Sec. 135-90. Inspections.
(a) General.
(1) Operator monitoring. The operator will conduct its air and groundwater monitoring programs as required by the Oil and Gas Manual.
(2) Access for inspections. Operator shall allow the city access to the oil and gas location, oil and gas facility, flowlines, crude oil transfer lines, oil and gas midstream location, oil and gas midstream facilities, CGF, compressor station, off-location produced water flowlines, and associated facilities easements for the purpose of undertaking inspections to ensure compliance with permit requirements and applicable provisions of the Oil and Gas Manual, provided the city personnel are equipped with all appropriate personal protective equipment (PPE), that such personnel comply with the operator's customary safety rules and are accompanied by an operator's representative, with the exception of stormwater and erosion control permit inspections for facilities. Operator and city may mutually agree in writing to other terms for access for inspections.
a. The city has the right to inspect all oil and gas locations, oil and gas facilities, oil and gas midstream locations, and oil and gas midstream facilities. No person shall refuse entry to, impede, obstruct, delay, or in any manner interfere with the inspection of any oil and gas location, oil and gas facility, oil and gas midstream location, or oil and gas midstream facility subject to an OGP. Entry and inspection shall be permitted to all areas as defined in this OGM.
b. The operator may not attempt to refuse entry to, impede, obstruct, delay, or in any manner interfere with a lawful inspection of an oil and gas location, oil and gas facility, oil and gas midstream location, or oil and gas midstream facility.
c. The operator shall provide the telephone number of a contact person who may be reached 24 hours a day.
(3) Notification for inspections. Operator shall allow the city access to the oil and gas location, oil and gas facility, flowlines, crude oil transfer lines, oil and gas midstream location, oil and gas midstream facilities, CGF, compressor station, off-location produced water flowlines, and associated facilities easements upon reasonable notice to the operator. For routine inspections, the city will generally provide 24 hours' notification. For emergencies or to investigate complaints from the public, the city may provide shorter notification.
(4) Inspection results. The city shall provide the operator with the results of any inspection within three business days of the inspection. Additionally, the city reserves the right to contact the appropriate COGCC, CDPHE, PUC, or PHMSA area inspector if noncompliance issues related to state laws, rules, or regulations are identified as a result of field inspections or if noncompliance issues are not resolved expediently. The operator will be notified first, prior to any further notification. Operator shall promptly address any compliance issues noted by the city staff.
(5) Response protocol to complaints. In the event of any complaint regarding an oil and gas location, oil and gas facility, oil and gas midstream location, oil and gas midstream facility or any associated facility, which asserts that such location or facility is causing an adverse impact to public health, safety, welfare, the environment, or wildlife resources, the city may require the operator to take any or all of the following actions to eliminate or mitigate the cause of the adverse impact:
a. Institute a protocol to determine the cause of the impact;
b. Employ best management practices to eliminate or mitigate the cause of the impact;
c. Provide any information related to activities at the location or facility at the city's request.
(b) Cost of inspections.
(1) General. Per C.R.S. 29-20-104(2), the city has the authority to inspect all oil and gas facilities subject to the provisions of the Oil and Gas Manual and to charge a fee to operators to cover costs related to inspections. The city will impose an annual inspection fee on operators. The fee will cover the city's reasonable cost of the compliance inspection. Operator shall pay the invoiced amount within 30 calendar days of the date of receipt.
(2) Annual inspection fee. The city will require all operators to pay an annual inspection fee based on the number of facilities that have been approved, as described in subsections (b)(2)(a) and (b)(2)(b) of this section. In January of each year, the operator will be billed for their total amount due based on the number of permits issued. During the remainder of the year, any time a new OGP or OGMP is issued, the operator will be billed for a prorated amount based on the fee structures described below.
a. Upstream facilities. The annual inspection fee will consist of two parts for upstream operators. The first part will be $3,000 per oil and gas location (i.e., well pad or well site.) The second part will be an additional $1,500 per permitted well. Plugged and abandoned (P&A) wells that have been properly remediated are exempt from the annual inspection fee. Upstream facilities will generally be inspected quarterly during the production phase. Inspections during other phases, or in response to complaints, will be performed as needed to confirm compliance, and may be more frequent than quarterly.
b. Midstream facilities. The annual inspection fee for oil and gas midstream operators will consist of two parts. The first part is a one-time $5,000 fee, billed when the oil and gas midstream permit (OGMP) is approved, which will cover inspections during construction. The second part is $1,000 per year per associated facility. Compressor stations will be handled separately based on size. Midstream facilities will generally be inspected twice per year during the production phase. Inspections during other phases, or in response to complaints, will be performed as needed to confirm compliance, and may be more frequent than twice per year.
(c) Purpose of inspections.
(1) Upstream facilities. City will inspect oil and gas locations, oil and gas facilities, flowlines, and crude oil transfer lines to ensure compliance with the provisions of this Oil and Gas Manual and to address the impacts of development. For oil and gas locations, oil and gas facilities, flowlines, and crude oil transfer lines that are subject to a valid operator agreement, the terms of the operator agreement will apply to such inspections.
(2) Midstream facilities. City will inspect oil and gas midstream locations, oil and gas midstream facilities, CGF, compressor stations, associated facilities, and off-location produced water flowlines to ensure compliance with the provisions of this Oil and Gas Manual and to address the impacts of development. For oil and gas midstream locations, oil and gas midstream facilities, CGF, compressor station, associated facilities, and off-location produced water flowlines that are subject to a valid operator agreement, the terms of the operator agreement will apply to such inspections. For facilities subject to PUC or PHMSA authority, the city will only inspect for nonsafety related items, including fugitive air emissions. (Ord. No. 2021-15, § 18, 6-14-2021)