TOWN OF COOKS VALLEY
Special Town Board Meeting
March 28, 2016
The Special Town Board meeting of the Town of Cooks Valley was called to order on March 28, 2016 at the Cooks Valley town hall located at 15751 40th Street at 9:00 am by Chairman Darrel Fehr. Supervisors present were David Clements and Matt Borofka. Other town official present was Victoria Trinko-clerk.
Discussion of terms of possible development of usage of 135th Avenue by PurFrac: There was an introduction of members attending from PurFrac and EOG. A proposal was given by Darrel Fehr that a percentage of tons hauled from each mine would determine the amount each company would pay for maintenance of 135th Avenue.
David Clements explained in the original road agreement with EOG, the life expectancy of the road was determined by the maximum of usage with the projected life expectancy being 20 years, at which time the road would be rated and upgraded and returned to the original life expectancy of the road before it was upgraded. If there was extra plowing, salting, that amount would have to be split between the companies. But if the year end expectancy is less than projected, who would pay to have the town take over?
EOG expressed their view that they paid for the road; therefore, they would like to have the maximum length of time for it. Also they should have compensation for the less amount of usage due to extra trucking by PurFrac. Up until this time, EOG has not considered a road agreement due to PurFrac having not applied for a reclamation plan and therefore negotiations were not pertinent.
Darrel Fehr felt the two companies need to sit down and have an agreement worked out between themselves before they present their package to the board rather than involving the Town of Cooks Valley and the town’s lawyer and the county.
The county did a study prior to the building of the road and now has done borings to determine the rating of the road at the present time. This study has not been completed by the county. There is little room for widening the road.
EOG and the board worked up a road agreement prior to their mining permit application and the board would like a road agreement presented by PurFrac before they came to the board with their mining permit application. This agreement would need to be negotiated between PurFrac and EOG prior to coming before the board.
The reclamation plan application for PurFrac will be discussed a public hearing on April 19, 2016 at the courthouse.
Question: Why not come through Loran’s Zwiefelhofer’s field for their access to a road from the mine. Jane Sonnentag did not want traffic on County Highway DD plus traffic from 135th Avenue. Question: Would a possible route be from 135th Avenue north on County Highway DD to County Highway A. The County preferred the route to go on 135th Avenue to State Highway 40 and rather keep truck traffic off County Highway A due to Chippewa Sands hauling on County Highway A.
A recommendation from Darrel Fehr was for the two companies to come up with road maintenance agreement between themselves.
David Clements proposed the possibility of a consolidation of one agreement from the two road agreements.
PurFrac has a payment plan to contribute into a fund until there is ample money to replace the road and then only pay for salt, plowing and maintenance after the ample funds are accumulated.
Bruce Durand offered a possible time line of 90 days to have the agreement worked out.
Question: Will you ask for a mining permit before the road agreement is solved? The feeling is the board will not approve the permit without the road agreement.
Bruce Durand did not feel it was fair that the permit be contingent on the road agreement as EOG could refuse to accept a road agreement and PurFrac would not be able to obtain a permit. He felt they are two businesses that need to work together or a third party would have to negotiate the differences.
Darrel Fehr asked for updates on the agreement during negotiations.
Bruce Durand: The railroad spur is finishing by June 1st and then they will be working on the infrastructure. The Commissioner of Rail has agreed to the rail spur in November 2016. The market is low so PurFrac may not have the tonnage rates as initially proposed at previous meetings. If the market continues to be low, production may not begin until 2017.
Mark Berge asked if there would be an informational meeting an hour prior to the public hearing to inform the public about their plans. PurFrac did not confirm this request.
Adjourn: Darrel Fehr made a motion to adjourn at 9:35 am. David Clements seconded the motion. The motion carried 3-0.
Typed: March 29, 2016 Respectfully submitted
Approved: April 11, 2016 Victoria Trinko -Town Clerk