Chapter VII, Section VII - Oil and Gas Drilling RegulationsSec. 7-7-1 Purpose
Sec. 7-7-2 Definitions Sec. 7-7-3 Requirements and procedures Sec. 7-7-4 Site plan application elements Sec. 7-7-5 Application review criteria Sec. 7-7-6 Notice to proceed Sec. 7-7-7 Building permit Sec. 7-7-8 Well location and setbacks Sec. 7-7-9 Compliance with state environmental requirements Sec. 7-7-10 Noise regulation and special mitigation measures Sec. 7-7-11 Visual impact/aesthetics regulation and special impact measures Sec. 7-7-12 Abandonment and plugging of wells Sec. 7-7-13 Seismic operations Sec. 7-7-14 Signage Sec. 7-7-15 Reclamation Sec. 7-7-16 Geologic hazard/floodplain/ floodway location restrictions Sec. 7-7-17 Access roads Sec. 7-7-18 Wildlife impact mitigation Sec. 7-7-19 Financial assurance Sec. 7-7-20 Violation and enforcement These regulations are enacted to protect and promote the health, safety, morals, convenience, order, prosperity or general welfare of the present and future residents of the Town. It is the Town Board's intent by enacting these regulations to facilitate the development of oil and gas resources within the Town while mitigating potential land use conflicts between such development and existing, as well as planned, land uses. It is recognized that, under state law, the surface and mineral estates are separate and distinct interests in land and that one (1) may be severed from the other. Owners of subsurface mineral interests have certain legal rights and privileges, including the right to use that part of the surface estate reasonably required to extract and develop their subsurface mineral interests, subject to compliance with the provisions of these regulations and any other applicable statutory and regulatory requirements. The State has a recognized interest in fostering the efficient development, production and utilization of oil and gas resources, and particularly in the prevention of waste and protection of the correlative rights of common source owners and producers to a fair and equitable share of production profits. Similarly, owners of the surface estate have certain legal rights and privileges, including the right to have the mineral estate developed in a reasonable manner and to have adverse land use impacts upon their property, associated with the development of the mineral estate, mitigated through compliance with these regulations. Local governments have a recognized, traditional authority and responsibility to regulate land use within their jurisdiction, including use for oil and gas drilling. These regulations are intended as an exercise of this land use authority. Should it be established by competent evidence that a proposed oil or gas facility cannot be operated in compliance with these regulations, land use approval for such a facility may be denied. (Ord. 451 §1, 1994) (a) Definitions.
Act means the Oil and Gas Conservation Act of the State of Colorado.
Commission or OGCC means the Oil and Gas Conservation Commission of the State of Colorado. Day means a period of twenty-four (24) consecutive hours. Director means the director of the Oil and Gas Conservation Commission of the State of Colorado. Inspector means any person designated by the Town Administrator, who shall have the authority to inspect a well site to determine compliance with this Article and other applicable ordinances of the Town. Operating plan means a general description of a facility identifying purpose, use, typical staffing pattern, seasonal or periodic considerations, routine hours of operating, source of services/infrastructure, and any other information related to regular functioning of that facility. Operator means any person, including any contractor or subcontractor, who, whether in conjunction with another or not, has charge and control of the activities at the well site. Owner means any person having title or right of ownership in subsurface oil and gas or a leasehold interest therein. Well means a hole drilled into the earth for the purpose of exploring for or extracting oil, gas or other hydrocarbon substances for purposes of recharging, secondary recovery, storage or disposal thereof. Wellhead means the mouth of the well at which oil or gas is produced. Well site means that area surrounding a proposed or existing well or wells, tanks and tank batteries, and accessory structures and equipment necessary for the safe operation of drilling and production activities. (b) All terms used herein that are defined in the Act or in Commission regulations and are not otherwise defined in Subsection (a) above shall be defined as provided in the Act or in such regulations as of the effective date of the ordinance codified herein. (c) All other words used herein shall be given their usual customary and accepted meaning, and all words of a technical nature, or peculiar to the oil and gas industry, shall be given that meaning which is generally accepted in said oil and gas industry. (Ord. 451 §1, 1994)
(a) Proposed new wells, redrilling and enhanced recovery operations. Within all zone districts, it shall be unlawful for any person to drill, redrill, perform enhanced recovery operations (i.e., injection wells) or construct a well unless a special use permit has first been granted by the Town in accordance with the procedures defined in this Article. The granting of such special use permit shall not relieve the operator from otherwise complying with all applicable regulatory requirements of this jurisdiction, the State and the United States.
