San Miguel County Unincorporated
City Zoning Code

SECTION 5

26: - OIL AND GAS EXPLORATION & DEVELOPMENT

5-2601 - Authority of Section

In addition to those authorities set forth in Land Use Code Section 1-601, this section is authorized by C.R.S. §§ 29-20-101 et seq., 30-28-101 et seq., and Senate Bill 94-177 in which Section 1 states: "The general assembly declares that the purpose of this act is to address the regulatory and enforcement authority of the Colorado oil and gas conservation commission and that nothing in this act shall be construed to affect the existing land use authority of local government entities".

5-2601A.

Purpose of Section

This section is enacted to protect and promote the health, safety, prosperity, and general welfare of the present and future residents and property owners of San Miguel County. San Miguel County's intent by enacting this section is to provide for the development of oil and gas resources within the unincorporated area of San Miguel County while mitigating potential land use conflicts between such development and existing, as well as planned, land uses and the natural environment. San Miguel County recognizes that under state law the surface and mineral estates are separate and distinct interests in land and that one may be severed from the other. Owners of severed subsurface mineral interests have certain legal rights and privileges, including the right to use that part of the surface estate as is reasonable and necessary to extract and develop their subsurface mineral interests underlying the surface estate, with due regard to the rights and interests of the surface owner, and subject to compliance with the provisions of this section and any other applicable statutory, regulatory and other applicable legal requirements. This right to the reasonable and necessary use of a portion of the surface does not include the right to unreasonably, unnecessarily, and/or negligently destroy, interfere with or damage the surface owner's correlative rights to the surface. Similarly, owners of the surface estate have certain legal rights and privileges, including the right to have the development of the underlying mineral estate, which includes access, exploration, and drilling, occur in a reasonable and non-negligent manner, and to have adverse land use impacts upon their property, associated with the development of the mineral estate mitigated, including mitigation required by this section. Should it be established by competent evidence that a proposed oil and gas facility cannot be operated in compliance with this section, County land use approval for such a facility may be denied.

In addition, while this section provides standards for development review of the surface aspects of Oil & Gas Development, consistent with applicable state and federal standards, San Miguel County encourages the use of directional drilling, the placement of multiple wells on a single site, the use of evaporation pits rather than water injection stations, and other innovative techniques, and provides for the supplemental use of the Bureau of Land Management "Gold Book" (Surface Operating Standards for Oil and Gas Exploration and Development) the Fourth Edition, 2006 or the most current edition, and the "Gunnison Sage-grouse Rangewide Conservation Plan" and the "San Miguel Basin Gunnison Sage-grouse Conservation Plan" as guidance for the land use development review process and the required mitigation of potential impacts. San Miguel County encourages the avoidance of critical wildlife habitat areas, wetland areas, floodplains and geohazard areas. The County also encourages the applicant to provide and operate subject to a Fieldwide Development Plan in order to reduce and minimize potential impacts associated with developing Oil and Gas Wells and Facilities.

San Miguel County discourages activities that include the use of toxic or carcinogenic chemicals during Fracturing and Cavitation of Wells that may adversely affect the quantity, quality or accessibility of the County's underground sources of drinking water.

5-2601B.

Jurisdiction

This section shall apply to lands within the unincorporated area of San Miguel County, specifically those lands where the surface estate is privately owned or the land is held in Trust by the State Land Board or other non-federal governmental entity, such as lands owned by municipalities, special district, water enterprises, public open space or parks, etc., regardless of the underlying zone district. This section does not apply to lands where both the surface and the underlying mineral estate are under federal ownership or to oil and gas drilling activities over which San Miguel County's jurisdiction is preempted by federal or state law.

This section of the Land Use Code, Section 5-26, supersedes all other provisions of the Land Use Code pertaining to Oil and Gas Exploration, Development, and Facilities, except as otherwise specifically provided herein. Minor Facility Oil and Gas Development on Federal Lands (see Land Use Code Section 5-11 Conditional Uses on Federal Lands) is exempt from Section 5-26 Oil and Gas Exploration and Development. Major Facility Oil and Gas Development on Federal Lands is exempt from Section 5-26 but is subject to Section 5-11 standards for Conditional Uses on Federal Lands.

5-2601C.

Use of Term "County"

The use of the term "County" may mean Board of Commissioners (BOCC), Planning Commission, Planning Department, Planning Director, Colorado Oil and Gas Conservation Commission Local Government Designee (appointed by BOCC), County Road Superintendent, County Sheriff's Office, County Weed Advisor, or the County Environmental Health Director.

5-2601D.

Definitions of Minor Facility and Major Facility

Minor Oil and Gas Facilities ("Minor Facility") (See Section 5-2603 for Submission Requirements and Review Standards)

An individual well site or multiple well sites on a single pad built and/or operated to explore for or produce petroleum and/or natural gas (methane), or water injection stations and associated facilities used by a single operator servicing a single oil and gas field in conformance with a permit issued by the Colorado Oil and Gas Conservation Commission, including auxiliary equipment required for such production, i.e., separators, dehydrators, pumping units, tank batteries, and other equipment located within the perimeter of the well site pad, employing engines or motors with a cumulative horsepower rating of less than two hundred (200) hp, provided it complies with all applicable standards and requirements. If the well pad exceeds eight (8) acres in size, consideration shall be given to processing the development as a Major Facility unless it's determined the cumulative impacts will be less than those associated with an additional well pad, based upon Planning Staff's evaluation of the probable cumulative impacts associated with the Facility. This definition of a Minor Facility does not supersede the requirements of Section 5-2603 G that the well pad be the minimum size necessary to provide a safe work area and minimize surface disturbance.

Gas gathering lines, flowlines and water collection lines serving oil and gas facilities, including trunk and lateral lines, shall not be subject to the setback standards required for such facilities, but shall comply with other applicable standards in this section.

Facilities associated with gas gathering lines and water collection lines, such as: drip stations, vent stations, pigging facilities, chemical injection stations, transfer pump stations and valve box, where such equipment or facilities employ engines or motors with a cumulative horsepower rating of less than two hundred (200) hp, which comply with all applicable standards and requirements in this section.

An individual well head compression and multiple well compression facility powered by motors or engines with a cumulative horsepower rating of less than two hundred (200) hp, which complies with all applicable standards and requirements in this section.

Storage yards or construction staging areas occupying one (1) acre or less, and which comply with all applicable standards.

Geophysical (Seismic) and Gas Exploration Operations to include, but not limited, to seismic activities.

II.

Major Oil and Gas Facilities (Major Facility) (See Section 5-2604 Submission Requirements and Review Standards)

Any facility related to the production of oil and/or gas, including compressor stations and associated facilities which serve a single well or multiple wells employing engines and/or motors with a cumulative horsepower rating of two hundred (200) hp or more.

Water injection stations and associated facilities serving more than one (1) operator or more than one (1) oil or gas field.

Storage yards and construction staging yards that occupy an area of one (1) or more acres.

Gas treating facilities that serve multiple wells or gathering systems.

Pipelines for which the power of eminent domain is available.

5-2601E.

Applicability

This section is intended to apply in all Zone Districts of the County, including Wright's Mesa (WM) and the West End (WE), and would supersede all other provisions of the Land Use Code pertaining to oil and gas development except as specifically provided for in this section.

5-2602 - General Standards for Minor and Major Facility Applications

5-2602A.

Fee Schedule

See applicable Board of Commissioner Resolution for Fee Schedule.

5-2602B.

Consolidated Applications

In addition to reviewing an application for either a Minor or Major Facility, the applicant shall be entitled to have processed simultaneously any necessary building, access, wetland, or floodplain permits. Additional permit reviews for Minor Facilities may be processed through an Administrative Review subject to the applicable Land Use Code standards. Additional permit reviews for Major Facilities shall be processed through a One-Step or Two-Step review as appropriate subject to the applicable Land Use Code standards. The approval of a Special Use Permit by the Board of County Commissioners is not a site-specific development plan approval and does not result in the vesting of development rights, nor does it permit the violation of any County or State regulations or preclude San Miguel County Building Official, Planning Director, Local Government Designee, or Road and Bridge Superintendent from refusing to issue a permit if the plans and specifications do not comply with applicable County regulations.

