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Proposed Amendments to Broomfield Oil and Gas Regulations
At the August 14, 2018, City Council meeting, City Council adopted a resolution requiring staff to bring forward to City Council all new spacing applications and all new Form 2 and 2A permit applications to receive direction from City Council with regard to requesting hearings before the Colorado Oil and Gas Conservation Commission (COGCC) on such applications. Staff has also brought forward to City Council two proposed amendments to Broomfield's oil and gas regulations with regard to the following two issues for review:
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A procedure for residents to report nuisance complaints and be assured they will be addressed fully. After first contacting the appropriate staff, if the resident is not satisfied, the complaint will be referred to the relevant department head or hearing officer for a hearing; and
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Requirement that all new surface development shall be no closer than 1,320 feet to an existing oil and gas well, unless there is written notice and informed consent from the initial surface property purchaser.
These updated regulations are scheduled to be discussed by the City Council on November 27, 2018.
Broomfield's Air Quality Monitoring and Testing Program
Air quality is a main focus of the Oil and Gas Chapter of Broomfield's Comprehensive Plan as well as the Extraction Operator Agreement. These documents address specific action steps and Best Management Practices (BMPs) related to oil and gas development, operations, and concerns expressed by the public related to potential negative air quality impacts. Contracting for air quality monitoring will support several of the stated policies and associated action steps, as well as inform long-term strategies that may be adopted by Broomfield to address concerns expressed by the public.
On August 28, 2018, City Council approved an air quality testing agreement with Ajax Analytics for air quality monitoring and testing near the Extraction well sites and in nearby neighborhoods, as well as for the development of a webpage to report air quality monitoring results. The air quality program is a combined proposal of Colorado State University and Ajax Analytics. Through Colorado State University's Plume Tracker, canister testing and analysis, and Ajax Analytics' monitoring stations, the data generated will be able to identify trends and monitor operations at well sites and neighborhoods, to determine changes in volatile organic compounds, identify sources of emissions, and the age of emissions. Ajax and CSU will validate data and correlate results with standardized health exposure and safety limits. The total cost of the proposal for three years is $1,762,768 for an annual average cost of $587,589 per year.
Additionally, Broomfield will use this air quality data to provide:
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Information supporting emergency response actions
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Follow-up information to respond to citizen complaints and concerns
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Information supporting follow-up inspections
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Data and trend analysis to support health decision and possible regulatory and statutory changes
Scientists at CSU and Ajax have established 18 testing locations throughout Broomfield as shown on the map below. Also, shown on the map below is the location of the Colorado Department of Health and Environment's mobile air quality unit called the Colorado Air Monitoring Mobile Laboratory (CAMML), which began baseline testing on October 29th. A map of the 18 testing locations follows.
A presentation on the air quality program was made to the Anthem Ranch Oil and Gas Committee on October 12, 2018. Representatives of CSU and Ajax are available to make presentations regarding the program as requested.
On October 4, 2018, Colorado State University and Ajax Analytics deployed the first four whole air samplers (6L stainless steel canisters) to collect weekly time-integrated air samples as part of Broomfield's Community-Scale Air Quality Monitoring Project. Two canisters were located near the sites of future oil and gas activities, one was located near the Anthem Ranch neighborhood, and the fourth was located near Broomfield County Commons Fields. These samples will be used to establish baseline concentrations of ambient volatile organic compounds (VOCs) including benzene, ahead of future oil and gas extraction activities. Installation of the City and County of Broomfield air quality monitoring stations at 18 locations (indicated on map) will provide important air quality metrics for the city and these stations will be installed on existing poles or tall fence posts installed by Ajax Analytics. Deployment of monitoring stations will have minimal impact on the landscape and vegetation. For sites without existing street light poles, Ajax Analytics will be installing 12' fence posts. There may be a high-pitched ringing/banging sound for a short term as the posts are set. For sites with existing street light poles, staff may set cones for safety awareness at sites near roadways during installation activities. It is anticipated that the monitoring stations will be deployed in early December. It is anticipated that testing results will start to be available on Broomfield/s website in January. Attachment 3 is the Public Notice that was posted on the Oil and Gas webpage.
