For the first time in Greeley, local oil and gas companies are paying for their industry’s impact to the city infrastructure.
The city of Greeley last year implemented development fees for oil and gas operations, applied to every well developed in city limits. Development impact fees are a way for growth to pay for growth; developers typically pay on their building permits fees to help the city pay for additional pay water and sewer, parks and recreation, transportation and public safety infrastructure to accommodate the growth the developments bring. Oil and gas was added last year for the first time since development fees began in 2000.
“It’s a one-time fee and it’s when they drill they have to pay that,” said Brad Mueller, director of community development for the city of Greeley. “People will look at that number and say that it’s too low — that the impact on the roads is very big. But, that is a scientifically figured number.”
The fee is $1,999 per well. Pertaining to the oil industry, that fee helps to pay for transportation, police and fire expenses.