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Parker City Zoning Code

CHAPTER 13

06 - Oil and Gas Regulations

13.06.010 - Purpose.

(a)

These regulations are enacted to protect the public's safety, health, and welfare of the present and future residents of the Town and to safeguard the environment and wildlife resources. In Colorado, the surface and mineral estates are separate and distinct interests in land, and one may be severed from the other. Owners of subsurface mineral interests have certain legal rights and privileges, including the right to use that part of the surface estate reasonably required to extract and develop their subsurface mineral interests, subject to compliance with the provisions of these regulations and any applicable statutory and regulatory requirements. Similarly, owners of the surface estate have certain legal rights and privileges, including the right to have the mineral estate developed in a reasonable manner and to have adverse land use impacts upon their property, associated with the development of the mineral estate, mitigated through compliance with these regulations. As the oil and gas industry seeks to obtain approval to extract mineral resources in and around populated areas, it has begun encroaching on residential areas.

(b)

Municipal governments have a recognized, traditional authority and responsibility to regulate land use within their jurisdiction to the extent they do not create an operational conflict with the state regulation of oil and gas development. These regulations are intended as an exercise of this land use authority and of the Town's plenary authority to regulate all aspects of oil and gas development, including land use and all necessary police powers. As such, the Town shall condition oil and gas development permits to require oil and gas development to only occur in a manner that does not adversely impact the health, safety, and welfare of the Town's residents in their workplaces, their homes, their schools, and public parks in order to protect the public's health, safety, and welfare and to safeguard the environment and wildlife resources. Nothing in this Chapter shall be construed as giving the Town the authority to enforce state or federal laws, rules, or regulations. In order to implement these goals, it is declared the policy of the Town to:

(1)

Anticipate and mitigate potential environmental impacts, including soil, groundwater, and air, associated with oil and gas development, particularly in and around other land uses.

(2)

Anticipate and mitigate potential impacts to historical and cultural resources associated with oil and gas development, particularly in and around other land uses.

(3)

Work with operators to identify and locate alternative oil and gas locations from the perspective of protecting public health, safety, welfare, and the environment.

(4)

Gather complete information to assist Parker in its analysis of proposed oil and gas development.

(5)

Continuously identify and require state of the art equipment, protocols, and technology to protect the public health, safety, and welfare.

(6)

Anticipate and mitigate, through risk assessment and management, potential risks associated with oil and gas facilities, processes, and pipelines, including accidents and incidents, particularly in and around other land uses.

(7)

Maximize preparedness for emergency accidents and incidents related to oil and gas development through emergency preparedness and response planning.

(8)

Minimize community impacts including those related to traffic, noise, light pollution, and visual impacts.

(9)

Work with operators to ensure availability of adequate site-specific financial insurance and bonding.

(10)

Use available methods to monitor and inspect oil and gas facilities in all phases of development and operation for the protection of public health, safety, welfare, and the environment.

(11)

Use available methods to enforce the provisions of these regulations.

(c)

The Town recognizes that this Chapter does not supersede or preempt the regulations of the Colorado Energy and Carbon Management Commission or any other state regulations, nor is this Chapter intended to conflict with them.

13.06.020 - General provisions.

(a)

The provisions of this Chapter shall apply to all oil and gas exploration and production operations proposed or existing on or beneath property within the Town limits.

(b)

Oil and gas facilities within Town limits and operational prior to July 18, 2011, shall be considered legal nonconforming uses.

(c)

Where provisions in this Chapter are in conflict with other provisions of this LDO or other applicable regulations, the more restrictive, or that provision that results in the higher standard, shall apply, unless the application of the LDO results in an operational conflict with the state regulation of oil and gas development.

(d)

Exceptions to provisions of this Chapter that are of purely local concern may be granted by the Town Council as part of the approval process of the Use by Special Review only if the applicant demonstrates that the exception or waiver is necessary to prevent waste or protect correlative rights and can provide adequate mitigation measures for the standards waived.

(e)

A Use by Special Review for oil and gas facilities shall become null and void three (3) years after approval of the Use by Special Review if development of the site does not commence.

13.06.030 - Use by Special Review required.

(a)

New oil and gas facilities.

(1)

It shall be unlawful for any person to drill any exploration hole, oil, or gas well, accessory equipment or structure within the corporate limits of the Town, unless a Use by Special Review has been obtained pursuant to this Chapter. A separate Use by Special Review shall be required for each well, production facility or accessory equipment or pumping system that has not been previously issued under this Chapter, except as outlined in Paragraph (a)(4) and Subsection (b) below.

(2)

If more than one well or production facility is proposed at the same time, the applicant may submit one application for multiple wells and facilities; however, a separate fee shall be required for each well or production facility included in the application. The Town will issue a multiple oil and gas operations permit that notes the name and location of each well or production facility.

