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HomeMy WebLinkAboutEmail - Read Before Packet - 9/5/2023 - Email From Kirk Longstein Re: Follow-Up On Oil And Gas Questions – Council Agenda Item #191 Sarah Kane From:Kirk Longstein Sent:Tuesday, September 5, 2023 3:18 PM To:City Council; Kelly DiMartino; Tyler Marr; Rupa Venkatesh; Sarah Kane Cc:Caryn M. Champine; Paul S. Sizemore; Clay Frickey; Brad Yatabe; Carrie Daggett Subject:Follow up on Oil and Gas questions Mayor and members of City Council, Planning Staff has received a number of inquiries from residents residing within the Hearthfire neighborhood related to Agenda Item 19, reverse setbacks for oil and gas. We are prepared to discuss these quesƟons during tonight’s hearing and offer the following for the Council’s consideraƟon: Stakeholder feedback - Impacts to property values: Residents within the Hearƞire neighborhood HOA have shared concerns that the proposed Code creates a nega Ɵve market signal to future home buyers that may impact home values. Hearthfire HOA residents have shared support for reverse setbacks and have suggested that Council delay adopƟon of the Ordinance unƟl aŌer oil and gas wells have been fully plugged and abandoned. The proposed Code requires exisƟng homes adjacent oil and gas faciliƟes adhere to the prescribed buffer standards (in addiƟon to new development applicaƟons); including a prohibiƟon on detached occupiable buildings (e.g., ADUs), and a required point of sale disclosure provided to future home buyers. The staff proposal to include exisƟng homes and plaƩed developments within the buffer intends to achieve the following goals: 1. Limit increasing density within the acƟve oil and gas field by prohibiƟng addiƟonal occupiable buildings. 2. limit areas where children congregate for extended periods of Ɵme adjacent oil and gas faciliƟes 3. Consumer protecƟon through transparency of informaƟon relevant to home buyers of real property within the acƟve oil and gas field. Trade-offs to consider: The planning and zoning commissions shared concerns related to the risks associated with fully reclaimed wells. The commission weighed the trade-offs of extending monitoring requirements beyond 5-years for new development applicaƟons and risks to future residents. Although It is the staff’s intent to submit a Form 211 applicaƟon to the Colorado Energy and Carbon Management Commission (ECMC) to require Prospect Energy to plug and abandoned low producing oil and gas facili Ɵes the following condiƟons remain: 1. The applicaƟon to the ECMC to request plugging low producing wells only includes 4 producing wells within city limits and not the remaining 6 enhanced oil recovery injecƟon wells. Enhanced oil recovery injecƟon wells also include a 2000-feet setback as proposed by staff and the setback also extends into the Hearthfire neighborhood 2. Full reclamaƟon by plugging and abandoning oil and gas wells does not fully address stakeholder concerns for transparency of oil and gas risks to future fort Collins residents. As evidenced through a recent ar Ɵcle in the ColoradoSun, cement is not a forever product and future homeowner within the neighborhood located within the proposed buffers may conƟnue to be at risk of a contaminaƟon events and future clean-ups associated with hydrocarbons. Decision points for Council’s consideraƟon: 2 1. Staff recommendaƟon to adopt the ordinance as draŌed 2. Adopt the ordinance on First reading with the following consideraƟons for changes ahead of Second reading: a. Exclude exisƟng homes located within the suggested buffer and apply standards to new development applicaƟons, only b. Remove point of sale disclosure requirements for exisƟng homes located within the proposed buffer 3. Delay adopƟon of the ordinance pending the status of an ECMC Rule 211 hearing (es Ɵmated: 4-6 months) AddiƟonal InformaƟon for Council’s consideraƟon related to exisƟng residents residing within the proposed buffer: Fort Collins Neighborhoods Number of Parcels impacted by the proposed 2,000-feet buffer Hearthfire 147 Richard's Lake 136 Country Club Reserve 160 Fort Collins Neighborhoods Number of Parcels impacted by Staff proposal if ALL Wells in the City are fully reclaimed and receive a 150-feet buffer Hearthfire 17 Morningside 1 Richard's Lake 5 Ridgewood Hills 8 Water's Edge 1 AddiƟonal InformaƟon regarding the ECMC Rule 211 Hearing: Fort Collins and Larimer County have discussed working together to file a Colorado Energy and Carbon Management Commission (ECMC) Rule 211 claim to have all of Prospect Energy’s inactive and low producing wells plugged and abandoned. An ECMC Rule 211 hearing requires the applicant (the City in this case) to demonstrate that the wells are not currently “used or useful.” Scheduling a hearing date with the ECMC usually takes between 4-6months and before staff can schedule a hearing with the ECMC, there is additional analysis work needed to prepare an application. For example: The Rule 211 claim can only request the plugging of four of the ten Prospect Energy wells within the city limits. E.g., (4) Pump jacks , but not (6) injection wells. . . . . . . . . . . . . . . . . . . Kirk Longstein, AICP (he/him/his) Senior Environmental Planner City of Fort Collins Direct: 970-416-2865