On June 20, 2023 pursuant to the provisions of Article VIII of this Chapter, the Keenesburg Town Board designated the entire incorporated area of Keenesburg, Colorado, and all future expansion of the Town, as a mineral resource (oil and gas) area of state interest [the "Keenesburg Mineral Resource (Oil and Gas) Area"], through the authority delegated to Local Governments in Section 24-65.1-202, C.R.S. Such designation is contained in this Section below. The regulations (referred to herein as "1041 Keenesburg Oil and Gas Exploration and Production Area Regulations") set forth in this Article are also made pursuant to the authority granted to the Town of Keenesburg in the Colorado Areas and Activities of State Interest Act ("AASIA"), Sections 24-65.1-101, et seq., C.R.S.; the Colorado Local Government Land Use Enabling Act, Sections 29-20-101, et seq., C.R.S., including, without limitation, Section 29-20-104, C.R.S; and all of the authorities granted to Local Governments in Title 34, Article 60, C.R.S. and in particular all of the amendments thereto included in S.B. 19-181. The purpose and intent of the 1041 Keenesburg Oil and Gas Exploration and Production Area Regulations (K-OGLA) set forth in this Article are to:

(1)

Encourage planned and orderly oil and gas development in the Town;

(2)

Provide for the needs of agriculture, industry, commerce, residential communities and recreation in future growth in the Town;

(3)

Encourage uses of land and other natural resources which are in accordance with their original character and adaptability in the Town;

(4)

Conserve soil, water and agricultural resources; to protect vested water and property rights; and to encourage exploration and production of oil and gas within the Town;

(5)

Protect air quality in the Town;

(6)

Protect the environment and wildlife in the Town;

(7)

Promote the efficient and economic use of public resources in the Town;

(8)

Protect and administer the Keenesburg Mineral Resource (Oil and Gas) Area in such a manner as to permit the exploration and production of oil and gas through efficient location siting to eliminate or mitigate material adverse impacts and thereby minimize waste, unless such exploration and production would cause significant danger to public health, safety, welfare, environment and wildlife in the Town;

(9)

Balance the protection, mitigation of damage to and enhancement of environmental resources with the exploration and production of oil and gas within the Keenesburg Mineral Resource (Oil and Gas) Area in the Town; and

(10)

Regulate the exploration and production of oil and gas within the Keenesburg Mineral Resource (Oil and Gas) Area to balance the rights associated with property ownership of mineral owners with the protection of the environment and wildlife in the Town and the health, safety and welfare of the citizens of the Town.

(Ord. 2023-07, 2023, § 3)

In addition to the terms defined in Article VIII of this Chapter, the following terms specific to the designation of site selection and construction of oil and gas locations and oil and gas facilities shall be construed to have the meanings set forth as follows:

1041 WOGLA Hearing Officer means the Weld County Oil and Gas Energy Department (OGED) Hearing Officer and may also be referred to herein as the "Hearing Officer."

1041 KOGLA permit means a 1041 Keenesburg Oil and Gas Location Assessment permit issued pursuant to this Chapter.

1041 K-OGLA zone means a boundary measuring two thousand (2,000) feet from the oil and gas location.

Applicant means the person or entity who applies for a 1041 K-OGLA permit. The applicant may be referred to herein as the "1041 K-OGLA permittee" or "operator."

Application means the 1041 K-OGLA permit application filed by the applicant pursuant to this Chapter and may also be referred to herein as the "1041 K-OGLA permit application."

Application for intervention means an application supplied by OGED for the purpose of applying to intervene in a 1041 E-OGLA hearing pursuant to this Chapter.

AQCC means the Colorado Air Quality Control Commission.

Authority having jurisdiction means any other entity which may have jurisdiction over a certain area or may own or operate certain features affected by the application. Certain examples may include the State of Colorado, Weld County, municipalities, metro districts, or ditch companies. Authority having jurisdiction may also be referred to herein as "AHJ."

Barrel means forty-two (42) (U.S.) gallons at sixty degrees (60°) Fahrenheit at atmospheric pressure.

Best management practices (BMPs) means practices that are designed to prevent or reduce impacts caused by oil and gas operations to air, water, soil, or biological resources, and to minimize adverse impacts to public health, safety and welfare, including the environment and wildlife resources.

Board of County Commissioners means the Weld County Board of County Commissioners, and may also be referred to herein as "BOCC."

Building unit means a residential building unit, as defined in this Title, and any building that is used for business or commercial purposes that is normally occupied during working hours.

CDPHE means the Colorado Department of Public Health and Environment.

Chemical(s) means any element, chemical compound, or mixture of elements or compounds that has its own specific name or identity such as a chemical abstract service number, whether or not such chemical is subject to the requirements of 29 C.F.R. § 1910.1200(g)(2) (2011).

Child care center means a child care center as defined in Section 26-6-102(5), C.R.S., that is in operation at the time of the 1041 K-OGLA permit notice pursuant to this Article. A child care center will include any associated outdoor play areas adjacent to or directly accessible from the center and is fenced or has natural barriers, such as hedges or stationary walls, at least four (4) feet high demarcating its boundary.

Classified water supply segment means perennial or intermittent streams, which are surface waters classified as being suitable or intended to become suitable for potable water supplies by the Colorado Water Quality Control Commission, pursuant to the basic standards and methodologies for surface water regulations (5 C.C.R. 1002-31).

Closed loop system means a mechanical system that separates liquids and solids during drilling operations to eliminate the need for reserve pits.

COGCC means the Colorado Oil and Gas Conservation Commission.

Completion means operations conducted on a well(s), subsequent to drilling, that are necessary to prepare or re-stimulate the well(s) for production. Completion operations include, but are not limited to, fracture preparation, hydraulic fracturing, drill-out and flowback.

Comprehensive development plan means a plan covering future oil and gas operations in a defined geographic area within a geologic basin. Comprehensive development plans may also be referred to herein as a "CDP."

Construction phase means all those activities related to the site construction, drilling and well completion that occur prior to interim reclamation being performed in accordance with this Chapter. Construction phase does not include activities such as surveying, staking, etc.

Container means any portable device in which a hazardous material is stored, transported, treated, disposed of, or otherwise handled. Examples include, but are not limited to, drums, barrels, totes, carboys, and bottles.

CPW means Colorado Parks and Wildlife.

Crop land means lands which are cultivated, mechanically or manually harvested, or irrigated for vegetative agricultural production, excluding range land.

Designated outside activity area ("DOAA") means:

(1)

An outdoor venue or recreation area, such as a playground, permanent sports field, amphitheater, or other similar place of public assembly owned or operated by a local government, which the local government requests to have established as a DOAA; or

(2)

An outdoor venue or recreation area, such as a playground, permanent sports field, amphitheater, or other similar place of public assembly where ingress to, or egress from the venue could be impeded in the event of an emergency condition at an oil and gas location less than three hundred fifty (350) feet from the venue due to the configuration of the venue and the number of persons known or expected to simultaneously occupy the venue on a regular basis.

Development area means the subsurface area from which operator intends to extract oil, gas and other resources.

Drilling fluid means the fluid mixture of water, mud, oil, and chemicals used to lubricate the drill bit during drilling operations.

Drilling pits means those pits used during drilling operations and initial completion of a well, and include:

(1)

Ancillary pits used to contain fluids during drilling operations and initial completion procedures, such as circulation pits and water storage pits.

(2)

Completion pits used to contain fluids and solids produced during initial completion procedures, and not originally constructed for use in drilling operations.

(3)

Flowback pits used to contain fluids and solids produced during initial completion procedures.

(4)

Reserve pits used to store drilling fluids for use in drilling operations or to contain E&P waste generated during drilling operations and initial completion procedures.

Enhanced recovery means a technique of recovering additional oil and gas from a mineralized zone by injecting fluids in an effort to force more of the hydrocarbons to a well.

EPA means the environmental protection agency.

Emergency pit means a man-made depression in the ground that is used to contain liquids during an initial phase of emergency response operations related to a spill/release or process upset conditions.

Exploration and production waste ("E&P waste") means those wastes associated with operations to locate or remove oil or gas from the ground or to remove impurities from such substances which are uniquely associated with and intrinsic to oil and gas exploration, development, or production operations that are exempt from regulation under Subtitle C of the Resource Conservation and Recovery Act (RCRA), 42 USC § 6921, et seq. For natural gas, primary field operations include those production-related activities at or near the wellhead and at the gas plant (regardless of whether or not the gas plant is at or near the wellhead), but prior to transport of the natural gas from the gas plant to market.

Field means the general area which is underlaid or appears to be underlaid by at least one (1) pool; and "field" shall include the underground reservoir or reservoirs containing oil or gas or both. The words "field" and "pool" mean the same thing when only one (1) underground reservoir is involved; however, "field," unlike "pool," may relate to two (2) or more reservoirs.

Financial assurance means a surety bond, cash collateral, certificate of deposit, letter of credit, sinking fund, escrow account, lien on property, security interest, guarantee, or other instrument or method in favor of the Town and acceptable to the Town Manager and the Town Attorney. The term encompasses general liability insurance.

Floodplain means any land area susceptible to being inundated as a result of a flood, including the area of land over which floodwater would flow from the spillway of a reservoir. The FEMA-mapped floodplains are shown on FEMA's DFIRM, FIRM and FBFM maps.

Flowback means the liquid used in hydraulic fracturing operations that returns to the surface after being injected into the formation.

Flowline means a segment of pipe transferring oil, gas, or condensate and/or water between a wellhead and processing equipment to the load point or point of delivery to a U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration or Colorado Public Utilities Commission regulated gathering line or a segment of pipe transferring produced water between a wellhead and the point of disposal, discharge, or loading. This definition of flowline does not include a gathering line. The different types of flowlines are:

(1)

Wellhead line means a flowline that transfers well production fluids from an oil or gas well to processing equipment (e.g., separator, production separator, tank, heater treater), not including preconditioning equipment such as sand traps and line heaters, which do not materially reduce line pressure.

