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Item 7CCity of Southlake Department of Planning MEMORANDUM August 11, 2004 TO FROM SUBJECT Honorable Mayor and City Council Ken Baker, AICP, Interim Planning Director Resolution No. 04 -062 - Establishing a 120 -day moratorium on any development application for Gas and Oil Well Drilling and Production. REQUESTED ACTION: Consider approval of Resolution No. 04 -062. BACKGROUND: The City Council is currently reviewing possible amendments to the Zoning Ordinance (Sections 4 and 45) pertaining to petroleum operations, oil & natural gas drilling and production (Ordinance 480 -YY). Also, the city staff is in the process of developing a second ordinance which addresses technical operation and maintenance standards (such as insurance, security, periodic reporting, and on -site operations) under a "gas well permit' requirement. The proposed 120 -day moratorium is to ensure that these needed ordinances are adopted by City Council and in place prior to any applications for well drilling and production are made to the city. FINANCIAL CONSIDERATIONS: None LEGAL REVIEW: Currently under review by the City Attorney. SUPPORTING DOCUMENTS: Attachment A- Resolution No. 04 -062 Attachment A RESOLUTION NO. 04 -062 A RESOLUTION DECLARING A MORATORIUM ON THE ACCEPTANCE OR PROCESSING OF ANY DEVELOPMENT APPLICATIONS FOR GAS AND /OR OIL WELL DRILLING AND PRODUCTION WITHIN THE CORPORATE LIMITS OF THE CITY OF SOUTHLAKE; DIRECTING THE CITY STAFF TO INITIATE THE PREPARATION OF A CITY CODE ORDINANCE AMENDMENT TO REGULATE THE TECHNICAL ASPECTS OF GAS WELL DRILLING AND PRODUCTION; PROVIDING FOR A METHOD OF REPEAL OF THIS MORATORIUM; AND PROVIDING THAT THIS RESOLUTION SHALL TAKE EFFECT IMMEDIATELY UPON PASSAGE. WHEREAS, the City Council of the City of Southlake has recently learned of an increased interest in oil and gas exploration, drilling, and production in the North Central Texas area; and WHEREAS, the City Council has conducted such investigations as it deemed necessary to determine the state of regulations now applicable to oil and gas exploration and other forms of mineral extraction under the current ordinances and regulations of the City of Southlake; and WHEREAS, the City Council, after due and careful consideration, has determined that the current regulations may not be adequate to address safety, maintenance, legal, and environmental issues created by oil and gas exploration, drilling, and production activities; and WHEREAS, the City Council believes that it is reasonable and necessary to update municipal ordinances and regulations to provide for a fair and equitable system of regulations relating to oil and gas exploration, drilling, and production activities so as to protect the property interest of mineral estate owners while protecting the rights, opportunities and property interests of surface estate owners; and WHEREAS, the City Council believes that the staff of the City of Southlake should undertake those studies or analyses necessary to prepare the appropriate recommendations for council action; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1 A moratorium is hereby imposed on the receipt, processing, and approval of applications for the development of oil and /or gas well drilling and production within the corporate Resolution 04 -062 2 limits of the City of Southlake. The moratorium shall be in place for one hundred twenty (120) days following the adoption of this Resolution and may thereafter be extended by the City Council for good cause shown. SECTION 2 The City staff is hereby directed to initiate and complete those studies and analysis necessary to determine what, if any, regulatory changes to the ordinances of the City of Southlake are reasonable and necessary to permit gas exploration, drilling, and production without negatively impacting the interest of surface estate owners within the City. The City Staff is directed to review all appropriate planning materials and development regulations to suggest changes, if appropriate, that would protect the interest of both mineral estate owners and surface estate owners while ensuring the highest degree of compliance with the public health, safety, and welfare. SECTION 3 This moratorium shall remain in full force and effect upon its passage and for a period not to exceed 120 days, unless terminated prior to that time by action of the City Council. Passed and Approved this day of , 2004. Mayor ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: City Attorney Resolution 04 -062 3