HomeMy WebLinkAbout1.06 Garfield County Pre-Application Conference SummariesCPX Piceance Holdings, LLC
34 S. Wynden Drive, Suite 240
Limited Impact Review
Garfield County, Colorado
Houston, TX 77056
TPR Well Pad 36A
Article 9 Oil and Gas Permit Application
Appendix G: Garfield County Pre-
Application Conference Summaries
CPX Piceance Holdings, LLC
34 S. Wynden Drive, Suite 240
Limited Impact Review
Garfield County, Colorado
Houston, TX 77056
TPR Well Pad 36A
Article 9 Oil and Gas Permit Application
Form 2A Garfield County Pre-
Application Conference Summary
CONSULTATION SUMMARY
Garfield County
Well Pad 36A November 2022
1.0 Introduction
CPX Piceance Holdings, LLC (CPX) participated in an in-person pre-application meeting with officials from the
Garfield County Community Development Department, the Garfield County Oil and Gas Liaison, and a Garfield
County permitting consultant on September 15, 2021. The pre-application meeting was conducted pursuant to
Garfield County Land Use and Development Code (LUC) Article 9 (Garfield County Oil and Gas Code).
Representatives from the Colorado Oil and Gas Conservation Commission (COGCC) participated remotely.
CPX participated in a second pre-application meeting with the Garfield County Oil and Gas Liaison and Garfield
County’s permitting consultants on November 28, 2022. The meeting was conducted remotely.
The Garfield County Oil and Gas Code applies to Oil and Gas Locations that require an analysis of alternative
locations under COGCC Rules 304.b.(2).B.i. through viii and x. CPX’s proposed continued development of existing
Well Pad 36A is subject to an Alternative Location Analysis (ALA) under Rules 304.b.(2).B.vii and viii.
2.0 Background
An ALA is applicable to Well Pad 36A under Rule 304.b.(2).B.vii for a location immediately upgradient of a mapped,
visible, or field-verified riparian corridor. An ALA also is applicable under Rule 304.b.(2).B.viii for a location within
High Priority Habitat (HPH) and the operator did not obtain a waiver from Colorado Parks & Wildlife (CPW). Well
Pad 36A’s proximity to Beaver Creek is immediately upgradient of a riparian corridor and within 500 feet of Rule
1202.c.(1).R cutthroat trout designated crucial habitat and native fish and other native aquatic species conservation
waters.
On June 18, 2021, CPW provided CPX with a waiver specific to the portion of the well pad between 300 and 500
feet from Rule 1202.c.(1).R HPH. CPW provided a variance recommendation to be heard by the COGCC
Commission for the portion of the well pad within 300 feet of Rule 1202.c.(1).R HPH. CPW renewed its waiver and
variance recommendation on July 13, 2022.
CPX provided the first written pre-application meeting request to Garfield County on August 25, 2021. The request
package contained background information, mapping for the location and location alternative, a re cord of
correspondence with CPW, a detailed location description, and cultural feature setback distances and bearings.
CPX provided a second written pre-application request to Garfield County on October 21, 2022. Th is request
package refreshed the previous information and provided a detailed ALA containing four alternative locations,
photographs, a written narrative, and a comparative matrix of alternatives.
3.0 Consultation
The September 15, 2021 pre-application meeting was attended by the Garfield County Community Development
Director, Principal Planner, Oil and Gas Liaison, and permitting consultant. Participants from COGCC included the
Planning and Permitting Manager, Environmental Manager, and Oil and Gas Location Assessment Specialists for
the Western, Northeast, and Southeast regions. Participants from CPX included the Principal, Operations Manager,
legal counsel, and permitting consultant.
CPX presented information on the existing well pad development on Tepee Park Ranch (TPR), the plan for
continued natural gas development on TPR, distances from cultural features, water quality and stormwater
protections, and discussion of the waiver provided by CPW.
CPX Piceance Holdings, LLC Garfield County Consultation
Well Pad 36A 2 November 2022
CPX addressed Garfield County questions regarding use of the existing footprint for Well Pad 36A without
expansion; the haul route; use of existing pipelines; COGCC’s historical approval process for the existing locations
on TPR; and mineral ownership.