5-2602C.

Inspections

The applicant 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 County inspection under this section or in case of emergency. Any site under an approved Major or Minor Permit may be inspected by San Miguel County at any time, to ensure compliance with the requirements of the approved development plan, provided that at least one (1) hour's prior notice is given to the contact person at the telephone number supplied by the applicant. Field inspections by County staff may include testing for contaminated soils. Persons performing such field inspections for the County shall be deemed licensees for liability purposes pursuant to C.R.S. Section 13-21-115. Calling the number (or leaving a message on an available answering machine or voice mail service at the number) at least one (1) hour in advance of the proposed inspection shall constitute sufficient prior notice if the contact person does not answer. By accepting an approved Major or Minor Facility Permit, the applicant grants its consent to such inspections.

5-2602D.

Enforcement

In addition to any other remedy authorized under this Resolution to enforce the provisions of this section, the Planning Director or Local Government Designee shall be entitled to draw on any financial guarantee provided to San Miguel County by an applicant pursuant to this section if the applicant violates any term or condition of an approved development plan and/or approval. If the Planning Director or Local Government Designee has reason to believe that a violation of an approved development plan for which a financial guarantee has been provided has occurred, the Planning Director or Local Government Designee shall provide written notice to the applicant describing the violation, stating that the violation must be corrected within fourteen (14) days unless due to the nature of the violation more time is required. If, within that time period, the applicant has not either corrected the violation or filed a written appeal with the Board of County Commissioners, the Planning Director or Local Government Designee shall be entitled to enter upon the site to take any reasonable measures to correct the violation, and may draw on the financial guarantee to cover the costs of corrective measures.

If the applicant files a written appeal with the Board of County Commissioners within fourteen (14) days, upon receipt of this written notice, the Board shall schedule a hearing on the appeal at the soonest possible time of which the applicant shall receive reasonable prior notice, a minimum of seventy-two (72) hours or three (3) working days' notice. If the Board determines based on competent evidence at the hearing that the violation has occurred and has not been corrected, the Board in its discretion may give the applicant additional time to correct the violation or may specify the time at which the Planning Director or Local Government Designee may take appropriate action to have the violation corrected and draw on the financial guarantee to cover the costs of corrective measures.

To ensure the County's ability to enforce the provisions of any approved development plan, the Planning Director or Local Government Designee shall not release any financial guarantee provided under this section until the Planning Director or Local Government Designee confirms that all operations for which the bond has been secured have been completed and all applicable provisions of the Development Permit or Special Use Permit have been complied with. The Planning Director or Local Government Designee shall not release any blanket bond or other blanket financial guarantee provided under this section unless he/she is satisfied that the person providing the bond has adequately declared its intention to conduct no further oil and gas operations in San Miguel County in the foreseeable future. The Planning Director or Local Government Designee shall also be empowered to release a financial guarantee if a successor to an operator provides satisfactory guarantees in accordance with this section.

5-2602E.

Liability Insurance

For any Facility permitted under this section, the applicant shall submit a certificate of insurance to San Miguel County Planning Department, showing that a policy of comprehensive general liability insurance or a self-insurance program approved by the Colorado Insurance Commissioner, in the amount of no less than five hundred thousand dollars ($500,000.00) per occurrence, insuring the applicant against all claims or causes of action made against the applicant for damages arising out of the drilling, maintenance, operation or other work done with respect to such proposed facilities. The policy shall be written by a company authorized to do business in the state, unless the applicant is self-insured. The certificate shall require at least thirty (30) days' notice to San Miguel County prior to termination of coverage for any reason. If the insurance policy lapses or becomes void for any reason whatsoever, the approval shall cease to be valid until a new insurance certificate is provided and filed with Planning. All approved oil or gas or related activity shall cease, consistent with safety considerations, until the applicant provides evidence that insurance coverage in the prescribed amount is in effect.

5-2602F.

Performance Security

The applicant shall provide one (1) form of the following security to San Miguel County to ensure compliance with mitigation requirements set forth in this section and specific conditions of approval for facilities: five thousand dollars ($5,000.00) performance bond for each Facility; fifty thousand dollars ($50,000.00) countywide blanket bond for all facilities operated by the applicant within San Miguel County; irrevocable letter of credit; or equivalent financial security acceptable to San Miguel County. Conditions of approval covered by this performance security shall consist of mitigation measures addressing specific impacts affecting the general public and/or adjacent landowners by the applicable performance standards contained in this section. Reclamation activities, which fall under C.O.G.C.C. jurisdiction, are exempted from this performance security coverage.

5-2602G.

Roads and Access

Access Roads

Access Roads serving Minor and Major Facilities, including existing and/or proposed roads that connect such a Facility to a county road or state highway shall be reviewed in accordance with Article 5, Section 5-5 of the San Miguel County Land Use Code. All access and oversize or overweight vehicle permits must be obtained from San Miguel County Road & Bridge Department prior to beginning construction or use of a County road. All proposed transportation routes to the site shall also be reviewed and approved to minimize traffic hazards and adverse impacts on County roadways. Existing roads shall be used to minimize land disturbance unless traffic safety, visual or noise concerns, or other adverse surface impacts are determined to require new or additional roads or unless the applicant demonstrates to the County's satisfaction that it has been unable to obtain authorization to use an existing road.

II.

Private Access Roads

For those Access Roads located between the parcel on which a Minor or Major Facility is proposed and the county road or state highway serving such a Facility, the applicant shall provide written documentation as part of the application demonstrating that it has the legal right to use such road(s) for the purpose of accessing the Facility and the applicant shall demonstrate that such road(s) can provide adequate physical access to such Facility in accordance with applicable Land Use Code standards.

III.

State Highway Access

If access is directly off of a State Highway, the applicant must have an approved State Highway Access Permit for the proposed Facility.

5-2602H.

Emergency Preparedness

Each operator with facilities in San Miguel County is required to provide an emergency preparedness plan. No applications for a Facility shall be considered until the operator has provided such plan to San Miguel County. The plan shall be filed with San Miguel County and updated on an annual basis or sooner, or as conditions change (responsible field personnel change, ownership changes, etc.). The County shall be notified immediately of any changes in responsible field personnel, including contact phone number. The emergency preparedness plan shall consist of the following information, as a minimum:

Name, address and phone number, including a twenty-four (24)-hour emergency number of at least two (2) persons responsible for emergency field operations.

II.

A proposed facilities map showing the name, location and description of all facilities, including the size and type of all pipelines and isolation valves (note: isolation valves shall not be operated by anyone except the owner of the pipeline). The operator shall notify the County in writing upon completion of construction of the Facility and shall provide an as-built map to the County within three (3) months of completion of construction. The map shall be prepared either manually on U.S.G.S. 7.5 Minute Series maps (1" = 2,000'), or digitally on San Miguel County geographic information system parcel maps. The as-built facilities map, which includes the information regarding the location of isolation valves, shall be held confidentially by San Miguel County's Emergency Manager and shall only be disclosed in the event of an emergency. San Miguel County's Emergency Manager shall deny the right of inspection of the as-built facilities map to the public pursuant to C.R.S. § 24-72-204(3)(a)(IV).

III.

Provide a written response plan for the potential emergencies that may be associated with the operation of the facilities. This may include any or all of the following: explosions, fires, gas or water pipeline leaks or ruptures, hydrogen sulfide or other toxic gas emissions, or hazardous material vehicle accidents or spills.

IV.

Project specific emergency preparedness plans are required for any project that involves drilling or penetrating through known zones of hydrogen sulfide gas, as determined by the Colorado Oil and Gas Conservation Commission. This plan shall be coordinated with and approved by San Miguel County's Emergency Manager prior to beginning field operations.

5-2602I.

Fire Prevention

Prior to commencement of operations each operator with facilities in San Miguel County is required to provide a fire prevention response, and safety plan that has been approved by the local fire district or San Miguel County Sheriff, as appropriate.

5-2602J.