(3)

Any such permit issued pursuant to this Chapter shall encompass within its authorization the right for the operator, their agent, employee, subcontractor or independent contractor or any other persons to perform that work necessary in the drilling, completion, or maintenance operations.

(4)

Tanks, heaters, separators, and accessories. For the purpose of this Chapter, the installation of tanks, heaters, separators, and other accessory equipment shall be construed as extensions to oil and gas wells and shall accordingly be subject to the same applications, review, regulations, and standards. The application for these accessory uses when intended to be installed at the same time as the oil or gas well may be merged with an application for an oil or gas well Use by Special Review and shall not require an additional permit fee.

(b)

Modification to existing well sites or production facilities.

(1)

When a well, well site or production facility is existing with an approved Use by Special Review use, any twinning, deepening or recompleting of a well and relocation of accessory equipment or gathering lines and transmission lines does not require a new permit, so long as all applicable regulations of this jurisdiction and the state are met, and the operator shall submit a revised site and operating plan to the Town depicting any changes from the approved Use by Special Review. This is an administrative approval and does not require any additional public hearings. Upon receipt of the amended Site Plan and operating plan, the Town shall issue an existing use Site Plan order pursuant to Section 13.06.050.

(2)

If any changes are made to a legal nonconforming well or a well to which an existing use Site Plan order has been issued, i.e.: twinning, deepening, or recompleting of a well, or relocation of accessory equipment or gathering lines and transmission lines occurs, the operator shall apply for a Use by Special Review.

(3)

When a Use by Special Review has been granted for a well, reentry of such well for purposes of sidetracking, deepening, recompleting, reworking, activating, or converting the well shall not require a separate Use by Special Review; provided, however, that such reentry shall be subject to the approval process contained in Subsection (b)(1) above.

(4)

The Use by Special Review is limited to the facilities as shown in the approved plan. To the extent the applicant desires, after initial completion of a well, to place additional equipment on a tank battery or wellhead location that was not shown in the approved plan, the applicant must, except in a situation where additional temporary equipment is necessary for a period of fourteen (14) days or less, notify the Town of installation of such additional equipment by letter and include a Site Plan showing the location of the new equipment. No new Use by Special Review is required.

(c)

Terms and conditions of the Use by Special Review.

(1)

The term of the Use by Special Review shall be coterminous with the state well permit issued by the ECMC. Any extension of the permit granted by the ECMC shall result in an automatic extension of the term of the Town-issued Use by Special Review equal to the extension granted by the ECMC. A permit shall not be required for seismic surveys, unless the drilling of a seismic (shot hole), core or other exploratory hole is involved.

(2)

The Use by Special Review shall automatically expire with the abandonment and reclamation of the associated well.

(3)

The granting of a Use by Special Review shall not relieve the operator or owner of a well, production facility, pipeline or gathering line from otherwise complying with all applicable regulatory requirements of the Town, the state, or the United States.

(4)

Within thirty (30) days after the well is completed and equipped, the applicant shall provide to the Town as-built drawings showing all facilities, pipelines, flow lines and gathering lines that the applicant has placed on the land subject to this permit. These as-built drawings shall be the same as submitted to the ECMC.

(5)

The Use by Special Review and/or existing use Site Plan order required by this Chapter is in addition to any permit that may be required by any other provision of this LDO or by any other governmental agency.

(6)

By acceptance of any Use by Special Review and/or an existing use Site Plan order issued pursuant to this Chapter, the operator or owner of any well, production facility, pipeline or gathering line expressly stipulates and agrees to be bound by and comply with the provisions of this Chapter, and any subsequent amendments shall be deemed to be incorporated. The terms of this Chapter shall be deemed to be incorporated in any Use by Special Review or existing use Site Plan issued pursuant to this Chapter with the same force and effect as if this Chapter was set forth verbatim in such Use by Special Review or existing use Site Plan.

13.06.040 - Use by Special Review process for new oil and gas operations.

(a)

The process for issuing a Use by Special Review shall be the same as for a Use by Special Review for any land use within the Town pursuant to Section 13.03.040(s) as modified by the following steps. Where the terms of this Section 13.06.040 conflict with Section 13.03.040(s), the provisions of this Section shall apply.

(1)

Step 1: Optional preapplication conference. The applicant may attend a preapplication conference with a representative from the Town. The purpose of the meeting is to discuss the Use by Special Review submittal requirements and review process.

(2)

Step 2: Application submittal. The applicant shall comply with the submittal requirements described in the LDO Administrative Manual.

(3)

Step 3: Staff review for completeness. Within a reasonable period of time, Town staff shall either certify that the application is complete and in compliance with all submittal requirements or reject it as incomplete and notify the applicant of any deficiencies. The applicant shall then correct any deficiencies in the application package, if necessary, and resubmit the required number of copies of the amended application to the Town. This is not a substantive review of the application submitted.

