Oil and Gas

• Can the City of Loveland permanently ban oil and gas development within City limits?

  Very likely no. Senate Bill 19-181 did not provide local governments with the explicit authority to ban oil and gas development.  When the bill was being debated, the bill’s sponsors stated that it was not the intent of the legislation to ban oil and gas development. While Senate Bill 19-181 has not been litigated, past court decisions have disapproved of oil and gas development bans. Senate Bill 19-181 gave local governments broad new authority to regulate and restrict oil and gas development to protect public health and safety and the environment.  Numerous local governments have implemented short-term moratoriums to allow for a "time out" to write and implement oil and gas regulations. However, no local governments in Colorado have banned oil and gas development.

• Since ECMC has tightened its rules on setbacks, which rules (city or state) take precedence if permits were applied for today?

  An oil and gas company must comply with local and state regulations by receiving state and local permits (the City of Loveland has a local permit requirement). ECMC has clarified that its rules and conditions are considered the minimum standard. Local governments may enact regulations as long as they meet or are stricter than the state's minimum requirements.

• When oil and gas regulations change at the local level, or at the state level, which standards are used to review and approve project applications?

  The application is reviewed using the approved local and state regulations in place at the time the initial application was submitted. Regulations implemented after an application for an oil and gas project is received may not apply to that specific project, but could be considered in the application process.

• If well platforms are moved slightly outside city limits, what controls would the City of Loveland have over horizontal drilling occurring under properties within city limits?

  None. Senate Bill 19-181 is very clear that ECMC, not local governments, has jurisdiction over what are referred to as downhole impacts. Local governments have co-authority with the ECMC over surface impacts of the oil and gas industry within city limits.

• Who receives the revenue if well platforms are moved slightly outside city limits?

  Any revenue generated by a local government from oil and gas would be through property tax revenue. Property tax revenue is based on the location of the wellhead. That means that if oil and gas development is producing minerals within one jurisdiction (say, the City of Loveland), but the wellhead is in another jurisdiction (such as Larimer County), then the wellhead's location would get the tax revenue.

• What is the anticipated length of time to process an oil and gas application under the City's current code using the fast track process?

  It is important to know that the City requires any oil and gas application within city limits to also be approved by the Colorado Energy and Carbon Management Commission (ECMC), formally known as the Colorado Oil and Gas Conservation Commission (COGCC). That process can affect the timing of Loveland’s application review process. The Track 2 process requiring Director of Development Services approval could take approximately 4-6 months. The Track 2 approval process for the CE pad, which is the first oil and gas development application under the City’s UDC, took more than year including public input, the Development Review process and alignment with the state’s approval process. As Loveland’s first application with the enhanced guidelines, it was important to take time and ensure the process was thorough and transparent.

• What is the anticipated length of time to process an oil and gas application under the City's current code without the fast track process?

  It is important to know that the City requires any oil and gas application within city limits to also be approved by the Colorado Energy and Carbon Management Commission (ECMC), formally known as the Colorado Oil and Gas Conservation Commission (COGCC). That process can affect the timing of Loveland’s application review process. Typically, the Track 3 process requiring Planning Commission approval (mentioned in the Local Regulations section) would take six months for staff review, staff report preparation, and public notice before the application could be ready for a public hearing before the Planning Commission. An additional three months may be needed to prepare the application and staff report for an appeal to City Council.

• After an application is approved through the City, what are the next steps?

  Once the City's approval process is complete, an application would continue through the ECMC (formerly known as the COGCC) for state approval before receiving a permit to begin operations. If the state approves the application, then the applicant would need to submit a permit through the City of Loveland’s Development Center and begin the process of working through other planning and building requirements to move a project forward.