Air Quality Monitoring and Testing Program Open House
Ajax, CSU and staff conducted an Air Quality Monitoring Study Open House on Wednesday, October 24, 2018, at the City and County Building in Broomfield. The Open House was published two times in the Broomfield Enterprise, was posted on Broomfield's oil and gas webpage, B in the Loop, and email.
Attendees learned more about how Broomfield's air quality monitoring and testing program will be conducted, what tools and sensors will be used, and how results will be made accessible to the public. Representatives from the partnership between Colorado State University's Department of Atmospheric Science and Ajax Analytics attended the event and were available to discuss the
monitoring network and data analysis platform for Broomfield. CSU's Plume Tracker was onsite and available for touring. A video of the Air Quality Monitoring Open House is available online and can be viewed
here
.
Colorado Department of Health and Environment's Air Quality Monitoring Mobile Laboratory in Broomfield
Colorado Department of Health and Environment (CDPHE) has placed its mobile air monitoring laboratory (CAMML) in Broomfield at a location that is northwest of the Livingston Pad and south of the Northwest Parkway. The CDPHE completed baseline testing at the selected location from October 29, 2018, through late November. The CDPHE will return the CAMML to do follow-up testing during hydraulic fracturing and flowback phases.
Broomfield's Complaint Procedure
On September 30, 2018, Broomfield's online complaint system was launched. The complaint system was developed by staff from various departments, including Public Health, IT, Planning, Police, the North Metro Fire Rescue District, Engineering, Traffic, Communications, and the City Manager's Office. It allows citizens to file a complaint regarding oil and gas issues online at:
Broomfield.org/oilandgas
A citizen filing a complaint will receive a response that their complaint has been received and is being investigated and within five business days the citizen will receive a further follow up as to the outcome of the complaint.
As of November 20, 2018, we have received 30 complaints. Of those complaints, 25 were received on November 6, 2018, concerning a sulfur smell in and around the Thunder Vista School on Preble Creek Parkway in Anthem Highlands. No emergency calls were made to 911. As a result of these odor complaints, the following actions were immediately initiated:
- North Metro Fire Rescue District (NMFRD) dispatched an engine company that utilized a four gas combustible meter to determine if combustible gases or hydrogen sulfide were present at the location. The measurements indicated no measurable combustible gases or hydrogen sulfide at this site. In addition, NMFRD did not identify any odors at the location.
- Simultaneously to the NMFRD response, Broomfield's Oil and Gas Inspector was dispatched to respond to this location and determine if there were any odors and/or potential causes. The inspector interviewed school personnel as well as contractors performing home construction in the area. No odors were identified.
- Concurrently, the Broomfield Emergency Manager contacted school officials in the Adams 12 School District, as well as school personnel present at the facility. The school officials were not aware of any reports of odors or other issues.
- The Public Works Department was contacted to determine if there were any potential issues associated with sewer lines or wastewater that could have produced the reported odor. At this time, nothing has been identified, however, Public Works is testing the water associated with the individual that filed the complaint.
- Broomfield staff met with Extraction personnel to confirm the operations being conducted near the area of the complaint. Extraction confirmed that there are no operations being conducted on any of the existing sites and, related to the pipeline installation, the following summarizes what was being done:
- No digging was being conducted;
- Extraction was performing clearing activities in preparation for digging;
- Extraction was installing right-of-way fencing;
- There are no piping materials currently onsite.
6. Broomfield staff contacted the Colorado Department of
Public Health and Environment, Oil and Gas Information and
Response Department to notify them of the situation and
discuss coordination with Broomfield, if needed.
