SUBJECT: General Business
Title
A Resolution of the Town Council of the Town of Erie Approving the First Amendment to the Development Agreement for Erie Highlands Filing 16
Body
DEPARTMENT: Planning and Development
PRESENTER: David Frank, Energy & Environmental Program Specialist
Harry Brennan, Senior Planner
POLICY ISSUES:
Staff’s analysis indicates the proposed DA Amendment is consistent with Town Charter, Municipal Code, and the Council’s priorities. Additionally, the amendment to the DA supports the overall health and safety of the community by ensuring re-plugging of an abandoned well on-site.
STAFF RECOMMENDATION:
Recommendation
Approve the First Amendment to Development Agreement for Erie Highlands Filing 16.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Town Council approved the original Erie Highlands Filing 16 Final Plat and Development Agreement in January 2021. During subsequent construction in the area, soil vapor sampling detected the presence of methane in the soil around a previously plugged and abandoned gas well. Town staff suspected the presence of methane indicated the well’s plug was failing. Staff worked with the Developer to address the leak and agree to re-plug and re-abandon the well in accordance with current regulatory standards. This First Amendment reflects provisions negotiated by Town staff with the Town Attorney’s counsel and the property owner, Clayton Properties Group Inc. d/b/a Oakwood Homes.
The First Amendment includes provisions related to the re-plugging of the well:
• Developer shall hire a duly qualified and certified contractor to re-plug and re-abandon the well in accordance with current Colorado Energy and Carbon Management Commission (ECMC) regulations;
• Developer shall require its contractor to request an ECMC inspector to be present during the re-plugging activities;
• After the well is re-plugged and re-abandoned in accordance with current ECMC regulations, Developer shall submit the ECMC approved Subsequent Report of Abandonment to the Town; and
• Prior to the issuance of any certificate of occupancy for buildings located in Block 4, the re-plugging initiatives shall be fully completed.
Continuation Update for 4/23 Public Hearing
The Town Council voted to move this agenda item from the Consent Agenda on April 9, 2024 to General Business on April 23, 2024. The Council posed questions regarding the nature and content of the DA, to be addressed at the April 23, 2024, meeting, including:
• The Oil & Gas setback requirements that were applicable when the associated Erie Highlands Filing 16 Final Plat and original Development Agreement were approved; and
• The notice requirements for nearby properties regarding the status of the Oil & Gas well in question as well as impacts from the re-plugging work.
Legal counsel advised that the Oil & Gas setbacks could not be altered/updated to the Town’s current Oil & Gas setbacks as the applicant has vested rights under the prior Oil & Gas setbacks. Town Environmental Services staff provide regular updates on Oil & Gas activities throughout the Town through a town-wide listserv. These updates have included multiple notices regarding the Oil & Gas well addressed in this DA Amendment over the last year.
ACTION ITEMS:
The Town Council is the approval body for the First Amendment to Development Agreement.
COUNCIL PRIORITY(S) ADDRESSED:
ü Safe and Healthy Community
ATTACHMENTS:
1. Approval Resolution
2. First Amendment to Development Agreement for Erie Highlands Filing 16
3. Staff Presentation