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HomeMy WebLinkAboutMarch 24, 2015 Agendatru�Mltli �'� � k, Tuesday, March 24, 2015 City of Denton Meeting Agenda City Council 2:30 PM City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Work Session Room After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Special Called Work Session on Tuesday, March 24, 2015 at 2:30 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: Work Session Reports A. ID 15 -059 Receive a report and hold discussion on the implementation of the Travel Demand Model of the Denton roadway system, and the resulting proposed updates to the current Mobility Plan that are necessary to implement the Road Impact Fees. Attachments: Exhibit 1 Mobility Plan Presentation B. ID 15 -134 Receive a report, hold a discussion, and give staff direction regarding delivery trucks stopping in the roadway on the Downtown Square. C. ID 15 -191 Receive a report, hold a discussion, and give staff direction regarding the regulation of fees for the nonconsensual towing of vehicles from private property. D. ID 15 -247 Receive a report, hold a discussion, and give staff direction regarding an amendment to the membership of the Economic Development Partnership Board. Attachments: Exhibit 1 - Option 1 with highlighted changes Exhibit 2 - Option 2 with highlighted changes E. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. City ofDenton Page I Printed on 311912015 City Council Meeting Agenda March 24, 2015 Following the completion of the Special Called Work Session, the City Council will convene in a Special Called Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. Closed Meetinu A. ID 15 -222 Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in the Morreau Forrest Survey, Abstract Number 417, located generally in the 200 block of North Mayhill Road, City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. (Mayhill Road Widening and Improvements project - Parcel M085 - CCBV, LLC) B. ID 15 -238 Consultation with Attorneys - Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys litigation styled In re: Arsenal Minerals and Royalty, et al. v. City of Denton; cause number 4:14 -cv- 00639, currently pending in the US District Court, Eastern District Sherman Division where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. C. ID 15 -234 Consultation with Attorneys - Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with the current Gas Well Ordinance, and proposed Gas Well Ordinance amendment, regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including: Constitutional limitations, statutory limitations upon municipal regulatory authority; statutory preemption and vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice - versa; current and proposed extension to, moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance, both current and proposed; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative ordinance and pending litigation styled Jerry Patterson, Commissioner, Texas General Land Office v. City of Denton Texas, Cause No. D- 1- GN -14- 004628 currently pending in the City ofDenton Page 2 Printed on 311912015 City Council Meeting Agenda March 24, 2015 53rd District Court of Travis County and Texas Oil and Gas Association v. City of Denton, Cause No. 14- 09833 -431 currently pending in the 431st District Court of Denton County regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071- 551.086 OF THE TEXAS OPEN MEETINGS ACT. Special Called Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: Items For Individual Consideration A. ID 15 -248 Consider adoption of an ordinance amending Ordinance No. 2003 -258, as amended by Ordinance No. 2011 -042 and Ordinance No. 2014 -009, relating to the Economic Development Partnership Board ( "the Board ") to add to the membership of the Board; repealing all conflicting ordinances and portions thereof, and providing an effective date. Attachments: Exhibit 1 - Option 1 Exhibit 2 - Option 2 Exhibit 3 - Ordinance 2003 -258 Exhibit 4 - Ordinance 2011 -042 Exhibit 5 - Ordinance 2014 -009 Public Hearings A. DCA14 -0009 Continue a public hearing and consider adoption of an ordinance amending e Subchapters 5, 7, 16 and 22 of the Denton Development Code, relating to Gas Well Drilling and Production, Definitions and Procedures; amending Ordinance No. 2013 -248, relating to planning and development fees and road damage remediation fees relating to gas well drilling and production activities; adding new Subchapter 22A to the Denton Development Code, relating to Oil and Gas Pipelines, Definitions, Procedures; providing a cumulative clause; providing a severability clause; providing for a penalty; and providing for an effective date (DCA14- 0009e). The Planning and Zoning Commission recommends denial (4 -3). A supermajority vote by City Council is required to adopt a motion to approve this ordinance. City ofDenton Page 3 Printed on 311912015 City Council Meeting Agenda March 24, 2015 Attachments: Exhibit 1 Table of Revised Ordinances Exhibit 2 Clean Ordinance and Redlined Draft of DDC Subchapter 22 Exhibit 3 Clean Ordinance Draft of DDC Subchapter 7.16 Exhibit 4 Clean Ordinance Draft of DDC Subchapter 16.7 Exhibit 5 Clean Ordinance Draft of DDC Subchapter 5 Exhibit 6 Clean Ordinance Draft of DDC Subchapter 22A Exhibit 7 Fee Ordinance Exhibit 8 Public Responses to CC and P &Z from Dec 2014 meeting Exhibit 9 Public Responses to Additional Questions from PZ and the Public Exhibit 10 Draft Minutes of the February 4, 2015 P &Z Meeting CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2015 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349 -8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1- 800 - RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. City ofDenton Page 4 Printed on 311912015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 15 -059, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Utility Administration CM/ ACM: Howard Martin, 349 -8232 Date: March 24, 2015 SUBJECT Receive a report and hold discussion on the implementation of the Travel Demand Model of the Denton roadway system, and the resulting proposed updates to the current Mobility Plan that are necessary to implement the Road Impact Fees. BACKGROUND The City Council authorized the contract with Kimley -Horn & Associates, Inc. (KMH) on January 7, 2014 to implement the Road Impact Fees in Denton. During the work effort on development of the impact fee project it was determined that it was necessary to update the current Mobility Plan as it had become dated. The Mobility Plan is a core component of the Denton Development Code. Exactions for road improvements from proposed developments are based on the Mobility Plan along with the road cross - sections in the Transportation Criteria Manual. In addition, all of the road construction that is related to capacity upgrades and mobility improvements is tied to the Mobility Plan. To develop a Mobility Plan or Master Thoroughfare Plan, computer models are now used to determine the travel demands for the entire road network. To bring the Denton Mobility Plan to modern standards, it was therefore necessary to use the applicable computer model that would allow the city to then rely on a technically sound master transportation plan that is based on actual traffic counts, that is calibrated for the existing conditions, and that would project build out needs of the transportation system. Staff, also wanted to better assess the traffic on existing streets and determine the level of service that is currently provided by all of the arterial and collector streets. This more precise determination of the current level of traffic on the existing streets would then also provide for excess capacity determination of the existing streets that would be eligible for impact fees. To accomplish the above tasks a Travel Demand model needed to be developed. The City Council authorized an amendment to the consultant contract for implementation of this model in May 2014. The following provides a brief summary of the scope of consultant work for implementation of the Travel Demand Model; • Develop a travel demand model that the City can utilize to evaluate travel demand needs and continue to use the travel demand model on an on -going basis; • Expand and evaluate the functional classification of the current Mobility Roadway Plan to include type of roadway; • Develop alternative design cross sections for the type of roadway and incorporate the pedestrian and bicycle components into the overall Mobility Roadway Plan; and • Evaluate future roadway level of service and alignments to provide recommendations to the current Mobility Roadway Plan As part of the project, KMH has developed an existing condition Base Year Model (Year 2014) that is calibrated with City of Denton Page 1 of 3 Printed on 3/19/2015 File #: ID 15 -059, Version: 1 current traffic data. KMH then utilized the Base Year Model to assist in the development of the Year 2040 Build Out Model. The purpose of the 2040 Build Out model is to develop the ultimate Mobility Roadway Plan. The Build Out model development required use of the Land Use Plan to determine future vehicle trips. The Land Use Plan was coordinated with the Denton 2030 Plan as part of the Comprehensive Plan Update. Based on the 2040 Build Out Model the following tasks are currently being performed; A. Functional Street Classifications: This task includes research of national best practices and industry standards, and makes recommendations for new functional street classifications to be considered as part of the plan update. B. Define Type of Streets: Recommendations to consider Context Sensitive Design for all transportation modes that are built upon concepts under consideration locally and regionally. This concept breaks down the functional street classification into types of streets which may be based on the surrounding land uses. Cross sections and plan views have been developed. C. Design Criteria Manual Revision: Explore how the new functional street classifications and cross sections will be incorporated into the Design Criteria Manual. A list of necessary revisions to the Design Criteria Manual will be produced and a process will be created to implement the changes. D. Alignment Considerations: KMH has analyzed the alignment alternatives at a conceptual level for the Mobility Roadway Plan. The consultant use available contours, parcel data /right -of -way information, utilities, flood plain and gas well locations to aid in the recommendation of alignment. This task anticipates looking at up to ten (10) roadway alignments (new and existing). E. Intersection Improvements: KMH will identify intersection improvement to aid in the overall mobility of the City. These improvements may include but are not limited to signals, turn lanes, roundabouts, etc. Working with city staff that included representatives from the Street Operations, Engineering and Planning departments, KMH has completed majority of the work identified in Items A through E above. Staff will present the results of the Travel Demand Model, the proposed changes to the current Mobility Plan, provide a brief update on Road Impact Fees implementation, and seek guidance on recommendation for approval of the proposed changes to the current Mobility Plan. RECOMMENDATION Staff is seeking guidance and recommendation for the proposed changes to the Mobility Plan. ESTIMATED SCHEDULE OF PROJECT N/A PRIOR ACTION/REVIEW (Council, Boards, Commissions) December 5, 2011: Staff presentation to the City Council regarding supplemental street funding February 6, 2012: Staff presentation to the City Council to provide an update regarding supplemental street funding September 10, 2013: Staff presentation to the City Council to provide an update and seek direction regarding supplemental street funding November 15, 2013: Staff presentation of proposed road impact fees to the Developer's Committee December 10, 2013: Work Session on Kimley -Horn and Associates, Inc consultant contract for implementation of road impact fees January 7, 2014: Approval of the Kimley -Horn and Associates, Inc consultant contract for implementation of road impact fees May -, 2014: Approval of the amendment to the Kimley -Horn and Associates, Inc consultant contract for implementation City of Denton Page 2 of 3 Printed on 3/19/2015 File #: ID 15 -059, Version: 1 of road impact fees December 9, 2014: Presentation of the Travel Demand Model and proposed changes to the Mobility Plan to the Mobility Committee January 12, 2015: Presentation of the Travel Demand Model and proposed changes to the Mobility Plan to the Traffic Safety Commission January 13, 2015: Presentation of update on the implementation of the system, the resulting proposed changes to the current Mobility Plan tha Fees, and street sections options conforming to context sensitive solutions. FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBIT Exhibit 1 Mobility Plan Presentation Travel Demand Model of the Denton roadway t are necessary to implement the Road Impact Respectfully submitted: P.S. Arora Division Manager City of Denton Page 3 of 3 Printed on 3/19/2015 em&WNWRNUWVPNM.mmm I I I E E E I I I NO 0 :0 Z> L- 0 11" NZ a ro 0L 0 I E l r l 0 1, r r L- i N O El elk ,,, 1 6! 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McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 15 -134, Version: 1 DEPARTMENT: CM /ACM: DATE: Police Jon Fortune March 24, 2015 Legislation Text Agenda Information Sheet SUBJECT Receive a report, hold a discussion, and give staff direction regarding delivery trucks stopping in the roadway on the Downtown Square. BACKGROUND In several areas of the city, particularly in retail hubs like the Downtown Square and near Fry Street, it is not uncommon to see delivery trucks stopped in a traffic lane to load /unload merchandise. The presence of these vehicles typically requires other motorists to change lanes to avoid the stopped vehicle, which results in a temporary road hazard and some traffic delays. On the Downtown Square, the stopped vehicles also block the path of motorists trying to back out of angled parking spaces. While these delays are relatively short in duration, they are frustrating for motorists. While the practice is disruptive and frustrating, it does not appear to be readily dangerous. In a Police Department study of downtown traffic crashes from 2009 - 2013, 16% of the 140 total crashes were factored for "backing without safety." However, none of these crashes were reported to have involved delivery vehicles stopped in the roadway. Similarly, 15% of the crashes were factored for "unsafe lane change ", with none detailing information related to a delivery vehicle being stopped in the road. It is possible that these vehicles could contribute to a crash, but there was no specific documentation to that effect during the study's timeframe. One possible explanation could be that motorists and pedestrians have accepted the presence of these vehicles and have adjusted their behavior accordingly to avoid crashes. The basic design and infrastructure of the buildings on the Square are primarily responsible for the continued practice of the delivery trucks stopping in the road. Unlike a typical business building, the vast majority of the businesses along the Square have zero lot lines and no off - street parking. There are no readily accessible areas on or near the Square where on- street loading zones could be established. In 1998, the City created on- street loading zones in the Fry Street area in conjunction with the Fry Street Small Area Plan. The intent was to provide a way for delivery trucks to park near businesses but not block traffic lanes. The zones were initially used by some companies, but eventually abandoned due to convenience and the lack of enforcement authority (see below) to mandate the practice. The only available parking lots in the area are not convenient to the businesses of the Square. The presence of trucks in these few lots is also disruptive to citizens and patrons of the area businesses. To further complicate the issue, many of the buildings in this area are not designed to receive deliveries in the rear of the business. Most lack a loading dock designed for a truck, and many lack the physical means for a dolly, hand truck or similar device to bring packages into the rear of the business. In City of Denton Page 1 of 2 Printed on 3/19/2015 File M ID 15 -134, Version: 1 addition, parking a delivery truck in the single lane of travel on one of the outer streets of the Square increases the danger to other motorists, as vehicles would be forced into on- coming traffic to move around a parked truck. Given the overall circumstances, delivery vehicles stopped temporarily in the road is likely the better of the available choices. Legal Parameters The Texas Transportation Code provides guidance for this practice is several areas. Chapter 541.401 (6) provides a definition for parking: "Park or parking means to stand (halt) an occupied or unoccupied vehicle, other than temporarily while loading or unloading merchandise or passengers. " Chapter 545.302 - Stopping, Standing, or Parking Prohibited in Certain Places details the various restrictions on parking. Section (c) of this chapter includes an exception to "temporarily load or unload merchandise or passengers. " The Transportation Code does not provide a definition of "temporarily" as it relates to these provisions. In short, the practice of stopping temporarily in the road to unload merchandise is legally authorized. While there may be some area to explore as it relates to a local definition of "temporarily" or to ascertain a reasonable amount of time required to unload merchandise, such an endeavor would be difficult to establish and even harder to enforce. As it stands, most delivery companies value prompt service and prefer their employees to make their delivery rounds expeditiously. The most likely of options to reduce the impact of this practice on the flow of traffic would be to enlist the help and cooperation of the local businesses. Where possible, if local businesses worked with their delivery companies to schedule deliveries for less -busy traffic times and to limit the amount of time spent on loading and receiving merchandise, it could provide a way to lessen the overall effect. RECOMMENDATION Staff recommends a continued effort to enlist the help of local business owners in scheduling deliveries at lower traffic times, and actively working to lower /limit the time delivery drivers spend at each business. PRIOR ACTION/REVIEW (Council, Boards, Commissions) None Respectfully submitted: Lee Howell Chief of Police Prepared by: Scott Fletcher Deputy Chief City of Denton Page 2 of 2 Printed on 3/19/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 15 -191, Version: 1 DEPARTMENT: CM /ACM: DATE: Police John Cabrales March 24, 2015 Legislation Text Agenda Information Sheet SUBJECT Receive a report, hold a discussion, and give staff direction regarding the regulation of fees for the nonconsensual towing of vehicles from private property. BACKGROUND The State of Texas regulates towing companies through the Texas Towing and Booting Act located in Title 14, Chapter 2308 of the Texas Occupations Code. Similarly, the State regulates vehicle storage facilities (VSF) pursuant to Chapter 2303 of the Occupations Code. Under the provisions of both chapters, the Texas Department of Licensing and Regulation (TDLR) is authorized to issue and enforce rules regarding the towing and storage of vehicles. Included in the rules that have been established for towing and storage of vehicles are: 1) Minimum insurance requirements for towing companies and vehicle storage facilities. 2) Licensing and permitting requirements for towing companies and vehicle storage facilities. 3) Requirements for tow truck drivers, including licensing, drug and alcohol testing, and criminal background checks. 4) Provisions for some local regulation of towing fees. 5) Requirements for specific signage for towing from private parking lots. 6) Establishment of hearings in Justice of the Peace Courts for towing issues. 7) Limitations on fees for incident management and private property nonconsensual tows. 8) Requirements for itemized towing and storage tickets. 9) Limitations on fees charged by vehicle storage facilities. 10) Requirements for the operation of vehicle storage facilities. TDLR has a complaint resolution process that includes an on -line portal for filing complaints related to towing and /or vehicle storage issues. TDLR conducts investigations and can assess penalties and sanctions against individuals and companies for violations of the law or TDLR rules. Nonconsensual Tows Nonconsensual towing is defined as the removal of a vehicle by tow truck without the consent of the vehicle's owner. Under State law, there are two legal ways that nonconsensual towing can occur: Police initiated (incident management) tows and private property tows. A tow truck operator must possess a license through TDLR that specifically allows them to perform non consent tows. City of Denton Page 1 of 5 Printed on 3/19/2015 File M ID 15 -191, Version: 1 Police initiated tows are typically done on vehicles that are disabled, damaged in a vehicle crash, or otherwise left in a position that creates an immediate hazard to traffic on a roadway. Other police initiated tows are performed on vehicles subsequent to the arrest of the driver. Police initiated tows are regulated locally through the provisions of Chapter 23, Article IV of the City's Code of Ordinances. The City establishes a rotation list of towing companies that apply to perform these tows and meet the City's requirements. Chapter 23 requires that towing companies on the rotation list apply for and receive a city towing permit. Towing companies that perform police- initiated tows must have a place of business inside the city limits. Further, the tow company must take the vehicle to a licensed vehicle storage facility that is located within the city limits. Private property tows are authorized by the owner or manager of the property, including multifamily residential properties and retail parking lots. Property owners that want to have a vehicle removed without the consent of the vehicle's owner must have the required signage posted on the property at least 24 hours in advance of the tow. Signage requirements are established by TDLR and located in the Texas Occupations Code in sections 2308.301 - 2308.305. The property owner can legally enter into contract with a licensed towing company to have the property monitored and to have vehicles parked there without owner authorization removed. The City of Denton does not provide any regulation of private property towing companies. Under the provisions of the Occupations Code, a political subdivision can require the registration and /or the permitting of a tow truck that performs private property tows in that subdivision, even if the owner of the tow truck has a place of business outside of the political subdivision boundaries. Vehicle storage facilities (VSF) that receive a vehicle from a private property non - consent tow inside the city limits are required to report the tow within two (2) hours to the Police Department. These tows are documented and used to assist citizens who call the Police Department to report a missing /stolen vehicle. Staff examined private property non - consent tows that occurred in the City from 2/1/12 through 1/31/15. These numbers were taken directly from Police Department records, and are exclusive of repossessions of vehicles by owners or financial /lending institutions. The chart below provides a breakdown of the tows by year and reported towing service. Private Property Non - Consent Tows Wrecker Cc 2012 2013 2014 Wrecker Cc 2012 2013 2014 Akers 47 62 25 Motorsport 13 12 6 All City Tow 0 1 0 On The Roa 2255 1980 1776 A Plus Towi 2 0 0 Prestige M 1 0 0 Archer Tow 0 1 0 Pro Tow 132 141 49 Bob's Towir 735 405 92 Ron's Towir 10 14 1 Brad's Towi 1 0 0 Signature T 1 O 1 0 E.J.'s Towin 315 206 144 Southwest j 0 0 102 Excalibur 0 9 0 Stan's Towi 605 437 82 Extreme To 33 5 3 Texas Impo 0 2717 3538 Insta -tune 1 0 0 Two Steppi 24 10 13 Jordan Tow 1 0 United Tow 0 6 0 LW's Towin 2 0 0 University 114 0 0 Mike's Tow J2 0 0 Yearly Tota 4192 6008 5831 City of Denton Page 2 of 5 Printed on 3/19/2015 File #: ID 15 -191, Version: 1 Towing Fees The City of Denton regulates the fees that may be charged for towing and storage of vehicles related to police - initiated tows. Chapter 18 -104 of the Code of Ordinances establishes the amounts and types of charges allowed for these services. The City does not currently regulate the fees charged for private property towing. Maximum private property tow fees are established in Texas Administrative Code, Chapter 16 Section 86.455. This section sets the maximum fees that can be charged for towing vehicles based on the vehicle's gross weight rating. While there are no current local ordinances governing private property tows, there is a provision in Chapter 2308 of the Occupations that allows for municipalities to establish fees for private property tows at a lower rate than those in Section 86.455. If a municipality chooses to enact lower private property towing rates, the municipality is also required to include provisions to allow a towing company to request a fee study. Further, the municipality must establish the allowable fees for non - consent tows that represent the fair value of the services of a towing company and are reasonably related to any financial or accounting information provided to the governing body. By law, TDLR commissions a study on private property tow fees once every two (2) years. This study examines tow studies conducted by municipalities in the State, and analyzes the cost of towing services by company, the consumer price index, the geographic area, and individual cost components. Following one of these studies and a series of hearings, TDLR adopted new maximum private property tow rates on March 1, 2015. Vehicle Storage Facility Fees Maximum fees that may be charged by a licensed Vehicle Storage Facility are established in Chapter 2030 of the Texas Occupations Code. A licensed facility is authorized to charge a one -time impoundment fee of $20, a daily storage fee of not less than $5 or more than $20, and a one -time notification fee of up to $50. The facility may also charge any fees related to the towing of the vehicle as outlined in chapter 2308. There are additional charges that may be authorized related to biohazard and other hazardous material issues. Other Municipal Fee Regulation While the vast majorities of political subdivisions in the State of Texas do not regulate private property tow fees, there are several that set rates below the State maximum. A small minority of those that regulate tow fees also set lower limits on vehicle storage facility fees. The authority for local regulation of Vehicle Storage Facility Fees is not clear in chapter 2303. Several municipalities also establish a "drop fee" by ordinance. A drop fee is defined as the maximum fee that may be charged for the release of a vehicle before its removal from the property or parked location (if the vehicle is hooked up). Some municipalities establish a specific drop fee amount, while others establish it as a percentage of the standard tow fee. The following chart provides a depiction of the current State maximum fees and the available municipal fees for private property tows and vehicle storage facilities. City of Denton Page 3 of 5 Printed on 3/19/2015 Towing Fees Vehicle Storage Fees Municipality Light Duty Drop Fee Storage Fee Impound Fee Notificat Fee Corpus Christi' $115 $50 $20 $20 $50 City of Denton Page 3 of 5 Printed on 3/19/2015 File #: ID 15 -191, Version: 1 Wichita Falls $90 n/a $20 $20 $50 San Marcos $75 $50 $20 $20 $50 Austin $150 $50 $20 $20 $50 Haltom Cityz $95 $38 $20 $20 $50 Richland Hills $120 n/a $15 $20 $32 San Anton iO3 $177 $89 $20 $20 $50 Houston $160 n/a $15 $20 $50 Nacogdoches3 $150 $75 $20 $20 $50 Amarillo3 $175 $88 $20 $20 $50 Bryan $125 $50 $20 $20 $50 Addison2 $95 $38 $20 $20 $50 Average $127 $59 $19 $20 $49 State Maximum3 $255 $128 $20 $20 $50 1- Corpus Christi allows for additional labor that increases the fee to $145 Z -Drop fee is 40% of standard tow fee s - Drop fee is 50% of standard tow fee OPTIONS The City has the authority to set private property fees at a rate lower than the State maximum. As stated above, the fees must represent the fair value of the services of a towing company and have to be reasonably related to financial or accounting information for the towing companies. If the City chooses to set private property fees, it will require the performance of a fee study to set the rates. Subsequently, the City will need to establish provisions to conduct future fee studies. Several municipalities that regulate these fees provide a means for tow companies to request the study in 2 year increments. They also require payment by the requesting firm(s) to help cover the cost of the study. The City also has the ability to require the registration and /or permitting of towing trucks performing private property non - consent tows in the city limits. The fee for this permit is limited by law to a maximum of $15. The City could easily extend the majority of the insurance and registration requirements already outlined in the ordinance for police- initiated tows. The City could also establish a stronger presence in monitoring and enforcing the other (non -fee) provisions of the Towing Act, such as inspection of signage and providing assistance to citizens with requesting tow hearings and filing complaints with TDLR. There is no current monitoring or enforcement of towing signage by City employees. Violations of any provisions of the Towing Act or TDLR rules are made directly to TDLR by the complainant. RECOMMENDATION City of Denton Page 4 of 5 Printed on 3/19/2015 File #: ID 15 -191, Version: 1 Staff recommends the following items regarding private property towing in the City of Denton: 1) Creation and adoption of a comprehensive Towing Ordinance - this ordinance would incorporate the existing regulations on police- initiated towing and be expanded to cover private property non - consent towing. The ordinance should include provisions for the following, to the extent authorized and allowed under the Texas Occupations Code and other State regulations: a. Registration of tow trucks performing private property non - consent towing. b. Insurance requirements for tow trucks performing private property non - consent tows. c. Equipment requirements for tow trucks. d. Criminal background checks for tow truck drivers operating within the city limits. e. Signage requirements for private property non - consent tows. f. Maximum fee rates for all non - consent tows. g. Requirements for periodic fee studies for non - consent tows. h. Requirements that private property non - consent tow vehicles be taken to a licensed vehicle storage facility (VSF) within the city limits. i. Requirement for a property owner or representative (not employed or affiliated with a towing service) be present at the time and authorize the non - consent towing of a vehicle from private property. 2) Establishment of an Ad Hoc Towing Committee - this committee of appointed citizens and (ex- officio) representatives of the towing industry would work with staff to develop the comprehensive towing ordinance outlined above and make a formal recommendation to City Council. 3) Creation of a "Towing Bill of Rights" - this document (written and electronic) would detail the various courses of action available to a person who has had their vehicle towed, including contact information for reporting violations, requesting tow hearings, current towing and storage fees, links to pertinent towing regulations, and a link to file an on -line complaint with TDLR. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Citizen Presentation - City Council Meeting - 03/03/15 FISCAL INFORMATION While there will be some necessary use of staff time in the development and enforcement of the proposed changes, there is no measurable negative fiscal impact to the City related to the majority of the recommended ordinance changes. Depending on the structure, there could be some cost associated with performing the fee studies. Many municipalities require some amount of payment from the requesting tow services to defray or cover the cost of the studies. Should the Council choose to require tow trucks be permitted for private property non - consent tows, the State authorizes an annual registration fee of up to $15 per truck. There would be a nominal amount of revenue generated from this permit process. Respectfully submitted: Lee Howell Chief of Police Prepared by: Scott Fletcher Deputy Chief City of Denton Page 5 of 5 Printed on 3/19/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 15 -247, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development CM/ ACM: George Campbell Date: March 24, 2015 SUBJECT Receive a report, hold a discussion, and give staff direction regarding an amendment to the membership of the Economic Development Partnership Board. BACKGROUND The Economic Development Partnership (EDP) Board was established on August 19, 2003 (Ordinance No. 2003 -258) following the development of the first Economic Development Strategic Plan by consultant TIP Strategies. The EDP Board is responsible for implementation of the current Economic Development Strategic Plan; making recommendations regarding both City and Chamber economic development annual action plans and budgets; and reviewing prospect incentive packages and making recommendations to City Council. The EDP Board Ordinance was amended to include an aviation representative on March 1, 2011 (Ordinance No. 2011 -042) and again on January 7, 2014 to include the Denton Independent School District Superintendent as an ex- officio member (Ordinance No. 2014 -009). The EDP Board has considered a variety of options over the last several months to add diversity to the board membership. The original proposal was suggested by Mayor Watts to add a representative from the Black Chamber of Commerce and a representative from the Hispanic Chamber of Commerce (Exhibit A - Option 1). Ultimately, the EDP Board made a recommendation for an alternate option that adds two at -large members while taking nominations from the Black and Hispanic Chambers of Commerce and considering the ethnic, racial, and gender diversity objectives of the City Council (Exhibit B - Option 2). PRIOR ACTION/REVIEW The EDP Board discussed this item on August 12, 2014; September 9, 2014; February 3, 2015; and February 10, 2015. On February 10, 2015, the EDP Board recommended approval (9 -0) of Option 2 for an amendment to the EDP Ordinance. FISCAL INFORMATION There will be no fiscal impact as a result of this Amendment. This Ordinance documents the addition of two members to the Board and repeals all conflicting Ordinances. City of Denton Page 1 of 2 Printed on 3/19/2015 File M ID 15 -247, Version: 1 EXHIBITS Exhibit 1 - Option 1 with highlighted changes Exhibit 2 - Option 2 with highlighted changes Respectfully submitted: Aimee Bissett Economic Development Director City of Denton Page 2 of 2 Printed on 3/19/2015 Exhibit A - Option 1 with highlighted changes ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 2003 -258, AS AMENDED BY ORDINANCE NO. 2011 -042 AND ORDINANCE NO. 2014 -009, RELATING TO THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD ( "THE BOARD ") TO ADD TO THE MEMBERSHIP OF THE BOARD; REPEALING ALL CONFLICTING ORDINANCES AND PORTIONS THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas has expressed the intent to diversify the Economic Development Partnership Board, it is in the public interest to modify the membership of the Economic Development Partnership Board to include participation of the Black Chamber of Commerce and the Hispanic Chamber of Commerce; and WHEREAS, the Economic Development Partnership Board has a proven track record of effectiveness in the City of Denton with regard to reviewing and making recommendations to the City Council concerning economic development within the community; and WHEREAS, the Economic Development Partnership Board has proven particularly adept in the recruitment of business and development in the community; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Article IX. Sec. 2 -251 of Ordinance No. 2003 -258 is hereby amended as follows: ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD Sec. 2 -251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the "Board "). The Board shall consist of eleven members. The nine board members currently serving shall serve as originally appointed. The members, as described in Sec. 2 -251 C (7) below, shall be appointed to serve effective in 2015. These two members shall draw straws to determine wliicli will serve an initial one year term and wliicli will serve an initial two year term. Thereafter, six members shall be appointed for a two -year term in even numbered years and five members shall be appointed for a two -year term in the odd numbered years. No member shall serve more than three consecutive terms except for the President of the University of North Texas ( "UNT "), or his designee, who may serve unlimited terms. B. The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. To aid the City Council in making appointments to the Board, the City Council will appoint two City Council members and one Denton Chamber of Commerce ( "Chamber ") member to act as a nominating committee (the "Committee "). The Committee members are qualified for appointment to the Board. The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve. The Exhibit A - Option 1 with highlighted changes C. Notwithstanding anything contained herein to the contrary the membership make- up of the Board shall consist of the following 1. Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. Two members of the Board shall be members of the Denton Chamber of Commerce Board of Directors ( "Chamber Board ") at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. They must reside or work in the City of Denton. The Chamber Board will recommend the two nominees for consideration by the Committee and the City Council. 3. Two members will be, or be employed by, a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City of Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. 5. One member will have knowledge or experience in general aviation - related matters and shall have no financial interest in matters at the Denton Municipal Airport. This member must reside or work in the City of Denton. 6. One member will be a citizen of the City of Denton who, in the discretion of the City Council, has specific knowledge skills and abilities to assist in all or any one of the functions and responsibilities of the Economic Development Partnership Board. Page 2 Exhibit A - Option 1 with highlighted changes 8. The City Manager, the President of the Chamber, and the Superintendent of the Denton Independent School District will serve as ad hoc non - voting members of the Board. SECTION 3. This Ordinance amends Ordinance No. 2003 -258, Ordinance 2011 -042, and Ordinance 2014 -009 and supercedes and repeals any provision of those ordinances, or any other, in conflict herewith. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12015. ATTEST: JENNIFER WALTERS, CITY SECRETARY : • APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY Page 3 CHRIS WATTS, MAYOR Exhibit B - Option 2 with highlighted changes ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 2003 -258, AS AMENDED BY ORDINANCE NO. 2011 -042 AND ORDINANCE NO. 2014 -009, RELATING TO THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD ( "THE BOARD ") TO ADD TO THE MEMBERSHIP OF THE BOARD; REPEALING ALL CONFLICTING ORDINANCES AND PORTIONS THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas has expressed the intent to diversify the Economic Development Partnership Board, it is in the public interest to modify the membership of the Economic Development Partnership Board to include participation of the Black Chamber of Commerce and the Hispanic Chamber of Commerce; and WHEREAS, the Economic Development Partnership Board has a proven track record of effectiveness in the City of Denton with regard to reviewing and making recommendations to the City Council concerning economic development within the community; and WHEREAS, the Economic Development Partnership Board has proven particularly adept in the recruitment of business and development in the community; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Article IX. Sec. 2 -251 of Ordinance No. 2003 -258 is hereby amended as follows: ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD Sec. 2 -251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the "Board "). The Board shall consist of eleven members. The nine board members currently serving shall serve as originally appointed. Two new members, hereby added as "at large" members in Sec. 2 -251 C (6) below, shall be appointed to serve effective in 2015. These two members shall draw straws to determine wllicli will serve an initial one year term and wliicli will serve an initial two year term. Thereafter, six members shall be appointed for a two -year term in even numbered years and five members shall be appointed for a two -year term in the odd numbered years. No member shall serve more than three consecutive terms except for the President of the University of North Texas ( "UNT "), or his designee, who may serve unlimited terms. B. The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. To aid the City Council in making appointments to the Board, the City Council will appoint two City Council members and one Denton Chamber of Commerce ( "Chamber ") member to act as a nominating committee (the "Committee "). The Committee members are qualified for appointment to the Board. The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve. The Exhibit B - Option 2 with highlighted changes C. Notwithstanding anything contained herein to the contrary the membership make- up of the Board shall consist of the following 1. Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. Two members of the Board shall be members of the Denton Chamber of Commerce Board of Directors ( "Chamber Board ") at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. They must reside or work in the City of Denton. The Chamber Board will recommend the two nominees for consideration by the Committee and the City Council. 3. Two members will be, or be employed by a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City of Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. 5. One member will have knowledge or experience in general aviation - related matters and shall have no financial interest in matters at the Denton Municipal Airport. This member must reside or work in the City of Denton. 6. Three members will be citizens of the City of Denton who, in the discretion of the City Council, have specific knowledge skills and abilities to assist in all or any one of the functions and responsibilities of the Economic Development Partnership Board. Page 2 Exhibit B - Option 2 with highlighted changes 7. The City Manager, the President of the Chamber, and the Superintendent of the Denton Independent School District will serve as ad hoc non - voting members of the Board. SECTION 3. This Ordinance amends Ordinance No. 2003 -258, Ordinance 2011 -042, and Ordinance 2014 -009 and supercedes and repeals any provision of those ordinances, or any other, in conflict herewith. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12015. ATTEST: JENNIFER WALTERS, CITY SECRETARY ffig APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY Page 3 CHRIS WATTS, MAYOR City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON Legislation Text File #: , Version: 1 Agenda Information Sheet SUBJECT Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. City of Denton Page 1 of 1 Printed on 3/19/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON Legislation Text File #: ID 15 -222, Version: 1 Agenda Information Sheet SUBJECT Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in the Morreau Forrest Survey, Abstract Number 417, located generally in the 200 block of North Mayhill Road, City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. ( Mayhill Road Widening and Improvements project - Parcel M085 - CCBV, LLC) City of Denton Page 1 of 1 Printed on 3/19/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON Legislation Text File #: ID 15 -238, Version: 1 Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys litigation styled In re: Arsenal Minerals and Royalty, et al. v. City of Denton; cause number 4:14 -cv- 00639, currently pending in the US District Court, Eastern District Sherman Division where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 3/19/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON Legislation Text File #: ID 15 -234, Version: 1 Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with the current Gas Well Ordinance, and proposed Gas Well Ordinance amendment, regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including: Constitutional limitations, statutory limitations upon municipal regulatory authority; statutory preemption and vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice - versa; current and proposed extension to, moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance, both current and proposed; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative ordinance and pending litigation styled Jerry Patterson, Commissioner, Texas General Land Office v. City of Denton Texas, Cause No. D- 1- GN -14- 004628 currently pending in the 53rd District Court of Travis County and Texas Oil and Gas Association v. City of Denton, Cause No. 14- 09833 -431 currently pending in the 431st District Court of Denton County regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 3/19/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 15 -248, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development CM/ ACM: George Campbell Date: March 24, 2015 SUBJECT Consider adoption of an ordinance amending Ordinance No. 2003 -258, as amended by Ordinance No. 2011- 042 and Ordinance No. 2014 -009, relating to the Economic Development Partnership Board ( "the Board ") to add to the membership of the Board; repealing all conflicting ordinances and portions thereof, and providing an effective date. BACKGROUND The Economic Development Partnership (EDP) Board was established on August 19, 2003 (Ordinance No. 2003 -258) following the development of the first Economic Development Strategic Plan by consultant TIP Strategies. The EDP Board is responsible for implementation of the current Economic Development Strategic Plan; making recommendations regarding both City and Chamber economic development annual action plans and budgets; and reviewing prospect incentive packages and making recommendations to City Council. The EDP Board Ordinance was amended to include an aviation representative on March 1, 2011 (Ordinance No. 2011 -042) and again on January 7, 2014 to include the Denton Independent School District Superintendent as an ex- officio member (Ordinance No. 2014 -009). The EDP Board has considered a variety of options over the last several months to add diversity to the board membership. The original proposal was suggested by Mayor Watts to add a representative from the Black Chamber of Commerce and a representative from the Hispanic Chamber of Commerce (Exhibit 1 - Option 1). Ultimately, the EDP Board made a recommendation for an alternate option that adds two at -large members while taking nominations from the Black and Hispanic Chambers of Commerce and considering the ethnic, racial, and gender diversity objectives of the City Council (Exhibit 2 - Option 2). PRIOR ACTION/REVIEW The EDP Board discussed this item on August 12, 2014; September 9, 2014; February 3, 2015; and February 10, 2015. On February 10, 2015, the EDP Board recommended approval (9 -0) of Option 2 for an amendment to the EDP Ordinance. FISCAL INFORMATION There will be no fiscal impact as a result of this Amendment. This Ordinance documents the addition of two City of Denton Page 1 of 2 Printed on 3/19/2015 File M ID 15 -248, Version: 1 members to the Board and repeals all conflicting Ordinances. EXHIBITS Exhibit 1 - Option 1 Exhibit 2 - Option 2 Exhibit 3 - Ordinance 2003 -258 Exhibit 4 - Ordinance 2011 -042 Exhibit 5 - Ordinance 2014 -009 Respectfully submitted: Aimee Bissett Economic Development Director City of Denton Page 2 of 2 Printed on 3/19/2015 sAlegal\our doctunents\ordinances\ I 5\edp ordinance option I.docx Exhibit A - Option I ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 2003-258, AS AMENDED BY ORDINANCE NO. 2011-042 AND ORDINANCE NO. 2014-009, RELATING TO THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD ("'THE BOARD") TO ADD -rOTI-IE MEMBERSHIP OF THE BOARD; REPEALING ALL CONFLIC"I"ING ORDINANCES AND PORTIONS THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas has expressed the intent to diversify the Economic Development Partnership Board, it is in the public interest to modify the membership of the Economic Development Partnership Board to include participation of the Black Chamber of Commerce and the Hispanic Chamber of Commerce; and WHEREAS, the Economic Development Partnership Board has a proven track record of effectiveness in the City of Denton with regard to reviewing and making recommendations to the City Council concerning economic development within the community; and WHEREAS, the Economic Development Partnership Board has proven particularly adept in the recruitment of business and development in the community; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Article IX. Sec. 2-251 of Ordinance No. 2003-258 is hereby amended as follows: ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD See. 2-251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the "Board"). The Board shall consist of eleven members. The nine board members currently serving shall serve as originally appointed. The members, as described in Sec. 2-251 C (7) below, shall be appointed to serve effective in 2015. These two members shall draw straws to determine which will serve an initial one year term and which will serve an initial two year ten-n. Thereafter, six members shall be appointed for a two-year term in even numbered years and five members shall be appointed for a two-year term in the odd numbered years. No member shall serve more than three consecutive terms except for the President of the University of North Texas ("UNT"), or his designee, who may serve unlimited terms. B. 'The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. To aid the City Council in making appointments to the Board, the City Council will appoint two City Council members and one Denton Chamber of Commerce ("Chamber") member to act as a nominating committee (the "Committee"). The Committee members are qualified for appointment to the Board. The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve. The sAlegaMur documents\ordinances\1 5\edp ordinance option Ldoex Exhibit A - Option I Committee will solicit recommendations from the Denton Chamber Board of Directors, the President of UNT, and the Black and Hispanic Chamber Boards of Directors. If any such nomination is not submitted, the Committee will consider the racial, ethnic, and gender diversity objectives of the City Council when making its nomination recommendations to the City Council. After evaluating the recommended nominees the Committee will present to the City Council a slate of Board nominees for City Council consideration. C. Notwithstanding anything contained herein to the contrary the membership make- up of the Board shall consist of the following 1. Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. 'Two members of the Board shall be members of the Denton Chamber of Commerce Board of Directors ("Chamber Board") at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. 'They must reside or work in the City oil' Denton. 'The Chamber Board will recommend the two nominees for consideration by the Committee and the City Council. 3. Two members will be, or be employed by, a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City of Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. S. One member will have knowledge or experience in general aviation- related matters and shall have no financial interest in matters at the Denton Municipal Airport. This member must reside or work in the City of Denton. 6. One member will be a citizen of the City of Denton who, in the discretion of the City Council, has specific knowledge skills and abilities to assist in all or any one of the functions and responsibilities of the Economic Development Partnership Board. Page 2 sAlegal\our documents\ordinances\1 5\edp ordinance option I.docx Exhibit A - Option I 7. With the intent to enhance the diversity of the Board, one nominee shall be a representative nominated by the Black Chamber Board of Directors and one nominee shall be a representative nominated by the Hispanic Chamber Board of Directors. If a nomination is not made by either one of these Boards, the Committee and the City Council shall consider the racial, ethnic, and gender diversity of the Board as well as the knowledge, skills, and abilities of the nominees to assist in all or any one of the functions of the Economic Development Partnership Board when making selections. 'These members must reside or work in the City of Denton. 8. The City Manager, the President of the Chamber, and the Superintendent of the Denton Independent School District will serve as ad hoc non-voting members of the Board. SECTION 2. This Ordinance amends Ordinance No. 2003-258, Ordinance 2011-042, and Ordinance 2014-009 and supersedes and repeals any provision of those ordinances, or any other, in conflict herewith. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2015. ATTEST: JENNIFER WALTERS, CITY SECRETARY Nom APPROVED AS TO LEGAL, FORM: ANITA BURGESS, CITY ATTORNEY By: Page 3 CHRIS WATTS, MAYOR sAlegakour docurnents\ordinances\1 5\edp ordinance option 2.docx Exhibit B - Option 2 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 2003-258, AS AMENDED BY ORDINANCE NO. 2011-042 AND ORDINANCE NO, 2014-009, RELATING TO THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD ("THE BOARD") TO ADD TO THE MEMBERSHIP OF "THE BOARD; REPEALING ALL CONFLICTING ORDINANCES AND PORTIONS THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas has expressed the intent to diversify the Economic Development Partnership Board, it is in the public interest to modify the membership of the Economic Development Partnership Board to include participation of the Black Chamber of Commerce and the Hispanic Chamber of Commerce; and WHEREAS, the Economic Development Partnership Board has a proven track record of effectiveness in the City of Denton with regard to reviewing and making recommendations to the City Council concerning economic development within the community; and WHEREAS, the Economic Development Partnership Board has proven particularly adept in the recruitment of business and development in the community; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON I­ IEREBY ORDAINS: SECTION 1. Article IX. Sec. 2-251 of Ordinance No. 2003-258 is hereby amended as follows: ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD See. 2-251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the "Board"). The Board shall consist of eleven members. The nine board members currently serving shall serve as originally appointed. 'Two new members, hereby added as "at large" members in Sec. 2-251 C (6) below, shall be appointed to serve effective in 2015. These two members shall draw straws to determine which will serve an initial one year term and which will serve an initial two year term. Thereafter, six members shall be appointed for a two-year term in even numbered years and five members shall be appointed for a two-year term in the odd numbered years. No member shall serve more than three consecutive terms except for the President of the University of North Texas ("UNT"), or his designee, who may serve unlimited terms. B. The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. 'To aid the City Council in making appointments to the Board, the City Council will appoint two City Council members and one Denton Chamber of Commerce ("Chamber") member to act as a nominating committee (the "Committee"). The Committee members are qualified for appointment to the Board. The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve. The sAlegakour documents\ordinances\15\edp ordinance option 2.docx Exhibit B - Option 2 Committee will solicit recommendations from the Denton Chamber Board of Directors, the President of UNT, and the Black and Hispanic Chamber Boards of Directors. If any such nomination is not submitted, the Committee and the City Council will consider the racial, ethnic, and gender diversity of the community as well as the knowledge, skills, and abilities of the nominees to assist in all or any one of the functions of the Economic Development Partnership Board when making its selections. After evaluating the recommended nominees the Committee will present to the City Council a slate of Board nominees for City Council consideration. C. Notwithstanding anything contained herein to the contrary the membership make- up of the Board shall consist of the following Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. 'Two members of the Board shall be members of the Denton Chamber of Commerce Board of Directors ("Chamber Board") at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. 'They must reside or work in the City of Denton. The Chamber Board will recommend the two nominees for consideration by the Committee and the City Council. 3. Two members will be, or be employed by a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City ol.'Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. 5. one member will have knowledge or experience in general aviation- related matters and shall have no financial interest in matters at the Denton Municipal Airport. This member must reside or work in the City of Denton. 6. Three members will be citizens of the City of Denton who, in the discretion of the City Council, have specific knowledge skills and abilities to assist in all or any one of the functions and responsibilities of the Economic Development Partnership Board. Page 2 sAlegakour documents\ordinances\1 5\edp ordinance option 2,doex Exhibit B - Option 2 7. The City Manager, the President of the Chamber, and the Superintendent of the Denton Independent School District will serve as ad hoc non-voting members of the Board. SECTION 2. This Ordinance amends Ordinance No. 2003-258, Ordinance 2011-042, and Ordinance 2014-009 and supersedes and repeals any provision of those ordinances, or any other, in conflict herewith. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12015. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: CHRIS WATTS, MAYOR Page 3 U Exhibit C - Ordinance 2003-258 AN ORDINANCE OF THE CITY OF DENTON, TEXAS ESTABLISHING AN ECONOMIC DEVELOPMENT PARTNERSHIP BOARD; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of City of Denton, Texas has determined that it is beneficial and in the public interest to establish an Economic Development Partnership Board to provide economic development policy guidance for the City; NOW, THEREFORE-; THE COUNCIL OF THE CITY OF DENTON, TEXAS HERBY ORDAINS: SECTION 1. Findings. The findings contained in the preamble of this ordinance are incorporated into the body of this Ordinance. SECTION 2, The Code of Ordinances of the City of Denton is hereby amended to add Article IX of Chapter 2 to read as follows: 0 ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOA1401 See. 2-251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the "Board"). The Board shall consist of seven members, The board members shall be appointed for two-year terms except that four members shall only serve a one-year term for their first term. Thereafter, four members shall be appointed for a two-year term in the even numbered years and three members shall be appointed for a two-year term in the odd numbered years. No member shall serve more than three consecutive terms except for the President of the University of North Texas ("UNT"), or his designee, who may serve unlimited terms. B. The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. To aid the City Council in making appointments to the Board the City Council will appoint two City Council members and one Chamber of Commerce ("Chamber") member to act as a nominating committee (the "Committee"). The Committee members are qualified for appointment to the Board. The City Manager and President of the Chamber will serve as ad hoc non-voting members of the Committee, The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve, The Board will solicit recommendations from the Chamber Board of Directors and the President of UNT. After evaluating the recommended nominees the Committee will present to the City Council a slate of Board nominees for City Council approval. 11 17 Exhibit C - Ordinance 2003-258 C. Notwithstanding anything contained herein to the contrary the membership make-up of the Board shall consist of the following Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. Two members of the Board shall be members of the Chamber Board of Directors ("Chamber Board") at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. They must reside or work in the City of Denton, The Chamber Board will recommend the two nominees for consideration by the Committee and approval by the City Council. 3 Two members will be, or be employed by, a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City of Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. D. The Board shall elect its chairperson and vice-chairperson from among its members who shall serve for one-year terms or until his or her successor is elected or qualified. The Board may remove and re-elect a chairperson or vice - chairperson at anytime with an affinnative vote of at least five members. E. The Denton City Manager and the Chamber President shall be ex-officio members of the Board. F. Board members shall serve without compensation. Board members may be allowed ovit-of-pocket expenses for activities performed in furtherance of their duties to the Board. Such expenses must be pre-approved by the City Manager if paid for out of City funds, or the Chamber President if paid for out of Chamber funds. 0 Page 2 S:\Our Documents4Ordinanccs\03\EDP Ordinance.doc 17 Exhibit C - Ordinance 2003-258 See. 2-252. Meetings. The Board shall meet on a regular basis and no less than on a quarterly basis. Monthly meetings are encouraged. The chairperson, vice-chairperson or any three Board members may call any regular or special meeting. Notice of the meetings shall be posted and conducted in accordance with the Texas Open Meetings law, being Chapter 551 of the Government Code, as amended. A majority of the qualified voting members of the Board shall constitute a quorum for the transaction of business at any meeting of the Board. The act of a majority of the qualified voting members of the Board present at a meeting at which a quorum is present shall be the act of the Board. See. 2-253. Rules of Procedure. The Board shall adopt rules of procedure governing the operation of the Board incorporating Sections 2, 3, 5, and 7 of City Council Rules of Procedure insofar as it is possible. See. 2-254. Duties and Responsibilities of the Board. The role of the Board is to provide economic development policy guidance, The Board may make recommendations to the City Council and Chamber, The Boards duties include: A. The Board will implement Denton's Economic Development Action Plan which includes the implementation of specific projects, The Board may create committees or task forces consisting of Board members and/or non- Board members to assist with the implementation of projects or activities. Committee task force chairpersons shall be appointed by the Board and will serve at the pleasure of the Board. B. The Board will be responsible for designing economic development incentive policies and recommending those policies to the City Council for adoption. These policies may include tax abatement, Chapter 380 agreements, infrastructure assistance, etc. In making any recommendations the Board shall comply with applicable law. It will be the Board's responsibility to review policies of other cities and to be informed as to legislative changes affecting state and local incentive programs. C, The Board shall act as the recommending body to the City Council for specific project economic development incentives authorized by law, including without limitation tax abatements and incentives authorized under Chapter 312 of the Tax Code, economic development agreements authorized under Chapter 380 of the Local Government Code, and public improvement districts authorized under Chapter 372 of the Local Page 3 SA0ur Docurncnts\0rdinances\03\EDP Ordinance.doc 17 Exhibit C - Ordinance 2003-258 Government Code. However, utility incentives based on thresholds, such as the Electric Utility Industrial Development Rider and the Water/Wastewater Plan Line Extension may be made without Board review or recommendation. Nothing herein shall be construed so as to invalidate an economic development incentive authorized by the City Council or Chamber that did not receive a recommendation from the Board. D. The Board will review and recommend both the City and Chamber annual economic development budgets. These recommendations will be made to the City Manager and Chamber President for inclusion in the overall City and Chamber budgets. E. The Board will review and recommend the annual work plans for the City and Chamber economic development programs. Work plans must be consistent with the annual budgets. SECTION 3. This ordinance supercedes any provision in any City ordinance that is conflict with this ordinance including without limitation Section 2-61 of the Code of Ordinances of the City of Denton. SECTION 4. The Economic Development Partnership Board replaces the Joint Committee on Tax Abatement (the " Joint Committee") and shall exercise all of the rights and duties of the Joint Committee. The Joint Committee is hereby dissolved to be effective from and after the appointment of the Board members, and they are qualified to serve (the "Effective Date"). This shall not effect the validity of any action taken by the Joint Committee prior to the Effective Date. SECTION S. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the M4 day of 2003. EULINE BROCK, MAYOR 11 MEMO BY:'14 -Pacre 4 C� S:\Our Documents\0rdinances\03\ED11 Ordinance.doc \ \codad \departments\1ega1\our documents \ordinances\1 0 \edp amended ord.docx Exhibit D - Ordinance 2011 -042 ORDINANCE NO. 2011 -042 AN ORDINANCE AMENDING ORDINANCE NO. 2003 -258 RELATING TO THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD (THE BOARD) TO ADD TO THE MEMBERSHIP OF THE BOARD AND TO EXPAND THE DUTIES OF THE BOARD TO INCLUDE BRANDING AND MARKETING FOR THE DENTON MUNICIPAL AIRPORT IN SUPPORT OF THE DENTON AIRPORT 2010 BUSINESS PLAN AND TO FURTHER INCLUDE DUTIES RELATED TO AIRPORT ECONOMIC DEVELOPMENT INCENTIVES; REPEALING ALL CONFLICTING ORDINANCES AND PORTIONS THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas has determined that it is in the public interest to modify the Economic Development Partnership Board to encompass certain responsibilities concerning the City of Denton Municipal Airport; and WHEREAS, the City of Denton commissioned an Airport Business Plan study which was approved by the Denton City Council on November 16, 2010, which Plan recommended the modification of the Denton Airport governance structure to assist with vetting financial proposals for the Airport, as well as providing policy input related to targeted marketing initiatives and development; and WHEREAS, the Economic Development Partnership Board has a proven track record of effectiveness in the City of Denton with regard to reviewing and making recommendations to the City Council concerning economic development within the community; and WHEREAS, the Economic Development Partnership Board has proven particularly adept in the recruitment of business and development in the community; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Article IX. Sec. 2 -251 of Ordinance No. 2003 -258 is hereby amended as follows: ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD Sec. 2 -251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the `Board). The Board shall consist of nine members. The seven board members currently serving shall serve as originally appointed. The member, as described in Sec. 2 -251 C.(5) below, shall be appointed to serve until the City Council shall make its 2012 board appointments. The member, as described in Sec. 2 -251 C.(6) below, shall be appointed to serve until the City Council shall make its 2011 board appointments. Thereafter, five members shall be appointed for a two -year term in the even numbered years and four members shall be appointed for a two -year term in the odd numbered years. No member shall Uodad\departmentsVegahour documents \ordinances \10 \edp amended ord.docx Exhibit D - Ordinance 2011 -042 serve more than three consecutive terms except for the President of the University of North Texas (UNT), or his designee, who may serve unlimited terms. B. The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. To aid the City Council in making appointments to the Board, the City Council will appoint two City Council members and one Chamber of Commerce (`Chamber member to act as a nominating committee (the "Committee. The Committee members are qualified for appointment to the Board. The City Manager and President of the Chamber will serve as ad hoc non - voting members of the Committee. The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve. The Board will solicit recommendations from the Chamber Board of Directors and the President of UNT. After evaluating the recommended nominees the Committee will present to the City Council a slate of Board nominees for City Council approval. C. Notwithstanding anything contained herein to the contrary the membership make- up of the Board shall consist of the following 1. Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. Two members of the Board shall be members of the Chamber Board of Directors (`Chamber Board) at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. They must reside or work in the City of Denton. The Chamber Board will recommend the two nominees for consideration by the Committee and approval by the City Council. 3. Two members will be, or be employed by, a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City of Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. 5. One member will have knowledge or experience in general aviation - related matters and shall have no financial interest in matters at the Denton Municipal Airport. This member must reside or work in the City of Denton. Page 2 Uodad\departmentsVegaRour documents \ordinances \10 \edp amended ord.docx Exhibit D - Ordinance 2011 -042 6. One member will be a citizen of the City of Denton who, in the discretion of the City Council, has specific knowledge skills and abilities to assist in all or any one of the functions and responsibilities of the Economic Development Partnership Board. SECTION 2. Sec. 2 -254 is amended to add a section F. as follows: Sec. 2 -254. Duties and Responsibilities of the Board. F. The Board will review, consider and make recommendations to the Denton City Council regarding Airport Branding and Marketing to support the implementation of the Denton Airport 2010 Business Plan. The Board will review, consider and make recommendations to the Denton City Council regarding Denton Municipal Airport incentive polices, as assigned by the City Council or requested by the City Manager, and will act as a recommending body to the City Council for specific airport economic development incentives, as assigned by the City Council or requested by the City Manager and permitted by City and State law. SECTION 3. This Ordinance amends Ordinance No. 2003 -258 and supercedes and repeals any provision of that ordinance, or any other, in conflict herewith. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. E� PASSED AND APPROVED this the J day of '2011. —&AM ATTEST: JENNIFER WALTERS, CITY SECRETARY B - " /f AROVEE VAS O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: JAA i Page 3 \\codad\departmentsUegakour documents \ordinances \13 \edp amendment.doc Exhibit E - Ordinance 2014 -009 ORDINANCE NO. 2014 -009 AN ORDINANCE AMENDING ORDINANCE NO. 2003 -258, AS AMENDED BY ORDINANCE 2011 -042, RELATING TO THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD ( "THE BOARD ") BOARD; REPEALING ALL CONFLICTING AND PROVIDING AN EFFECTIVE DATE. TO ADD TO THE MEMBERSHIP OF THE ORDINANCES AND PORTIONS THEREOF; WHEREAS, the City Council of the City of Denton, Texas has determined that due to the impact that economic development has upon the school district, it is in the public interest to modify the membership of the Economic Development Partnership Board to include participation of the Denton Independent School District; and WHEREAS, the Economic Development Partnership Board has a proven track record of effectiveness in the City of Denton with regard to reviewing and making recommendations to the City Council concerning economic development within the community; and WHEREAS, the Economic Development Partnership Board has proven particularly adept in the recruitment of business and development in the community; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Article IX. Sec. 2 -251 of Ordinance No. 2003 -258 is hereby amended as follows: ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD Sec. 2 -251. Creation, Members, Qualifications, and Tenure. A. There is hereby created a City of Denton board entitled the Denton Economic Development Partnership Board (the "Board "). The Board shall consist of nine members. The seven board members currently serving shall serve as originally appointed. The member, as described in Sec. 2 -251 C.(5) below, shall be appointed to serve until the City Council shall make its 2012 board appointments. The member, as described in Sec. 2 -251 C.(6) below, shall be appointed to serve until the City Council shall make its 2011 board appointments. Thereafter, five members shall be appointed for a two -year term in the even numbered years and four members shall be appointed for a two -year term in the odd numbered years. No member shall serve more than three consecutive terms except for the President of the University of North Texas ( "UNT "), or his designee, who may serve unlimited terms. B. The Board members shall be appointed by the City Council and shall serve at the City Council's pleasure. To aid the City Council in making appointments to the Board, the City Council will appoint two City Council members and one Chamber of Commerce ( "Chamber ") member to act as a nominating committee (the "Committee "). The Committee members are qualified for appointment to the Board. The Committee will solicit nominations, contact nominees to relate duties and responsibilities and to confirm willingness to serve. The Board will Exhibit E - Ordinance 2014 -009 solicit recommendations from the Chamber Board of Directors and the President of UNT. After evaluating the recommended nominees the Committee will present to the City Council a slate of Board nominees for City Council approval. C. Notwithstanding anything contained herein to the contrary the membership make- up of the Board shall consist of the following 1. Two members of the Board shall be City Council members at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the City Council after the original appointment as long as they continuously serve throughout the three terms. They must be residents of the City of Denton. 2. Two members of the Board shall be members of the Chamber Board of Directors ( "Chamber Board ") at the time of their appointment to their original term. They may serve out all three terms, even if they are no longer members of the Chamber Board after the original appointment as long as they continuously serve throughout the three terms. They must reside or work in the City of Denton. The Chamber Board will recommend the two nominees for consideration by the Committee and approval by the City Council. 3. Two members will be, or be employed by, a top twenty City of Denton ad valorem or sales tax payer. Such members must reside or work in the City of Denton. 4. One member will be the President of UNT or a UNT faculty or staff member designated by the President. Such member need not reside in the City of Denton and is not restricted to the three term limits. However, such member must be appointed by the City Council for each term. 5. One member will have knowledge or experience in general aviation - related matters and shall have no financial interest in matters at the Denton Municipal Airport. This member must reside or work in the City of Denton. 6. One member will be a citizen of the City of Denton who, in the discretion of the City Council, has specific knowledge skills and abilities to assist in all or any one of the functions and responsibilities of the Economic Development Partnership Board. 7. The City Manager, the President of the Chamber, and the Superintendent of the Denton Independent School District will serve as ad hoc non - voting members of the Board. ;.. Exhibit E - Ordinance 2014 -009 SECTION 2. Sec. 2 -254 is amended to add a section F. as follows: Sec. 2 -254. Duties and Responsibilities of the Board. F. The Board will review, consider and make recommendations to the Denton City Council regarding Airport Branding and Marketing to support the implementation of the Denton Airport 2010 Business Plan. The Board will review, consider and make recommendations to the Denton City Council regarding Denton Municipal Airport incentive polices, as assigned by the City Council or requested by the City Manager, and will act as a recommending body to the City Council for specific airport economic development incentives, as assigned by the City Council or requested by the City Manager and permitted by City and State law. SECTION 3. This Ordinance amends Ordinance No. 2003 -258 and Ordinance 2011 -042 supercedes and repeals any provision of that ordinance, or any other, in conflict herewith. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day y of '201 ATTEST: JENNIFER WALTERS,, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY ,w. BY: Page 3 MARK A"'�-BUR 1 OUG1 -I , MAYOR City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: DCA14- 0009e, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: Jon Fortune Date: March 24, 2015 SUBJECT Continue a public hearing and consider adoption of an ordinance amending Subchapters 5, 7, 16 and 22 of the Denton Development Code, relating to Gas Well Drilling and Production, Definitions and Procedures; amending Ordinance No. 2013 -248, relating to planning and development fees and road damage remediation fees relating to gas well drilling and production activities; adding new Subchapter 22A to the Denton Development Code, relating to Oil and Gas Pipelines, Definitions, Procedures; providing a cumulative clause; providing a severability clause; providing for a penalty; and providing for an effective date (DCA14- 0009e). The Planning and Zoning Commission recommends denial (4 -3). A super inajority vote by City Council is required to adopt a motion to approve this ordinance. BACKGROUND On May 6, 2014, the City Council passed and approved City Ordinance No. 2014 -137 declaring a moratorium on the receipt, processing, and approval of certain applications for gas well permits, specific use permits (SUP), site plans, development plans, or amendments as they relate to gas well drilling and production activities. The moratorium ordinance recites that the City Council is aware of an increased interest in, and concern about, gas exploration and production and has received from the public a multitude of environmental and land use compatibility concerns regarding the City's ordinances and regulations now applicable to gas well drilling and production activities. In adopting the moratorium ordinance, the City Council announced that it believed it was reasonable and necessary to again review the municipal ordinances and regulations germane to gas well drilling and production operations. City staff was charged with the responsibility to make the important changes. In charging the staff with revising the ordinances, City Council recognized that the City's current regulations may not fully implement the City's goals of allowing gas well operations while protecting the public's health, safety, and general welfare. In addition, the City Council witnessed the conflict between increased drilling and urban expansion and acknowledged the need to regulate the conflicting land use issues between gas well operations and surface owners seeking the peaceful and quiet enjoyment of their property. The potentially harmful impacts of gas well drilling and production within the City fall most heavily upon neighborhoods and properties adjacent and in close proximity to gas well drilling and production operations. Several sections of the Denton Development Code (DDC) are proposed for revision to address these concerns. The proposed revisions are described in further detail under the Proposal heading. The proposals are based upon the work performed by the gas well Task Force that convened during 2012, the Denton Area Drilling City of Denton Page 1 of 5 Printed on 3/19/2015 File #: DCA14- 0009e, Version: 1 Advisory Group (DAG), the Planning and Zoning Commission, as well as the multitude of public comments received before these groups and numerous City Council deliberations on various issues germane to gas well drilling and production. In addition, the City staff and the City Council reviewed numerous published articles regarding the impacts of gas well drilling, including: 1. Best Practices Handbook to Assist Communities in the Eagle Ford Shale, 2nd Edition, Identification and Implementation of Best Practices, San Antonio River Authority; 2. Visual Impacts of Natural Gas Drilling in the Marcellus Shale Region, Cornell University, Dept. of City and Regional Planning: CRP 3072 Land Use, Environmental Planning, and Urban Design Workshop, Fall 2010, Sarita Rose Upadhyay and Min Bu; 3. Demonstrating the Impacts of Oil and Gas Exploration on Water Quality and How to Minimize these Impacts Through Targeted Monitoring Activities and Local Ordinances, Kenneth E. Banks, Ph.D and David J. Wachal, M.S. in Cooperation with the United States Environmental Protection Agency; 4. Oil and Gas Regulation: A Guide for Local Governments, Colorado Department of Local Affairs; 5. Shale Gas Production Subcommittee 90 -Day Report, August 18, 2011, Secretary of Energy Advisory Board, U.S. Department of Energy; 6. Development, Land Use, and Collective Trauma; The Marcellus Shale Gas Boom in Rural Pennsylvania, Simona L. Perry, The Journal of Culture & Agriculture; 7. Modern Shale Gas Development in the United State: A Primer, April 2009, U.S. Department of Energy; 8. Environmental Impacts of Unconventional Natural Gas Development and Production, May 29, 2014, U.S. Department of Energy; 9. A Comprehensive Economic Impact Analysis of Natural Gas Extraction in the Marcellus Shale, May 2011, Susan Christopherson and Ned Rightor, Cornell University; 10. Recommended Best Practices for Marcellus Shale Gas Development in Maryland, Keith N. Eshleman & Andrew Elmore, Appalachain Laboratory, University of Maryland Center for Environmental Science; 11. Landscape Consequences of Natural Gas Extraction in Bradford and Washington Counties, Pennsylvania, 2004 -2010, E.T. Slonecker, L.E. Milheim, C.M. Roig- Silva, A.R. Malizia, D.A. Marr, and G.B. Fisher, U.S. Department of the Interior; 12. A Menu of State Policy Good Practices for Unconventional Natural Gas Development, 2014, General Electric Company; 13. Practices For Mitigating Surface Impacts Associated with Hydraulic Fracturing, American Petroleum Institute; 14. Hydrofracking: Disturbances Both Geological and Political: Who Decides? By John R. Nolon and Victoria Polidoro, 44 Urb. Law. 507 (2012); and 15. Oil and Gas Fracking: State and Federal Regulation Does not Preempt Needed Local Government Regulation by Dr. Robert H. Freilich and Neil M. Popowitz, 44 Ur. Law. 533 (2012). This item has been heard on six separate agendas before both the P &Z and City Council. The initial presentation of the clean and redline draft ordinances occurred during a joint public hearing on December 16, 2014. On that date, the P &Z closed their public hearing, but delayed action as an Item for Individual Consideration and City Council continued their portion of the public hearing. On January 6, 2015, City Council again continued their public hearing and on January 7, 2015, the P &Z further delayed their action. The delays provided City staff with an opportunity to address questions raised by the general public, the P &Z, and City City of Denton Page 2 of 5 Printed on 3/19/2015 File #: DCA14- 0009e, Version: 1 Council during the December 16, 2014 public hearing. The questions were researched and answers were provided to both the City Council and P &Z. In addition, the responses were published to the City's website for public viewing. City Council again continued their public hearing for DCA14 -009 during their January 13, 2015 meeting. This continuation was not date specific and instead was continued to an event certain. The specific event was the receipt of P &Z's recommendation report. The P &Z once again had an agenda item for DCA14 -0009 and delayed their action during the January 21, 2015 meeting until their February 4, 2015 meeting. Additional questions were raised by the public and various P &Z Commissioners over the course of deliberation during the agenda discussions that occurred in front of both bodies. The responses to these additional questions were presented and discussed with P &Z during their closed session meeting posted for the February 4, 2015 meeting. These additional responses were also posted to the City's website for public viewing. In light of all the discussions, question and answer sessions, and deliberations by both bodies, the P &Z voted 4- 3 on February 4, 2015 to recommend denial of DCA14 -0009, as initially presented. The P &Z recommendation vote is forwarded as a report to the City Council for final action. Per the City of Denton's charter and state laws germane to general zoning regulations, the City Council provides that the affirmative vote of at least three - fourths (3/4) of all its members is required to overrule a recommendation of the City's P &Z that a proposed change to a regulation be denied. As such, any action by the City Council to adopt all, or portions of, the proposed ordinance amending Subchapters 5, 7, 16 and 22 of the Denton Development Code, or to make revisions to any of the presented ordinances, shall require an affirmative vote of at least three- fourths (3/4) of all its members. A copy of the draft minutes from the February 4, 2015 P &Z meeting are included as Exhibit 10. The minutes detail the wording of the motion and the subsequent discussions that occurred by the P &Z Commissioners. The motion was made by Commissioner Strange and seconded by Commissioner Connor. In making the motion, Commissioner Strange referenced his thoughts for the purpose of the revisions. While those ideas do not fully incorporate the reasons and details presented in this report, the commissioner also expressed concern that the ordinance revisions go further than the State's permitting requirements germane to oil and gas drilling and production activities. Commissioner Strange also shared his concern about the proposed ordinance's impact to vested rights and a potential takings claim. After both the 4 -3 vote and Future Agenda Items section of the agenda, several additional comments were proffered to describe the rationale behind the respective commissioner's actions. Commissioner Briggle asked about the responses provided in the question and answer documents and whether any recommendations for amending the presented ordinances will be forwarded to City Council. In addition, Commissioner Connor clarified that his position is not that he is opposed to the ordinance, but rather he mentioned the ordinance puts restrictions on business that can impact vested rights. Commissioner Connor summarized his concerns by stating he is worried about the long -term impact from lawsuits and putting restrictions on oil and gas companies. Finally, Commissioner Dudowicz agreed with Commissioner Connor and further stated he felt the current ordinance is "pretty tight with the added stuff to it," however, the new ordinance could be litigated against the City and wipeout the current ordinance along with any revisions. Commissioner Dudowicz was not willing to take the risk that a lawsuit would challenge the revised ordinance and result in the negating of other ordinances. PROPOSAL The proposed revisions are intended to remedy the impacts of gas well drilling in an urban environment, to City of Denton Page 3 of 5 Printed on 3/19/2015 File #: DCA14- 0009e, Version: 1 include noise, dust, odor, light pollution, vibrations, fire safety, visual aesthetics, e.g., fencing and landscaping, construction standards and materials, buffers, preservation of surface property values and the character of neighborhoods, incompatibility, infrastructure related to public health and welfare such as water wells, setbacks, landscaping, public notice, signage, issues related to operating hours, operator insurance issues, road impacts, and other quality of life issues. Subchapter 22 of the Denton Development Code (DDC) was reorganized to enable both staff and operators to better understand the requirements for gas wells inside the city limits. In addition to changes contained within Subchapter 22, additional DDC Chapters will be revised. In some cases, existing provisions have been amended, such as for Subchapter 5, which contains the use charts and the limitations by type of zoning district. In other cases, an entire new subsection is being added, such as the provisions relating to the Gas Well Combining District, which is proposed as an addition to Subchapter 7, pertaining to overlay districts. The list of new ordinance amendments is as follows: 1) Amendments to Subchapter 5, Zoning Districts and Limitations. Changes use chart designations and limitations for "gas wells "; 2) Amendments to Subchapter 7, Special Purpose and Overlay Districts, adds new subsection 22.7.16, Gas Well Combining Districts; 3) Amendments to Fee Ordinance 2013 -248; 4) Amendments to Subchapter 16, Subdivisions, etc.; and 5) Addition of Subchapter 22.A, Oil and Gas Pipeline Ordinance While specific language changes are found throughout the redlined exhibits attached herein and will be further defined during the public presentation, the main themes of the revised ordinance are summarized in the table as Exhibit 1. OPTIONS 1. Uphold the P &Z recommendation for denial. 2. Overturn the P &Z recommendation by a 3/4 vote to approve as submitted. 3. Overturn the P &Z recommendation by a 3/4 vote to approve with conditions. 4. Continue the Public Hearing. 5. Close the Public Hearing and Table action on the item. RECOMMENDATIONS February 4, 2015 - The Planning and Zoning Commission voted 4 -3 to recommend DENIAL of DCA14 -0009. The Development Review Committee recommends APPROVAL of this request. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On December 16, 2014, the City Council and Planning and Zoning Commission (P &Z) held a joint Public Hearing concerning ordinance amendments to Subchapters 5, 7, 16, and 22 of the Denton Development Code. City Council continued the public hearing to their January 6, 2015 meeting and P &Z closed their public hearing, but delayed action as an Item for Individual Consideration. On January 6, 2015, City Council voted 6 -0 to continue the public hearing for DCA14 -0009 to their next City of Denton Page 4 of 5 Printed on 3/19/2015 File #: DCA14- 0009e, Version: 1 meeting. On January 7, 2015, P &Z voted 7 -0 to delay action on the Item for Individual Consideration of DCA14 -0009 until their next meeting. On January 13, 2015, City Council voted 7 -0 to continue the public hearing for DCA14 -0009 to an event certain, which is the meeting following receipt of a recommendation report from P &Z. On January 21, 2015, P &Z voted 7 -0 to delay action on the Item for Individual Consideration of DCA14 -0009 until their next meeting. On February 4, 2015, P &Z voted 4 -3 to recommend DENIAL of DCA14 -0009, as presented. On February 17, 2015, City Council voted 7 -0 to continue the public hearing for DCA14 -0009 to March 3, 2015. On March 3, 2015, City Council voted 7 -0 to continue the public hearing for DCA14 -0009 to March 24, 2015. EXHIBITS 1. Table of Revised Ordinances 2. Clean Ordinance and Redlined Draft of DDC Subchapter 22 3. Clean Ordinance and Redlined Draft of DDC Subchapter 7 4. Clean Ordinance and Redlined Draft of DDC Subchapter 16 5. Clean Ordinance and Redlined Draft of DDC Subchapter 5 6. Clean Ordinance and Redlined Draft of DDC Subchapter 22A 7. Fee Ordinance 8. Public Responses to CC and P &Z from Dec 2014 meeting 9. Public Responses to Additional Questions from PZ and the Public 10. Draft Minutes of the February 4, 2015 P &Z Meeting Respectfully submitted: Aimee Bissett Interim Director of Planning & Development Prepared by: Darren Groth, AICP, CPM, REP Gas Well Administrator City of Denton Page 5 of 5 Printed on 3/19/2015 Exhibit 1 TOplc Existing Ordinance Proposed Ordinance Production No such program. Inspections performed by 3rd Party will now determine Monitoring if equipment is properly functioning. New DDC Subchapter 22.A fulfills objective to capture Pipeline No such program. all authority allowed under state law in order to map Regulations gas pipelines within the city of Denton and its extraterritorial jurisdiction. Surface plats will now note the location of the Pad Site; existence of well(s); possibility of new wells; Gas Well Recently used in two land possibility of more drilling and fracturing; possibility of Notifications development examples. re- working. In addition, Declaration of Restrictive and Disclosures Covenant shall advise purchasers of existence of well(s) and notice document shall be recorded in County Clerk's Office. Proposal intended to minimize surface impacts; select optimum surface site location within leased acreage; capitalize on technological advances to require co- location of multiple wells on a single site; open land for surface development; and restrict leased acreage from Co- Location No such program. future gas well development. Every new well will require approval of Consolidated Site, in accordance with the following scenarios: 1. Combining District (City Council rezoning) for new sites. 2. Consolidation Permit (administrative review) for existing sites. Each Operator must produce a certificate of insurance and copy of endorsements adding city as additional insured. If the insurance is cancelled, the gas well Permit will be suspended. The insurance must be issued by financially sound company. The expert recommended the following insurance coverage: • Commercial General Liability = $1M /occurrence with Existing coverage a $2M aggregate. Operator reviewed by legal expert • Environmental Impairment = $5M (up from $1M). If Insurance with specific insurance "claims made" coverage, 4 yrs after Gas Well Permit experience. expiration. • Auto Liability = $1 M /accident. • Worker's Comp = $1M /accident and $1M /disease (up from $100,000 /accident). • Umbrella Liability = $24M per occurrence w/ $24M aggregate. Coverage in excess of commercial general, auto, & workers comp. • Control of Well = $5M per occurrence Exhibit 10 Draft Minutes of the February 4, 2015 P &Z Meeting 1. ITEM FOR INDIVIDUAL CONSIDERATION: A. Consider making a recommendation to City Council regarding an ordinance amending Subchapters 5, 7, 16 and 22 of the Denton Development Code, relating to Gas Well Drilling and Production, Definitions and Procedures; amending Ordinance No. 2013 -248, relating to planning and development fees and road damage remediation fees relating to gas well drilling and production activities; adding new Subchapter 22A to the Denton Development Code, relating to Oil and Gas Pipelines, Definitions, Procedures; providing a cumulative clause; providing a severability clause; providing for a penalty; and providing for an effective date. (DCA14 -0009, Development Code Amendments, Darren Groth) Reece introduced Munal Mauladad, Assistant Director of Planning and Development. Mauladad stated Groth will provide a brief synopsis of this item. Groth stated this item is carried over from the December 16, 2015, Joint City Council Planning and Zoning Commission meeting. He stated there were several questions discussed during that meeting. The ordinance was posted after the meeting, comments were received, and drafted into a Question and Answer form, which was later placed on the City of Denton website. He stated he doesn't have a presentation since this is a continued item. Strange stated this Commission and staff have worked on this item for a while now. The ordinance came before this Commission to clean up the definitions. He stated over the last few months there have been numerous additions to the ordinance. Then there was the request for a moratorium. Throughout that process this Commission has expressed their concerns that the City is binding them in this ordinance; because, it goes earlier than what the state requirements allow. He stated he also has concerns of the principles of vesting that the existing wells have. He stated the vested rights will go away. Strange stated he cannot support a motion for this item to move forward. He would motion to deny this item. Conner stated he would second the motion for denial. Briggle questioned if she could make a superior motion. Leal stated there are superior motions; such as to postpone the item to a date certain or to amend the motion on the table. He stated a counter motion is not allowed. Briggle acknowledged; she stated the vote will continue and if it fails then there can be another motion. Leal confirmed. Bentley stated he understands the concerns of Strange and Conner. He stated he has other issues that can be addressed if this item moves forward. This is a recommendation to City Council; this Commission is not the final decision of this item. Bentley stated he will not support the motion at this time to deny the item; he feels it needs to move forward. Taylor stated he remembers the process a little differently than Strange recalls the process. This revision came during the last revision that was in process. At the time of approval there were several items that were pushed off to be done in the future, and some were thought to have been completed administratively. He stated although the ordinance is not perfect, there are still good items in the ordinance that should be moved forward. He stated he also cannot support the motion to deny this request. Commissioner Jim Strange motioned, Commissioner Frank Conner seconded to deny this request. Motion carried (4 -3). Commissioner Jim Strange, aye, Commissioner Frank Conner, aye, Commissioner Frank Dudowicz, aye, and Chair Thom Reece, aye. Commissioner Amber Briggle, nay, Commissioner Brian Bentley, nay, and Commissioner Devin Taylor, nay. 2. FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Planning and Zoning Commission or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting. Mauladad stated staff will be providing a report in the future to discuss an outline to the plats, she stated it will be very brief, but will help this Commission understand the plats. Bentley stated the vote from Item for Individual Consideration 3A was a shock to a majority of this Commission. He stated this Commission has the power to reopen the item and postpone it to a date certain. Leal stated the vote was taken so the item is finished at this time. He stated Bentley is probably referring to a Motion for Reconsideration from Chapter 2 of the City code. He stated since this is a zoning item as well, the zoning law trumps the city code. The motion will now move forward to City Council. If they choose the option to vote for the ordinance over the recommended denial from this Commission then a Super Majority vote would be required. Briggle referred to the amendments that this Commission has; she questioned if they would be submitted to City Council in the backup materials. Leal stated no. Conner stated he doesn't have an issue with the ordinance. He stated it is the best attempt; however, it puts restrictions on businesses that can later get into a lawsuit. He stated he is concerned for the City's future. Dudowicz stated he agrees with Conner. He stated this would be putting this Commission into a place that the current ordinance is tight; there could be litigation against the City. Leal stated this discussion is not on the agenda. There was no further discussion. Chair Reece adjourned the Regular Meeting at 7:36 p.m. Exhibit 2 35.22.1. - Purpose, Authority and Applicability. A. Purpose. The drilling and production of gas and the development of gas well facilities within the corporate limits of the City necessitate promulgation of reasonable regulations to prevent devaluation of property; to protect watersheds; to prevent deleterious uses of groundwater resources that actually or potentially threaten the health of persons in proximity to drilling and production activities; to monitor noxious emissions of gases that potentially threaten the health of nearby residents and employees; to prevent injury to persons and property; to ensure that gas well drilling and production activities are compatible with adjacent land uses throughout the duration of such activities; and to assure that such activities conform to The Denton Plan. The regulations contained in this Subchapter are designed to protect the health, safety, and general welfare of the public and to assure that the orderly and practical development of mineral resources is compatible with the quiet enjoyment of affected surface estates. The regulations contained in this Subchapter are designed to implement the purposes set forth in this subsection and are supported by the following findings of fact: 1. Gas well drilling and production activities create externalities that potentially threaten the health, safety and general welfare of persons residing or working on property in proximity to such operations. 2. Gas well drilling and production activities, in the absence of local regulatory controls, may emit high noise levels, produce large volumes of dust, congest local streets, present fire hazards and produce other deleterious effects, all of which fall disproportionately on adjacent land uses, and which can result individually or cumulatively in injury to persons, destabilization of property values, and inhibit the quiet peace and enjoyment of surface uses of real property in the vicinity of such operations. 3. The City of Denton recognizes that the United States and the State of Texas regulate gas well drilling and production activities for the purpose of implementing broad air quality and water quality goals. The regulations in this Chapter are intended to supplement such standards in order to implement compatible local objectives that assure the health, safety and general welfare of the City's residents and businesses. 4. The proliferation of gas wells and gas well pad sites within the City of Denton creates conflicts between such developments and other existing and future surface uses of the property. In order to assure the compatibility of residential, commercial and industrial uses with gas well development, it is necessary for the City to regulate the location of gas well locations relative to other surface uses within the City and to consolidate sites for development of gas wells consistent with the rights of mineral owners to reasonably access subsurface resources. B. Authority. This Subchapter is adopted pursuant to authority vested under the constitution and laws of the United States, the State of Texas and the City of Denton. Each authorization identified in this Subchapter shall be construed as an exercise of the City's zoning powers, pursuant to the Denton City Charter, Texas Local Government Code Chapters 211 and 212 and the provisions of Subchapter 35.5 of the Denton Development Code (DDC). C. Applicability. The provisions of this Subchapter apply only within the corporate limits of the City of Denton, except as otherwise stated in section 35.16.19 of the DDC. ON 35.22.1. - Purpose, Authority and Applicability. A. Purpose. The drilling and production of gas and the development of gas well facilities within the corporate limits of the City necessitate promulgation of reasonable regulations to prevent devaluation of property; to protect watersheds; to prevent deleterious uses of groundwater resources that actually or potentially threaten the health of persons in proximity to drilling and production activities; t monitor noxious emissions of gases that potentially threaten the health of nearby residents and employees; to prevent injury to persons and property; to ensure that gas well drilling and production activities are compatible with adjacent land uses throughout the duration of such activities; and to assure that such activities conform to The Denton Plan. The regulations contained in this Subchapter are designed to protect the health, safety, and general welfare of the public and to assure that the orderly and practical development of mineral resources is compatible with the quiet enjoyment of affected surface estates. The regulations contained in this Subchapter are designed to implement the purposes set forth in this subsection and are supported by the following findings of fact: 1. Gas well drilling and production activities create externalities that potentially threaten the health, safety and general welfare of persons residing or working on property in proximity to such operations. 