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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 Since then, the operator has withdrawn the application.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 DocuSign Envelope ID: C0C6C599-70E1-415A-B1B9-85845D829717 2 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 DocuSign Envelope ID: C0C6C599-70E1-415A-B1B9-85845D829717