135-2 Oil and gas location and oil and gas permit (OGP) application process

Sec. 135-2. Oil and gas location and oil and gas permit (OGP) application process.

(1) Permitting of an oil and gas location. The oil and gas permit (OGP) application process shall apply to any oil and gas location within the City of Aurora. Each oil and gas location requires a separate OGP application.

a. The granting of an OGP shall not relieve the operator from complying with all applicable regulatory requirements of the city, state, or the United States.

b. The OGP required by this Manual is in addition to any permit that may be required by any other provision of the A.C.C., or any other governmental agency.

c. The operator shall obtain a general business license from the city prior to commencing operations and conform to applicable provisions of the A.C.C. related to licensing.

(2) Future increase in oil and gas location size. An oil and gas location is fixed in size and geographical extent at the time it is approved. If an operator desires to increase the size of an oil and gas location or add an additional oil and gas facility to the oil and gas location, then the operator shall apply for a variance request. If the variance request is denied, the operator may submit a new OGP application.

(3) Pending enforcement action. No oil and gas permit application, proposed amendment to an application, or variance request shall be processed or approved with regard to an oil and gas location or oil and gas facility that is not in compliance with all federal, state, and local agency regulations having jurisdiction over the property.

a. The OGP application process is divided into two phases. In Phase 1, the operator submits required items to support its application for its oil and gas location. The oil and gas location must then be reviewed by the city and approved by the planning and zoning commission before the operator can submit the remainder of its items for the OGP.

b. After approval of the oil and gas location by the planning and zoning commission, the operator moves to Phase 2. In Phase 2, the operator submits the OGP Phase 2 application materials comprising the remainder of the items necessary for the city to review the full OGP application. In some cases, documents and agreements (such as the water delivery agreement, road maintenance agreement, and license agreements) are begun in Phase 1 and completed in Phase 2.

(1) Pre-application purpose. The purpose of the pre-application process is for the operator to provide a high-level overview of the proposed OGP application to the city. City staff will provide written feedback to the operator on its application. The OGM, as it exists at the time the pre-application meeting is held, will govern the remainder of the operator's application.

(2) Timeline. At the pre-application meeting, the city will provide an expected timeline of review for the operator's application. Absent a separate agreement, such as an operator agreement, city timelines will be based on the expected review process and current workload.

a. Operator shall request a pre-application meeting with the office of development assistance prior to submitting an application for an oil and gas permit. Appropriate city staff (as determined by the oil and gas manager) may attend. The city may waive the pre-application meeting or pre-submittal requirement for any oil and gas permit application.

b. At the pre-application meeting, operator shall present the proposed project to the city to determine the appropriate materials needed for the application, and so city staff may provide feedback on the proposed development. As a result of the pre-application meeting, the operator will receive a detailed set of notes containing information to aid the operator and consultant team in preparing a complete submittal in compliance with city standards.

c. A vicinity map, project narrative, conceptual layout of the oil and gas location, and legal proof of access to mineral interest to be developed must accompany the request for a pre-application meeting.

d. With the request for a pre-application meeting, operator shall submit operator name, name of parent companies, and a demonstration of financial capability to comply with this Oil and Gas Manual by submitting:

1. Current balance sheet;

2. Signed statement of cash flow and net worth, demonstrating the ability to comply with the regulations in the OGM, including the ability to fund permitting, operations, and surface reclamation;

3. A list of all bonding provided to the COGCC which applies to the application; and

4. Any other reasonable and relevant financial documentation requested by the city.

e. With the request for a pre-application meeting, operator shall demonstrate its operational capability to comply with this Oil and Gas Manual, by submitting a list of all previous violations of any local, state, or federal rule or law within the last three years.

f. With the request for a pre-application meeting, operator shall submit the alternative location analysis (ALA) if an ALA is required by COGCC.

g. A request for a pre-application meeting can be made online via the office of development assistance webpage. For questions and assistance regarding this pre-application process, please contact the office of development assistance.

a. Following receipt of city comments from the pre-application meeting, the operator shall request a pre-submittal meeting with city staff.

b. At the pre-submittal meeting, operator shall request that a portal be opened to allow the oil and gas location application to be submitted digitally.

a. In the oil and gas location application process (Phase 1), the operator shall apply for approval of its oil and gas location. Submittal requirements are listed in subsection (d) of this section.

b. Oil and gas location applications will be processed in the order received. Operator shall not submit more than two applications in a three-week period. If operator has more than one application that has been deemed by the city to be complete, it may provide a priority list for review of complete applications. Such a request may increase the approval time needed for operator's other applications.