(2)

Production piping means a segment of pipe that transfers well production fluids from a wellhead line or production equipment to a gathering line or storage vessel and includes the following:

a.

Production line means a flowline connecting a separator to a meter, LACT, or gathering line;

b.

Dump line means a flowline that transfers produced water, crude oil, or condensate to a storage tank, pit, or process vessel and operates at or near atmospheric pressure at the flowline's outlet;

c.

Manifold piping means a flowline that transfers fluids into a piece of production facility equipment from lines that have been joined together to comingle fluids; and

d.

Process piping means all other piping that is integral to oil and gas exploration and production related to an individual piece or a set of production facility equipment pieces.

(3)

Off-location flowline means a flowline transferring produced fluids (crude oil, natural gas, condensate, or produced water) from an oil and gas location to a production facility, injection facility, pit, or discharge point that is not on the same oil and gas location. This definition also includes flowlines connecting to gas compressors or gas plants.

(4)

Peripheral piping means a flowline that transfers fluids such as fuel gas, lift gas, instrument gas, or power fluids between oil and gas facilities for lease use.

(5)

Produced water flowline means a flowline on the oil and gas location used to transfer produced water for treatment, storage, discharge, injection or reuse for oil and gas operations.

A segment of pipe transferring only fresh water is not a flowline.

Fresh water means water currently being used as drinking water or having a total dissolved solids (TDS) concentration of less than ten thousand (10,000) milligrams per liter (mg/l).

Freshwater pit means a man-made depression in the ground that is lined with an impermeable substance which contains fresh water used for drilling or hydraulic fracturing operations.

Future school facility means a school facility that is not yet built, but that the school or school governing body plans to build and use for students and staff within three (3) years of the date the school or school governing body receives a 1041 K-OGLA permit notice pursuant to this Article. To be considered a future school facility, the following requirements must be satisfied:

(1)

For public, non-charter schools, the school governing body must affirm the nature, timing, and location of the future school facility in writing; or

(2)

For charter schools, the school must have been approved by the appropriate school district or the State Charter School Institute, Section 22-30.5-505, C.R.S., at the time it receives a 1041 K-OGLA permit notice pursuant to this Article, and the school governing body must affirm the nature, timing, and location of the future school facility in writing; or

(3)

For private schools, the school governing body must be registered with the Office of the Colorado Secretary of State at the time it receives a 1041 K-OGLA permit notice pursuant to this Article, and must provide documentation proving its registration with the Office of the Colorado Secretary of State, its tax-exempt status, and its submitted land use plans to the relevant local government building and community development office.

Gas facility means those facilities that process or compress natural gas after production-related activities which are conducted at or near the wellhead and prior to a point where the gas is transferred to a carrier for transport.

Gas storage well means any well drilled for the injection, withdrawal, production, observation, or monitoring of natural gas stored in underground formations. The fact that any such well is used incidentally for the production of native gas or the enhanced recovery of native hydrocarbons shall not affect its status as a gas storage well.

Gas well means a well, the principal production of which at the mouth of the well is gas, as defined by the Oil and Gas Conservation Act of the State of Colorado ("the Act").

Gathering line means a gathering pipeline or system as defined by the Colorado Public Utilities Commission, Regulation No. 4, 4 C.C.R. 723-4901, Part 4, (4 C.C.R. 723-4901) or a pipeline regulated by the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration pursuant to 49 C.F.R. Section 195.2 or 192.8; 49 C.F.R. Section 195.2 or 192.8; and 4 C.C.R. 723-4901 in existence as of the date of this regulation and does not include later amendments. Additionally, 49 C.F.R. Section 195.2 or 192.8 may be found at https://www.phmsa.dot.gov and 4 C.C.R. 723-4901 may be found at https://www.sos.state.co.us.

Groundwater means subsurface waters in a zone of saturation.

High occupancy building unit means any nursing facility as defined in Section 25.5-4-103(14), C.R.S., hospital, life care institutions as defined in Section 12-13-101, C.R.S., or correctional facility as defined in Section 17-1-102(1.7), C.R.S., provided the facility or institution regularly serves fifty (50) or more persons.

High priority habitat means the high priority wildlife habitat areas in the Town of Keenesburg identified in Rule 1203 of the COGCC rules. This is a reference map available through Colorado Parks and Wildlife or may be available through the Colorado Oil and Gas Conservation Commission database.

HMWMD means the hazardous materials and waste management division of the CDPHE.

Hydraulic fracturing means all stages of the stimulation process of a well by the application of hydraulic fracturing fluid under pressure that is expressly designed to initiate or propagate fractures in a target geologic formations to enhance production of oil and natural gas.

Hydraulic fracturing fluid means the fluid used to perform hydraulic fracturing.

LACT (lease automated custody transfer) means the transfer of produced crude oil or condensate, after processing or treating in the producing operations, from storage vessels or automated transfer facilities to pipelines or any other form of transportation.

Land application means the disposal method by which E&P waste is spread upon or sometimes mixed into soils.

Land treatment means the treatment method by which E&P waste is applied to soils and treated to result in a reduction of hydrocarbon concentration by biodegradation and other natural attenuation processes. Land treatment may be enhanced by tilling, disking, aerating, composting and the addition of nutrients or microbes.

Local government means a home rule or statutory town (in this Article, other than Keenesburg) or city, territorial charter city, county, or any special district established pursuant to the Special District Act, Sections 32-1-101 to 32-11-807 (2013) C.R.S, which is located within two thousand (2,000) feet from the oil and gas location.

Local governmental designee ("LGD") means the office designated to receive, on behalf of the local government, copies of all documents required to be filed with the LGD pursuant to these rules.

Mineral owner means the person who has the right to drill into and produce from a pool and to appropriate the oil or gas produced therefrom either for such owner or others, including owners of a well capable of producing oil or gas, or both.

Minimize adverse impacts means, wherever reasonably practicable, and taking into consideration cost effectiveness, technical feasibility and the development standards set forth in this Article, to avoid adverse impacts to public health, safety, environment and wildlife resources, including cumulative impacts where practicable operators shall consolidate facilities and pipeline rights-of-way, and minimize the extent and severity of those impacts that cannot be avoided considering such minimization is reasonably practicable, takes into consideration cost effectiveness, and is technically feasible.

Multi-well pits means pits used for treatment, storage, recycling, reuse, or disposal of E&P wastes generated from more than one (1) well that will be in use for no more than three (3) years.

Non-crop land means all lands which are not defined as crop land, including range land.

OGED means the Weld County Oil and Gas Energy Department.

OGED Director means the Director of the Weld County Oil and Gas Energy Department, or their designee. Oil and gas facility means equipment or improvements used or installed at an oil and gas location for the exploration, production, withdrawal, treatment, or processing of crude oil, condensate, E&P waste, or gas. Oil and gas facility may also be referred herein in certain circumstances synonymously as "facility."

Oil and gas location means a definable area where an operator has disturbed or intends to disturb the land surface to locate an oil and gas facility. Oil and gas location may also be referred to herein in certain circumstances synonymously as "disturbance area" or "location."

Oil and gas operations means exploration for and production of oil and gas, including, but not limited to, conducting seismic operations and the drilling of test bores; siting, drilling, deepening, recompleting, reworking, injection of fluids for enhanced recovery, or abandoning a well; producing operations related to any well, including installing flowlines; the generating, transporting, storing, treating, or disposing exploration and production wastes; and any constructing, site preparing, or reclaiming activities associated with such operations, some of which these operations may not be permissible in Keenesburg.

Oil and gas solar energy facility (OGSEF) means a facility whose primary purpose is to supply electricity to the oil and gas location and consists of one (1) or more solar arrays and other accessory structures and equipment. The OGSEF shall be no more than ten (10) acres in size, and shall be contiguous to, as well as considered part of, the oil and gas location. Procedures for approval and operation of OGSEF's shall be included in the 1041 K-OGLA permit.

Oil well means a well, the principal production of which at the mouth of the well is oil, as defined by the Act.

Oily waste means those materials containing crude oil, condensate, or other E&P waste, such as soil, frac sand, drilling fluids, and pit sludge that contain hydrocarbons.

Operator means any person who exercises the right to control the conduct of oil and gas operations. An operator may be an applicant for a 1041 K-OGLA permit. The operator may be referred to herein as the "1041 K-OGLA permittee" or "applicant."

Operator registration means the process by which a person, company or other entity has submitted an operator registration to the OGED director. Operator registration shall be completed on a form provided by OGED and shall be kept on record so long as the person, company or other entity has operational wells, oil and gas facilities, oil and gas locations in the Town. The operator registration shall also be provided to the Town Manager by the operator.

Person means any natural person, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary, or other representative of any kind.

Pipeline means a flowline, crude oil transfer line, or gathering line as defined herein.

Pit means any natural or man-made depression in the ground used for oil or gas exploration or production purposes. Pit does not include fresh water pits, steel, fiberglass, concrete or other similar vessels which do not release their contents to surrounding soils.

Plugging and abandonment (P&A) means the cementing of a well, the removal of its associated production facilities, the abandonment of its flowline(s), and the remediation and reclamation of the wellsite.

Point of compliance means one (1) or more points or locations at which compliance with applicable groundwater standards established under water quality control commission basic standards for groundwater, Section 3.11.4, must be achieved.

Pollution means man-made or man-induced contamination or other degradation of the physical, chemical, biological, or radiological integrity of air, water, soil, or biological resource.

Production facility means any storage, separation, treating, dehydration, artificial lift, power supply, compression, pumping, metering, monitoring, and other equipment directly associated with a well.

Production phase means all those activities on an oil and gas location related to production that occur after the wells are first turned to sales, or interim reclamation has been performed in accordance with this Article.

Production pit means a man-made depression in the ground that is lined with an impermeable substance which is used after drilling operations and initial completion of a well. Production ponds include:

(1)

Produced water pit means a man-made depression in the ground that is lined with an impermeable substance used to temporarily store produced water prior to injection for enhanced recovery or disposal, off-site transport, or surface-water discharge.