Reclamation

Interim and Final reclamation shall be governed by a reclamation plan for the Facility. The reclamation plan shall provide for a reasonable reclamation schedule in light of the specific surface use and surrounding land uses, and may require recontouring and revegetation of the surface to pre-disturbance conditions equivalent to adjacent undisturbed areas. The County may also approve a plan for an alternative post-disturbance reclamation, provided the surface owner and the applicant agree, and the plan is in harmony with the surrounding land uses and the San Miguel County Land Use Policies and Land Use Code regulations and shall be done in accordance with Chapter 6 of the Bureau of Land Management "Gold Book". In addition, each operator is encouraged to consult with the responsible official or governing body of an owner's association or common interest community in which the Facility may be located with respect to any weed control, reclamation or mitigation plan that it may have adopted.

II.

Road Design and Construction

Roads should be designed and constructed to allow for successful interim and eventual final reclamation. Revegetation of roads ditches and cut and fill slopes will help stabilize exposed soils and reduce sediment loss, reduce the growth of noxious weeds, reduce maintenance costs, maintain scenic quality and forage, and protect habitat. To ensure successful growth of plants and forbs, topsoil must be salvaged where available during road construction and respread to the greatest degree practical on cut slopes, fill slopes, and borrow ditches prior to seeding. To ensure stability of freshly topsoiled slopes during revegetation, the application of mulch or other sediment control may be appropriate.

The appropriateness of primitive roads or routes is site/use-specific and is typically based on many factors, such as anticipated dry or frozen soil conditions, seasonal weather conditions, flat terrain, low anticipated traffic, or driller's or operator's access needs. Operators should not flat-blade roads. Drainage must be maintained, where appropriate, to avoid erosion or the creation of a muddy, braided road. Resource damage must be repaired as soon as possible and the operator will consult with the County and private surface owner(s) to determine if all or a portion of the road needs to be upgraded to an all-weather access road.

III.

Pipelines and Flowlines

Pipelines and flowlines should be constructed in conformance with the guidelines contained in Chapter 3 of the Bureau of Land Management "Gold Book" and applicable COGCC "pipeline" regulations.

IV.

Reserve Pits

To prevent contamination of ground water and soils or to conserve water, all reserve pits shall be lined with an impermeable liner. An impermeable liner has a permeability of less than 10-7 cm/sec. The liner must be installed so that it will not leak and will be compatible with all substances placed in the pit. Fencing of reserve pits is required to prevent access by person, wildlife, or livestock. Netting or alternative method of covering pits acceptable to the County shall be required in order to prevent access and mortality of birds and other animals. Refer to Chapter 4 Construction and Maintenance of the BLM "Gold Book" for more detailed specifications for the methods of lining, fencing and netting of pits.

Contaminated Soils and Pit Reclamation

The operator shall construct and manage evaporative or reserve pits in accordance with state and federal regulations. The concentration of hazardous substances in the reserve pit at the time of back filling must not exceed the standards set forth in either the COGCC regulations or in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). All Oil and Gas drilling related CERCLA hazardous substances removed from a location and not reused at another drilling location must be disposed of in accordance with applicable State and Federal regulations. Refer to Chapter 6 Reclamation and Abandonment of the BLM "Gold Book" for specific methods for reclaiming pits.

Written notice, which may be by Email, from the operator shall be sent to the County Planning Department a minimum of three (3) working days prior to commencing reclamation of evaporative and reserve pits in order to allow the County, if they elect to do so, to test pit materials to be buried on site for verification of compliance with the allowable concentrations and levels of hazardous substances as described above.

5-2602K.

Surface Damages and Surface Use Agreements

For Major and/or Minor Facilities to be located upon real property with split estates (parcels in which the party owning the severed mineral estate is different from the party owning the surface estate), for which the Operator does not currently own or lease the surface estate, the Operator shall provide a copy of any Surface Damages or Surface Use Agreement that has been executed by the owner(s) of the surface estate for the parcel upon which a Major or Minor Facility is to be located. Such submitted Agreement may be redacted to delete any provisions pertaining to financial and/or non-monetary compensation that the Operator has paid to the surface owner. In lieu of submitting an executed Surface Damages or Surface Use Agreement an Operator may submit a notarized written consent or written waiver to the proposed Major or Minor Facility that has been executed by the owner(s) of the surface estate for the parcel(s) upon which such Facility is to be located. Should the Operator not have entered into a Surface Damages or Surface Use Agreement with owner(s) of a split surface estate it shall submit a written certification to that effect, together with a copy of any bond that has been posted as security for possible surface damages. For Major and/or Minor Facilities located within a parcel or parcels for which the Operator is the current owner or lessee of the surface estate, the Operator shall provide a copy of the current title or lease documentation.

5-2602L.

Air Quality

Air contaminant emissions shall be in compliance with the permit and control provisions of the Colorado Air Quality Control Program, Title 25, Section 7, C.R.S. and any Air Quality regulations if and when the County adopts such regulations.

5-2602M.

Operational Conflict

Special exceptions to these regulations may be granted where the requirements of this section of the San Miguel County Land Use Code actually conflict in operation with the requirements of the Oil and Gas Conservation Act or implementing regulations. All applications where a special exception due to operational conflicts is requested shall be heard in a noticed public hearing by the Board of County Commissioners acting in a quasi-judicial capacity. The applicant shall have the burden of pleading and proving an actual, material, irreconcilable operational conflict between the requirements of this division and those of the Colorado Oil & Gas Conservation Commission (COGCC) in the context of a specific application. For purposes of this section, an operational conflict exists where San Miguel County condition of approval or regulation actually conflicts in operation with the state statutory or regulatory scheme, and such conflict would materially impede or destroy the state's interest in the development, production, and utilization of oil and gas resources in the state, and the protection of the public health, safety and welfare. An operational conflict may occur where San Miguel County regulation prohibits an activity, which the Colorado Oil & Gas Conservation Commission, or its valid regulations, has clearly authorized, or authorizes an activity, which the Colorado Oil & Gas Conservation Commission, or its valid regulations, has clearly prohibited. Additional County requirements in areas that may be subject to the Colorado Oil & Gas Conservation Commission regulation, which also fall within County land use powers and which are necessary to protect the public health, safety and welfare under the facts of the specific application presented, and which are consistent with the COGCC rules and regulations, shall be presumed not to present an operational conflict. If the Board of County Commissioners finds, based upon competent evidence in the record, that compliance with the requirements of this division shall result in an operational conflict with the state statutory and regulatory scheme, a special exception to this section may be granted, in whole or in part, but only to that extent. The Board of County Commissioners may condition the approval of a special exception as necessary to protect the public health, safety and welfare by mitigating any adverse impacts arising from the grant of approval.

5-2602N.

Location of Major and Minor Facilities on Private Property, Lands Held by the State Land Board, and Non-Federal Governmental Lands

The following criteria shall be used in siting oil and gas facilities on private property and non-federal governmental lands:

The standards in this code shall not cause or require the operator to site the Facility in: a geologic hazard area, an area with slopes exceeding thirty percent (30%); an area of wetlands under the jurisdiction of the U.S. Army Corps of Engineers; in an area within a floodway of a stream or river as shown on the Flood Insurance Rate Maps (FIRM) or as determined by a state licensed professional engineer.

II.

The following criteria shall be used to site an oil and gas Facility, unless the County determines that it is technically or economically infeasible to satisfy the criteria. Facilities that cannot comply with review criteria may be denied. The mitigation requirements may be waived by the County if existing topography and vegetation are determined to adequately mitigate the visual and sound impacts of the site. The County shall determine the compliance of the proposal and application using the following standards:

Facilities shall adhere to the setback and location requirements found in Section 5-2604 G.

Facilities shall be sited to minimize the impact to existing residences, commercial structures, public buildings, lots, and parcels from Oil and Gas facilities to the maximum extent reasonably possible.

Facilities shall be constructed using existing infrastructure. This includes, but is not limited to, the use of existing roads, pipeline routes, and well.

Facilities shall be sited to minimize the impact to agricultural operations.

Facilities shall be sited in areas that maximize the amount of natural screening available for the Facility. Natural screening includes, but is not limited to, the use of existing vegetation as a background, the construction of the Facility near mature stands of vegetation, the construction of the Facility in canyons or behind ridges and natural rock formations.

Facilities shall be sited at the base of slopes to provide a background of topography and/or natural cover.

Facilities shall be sited to avoid crossing hills and ridges or silhouetting.

