HomeMy WebLinkAboutMemo - Read Before Packet - 4/4/2023 - Memorandum From Kirk Longstein Re: Summary Of Policy Direction For Oil And Gas Operational Standards [April 4, 2023 City Council Agenda Item #24]
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Community Development &
Neighborhood Services
281 North College Ave.
P.O. Box 580
Fort Collins, CO 80522-0580
970.221.6750
970.224.6134 - fax
fcgov.com/planning
MEMORANDUM
DATE: April 3, 2023
TO: Mayor and Councilmembers
THRU: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Caryn Champine, Planning, Development, and Transportation Director
Paul Sizemore, Community Development and Neighborhood Services Director
Clay Frickey, Interim Planning Manager
FROM: Kirk Longstein, Senior Environmental Planner
SUBJECT: Summary of Policy Direction for Oil and Gas Operational Standards – April 4, 2023
City Council Agenda Item #24
The purpose of this memo is to summarize the direction provided to staff regarding management of
oil and gas operational standards.
Bottomline
Council may adopt additional oil and gas operational standards; however, adoption of the
operational standards was paused after staff received feedback at the October 25, 2022, work
session to continue partnering with Larimer County and the state regarding monitoring and
enforcement.
Summary
September 17, 2019 Council Work Session – Staff received initial direction to begin
exploring a possible regulatory framework for oil and gas facilities.
January 26, 2021 Council Work Session – Staff received initial support for zoning and
setback restrictions. Staff provided updates on State progress in developing revised
Operational standards and confirmed direction to stay engaged at State level while
evaluating potential regulatory gaps for local operations.
March 25, 2022, Council Work Session – Staff provided an overview of draft oil and gas
regulations, and timeline towards adoption.
o Staff heard concerns from Council regarding leaks at the oil field site outside of City
limits, including current violation status and City, County and State engagement in
seeking resolution.
o Staff committed to continuing development of land use regulations and began
studying cost implication of administering a full operational standards program.
April 13, 2022 Joint City/County meeting - Fort Collins City Council and Larimer County
Commissioners met jointly, and directed staff to establish agreements to share air quality
monitoring and compliance resources.
October 18, 2022 Council Regular meeting - Council appropriated $100,000 in air quality
monitoring funds and adopted a resolution to establish an Intergovernmental Agreement
DocuSign Envelope ID: BE7B6382-E0DE-43F9-8FB8-3EAB8537FD19
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(IGA) to leverage resources by committing City funds towards the purchase of odorless,
optical gas imaging (OGI) cameras, which would then be owned, operated and maintained
by Larimer County field personnel, in part for complaint response and leak detections at oil
and gas facilities in and near Fort Collins City limits.
October 25, 2022, Council Work Session Staff heard support for:
o Proceeding with proposed adoption schedule for new land use code related to
zoning and setback restrictions for new oil and gas facilities.
o Continuing work collaboratively with State regulations and County and County
enforcement resources to ensure regulatory compliance at two (2) producing
facilities within city limits, and the more problematic storage and productions sites
abutting city limits.
o Continue to provide updates regarding compliance issues, financial assurance
requirement approvals and requests to plug and abandon existing wells. Return with
additional operational standard recommendations if gaps in regulation or
enforcement resources are encountered.
December 20, 2022 Council Regular meeting – Council unanimously approved new Land
Use Code standards and requested additional time and additional outreach prior to a
second reading. Outreach has focused on:
o Proving clarity regarding what has been proposed.
o Responding to emails and conducting targeted meetings to further discuss and
share how specific requested items are already included/addressed in existing City
or new State regulations.
Next Steps and Council Decision Points related to Operational Standards
On April 4, 2023, Council will have the option to adopt new LUC restrictions. Note that
adoption of LUC restrictions is not contingent on further development of additional
operational standards and a new regulatory compliance program, as these can be
considered separately.
If Council would like to explore adoption of additional Operational Standards further, then
staff recommends a future Work Session and further public outreach related to potential
consideration of additional regulations through updates to the Municipal Code along with
additional resource considerations for an inspection, enforcement, and compliance
program.
CC:
Cassie Archuleta, Air Quality Program Manager
Lindsay Ex, Environmental Services Director
DocuSign Envelope ID: BE7B6382-E0DE-43F9-8FB8-3EAB8537FD19