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 255Permits 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 AgreementProposed 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 AgreementProposed 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