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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/02/2018 - SECOND READING OF ORDINANCE NO. 175, 2017, DELETINAgenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY January 2, 2018 City Council STAFF Cassie Archuleta, Senior Environmental Planner Brad Yatabe, Legal SUBJECT Second Reading of Ordinance No. 175, 2017, Deleting Chapter 12, Article VIII from the Code of the City of Fort Collins Regarding Hydraulic Fracturing. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on December 19, 2017, removes references to a prohibition on oil and gas related activities from Chapter 12, Article VIII of the City Code. This is an administrative clean-up item reflecting the 2016 Colorado Supreme Court decision that struck down the City’s hydraulic fracturing moratorium because state law preempted it. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, December 19, 2017 (PDF) 2. Ordinance No. 175, 2017 (PDF) Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY December 19, 2017 City Council STAFF Cassie Archuleta, Senior Environmental Planner Brad Yatabe, Legal SUBJECT First Reading of Ordinance No. 175, 2017, Deleting Chapter 12, Article VIII from the Code of the City of Fort Collins Regarding Hydraulic Fracturing. EXECUTIVE SUMMARY The purpose of this item is to remove references to a prohibition on oil and gas related activities from Chapter 12, Article VIII of the City Code. This is an administrative clean-up item reflecting the 2016 Colorado Supreme Court decision that struck down the City’s hydraulic fracturing moratorium because state law preempted it. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Hydraulic fracturing (or fracking) is a process used to stimulate production of oil and gas wells, by pumping a mixture of water, proppants and other chemicals into an underground rock or coal formation. Advances in hydraulic fracturing technology have led to increased development of oil and natural gas resources in Colorado and elsewhere. Within Fort Collins City limits, there are currently 10 active oil and gas wells in which hydraulic fracturing may periodically occur as part of a “re-completion” process to stimulate increased oil and gas production. A hydraulic fracturing process would also likely occur for any new wells before the wells enters a production phase. In November 2013, a citizen-initiated five-year moratorium on the use of hydraulic fracturing within the City or on lands under its jurisdiction was approved by registered electors of the City. On May 2, 2016, the Colorado Supreme Court issued a decision in the City of Fort Collins v. Colorado Oil & Gas Association (“COGA”) case striking down the citizen-initiated ballot measure because the moratorium was preempted by state law. In accordance with this decision, it is proposed that references to prohibitions on hydraulic fracturing and related activities be removed from Chapter 12, Article VIII of the City Code. BOARD / COMMISSION RECOMMENDATION This item is proposed as an administrative clean-up item and no board or commission recommendations were sought. PUBLIC OUTREACH No public outreach was conducted for this item, as it is considered an administrative clean-up item ATTACHMENT 1 -1- ORDINANCE NO. 175, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS DELETING CHAPTER 12, ARTICLE VIII FROM THE CODE OF THE CITY OF FORT COLLINS REGARDING HYDRAULIC FRACTURING WHEREAS, in May 2016, the Colorado Supreme Court decided in City of Fort Collins v. Colorado Oil and Gas Association that the City’s moratorium on hydraulic fracturing was preempted by state law and was invalid and unenforceable; and WHEREAS, City Code sections 12-135 and 12-136 set forth the City’s hydraulic fracturing moratorium regulations; and WHEREAS, because the City’s hydraulic fracturing moratorium is invalid and unenforceable, City Code section 12-135 and 12-136 are invalid and unenforceable and should be removed from the City Code. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Chapter 12, Article VIII is hereby deleted in its entirety from the Code of the City of Fort Collins. Section 3. That the deletion of Sections 12-135 and 12-136 from the Code of the City of Fort Collins shall not invalidate or otherwise affect any operator agreement executed in association with such Code sections. Introduced, considered favorably on first reading, and ordered published this 19th day of December, A.D. 2017, and to be presented for final passage on the 2nd day of January, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk -2- Passed and adopted on final reading on the 2nd day of January, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk