City of Loveland approves McWhinney’s east Loveland oil and gas application

The City of Loveland has conditionally approved an oil and gas well pad plan from a company associated with McWhinney Real Estates Services Inc., a plan that will next be reviewed by a statewide organization.

MRG LLC submitted its application for the East Well Pad — which would be located east of Interstate 25, north of U.S. 34 and west of North County Road 3 in east Loveland — at the end of 2022. According to previous reporting from the Reporter-Herald, the proposed site would house 15 wells drilled a mile underground that stretched 7,900 feet to the west under I-25.

The application, which was the first oil and gas development application submitted under Loveland’s Unified Development Code, was ruled to meet the criteria needed for administrative approval through track 2 of the City’s decision making process for such developments, according to a Monday release from the city; applications must meet location requirements and adhere to “enhanced air quality and noise standards” for administrative decision, the release added.

“We are pleased the City of Loveland has approved MRG’s project,” said Trisha Fanning, president at Ardor Environmental on behalf of MRG, in an email to the Reporter-Herald. “The top-of-the-line technology MRG will use is beyond what is required by state and local law, and MRG is committed to employing these practices to reduce emissions and other impacts, while creating the energy we all rely on every day.”

Along with local rules, developments must also be approved by the Colorado Energy and Carbon Management Commission, formerly the Colorado Oil and Gas Conservation Commission.

Development Services Director Brett Limbaugh approved the project after “an extensive year-long review process by the City’s multi-departmental review team,” the release said. This review process, the release added, included public input as well as consultations with Loveland Fire and Rescue Authority, Larimer County and outside experts, such as legal counsel, ECMC staff and Colorado Department of Public Health and Environment staff; ECMC’s “more stringent regulations” that passed with Senate Bill 19-181 were also considered.

“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,” Limbaugh said 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.”

The approval came with a number of conditions the city’s release described as “more protective than state regulations.” These conditions included:

• All wells will be drilled with electric drill rigs.

• Pipelines will be used to transport the oil and gas to eliminate truck trips to a facility.

• The site will use 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 instead use low-emitting Tier IV engines.

• The operator will assign employees to respond to all complaints 24 hours a day and seven days a week and complaints will 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. This 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.

With the city’s approval complete the application will now move on to the ECMC for state approval before receiving any permits to begin operations, the release said. The process can be followed through the commission’s hearing e-filing system by searching in the DNRCOG search for Docket Related Documents with the docket number 220700198.

Fanning added that operations are planned to commence in 2024.

MRG originally submitted letters of intent for two pad locations in early 2022, the site east of I-25 as well as another west of the interstate and south of U.S. 34 about a half of a mile south of Target. However, in May MRG announced it would relinquish its surface rights to the pad if the Loveland City Council approved of the Centerra South urban renewal plan, which the group ultimately did.

The announcement of this plan last year led to frustration for many Loveland residents, resulting in multiple gatherings and protests, including one in Dwayne Webster Park in April and another in front of the Loveland Visitor Center in May.

Sign up for email newsletters