HomeMy WebLinkAboutWS Item 01 - Oil and Gass Well Drilling ��E� � �u s � �
MEMO T : HONORABLE MAYOR, CITY C�UNCIL MEMBERS
� FRO : BRUNO RUMBELOW, CITY MANAGER V'
SCOTT WILLIAMS, DEVELOPMENT SERVICES DIRECTOR
MEETING DAT� AUGUST 17, 2010
SUBJEC : WORKSHOP -AMENDMENTS TO CHAPTER 12 HEALTH AND
SANITATION, ARTICLE VII, OIL AND GAS WELL DRILLING
RECOMMENDATION:
City Council to c sider a request by Chesapeake Energy regarding possible amendments
to Grapevine Co� e of Ordinances, Chapter 12, Health and Sanitation, Article VII, Oii and
Gas Drilling, and take any necessary action.
BACKGROUND .NFORMATION:
On March 16, 2� 10, City Council approved amendments to Chapter 12, Health and
Sanitation, Artic�VII, Oil and Gas Drilling of the Grapevine Code of Ordinances. Among
other things, th �e amendments strengthened the requirements for landscaping and
screening, and e tablished a 60-day deadline for the removal of frac ponds following the
fracturing of the�rst well. The amendmenfis have provisions for allowing the frac pond to
remain if continu� us drilling/fracturing takes place.
Chesapeake En rgy has since submitted a request that City Council reconsider the
requirements for removal of the frac pond within 60 days of fracing the first well. The
attached letter f m Chesapeake Energy requests City Council consider amending the
ordinance to all two years for removal of the frac pond, stating that the 6Q-day time
period would be isruptive to the City for the following reasons:
• Mu tiple construction cycles would be required
• Creation of excessive dust
• W r and tear on city roads
• Inc eased noise levels
• Inc eased traffic.
Should City Cou cil wish to amend the ordinance, staff will present a draft at a future
meeting.
R:WGENDAIO$-17-10�A 10-02.41.doc
1
1 .
Ch����
esa�eake Lynda Gearheart
1 E N E R G Y Froject Managej•
June �0, 2010
VIA HAND DELIVERY Jl.11�t � � 2010
Scott Williams, C.B.O.
City of Grapevine
Director of Department of Development Services
P.O. Box 95104
(�rarn,p�!!�?�, �������
Re: Frac Pond Ordinance �
Dear Mr. Williams:
Thank you for allowing Chesapeake Energy the opportunity to review the amendments
made to the City of Grapevine's frac pond ordinance on M�rch 16, 2010. Based on our
review, we would like to offer some suggestions that we believe could improve the
outcome for all involved.
The amended frac pond ordinance currently states:
Fracfuring fluid pit shall be backfilled and provided wifh suitable groundcover or turf
within 60 days of completion of fracturing the frrst well. li'Vhere subsequent well drilling is
initiafed within 60 days of completion of drilling the first well, the remova! of the fracture
f/uid pond may be delayed for continuoras drilling of additional wells, provided that all
drilling of wells be initiated within 60 days of completion of drilling of the previous well.
Chesapeake believes this strict 60-day timeline would prove to be disruptive to both the
City and its residents, for the following reasons:
• It encourages multiple construction cycles rather than allowing this process to be
completed only once during the lifespan of a padsite.
• The movement of large amounts of dirt during the construction and reclamation
of a frac pond has the potential to increase the dust generated in the area,
creating a nuisance for nearby residents and businesses.
• The transportation of multiple pieces of heavy machinery and equipment to and
from the padsite can escalate the wear and tear on state and city roads.
• The additional truck traffic associated with the delivery of heavy machinery and
equipment can add to area noise levels.
Chesapeake Energy Corporation
100 Energy Way•Fort Worth,T'X 76102
main 817.502.5000 •direct 817.502.5682•Lynda.Gearheart@chk.com
Chesapeake Energy Corporation 2
a More trucks can increase the traffic on approved transportation routes that are
� also used by residents and the Grapevine Mills Mall on a daily basis.
While Chesapeake understands the intention of the ordinance as written is to minimize
the impact of natural gas production, we believe that once implemented, the ordinance
changes will have the opposite effect — creating an environment of continuous
construction and increased truck traffic, likely drawing the dissatisfaction of nearby
residents and businesses alike.
For this reason, Chesapeake respectfully recommends that the City modify the
suggested 60-day timeline for reclamation of frac ponds to two (2) years, contingent on
drilling and fracturing activities. Under those circumstances, if a natural gas operator
were to cease to operate on a padsite within the two-year time frame, the City could
request that the frac pond be reclaimed. We hope you will agree that this modification
woufd be�morE benericial ror ail parties involved.
Chesapeake has worked hard in the many, municipalities in which we operate to ensure
frac ponds blend into the surrounding environment. In fact, many land owners value the
frac pond as an enhancement to their property and are desirous of keeping it as a
permanent water feature. All of our frac ponds are fenced for security, mowed, weeded
and maintained monthly or more often, as needed. In some instances, fresh water frac
ponds have become a refuge for. area wildlife and provide tremendous residual benefits.
_ We hope that you will consider these advantages when weighing the alternative of
repetitive construction cycles that would be a result of the current ordinance.
Thank you for considering our proposed change to the amendment. Should you have
any questions, I am available to discus� this matter further at your convenience.
Cordially,
�`a�v�� _
L a Ge rh rt
. ,
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P�s��b�� V�r��bl�� �f���t�n� T�nl�len� Chesa.���k�
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Pe�fect VVorld Drillin� Timeline / �in�le Ga� V1/ell Chesa�-eake
�NERGY
- - - - --�
� � � � � � � � � � � � � � � � � � � � �
Site Preparation Drilling Post-Drilling Fracing Production
(3 weeks) (4 weeks) (8 weeks) (3 weeks) (3 weeks)
� Padsite prepared � Rigging up completed � Site work e Completion rig moved in � Water-gathering tanks
o Sound walls installed m Pipe delivered � Maintenance of drilling v Well bore opened — set up
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preparations performed � Drilling equipment removed � Fracing equipment e Pipeline connected
performed � Equipment continually • Padsite cleaned transported (when possible)
maintained/cleaned
� Total Weeks = 21 *
� Average Grapevine padsite
contains 8 wells = 3.23 years
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ORDINANCE NO. -
AN ORD(NANCE OF THE CITY CQUNCIL OF THE C1TY OF
GRAPEViNE, TEXAS, AMENDING THE GRAPEVINE CODE �F
ORDINANCES CHAPTER 12 HEALTH AND SAN(TATION,
ARTICLE VII, OIL AND GAS WELL DRIL.LING, REPEAL.ING
CONFLIGTING ORD(NANCES PROV(D1NG A SEVERABILITY
CLAUSE; PROVIDING A PENALTY NOT TO EXCEED TWO
THOUSAND DOLLARS ($2,OQ0.00) FOR EACH SEPARATE
OFFENCE SHALL BE DEEMED COMMITTED UPON EACH
DAY DURING OR ON WHICH A VIOLATION OCCURS;
DECLARING AN EMERGENCY AND PROVIDING AN
EFFECTIVE DATE ,
WHEREAS, the City Cauncil of the City of Grapevine, Texas, deems it necessary
for the purpase of promoting the health, safety, morals, or general welfare of the City ta
amend the Code of Ordinances to add additional regulations regarding oil and gas well
drilling an praduction regulations; and
WHEREAS, afl lega! prerequisites and requirements for the passage of this
Ordinance have been adhered to, including but not limited to the Open Meeting Act; and
�WHEREAS, the City of Grapevine City Council, deems the passage of this � �
ordinance is in the best interest of the health, safety, and weifare of the public. � �
NQW, THEREFORE, BE IT (?RDAlNED BY THE C1TY COUNClL OF THE ClTY
OF GRAPEVlNE, TEXAS: �
Section 1. That all matters sta#ed hereinabove are found to be true and correct
and are incarporated herein by reference as if copied in fiheir entirety.
Sectian 2. That Chapter 12, Health and Sanitation, Rrticle VIl, Oil and Gas
Well Drilling, Section 12-144 Site Plan Requirements is hereby amended by the addition
of the fallowing:
The applicant requesting gas wel{ dri{ling and production approva! shal! submit
#he required number of copies of the site .plan drawing:as determir�ed by the
Administrative Official and which complies with this section. The si#e plan shall
be required as part of and in addition to the special use permit submitta!
documents required bv Sec#ion 49. Special Uses, of the Grapevine
Comqrehensive Zotiinc� Ordinance.
Section 3. That Chapter 12, Health and 5anitation, Article VlI, Secfiion 12-145
Qil and Gas Well Driliing and Production Standards, {a) an-site requirements is hereby
amended by the addition of the following: � \.
