Item 8ACITY OF
SOUTH LAKE
MEMORANDUM
1/12/2011
To: Shana Yelverton, City Manager
From: Kenneth M. Baker, PDS Director
Subject: Moratorium on the Acceptance of Gas Drilling Related
Applications
Action
Requested: Consider Resolution 11 -005 — Declaring a 90 day moratorium
on the acceptance or processing of applications for well
permits and specific use permits to permit mineral extraction
through oil and gas exploration or operations, and on
acceptance or processing of applications for regulated or
unregulated pipeline permits within the corporate limits of the
City of Southlake.
Background:
Information: The purpose of this resolution is to place a 90 day moratorium of
the acceptance or processing of applications for well permits and
specific use permits to permit mineral extraction through oil and
gas exploration or operations, and on acceptance or processing of
applications for regulated or unregulated pipeline permits within
the corporate limits of the City of Southlake.
City Council, after due and careful consideration, has determined
that the current regulations need to be reviewed to address
environmental and land use compatibility issues created by oil and
gas exploration and mineral extraction, development and
transportation activities; and believes that it is necessary to review
and update municipal ordinances and regulations to provide for a
fair and equitable system of regulations relating to oil and gas
exploration and mineral extraction, development and
transportation so as to protect the property interest of mineral
estate owners while protecting the rights, opportunities and
property interests of surface estate owners.
The City Staff will review all appropriate environmental, 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 concern for the preservation of the public health, safety,
morals and general welfare. The City staff shall complete their
work and make their recommendations to the City Council within
ninety (90) days following the adoption of this Resolution; or, if
they should determine that this time period is not feasible, report
back to the City Council with a proposed calendar within which
they will complete their work.
Financial
Considerations: None
Strategic Link: C1- Achieve the highest standards of safety and security
Citizen Input/
Board Review: None
Legal Review: The City has reviewed the attached resolution.
Supporting
Documents: Attached Resolution 11 -005
RESOLUTION NO 11 -005
AN RESOLUTION DECLARING A 180 DAY MORATORIUM ON THE
ACCEPTANCE OR PROCESSING OF APPLICATIONS FOR WELL
PERMITS AND SPECIFIC USE PERMITS TO PERMIT MINERAL
EXTRACTION THROUGH OIL AND GAS EXPLORATION OR
OPERATIONS, AND ON THE ACCEPTANCE OR PROCESSING OF
APPLICATIONS FOR REGULATED OR UNREGULATED PIPELINE
PERMITS WITHIN THE CORPORATE LIMITS OF THE CITY OF
SOUTHLAKE; DIRECTING THE CITY STAFF TO INITIATE A
COMPREHENSIVE REVIEW OF THE CITY'S ORDINANCES
GOVERNING PROCEDURES FOR OIL AND GAS EXPLORATION AND
OTHER FORMS OF MINERAL EXTRACTION, PRODUCTION AND
TRANSPORTATION AND TO PROPOSE REVISIONS THERETO;
PROVIDING FOR A METHOD OF REPEAL OF THIS MORATORIUM;
PROVIDING A PROCEDURE FOR A VARIANCE FROM THIS
MORATORIUM; AND PROVIDING THAT THIS RESOLUTION SHALL
TAKE EFFECT IMMEDIATELY UPON PASSAGE.
WHEREAS, the City of Southlake, Texas is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas
Constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the City Council of the City of Southlake is aware of an increased
interest in oil and gas exploration and production in the North Central Texas area; and
WHEREAS, the City Council of the City of Southlake has previously adopted
Ordinance Nos. 880 -A and 480 -RRR governing oil and gas exploration and other forms
of mineral extraction, production and transportation; 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, production and transportation 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 environmental
and land use compatibility issues created by oil and gas exploration and mineral
extraction, development and transportation 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 and mineral extraction, development
and transportation 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, it is important and necessary to preserve the status quo while a
review and update of these regulations are being developed and implemented to ensure
compatible land uses that do not negatively impact property values or neighborhood
character; 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 City Council action; and
WHEREAS, notwithstanding the foregoing, the City Council of the City of
Southlake recognizes that there may be individuals or businesses who have a legitimate
reason to seek a variance from the requirements of this moratorium based upon the
unique needs of their project and who are able to demonstrate that the approval of their
project will not defeat the purposes of the City in adopting this moratorium.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS, THAT:
SECTION 1
A moratorium is hereby imposed, effective immediately, on the receipt,
processing, and approval of applications for Oil and /or Gas Well Permits and Specific
Use Permits that would seek approval to conduct mineral extraction and /or oil and gas
exploration and extraction within the corporate limits of the City of Southlake; in addition
said moratorium extends to receipt, processing, and approval of applications for
regulated or unregulated gas pipeline permits that would seek permission to install
natural gas transportation lines by a non - franchised utility within the corporate limits of
the City of Southlake. The moratorium shall be in place for the earlier of one - hundred
eighty (180) days following the adoption of this resolution or upon passage of an
amendment to the City's Ordinance Nos. 880 -A and 480 -RRR or other express action of
the City Council lifting the moratorium. If no amendment or action is taken, the
moratorium shall expire at 5:01 p.m. on July 17, 2011. The moratorium may be
extended by the City Council for good cause shown.
SECTION 2
The purpose of this moratorium is to maintain the status quo within the City until
such time as the City has reviewed and, if necessary, amended its regulations regarding
oil and gas exploration and mineral extraction, development and transportation.
SECTION 3
The City staff are 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 mineral extraction and oil
and gas exploration, extraction and transportation without negatively impacting the
interest of surface estate owners within the City. The City Staff are directed to review all
appropriate environmental, 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 concern for the preservation
of the public health, safety, morals and general welfare. The City staff shall complete
their work and make their recommendations to the City Council within one - hundred
eighty days (180) days following the adoption of this Resolution; or, if they should
determine that this time period is not feasible, report back to the City Council with a
proposed calendar within which they will complete their work. The City staff shall solicit
such input as they deem necessary and appropriate from all affected and interested
parties in preparing their recommendations.
SECTION 4
Any property owner who believes that the imposition of this moratorium causes a
unique and unreasonable hardship upon his or her property or business shall have the
right to request a variance and shall submit a written request to the City Council by
transmitting same to the City Secretary's office. The request must provide the following
information:
a. A description of the property to be covered by the variance.
b. An explanation as to why the application of the moratorium is
unreasonable as applied to the applicant's property.
C. A description of any negative impacts created by the moratorium
provision.
The City Secretary's office shall place the request for a variance on the agenda
of the City Council for consideration at a public meeting. The applicant shall receive
written notice of the date of the proposed hearing on the variance request. On the date
that the item is set for hearing, the City Council shall conduct a public hearing on the
variance request giving any individual who desires to present information or evidence to
the City Council on the appropriateness or inappropriateness of the variance, the
opportunity to appear before the City Council and present such information. At the
conclusion of the hearing, the City Council, by majority vote, may approve a variance to
the provisions of this moratorium resolution or may deny the request for variance.
PASSED AND APPROVED THIS DAY OF , 2011.
CITY OF SOUTHLAKE
M
Mayor
ATTEST:
City Secretary