HomeMy WebLinkAboutMemo - Mail Packet - 3/17/2020 - Memorandum From John Stokes Re: Oil And Gas UpdateNatural Areas Department
1745 Hoffman Mill Road
PO Box 580
Fort Collins, CO 80522
970.416-2815
970.416-2211 - fax
fcgov.com/naturalareas
naturalareas@fcgov.com
MEMORANDUM
Date: March 12, 2020
To: Mayor and City Councilmembers
From: John Stokes, Interim Community Services Director
Thru: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
Cc: Jason Graham, Director Plant Operations, Utilities Water Reclamation and
Biosolids
Re: Oil and Gas Update
The purpose of this memo is to provide an update on oil and gas exploration in northern Larimer
County, near Soapstone Prairie Natural Area and Meadow Springs Ranch.
Current Activities
An oil and gas leasing and exploration company has identified northern Larimer County as a
prospect. The company conducted seismic exploration at Rawhide Power Plant about a year ago.
No subsequent activities have occurred. The company hopes to “prove up” the resource and sell
its lease holdings which are advertised for $100,000,000. It is unknown what the company’s
drilling plans are, although it has stated publicly that it plans to drill eight exploratory wells. It is
not known where those wells might be located. This sequence has occurred several times in the
past with other companies without any subsequent exploratory drilling or production.
Larimer County currently is formulating an Oil and Gas ordinance. A Planning Commission
hearing to review the draft ordinance was held February 19. When the ordinance is complete
and adopted, the County will modify its Land Use Code to implement the ordinance. City staff
are monitoring the Land Use Code update process which has various phases and is expected to
extend through the summer. City staff will review and potentially provide comments to the
County regarding any proposed changes to the Land Use Code that affect City-owned properties.
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The City’s Jurisdiction
City of Fort Collins Land Use Code regulations apply only to properties within city limits.
Soapstone Prairie Natural Area, Meadow Springs Ranch, and the Platte River Power Authority
Rawhide Energy Station are in unincorporated areas of Larimer County, outside the City of Fort
Collins jurisdiction. If permit applications for oil and gas development were proposed at any of
these locations, Larimer County Land Use Code regulations would apply.
Soapstone Prairie Natural Areas and Meadow Springs Ranch
As the surface owner of Soapstone Prairie Natural Area and Meadow Springs Ranch, the City
has some authority in determining if and where oil and gas development can occur at these
properties through close consultation with the operator, and by submitting comments to the
Colorado Oil and Gas Conservation Commission (COGCC) during the public comment period.
The City may also enter into a Surface Use Agreement (private contract) with the oil and gas
company to address public health, safety, welfare and environmental impact concerns, as
applicable. The City will continue to use the Energy by Design approach to evaluate impacts if
oil and gas operators express interest in exploration or drilling on city-owned properties.
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