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Item 7Dr City of Southlake Department of Planning MEMORANDUM September 1, 2004 TO: Honorable Mayor and City Council FROM: Ken Baker, AICP, Interim Planning Director SUBJECT: Ordinance No. 480 -YY ā€” Amendments to Section 4 and Section 45 pertaining to petroleum operations, oil & natural gas drilling and production. REQUESTED ACTION: Conduct public hearing. Consider approval of second reading on Ordinance No. 480 -YY. BACKGROUND: Of late, interest in natural gas exploration, drilling, and production has increased and several adjoining cities are recognizing the need to regulate such activities. To this end, the city of Southlake does not specifically identify oil or natural gas drilling and production as a use in any zoning district. While the uses permitted under "petroleum operations" include some flexibility, it is mainly intended for storage and distribution of petroleum. This proposed amendment: 1. Clarifies the definitions of petroleum operation, gas drilling and production and oil drilling and production; 2. Proposes "gas and oil drilling and production" as a use permitted with a specific use permit (SUP) in the I -2 Industrial district; and 3. Adds standards for review and approval of such SUP requests under Section 45. This zoning ordinance amendment (480 -YY) addresses location of the gas and oil well drilling and production use and its secondary impacts. A separate amendment to the City Code that addresses the technical operation and maintenance standards (such as insurance, security, periodic reporting, and on -site operations) under a "gas and oil well permit" requirement is currently under legal review. FINANCIAL CONSIDERATIONS: None LEGAL REVIEW: Currently under review by the City Attorney. SUPPORTING DOCUMENTS: Attachment A -Draft Ordinance No. 480 -YY. P &Z ACTION: July 22, 2004; Approved (4 -0) amending 45.15.b.4. to read "A tree survey will be required by the Landscape Administrator in compliance with the City's Tree Preservation Ordinance." COUNCIL ACTION: August 3, 2004; Approved the first reading (5 -0). 2 ORDINANCE NO. 480 -YY AN ORDINANCE AMENDING ORDINANCE NO. 480, AS AMENDED, THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS; REVISING SECTION 4 DEFINITIONS AND SECTION 45 SPECIFIC USE PERMITS REGARDING PETROLEUM OPERATIONS, AND OIL & GAS DRILLING AND OPERATIONS; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY FOR VIOLATIONS HEREOF; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN PAMPHLET FORM; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake, Texas is a home rule city acting under its charter adopted by the electorate pursuant to Article X1, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the city has adopted Ordinance No. 480, as amended, as the Comprehensive Zoning Ordinance for the city; and WHEREAS, the city council has determined that it is appropriate and in the best interest of the city to promote the public health, safety, and general welfare of its residents by amending Ordinance No. 480 as provided herein; and WHEREAS, the city council has given published notice and held public hearings with respect to the amendment of the zoning ordinance as required by law. 3 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1 Add the following under Section 4.2 Definitions: Petroleum Operations means and includes all activities in connection with the storage, pipeline transfer, distribution, blending, loading and off - loading of petroleum products in a non - retail setting. This definition shall not include oil or natural gas well drilling and operations. Gas Well Drilling and Production Any digging or boring of a well to extract and /or for the production of natural gas from the earth as classified by the Texas Railroad Commission or the Texas Natural Resources Code. Drilling also means and includes the re -entry of an abandoned well. This definition does not include oil well drilling and production. Oil Well Drilling and Production Any digging or boring of a well to extract and /or for the production of oil or petroleum from the earth as classified by the Texas Railroad Commission or the Texas Natural Resources Code. Drilling also means and includes the re -entry of an abandoned well. This definition does not include gas well drilling and production. 4 SECTION 2 Delete the text under Section 45.1 (25), subsection 5 and add subsection 25. (c) as follows: SPECIFIC USE DISTRICT WHERE SPECIFIC USE PERMITTED 25. Petroleum Operations The City Council may grant this use as a specific use permit, I -2 subject to compliance with the following provisions: SITE PLAN 43. Gas & oil well drilling and production, subject to the requirements of Section 45.15 REQUIRED a. In granting or denying a use in this category, the City Council must bear in mind that REQUIRED these sites are not to be located contiguous to residentially zoned properties and should be located in such a manner as to preclude the necessity to travel through residentially zoned areas to reach these sites. Petroleum operations should never be placed in an environmentally sensitive area and should be allocated only to those areas appropriately supported by public utility infrastructure and major arterial thoroughfares. Environmental impacts of this use should be carefully considered in determining whether to grant or deny an application. b. The City Council may permit the following uses within this category. (1) On -site storage of petroleum products. (2) Pipe line transfer or servicing operations relating to the delivery of petroleum based products. (3) Petroleum distribution points of a wholesale nature designed to allow the loading or off - loading of truck facilities in a non - retail setting. (4) Petroleum blending operations. ( 5) nā€ž - + uses .. l, E;h 41 the o n, all other pe4@!ettm o p i4 o+i of c. Petroleum operations shall not include oil or gas