(b) Inspections. In recognition of the potential impacts associated with oil and gas drilling and well operation in an urban setting, all wells and accessory equipment and structures shall be subject to inspection by inspectors of the Town at all times to determine compliance with applicable provisions of this Article, the Town Uniform Fire Code, the Town Uniform Building Code and other applicable health/safety standards. Inspection fees shall be assessed per the fee structure set forth in the standard fee schedule adopted by the Town. (Ord. 451 §1, 1994)
(1) Site elements. This information for the site shall be submitted on a plat or map, at a scale no less than one (1) inch = fifty (50) feet, showing:
a. Proposed location of the tank battery and flow lines associated with the proposed well in the event production is established. Future development of the resource shall be considered in the location of the tank battery. Existing tank batteries and flow lines within a half-mile radius of the proposed location shall be shown.
b. Location of layout, including, without limitation, positions of the rig, mud tanks, reserve pits, burn pits, racks and similar structures and equipment. c. True north arrow. d. Existing improvements and equipment. e. Existing utility easements and other rights-of-way. f. Irrigation or drainage ditches within four hundred (400) feet of the wellhead. g. Drainage and erosion control plans for on-site and off-site drainage. h. Location of access roads. i. Site and lease boundaries. j. Abutting surface owners within one thousand five hundred (1,500) feet of the wellhead. (2) Vicinity map. Application elements.
a. Location of all existing waterbodies and watercourses, including direction of water flow. This information shall be submitted on USGS 7.5-minute series or assessor base maps which indicate topographic detail and will show all existing waterbodies and watercourses with a physically defined channel within a four-hundred-foot radius of the proposed well. For any existing waterbody or watercourse topographically lower and within two thousand (2,000) feet or less from the drill site, a detailed description shall be submitted of proposed methods to be employed to prevent water pollution or contamination of the waterbody or watercourse.
b. Location and type of water supply (rivers, creeks, lakes, ponds, wells and ditches or similar features). This information may be shown on a plat or map or may be a written description. The source of all water to be used in the drilling operation of the proposed wells shall be noted. Also include methods and routes for transporting water to the well site. c. Location of existing oil and gas wells. This information shall be submitted on a map and shall include all wells (producing, abandoned, temporarily abandoned, shut-in, injection, drilling, etc.) within a four-hundred-foot radius of the proposed location for the well. d. Location of drill site. This information shall be submitted on a plat or map of the section in which the drill site is to be located. The plat of the section shall be at a scale of no less than one (1) inch = one thousand (1,000) feet, and will include and clearly show the following information: 1. All dimensions of the section (north line, south line, west line and east line).
2. Location of the drill site, given in feet from two (2) lines of the section; e.g., one thousand (1,000) feet FNL and one thousand six hundred (1,600) feet FWL. 3. Township and range information. 4. Section number. 5. Location expressed in appropriate ¼ ¼ ¼ section. 6. True North arrow. 7. Parcel tax identification number. (3) Narrative elements. In addition to the mapped information required in Subsections (a) and (b) above, the application shall also include:
a. The operator's and surface owner's names and addresses, copies of any legal instruments identifying the applicant's interest in the property and any required OGCC Form 1, Designation of Agent.
