Berthoud Town Board 7/09/24

*A previous version was adjusted for name attribution and to clarify statements from Mayor Karspeck. See video time stamps included in the discussion of O&G regulations.*

For more information (including members in attendance) see the full notes document here.*

View the meeting agenda and packet.

A video recording of the meeting is available here.

From the Town website – “The Town of Berthoud is governed by a seven-member Board. The Mayor and Trustees are the policy makers elected to represent the community and to concentrate on policy issues that are responsive to the needs and wishes of the community. The Town of Berthoud is committed to transparent, collegial, ethical local government, and has adopted the "Town of Berthoud Code of Conduct for Elected Officials, Boards and Commissions" to provide guidance assisting Public Servants in the performance of their duties in a manner which serves the public interest and honors public trust.”

Public Comments

Several residents expressed concern about the concrete repair recently completed on streets connected to downtown Berthoud. One resident said the sidewalks in front of his house are already cracked. He decided to walk around the block and said he noticed numerous cracks, places where the corners don’t meet correctly, and even some chunks of broken concrete. He asked the board if an inspection was done yet, and whether final payment was made to the contractor. Town Clerk Samora said a final inspection was performed and he has a punch list of defective workmanship that the vendor must take care of before receiving final payment. 

The consent agenda was unanimously approved. 

1. July 9, 2024, meeting agenda
2. June 25, 2024, meeting minutes
3. The May 2024 financial information (packet)

The owner of Hinkle & Company, Jim Hinkle, reviewed the final 2023 financial audit. Hinkle said Berthoud’s financials are in good shape. The town followed General Accounting Practices (GAAP). Hinkle said in his communication letter finalizing the audit there was nothing negative to report, there were no management disagreements, and no adjustments had been made to the financials. Hinkle believed the town was openly transparent, and provided all the documents and interviews he asked for in a timely manner.  

The discussion about revised oil & gas regulations was moved up from the last item on the agenda to the second item. The board wanted to allow ample time for the numerous residents in attendance to speak.  

Attorney Foote has been working on revising Berthoud’s policy on oil & gas regulations. Beginning June 28, 2022, 8 meetings have taken place with discussions on the policy. 

Foote gave an overview of the policy, reviewed the ordinance summary, and listed 4 main changes from the last meeting held May 28, 2024. Foote said his team looked at the state regulations and other jurisdictions policies within Colorado for guidance (a few of those are Erie, Dacono, Larimer County, Broomfield and Superior). Full documentation of policy changes in red is in the packet on pages 138 – 197. Below is a summary of some of the Ordinance rules and changes.

Ordinances:

1. Location restrictions: a well can only be placed in agriculture or industrial zoning districts. The setback must be 2,000’ from the boundary of the well to the property line of a residence. 
2. Health, safety and environmental protection must be cross-referenced in a development agreement. If the development agreement does not adequately protect wildlife and the environment, an alternative location analysis must be performed.  
3. Berthoud’s insurance policy would be the strictest in the state of Colorado with financial assurance of $100,000 per well for plugging and reclamation. 
4. Inspections, enforcement and fines allow the town to perform its own inspections. Penalties for non-compliance would be up to $15,000 per offense. The penalty set by the Colorado Oil & Gas Conservation Commission (COGCC) has been $1,000 per day up to a maximum of $10,000. In July 2024, the COGCC decided to increase the penalty up to a $15,000 cap.  

Policy Changes:

Change #1 – Foote updated the definition of cumulative impacts to match the state’s definition regarding land use, public health, safety, and welfare, environment, and impact to wildlife.

Change #2 – A homeowner, who agrees under informed consent, will be allowed a setback of 1,000’ instead of 2,000’. 

Change #3 – Emissions testing is modified to include continuous monitoring for up to 3 years after start of production. 

Change #4 – Foote said storage tanks increase emissions. This policy will eliminate the use of storage tanks. Material will be trucked out of the area for storage. If that’s not feasible, the use of tanks will have to be minimized. 

Numerous residents commented on fracking and oil & gas wells.

1. One resident asked how chemicals can be monitored when the oil & gas companies don’t disclose all the chemicals they’re using?
2. Several residents asked, while everyone is being asked to conserve water, why is the oil & gas industry allowed to pump millions of gallons of water into their fracking wells? One resident also pointed out that the water pumped into wells is forever out of the water cycle. It cannot be recycled or reused. 
3. One resident said the money the town will receive as a royalty on wells, up to $80,000 per well in some cases, should not be important enough to give away the town’s water.
4. A resident talked about the damage to the roadways from trucks used to haul away the material. Who will pay for that, he asked?
5. A resident asked the board to look at the bigger picture. Just this last week, he said, there has been the biggest, earliest season hurricane, record temperatures, and wildfires. He wanted to know why we are producing more fossil fuel.
6. A resident told the board members to watch the documentary Fracking, The System, an award-winning documentary, before making their decision.  

Mayor Karspeck asked where the water comes from that’s pumped into the wells. Town Clerk Samora said it would not be town water. He said Well operators typically use larger water districts, such as the Thompson River. 

Town Administrator/Trustee Kurtz had a question about where water sources end. “If the water sources stop at town boundaries, how do you separate the water boundaries?”

Trustee Wing asked, “If an agriculture owner wants an Oil & Gas well on their property, will there be a lawsuit if the town rejects the Oil & Gas application?” Foote responded that to his knowledge this scenario has not been tested yet, so he doesn’t have an answer. 

Most of the trustees agreed that this policy has been under review long enough and it’s time to decide on either a total ban or accept the policy revisions. Mayor Karspeck said over the last 2 years he’s been on tours with environmentalists, sat on panel discussions, and the $70,000 is not driving the board’s decision. Karspeck said he’s happy with the new policy. It protects the residents and the surrounding environment. The policy can always be updated later if needed. 

Trustee Kurtz requested an amendment to the policy. Kurtz wants to have wetlands included as a water source with a 2,000’ setback.  

The revised oil & gas policy was unanimously approved and included Trustee Kurtz amendment to protect wetlands as a water source with a 2,000’ setback.

Kim Watkins and Phyllis Resnick, Executive Director of Colorado Futures Center, reported on potential negative impacts to Berthoud if the proposed rail service from Pueblo to Fort Collins doesn’t stop in Berthoud. She said residents of Berthoud would still be paying taxes to support the rail service without reaping any benefits of additional traffic, spending and increased tax revenues. 

The town board unanimously approved the appointment of Kari Wiesen to the Parks, Open Space, Recreation, and Trails (PORT) Advisory Committee.  

The meeting was adjourned at approximately 11:00 p.m. 

Next meeting is July 23, 2024, at 6:30 p.m. via Zoom, or in-person at 807 Mountain Ave., Town Board Room, Berthoud, CO 

Questions To Consider

Are some well applications pending for Berthoud? How much more lenient are the rules beyond Berthoud that the board’s fears could come into play?

*Citizen Observers further the commitment of the League of Women Voters to its principle of Citizens Right to Know, however, we are not acting as journalists. Omissions and errors are possible. It is assumed that users of this information are responsible for their own fact-checking. This could include contacting a government clerk, conversing with an elected official or staff, and/or asking us to speak to the Observer who attended.