5th Am. to the U.S. Constitution:
No person shall be. . . .deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
Oil and Gas Cover Letter from ElCo Webposting 1-2-2013:
An “Oil and/or Gas Development Permit” may be obtained following one of two Special Permit review Processes:
Major facilities will follow the standard Special Use Review process as provided for in these regulations. (Approximately 5-6 month process)
or
Minor facilities may choose to apply as a standard Special Use Review process or may choose to follow an administrative process, provided a memorandum of understanding (MOU) with Elbert County is approved in conjunction. (Approximately 30-45 days)
It shall be Elbert County’s policy to encourage the use of a Memorandum of Understanding (MOU) with individual oil and gas production companies that are active within the County and are proposing a Minor Oil and/or Gas Facility.
OIL & GAS DRAFT REGS – Final for Public Hearings SUR PERMIT ZR PART II SECTIONS 26 1-2-2013:
Section 26.2 – Application Review & Permit Processing
B. POLICY STATEMENT – MEMORANDUM OF UNDERSTANDING (for Minor Oil and/or Gas
Facilities only)For those oil and gas production companies that choose not to enter into a MOU with Elbert County; the requirements of Section “E”, below, will apply.
E. PROCESSING OF A SPECIAL USE PERMIT APPLICATION FOR A MINOR OIL AND/OR GAS FACILITY (When the production company does NOT have an executed MOU with Elbert County) & FOR A MAJOR OIL AND/OR GAS FACILITY
The Special Use Permit process for a Minor Oil & Gas Development Permit in Elbert County when the oil/gas production company chooses not to enter into a MOU with Elbert County, or for obtaining a Major Oil & Gas Development Permit is as follows:
MEMORANDUM OF UNDERSTANDING O&G 1-2-2013 Final for Public Hearings:
ADDENDUM “A”
1. There shall be a minimum of 1,320 feet between the wellhead and any residential structure, domestic well or platted building envelope.
5 . . . Only closed-loop drilling systems shall be permitted in Elbert County for drilling and completion operations rather than open earthen pits.
Summary:
Terms in Elbert County’s proposed MOU are more restrictive than COGCC regulations.
Nothing prohibits Elbert County from seeking a voluntary agreement between energy developers and the county for more restrictive conditions of development. But this is hardly a voluntary agreement.
The above scheme threatens a longer (5 to 6 months), and much more expensive planning process for companies that do not agree to the more restrictive conditions in the MOU for their minor Oil and Gas facilities–the majority of the facilities. Community and Development Services is proposing treating all minor facilities under the process for major facilities if the developer does not kow tow to the terms of the MOU.
Where is the “just compensation” to developers and mineral interest owners who do not agree with Elbert County’s more restrictive Oil and Gas development conditions? Not only is there no “just compensation,” there are in fact penalties–added procedural costs and the lost time value of potential earnings.
For those developers who accept CDS’s coercive scheme, the MOU appears to have a few weak links–the adhesive forced circumstances constructed by Elbert County government that create a take-it-or-leave-it superior bargaining position, the requirement of the additional expense of closed loop systems, and the opportunity costs from land taken out of production due to the greatly expanded setbacks. Where is the “just compensation” for these takings?
While paying lip service to the governing regulatory laws of the State of Colorado promulgated by the COGCC, this sham MOU contract is clearly intended to subvert state regulatory authority.
This proposed scheme appears ripe for legal challenges from developers, stakeholders and the state. Didn’t Rowland and Ross both campaign on the claim that the (then) current BOCC had a propensity for spawning litigation against the county? It seems they’re rushing headlong into a much deeper quagmire.
B_Imperial