Garfield County’s Oil and Gas Liaison participated in an on-site review of Well Pad 36A and other CPX operations
on July 19, 2022. The on-site review showed the location, access road, environmental setting, best management
practices, and engineered stormwater controls. Representatives from COGCC, CPW, the U.S. Forest Service and
Bureau of Land Management also participated.
The second pre-application meeting on November 28, 2022 was attended by the Garfield County Oil and Gas
Liaison and two Garfield County permitting consultants. Participants from CPX included the Principal, Operations
Manager, legal counsel, and permitting consultant.
During the second pre-application meeting, Garfield County instructed CPX on how the county conducts a permit
application completeness determination. The county stated that a formal neighborhood meeting is not required for
Well Pad 36A because the only neighbor is the U.S. Forest Service, which has been consulted extensively regarding
the proposed development. The only grazing tenant is CPX’s own Operations Manager, who is integrally involved
in the permit process.
4.0 Conclusion
Garfield County determined that land use permitting under LUC Article 9 will apply to Well Pad 36A because the
location requires an ALA under COGCC Rules 304.b.(2).B.vii and viii. During the November 28, 2022 meeting,
Garfield County stated that the county application could be submitted concurrently with the Oil and Gas
Development Plan (OGDP) and Form 2A application to COGCC. The application reviews would proceed in parallel,
and the Garfield County Oil and Gas Liaison would expect to make updates on the county’s position to COGCC
and would participate during a COGCC Commission hearing on the Well Pad 36A OGDP.
CPX Piceance Holdings, LLC
34 S. Wynden Drive, Suite 240
Limited Impact Review
Garfield County, Colorado
Houston, TX 77056
TPR Well Pad 36A
Article 9 Oil and Gas Permit Application
November 28, 2022 Garfield County Pre-
Application Conference Summary
From:Amanda Petzold
To:Dale Ratliff; Kirby Wynn; Trisha Fanning; nick@cpxpiceance.com; gwen.brodsky@aota.tech;
bryan@cpxpiceance.com
Subject:CPX Application Process Review
Date:Monday, November 28, 2022 1:36:56 PM
Attachments:Garfield Application Completeness Checklist Coversheet.pdf
Good afternoon,
It was nice to meet the team and I look forward to working with all of you. Today the
following was discussed:
The application submittal is expected around the end-of-the year.
Given the limited neighbors for these locations, it was agreed that a formal
neighborhood meeting is not required in this case. The request is for a written summary
regarding the conversations and meetings held with both the tenant grazing/farmer and
the U.S. Forest Service.
The application process will begin with a completeness checklist (attached). This will be
used to communicate back what the deficiencies are, if any. Once an application is
deemed technically complete, a Technically Complete letter will be sent.
This Technically Complete letter will initiate the hearing scheduling process.
Next, the hearing date will be selected and the referral process will begin.
CPX will be responsible for the notice requirements, which will begin once a hearing
date has been determined. Notice requirements include mailings, newspaper publication,
and sign postings.
As the hearing approaches, a staff report with all referral letters and public comments
received will be sent to CPX and the County Commissioners.
Lastly, we did also discuss the topographic map requirement typo, where the
requirement should be a buffer of 2640'.
I hope I captured all topics discussed today. If there are any questions or concerns, please
reach out.
Kind regards,
--
Amanda Petzold
Permitting Specialist
(970) 415-1466
apetzold@ardorenvironmental.com
CPX Piceance Holdings, LLC
34 S. Wynden Drive, Suite 240
Limited Impact Review
Garfield County, Colorado
Houston, TX 77056
TPR Well Pad 36A
Article 9 Oil and Gas Permit Application
October 11, 2021 Garfield County Pre-
Application Conference Summary
Garficld County
Community Development Department
October 11,2021
Mr. Nick Kurtenbach
Principal
CPX Piceance Holdings, LLC
34 S. VltVnden Dr. Ste 240
Houston, TX 77056
RE. Pre-Application Conference Summary, Garfield County and CPX Piceance Holdings, LLC.