(6) Pre-acceptance completeness review. Upon receipt of the operator's oil and gas location application, the city will initiate a pre-acceptance review to determine whether the application is sufficient to begin the formal review process. During the pre-acceptance review, the city will identify any missing submittal requirements in the oil and gas location application within five business days and will notify the operator of its decision in writing. Operator must demonstrate that it has incorporated all applicable regulations from this OGM in its oil and gas location application.

a. If no missing submittal requirements are identified, an invoice of the oil and gas location application fee for Phase 1 listed in the City Code will be sent to the operator for prompt payment.

b. If missing submittal requirements in the application are identified, the operator shall address the missing submittal requirements and resubmit the oil and gas location application. The city will review the resubmitted application and notify the operator in writing of its completeness determination.

(8) Schedule pre-submittal meetings for Phase 2. Once the city begins review of the oil and gas location application, the operator shall schedule Phase 2 pre-submittal meetings with city departments as necessary to initiate discussions of submittal requirements for Phase 2.

(9) Phase 1—First review. In the first review, the city will review the completed oil and gas location application and provide questions or comments to the operator in writing. The operator will then respond in writing to the city to address all questions and comments.

(10) Neighborhood meeting. Operator shall host a neighborhood meeting to inform the public of its application.

a. Operator shall notify all notified residents within one mile of the oil and gas location of the time and location of the neighborhood meeting. Notified residents shall be notified by mail a minimum of 10 calendar days in advance. Notified residents are those of legal record at the time of the mailing.

b. Operator shall respond to all comments received at the neighborhood meeting in like kind. Verbal questions may receive a verbal response. Written questions submitted at the meeting or afterward will receive a written response.

c. Operator shall allow attendance at the neighborhood meeting by virtual methods, or shall host a second neighborhood meeting virtually.

(11) Phase 1—Second review. In the second review, the city will review the operator's response to its questions or comments from the first review, including operator responses to neighborhood meeting comments. The city will provide any further questions and comments to the operator in writing. The operator will then respond in writing to the city to address all questions and comments from the second review.

(12) Phase 1—Additional review. Subsequent rounds of review may be necessary until operator has sufficiently responded to the city's questions and comments. The oil and gas manager, in consultation with city staff, will make the final decision as to when operator's oil and gas location application has met all city criteria.

(13) Compatibility with approved master plans and comprehensive plans. The location and operations of the oil and gas location shall be compatible with any approved master plan or comprehensive plan for the subject property at the time of application. The oil and gas manager shall take into consideration whether the oil and gas location application appropriately addresses any impacts on approved master plans and comprehensive plans.

(14) Operator response timing. Any time the city provides written comments to an operator submittal, the operator shall reply in a timely manner. If comments are not received from the operator within 90 days of the city's response, the operator's application will be deemed abandoned. Operator may request an extension of this deadline by submitting clear evidence of why its response is delayed and when it expects to respond.

a. Once the city is satisfied with operator responses to its review of the oil and gas location application, the oil and gas manager will forward a recommendation to the planning and zoning commission. The oil and gas manager's decision shall be based on whether or not the operator has successfully completed the oil and gas location permitting process and whether or not the operator has demonstrated that its oil and gas location application complies with location criteria and will be protective of public health, safety, welfare, the environment, and wildlife resources.

b. The planning and zoning commission shall conduct a public hearing on the oil and gas location application and shall make a decision based on the applicable criteria to:

1. Approve the oil and gas location application;

2. Approve the oil and gas location application with conditions;

3. Deny the oil and gas location application; or

4. Remand to the oil and gas division for further review.

c. The planning and zoning commission decision may be called-up by city council.

d. Operator shall notify all notified residents within one mile of the oil and gas location by mail of the time and location of the public hearing. Notified residents are those of legal record at the time of the mailing.