Broomfield Risk Assessment Process
The City and County Manager entered into an agreement with
DNV-GL
to conduct a risk assessment process of Extraction's well sites for a total amount not to exceed $47,000. DNV-GL is a global quality assurance and risk management company. This
Agreement
with DNV-GL authorizes them to conduct a hazard identification (HAZID) process for the Extraction oil and gas well sites. The purpose of a HAZID is to identify all reasonably possible sources of hazards and threats to a system and to determine where further risk analysis is warranted. HAZIDs enable the identification of threats in numerous areas such as operations, projects and finance. The HAZID method is often used in conceptual design work, and the intent is to use a structured approach to identify concerns and issues associated with the concept or system being reviewed. In a HAZID study, hazard checklists are generated, and each section or node of the study (i.e. system boundary) is considered against the hazard checklist. Where it is agreed that a threat exists in a particular area, the risk presented by the threat is considered, usually with the aid of a Risk Matrix, and all possible means of either eliminating the hazard or controlling the risk and/or the necessity for further study are noted in HAZID worksheets. This process also validates risks and mitigations that have been previously identified. Actions are assigned to ensure the mitigating control or further study is completed.
DNV-GL staff, Broomfield staff and Extraction staff conducted a 4 day workshop to develop the risk assessment. It is expected that a final report will be issued by DNV-GL in December, 2018. The risk assessment process report will be forwarded to Council and posted on the Oil and Gas website.
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Extraction Oil and Gas Activities
Extraction continues construction of the oil, gas and produced water pipelines, which must be in place prior to production on any of the six well pads planned for Broomfield. Attachment 4 is an updated pipeline map.
Current pipeline permits pending before Broomfield Engineering Division include segments 1, 2 & 3, as well as permits for the construction of the Interchange and Livingston Pads. View the most recent pipeline notice
here
.
Broomfield Standards and Specification allow Saturday work permits. At this time it is anticipated that Saturday work on Extraction pipeline segments will be conducted on the following dates for the segments as identified in the pipeline segment map linked above :
11-10-18 -- SEG 1, CROSSING C-1, SEG 2, SEG 12S, CROSSINGS C-9 & F-7
11-17-18 -- SEG 1, CROSSING C-1, SEG 2, SEG 12S, CROSSINGS C-9 & F-7
11-22, 23, 24 and 24 - NO WORK
12-1-18 -- SEG 1, CROSSING C-1, SEG 2, SEG 12S, CROSSINGS C-9 & F-7
12-8-18 -- SEG 1, CROSSING C-1, SEG 2, SEG 12S, CROSSINGS C-9 & F-7
12-15-18 -- SEG 1, CROSSING C-1, SEG 2, SEG 12S, CROSSINGS C-9 & F-7
12-22, 23, 24 and 25 -- CHRISTMAS WK-END -- NO WORK WHAT SO EVER
12-29-18 -- SEG 1, CROSSING C-1, SEG 2, SEG 12S, CROSSINGS C-9 & F-7
Extraction's Production Facility and Compressor Station in Weld County
On October 9, 2018, Broomfield Planning Division received a referral from Weld County regarding the Badger Central Gathering Facility and Buffalo Compressor Station. The subject facility is located in Weld County at the southwest corner of County Road 15 and County Road 6. This site is approximately 1.5 miles from Broomfield's boundary at County Road 11.
This facility will receive produced water and oil, and gas from EXR Midstream, LLC (XTR) facilities proximate to the facility (including wells in Broomfield). The facility will also include a compressor station which would be functionally independent from the Central Gathering Facility. A future compressor station and substation are also proposed.
This facility will receive, store, and transfer produced water, produced oil, and residual hydrocarbons and solids 24 hours per day, 365 days per year. There will be staff on site 24-hours per day, 365 days per year. Under Colorado Oil and Gas Conservation Commission (COGCC) rules (Series 900) this facility will be considered a "Centralized E&P Waste Management Facility" due to the fact that the facility will received produced water from more than one production facility for treatment. Under the COGCC rules, Form 28 and other associated information must be submitted to COGCC for approval prior to beginning of construction for this facility.