(4)

Step 4: Referral agencies notified. Upon receipt of a completed application, the Town shall forward the application to the appropriate referral agencies. The referral information shall include the time and place of the public hearings, the nature of the hearings, the location of the subject property and the applicant's name. At a minimum, the application shall be referred to the South Metro Fire Rescue Authority and CDOT.

(5)

Step 5: Staff review and comments. Town staff shall review the application for compliance with this Chapter and all other applicable federal, state and Town regulations and standards. A summary of this review, including referral comments, shall be sent to the applicant.

(6)

Step 6: Applicant response. The applicant shall address all of the Town staff comments and any referral agency comments, then submit the following to the Town:

a.

A letter explaining how all of the comments have been addressed; and

b.

Revised maps and other documents, as necessary.

(7)

Step 7: Public hearings scheduled and notification process. The applicant shall satisfy the public notice requirements contained in Section 13.03.030(g), and shall also post notice of the hearing on each street adjacent to the property involved for a period of at least fifteen (15) continuous days prior to the date of the hearings. An affidavit of posting signed by the applicant shall constitute prima facie evidence of fulfillment of the required posting. The expense of such posting and affidavit shall be paid by the applicant. Signs shall be removed within five (5) days after the close of the hearing.

(8)

Step 8: Final staff review and report to Planning Commission. Town staff will complete a final review of the resubmitted materials and then prepare a report to the Planning Commission explaining how the application is or is not consistent with the review criteria and applicable Town ordinances, regulations, and standards.

(9)

Step 9: Review by Planning Commission.

a.

Criteria for review. At a public hearing, the Planning Commission shall review the application for Use by Special Review for compliance with the following criteria:

1.

The Site Plans for a facility application comply with the requirements described in the LDO Administrative Manual.

2.

The transportation routes for a facility application comply with the requirements described in the LDO Administrative Manual.

3.

The written narrative for a facility application complies with the requirements described in the LDO Administrative Manual.

4.

No oil and gas location containing an oil or gas well, as such terms are defined in Section 13.02.020, shall be located any closer than two thousand (2,000) feet from the nearest parcel lot line for any of the following uses: athletic field, amphitheater, auditorium, childcare facility, correctional facility, dwelling unit, event center, hospital, life care institution, nursing home or nursing facility, recreational facility, school or school facility, or undeveloped residential lot.

5.

All plans have been submitted in compliance with the LDO Administrative Manual and this Chapter.

6.

The application complies with all applicable ECMC, AQCC, EPA, CDPHE, and local laws and regulations, including Sections 13.06.030 through 13.06.170.

7.

The application complies with all other site-specific requirements as determined necessary by the Town that are not in operational conflict and are otherwise consistent with applicable law.

8.

Noise. The facility shall, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, minimize noise and noise impacts to surrounding land uses. The application shall acknowledge the requirements in Section 13.06.150 for noise control and shall indicate how compliance will be achieved.

9.

Light and dust. The facility shall, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, minimize dust and light pollution.

10.

Air quality. The construction and operation of any oil and gas facility shall avoid causing degradation to air quality. To the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, the installation and operation of any oil and gas facility shall eliminate, capture, or minimize all potentially harmful emissions, minimize dust associated with onsite activities and traffic, and demonstrate how the operator will prevent and mitigate gas leaks and air emissions.

11.

Emergency preparedness and response. Oil and gas operations shall avoid risks of emergency situations such as explosions, fires, gas, oil or water pipeline leaks, ruptures, hydrogen sulfide or other toxic gas or fluid emissions, and hazardous material vehicle accidents or spills. Oil and gas operations shall ensure that, in the event of an emergency, adequate practices and procedures are in place to protect public health and safety and repair damage caused by emergencies. The application shall acknowledge the requirements in Section 13.06.090 for emergency inspections and emergency response and shall indicate how compliance will be achieved, including submitting emergency response and fire protection plans that are mutually acceptable to the applicant and the South Metro Fire Rescue Authority and the Parker Police Department. Such plans shall include a list of local telephone numbers of public and private entities and individuals to be notified in the event of an emergency, the location of the well and provisions for access by emergency response entities.

12.

A weed control plan that to the maximum extent possible, and to prevent adverse impacts to the environment, avoids causing degradation to vegetation.

13.

Adequate water supply. Development applications for proposed oil and gas facilities shall demonstrate that the available water supply is the least detrimental to the environment among the available sources and adequate to meet the needs of the development. Approval may be conditioned upon sufficient proof of adequate water supply.

14.

Water quality. Oil and gas facilities shall, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment avoid causing degradation to surface or ground waters within the Town.

