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Oil and gas rules spark discussion at Loveland City Council

Oil well storage tanks sit in a field southwest of Larimer County Road 9 and County Road 16 on Wednesday in Loveland. Magpie Operating Inc. is planning to drill about 60 horizontal oil and gas wells southeast of Loveland beginning in 2019 and continuing for five years, according to petroleum engineer Sam Bradley.
Jenny Sparks / Loveland Reporter-Herald
Oil well storage tanks sit in a field southwest of Larimer County Road 9 and County Road 16 on Wednesday in Loveland. Magpie Operating Inc. is planning to drill about 60 horizontal oil and gas wells southeast of Loveland beginning in 2019 and continuing for five years, according to petroleum engineer Sam Bradley.
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Eleven weeks after passing a six-month moratorium on oil and gas development applications, Loveland City Council got its first look at a slate of proposed amendments to city rules and regulations at a study session on Tuesday.

In a discussion that was sometimes contentious, council members expressed a mix of views about the stricter rules, the presentation and how to move forward.

“I’d say in general, I’m going to be going for the most strict in all of the categories,” said Mayor Jacki Marsh.

The discussion was preceded by an hour of public comment that was split between supporters of the stronger rules and those who spoke on behalf of the oil and gas industry, including a representative from the Colorado Oil and Gas Association, who compared the stricter rules to an effective ban.

Others opposed to the new rules pointed to revenues that oil and gas development has brought to Colorado, and asked the city not to limit the chances for local residents to earn some of it.

Other commenters questioned the necessity of imposing more regulations, when the state and county have strict rules already.

Commenters in favor of the new rules cited environmental concerns, especially air quality.

“Government is supposed to be looking out for the health and welfare of people,” said Loveland resident George Garklavs. “And at least having enough air quality monitors to make sure that things are working the way that you’re supposed to be working is the way to go.”

Delivering the presentation on the new rules were city Development Services Director Brett Limbaugh, Deputy City Attorney Vince Junglas and Matt Sura, an oil and gas attorney that represents municipal interests.

Junglas said that the update team looked to Larimer County’s regulations, and then tried to refine those standards to fit Loveland.

What emerged was a list of proposed updates that match or exceed the county’s rules. Among the potential changes are a ban on oil and gas development in residential zones and increased setbacks from what Junglas called “high-risk” areas, such as schools, day care centers, hospitals, high occupancy buildings, or senior living facilities.

Also proposed is a new “standards document” for air quality, water quality and safety regulations that are based on industry best practices.

The ensuing discussion among the City Council members proceeded mostly along predictable lines, though there some exceptions.

Marsh and Councilor Laura Light-Kovacs both spoke enthusiastically about the changes and urged staff to go even stricter.

On the opposite side of the table were Councilors Steve Olson and Dana Foley, who questioned anti-fracking claims and said the proposed standards go to far. Olson later said he would support amendments that match the county’s.

Councilor Andrea Samson was also critical of the new rules, and questioned the decision-making process behind the proposed update, saying a presenter with an opposing viewpoint would have been useful during the presentation.

If there was only a loose consensus on the new rules and extending the moratorium, the City Council did come to a stronger consensus about launching a public outreach campaign that will take the rules to the voters.

According to city Communications and Engagement Manager Nicole Yost, the 60-day effort will include town hall meetings and public hearings before the Planning Commission and City Council.  It is scheduled to launch next month.