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Colorado State APA October 4, 2012 Brad Mueller, AICP

Oil and Gas Development From a Community Perspective. Colorado State APA October 4, 2012 Brad Mueller, AICP. 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

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Colorado State APA October 4, 2012 Brad Mueller, AICP

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  1. Oil and Gas Development From a Community Perspective Colorado State APA October 4, 2012 Brad Mueller, AICP

  2. 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

  3. Greeley Long-Range Growth Area

  4. 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

  5. Economic Impacts • Jobs • Higher wages/disposable income • Collateral energy industry field offices/headquarters • Secondary economic impacts (lodging, food, clothing) • Sales tax • Property tax revenue

  6. 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 . . .

  7. 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

  8. 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

  9. 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

  10. 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.)

  11. Land use considerations related to the site planning process

  12. 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

  13. Low profile tanks, landscaping Standard tanks, industrial setting, battery of tanks & separators on group directional drill installation

  14. Brad Mueller Director, Community Development Dept. City of Greeley brad.mueller@greeleygov.com 970-350-9786 Questions?

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