b. An operating plan. c. A listing of all permits or approvals obtained or yet to be obtained from local, state or federal agencies other than OGCC. d. An emergency response plan, including but not limited to listing of local telephone numbers of the public and private entities and individuals to be notified in the event of an emergency, means of identifying the location of the well, and provisions to be made for access by emergency response entities to secured facilities. e. A plan for weed control at the well site. f. All operations shall be included within a fire district or department's jurisdiction, or be under contract with a fire district or department for protection services (a copy of which should be provided), or be provided with private fire protection. A fire protection plan shall be submitted with the application, specifying types of equipment, response time, number and capabilities of personnel available, planned actions for probable emergency events and any other pertinent information. If for private fire protection, said plan shall provide for a level of protection at least equal to that provided by the reviewing public fire agency. Prior to application to the Town, a proposed fire protection and emergency response plan shall be provided to and reviewed by the public fire agency. (4) Sanitary facilities must comply with Section 602(h) of the OGCC regulation. (Ord. 451 §1, 1994)
(1) Suitability of the location of the proposed well and well site given its size, design, operational and site characteristics. Factors to be considered include noise levels, impacts upon air and water quality, vibration and odor levels, fire protection and access requirements, visual impacts, wildlife impacts and public safety. These factors will be evaluated in accordance with applicable Town, state and federal standards and criteria.
(2) Adequacy of existing roads and access to the well site. Factors for consideration are existing and proposed road alignment, intersections, condition, structure and site distances; traffic volumes and types of equipment; dust control; and existing road uses. (3) Site characteristics. Factors to be considered are topography, natural hazards (landslides, flooding, wildfire) and current resource values (open space corridor, prime farmland as designated by the Soil Conversation Service, wildlife habitat). (4) Compatibility with existing uses and those which may be anticipated, based upon present subdivision and land use approvals for properties located within the surrounding affected area as determined by the Town Board based upon competent evidence in the record. A well and well site compatibility with land uses in the surrounding area, which the Town Board finds will be affected by its operation, shall be determined by the applicant's estimated or projected ability to mitigate the impacts that the well and well site generate, as set forth in the well and well site operating plan, and in accordance with applicable Town, state and federal rules, regulations and standards. (5) The Town Board decision shall be based upon competent evidence presented in the application and at the public hearing. Following the conclusion of the public hearing, the Town Board may proceed to verbally render its provisional decision on the application, or it may take the matter under advisement to an announced date certain not to exceed thirty-five (35) days, at which time it shall verbally render its provisional decision. In the event that an application is provisionally denied, the applicant may, within ten (10) days, request a rehearing to demonstrate how issuance of the permit is necessary to prevent waste or protect owners of correlative rights in a common source to a fair share of production profits. Following the Town Board's oral announcement of its decision and any subsequent rehearing, a written resolution shall be adopted as its final action or decision on the application. This written resolution shall set forth findings based upon competent evidence in the record of proceedings before the Town Board and any applicable federal, state or Town statutes, rules, regulations or policies. Such written resolution shall be adopted within thirty-five (35) days of the announcement of the Town Board's verbal decision. For the purposes of judicial review, the Town Board's final action or decision on an application shall be deemed to have been made as of the date upon which the Town Board executes the written resolution, which shall constitute the Town Board's final action or decision. (Ord. 451 §1, 1994)
(1) A copy of the ordinance approving a special use permit for the specific well(s).
Following the completion of a well, building permits shall be obtained for all aboveground structures as required by the Town Uniform Building Code then in effect. (Ord. 451 §1, 1994)(2) A copy of the site plan presented in conjunction with approval of the special use permit. (3) A copy of the performance security approved by the Town Attorney as complying with the requirements of this Chapter. (4) Drainage and grading plans for the well site, per the requirements of the Town Engineer. (5) A copy of an approved overweight/ oversized truck permit issued by the Town Administrator pursuant to this Code. (6) A copy of any necessary state or federal permit issued for the operation. (Ord. 451 §1, 1994)
(a) In all areas of the Town except as provided for in Subsections (b) or (c) below, the following shall apply:
(1) A wellhead location shall be not less than three hundred fifty (350) feet from any occupied building or building permitted for construction.
(2) Production tanks and/or associated on-site production equipment shall be located not less than three hundred fifty (350) feet from any building or building permitted for construction. (b) Where compliance with OGCC spacing rules, regulations or orders makes it impossible for the applicant to meet the setbacks stipulated in Subsection (a) above, the applicant shall not be required to fully meet the above-described setbacks. The applicant shall, however, meet the setbacks to the maximum extent possible within the OGCC spacing regulations and may be required to implement special mitigation measures as described herein.
