Colorado State APA October 4, 2012 Brad Mueller, AICP

Colorado State APAOctober 4, 2012

Brad Mueller, AICP

Oil and Gas DevelopmentFrom a Community Perspective

Greeley Oil/Gas Activity October 2012 – City Limits

425 active wells 33 pending state/local approval 218 inactive wells (plugged/abandoned)

October 2012 – Growth Area 1,131 active wells 73 pending state/local approval 387 inactive wells (plugged/abandoned)

Several grouped & directionally drilled well sites

Greeley Long-Range Growth Area

Context Land use process

Trained for all types of land use scenarios

Regulations start with the general, go to specific

Zoning, subdivision, site planning Public education process

Oil and gas mineral extraction process www.northernoil.com/drilling FAQ

Economic Impacts Jobs Higher wages/disposable income Collateral energy industry field

offices/headquarters Secondary economic impacts (lodging, food,

clothing) Sales tax Property tax revenue

Greeley FY Tax revenue

2005  505,712

2006 441,280

2007 314,537

2008 599,446

2009 1,611,013

2010 450,831

It wasn’t always thus . . . Greeley was sued in the 1980s for

attempting to adopt regulations that would prohibit oil & gas drilling in city limits

. . . . Greeley lost . . .

Jurisdictional Considerations

Mineral extraction is a private property right

Mineral rights may be severed from the surface property right – different ownerships

Operations are regulated by the State (Colorado Oil and Gas Conservation Commission)

Land & surface aspects of development is purview of local government

Common Questions Fracking impact on water quality Quantity of water used in fracking Disposal of fracking waste water Composition/environmental aspects of

drilling fluids Forced ‘pooling’ arrangements Noise, traffic, air quality for adjacent

properties Sub-surface degradation/impact on

surface uses

Site Considerations Colorado law sets rules for spacing of wells

(“drilling windows”)

Spacing can flex with a Surface Use Agreement

Drilling areas can be reserved as part of surface development (e.g. platting process)

Notice must be provided to mineral owners at least 30 days prior to platting/surface development decisions

Site Considerations Greeley oil & gas development

setbacks 150’ from roads, trails, railroads, and

“low-density areas” 200’ from occupied buildings (“high-

density”) 350’ from educational, hospital,

assembly uses, etc. (“high-density”) Option for less (alternative compliance,

blast wall, etc.)

Land use considerations related to the

site planning process

Development Code Criteria

Chapter 18.56, Oil & Gas Operations Use by Special Review Criteria

Comp Plan Compatible with surrounding land uses Site physically suitable Traffic flow/parking Cumulative effect of USRs in area

Low profile tanks, landscaping

Standard tanks, industrial setting, battery of tanks & separators on group directional drill installation

Brad MuellerDirector, Community Development Dept.City of [email protected]

Questions?