Sec. 135-33. OGMP—Security and insurance.
(a) Security plan.
(1) General. A security plan must be included with the OGMP application to indicate how the aboveground oil and gas midstream facilities will be operated and maintained free from purposeful and inadvertent interference from anyone except the operator. If applicable, the security plan may contain a description of fencing, cattle guards, a remote security system, warning and identification signs, and gating.
(2) Fencing for visual mitigation. Permanent fencing, if applicable, shall be installed around the CGF, compressor station, and associated facilities. There shall be visual mitigation of any internal chain-link fence. Safe operations will be considered in fencing requirements. Gating systems shall meet the city's Roadway Specification Manual applicable at the time of the OGMP application.
(3) Access for emergency responders. If applicable, Knox Hardware in the form of a Knox Box will be required to allow fire service personnel to extend fire hose to and within the oil and gas midstream location. The Knox Box shall be mounted on the gating system. The Knox Box shall be mounted on the ingress side of the gate post.
(b) Emergency response plan (ERP).
(1) Operator shall provide a copy of any emergency response plan which has been filed with a state or federal authority such as Colorado Public Utilities Commission (PUC) or the Pipeline and Hazardous Materials Safety Administration (PHMSA).
(c) PHA-hazard and operability study.
(1) Operator shall provide a copy of any PHA-hazard and operability study or comparable study which has been filed with a state or federal authority such as PUC or PHMSA.
(d) Photometric plan.
(1) A photometric plan, if applicable, must be included with the OGMP application.
(2) Lighting shall be downcast and shall not shine beyond the boundaries of the CGF, compressor station, and associated facilities.
(e) Chemical and disclosure storage.
(1) Operator shall disclose the below-referenced chemicals to the Aurora fire rescue, Sable Altura fire rescue, Bennett-Watkins fire rescue, and Buckley Air Force Base Fire Department as applicable. Chemicals that will be disclosed include methanol, tri-ethylene glycol, corrosion inhibitor, and other operational required chemicals used for the safe operation of the CGF, compressor station, and associated facilities.
(f) Flammable material.
(1) All ground within 25 feet of any tank, or other structure containing flammable or combustible materials, shall be kept free of dry weeds, and rubbish.
(g) General maintenance.
(1) Operator shall operate and maintain all equipment pursuant to manufacturer specifications consistent with technological limitations and reasonable and customary maintenance practices.
(h) Miscellaneous.
(1) Lightning protection. Lightning protection mitigation measures will be considered by the operator during the CGF, compressor station, and associated facilities design and installed per industry best practice to mitigate lightning strike events and/or consequences.
(i) Insurance.
(1) General. The operator shall provide liability and insurance under the conditions and in the amounts set forth below.
(2) Operator shall maintain or cause to be maintained, with insurers authorized by the state of Colorado and carrying a financial strength rating from A.M. Best of no less than A-VII (or a similar rating from an equivalent recognized rating agency), at a minimum, the following types of insurance with limits no less than the amounts indicated:
a. Commercial general liability insurance. Operator shall provide commercial general liability coverage against claims arising out of bodily injury, death, damage to or destruction of the property of others, including loss of use thereof, with exclusions for explosion, collapse, and underground (XCU) hazards deleted and including products and completed operations in an amount not less than $2,000,000 per occurrence and $4,000,000 general aggregate.
b. Commercial automobile liability insurance. Operator shall maintain commercial automobile insurance covering liability arising out of the operation of any vehicle (including owned, nonowned, and hired vehicles) with minimum limits of $1,000,000 combined single limit each accident.
c. Workers' compensation and employers' liability insurance. Operator shall maintain workers' compensation insurance in accordance with the provisions of the Workers' Compensation Act, as amended, by the state of Colorado. Additionally, the operator shall maintain employers' liability insurance with minimum limits of $1,000,000 bodily injury for each accident, $1,000,000 bodily injury by disease each employee, and $1,000,000 bodily injury disease aggregate.
d. Umbrella/excess liability. Operator shall maintain umbrella/excess liability insurance providing coverage in excess of general liability, employers' liability, and automobile liability with limits no less than $25,000,000 per occurrence; provided, however, that for so long as the construction phase is ongoing at the oil and gas midstream facilities, operator will maintain such insurance with limits not less than $100,000,000 per occurrence. Coverage shall follow the form of the underlying policies.
e. Environmental/pollution legal liability insurance. Operator shall maintain environmental/pollution legal liability insurance covering any bodily injury, liability, and property damage liability, arising out of the collection and disposal of pollutants, including items in transit to a permanent disposal facility, which may arise from operator's activities. Coverage must include gradual pollution events. This policy shall be maintained with minimum limits of $10,000,000 per claim or occurrence.
1. The insurance shall be in effect for the duration of the life of all oil and gas midstream facilities, and any changes in insurance carriers shall allow for an extended reporting period or "tail" coverage to cover any claims arising prior to the new insurance taking effect.
2. If coverage is written on a claims-made basis, the retroactive date must precede the required date.
(3) Operator shall waive, and cause its insurers under the above policies to waive, for the benefit of the city any right of recovery or subrogation which the insurer may have or acquire against the city or any of its affiliates, or its or their employees, officers, or directors for payments made or to be made under such policies.
(4) As it pertains to the risks and liabilities assumed by operator, operator shall add the city and its elected and appointed officials and employees as additional insureds under general liability (including operations and completed operations), auto liability, and umbrella liability.
(5) Operator shall ensure that each of the policies is endorsed to provide that they are primary without right of contribution from the city or any insurance or self-insurance otherwise maintained by the city, and not in excess of any insurance issued to the city.
(6) Operator shall ensure that each of the policies above (excluding workers' compensation and OCC/COW) are endorsed to state that the inclusion of more than one insured under such insurance policy shall not operate to impair the rights of one insured against another insured and that the coverage afforded by each insurance policy shall apply as though a separate policy had been issued to each insured.
(7) All policies shall be endorsed such that they cannot be canceled or nonrenewed without at least 30 days' advance written notice to the operator and the city, evidenced by receipt, except when such policy is being canceled for nonpayment of premium, in which case 10 days' advance written notice is required. Language relating to cancellation requirements stating that the insurer's notice obligation is limited to "endeavor to" is not acceptable.
(8) Prior to OGMP issuance, operator shall deliver certificates of insurance reasonably acceptable to the city, confirming all required minimum insurance is in full force and effect.
(9) Deductibles or retentions shall be the responsibility of operator. Deductibles or retentions must be listed on the certificate of insurance required herein and are subject to the reasonable approval of the city.
(10) Operator shall require any of its subcontractors to carry the types of coverage and in the minimum amounts in accordance with the requirements set out in subsections (i)(2)(a), (i)(2)(b), and (i)(2)(c) of this section. Operator shall be responsible for any damage or loss suffered by the city as a result of noncompliance by operator or any subcontractor with this section.
(11) In the event that operator's coverage lapses, is canceled, or otherwise not in force, the city reserves the right to obtain the insurance required herein until such time as operator's coverage becomes effective again, and charge all costs and associated expenses to operator, which shall become due and payable immediately.
(j) Risk management.
(1) As part of operator's application to the city, operator shall provide a risk management plan, which will include the identification of potential risks, methods of risk avoidance, and controls that implement techniques to prevent accidents and losses and reduce the impact or cost after the occurrence of identified potential events. (Ord. No. 2021-15, § 11, 6-14-2021)