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HomeMy WebLinkAboutMemo - Mail Packet - 12/20/2022 - Memorandum From Kirk Longstein Re: Agenda Item 17 -December 20, 2022 Council Meeting Item Re: Oil And GasPlanning, Development & Transportation Services Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com DATE: December 15, 2022 TO: Mayor and City Council THRU: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Caryn Champine, Director of Planning, Development and Transportation Paul Sizemore, Community Development and Neighborhood Services Director Rebecca Everette, Planning Manager FROM: Kirk Longstein, Senior Environmental Planner RE: Agenda Item 17 - December 20, 2022 Council Meeting item re: Oil and Gas Bottom line: The purpose of this memo is to provide the presentation materials for discussion during the December 20 Council meeting. Please let us know if there are any questions. New Oil and Gas Wells 12-20-2022 Kirk Longstein Senior Environmental Planner Rebecca Everette Planning Manager 2Policy Alignment CITY PLAN ENV 4.2 -AIR POLLUTANT SOURCES •Implement a full spectrum of options—including engagement, incentives and regulation—that focus on prevention of air pollution at the source. 2022-2023 COUNCIL PRIORITY #17 –Improved Air Quality •Reduce emissions through oil and gas regulations 2022 STRATEGIC PLAN Environmental Health •4.2 Improve indoor and outdoor air quality Neighborhood Livability •1.6 Transform regulations and revise procedures… to ensure new development advances adopted City plans and policies. 3Oil and Gas Areas of Focus New Oil & Gas Facilities Siting requirements Approval procedures Design standards Operational Standards for Existing Facilities Emissions controls Leak detection and repair Spill detection and response Reverse Setbacks Distance for new development from existing wells December 20, 2022 Leverage State and County regulations; County/City IGA adopted in Oct 2022 Minor code refinements proposed; May 2023 2019 2020 2021 2022 4Timeline OCT 2022 WS -Oil and Gas and Regular Meeting -Adoption of City/County IGA JAN 2021 WS –Zoning and Setbacks OCT 2019 WS –Initial Council direction APR 2019 Senate Bill 19-181 Adopted APR 2022 COGCC -Financial Assurance Rules MAR 2022 WS –Operational Standards and Reverse Setbacks AUG 2022 CDPHE –Compliance Advisory COGCC = Colorado Oil and Gas Conservation Commission; CDPHE = Colorado Department of Health and Environment IGA = Intergovernmental Agreement Community Engagement Community Engagement Community Engagement 5Community Engagement Since October •Council Work Session on October 25 •Released public draft of the regulations on November 8 (version 1) •AQAB Meetings •November 14 •November 29 (Work Session) •December 12 •P&Z Work Session & Hearing •November 10 •November 17 •Conversations with environmental groups •Final draft released for Council consideration on December 12 (version 2) 6Version-One Feedback Concern Support Zoning and setbacks for pipelines Code does not include operational standards Concern that oil and gas development is not fully banned Limit new wells to Industrial zone district only Support for Planning and Zoning Commission review of new facilities and pipelines Not enough time to review Code language 7Key Changes –Version 1 and Version 2 Stakeholder feedback on Version 1 (November 8)Version 2 updates (December 12) Pipelines are allowed in all zone districts Pipelines are limited to Commercial; Employment and Industrial; and Downtown. Development review includes too much staff discretion, including decision making authority Oil and Gas Facilities and pipelines are subject to a Type 2 development review by Planning and Zoning Commission Notifications should be provided to rental and leasehold tenants Neighborhood meeting and hearing notice must be mailed to the owners of record and occupants within 1-mile radius Concerns about gathering line and transmission lines Alternative site analysis required for all pipelines; Special conditions for approval; and Pipelines must be buried underground More ecological analysis needed at the conceptual phases of an application Ecological characterization study required during preliminary site analysis. 8Allowed Use –Oil and Gas Facilities Allowed Use: Oil and Gas Facilities •Add “oil and gas facilities” to the Industrial zone district as an allowed use. 9Setbacks New Oil and Gas Facilities New Oil and Gas Pipelines 2,000’ from all occupiable buildings Enhanced NHBZ buffer (e.g., 1000’ wetlands) 1,000’ water, ditches, conservation easements 50-150’ from buildings (based on public safety) 150’ surface water features Colorado Oil and Gas Conservation Commission Rules Rule 1202 High Priority Habitat buffer 500' buffer from Colorado Parks and Wildlife High Priority Habitat Spill prevention measures within 1,000’ of aquatic high priority habitats 10Pre-SB181 COGCC Setback Pre-SB181 Setbacks •500’ Residential Building Units •1000’ from High Occupancy Buildings •13.4% LAND AVAILABLE Drillable Areas FTC Oil Field 11Setbacks –2000 Feet 2000’ Setbacks •2000’ Presumptive Setbacks –COGCC •1.3% LAND AVAILABLE Drillable Areas FTC Oil Field 12Setbacks and Zoning Allowed Use: Oil and Gas Developments •Add “oil and gas facilities” to the Industrial zone district as an allowed use. •<1% LAND AVAILABLE FOR NEW WELLS 13What are oil and gas flowlines? Off-Location Flowlines transfer produced fluids (crude oil, natural gas, condensate, or produced water) from an oil and gas location to a production facility, injection facility, pit, or discharge point that is not on the same oil and gas location. Buried underground Placed within existing ROW and utility easements 14Allowed Use: Oil and Gas Pipelines Allowed Use: Oil and Gas Pipelines •Add “oil and gas pipelines” to Commercial; Employment and Industrial; Downtown districts. 15Prohibited Facilities Prohibited Oil and Gas Facilities (1) Injection wells for disposal of oil and gas exploration and production wastes; (2) Gas storage wells; (3) Disposal pits; (4) Commercial disposal facilities; (5) Centralized exploration and production waste management facilities; (6) Subsurface disposal facilities; and (7) Glycol dehydrators and desiccant gas processing dehydrators. (8) Onsite oil storage greater than 30 feet in height 16Development Application Submittal Oil and Gas Development Applications New Wells (Type 2) Planning and Zoning Commission New pipeline (Type 2) Planning and Zoning Commission Plugged and Abandoned (BDR) Basic Development Review Prior to neighborhood meeting (Conceptual Review) Alternative Site analysis Primary Site analysis Neighborhood Meeting & P&Z Hearing Notices 1-mile radius (Owners and Occupants) 12 square foot yellow sign Development Review newsletter and website 17Development Standards •Landscaping •25’ buffer to reduce fire potential •Fencing •Safety •Artificial Lifts •No pumpjacks (30’ Max) •Environmental Protections •1,000’ NHBZ 18Plugging and Abandoning Basic Development Review Required Monitoring COGCC Form 6 and Inspection 19Board Recommendations •Air Quality Advisory Board 1.Reduce the pace of the regulation adoption 2.Increase transparency and remove Staff discretion 3.City should expand regulations and consider wider range of rules •Planning and Zoning Commission (6-1 vote) The motion to approve the draft regulations (Version-1) carried 6-1 vote with the following recommended changes: 1.Remove oil and Gas pipelines as an allowed use within public open lands and residential zone districts; including, HMN, LMN, MH, MMN, RL, UE, RF, and RUL 2.Oil and Gas developments (new pipelines, oil and gas facilities) would be subject to a Planning and Zoning Commission Review (Type 2). Plugging and abandoning remains Basic Development Review 20Staff Recommendation •Staff recommends adoption of the Ordinance to regulate oil and gas development within the Land Development Code, as proposed. 22State and Local Authority Down-Hole Activities Definitions Financial Security Colorado Oil and Gas Conservation Commission City of Fort Collins Surface Activities Development Standards Building Code