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Home My WebLink AboutMemo - Read Before Packet - 9/5/2023 - 2023 Oil And Gas Reserve Setback Buffer Requirements Powerpoint Presentation – Council Agenda Item #19Oil and Gas Reverse Setback Buffer Requirements 2023 Kirk Longstein Senior Environmental Planner 2Oil and Gas Areas of Focus New Oil & Gas Facilities Siting requirements Approval procedures Design standards Operational Standards Emissions controls Leak detection and repair Spill detection and response Reverse Setback Buffer Distance for new development from existing wells Adopted April 4 Larimer County & CDPHE partnership Code refinements proposed; September 5 3What is a reverse setback buffer? OG Reverse Setback From the building OG Setback From the Well Fort Collins Code New wells: 2,000’ setback from all buildings Existing Wells: 2,000’ setback from residential Timeline 4 Key Dates: •1920’s – First Oil and Gas drilling in Fort Collins •2013 – Moratorium & 350’ reverse setbacks •2018 – Fort Collins LUC updates – 500’ reverse setbacks with 150’ alternative compliance for PA wells •2021 – SB181 Rule 604 updates – 2,000’ setback from new well siting •2023 – Fort Collins LUC updates – 2,000’ setback from new well siting Current Land Use Code Ordinance 114-2018 •New Residential Development applications, not existing homes. •500’ buffer or the Colorado Oil and Gas Conservation Commission designated setback distance, whichever is greater. •150’ buffer alternative compliance buffer reduction from plugged and abandoned wells. •5 years of annual monitoring at the well location for plugged and abandoned wells. •Buffer does not extend beyond major collector street, arterial street, or highway 5 A producing well operates in the Hearthfire subdivision north of Fort Collins in this Oct. 23, 2013, photo. Coloradoan Library Fort Collins Field 6 One Operator •Prospect Energy City •10 Active Wells o 4 Producing o 6 Injecting •20 Abandoned Wells o 5 Drilled and Abandoned o 15 Plugged and Abandoned GMA •16 Active Wells o 8 Producing o 8 Injecting Oil and Gas Overview 7 WELL NOT ABANDONDED •Producing •Enhanced Oil Recovery •Injection (Enhanced Oil Recovery) Well Fluids consisting of brine, freshwater, steam, polymers, or carbon dioxide are injected into oil-bearing formations to recover residual oil through a Production Well. 2,000-feet setback No Monitoring required Modification of standards allowed No less than 500-feet Oil and Gas Overview 8 ABANDONDED, NOT RECLAIMED •Drilled (Dry) and Abandoned Well which has proved to be non- productive which means it was covered as soon as it was drilled and never produced. 500-feet setback 5-years of monitoring No modification of standard ABANDONDED, AND RECLAIMED •Plugged and Abandoned Well is permanently shut down, plugged, wellhead removed, and considered safe and secure by COGCC inspection. 150-feet setback 1 environmental site assessment prior to permits and once again 5-years later No modification of standard Disclosure •Recorded Plat shows the oil and gas buffer. •Condo Association declaration. •Point of Sale Disclosure notice 30-days prior to close •Sellers and Landlords 9 Allowed Uses New development and existing properties Secondary (uninhabitable) structures allowed Secondary (habitable) structures not allowed No permanent playground structures in common areas **Additions to primary structures on parcels within a buffer are allowed 10 11Summary of proposed changes 2,000’ - active wells (PR &IJ) 500’ – abandoned not fully reclaimed 150’ abandoned fully reclaimed No monitoring for active well buffer 5 yrs. monitoring not fully reclaimed 2x monitoring fully reclaimed Existing neighborhoods – allowed use within the buffer: Secondary structures allowed Occupiable buildings not allowed No new common area playgrounds Point of listing disclosure 12Decision Points 1. Staff recommend adoption of the Ordinance including recommendations from the Planning and Zoning Commission including language that permits any applicant that submits a completed development application prior to the effective date of the proposed ordinance to continue development review under standards adopted by Ordinance 114 -2018. 2. Adopt the ordinance on First reading with the following considerations for changes ahead of Second reading: a.Exclude existing homes located within the suggested buffer and apply standards to new development applications, only b.Remove point of sale disclosure requirements for existing homes located within the proposed buffer 3. Delay adoption of the ordinance pending the status of an ECMC Rule 211 hearing (estimated: 4-6 months) 13 Back up Back up slides 14Oil and Gas Monitoring Well Status Proposed Monitoring timeline Risk Trade -off Plugging and Abandoning 1 X prior to Permit 1X 5yrs after Permit Low Potential casing failure & cement shrinkage in clay soil and salty soil Dry and Abandoned 5 years Low Potential conduit to adjacent ground water source Producing None – operator requirement High Hydrocarbons present at the surface during production Injection – Enhanced Oil Recovery wells None – operator requirement Medium Closed loop greywater injection. subsurface risk for potential sources of benzene Injection – Disposal wells N/A N/A – none in Fort Collins Brines are separated from hydrocarbons at the surface and reinjected into the same or similar underground formations for disposal. *Greatest risk - older wells before 1950 15Enhanced Oil Recovery Injection Wells MSSU #30-17 – County Club Reserve MSSU #30-07 16Peer City reverse setback buffer comparisons Municipality or County Producing well Plugged and Abandoned Broomfield 2,000’250’ Commerce City 1,000’50’ Erie 2,000’150’ Fort Collins 2,000’150’ Loveland 500’500’ Longmont 750’150’ Larimer County 1,000'200' 17Peer City Research - reverse setback buffers from injection wells Municipality Differentiate Injection Wells Injection Well Reverse Setback Comments Boulder Yes 2000’ single well 2500’ multi well Injection wells are defined as pre-production. Broomfield No 2000’Producing and injection wells both have 2000-foot reverse setbacks. Broomfield does not have any water injection wells. Commerce City No 1000’Producing and injection wells both have 1000-foot reverse setbacks. Erie No 2000’Producing and injection wells both have 2000-foot reverse setback from wells being proposed or 500-foot from existing wells. Loveland No 1000’Producing and injection wells both have 1000-foot reverse setbacks. Longmont No 750’Producing and injection wells both have 750-foot reverse setbacks. Injection wells are defined as inactive wells in the Land Use Code. Thornton No 500’Any development within 500 feet of the city will notify the owner/operator and triggers certain requirements 18Peer City Research - reverse setback buffers - Variances Municipality Modification of Standards Code Language Boulder No Broomfield Yes “The land use review commission and city council may authorize variances from these setbacks in cases where, due to exceptional topographical conditions or other conditions peculiar to the site, an unnecessary hardship is placed on the subdivider or developer. Such variances shall not be granted if it would be detrimental to the public good or impair the intent and purposes of this title. The conditions of any variance authorized shall be stated in writing.” Commerce City No Erie No Loveland Yes “An owner of any real property subject to the requirements and limitations of Division 18.10.04, Oil and Gas Overlay Zone, may request a variance from those requirements and limitations. The grounds for such variance shall be those set out in Section 18.17.15.07, Variances, to the extent applicable. However, any variance to the oil and gas overlay zone standards must be in compliance with the underlying zoning or approved development plan governing the subject property….” Longmont No Thornton No 19Setback Scenario Unabandoned and abandoned wells 20Setback Scenario Prior to the adoption of SB19-181 500 – Feet Reverse Setback 21Setback Scenario After the adoption of SB19-181 2,000 – Feet Reverse Setback 22Proposed Setback Scenario Staff Recommendation: •2,000-feet unabandoned wells •500-feet abandoned wells •150-feet abandoned wells, reclaimed 1.Apply oil and gas reverse setbacks to all occupiable buildings, not just residential uses. 2.Eliminate the buffer exemption for crossings of arterial roadways. 3.Increase buffer for developments near existing oil and gas operations from 500’ to 2,000’ to match ECMC and Fort Collins new code setbacks. 4.Allow modification of standards for Enhanced Oil Recovery (EOR) Injection well buffers, no less than 500’. 5.Decrease soil-gas and ground water monitoring requirements for plugged and abandoned wells from once every 5 years to once prior to permits and once again at the end of a five-year construction guarantee. 6.No change to buffer for developments near existing abandoned wells (not fully reclaimed) at 500’ 7.No change to buffer near plugged and abandoned wells (fully reclaimed) at 150’ 8.No change to disclosure requirements for future property owners via a property covenant 9.Add requirements for point-of-sale disclosure notice for new developments and existing homes within a 2,000’ buffer. 10.Add prohibition on detached occupiable buildings from existing buildings located within the oil and gas buffer. 23Summary of proposed changes Senate Bill 181 UPDATED: January 15, 2021 Rule 604 b. •No Working Pad Surface will be located more than 500 feet and less than 2,000 feet from 1 or more Residential Building Units or High Occupancy Building Units •Any Wells, Tanks, separation equipment, or compressors proposed on the Oil and Gas Location will be located more than 2,000 feet from all Residential Building Units or High Occupancy Building Units 24 Oil and Gas Wells located on Natural Areas Within City Limits – Active oil and gas field 2 Abandoned wells Drilled and plugged 1983 25 Ridgewood Hills Within City Limits – 8 parcels impacted Not Active oil and gas field Abandoned, Reclaimed 150-feet setback Fully Reclaimed 5/24/2001 26 Coyote Ridge Elementary 27Active Oil and Gas Fields