Title
Oil and Gas Impact Fee Study
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Summary and Background Information:
The City currently collects road impact fees on new residential, commercial, office and industrial developments using a fee schedule applied to those uses. Oil and gas development is not currently included in the impact fee schedule. Several other area jurisdictions, including Adams County, have recently implemented or studied transportation impact fees for oil and gas development. In assessing impacts and defensible fees for oil and gas two unique characteristics of the industry need to be considered:
• The impact on roads is primarily attributed to the weight of trucks, not merely the number of vehicles.
• Much of the impact occurs during the early development phase for oil and gas wells and pads.
The City engaged Felsburg Holt & Ullevig in late 2018 to conduct an Oil & Gas Transportation Impact Study with project management by the Public Works and Community Development departments. Study objectives include:
• Estimate general magnitude of oil and gas truck traffic per pad and well
• Identify impacts of oil and gas traffic on Commerce City roads
• Calculate an oil and gas impact fee per pad and per well to allow the City to offset impacts to the City road system
• Incorporate reductions for pipelines that replace truck trips
The purpose of the June 17 study session is to provide the City Council with an overview of the study process and methodology, the proposed fee structure, and receive feedback from the City Council on this process. The full impact report (attached) provides the following:
• A recommendation to City Council for maximum defensible fees,
• A detail model and methodology for such recommendations,
• A fee per pad, and fee per well recommendation,
• And varying f...
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