15.

Grading, drainage, and erosion. To the maximum extent possible, and to prevent adverse impacts to the environment, oil and gas facilities shall not cause significant erosion or sedimentation and shall be conducted in accord with the grading, drainage, and erosion control plan.

16.

Risk management plan that anticipates potential risks associated with oil and gas development, particularly in and around land uses, and maintains appropriate safety management plan and emergency response and preparedness plans in place.

17.

Abandoned wells plan that, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, minimizes risks associated with abandoned wells.

18.

Wetlands protection. Oil and gas facilities shall, to the maximum extent possible, and to prevent adverse impacts to the environment, avoid causing degradation to wetlands within Town of Parker. Among other methods to achieve compliance with this standard, the proposed oil and gas facility shall not alter historic drainage patterns or flow rates or shall include acceptable mitigation measures to compensate for anticipated drainage impacts.

19.

Cultural and historic resources. Oil and gas facilities shall avoid causing degradation of cultural or historic or archaeological resources, sites eligible for Town designation as an historical landmark, or sites in the National Historic Register. Operator shall have approval from the State Historic Preservation Office detailing required protection and mitigation measures to be implemented to preserve any historical or cultural resources potentially affected by the proposed facility, and to provide a copy of such approval to the Town, in consultation with the surface owner and subject to any confidentiality requirements.

20.

Floodplains and floodways. Facilities and equipment are prohibited in floodways, as defined by the Federal Emergency Management Agency. Facilities and equipment shall not be located in the 100-year floodplain unless all alternate locations outside of the floodplain that allow for extraction or transportation of the resource are more detrimental to health, safety, welfare, or the environment than the proposed location in the floodplain. All above-ground oil and gas facilities approved in a floodplain shall comply with the flood protection measures found in Section 13.08.040(a). Tanks in the 500-year floodplain also require flood protection measures.

21.

Geologic hazard areas other than floodplains and floodways. To the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, oil and gas facilities shall not be located in geologic hazard areas.

22.

Land disturbance. The installation and operation of any oil and gas facility shall, to the maximum extent possible, and to prevent adverse impacts to the environment, avoid causing degradation to the surface of the property used for the oil and gas facility. Considerations for application of this standard include, but are not limited to, the natural topography and existing vegetation, unnecessary or excessive site disturbance, and minimization of the amount of cut and fill.

23.

Natural resources. The installation and operation of any oil and gas facility, pipeline, workover site, or oil and gas access road shall, to the maximum extent, avoid causing degradation to the environment and wildlife including wetlands; floodplain; ponds; creeks, streams and drainageways; migratory birds and raptors; prairie dogs; burrowing owls; state and federal threatened and endangered species for both flora and fauna; any other applicable wildlife concerns including den sites for mammals, like coyotes and foxes; fish and other aquatic life; wildlife corridors; significant habitat; natural landmarks and prominent natural features such as distinctive rocks, outcroppings, and landforms; vegetation including grasses, shrubs, and trees; and visual or scenic resources as identified in the Parker 2035 Master Plan; Open Space, Trails, and Greenways Master Plan; Parks, Recreation, and Open Space Master Plan; or other Town-owned open spaces.

24.

Odor. Oil and gas facilities shall comply with Colorado Department of Public Health and Environment, Air Quality Control Commission, Regulation No. 2 Odor Emissions, 5 CCR 1001-4, Regulation No. 3, 5 CCR 1001-5, and Regulation No. 7, 5 CCR 1001-9 Sections VII and VIII. The operator shall notify the Town Administrator or the Town Administrator's designee no later than twenty-four (24) hours after receiving an odor complaint. Odor emitting from sites shall be controlled. Operator to prevent odors from oil and gas facilities from affecting the health and welfare of the public by proactively addressing and, to the fullest extent, resolving complaints filed by impacted members of the community, in coordination with Town of Parker staff.

25.

Recreational activity. Oil and gas facilities shall, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, avoid causing degradation to the quality and quantity of recreational activities in the Town. Considerations for application of this standard include, but are not limited to, designated environmental resources, trails, and recreational uses, as identified in any of Parker's Master Plans and guiding documents or identifiable on or near the site.

26.

Scenic attributes and character. Oil and gas facilities shall, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, avoid causing degradation to the scenic attributes and character of the area.

27.

Surrounding buildings. Oil and gas facilities shall be, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, sited and operated in a manner so that the facility is compatible with surrounding buildings. In applying this standard, separation from surrounding buildings shall be considered the most effective measure to ensure compatibility between proposed oil and gas facilities and existing buildings. Considerations for application of this standard may also include, but are not limited to, impacts on used or occupied structures; the natural topography and existing vegetation; the location of surrounding buildings, prevailing weather patterns, including wind directions and hilltops, ridges, slopes, and silhouetting.