Attendees:
Garfield Countv
Sheryl Bower, Community Development Director
Glenn Hartmann, Principal Planner
Kirby \Afnn, Oil and Gas Liaison
Trisha Fanning, Consultant, Ardor Environmental LLC
Jessica Donahue, Consultant, Ardor Environmental LLC
CPX Piceance Holdinqs. LLG.
Nick Kurtenbach, Principal, CPX Piceance Holdings, LLC
Brian Clark, Operations, CPX Piceance Holdings, LLC
Dale Ratliff, Associate, William Weese, Pepple & Ferguson
Gwen Brodsky, Consultant, Aota Technical, LLC
Colorado Oiland Gas Conservation Gommission
Sabrina Trask, Sr. Oil and Gas Location Assessment Specialist
Dave Kubeczko, Western Oiland Gas Location Assessment Location Specialist
Melissa Housey, Southeast Oil and Gas Location Assessment Specialist
Doug Andrews, Northeast Oil and Gas Location Assessment Specialist
Greg Deranleau, Environmental Manager
Summary
Per Garfield County Land Use and Development Code, Division 2. Oil and Gas code amendments adopted
July 6, 2021, on September 15,2021, Garfield County and its representatives held a pre-application
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
(e70)e4s-8212
conference with CPX Piceance Holdings, LLC. ("CPX"), and representatives from the Colorado Oit and Gas
Conservation Commission ("COGCC"). Garfield County Land Use and Development Code Section 9-203.4.
requires a pre-application process for all new or modified oil and gas operations. The required pre-
application conference was held in advance of the anticipated submittal of CPX's applications for an oil and
gas permits with the COGCC for their two proposed oil and gas locations, Pad 254 and 364, located in
Sections 25 and 36, Township 7 South, Range 94 West, Garfield County, Colorado.
On August 30,2021, CPX Principal Nick Kurtenbach requested, in writing, a Pre-Application Conference
with Garfield County per Section 9-203.A. lncluded in CPX's request was the Pre-Application Request
Letter and the Pre-Application materials required per Section 9-203.8.1 of Garfield Land Use Code, which
included the Alternative Location Analysis ("ALA') Narrative, Alternative Location Analysis Exhibits, and an
Alternative Location Analysis Data Table. Garfield County set and confirmed the pre-application meeting
for September 15,2021, at 1:00 PM.
CPX requested the pre-application conference to discuss Pads 25A and 364 which are subject to the
requirements of Article 9 of the Garfield County Land Use Code (LUC) for Oil and Gas Locations that require
analysis of alternative locations under COGCC Rule 304.b.(2).81, COGCC requires analysis of alternative
locations for locations within the boundaries of, or immediately upgradient from, a riparian corridor Rule
30a.b.(2).B.vii and locations within high priority habitat (HPH) where the Operator did not obtain a waiver
from Colorado Parks & Wildlife (CPW), Rule 304.b.(2).B.viii. As part of ALA pre-application, CPX presented
three alternative locations (AL) reviewed as part of their ALA process: ALl, AL2, and AL3.
On September 15,2021, Garfield County its representatives hosted the pre-application conference which
included representatives from CPX and the COGCC. CPX presented their proposed permit locations for
the 25A and 364 Pads along with their alternative locations. During the pre-application meeting, CPX
discussed their overall plan for development. The proposed sites are two of three future locations that will
be part of CPX's tentative COGCC Comprehensive Area Plan (CAP) application.
CPX provided an overview of their development Tepee Park Ranch (TPR) which was initially developed for
naturalgas operations in 2008; CPX has been operatorsince 2015. CPX has a history of developing this
project with the Forest Service. lt was stated that the property historically supported logging, cattle grazing,
and mineral extraction for shale. Today, it consists of 4,352 acres surrounded by White River National
Forest and Bureau of Land Management (BLM), two constructed well pads, two producing natural gas
wells, 20' wide roadway, flowlines for natural gas, condensate, and produced water, along with cattle
grazing occurring in the month of July through October.
