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RESOLUTION NO. 82013-008
A RESOLUTION OF THE CITY OF DENTON, TEXAS, OPPOSING HOUSE BILL 1496,
RECENTLY INTRODUCED IN THE 83RD TEXAS LEGISLATURE, RELATING TO THE
APPLICABILITY OF THE PRIVATE REAL PROPERTY RIGHTS PRESERVATION ACT
TO CERTAIN GOVERNMENTAL ACTIONS RELATIVE TO OIL AND NATURAL GAS
DRILLING ACTIVITIES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, House Bill 1496 ("HB 1496") would make a municipal regulation that
imposes or enforces a limitation having the effect of preventing or prohibiting the development
of an oil or gas well subject to the Private Real Property Rights Preservation Act ("the Act"),
contained in Chapter 2007 of the Texas Government Code; and
WHEREAS, if HB 1496 is enacted by the Legislature, the Act will provide that the state
and other political subdivisions, including municipalities, consider whether a proposed regulation
might be a "taking" of private real property; and
WHEREAS, HB 1496 defines "private real property" to include "any interest in an oil or
natural gas well"; and
WHEREAS, the effect of HB 1496, if enacted, will be that any natural gas well not
permitted by a municipality may be subject to litigation pursuant to the Act, and that a "taking"
has occurred which would reduce the value of property by more than twenty-five percent; and
WHEREAS, under current law, municipalities are exempt as a matter of public policy
from the restrictions of the Act, but the passage of HB 1496 would specifically include
municipalities as being subject to regulation; and
WHEREAS, HB 1496, if enacted, would allow a claim for any municipal action that
"imposes or enforces a limitation having the effect of preventing or prohibiting" oil or gas well
development, while leaving the phrase in quotes to be interpreted by the courts of the State; and
WHEREAS, as written, HB 1496 appears to infer that natural gas drilling activities must
be permitted anywhere in a municipality, regardless of the health or other effects of such drilling
activities, and regardless of the distance of such drilling activities from homes, schools,
hospitals, public buildings, water wells and other similar uses of property, or else the
municipality may be subjected to litigation; and
WHEREAS, the only exception in HB 1496 is unclear, stating that the provisions of HB
1496 do not apply to "an action that imposes or enforces a reasonable standard relating to
visual aesthetics; noise abatement; or hours of operation," while neglecting to define what is a
"reasonable standard" and by whom such determination is made; and
WHEREAS, it is clear that HB 1496 will negatively impact municipalities since city
residents live in much closer proximity to one another than rural residents in the State, and
i
s:\legal\our documents\resolutions\13\resolution opposing hb 1496 re private property rights and gas drilling Aoc
neighboring property uses in municipalities naturally impact each other to a much greater degree;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The City Council hereby adopts and incorporates the above referenced
findings in this Resolution.
SECTION 2. The need for municipal regulatory authority is paramount when drilling or
production of natural gas or oil in the subsurface mineral estate is occurring since drilling
operations have distinct implications upon the surface estate and the owners of neighboring
surface estates.
SECTION 3. The City Council therefore opposes the adoption of HB 1496 and the City
Manager, or his designee, is hereby authorized to forward this Resolution to appropriate Senate
and House members of the 83rd Session of the Texas Legislature and to engage all efforts to
defeat this bill.
SECTION 4. This Resolution shall take effect immediately from and after its date of
passage.
PASSED AND APPROVED this the day of , 2013.
MA A. U HS, AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPR D Z O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
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