drilling and production. ed. No specific use permit shall be granted unless a site plan as set forth in Section 27.8 is submitted to, and approved by, the City Council. (As amended by Ordinance No.480 -M.) Add the following under Section 45.1 (43): DISTRICT WHERE SPECIFIC USE PERMITTED I -2 43. Gas & oil well drilling and production, subject to the requirements of Section 45.15 SITE PLAN REQUIRED Add the following as Section 45.15: 45.15 SPECIFIC REGULATIONS FOR GAS AND OIL WELL DRILLING & PRODUCTION The purpose of this section to establish reasonable and uniform standards for the review of applications for the location and development of gas and oil well drilling and production. Gas and oil well drilling & production activity shall be approved by City Council through the Specific Use Permit process, however, other city regulations that establish technical, safety, and environmental standards shall also apply. a. A site plan is required with the Specific Use Permit application for gas and oil well drilling and production and must include all information required by Section 40, Site Plans and the following additional information: 1. The total number of wells to be drilled. 2. The location of the drill site and a layout of the site showing all related facilities, including, but not limited to, drilling rig, pipe rack, water and sanitary sewer facilities, electrical supply, camper /office trailers, reserve pit, and fracturing pits. The location of the operation site and a layout of the site showing all related facilities, including but not limited to pumps, wellheads, separators, dehydrators, tank batteries, compressors, and metering stations. 4. Size, location and purpose of any shared facilities, including, but not limited to, centralized tank batteries or fracturing pits for multiple wells or drill sites. 5. The design, location, and arrangement of all access roads into the site. 6. Method and design details of screening of operations and facilities 7. A map of the public streets to be used by truck traffic to the drill site. City Council shall review and approve truck routes into and out of the operation site. Truck routes proposed shall meet the requirements of the city's Truck Route ordinance, as amended. To the extent possible, entrances to a drill site shall be off state or federal highways (S.H. 114, S.H 26, etc.). 8. The location of any floodplain, drainage, or flowage easements. 9. A pipeline easement map indicating the location of the nearest gathering station and the alignment of the pipeline(s) connecting the operation site to the gathering station. b. In addition to the standards established in Section 40, a site plan application for gas and oil well drilling and production shall meet the following standards: 1. Provision for adequate public facilities, as determined by the Director of Public Works including water supply, access roads, drainage, erosion control and other necessary supporting facilities identified on site plan. 2. The design, location, and arrangement of all driveways and parking spaces shall provide for the safe and convenient movement of vehicular and pedestrian traffic without adversely affectingthe general public or adjacent developments /properties. All operations shall be visually unobtrusive and limit noise, vibrations, and odors. 4. A tree survey as required by the Landscape Administrator for compliance with the City's Tree Preservation Ordinance. 5. Pooling and unitization that bring together smaller tracts and joint operation of all or some portion of a producing reservoir shall be encouraged to the extent possible to prevent the drilling of unnecessary and uneconomic wells. c. Each application for an SUP for gas and oil well drilling and production shall adequately demonstrate that it meets the technical standards for a Gas and Oil Well Permit as established by other citv ordinance(s). SECTION 3 This ordinance shall be cumulative of all provisions of ordinances of the City of Southlake, Texas, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. SECTION 3 It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4 Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Two Thousand Dollars ($2,000.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. SECTION 5 All rights and remedies of the City of Southlake are expressly saved as to any and all violations ofthe provisions of Ordinance No. 480, as amended, or any other ordinances affecting zoning yard regulations which have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. SECTION 6 The City Secretary of the City of Southlake is hereby authorized to publish this ordinance in book or pamphlet form for general distribution among the public, and the operative provisions of this ordinance as so published shall be admissible in evidence in all courts without further proof than the production thereof. SECTION 7 The City Secretary of the City of Southlake is hereby directed to publish the proposed ordinance or its caption and penalty together with a notice setting out the time and place for a public hearing thereon at least fifteen (15) days before the second reading of this ordinance, and if this ordinance provides for the imposition of any penalty, fine or forfeiture for any violation of any of its provisions, then the City Secretary shall additionally publish this ordinance or its caption and penalty in the official City newspaper one time within ten days after final passage of this ordinance, as required by Section 3.13 of the Charter of the City of Southlake. SECTION 8 This ordinance shall be in full force and effect from and after its passage and publication as required by law, and it is so ordained. PASSED AND APPROVED on the 1st reading the 3rd day of August, 2004. MAYOR ATTEST: CITY SECRETARY PASSED AND APPROVED on the 2nd reading the day of , 2004. MAYOR ATTEST: CITY SECRETARY APPROVED AS TO FORM AND LEGALITY: CITY ATTORNEY