135-32 Oil and gas midstream permit (OGMP) application process

Sec. 135-32. Oil and gas midstream permit (OGMP) application process.

(1) Permitting of an oil and gas midstream location and oil and gas midstream facilities. The oil and gas midstream permit (OGMP) application process shall apply to the oil and gas midstream location and the oil and gas midstream facilities within the City of Aurora.

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

b. The OGP required by this Manual is in addition to any permit that may be required to 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 midstream location size. Oil and gas midstream locations should be constructed only to the extent approved and are fixed in size and geographical extent at the time the OGMP is approved. In the future, if an operator desires to increase the size of an oil and gas midstream location, or add additional oil and gas midstream facilities, then the operator shall apply for a variance request. If the variance request is denied, the operator may submit a new OGMP application.

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

(4) Overview. Following the pre-application meeting and pre-submittal meeting, the operator shall submit all required city applications such as but not limited to building permit, stormwater and erosion control permit, license agreements, rights-of-way permit, and OGMP application for the oil and gas midstream location and oil and gas midstream facilities. The review by the city of these applications is to ensure the proposed oil and gas midstream location and oil and gas midstream facilities comply with this Oil and Gas Manual and all applicable City Code requirements. Operator shall first obtain any necessary permits and agreements pursuant to the Oil and Gas Manual prior to construction.

(1) Purpose. The purpose of the pre-application process is for the operator to provide a high-level overview of the proposed OGMP application to the city. The pre-application process is described more fully in the following sections. City staff will provide written feedback to the operator on its application.

(2) Timeline. At the pre-application meeting, the city will provide an expected timeline of review for the operator's application. 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 midstream permit (OGMP). Appropriate city staff (as determined by the oil and gas manager) may attend. 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.

b. At the pre-application meeting, operator shall present the proposed project to the city to determine appropriate materials needed for the application, and so city staff may provide feedback on the proposed development.

c. A vicinity map, project narrative, conceptual layout, and detailed description of the oil and gas midstream location and oil and gas midstream facilities.

d. The city shall provide operator with comments from the pre-application meeting in writing. The operator will receive a detailed set of notes containing information to aid the operator in preparing a complete submittal in compliance with city standards.

e. 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.

f. 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.

g. The city may waive the pre-application meeting or pre-submittal meeting for any oil and gas midstream permit (OGMP) application.

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

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

(5) Submission of OGMP application. Operator may then submit the OGMP application.

(6) OGMP pre-acceptance completeness review. Upon receipt of the operator's OGMP application, the city will initiate a pre-acceptance review to determine whether the OGMP application is sufficient to begin the formal review process. During the pre-acceptance review, the city will identify any missing submittal requirements in the OGMP 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 application.

(7) Acceptance of OGMP application. If no missing submittal requirements are identified, an invoice of the OGMP application fee listed in the City Code will be sent to the operator for prompt payment. If missing submittal requirements in the OGMP application are identified, the operator shall address the missing submittal requirements and resubmit the OGMP application. The city will review the resubmitted application and notify the operator in writing of its completeness determination.

(8) First review—OGMP. In the first review, the city will review the completed OGMP 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.

(9) Neighborhood meeting—OGMP. Operator shall host a neighborhood meeting to inform the public of their application.

a. Operator shall notify all surface owners, tenants, and any registered homeowner associations (notified residents) within one mile of the CGF, compressor station, or associated facilities, and 350 feet of any gathering line and off-location produced water flowline, 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.

(10) Second review—OGMP. 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.

(11) Civil construction plans. Operator can submit its civil construction plans concurrently with the second city review of the application.

(12) Additional review—OGMP. 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 application has met all city criteria.

(13) 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.

(14) Compatibility with approved master plans and comprehensive plans. The location and operations of the oil and gas midstream location and oil and gas midstream facilities 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 application appropriately addresses the impact on approved master plans and comprehensive plans.

(15) Limit on commencement of construction. No construction activities shall begin until an approved oil and gas midstream permit (OGMP) has been received by the operator. The operator shall not move any heavy equipment or begin construction at the oil and gas midstream location until the operator has received administrative approval after the OGMP application review process by the city pursuant to this Oil and Gas Manual and all applicable city, state, and federal permits.

(16) Administrative approval of the OGMP. OGMP applications are approved by the oil and gas division on an administrative basis. Once all 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 approved OGMP according to the procedures described in section 135-32(e).

(17) Issuance of OGMP. Once any city council call-up process is complete, the oil and gas midstream permit (OGMP) will be issued to the operator by the oil and gas division with or without conditions. No installation of oil and gas midstream facilities may begin until operator receives the notice to proceed (NTP).

(18) Fulfillment of OGMP conditions. The operator shall satisfy any conditions required by the OGMP.

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

(20) Time limits. An administratively approved and signed OGMP shall be valid for a period of three years from the date of approval.

a. If the construction of the oil and gas midstream 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.

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.

(21) Denial. If it is established by competent evidence that a proposed oil and gas midstream permit application fails to meet any of the specifications in this Oil and Gas Manual, the permit application may be denied.

(c) Required OGMP application materials. An oil and gas midstream permit (OGMP) application to the city shall contain the following submittal requirements, whose components are further described in this Oil and Gas Manual:

(1) Master plan. To include the following:

a. All the planned components and land uses for the site.

b. Public improvement plan, if applicable.

c. Context map.