(2)

Evaporation pit means a man-made depression in the ground that is lined with an impermeable substance used to contain produced waters which evaporate into the atmosphere by natural thermal forces.

Produced water means water extracted from the earth from an oil or natural gas production well, or separated from crude oil, condensate, or natural gas after extraction.

Proppant means sand or any natural or man-made material that is used in a hydraulic fracturing to prop open the artificially created or enhance natural fractures within the formation during completion operations.

Public water system means those systems shown and/or listed in Appendix VI of the COGCC rules. These systems provide to the public water for human consumption through pipes or other constructed conveyances, if such systems have at least fifteen (15) service connections or regularly serve an average of at least twenty-five (25) individuals daily at least sixty (60) days out of the year. Such definition includes:

(1)

Any collection, treatment, storage, and distribution facilities under control of the operator of such system and used primarily in connection with such system.

(2)

Any collection or pretreatment storage facilities not under such control, which are used primarily in connection with such system.

The definition of "public water system" does not include any "special irrigation district," as defined in Colorado Primary Drinking Water Regulations (5 C.C.R. 1003.1).

Reclamation means the process of returning or restoring the surface of disturbed land as nearly as practicable to its condition prior to the commencement of oil and gas operations or to landowner specifications. Reclamation may be interim or final as set forth in this Title.

Reference area means an area either (1) on a portion of the site that will not be disturbed by oil and gas operations, if that is the desired final reclamation; or (2) another location that is undisturbed by oil and gas operations and proximate and similar to a proposed oil and gas location in terms of vegetative potential and management, owned by a person who agrees to allow periodic access to it by the Town of Keenesburg, the Weld County OGED Director and the operator for the purpose of providing baseline information for reclamation standards, and intended to reflect the desired final reclamation.

Release means any unauthorized discharge of E&P waste to the environment over time.

Remediation means the process of reducing the concentration of a contaminant or contaminants in water or soil to the extent necessary to ensure compliance with the concentration levels found in the Weld County Code, and other applicable ground water standards and classifications.

Remote location means an oil and gas location where there are no sensitive receptors (e.g. building units, high priority habitats, or designated outside activity areas) that are located within one (1) mile (five thousand two hundred eighty (5,280) feet), a remote location may otherwise be determined by the Town Manager and OGED Director based on existing topographical, geographical, and other factors.

Reserve pits means those pits used to store drilling fluids for use in drilling operations or to contain E&P waste generated during drilling operations and initial completion procedures.

Residential building unit means a building or structure designed for use as a place of residency by a person, a family, or families. The term includes manufactured, mobile, and modular homes, except to the extent that any such manufactured, mobile, or modular home is intended for temporary occupancy, or for business purposes.

Responsible party means an owner or operator who conducts an oil and gas operation in a manner which is in contravention of any then-applicable provision of this Code, or order of the Hearing Officer, or of any permit, that threatens to cause, or actually causes, a significant adverse environmental impact to any air, water, soil, or biological resource. Responsible party includes any person who disposes of any other waste by mixing it with exploration and production waste so as to threaten to cause, or actually cause, a significant adverse environmental impact to any air, water, soil, or biological resource.

Riser means the component of a flowline transitioning from below grade to above grade.

School means any operating public school as defined in Section 22-7-703(4), C.R.S., including any charter school as defined in Section 22-30.5-103(2), C.R.S., or Section 22-30.5-502(6), C.R.S., or private school as defined in Section 22-30.5-103(6.5) C.R.S.

School facility means any discrete facility or area (property), whether indoor or outdoor, associated with a school, that students use commonly as part of their curriculum or extracurricular activities. A school facility is either adjacent to or owned by the school or school governing body, and the school or school governing body has the legal right to use the school facility at its discretion. The definition includes future school facility.

School governing body means the school district board or board of directors for public schools or the board of trustees, board of directors, or any other body or person charged with administering a private school or group of private schools, or any-body or person responsible for administering or operating a child care center. A school governing body may delegate its rights under these rules, in writing, to a superintendent or other staff member, or to a principal or senior administrator of a school that is in proximity to the proposed oil and gas location.

Sensitive area means an area vulnerable to potential significant adverse groundwater impacts, due to factors such as the presence of shallow groundwater or pathways for communication with deeper groundwater; proximity to surface water, including lakes, rivers, perennial or intermittent streams, creeks, irrigation canals, and wetlands. Additionally, areas classified for domestic use by the Colorado Water Quality Control Commission, local (water supply) wellhead protection areas, areas within one-eighth (⅛) mile of a domestic water well, areas within one-quarter (¼) mile of a public water supply well, ground water basins designated by the Colorado Ground Water Commission, and surface water supply areas are sensitive areas. When the operator, Town Manager, or OGED Director has data that indicate an impact or threat of impact to ground water or surface water, the Town of Keenesburg and/or the OGED Director may require the operator to make a sensitive area determination and that determination shall be subject to the Town's and/or OGED Director's approval. The sensitive area determination shall be made using appropriate geologic and hydrogeologic data to evaluate the potential for impact to ground water and surface water, such as soil borings, monitoring wells, or percolation tests that demonstrate that seepage will not reach underlying ground water or waters of the state and impact current or future uses of these waters. Operators shall submit data evaluated and analysis used in the determination to the Town and OGED Director. Operations in sensitive areas shall incorporate adequate measures and controls to prevent significant adverse environmental impacts and ensure compliance with the concentration levels consistent with standards applied in the Weld County Code, with consideration to WQCC standards and classifications.

Site analysis means the comprehensive community development process performed by the applicant which considers the site the applicant intends to deliver to staff inside of a 1041 K-OGLA permit application against one (1) or more alternative sites considered by the applicant in terms of protecting public health, safety, welfare, environment and wildlife.

Solid waste means any garbage, refuse, sludge from a waste treatment plant, water supply plant, air pollution control facility, or other discarded material; including solid, liquid, semisolid, or contained gaseous material resulting from industrial operations, commercial operations, or community activities. Solid waste does not include any solid or dissolved materials in domestic sewage, or agricultural wastes, or solid or dissolved materials in irrigation return flows, or industrial discharges which are point sources subject to permits under the provisions of the Colorado Water Quality Control Act, Title 25, Article 8, C.R.S. or materials handled at facilities licensed pursuant to the provisions on radiation control in Title 25, Article 11, C.R.S. solid waste does not include: (a) materials handled at facilities licensed pursuant to the provisions on radiation control in Title 25, Article 11, C.R.S.; (b) excluded scrap metal that is being recycled; or (c) shredded circuit boards that are being recycled.

Solid waste disposal means the storage, treatment, utilization, processing, or final disposal of solid wastes.

Special purpose pits means pits used in oil and gas operations, including pits related to produced water flowlines or associated with E&P waste from gas gathering, processing and storage facilities, which constitute:

(1)

Blowdown pits used to collect material resulting from, including, but not limited to, the emptying or depressurizing of wells, vessels, or flowlines, or E&P waste from gathering systems.

(2)

Flare pits used exclusively for flaring gas.

(3)

Basic sediment/tank bottom pits used to temporarily store or treat the extraneous materials in crude oil which may settle to the bottoms of tanks or production vessels and which may contain residual oil.

(4)

Workover pits used to contain liquids during the performance of remedial operations on a producing well to increase production.

(5)

Plugging pits used for containment of fluids encountered during the plugging process.

Spill means any unauthorized sudden discharge of E&P waste to the environment.

Spud means to start the well drilling process by removing rock, dirt, and other sedimentary material with the drill bit.

Stormwater runoff means rain or snowmelt that flows over land and does not percolate into soil and includes stormwater that flows onto and off an oil and gas location or oil and gas facility.

Stratigraphic well means a well drilled for stratigraphic information only. Wells drilled in a delineated field to known productive horizons shall not be classified as "stratigraphic." Neither the term "well" nor "stratigraphic well" shall include seismic holes drilled for obtaining geophysical information only.

Sundry form means a multipurpose form supplied by the Town of Keenesburg and the OGED used by the operator to request approval of proposed amendments or provide notice of various operations on any oil and gas location or facility located in the Keenesburg Mineral Resource (Oil and Gas) Area. It may also be referred to herein as "1041 K-OGLA sundry form," "sundry" or "amendment."

Surface owner means any person currently owning all or part of the surface of land upon which oil and gas operations are conducted, as shown by the tax records of the Town in which the tract of land is situated, or any person with such rights under a recorded contract to purchase.

Surface use agreement ("SUA") means any agreement in the nature of a contract or other form of document, signed by the landowner and notarized, binding on the operator, including any lease, damage agreement, waiver, local government approval or permit, or other form of agreement, which governs the operator's activities within the oil and gas location.

Surface water intake means the works or structures at the head of a conduit through which water is diverted from a classified water supply segment and/or source (e.g., river or lake) into the treatment plant.

Surface water supply area means the classified water supply segments within five (5) stream miles upstream of a surface water intake on a classified water supply segment. Surface water supply areas shall be identified on the public water system surface water supply area map.

Tank means a stationary vessel constructed of non-earthen materials (e.g. concrete, steel, plastic) that provides structural support and is designed and operated to store produced fluids or E&P waste. Examples include, but are not limited to, condensate tanks, crude oil tanks, produced water tanks, and gun barrels. Exclusions include containers and process vessels such as separators, heater treaters, free water knockouts, and slug catchers.

Temporary means a period of six (6) months or less.

Town Board means the Board of Trustees of the Town of Keenesburg, may also be referred to herein as the "Board."

Town Manager means the Town Manager for the Town of Keenesburg, or their designee.

Turn-in-line means a well turned to sales, and may also be referred to herein as "TIL."

USDA means the United States Department of Agriculture.