Pad 254 is an existing locaticn, constructed in approximately 2008 on CPX private land; the private surface
would be used to develop CPX minerals and federal mineral leases. Pad 254 is located at: Lat. 39.404591,
Lon. -107.83277 Section 25, Township 7 South, Range 94 West. Pad 254 was identified as subject to the
ALA requirements because it was initially presented as immediately upgradient from an intermittent
waterbody riparian corridor, unnamed intermittent stream. CPX is proposing to reconstruct the existing 254
pad to develop the remaining 32 of 34 natural gas wells.
Pad 364 is an existing location and was constructed in approximately 2008 on CPX private land; the private
surface would be used to develop CPX minerals and federal mineral leases. Pad 364 is located at: Lat.
39.394825, Lon. - 107.832016, Section 36, Township 7 South, Range 94 West. This pad is subject to the
COGCC's requirement to conduct an alternative location analysis (ALA) due to its proximity to aquatic high
1 COGCc Rule 304.b.(2) B. FORM 24, Oil and Gas Location Assessment Applicat¡on lnformation Rcquirements. All Form 2As will ¡nclude the
following information, unless otherwise provided in a Commission Order approving a CAP pursuant to Rule 314, Alternative Loçation Analysis.
B.
^lternetive
Location
^nalys¡s
Cr¡terie
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
(970) 94s-82r2
priority habitat for cutthroat trout and other native aquatic species and its location immediately upgradient
from a riparian corridor, upgradient from Beaver Creek. CPX is proposing to reconstruct the existing 364
pad to develop up to thirty-four (34) additional naturalgas wells.
CPX provided waivers obtained from CPW for Pad 254's proximity to high priority habitat and for the portion
of Pad 364 between 300 and 500 feet of high priority habitat Rule 309.e.(5).D.i. CPW provided its
recommendation for a variance granted by the Commission for the portion of Pad 364 that is within 300
feet of high priority habitat. CPX provided a Cultural Features Table outlining the distance and bearing to
HPHs both aquatic and wildlife areas.
CPX presented the advantages of the proposed locations as:
1) Both oiland gas locations have existing infrastructure since 2008.
2) Pad 364 has three permits approved; (wells #1 ,#112-16 are drilled, completed, and producing; well
#17 6-25 drilled/u ncompleted).
3) Pad25A has three permits approved; (#132-36, conductor, and casing set; #143-36, conductor set;
#112-6 conductor set).
4) No building units, residentialbuilding units, high occupancy building units, schoolproperties/facilities
or designated outdoor activity areas within 2,000 feet of the location.
5) There are no municipal or county boundaries within 2,000 feet of the locations
6) Existing locations provide low angle topography to avoid steep cuts and fill.
7) There are no disproportionately impacted communities within 2,000 feet.
8) Vegetation removal, earth moving, grading, and finish work is complete.
9) Use existing off-location flowlines Pad 254.
10) CPW determined that continued development of existing locations has no anticipated adverse
impacts.
11) CPW determined that use of existing locations prevents new disturbance and potential for erosion
and stormwater runoff.
12) Consolidate new infrastructure with development of one new pad (Pad 31).
13) Utilize Pad2for centralized facility/tank battery.
14) Permit development under a Comprehensive Area Plan (CAP)
15) Systematic planning of location, centralized facilities, and Best Management Practices (BMPs) per
COGCC Rule 314.a.
The ALA process also required CPX to review other possible locations. CPX presented three alternative
locations: proposed Alternative Location I (Lat. 39.410036, Lon. -107.834757), Alternative 2 (Lat.
39.401 '108, -1 07 .834757) and Alternative Location 3 (Lat. 39.3929, Lon. -107.8304). Each location would
require new disturbance. Based on their evaluation and the currently available information, CPX believes
that the 254 and 364 pads are the best possible oil and gas locations for development of the proposed
minerals and will be the best location to minimize the overall impacts to public health, safety, welfare, the
environment, and wildlife resources. CPX did not offer specific detail on advantages or disadvantages other
than the Colorado Parks and Wildlife letter stating their field review, conducted May 27,2021, of high priority
habitat determined that construction of a new location, instead of continued use of existing location, would
cause undesired disturbance and habitat fragmentation; CPW letter dated June 15,2021.
CPX personnel along with COGCC Western Oil and Gas Location Assessment Location Specialist Dave
Kubeczko conducted a field visit to the proposed locations on September 14,2021. Based on the field visit
there is some question whether Pad 25A is subject to an ALA.