(16) Criteria applied to oil and gas location. The planning and zoning commission may approve an oil and gas location if the planning and zoning commission finds that the oil and gas location:

a. Protects and minimizes adverse impacts to public health, safety, welfare, the environment, and wildlife resources;

b. Conforms to the city's comprehensive plan;

c. Complies with the applicable standards of this Oil and Gas Manual, city regulations, and approved master plan that includes the property, and any condition specially applied to the property by the oil and gas division, planning and zoning commission, or city council in a decision prior to a decision affecting the property;

d. The size, scale, height, density, multi-modal traffic impacts, and hours of operation of the proposed use are compatible with existing and planned uses and proposed character in the surrounding area;

e. Will not change the predominant character of the surrounding area;

f. The city's existing infrastructure and public improvements, including but not limited to its street, critical infrastructure, stormwater facilities, and emergency systems, have adequate capacity to serve the oil and gas location, and any burdens on those systems have been mitigated to the degree practicable;

g. Allows for the operator to reasonably implement the requirements of the OGM and protections contained in the Oil and Gas Manual for the proposed oil and gas location; and

h. An alternative location analysis, if required by COGCC rules or if requested by the oil and gas manager, is attached. An alternative location analysis shall use the following criteria:

1. Conforms to the city's comprehensive plan and other applicable adopted plans;

2. Provides adequate surface acreage and suitable topography for safe and efficient operations;

3. Ability to access targeted minerals with the technology available at the time of development;

4. Ability to implement the requirements of the OGM and protections contained in the OGM for the proposed oil and gas location;

5. Ability to consolidate oil and gas facilities with other planned drilling and spacing units proposed within the city's municipal boundaries; and

6. Any other considerations relevant to the protection of public health, safety, welfare, environment, and wildlife resources.

(17) Approval of oil and gas location. When the planning and zoning commission decision and any city council call-up is complete, operator will be notified in writing of the decision on its oil and gas location application.

(1) Submission of oil and gas permit (OGP) application (Phase 2). In Phase 2 of the OGP application process, the operator shall submit the remainder of submittal requirements in support of its OGP application. Phase 2 submittal requirements are listed in subsection (e) of this section.

(2) Pre-acceptance completeness review. Upon receipt of the operator's OGP Phase 2 application, the city will initiate a pre-acceptance review to determine whether the OGP Phase 2 application is sufficient to begin the formal review process. During the pre-acceptance review, the city will identify any missing submittal requirements in the OGP Phase 2 application and will notify the operator of its decision in writing. Operator must demonstrate that the operator has incorporated all regulations from this OGM in its OGP Phase 2 application.

(3) Phase 2—First review. In the first review, the city will review the completed OGP Phase 2 application and provide questions or comments to the operator in writing based on operator's demonstration of compliance with the Oil and Gas Manual. The operator will then respond in writing to the city to address all questions and comments.

(4) Phase 2—Second review. In the second review, the city will review the operator's response to its questions or comments from the first review of the OGP Phase 2 application. The city will provide any further questions and comments to the operator in writing. The operator will then respond in writing to the city to address all questions and comments from the second review.

(5) Phase 2—Additional review. Subsequent rounds of review may be necessary until the operator has sufficiently responded to the city's questions and comments. The oil and gas manager, in consultation with city staff, will make the final decision as to when operator's OGP Phase 2 application has met all city criteria.

(6) Limit on commencement of construction. The operator shall not move any heavy equipment or begin construction at the oil and gas location based on COGCC approval until the operator has received final approval of the OGP from the city pursuant to this Oil and Gas Manual and all applicable city permits and agreements.

(7) Administrative approval of OGP. OGP Phase 2 applications may be approved by the oil and gas division on an administrative basis. Once all OGP Phase 2 application questions have been answered by the operator to the satisfaction of the city (as determined by the oil and gas manager), a letter of administrative decision is provided to the operator and the Aurora city council. The city council may elect to call-up the oil and gas manager's decision according to the procedures described in subsection (g) of this section.

(8) Final approval and issuance of OGP. Once the oil and gas location has been approved by the planning and zoning commission, the oil and gas manager has administratively approved the OGP Phase 2 application, and any city council call-up or appeal process is complete, the oil and gas permit (OGP) will be issued to the operator by the oil and gas division with or without conditions. No drilling of wells or installation of any oil and gas facility may begin until operator receives the notice to proceed (NTP).