Broomfield staff has reviewed the proposal and submitted comments to Weld County on the facility. Those comments can be viewed
here
.
The following documents are on the website:
Extraction Baseline Air Quality and Sound Studies
Extraction's Comprehensive Drilling Plan (CDP) requires Extraction to provide updated baseline air quality and noise studies specific to the six well pads approved by the COGCC in Broomfield. Extraction has submitted the contractor, process, and testing location for both of these studies to Broomfield for review. Extraction's proposal for these studies were reviewed by staff and consultants, with additional requirements requested by Broomfield, and the study proposals were administratively approved as required by the Operator Agreement and the CDP. This testing has now taken place and Broomfield is awaiting the results. It is important that both of these studies are currently being conducted so that baseline testing can be completed before pad construction
. (View the baseline
air monitoring information here
and
noise monitoring information here
.)
Highlands Natural Resources
On November 5, 2018, Highlands Natural Resources Corporation (Highlands) filed with the COGCC five drilling and spacing unit applications, 104 Form 2 well applications, and five Form 2A location assessment applications primarily in Jefferson County. A map of the proposed area can be viewed
here
.
On November 15, 2018, the COGCC confirmed that the applications had been withdrawn and the following statement was issued by Highlands:
After listening to community concerns and considering all of the factors relating to its proposed development of 5,200 acres of leasehold in Jefferson County, Highlands Natural Resources has determined that the best course of action is to withdraw all of the Colorado Oil and Gas Conservation Commission (COGCC) spacing and permit applications associated with Rocky Flats, Standley Lake and the dog park.
This determination comes after extensive discussions with communities and other stakeholders, including people who live in the project area, mineral owners, county, state and federal representatives, U.S. Fish and Wildlife Service, COGCC and others.
Highlands appreciates the concerns and debate raised by its Jefferson County development plans and is taking the conscious step back from its development plans to affirm its commitment to being a responsible and transparent operator within the state of Colorado.
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Broomfield State Regulatory Efforts
Staff and outside counsel have worked with a member of the Oil and Gas Comprehensive Plan Committee to prepare proposed changes to the COGCC's 700 series rules on financial assurances for oil and gas operators. (A letter sent to the COGCC in May 2018 regarding the proposed changes can be viewed
here
.) Outside legal counsel, staff, and the member of the Oil and Gas Comprehensive Plan Committee met with the Director of the COGCC to discuss this proposal.
Broomfield is currently participating in a work group established by the COGCC on pipeline safety. Because of our active participation in the recent flowline rulemaking, Broomfield was asked to participate in the study group, along with representatives of CU, CSU, industry and others. Oil and gas special counsel, Elizabeth Paranhos, is representing Broomfield in this group, which is studying pipeline safety technologies. Rulemaking may occur as a result of this effort.
COGCC Financial Assurances and Orphaned Wells
The Governor has directed the COGCC by Executive Order to review its current financial assurance requirements related to orphan wells. (The Executive Order can be viewed here.) Pursuant to section III.G of the Governor's Order, the COGCC Director has convened a technical working group to discuss potential rule revisions. A Broomfield citizen and former member of Broomfield's Comprehensive Plan Task Force has been participating in this working group and has proposed a suite of revisions to the COGCC rules related to bonding and general and environmental liability. Broomfield's representative's latest proposal for operator financial assurances can be viewed here. The final meeting of this group was held on November 14, 2018, at the COGCC offices. The Governor has directed the COGCC to report back on its findings at the end of this year. The draft report from the financial assurances working group is included as Attachment 1. We anticipate a rulemaking next year. Given financial assurances was an action step in the Oil and Gas Comprehensive Plan Chapter, if the COGCC working group does not adopt Broomfield's proposal, staff will continue to pursue a rulemaking on this issue in 2019.
