HomeMy WebLinkAboutMemo - Mail Packet - 5/12/2020 - Memorandum From Kelly Smith Re: Oil And Gas Update - Status Update1
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 28, 2020
TO: Mayor and Councilmembers
THRU: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Caryn Champine, Planning, Development and Transportation Director
Tom Leeson, Community Development and Neighborhood Services Director
FROM: Kelly Smith, Senior Environmental Planner
SUBJECT: Oil and Gas – Status Update
The purpose of this memorandum is to provide an update on the development of new oil and gas
regulations at the State and local levels in response to authorities granted through Senate Bill 19-
181.
BOTTOM LINE
A Work session was scheduled for April 28, 2020 to discuss regulatory options for siting new oil
and gas development within City limits. This Work session was moved to the unscheduled agenda
to accommodate topics related to COVID-19. The schedule change will not result in project
impacts.
At the time of the September 16, 2019 Oil and Gas Work session, a recompletion permit within City
limits was under Colorado Oil and Gas Conservation Commission (COGCC) review. Since then,
the operator has withdrawn the application. If development interests in City limits emerge, staff will
know in advance of the state permitting process through preliminary inquiries regarding mineral
resource pooling requirements. Should new development interest become known prior to the
adoption of local regulations, staff will notify Council and provide timelines and level of urgency.
BACKGROUND
Mission Change Rulemaking Update
On March 14, 2020, the COGCC released Draft Mission Change rules that provide a glimpse into
how the COGCC is interpreting state requirements, and the division of local and state authorities.
The schedule for the Mission Change rulemakings is pending, as the COGCC develops an approach
to engage the public during safer-at-home restrictions. Staff is actively participating in the rulemaking
process and has joined party status with the Alliance of Local Government Coalition that include
Lafayette, Longmont, Broomfield and Boulder County.
STATUS UPDATE
The project team has facilitated multiple outreach opportunities using a variety of platforms to
understand high level concerns and community preferences for regulating the siting of new oil and
gas development. Staff collaborated with the City’s GIS Department to evaluate areas within the
GMA that are currently vulnerable to oil and gas development using existing COGCC setbacks.
Staff also applied more protective siting regulations, using setback distances and zoning, to
determine how regulations would influence where oil and gas development could occur within the
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community. Scenarios were presented to community members at public open houses and City
board meetings. The Our City project website also featured open house materials and a
questionnaire to broaden the community conversation. Over 250 community members participated
in the process. Key preferences are listed below:
Prohibit oil and gas development on Natural Area properties (91%)
Develop more protective regulations than the state (92%)
Top 3 concerns:
o Regional air quality
o Localized air quality
o Ecosystem, surface water and environmental impacts
Community feedback has been collected through the following outreach activities:
Direct mailing to property owners within 2000 feet of existing active oil and gas wells, with
information on the project, public open houses, city website, and CDPHE’s health study
(500 letters mailed)
Interactive presentation at a Super Board Meeting held in February 2020 (over 50
attendees with 14 boards and commissions represented)
Online questionnaire to collect feedback on concerns and thoughts, as advertised through
direct mailing, social media, news release, and Nextdoor website (180 completed
responses to date)
Two interactive public open houses with Larimer County, CDPHE and operator in
attendance to answer questions (50 attendees)
Presentations at Planning & Zoning Board, Natural Resources Advisory Board, and Air
Quality Advisory Board Work sessions
Individual phone calls and emails to discuss questions and concerns as needed
In addition to broad community outreach, staff also consulted with the following groups:
Colorado Oil and Gas Conservation Commission
Representative of Prospect Energy (local oil and gas operator)
Developer of the proposed Country Club Reserve residential project
Local Government Roundtable: 14 local jurisdictions meeting biweekly to discuss COGCC
rulemakings
Colorado Department of Public Health and Environment
Larimer County Planning staff
Larimer County Department of Public Health
Representatives from the American Petroleum Institute (API) and Colorado Oil and Gas
Association (COGA).
NEXT STEPS
Staff will continue to evaluate regulatory options and provide quarterly updates, pending additional
opportunity for a future Work session. Given the current uncertainty around safer-at-home orders
and social distancing related to COVID-19, staff will evaluate how to ensure continuous meaningful
community engagement.
cc:
Jacqueline Kozak-Thiel, Chief Sustainability Officer
Lucinda Smith, Environmental Services Director
Cassie Archuleta, Air Quality Program Manager
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