2. Gas well drilling and production activities, in the absence of local regulatory controls, may emit high noise levels, produce large volumes of dust, congest local streets, present fire hazards and produce other deleterious effects, all of which fall disproportionately on adjacent land uses, and which can result individually or cumulatively in injury to persons - destabilization of property values, and inhibit the quiet peace and enjoyment of surface uses of real property in the vicinity of such operations. The City of Denton recognizes that the United States and the State of Texas regulate gas well drilling and production activities for the purpose of implementing broad air quality and water quality goals. The regulations in this Chapter are intended to supplement such standards in order to implement compatible local objectives that assure the health, safety and general welfare of the City's residents and businesses. 4. The proliferation of gas wells and gas well pad sites within the City of Denton creates conflicts between such developments and other existing and future surface uses of the property. In order to assure the compatibility of residential, commercial and industrial uses with gas well development, it is necessary for the City to regulate the location of gas well locations relative to other surface uses within the City and to consolidate sites for development of gas wells consistent with the rights of mineral owners to reasonablv access subsurface resources. B. Authority. This Subchapter is adopted pursuant to authority vested under the constitution and laws of the United States, the State of Texas and the City of Denton. Each authorization identified in this Subchapter shall be construed as an exercise of the City's zoning powers, pursuant to the Denton City Charter, Texas Local Government Code Chapters 211 and 212 and the provisions of Subchapter 35.5 of the Denton Development Code (DDC). C. Applicability. The provisions of this Subchapter apply only within the corporate limits of the City of Denton, except as otherwise stated in section 35.16.19 of the DDC. Pj 35.22.2. - Definitions. For the purpose of this Chapter, certain words and terms shall be defined and interpreted as follows. Interpretations of meaning shall be made by the Director of Planning and Development based on the provisions of Section 35.1.4. Appeals of staff interpretations of this Chapter shall be heard as a Board of Adjustment proceeding in accordance with Subsection 35.3.6. Closed -loop mud system. A system that uses a combination of solids control equipment incorporated in a series of removable tanks that eliminates the use of a mud circulation pit or a reserve pit. Completion combustion device. Any ignition device, installed horizontally or vertically, used in exploration and production operations to combust otherwise vented emissions from completions. Completion Operations. The portion of the Drilling Activities that includes the work that is performed after Initial Drilling Activities and prior to Production Activities in order to optimize the production of a well, often by inserting equipment into the hole. Compressor station. A facility that compresses natural gas for delivery by pipeline through a transmission pipeline. Consolidated Site. A Drilling and Production Site designated for consolidation of gas well development either through approval of a Gas Well Combining District or a Consolidation Permit. Contaminant. Any substance capable of contaminating a non - related homogeneous material, fluid, gas or environment. Daytime. The hours between sunrise and sunset on any given day. Delineation well. A well drilled in order to determine the boundary of a field or producing reservoir. Drilling. Term used to typically describe the means by which the earth is bored to create a pathway to formations containing hydrocarbons to allow for their production to the surface. It can employ various types of mobilized drilling equipment to create a wellbore while incorporating drilling fluids to cool the bit, to condition the hole, to remove drilled cuttings and, most critically, to maintain an overbalanced pressure gradient against the formation that may contained inherently pressurized well fluids. Drilling Activities. Those activities commonly performed at a drilling and production site necessary or incidental to getting hydrocarbons to market; including and not limited to initial drilling, hydraulic fracturing, flow back, and completion operations, but not including production activities, a well redrill or any hydraulic refracturing. Drilling and Production Site. The area dedicated to all authorized gas well drilling and production activities and containing all structures, closed -loop systems, dehydrators, parking areas, security cameras, lighting, tanks, tank battery (or any other tank grouping area), drilling rigs, separators, lift compressors, perimeter walls, utilities, and all other features or objects contemplated for use during and after gas well drilling or production activities, as designated on the Gas Well Development Plat or Gas Well Development Site Plan, but excluding gathering and transmission lines and compressor stations. Drilling and Production Site includes the terms Gas Well Park, Gas Well Pad Site and Drilling and Production Area. Existing Drilling and Production Site or Existing Site. A gas well drilling and production site that was designated through approval of a gas well development site plan or a gas well development plat prior to , 20, and on which one or more gas well developments have commenced. Where the boundaries of such site have not been designated by an approved gas well development plat, the term defines the area incorporating all facilities devoted to authorized drilling activities or production activities. Exploration. Geologic or geophysical activities, including, but not limited to surveying and seismic exploration, related to the search for oil, gas, or other sub - surface hydrocarbons. Flowback. The process of allowing fluids to flow from a natural gas well following a treatment, either in preparation for a subsequent phase of treatment or in preparation for cleanup and returning the well to production. The flowback period begins when material introduced into the well during the treatment returns to the surface immediately following hydraulic fracturing or refracturing. The flowback period ends with either well shut in or when the well is producing continuously to the flow line or to a storage vessel for collection, whichever occurs first. Freshwater Well. A private water well used by a Protected Use. Gas. A naturally - occurring gaseous substance, including substances primarily composed of methane and other light, gaseous hydrocarbons. Gas Processing Plant. A facility, separate and distinct from a Drilling and Production Site, engaged in the extraction of natural gas liquids from field natural gas, or the fractionation of mixed natural gas liquids to natural gas products, or a combination of both. Gas Well. A hole or bore drilled to any horizon, formation, or strata for the purpose of producing natural gas, or liquid hydrocarbons. Gas Well Development. Any drilling activity or production activity. Gas Well Drilling and Production Activities. (A/K/A drilling and production activity(ies), drilling and production) As used in this Chapter, gas well drilling and production activities encompasses all three of the following: Initial Drilling Activities, Completion Operations and Production Activities. 0a Gas Well Permit. A two -stage written license granted by the City of Denton that authorizes drilling, completion and production activities, issued pursuant to rules and regulations of this Subchapter. A Gas Well Permit is required for each separate well and for each redrill of any gas well. Habitable Structure. Structures suitable for human habitation or occupation for which a Certificate of Occupancy or Final Inspection Certificate is required, including but not limited to, public buildings and enclosed buildings used for commercial or industrial purposes. A habitable structure shall not include accessory buildings, barns, garages and sheds. Hazardous Materials Management Plan. The hazardous materials management plan and hazardous materials inventory statements required by the Fire Code. Hydraulic Fracturing. The process of directing pressurized fluids containing any combination of water, proppant, and any added chemicals to penetrate tight formations, such as shale or coal formations, that subsequently require high rate, extended flowback to expel fracture fluids and solids during completions. Hydraulic Refracturing. Conducting a subsequent hydraulic fracturing operation at a well that has previously undergone a hydraulic fracturing operation. Initial Drilling Activities. The portion of the Drilling Activities that includes the means by which a portion of the earth is originally bored in order to create a pathway to formations containing hydrocarbons to allow for their production to the surface. Lift Compressor. A mechanized device that compresses gas prior to its introduction into a well for use in lifting well liquids to the surface. Lightning Protection System. An integrated system designed to ground metal equipment on a rig, well pad or at a tank battery location for protection against electrical shock, fire or explosion due to lightning. Liner. In pit construction, a liner is an impervious material, either synthetic or natural, that is used to line the interior of a pit to prevent pit fluids from leaking or leaching into the environment. New Drilling and Production Site or New Site. A proposed drilling and production site that is other than an existing drilling and production site. Nighttime. The hours between sunset and sunrise on any given day. Oil and Gas Inspector or Inspector. An inspector designated by the City of Denton that is responsible for evaluating the impacts of exploration, development, and production of oil and /or gas wells. Responsibilities include environmentally sensitive areas review, erosion control inspection, monitoring, and evaluating compliance with federal, state, and local regulations. 3 Operator. The person(s) in charge and in control of drilling, maintaining, operating, pumping, or controlling any well or pipeline including without limitation, a unit operator. Pit. A temporary or permanent containment for circulated fluids. A pit shall include: Completion/Workover Pit: Pit used for storage or disposal of spent completion fluids, workover fluids and drilling fluid, silt, debris, water, brine, oil scum, paraffin, or other materials which have been cleaned out of the wellbore of a well being completed or worked over. Drilling fluid disposal pit: Pit, other than a reserve pit, used for disposal of spent drilling fluid. Fresh makeup water pit: Pit used in conjunction with drilling rig for storage of fresh water used to make up drilling fluid or hydraulic fracturing. Mud circulation pit: Pit used in conjunction with drilling rig for storage of drilling fluid currently being used in drilling operations. Reserve pit: Pit used in conjunction with drilling rig for collecting spent drilling fluids; cuttings, sands, and silts; and wash water used for cleaning drill pipe and other equipment at the well site. Reserve pits are sometimes referred to as slush pits or mud pits. Saltwater disposal pit: Pit used for disposal of produced saltwater. Washout pit: Pit located at a truck yard, tank yard, or disposal facility for storage or disposal of oil and gas waste residue washed out of trucks, mobile tanks, or skid - mounted tanks. Water Condensate pit: Pit used in conjunction with a gas pipeline drip or gas compressor station for storage or disposal of fresh water condensed from natural gas. Plugging and Abandonment. Includes the plugging of the well, abandoned, orphaned or otherwise, in accordance with RRC Statewide Rule 3.14 and restoration of the Drilling and Production Site as required by this Subchapter. Production Activities (A/K/A Production). The phase that occurs after successful exploration, drilling and development involving operations including, but not limited to, gas wells, tanks, dehydrators, separators, mud pits, ponds, tank batteries or associated mechanical equipment, and during which hydrocarbons are extracted from the gas field, excluding those operations and facilities as defined and regulated by the Pipeline Safety Act of 1994, 49 U.S.C. §§ 60101 60137. Protected Use. Any dwelling, church, public park, public library, hospital, pre- kindergarten, kindergarten or elementary, middle or high school, public pool, public transit center, senior center, public recreation center, hotel or motel. Railroad Commission (RRC). The Railroad Commission of Texas. e! Reduced emissions completion. A well completion following fracturing or refracturing where gas flowback that is otherwise vented is captured, cleaned, and routed to the flow line or collection system, re- injected into the well or another well, used as an on -site fuel source, or used for other useful purpose that a purchased fuel or raw material would serve, with no direct release to the atmosphere. Site - specific authorization means the prior approval by ordinance of City Council, of one or more specifically located and defined gas well site locations, subject to further site design, development, regulatory and permitting requirements, as set forth in this Code or as specified within the site approval ordinance (or both), as applicable. Redrill. Any work to an existing well bore or an existing surface hole location after initial drilling that requires a new permit from the Texas Railroad Commission. This definition includes, but is not limited to, recompletions, sidetrack wells, drilling into a new horizon or drilling multiple directionals from the same surface hole location or using the same vertical wellbore. Redrill does not include Workover Operations. Site Preparation. To ready a Drilling and Protection Site for Drilling Activities by staking the location, installing erosion and sediment control practices, site clearing and grading, initial rig moves, and product deliveries. Tank. A natural or man -made container, covered or uncovered, in which to store, contain or mix liquids or hydrocarbons used or produced in conjunction with the drilling, stimulation or production activities of an oil or gas well. Wildcat well. A well outside known fields or the first well drilled in an oil or gas field where no other oil and gas production exists. Workover Operation. Work performed on a well after its initial completion to secure production where there has been none, to restore production that has ceased, or to enhance or increase production within the zone originally completed or to repair the well. Workover Operations may include refracturing activities. 61 tt��- ttaeEi+�ta -si=t ls�-€3 a r� � l�ttE- i�ae -��41- rra�1- � +r- t�t+t3- l�r«�L- tte-ea rtaErol -a�f -i lae- farr't�r�t# i+�ra- f�ttiE4 -For the yurlose of this C hater. certain words and terms shall be defined and interyleted as follows. Intel retations of meaning shall be made by the Director of Planning and Development based on the rrovisions of Section 35.1.4. Appeals of staff interpretations of this Chapter shall be heard as a Board of Adjustment proceedin& m accordance with Subsection 35.3.6. ® -.. Formatted: Font: Times New Roman, 12 pt Closed -loop mud system. A system that uses a combination of solids control equipment *v Formatted: Indent: Lett: 0.08 ", Pattern: Clear incorporated in a series of ~ removable, tanks that eliminates the use of a mud circulatio (Backgrou nd 1) ,. a reserve. pit- Formatte d: Pattern: Clear (Background 1) Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt ,Completion combustion device. Any ignition device, installed horizontally or vertically, used- ;. { Formatted: Font: 12 pt in exploration and production operations to combust otherwise vented emissions from Formatted: Pattern: Clear (Background 1)� completions, ( Formatted: Font: Times New Roman, 12 pt • ~ ` , r € �k ,. b-aa� ~ r�rt;. T— x4x�tlat�t�� � 1� -erst - � .' 1- ftra� -re-. Completion Cipeu ations. dhe portion of the Drilling Activities that includes the work that is pert <rrmed after Initial I)rillin Activities and prior t<r Iroduction Activities in order to optimize the production <rl'a well, often Iry insertin 5 cclnipment into the hole. - (Formatted: Font: Times New Roman, 12 pt Formatted: Pattern: Clear (Background 1) Compressor station. A facility that compresses natural gas for delivery by pipeline through a transmission pipeline. Consolidated Site A drilling and production site desinated for consolidation of has well devclo mcnt either thrau�h appraval cif a Gas Well Cambinin� District or a c-Consolidation fPcrmit . substance capable of contaminating a non - related homo fluid, gas or environment. Formatted: Font: Times New Roman, 12 pt Formatted: Pattern: Clear (Background 1) Daytime. }� rt# tt .ttt tt l he hCrL1rS between 5t1nC1Se al]d 5tlnSet on an given day, [- Formatted: Font: Times New Roman, 12 pt JDelineation well. A well drilled in order to determine- the boundary of a field or producing (Formatted: Font: 12 pt reservoir, —( Formatted: Font: Times New Roman, 12 pt ------------------------------------------------------------------------------------- ------------------------------- Drilling. Term used to typically describe the means by which the earth is bored to create a pathway to formations containing hydrocarbons to allow for their production to the surface. It can employ various types of mobilized drilling equipment to create a wellbore while incorporating drilling fluids to cool the bit, to condition the hole, to remove drilled cuttings and, most critically, to maintain an overbalanced pressure gradient against the formation that may contained inherently pressurized well fluids. Drilling Activities. Those activities coanmonly perfarmcd at a dDrillin� and pProduction sSite nLCCSSary or incidental to �ir�g hydrocarbons to market; including and not limited to initial drilling, hydraulic fracturing, flow bath, and completion operations, but not including production ac tvitics, a well redrill or any hydranlic refractarin��. Drilling and Production Site The area dedicated to all authorlrLd. gas well drilling -�+— _ tr + r , ' xfft-pndproduction fff-&a;- a utivlti-e- s and c-o- nwin- i-n- -all - structures, closed- - - -- loop systems, dehydrators, parking areas, security cameras, lighting, tanks, tank battery (or any other tank grouping area), drilling rigs, separators, lift comprressors-a -._ s- 4e4-­A . Vii - perimeter walls, utilities, and all other features or objects contemplated for use during and after gas well drilling or production activities, as designated on the Gas Well Development Plat or Gas Well Development Site excluding gathering and transmission lines and compressor stations. Drillino and Production Site includes the terms Gas Well Park Gas Well Pad Site and Drilling and Production Area #�� =ill -—t-I, � . � «Gcf- ferr�4t tf4trag -eat# tray- ::rri= e-fiwst 1�+taep- €*ra+de- htr- �r€*�tt�i�tE Formatted: Font: Times New Roman. 12 Formatted: Pattern: Clear (Background 1) Formatted: Font: Times New Roman, 12 pt ---------------------------------------------- Formatted. Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt ]Existing Drilling and Production Site or lExistin� Site. A gas well drilling and production site that was desi 5nated throe 5h approval <,P a gas well development site plan or a gas well Formatted: Footer, Tab stops: 0 ", Left 2 �/ 20 lam, and on which one or more gas well devel<apments have commenced. Where the boundaries of such site have not been desil5nated b an annroved gas well devel<rnment lat, the term defines the area incorporating all f {tcilities devoted to authorir.ed drilling activities or production activities. Xxploration. Geologic or geophysical- activities, including,- but not limited- to surveying ands .. -- { Formatted: Font: Times New Roman, 12 pt seismic exploration, related to the search for oil, gas, or other sub - surface hydrocarbons. [ Formatted: pattern: Clear (Background 1) Formatted: Font: Times New Roman, 12 pt .. -------- -------- --------- *- �a�z�- c�lrytltrtFt�t�- Ylowback. The process of allowing fluids to flow from a natural gas well following a treatment,- „ { Formatted: Font: Times New Roman, 12 pt either in preparation for a subsequent phase of treatment or in preparation for cleanup and Formatted: pattern: Clear (Background 1)� returning the well to production. The flowback period begins when material introduced into the well during the treatment returns to the surface immediately following hydraulic fracturing or refracturing. The flowback period ends with either well shut in or when the well is producing continuously to the flow line or to a storage vessel for collection, whichever occurs first. Freshwater Well. A private water well used by a Protected Use. of methane and other light, gaseous hydrocarbons. Gas Processing a, Plant. Apra + € fac lht cparate and distlnut from a Drilling and Production `site,, engaged in the extraction of natural gas liquids from field natural gas,- or the fractionation of mixed natural gas liquids to natural gas products, or a combination of both. natural us, or liquid hydrocarbons. Formatted: Font: Times New Roman, 12 pt, Not Bold ---------------------------------------------------------------------------------- - - - - -- Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt, Not Bold Formatted: Font: Times New Roman, 12 pt E - Formatted: Font: Times New R oman, 12 pt Gas Well: Develorzment. II Gas Well Drilling and Production Activities. (�A/K/A drilling and production activity(ies), drilling and production) As used in this Chapter, gas well drilling and production activities encompasses all three of the following: Drilling Activities, Completion Operations and Production Activities. Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt - - - - - -- - - - - -- -- - - - - -- ---- - - - - -- Formatted. Font: Times New Roman, 12 pt Formatted: Footer, Tab stops: 0 ", Left ------------------- ------------------------------- - - -------------------------- ------------------------------- ,Gas Well Permit. A two- stage: written license- granted by the City of Denton ' ' - l Formatted: Font: Times New Roman, 12 pt ea that authorizes drilling errt c<rmplc flan and production Formatted Font Times New Roman 12 pt iu at*a,., activities, issued pursuant to rules and regulations of this Subchapter. A Gas Well � Formatted: Font: rimes New Roman, 12 - pt Permit is required for each w -- separate well and for each redrill of any uas well. pt Formatted- Times New Roman, 12 pt - Habitable Structure. Structures suitable for human habitation or occupation for which a Certificate of mm mm mm mm.. (Occupancy or Final Inspection Certificate is required, including but not limited to Formatted: Font: Times New Roman, 12 pt public buildings; and enclosed buildings used for commercial or industrial purposes. A habitable structure shall not include accessory buildings, barns, garages and sheds. ,Hazardous Materials Management- Plan. The hazardous materials management plan and--"-,,- Formatted: Font: Times New Roman, 12 pt hazardous materials inventory statements required by the Fire Code. Formatted: pattern: clear (Background 1) Hydraulic Fracturing. The process of directing pressurized fluids containing any combination of water, proppant, and any added chemicals to penetrate tight formations, such as shale or coal formations, that subsequently require high rate, extended flowback to expel fracture fluids and solids during completions. Hydraulic Refracturing. Conducting a subsequent hydraulic fracturing operation at a well that l Formatted: Font: 12 pt has previously undergone a hydraulic fracturing operation, Formatted. Font. 12 pt, Font color. auto, Border.: (No border) Initial frilling Activities. The portion of the Drilling Activities that includes the means by which a portion of -the e"11111 is ori,5inally bored in order to create a pathway to 1 <rrmations containing hydrocarbons to allow for their production to the surface. a Formatted: Font: Times New Roman, 12 pt ' ------ -------------------------------------------------------------------------------- ---- - - -- - -- - - - -- �, Lift Compressor. A mechanized device that compresses gas prior to its introduction into a well Formatted: Pattern clear (Background 1 ) for use in liftin g well liquids to the surface. Lightning Protection System. An integrated system designed to ground metal equipment on a rig, well pad or at a tank battery location for protection against electrical shock, fire or explosion due to lightning. Formatted: Footer, Tab stops: 0 ", Left ------------------- ------------------------------- - - -------------------------- ------------------------------- -I°dew IOrillin and Production Site or I°dew Site. A proposed drilling and production site that is other than an existinu drilling and production site. The and on Oil and Gas Inspector or Inspector. An inspector designated by the City of Denton that is responsible for evaluating the impacts of exploration, development, and production of oil and /or gas wells. Responsibilities include environmentally sensitive areas review, erosion control inspection, monitoring, and evaluating compliance with federal, state, and local regulations. Operator. The person(s) in charge and in control of drilling, maintaining, operating, pumping, or controlling any well or pipeline including without limitation, a unit operator. #"- a'siezrs- nit€ alit— A- perl�rta- f�ttrai- 4+�rt- ��a+alr- Strad- edu�rEe'. aY- t?�ari1- �rrac�- ��t�- +taEk�tt�- ��ala�,7 -n _ ',G:;a A temnorary or nermanent containment for circulated fluids. A nit shall include: Completion/Workover p�Pit;: Pit used for storage or disposal of spent completion fluids, workover fluids and drilling fluid, silt, debris, water, brine, oil scum, paraffin, or other materials which have been cleaned out of the wellbore of a well being completed or worked over. Drilling fluid disposal pit: Pit, other than a reserve pit, used for disposal of spent drilling Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Pattern: Clear (Backaround 1) Formatted: Indent: Left: 0 ", Pattern: Clear - (Background 1) - -------------------------------------------------------------------------------- ------------------------------- Formatted: Font: Times New Roman, 12 pt Formatted: Font: 12 pt Formatted: Font: Times New Roman, 12 pt Fresh makeup water pit: Pit used in conjunction with drilling rig for storage of fresh water used . - -- [ Formatted: Font: -Times New Roman, 1z pt - - -- - - -- - - -- - - -- - - -- to make up drilling fluid or hydraulic fracturm� — Formatted Font Times New Roman 12 pt Mud circulation pit: Tit used in conjunction with drilling- rig for storage of drilling fluid Formatted: Font: 12 pt currently being used in drilling operations. Reserve pit: Pit used in conjunction with drilling rig for collecting spent drilling fluids; cuttings, sands, and silts; and wash water used for cleaning drill pipe and other equipment at the well site. Reserve pits are sometimes referred to as slush pits or mud pits. Saltwater disposal pit: Pit used for disposal of produced saltwater. Formatted: Footer, Tab stops: 0 ", Left ------------------- ------------------------------- - - --------------------------------------------------------- 5 Washout pit: Pit- located at a truck yard,- tank yard, or disposal facility- for storage or disposal- of Formatted: Font: 12 pt oil and gas waste residue washed out of trucks, mobile tanks, or skid - mounted tanks. Water Condensate pit: Pit used in conjunction with a gas pipeline drip or gas compressor station for storage or disposal of fresh water condensed from natural gas. , Formatted: Font: Times New Roman, 12 pt ° [Formatted: Pattern: Clear (Background 1) Plugging and Abandonment. - 'r e Formatted: Font: Times New Roman, 12 pt of the well, abandoned, orphaned or otherwise, in accordance with RRC Statewide Rule 3.14 and _ - Formatted: Font: Times New Roman, 12 pt restoration of the Drilling and Production Site as required by this Subchapter. Production A {Formatted: Font: Times New Roman, 12 pt drilling and development involving= or�erations ineludin�, but not linnited to, gas wells, tanks, dehydrators, separators, rnud pits, ponds, tank batteries or associated mechanical equipment. and during which hydrocarbons are extracted from the gas field, excluding those operations and facilities as defined and reGulated by the Pipeline Safety Act of 1994. �.C. bb 60101 — 60137. Protected Use. Any dwelling, church, public park, public library, hospital, pre - kindergarten, kindergarten or elementary, middle or high school, public pool, public transit center, senior center, public recreation center, hotel or motel. - --- l Formatted: Pattern: Clear (Background 1) Railroad Commission (RRC). The Railroad Commission of Texas. Reduced emissions completion. A well completion following fracturing or refracturing where Formatted: Font: 12 pt gas flowback that is otherwise vented is captured, cleaned, and routed to the flow line or collection system, re- injected into the well or another well, used as an on -site fuel source, or used for other useful purpose that a purchased fuel or raw material would serve, with no direct release to the atmosphere. Site- specific authorization means the prior approval by ordinance of City Council, of one or- , , { Formatted: Font: Times New Roman, 12 pt more specifically located and defined gas well site locations, subject to further site design, Formatted: Pattern: Clear (Background 1)� development, regulatory and permitting requirements, as set forth in this Code or as specified within the site approval ordinance (or both), as applicable. Formatted: Font: Times New Roman, 12 pt Redrill. Any work to an existing well bore ar an existing surface hole location after initial drilling that requires a new pern�ft from the d'exas Railroad Commission. This definition includes, but is not limited t<a, recomnletions, sidetrack wells, drillin(� into a new horizon or drillin(� multiple drectionals fron7 the same sulf {lce hole location or using the same vertical wellbore. Redrill does not include Workover C)nerations. Formatted: Footer, Tab stops: 0 ", Left ------------------- ------------------------------- - - -------------------------- ------------------------------- `site preparation �a ready a I7rillin� and F'ratectian Site far I7rillin� /lctivities by stal�in___the 1<rcatian installing erasian and sediment central practices, site clearing and grading, initial rig moves, and product. deliveries. Tank. A natural or man -made container, covered or uncovered in which to store contain or mix ------------------------------------------------------- liquids or hydrocarbons used or produced in conjunction with the drilling, stimulation or production t sactivities, of an oil or gas well. -+E ti�7Hk3rit� $£tFf33�3eL#tiH$Hpk3NF)FFiit Formatted: Font: Times New Roman, 12 pt, Bold Formatted: Pattern: Clear (Background 1) Formatted: Font: Times New Roman, 12 pt --------------------------- Formatted: Font: Times New Roman, 12 pt Formatted: Font: Times New Roman, 12 pt Formatted: Pattern: Clear (Background 1) Formatted: Pattern: Clear (Background 1) Formatted: Font: Times New Roman, 12 pt, Wildcat well. A well outside known fields or the first well drilled in an oil or gas field where no* • � Font color: Black, Border:: (No border) other oil and gas production exists. Formatted: Font: 12 pt Formatted: Pattern: Clear (Background 1) Workover Operation. Work performed on a well after its initial completion to secure �� Formatted: Font: Times New Roman, 12 pt production where there has been none, to restore production that has ceased, or to enhance or increase production within the zone originally completed or to repair the well. Workover neratlanS may include Tefractt7:ring actlyltlC;S - - -- ,Formatted: Font: Times New Roman, 12 pt - Formatted: Font: Times New Roman, 12 pt, Font color: Black, Border:: (No border) Formatted: Justified, Pattern: Clear (Background 1) Formatted: Footer, Tab stops: 0 ", Left ------------------- ------------------------------- - - -------------------------- ------------------------------- 35.22.3. - Required Authorization for Gas Well Drilling and Production in City Limits. A. Zoning District Classifications for Gas Well Drilling and Production. 1. The drilling and production of gas within the corporate limits of the City on existing Drilling and Production Sites shall be permitted by right within the Rural Residential (RD -5) or within any unzoned area of the City that is subject to the use regulations of the RD -5 District, Rural Commercial (RC), Neighborhood Residential 1 (NR -1), Neighborhood Residential 2 (NR -2), Regional Center Commercial Neighborhood (RCC -N), Regional Center Commercial Downtown (RCC -D), Employment Center Commercial (EC -C), Employment Center Industrial (EC -I), Industrial Center Employment (IC -E) and Industrial Center General (IC -G) Zoning Districts, except as provided in subsection B, and subject to obtaining a Consolidation Permit and compliance with the requirements of this Subchapter. 2. The drilling and production of gas within the corporate limits of the City on existing Drilling and Production Sites in all other zoning districts shall be permitted only by Specific Use Permit pursuant to subchapter 35.6, or through approval of a Detailed Plan in a Planned Development (PD) district, or site - specific authorization in Master Planned Community (MPC) district. Notwithstanding the provisions of Subsection A, approval of a Specific Use Permit also shall be required for gas well drilling and production on any land located within the 100 -year flood fringe or within one thousand, two hundred (1,200) feet of the flood pool elevation of Lake Ray Roberts or Lake Lewisville. Such drilling and production activities shall be subject to obtaining a Consolidation Permit and compliance with the requirements of this Subchapter. 