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Item 6B Ord 880-BORDINANCE NO. 880 -B AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS ( "CITY"), AMENDING ORDINANCE 880 -A "OIL AND GAS WELL DRILLING AND PRODUCTION" OF CHAPTER 9.5 — ARTICLE IV OF THE SOUTHLAKE CITY CODE, PROVIDING FOR REVISED REGULATIONS GOVERNING THE DRILLING AND PRODUCTION OF OIL AND GAS WELLS AND THE INSTALLATION OF PIPELINES WITHIN THE CITY; PROVIDING FOR REVISED REGULATIONS REGARDING DISTANCE, NOISE AND TECHNICAL CRITERIA; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY FOR VIOLATIONS HEREOF; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN PAMPHLET FORM; PROVIDING FOR PUBLICATION IN THE OFFICIAL CITY NEWSPAPER; AND ESTABLISHING 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 XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, on May 20, 2008, the City Council of the City of Southlake adopted Ordinance Number 880 -A, governing the drilling and production of gas wells and the installation of gas pipelines within the city limits of Southlake; and WHEREAS, since the adoption of Ordinance Number 880 -A, the City Council has considered two zoning applications for gas well development and production in the City; and WHEREAS, during the pendency of the zoning cases the City Council engaged Cudd Well Control in order to solicit well control engineering and gas dispersion modeling services; and WHEREAS, during the pendency of the zoning cases the City Council considered significant input and testimony from the oil and gas well operator /applicant regarding well development feasibility and public safety matters; and WHEREAS, the City Council, after due and careful consideration, determined that the regulations established by Ordinance Number 880 -A were inadequate to address certain environmental and land use compatibility issues created by oil and gas exploration and mineral extraction, development and transportation activities; and WHEREAS, in light of such careful consideration, the City Council concluded that it was 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 also protecting the rights, opportunities and property interests of surface estate owners; and WHEREAS, at the direction of the City Council, City staff completed such investigations as it deemed necessary to determine the state of regulations 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 and has proposed revised regulations to the City Council that more adequately serve to protect the public health, safety and welfare and mitigate the effects of such activity on property values and neighborhood character; and WHEREAS, the City engaged the services of William M. Cobb & Associates, Inc., "Worldwide Petroleum Consultants ", to review and evaluate the Oil and Gas Well Drilling and Production Ordinance from a petroleum engineering perspective; and WHEREAS, in considering the draft amendment to the Oil and Gas Well Drilling and Production Ordinance, containing all City Council - proposed revisions thereto as of September 26, 2011, Cobb & Associates concluded, in relevant part, that "[i]t is ... our processional opinion that the proposed ordinance is functional and, in general, reasonable when considering issues related to conducting oil and gas operations ... "; and WHEREAS, the City additionally engaged the services of Modern Geosciences, a Texas Registered Geoscience Firm in order to evaluate the Oil and Gas Well Drilling and Production Ordinance from an environmental and geosciences perspective; and WHEREAS, Modern Geosciences has critically analyzed a draft amendment to the Oil and Gas Well Drilling and Production Ordinance containing all City Council - proposed revisions thereto as of September 26, 2011, and has provided a comprehensive environmental review memorandum documenting suggested revisions and commentary to the Ordinance; and WHEREAS, during its investigation, including its consideration of prior gas well development zoning cases, the City Council conducted TBD public meetings in order to study, deliberate and identify possible amendments to the Oil and Gas Well Drilling and Production Ordinance; and WHEREAS, during its investigation, including its consideration of prior gas well development zoning cases, the City Council considered over TBD hours of public testimony and comment concerning possible amendments to the Oil and Gas Well Drilling and Production Ordinance; and WHEREAS, the City Council has diligently and in good faith reviewed, deliberated and considered public, staff, and professional consultant input, including input provided during the pendency of prior gas well development zoning cases, in evaluating all reasonable and sound revisions to the Oil and Gas Well Drilling and Production Ordinance; and WHEREAS, the City Council finds that the amendments proposed herein justly and fairly balance the interests of mineral rights owners by providing for the orderly exploration, development, and production of hydrocarbons while also diligently protecting the public health, safety and welfare of the citizens of Southlake; and WHEREAS, in light of the foregoing, the City Council now deems it advisable and necessary to amend the current regulations for the drilling and production of oil and gas wells within the City of Southlake in order to protect the public health, safety and general welfare of the citizens of the City of Southlake, Texas. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: Section 1: The above findings are hereby found to be true and correct and are incorporated herein in their entirety. Section 2: That Article IV of Chapter 9.5, "Oil and Gas Well Drilling and Production" of the Southlake City Code, as amended, is hereby amended to read as shown in the attached and incorporated Exhibit "A," a copy of which is on file with the office of the City Secretary. The amendments adopted in this ordinance shall apply only to operations conducted under permits issued after the effective date of this ordinance. 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 4: 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 5: 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 and no cents ($2,000.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. Section 6: All rights and remedies of the City of Southlake are expressly saved as to any and all violations of the provisions of Ordinance 880 -A, as amended, or any other ordinances affecting oil, gas and hydrocarbon drilling, production, development, and transportation 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 7: 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 8: 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 ten (10) 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 (10) days after final passage of this ordinance, as required by Section 3.13 of the Charter of the City of Southlake. Section 9: This ordinance shall be in full force and effect from and after its date of passage and publication as required by law and it is so ordained. PASSED AND APPROVED on the 1st reading the day of , 2011. MAYOR ATTEST: CITY SECRETARY PASSED AND APPROVED on the 2nd reading the day of , 2011. MAYOR ATTEST: CITY SECRETARY APPROVED AS TO FORM AND LEGALITY: CITY ATTORNEY Exhibit "A" PLACE HOLDER FOR FINAL APPROVED DOCUMENT