(2) Letter of introduction for plans for gathering line and off-location produced water flowline submittal materials. Including items below:

a. The name, address, email, and telephone number of the operator.

b. A summary statement of the project.

c. A description of the gathering line and off-location produced water flowline, including the product(s) or substance(s) being transported and its/their source, size, terminus or end of the route, and type of oil and gas midstream facility, including any support structures involved.

d. All public utility crossings labeling the diameter and type of utility crossing to include bridges, culverts, water, wastewater, critical infrastructure, and stormwater infrastructure. Also, identify all public utilities within a 150-foot buffer from the gathering line and off-location produced water flowline.

e. A description of the route or location of the gathering line and off-location produced water flowline and reasons for its selection.

f. Procedures to be employed in mitigating any adverse impacts of the proposed routes or sites of the gathering line and off-location produced water flowline.

g. An outline of the planned construction, including startup and commissioning schedule, and include timing of each. The city acknowledges that this outline is subject to change due to factors including, but not limited to, contractor availability, weather, ability to close ROW tracts, and the timing of third-party facility completion.

h. Information from neighborhood meeting conducted to include the location, date, time, attendance, and method of advertising.

i. A description of the hazards, if any, of fire, explosion, and other dangers to the health, safety, and welfare of the operator's employees and the public.

j. A decommissioning plan, which shall address how the off-location produced water flowline will be properly cleaned, capped, and maintained if the off-location produced water flowline will be properly abandoned in place or whether the off-location produced water flowline will be removed from the ground.

k. A description of any haul routes during construction, identifying the roads and bridges involved, and the weight of the loads.

l. Existing land use within or adjacent to the gathering line and off-location produced water flowline within 350 feet.

m. A geotech soils report is required for gathering line and off-location produced water flowline crossings or any gathering line and off-location produced water flowline encroaching in a public right-of-way, if one does not already exist for that specific area or if required by the department of public works.

n. Present zone and overlay zoning districts, which include floodplains and floodways, if appropriate.

o. Operator shall provide authorization letters, agreements from all surface owners, or court orders to verify legal access to the oil and gas midstream location.

p. Signature of the applicant.

q. Easements or rights-of-way for the gathering line and off-location produced water flowline or a statement that the operator is currently in good faith negotiations with the owners of surface properties, irrigation ditch companies, and/or affected irrigation ditch easement owners of record at the point crossed by the gathering line and off-location produced water flowline.

r. A statement that provides evidence of compliance with the following standards:

1. The gathering line and off-location produced water flowline will not have an undue adverse effect on existing and future development of the surrounding area as set forth in applicable city master plans.

2. The design of the proposed gathering line and off-location produced water flowline mitigates negative impacts on the surrounding area to the greatest extent feasible.

3. The disturbed area shall be maintained during construction by the operator in such a manner to control soil erosion, dust, and the growth of noxious weeds.

(3) Site plan for the CGF, compressor station, gathering lines, and associated facilities. To include the following:

a. Proposed location of CGF, compressor station, and associated facilities on oil and gas midstream location.

b. Road access.

c. Haul routes.

d. Existing easements and rights-of-way.

e. Visible improvements within 500 feet.

f. Distances to the nearest occupied structure.

g. Gathering line and off-location produced water flowline routes.

h. Interim reclamation plan.

i. Landscape plan (including fencing and other criteria listed in the regulations), if applicable.

j. Photometric plan.

k. Visual mitigation plan.

l. Air quality plan.

m. Fugitive dust suppression plan.

n. Fluid disposal plan.

o. PHA-HAZOP letter. The operator will provide a copy of any PHA-HAZOP or similar hazard analysis prepared for and submitted to state or federal agencies.

p. Noise management plan.

q. Operations plan.

r. Project development schedule.

s. Security plan.

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

u. Wildlife impact mitigation plan (if applicable).

v. Road maintenance agreement.

w. Recorded surface use agreement, if applicable.

x. Stormwater and erosion control plan (grading, drainage, and erosion plan) if the disturbed area is greater than one acre.

y. License agreements, if applicable.

z. A list of the names, addresses, and the corresponding parcel identification numbers assigned by the county assessor of owners of surface properties located within one mile of the CGF, compressor station, and associated facilities and 350 feet of gathering line and off-location produced water flowline. The source of such list shall be the records of the county assessor or an ownership update from a title, abstract company, or attorney derived from such records, or from the records of the county clerk and recorder. If the list was assembled from the records of the county assessor, the operator shall certify that such a list was assembled within 30 days of the application submission date.

aa. Evidence of insurance.

bb. Such additional information as may be reasonably required by the city.

cc. Wetlands within 500 feet of the oil and gas midstream location.

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

ee. Floodplain development permit, if applicable.

ff. Fee payment. 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 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 (d)(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 variance 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 the hardship and are 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.

(1) Appealing a decision by the oil and gas division.

a. Any administratively approved OGMP permit application, interpretation, or decision of the oil and gas manager concerning this section 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 Section 135-32(e)(3).

a. 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, the owner of the subject property, 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 set forth in subsection (e)(3) of this section.

a. The council must call up the oil and gas manager's decision regarding administrative approval of an OGMP 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 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, § 10, 6-14-2021)