3. Drilling and production of gas within the corporate limits of the City on new drilling and production sites shall be permitted through approval of a Gas Well Combining District pursuant to the requirements of Section 35.22.7.16. B. No gas well drilling or production activities may commence within the City limits until the following authorizations have been obtained, in the following sequence: 1. Approval of a Gas Well Combining District to establish any new Drilling and Production Site pursuant to Section 35.22.7.16, or approval of a Consolidation Permit to authorize a new gas well on an existing Drilling and Production Site pursuant to Section 35.22.4. 2. Approval of a Preliminary Gas Well Development Site Plan pursuant to Section 35.22.6.A. Upon receipt of an approved Preliminary Final Gas Well Development Site Plan, the operator may commence construction of a Drilling and Production Site. No disturbance of the land is allowed until a Preliminary Final Gas Well Development Site Plan is obtained. An application for a Site Preparation Permit must accompany a request for a Gas Well Combining District or an application for a Consolidation Permit. 3. Upon completion of Drilling and Production Site construction, and prior to any additional activity on the site, the operator must obtain a Final Gas Well Development Site Plan pursuant to Section 35.22.6.B. 4. Approval of a Gas Well Permit authorizing Initial Drilling Activities from the Denton Gas Well Division pursuant to the application requirements and standards of Section 35.22.7. 5. Approval of a Temporary Above - Ground Storage Tank Permit from the Denton Fire Department. 6. Approval of Gas Well Operational Permit from the Denton Fire Department. 7. When all approvals contained in Sections 1 - 6 above have been obtained, applicant may commence Initial Drilling Activities. 8. Approval of a Flammable and Combustible Liquids Construction Permit from the Denton Fire Department. 9. Approval of a Flammable and Combustible Liquids Operational Permit from the Denton Fire Department. 10. Approval of a Gas Well Permit authorizing Completion Operations and Production Activities from the Denton Gas Well Division pursuant to the application requirements and standards of Section 35.22.7. 11. When all approvals contained in Sections 1 - 10 above have been obtained, applicant may commence Completion Operations and Production Activities. 12. Amendments to the authorizations set forth in this Section shall be as required in the provisions governing the original application. 13. New drilling or production activities on an existing Drilling and Production Site that is subject to an approved Watershed Permit, or on sites which required a Watershed Permit under prior regulations, but for which site no Watershed Permit was issued, are subject to the requirements of Section 35.22.5.C. The applications for any authorization for gas well drilling and production listed in Subsection must be submitted and approved in the numerical order listed. No subsequent application shall be determined to be complete and hereby is deemed to be incomplete until all 2 required prior applications have been approved, and no completeness determination shall be made until such prior applications have been approved. D. Applications for gas well drilling and production shall expire under the following circumstances: 1. A Specific Use Permit, or site - specific authorization in a PD district or MPC district, which was approved under prior gas well regulations expires according to its terms; 2. A Watershed Protection Permit, if applicable, expires with the expiration of a Final Gas Well Development Site Plan. 3. A Consolidation Permit expires unless a complete application for a Final Gas Well Development Site Plan has been filed within two (2) years of the approval of the Consolidation Permit. 4. A Preliminary Gas Well Development Site Plan expires either with the expiration of a Consolidation Permit, or in other circumstances, unless a complete application for a Final Gas Well Site Development Plan has been filed within one (1) year of the date of the approval of the Preliminary Gas Well Development Site Plan. 5. A Final Gas Well Development Site Plan expires unless a complete application for a Gas Well Permit has been filed within one (1) years of the date of approval of the Final Gas Well Site Plan. 6. A Gas Well Permit expires if the particular stage of authorized activity (i.e, Drilling Activities or Completion Operations and Production Activities) has not commenced within six (6) months of the date of approval of the Gas Well Permit. 7. The expiration of any subsequent application results in the expiration of all prior approved applications for the same activity. E. Following expiration of an approved application for gas well drilling and production, a new application must be submitted. F. The authorizations required by this Subchapter are in addition to, and not in lieu of, any permits that may be required by any other provision of the Denton City Code or by any other government agency. G. Legal Non - Conformity; Exceptions. 1. Non - conformities. The provisions of Subchapter 11 are applicable to gas well drilling and production activities, except as provided hereinafter. a. For purposes of Subchapter 11, the drilling of a new gas well and associated production activities do not constitute an existing lawful use. 3 b. Every Operator of a Drilling and Production Site that has been annexed into the City shall register the Drilling and Production Site within 30 days of the effective date of the annexation. c. The adoption of zoning district regulations for a Gas Well Combining District, the creation or amendment of a Combining District, or amendment of the permitted use tables and limitations in Subchapter 35 -5 to provide for gas well drilling and production activities shall not affect the legal status of drilling and production activities existing on the effective date of this amendatory ordinance. d. The adoption of regulations for designation of consolidated drilling and production sites, or the application of such regulations to existing drilling and production sites shall not affect the legal status of drilling and production activities existing on the effective date of this amendatory ordinance. e. The adoption of regulations requiring setbacks from protected uses, or the application of such regulations to existing Drilling and Production Sites shall not affect the legal status of drilling and production activities existing on the effective date of this amendatory ordinance. 2. The standards or procedures implemented by this amendatory ordinance (Ordinance No. ) shall not affect the processing and approval or disapproval of an application for a gas well permit that was pending for decision on the effective date of this amendatory ordinance, or any subsequent permit applications for the same gas well, or for a gas well for which a gas well permit was approved prior to the effective date of this amendatory ordinance, except to the extent necessary to give effect to this subsection F. For purposes of this subsection 2, an amended gas well site plan application is not a subsequent permit application. 3. Authorizations or applications excepted under subsection 2 are subject to all gas well drilling and production standards in effect immediately prior to the effective date of the amendatory ordinance (Ordinance No. ). 4. To the extent that any exception provided under subsection 2 is dependent on an application pending on the effective date of an amendatory ordinance, such application must have been approved subsequently in order for the exception to apply. 9 II)m 11- 3.11-- - - - - -- Formatted: R- -i -g h-t- -------------------------------- — — — — ---- 11 ------------------------- ------- -------------------------------------------------------------------------------------------------------------------- 35.22.4-3. - Required Authorization for Gas Well Drilling and Production in City Limits. Formatted: Indent: Left: 0" Formatted: Font: Bold, Font color: Auto Production. 1 the drilling and production of gas within the corporate limits of the City on existing dDrillin and pProduction sSites shall be permitted by gri ht within he Rural Residential (PD -5) or within env unzoned area of the Ci that is subect to the Neighborhood R Regional Center C Commercial Downtown I Industrial Center (several �-oLzonrngy Districts except as provided �m subsection �Band �sLibcct, to retuirements of this Subchapter. 2. the drilling and production of gas within the corporate limits of the City on existing dDrillin and pPr<'rductian sSites in all ether zoning districts shall be permitted only by `�necitic �7se Permit. pursuant to subchapter 35.x, or throu�517 approval of a Detailed Plan in a Planned Development ID district or site - specilic authorization in Master Planned Community (NII'C) Notwithstandin(5 the rovisions of Subsection A, approval <,l' a Specific �7se Permit also shall be reduired for gas well drilling and production on any land located within the 100 -year flood fringe ar within ape thousand, twa hundred (1,200) feet <,P the flood pool elevation <,P Lake Ray Roberts or Lake Lewisville. Such—drillin—and production _activiti�essIyrllbc subject _toobtauun,—�a L2 eConsolidation pPermit and compliance with the requirements <,Pthis Subchapter. 3. Drillings drillin,—and production sites shall be Combining District pursuant to the reduirements of Section 35.22.7.16. L3. No gas well drilling or production activities may commence within the City limits until the following authorizations have been obtained, in the following sequence: [Formatted: Indent: Hanging: - 0.25" I 1. Approval of a 4F,c, : c; Q rsl r„ —,is Well Combining District to establish any 4sit �-s 'Production -�sSitc pursuant to Section 35.22.7.16, or approval of a Consolidation Permit to authorize a new gas well on an existing and P�roduction �-sSite purswin�tto Section-A-g-,_35.22.4. Approval of a 7 Prelinminary- Gas Well Development Site Plan t nu want; to Section 35.22.6.A. Upon receipt of an approved Prehminary i as WLII Development well 4Drilling and c r Produc tlon sS1tL Nu dl5turbanc L of the land is allowed until a Prehminary iras Well Development Sitc flan 1s obtained. An application for a Site Preparation Permit must accompany quest for a Gas Well Combining District or an application for a Consolidation Permit. f1fNi1 additional activity on the site, the <rperator must obtain a Final Gas Well Develo nit Site Plan pursuant to Section 35.22.013 4- Approval of a Gas Well of Section- 35.22.7. Formatted: Font color: Auto Formatted: Font color: Auto - -- - - - - -- -- - - - - -- -- - - - - -- ----------------- - - - - -- Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font: Times New Roman, 12 pt, Font color: Auto Formatted: List Paragraph, Tab stops: Not at 0.75" Formatted: Font color: Auto )rizing Initial Drilling Activities _ r , from -� Formatted: List Paragraph, Indent: Left: 0.5 ", to the application re q uirements and standards Hanging: 0.25" Formatted: Indent: Left: 0.5 ", Hanging: 0.25 ", No bullets or numbering, Tab stops: Not a, at 0.5" + 0.75" 1. ii+rr5. Approval <,l' a d'en7porary Above - Ground Stora(e d'anlc Permit from the Denton Fire Department. C. Approval <,l'Gas Well Operational Permit from. the Denton Fire Department. 7. When all approvals contained in Sections 1 - �6 above have been obtained, a licant may cammence Initial Drilling Activities. �. Approval of a F'larnmable and Combustible Liquids Construction Permit from the Denton Fire Department. �). Approval <,l' a Flammable and Combustible I,icuii ds Operational Permit from the Denton Fire Department. 14. Approval of a Gas Well Permit authorizinL Completion Operations' and Froduction Activities from the Denton Gas Well Division pursuant to the application requirements and standards of Section Ir,X)7 114. When all approvals contained in Sections 1 - 10 above have been obtained, applicant may commencL Completion Operations and Production Activities. Formatted: Font color: Auto -- --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Formatted. Font color: Auto Formatted: Indent: Hanging: 0.25 ", Tab stops: Not at 0.75" Formatted: Left, Tab stops: 0 ", Left 2 35.22.3 -Required Authorization for Gas Well Drilling and Production (AL Redline 12 -8 -1414) m� 12. Amendments to the authorizations set forth in this Section shall be as required in the provisions (�overnin(,� the ori(,�inal application. 13. New drllhn� aT Taduetlan aet1y1t1eS an an eXlstln , dDrlllm and Production BSite. Formatted: Indent: Left: 0.5" that is sLiVect to an approved Watershed Permit, or on sites which required a Watershed Permit under prier re�ulatians, but far which site na Watershed Permit was issued, are sabred to the requirements of Section 35.22.S.C. 'f'he applications for any authorization for gas well drilling and production listed in Subsection A ff+a�,Lnust be submitted r lip l- i r- Nt tk approved in the numerical order listed. No subsequent application shall be determined to be complete and hereby is deemed to be incomplete until all required prior applications have been approved, and no completeness determination shall be made until such prior applications have been approved. reaeD_�____Agplications for gas well drilling and production shall expire under the following circumstances: -- - Formatted: Indent: Hanging: 0.25 ", Tab 1. A Specific Use Permit, or site - specific authorization in a PD district or MPC district, stops: Not at 0.75" which was approved under prior pas well regulations expires according to its terms; 2. A Watershed Protection Permit, if applicable, expires with the expiration of a Final Gas Well Development Site Plan. Formatted: Indent: Left: 0.5 ", Hanging: 3. rel1 -A eConsolidation pPermit expires unless a 1 0.25" J complete application for a Final Gas Well Development Site Plan has been t11ed within two (2) years of the approval g,f the Consolidation Permit. 4. A Preliminary F4+kt —Gas Well Development Slte Plan expires either with the" � Formatted: Pattern: Clear (Background 1) eiration of a Consolidation Permit, or in other circumstances, unless a cam P lete application fora Final Gas Well Site Development Plan has been filed within one (1) yew ear of the date of the approval of the siitf> frht Preliminary Gas Well Develgpment Site flan. 4 5. A Final Gas Well Develgpment Site flan expires unless a con? lete application f <rr a Gas Well Permit has been filed within one (1) year of the date of approval of the Final Gas Well Site Plan. 6. A Gas Well Permit expires if the particular stage of authorized activity�� Formatted: Pattern: clear 4illit b aetiv ties (i.e., Drilling Activities or Completion Operations and Production Activities ) has-,ze not commenced within six (6) months of the date of approval of the Gas Well Permit. Formatted: Normal, Indent: Left: 0.5 ", -2 7_. The expiration of any subsequent application results in the expiration of all prior4� Hanging: 0.25 ", No bullets of numbering, approved applications for the same activity. Pattern: clear, Tab stops: Not at 0.5" Formatted. Left, Tab stops: 0 ", Left 3 35.22.3 -Required Authorization for Gas Well Drilling and Production (AL Redline 12 -8 -1414) m� l a — Formatted: Normal, Indent: Left: 0.25 ", --_---Following expiration of an approved application for gas well drilling and Hanging: 0.25 ", No bullets or numbering, Tab stops: Not at 0,5" production, new application must be submitted �-� e� * ¢ ^" T' EF. The authorizations required by this Subchapter are in addition to, and not in lieu of, any permits that may be required by any other provision of the Denton City Code or by any other government agency. _120. Legal Non - Conformity; Exceptions. Non - conformities. The provisions of Subchapter 11 are applicable to gas well drilling and production activities — except as provided hereinafter. a. For purposes of Subchapter 11, the drilling of a new gas well and associated production activities do not constitute an existing lawful use. 4- b. Every Operator of a Drilling and Production Site that has been annexed* Formatted: Normal, Indent: Left: 0.75', into the City shall register the Drilling and Production Site within 30 days of the Hanging: 0.25", No bullets or numbering, Tab effective date of the annexation. stops: Not at 0.5" + 0.75" 2 P—rrAt C. Me adoption of zoning district regulations for a Gas Well Combining District, the ii+rrp °° T „i rz�.=� � n�.uz�..�. � creation or ,. a*- amendment an 4- 24of a Combinin-) District, or "''-5 -+ tnez= -r i iE ab t e it- immendment of the permitted use tables and limit tations in Subchapter 35-5 to provide for gas well drilling and production, itea r pie e altar activities shall not affect the le Sal status <rf drillin 5 and Production activities existing5 on the effective date <,f' this amendatory ordinance. d. The adoptian crf re�ulatians f<rr desienatian crf cansolidated drilling and production sites, or the application of such regulations to existui (Y drilling and production sites shall not affect the legal status of drilling and production activities existing5 on the effective date <rfthis amendatory ordinance. e. The adoption of re(�ulations recinirin(5 setbacks from protected uses, or the application of such regulations to existing dE)nllin and PProduction aSites shall not affect the legal st <ftns <,P drillings a r?d production activities existing on the effective date of this amendatory ordinance. 2. The standards or procedures effected by this amendatory ordinance (Ordinance No. shall not affect the processin(� and approval or disapproval <,P an application f <rr a ras well permit that was pendin(� fur decision on the effective date of s�this amendatory ordinance, or any subset tri ent permit aFsplications f <rr the same (5as well, or for a ,5as well for which a (5as well permit was ap roved prior to the effective date of thise amendatory ordinance, except to the extent necessary to give effect to this subsection ses of this subsection Formatted: Left, Tab stops: 0 ", Left 35.22.3 -Required Authorization for Gas Well Drilling and Production (AL Redline 12 -8 -1414) 3. Authorizations or applications excepted under4kis, subsection 2 are subject to all gas well drilling and production standards in effect immediately prior to the effective date of the amendatory ordinance (Ordinance No. ). Ord t w++-44+e r 45. 4. To the extent that any exception provided under subsection 2 is dependent on an application pending on the effective date of an amendatory ordinance, such application must have been approved subsequently in order for the exception to apply. Formatted: Left, Tab stops: 0 ", Left 35.22.3 -Required Authorization for Gas Well Drilling and Production (AL Redline 12 -8 -1414) TI �- Formatted: Left, Tab stops: 0 ", Left 35.22.3 -Required Authorization for Gas Well Drilling and Production (AL Redline 12 -8 -1414) 35.22.4. — Consolidation Permits A. Purpose It is the intent of this section to establish a consolidated gas well site that allows reasonable exploitation of mineral resources through gas well development while minimizing to the greatest extent practicable conflicts between gas well developments and existing and future residential, commercial and industrial developments and, in particular, conflicts that arise between gas well developments and protected uses. Through approval of a Consolidation Permit, existing and future gas well development may be authorized on the best situated existing drilling and production site, while future gas well development may be restricted on other existing drilling and production sites. B. Applicability 1. Consolidation Permit. Except as provided in subsection (2), no watershed protection permit, original or amended gas well development site plan or gas well permit application may be approved for an existing drilling and production site which has not been authorized through creation or amendment of a Gas Well Combining District, unless the applicant has first obtained a gas well consolidation permit designating a consolidated drilling and production site. 2. Exceptions. A gas well consolidation permit is not required if, on the effective date of this Section, one of the following circumstances exists: a. An unexpired Gas Well Permit already has been issued for a gas well to be located on an existing drilling and production site; or b. A complete application for a Gas Well Permit has been filed for a proposed new well on an existing Drilling and Production Site and is pending for decision. If the permit application is denied, a subsequent application shall undergo consolidation review; or C. No Gas Well Permit is required for the proposed drilling or production activity, unless the Operator desires to perform re- drilling or re- completion activities so as to require compliance with this Chapter; or d. The existing Drilling and Production Site is located within an approved Master Planned Community (MPC) District, Planned Development (PD) District or is subject to a Specific Use Permit, which designates drilling and production sites and establishes rules for consolidation of gas wells on such sites consistent with the intent of this section. All separation standards in Section 35.22.8.A shall apply to any well that qualifies for an exception under this subsection. C. Application Requirements Pre - application Conference. The applicant shall schedule a conference with the Oil and Gas Inspector before filing an application for a Consolidation Permit in order to discuss alternative locations for a consolidated gas well site and available options. 2. Application Contents. The mineral lessee or operator shall be the applicant. The applicant shall designate an existing Drilling and Production Site as a consolidated well site, providing the following information: a. A property description of all lands for which applicant holds or controls the mineral lease within one mile of proposed gas well location, including areas within the City's extraterritorial jurisdiction; b. A metes and bounds description of the proposed consolidated site; C. Location of all existing, approved Drilling and Production Sites including consolidated sites, owned or under lease by the applicant within one mile of the proposed consolidated site, including areas within the City's extraterritorial jurisdiction; d. All existing and authorized wells owned, leased or operated by the applicant within one mile of the proposed consolidated site; e. The distance of the proposed Drilling and Production Site and each existing or newly planned Drilling and Production Sites described in subsections (b) through (d) to existing or approved Protected Uses. £ Separation distances drawn and labeled on the plan from each proposed well to the nearest internal boundary lines of the proposed consolidated site and separation distances from drawn between each existing or proposed well; g. A Preliminary Gas Well Development Site Plan for the proposed consolidated site, prepared in accordance with Section 35.22.6.A; h. A detailed site plan that clearly depicts the proposed consolidated site and surrounding properties that includes zoning district labels for the site and surrounding properties; notes indicating whether a Gas Well Development Site Plan, Gas Well Development Plat, Consolidated Site or an SUP was previously approved for the subject site; and dimensions of any required buffers per DDC Section 35.13.8. The Plan shall include distance measurements to Protected Uses within 1,200 feet of the site, identify Environmentally Sensitive Areas ( "ESAs ") and label any FEMA 100 -year floodplain and floodway. Flood plain information must be shown for all areas within one mile of proposed consolidated site. D. Processing of Application L Filing and Completeness Review. The application for a consolidation permit shall be filed with the Department. The application shall be reviewed for completeness by the Oil and Gas Inspector in accordance with the procedures of Section 35.16.8. 2. DRC Review. If the application is determined to be complete, it shall be sent to the DRC for review, which must be completed within 10 days of the filing of a complete application. 3. Applicant's Request for Limitation on Contiguous Leased Area. If an applicant contends that one or more areas within the contiguous area subject to mineral leases held by or under the control of the applicant should not be considered in designating a consolidated site, it shall identity such areas and present its reasons with the application for a consolidation permit. The Oil and Gas Inspector shall notify the applicant of its rights to request a special exception from the Board of Adjustment pursuant to Section 35.22.14. If an applicant chooses to appeal the matter to the Board, all further review of the Consolidation Permit application shall be suspended pending the Board's decision on the appeal. E. Criteria and Decision 1. Designation of Contiguous Leased Area. From the information submitted by the applicant, or as determined by the Board pursuant to section 35.22.3.D, the Oil and Gas Inspector shall designate the boundaries of the area subject to contiguous mineral leases owned by or under the applicant's control within one -half mile of the proposed gas well location and which constitute the area within which the request for a consolidated site will be evaluated. 2. Criteria. In evaluating an application for a Consolidation Permit, the Oil and Gas Inspector shall apply the following criteria: a. An existing Drilling and Production Site may not be designated as a consolidated gas well site if- (1) The site is located within a flood plain or other ESA; (2) The boundaries of the site are 500 feet or less from a protected use; (3) The site is located within 2,640 feet of an approved consolidated site under the control of the same operator; or (4) There is another Drilling and Production Site within the contiguous leased area that is a greater distance from protected uses; 3 b. The proposed site must be able to accommodate the number of additional wells permitted for the area subject to the mineral lease(s). The number of wells authorized for a consolidated site shall be computed at the ratio of one additional well per 20 acres subject to the lease(s), up to 32 gas wells per square mile of leased area. The number of gas wells allowed shall be reduced by the number of gas wells authorized on other existing drilling and production within the leased area, but an additional well shall be authorized for every plugged and abandoned well on another drilling and production site within the contiguous leased area. The maximum area for a consolidated site shall not exceed five acres unless the consolidated site accommodates more than one operator. The maximum area can be increased one (1) acre for each additional operator that locates wells on the consolidated site. C. The gas well administrator may not approve a consolidated site that is less than the following minimum separation distance from a protected use, relative to the size of the contiguous leased area to be restricted, unless the Board of Adjustment authorizes a lesser separation distance: Minimum Separation Distance 1000 feet 800 feet Contiguous Leased Acreage 1 -160 acres 161 -640 acres d. The site must be served by a road network that has adequate capacity to serve all proposed gas well development proposed for the site. e. In comparing the proposed site with other existing Drilling and Production Sites that meet the criteria for a consolidated gas well site, the following shall be taken into consideration: (1) Land within the mineral leasehold that is zoned for industrial purposes shall be prioritized over all other locations for the gas well consolidation permit. (2) In considering relative separation distances, residential uses shall be given preference over other Protected Uses 3. Decision. The gas well administrator shall approve or deny the permit within 5 days of receiving the report of the DRC and shall notify the applicant in writing of his decision. If the permit application is denied, the administrator shall state the reasons for denial and may state whether an alternative Drilling and Production Site within the area subject to the mineral lease(s) would qualify for designation H as a consolidated gas well site. If the permit application is approved, the Oil and Gas Inspector shall act upon the preliminary Final Gas Well Development Site Plan submitted with the application in accordance with the procedures in Section 35.22.6.B. 4. Permit Provisions. The consolidation permit shall specify the following: a. The maximum number of gas wells authorized for the consolidated site; b. Identification of the approved and recorded development plat that (i) identifies the consolidated site, (ii) the boundaries of the area within which no future drilling or production activities shall take place, and (iii) identification of the other drilling and production sites within such restricted area; and C. A statement that no new wells shall be established on other Drilling and Production Sites shown on the development plat. 5. Conditions. As a condition of granting the consolidation permit, the applicant shall: a. file a development plat for the designated contiguous leased area that: (1) vacates any existing development plats designating Drilling and Production Sites; (2) designates the consolidated site by metes and bounds description and incorporates the terms of the consolidation permit; (3) limits drilling and production activities on all other Drilling and Production Sites to existing well(s) or wells authorized under an exception to the requirements for a Consolidation Permit pursuant to subsection 35.22.4.B.2; and (4) states that no other Drilling and Production Sites may be established within the boundaries of the plat. b. The applicant shall record the development plat within 30 calendar days following approval by the Oil and Gas Inspector. C. Provide roadway improvements needed to offset the impacts of traffic from the consolidated gas well site. 6. Appeal. Appeal of the gas well administrator's denial of the consolidation permit application shall be to the Board of Adjustment pursuant to Section 35.22.14.A. 5 F. Effect of Approval. The approval of a Consolidated Permit designating a consolidated site shall have the following effects: a. All Gas Well Permit applications submitted thereafter for the consolidated site shall not be subject to the separation standards in Section 35.22.5.A.1. b. Gas well drilling and production activities on all other Drilling and Production Sites within the area subject to the development plat shall be limited to existing activities or those authorized by an exception pursuant to subsection 35.22.4.B.2. C. Surface developments will be subject to the minimum reverse setbacks from the consolidated site and from all other Drilling and Production Sites included within the area subject to the Consolidation Permit in accordance with Section 35.22.8.A.2. G. Option. An applicant for a Gas Well Permit for an existing Drilling and Production Site, in lieu of submitting the application for a Consolidation Permit as required by this Section, and following consultation with the Oil and Gas Inspector, may apply for a Gas Well Combining District pursuant to Section 35.7.16 of the Denton Development Code. C, Section 35.22.5. Watershed Permits for Gas Well Developments A. Applicability. I. A Watershed Protection Permit shall be approved prior to approval of any Gas Well Development Site Plan, Gas Well Development Plat, or Gas Well Permit that includes land in any floodplain or ESA within the corporate limits or ETJ of the city. Approval of a Watershed Protection Permit authorizes the processing of a complete application for a Gas Well Development Site Plan or Gas Well Development Plat, as the case may be, that includes land in a floodplain or ESA. 2. A Watershed Protection Permit application may be submitted simultaneously with an application for a Gas Well Development Site Plan or Gas Well Development Plat. B. Application Requirements and Processing. A Watershed Protection Permit shall be processed in accordance with the following: I. An application for a Watershed Protection Permit shall contain the following information and such information as may be required by the Development Review Committee and the Environmental Services Department, which is reasonably necessary to review and determine whether the proposed development and required facilities meet the requirements of this Subchapter and as required by the Application Criteria Manual. In addition the information shall include the following: a. A Tree Inventory Plan shall show the location of ESAs on any proposed Drilling and Production Site. b. Any request to remove tree(s) shall be accompanied by a letter from a certified geologist or engineer that indicates why the well site cannot be located to avoid the trees. If Operator has chosen to pay into the Tree Mitigation Fund, such funds shall be paid prior to final approval of a Drilling and Production Site within an ESA. c. Show location of ESAs on proposed Drilling and Production Sites. 2. All applications for Watershed Protection Permits shall be filed with the Department, who shall immediately forward all applications to the DRC for review. Incomplete applications shall be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies if requested by the applicant. The City shall retain a processing fee determined by the City Council. The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator. No application shall be deemed accepted for filing until the application is complete. C. Decision. 1. Each application for a Watershed Protection Permit for gas well development shall be decided by the Director of Environmental Services following DRC review. 2. Criteria for Approval. In deciding the application for a Watershed Protection Permit, the DRC shall apply those standards set forth in Section 35.22.6.D. The DRC may attach such conditions to approval of a Watershed Protection Permit as are necessary to assure that the requirements of Subsection D are met. 3. Each Watershed Protection Permit approved by the DRC shall: a. Identify the name of each well subject to the permit; b. Specify the date on which the Permit was issued; c. Incorporate by reference all applicable standards of approval; and d. Incorporate by reference all applicable conditions of approval. D. Watershed Protection Permit Criteria The standards in this subsection are adopted pursuant to the authority granted by Texas Local Government Code, Section 551.002 and Chapter 211 and are intended to minimize adverse impacts on areas within the Flood Fringe or ESA, reduce flood damage, and lessen the potential for contaminating surface water or any water supply. 