(9) Fulfillment of OGP conditions. The operator shall satisfy any conditions required by the OGP.

(10) Notice to proceed (NTP). Upon satisfaction of all conditions required by the OGP, the city and operator may execute a water delivery agreement, road maintenance agreement, and other agreements as necessary. Upon approval and execution of all required agreements, the city may issue a NTP with or without conditions. After issuance of the NTP, operator may begin drilling activities at the oil and gas location if all additional approvals from COGCC and other required state authorities have been received.

(11) Time limits. An administratively approved OGP shall be valid for a period of three years from the date of approval.

a. If the construction of the oil and gas location has not begun within three years, the operator may request a one-year extension from the oil and gas manager. Operator may request a total of two extensions. The oil and gas manager may only approve such extension if there is clear and convincing evidence that:

1. No additional adverse impacts to public health, safety, welfare, the environment, or wildlife resources would occur;

2. The surface use conditions and surrounding land uses that are either existing or planned have not changed to such a degree that the current approval could no longer be met; and

3. The operator has submitted updated financial information, COGCC bonding information, and certificates of insurance, which continue to demonstrate the operator's ability to financially comply with the Oil and Gas Manual.

b. Any other extension beyond the extension described above shall require the approval of the city council after a public hearing and shall be based on these same criteria.

c. All application extensions shall require the written consent of the surface owner.

(12) Denial. If it is established by competent evidence that a proposed oil and gas permit application fails to meet any of the specifications in this Oil and Gas Manual, or fails to meet any approval criteria, then the permit for such oil and gas permit may be denied.

(d) Required oil and gas location application materials—Phase 1. The oil and gas location phase of the OGP application shall contain the following submittal requirements whose components are further described in this Oil and Gas Manual:

(1) Combined letter of introduction and project summary. Operator shall include:

a. Response to pre-application city comments;

b. A narrative list of how applicable regulations (related to location) will be addressed;

c. Any requests for variance from the regulations within this OGM.

(2) Site plan which depicts the following: A full site plan is not required for Phase 1, however, there must be one or more 24-inch by 36-inch sheets that detail the following:

a. Oil and gas location layout (drilling and production site layout sheets; existing conditions sheet);

b. New oil or gas wells;

c. Proposed location of facilities;

d. Road access;

e. Existing easements and rights-of-way;

f. Mile High Flood District streams (with names) within 500 feet of the oil and gas location;

g. Federal Emergency Management Agency (FEMA) flood hazard zones within 500 feet of the oil and gas location;

h. Visible improvements within 500 feet of the oil and gas location;

i. Photometric plan with fixture specifications;

j. Wetlands within 500 feet of the oil and gas location;

k. Critical infrastructure within 350 feet of the oil and gas location.

(3) Visual mitigation plan.

(4) Vicinity/context map.

a. Map must be topographic;

b. Map must show water sources identified by the city;

c. Map must indicate distances to the nearest occupied structure, municipal boundary, and subdivision boundary as measured from the greatest extent of the oil and gas location;

d. Neighborhood outlines and approved master plans.

(5) Alternative location analysis. If required, an alternative location analysis shall be consistent with COGCC rules and the OGM for an alternative location analysis submittal.

(6) Water supply plan.

(7) Method of bringing water to the location (signed agreement required in Phase 2).

(8) Preliminary drainage report (PDR). A preliminary drainage report is required for oil and gas locations. A preliminary drainage letter shall not be submitted in place of a report.

(9) Groundwater quality monitoring plan.

(10) Air quality plan.

(11) Noise management plan.

(12) Recorded surface-use agreement (if applicable).

(13) Determination of license agreements needed.

(14) One-mile radius abutters map and list.

(15) Traffic letter or other analysis requested in the pre-application notes and traffic management plan.

(16) Haul route.

(17) Road maintenance agreement. Evidence of initial discussion with public works. Including impacts to city-owned improvements as the result of operator construction or infrastructure relocation and including any entailed construction of drainage improvements such as culverts.

(18) Wildlife impact mitigation plan (if applicable).