(c) Upon application, notice and hearing, the Town Board may modify any setback requirements provided for in this Section. Notice of such application shall be given to the affected operator and affected surface estate owners. (Ord. 451 §1, 1994)
(a) State law and regulations concerning noise abatement (Title 25, Article 12, C.R.S.) shall apply to all operations, together with applicable local government ordinances, rules or regulations.
(b) Exhaust from all engines, motors, coolers and other mechanized equipment shall be vented in a direction away from all occupied buildings to the extent practicable. (c) Special mitigation measures. (1) Where a well and well site do not comply with the required setback or other portions of this Chapter, or where the well and well site are in an area of particular noise sensitivity (for example, near hospitals), additional noise mitigation may be required. In determining noise mitigation, specific site characteristics shall be considered, including but not limited to the following:
a. Nature and proximity of adjacent development (design, location, type).
b. Prevailing weather patterns, including wind directions. c. Vegetative cover on or adjacent to the site. d. Topography. (2) Based upon the specific site characteristics set forth above, nature of the proposed activity, its proximity to surrounding development and type and intensity of the noise emitted, additional noise abatement measures may be required. The level of required mitigation may increase with the proximity of the well and well site to existing residences and platted subdivision lots, and/or the level of noise emitted by the well and well site. One (1) or more of the following additional noise abatement measures may be required:
a. Acoustically insulated housing or cover enclosing the motor or engine.
b. Vegetative screen consisting of trees and shrubs which may be placed within a fenced enclosure. c. Solid wall or fence of acoustically insulating material surrounding all or part of the facility. d. Acoustically insulated building enclosing the installation. e. Noise management plan identifying hours of maximum noise emissions, type, frequency and level of noise to be emitted, and proposed mitigation measures. (Ord. 451 §1, 1994)
(a) Visual impacts and aesthetics.
(1) To the maximum extent possible, oil and gas facilities shall be located away from prominent natural features such as distinctive rock and land forms, vegetative patterns, river crossings and other landmarks.
(2) To the maximum extent possible, oil and gas facilities shall be located to avoid crossing hills and ridges or silhouetting. (3) To the maximum extent possible, the applicant shall use structures of minimal size to satisfy present and future functional requirements. (4) When clearing trees and vegetation for construction of oil and gas facilities, the applicant shall feather and thin edges of vegetation. (5) To the maximum extent possible, the applicant shall locate facilities at the base of slopes to provide a background of topography and/or natural cover. (6) The applicant shall replace earth adjacent to water crossings at slopes less than the normal angle of repose for the soil type of the site. (7) To the maximum extent possible, the applicant shall align access roads to follow existing grades and minimize cuts and fills. (8) Facilities shall be painted as follows: a. Uniform, noncontrasting, nonreflective color tones, similar to Munsell Soil Color coding system.
b. Color matched to land, not sky, slightly darker than adjacent landscape. c. Exposed concrete colored to match soil color. (b) Special mitigation measures. Where a well and well site do not comply with the required setback or other portions of this Chapter, or in areas of increased visual sensitivity, the applicant shall submit a visual mitigation plan including one (1) or more of the following standards, as appropriate:
(1) Exterior lighting shall be directed away from residential areas or shielded from said areas to eliminate glare.
(2) Construction of buildings or other enclosures may be required where facilities create noise and visual impacts nonmitigable because of proximity, density and/or intensity of adjacent residential land use. (3) One (1) or more of the following landscaping practices shall be required, on a site specific basis: a. Establishment and proper maintenance of ground covers, shrubs and trees.
b. Shaping cuts and fills to appear as natural forms. c. Cutting rock areas to create irregular forms. d. Designing the facility to utilize natural screens. e. Construction of fences such as woven wood or rock for use with or instead of landscaping. (Ord. 451 §1, 1994)
The well and well site owner or operator shall comply with all Commission rules with respect to signage. In addition, the owner or operator shall maintain in good, readable condition all signs required by such Commission regulations. (Ord. 451 §1, 1994) The well and well site owner or operator shall comply with all Commission rules with respect to site reclamation. (Ord. 451 §1, 1994)
(a) The well and well site shall not be located in geologic hazard areas (as defined on the adopted County Geologic Hazard Maps).
