Loveland’s First Oil and Gas Application Granted Conditional Approval

 The East (CE) Well Pad application, submitted by MRG, LLC, a subsidiary of McWhinney, has been conditionally approved under the City of Loveland’s enhanced oil and gas standards.

This application was the first oil and gas development application submitted to the City under the Unified Development Code (UDC) and met the minimum criteria needed for administrative approval through track 2 of the City’s decision making process for oil and gas development. An administrative decision is only available for applications that meet location requirements and adhere to enhanced air quality and noise standards. Developments must also be approved by the Colorado Energy and Carbon Management Commission (ECMC), formerly the Colorado Oil and Gas Conservation Commission (COGCC).

Development Services Director Brett Limbaugh approved the project after an extensive year-long review process by the City’s multi-departmental review team.

The review involved public input, consultations with Loveland Fire & Rescue Authority, Larimer County, and outside experts, including legal counsel, ECMC staff, and Colorado Department of Public Health and Environment staff. ECMC’s more stringent regulations passed as a result of Senate Bill 19-181 were also taken into consideration.

“The file on this matter is extensive and addresses issues such as emergency response, landscaping, interim reclamation, stormwater controls, noise mitigation, dust mitigation, and air quality protections,” said Limbaugh in his decision letter. “City staff put forward 23 conditions of approval that are now binding on this operator. Additional conditions this permit requires are, in some cases, more protective than state regulations.”

Mandatory conditions of approval that are more protective than state regulations include:

• All wells will be drilled with electric drill rigs.
• Pipelines will be used to transport the oil and gas, eliminating truck trips to the facility.
• The site will utilize a “tankless design.”
• The production facility will use electricity for all motors and pneumatic devices.
• Hydraulic fracturing and heavy construction equipment that cannot be electrified will use the lowest-emitting Tier IV engines.
• The operator will assign employees to respond to all complaints 24 hours a day, seven days a week. Complaints are to be resolved within 24 hours.
• The operator will provide weekly electronic progress reports to the City of Loveland Local Governmental Designee during the project’s initial construction, drilling, completion, and first year of production phases. The weekly report will describe any reportable spills, accidents, alleged violations, or complaints.
• The operator will perform a baseline air quality monitoring survey before beginning any drilling operations, and the site will have continuous air monitoring for VOC and methane during the drilling, completion, and first three years of production operations.

The MRG CE Pad is located east of Interstate 25, north of Highway 34 (E. Eisenhower Boulevard), and west of N. County Road 3 in a developing area known as Kinston Centerra.

Now that the City’s approval process is complete, the application continues through the ECMC (formerly known as the Colorado Oil and Gas Conservation Commission) for state approval before receiving a permit to begin operations. Follow that process through ECMC by accessing the ECMC Hearing eFiling System; search type: “DNRCOG Search for Docket Related Documents” for docket number 220700198.

Find application documents and other oil and gas information in the City of Loveland at LovGov.org/OilandGas.