The URL can be used to link to this page

WS Item 3ABC (6) Gas & Oil Well Drilling CP 07-005 ( Discussion Only) Ordinance 480- RRR ( 1st Reading ) Ordinance 880-A ( 1st Reading ) Integrity ♦ latabiliork Background • City adopted zoning and city ORDINANCE NO-NOOFFICIAL RECORD code ordinance AN ORDNANCE OF THE CITY OF SOUTHLAKE. TEXAS. REGULATING THE DRILLING AND PRODUCTION OF GAS AND OIL WELLS WITHIN THE CITY; amendments i n October of PUBLICA G A PENALTY: PROVIDING SEV A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION: PROVIDING FOR SEVFJtAB111TY; PROVIDING FOR REPEAL OF CONFLICTING PROVISIONS; PROVIDING A CUMULATIVE CLAUSE: AND ESTABL LSHING AN EFFECTIVE.DATE. 2004 (Based o n the F t• WHEREAS. the City Te as.create Texas,is a nce w Rule Municipality located in Tarrant Coumy,Texas.created in accordance with the provisions of the Texas Local Gownsman Code and operating pursuant to the enabling legislation of the State of Taws;and Worth Model) t o address o i I WHEREAS. the City Council of So IOPCIrcq Texas finds slut the drilling and production of ga and oil wrtlwu proper regulations,may affect the health,safMy,and general we oft'e public aml may cause immurrnt destruction of propene or injury to pmom:and and gas drilling that included WHEREAS the City Council of a drilling Texas, dubs it necessary to enan an he ordinance to gov[xrt the drilling and production of gas and oil within the corpormc limits of the City of SoutMake. SUP requirement NOW.THEREFORE.BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF _ SOt1rHLAKE.TEXAS: Section I THAT,the above findings arc hereby found to be inrc and correct and are incarporalcxl heroin in their cntnety Gaswe I I permit required to Section 2 THAT,Chaplm 93,of the City of Southla a City Code be hereby amended by adding a new Ankle IV,Gas and Oil Well Drilling and Production, comprising of new Sections A through'1 which reds as follow meet the technical standards — Road Repair Agreement Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Basis for the Revisions • Provide a framework through the City's Comprehensive Plan to evaluate SUP requests . • Provide reasonable access to mineral resources while minimizing impact on adjacent land uses and environmental resources ._ ., - r r Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Current Zoning Ordinance CityCode Amendment Amendment 480-YY Amended the SUP Addresses technical section to allow operations and maintenance operations in the I-2 standards such as emergency district & provide processes, security, specific regulations environmental protection, for operations. insurance, requirements, etc. Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Proposed Changes • Amendment to the Land Use Plan to establish "A policy on natural resource protection" and site design standards for Gas Drilling and Production sites as appendices to the plan • Amendment to the city's Zoning Ordinance • Amendment to the City Code iiIntegrity + Innovation + Accountability + Commitment to Excellence + Teamwork pp Comprehensive Plan A roach to Oil & Gas Drilling Southlake 2025 Plan Provides rational nexus for the following: *Location •Operation •Permit Issuance. Evaluation Criteria Specific Use Permit (All non- residential districts) Oil & Gas Ordinance/ Road Repair Agreement Permit Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Land Use Plan Amendment • Establishes overarching policies on natural resource extraction within the framework of the city's Comprehensive Plan (Appendix C) • Establishes site design standards for drilling and production pad sites (Appendix C- 1 ) Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork Land Use Plan Amendment • Street or Highway Access • Minimize impacts on surrounding properties • Minimize impact on natural features (Environmental Resources Map) • Demonstrate coordination between the surface owner and mineral estate owner. • Reclamation Techniques Integrity + Innovation + Accountability + Commitment to Excellence Teamwork Site Design Standards (Appendix C- 1 ) • Standards for "High Visibility" and "Low Visibility" Sites with respect to fencing and landscaping • Standards to be met during drilling and during production — Hardscape — Fencing & Gates — Landscaping — Color — Access driveways Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork Fencingand L High Visibility Sites • Adjacent to and visible from major roadways, existing commercial and residential development • Have availability of water for irrigation purposes • Masonry or a combination of masonry and wrought iron Low Visibility Sites (8' articulated masonry wall with gate) • Not adjacent to existing development • Limited availability of water for irrigation purposes iiIntegrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Recommended Screening for R, 30'Maximum 4' '-6 r High Visibility Areas Planting Bed w/Low Shrubs Knockout Roses Screening Shrubs Canopy/Shade Trees Evergreen Conders Ornamental Grasses Nellie R.Stevens Live Oak Austrian Pine Red Yucca Eleagnus Red Oak Eastern Red Cedar Needle Point Holly -. Bur Oak 10'-2-'in height Yaupon Holly Cedar Elm 6'-Fin height 1 l f�/ ' Lacebark Elm 8'High Masonry Wall 20'-30'in height with Wrought Iron fencing over a low wall Planting Bed w1 Low Shrubs ✓ �� -Knockout Roses -Ornamental Grasses �' t - Red Yucca Combination Masonry &Wrought Iron Fence wl Vegetative Screen f o Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Creeping vines -Crossvine ,•A •/ Recommended Screening Perennials! f T-, for Seasonal Color i. 1, Fr, High Visibility Areas Knockout Roses y Earthkind Roses Ornamental Grasses Red Yucca 1'-2'in Height' Evergreens/ Deciduous Accent Trees Austrian Pine Eastern Red Cedar Crape Myrtle Eves Necklace 10'-20'in Height' Screening Shrubs Canopy Trees Nellie R.Stevens Live Oak Eleagnus Red Oak Needle Point Holly Bur Oak Yaupon Holly Cedar Elm Viburnum Lacebark Elm 4'-6'in Height' Chinese Pistachio 20'-30'in Height' Perennials! Seasonal Color Knockout Roses Earthkind Roses Ornamental Grasses Red Yucca 1'-2'in Height' "`. ,: Masonry Fence with �� Vegetative Screening i'All heights indicated at maturity Creeping vines g y Crossvine Ordinance 480- RRR • Gas Drilling & Production allowed in all Non- Residential Zoning Districts with a Specific Use Permit (SUP) • Additional submittal requirements include: — Indicate all existing and future easements — Pooled area — Demonstrate compliance with the Natural Resource Extraction Policy in the land use plan (Appendix C) — Compliance with fencing and site design standards in Appendix C-1 of the Land Use Plan Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork 480-RRR s P&Z ACTION : September 6, 2007; Approved s o ,IF . (6-0) subject to a minimum Integrity 600' distance from all Innovation structures; permitted in a l l Accountability zoning districts; provide more Commitment toinformation/recommendations Teamwork regarding distance criteria. Ordinance • Application Fee ($15,000 — Gas & Oil Permit); ($5,000 for SUP); and ($7,500 balance); • Residential Distance Setback (Currently 600'-Propose 1 ,000'); • Public Building Distance Setback (Currently 1 ,000'-Propose 1 ,500'); • 8' Masonry Wall consistent with the conditions of the SUP; • Noise — Determine pre-drilling n ambient level; • Prohibiting combustion engines; • Type of system Closed loop); • Pipeline location (New construction, , mapping); Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Questions ? 511 D Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork i L F LEGEND 600'from All Structures and 1 000'from Public Buildings a. \� i _ Y v tr '\..�•t � i Current Ordinance Integrity ♦ InndetermmtNa,A oe�l� rb►I�exp��raen��o( �p�le ♦ Teamwor i r,f I ` i i LEGEND 1000'from All Structures t ._.L r _ ' — L----------_; 1 - ` I _ � �- Integrity ♦ Innovation ♦ Accountabil "MArnitment to Excellence ♦ Teamwor .. Potential Area Avai able = 176 acres (approx.) ... r- i i i i I \ 1 i I i I I I \ ...1 '•� LEGEND 1 000'from All Sturctures and 1500'from Public Buildings i — L----------- I- L --=— C ti Option 2 Integrity ♦ InnovaRotential Teamwor, ;; Seek �\ �lvice f rom th -omc�/ Regardl'"g Possibic Jpdates to the Oil & C-"j ^ Regulations yR w+ w Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Oil & Gas Drilling Ordinance • At the June 6 , 2007 City Council meeting staff presented responses to Mayor Pro Tern Carolyn Morris questions and presented the distance requirement analysis . Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork Technical Questions • Oil and gas production lines can not exceed 100 psi and be buried 6' depth . • No open flow testing is allowed . • All well lines must be equipped with high/low pressure shut off valves. • Each producing well must be equipped with a down hole shut-off valve storm choke . Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork Other Questions • Continue to require access to wells and drill sites must be from state or federal highways? • Continue to require 1 -2 zoning? • Increase distance requirements to a 1 , 000 ft. for residential and 1 ,500 ft. for school , church , day care and public buildings? Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Background • City Council requested that staff evaluate possible changes to the gas & oil drilling ordinance presented by Mayor Pro Tern Carolyn Morris Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork 2004 - Ordinance Amendment Process Zoning Ordinance CityCode Amendment Amendment 480-YY Amended the SUP Addresses technical section to allow operations and maintenance operations in the I-2 standards such as emergency district & provide processes, security, specific regulations environmental protection, for operations. insurance, requirements, etc. Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Comments/Questions • Can the cityincrease the $2 , 000per day fine? - State law provides a maximum penalty of $2, 000 per day per violation of a city ordinance regulating public health and safety. • Who issues the final permit? - SUP (PDS); Grading Permit (PDS); Road Repair Agreement (Public Works); Drainage Plan (Public Works); oil & gas permit (staff, city council, oil & gas consultant ???). 511 Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Comments/Questions • Continue to allow drilling only in 1 -2 zoning ? - By restricting gas drilling to a limited area of the city increases the likelihood that a legal challenge may be levied alleging a compensable taking. Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork "1-2" Zoning District „ o Boundaries alues f_ Integrity //city Limits N Major Streets Parcels Boundaries Innovation - "1-2"Heavy Industrial s �� Zoning District Locations Accountability 0.3 0 0.3 0.6 Miles H14- Commitment to rn Excellence D Teamwork r Li O r ' r NTINENTA a � • 1 P � — il\ ., — ' (�.— V ` I dam 0' vib, Back to Map a r , I � 1 Area = 27 Acres Owner : Shamrock Logistics �� - Current use : Ground Fuel Storage tanks Back to Map - Area = 14 Acres Owner : Explorer r _ Pipeline Co . Current use : Ground Fuel Storage T = E tanks J Y 1 Back to Map Parcel 3 F `. �° ' ' Area = 15. 5 Acres Owner: Alon USA t� Refining, Inc. R" Current use : Ground Fuel Storage tanks AN Parcel 4 4 a Area = 5.7 Acres Owner: Alon USA Refining, Inc. �-, Current use : Vacant Parcel Area = 1 .2 Acres - : Owner. Explorer Pipeline Co. = Current use : Storage related �'4.. . support Parcel 6 Area = 1 .2 Acres Owner: Koch Refining Y �' • �' Current use : Storage . U related _ � ` , support Back to Map Parcel 7 vW Area = 16.6 Acres -- Owner. Conoco Inc Current use : Vacant Parcel 8 Area = 3.4 Acres Owner: Conoco Inc. Current use : Ground fuel storage h tanks Back to Map Area = 14. 6 Acres y Owner: Petroleum Co �. ::x of Texas. Etal . Current use : Ground 9s Fuel Storage tanks - t Comments/Questions • Should the city increase minimum limit of $10,000,000 on liability insurance? - Coverage level comparable with other local cities. Grapevine -$10,000,000 Ft. Worth -$10,000,000 Grapevine -$10,000,000 Colleyville -$10,0001 000 Trophy Club -$10,000,000 Keller -$10,000,000 Mansfield -$10,000,000 - Staff will consult with insurance industry expert. • Should drill site buffers areas be increased to 1 ,000' from residential or commercial building (currently 600') and 1 ,500' from school, church, hospital and day care (currently 1 ,000). - The ordinance can be amended but is subject to a legal challenge if it prohibits drilling entirely in the city. • • o Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Oil & Gas Ordinance Options • Analysis of potential areas based on the Current Ordinance — 600' from residential and commercial structures — 1 ,000' from public building sites (including schools, day cares, institutions) • Analysis of potential areas based on Option 1 : — 1 ,000' from residential and commercial structures — 1 ,000' from public building sites (including schools, day cares, institutions) • Analysis of potential areas based on Option 2: — 1 ,000' from residential and commercial structures — 1 ,500' from public building sites (including schools, day cares, institutions) Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork i LEGEND i 600'from Residential Structures �I 13 t................. R, i i. Current Ordinance Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork l ' LEGEND 600'from All Structures 600'from Residential Structures IN u.: I I iIIIH rIFW, 6�Awl �. I i Current Ordinance Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork ti- i LEGEND i•� -�11 . z. Public Buildings 1000'Buffer from Public Buildings w 600'from All Structures L-----------p � I ; a ------------ i J !-------- `\ Current Ordinance Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork LEGEND 1000'from Residential Structures Lai i ;� --- i Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork I I I I I I I I r �I I LEGEND > 1000'from Residential Structures i a I I i_ l Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork i I - i i �,. LEGEND 1000'from All Structures e i o: 1. Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork I �` 1 I I ` LEGEND � I , Public Buildings _ 1500'Buffer from Public Buildings 1 000'from All Sturctures and 1500'from Public Buildings I I I I N j I '1 I _ { I I I I ' I - I f 1 i •----------------_- _ Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Comments/Questions • Should the screening requirements for the production site be amended? (Permanent production site — 8' screening made of brick, concrete , earthen berm or a combination of all three). - determined during the SUP requirement. • Noise levels can not exceed 70 decibels at a point 300' from a well site . - Recommendation is to regulate noise based on the surrounding ambient noise levels. Integrity + Innovation + Accountability + Commitment to Excellence + Teamwork Comments/Questions • Should the requirements for surface pits be reevaluated? - Not currently allowed. Some localities reconsidering this rule to allow a fresh water frac ponds if the pond is converted into an amenity after the drilling process is completed. - Add a requirement that a closed loop mud system be used to extract and hold salt water should be incorporated into the ordinance. 1' 1 I 1 Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Comments/Questions Evaluate of other current requirements: • Oil and gas production lines can not exceed 100 psi and be buried 6' depth. • No open flow testing is allowed. • All well lines must be equipped with high/low pressure shut off valves. • Each producing well must be equipped with a down hole shut- off valve storm choke. - The city's gas and oil consultant is reviewing the requirements to determine if they need to be revised to meet current safety standards. • Continue to require access to wells and drill sites must be from state or federal highways. - This restriction may give rise to a taking claim Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork