroat Trout Designated Crucial Habitat Surface Water Wetland Water Wells Garfield Co. Parcels Existing Structure Closed Oil and Gas Location Abandoned Oil and Gas Location Active Oil and Gas Location Proposed Oil and Gas Location Proposed Working Pad Surface Buffer Pad Centroid Legend Wells Active Abandoned Location Active Permit Dry & Abandoned Drilling Domestic Expired Permit Injecting Producing Shut-In Temporarily Abandoned Waiting On Completion Plugged & Abandoned Building Unit Owners within 2,000' Cultural Distance Table - Count within Radii of WPS (Rules 304.b.(3).B) Distance to Nearest Cultural Features (Rules 304.b.(2).B and 304.b.(3). A & B) Zoning: Rural (Agricultural) Land Use: Range Land / Resource Lands I I I I I 0 • D r -I 0 ISS:'l c::::I • rz2l c::::J 0 + D ◊ -¢-◊ p: 9f * 0 ■ 0 (8) -0-$ 0 E---3