All private roads used to access the tank battery and the wellhead shall be improved and maintained according to the following standards:(b) The well and well site shall comply with Section V of Chapter VII of this Code when they are located in a one-hundred-year floodplain area. The well and well site shall not be located in floodways if they would impair the Town's or adjacent property owner's ability to obtain federal flood insurance. (Ord. 451 §1, 1994) (1) Tank battery access roads. Access roads to tank batteries shall, at a minimum, be:
a. A graded, dirt roadway compacted to a minimum density of ninety-five percent (95%) of the maximum density determined in accordance with generally accepted engineering sampling and testing procedures approved by the Town Engineer.
b. Graded so as to provide drainage from the roadway surface and constructed to allow for cross-drainage of waterways by means of an adequate culvert pipe. Adequacy of the pipe shall be subject to approval of the Town Engineer. c. Maintained so as to provide a passable roadway generally free of ruts. (2) Public access roads. An oversized/ overweight truck permit shall be required for all oversized/overweight trucks and equipment which use public streets. Said permit, if required, shall be obtained from the Town Administrator prior to commencement of drilling activities. (Ord. 451 §1, 1994)
(a) When one (1) or more wells or well sites are located within a designated moderate (blue) or high impact (red) zone on the 1987 Cumulative Impact Maps prepared by the Division of Wildlife, the applicant shall consult with the Division of Wildlife to obtain recommendations for appropriate site specific and cumulative impact mitigation procedures. Site and cumulative impact recommendations shall be submitted for review and approval by the Town Administrator, not to exceed the recommendations of the Division of Wildlife.
(b) Site specific. The following mitigation measures shall be included, as appropriate, in the site specific wildlife mitigation procedures required under Subsection (a) above. (1) Avoid conducting drilling and construction activities during critical use periods. (Examples: near eagle nests during nesting, on big game winter ranges during winter.)
(2) Avoid conducting on-site operation and maintenance activities during critical use hours. (3) Confine vehicular access to established roads except under emergency circumstances. (4) Forbid use of firearms in project areas. (5) Install gates which can be locked at the first property boundary crossed when accessing the facility from the closest public road. (6) Conduct work in streams in a manner that minimizes siltation and erosion and at a period of little or no flow. (7) Place pipe below channel scour depths in streams and rivers to avoid partial diversion or channel discharges. (8) Stabilize excess material at stream and river crossings in place or remove off-site. (9) Complete fueling and lubrication of construction equipment away from aquatic environments. (c) Multiple site. In lieu of a site specific mitigation review for each well and well site, the applicant may submit to the Town Administrator a multi-site plan addressing cumulative impacts to wildlife from the estimated total number of facilities. The multi-site plan shall include but not be limited to all items under Paragraph (2) above.
(d) Nonmitigable impacts. Impacts from oil and gas facilities which threaten endangered species (as defined by the Colorado Division of Wildlife) shall be considered nonmitigable and grounds for denial. (Ord. 451 §1, 1994)
(a) To guarantee performance in compliance with the conditions of approval, including completion of all reclamation activities, the applicant shall post security in the amount of ten thousand dollars (,000.00) for each well to be owned or operated by the applicant within the Town, except that, so long as the number of such wells is ten (10) or less, the aggregate security required shall not exceed fifty thousand dollars (,000.00). For each well beyond the first ten (10), an additional ten thousand dollars (,000.00) security will be required, except that for each additional increment of up to ten (10) wells, the aggregate amount of security will be fifty thousand dollars (,000.00) (thus, four [4] wells require forty thousand dollars [,000.00] security; five [5] to ten [10] wells, fifty thousand dollars (,000.00) security; eleven [11] wells, sixty thousand dollars [,000.00] security; fifteen [15] to twenty [20] wells, one hundred thousand dollars [0,000.00] security, and so forth). Security shall be provided in one (1) of the following forms (separate security may be required to guarantee against the damage to Town roads due to the transport of heavy equipment across Town roads):
(1) Performance bond. A performance bond in the form specified by the Town Attorney.