28.

Transportation, roads, and access. Oil and gas facilities shall, to the maximum extent possible, and to prevent adverse impacts to public health, safety and welfare, and the environment, be designed and implemented to minimize or mitigate impacts to physical infrastructure of the Town transportation system, ensure public safety, and maintain quality of life for other users of the Town transportation system, adjacent residents, and affected property owners. Where available, existing private roads shall be used to minimize land disturbance unless traffic safety, visual concerns, noise concerns, or other adverse surface impacts dictate otherwise. Operator shall fund infrastructure improvements required to support extraction activities and pay for significant degradation caused by operations and the resulting cost of repairs. Operator shall comply with hazardous material regulations and obtain adequate insurance for exposure related to potential truck accidents. The application shall acknowledge the requirements in Section 13.06.120 for access roads shall indicate how compliance will be achieved.

b.

Waste management plan. Operator shall recycle drilling, completion, flowback and produced fluids to the maximum extent possible. Waste shall be stored in tanks, transported by tanker trucks and/or pipelines and disposed of at licensed disposal or recycling sites. No disposal of wastewater shall be allowed within the Town. Operator shall include sanitary facilities that comply with ECMC regulations.

c.

Conditions of approval. The Planning Commission may recommend, as a condition of approval of a Use by Special Review, any conditions necessary to improve or modify the Site Plan; any conditions necessary to ensure that any negative impacts of the proposed oil and gas operation are eliminated or mitigated; or may impose conditions related to the surface use so long as said conditions do not create an operational conflict with the state's authority to regulate oil and gas development. The Planning Commission shall cause its recommendations to be forwarded to the Town Council.

(10)

Step 10: Review by the Town Council.

a.

A public hearing on the requested Use by Special Review shall be held by the Town Council at a regular or special meeting of the Council. Notice of the public hearing shall be published by posting and by publication as provided by Section 13.03.030(g). Notice shall be given to the Town's service providers, the county, special districts, and referral agencies as deemed appropriate by the Town.

b.

The Town Council shall consider evidence presented in the application and at the public hearing and any recommendations of the Planning Commission, if applicable. Following the conclusion of the public hearing, the Town Council shall, by written resolution, render its decision to approve, deny or conditionally approve the application according to the application's compliance with the criteria in paragraph (a)(11)a. above, or it may take the matter under advisement until an announced date certain, not to exceed thirty (30) days from the date of the hearing, at which time it shall render its decision by written resolution. The written resolution shall be prepared by the Town Attorney and shall set forth the findings of the Town Council.

c.

In the event that an application is granted with conditions, the applicant may, within fifteen (15) days of the Town Council's decision, request a rehearing by petitioning for the same to the Town Clerk. The purpose of the rehearing is to afford the applicant the opportunity to demonstrate that removal or modification of one or more of the conditions is necessary to prevent waste or protect owners of correlative rights in a common source to a fair share of production profits or that the decision is otherwise inconsistent with state laws and regulations. Following the conclusion of the rehearing, the Town Council may, by written resolution, render its decision on the application, or it may take the matter under advisement until an announced date certain, not to exceed thirty (30) days from the date of the rehearing, at which time it shall render its decision by written resolution. The written resolution shall be prepared by the Town Attorney, shall set forth the findings of the Town Council and shall confirm, modify, or repeal the conditions contested by the applicant.

d.

For the purposes of judicial review, the Town Council's final action or decision on an application shall be deemed to have been made as of the date upon which the Town Council approves the written resolution, which shall constitute the final decision of the Town Council.

13.06.050 - Existing use Site Plan order for preexisting wells.

An existing use Site Plan order shall be issued administratively by the Town within twenty-one (21) days following the receipt of the required application material that conforms to the requirements of Section 13.06.040 above, unless a longer time period is required, as determined by the Town.

13.06.060 - Use by Special Review order.

Prior to commencement of operations for which a Use by Special Review has been approved, a Use by Special Review order shall be obtained from the Town. The Town shall issue the Use by Special Review order within a reasonable time upon receipt of the following:

(a)

A copy of the resolution of the Town Council approving a Use by Special Review;

(b)

Proof of compliance with any conditions placed in the resolution of the Town Council approving a Use by Special Review;

(c)

A copy of the approved Site Plan;

(d)

A copy of an approved oversized or overweight vehicle or load permit issued by the Town pursuant to Section 13.06.130, if applicable;

(e)

Copies of any necessary state or federal permits issued for the operation if not previously submitted; and

(f)

Copies of all ECMC permits.

13.06.070 - Contact information.

The purpose of this Section 13.06.070 is to ensure that the Town has the correct contact information in case of an emergency, Code violation or security concern.