Facilities shall be sited in order to minimize the amount of cut and fill needed to construct the Facility.

Facilities shall be sited away from prominent natural features such as distinctive rock and landforms, vegetative patterns, river crossings and other landmarks.

The provisions of any existing surface use agreement should be taken into consideration regarding the siting of a Facility.

Facilities shall be sited to minimize the impact on wildlife habitat as identified or mapped by the Colorado Parks and Wildlife, including raptor proofing any potential perching structures in mapped Occupied Gunnison Sage-grouse habitat.

III.

If the Oil and Gas Conservation Commission well location and well spacing rules and regulations require a well to be located contrary to the location required by these regulations, the applicant may apply for a special exception pursuant to Section 5-2604 G.VI and VII. All such well location special exceptions will be processed as a Two-step Review. The well location as required by these regulations shall be complied with to the maximum extent reasonably possible consistent with the applicable COGCC well location and spacing requirements. The County may impose additional mitigation measures as are determined to be reasonably necessary to protect the public health, safety, and welfare when the well is not located as required by these regulations.

5-2603 - Development of Minor Oil and Gas Facilities

5-2603A.

Administrative Review for an Application for Permit to Drill (APD), Geophysical Operations and Minor Facilities

Applications for county land use approval for proposed Minor Oil and Gas Facilities require a Development Permit, which shall be administratively processed by the Planning Director or a designee, provided the information in the application establishes that the proposed use complies with the minimum requirements for such facilities as set forth in this section. The COGCC Application for Permit to Drill (APD), subject to Planning staff determination of adequacy of this information may suffice as a portion of the application (Development Permit) subject to Administrative Review.

5-2603B.

Submission Requirements for Minor Facilities

General

All Minor Facility applications shall include, at a minimum, the information and materials specified in this section of the Code. The Planning Department staff may authorize modifications to the required submission contents to reduce or eliminate information and materials required for submission.

II.

Required Background Information

A letter signed by the applicant containing the applicants name, address and telephone number, fax number, email address, and if applicable, the same information for the representative authorized to act on behalf of the applicant.

III.

Copies of Application

The applicant shall submit three (3) complete copies of the application.

IV.

An application for a Minor Facility (see 5-2503 C. for Geophysical-Seismic Operation submittal) shall include a Development Plan, which shall include the following:

Well Plat certified by a registered surveyor.

A Drilling Plan

A Surface Use Plan: to include well location, direction to well site, legal and physical access to and within the site, new and existing roads, facilities to be constructed on site, location of water supply, waste disposal, surface restoration (revegetation), weed control plan, pipelines and flow lines (existing and proposed), wildlife habitat.

Verification of Bond to the County to cover the operations.

Operator certification.

Site Specific Plan showing location of well, pad size, accessory structures, topsoil stockpile, reserve pit, etc. must be representative of what is proposed for the specific site being applied for (a generic site plan is not acceptable), and describing the location of the Facility's perimeter.

List of all ancillary equipment to be used on site.

List of hazardous materials to be used.

Statement of compliance with Noise mitigation per Section 5-2604 D.

Statement of compliance with the visual impact standards contained in Section 5-2604 E.III, IV and V.

Demonstration of compliance with Setbacks per Section 5-2604 G.

Any other uses, including but not limited to employee/worker housing.

The identification of any wildlife habitat as mapped by the Colorado Parks and Wildlife (structures should include raptor perching deterrents in Colorado Parks and Wildlife mapped Occupied Gunnison Sage-grouse habitat).

A description of the location of the Access Road proposed to serve the Facility and documentation demonstrating the existence of legally and physically adequate access to the proposed Facility, or the ability to construct such access.

Provide a copy of the State Water Quality Control Division Stormwater Permit and Stormwater Management Plan, if it is not already filed with the County.

5-2603C.

Submission Requirements for Geophysical (Seismic) Operations

General

All Geophysical Operation applications for land use approvals shall include, at a minimum, the information and materials specified in this section of the Code. The Planning Department staff may authorize modifications to the required submission contents to reduce or eliminate information and materials required for submission. A complete application shall include any and all applicable Federal, State and/or Private land leases (or memoranda thereof) and permits.

II.

Required Background Information

A letter signed by the applicant containing the applicants name, address, telephone number, fax number, email address, representative authorized to act on behalf of the applicant and if applicable, the same information for the representative authorized to act on behalf of the applicant.

III.

Copies of Application

The applicant shall submit three (3) complete copies of the application.

IV.

An application for a Geophysical (Seismic) Operation shall include a Development Plan, which shall include the following:

A Surface Use Plan to include general location of shothole exploration, access, new and existing roads, surface restoration (revegetation), and weed control plan.

Verification of Bond to the County to cover operations.

Operator Certification.

List of hazardous materials to be used.

Identification of any wildlife habitat as mapped by the Colorado Parks and Wildlife.

Provide time period, duration and any seasonal restrictions per the Colorado Parks and Wildlife and/or applicable Federal and/or State Permits.

Documentation authorizing the proposed Geophysical (Seismic) Operation executed by the owner or lessee of the mineral estate(s) and from the surface owner of a split estate(s) that is the subject of such Geophysical Operation, if obtained and available.

5-2603D.

Notice to Adjacent and Affected Property Owners

Written Notice shall be provided to affected surface owners for all Minor Facility applications. Email notice to surface owners is encouraged if Email addresses are available from the County Assessor's Office. The applicant shall present proof of such notice by submitting a copy of the letter and a list of the landowners notified, together with an affidavit attesting to such notice executed by the person responsible for providing such written notice, to the Planning Department. This notice to affected owners shall be mailed not more than twenty (20) days nor less than seven (7) days prior to the application being submitted to the Planning Department. The notice to affected owners shall provide a statement that all written comments must be provided to the County Planning Department within fifteen (15) days, after the date of filing of the application, as stated in the Notice, with the County Planning Department except where the APD is the first well to be developed in a Residential Area the notice shall provide a statement that all written comments must be provided to the County Planning Department within thirty (30) days of the mailing of the notice. The notice to affected owners shall include the date the application is to be filed with the County. Notice of the application shall be made as follows:

To the current surface owners of the parcel(s) of land within which the Minor Facility is proposed to be located, as well as the current surface owners of those parcels of land within ¼-mile (1,320 feet) of the subject site and the owners of real property adjacent to or through which any private Access Road extends. Such notice shall include the proposed Minor Facility location. Ownership may be determined from the current property tax records of the county assessor's office. For the purposes of notice, a surface owner shall receive notice if its property boundary is within ¼-mile (1,320 feet) from the point indicated as the wellhead (the wellhead is indicated by feet from section lines) or, for Minor Facilities, other than wells, from the Facility perimeter as depicted on the Development Plan.

In addition to the required written notice under this provision, the applicant shall make a good faith effort (at a minimum contacting the County Planning Department and checking the records of the County Clerk and Recorders Office) to ascertain if any of the landowners required to be provided written notice, as part of an application, are also members of a condominium association or homeowner's association. If the result of the good faith examination identifies the existence of such condominium association or homeowner's association, the applicant shall provide written notice to these associations in the same manner as other landowners. Email notice to these associations is encouraged if Email addresses are available from the County.

II.

The notice of the application for approval of a Minor Facility shall contain the following (see Attachment A):

A description of the proposed Facility site location, including a legal description, as well as a street address for the site, if available, from the County Addressing Official.

The identification of the applicant and its designated agent for the application, if any, the current business address, telephone number, fax number, and email address for the applicant and its agent, if one has been designated, and a brief description and general map of the proposed Access Road, construction, facilities and equipment proposed to be located at the site while under construction, during drilling and completion and after the Facility is operational.

III.

Posting of notice shall be made by the applicant by posting a sign (to be obtained from the County) in a conspicuous place on the property or closest public roadway within five (5) days of submittal of the application to the Planning Department.

5-2603E.

Determination of Compliance and Approval or Denial of Application

If the application is found to be complete, as required by this section, Planning shall then review the application for compliance with applicable standards and requirements within this section. Planning may require more information based upon the review of the application, but Planning shall complete its review, and approve, approve with conditions or deny the application, within thirty (30) working days of submittal of a complete application, except where the APD is the first well to be built in a Residential Area the review shall be completed within forty-five (45) working days. Planning shall determine if additional information is required within ten (10) days of receiving an application. If additional information is required it shall be submitted within ten (10) days of written request. Planning shall complete its review of the application within fifteen (15) days of receipt of the requested information unless more time is required, to conduct a site visit due to inclement weather.

5-2603F.

Review Standards for Minor Facilities

Planning shall review the application to determine compliance with review standards for Minor Facilities.

The siting of a Facility shall lie within the Colorado Oil & Gas Conservation Commission determined drilling window, or in a location that complies with Colorado Oil & Gas Conservation Commission rules and regulations.

II.

Minor Facilities shall comply with the requirements of Section 5-2602 N.

5-2603G.

Pad Size

Pad dimensions for a Minor Facility shall be the minimum size necessary to provide a safe work area and minimize surface disturbance and shall not exceed eight (8) acres. If the well pad exceeds eight (8) acres in size, consideration shall be given to processing the development as a Major Facility unless it's determined the cumulative impacts will be less than those associated with an additional well pad, based upon Planning Staff's evaluation of the probable cumulative impacts associated with the Facility. Applicant shall provide an explanation and rational basis for the proposed Pad Size.

5-2603H.

Gathering System Lines

Gas gathering lines for any Facility shall be shown on the site plan for each individual well when such lines are proposed. A revegetation plan shall be submitted for all gathering lines, which shall include sufficient procedures for seeding, crimping and weed control. A weed control plan shall be included to control weeds listed on the San Miguel County Noxious Weed list. Prior to installation of gathering lines, a Special Construction Permit shall be obtained from the Road and Bridge Department for road crossings and work in County rights-of-way or a County Road, where necessary. A final as-built plan sufficient to locate final constructed gathering lines shall be provided to the County within six (6) months of completion.

5-2603I.

Appeal of Planning Director Administrative Decision

An applicant or other affected and aggrieved person(s) may appeal the Planning Director's decision by submitting a letter that sets forth the grounds for the appeal, addressed to the Planning Director requesting an appeal, within fourteen (14) days of the Administrative Decision. The Board of County Commissioners shall conduct a public meeting within thirty (30) days to consider such an appeal. The Board shall render its written decision within fifteen (15) days of the date of the appeal hearing, which decision shall constitute the final action of the County.

5-2603J.

Commencement, Duration and Modification of Development Permit

Development Permits or Approvals granted for Minor Facilities shall expire or be considered revoked if construction of the Facility is not commenced within two (2) years of the date of approval or if the permit from the Colorado Oil and Gas Conservation Commission for the Minor Facility expires or terminates, whichever first occurs. The Development Permit or Approval shall become effective on the date of the approval by the Planning Director or Designee. If an applicant desires to modify the subject Facility by changes to equipment, site layout, approved operating plan, Access Road, etc. an amendment to the original application shall be submitted for review and approval. Planning shall determine whether the modification is an administrative review or is considered a major revision and process the application accordingly. Recompletions and Subsequent Well Operations for any well shall require the operator to provide notice to the County of such work at least seven (7) days prior to the date of estimated commencement of operation with heavy equipment.

5-2604 - Development of Major Oil and Gas Facilities

5-2604A.

Special Use Permit Required (Two-step Review)

Development of Major Oil and Gas Facilities within the unincorporated areas of San Miguel County, as to which jurisdiction has not been preempted by state or federal law, shall be subject to the provisions of this section and all other applicable Land Use Code sections including Sections 5-4 Areas and Activities of Local and State Interest/"1041" Environmental Hazard Review, 5-21 Scenic Quality, 5-22 Wetland Areas, and 5-25 Watershed Protection Areas, of the San Miguel County Land Use Code, as well as any state or federal entities or agencies having jurisdiction over such development. Construction, installation and operation of oil and gas facilities, which are subject to this section shall not commence until a Special Use Permit has been granted by San Miguel County. Section 5-10 Special Uses shall not apply to Oil and Gas Development except as specified in Section 5-2604 B.VII.

5-2604B.

Submission Requirements for Major Facilities

General

All applications for land use approvals shall include, at a minimum, the information and materials specified in this section of the Code. The Planning Department staff may authorize modifications to the required submission contents.

II.

Required Background Information

A letter signed by the applicant containing the applicant's name, address, telephone number, fax number, email address, and if applicable, the same information for the representative authorized to act on behalf of the applicant.

III.

Copies of Application

The applicant shall submit three (3) complete copies of the application.

IV.

Notice to Adjacent and Affected Property Owners - (see Attachment A)

Two-step reviews require that the notice to adjacent and affected property owners include the date, location and contact information for the time of the public meeting. The notice shall also include a provision that encourages the adjacent and affected property owners provide written comments no later than one-week prior to the meeting date in order to be included in the meeting packets, although comments will be accepted up to the public meeting date. Not less than fourteen (14) days, nor more than thirty (30) days prior to the public meeting established to consider the Major Facility application, legal notice of the public meeting before the board of commissioners shall be published in a newspaper of general circulation within the county, and written notice shall be given individually to the following:

The owners, as recorded in the records of the county, of any land adjacent to or located within ¼-mile (1,320 feet) of any portion of the boundary of the parcel or tract containing the subject site and owners of each parcel of real property adjacent to or through which the designated Access Road extends from the nearest public road. Such notice shall be sent by the applicant or Planning Department at the applicant's expense at least twenty (20) days prior to the scheduled meeting date. Email notice to adjacent and affected property owners is encouraged if Email addresses are available from the County Assessor's Office. Persons notified and the distance of notice may be increased at the discretion of the County based upon size and scale of the proposed Facility, surrounding land use pattern and perceived impacts.

The public notice shall include the following:

A description of the location of the Facility (including a legal and practical locational description and a vicinity map), a general site plan, a vicinity map which includes the designated Access Road to the Facility, and the proposed activity under review.

ii.

Time and place of the public meeting.

iii.

The name and address of the applicant and/or its designated agent, and a statement that additional information may be obtained from the Planning Department.

Posting of notice shall be made by the applicant by posting a sign (to be obtained from the County) in a conspicuous place on the property or closest public roadway at least twenty (20) days prior to the scheduled meeting date.

The applicant shall present proof of such notice by submitting a copy of the letter and a list of the landowners notified, together with an affidavit attesting to the mailing of such notice executed by the person responsible for providing such written notice, to the Planning Department.

The following information shall be submitted:

A vicinity map indicating the section, township, and range of the site, and its relation to surrounding public roads and municipal boundaries.

A detailed drawing of the site at a scale of one (1) inch to one hundred (100) feet, or other scale as determined to be appropriate by the Planning Department, which shall include the following:

The dimensions of the site, indicating area in square feet and acres, and the area of the site to be disturbed;

ii.

The location of all structures, flow lines or pipelines, gathering systems, tanks, wells, pits, and any other oil and gas operation facilities or equipment associated with the proposed oil and gas Facility;

iii.

Existing and proposed roads to and within the site as well as a description of the designated Access Road(s) from the nearest public road that will be used to access the proposed Facility for construction, operations and maintenance;

iv.

All pipelines, (underground and surface) if applicable;

On-site features such as floodplain designations, water courses, drainage, utility lines and easements, ditches, wetlands or aquatic habitat, significant plant ecosystems, geologic features, vegetative cover, dams, reservoirs, mines, and known cultural resources; existing and proposed topography of the site at contour intervals of not more than five (5) feet; and existing and proposed vegetation, buffers, berms, fences, and other screening devices;

vi.

Adjacent properties and the approximate location of buildings and their uses within a distance of four hundred (400) feet of any proposed structure, facility, or area to be disturbed;

vii.

Identification of wildlife habitat areas and migration routes as mapped by the Colorado Parks and Wildlife, and provisions for raptor proofing structures to prevent perching;

viii.

Provide a copy of the State Water Quality Control Division Stormwater Permit and Stormwater Management Plan, if it is not already filed with the County.

Copies of application forms for all applicable local, state, or federal permits, including, but not limited to, Oil and Gas Conservation Commission Forms 1, 2, and 2a (Registration for Oil and Gas Operations, Application for Permit, Drill Site/Access Road Reclamation Forms).

