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WS - Joint CC/PZCity Council & PZ Commission Work Session October 5, 2010 Presentation Outline Brief overview of the Drilling Process SUP Process Policies in Place - Review of the Comprehensive Plan, Zoning Ordinance and Gas Drilling & Production Ordinance Emerging Technologies Questions OVERVIEW OF THE DRILLING PROCESS Drilling Process Preparation of the Pad Site Drilling Operation Completion Phase Production Preparation of the Pad Site Drilling Operations Completion Phase Production Typical Production Site Pipeline OVERVIEW OF THE SUP PROCESS Specific Use Permit (SUP) ProcessSUP Application Filed with CityStaff Review of SUPSPIN Meeting(s)Planning & Zoning Commission – Public HearingCity Council – Public Hearing SUP Process Application filed with the City Staff Review of the SUP SPIN Meeting Public Hearings POLICIES IN PLACE TO REVIEW DRILLING APPLICATIONS Comprehensive Approach to Oil & Gas Drilling Southlake 2025 Plan Provides rational nexus for the following: Location Operational Environmental Zoning Ordinance 480 -Specific Use Permit Ordinance 880 - Oil & Gas Ordinance/ Road Repair Agreement Well Permit SUP Section/Ordinance 480 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. The SUP provides a mechanism for the City Council to establish regulations not defined in ordinance 880-A , the Railroad Commission or other City Ordinances. Notification SUP notification - 200’ from the property boundary - 1,000’ from the pad site - 1,000’ from any pipeline - 1,000’ from any access roads 1,000’ 1,000’ 200’ Parcel Boundary Pad Site Pipeline Access Road Notification 1,000’ 1,000’ 1,000’ 880-A Ordinance Overview Definitions – p. 1 (9.5-222) Variance Section – p. 7 (9.5-223) - SUP (Variance requests) - Gas Permit (Variance Requests) - Supermajority Appeal Procedure – p. 8 (9.5-224) 880-A Ordinance Overview Road Repair Agreement (9.5-231) p. 10 Statement of Intent Fee paid based on construction cost estimates prepared by Licensed P.E. Based upon projected truck loadings and current pavement condition Predetermined Fee Structure 880-A Ordinance Overview Seismic Survey Permit (9.5 -233) – p. 10 Survey Map Process Description Time Frame Property Access Proof of authorization Notice (Signage) $250 Permit Fee 880-A Ordinance Overview 9.5-256 Application and Review (p.11) 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 Emergency contact information Number of wells and pool information (acreage) Railroad Commission Documentation Ordinance 880-A Overview Site Plan (p.12) Location of drill site and operation site Equipment Lighting Property Access Property owners names All structures within a 1000’ 880-A Ordinance Overview Water Source Plan (p.13) Source Anticipated Demand Surface Impact Transportation Method Route Map Clean up/Restoration Ordinance 880-A Overview Tree Protection Plan (p. 13) Trees to be removed (Pad/Approach) Tree fencing Tree Protection Signage Removal method Ordinance 880-A Overview Erosion Control Plan (P. 13) Proposed BMPs Leaking Equipment Spill Prevention Waste Removal Sludge Removal Chemical Storage Drainage Plan Permanent BMPs Post Rainfall BMP Inspection Ordinance 880-A Overview Hazardous Material Plan (P. 13) Haz-Mat Response Plan Container Labeling Plan MSDS Sheets Contact Information Ordinance 880-A Overview Emergency Response Plan & Fire Suppression Plan (p. 13) Fire Emergencies Leaks/Blow outs Spills Medical Emergencies Emergency contacts Evacuation Plan & Routes Location of suppression equipment/hookups Location and quantity of foam on site Location of fire hydrants Sources of ignition Firefighter training and lesson plans Ordinance 880-A Overview Noise Management Plan (p. 13) Acoustic Engineer Ambient Noise Level Mitigation-Acoustic blankets Drilling/Fracing times Frequency of Readings Enforcement/Inspection Ordinance 880-A Overview Screening and Fencing Plan (p. 13) Pre and Post Production Security fencing for equipment Screening wall type (materials & height) Plant material Ordinance 880-A Overview Signage Plan (p. 13) On-site Off-site Emergency Contacts Well/Pool Information Pipeline Truck Routes Ordinance 880-A Overview Third Party Landscaping Agreement (p. 14) Frequency of the services to be provided Service provider Ordinance 880-A Overview TCEQ – Depth of Useable Groundwater (p. 14) Ordinance 880-A Overview Dust Mitigation Plan (p. 14) Ordinance 880-A Overview Public Education (pp. 14 & 39) Written timeline account of all events Educational letter to all property owners within 2000’ of the well site Annual SPIN Meeting Ordinance 880-A Overview Revolving Account (p.14) Maintain a $15,000 balance Administrative Expenses Consulting Fees Contracting Fees Funding of an Inspector Position Ordinance 880-A Overview Insurance and Indemnification (p. 18): Each permit shall include Indemnification Language $10,000,000 Minimum Combined Single Limit $20,0000 – Annual general aggregate coverage $10,000,000 – Umbrella Liability Insurance $10,000,000 – Control of Well Insurance $200,000 – Cash Bond Ordinance 880-A Overview On site Operations (p.22): 1,000 foot distance between the well bore and any habitable structure 1,000 foot distance between the well bore and the property line of a school or hospital Ordinance 880-A Overview On site Operations (p. 23): Knox Box Security Parking & travel ways shall be concrete Maintain a temporary chain-link fence with all-weather screening Masonry wall and interior security fencing required Ordinance 880-A Overview On site Operations (p. 24): Blow Out Prevention Equipment (API Standards) No air, gas or pneumatic drilling Closed Loop Mud System Drill Stem Testing (Daylight only) Drip Pans-Containment Devices Electric motors for pumping wells Emergency Response Plan Ordinance 880-A Overview On site Operations (p. 29): No Frac or surface ponds No venting of gas Firefighter Training Shut off valves Foam Line Arrestor Ordinance 880-A Overview On site Operations (p. 22): Security System Security Camera Watchperson Alarm systems Ordinance 880-A Overview On site Operations (p. 22): Water Well Testing - Pre-drilling & Post-Drilling - Wells within 2,000 ft. - Parameters need to be established Ordinance 880-A Overview Prohibited (p: 24-27): Disposal Wells Oil based drilling fluids Drilling Storage Pit Venting Gas into the atmosphere Compressor Stations H2S Gas Ordinance 880-A Overview Pipeline Permit Require the location and description of 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 Questions Emerging Technologies Vapor Recovery Units Green Completions Recycling Fracturing Water Baseline & Continuous Testing of Air Quality Baseline & Continuous Testing of Water Quality Continuous Noise Monitoring Shorter Well Rigs No Bleed Pneumatic Valves and Fittings QUESTIONS Production Well Head Gas Well Production