Use means any purpose for which a structure or a tract of land may be designed, arranged, intended, maintained or occupied; also, any activity, occupation, business or operation which is carried on, in or on a structure or on a tract of land. The term may also be referred to herein as "land use."

Weed means any undesirable plant.

Well means an oil well or gas well, a hole drilled for the purpose of producing oil or gas, a well into which fluids are injected, a stratigraphic well, a gas storage well, or a well used for the purpose of monitoring or observing a reservoir.

Well site means the areas that are directly disturbed during the drilling and subsequent operation of, or affected by production facilities directly associated with, any oil well, gas well, or injection well and its associated well pad.

Wildlife resources means fish, wildlife, and their aquatic and terrestrial habitats.

WQCC means Water Quality Control Commission of the CDPHE.

WQCD means Water Quality Control Division of the CDPHE.

All other words used herein shall be given their usual customary and accepted meaning, and all words of a technical nature, or peculiar to the oil and gas industry, shall be given that meaning which is generally accepted in said oil and gas industry. A definition may be provided however, provision of a definition of a use does not equate to allowance of the use.

(Ord. 2023-07, 2023, § 3)

(a)

A Keenesburg Oil and Gas Location Assessment pursuant to this Article ("1041 K-OGLA") requires additional consideration to ensure the oil and gas facility and oil and gas location are developed in a manner that complies with various development standards set forth in this Chapter and provides compatibility with uses located within two thousand (2,000) feet of the oil and gas location (including school facilities and child care centers within two thousand (2,000) feet of the oil and gas location). The 1041 K-OGLA permit is designed to protect and promote the health, safety, and welfare of the Town's citizens, environment, and wildlife.

(b)

A 1041 K-OGLA permit is required for all oil and gas development in the Town after adoption of this Title for the construction of an oil and gas location in all zone districts. Existing approved oil and/or gas facilities in Keenesburg may be required to obtain a new 1041 K-OGLA permit and are subject to the development standards as set forth in this Title.

(c)

No oil and gas facility shall be constructed in any zone district until a 1041 K-OGLA permit has been granted by a 1041 WOGLA Hearing Officer, and accepted by Town Board pursuant to the procedures set forth below or following appeal to the Town Board pursuant to provisions of this Article. A development agreement is needed to be entered into between the operator and the Town and shall occur after the W-OGLA Hearing Officer sends the K-OGLA permit to the Town for acceptance by Town Board. This applies to:

(1)

Any new oil and gas location, meaning surface disturbance at a previously undisturbed or fully reclaimed site;

(2)

Surface disturbance for purposes of permanently expanding an existing oil and gas location beyond the originally disturbed area; and

(3)

Major changes to an existing oil and gas facility or oil and gas location as outlined in this Chapter.

(d)

No 1041 K-OGLA permit shall be required for:

(1)

An oil and gas location or facility for which an application has been submitted to the COGCC on or before June 20, 2023.

(2)

Refracs, recompletions, or routine well site operations, including, but not limited to, swabbing, workovers and normal repairs and maintenance of an existing oil and gas facility. Like kind replacement of equipment would be considered routine well site operations.

(3)

Surface disturbance at an existing oil and gas location within the original disturbed area which does not have the effect of permanently expanding the oil and gas facility or the oil and gas location.

(4)

Repairs or maintenance of an oil and gas facility required by a state or federal compliance order.

(5)

Facilities permitted, constructed, operated and maintained pursuant to the municipal code in effect prior to the effective date of this Chapter, including, but not limited to, oil and gas facilities.

However, other permits or agreements may need to be obtained for the activities listed above, including those permits or agreements listed in this Chapter, as well as any applicable county, state or federal permits.

(e)

Changes of use, changes of equipment, or any other changes or modifications to an oil and gas location or oil and gas facility located within the Keenesburg Mineral Resources (Oil and Gas) Area shall submit documentation via the sundry form as outlined in this Chapter.

(f)

Any person or operator filing an application for a 1041 K-OGLA permit shall comply with the procedures and regulations set forth in this Chapter.

(g)

Any person or operator filing an application for a 1041 K-OGLA permit shall comply with this Chapter if the proposal is located within any special flood hazard area identified by maps officially adopted by the Town.

(h)

Applications for a 1041 K-OGLA permit shall be completed as set forth in this Article. The completed application and application fees as may be set by resolution of the Town Board shall be submitted to the Town of Keenesburg. Additionally, the full cost of review of each application shall be paid by the applicant. Concurrent with, or following, the pre-application meeting, the Town shall provide an estimate of review costs to the applicant and the applicant shall execute an agreement to reimburse such costs and provide a funds deposit in the amount of estimated review costs.

(i)

The review, consideration and issuance of a 1041 K-OGLA permit is an administrative hearing process. Oil and gas exploration and production in Keenesburg is considered development as that term is defined in Article VIII of this Chapter. As such, Section 24-65.1-108, C.R.S., is applicable to permitting of oil and gas development in Keenesburg.

(j)

Information regarding the status of or facts and circumstances regarding an approved 1041 K-OGLA permit, including any desired changes or modifications, may be transmitted by a 1041 K-OGLA permittee to the Town Manager via electronic means.

(Ord. 2023-07, 2023, § 3; Ord. 2023-10, 2023, § 1)

(a)

Nothing in these 1041 K-OGLA regulations shall be construed as exempting an applicant for a 1041 K-OGLA permit from any other requirements of the Town.

(b)

As stated in, above, these 1041 K-OGLA regulations are written, in part, according to the authority granted exclusively to local governments in subsections 29-20-104(1)(g) and (1)(h), C.R.S., and are intended to address the following areas and topics regarding oil and gas exploration and production in Keenesburg:

(1)

Land use;

(2)

The location and siting of oil and gas facilities and oil and gas locations;

(3)

Impacts to public facilities and services;

(4)

Water quality and source, noise, vibration, odor, light, dust, air emissions and air quality, land disturbance, reclamation procedures, cultural resources, emergency preparedness and coordination with first responders, security, and traffic and transportation impacts;

(5)

Financial securities, indemnification, and insurance as appropriate to ensure compliance with these 1041 K-OGLA regulations;

(6)

All other nuisance-type effects of oil and gas development addressed in these 1041 K-OGLA regulations; and

(7)

Guiding the development for and regulating the use of land so as to provide planned and orderly use of land and protection of the environment in a manner consistent with constitutional rights.

(c)

These 1041 K-OGLA regulations are written pursuant to the authorities granted to Keenesburg in the AASIA and specifically the express authorities set forth in Sections 24-65.1-202 and 24-65.1-402, C.R.S., to adopt guidelines and regulations governing oil and gas exploration and production in Keenesburg. To the extent these 1041 K-OGLA regulations are inconsistent with the regulations of COGCC regarding any of the areas and topics regarding oil and gas exploration and production in Keenesburg listed above, these 1041 K-OGLA regulations control.

(d)

Pursuant to Section 34-60-131, C.R.S., it is the intent of the Town Board to regulate oil and gas exploration and production in Keenesburg cooperatively with Weld County and the COGCC, deferring regulation of the areas and topics regarding oil and gas exploration and production not addressed in these 1041 K-OGLA regulations to the COGCC.

(Ord. 2023-07, 2023, § 3)

Prior to construction or operation of facilities related to upstream oil and gas operations, an operator shall submit a one-time operator registration form provided by the OGED Director of Weld County and the operator shall present a copy of the same to the Keenesburg Town Manager.

(Ord. 2023-07, 2023, § 3)

The Town Board, having considered the intensity of current and foreseeable development pressures; the guidelines and criteria for identification and land-use controls of geologic hazard and mineral resource areas, special publication 06, Colorado Geological Survey/Department of Natural Resources/Denver, Colorado/1974 (a mapping layer is available on the Weld County GIS website); the guidelines set forth in Section 24-65.1-202, C.R.S.; and the provisions and requirements of these 1041 K-OGLA regulations, hereby orders that the designation of the entire incorporated area of Keenesburg, and as it may expand, a mineral resource (oil and gas) area of state interest [the "Keenesburg Mineral Resource (Oil and Gas) Area"] made by the Town Board on June 20, 2023, is hereby ratified and confirmed and that this activity shall be regulated pursuant to the provisions of this Article.

(Ord. 2023-07, 2023, § 3)

Because oil and gas resources are found throughout the incorporated area of Keenesburg and are being developed rapidly, the Town Board has designated the incorporated area of Keenesburg, as it may expand over time, as a mineral resource (oil and gas) area:

(1)

To regulate oil and gas development in a manner that respects local values and protects the health, safety and welfare of the Town's community and environment;

(2)

To ensure coordination and compatibility between oil and gas exploration and future land use planning;

(3)

To adequately plan for and properly mitigate the instances of encroachment of residential development upon existing oil and gas operations; and

(4)

To have local oversight in land use community development decisions regarding oil and gas exploration and production in Keenesburg.

(Ord. 2023-07, 2023, § 3)

(a)

No person may explore or produce oil and gas within the Keenesburg Mineral Resource (Oil and Gas) Area without first obtaining a 1041 K-OGLA permit pursuant to these 1041 K-OGLA regulations.

(b)

The Town may not issue a building permit for purposes of exploration or extraction of oil and gas within the Keenesburg Mineral Resource (Oil and Gas) Area without the applicant first having obtained a 1041 K-OGLA permit pursuant to these 1041 K-OGLA regulations.

(c)

Operator registration. All persons or entities desiring to perform oil and gas operations within the Keenesburg Mineral Resource (Oil and Gas) Area shall have a valid operator registration form on file with OGED and the Town Manager.

(Ord. 2023-07, 2023, § 3)

The application, notice, and conduct of 1041 K-OGLA permit hearings, appeal of Hearing Officer decisions and issuance and content of permits for exploration or production of oil and gas within the Keenesburg Mineral Resource (Oil and Gas) Area shall comply with the provisions set forth in this Article.

(Ord. 2023-07, 2023, § 3)

Operators are encouraged to initiate and enter into comprehensive development plans ("CDP") where feasible and with the agreement of surface owner(s). CDPs will identify foreseeable oil and gas activities in a defined geographic area, facilitate discussions about potential cumulative impacts, and identify mitigation measures to minimize adverse impacts to public health, safety, welfare, and environment, including wildlife resources. The plan shall (a) identify natural features of the geographic area, including vegetation, wildlife resources, and other attributes of the physical environment; (b) describe the operator's future oil and gas operations in the area; (c) identify potential impacts from such operations; (d) develop agreed-upon measures to avoid, minimize, and mitigate the identified potential impacts; and (e) include other relevant information. A comprehensive development plan must be approved by the Town of Keenesburg, the Weld County 1041 Hearing Officer and shall be valid for a period of up to ten (10) years, as recommended by the Town Manager and the Weld County OGED Director, and as approved by the Hearing Officer, unless extended by the 1041 K-OGLA Hearing Officer with Town approval.

(Ord. 2023-07, 2023, § 3)

(a)

Pre-application meeting. Prior to delivery of the 1041 K-OGLA notice, the applicant shall request a pre-application meeting with the OGED Director. The OGED Director will coordinate with the Town Manager. This meeting may be conducted through a face-to-face meeting, electronic mail exchange, or conference call, as determined by both the Town Manager and the OGED Director. The purpose of the pre-application meeting is to give the applicant an opportunity to demonstrate, through written and graphic information, how the oil and gas location complies with the standards set forth in this Chapter, while protecting the health, safety, and welfare of the Town's citizens, environment, and wildlife. One (1) of the primary reasons for the pre-application meeting is to discuss comprehensive community development and pros and cons of alternative sites. The following shall be submitted to the OGED Director as part of the request for a pre-application meeting:

(1)

Pre-application meeting request. The pre-application meeting request shall be submitted by the applicant on the current form supplied by the OGED.

(2)

Development area drawing. The purpose of the development area (DA) drawing is to illustrate the surroundings to assist in comprehensive community development and in the discussion of oil and gas location siting. The drawing shall identify the DA for which the wells on the oil and gas location are intended to produce, and the preferred site the applicant is considering. In the case of an oil and gas location with no wells, the well(s) producing to that oil and gas location shall be identified.

(3)

Proposed haul route map. The purpose of the haul route map is to identify the applicant's desired route to and from the preferred oil and gas location. The map shall identify the proposed haul route, including off-site haul route(s), from the preferred oil and gas location to the nearest Town designated collector or arterial roadway or nearest highway, and indicate the desired new or existing access point.

(4)

Surface owner name, address, phone number and date of signed SUA, if available.

Upon submittal of the request, the OGED Director shall be responsible for scheduling the pre-application meeting. This meeting shall take place within fourteen (14) business days of the submitted request. Attendees of the pre-application meeting will be the applicant, the Town Manager, and the OGED Director. Invitations to participate in the pre-application meeting will also be sent to the COGCC Director, CPW (if the proposed oil and gas location is within a high priority habitat), and any other entity as determined by the Town Manager and/or the OGED Director. The requirement of the pre-application meeting may be waived but only on the approval of both the Town Manager and the OGED Director.

At the conclusion of the pre-application meeting, the applicant shall send 1041 K-OGLA notice to all required notice parties listed in this Article, below. The notice shall encompass any agreed upon changes resulting from the pre-application meeting.

(b)

1041 K-OGLA notice. Within six (6) months of the pre-application meeting the 1041 K-OGLA notice shall be delivered by the applicant to the following parties:

(1)

The Town Manager;

(2)

The OGED Director;

(3)

The surface owner;

(4)

Property owner(s) whose property boundaries are located within two thousand (2,000) feet or less of the oil and gas location (as determined by the Weld County Assessor's records at the time of notice);

(5)

The COGCC Director;

(6)

The CPW regional representative;

(7)

The LGD for local government(s) whose boundaries are within two thousand (2,000) feet or less of the oil and gas location; and

(8)

The principal, senior administrator, or school governing body of any school facility, future school facility, or child care center whose properties or jurisdictional boundaries are located within two thousand (2,000) feet or less of the oil and gas location.

(c)

Delivery of the 1041 K-OGLA notice shall occur not more than six (6) months, nor less than thirty (30) days, prior to submitting a 1041 K-OGLA permit application. The thirty-day period may be waived, at the discretion of both the Town Manager and the OGED Director. The 1041 K-OGLA notice letter shall include the following information:

(1)

The parcel number and legal description of the oil and gas location.

(2)

A general description of the proposed oil and gas facility, including the number of proposed wells.

(3)

Total disturbed acreage of the oil and gas location.

(4)

The anticipated date operations will commence (calendar quarter and year).

(5)

A statement that the notice recipient may request a meeting to discuss the proposed oil and gas location with the operator, Weld County and the Town.

a.

Operator, assigned OGED permit and enforcement specialist, and Town Community Development Department's contact information shall be provided.

(6)

A statement that the applicant will consider reasonable mitigation measures proposed by the notice recipient to minimize adverse impacts of the proposed oil and gas location.

(7)

The following shall be attached to the notice:

a.

Notification zone drawing. The purpose of the notification zone drawing is to identify any required notice parties. This shall be a scaled drawing with scaled aerial imagery of the oil and gas location to include the 1041 K-OGLA zone, all property lines and parcel numbers, as well as the name and address of the owner(s) of any parcel(s) located within two thousand (2,000) feet of the oil and gas location, as determined by the Weld County Assessor's records.

b.

Haul route map. The purpose of the haul route map is to identify the applicant's desired route to and from the oil and gas location. The map shall identify the proposed haul route, including off-site haul route(s), from the oil and gas location to the nearest Town designated collector or arterial roadway or nearest highway, and indicate the desired new or existing access point.

(d)

Upon receipt of the 1041 K-OGLA notice by the OGED Director and the Town Manager, they may request additional parties to be noticed. If requested, the applicant shall provide proof of notice delivered. All required notice parties may waive receipt of such notice(s) via surface use agreement (SUA) or other agreement with the operator or by written request to the Town Manager and the Weld County OGED Director.

(Ord. 2023-07, 2023, § 3)

A 1041 K-OGLA permit application shall be submitted to the Town Manager and OGED Director, or their designee for processing and determination of whether the application is complete and in compliance with the requirements of this Section. The following shall be submitted as a part of the application:

(1)

Keenesburg Oil and Gas Location Assessment Application. A 1041 K-OGLA permit application shall be submitted by electronic transmission format acceptable to the Town.

a.

Application. A 1041 K-OGLA permit application, on the current form supplied by the Town, shall be fully completed and executed by the applicant. If an authorized legal agent signs the application on behalf of the applicant, evidence of a power of attorney or other authorization must be provided.

b.

Certification of 1041 K-OGLA notice. Completion of this form certifies that a 1041 K-OGLA notice has been delivered to all required notice parties, pursuant to this Article.

c.

Certification of surface use agreement. Completion of this form certifies that a SUA or other agreement has been executed between the operator and the surface owner(s) of the property where the oil and gas location will be located. This form demonstrates that the operator and surface owner have agreed to the oil and gas location. If no SUA or other document is available at the time of application, the applicant shall proceed with the 1041 K-OGLA permit process and shall provide a statement that the SUA, or other agreement negotiations are taking place and the applicant is willing to provide financial security as set forth in this Article. In the case where no SUA or other agreement is necessary, the applicant shall provide a statement of explanation and attach supporting documentation.

d.

Authorization. Where an applicant is not the surface owner of the parcel(s) on which the oil and gas location is sited, an authorization form executed by the surface owner(s) must be provided. If a copy of the SUA is provided with the application, then the SUA's grant of access to the site fulfills the requirement of providing an authorization form.

e.

Required information. The applicant shall provide site-specific best management practices (BMPs) illustrating how the health, safety, and welfare of Town's residents, environment, and wildlife will be protected. With the consent of the surface owner(s), BMPs may include mitigation measures relevant to the SUA or other agreement.

1.

A statement which explains that the application complies with the Keenesburg Comprehensive Plan, if the oil and gas location is within a special flood hazard area identified by maps officially adopted by the Town.

2.

A thorough explanation of the site analysis the applicant has performed for the oil and gas location, as supported by the DA drawing described below. Each alternative site shall include a short narrative of its pros and cons. The site analysis, beginning with the pre-application meeting, must describe how the applicant's proposed location is superior to other alternatives considered by the applicant in terms of protecting Keenesburg' residents, resources and infrastructure. Although it is not incumbent upon an applicant to describe a certain number of alternatives that were considered against the applicant's chosen site, it is generally expected that the applicant provide one (1) or more alternatives within the analysis that the applicant demonstrates as inferior. The site analysis may include more alternatives if the applicant's chosen site has the following cultural items within two thousand (2,000) feet of the applicant's chosen site as measured from the disturbance area to the cultural item: building units, high occupancy building units, hospitals, schools, churches, sensitive areas, high priority habitats, local government boundaries, and water resources including lakes, ponds, rivers, and ditches.

3.

BMPs and a narrative which explains how the applicant will comply with the development standards set forth in this Chapter and any applicable county, state and federal regulations.

4.

A narrative describing plans for final reclamation.

5.

A traffic narrative for the oil and gas location addressing operations for construction, drilling, and completions, shall include the following information:

(a)

The number of roundtrips/day (roundtrip = one (1) trip in and one (1) trip out) expected for each vehicle (type, size, weight).

(b)

The expected haul routes for the vehicles.

(c)

The travel distribution along the routes (e.g. fifty (50) percent of traffic will come from the north, twenty (20) percent from the south, thirty (30) percent from the east, etc.).

(d)

The time of day when the highest traffic volumes are expected.

(2)

Attachments. The following shall be attached to the application:

a.

Haul route map. The purpose of the haul route map is to identify the applicant's desired route to and from the oil and gas location. The map shall identify the proposed haul route, including off-site haul route(s), from the oil and gas location to the nearest Town designated collector or arterial roadway or nearest highway and indicate the desired new or existing access point.

b.