. �
�
��
6. Screening: All well heads, storage tanks, separation facilities or other
mechanical equipment shall be screened with an eiqht (8) foot 6-�es� high
� masonrv screeni,� fence�o^�� for�inn frnw, +ho ...�c .,r .,il �e�oll.
' Such screeninq shall be installed within sixtv (60) davs of completion
of drillinq the first well on the site. Where subseQuent well drillinq is
initiated within sixtv (60) davs of completion of drillinq the first well,
the screeninq mav be delaved a maximum of sixtv (60) davs from the
completion of the subsequent well. Such delavs mav be permitted
for continuous drillinu of additional wells, provided that all drillinq of
� wells be initiated within sixtv (60) davs of completion of drillinq of
the previous well.
7. Landscapinq: Screenina shrubs shall be installed completelv
. around the well site except at qates, and all fences and be sufficient
to screen from view the structures souqht to be screened. Screeninq
shrubs shall be a minimum of three (3) feet in heiqht at plantinq,
have the potential to qrow to a mature heiqht of a minimum of eiqht
(81 feet and must have an installed irriqation svstem that urovides
total water coveraqe to all plant materials. The veqetation or berms
shall be kept in an attractive state and in qood condition at all times
bv the applicant or operator. All Landscape and irriqation plans shall
be submitted in accordance with Section 53 of the Grapevine
Comprehensive Zoninq Ordinance. Such landscauinq shall be
installed within sixtv (601 davs of completion of drillinq the first well
�on the site. Where subseauent well drillinq is initiated within sixtv
(60) davs of completion of drillinq the first well, the screeninq mav be
delaved a maximum of sixtv (60) davs from the completion of the
subsequent well. Such delavs mav be permitted for continuous
drillinq of additional wells, provided that all drillinq of wells be
initiated within sixtv (60) davs of completion of drillinq of the
previous well�.
�.8. Closed-loop drilling fluid systems: Closed-loop drilling fluid systems shall
be used instead of lined reserve pits.
�.9. Discharge: No person shall place, deposit, discharge, or cause or permit
to be placed, deposited or discharged, any oil, naphtha, petroleum,
asphalt, tar, hydrocarbon substance, or any refuse including wastewater
or brine from any oil and/or gas operation, or the contents of any container
used in connection with any oil and/or gas operation in, into, or upon any
public right-of-way, alleys, streets, lots, storm drain, ditch or sewer,
sanitary drain or any body of water or any private property in the City of
Grapevine.
_ ORD. NO. 2
� -
�.10. Drilling fluids: Low toxicity glycols, synthetic hydrocarbons, polymers, and
esters shall be substituted for conventional oil-based drilling fluids.
a-9.11. Drilling fluid storage pits: No drilling fluid storage pits shall be located
within the City of Grapevine.
a-a-.12. Drill stem testing: All open hole formation or drill stem testing shall be
done during daylight hours. Drill stem tests may be conducted only if the
well effluent during the test is produced through an adequate oil and/or
gas separator to storage tanks and the effluent remaining in the drill pipe
at the time the tool is closed is flushed to the surface by circulating drilling
fluid down the annulus and up the drill pipe.
�.13.Signs:
a. A sign shall be immediately and prominently displayed at the gate
on the temporary and permanent site fencing. Such sign shall be
durable material, maintained in good condition and, unless
otherwise required by the Commission, shall have a surface area of
not less than two square feet nor more than four square feet and -
shall be lettered with the following:
i. Well name and number;
�ii. Name of operator; _ '
iii. The emergency 911 number; and
iv.� Telephone numbers of two persons responsible for the well
who may be contacted 24 hours a day incase of an
emergency.
b. Permanent weatherproof signs reading "DANGER NO SMOKING
ALLOWED" shall be posted imr�ediately upon completion of the
well site fencing at the entrance of each well site and tank battery
or in any other location approved or designated by the fire chief of
the City of Grapevine. Sign lettering shall be four inches in height
and shall be red on white background or white on a red
background. Each sign shall include the emergency notification
numbers of the fire services department and the operator, well and
lease designations required by the Commission.
Section 4. That Chapter 12, Health and Sanitation, Article VII, That Chapter 12
Health and Sanitation, Section 12-145(b)(13) is hereby deleted.
