HomeMy WebLinkAboutMemo - Mail Packet - 10/19/2021 - Memorandum From Cassie Archuleta Re: Oil And Gas - Regulatory Process Update
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Environmental Services
222 Laporte Ave
Fort Collins, CO 80522
970.221.6600
970.224.6177 - fax
fcgov.com
MEMORANDUM
DATE: October 12, 2021
TO: Mayor and Councilmembers
THRU: Kelly DiMartino, Interim City Manager
Kyle Stannert, Deputy City Manager
Jacqueline Kozak-Thiel, Chief Sustainability Officer
Lindsay Ex, Environmental Services Director
FROM: Cassie Archuleta, Air Quality Program Manager
SUBJECT: Oil and Gas Regulatory Process Update
The purpose of this memorandum is to provide an informational update regarding progress on the
development of local regulations for oil and gas operations.
Bottom Line
The City is continuing to work towards adopting comprehensive regulations for oil and gas operations, per
new local authority granted through the adoption of Senate Bill 19-181. Additionally, the State and County
have recently completed a series of rulemakings that established new regulatory frameworks. In alignment
with Council and community feedback, local regulations are being developed to go beyond new State and
County regulations to eliminate or minimize surface impacts from existing and new development. Quarterly
updates will be provided as regulations are developed, and a Council Work Session is scheduled for March
2022.
Background
The adoption of Senate Bill 19-181 in April 2019 prompted a comprehensive rulemaking overhaul at the
State level and marked In
Fort Collins, surface access for oil and gas development is already limited by infill and will become
increasingly so as the City continues to grow. Existing oil and gas development includes one operator with
ten (10) active wells in a small oilfield in northeast Fort Collins.
Progress Update
The Colorado Oil and Gas Conservation Commission (COGCC) and many local jurisdictions have
undertaken broad efforts to update regional and local oil and gas regulations. Newly adopted State
regulations set the floor for potential new City regulations related to surface use, and recently adopted
Larimer County regulations apply and City owned property
outside of City limits.
Currently, City staff are developing draft regulations and continuing to participate in ongoing COGCC
rulemakings. General concepts and objectives guiding rule development are included in Attachment A, as
informed by Council and community feedback to date. Key elements of this feedback have included:
Public engagement, which has included open houses, and numerous meetings and conversations
with City Boards, environmental and neighborhood groups;
A January 2021 Work Session, where Councilmembers indicated support for the use of industrial
zoning requirements and setbacks for new oil and gas permits, which will effectively eliminate
potential space for new wells within City limits;
Engagement with Larimer County planners as new regulations were developed; and
Conversations with the current operator and industry representatives from the American Petroleum
Institute (API) and the Colorado Oil and Gas Association (COGA).
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Existing Operations
The lone operator in Fort Collins, Prospect Energy, has submitted a permit for new activity at an existing well
outside of City limits, and within the Fort Collins GMA. This would not include drilling of a new well but would
involve hydraulic fracturing and could potentially extend the life of existing wells. The City and Larimer
County are in conversations with the COGCC to determine potential City and County authority for additional
development at these existing wells. If there are options to influence this process, such as an opportunity to
annex the property or defer annexation, staff will bring them to Council for consideration.
Timeline and Next Steps
Per concepts listed in Attachment A, the City is working with a consultant to draft code and best
management practices for Council consideration. Process steps include:
November December, 2021; internal review
January February 2022; additional outreach including community members, boards, commissions
and the operator
March 2022; Council Work Session
Additionally, staff will continue to provide quarterly progress updates via memoranda.
CC: Kelly Smith, Senior Environmental Planner
Rebecca Everette, Planning Manager
Paul Sizemore, CDNS Director
Caryn Champine, PDT Director
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ATTACHMENT A
Oil and Gas Regulations - Conceptual Elements and Objectives
Item/Element Objective Applicable/Anticipated
Regulatory Placement
Siting New Development
New Development within
City limits
Limit to Industrial zones and
residential buildings. Also evaluate
setbacks for water bodies and other
development.
Land Use Code
New Development within
Grown Management Area
(GMA)
Limit new development to
maximum extent possible. Work
within State and County authority.
Larimer County
regulations
New Development within
City-owned Natural Areas
(outside of City limits)
Limit new development to
maximum extent possible. Work
within State and County authority.
Larimer County
regulations
Reverse/reciprocal
setbacks (distance for new
homes from existing wells)
Updated in 2018 to align with
setbacks for new wells. Need to
align with new COGCC setbacks
and GMA considerations.
Land Use Code
Permitting/Approval Process
Public Review/Engagement Require robust public notification
and review process.
Land Use Code
Surface Owner Agreements Include as part of permitting
process.
Include in application
requirements
Plans required (e.g., air
quality, transportation,
noise, emergency
response, etc.)
Local review of plans to meet or
exceed State, County and City
standards.
Include in application
requirements
Financial assurances Ensure sufficient financial
assurances for potential future
costs to plug, reclaim and
remediate a well site.
Documentation required
annually
Operational Standards/ Management Practices
Air Quality, Water Quality,
Natural Resource
Protection, Visual and
Noise Mitigation, etc.
Define standards and best
practices that prevent nuisances
and potential health and
environmental impacts.
Develop Best
Management Practices
(BMPs) to be
referenced in City Code