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Item 4ICITY OF SOUTHLAKE MEMORANDUM June 15, 2011 To: Southlake City Council From: Ken Baker, AICP — Director of Planning & Development Services Subject: Resolution No. 11 -034, Extension of 180 -day Moratorium Action Requested: Consider approval of a 180 -day extension to the moratorium on the acceptance of processing of applications for gas well drilling permits and their associated requests in the City of Southlake to allow continued revisions to Ordinance No. 880 -A. Background Information: January 18, 2011: City Council adopted Resolution No. 11 -005, 180 -day Moratorium on the acceptance and processing of applications for gas well drilling permits and their associated requests. The Moratorium is due to expire July 17, 2011. Financial Considerations: None Strategic Link: Safety and Security, Quality Development. Citizen Input/ Board Review: N/A Legal Review: This resolution is under review by the City Attorney. Alternatives: 1) Approve resolution as presented; 2) Approve with modifications to the proposed resolution; 3) Deny the proposed resolution. Supporting Documents: None RESOLUTION NO. 11 -034 A RESOLUTION EXTENDING A ONE HUNDRED EIGHTY (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 FOR AN ADDITIONAL ONE HUNDRED EIGHTY (180) DAYS; PROVIDING THAT THE FINDINGS AND PROVISIONS OF RESOLUTION NUMBER 11 -005 ARE RATIFIED AND REAFFIRMED; AND PROVIDING THAT THIS RESOLUTION SHALL TAKE EFFECT IMMEDIATELY UPON PASSAGE. WHEREAS, the City Council of the City of Southlake previously adopted Resolution Number 11 -005 suspending the 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 and 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; and WHEREAS, City staff is currently conducting such investigations as is deemed necessary to determine the state of regulations now applicable to oil and gas exploration and other forms of mineral extraction and transportation under the current ordinances and regulations of the City of Southlake so as to propose revised regulations that more adequately serve to protect the public health, safety and welfare as well as to mitigate the effects of such activity on property values and neighborhood character; and WHEREAS, the City has retained the services of various specialists on a consulting basis to render expert advice regarding environmental and land use compatibility issues created by oil and gas exploration and mineral extraction and transportation activities; and WHEREAS, while work has continued diligently to update City ordinances in accordance with the mandate established by Resolution 11 -005, City staff has reported back to the City Council that the initial one hundred eighty (180) day moratorium is not a feasible time frame within which the work might be completed and that an additional one hundred eighty (180) days is both reasonable and necessary; and WHEREAS, the City Council has determined that it remains important and necessary to continue to preserve the status quo, for an additional one hundred eighty (180) days, while new regulations governing oil and gas exploration and mineral extraction and transportation are developed and implemented to ensure compatible land uses that do not negatively impact property values or neighborhood character and to adequately protect the public health, safety and welfare; and (06/15/11) Page 2 WHEREAS, the City Council finds good cause to extend the moratorium and desires to ratify and reaffirm all findings and provisions of Resolution Number 11 -005. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. That the City Council finds good cause to, and hereby extends, a moratorium on the receipt, processing and approval 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. The moratorium imposed pursuant to Resolution Number 11 -005 shall be continued for an additional one hundred eighty (180) days, for a total of 360 days; provided, however, that this moratorium may thereafter be extended by the City Council for good cause shown. Notwithstanding the foregoing, the City Council may terminate this moratorium at any time. SECTION 2. The City Council hereby ratifies and reaffirms all findings and provisions of Resolution Number 11 -005, which shall remain in place and effective until the expiration of this moratorium, as set forth in Section 1 above. SECTION 3. This resolution shall be effective immediately upon its date of passage. PASSED AND APPROVED THIS DAY OF , 2011. CITY OF SOUTHLAKE John Terrell Mayor ATTEST: Alicia Richardson, TRMC City Secretary (06/15/11) Page 3