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Item 4R (2)Title of Presentation John Doe Gas & Oil Well Drilling May 6, 2008 Joint PZ Commission/City Council Meeting Presentation Outline Background Detailed Overview Comments/Questions Background-Existing Ordinance SUP requirement Gas well permit required to meet the technical standards Road Repair Agreement In October of 2004, the City adopted code and zoning amendments to address oil & gas drilling. This included the following: Background-Existing Ordinance Zoning Ordinance Amendment 480-YY Amended the SUP section to allow operations in the I-2 district & provide specific regulations for operations. City Code Amendment Addresses technical operations and maintenance standards such as emergency processes, security, environmental protection, insurance, requirements, etc. Road Repair Agreement Proposed Changes -Comprehensive Plan Approach to Oil & Gas Drilling Southlake 2025 Plan Provides rational nexus for the following: Location Operation Permit Issuance. Specific Use Permit (All districts) Evaluation Criteria Permit Ordinance 880-A/Other Ordinances/ Road Repair Agreement Background-Basis for the Update Update the ordinance/Road Repair Agreement to ensure the adherence of Best Management Practices (3+ years since the last revision); Provide a framework through the City’s Comprehensive Plan to evaluate SUP requests; and Provide reasonable access to mineral resources while minimizing impact on adjacent land uses and environmental resources. Proposed Changes – Visited Other Cities/Sites Background Meetings & Public Input Opportunities September 6, 2007: PZ Commission Public Hearing October 2, 2007:  City Council Work Session October 16, 2007:  City Council Work Session November 11, 2007:  City Council Work Session December 4, 2007:  City Council Work Session January 7, 2008:  Oil & Gas Task Force meeting February 6, 2008:  Oil & Gas Task Force meeting March 24, 2008:  Oil & Gas Task Force meeting April 15, 2008: City Council meeting – 1st Reading April 23, 2008: City Council Meeting – Public Input Meeting Proposed Changes-Land Use Plan Establishes overarching policies on natural resource extraction within the framework of the city’s Comprehensive Plan Establishes site design standards for drilling and production pad sites SUP Section/Ordinance 880-A Permitted to submit an application in all districts. No application for a SUP for gas or oil drilling and production shall be considered complete unless it is accompanied by at least one (1) administratively complete application for a well and pipeline permit. All information required for the gas and pipeline permit must be submitted in conjunction with the SUP application. Pad site permit. Notification for the SUP is 200’ from the property line or 1000’ from the pad site, access road and pipeline-whichever is greater. 200’ 1,000’ 200’ Parcel Boundary Pad Site Regulated Pipeline Access Road Notification OVERVIEW OF ORDINANCE 880 Section 9.5-253 to 255 Permits Required (p.12) Specific Use Permit Road Repair Agreement Well Permit Seismic Survey Permit 880-A – Major Changes Seismic Survey Permit Survey Map Process Description Time Frame Property Access Proof of authorization Notice (Signage) $250 Permit Fee 9.5-256 Application and Review (p.13) Filed with PDS Proposed transportation routes Well name Surface owners contact information Mineral lessee’s contact information Owner/Operators contact information Surface owner and address within 1,000’ of the drill site Site Plan Emergency contact information Number of wells and pool information (acreage) Railroad Commission Documentation Road Repair Agreement 9.5-256 Application and Review Tree Protection Plan Erosion Control Plan Hazardous Material Plan Emergency Response Plan Noise Management Plan Signage Plan Screening, Fencing and Landscape Plan Evidence of insurance and security 9.5-256 Application and Review Copy of the ROW Encroachment Agreement Dust Mitigation Plan Public Education Plan Evacuation Plan Waste Management Plan 9.5-256 Application and Review In order for the permit to be issued all activities must be in conformance with the SUP. Prove that all insurance requirements are met. The permit is reviewed by the administrator. The administrators decision can be appealed to City Council. 9.5-257 Oil & Gas Inspector (p. 18) Administrator shall designate the Inspector who shall enforce the provisions of the article. The Inspector and Fire Marshall shall have the authority to enter the site. Inspector or Administrator shall have the authority to request and receive any records, including records sent to the RRC. 9.5-258 Operator’s Agent (p.19) Every operator shall designate an agent who all notices and orders shall be delivered. Resident of the State of Texas. City must be notified in writing of any changes in such agent. 