Development area drawing. The purpose of the development area (DA) drawing is to illustrate the surroundings to assist in comprehensive community development review and in the discussion of oil and gas location siting. The drawing shall identify the DA for which the wells on the oil and gas location are intended to produce, and the preferred and alternative sites the applicant is considering. In the case of an oil and gas location with no wells, the well(s) producing to that oil and gas location shall be identified.

c.

Location photos. A minimum of four (4) color photographs of the staked location, one (1) from each cardinal direction, shall be attached. Each photograph shall be identified by: date taken, location name, and direction of view.

d.

Location drawing. The purpose of the location drawing is to identify all visible improvements within the 1041 K-OGLA zone. It shall be a scaled drawing with scaled aerial imagery to include horizontal distances and approximate bearing from the oil and gas location for all visible improvements. This drawing shall be stamped by a licensed professional surveyor showing any survey monuments in the 1041 K-OGLA zone and the Town road right-of-way extents, if applicable.

e.

Facility drawing. The purpose of the facility drawing is to identify the positioning of all equipment on the oil and gas location. This shall be a scaled drawing illustrating the approximate outline of the oil and gas location and identifying all existing and proposed well(s), equipment, and flowline corridors on-location covered by the application.

f.

Process flow diagram. A process flow diagram (PFD) depicts oil and gas production operations. The PFD shall be presented as a flowchart that illustrates the general flow of processes and equipment at an oil and gas location. The PFD shall include all permanent oil and gas facilities and shall show the flow path and direction of all oil, gas and water produced on, or transported to or from the oil and gas location. The PFD shall also illustrate fuel and power sources for major equipment. The PFD need not include detailed piping and instrumentation.

g.

Waste management plan. A waste management plan shall be provided that describes the methods for storing, transporting and disposing of wastes. The plan must include a statement that waste materials will be handled in compliance with and should cite appropriate local, state and federal regulatory requirements. The plan should further provide that wastes stored on site will be stored in compatible containers that are regularly inspected to ensure they are in good condition and free of excessive wear, structural issues or other defects that may impact their effectiveness. Reports and information regarding the integrity and effectiveness of compatible containers will be made available for review upon request. At a minimum, the waste management plan must address the following waste streams: drilling fluids, drill cuttings, hydraulic fracturing fluid, flowback and produced water, oil stained soils, tank bottoms, general trash, hazardous materials, and other non-hazardous solid wastes.

h.

Lighting plan. A plan detailing lighting to be utilized during the construction phase, and if applicable, the production phase shall be attached as specified below.

(3)

Additional attachments. The following items may be required as attachments to the application, if applicable:

a.

Multi-well plan. If the proposed oil and gas location is for multiple wells on a single pad, a drawing showing proposed wellbore trajectory with bottom-hole locations shall be attached.

b.

Reclamation plan. If the final land use includes residential, industrial, commercial, or cropland, a reclamation plan is not needed. If the final land use includes rangeland, forestry, recreation, wildlife habitat, or any other non-excluded land use, the following information shall be attached:

1.

Reference area map. A topographic map showing the oil and gas location, and the location of the selected reference area; and

2.

Reference area photos. Four (4) color photographs of the reference area, taken during the growing season of vegetation, one (1) from each cardinal director. Each photograph shall be identified by date taken, location name, and direction of view. Such photographs may be submitted to OGED and the Town Manager any time up to twelve (12) months after the granting of the 1041 K-OGLA permit.

c.

Noise mitigation plan. A noise mitigation plan that describes how the operator will comply with the maximum permissible noise levels specified below may be required. The plan shall include site-specific design for mitigation measures including the appropriate BMPs, engineering practices, and available technology the operator will utilize to achieve compliance. The plan will provide an estimated duration of each stage of operations, including drilling, completion, flowback, production, and an estimate of the noise levels of each stage of operations. Lastly, the plan will reference any topographical and/or geographical features which may impact noise propagation from the proposed oil and gas location.

d.

Dust mitigation plan.

e.

Odor mitigation plan.

f.

Oil and gas solar energy facility (OGSEF) plan.

(4)

Additional Town or County issued permits and agreements. The following permits and agreements may be required either for the issuance of a 1041 K-OGLA permit, or after approval of a 1041 K-OGLA permit:

a.

Both an emergency action plan (EAP) and tactical response plan (TRP) are required for a 1041 K-OGLA permit. The applicant shall complete an EAP and TRP on the template provided by the Weld County Office of Emergency Management (OEM). OEM will consult with the local fire district on behalf of the applicant.

b.

An access permit is required for a 1041 K-OGLA permit. The applicant shall complete an access permit application provided by the Town. If the access point is under the jurisdiction of the Colorado Department of Transportation, Weld County, or a local government, proof of access granted by such local government ("authority having jurisdiction" or AHJ) is required.

c.

A road maintenance agreement (RMA), comprehensive road maintenance agreement, and a development agreement may be required for a 1041 K-OGLA permit. Following the submittal of a 1041 K-OGLA permit application, the RMA shall be prepared by the jurisdiction managing the road. The applicant shall provide an executed RMA to the Town Manager and the OEM. If the RMA is to be issued by the Weld County Department of public works, a cash in lieu one-time payment may be considered as an alternative to the RMA.

d.

A drainage report is required for a 1041 K-OGLA permit. At the time of application submittal, at minimum, a preliminary drainage report shall be provided for review. Prior to applying for a grading permit, a final drainage report stamped and signed by a professional engineer registered in the State of Colorado is required to be submitted for final approval to the Town Manager.

e.

If the oil and gas location is located within a special flood hazard area identified by maps officially adopted by the Town of Keenesburg, a Town of Keenesburg Flood Hazard Development Permit (FHDP) is required for a 1041 K-OGLA permit.

f.

A grading permit issued by the Town is required prior to construction of any oil and gas location greater than one (1) acre.

g.

If applicable, building permit(s) issued by the Town.

h.

If applicable, right-of-way (ROW) permit(s), issued by the Town are required for any work occurring within Town ROW. No work within Town ROW shall occur without such ROW permits being issued.

i.

If applicable, a special transport permit shall be obtained from either Weld County or the Town. No vehicles associated with the 1041 K-OGLA permit may exceed legal per axle weight limits and/or legal size limits as set forth in Chapter 8, Article III of this Code, unless special transport permits have been applied for and granted by the Town.

(5)

Additional information may be required by either the Town Manager or the OGED Director, resulting from consultation with referral agencies, and/or the public.

(Ord. 2023-07, 2023, § 3)

At time of application submittal, an operator shall provide financial assurance to the Town in the form of a surety bond or other collateral acceptable to the Town Manager and the Town Attorney in the amount set forth below to protect surface owners who are not parties to a lease, SUA or other relevant agreement with the operator from unreasonable crop loss or land damage caused by oil and gas operations. Financial assurance for surface owner protection shall not be required for operations conducted on state lands when a bond has been filed with the State Board of Land Commissioners. The financial assurance required by this Section shall be in the amount of five thousand dollars ($5,000.00) per well. In lieu of such individual amounts, operators may submit blanket financial assurance in the amount of twenty-five thousand dollars ($25,000.00). Any request for relief pursuant to such financial assurance must be granted by the Town Board upon receipt of a written request from the surface owner, which may be submitted to the Town Manager at any time. Corrective or remedial action performed by the operator may be considered by the Town Board before and as part of any order to execute on the financial assurance provided pursuant to this Section. The financial assurance provided pursuant to this Section is not intended to limit any monetary award for unreasonable crop loss or land damage that cannot be remediated or corrected. Financial assurance submitted to the Town Manager shall be held for safekeeping by the Town Treasurer. The Town Manager may release the financial assurance upon satisfaction that risk of loss to the surface owner has been eliminated.

(Ord. 2023-07, 2023, § 3)

(a)

The Town Manager and OGED Director shall review the 1041 K-OGLA permit application to determine if it is complete. Such review shall occur within seven (7) days of the filing of the application. Upon completeness determination, the OGED Director shall:

(1)

Prepare legal notice for the hearing to be published in the newspaper designated by the Town Board for publication of notices. The date of publication shall be at least thirty-seven (37) days prior to the date of hearing. The mailed and published notice shall inform the reader that he or she may apply for intervention in the manner set forth in this Article.

(2)

Send notice of a hearing for the 1041 K-OGLA permit application before the Hearing Officer to the surface owner; to property owner(s) whose property boundaries are located within two thousand (2,000) feet or less of the oil and gas location; to the school governing body of any school or child care center whose properties or jurisdictional boundaries are located within two thousand (2,000) feet or less from the oil and gas location. Such notification shall be sent first-class mail by OGED at least thirty-seven (37) days prior to the date of hearing. The mailed notice shall inform the recipient that they may apply for intervention in the manner set forth in this Article.

(3)

Refer the application to the following agencies for review and comment. The agencies named shall respond within twenty-eight (28) days from the mailing of the application by the OGED. The failure of any agency to respond within twenty-eight (28) days shall be deemed to be a favorable response to OGED and the Town. The referral shall state that the OGED Director and Town will conduct a formal consultation with the referral agency during the twenty-eight-day referral period if requested by the referral agency. Reviews and comments solicited by the OGED and Town are intended to provide both with information about the proposed oil and gas location. The reviews and comments submitted by a referral agency are recommendations to the 1041 W-OGLA Hearing Officer:

a.

The LGD, Planning Commission, or governing body of any local government whose boundaries are within two thousand (2,000) feet of the oil and gas location, as determined by the Weld County Assessor's records at the time of notice.

b.

The Weld County Department of Public Health and Environment.

c.

The Weld County Department of Public Works.

d.

The Weld County Department of Planning Services.

e.

The CPW.

f.

The COGCC.

g.

The CDPHE.

h.

The appropriate school district(s).

i.

The appropriate fire district(s).

j.

