Planning Commission Agenda and Packet 2019 09 12

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COGCC for a permit to drill. "Location and siting" is not defined in SB 181, nor are there any COGCC regulations to provide guidance regarding this term. While the City's regulations provide setback requirements for proposed wells, at this time it is unclear whether this would constitute a local location and siting requirement as used in SB 181. There is currently no drilling or actively producing wells, no active oil and gas permits, nor have there been any active well permits filed with the State since 1999 within the City of Louisville. The majority of the City limits are just outside the Wattenberg oil field, although there are some areas that fall within the boundaries identified by COGCC. The Boulder County Oil and Gas activities map can be found through this Zink. Staff cannot predict the future possibilities of drilling for oil and gas within the City limits, nor can we speculate as to whether there is risk that drilling will occur in the future. However, based on the geologic resource maps and past interest in drilling, it seems unlikely that there will be significant demand for oil and gas development in the City. Nonetheless, with changing technologies that may make it possible for offsite drilling to impact the City, or for wells drilled within the City to reach resources located outside the City. On the July 30, 2019 City Council meeting, there was a Discussion/Direction agenda item for Implementation of 2019 Legislation where this issue was presented and discussed. City Council discussed options for moving forward with changes to oil and gas regulations in light of SB 181. The minutes are included as an attachment. PROPOSAL The draft Ordinance includes a new section in Chapter 17.68 — Oil and Gas Regulations that requires registration for oil and gas operators at least thirty days prior to submission of an application. The registration requirement allows the City to understand and assess the capabilities of the operator to meet the obligations of the State and City regulations for oil and gas operations and to understand the scope of a possible application prior to accepting the application. The registration would also allow for implementation of a moratorium on applications. A moratorium provides adequate time for the City to assess the adequacy of its ordinance to protect the health, safety and welfare of its citizens, and safeguard the environment and wildlife resources as authorized by SB 181 and draft and adopt an updated ordinance. Any additional changes to the City's oil and gas regulations under Chapter 17.68 would be reviewed by the Planning Commission for recommendation to the City Council. Many surrounding jurisdictions are currently developing new regulations for oil and gas and are under moratoriums, including Superior, Lafayette, and Boulder County. The registration requirements included in the draft Ordinance require the provision of comprehensive information, including: • A good faith estimate of the number of well sites and wells the operator intents to drill in the following five years within the City Oil and Gas Operator Registration Page 3 of 3 PC — September 12, 2019 8