9.5-259 Insurance and Indemnification (p.19) Every permit issued will contain indemnification language. Commercial or General Liability Insurance Automobile Liability Insurance Workman’s Compensation Insurance Excess (Umbrella) Insurance Control of Well Insurance 9.5-260 Security (p.23) The Operator shall file with the City a cash bond in the amount of two hundred thousand dollars and no cents ($200,000.00) covering each pad site before the issuance of the well permit for the well. Pay fines and penalties imposed upon the Operator by the City for any breach of the well permit or Zoning Ordinance. Comply with the conditions of the applicable Specific Use Permit. Comply with the performance obligations of this Article, including, but not limited to, the screening requirements. 9.5-261 Periodic Reports (p.23) The operator shall notify the city within one (1) day of any changes to operator’s contact information or emergency response plan. Copies of all incident reports submitted the RRC within 15 days. Annual report to the city. 9.5-262 Amended Well Permits (p.24) The Director of Planning and Development Services will determine if the amended application is consistent with the SUP approval. $5,000 permit fee 9.5-263 Transfer of Well Permits (p.26) A well permit may be transferred Insurance and security shall be released All SUP requirements remain intact. 9.5-264 On-Site Operations (p.26) Distances shall be measured from the well bore to the habitable structure (1,000 ft.) Erosion Control Measures shall be installed. Drilling allowed in the floodplain with approval from the City and Army Corp of Engineers Gates must remain locked at all times (knox box) All facilities used for parking, loading, driveways, etc. shall be constructed of concrete, unless an alternative material is approved by City Council Temporary 8’ chain linked w/ fabric Masonry wall Blowout Preventer must be used Closed Loop Mud System must be used No disposal wells are permitted 9.5-264 On-Site Operations Drip pans and other containment devices Electric motors for pumping wells A copy of the emergency response plan to the Fire Marshall Fire prevention equipment No frac ponds Fresh water well test Firefighter Training Grass, weeds and trash FAA approval for wells in the flight path 9.5-264 On-Site Operations Drip pans and other containment devices Electric motors for pumping wells A copy of the emergency response plan provided to the fire marshal Fire prevention equipment No frac ponds Fresh water well test Firefighter Training Grass, weeds and trash FAA approval for wells in the flight path 9.5-264 On-Site Operations Signs Waste Disposal Watchperson Security System -Alarm System -Security Cameras Three-pipe System Emergency Response Plan Testing (Annually) 9.5-265 Operations and Equipment Practices Standards Nuisance prevention measures Must meet the lighting ordinance (693-B) Noise - Ambient Noise Level established at property line or 100’ from a habitable structure (p.39) Acoustical blankets, sound walls, mufflers are permitted Delivery of pipes, casing and heavy loads shall be limited to daytime. Well servicing must occur in the daytime. Operator must file a noise management plan. No compressor stations. 9.5-274 Public Information Operator shall submit an educational letter within 15 days of the well permit to all property owners within 2,000’ of the permitted bore holes. Operator must conduct an annual City-Wide SPIN meeting. 9.5-275 Variance (p.49) Variance requests submitted to the Director of PDS Minor variances approved administratively Major variances approved by City Council Variances must be signed off of by the owner Simple vs. Super-majority 9.5-306 Oil and Gas Pipeline Standards (p.52) Regulated versus Unregulated Pipelines Regulated Pipelines are reviewed as part of the SUP process Regulated pipelines will require a permit Permit will not be issued until a SUP is approved. 9.5-309 New Pipeline Permit Application (p.56) Pipeline Operator Information Location of the Pipeline Engineering plans Cross-section drawings Location of shut-off valves MSDS Certificate of all bonds and insurance Map showing name and address of all property owners affected Tree Preservation Plan Permit Fee 9.5-310 Permit Approval (p.59) Application is reviewed by the Pipeline Review Committee. Third-party Technical Advisor Pipeline operator shall give 48 hours notice to all residents and businesses within 500’. As-built drawings must be submitted to the city. $15,000 fund balance must be maintained. 