Proposed State Rulemaking on COGCC Procedural Rules and Forced Pooling
The COGCC initiated a revision to its procedural rules governing hearings before the Commission, as well as to implement a recent statutory change to pooling rules. The rules revised a number of procedural requirements and implement changes that limit the liability of non-consenting mineral owners who are force pooled. Broomfield participated in this rulemaking along with a number of other local governments from the Front Range, supporting increased notice and hearing requirements for affected local governments.
Local government wins from the pooling rulemaking:
(a)
Commission agreed that R. 508 which governs the applicability and scope of local public forums is outdated and unclear and will be revisited sometime in the future. No date set, however. We advocated for changes to R. 508 intended to broaden the applicability of the rule to any time that an application would result in more than 21 wells per 40 acres, as opposed to the current rule which limits the scope of the rule to applications that would result in more than 1 well or "multi-well site" in a 40-acre quarter-quarter section. We also requested clarifying changes as to which applications are governed by the rule.
(b) Rule 509 was clarified to allow for the relevant local government to be able to intervene by right into all adjudicatory proceedings. This includes hearings on drilling and spacing unit, pooling, and comprehensive development plan applications. It does not include hearings on form 2 or 2A, unless a different party, or the commission, has requested a hearing on a form 2 or 2A. Note, that the relevant local government may request a hearing on a form 2 or 2A pursuant to R. 503 (
the requirements for this request are set forth below
). The relevant local government must file the intervention at least 30 days before the hearing. The filing must include: a general statement of the factual or legal basis for the intervention based on the application; a statement of relief, which must be in the Commission's jurisdiction to grant; a description of the intended presentations including list of witnesses; time estimate to hear the intervention; application docket number; and certificate of service. COGCC Rule 509.a.(3). These changes reflect our advocacy for removal of much broader pleading requirements that have been used in the past to dismiss a local government's intervention request.
(c)
With respect to the pooling rules, the Commission agreed to give mineral owners 90 days before the pooling hearing to review an offer to lease before deciding if it wishes to participate in the pooling order voluntarily. This was an increase from staff's suggestion of 60 days.
A relevant local government ("RLG" defined as the local government with land use authority over the application lands) may seek a hearing on an approved form 2 or 2A, pursuant to COGCC Rule 503.b.(6).C. It is the burden of the RLG "to bring forward evidence sufficient for the Commission to make the preliminary findings specified in R. 508.j.
at the outset of such hearing
."
R. 508.j. requires the Commission make the following findings
at the outset of such hearing
:
(a) that the public issues raised by the application
reasonably
relate to potential significant adverse impacts to public health, safety and welfare, including the environment and wildlife, that are within the Commission's jurisdiction to remedy;
(b) that the potential impacts were not adequately
addressed
by the relevant application; and
(c) that the potential impacts are not adequately addressed
by the Commission's rules.
COGCC Rule 503.b.(6).C provides that the hearing, if granted by the Commission, must be conducted "in similar fashion" to a public issues hearing as specified in COGCC Rule 508.j, k. and l. Pursuant to Rule 508.k., at the close of the hearing the Commission may attach conditions to the form 2 or 2a in order to protect public health, welfare, safety, the environment and wildlife, may order the applicant to amend its plan to address specific issues regarding public health, welfare, safety, the environment and wildlife, and may allow the Director to attach specific conditions to individual well permits to protect public health, welfare, safety, the environment and wildlife.
Proposed State Rulemaking on School Setbacks
The COGCC has scheduled a hearing to consider proposed changes to its setback requirements for schools. Specifically, COGCC will consider whether to change the point at which the current setback from schools to a new well site is measured. The proposal would use the boundary of the school property rather than the location of the school building to measure the setback distance to an oil and gas facility. Broomfield will support increased setbacks for schools in this rulemaking.
The schedule for the proposed rulemaking can be viewed
here.
COGCC's draft rule can be viewed
here
. Broomfield has joined Longmont, Lafayette, and Boulder County and filed this pre-hearing statement in the school setback rulemaking. Attachment 2 is the pre-hearing statement.
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