(2) Letter of credit. A letter of credit may be posted with the Town, provided that the letter of credit is irrevocable and is issued by an accredited and insured banking institution operating in the State, and in a form approved by the Town Attorney. (3) Certificate of deposit. A certificate of deposit may be placed in a local federally insured bank or savings and loan in the name of the Town for a term consistent with the completion of the proposed drilling activities, but in no case less than one (1) year. (4) Cash. Funds may be placed in an interest-bearing money market account with a local federally insured bank or savings and loan. The Town shall be the sole signatory on the account, with the Town Administrator acting as the trustee. (b) Where one (1) well site owner or operator succeeds another, the Town Administrator or his or her designated representative shall release the prior owner's or operator's security as to that site or sites if the successor owner or operator assumes the obligation to perform all requirements of this Article and the special use permit, and such successor owner or operator provides security as required by this Section.
(c) Except as provided in Subsection (b) above, release of the security shall be subject to verification by the Town Administrator that all performance standards have been met, that reclamation is complete, that revegetation is acceptable and that all Town roads are in good condition, with no damage other than normal wear and tear. The owner or operator shall request in writing the release of all security, at least thirty (30) days in advance of the anticipated date for the release of the security. The following additional charges or conditions for release will be added to the above procedure: (1) Performance bond. No additional charges or conditions relative to the Town for release.
(2) Letter of credit. No additional charges or conditions relative to the Town for release. (3) Certificate of deposit. Release may only occur on the date of maturity of the CD without penalty. Any early withdrawal penalty shall be borne solely by the owner or operator requesting the early withdrawal. The company shall receive all principal and accrued interest, less a one-percent treasurer's fee, regardless of the time of withdrawal. (4) Cash. The owner or operator shall receive all principal and interest accrued, less a one-percent treasurer's fee. (5) Revocation of withdrawal of part or all of a performance security by the Town shall be based on noncompliance and/or noncompletion of conditions or approval imposed at the time of approval of the operation. Determination of the extent of damage or completion shall be the sole discretion of the Town Board. The Town Board shall rely on evidence submitted by the owner or operator and the Town staff in determining the extent of noncompliance and/or noncompletion and the amount of the security to be revoked. The amount of security required shall be documented in writing with cost estimates for all work to be done. (d) The owner or operator shall reimburse the Town for any emergency response costs incurred by the Town in connection with activity at the well site. (Ord. 451 §1, 1994)
(a) Unlawful to construct or install unapproved oil and gas facilities. It is unlawful to construct, install or cause to be constructed or installed any oil and gas facility within the Town unless approval has been granted by the Town Board. The unlawful drilling or redrilling of any well or the production therefrom shall constitute a public nuisance.
(b) Penalty. No person shall violate any of the provisions of the ordinances of the Town. Except in cases where a different punishment is prescribed by any ordinance of the Town, any person who violates any of the provisions of the ordinances shall be punished by a fine of not more than one thousand dollars (,000.00) or by imprisonment not to exceed one (1) year, or by both such fine and imprisonment. (c) Civil action. In case any building or structure is or is proposed to be erected, constructed, reconstructed, altered or used, or any land is or is proposed to be used, in violation of any provision of this Article or the conditions and requirements of the special use permit, the Town Attorney, in addition to the other remedies provided by law, ordinance or resolution, may institute an injunction, mandamus, abatement or other appropriate action or proceeding to abate nuisances and/or to prevent, enjoin, abate or remove such unlawful erection, construction, reconstruction, alteration or use. (d) False or inaccurate information. The Town Board may revoke approval of a facility if it is determined at a public meeting, held on at least ten (10) days' notice to the applicant, that the applicant provided information and/or documentation upon which approval was based, which the applicant, its agents, servants and employees knew, or reasonably should have known, was false, misleading, deceptive or inaccurate. The applicant shall be provided with an opportunity to be heard at the public meeting prior to the Town Board rendering its decision. (e) For the purpose of implementing and enforcing these regulations, Town personnel may enter onto the subject property upon notification to the permittee, lessee or other party holding a legal interest in the property; if such entry is denied, the Town shall have the right to obtain an order from a court of competent jurisdiction to obtain entry. (f) In any action for legal or equitable relief, in addition to any other penalties or remedies which may be available, the Town shall be entitled to recover any damages, costs of action, expert witness fees and reasonable attorney's fees incurred should the Town prevail. (Ord. 451 §1, 1994) |
Section VII-VII - Oil and Gas Drilling Regulations |