Any irrigation ditch company with irrigation structures of record that are within the 1041 K-OGLA zone.

k.

To any other agencies or individuals to whom the Town Manager and OGED Director deems a referral necessary.

(4)

OGED and Town will collaborate to prepare staff comments addressing all aspects of the application, its conformance with the Keenesburg Municipal Code in effect at the time of filing of the application, orderly land use community development practices, comments received from agencies to which the proposal was referred, and the standards contained in this Article. Such comments shall be provided to the Hearing Officer for consideration as evidence in the hearing.

(5)

Charge a reasonable fee that covers costs incurred by the Town of Keenesburg for review of the application, holding the appropriate hearing, and performing any necessary administrative tasks associated with the issuance of the 1041 K-OGLA permit. All new applications shall adhere to the requirements contained in this Chapter and will be assessed a new processing fee.

(b)

Any application deemed incomplete by the Town Manager and OGED shall be re-submitted within ninety (90) days for completeness determination. Any application remaining incomplete beyond ninety (90) days will be automatically withdrawn.

(Ord. 2023-07, 2023, § 3)

(a)

1041 K-OGLA hearing participation. The applicant and any person or entity who has been granted intervention by the Hearing Officer shall have the right to participate formally in the 1041 K-OGLA hearing. The process for seeking intervention is as follows:

(1)

Application for intervention must be received by the Hearing Officer twenty (20) days prior to the 1041 K-OGLA hearing. Application for intervention must be on the form provided on the OGED website. Persons who have standing to participate are limited to those who have received notice of the 1041 K-OGLA hearing by first-class mail or who have demonstrated they would be directly, adversely and significantly affected or aggrieved by the granting of the 1041 K-OGLA permit. Application for intervention must include the following:

a.

The docket number and date of the 1041 K-OGLA hearing;

b.

Legal address of the person applying for intervention;

c.

A general statement of the factual or legal basis for the protest or intervention;

d.

A description of the intended presentation including a list of proposed witnesses; and

e.

An estimate of the time required to present the protest or intervention.

(2)

Applications for intervention shall be granted or denied by the Hearing Officer within ten (10) days of their receipt. Such decision shall be communicated to the applicant for intervention in writing by the Hearing Officer.

(3)

Any written comment provided by a person who is not granted intervention, or by any other member of the public, will be included in the 1041 K-OGLA hearing record, to be considered by the Hearing Officer as evidence and given such weight as the Hearing Officer believes is appropriate.

(b)

Conduct of 1041 K-OGLA hearing.

(1)

1041 K-OGLA hearings shall be recorded, and a list of attendees shall be kept.

(2)

Participation by the parties and/or witnesses by telephone or other electronic means shall be at the discretion of the Hearing Officer.

(3)

The Hearing Officer shall control the evidence taken during the hearing in a manner best suited to fully and fairly develop the relevant evidence, safeguard the rights of all parties, and ascertain the substantive rights of the parties based on the merits of the issues(s) to be decided.

(4)

1041 K-OGLA hearings will be docketed to occur on a weekly basis on days to be determined by the Hearing Officer. Complete applications whose notice requirements have been met shall be scheduled for hearing on the next available weekly docket.

(c)

Decision of the 1041 K-OGLA Hearing Officer. Upon the conclusion of the 1041 K-OGLA hearing, the Hearing Officer shall:

(1)

Grant the 1041 K-OGLA permit if they determine that sufficient evidence exists in the record that the standards set forth in below will be met and that the proper site analysis has been performed by the applicant, or

(2)

Continue the 1041 K-OGLA hearing if they determine that insufficient evidence exists in the record and additional information is required in order to make a determination, upon staff recommendation, or at the applicant's request, or

(3)

Deny the 1041 K-OGLA permit if they determine that insufficient evidence exists in the record or that a proper site analysis has not been performed by the applicant. If a 1041 K-OGLA permit is denied, the applicant may apply for the same parcel only if substantial changes have been made to the application from the original submittal.

(4)

Inform the participants of their decision. The decision of the Hearing Officer shall be clearly set forth in the order issued by the Hearing Officer. The addition, deletion or modification of any conditions of approval shall be clearly identified in the order.

(5)

If the Hearing Officer grants approval of the 1041 K-OGLA permit, the applicant shall collaborate with the Town Manager and obtain approval of a development agreement. Refer to the Section below on recording of the 1041 K-OGLA permit and vested property rights.

(6)

Inform the participants that such decision may be appealed pursuant to the appeal procedures set forth in this Article.

(d)

Motion for reconsideration. A motion for reconsideration may be considered by the Hearing Officer in cases where a 1041 K-OGLA permit has been denied. Such motion must be filed no later than ten (10) days after the applicant has received notice of the denial. A motion for reconsideration must state, with sufficient clarity, the specific reason(s) the applicant believes the denial was the incorrect decision.

(e)

Right to appeal. The appellant must file a written notice with the Town Manager and the OGED Director within ten (10) days of receiving the Hearing Officer's final order. The notice of appeal must specifically state what part of the decision the appellant believes the Hearing Officer either misinterpreted the facts presented in the application and/or in the 1041 K-OGLA hearing, or misapplied the regulations set forth in this Article. The notice shall not exceed five (5) pages in length. The OGED Director may submit a memorandum brief but must do so within ten (10) working days of receiving the notice of appeal. Any such memorandum brief shall not exceed five (5) pages in length.

(f)

Review of appeal and decision. The OGED Director shall transmit the Hearing Officer's order, the notice of appeal and any memorandum brief to the Town Board for review within twenty-one (21) days of receiving the notice of appeal. The Town Board may affirm the Hearing Officer's order, modify it in whole or in part, or remand the matter to the Hearing Officer for further fact-finding. A modification may only be made if, based upon the Hearing Officer's findings of fact, the order clearly shows the Hearing Officer either misinterpreted the facts presented in the application and/or in the 1041 K-OGLA hearing, or misapplied the regulations set forth in this Article. The Town Board may review the entire 1041 K-OGLA hearing record upon a majority vote of the Town Board. The Town Board shall transmit a written decision on the appeal to the OGED Director within ten (10) working days after receiving the notice of appeal and other documents allowed herein. The OGED Director shall thereafter communicate the decision to the applicant and the Hearing Officer within five (5) working days of receiving the Board's decision.

(Ord. 2023-07, 2023, § 3)

Following the 1041 K-OGLA hearing, if the Hearing Officer grants approval for the 1041 K-OGLA permit, the following shall occur:

(1)

The Hearing Officer shall refer the applicant to the Town Manager. The Town Manager will provide direction to the applicant on completing the development agreement. The applicant will be required to provide an improvement guarantee and warranty meeting the requirements of Section 17-7-20(c) of this Code and a warranty in a form acceptable to the Town for public improvements and some on-site improvements. Once the development agreement is completed, the Town Manager will present the development agreement to Town Board for consideration. Upon approval of the development agreement, Town Board at the same meeting shall adopt the 1041 K-OGLA permit determination of the Hearing Officer.

(2)

The Town Clerk shall record the final order and the development agreement with the Weld County Clerk and Recorder.

(3)

Pursuant to Section 24-68-101(1)(a), C.R.S., with the intent to ensure reasonable certainty, stability, and fairness in the land use community development process and in order to stimulate economic growth, secure the reasonable investment-backed expectations of landowners, and foster cooperation between the public and private sectors in the area of land use community development, the Town Board declares and orders that an approved 1041 K-OGLA permit is an approved site specific development plan as that term is defined in this Title and in Section 24-68-102(4)(a), C.R.S. Therefore, an approved 1041 K-OGLA permit is a vested property right, as defined in this Chapter, upon the completion of the requirements set forth in Chapter 17, Article XI of this Code. Once a vested property right is approved pursuant to the requirements of Chapter 17, Article XI of this Code, the approved 1041 K-OGLA permit confers upon the operator the right to undertake and complete the exploration and production of oil and gas in the Town of Keenesburg under the terms and conditions set forth therein, pursuant to Section 24-68-103(1)(c), C.R.S.

(4)

After the final order is recorded with the Weld County Clerk and Recorder, the Town Manager shall forward a copy of the recorded document to OGED Director and the COGCC.

(Ord. 2023-07, 2023, § 3)

An applicant for a 1041 K-OGLA permit shall comply with the conditions of approval and development standards detailed in the 1041 K-OGLA permit and in this Article and Article X of this Chapter. Noncompliance with the conditions of approval and development standards may be reason for revocation of the 1041 K-OGLA permit by the Town and the Hearing Officer.

Enforcement actions by the Town and the OGED Director shall be according to the following procedure:

(1)

Enforcement of conditions of approval. The Hearing Officer shall, after hearing and upon issuing a preliminary order granting the 1041 K-OGLA permit, schedule a return date when the operator shall present evidence to the Hearing Officer that all "prior to recording" conditions of approval have been satisfied. Upon providing such evidence the Hearing Officer shall issue a final order granting the 1041 K-OGLA permit. If no "prior to recording" conditions of approval exist, the Hearing Officer shall issue a final order granting the 1041 K-OGLA permit and no return date shall be necessary. Should at any time the Operator be found to be out of compliance with any remaining condition of approval the Town Manager and the OGED Director may set a suspension or revocation hearing before the Hearing Officer pursuant to the provisions of this Chapter, below.

(2)

Enforcement of development standards. The enforcement of the standards (referred herein as "development standards") stated in the 1041 K-OGLA permit and/or in this Article and Article X of this Chapter shall be conducted by the OGED Director in the following manner, unless otherwise stipulated:

a.

Upon receiving a complaint from any member of the public or the filing of an inspection report by an OGED inspector, alleging a violation of development standards stated in the 1041 K-OGLA permit and/or in this Article and Article X of this Chapter the OGED Director shall notify the operator of the complaint or adverse inspection report and require operator investigation and response within twenty-four (24) hours. Within the OGED Director's required timeframe, the operator shall correct the violation and inform the OGED Director of such correction. If the operator is unable to achieve the required correction within the stated timeframe, the operator shall inform the OGED Director of the circumstances and the anticipated date of correction, and the OGED Director may modify the stated timeframe.

b.