, ,
ORD. NO. 3
�( �
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mov f fi��o f�o� .�nrl if n } h.+�io •+n inc},,�IoiJ irrin�4inn
rrrcnc�6nTv�rv � �$$��Sc-rra-a�-Cm�rrstQtr
I .��}���{��oo +n�nl �ei.,�or nn�ior•,��_�, n+ m�c��.�.—Tr'��
��vc9�tc�ti n n7vrrvTvc-f n-r�—�i'I I h o n,�} i"n—a rr'cr���--��tti�--'aii� �cr-rn—gvvQ
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��8n �} �II �im�_kj,�,�}}��pnl�n�e�qqor�+��� Ir+niJ nnr�o nnr�
.r� �...� �,r.r..,. . .,r,
inr.�r�i�A��r+�h.�ll ho �i�hmi���� .
Section 5. That Chapter 12 Health and Sanitation, Article VII, Section 12-145
Oil and Gas Well Drilling and Production Standards, (c) Environmental safety standards
is hereby amended by the addition of the following:
22. Drilling Mud Pits, and Fracturina Fluid Pits shall adhere to the following
requirements: �
{Items a. - d. to remain unchanged}
e. FracturinQ fluid pit shall be backfilled and provided with _
suitable qroundcover or turf within sixtv (601 davs of
completion of fracturinq the first well. Where subsequent well
drillinq is initiated within sixtv (60) davs of completion of
drillinq the first well, the removal of the fracture fluid pond
mav be delaved for continuous drillinq of additional wells, _
provided that all drillinu of wells be initiated within sixtv (60)
dav of completion of drillinq of the previous well.
Section 6. That Chapter 12 Health and Sanitation, Article VII, Section 12-150
Notice of Activities is hereby amended by the addition of the following:
Sec. 12-150. Notice of activities.
(a1 Anv person who intends to drill a qas or oil well shall provide
written notice to the Director of Development Services,
Director of Public Works, and the Fire Marshal at least ten (.10)
, davs before the drillinq beqins. Such notice shall be required -
for each well on the site.
(b1 Anv person who intends to proceed with fracture stimulation
- of a well shall provide -written notice to the Director of
Development Services, Director of Public Works, and the Fire
Marshal at least ten (10) davs before the fractinq beqins. Such
notice shall be repuired for each well on the site.
(c) Written notice shall be provided to the Director of -
Development Services, Director of Public Works, and the Fire
Marshal when anv drillinq or fracture stimulation activitv is
complete, or at anv time such activitv has ceased for a period
' of thirtv (30) davs. Such notice shall be required for each well
on the site.
ORD. NO. 4
(ad) Any person who intends to re-work a well using a drilling rig, to
fracture stimulate a well after initial completion, or to conduct seismic
exploration involving explosive charges shall give written notice to the
city at least ten days before the activities begin.
(�e) Written notices must be provided, by the operator, to all residences
within 1,000 feet of a well, 24 hours prior to fracing of a wellhead.
(sf) The notice shall identify where the activities will be conducted and
shall describe the activities in reasonable detail, including but not
limited to the duration of the activities and the time of day they will be
conducted.
(�g) The notice shall also provide the address and 24-hour phone number
of the person conducting the activities.
(eh) The person conducting the activities will post a sign on the property
giving the public notice of the activities, including the name, address,
and 24-hour plione number of the person conducting the activities.
Section 7. Any person violating any of the provisions of this ordinance shall be
deemed guilty of a misdemeanor and upon conviction thereof shall be fined in a sum not
to exceed finro thousand dollars ($2,000.00) for each offense and a separate offense
shall be deemed committed each day during or on which a. violation occurs or
continues. � �
Section 8. All ordinances or any parts thereof in conflict with the terms of this
ordinance shall be and hereby are deemed repealed and of no force or effect. .
Section 9. If any section, subsection, sentence, clause or phase of this
ordinance shall for any reason be held to be invalid, such decision shall not affect.the
validity of the remaining portions of this ordinance.
� Section 10. The fact that the present ordinances and regulations of the City of
Grapevine, Texas are inadequate to properly safeguard the health, safety; morals,
peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an
emergency for the immediate preservation of the public business, property, health,
safety and general welfare of the public which requires that this ordinance shall become
effective from and after the date of its passage, and it is accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF _
GRAPEVINE, TEXAS, on this the 17th day of August, 2010.
ORD. NO. 5
�
, �� APPROVED:
ATTEST:
APPROVED AS TO FORM:
ORD. NO. 6