David Yadon with KODA Middle Fork Energy, Sandee Pummell, Heather Ivie with Kinder Morgan, Paxton Mars, Lauren Brown, and Teisha Black with XCL Resources, Don Bromley, Scott Duncan with XCL Resource, Macey Wallace, and Cody McNeece with Ovintiv, JD Kelser with Parsons Behle & Latimer.

Discussion of Ordinance #24-409; An Ordinance Amending Title 8, Chapters 2, 6, and 13 of the Duchesne County Zoning Ordinance Regarding Oil & Gas Drilling and Production Facilities

Mike Hawley with Jones & DeMille introduced himself and Brock Harrison. He presented a PowerPoint presentation on Roadway Costs from Industry Traffic. He talked about the AASHTO 1993 road test pavement design method and methodology, what the roads are like now, how many trucks there are and the impact, how much the paved roads and gravel roads cost, the cost of energy impacts, how the cost of paved roads and gravel roads should be calculated, and whether these costs offset the impacts.

Scott Ducan with XCL Resources asked for clarification on the typical affected roadway cost. Mike Hawley with Jones & DeMille Engineering explained the proposed formula.

Zane Lay with Ovintiv said, “Thank you for providing the formula; that is what they were asking for.” He is concerned with the “paved road replacement cost per mile.” The formula is the cost of a new road or replacement, which should be lower than what is being presented. He is also concerned that there is a formula for gravel roads, not just paved, as presented during the other working sessions.

He would also like the ordinance to designate the funds for the roads, not another project.

Mike Hawley with Jones & DeMille Engineering explained how the numbers were determined for new and existing roads. The formula calculates the industry at 2.3% of the traffic.

Scott Duncan with XCL Resources asked how you can ensure that the industry is not double-charged. The formula accounts for the number of predicted trucks on the road for each location.

Zane Lay with Ovintiv asked why the formula is for the replacement cost, not maintenance. He disagrees with the formula and says it is unfair to consider every road a total replacement and not a repair.

Scott Duncan with XCL Resources said there needs to be balance. The industry is trying to do its part to help fix the roads destroyed by the truck traffic.

Jake Woodland with Wasatch Energy Management said this has been a productive conversation. He asked why the formula uses the full replacement cost instead of a repair cost and what the average cost to armor the road would be. Wasatch Energy Management is one of the smallest in the industry, and if he had to pay the fee for a location that is 5.2 miles of pavement with the proposed formula, it would pay for the road to be replaced in 2.5 years.

The parties discussed what the industry would be willing to pay and what other States or Counties have in place.

Don Bromley with Ovintiv would like a copy of the Jones & DeMille presentation. It may help determine a more fair number.

Brock Harris with Jones & DeMille Engineering will send it via email, which can be shared with the industry.

Lauren Brown with XCL Resources said she has seen a per-well tier formula used in another state.