1. Location of Sites. Drilling and Production Sites shall be located outside ESAs whenever practicable to minimize adverse impacts on these areas, reduce flood damage, and lessen the potential for contaminating surface water or any water supply. 2. Riparian Buffers. For all ESAs prior to the approval of a Gas Well Development Plan: a. If a riparian buffer is designated as "fair" to "excellent" ESA, the designated protective stream buffer width as specified in Subchapter 17 of the Denton Development Code shall apply, and no encroachments shall be allowed. b. Within all areas except unstudied floodplains, if the stream is designated as a "poor" ESA, the designated width of the protective stream buffer shall be decreased by either fifty (50) percent or to the limits of the floodway whichever is greater, but in no instance shall the protective stream buffer width be decreased below twenty -five (25) feet measured each direction from the centerline of the existing channel. 3. Tree Mitigation. Tree mitigation for gas wells located in an ESA shall be required and shall be calculated on a one to one replacement value for one hundred (100) percent of the dbh of trees removed from the Drilling and Production Site. Tree mitigation shall be accomplished by planting replacement trees, within a floodplain, on -site or off -site with similar tree species or by payment into a Tree Mitigation Fund. Tree Mitigation Funds that are specific to ESA's will be kept separate from other Tree Mitigation Funds and will only be used to either acquire wooded floodplain or riparian property that remains in a naturalistic state in perpetuity, or to purchase conservation easements within riparian or floodplain areas. Funds may be used to purchase, plant, and maintain trees on public property, as long as the public property is within a riparian area or floodplain. 4. Tree Removal Any request to remove tree(s) shall be accompanied by a letter from a certified geologist or engineer that indicates why the well site cannot be located to avoid the trees. If Operator has chosen to pay into the Tree Mitigation Fund, such funds shall be paid prior to final approval of a Drilling and Production Site within an ESA. 5. Limitation on Well Heads. Only one (1) well head may be placed in the Flood Fringe or ESA under the following conditions: a. Storage tanks or separation facilities shall be constructed at least eighteen (18) inches above the established Base Flood elevation plus the surcharge depth for encroachment to the limits of the floodway having a one (1) percent chance of being equaled or exceeded in any year. b. A hydrologic and hydraulic engineering study shall be performed by a Registered Professional Engineer. The study shall be submitted to the Engineering Department in a technical report for review by the City Engineer or his designated representative. The report shall demonstrate that the proposed facilities will have no adverse impacts on the carrying capacity of the adjacent waterway nor cause any increases to the elevations established for the floodplain. When the Special Flood Hazard Areas (SFHA) on the subject site is designated as "Zone A" on the FIRM Panel, or the SFHA is not identified on the FIRM Panel, the following approximate method may be used to evaluate the impacts from gas well development. A flow rate shall be calculated using procedures set forth in the City of Denton Drainage Criteria Manual. Using Manning's Equation with an estimate of the average slope of the stream, measurements of a single irregular cross - section geometry at the well site, and the one hundred (100) year discharge rate, the average velocity and normal depth may be calculated. Calculations shall be provided for the unaltered existing channel cross - section and for the proposed modified channel cross - section and submitted to the City for review and approval prior to construction within these areas. c. No more than ten (10) percent of the floodplain, within the limits of the Gas Well Development Site Plan or Gas Well Development Plat, may be filled. 6. Additional Standards inside City Limits. For land inside the City limits, all conditions imposed by any applicable SUP, MPC District or a PD District for the land subject to the Watershed Protection Permit, as well as the standards in Section 35.22.5.17, shall apply. E. Post- approval Procedures. I If evidence from water quality monitoring efforts indicates that contamination is occurring from gas wells, the Operator shall remove, cause to be removed, or otherwise remediate contamination, as required by the Oil and Gas Inspector including but not limited to Waste Minimization Practices established by the RRC. Cleanup operations shall begin immediately. A re- inspection fee shall be charged as established by the City Council and published in the Application Criteria Manual. 2. An associated Watershed Protection Permit shall expire with the expiration of the Gas Well Development Site Plan and may not be extended prior to expiration. 35.22.65. - Watershed Protection Permits for Gas --- I Formatted Well Develo>GZments. A. Applicability. Formatted: Font: Bold -2 I. A Watershed Protection Permit shall be approved prior to approval of any Gas Well Development Site Plan, Gas Well Development Plat, or Gas Well Permit that includes land in any floodplain or ESA within the corporate limits or ETJ of the city. Approval of a Watershed Protection Permit authorizes the processing of a complete application for a Gas Well Development Site Plan or Gas Well Development Plat, as the case may be, that includes land in a floodplain or ESA. t - - -. -_l Formatted: Indent: Left: 0.5" An apphcation for a Watershed Protection Permit shall contain the following Formatted: List Paragraph, Numbered + Level: information and Such information as may be r 1 + Numbering Style: 1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at: 0.5 + Indent at: Environmental Set-vices Department, which is reasonably necessary to review and 0.75" determine whether the )r posed devel<rpment and required facilities meet the reduirements of this Subchapter and as reduired b the lication Criteria Manual. In addition the information shall include the followingy information � Formatted Indent: Left 0 .� Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: a, b, c, ... + Start at: 1 + a. A Free IriventoTy Plan Shall ShC)W file 1CJeatiCJn of I;SAS on any proJfJSed Drilling Alignment: Left + Aligned at: 0.75' + Indent and Production Site. at: 1" - -- [ :_Indent:_ Left: 0" - - -- - - - -- - - -- b. A from a certified- — Formatted: List Paragraph, Numbered + Level: eolo�ist or engineer that indicates Why the Well site cannot be pleated to avoid 1 + Numbering Style: a, b, c, ... + Start at: 1 + Alignment: Left + Aligned at: 0.75' + Indent at: 1" the trees. If the ()aerator has chosen toy into the d'ree Vliti(5ation Fund, such funds shall be paid prior to final approval of a Drilling and Production Site within an ESA. c. Show location of ESAs on and Production Sites. for Watershed Protection Permits shall be filed with - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Department, who shall immediately forward all applications to the DRC for review. Incomplete applications shall be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies if requested by the applicant. The City shall retain a processing fee determined by the City Council. The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the O(Verator. No application shall be deemed accepted for filing until the application is complete. decided by the Director of Environmental Services following DRC review 2. Crite rotection Permit; the DRC shall a ly those standards set forth in Section 35.22.6.D. The DRC may attach such conditions to approval of a Watershed Protection I'errnit as are necessary to assure that the requirements <,l' Subsection D ale met. 3. Each Watershed I "rotection Permit aaproved by the DRC shall: iS. 'i- 1iE;`- -�lri�. - "cescreec „I• „l• :` "1(kEPr1as°°t J'�°— £r°= rrzc }rs'.r-sar �.. `:M -ii1 + a. identifv the name of each well subject to the Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Left, Indent: Left: 0.5 ", Space After: 10 pt, Line spacing: Multiple 1.15 li, No bullets or numbering, Pattern: Clear Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: a, b, c, ... + Start at: 1 + Alignment: Left + Aligned at: 0.75" + Indent at: 1" Formatted: Indent: Left: 0.5” Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: 1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 0.75 ", Tab stops: 0.5 ", Left + Not at 1" Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Indent: Left: 0 ", First line: 0 ", Tab stops: 0.5 ", Left + Not at 1" Formatted: Font: Bold -- - - - - -- -- Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: 1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 0.75 ", Tab stops: 0.5 ", Left + Not at 1" Formatted: Font: Bold Formatted: Indent: Left: 0 ", First line: 0 ", Tab stops: 0.5 ", Left + Not at 1" Formatted Formatted ---------------------------------------------------------- Formatted Formatted ----------------------------------------------------------------------------- Formatted: Font: Not Bold Formatted Formatted -k- bb Specify the date on which the Permit was issued; "[Formatted Formatted -------------------------- +i+- ". ncorporate by reference all applicable standards of approval; and gi Formatted ------------------------ Formatted i-k d. Incorporate by reference all applicable conditions of approval. Formatted Formatted SD. Watershed Protection n,., ,.:.,.file .a.. for- 1z7,.n.. 11,.,.. tpa OIR -WARa -FAIRO A4u Formatted ESA's. Permit Criteria Formatted Formatted The standards in this subsection are adopted pursuant to the authority granted by Texas -- Formatted: Indent: Lett: os" Local Government Code, Section 551.002 and Chapter 211 and are intended to minimize adverse impacts on areas within the Flood Fringe or ESA, reduce flood damage, and lessen the potential for contaminating surface water or any water supply. -- -- Formatted: Indent: Hanging: 0.25', Tab a. Tt,o „+ n 6 ,a n e ,hall apply to Trip:.,, .,a U,eEkletie1 s4e stops: 1 ", Left .-„to limits 444@ Git. „ P@Qt,,., 41;i , tl,o RTT „Ftl,o C';t, 4P@t4t,,.4 b---1. Location of Sites. Drilling and Production Sites shall be located outside ESAs— — Formatted: Indent: Lett: 0.5" whenever practicable to minimize adverse impacts on these areas, reduce flood damage, and lessen the potential for contaminating surface water or any water supply. 2. Riparian Buffers. For all -ESAs prior to the approval of a Gas Well Development — Formatted: Normal, Indent: Left: 0.5', Plan: Hanging: 0.25', No bullets or numbering, Tab stops: Not at 1" + 1.25' tea. If a riparian buffer is designated as "fair" to "excellent" ESA, the designated- - -- Formatted: Indent: Left: 0.75', Hanging: protective stream buffer width as specified in Subchapter 17 of the Denton 0.25', Tab stops: Not at 1.5 Development Code shall apply, and no encroachments shall be allowed. — __ — Formatted: Indent: Hanging: 0.25' fib. Within all areas except unstudied floodplains, if the stream is designated as ate-- Formatted: Indent: Left: 0.75', Hanging: "poor" ESA, the designated width of the protective stream buffer `shall be 0.25', Tab stops: Not at 1.5 decreased by either fifty (50) percent or to the limits of the floodway whichever is greater, but in no instance shall the protective stream buffer width be decreased below twenty -five (25) feet measured each direction from the centerline of the existing channel. — — Formatted: Indent: Left: 0.75' e3. Tree Mitigation. Tree mitigation for gas wells located in an ESA shall be required Formatted: Indent: Left: 0.5 ", Tab stops: and shall be calculated on a one to one replacement value for one hundred (100) 0.75', Left + Not at 1" percent of the dbh of trees removed from the Drilling and Production Site. Tree mitigation shall be accomplished by planting replacement trees, within a floodplain, on -site or off -site with similar tree species or by payment into a Tree Mitigation Fund. Tree Mitigation Funds that are specific to ESA's will be kept separate from other Tree Mitigation Funds and will only be used to either acquire wooded floodplain or riparian property that remains in a naturalistic state in perpetuity, or to purchase conservation easements within riparian or floodplain areas. Funds may be used to purchase, plant, and maintain trees on public property, as long as the public property is within a riparian area or floodplain. U r l tiet shall eeimini the fel' �Te�t�- appric -aa�� g l; ;.,.a t A T,-oo IQ @t4wr 121at �,L,�11 �,L,.... tl,o lReatiRp „F RQ A s oa 4-4. Tree Removal Any request to remove tree(s) shall be accompanied by a letter - - Formatted: Indent: Lett: 0.5, Tab stops: Not from a certified geologist or engineer that indicates why the well site cannot be at 1.25" located to avoid the trees. If Operator has chosen to pay into the Tree Mitigation Fund, such funds shall be paid prior to final approval of a Drilling and Production Site within an ESA. 5. Limitation on Well Heads. Only one (1) well head may be placed in the Flood Fringe or ESA under -- -- Formatted: Indent: Lett: 0.5, Tab stops: Not the following conditions: at 1" -- Formatted: Indent: Hanging: 0.25' tea. Storage tanks or separation facilities shall be constructed at least eighteen— - Formatted: Indent: Lett: 0.75 ", Tab stops; (18) inches above the established Base Flood elevation plus the surcharge depth Not at 1.25' for encroachment to the limits of the floodway having a one (1) percent chance of being equaled or exceeded in any year. 4b. A hydrologic and hydraulic engineering study shall be performed by a Registered Professional Engineer. The study shall be submitted to the Engineering Department in a technical report for review by the City Engineer or his designated representative. The report shall demonstrate that the proposed facilities will have no adverse impacts on the carrying capacity of the adjacent waterway nor cause any increases to the elevations established for the floodplain. When the Special Flood Hazard Areas (SFHA) on the subject site is designated as "Zone A" on the FIRM Panel, or the SFHA is not identified on the FIRM Panel, the following approximate method may be used to evaluate the impacts from gas well development. A flow rate shall be calculated using procedures set forth in the City of Denton Drainage Criteria Manual. Using Manning's Equation with an estimate of the average slope of the stream, measurements of a single irregular cross - section geometry at the well site, and the one hundred (100) year discharge rate, the average velocity and normal depth may be calculated. Calculations shall be provided for the unaltered existing channel cross- section and for the proposed modified channel cross - section and submitted to the City for review and approval prior to construction within these areas. c. No more than ten (10) percent of the floodplain, within the limits of the Gas Well Development Site Plan or Gas Well Development Plat, may be filled. -- — Formatted: Indent: Left: 0 ", Tab stops: Not at 0.75" rie shall lb t F �ha-11 b s 9j3C3r�2zxvzx9 9�hi�r�vcg- tH— iiimx2Eliac213�f�— i2-- 1ii9�0E�xv'r'rz22 .mar— v�E�li%g2� —&..i 6. Additional Standards inside City Limits. For land inside the City limits, all conditions imposed by any applicable SUP, MPC District or a PD District for the land subject to the Watershed Protection Permit, as well as the standards in Section 35.22.51, shall apply. I If evidence from water quality monitorin( efl «rts indicates that contamination is occnrrin(5 fron7 (5as wells, the ()aerator shall remove, cease to be removed, or inclndin(� bat not lin7ited to Waste Minimir.ation I�ractices established by the I�1�C. Cleanna operations shall bed in immediately. A re- inslsection fee shall be cllar ed as established by the City Council and published in the Application Criteria Manual. Well Devel<rpn7ent Site flan and may not be extended prior to expiration. Formatted: Indent: Left: 0 ", First line: 0" Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Tab stops: 0.75 ", Left Formatted: Tab stops: 0.75 ", Left + Not at 1" 35.22.6. Gas Well Development Site Plans A. Preliminary Gas Well Site Plan 1. Applicability An application for a Preliminary Gas Well Development Site Plan must accompany a request for a Gas Well Combining District. The application will not be deemed complete until a decision has been rendered on the Gas Well Combining District. A request for an amendment to an existing Gas Well Development Site Plan approved prior to the effective date of this amendatory ordinance (Ordinance No. ) shall also require submittal of an application for a Preliminary Gas Well Development Site Plan, and may require submittal of an application for a Consolidation Permit. If an application for a Consolidation Permit is required, the application for the Preliminary Gas Well Development Site Plan will not be deemed complete until a decision has been rendered on the Consolidation Permit. 2. Application Requirements a. A cover page that includes a vicinity map of the Drilling and Production Site; a Sheet Index that identifies the number of Exhibits with titles for each (exhibit titles shall begin with the word `Exhibit' and include the respective letter); the Project Title; the date of preparation; the preparer, operator, and property owner's names; space for the City project number; and a signature block for both the Gas Well Administrator and the City Secretary; b. A map showing transportation route and road for equipment, supplies, chemicals, or waste products used or produced by the gas operation. The map shall include a list of the length of all public roads that will be used for site ingress and egress and the water source proposed for both the drilling and fracturing stages, showing whether the water is to be hauled or piped to the site; c. A site plan of the Drilling and Production Site showing clear site boundary lines and the location of all on -site improvements and equipment, including: tanks, pipelines, compressors, separators, and other appurtenances in relation to the boundaries of the site; d. A legal description of the proposed Drilling and Production Site; and e. An Erosion and Sediment Control Plan. Exhibit must include contact information; a physical site description including: land uses, general vegetation and surface water in near proximity; topography /contour lines both pre- and post - construction; hydrologic analysis including: stormwater directional flow, outfalls, water well related structures and water sources; receiving waters; soils; project narrative with general timeline; well pad site plan including: fueling areas, waste disposal containers, hazardous materials storage, and product and condensate storage tanks ; soil stabilization and erosion control measures including: list of selected stormwater measures, site map of selected stormwater measures locations and final stabilization plans; solid waste management plan, septic /portolet location; and maintenance plan for stormwater controls including schedule and transfer of ownership provision. See Gas Well Erosion and Sediment Control Plan Guidance Document for details. f Upon the decision by the City Council or Gas Well Administrator, a copy of the approved Gas Well Combining District or Consolidation Permit, together with a copy of the approved Watershed Protection Permit, where applicable. 3. Procedures and Criteria a. Processing of application. An application for a Preliminary, Final or Amended Gas Well Development Site Plan shall be processed in accordance with the requirements of Section 35.16.19 of the DDC, and shall be decided by the Oil and Gas Inspector. b. Criteria. The Oil and Gas Inspector shall approve the application if it meets the following standards: i. The application is consistent with the Gas Well Combining District or Consolidation Permit and any conditions incorporated therein. ii. The application is consistent with any applicable SUP, MPC or PD site specific authorization, or Watershed Protection Permit and any conditions incorporated therein. iii. The application meets applicable requirements of section 35.22.8. iv. The size of the Drilling and Production Site is not more than five (5) acres in size, unless such requirement has been modified under the terms and conditions of a Gas Well Combining District. c. Conditions. The Oil and Gas Inspector may impose conditions that assure compliance with the terms of the prior approvals or standards of this Subchapter. 4. Effect. Upon receipt of an approved Preliminary Gas Well Development Site Plan, the operator may commence construction of a gas well drilling and production site. Following construction of the site, the operator is authorized to submit an application for a Final Gas Well Development Site Plan. B. Final Gas Well Site Plan 1. Applicability. A Final Gas Well Development Site Plan is required following construction of the Gas Well Drilling and Production Site and prior to issuance of any Gas Well Permit. 2. Application Requirements a. A mapping exhibit with an accurate legal description of the as -built Drilling and Production Site that was prepared and certified by a Registered Professional Land Surveyor of the State of Texas. Provide closure sheet of bearings and distances used in legal description. The exhibit shall include exact location, dimension, and description of all existing public, proposed, or private easements, and public right -of- way within the lease area, intersecting or contiguous with its boundary, or forming such boundary. Describe and locate all permanent survey monuments, pins, and control points and tie and reference the survey corners to the Texas State Plane Coordinate System North Central Zone 1983 -1999 datum. Provide proposed pipeline route —note that a separate application may be necessary if the proposed route encroaches onto any public easement, right -of -way or land owned by the City of Denton; b. A Landscape Plan. The project review planner will determine if a buffer is required based on the adjacent land use(s). If Planner determines buffer is required, then a landscape plan must be submitted in accordance with the City of Denton's Landscape Plan Checklist. Not every Drilling and Production Site requires a landscape plan; and c. A Tree Survey, for sites with trees. If trees are not present, provide an aerial image for verification. The date of the tree survey must be no greater than two years prior to the Gas Well Development Site Plan application date. d. A copy of the approved Preliminary Gas Well Development Site Plan. 3. Procedures and Criteria a. Processing of application. An application for a Final Gas Well Development Site Plan shall be processed in accordance with the requirements of Section-35.16.19 of the DDC, and shall be decided by the Oil and Gas Inspector. b. Criteria. The Oil and Gas Inspector shall approve the application if it meets the following standards: i. The application is consistent with the approved Preliminary Gas Well Development Site Plan. ii. The application meets applicable standards in Section 35.22.8. c. The Final Gas Well Development Site Plan shall incorporate all conditions required by prior approvals. 4. Effect. The approval of a Final Gas Well Development Site Plan authorizes the operator to apply for a Gas Well Permit and other permits required before commencement of drilling activities on the Drilling and Production Site. C. Amended Gas Well Site Plan If the operator proposes to do any of the following, amended Preliminary and Final Gas Well Development Site Plans shall be required. The applications shall be reviewed and decided in the same manner as the original application: I. Relocate the boundaries of the Drilling and Production Site. 2. Relocate proposed gas wells in relation to the boundaries of the approved Drilling and Production Site 3. Change the access road(s) or the location of the access road(s) 4. Change the location of built structures within the approved Drilling and Production Site. 35.22.6. Gas Well Development Site Plans Style Definition: List Paragraph: Font: (Default) Calibri, Space After: 0 pt, Add space between paragraphs of the same style, Line -A- A. Preliminary Gas Well Site flan spacing: single --------------------------------------------------------------------------------------------- Formatted: Left Indent: Left: 0" 1. licabili gi - PP----- 1, Formatted Formatted: Font: 11 pt, Font color: Auto, 4-.---A An application for a Preliminary Gas Well Development Site Plan Border:: (No border) Formatted: Left, Indent: Left: 0.5 ", Hanging: �=Y1 0.25", Space After: 10 pt, Pattern: Clear, Tab `h4 stops: Not at 0.5" 2m17.5t Formatted: Font: 11 pt, Font color: Auto, aecompany a rec nest for a Gas Well ' rr Border:: (No border) \_ 4!ertl3it-- CombinlnO District . the application 434 - `- - `- - -- ` kC- c�M-�t� Formatt ed: Font: 11 pt, Font color: Auto, 6;f� T11 r,r d1 s Border:: (No border) -- ----------------------------------------------------------- Formatted: Font color: Black z:---- ,hr°°• P�.�- `cc'�ci:�ii'r..u- �s� ' ` :H -it1 -= - -. 1 e- I- l>--- ��1- i�t- i�ltrl� _ e1 - ? +4 will not be 4e4efn ieJ -tc3 deemed complete until= a decision has been r , , ins (sas Well Development �1t Ilantap rAovedlprst for the at 1" Hanging: Left. 0.5" stops: Not amendment fo pan exlst n t e Gas e om inin� r he 0 3 Formatted: Indent: effective date of this amendatory ordinance (Ordinance No. )shall also require submittal of an application for a Preliminary (r`as Well Development Site Plan and ma recuire submittal of an application for a C onsolidation Permit. If an application for a 4e+4 °i -�--T' +Ae, * IeR+ii �C onsolidation Permit is re(Luired, the application for the Preliminary Gas Well Development Site flan will not be deemed complete until a decision has been eve-��a- lend ere d on the Consolidation Permit Formatted: Font: 11 pt, Font color: Auto, l ,,,1 „1 Border:: (No border) z---- �� - °<-2. A�ry�llc itia n Rc.�luire;mc.nts 3x1,.1 T11 S Formatted: Font: 11 pt, Border:: (No border) �: a Sheet Index that identifies the number of Exhibits with titles for each (exhibit titles Shall begin, with *42FE4gi n ands its _'r the respective letter);. the 4. �a� ���¢ ^� �` I�roject Iitle: the date of I etaration: the Darer. operator., and nronerty Formatted: Font: 11 pt, Border:: (No border) ------------------------------------------------------------------------------------------------------------- Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) Formatted: List Paragraph, Indent: Left: 0.75 ", Hanging: 0.25 ", Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers, Pattern: Clear -------------------------------------------------------------------------------------------------------------- Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) --------------------------------------------------------------------------------------------------------------- Formatted: Font: 11 pt, Border:: (No border) 113P�r 'T "f� owner's names slate for�the City r�a "3 Formatted: Font: 11 pt, Border:: (No border) :R- **- r''. , 4R-* ° , o --- -44 fi dam' a ' t troje ct number; and a -- Formatted: List Paragraph, Don't adjust space signature block for both the rl� ,1rr�Cats Well Admmtshttoitnd the between Latin and Asian text, Don't adjust t t'6 -- space between Asian text and numbers, C ity Secretary Pattern: Clear, Tab stops: Not at 1" hA b, T mif showm� tianstoitition route. and1� V `�F — — — Formatted: Font 11 pt Border (No border) Formatted. Font. 11 pt, Border.. (No border) £3�E9tY��x3tiee ' '¢vd32ir- -mil£' �c ! ��, s hl; ! - � . ] 1 � � �a�Eraoa for �Ftr —rrr— i Y Formatted: Font: 11 pt, Font color: Auto, uipment. su plres. chemicals or waste Products used of Produced by Border:: (No border) thus operation. The mal shall include a lrst� of the Formatted: Font: 11 pt, Border:: (No border) len *t� h of all �'epubltc ro atds that will be used for site, mire and 9 Formatted: Font: 11 pt, Border:: (No border) Formatted Font: 11 t Border No border dress and the water source pro for both the drrllin� and fracturmr" stages. p ( -- -- - -- -- - - -- -- -- showin whether the water is to be 4..SRT -eft u ed or Prped to the site: Formatted: Font: 11 pt, Border (No border) Formatted: Font: 11 pt, Border:: (No border) c. A site flan of the I7ri11ing and Production Site showing clear site boundary lines and the< Formatted: Font: 11 pt, Border:: (No border) location of all Boon site mpio�ements and cguipmcnt. including a"Y� - -- ?' -� -- - - - -- Formatted: Font: 11 pt, Border:: (No border) tanks l iPelines compressors. Formatted• Font: 11 pt Border: (No border) sep rr rtors. and oth r aurtenances m relation to -- -- -- — � � Formatted: List Paragraph, Don't adjust space €, i+*�thc boundaries of the, site between Latin and Asian text, Don't adjust �\\ ,. space between Asian text and numbers, Pattern: Clear intion of the fk:°-- i- r"rc°e`.s*ez�`r'rcr."ri'r• "! 11z �t �'r`irsc°r'c'�v-cr Production Site; and J "°,- se°c`..- scams?,- ic:'as- •. - -. xx.c, c c, .�cn -c Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: Font: 11 pt, Border:: (No border) Formatted: Indent: Left: 0.75 ", Hanging: 0.25 ", No bullets or numbering, Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers, Pattern: Clear, Tab stops: Not at 1.25" Formatted: Font: 11 pt, Border:: (No border) Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) 3=e. in Erosion rnd 5udrment C ontrol Pl rn. I xhrbrt must rnclude contact inform �rtion: a Formatted: Font: 11 pt, Font color: Auto 1ysical site description includrng: land uses general �ugutatton and surface water in near nrc>xmity: ta:> ray /contour lines both pre- and nc>st- cc>nstnictic>n: lyyclrc>Ic>ic analvsis includine: stormwater directional flow. outfalls. water well related structures and water sources:, receiving waters: soils, project narrative with general timeline: w l pad sit plan including: fueling areas, wart disposal containers. hazardous materials storage. and f roduct and condensate storage tanks ;soil stabilization and erosion control measures including: list of selected stormwater measures. site map of selected stormwater measures locations and final stabliraticxY plans; solid waste management elan. septic /lcxtc> let location; and maim Hance lan for stormwater controls including schedule and transfer of ownership lrc>viscxY. See Gas W 11 Erc>scnY and iediment C'c>ntrol Plan Guidance Document for details. i�f, ,.. -. +:r" c°°iii= i,�c.�- i- .- .x -c-cc • 4'tr., - 1 _,.scric°a,- ite1.! ,! - . ' 4.sc' °crr"rc • art , �t � i-�ik .. ��4'PiTCt f G'�YiE'Cd"tiY$ "'C' 4�ff' 9" G[ �'YCG''r'P�G'Y'SAV�YCYYZCf2'Y2' _ L41 s i�r� --are fat GUpe>n the decisexY l�v th+C'ty C'e>uncl en- Gas Well Lldministraten-. a ce>py e>f the approved Gas Well Combining District or Consolidation Permit. together with a copy of the approved Watershed Protection Permit where applicable. 3. Procedures and Criteria Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: List Paragraph, Indent: Left: 0.75 ", Hanging: 0.25 ", Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers, Pattern: Clear �i,. Processing ofMt1 Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) 4--a j)plication. An application for a Preliminary, Final or Amended Gas Well Development Site Plan shall be processed in accordance with the reduirements of Section 35.16.19+ffaffn- L- r-fcrteg- of the DDC , and shall be decided by the oil and Gas Insp ector. -------- - -- ----- ---- -- - ---- --- - - b. Criteria. The if it meets the -f-Formatted: Font: 1-1 pt,-Font color-: Auto ---------------- following standards i. The; arplicai on is consistent with the Caas Well C ombining District or C onsolidation Permit and any conditions �incor orated th�erein ----- ------- --- ---- - ---- --- - - - ----- ---- - - ------- - --------- Formatted: Font: 11 pt, Font color: Auto D -------------------------- --------------------------------- conditions incur orated therein. iii 'The application meets "REIcable regturenents of section 35.22.8. (5) acre -in [Formatted: Font 1-1 pt, ---Font --color: --Auto ----------------- I unless such requirement s Well Combining District. c. Conditions. The e with the terms ofLt�herior approvals �orstan�dards of�thisSubc�hater. 4. Effect. F7pon receipt <,l' an approved Irrelin7inal-y Csas Well Developn7ent `site Ilan, the o erator may commence et)nstrl7etlCJn ofa gas well dri Formatted. Font color: Auto Following an application for a Final Gas Well Development Site Plan. B. Final Gas Well Site Plan I _Applicability, A Final Cias W ll I7evelc>pment Site flan is required f>Ilc>wng ccxistructcxi c>f the Gas Well Drilling and Production Site and rrior to issuance of any Cans Well Permit. 2. _Application Requirements a. A magi r exhibit with in accut tte le al descriptuxi c>f th as built I7tilling ind Productrcxi -t-Formatted: ----- --- ---- - ---- --- - - - ----- ---- - - ------- - ---------- - - - - -- Font: -- 1 -- 1 pt, -- Font -- color: Auto, Site that Border: (No border) of -lexas. Provide closure sheet of bearings and distant s used in legal descrintic>n. 'I he exhibit shall include exact location, dimension. and description of all existing public, ase area. intersecting or contiguous with its boundary. or forming such boundary. Describe and locate all anent survey monuments. ties. and control points and tie and reference the survey corners to the Texas State Plane Ccxxdinate ystem North Central 7cxie 1983 -1999 datum. Provide necessary if the proposed route encroaches onto any—v2hlic easement. ----------- . r -i& j it-of-way- or land- owned- I.Ty- the -City of Dento_n. b. A Landscape Plan. The project review planner will determine if a buffer is required based on the ad P1111, —11-st w Demon's Landscape Plan Checklist. Not every be submitted in accordance with the Cjky A I Drilling and Production Site requires c. A 'I"ree Survey. f:x sites with trees. If trees are nc)t present. provide an aerial image fa:>r verification. The date of the tree survev must be no ereater than two vears prior to the Gas Well Development Site flan application date. d. A copy of the approved preliminary Gas Well Development Site plan. 3- procedures and Criteria shall be processed in accordance with the recauirernents of Section-35.16.19 of the DDC, and shall be decided by the Oil and Gas Inspector. iS. i-l3E;`- -�lri�. - "cescreec „I• „l• :` "1(kEPr1as°°t J'�-- £r°= rrzc }rs'.i-sar ).. `:M -ii1 Criteria. The Oil and Gas Inspector shall approve the application if it meets the f:)llc)win standards: i. I'he application is consistent with the anprc)ved preliminary Gas Well I7evelc)Hment Site Plan. ii. The application meets applicable standards in Section 35.22.8. c. The Final Gas Well Devel opment Site flan shall incoraorate all conditions recguired 1.7 nria:)r I 4. Effect. I'he apprc)val c)f a Final Gas Well I7evelc)pment Site flan authcnves the operatcx- to appl fy a:>r a Gas Well permit and c)ther Hermits required bef:xe ccxnmencement c)f drilling activities on the Drilling and production Site. C. Amended Gas Well Site plan If the o. erator proposes to do any of the following, amended preliminary and Final C)as Well I7evelc)Hment Site Flans shall be required. The applcaticnas shall be reviewed and decided in the same manner as the original application: 1. Relocate the boundaries of the Drilline and production Site. Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: List Paragraph, Indent: Left: 0.5 ", Hanging: 0.25 ", Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers, Pattern: Clear, Tab stops: Not at 1" Formatted: Space After: 10 pt, Pattern: Clear, Tab stops: Not at 0.75" 2. Rely cats f ra f a sed *as wells 1n relatia n to the ba undaries a f the o f ra ved Drilling and Production Site 3. Change. the 4W=� Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) 47 access road �or the -n�� of �L� +t-- e4y4 Change the ithin the Ref+,i+4 4--N-44 44aa- �4RG44F4,f�e� 4i-*f Reffn,4- Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: Normal, Left, Indent: Left: 0.25", Hanging: 0.25", No bullets or numbering, Pattern: Clear, Tab stops: Not at 1.25" Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) I ----------------- -------------------------------------- Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) -------------------------------------------------------------- Formatted: Font: 11 pt, Font color: Auto, Border: : (No border) ........................................................................... Formatted: Font: 11 pt, Font color: Auto Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) Formatted: List Paragraph, Indent: Left: 0.5", Hanging: 0.25", Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers, Pattern: Clear, Tab stops: Not at 1" Formatted: Left, Indent: Left: 0.25", Space After: 10 pt, Tab stops: Not at 1" -'—' - –I Formatted: Font: 11 pt, Font color: Auto, and Border:: (No border) Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) L-}fic.r- 'c`ra- rnc°rn -TC°ar Production . Site,. — Formatted: Font: 11 pt, Font color: Auto, Border:: (No border) I z°°°- rhrrrzi -.ti- „tr., ,! iA7 „tr., �•!-, u- e� :�`rii°s�crix"= rYlz$Y c `- `rrxei° }rac -c,� ii-?iri-iii- fmr"rc'° d^�`c4 Formatted: Font: 11 pt, Not Bold, Font color: Auto, Border:: (No border) Formatted: Left, Indent: Left: 0 ", Space After: 10 pt 35.22.7. - Gas Well Permits A. Applicability and Exceptions 1. Any person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall not engage in the drilling, re- drilling or production of gas wells within the corporate limits of the City without first obtaining a Gas Well Permit issued under this Subchapter. 2. A Gas Well Permit is issued in two stages. The first stage authorizes an Operator to commence Initial Drilling Activities. The second stage authorizes an Operator to commence Completion Operations and Production Activities. 3. A Gas Well Permit shall not be required for exploration for gas. Exploration of gas means geologic or geophysical activities, including, but not limited to surveying and seismic exploration not involving explosive charges, related to the search for oil, gas, or other sub - surface hydrocarbons. A seismic permit is required for impact -based exploration. 4. A Gas Well Permit shall not, however, constitute authority for the re- entering and drilling a well. Re -entry and drilling of a well shall require a new Gas Well Permit. All re- drills require a new and separate Gas Well Permit. B. Application Requirements Applications for Gas Well Permits shall include the following: 1. A completed form provided by the City that is signed by the applicant; 2. The application fee. 3. A copy of the Gas Well Combining District or Consolidation Permit, or a copy of the applicable SUP, PD or MPC District site specific approval. 4. A copy of the Final Gas Well Development Site Plan; and 5. The information required by the Application Criteria Manual, unless such information has been previously provided to the City. C. Procedures and Criteria. 1. Processing of application. All applications for Gas Well Permits shall be filed with the Department who shall immediately forward all applications to the DRC for review. Incomplete applications shall be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies if requested by the applicant. The City shall retain a processing fee determined by ordinance. The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the Operator. 2. Criteria. The Oil and Gas Inspector shall approve the application if it meets the following standards: a. The application is consistent with the approval Final Gas Well Development Site Plan and any conditions incorporated therein. b. The application meets applicable standards of Section 35.22.8. c. The application is in conformance with the insurance and security requirements set forth in Subsection 35.22.9 and Subsection 35.22.10. 3. Conditions. The Oil and Gas Inspector may not release the approved Gas Well Permit until after the Operator has provided: a. The security required by Subsection 35.22.10; b. Upon the Operator paying the required Road Damage Remediation Fee that will obligate the operator to repair damage excluding ordinary wear and tear, if any, to public streets, including but not limited to, bridges caused by the operator or by the Operator's employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the approved Gas Well Permit; and 4. Contents of Permit. Each Gas Well Permit issued by the Oil and Gas Inspector shall: a. Indicate whether Initial Drilling Activities or Completion Operations and Production Activities are authorized; b. Identify the name of each well and its Operator; c. Specify the date on which the Oil and Gas Inspector issued each Permit; d. Specify the date by which drilling shall commence, otherwise the Permit expires (such date shall not be less than 6 months after the date of issuance). e. Specify that if drilling is commenced before the Permit expires, the Permit shall continue until the well covered by the Permit is abandoned and the site restored; £ Incorporate, by reference, the insurance and security requirements set forth in Subsection 35.22.8 and Subsection 35.22.9; g. Incorporate, by reference, the requirement for periodic reports set forth in Subsection 35.22.11 and for Notice of Activities set forth in Subsection 35.22.13; K h. Incorporate the full text of the release of liability provisions set forth in Subsection 35.22.8.A.1; i. Incorporate, by reference, the conditions of the applicable Gas Well Combining District or Consolidation Permit, or if applicable, the terms of the SUP, MPC or PD District site specific authorization or Watershed Protection Permit to which the Gas Well Permit is subject. j. Incorporate, by reference, the information contained in the Permit application; k. Incorporate, by reference, the applicable rules and regulations of the RRC, including the applicable "field rules "; 1. Specify that no drilling operations (including the construction of internal private access roads) shall commence until the operator has provided the security required by Subsection 35.22.9; m. Contain the name, address, and phone number of the person designated to receive notices from the City, which person shall be a resident of Texas that can be served in person or by registered or certified mail; n. Incorporate by reference all permits and fees required by the Fire Code; o. Incorporate the well's RRC permit number and the American Petroleum Institute (API) number; p. Incorporate, by reference all other applicable provisions set forth in the DDC; and q. Contain a notarized statement signed by the Operator, or designee, that the information is, to the best knowledge and belief of the Operator or designee, is true and correct. r. Contain a statement that the Operator is required to comply with all applicable federal and state laws and regulations, which the City will verify compliance as part of its periodic inspections. s. Contain a statement that the Operator acknowledges and voluntarily consents to be inspected by the City to ensure compliance with this Subchapter, the DDC, the City Code, and applicable state and federal laws. 5. Denial of Permit a. The decision of the Oil and Gas Inspector to deny an application for a Gas Well Permit shall be provided to the operator in writing within ten (10) days after the decision, including an explanation of the basis for the decision. 3 b. If an application for a Gas Well Permit is denied by the Oil and Gas Inspector, nothing herein contained shall prevent a new Permit application from being submitted to the City for the same well. D. Expiration of Gas Well Permit. 1. A Gas Well Permit is valid for six (6) months and shall automatically expire, unless the particular stage of authorized gas well drilling and production activity has commenced prior to expiration. 2. If a Gas Well Permit has been issued by the City but the particular stage of authorized gas well drilling and production activity has not commenced prior to the expiration of the permit, the permit shall not be extended unless a special exception has been approved by the Board of Adjustment pursuant to 35.22.16; however, the Operator may reapply for a new permit. 3. If Completion Operations and Production Activities have commenced prior to the expiration of the Gas Well Permit issued by the City for that particular activity, the permit shall continue, and Operator shall be subject to an Annual Inspection and Administration Fee. 4. If gas well drilling and production activities have commenced for either stage of gas well and production activities following issuance of a Gas Well Permit by the City before the expiration date, the approved Drilling and Production Site and all activities shall be subject to inspections by the City to ensure compliance with terms and conditions of the Gas Well Permit and all applicable standards of the DDC. E. Transfer of Gas Well Permit. A Gas Well Permit may be transferred by the Operator with the written consent of the City if the transfer is in writing signed by both parties, if the transferee agrees to be bound by the terms and conditions of the transferred Permit, if all information previously provided to the City as part of the application for the transferred Permit is updated to reflect any changes, and if the transferee provides the insurance and security required by Section 35.22.9 and Section 35.22.10. The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the City and all other requirements provided in this subsection are satisfied. The transfer shall not relieve the transferor from any liability to the City arising out of any activities conducted prior to the transfer. M 35.22.7. - Gas Well €-. e>r°mits AA. Applicability and I xce tions � �.at 0 5" Not .� l contractor, or or servant for himself or person, shall not as an engage agent, the drib employee, independent- Formatted: Indent: Lett. 0.5 ", Tab stops: c)r production of gas wells within the corporate limits of the City without first obtaining a Gas Well Permit issued under this Subchapter. Formatted: Indent: Left: 0.5 ", Hanging: 4'2.A Gas Well Permit is issued in two stages. The first stage authorizes an Operator to* 10.25 " commence Initial Drilling Activities. The second stage authorizes an Operator to Formatted: Indent: Left: 0.5 ", Tab stops: Not commence Completion Operations and Production Activities. xxn eii ,, Oas xxL,.rr at 0.5" --- ---g, testifig, Stte preparatteR - ---= =- ---a Of figS Of ----- Jafft4efieS, flldggifig Mid ik r Formatted: Indent: Left: 0.5 ", Hanging: G3. A Gas Well Permit shall not be required for exploration for gas. Exploration of gas 0.25" means geologic or geophysical activities, including, but not limited to surveying and Formatted: Indent: Left: 0.5 ", Tab stops: Not " seismic exploration not involving explosive charges, related to the search for oil, gas, at 0.5 or other sub - surface hydrocarbons. A seismic permit is required for impact -based exploration. Formatted: Indent: Left: 0.5 ", Hanging: _ however, constitute authority for the re- entering and- 0.25 I4 drilling l well hallshrequire lnot, �a well. Re -entry and drilling of a -,, ; ' Formatted: Indent: Left: 0.5 ", Tab stops: Not a new Gas Well Permit. All re- drills require a new and [at o.5" separate Gas Well Permit. 4--13. Application Retiuirements Applications for Gas Well Permits shall b r��include the following: 1. �l�tlr�,r- ��a- Sao =-aYar A completed form provided by the City; l tll 13 that is signed by the it r— 4 licant; 4 k*e7 foe 44L-2. The application fee,. - - . Formatted Tab stops 0 75 Left - - -�,, ° ^ ^' 3.A L copy of the Gas Well Combining District or Consolidation Permit, or a .................. . copy of the applicable SUP, PD or MPC Districtor- ­sitc ­specific approval. Final Gas Well Development Site Plan; and 4. A c(My-Lfthc Fir indent: Left: 0.5" Hanging'. No bullets or numbering 0.25",­ ............. ------ ------------------------------------------------------- 6--Sh4k++e4ff4e44+45. The information required by the Application Criteria Formatted: Indent: Left: 0.5", Hanging: - Manual, unless s uch information has been previously provided to the City. 0.215" C. Procedures and Criteria. 1. Processing of a d with the Department who shall unniedrately forward all applications to the QRC for review. Incomplete E lications shall be returned to RLI the applicant, which case casethe City shall provide a written explanation <,1' the dc,liciencies if requested by the {�nplicant. "1'he City shall retain a processin(� fee determined by ordinance. "1'he City re the Railroad Commissian re�ardin� the determination of the aOperator. 2. Criteria. The Oil and Gas Inspector shall approve the application if it meets the follow-im, standards: a. "1'he application is consistent with the approval Final Csas Well Development Site Plan and any conditions incorporated therein. b. Tl application meets applicable standards oP Section 35.22.5. c. The application is in conformance with the insurance and security requirements set forth in Subsection 35.22.9 and Subsection 35.22. 10. 3. Conditions. The Oil I Permit until after the operator has provided: a "1'he security re(�tiiredb�,Stibsec�tioii 35.22.10, b. Upon Re+AFee that will oblio ate the operator to repair damage excluding ordinary wear and tear, if anu , to public streets including but pat limited to bridges caused by subcontractors or representatives in the peri <rrmance <,1' any activity authorize d by or contemplated by the, approved. Csas Well Permit; and. 4. Contents of Permit. Each Gas Well Permit issued by the ()il and Csas Inspector shall: a. Indicate whether Initial Drilling Activities or Completion Operations and Production Activities are authorized, b. Identify the name of each well and its Qnerator c�. Slsecily the date on which the C)il and. Csas Inslsector issued each Permit; de. Specily the date by which drillin(� shall commence, otherwise the Permit expires (such date shall not. be less than C months niter the date <,I' issuance). e4 �Secif Specify if �drilhn is commenced before the Permit expires, the Permit shall continue until the well covered by the Permit is abandoned and the site restored- fe-. I requirements set forth in Subsection 35.22.8 and Subsection. 35.22.9y F.,.,td. N. underline, Font .I., Auto €g. Incor orate, b�refer�cnce t�here( requirement for periodic reports set —forth in Subsection 35.22.11 and for Notice of Activities set forth in Subsection 35.22.1-23 h.Inc<rrperrate the firll text <,f the release <,f liability )visions set forth in Subsection 35.22 _8 A 1 ih. I Well Combinimy District or Consolidation PD District site h the Gas Well Permit is subject. Inc<rmcrrate, Iry reference, the ini <armation contained in the Permit application; +k. Inc<rrperrate, by reference, the applicable rules and lations of the _RRC i!2L�Iudmu the �ahc�ablc �fi�cldrules�� kl. Specify that no drilling operations (including the construction cif internal linli—te access roads security required Iry Subsection 35.22.91 Im. Contain the name, address, and phone nun7ber <,f'the person desi(rnated to receive notices from the served iLi.Iserson <rr by r gvstered or certified nyul ffill. Incrrrperrate by reference all permits and fees required by the Fire C ode; 1+0.1 troleurn Institute (API number 2E Incor orate Iry reference all other applicable pr<rvisions set f <rrth in the DDC and q Contain a notarized statement signed by the Operator, or desr�nc e, at the i is true and correct. r Contain a statement that the Operator is required to comply with all Mlicable federal and state as part. <,P its periodic inspections. s. Contain a statement that the Operator acknowledges and voluntarily consents to be inspected by the City to ensure compliance with this Subchapter, the DDC, the City Code, and applicable state and federal laws. 5. Denial of Permit a. The decision of the Oil and Gas Inspector to den y in application for a Gas, Well ------------------ - -------- Permit decision, including an ex lanation <,I'the basis I <rr the decision. b. II' an application I <rr a Csas Well Permit is denied Iry the ()il and Csas Inspector, Li.(2tInn& herein contained shall prevent a new I'errnit application from being submitted to the City for the �well. D.D. --IIX �lratlon ration of Permit I. A Gas Well Permit is s the particular stai2e of authorized Lyas well drillinLy and production activity has-,,e commenced prior to expiration. 2. If a Gas Well Permit has been issued-by-the- City but the particular stage of authorized was well drilling and production activit�hase not commenced prior to the [ration of the permit, the permit shall not be extended unless a special exception has been approved by the E4oard of Adrustment pursuant to 35.22.16; however, the Operator may reapply t<rr a new permit. 3. If Completion Operations and Production Activities have commenced prior to the expiration <,Pthe Csas Well Permit issued by the City for that particular activity the permit shall continue, and Operator shall be subject to an Annual Inspection and Administration IFee 4- If gas well drilling and production have comnenccd for either stage of a well and production activities followino iSSMInce of Gas Well Permij �bthe Citbel®rethe expiration date, the approved Drilling and Production Site and all activities shall be subject to inspections by the City to ensure compliance with terms and conditions of the Gas Well Permit and all applicable standards of the DDC. E. Transfer of Gas Well Permit. Gas Well nsent of the City if the transfer is in writi the terms and conditions of the transferred Permit if all information previously provided to the for the transferred Pernut is updated to reflect any chan(5es, and if the transferee pr�avides the insurance and security required by `iection 35.22.9 and Section 35.22. 10. The insurance and securrtyjjEjyjded by the transferor shall be released r recluiren7ents pr<avided in this subsection are satisfied. "1'he transfer shall not relieve the transfer<rr from any liability to the C ity arisin( out <af any activities conducted pri<rr to the transfer. Formatted: Indent: Left: 0.25', Hanging: 0.25" -------------------------------------------------------------------------------------------------------------------- Formatted: Font: Not Bold, Font color: Black 35.22.8. - Standards for Gas Well Drilling and Production. The drilling and production of gas wells within the City limits shall be subject to the following standards. A. Separation standards. 1. Well Setbacks a. No new gas well may be located on an approved Drilling and Production Site that is within twelve hundred (1,200) feet of any Protected Use, or freshwater well currently in use at the time a complete application for a Gas Well Permit is filed, or within twelve hundred (1,200) feet of any lot within a previously platted residential subdivision where one (1) or more lots have one (1) or more habitable structures, unless the gas well drilling and production site has been approved under a Gas Well Combining District pursuant to Section 35.7.16, or has met the criteria for a Consolidation Permit under section 35.22.4. b. Except where more stringent separation distances are specified, the minimum separation distance between a Drilling and Production Site subject to this subsection and all other habitable structures other than those listed in 35.22.8.A.l.a, shall be five hundred (500) feet. In the case where the habitable structure is an industrial use, the minimum separation distance may be reduced to not less than two hundred fifty (250) feet if the owner of the industrial use consents to the reduction in a notarized written waiver. c. The minimum separation requirement established in 35.22.8.A.2.a above may be reduced via the granting of a variance by the Zoning Board of Adjustment. Except that the Zoning Board of Adjustment shall not reduce the minimum separation distance to any less than five hundred (500) feet. d. Separation distances shall be measured from the boundary of the Drilling and Production Site identified on the Gas Well Development Site Plan, in a straight line, without regard to intervening structures or objects, to the closest exterior point of any structure occupied by a Protected Use, or freshwater well currently in use at the time a complete application for a Preliminary Gas Well Development Site Plan is filed, or the closest lot line of any undeveloped Protected Use lot within a proposed subdivision plat. e. The separation standards of this section apply to a site containing a compressor station. 2. Reverse Setbacks a. A reverse setback is the distance that a proposed use or structure other than uses or structures associated with gas well development must be separated from an approved Drilling and Production Site. A reverse setback is measured by the rules in Section 35.22.8.A.l.d. b. A Protected Use may not be located within six hundred (600) feet of a consolidated site established by a Gas Well Combining District or by approval of a Consolidation Permit pursuant to Section 35.22.4. A Protected Use may not be located within three hundred (300) feet of all other Drilling and Production Sites, provided that the Protected Use is not served by a freshwater well that is located within twelve hundred (1,200) feet of the Drilling and Production Site. d. All other habitable structures may be located within the distance prescribed by the Fire Code from the Drilling and Production Site. B. Prohibited or Restricted Locations, Uses and Activities No gas well drilling and production sites are allowed in the FEMA designated one hundred (100) year floodway. A Drilling and Production Site is not allowed within one thousand two hundred (1,200) feet of the flood pool elevation of Lake Ray Roberts or Lake Lewisville except upon approval of a Specific Use Permit. 2. No gas well drilling and production sites shall be allowed on slopes greater than ten (10) percent. Location of a gas well drilling and production site in a FEMA- designated flood fringe area or in another ESA designated on the map adopted by the City requires approval of a watershed permit subject to the requirements of section 35.22.6. No storage tanks or separation facilities shall be placed in the flood fringe or other ESA except in accordance with Subsection 35.22.6.D.5.a. 4. No gas well drilling and production site shall be located within any of the streets or alleys of the City or streets or alleys shown by the current Denton Plan. No street shall be blocked or encumbered or closed due to any exploration, drilling, or production activities unless prior consent is obtained from the City Manager, and then only temporarily. Nothing in this Section is intended to prevent an operator from drilling directionally to reach a target or bottom hole that is located beneath a prohibited or restricted site. Gas wells may have a target location or bottom -hole location that is under the floodway, an ESA or within one thousand two hundred (1,200) feet of the flood pool elevation of lake Ray Roberts or Lake Lewisville when the gas well is drilled directionally from a location outside such areas. 6. No refining process, or any process for the extraction of products from gas, shall be carried on at a Drilling and Production Site, except that a dehydrator and separator may be maintained on a Drilling and Production Site for the separation of liquids from gas. Any such dehydrator or separator may serve more than one well. Gas Processing Facilities shall require a Specific Use Permit. 7. No person shall place, deposit, or discharge (or cause or allow to be placed, deposited, or discharged) any oil, naphtha, petroleum, diesel, gasoline, asphalt, tar, hydrocarbon substance, or any refuse, including wastewater or brine, from any gas operation or the contents of any container used in connection with any gas operation in, into, or upon any public right -of -way, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private property within the corporate limits of the City of Denton. 8. No Operator shall excavate or construct any lines for the conveyance of fuel, water, or minerals on, under, or through the streets or alleys or other land of the City without an easement or right -of -way license from the City, at a price to be agreed upon, and then only in strict compliance with this Subchapter, with other ordinances of the City, and with the specifications established by the Engineering Department. 9. The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any public street or leaving upon any public street any earth or other materials is prohibited. Construction activities or deposition of any materials or objects creating an obstruction within limits of public right -of -way or easements are prohibited unless the Operator has first obtained written approval from the Engineering Department and, if applicable, has filed a right -of -way use agreement, and then only if in compliance with specifications established by the Department. 10. No pit shall be used or maintained for storage of oil or oil products or oil field fluids, or for storage or disposal of oil and gas wastes. 11. No Class II injection wells shall be located within the City of Denton. C. Site Layout and Design Requirements. The following requirements apply only within City limits. 1. Entrance Gate and Lighting. An entrance gate shall be required. Street lighting shall be required pursuant to Section 26 -76 of the Utility Code of the Code of the City of Denton, Texas or the sign identifying the entrance to the drill site or operation site shall be reflective. Directional lighting shall be provided for the safety of gas well drilling, completion and production operations and shall be installed and operated in a fashion designed to disturb adjacent developments in the least possible manner. 2. Fencing and Landscaping. Fencing, buffering, landscaping and screening shall be required on Drilling and Production Sites. All required fencing, landscaping, 3 buffering and screening must be installed in accordance with the approved Landscape Plan within one - hundred and eighty (180) days after initial drilling of the first approved well. Landscaping and screening shall also be required for sites for Compressor Stations. Landscaping and screening shall comply with the same requirements for Drilling and Production Sites as set forth in this Subchapter and in the DDC. Should the Operator decide to fence in gathering and transmission lines or compressor stations, or both, Operator shall install the fencing in accordance with Subchapter 13 of the DDC. 3. Signage. a. A sign shall be immediately and prominently displayed at the gate of the temporary and permanent Drilling and Production Site. Such sign shall be made of durable material and shall be maintained in good condition. The sign shall have a surface area of not less than 2 �/2 by 2 1/2 feet or more than 4 by 4 feet and shall be lettered in minimum -inch lettering and shall include the following information: i. A statement identifying that there is /are gas well(s) at the Drilling and Production Site, together with the Well Identification Number(s), American Petroleum Institute well number(s) and any other well designation(s) required by the RRC; ii. Name of Operator; iii. Operator's telephone number; iv. Operator's business mailing address; v. Address of Drilling and Production Site; vi. The number for emergency services (911); vii. Telephone numbers of two persons responsible for the well who may be contacted 24 hours a day in case of an emergency; and viii.A statement that reads as follows: "This site may be the subject of further drilling and production and /or hydraulic fracturing." Further, if the Drilling and Production Site has been approved as a Consolidated Site, then there shall be an additional statement that identifies the maximum number of authorized gas wells. ix. The telephone number of the City's Gas Well Division for citizens to call with questions, concerns or complaints. M b. Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED ", in both English and Spanish, shall be posted at the entrance of each Drilling and Production Site or in any other location approved or designated by the Fire Marshal. Sign lettering shall be four inches in height and shall be red on white background or white on red background. Each sign shall include the emergency notification numbers of the City Fire Department and the Operator, well and lease designations required by the RRC. 4. Painting. All installed, mounted, and /or permanent equipment on Drilling and Production Sites shall be coated, painted, and maintained at all times, including the wellhead, gas processing units, pumping units, storage tanks, above - ground pipeline appurtenances, buildings, and structures, in accordance with applicable guidelines adopted by The Society for Protective Coatings (SSPC). In addition, the following standards are applicable: a. Protective coatings and paints shall comply with any applicable State or City requirements. In absence of any such requirement, protective coatings and paints shall be of a neutral color that is compatible with the surrounding environment. b. All exposed surfaces of the identified equipment must be coated and painted, and free from rust, blisters, stains, or other defects. 5. Electric Lines. All electric lines to production facilities shall be located in a manner compatible to those already installed in the surrounding areas or subdivision. 6. Screening. All Drilling and Production Sites shall be screened with an opaque decorative masonry fence that shall be no less than eight (8) feet in height. a. In lieu of this requirement, an alternative fence that is compatible with the area surrounding the Drilling and /or Production Site may be approved by the Director of Planning and Development. b. Required fencing must be located within three hundred (300) feet of all equipment necessitating fencing requirements under this Subchapter. 7. Lift Compressor Location. Any lift compressor which is installed within an approved Drilling and Production Site shall be located at least twenty -four (24) feet from the outer boundary of the site. 8. Storage Tanks and Separators. a. An Operator is allowed to construct, use, and operate such storage equipment and separation equipment as shown on the approved Gas Well Development Site Plan, except that permanent storage equipment and separation equipment may not exceed eight (8) feet in height. 5 b. The use of centralized tank batteries is permitted as shown on the applicable Gas Well Development Site Plan. 9. Trash Locations. Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least 150 feet from the vicinity of any well, tank, or pump station. D. Site Development Standards 1. Hydraulic Fracturing. Commencing on the January 15, 2013, except as provided in sub - paragraph (v) of this section, for each well completion operation with hydraulic fracturing: a. For the duration of flowback, recovered liquids shall be routed into one or more storage vessels or re- injected into the Well or another Well, and the recovered gas shall be routed into a gas flow line or collection system, re- injected into the Well or another Well, used as an on -site fuel source, or used for another useful purpose that a purchased fuel or raw material would serve, with no direct release to the atmosphere. If this is infeasible, the requirements in sub - paragraph (c) of this paragraph shall be followed. b. All salable quality gas shall be routed to the gas flow line as soon as practicable. In cases where flowback emissions cannot be directed to the flow line, the requirements in sub - paragraph (c) of this section shall be followed. c. Flowback emissions shall be captured and directed to a completion combustion device, except in conditions that may result in a fire hazard or explosion, or where high heat emissions from a completion combustion device may negatively impact waterways. Completion combustion devices must be equipped with a reliable continuous ignition source over the duration of flowback. d. Releases to the atmosphere during flowback and subsequent recovery shall be minimized. e. The requirements of sub - paragraphs (a) and (b) shall not apply to: i. Each well completion operation with hydraulic fracturing at a gas well meeting the criteria for wildcat or delineation well. ii. Each well completion operation with hydraulic fracturing at a gas well meeting the criteria for non - wildcat low pressure gas well or non - delineation low pressure gas well. C� 2. Soil Sampling. Soil sampling shall be required for all new Drilling and Production Sites. Soil sampling shall be subject to the following requirements: a. Upon application for an Oil and Gas Well Permit, soil sampling shall be conducted prior to the commencement of any drilling at the proposed Drilling and Production Site to establish a baseline study of site conditions. A minimum of one soil sample shall be taken at the location of any proposed equipment to be utilized at the Drilling and Production Site to document existing conditions at the Drilling and Production Site. b. A licensed third party consultant shall be utilized to collect and analyze all pre- drilling and post- drilling soil analyses. The cost of such consultant shall be borne by the Operator. c. Soil samples must be collected and analyzed utilizing proper sampling and laboratory protocol from a United States Environmental Protection Agency or Texas Commission on Environmental Quality approved laboratory. The results of the analyses will be addressed to the City and a copy of the report shall be provided to the Operator and surface estate owner. The analyses will include the following analyses at a minimum: TPH, VOCs, SVOCs, Chloride, Barium, Chromium and Ethylene Glycol. d. Post - drilling soil samples shall be collected and analyzed after the conclusion of drilling of each well. Subsequent to the drilling of each well, periodic soil samples shall be taken as determined by the Oil and Gas Inspector during inspection events to document soil quality data at the Drilling and Production Site. Samples shall include, but not be limited to, areas where removed equipment was located. Results of the analyses shall be provided as described in Subsection D.2.c. e. Whenever abandonment occurs pursuant to the requirements of the RRC and as referenced in 35.22.5.F.9, the Operator so abandoning shall conduct post production soil sampling within three (3) days after equipment has been removed from the Drilling and Production Site to document that the final conditions are within regulatory requirements. Results of the analyses shall be provided as described in Subsection A.2.c. £ If any soil sample results reveal contamination levels that exceed the minimum state or federal regulatory levels, the City shall submit the soil sample results to the appropriate state or federal regulatory agency for enforcement. 