9.5-311 Public Education (p.60) Public Education required for residents and businesses with 1000’. Communicated in English and Spanish Pipeline operator shall give 48 hours notice to all residents and businesses within 500’ As-built drawings must be submitted to the city. 9.5-325 Unregulated Pipelines (p.76) All new or relocated unregulated pipelines in residential areas shall be located within existing pipeline corridors. A variance request must be made if the pipeline is not in the existing corridor. Variance criteria (p. 77). Road Damage Remediation Agreement Road Damage Remediation Agreement Current Ordinance Master Road Repair Agreement Approved with original ordinance Fee paid at time of repair Assessment of fee based upon estimate by staff Requires action by City to make full repair immediately Road Damage Remediation Agreement Proposed Ordinance Requires execution of Road Damage Remediation Agreement prior to issuance of Drilling Permit Fee paid based on construction cost estimates prepared by Licensed P.E. Based upon projected truck loadings and current pavement condition Predetermined Fee Structure Road Damage Remediation Agreement Proposed Fees Road Damage Remediation Agreement QUESTIONS Issue to Discuss Setback Distances Residence, religious institutions, hospitals, park, and school. Public Street Rail Road Right-of-way Existing Storage tanks Fresh water well Issues to Discuss Districts to allow an SUP application Permit Fee/Amended Permit Fee Frac or Surface Ponds 880-A – Major Changes Site Plan Location of drill site and operation site Equipment Lighting Property Access Property owners names All structures within a 1000’ 880-A – Major Changes Water Source Plan Source Anticipated Demand Surface Impact Transportation Method Route Map Clean up/Restoration 880-A – Major Changes Tree Protection Plan Trees to be removed (Pad/Approach) Tree fencing Tree Protection Signage Removal method 880-A – Major Changes Erosion Control Plan Proposed BMPs Leaking Equipment Spill Prevention Waste Removal Sludge Removal Chemical Storage Drainage Plan Permanent BMPs Dust Complaints Post Rainfall BMP Inspection 880-A – Major Changes Hazardous Material Plan Haz-Mat Response Plan Container Labeling Plan MSDS Sheets Copy of the Tier I Report Contact Information 880-A – Major Changes Emergency Response Plan Fire Emergencies Leaks/Blow outs Spills Medical Emergencies Emergency contacts Evacuation Plan & Routes (Schools, hospitals & day care) 880-A – Major Changes Noise Management Plan Acoustic Engineer Ambient Noise Level Mitigation-Acoustic blankets Drilling/Fracing times Frequency of Readings Enforcement/Inspection 880-A – Major Changes Screening and Fencing Plan Pre and Post Production Security fencing for equipment Screening wall type (materials & height) Plant material 880-A – Major Changes Signage Plan On-site Off-site Emergency Contacts Well/Pool Information Pipeline Truck Routes 880-A – Major Changes Fire Suppression Plan Location of suppression equipment/hookups Location and quantity of foam on site Location of fire hydrants Sources of ignition Firefighter training and lesson plans 880-A – Major Changes Public Education Written timeline account of all events Educational letter to all property owners within 2000’ of the well site Annual SPIN Meeting Expanded Web Presence Cable Channel 880-A – Major Changes Pipeline Permit Require the location and description of “regulated” pipelines in conjunction with SUP permit. Plans must show the location of all known public utilities. Lines must be buried a minimum of 8’ deep. Notify all property owners within 1,000’ of the proposed line. Public Education Program Staff Gas Summit Road Damage Remediation Agreement Road Damage Remediation Agreement Current Ordinance Master Road Repair Agreement Approved with original ordinance Fee paid at time of repair Assessment of fee based upon estimate by staff Requires action by City to make full repair immediately Road Damage Remediation Agreement Proposed Ordinance Requires execution of Road Damage Remediation Agreement prior to issuance of Drilling Permit Fee paid based on construction cost estimates prepared by Licensed P.E. Based upon projected truck loadings and current pavement condition Predetermined Fee Structure Road Damage Remediation Agreement Proposed Fees Road Damage Remediation Agreement Issue to Discuss Setback Distances Residence, religious institutions, hospitals, park, and school. Public Street Rail Road Right-of-way Existing Storage tanks Fresh water well Issues to Discuss Districts to allow an SUP application Permit Fee/Amended Permit Fee Frac or Surface Ponds Next Steps Task Force Meeting City Council Public Hearing QUESTIONS