HomeMy WebLinkAboutMemo - Mail Packet - 4/4/2023 - Memorandum From Kirk Longstein Re: Council Oil And Gas QuestionsPlanning, 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
MEMORANDUM
DATE: March 30, 2023
TO: Mayor and City Council
THRU: Kelly DiMartino, City Manager
FROM: Kirk Longstein, Senior Environmental Planner
RE: Council Oil and Gas Questions
The purpose of this memo is to provide responses to the following questions from
Councilmember Canonico as it relates to proposed oil and gas regulations:
• Do we have any data on local governments that adopted operational standards?
• How much land in those jurisdictions was available before adoption for Oil and Gas
development and how much land is now available after the standards were put in place?
Bottom Line:
There is not comprehensive data readily available as requested for the before and after
analysis. Staff did reach out to the local oil and gas roundtable and received a few immediate
responses that centered around the impacts of investing in a full operational standards program.
Some were able to provide data to the second question as you will see below. In general, the
communities that are highlighted to have adopted operational standards have more oil and gas
activity than Fort Collins does, and the one example provided by Westminster (that has similar
activity as Fort Collins) has taken a similar approach to what staff has proposed. Please let staff
know if further research on these questions is desired.
Peer Community responses:
City of Westminster:
Currently only one staff member actively works on oil and gas given the unlikely nature of a new
oil and gas development application within city limits. Despite the limited oil and gas field,
Westminster adopted new oil and gas rules in 2021. https://www.cityofwestminster.us/OilGas
• 2,000-foot setback from occupiable structures
• 2000-foot reverse setback for new structures near existing oil and gas wells.
• Prohibits wells from City Open Space and Parks.
Historically, Westminster had one active well, but it closed in 2021. With the setbacks alone,
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Westminster estimates that there is less than 1% of the city that would be available to drill a new
well given the urban setting. With respect to operational standards, the County of Broomfield
has a much greater depth of knowledge and experience than Westminster and so the city
planned to work with Broomfield through an IGA to utilize their enforcement and inspection staff
if Westminster were ever approached for new oil and gas development. The City never signed
an IGA and has not discussed it since the rules were adopted given the lack of interest in drilling
new wells within city limits.
Town of Erie:
The Town of Erie adopted very similar rules to the City of Fort Collins in January 2021. (see
Chapter 12 of our Municipal Code for full details).
• 2,000-foot setback from occupiable structures
• 500’ setback from surface waters and registered water wells and being outside of a
floodplain
• No modification or variance for 2,000’ setback from residential lots or parks, sports fields
and playgrounds, or other outside activity areas and any occupied structure
The percentage of the land availability within Erie city limits and outside the setbacks is ~5%,
but all of that potential area would require rezoning. Erie’s Rules requires rezoning of the parcel
to be utilized by the Oil and Gas facility to that of Heavy Industrial usage. The rezoning process
would require public hearings with both our Planning Commission and the Board of Trustees.
As for the creation of a full enforcement/inspection program; Erie is in the opposite predicament
in that the town has such a large number of active wells within the municipality (~95) that
redundantly inspecting/enforcing COGCC rules is resource inhibitive at the moment.
La Plata County:
La Plata has 2,000 active wells and related oil and gas locations within the county’s jurisdiction
(and another 1,000+ oil and gas locations physically within the county but subject to the
jurisdiction of the Southern Ute Indian Tribe).
La Plata County has been regulating the siting and surface impacts of oil and gas development
within the unincorporated county since approximately 1988, and we are currently in the process
of updating our regulations in light of SB 19-181 and new COGCC rules.
https://www.co.laplata.co.us/services/community_development_services/planning/oil___
gas___water_rights/index.php
Available land is not a useful benchmark given the differences between Fort Collins’ urban
environment and La Plata’s rural county, but La Plata is also currently proposing some county-
specific setbacks that would limit available land. Due to the County’s analysis that COGCC’s
rule 604 would actually allow setbacks as little as 200 feet with informed consent, their Board
has given current policy direction to create a non-waivable 500 foot floor to setbacks from
residential, commercial, and industrial buildings while otherwise generally following the
COGCC’s default position of 2,000 foot starting setback with the ability to reduce it to 500 feet
with other conditions satisfied. La Plata’s current draft also proposes a 500 foot minimum
reciprocal setback meant to prevent new residential, commercial, industrial buildings and some
other public gathering spaces from siting too close to an existing oil and gas facility.
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La Plata currently has operational standards, including required financial assurances, reporting
requirements, incorporation of noise standards, and visual mitigation requirements. La Plata’s
proposed new draft continues this tradition of including operational requirements—sometimes
by simply referencing the COGCC standards La Plata staff is incorporating and sometimes by
setting for the substance of staff’s own expectations that are in addition to COGCC standards.
La Plata has historically had a single “natural resources planner” who was primarily dedicated to
processing oil and gas related development applications, reviewing financial assurances,
requests for releases of financial assurances, etc. It is an open discussion about whether the
proposed new regulations, if adopted, will require additional staff resources or possible
increased use of consultants on occasion. So far, our Board has suggested that they value and
desire the active involvement of a county staffer in permitting review and subsequent
compliance rather than deferring to or relying upon COGCC’s permitting and compliance
processes.
City of Aurora:
The City of Aurora has approx. 25% of the area inside Aurora City limits available for oil & gas
operations. Some of that has current planning for other industries but could be used for Oil and
Gas drilling. https://www.auroragov.org/residents/oil_and_gas_drilling
The City of Aurora relies on the COGCC 2000-foot setback rules and does not duplicate it in the
local regulations. Aurora also has a 150’ reverse setback for new developments from existing oil
and gas wells.
Aurora includes operational standards in their Code and has hired 3 staff resources: Manager,
Inspector, and Planner. Those costs are covered by our Annual Inspection Fee for 138 wells
plus 42 pipeline associated facilities, and fees for applications for new wells. To support
operational standards, Aurora also purchased a 4-wheel drive pickup truck for field access and
inspections, a $95,000 FLIR camera, and various other smaller equipment.
Boulder County:
Boulder County has approx. 200 older wells and no new oil and gas development.
Boulder County rules include operational standards and currently dedicates approximately 2
FTE positions to inspections and enforcement, along with participation from several other staff
members. Boulder has a full-time, on-the-ground inspector with experience in IR camera and
other inspections, as well as an in-office regulatory specialist managing the response to
conditions found by the inspector (along with other duties). The Lead Staff also assist from the
county attorney’s office, as do staff from Public Health, land use, and other departments.
Boulder imposes an annual per-well registration fee designed to recover the costs of the 2
positions and an amortized equipment figure.
CC:
Caryn Champine, Director of Planning, Development and Transportation
Paul Sizemore, Community Development and Neighborhood Services Director
Clay Frickey, Interim Planning Manager
Lindsay Ex, Environmental Services Director
Cassie Archuleta, Air Quality Program Manager
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