WS Item 3ABC (3)
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Gas & Oil Well Drilling CP 07-005 (Discussion Only) Ordinance 480-RRR (1st Reading) Ordinance 880-A (1st
Reading)
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Background • City adopted zoning and city code ordinance amendments in October of 2004 (Based on the Ft.
Worth Model) to address oil and gas drilling that included – SUP requirement – Gas well permit required to 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.
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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.
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
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Comprehensive Plan Approach to Oil & Gas Drilling Southlake 2025 Plan Provides rational nexus for the following:
•Location •Operation •Permit Issuance. Specific Use Permit (All nonresidential districts) Evaluation Criteria 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 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
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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 Values 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.
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Ordinance 880-A Revisions • 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 ambient level; • Prohibiting combustion engines; • Type of system (Closed loop); • Pipeline location (New construction, mapping);
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Questions?
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Current Ordinance Potential Area Available = 576 acres (approx.)
Integrity ♦ Innovation ♦ AccountabiliOtyp ♦tiCoonm 1mitment to Excellence ♦ Teamwork Potential Area Available = 176 acres (approx.)
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Option 2 Potential Area Available = 131 acres (approx.)
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Seek Advice from the Attorney Regarding Possible Updates to the Oil & Gas Regulations
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 Tem 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 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?
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork QUESTIONS
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 Tem Carolyn Morris
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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.
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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 ???).
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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.
Integrity Innovation Accountability Commitment to Excellence Teamwork Values
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork • ADDITIONAL SLIDES
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Area = 27 Acres Owner: Shamrock Logistics Current use: Ground Fuel Storage tanks Parcel 1 Back to Map
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Area = 14 Acres Owner: Explorer Pipeline Co. Current use: Ground Fuel Storage tanks Parcel 2 Back to Map
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 33 4 66 55 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
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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 77 88 Back to Map
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Area = 14.6 Acres Owner: Petroleum Co of Texas. Etal. Current use: Ground Fuel Storage tanks PPaarrcceell
99 S.H. 26 Back to Map
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork 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.
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 Current Ordinance
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Current Ordinance
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Current Ordinance
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Option 2
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Option 2
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Option 2
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.
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 shutoff 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 QUESTIONS