(a)

Service of notice. As required by the ECMC, every operator shall designate an agent who is a resident of the state upon whom all orders and notices provided in this Chapter may be served and shall specify in writing a mailing address for such agent. Every operator so designating such agent shall, within ten (10) calendar days, notify the Town in writing of any change in such agent or such mailing address, unless operations in the Town are discontinued. The Town may serve any notice provided in this Chapter upon the operator by mailing the same, postage prepaid, to the operator's designated agent at their designated address. Service shall be complete upon such mailing. The operator shall give the Town written notice of any change in the designated agent or their contact information.

(b)

Transfer of operator or new operator. As required by ECMC, the operator shall notify the Town, in writing, of any sale, assignment, transfer, conveyance or exchange by said operator of a well's property and equipment within ten (10) calendar days after such sale, assignment, transfer, conveyance or exchange. The notice shall provide a map indicating the location of the properties and equipment involved in the transaction.

13.06.080 - Security inspections and security fee.

(a)

The Town Council finds that oil and/or gas well sites and their associated infrastructure create special and unique issues, which the Town is required to address to protect the safety of residents, and, therefore, it is reasonable to assess an annual security inspection fee, as set forth in this Section 13.06.080.

(b)

The Town Council hereby establishes an annual security inspection fee due to the Town for all oil and/or gas well sites that are not classified as shut-in by the Planning Commission and are presently located within the corporate limits of the Town. This annual fee shall be payable in advance on or before the 31st day of January each year thereafter. The fee for this annual security inspection shall be established by the Town Manager or the Town Manager's designee.

(c)

Failure of any owner of an oil and/or gas well to make payment of this fee by January 31 of each calendar year shall subject the owner to a fifteen (15) percent administrative surcharge fee. Interest on the unpaid fee shall be one (1) percent per month for each month that this fee remains unpaid. In the event litigation is deemed necessary and appropriate by the Town in order to collect this fee, the Town shall be entitled to its reasonable attorneys' fees and costs.

13.06.090 - Emergency inspections and emergency responses.

The applicant for a Use by Special Review or existing use Site Plan order shall provide the telephone number of a contact person who may be reached twenty-four (24) hours a day for purposes of being notified of any proposed Town emergency inspection under this Section 13.06.090. Any site for which a Use by Special Review or existing use Site Plan order has been granted may be inspected by the Town at any time, to ensure compliance with the requirements of the approved Use by Special Review or existing use Site Plan order or to address any emergencies that may arise. By accepting an approved Use by Special Review or existing use Site Plan order, the applicant grants its consent to such emergency inspections. The operator shall reimburse the Town or the applicable fire district for any emergency response costs incurred by the Town or the South Metro Fire Rescue Authority in connection with activity at the well site or production site, except that the operator shall not be required to pay for emergency response costs where the response was precipitated by the mistake of the Town.

13.06.100 - Building and Grading Permits.

In addition to any other requirements of this Chapter, Building Permits must be obtained for all above-ground structures to which the applicable Town Building Codes apply as provided by Title 11, Building and Construction, of the Parker Municipal Code. Grading Permits must be obtained for site grading as provided by Chapter 11.10, Grading and Earth Movement, of the Parker Municipal Code.

13.06.110 - Use tax.

All operators must conform to applicable provisions of this LDO relating to taxation.

13.06.120 - Access roads.

All private roads used to provide access to the tank batteries or the well site shall be improved and maintained according to the following standards:

(a)

Tank battery access roads. Access roads to tank batteries shall conform to the following minimum standards:

(1)

A graded gravel roadway having a prepared subgrade and an aggregate base course surface a minimum of six (6) inches thick, compacted to a minimum density of ninety-five (95) percent of the maximum density as determined pursuant to generally accepted engineering sampling and testing procedures. The aggregate material, at a minimum, shall meet the requirements for Class 3, aggregate base course as specified for aggregate base course materials in the CDOT's Standard Specifications for Road and Bridge Construction, latest edition.

(2)

The access roadway shall be graded so as to provide drainage from the roadway surface and constructed to allow for cross-drainage of waterways (such as roadside swales, gulches, rivers, creeks and the like) by means of an adequate culvert pipe. Adequacy of the pipe is subject to approval of the Director of Engineering/Public Works and pursuant to Section 13.08.050(d)(1).

(3)

The access roadway shall be maintained so as to provide a passable roadway free of ruts and dust at all times.

(4)

Access roadways serving special hazards, or where a structure is located, shall require that all access roads comply with the requirements of the current adopted edition of the International Fire Code, Chapter 5 and Appendix D.

(5)

The access roadway intersecting a municipal street or roadway shall be hard surfaced at least from the municipal street to the right-of-way line. Vehicles using the access roadway shall not track mud or other debris onto municipal streets from the access road.

