135-7 General oil and gas permit (OGP) requirements

Sec. 135-7. General oil and gas permit (OGP) requirements.

(1) Notice of application. When operator submits an OGP application to the city, the operator shall include a list of all property owners of record, tenants (names, property addresses, and mailing addresses), and all registered homeowner associations within one mile from the edge of the oil and gas location, and the surface owner of the property upon which the oil and gas location is located ("notified residents"). The city shall send out notices of the OGP application by mail to notified residents when the review process commences for the purpose of receiving public comment. Notified residents are those of legal record at the time of the mailing.

(2) Resident notification of neighborhood meeting. When the city begins the OGP review process, the operator shall send notification of a neighborhood meeting to all notified residents and registered neighborhood organizations. The notice must include:

a. Operator's contact information;

b. Approximate date to begin drilling; and

c. Information on the neighborhood meeting.

(3) Operator shall send proof of mailed notices to the city by affidavit or certificate of mailing.

a. Upon the city's completeness determination of the oil and gas location application, the operator shall hold a neighborhood meeting to facilitate engagement between the operator and notified residents of the applicable oil and gas location. Operator shall notify all notified residents and registered neighborhood organizations of the neighborhood meeting. Operator shall provide notice a minimum of 10 calendar days in advance of the neighborhood meeting. Notified residents are those of legal record at the time of the mailing.

b. Notified residents may submit written comments to the city about the oil and gas location or OGP Phase 2 application, including the regulations. The city shall transmit those comments received within 30 calendar days and which require an operator response to the operator. Operator shall respond to those comments within 30 calendar days in writing to the commenter and to the city. A neighborhood meeting may not be required if there are no residents within one mile of the oil and gas location, no comments are received from the initial notice of the filing of the oil and gas location application, and the city agrees.

(5) Notice of administrative decision. The city shall provide operator with a form letter for notice of administrative decision for a pending OGP application. At least 10 calendar days prior to the scheduled decision on an OGP application, the operator shall send out the notice of administrative decision to the notified residents and registered neighborhood organizations. The operator shall provide proof to the city of mailed notices by affidavit or certificate of mailing.

(6) Pre-drilling notice. Operator will comply with the mailing requirements of the move-in, rig-up notice required by the COGCC rules.

(1) General. All notices and other correspondence sent to the city shall be in writing and shall be delivered by:

a. Certified mail with return receipt; or

b. Hand delivery with signature or delivery receipt provided by a third-party courier service (such as FedEx, UPS, etc.) to the designated representative of the city as indicated below; or

c. Email to the designated representative of the city as indicated below.

City of Aurora

Oil and Gas Division

15151 E. Alameda Parkway, #5900

Aurora, CO 80012

Attn: Oil and Gas Manager

Telephone: 303-739-7000

Email: oil&gas@auroragov.org

(2) Notification of submittal of COGCC permits, orders, and approvals. At the time the operator files any COGCC Form 2 or Form 2A for a well or oil and gas location within the city, the operator will provide the city a copy of such filings and shall provide the city with notification of any decision with respect to any COGCC Form 2 or Form 2A for a well or an oil and gas location and operator's best estimate as to when the Construction Phase for such well or oil and gas location will begin.

(3) Notification of new operational phase. Operator shall provide written notice to the city no less than 30 days prior to the commencement of any of the following: construction phase (unless the construction phase commences within 45 days of the approval of the applicable Form 2 or Form 2A), drilling phase, completion phase, or any recompletion, redrilling, or plugging and abandonment of a well. Until the commencement of the production phase at the oil and gas location, operator shall notify the oil and gas manager as to the status of development at each active well monthly. Any notification provided by operator to city may be used by the city for public notification.

(4) Routine maintenance. Operator may perform all surface and downhole well maintenance and operations on its oil and gas location, oil and gas facility, flowline, or crude oil transfer line that the operator deems prudent and necessary. Operator may perform routine maintenance of oil and gas facilities without prior notification to the city, including surface and downhole well maintenance.

(1) Printed, published, mailed, and website notice for oil and gas location applications or OGP applications submitted under this OGM shall comply with the standards below.

a. Notice of the time, date, and place of any public hearing before the planning and zoning commission or city council shall be mailed to notified residents at least 10 calendar days prior to the public hearing. Notified residents are those of legal record at the time of the mailing.

b. Notified residents include:

1. The owner of the property affected;

2. All surface owners within the specified distance from the edge of the oil and gas location;

3. All tenants on properties within the specified distance from the edge of the oil and gas location; and

4. Each registered homeowner association whose boundaries include or are located within the specified distance of the property affected.

c. For purposes of notification, tenants may be determined when county records indicate a mailing address for the property owner that is different than the physical address.

a. Notice of the time, date, and place of the public hearing on an oil and gas location or OGP application before the planning and zoning commission or city council shall be published in a newspaper of general circulation within the city at least 10 calendar days prior to such hearing.

a. Applications requiring a public hearing shall be posted at a point clearly visible from a public right-of-way for at least 10 calendar days prior to the public hearing before the planning and zoning commission or the city council. The posted notices shall be of a number, size, and location as prescribed by the oil and gas manager and shall indicate the type of development applications proposed, the date, time, and place of the hearing. Posted notices may be furnished by the city. Posted notice signs shall be removed within seven calendar days after the public hearing was held.

(1) Events or incidents. Any safety event, including any accidental fire, explosion, detonation, uncontrolled release of pressure, vandalism or terrorist activity, or any accidental or natural event that damages equipment or otherwise alters equipment or appurtences so as to create a significant spill or release, fire hazard, unintentional public access or any other condition that threatens public safety, or an injury to a person that requires medical treatment, or damage to lands, structures or property, or a COGCC Grade 1 gas leak, shall be reported within six hours. Once the applicable forms are submitted to the agency, a copy of that form will also be provided to the city. In the event of a fire that is not controllable by operator personnel, explosion, or need for emergency services response, 911 shall be called.

a. Operator must notify the city of any spill of any material on permeable ground on the oil and gas location that has a reportable spill quantity under any law. The operator will also provide the city with a copy of any self-reporting submissions that operator provides to the COGCC due to any reportable safety events at the oil and gas location, including but not limited to COGCC Form 22.

b. Any spill of one gallon or more that leaves the oil and gas location, or any spill within the oil and gas location of one barrel or more, shall be reported to the city within six hours.

(3) Fires or Explosions. Any accident or natural event involving fire, explosion, or detonation shall be reported to the city within six hours. This report shall include the following details, to the extent available:

a. Location;

b. Proximity to residences and other occupied buildings;

c. Fuel source;

d. Cause;

e. Duration;

f. Intensity;

g. Volume;

h. Description of any injuries to person(s);

i. Description of any damage to property beyond the oil and gas location;

j. Emergency management response; and

k. Mitigation plan to be implemented to avoid future incidences of the same nature, and time frame to implement.

(1) The operator shall provide a summary of planned operations and an operational timeline (development schedule) to the city by January 31st of each year. The operator may revise the summary and timeline from time to time provided that the operator will keep the city informed of any revision to the development schedule. The development schedule should include a brief summary of major planned operations at all of operator's oil and gas locations within the city for the coming year, including a proposed timeline of operations and any new permitting activities. This report is informal in nature and may be changed by the operator at any time. The report provides guidance to the city staff for planning workflows.

(1) Wells subject to an operator agreement. When an operator desires to purchase or acquire an interest in an oil and gas location, previously drilled well, or other oil and gas facility, which was subject to an operator agreement, the purchasing operator must review the condition of such location, well, or facility prior to the purchase.

a. At least 30 days prior to the close of the sale, the purchasing operator must submit a report to the oil and gas division stating whether the then-current condition of the location, well, or facility is in compliance with the operator agreement and state laws. If noncompliant conditions are discovered, then by the purchase date, the purchasing operator must submit to the oil and gas division a written report detailing a plan and timeline to bring the location, well, or facility into compliance.

(2) Wells not subject to an operator agreement. When an operator desires to purchase or acquire an interest in an oil and gas location, previously drilled well, or other oil and gas facility, which was not subject to an operator agreement, the purchasing operator must review the condition of such location, well, or facility prior to the purchase.

a. At least 30 days prior to the close of the sale, the purchasing operator must submit a report to the oil and gas division stating whether the then-current condition of the location, well, or facility is in compliance with all state laws and the applicable regulations which were in effect in this Oil and Gas Manual or other city regulation at the time the relevant oil and gas permit was approved. If noncompliant conditions are discovered, then by the purchase date, the purchasing operator must submit to the oil and gas division a written report detailing a plan and timeline to bring the oil and gas location and all oil and gas facilities into compliance as soon as practicable after the purchase date.

(3) Wells on lands annexed into the city. Oil and gas locations and oil and gas facilities that are annexed to the city after their construction may continue operating without the issuance of an OGP, as long as existing valid permits issued by another local jurisdiction remain in effect. Such oil and gas locations shall not be expanded, nor shall additional oil and gas facilities or wells be added to the oil and gas location without proper approval by the city, per the OGM.

(4) Assignment of permits where construction has not begun. An OGP may be assigned to another operator only with the written consent of the oil and gas manager, unless the assignment is being made to a subsidiary.

a. The oil and gas manager may consent to the assignment of a permit only if:

1. The new operator demonstrates financial and operational capability to comply with all requirements, terms and conditions of the OGM;

2. The new operator demonstrates adequate insurance as required by the OGM; and

3. The new operator will remedy any noncompliance of an oil and gas location, oil and gas facility, or any permit, as a condition of the assignment.

b. If an operator files a petition for assignment, the oil and gas manager shall prepare a written report that demonstrates the proposed transfer's compliance with the approval criteria of this section and the oil and gas manager's final determination on the assignability of such permit.

c. All conditions of approval will survive a change of ownership and apply to the operator's successors, including the requirements of operator registration and financial assurances. (Ord. No. 2021-15, § 7, 6-14-2021)