| Council lets oil companies off hook despite harsh words
By Steve Lynn The Farmington Daily Times
9/10/2009
FARMINGTON City councilors, arguing late into Tuesday night's meeting, blasted two oil and gas companies accused of commissioning construction of an illegal fence that a man contends blocked access to his property.
"Quite frankly, I'm mad about it," Councilman Jason Sandel said. "It's astounding to me that this goes on inside our community."
Despite chiding from Sandel and other councilors at Tuesday's meeting, the city will let Energen Resources Corporation and XTO Energy Inc. relocate the fence they are accused of commissioning Fence Tech LLC to build around their natural gas wells without a permit in May 2008.
The decision also lets the oil and gas companies keep changes to the wells they allegedly made without permits from the city of Farmington.
City law requires companies to seek a permit before they expand wells, and then they must seek building permits for fences.
The narrow 3-2 vote reversed a decision last month by councilors to deny permits for the companies. Councilors agreed to reconsider last month's decision after a request by Mayor Bill Standley, who said he did not receive adequate information before he cast his original tie-breaking vote.
"There's no question that this is an emotional topic for the surface owner and members of the council," Standley said.
Emotional indeed: Councilman George Sharpe left the room after he aggressively questioned councilors' vote last month. He apologized.
Tuesday night Sharpe rebuffed Sandel for harshly criticizing the companies.
"You need to be careful, councilor," Sharpe told Sandel.
When councilors were split Tuesday night, Standley reversed his original vote and sided with councilors Dan Darnell and Sharpe at Tuesday night's meeting. Sandel and Councilwoman Mary Fischer voted against granting the permits.
"This is probably one of the toughest tie-breaking votes I've had because I can see both sides," Standley said.
Standley said similar situations would not occur in the future and he called for tougher penalties for people who build without permits.
Energen and XTO allegedly commissioned construction of the illegal fence on property owned by Dr. Robert Lehmer and Tom Dugan, president of Dugan Production Corp.
Dugan said neither Energen nor XTO contacted him before the fence was built on land he has owned for 50 years.
"You think somebody would come talk to me, wouldn't you?" Dugan said. "It's not a big thing. We're all friends. But they have been kind of sloppy about this little thing."
The adjoining wells, one operated by Energen and drilled in 1980 and the other operated by XTO and drilled in 1998, existed on the property with a fence before the city of Farmington annexed the land into its boundaries, according to the city. The new fence enclosed a greater amount of land around the wells, near Pi-on Hills Boulevard and Daybreak Drive.
Neither company was ticketed and Fischer asked city staffers why.
"I can't understand why the city took the position that it took in saying, "It's OK to break the law,'" Fischer said. "To me, it's just completely unacceptable."
Sharpe defended city staffers, saying the city's policy is to work through violations with people before giving tickets and requiring fences to be removed.
Energen and XTO built the new fence for public health and safety reasons and the equipment was moved for employees' safety, Energen attorney Rick Tully said.
XTO believed it legally could make changes to its well without the city's permission, said Kyla Vaughan, of XTO. She acknowledged the company made mistakes.
"It's not acceptable to us that we did not get a permit to build that fence," she said. "We want to do what we need to do to make things right."
The companies agreed to relocate the fence almost 30 feet away from the road on Lehmer's property, and XTO could pay a portion of attorneys fees Lehmer accumulated fighting the fence. Energen has declined to reimburse Lehmer for legal costs, Lehmer said.
Lehmer has declined to say how much he has spent on the battle. He asked councilors to require the companies to return the fence to its original location unless Energen reimbursed him for his legal expenses, according to a Sept. 2 letter he wrote Standley.
Councilors should vote against the permits also to punish the companies, he wrote.
Requiring the companies to return the fence to its original location would be counterproductive, Sharpe said.
Councilors should base their decision on the fact that Lehmer and the companies agreed where the fence should be relocated, he said.
"I feel Energen should step forward and compensate the Lehmers," he said. "Unfortunately, that's not our decision."
Councilors could not order the companies to pay the Lehmers' legal bills, City Attorney Jay Burnham said.
Sandel criticized Fence Tech LLC, the Farmington company that built the fence.
"We ought to be a community of law-abiding citizens," he said.
The city "red-tagged" the fence in July 2008 when city staffers learned about it, according to the city. Fence Tech then sought a permit, but the city denied the company.
A Fence Tech representative did not respond to a request for comment.
Seth Bingham, Lehmer's attorney, told councilors they would send a message to oil and gas companies to follow the law by voting against the permits and requiring the companies to start over.
"It's a matter of principle," Bingham said.
Councilman Dan Darnell disagreed, saying the same problems would resurface if the companies had to reapply for permits.
"Do we want to create another hassle?" he said.
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