(6)

Reclamation of the access roadway shall commence within one (1) month of the roadway being abandoned and shall conform to all applicable ECMC rules and regulations regarding site reclamation and Section 13.08.050(c)(1), Storm drainage and environmental criteria manual, and Chapter 11.10, Grading and Earth Movement of the Parker Municipal Code.

(b)

Wellhead access roads. Access roads to wellheads shall conform to the following minimum standards:

(1)

A graded dirt roadway compacted to a minimum density of ninety-five (95) percent of the maximum density as determined pursuant to generally accepted engineering sampling and testing procedures and approved by the Town.

(2)

The access roadway shall be graded so as to provide drainage from the roadway surface and constructed to allow for cross-drainage of waterways by means of an adequate culvert pipe. Adequacy of the pipe shall be subject to approval by the Town and pursuant to Section 13.08.050(c)(1).

(3)

The access roadway shall be maintained so as to provide a passable roadway free of ruts and dust at all times.

(4)

Access roadways serving special hazards, or where a structure is located, shall require that all access roads comply with the requirements of the current adopted edition of the International Fire Code, Chapter 5 and Appendix D.

(5)

An access roadway intersecting a municipal street or roadway shall be hard surfaced at least from the municipal street to the right-of-way line and shall be subject to the requirements contained in Chapters 10.01, Streets and Sidewalks and 10.09, Public Rights-of-Way Construction, Excavation, and Work, of the Parker Municipal Code. Vehicles using the access roadway shall not track mud or other debris onto municipal streets from the access road.

(6)

Reclamation of the access roadway shall commence within one (1) month of the roadway being abandoned and shall conform to all applicable ECMC rules and regulations regarding site reclamation and Section 13.08.050(c)(1), Storm drainage and environmental criteria manual, and Chapter 11.10, Grading and Earth Movement, of the Parker Municipal Code.

13.06.130 - Oversized or overweight vehicle or load permit.

An oversized or overweight vehicle or load permit shall be required for all oversized or overweight vehicles or loads as defined in Sections 42-4-501 through 42-4-511, C.R.S., that use Town streets and shall be subject to the requirements contained in Section 7.01.060, Safety standards and specifications, of the Parker Municipal Code. Said permit, if required, shall be obtained from the Town prior to such use. The applicant shall comply with all Town and state regulations regarding weight limitations on streets within the Town, and the applicant shall minimize oversized or overweight vehicle traffic on streets within the Town.

13.06.140 - Fencing requirements.

(a)

At the time of initial installation, or upon the issuance of an existing use Site Plan order, fencing is required for all pumps, wellheads and production facilities that are within an approved subdivision or within one thousand (1,000) feet of an existing public road or existing structure or if a well site falls within a high-density area as defined by the ECMC. All pumps, pits, wellheads, and production facilities shall be adequately fenced to restrict access by unauthorized persons. For security purposes, all such facilities and equipment used in the operation of a completed well shall be surrounded by a fence six (6) feet in height, and so long as the material is noncombustible and allows for adequate ventilation, the gates shall be locked.

(b)

The following specific standards shall apply to all oil and gas wells and production facilities.

(1)

Fence enclosures shall be constructed of one of the following materials:

a.

A solid masonry wall;

b.

A chain-link fence with wire mesh and openings not exceeding three and one-half (3½) inches; or

c.

Any other material compatible with surrounding uses that effectively secures the oil operation site, approved by the Town.

(2)

All fencing or masonry walls shall be of a solid neutral color compatible with surrounding uses and maintained in a neat, orderly, and secure condition. Neutral colors shall include sand, grey and unobtrusive shades of green, blue, and brown or other colors approved by the Town.

(3)

All chain-link fences and masonry walls shall be equipped with at least one (1) gate. The gate shall meet the following specifications:

a.

The gates shall be of chain-link construction that meets the applicable specifications or of other approved material that, for safety reasons, shall be at least as secure as a chain-link fence;

b.

The gates shall be provided with a combination catch and locking attachment device for a padlock and shall be kept locked except when being used for access to the site; and

c.

The operator must provide the South Metro Fire Rescue Authority and the Parker Police Department with a "Knox Padlock" or "Knox Box with a key" to access the well site, to be used only in case of an emergency.

13.06.150 - Noise.

(a)

At a minimum, any equipment used in drilling, completion, or production of a well must comply with the maximum permissible noise levels set forth at Section 25-12-103, C.R.S.

(b)

Where a facility does not comply with the required setback or other portions of the standards in this Chapter, additional noise mitigation may be required. In determining noise mitigation, specific site characteristics shall be considered, including, but not limited to, the following:

(1)

Nature and proximity of adjacent development (design, location, type);

(2)

Prevailing weather patterns, including wind directions;

(3)

Vegetative cover on or adjacent to the site; and/or

(4)

Topography.

