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WS Item 3Ordinance No. 880-B, Revisions to Chapter 9.5 of the City of Southlake Code, Article V – Gas & Oil Well Drilling and Production. Work Session Presentation Current Status Basis for the Ordinance Changes Summary of Changes Proposed Schedule Council Direction Current Status City staff and attorneys developed draft Ordinance 880-B for City Council review Moratorium currently in place to allow for formal Ordinance 880-B adoption process Conduct City Council work sessions Present final ordinance to the City Council for public hearings and consideration Moratorium expires November 14, 2011 Basis for the Ordinance Changes Incorporation of the SUP Conditions Incorporation of BMP practices used by other cities Procedural Legal Tonight’s Goals Review major changes via the spreadsheet Receive Council’s input/recommendations on the proposed changes Other items/topic to consider Provide staff direction for next work session Summary Spread Sheet –p. 1 Section 9.5-222. Definitions Page 1 1. Blind/shear ram - added 2. Christmas Tree - added 3. Frac, fracture or fracturing - revised 4. Fresh water perennial stream - added 5. Green completion - added Summary Spread Sheet –p.2 Section 9.5-222. Definitions Section 9.5-223. Variance Procedure Page 2 6. Lightning arrestor - added 7. Clarify general variance procedure 8. Consent form signatures – no guarantee for approval 9. Added requirement of administrator’s determination of “complete application” 10. Revised language regarding filing 11. Revised language to include P&Z Summary Spread Sheet –p. 3 Section 9.5-223. Variance Procedure Section 9.5-225. Takings Determination Page 3 12. Added language to clarify variance request evaluation process 13. Added Section to address Takings Determination Summary Spread Sheet – p. 4 Section 9.5-232. Well permit required Section 9.5-233. Seismic survey Section 9.5-234. Application and review of well permit Page 4 14. Added language to better communicate the required tree protection permit 15. Added language to be more specific regarding seismic survey permit requirements 16. Added language regarding license agreements 17. Revised language to be more specific regarding site plan information 18. Condition of the SUP approval included to ensure the operator properly identifies proposed equipment specific to the site 19. Condition of the SUP approval included to ensure the operator identifies all compounds used in the frac’ing process and maintains current MSDS sheets Summary Spread Sheet – p. 5 Section 9.5-234. Application and review of well permit Page 5 20. Condition of the SUP approval; revised language for improved readability and incorporated additional submission information in regards to landscape irrigation and maintenance 21. Condition of the SUP approval included to ensure that a mud shaker is shown on the submitted site plan 22. Added language specifying details for an evacuation plan for nearby public facilities Summary Spread Sheet p. 6 Section 9.5-234. Application and review of well permit Page 6 23. Addition of leak detection and compliance plan to address general air quality concerns 24. Added requirement for a Green Completion plan 25. Added requirement for a gas dispersion model and risk assessment study 26. Added requirement for a cement casing program Summary Spread Sheet –p. 7 Section 9.5-234. Application and review of well permit Section 9.5-237. Insurance and indemnification Page 7 27. Revised language to raise the amount required for revolving account 28. Condition of the SUP approval which raised minimum coverage amounts Summary Spread Sheet p. 8 Section 9.5-237. Insurance and indemnification Section 9.5-239. Periodic reports Section 9.5-242. On-site operation requirements Page 8 29. Condition of the SUP approval which raised coverage amount for environmental impairment 30. Condition of the SUP approval which raised coverage amount for automobile liability 31. Condition of the SUP approval included to require a quarterly extended gas analysis report 32. Added language to clarify location definition Summary Spread Sheet p.9 Section 9.5-242. On-site operation requirements Page 9 33. Added language to add flexibility in timing requirement; and, reference to other governing documents that may apply 34. Added language giving Fire Marshal more flexibility to increase requirements 35. Condition of the SUP approval regarding air testing 36. Added requirement for annual review of evacuation plans Summary Spread Sheet-p.10 Section 9.5-242. On-site operation requirements Page 10 37. Added language for increased safety requirement 38. Added language to ensure MSDS sheets are kept current; and, to address long-term storage 39. Condition of SUP approval to include the use of green fluids Summary Spread Sheet p. 11 Section 9.5-242. On-site operation requirements Page 11 40. Condition of the SUP approval to address secondary containment systems 41. Condition of the SUP approval to include mud shaker installation and dust suppression Summary Spread Sheet p. 12 Section 9.5-242. On-site operation requirements Page 12 42. Added language to ensure complete emergency response plan 43. Added language for specific distance requirement for off-site permanent sources of ignition 44. Condition of the SUP approval to add testing of fresh water streams Summary Spread Sheet p. 13 Section 9.5-242. On-site operation requirements Page 13 45. Condition of SUP approval to include language for third-party consultant 46. Condition of SUP approval added language for streams and timing 47. Condition of SUP approval added testing parameters 48. Condition of SUP approval included requirement for vapor recovery system and green completion 49. Added language to extend emergency training Summary Spread Sheet p. 14 50. Added language to address noise and obnoxious gases, etc. from internal combustion engines. 51. Added language for specific sign material requirements 52. Added language to address truck route violators 53. Added language regarding on-site signs 54. Revised language to increase distance requirements Section 9.5-242. On-site operation requirements Page 14 Summary Spread Sheet p. 15 55. Added language regarding tank setback requirement 56. Condition of SUP approval to include specific requirements for surface casing 57. Condition of SUP approval to include a requirement for a thermal oxidizer 58. Condition of SUP approval to include a requirement for no-bleed pneumatic valves 59. Condition of SUP approval to increase the amount required for surface restoration bond Section 9.5-242. On-site operation requirements Page 15 Summary Spread Sheet p. 16 Section 9.5-242. On-site operation requirements Section 9.5-243. Operations and equipment practices and standards Page 16 60. Revised language for clarification of security camera requirement 61. Revised language adding the word “lightning” 62. & 63. Added language to expand regulations regarding noise nuisances that can be caused by pure tones and low frequency vibrations that can be measured by octave band levels. 64. Added language for noise abatement measures used for habitable structures within 1,000 feet Summary Spread Sheet- p. 17 Section 9.5-243. Operations and equipment practices and standards Page 17 65., 66. and 67. Added language for noise abatement measures required for habitable structures within 1,000 feet of the proposed gas well. These measures add continuous noise monitoring standards, increased height for noise blankets and additional soundproofing methods Summary Spread Sheet – p. 18 Section 9.5-245. Well operations and inspections Section 9.5-252. Public information Section 9.5-271. Pipeline markers Section 9.5-287. Unregulated pipeline permit application requirements Page 18 68. Condition of SUP approval addressing casing string testing 69. Revised language adding the use of social media 70. Revised language regarding state and federal regulation 71. Revised language regarding submittal material requirements necessary for staff review Proposed Schedule City Council Work Sessions August 2 August 16 August 30 (if needed) Potential City-wide SPIN Meeting September 12th or September 26th Potential City Council 1st Reading October 4th City Council 2nd Reading October 18th Questions?