In the event the Major Facility is not a well, the applicant shall provide proof of ownership or a surface lease authorizing the proposed use and Facility.

Copies of financial guarantees in the form of bonds, letters of credit, cash, certificates of deposit, individual bonds posted with the Oil and Gas Conservation Commission. In addition the County may require the operator of a Major Oil and Gas Facility in San Miguel County to provide financial guarantees as necessary and determined reasonable by the Board of County Commissioner's to secure the objectives of these LUC provisions and to adequately address and potentially mitigate surface impacts, such as noise, visual, reclamation, revegetation, weed control, and damage and/or impacts.

An operation plan including the method of and schedule for the initiation, construction, operation and reclamation of the operation, to the extent applicable.

An emergency response plan meeting the requirements of this section (see Sections 5-2602 H and I).

A reclamation plan meeting the requirements of this section, including proposed recontouring, revegetation or other appropriate measures to restore the surface while operations proceed or after they cease (see Section 5-2602 J)

A noise, odor, and dust abatement plan to prevent impacts on this and adjacent properties.

Any proposed measures necessary to mitigate anticipated adverse impacts on the aesthetic features of the site, views from surrounding properties or public rights-of-way, or on significant environmental resources such as wetlands or plant and wildlife habitats.

An Access Road designation and transportation route plan for all related facilities.

A waste disposal plan.

A drainage and erosion control plan for both on-site and off-site drainage to address storm water runoff during site construction, as well as, after construction of the Facility.

A weed management plan.

Written documentation that adequate legal and a physical access exists or can be constructed to serve the Facility.

VI.

Commencement, Duration and Modification of Special Use Permit

Approval granted for a Major Facility shall commence in accordance with Land Use Code Section 5-1002 F (unless a phased plan is approved through the review process). The Special Use Permit shall become effective on the date of written approval by the County. If an applicant desires to modify the subject Facility by changes to equipment, site layout, approved operating plan, etc. an amendment to the original application shall be submitted for review and approval. Planning shall determine whether the modification has substantial impacts and is considered a minor amendment pursuant to Section 5-1003.

5-2604C.

Review Standards

The Board of Commissioners' decision to approve or deny an application for a Major Facility shall be made and determined based upon its compliance with all applicable performance standards and other requirements of this section and by applying the following criteria to the evidence in the record of proceedings before the commissioners:

Need

The demonstrated need for the Facility, in the location proposed, to serve the applicant's existing and projected oil and gas development, production and operational requirements.

II.

Suitability

Suitability of the location of the proposed Facility given its size, design and operational characteristics. Factors to be considered include noise levels, impacts upon air and water quality, vibration and odor levels, fire protection and access requirements, visual impacts, wildlife impacts and public safety. These factors will be evaluated in accordance with applicable state, county and federal standards and criteria.

III.

Legal and Physical Adequacy of the Proposed Access Road

Factors for consideration are existing and proposed road alignment, intersections, condition, structure and site distances; traffic volumes and types of equipment; dust control; and existing road uses; satisfactory written documentation of the Applicant's legal right to use the proposed Access Road to serve the Facility; and physical adequacy of the proposed Access Road to serve the Facility.

IV.

Site Characteristics

Factors to be considered are topography, natural hazards (landslides, flooding, wildfire), and current resource values (open space corridor, prime farmland as designated by Soil Conservation Service and wildlife habitat (including lands designated under the County PDR program as well as other conservation easements).

Compatibility

Compatibility with existing uses and those which can be reasonably anticipated, based upon present subdivision and land use approvals for properties located within the surrounding affected area, as determined by the commissioners, based upon competent evidence in the record. A Facility's compatibility with land uses in the surrounding area, which the commissioners find will be affected by its operation, shall be determined by the Facility's estimated or projected ability to mitigate the impacts which it generates, as set forth in the Facility operational plan, and in accordance with applicable county, state and federal rules, regulations and standards.

VI.

Pad dimensions for a facility shall be the minimum size necessary to provide a safe work area and minimize surface disturbance.

VII.

Major Oil and Gas Facilities shall also be reviewed for general consistency with the standards and policies set forth in the following documents:

San Miguel County Land Use Code Section 5-26: Oil and Gas Exploration and Development;

San Miguel County Land Use Code;

San Miguel County Comprehensive Development Plan (Master Plan);

Other applicable local, county, state and federal plans, policies and regulations;

Bureau of Land Management, Surface Operating Standards for Oil and Gas Exploration and Development "Gold Book";

"Gunnison Sage-grouse Rangewide Conservation Plan" (Colorado Parks and Wildlife) and the "San Miguel Basin Gunnison Sage-grouse Conservation Plan".

5-2604D.

Noise

Any equipment used in drilling, completion, or production of a well must comply with the maximum permissible noise levels set forth in the applicable COGCC Regulation Section 802 Noise Abatement (see Attachment B).

II.

Where a Facility does not comply with the required setback or other portions of the performance standards, additional noise mitigation may be required but shall be consistent with the standards of COGCC Rule 802. In determining noise mitigation, specific site characteristics shall be considered, including but not limited to, the following:

Nature and proximity of adjacent development (design, location, type). Prevailing weather patterns, including wind directions.

Nature and proximity of adjacent wildlife habitat.

Vegetative cover on or adjacent to the site.

Topography.

III.

Based upon the specific site characteristics set forth in this section, nature of the proposed activity and its proximity to surrounding development and wildlife habitat and type and intensity of the noise emitted, additional noise abatement measures may be required, but abatement measures must be consistent with the standards of COGCC Rule 802. The level of required mitigation may increase with the proximity of the Facility to existing residences and platted subdivision lots and wildlife habitat, and/or the level of noise emitted by the Facility. One (1) or more of the following additional noise abatement measures, listed below in ascending order of mitigation, may be required:

Acoustically insulated housing or covers enclosing any motor or engine;

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

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

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

Any other technically feasible and cost effective noise mitigation measures required by the County.

Construction of buildings or other enclosures may be required where facilities create noise and visual impacts that are nonmitigable because of proximity, density and/or intensity of adjacent land use.

5-2604E.

Visual Mitigation

Visual Mitigation Plan

A visual mitigation plan shall be required for all new facilities and/or expansion of existing facilities. The plan shall incorporate the appropriate design elements of this section. The requirement for a visual mitigation plan may be waived by the Board of County Commissioners, the Planning Director or the Local Government Designee, if a plan is deemed unnecessary to preserve the Scenic Quality in conjunction with the proposed development of the Facility visible from neighboring developments and public use areas in accordance with the Policy set forth in Section 2-12 Scenic Quality and Section 5-21 Scenic Quality.

II.

The visual mitigation plan minimum requirements are as follows:

Scaled drawing.

Site boundary dimensions and descriptions.

Existing and proposed contours and pad elevations.

Existing conditions and site features including wildlife habitat that incorporate and surround such site to be developed.

Existing and proposed access.

Cross-section of existing and proposed contours, if applicable and when necessary to demonstrate compliance with the applicable Scenic Quality standards in LUC Section 5-21.

Orientation and dimensions of facilities (pump jacks, buildings, etc.).

Description of existing and proposed vegetation.

Location, height and extent of any proposed perimeter berms, if applicable.

Type, location and amount of mulch materials, if applicable.

Type, location and height of any existing and/or proposed fencing, if applicable.

Delineate drainage and runoff patterns and mitigation.

Direction and type of lighting, if applicable.

Written maintenance and irrigation plan for proposed or required revegetation for at least one (1) year after revegetation.

Title block:

Name of development;

ii.

Name of applicant or developers;

iii.

Project number;

iv.

Date of preparation; and

Section, township and range.

Vicinity map:

Major roads, adjacent subdivisions and town boundaries;

ii.

Section, township and range; and

iii.

Rivers, streams, ponds and wetlands.

Performance security. For sites requiring a visual mitigation plan, performance security shall remain in place for at least one (1) year after installation of the plant and landscape materials. The performance security shall be of an amount sufficient to cover the costs of the proposed improvement or the bonding requirements set forth in Section 5-2602 F. Performance Security.

III.

Visual Impacts

To the maximum extent reasonably feasible, the applicant shall use structures of minimal size to satisfy present and future functional requirements.