(c)

Based upon the specific site characteristics set forth in this Section 13.06.150, the nature of the proposed activity and its proximity to surrounding development and type and intensity of the noise emitted, additional noise abatement measures above and beyond those required by ECMC may be required. The level of required mitigation may increase with the proximity of the facility to existing residences and platted subdivision lots and/or the level of noise emitted by the facility. One or more of the following additional noise abatement measures may be required:

(1)

Acoustically insulated housing or covers enclosing any motor or engine;

(2)

Screening of the site or noise-emitting equipment by fence or landscaping;

(3)

Solid wall or fence of acoustically insulating material surrounding all or part of the facility;

(4)

A noise management plan specifying the hours of maximum noise and the type, frequency, and level of noise to be emitted; and/or

(5)

Construction of buildings or other enclosures may be required where facilities create noise and visual impacts that cannot otherwise be mitigated because of proximity, density and/or intensity of adjacent land use.

13.06.160 - Abandonment and plugging of wells and reclamation.

(a)

The operator shall comply with all ECMC rules with respect to abandonment and plugging of wells.

(b)

The operator shall at all times keep all access roads, well sites and other areas used for its purposes, free from weeds, debris and litter and shall properly maintain such areas as provided by Chapter 6.01, Nuisances, of the Parker Municipal Code; Chapter 11.10, Grading and Earth Movement, of the Parker Municipal Code; and Section 13.08.050(c)(1), Storm drainage and environmental criteria manual, and the operator shall minimize interference with a surface owners' normal use of contiguous lands caused by weeds, debris and litter.

(c)

Operators of wells that are to be abandoned upon the completion of drilling and not be put into production shall notify the South Metro Fire Rescue Authority not less than two (2) hours prior to commencing plugging operations.

(d)

Operators of formerly producing wells shall notify the South Metro Fire Rescue Authority not less than two (2) working days prior to removing production equipment or commencing plugging operations.

(e)

The operator shall provide summary documentation from the ECMC plugging and abandonment reports to the Town at the same time they are filed with the ECMC.

(f)

The operator shall notify the Town as to whether or not the flow lines have been abandoned.

(g)

Reclamation of the site shall commence within one (1) month of the wellbeing abandoned and plugged and shall conform to all applicable ECMC rules and regulations regarding site reclamation and Section 13.08.050(c)(1) Storm drainage and environmental criteria manual, and Chapter 11.10, Grading and Earth Movement, of the Parker Municipal Code.

13.06.170 - Violation and enforcement.

(a)

Unlawful to construct or install unapproved oil and gas facilities. Except as otherwise provided in this Chapter, it is unlawful to construct, install or cause to be constructed or installed any oil and gas well or production facility within the Town, unless approval of a Use by Special Review has been granted by the Town Council. The unlawful drilling or redrilling of any well or the production therefrom is a violation of this Chapter.

(b)

Approvals required. It is unlawful to fail to obtain a Use by Special Review or existing use Site Plan order where one is required pursuant to this Chapter.

(c)

Inaccurate information. Unlawful to provide false, misleading, deceptive, or inaccurate information and/or documentation in an application for a Use by Special Review or existing use Site Plan order. Except as otherwise provided in this Chapter, it is unlawful for the applicant to provide information and/or documentation upon which the approval of a Use by Special Review was based, that the applicant, its agents, servants, or employees knew or reasonably should have known was materially false, misleading, deceptive or inaccurate.

(d)

Penalty. Any person convicted of a violation of any of the acts enumerated in Subsections (a), (b) and (c) above, or who commits any act or omission in violation of any provision of this Chapter, or of the conditions and requirements of the Use by Special Review, which acts are not addressed by the Colorado Oil and Gas Commission fine schedule, may be punished by a fine of not more than one thousand dollars ($1,000.00). Each day of such unlawful operation constitutes a separate violation.

(e)

Civil action. In case any well, production facility, building or structure is, or is proposed to be, erected, constructed, reconstructed, maintained, altered or used, or any land is, or is proposed to be, used in violation of any provision of this Chapter or the conditions and requirements of the Use by Special Review or any existing use Site Plan order, the Town Attorney, in addition to the other remedies provided by law, ordinance or resolution, may institute an injunction, mandamus, abatement or other appropriate action or proceeding to prevent, enjoin, abate or remove such unlawful erection, construction, reconstruction, maintenance, alteration or use.

(f)

Recovery of fees. Should the Town prevail in any action for legal or equitable relief for a violation of the provisions of this Chapter, in addition to any other penalties or remedies that may be available, the Town shall be entitled to recover any damages, costs of action, expert witness fees and reasonable attorneys' fees incurred.