WS Item 3ABCGas & Oil Well Drilling
City Council Work Session
CP 07-005
Ordinance 480-RRR
Ordinance 880-A
October 2, 2007
Presentation Outline
Drilling Process
Background
Proposed Changes (Land Use Plan, Zoning Ordinance, and Oil & Gas Ordinance)
City Council Comments/Questions
Drilling Process
Drilling Rig
Hydraulic Fracturing
Refracing
Horizontal/Directional Drilling
Well Completion and Clean Up
Production Well
Head
Background
City adopted zoning and city code ordinance amendments in October of 2004 to address oil and gas drilling that included
SUP requirement
Gas well permit required to meet the technical standards
Road Repair Agreement
Current Process
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.
Basis for the Revisions
Update ordinance (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 Comprehensive Plan Approach to Oil & Gas Drilling
Southlake 2025 Plan
Provides rational nexus for the following:
Location
Operation
Permit Issuance.
Specific Use Permit (All non-residential districts)
Evaluation
Criteria
Oil & Gas Ordinance/
Road Repair Agreement
Permit
Proposed Changes
Amendment to the Land Use Plan to establish a policy on natural resource protection and site design standards for Gas and Oil Drilling and Production sites as appendices to the plan
Amendment to the city’s Zoning Ordinance (SUP section)
Amendment to the City Code
Southlake 2025 - 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)
Proposed Land Use Plan Amendments (Policy on Natural Resources)
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
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
Fencing and Landscaping
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
Gas Well Production
Proposed Changes to 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
Proposes Changes to Ordinance 880- Oil & Gas
Application Fee ($15,000 – Gas & Oil Permit); ($5,000 for SUP); and ($7,500 balance for each well);
Residential Distance Setback (Currently 600’-Proposed 1,000’);
Public Building Distance Setback (Currently 1,000’-Proposed 1,500’);
Proposed Changes to Ordinance 880- Oil and Gas
8’ Masonry Wall consistent with the conditions of the SUP;
Noise – Determine pre-drilling ambient level;
Prohibiting combustion engines;
Type of system (Closed Mud loop);
Pipeline location (New construction, mapping);
480-RRR
P&Z ACTION: September 6, 2007; Approved (6-0) subject to a minimum 600’ distance from all structures; permitted in all zoning districts; provide more information/recommendations regarding
distance criteria.
Questions?
Current Ordinance
Potential Area Available = 576 acres (approx.)
Option 1
Potential Area Available = 176 acres (approx.)
Option 2
Potential Area Available = 131 acres (approx.)
Seek Advice from the Attorney Regarding Possible Updates to the Oil & Gas Regulations
Oil & Gas Drilling Ordinance
At the June 6, 2007 City Council meeting staff presented responses to Mayor Pro Tem Carolyn Morris questions and presented the distance requirement analysis.
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.
Other Questions
Continue to require access to wells and drill sites must be from state or federal highways?
Continue to require I-2 zoning?
Increase distance requirements to a 1,000 ft. for residential and 1,500 ft. for school, church, day care and public buildings?
QUESTIONS
Background
City Council requested that staff evaluate possible changes to the gas & oil drilling ordinance presented by Mayor Pro Tem Carolyn Morris
2004- Ordinance Amendment Process
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.
Comments/Questions
Can the city increase the $2,000 per 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 ???).
Comments/Questions
Continue to allow drilling only in I-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.
ADDITIONAL SLIDES
Area = 27 Acres
Owner: Shamrock
Logistics
Current use: Ground
Fuel Storage
tanks
Parcel 1
Back to Map
Area = 14 Acres
Owner: Explorer
Pipeline Co.
Current use: Ground
Fuel Storage
tanks
Parcel 2
Back to Map
3
4
6
5
S.H. 26
Parcel 3
Area = 15.5 Acres
Owner: Alon USA
Refining, Inc.
Current use: Ground
Fuel Storage
tanks
Parcel 4
Area = 5.7 Acres
Owner: Alon USA
Refining, Inc.
Current use: Vacant
Parcel 5
Area = 1.2 Acres
Owner: Explorer
Pipeline Co.
Current use: Storage
related
support
Parcel 6
Area = 1.2 Acres
Owner: Koch Refining
Current use: Storage
related
support
Back to Map
Parcel 7
Area = 16.6 Acres
Owner: Conoco Inc
Current use: Vacant
Parcel 8
Area = 3.4 Acres
Owner: Conoco Inc.
Current use: Ground
fuel storage
tanks
7
8
Back to Map
Area = 14.6 Acres
Owner: Petroleum Co
of Texas. Etal.
Current use: Ground
Fuel Storage
tanks
Parcel 9
S.H. 26
Back to Map
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 -$10,000,000
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.
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)
Current Ordinance
Current Ordinance
Current Ordinance
Option 2
Option 2
Option 2
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.
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.
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
QUESTIONS
Gas & Oil Well Drilling
CP 07-005 (Discussion Only)
Ordinance 480-RRR (1st Reading)
Ordinance 880-A (1st Reading)
QUESTIONS
Gas & Oil Well Drilling
CP 07-005 (Discussion Only)
Ordinance 480-RRR (1st Reading)
Ordinance 880-A (1st Reading)
QUESTIONS