When clearing trees and vegetation for construction of facilities, the applicant shall feather and thin edges of vegetation.

The applicant shall replace earth adjacent to water crossings at slopes less than the natural angle of repose for the soil type of the site.

To the maximum extent possible, the applicant shall align Access Roads to follow existing grades and minimize cuts and fills.

Facilities shall be painted as follows:

Uniform, noncontrasting, nonreflective color tones, similar to standardized colors as used by Bureau of Land Management color charts.

ii.

Color matched to land, not sky, slightly darker than adjacent landscape.

The applicant shall minimize damage to existing trees and vegetation.

Within three (3) months for crop land and twelve (12) months for non-crop land, after well completion, or six (6) months for non-well Major Facilities, the pad area (except the main Access Road and the immediate areas surrounding the aboveground facilities, which are necessary for safe operations, and which are to be graveled) shall be reseeded with native grasses or existing vegetation acceptable to the surface owner and in compliance with the County Land Use Code.

One (1) or more of the following landscape practices as described in Section 5-2101 and below shall be applied, on a site-specific basis:

Establishment of berms, ground covers, shrubs and trees.

ii.

Shaping cuts and fills to appear as natural forms.

All exterior lighting shall comply with the standards of Section 5-710. All lighting associated with oil and gas development shall be used as needed rather than all of the time to the extent possible given safety requirements.

All equipment used for drilling, re-drilling, well completion and recompletion and maintenance of the Facility shall be removed from the site within thirty (30) days of completion of the work for which the equipment is used, unless otherwise agreed to by the surface owner. Permanent storage of equipment on well pad sites shall not be allowed, unless otherwise agreed to by the surface owner and determined by San Miguel County to be in conformance with the applicable LUC standards.

The applicant is encouraged to use low profile pumps and equipment to mitigate visual impacts.

IV.

Additional Visual Mitigation in Visually Sensitive Areas

In addition to visual mitigation requirements set forth in this section, well sites located within a visually sensitive areas, such as but not limited to scenic highway setbacks (Section 5-505), scenic foreground and scenic view plane zone districts (Section 5-316), shall be mitigated according to the provisions of this section. Any well within a visually sensitive area shall use an appropriate mitigation measure in accordance with the applicable provisions of the Land Use Code.

Other Special Mitigation Measures

5-2604F.

Water

An approved or conditionally approved Facility shall comply with the following requirements:

Comply with Oil and Gas Conservation Commission water well testing and water-bearing formation protection procedures and requirements.

II.

All Test and Survey reports and water well testing information that have been required by COGCC to determine the presence of waste or occurrence of pollution, as well as, the results from well-head monitoring to allow safe and convenient determinations of pressure and fluid flow shall be forwarded to the Planning Director or Local Government Designee.

III.

All oil and gas operations shall comply with all applicable state water quality standards and classifications established by the Water Quality Control Commission.

IV.

Comply with the Water Right Determination and Administration Act and the Ground Water Management Act for beneficial uses of produced water related to coalbed methane production.

Identify physical source of water and legal entitlement to use of such water (e.g., Water Court decree) for irrigation, dust control and drilling.

5-2604G.

Setbacks

In order to buffer oil and gas operations from surrounding properties, wells and any associated oil and gas operation Facility or structure requiring a Minor Facility Development Permit or Major Facility Special Use Permit shall meet the following setbacks:

A minimum of four hundred (400) feet from the site perimeter of the Facility (for wells, site distance shall be measured from the well head) and any existing residence, occupied building or occupied building permitted for construction, unless verified written consent is obtained from the affected property owner, or in the case of wells, the COGCC fails or refuses to approve a well site location that complies;

II.

A minimum of two hundred (200) feet from the site perimeter of the Facility and the closest platted subdivision lot line, unless verified written consent is obtained from the affected property owner; and

III.

A minimum of two hundred (200) feet from the site perimeter and any public right-of-way.

IV.

A smaller set back may be granted by the County if the surface owner agrees and if there is no adverse impact on adjacent properties created by the reduced setback. No reduction in setback, however, shall violate the setbacks of the applicable zoning district in which the operation is located.

If the Colorado Oil & Gas Conservation Commission rules require location of wells at a distance less than these minimum requirements, the applicant shall apply for a special exception pursuant to Section 5-2604 G.VI and VII. All such well location special exceptions will be processed as a Two-step Review. If such a variance is not granted, the setbacks specified in these regulations shall be complied with to the maximum extent possible. The County may impose additional mitigation measures as necessary to protect the public health, safety, and welfare where these setbacks cannot be met.

VI.

Special Exception Requests

Special exceptions to the setback requirements may be requested by the applicant. All applications where a special exception is requested will be processed as a Two-step Review. Requests for special exceptions for proposed facilities may include, but not be limited to, one (1) or more of the following factors:

Topographic characteristics of the site;

ii.

Duration of use of the Facility;

iii.

Proximity of occupied structures to the Facility;

iv.

Ownership status of adjacent and/or affected land;

Construction of adequate infrastructure to serve the project; and

vi.

Planned replacement and/or upgrading of Facility equipment.

If the Board of County Commissioners finds, based upon competent evidence in the record, that compliance with the regulations of this section is impossible, a special exception may be granted by the Board of County Commissioners for a period of time not to exceed six (6) months. The applicant must initiate construction of the Facility within six (6) months or the time period specified by the Board of Commissioners. Prior to expiration of the specified time period, the application shall receive additional review by the Board of County Commissioners in accordance with this code. The County, upon showing of good cause by the applicant, may:

Further extend the special exception;

ii.

Require that the Facility be brought into compliance with the performance standards; or

iii.

Revoke the special exception approval.

VII.

Operational Conflicts Special Exception

Special exceptions to the setback requirements may be granted where the requirements of this section actually conflict in operation with the requirements of the Oil and Gas Conservation Act or implementing regulations. All applications where a special exception due to operational conflicts is requested shall be processed as a Two-step Review and heard in a noticed public hearing by the board of county commissioners acting in a quasijudicial capacity, pursuant to C.R.S. §§ 30-28-117 and 30-28-118. The applicant shall have the burden of pleading and proving an actual, material, irreconcilable operation conflict between the requirements of this section and those of the Oil and Gas Conservation Commission in the context of a specific application. For purposes of this section, an operational conflict exists where the county condition of approval or regulation actually conflicts in operation with the state statutory or regulatory scheme, and such conflict would materially impede or destroy the state's interest in the development, production, and utilization of oil and gas resources in the state, and the protection of the public health, safety and welfare. An operational conflict may occur where the county regulation prohibits an activity, which, the Oil and Gas Conservation Commission, or its valid regulations, has clearly authorized, or authorizes an activity, which the Oil and Gas Conservation Commission, or its valid regulations, has clearly prohibited. Additional county requirements in areas regulated by the Oil and Gas Conservation Commission, which also fall within county land use powers and which are necessary to protect the public health, safety and welfare under the facts of the specific application presented, and which do not impose unreasonable burdens on the applicant, shall be presumed not to present an operational conflict. If the board of county commissioners finds, based upon competent evidence in the record, that compliance with the requirements of this section shall result in an operational conflict with the state statutory and regulatory scheme, a special exception to this section may be granted, in whole or in part, but only to that extent. The board of county commissioners may condition the approval of a special exception as necessary to protect the public health, safety and welfare by mitigating any adverse impacts arising from the grant of approval.

If the applicant or any interested party wishes to seek judicial review of a final board of county commissioners' decision on the exception request, appeal to the district court shall be pursuant to C.R.C.P. Rule 106 (a) 4.

5-2605 - Definitions

The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Access Road

A road located on private property between the site on which a Minor or Major Facility is located and the county road or state highway serving such a Facility constructed in accordance with the applicable Land Use Code standards.

Agricultural

Currently in use for farm or ranch purposes, including pasture.

Applicant

That person, corporation or other legal entity possessing the legal right to develop the mineral resource or any other use proposed in connection thereof for the site in question; generally, the applicant will be the owner or lessee of the mineral estate.

Collection line

A pipeline to a well designed to collect produced or waste water and transport it to a central disposal area (evaporation pit or injection well).