At the conclusion of the CPX presentation Garfield County initiated questions. Mr. Kirby V!!nn requested
clarification on whether CPX plans to expand the existing footprint of Pads 254 or 364; CPX confirmed
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
(970) 94s-8212
there would be no expansion of the existing pads. Glenn Hartmann asked whether there has been any
traffic analysis conducted. The new development would utilize the road structure in place and portions of
the county road (Beaver Creek Road) were relocated to support Laramie Energy operations nearly 10 years
ago. A formal traffic analysis has not been conducted yet. Existing infrastructure will be utilized. Mr.
Hartmann requested clarification on the existing pipeline systems. Mr. Kurtenbach confirmed there is an
existing 12" steel gas line in place that can accommodate up 120 million cubic feet per day; an 8" HDPE
reinforce steelwater line and a 3" steel condensate line will be utilized.
Ms. Sheryl Bower asked how rigorous of a process did the former owners of the property go through to get
these two locations approved. CPX stated it was two owners ago, and it predated the cutthroat trout
designation, but they have the surveys that were conducted, and the previous owners followed the
regulatory process required at the time of permitting the locations. Pads 254 and 364 were constructed
prior to the COGCC requirements for a Form 2A process and the first Form 2A was done after the pads
were built. The Form 2As were done when refiled Applications to Drill (APD) were filed.
One of the positives stated was the use of centralized facilities. CPX is proposing to utilize their current
Pad 2 location to be the tank battery to support Pads 254 and 36A; they are contemplating tank-less
facilities but no concrete determination to date has been made. All production is planned to go through
CPX Pad 2 which is already developed to handle the production from Pads 254 and 364; new flowlines
would have to be built for Pad 364 in the existing road corridor.
It was requested to provide more information regrading the alternative locations. Ms. Gwen Brodsky stated
the primary concerns are cuVslope of the alternative locations, protection of aquatic species, and proximity
to roads and minerals. Garfield would like to see more detailed analysis and narrative from CPX regarding
its alternative locations, including areas of disturbance. CPX had not determined the amount of disturbance
area for each of the alternative locations or percentage of accessible minerals in their pre-application
materials. CPX confirmed choice of alternative locations was on all CPX private land due to surrounding
land is no surface occupancy.
Garfield requested confirmation of mineral ownership. CPX owns 100% of the minerals in the eastern part
of the TPR development. Pad 364 will have fee/fee/fed minerals and will require a NEPA evaluation. GPX
plans are to submit Pad 254 OGDP first, and the OGDP for Pad 364 would follow given expiration to
OGDPs. CPX does not want to initiate the OGDP Pad 36A until it's necessary to start the process with
BLM.
CPX is stillworking to determine if Pad 254 triggers an ALA. COGCC provided its input that from the field
review that the site appears to be cross-gradient to the stream to the north, and, looking at the contour map,
that the site is cross gradient with a flow east-northeast; the site would not intercept the flow at all. Garfield
would like to receive confirmation that Pad 254 will require an ALA; COGCC will make their determination
from the review of the OGDP, and per COGCC Rule
Garfield County wants to receive a complete application for sites that require ALA. Under COGCC Rule
304.b.(2XA) ii.z the Director or Commission may request a need for an ALA.
CPX had provided a list of questions to Garfield prior to the meeting and these questions were addressed
at the meeting. The Applicant is required to initiate the application sufficiently early that the County has
time to complete its entire review process prior to the COGCC making its own determination. However, the
2 COGCC Rule 304,b,(2XA) ii, For which the Director or Commission determines that an alternative location analysis ¡s necessary to evaluate
whether the proposecl Oil and Gas I ocation reasonably protects ancl minimizes adverçe impacts to puhlic health, safoty, wolfare, the
environment, and wildlife resources.