If the OGED Director has probable cause to believe the violation persists, he or she shall notify the operator in writing of the violation, present a demand for correction and provide a date upon which the violation must be corrected. The operator shall correct the violation within the stated timeframe and notify the OGED Director in writing of such correction.

c.

If the OGED Director does not receive a written response from the operator within the stated timeframe saying the violation has been corrected, or if upon OGED inspection there is probable cause to believe the violation persists, the OGED Director shall set a suspension or revocation hearing before the Hearing Officer pursuant to the provisions of this Chapter.

(Ord. 2023-07, 2023, § 3)

(a)

Notifications to the OGED Director and Town Manager. The following notifications sent to the Town and OGED shall certify certain conditions of approval or development standards, which were specified as part of the approved 1041 K-OGLA permit, have been completed. The notification shall list the condition of approval or development standard completed, along with any relevant permit number or identification number assigned.

(1)

Prior to construction notification. The operator is required to provide written notice to the OGED Director and Town Manager via the 1041 K-OGLA sundry form two (2) weeks prior to beginning the construction phase of the oil and gas location. This written notice satisfies the notification requirements of the road maintenance agreement, Town development agreement, the emergency action plan and any other agreements or permits needed to have in place for the site-specific development plan.

(2)

Drilling and completions notifications. The operator is required to provide notice to the Town Manager and the OGED Director for the following:

a.

Spud notice. At least forty-eight (48) hours prior to spud, the operator shall provide written notice of such activity to the Town Manager and the OGED Director via the 1041 K-OGLA sundry form. This notification satisfies the requirements outlined in the emergency action plan.

b.

Completions notice. At least one (1) week prior to commencement of completions activity on an oil and gas location, the operator shall provide written notice of such activity to the Town Manager and the OGED Director via the 1041 K-OGLA sundry form. This notification will meet the requirements outlined in the emergency action plan.

(3)

Turn-in-line notification. The operator is required to provide written notice to the Town Manager and the OGED Director via the 1041 K-OGLA sundry form within two (2) weeks of a well or facility being turned to sales. This written notice shall include an electronic GIS map (shapefile or .kmz) showing the off-location flowlines. This written notification satisfies the notification requirements of the road maintenance agreement, Town development agreement, the emergency action plan and any other agreements or permits needed to have in place for the site-specific development plan.

(4)

Interim reclamation notice. The operator is required to provide written notice to the Town Manager and the OGED Director via the 1041 sundry form pursuant to the requirements of this Article, documenting the success of the interim reclamation.

(5)

Final abandonment notice. The operator is required to provide written notice to the Town Manager and the OEGD Director via the 1041 K-OGLA sundry form at least one (1) week prior to plugging the final well on a location or final decommissioning of an oil and gas facility. This notice will begin the final reclamation requirements outlined in this Article.

(b)

Notifications to the surface owner. With respect to the notices listed in this Section, it shall be the responsibility of the notified surface owner to give notice of the proposed operation to the tenant farmer, lessee, or other party that may own or have an interest in any crops or surface improvements that could be affected by such proposed operation. Unless the following is otherwise addressed in the SUA or memorandum of SUA, or the surface owner has signed a written waiver of the notifications required in this Section, the following notices to the surface owner shall occur:

(1)

Notification prior to construction. The applicant is required to provide notice to the surface owner in writing not less than thirty (30) days in advance of commencement of operations with heavy equipment prior to the beginning of drilling of a well. This written notice shall provide the following:

a.

The operator's name and contact information for the operator or its agent; and

b.

A site diagram or plat of the oil and gas location and any associated roads; and

c.

The date operations with heavy equipment are expected to commence; and

d.

The contact information for OGED and the Town Manager.

This notice shall be delivered by hand; certified mail, return-receipt requested; or by other delivery service with receipt confirmation. Electronic mail may be used if the surface owner has approved such use in writing.

(2)

Subsequent well operation notification. An operator shall provide to the surface owner at least ten (10) days' advance notice of subsequent well operations with heavy equipment that will materially impact surface areas beyond the existing access road or well site, such as recompleting or stimulating the well.

(3)

Final reclamation notification. Not less than thirty (30) days before any final reclamation operations are to take place, the operator shall notify the surface owner. Final reclamation operations shall mean those reclamation operations to be undertaken when a well is to be plugged and abandoned or when production facilities are to be permanently removed. In preparing for final reclamation and plugging and abandonment, the operator shall use its best efforts to consult in good faith with the affected surface owner (or the tenant when the surface owner has requested that such consultation be made with the tenant). Such good faith consultation shall allow the surface owner the opportunity to provide comments concerning preference for timing of such operations and all aspects of final reclamation, including, but not limited to, the desired final land use and seed mix to be applied.

Any of the notices required in this Article may be waived in writing by the surface owner provided that a waiver by a surface owner shall not prevent the surface owner or any successor-in-interest to the surface owner from rescinding that waiver if such rescission is in accordance with applicable law.

(c)

Notification to building unit owner(s). At least thirty (30) days, but no more than ninety (90) days, before oil and gas operations or construction commences, the operator shall provide written notice (notice of operations) to all building unit owners within the 1041 K-OGLA zone. Building unit owners shall be re-noticed if: it has been more than one (1) year since the previous notice or since drilling activity last occurred, or notice was not previously required.

(1)

Notice of operations shall be delivered in writing, with receipt confirmation, to all building units within the 1041 K-OGLA zone (as determined by Weld County Assessor's record at the time of notice).

(2)

The notice of operations must include:

a.

A statement informing the building unit owner that the operator intends to construct an oil and gas location within two thousand (2,000) feet of their building unit;

b.

The parcel number and legal description of the property on which the oil and gas location is situated;

c.

The location name, 1041 K-OGLA permit number, and number of wells to be drilled;

d.

Approximate cross streets of the oil and gas location;

e.

The anticipated date (month and year) the construction or operations will commence; and

f.

Operator, Town of Keenesburg and OGED contact information.

(3)

A building unit owner entitled to receive notice of operations may waive their right to be noticed, in writing, at any time. The operator shall provide evidence of this waiver to Town Manager and OGED, if requested.

(Ord. 2023-07, 2023, § 3)

(a)

Any amendments to an oil and gas location which modify or expand the facility or location beyond what was originally permitted by the Town or the COGCC shall be filed with the Town of Keenesburg via the OGED 1041 K-OGLA sundry form. The OGED Director will review the sundry form and determine if the request is minor or major, and if subsequent action is needed. Minor amendments may be administratively approved by the Town Manager and OGED Director, however additional BMPs may be required. Major amendments may require a new 1041 K-OGLA permit application and fee.

(b)

Major amendments to an existing oil and gas location may require the approval of a new 1041 K-OGLA permit or a subsequent hearing before the Hearing Officer. "Major amendments" include, but are not limited to, the following: any surface disturbance at a previously undisturbed or fully reclaimed site; surface disturbance for purposes of permanently expanding an existing oil and gas location beyond the originally disturbed area; the addition of one (1) or more wells; amendments to a final order granted by the Hearing Officer, increases of equipment which change the character of the facility or location, and/or moving an existing or permitted location.

(c)

No sundry form request for amendment is required for refracs, recompletions, routine well site operations, normal repairs and maintenance of an existing oil and gas facility, like kind replacement of equipment, setting temporary equipment, surface disturbance at an existing oil and gas location within the original disturbed area which does not have the effect of permanently expanding the oil and gas facility or oil and gas location, and repairs or maintenance of an oil and gas facility required by a city, county, state or federal compliance order.

(d)

The construction phase authorized by an approved 1041 K-OGLA permit shall be completed within three (3) years from the date of publication announcing the approval of the 1041 K-OGLA permit, or the approval shall terminate. However, if the construction phase has been commenced within the three (3) years, but not completed, an additional three (3) years shall be granted by the OGED Director, via a 1041 K-OGLA sundry form, but the 1041 K-OGLA permit shall then be subject to any new rules amended into this Chapter since the approval of the original 1041 K-OGLA permit.

(Ord. 2023-07, 2023, § 3)

(a)

If following the notice and timeframes called for in this Article above, the OGED Director determines that one (1) or more of the 1041 K-OGLA permit development standards set forth in this Article or Article X of this Chapter have not been met, the OGED Director shall notify the operator of the oil and gas location of the failure to comply with the terms of the 1041 K-OGLA permit and/or the development standards set forth in this Article. The notice will inform the operator that a hearing has been scheduled before the Hearing Officer to determine if the 1041 K-OGLA permit should be suspended or revoked. The operator shall have the right to participate and present information at the hearing.

(b)

The Hearing Officer shall hold a hearing to determine if the operator of the oil and gas location has failed to comply with the terms of the 1041 K-OGLA permit and/or the regulations set forth in this Chapter. Upon such a finding, the Hearing Officer may suspend or revoke the 1041 K-OGLA permit, and/or order the operator to cease the use of the oil and gas facility immediately. In lieu of suspension or revocation, the Hearing Officer may order the operator to submit a compliance plan and set a timeframe for return to present evidence of compliance.

(c)

The operator may appeal the Hearing Officer's order to the Town Board by following the appeal procedures in this Chapter.

(Ord. 2023-07, 2023, § 3)

OGED staff may inspect, at any time, the oil and gas locations subject to the regulations set forth in this Article to determine if the oil and gas location is in compliance.

(Ord. 2023-07, 2023, § 3)

Once issued, 1041 K-OGLA permits are transferable to a new operator. The new operator is subject to all terms and conditions of the 1041 K-OGLA permit and shall be considered the responsible party. Within sixty (60) days of transfer, the new operator shall notify the OGED Director and Town Manager, via sundry form, and the surface owner in writing of the name, business address, and other contact information for the new operator.

(Ord. 2023-07, 2023, § 3)