Compatible/Compatibility

Able to exist or act together harmoniously, considering noise levels, odors, potential fire hazard, visual impacts, effects to surface water and groundwater quality/quantity, adequacy of the road system, air quality and surrounding land uses.

Compressor station

An installation consisting of one (1) or more individual compressors, located on a gathering or transmission line, or both.

Contaminated soil

Soils impacted by production operations in a way that adversely affects their ability to support normal uses or could adversely affect water quality in the future.

Corridor

The route within which a pipeline right-of-way is located.

Designated agent

An agent designated by the owner or lessee, as defined by the Colorado Oil & Gas Conservation Commission.

Easement

Authorization by a property owner for the use of a designated portion of his or her property by another, for a specified purpose.

Evaporation pit

An excavated pit used for storing and evaporating wastewater produced in degasification activities, during drilling or production, or both, sometimes lined.

Facility

Means either a Minor Facility or Major Facility as defined in Section 5-2601 D.

Fieldwide Development Plan

A comprehensive development plan for a proposed or defined oil and gas field(s) or a limited geographic area within a field. The plan will include a map showing optimal locations for wells, production facilities, access routes, flowlines and utilities. This is intended to be a working document meant to guide APD submissions.

Flow Line

Shall mean those segments of pipe from the wellhead downstream through the production facilities ending at: In the case of gas lines, the gas metering equipment; or in the case of oil lines, the oil loading point or LACT unit; or in the case of water lines, the water loading point, the point of discharge to a pit, or the injection wellhead.

Gas well

A well having a pressure and volume of natural gas, specifically, producing methane, often in combination with a variety of other substances such as butane, propane and carbon dioxide.

Gathering system

All pipelines from the meter at the end of the flow line to the compressor station. A system consisting of well (or gathering), lateral, and trunk pipelines transporting oil, gas or other products derived from oil and gas production to a central facility or transmission line, and so classified under the United States Department of Transportation and/or COGCC regulations.

Geophysical Operation

See Seismic Exploration/Operation.

Gold Book

Shall mean the "Surface Operating Standards for Oil and Gas Exploration and Development" prepared by the United States Department of the Interior Bureau of Land Management and United States Department of Agriculture Forest Service, Fourth Edition, 2006 and any amendments to date.

Gunnison Sage-grouse Rangewide Conservation Plan

Shall mean the "Gunnison Sage-grouse Rangewide Conservation Plan dated April 2005, Bureau of Land Management, and any amendments.

Lessee

The individual or firm leasing mineral rights for development purposes from the owner. The lessee may also be the permittee, for the purposes of this section.

Operating plan

A general description of a facility identifying purpose, use, typical staffing pattern, seasonal or periodic considerations, routine hours of operating, source of services/infrastructure, and any other information related to regular functioning of that facility.

Operator

That individual or firm engaged in all or a portion of the extraction operations at a well or other facility; usually the lessee of the mineral estate, although day-to-day operations may be contracted to another firm.

Pad Area

Shall mean the areas, which 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, excluding the access road.

Pad Size

Pad size shall be measured from edge of disturbance.

Pit

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

Platted subdivision lot

Any lot created pursuant to state law, which has received subdivision approval by the Board of County Commissioners since September l, 1972.

Pollution

The contamination or other degradation of the physical, chemical or biological properties of water or air, including change in temperature, taste, color, turbidity or odor, or such discharge of any liquid, gaseous, solid, radioactive or other substance into water or air as will or is likely to create a nuisance or render such water or air harmful, detrimental or injurious to public health, safety or welfare, or to domestic, commercial, industrial, agricultural, recreational or other beneficial uses, or to livestock, wild animals, birds, fish or other aquatic life, or native flora.

Producing (in production)

The development stage in which marketable oil and gas are extracted from a well; may also signify the extraction level at which the quantitative terms of the lease are fulfilled.

Recompletion

The operator reenters a well to complete or deepen the well to a new formation from that in which a well has previously been completed.

Reserve Pit

Shall mean those pits used to store drilling fluids for use in drilling operations or to contain E&P waste generated during drilling operations.

Residential Area

Having an existing residence or platted subdivision lot located within amile radius of a facility site.

Right-of-way

A tract or strip of land, separate and distinct from the adjoining property, owned, occupied or intended to be occupied by an oil, gas and/or water pipeline.

Seismic Exploration/Operation

Shall mean all activities associated with acquisition of seismic data including but not limited to surveying, shothole drilling, recording, shothole plugging and reclamation.

Spacing

Acreage dedicated to each well producing from the same formation. Spacing regulations are established by the Colorado Oil & Gas Conservation Commission.

Stormwater Management Plan

Means the detailed analysis that describes how the proposed stormwater management system for a development has been planned, designed and will be constructed to meet applicable County requirements and Colorado Department of Health and Environment requirements.

Subsequent Well Operations

Shall mean those operations that will materially impact surface areas beyond the existing access road or well site for any well, including operations such as fracturing or recompletion of the well but shall not include routine service and maintenance operations including but not limited to the changing of pumps.

Transmission line

A pipeline transporting oil, natural gas or any other products derived from oil and gas production, which is defined as a transmission line by the Department of Transportation regulations under the Natural Gas Pipeline Safety Act of 1968, as amended.

Well

Shall mean an oil 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.

All other words used in this section shall be given their usual, customary and accepted meaning in the oil and gas industry, or as defined in the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado or the BLM "Gold Book."

ATTACHMENT A

NOTICE TO ADJACENT AND AFFECTED PROPERTY OWNERS:

A Public Meeting/Hearing will be held on _______, 20___ at _______ am/pm in the (place) to review the following application.
Description of the proposed facility site location, including legal description and street address if applicable:
Legal Description:
Street Address (if applicable):
Applicant Name:
Business Address:
Telephone Number:
Fax Number:
Email Address:
Designated Agent:
Business Address:
Telephone Number:
Fax Number:
Email Address:
Brief Description of the Facilities & Equipment and Proposed Activity:
Submittal Date of Application to County:
For additional information contact:	San Miguel County Planning Department P.O. Box 548, 333 W. Colorado Ave., 3rd Fl Telluride, CO 81435 Phone:970-728-3083 Fax:970-728-3098 planning@sanmiguelcounty.org

ATTACHMENT B

NOISE ABATEMENT pursuant to COGCC Regulation 800 Series:

802.

Noise Abatement

Oil and gas operations, including gas facility operations, shall comply with the following maximum permissible noise levels for the predominant land use existing in the zone in which the operation occurs. Any operation involving pipeline or gas facility installation or maintenance, the use of a drilling rig, completion rig, workover rig, or stimulation is subject to the maximum permissible noise levels for industrial zones. In the hours between 7:00 a.m. and the next 7:00 p.m. the noise levels permitted below may be increased ten (10) db(A) for a period not to exceed fifteen (15) minutes in any one (1) hour period.

ZONE	7:00 am to next 7:00 pm	7:00 pm to next 7:00 am
Residential	55 db(A)	50 db(A)
Commercial	60 db(A)	55 db(A)
Light industrial	70 db(A)	65 db(A)
Industrial	80 db(A)	75 db(A)

The following provide guidance for the measurement of sound levels from oil and gas operations:

(1)

If there are no occupied building units impacted, sound levels shall be measured at a distance of twenty-five (25) feet or more from the property line radiating the noise. Sound levels at occupied building units shall be measured as near as practicable to the exterior edge of the occupied building unit closest to the area radiating the noise.

(2)

Sound level meters shall be equipped with wind screens, and readings taken when the wind velocity at the time and place of measurement is not more than five (5) miles per hour.

(3)

Sound levels shall be taken four (4) feet above ground level.

(4)

Sound levels shall be determined by averaging measurements made over a fifteen (15) minute sample duration.

(5)

In all sound level measurements, the existing ambient noise level from all other sources in the encompassing environment at the time and place of such sound level measurement shall be considered to determine the contribution to the sound level by the oil and gas operations.

Exhaust from all engines, motors, coolers and other mechanized equipment shall be vented in a direction away from all occupied buildings to the extent practicable.

In high density areas all facilities within four hundred (400) feet of occupied buildings with engines or motors which are not electrically operated shall be equipped with quiet design mufflers or equivalent. All mufflers shall be properly installed and maintained in proper working order.