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Commission recesses oil-and-gas zoning hearing after extensive industry input on road fees and CUP rules

Duchesne County Commission · October 21, 2024
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Summary

After hours of testimony and redlines from operators, commissioners recessed the public hearing on ordinance 24-409 (oil and gas CUP and related definitions) to Nov. 18 to allow staff, counsel and stakeholders to reconcile language — notably the transportation mitigation fee and exemptions for vertical wells and gravel roads.

The Duchesne County Commission reopened a lengthy public hearing on proposed changes to the county zoning code (Ord. 24‑409) that would require conditional‑use permits for oil‑and‑gas drilling and related facilities and expand the definition to include compressor stations and water‑handling operations.

Staff framed the amendments as a response to increased drilling activity and community concerns, saying the draft would move such facilities from being outright permitted to requiring a CUP in all zoning districts and would add compressor and water‑handling facilities to the definition of regulated development. The proposed ordinance also references a transportation mitigation fee; staff said the ordinance itself refers to a fee but that the precise fee formula and any exemptions would be established later by separate action.

Industry representatives — including the Utah Petroleum Association and local operators — presented negotiated redlines to the draft and described a package of changes they said are necessary for clarity and fairness. Among the main industry requests were: exempting vertical wells and gravel roads from the transportation fee, limiting the fee to paved roads, capping mileage charged per well, timing adjustments to avoid charging fees on speculative permits, and a three‑year review to update formulas.

County staff and commissioners described the fee as intended to offset road impacts and said state law requires fees be used for the department or purpose for which they are collected. Commissioners expressed a desire to capture the fee formula in code language that ensures funds are directed to impacted roads while acknowledging the complexity of timing and exemptions. Several industry speakers warned that charging fees at permit filing rather than at the time of construction could be punitive if companies hold a backlog of permitted wells that are not developed.

After extensive back‑and‑forth, commissioners moved and voted unanimously to recess the hearing to Nov. 18, 2024 at 11:00 a.m. to allow staff, legal counsel and stakeholders to reconcile the redline language and fee mechanics.

No final zoning change was adopted; staff will return with revised language and potential separate actions on fee mechanics and transportation‑master‑plan amendments for public hearing and review.