Residents voice opposition to south Loveland oil and gas development

“This project has gone through nearly a decade of planning and the MRG team feels that the project we are presenting this evening is the most protective of public health, safety, welfare and the environment to the greatest extent possible while still allowing for efficient mineral access.”

— Jessica Donahue, compliance and permitting specialist

A proposal by developer MRG LLC to develop an oil and gas well pad southeast of Loveland has some nearby residents concerned about potential impacts on local air and water quality, wildlife and the environment in general.

On Monday, many got a chance to express those concerns to the MRG project team at a virtual neighborhood meeting facilitated by the city of Loveland.

Representing the city was senior planner Troy Bliss, who is overseeing the project from the city’s side. He was assisted by attorney Matt Sura, a specialist in oil and gas matters consulting with the city on its process.

Sura gave a brief presentation on the city’s oil and gas application process for the project, as well as the review mandated by the Colorado Oil and Gas Conservation Commission (COGCC), both of which require a neighborhood meeting and a public hearing. There are also opportunities for residents to leave written feedback for reviewers, he explained.

The main event of the meeting was a presentation from MRG with more details about the proposed project, led by Jessica Donahue, a compliance and permitting specialist.

“This project has gone through nearly a decade of planning and the MRG team feels that the project we are presenting this evening is the most protective of public health, safety, welfare and the environment to the greatest extent possible while still allowing for efficient mineral access,” she told meeting participants.

According to Donahue, the production site will be located next to County Road 20E, just east of Loveland Sports Park. The parcel is owned by Mcwhinney, which has future plans for a Centerra West development in the area.

A total of 11 hydraulic fracturing or “fracking” wellbores will be drilled a mile deep, then extended horizontally from south to north for 4,500 feet, ending near Crossroads Boulevard. The drilling will be beneath some residential areas and Equalizer Lake, but no drilling will occur beneath Boyd Lake, Donahue said.

Construction of the pad is expected to take approximately three weeks, working during daylight hours only, she continued. A total of 13.3 acres will be disturbed during that process, though there will be extensive dust, noise and erosion control measures in effect to mitigate the activity. Once completed, the pad surface will be 6.7 acres.

The drilling process will take another three months, followed by completion and flowback for another three months. Production from the facility is expected to begin about nine months after breaking ground.

Donahue went on to explain MRG’S plans to mitigate other impacts from the construction and drilling process, and described “best practices” that the company employs above and beyond what the city or state requires. MRG will also repair most of the land disturbed during construction and then install trees and a landscape buffer to hide the industrial equipment.

She also explained that the team investigated four alternative sites for the project, including one to the south and one on the east side of Interstate 25. According to Donahue, the County Road 20E site was the only one with enough distance from schools, the Northern Colorado Regional Airport and critical wildlife habitats.

“MRG did look at numerous other locations, but due to the proximity to the airport and established development, none of them were more protective than the preferred site,” she said.

Donahue wrapped up her presentation by listing benefits that the project could provide to the city, including a boost in local employment and anticipated tax revenues of $40 million over the life of the wells.

The meeting opened to public comment following the MRG presentation, and, right away, the team faced challenging comments and questions from residents opposed to fracking within the city limits.

“I feel by allowing fracking this close, especially to Sports Park, is not too conducive to the health of our children,” longtime Loveland resident Evi Buckner-Opler commented.

Other commenters questioned the point of collecting resident feedback, since the city and state review processes are just making sure that the project is within regulations. Bliss replied that the application will also be reviewed by the city’s Planning Commission, which considers public sentiment during its deliberations.

Many commenters were concerned about the wells going underneath residential and open space in the Centerra Lakes area, and potentially having a negative impact on wildlife.

Commenter Harry Shivery was skeptical of the economic claims that Donahue made, and asked if MRG would grant the city any assurances about the millions in potential tax revenue.

“The carrot out there is more than $ 40 million,” Shivery said. “How we are sure that that carrot will ever be delivered?”

Bill Irwin, a consulting engineer for MRG, explained that the city’s gains from the development would come in the form of ad valorem and severance tax revenues, and conceded that there is a risk that the revenues could fall short due to fluctuating commodity prices.

Bliss said that the city has not yet received a formal application for the project from MRG, but there is preliminary information about it on the city’s oil and gas development website, at bit.ly/3iteq21.

A recording of the meeting will also be posted at the website, along with details about the city’s review process.

The city is currently reviewing another MRG application, for a 15-well pad site in east Loveland.