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
(970)94s-82r2
Application requires the inputs prepared for COGCC, including mitigation plans (9-204.8.2). The
Application can be submitted without approval by Garfield County, but sufficient time should be given to the
county to make its determination. CPX requested clarification on sequencing of permits for Pads 254 and
364. Garfield clarified that two separate Application need to be submitted, and you may submit concurrently
with COGCC and Garfield. CPX requested direction on preparing reports, studies, or plans that assess
impacts. Garfield requests that all assessments and plans associated to all locations including alternative
locations be submitted with their completed Application. This also includes impact studies associated with
travel on County roads. Per the requirement of a neighborhood meeting, Garfield request that the Operator
consider all parties affected by the development (e g , grazing, farming, ranches, etc.).
A secondary meeting was held on September24,2021, with CPX, Garfield, and COGCC, to allow forfurther
review of the materials presented by COGCC. COGCC stated in the meeting that they don't think that Pad
254 will require the ALA-HPH due to proximity to the stream. COGCC would like CPX to provide
confirmation that the edge of the working pad surface is at least 300' from ordinary high water (OHW) mark
and submitwith Form 24. COGCC requested consistency in attachments to make sure field measurements
are taken to determine accurate distances to the working pad surface.
COGCC confirmed that Pad 36A will require an ALA for HPH and due to its proximity to Beaver Creek. lt
was noted that CPW provided a waiver for parts of the Pad. COGCC stated that Pad 364 will require a
variance to Rule 1202.c.(1XR). COGCC requested CPX prepare and submit the variance request with the
OGDP. The inclusion of CPWs support of the variance and documentation of the waiver should be
submitted with the Form 2A and hearing application.
Summarv of Staff Gomments and Additional Requests
During the Pre-Application conference it was confirmed that proposed location Pad 364 will require a coun$
Land Use Change permit; it is still uncertain whether Pad 25A will trigger a county Land Use Change permit.
CPX to provide in their application all required documentation per Article 9 Section 204 in support of their
proposed and alternative locations including all items as stated in the foregoing summary. CPX will further
provide the following with their application:
o An application will be submitted for each individual Pad that will require an ALA;
o An updated narrative summary to include detailed advantages and disadvantages of each
proposed location including the Alternative Locations;
¡ An updated Alternative Location Analysis Data Table and additional narrative to include the
regu lated setbacks distances;
. Provide more detailed analysis for the Alternative Locations identified in the application.
¡ Consistent naming of the Pads throughout the application and maps;
. Update the maps with field measured distances;
. Cumulative impact percentages including the extent of disturbances from planned development;
o Provide details on restriction of surrounding areas for development.
o Conduct a meeting with tenant grazing/farmers;
. CPX will complete and submit an Agreement to Pay form to ensure reimbursement to the county
for all application and pre-Application third-party and staff review expenses.
¡ A detailed traffic study as identified in the Garfield County Land Use Development Code Table 4-
201, including roadways, conditions, and access;
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
(970)94s-82r2
. Any âdditional studies or analysis that are being conducted by CPX in support of the permit
application to COGCC per Rule 304,b,(2XC) and Rule 304,b, (3) through (1) inclusive, except NOT
Rule 304.b. (7)(D) (Preliminary Flow Diagrams) and (7)(H) (Directional Well Plat) should be
included for review by Garfield County;o Referrals will be sent out in accordance with 9-206;. A public Hearing will be held in accordance with 9-208 and 9-209; and The Standards of Approval
are contained in Sections 9-205.
The foregoing summary is advisory in nature and is not binding by the County. The summary is based on
current zoning, which is subject to change in the future, and upon information provided at the Pre-
Application Gonference. This summary does not create a legal or vested right. The summary is valid for a
six-month period, after which an update should be requested. The Applicant is advised that the Application
submittal once accepted by the County becomes public information and will be available (including
electronically) for review by the public. Proprietary information can be redacted from documents prior to
submittal.
The information provided herein is current as of the date of this letter. CPX will be subject to the Land Use
and Development Code, along with any other applicable regulations in place on the date of application
submittal. lf anything changes with the proposed project, we ask that CPX please inform us so that we can
determine if the changes will require a new pre-application meeting.
Sincerely,
r, AICP
n ity Development Director
cc. Glenn Hartman, Principal Planner
Kirby V$nn, Oil and Gas Liaison
Trisha J Fanning, Ardor Environmental
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
(970)94s-8212