HomeMy WebLinkAboutMemo - Mail Packet - 12/22/2020 - Memorandum From Kelly Smith Re: Oil And Gas - State Rulemaking Update
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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: December 15, 2020
TO: Mayor and Councilmembers
THRU: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
Caryn Champine, Planning, Development and Transportation Director
Paul Sizemore, Interim Community Development and Neighborhood Services Deputy
Director
FROM: Kelly Smith, Senior Environmental Planner
SUBJECT: Oil and Gas – State Rulemaking Update
The purpose of this memorandum is to provide an update on City staff’s involvement in the Colorado
Oil and Gas Conservation Commission (COGCC) rulemaking process, and next steps for
development of local regulations.
BOTTOM LINE
On November 23, 2020, the COGCC adopted new comprehensive rules related to oil and gas
operations. A City Council work session is scheduled for January 26, 2021 where staff will present
regulatory options for siting new oil and gas development within city limits using recently adopted
State regulations as a framework for baseline requirements. The COGCC is expected to initiate
additional rulemakings in the future, including updates to financial assurances for leaks, spills and
reclamation requirements.
STATE RULEMAKING
In Colorado, oil and gas operations are regulated by the COGCC, and air pollution associated with
operations is regulated by the Air Quality Control Commission (AQCC). On April 16, 2019, the State
adopted Senate Bill 19-181, which prompted the COGCC to initiate comprehensive oil and gas
rulemakings. Staff actively participated in the rulemaking process by joining party status with the
Affiliated Local Government Coalition (ALGC), which included the City and County of Broomfield,
Boulder County, City of Lafayette, Town of Erie, City of Longmont, and the Northwest Colorado Council
of Governments. The ALGC represented the largest party comprised of local governments and played
a central role in influencing outcomes, particularly related to increased coordination and clearer defined
authorities between local/State entities.
During the rulemaking, the COGCC released five drafts of the 200-600 series and two drafts of the
800-1200 series. After the release of each draft, staff coordinated with the ALGC to provide verbal
testimony, written testimony, redlines and responses to positions made by other parties. Below is a
description of key high-level positions advocated by the ALGC (organized by rule) that were integrated
into COGCC adopted rules:
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Key ALGC Positions:
200 Series (General Provisions)
Require operators to ensure contractors and subcontractors comply with rules.
Engage local governments in investigations regarding non-compliance with COGCC rules and
transfer of ownership
300 Series (Permitting Process)
COGCC sets minimum regulatory floor above which local governments can adopt more
stringent regulations
Alternative Location Analysis (ALA) must include local governments during the analysis, and
be triggered if the project is sited within 500 feet of an “area of concern” (e.g. floodplain)
Require operator to submit detailed data on potential human health impacts and air emissions
Require operator to submit Cumulative Impacts Plan with each application
Increased local consultation during the completion of Comprehensive Area Plans
400 Series (Operations and Reporting)
Statewide ban of toxic chemicals in hydraulic fracturing fluids
Continuous noise monitoring requirements for locations within 2,000 feet of a home
Increased submittal requirements for pre-production and production lighting plans
600 Series (Safety and Facility Operations Regulations)
Commission adopted a 2,000-foot setback from homes and high occupancy buildings (with
waiver provisions)
1200 Series (Protection of Wildlife Resources)
Advocated for broader protections for different species and habitats. While not incorporating all
of ALGC’s comments, the COGCC added a provision that allows Colorado Parks and W ildlife
to recommend protections for additional species not mentioned in High Priority Habitats
definition
Increased setbacks for streams
COGCC is creating a working group that City staff may join to define biological resources and
help establish a compensatory mitigation approach
LOCAL STATUS UPDATE
Currently, there are 3 producing wells and a total of 10 active wells within City limits, with no pending
applications for new development. In addition to State requirements, operational requirements for
the City’s active wells are regulated through an Operator’s Agreement, which was adopted by
Council in 2013 and will remain in effect until 2023. New residential development around existing
wells is regulated by reciprocal setback provisions in the Land Use Code, which may need to change
as a result of new State regulations.
NEXT STEPS
A Council Work Session is scheduled for January 26, 2021, where staff will present a summary of
public outreach and seek direction regarding siting regulations for new oil and gas development.
Following the Work Session, staff will return to Council with options related to local permitting,
approval processes, and operational requirements. These options will be based on direction from
Council, opportunities to strengthen State requirements, and additional public engagement.
CC: Jacqueline Kozak-Thiel, Chief Sustainability Officer
Lucinda Smith, Environmental Services Director
Cassie Archuleta, Air Quality Program Manager
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