(19) COGCC forms. Submit to the city a copy of the drilling and spacing order if available, and any COGCC approved Form 2 or Form 2A, which confirms the operator's right to develop the mineral estate and confirms the ownership of the surface information.

(20) Proof of insurance.

(21) Neighborhood meeting schedule and results/response to public comments.

(22) Fee payment Phase 1.

(e) Required OGP Phase 2 application materials. Phase 2 of the OGP application shall consist of the following submittal requirements whose components are further described in this Oil and Gas Manual:

(1) Letter of introduction (full). Operator shall include:

a. Response to any conditions on the oil and gas location approval;

b. A narrative list of how remaining applicable regulations will be addressed;

c. Any requests for variance from the regulations within this OGM with justification.

(2) Project summary (full).

(3) Site plan which depicts the following:

a. Site plan should reflect all submittal sheets and revisions from Phase 1, including groundwater monitoring well(s) locations;

b. Oil and gas location layout;

c. Location of flowlines, reasons for selection, and procedures to be employed in mitigating any adverse impacts of the proposed routes;

d. New oil or gas wells;

e. Proposed location of facilities;

f. Road access and road maintenance agreement;

g. Existing and ultimate easements and rights-of-way;

h. Mile High Flood District streams (with names) within 500 feet of the oil and gas location;

i. FEMA flood hazard zones;

j. Visible improvements within 500 feet of the oil and gas location;

k. Landscape plan. Must include fencing and other criteria listed in the regulations;

l. Interim reclamation plan;

m. Building and structure elevations, including a placarding note as applicable;

n. Wetlands within 500 feet of the oil and gas location;

o. Critical infrastructure within 350 feet of the oil and gas location;

p. Floodplain permit, if applicable.

(4) Operations plan.

a. Project development schedule;

b. Security plan;

c. Decommissioning/final reclamation plan. The decommissioning plan shall address how the flowline and crude oil transfer line will be properly removed from the ground or properly abandoned in place.

(5) Emergency action plan (EAP)/emergency response plan (ERP) (if applicable).

(6) PHA-HAZOP letter. The operator will provide a letter that the process hazard analysis—hazard and operability study (PHA-HAZOP) has been completed, and the engineer of record has incorporated all applicable PHA-HAZOP recommendations in the design.

(7) Water delivery agreement (executed). A fully executed water delivery agreement is required prior to drilling. Per City Code, all water used within the City of Aurora shall be supplied by Aurora Water unless an exception is approved by city council.

(8) Water user plan to comply consistent with CDPHE Regulation 84, if applicable.

(9) Fluid disposal plan.

(10) Road maintenance agreement and DOT registration (if applicable).

(11) Fugitive dust suppression plan.

(12) License agreements as applicable.

(13) Weed control plan.

(14) Civil plans that include a stormwater management plan (SWMP), final drainage report (grading, drainage and erosion plan), and SWMP report approved by public works. Operator should contact public works separately for a pre-submittal meeting.

(15) Approved COGCC Form 2A.

(16) Fee payment Phase 2. The operator shall be subject to an administrative fee associated with plan review and report analysis.

(1) Operator may seek an exception to the strict application of the requirements of the Oil and Gas Manual by making a written variance request to the oil and gas division. The variance request must include the justifiable rationale supporting the request. As part of a granted variance request, the oil and gas division may require alternative mitigation measures to ensure compliance with the goals of the applicable regulations. Variance requests will be evaluated by the criteria set forth in subsection (f)(4) of this section in consideration of the protection of public health, safety, welfare, the environment, or wildlife resources.

(2) Variance request process. Any variance request shall be processed through the oil and gas division. The oil and gas division shall approve, approve with conditions, or deny the variance based on consideration of the staff report, the evidence from the neighborhood meeting, and the variance's compliance with the criteria for approval. Variance requests are best submitted during the regular permit review process but may be submitted anytime.

a. Submission of a request by operator to the oil and gas manager with confirmation of receipt;

b. Neighborhood meeting. Optional, unless the oil and gas manager determines the variance request could have significant neighborhood impacts, or if a neighborhood meeting is requested by a directly impacted surface owner;

c. Staff report;

d. Conditions of approval. In approving a variance, the oil and gas division may attach any conditions necessary to ensure the variance authorized shall not constitute a grant of special privilege inconsistent with the limitations upon other commercial entities in the vicinity in which the subject property is located and will protect public health, safety, welfare, the environment, and wildlife resources.

(4) Variance request approval criteria. In approving a variance, the oil and gas division shall find:

a. Special physical requirements or circumstances exist which are peculiar to the land or the lot, or some aspect inherent in the land causes hardship and is not applicable to other lands in the same district.

b. The literal interpretation of the provisions of the Oil and Gas Manual would deprive the operator of rights commonly enjoyed by other properties in the same district under the terms of the Oil and Gas Manual.

c. Granting of the variance request will not confer on the operator any special privilege denied by the Oil and Gas Manual for other land in the same zone district.

d. Because of physical circumstances or conditions, the property cannot reasonably be developed in conformity with the provisions of the physical requirements of the Oil and Gas Manual.

e. The special circumstances applicable to the property have not been created by voluntary action or negligence by any person presently having an interest in the property.

f. The granting of the variance will be in harmony with the general purpose and intent of the Oil and Gas Manual.

g. The granting of a variance from the strict application of the Oil and Gas Manual will result in no net adverse impact to public health, safety, welfare, the environment, or wildlife resources, or impair the intent of the Oil and Gas Manual.

h. The granting of a variance may be required to allow for safe construction, installation, and operations.

a. Any administratively approved OGP application, interpretation, or decision of the oil and gas manager concerning this OGM may be appealed by an applicant, by the owner of the subject property, or by the owner of a property that abuts the subject property. The notice of appeal must be filed with the city manager within 14 calendar days of the oil and gas manager's decision.

b. Such appeal shall specifically state the grounds for the appeal. If an appeal is filed, the planning and zoning commission shall consider the appeal at a regularly scheduled planning and zoning commission public hearing according to the procedures described in subsection (g)(3) of this section.

(2) Appealing a decision by the planning and zoning commission. A decision by the planning and zoning commission may be appealed to the city council provided such appeal is received by the oil and gas manager within 14 calendar days after the planning and zoning commission's decision. Such appeal may be filed by the applicant or any abutting property owner and shall specifically state the grounds for appeal. The city council shall hold a public hearing on the application according to the procedures described in subsection (g)(3) of this section.

a. The council must call up the oil and gas manager's decision regarding administrative approval of an OGP or variance request by the end of the second full council meeting following the decision. If such a decision is not called up by that time, the oil and gas manager's decision is final.

b. The council must call up the planning and zoning commission's oil and gas location application approval or denial or decision concerning an appeal by the end of the second full council meeting following the decision. If such a decision is not called up by that time, the planning and zoning commission's decision is final.

c. De novo hearing. The reviewing body shall hear the appeal or call-up as a new matter. The original applicant has the burden of proof. In addition to considering the testimony and evidence presented at the hearing on the appeal or call-up, the reviewing body shall consider all pertinent information from the file as a result of the previous hearings from which the appeal or call-up is taken.

d. An appeal or call-up stays all actions and rights on the matter being appealed unless it is determined and certified by the original review authority that a stay would cause imminent peril to life and property.

e. The hearing shall be conducted as other public hearings, with a staff presentation of the matter prior to the public hearing. Any member of the public, including the appellant, if applicable, and the applicant shall have the right to be heard by the reviewing body either in person or by counsel. Formal rules of evidence and discovery do not apply in the proceedings under this section, and the reviewing body may consider any evidence or information deemed relevant and reasonably reliable.

f. When reviewing any decision on appeal or call-up, the reviewing body shall use the same standards for decision making and shall make findings in accordance with the City Code, Oil and Gas Manual, or applicable state law. The reviewing body may adopt the lower decision-making body's decision and findings as its own and may affirm, affirm with conditions, or reverse any decision or determination appealed or called up.

g. Notice of the decision of the reviewing body shall be provided to the appellant, where applicable, and the applicant in the same manner as the notice of the hearing.

h. A decision of the city council becomes final on the date of the decision. A decision of other reviewing bodies becomes final when the opportunity to appeal and/or call up the decision has expired. Judicial review of a final decision may be brought by timely appealing to a court of competent jurisdiction. (Ord. No. 2021-15, § 2, 6-14-2021)