3. Pits. All pits shall be lined and shall be designed, constructed, and installed in accordance with the liner standards set forth by the RRC. Any new Drilling and Production Sites proposed after January 15, 2013 shall utilize a closed -loop mud 7 system. The following additional standards shall apply to pits within a Drilling and Production Site. a. The type of pit used in drilling operations shall be specified at the time of permitting. The Oil and Gas Inspector may perform a contamination assessment for any reserve pit, completion/work -over pit, drilling fluid disposal pit, fresh makeup water pit, mud circulation pit, washout pit, or water condensate pit. The following concentrations for contaminants will be used to determine if contamination exists within any materials in the pits: Compound Concentration limit TPH 15 mg /L BTEX 500 µg /L Benzene 50 µg /L From 30TAC 321.131.138 If concentrations exceeding these values are detected, the operator shall remove, cause to be removed, or otherwise remediate contaminants, to below the limits provided herein. Cleanup operations shall begin immediately. Cleanup activities that do not begin within twenty -four (24) hours of notification by the oil and gas inspector shall be considered a violation of this Subchapter. b. Only freshwater -based mud systems shall be permitted. Saltwater -based mud systems and oil -based mud systems are prohibited. c. Chloride content of fluids held in pits may not exceed three thousand (3,000) milligrams per liter. d. No metal additives may be added to any drilling fluids. e. All fluid produced from the well during completion of production shall be held in enclosed containers while stored on the property. f. All fluids shall be removed ( "de- watering ") from the pits within thirty (30) days of completion of drilling operations. g. The pit and its contents shall be removed from the premises within ninety (90) days after completion of the drilling of a well; provided, however, that the permittee may apply for a ninety (90) -day extension from such requirements based on showing of good cause, necessity to maintain said pit, inclement weather, or other factors. The City may designate a period of time shorter than the ninety (90) -day extension set out herein. h. All pits shall be backfilled in accordance with the following schedule. The Director of Planning and Development may grant permission for a pit to remain at the site if the surface property owner submits a written request. (i) Reserve pits and mud circulation pits shall be dewatered within 30 days and backfilled and compacted within ninety (90) days of cessation of drilling activities. (ii) All completion/workover pits used when completing a well shall be dewatered within thirty (30) days and backfilled and compacted within one hundred and twenty (120) days of well completion. (iii)All completion/workover pits used when working over a well shall be dewatered within thirty (30) days and backfilled and compacted within one hundred and twenty (120) days of completion of re -work operations. (iv)Basic sediment pits, flare pits, fresh mining water pits, and water condensate pits shall be dewatered, backfilled, and compacted within one hundred and twenty (120) days of final cessation of use of the pits. i. Each operator must submit to the City a water conservation plan for uses of water. The plan must provide information in response to each of the following elements. (i) A description of the use of the water in the production process, including how the water is diverted and transported from the source(s) of supply, how the water is utilized in the production process, and the estimated quantity of water consumed in the production process and therefore unavailable for reuse, discharge, or other means of disposal; (ii) If long -term, five (5) to ten (10) years, water storage is anticipated, quantified five -year and ten -year targets for water savings and the basis for the development of such goals; (iii) A description of the device(s) and /or method(s) within an accuracy of plus or minus 5.0% to be used in order to measure and account for the amount of water diverted from the source of supply; X, (iv) Leak - detection, repair, and accounting for water loss in the water distribution system; (v) Application of state -of -the -art equipment and /or process modifications to improve water use efficiency; and (vi) Any other water conservation practice, method, or technique which the user shows to be appropriate for achieving the stated goal or goals of the water conservation plan. 4. Erosion and Sediment Controls. Erosion and sediment control practices shall be conducted for all gas wells. The Operator shall comply with the Erosion and Sediment Control Plan as approved by the City. E. Operations and Equipment Standards. The following requirements apply only within City limits. 1. Nuisances. Adequate nuisance prevention measures shall be taken to prevent or control offensive odor, fumes, dust, noise and vibration. 2. Vapor Recovery Units. a. Vapor recovery equipment is required for facilities not included under Rule §106.352 of TAC Title 30, Part 1, Chapter 106, Subchapter O; or its successor regulation. b. An Operator shall notify the Oil and Gas Inspector within two (2) days after the first sale of gas from a well. 3. Compliance with Rules and Regulations. The Operator shall at all times comply with the applicable rules and regulations of the RRC including but not limited to all applicable Field Rules. 4. Debris. The Drilling and Production Site and site access road shall at all times be kept free of debris, pools of water or other liquids, contaminated soil, weeds, brush, trash or other waste material outside the Drilling and Production Site. 5. Venting and Flaring. There shall be no venting or flaring of gases in residential areas except as allowed by the RRC or TCEQ. If venting or flaring is allowed by the RRC or TCEQ, a permit must be obtained from the Fire Marshal in accordance with the Fire Code. Further, the venting or flaring activities shall not be located closer than twelve hundred (1,200) feet from any Protected Use, unless: (1) a setback variance has been granted pursuant to 35.22.5; or (2) if practical and if approved by the City Fire Marshal, ground flaring that is wholly enclosed or screened with a masonry wall. Except in the case of an emergency, gas well flaring shall only be conducted during day -time hours. 10 6. Vehicle Placement. Vehicles, equipment, and machinery shall not be placed or located on a Drilling and Production Site (or on any public street, alley, driveway, or other public right -of -way) in such a way as to constitute a fire hazard or to unreasonably obstruct or interfere with fighting or controlling fires. 7. Time of Fracturing. Fracturing operation shall be scheduled to occur during daylight hours unless the Operator has notified the Oil and Gas Inspector that fracing will occur before or after daylight hours to meet safety requirements. 8. Pneumatic Drilling Pneumatic drilling shall not be permitted. F. Safety Requirements. The provisions of this section shall apply within the corporate limits of the City of Denton. 1. The drilling and production of gas and accessing the Drilling and Production Site shall be in compliance with all state and federal environmental regulations. 2. Gathering Lines a. Each Operator shall place pipeline marker sign at each point where a flow line or gathering line crosses a public street or road. b. Each Operator shall place a warning sign for lines carrying H2S (Hydrogen Sulfide) gas as required by the Railroad Commission. c. All flow lines and gathering lines within the corporate limits of the City (excluding City utility lines and franchise distribution systems) that are used to transport oil, gas, and /or water shall be limited to the maximum allowable operating pressure applicable to the pipes installed and shall be installed with at least the minimum cover or backfill specified by the American National Safety Institute Code, as amended. 3. Operating Pressure. Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All wellheads shall contain an emergency shut off valve to the well distribution line. 4. Control Device. Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank. 5. Storage Tanks. a. All storage tanks shall be anchored for stability. 11 b. As required by the Fire Code, all storage tanks shall be equipped with either steel or concrete secondary containment systems including lining with an impervious material. The secondary containment system shall be of a sufficient height to contain one and one -half (11/2) times the contents of the largest tank in accordance with the Fire Code. Drip pots shall be provided at pump out connections to contain the liquids from the storage tank. 6. Outdoor Storage Areas. Outside storage areas shall be equipped with a secondary containment system designed to contain a spill from the largest individual vessel. If the area is open to rainfall, secondary containment shall be designed to include the volume of a twenty -four (24) -hour rainfall as determined by a twenty -five (25) -year storm and provisions shall be made to drain accumulations of ground water and rainfall. 7. Lighting System. Drilling and Production Sites shall be equipped with a lightning protection system, in accordance with the City's Fire Code and the National Fire Association's NFPA -780. In addition, tank battery facilities shall be equipped with a remote foam line and a lightning arrestor system. 8. Hazardous Materials Management Plan. A Hazardous Materials Management Plan shall be on file with the Fire Marshal. Any updates or changes to this plan shall be provided to the Fire Marshal within three (3) working days of the change. All chemicals and /or hazardous materials shall be stored in such a manner as to prevent, contain, and facilitate rapid remediation and cleanup of any accidental spill, leak, or discharge of a hazardous material. Operator shall have all material safety data sheets (MSDSs) for all hazardous materials on site. All applicable federal and state regulatory requirements for the proper labeling of containers shall be followed. Appropriate pollution prevention actions shall be required and include, but are not limited to, chemical and materials raised from the ground (e.g., wooden pallets), bulk storage, installation and maintenance of secondary containment systems, and protection from storm water and weather elements. 9. Plugged and Abandoned Wells. All wells shall be plugged and abandoned in accordance with the rules of the RRC; however, all well casings shall be cut and removed to a depth of at least ten (10) feet below the surface unless the surface owner submits a written agreement otherwise. Three (3) feet shall be the minimum depth. After the well has been plugged and abandoned, the Operator shall clean and repair all damage to public property caused by such operations within thirty (30) days. In addition, the Operator shall: a. Submit a copy of its RRC Form W -3A (Notice of Intention to Plug and Abandon) and Form W -3 (Plugging Record) to the Inspector within two (2) business days of filing with the RRC; b. Notify the Oil and Gas Inspector of the intention to plug and abandon a well at least twenty -four (24) hour prior to commencing activities; and 12 c. Submit to the Oil and Gas Inspector the surface hole locations in an acceptable Geographic Information System (GIS) format to accurately map and track well locations. The GIS data may be submitted with an initial Gas Well Permit application or with the annual administrative report. Submission of GIS location data is only required once. d. Submit a copy of a soil sampling analysis as required by Subsection 35.22.5.D.2 . 10. Reclamation Plan. Operators must close each Drilling and Production Site in a manner that minimizes the need for care after closure. To achieve this requirement, the site shall be reclaimed to the condition identified on the Site Reclamation Plan, as nearly as practicable. In the event development encroaches up to the property after drilling and production activities, a reasonable rehabilitation alternative may be approved by the City to ensure the reclaimed site is compatible with the surrounding properties. 11. Pits shall always be operated with a minimum of at least two (2) feet of freeboard above the contents within it. 12. Pit Fencing. For safety reasons, fencing shall be installed to restrict access to a reserve pit or other type of open pit utilized in gas well drilling operation at a drill site within the corporate limits of the City. 13. Catchment Basins. Drip pans, catchment basins and other secondary containment devices or oil absorbing materials shall be placed or installed underneath all tanks, containers, pumps, lubricating oil systems, engines, fuel and chemical storage tanks, system valves, connections, and any other areas or structures that could potential leak, discharge, or otherwise spill hazardous or solid materials. . 14. Clean -up After Completion. After the well has been completed the Operator shall clean and repair all damage to public property caused by such operations within thirty (30) days. 15. Clean -up Operations. After any spill, leak or discharge, the Operator shall remove or cause to be removed all contamination and associated waste materials. Clean -up operations shall begin immediately. 16. Water Conservation Plan. Each operator must submit to the City a water conservation plan for uses of water. The plan must provide information in response to each of the following elements. a. A description of the use of the water in the production process, including how the water is diverted and transported from the source(s) of supply, how the water is utilized in the production process, and the estimated quantity of water consumed 13 in the production process and therefore unavailable for reuse, discharge, or other means of disposal; b. If long -term, five (5) to ten (10) years, water storage is anticipated, quantified five -year and ten -year targets for water savings and the basis for the development of such goals; c. A description of the device(s) and /or method(s) within an accuracy of plus or minus 5.0% to be used in order to measure and account for the amount of water diverted from the source of supply; d. Leak - detection, repair, and accounting for water loss in the water distribution system; e. Application of state -of -the -art equipment and /or process modifications to improve water use efficiency; and f. Any other water conservation practice, method, or technique which the user shows to be appropriate for achieving the stated goal or goals of the water conservation plan. 14 35.22.53. - Standards for Gas Well Drilling and Production. ., —The drilling and production of gas wells within the City limits shall be subject to the- -� Formatted: Indent: Left: 0.25 ", First pine: 0 ", following standards. Tab stops: Not at 0.5" - Formatted Indent: Left 0 25 4A.Separatlon standards 4 ' - Formatted: Font: Not Bold _ � Formatted: Indent: Left: 0.25 ", Tab stops: 1. Well Setbacks Not at 0.75" a. No new has well may be located on an ap roved Drilling and Production Site +nay 4e - -k+e that is within twelve hundred (1,200) feet of any Protected Use, or freshwater well currently in use at the time a complete application for a Gas Well i I'kPermit is tiled, or within twelve hundred (1,200) feet of any lot within a previously platted residential subdivision where one (1) or more lots have one (1) or more habitable structures— unless the gas well drilling and production site has been approved under a iras Well Combining District pursuant to Section 35.7.16, or has met the criteria for a sConsolidation pPermit under section 35.22.4. b. Except where more stringent separation distances are specified, the minimum separation distance between a Drilling and Production Site subject to this subsection and all other habitable structures other than those listed in 35.22.5.A. La, shall be five hundred (500) feet. c. The minimum separation requirement established in 35.22.5.AA2.a above may be reduced via the granting of a variance by the Zoning Board of Adjustment. Except that the Zoning Board of Adjustment shall not reduce the minimum separation distance any less than five hundred (500) feet. In the case where the habitable structure is an industrial use_ the minimum separation distance may be reduced to not less than two hundred fifty (250) feet if the owner of the industrial use consents to the reduction in a notarized written waiver. ed. Separation distances shall be measured from the boundary of the Drilling and Production Site identified on the Gas Well Development Site Plan, in a straight line, without regard to intervening structures or objects, to the closest exterior point of any structure occupied by a Protected Use, or freshwater well currently in use at the time a complete application for a Preliminary Gas wWell JQevelopment sSite pPlan is filed, or the closest lot line of any undeveloped Protected Use lot within a propose— €e. The separation standards of this section apply to a site containing a compressor station. Formatted: Indent: Left: 0.75 ", Hanging: 2. Oft-Reverse Setbacks 0.25 ", Tab stops: 1 ", Left a. A reverse setback is the distance that a ro osed use or stnrcture other than uses or structures associated with (5as well devel<apn7ent must be separated fron7 an approved Drilling and pPr<aductioll_ smote, A reverse setback is measured by the rules in Section 35.22.5.A. I .d. b. A Protected Use may not be located within six hundred (600) feet of a consolidated site established by a isas Well Con�binin 5 District or bproval <,P a c-Consolidation pPennit pursuant to Section 35.22.4. c. A Protected Use may not be located within three hundred (300) feet of all other Drrllin� and Production Sites, provided that the Protected Use is not served by a_ freshwater well that is located within twelve hundred (1 200) feet of the dDrrlling and Production sSite. d. All other habitable stnrctores may be located within the distance prescribed by the Fire Cade from the dDrillinu and pProduction sSite. B. Prohibited or Restricted Locations Uses and Activities I No 5as well drilling and production sites are allowed in the I'FN1A designated one hundred (100wear flaodway A Drilling and Production Site is not allowed within one thousand two hundred (1,200) feet of the flood pool elevation of Lake Ray R<,berts or Lake Lewisville except a on approval <,P a Specific Use Permit. 2. No ,has well drilling and production sites shall be allowed on slo s greater than ten (10) percent. Formatted. Font: Not Bold ---------------------------------------------------------------- Formatted: Font: Not Bold 3. Location of a pas well drilling and production site in a I'FNIA- designated flood frin 5e area or in another I SA designated on the neap adopted by the City requires approval of a watershed permit suboject to the�reguirements of section 35.22.6. No [F Font: Not Bold st fnnue or other FSA except in accordance with Subsection 35.22.6.D.5.a. 4 Na was well drilling and production site shall be located within any of the streets or alleys oP the City or streets or alleys shown by the current Denton Plan. No street shall be blocked or encumbered or closed due to anv exploration, drillin((, or_production activities unless prior consent. is obtained fron7. the Cit 1Vlana�5cr, and then only temporarily. 5. Nothint in this Section is intended to prevent an operator from drillin( directionally to reach a target or bottom hole that is located beneath a prohibited or restricted site Gas wells may have a target k�catian or bottom -hole krcatian that is under the floodway an ESA or within one thousand two hundred (1,200 feet of the flood pool elevation of lake lay Roberts or bake Lewisville when the (5as well is drilled directionally from. a location outside stroll areas. 6. No refinin3 process, or anNprocess for the extraction of products from gas. shall be carried on at a DrillinG and Production Site, except that a dehydrator and separator may be maintained on a Drilling and Production Site for the separation Of liquids from asAny such dehydrator or separator may serve more than one well. Gas ProcessinG Facilities shall require a Specific Use Permit. 7. No person shall place deposit, or discharge {or cause or allow to be placed, posited, or discllar) any oil, naphtha, petroleum, diesel, gasoline, as 1Lr 1rlt� tar, h ydrocarbon substance, or any refuse, including wastewater or brine from arty &! operation or the contents of any container used in connection with any (Yas operation in, int<a, or upon any public right -of=way, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private propc,rfy within the corporate limits <rf the City <rPI)enton. 8. No Operator shall excavate or constnrct any lines f <rr the conveyance <af fuel, water, or minerals on under, or through the streets or alleys or other land of the City without an easement or ri(5ht -of =way license from the City, at a price to be creed upon, and then only in strict compliance with this Subcllaptc,r, with other ordinances of the Citv. and with the specifications established by the En(5ineerin(5 Iartment. 3, I he di€€ ur7. breal�in€ excav mint , tunnelin ;t, undermrmnt , breakin€ ur7. car Formatted: Font: +Body, 11 pt, Font color: 1 darnavrn s of an pUblic street or leaven pop anKpUbhc Street any earth or other Auto, Border:: (No border) J materials is prohibited. Construction activities or deposition of any materials or objects creating an obstruction within limits of public right -of -way or easements are prohibited unless the Operator bas first obtained written approval from the En sineering Department and if ap rlicable, has filed a r. uht- of-way use agreement, and then only if in compliance with specifications established by the Department. 10. Formatted: Indent: Lett: o.s ", Hanging: 0.5^ flurds or for storage or disposal of oil and was wastes 11. No Class II infection wells shall be located within the City of Denton. [Formatted: Indent: Left: 0.5 ", Hanging: 0.5 ", .C. Site Layout and Desion I2eguit ements. The following requirements apply only within Tab stops: 1 ", Left J City limits. Formatted: Indent: Hanging: 0.5 ", Tab stops: 1 Not at 0.75' J a- 1 Entrance irate and Lighting An entrance gate shall be required. Street lighting- - � Formatted: Indent: Left: 0.5, Tab stops: Not shall be required pursuant to Section 26 -76 of the Utility Code of the Code of the City at I" of Denton, Texas or the sign identifying the entrance to the drill site or operation site shall be reflective. Directional lighting shall be provided for the safety of gas well drilling, com letion and production operations and shall be installed and operated in a 1 {rshion designed to distarb adjacent devel<rpments in the least possible manner. a Formatted: Indent: Hanging: 0.25' 43---2. Fencing and Landscapiny_ Fencing, buffering, landscaping and screening shall be- Formatted: Indent: Lett: 0.5', Tab stops: Not required on Drilling and Production Sites. All required fencing, landscaping, at I" buffering and screening must be installed in accordance with the approved Landscape Plan within one - hundred and eighty (180) days after initial drilling of the first approved well. Landscaping and screening shall also be required for sites for Compressor Stations. Landscaping and screening shall comply with the same requirements for Drilling and Production Sites as set forth in this Subchapter and in the DDC. Should the Operator decide to fence in gathering and transmission lines or compressor stations, or both, Operator shall install the fencing in accordance with Subchapter 13 of the DDC. - Formatted Indent Hanging 0 25 IN dA sien shall be immediately and prominently displayed at the gate of the tem orary and permanent Drilling and Production Site. Such sign shall be made of durable material and shall be maintained in good condition The sign shall have a surface area of not less than scivare feet or mare than scluare feet and shall be lettered in minimum -inch lettering and shall include the lcrllcrwin� infarmatian i. A statement identifying that there is /are gas well(s) at the Drilling and Production Site, together with the Well Identification Number (l, American Petroleum Institute well numbers) and any ether well desionatian(s) required by the ITC; ii. Name of Operator; iii. Operator's telephone number; iv. Operator's business mailing address; v Address of Drilling and Production Site- vi. 'The number Lor iner-enc �servic�esl) I 11; vii. Telephone numbers of two persons responsible �for t�hewell who may contacted 24 hours -a- day -in- case -of an emergency- and ,—_— viii.A statement that reads as follows: "This site may be tl7e subject <,P firrther drilling and production and /or hydraulic fracturing." Further, if the Drilling and Production Site has been approved as a Consolidated Site, then there shall be an additional statement that identifies the maximum number of authorized gas wells. ix. The telephone number of the City's Gas Well Division for citizens to call with questions, concerns or complaints. ------------------------------------------------------------------------------------------------- For List Paragraph, Tab stops: Not at e 1 shall be fear inches in height and shall be red on white background or white on red background notification numbers of the City the Operator, well and lease desrgrratrons reduired by the PI C. - - - Formatted: Indent: Left: 0.5", Hanging: l €----4. Nintino. All installed, mounted, and/or permanent equipment on Drilling and- Production Sites shall be coated, painted, and maintained at all times, including the Formatted: Indent: Left: 0.5", Tab stops: Not wellhead, gas processing units, pumping units, storage tanks, above-ground pipeline at 1" appurtenances, buildings, and structures, in accordance with applicable guidelines adopted by The Society for Protective Coatings (SSPC). In addition, the following standards are applicable: 4 - t d: Indent: Left: 0.5", Hanging: ia. Protective coatings and paints shall comply with any applicable State or City.- oF7`rae stops: Not at 1" _ I I requirements. In absence of any such requirement, protective coatings and paints Formatted: Indent: Left: 0.75" shall be of a neutral color that is compatible with the surrounding environment. Formatted: Indent: Hanging: 0.25", Tab stops: Not at 1" iib. All exposed surfaces of the identified equipment must be coated and painted, ands Formatted: Indent: Left: 0.75" free from rust, blisters, stains, or other defects. Formatted: Indent: Left: 0.5 ", Hanging: Electric Lines. All electric lines to production facilities shall be located in 0.25 , Tab stops: Not at 1" Formatted: manner compatible to those already installed in the surrounding areas or subdivision. at 1" d: Indent: Left: 0.5 ", Tab stops: Not -0-.0215" 1 tt1FI ( 1 lktt -pkli r I 5 Han atted. Indent. Left. 0. Hang in: • in c i-cr° ° "vrrei° ... "`!. ,•iii;- c'= s°r`rc°a -'rc f..r< ,! ;tri-, tl���,�, ;4 -. ,•iri. rri'ru- e°c�`i= y'— enc°�'r11- b l�. !` s- �i�ro�c -�irr�-ur"s�n¢c= �r'?iziY -tJ .. ••� 4: ']ri- io- r�3`�6lrcitic— f; 3C � }1kYi'-i�kcYi1- -E13=illfii�;- EYE- �iFE➢ �k§ ��1cYi1-- t$ ��k�k�] i�(;, �. �s-- �§ ii�lf?' �sEs --�?FtE:-Y�-�Ei}.s " "cai --is cr >�liiE?4�- -�}�% odecorative masonry fence tthat shall be no less than ehght (8) feet in height. with an opaque - Formatted: - Indent:- -Left: 0.5 ", Tab stops: Not a Formatted: Indent: Left: 0.5 ", Hanging: ia. In lieu of this requirement, an alternative fence that is compatible with the 0.25 ", Tab stops: Not at 1" area surrounding the Drilling and /or Production Site may be approved by the Director of Planning and Development. Formatted: Indent: Left: 0.75 ", Hanging: -0-.2-5 2 ------------------------------------------------------------------------------------------------------------------- ----- 4b. Required fencing must be located within three hundred (300) feet of ally - -- Formatted: Indent: Left: 0.75", Hanging: equipment necessitating fencing requirements under this Subchapter. 0.25", Tab stops: Not at 1" 7. Lift Formatted: Indent: Hanging: 0.25", Tab stops: Not at 1" Formatted: Indent: Left: 0.5", Hanging: 0.25", Tab stops: Not at 1" Formatted: Indent: Left: 0.75" Formatted: Indent: Left: 0.75 ... . . First - line: 0 ", ------ (+--Any lift compressor which is installed within an approved Drilling and Production' [-Tab stops: Not at 0.69" ] Site shall be located at least twenty-four (24) feet from the outer boundary of the site. 8. Storage d'anks and Separators. ------------------------------ a. A e equipment and- 1-Formatted:Tab- stops: Not ----------- separation Development Site Plan except that permanent storage equipment and separation equipment maw MC=Q�edel lu �8fect LuIllel 1�11t [Formatted: Tab stops: 1.5", Left + Not atl"_-] --- ------ ------- --- - ---- __ __ b. The USC ot'centralized tank batteries is permitted as shown on the� a �ilica�ble(jas- -[Formatted: Tab stops: Not at 1 --------------------------------- Well Develo Enlent Site Plan. ----- - - - -- - --- - ------- - 0.5 ", --- -- ---- ----- ---- ----- - Formatted: ---I-n-d-e-nt-: -- Left-: - - - --Tab --stops-:-- No - t 9. Trash Locations. at 1" removed to a distance of at least 150 feet from the vicinity of any well tank or pump Formatted: Indent: Left: 0.5", Hanging: Station. 0.25", Tab stops: Not at 0.75" ------------------ D. Site Development �,Standards -- -------- -- -------- ---- ---- - -- - --- - --- ----- - --- ---- - - 1. Hydraulic Fracturingy. Commencing on the January 15, 2013, except as provided- � „Not atted: Indent: Hanging: O.5",Tabstops: in sub-paragraph (v) of this section, for each well completion operation with at 0.75” hydraulic fracturing: ia. For the duration of flowback, recovered liquids shall be routed into one or more storage vessels or re-injected into the Well or another Well, and the recovered gas shall be routed into a gas flow line or collection system, re- injected into the Well or another Well, used as an on-site fuel source, or used for another useful purpose that a purchased fuel or raw material would serve, with no direct release to the atmosphere. If this is infeasible, the requirements in sub-paragraph (imii�e) of this paragraph shall be followed. iib. All salable quality gas shall be routed to the gas flow line as soon as practicable. In cases where flowback emissions cannot be directed to the flow line, the requirements in sub - paragraph ( c) of this section shall be followed. im4e. Flowback emissions shall be captured and directed to a completion combustion device, except in conditions that may result in a fire hazard or explosion, or where high heat emissions from a completion combustion device may negatively impact waterways. Completion combustion devices must be equipped with a reliable continuous ignition source over the duration of flowback. mod. Releases to the atmosphere during flowback and subsequent recovery shall be minimized. tee. The requirements of sub - paragraphs (ia) and ( b) shall not apply to: 44. Each well completion operation with hydraulic fracturing at a gas well meeting the criteria for wildcat or delineation well. -2ii. Each well completion operation with hydraulic fracturing at a gas well meeting the criteria for non - wildcat low pressure gas well or non - delineation low pressure gas well. — Formatted: Tab stops: Not at 0.69" + 1.25" 1 rr + 1.5" J Formatted: Indent: Hanging: 0.5 ", Tab stops: l Not at 0.75" + 1" + 1.25" + 1.5" J `soil Sampling Soil sampling shall be required for all new Drilling and Production Sites. Soil sampling shall be subject to the following requirements: i- a_ Upon application for an Oil and Gas Well Permit, soil sampling shall be-- -- Formatted: Indent: Left: 1 ", Hanging: 0.25 ", conducted prior to the commencement of any drilling at the proposed Drilling _No bullets or numbering and Production Site to establish a baseline study of site conditions. A minimum of one soil sample shall be taken at the location of any proposed equipment to be utilized at the Drilling and Production Site to document existing conditions at the Drilling and Production Site. - — Formatted: Indent: Left: 1 ", Hanging: 0.25" ii - b. A licensed third party consultant shall be utilized to collect and analyze all- -� Formatted: Indent: Left: 1 ", Hanging: 0.25 ", pre - drilling and post - drilling soil analyses. The cost of such consultant shall No bullets or numbering be borne by the Operator. ( Formatted: Indent: Left: 1 ", Hanging: 0.25" iii- c_ Soil samples must be collected and analyzed utilizing proper sampling and- Formatted Indent: Left: 1 ", Hanging: 0.25 ", laboratory protocol from a United States Environmental Protection Agency or _No bullets or numbering Texas Commission on Environmental Quality approved laboratory. The results of the analyses will be addressed to the City and a copy of the report shall be provided to the Operator and surface estate owner. The analyses will include the following analyses at a minimum: TPH, VOCs, SVOCs, Chloride, Barium, Chromium and Ethylene Glycol. TM -- (Formatted: Indent: Left: 1 ", Hanging: 0.25" i;,- d. Post- drilling soil samples shall be collected and analyzed after the - - Formatted: Indent: Lett: 1 ", Hanging: 0.25 conclusion of drilling of each well. Subsequent to the drilling of each well, IN. bullets or numbering periodic soil samples shall be taken as determined by the Oil and Gas Inspector during inspection events to document soil quality data at the Drilling and Production Site. Samples shall include, but not be limited to, areas where removed equipment was located. Results of the analyses shall be provided as described in Subsection AI�.2.f} iiic. - - - Formatted: Indent: Left: 1 ", Hanging: 0.25' e_ Whenever abandonment occurs pursuant to the requirements of the RRC- Formatted: Indent: Left: 1 ", Hanging: 0.25', and as referenced in 35.22.5. -F' 9, the Operator so abandoning shall No bullets or numbering conduct post production soil sampling within three (3) days after equipment has been removed from the Drilling and Production Site to document that the final conditions are within regulatory requirements. Results of the analyses shall be provided as described in Subsection A.2.t.+i --cam ff. If any soil sample results reveal contamination levels that exceed the- -� Formatted: Indent: Left: 1 ", Hanging: 0.25', minimum state or federal regulatory levels, the City shall submit the soil No bullets or numbering sample results to the appropriate state or federal regulatory agency for enforcement. --- -[For Indent: Left: 1 ", Hanging: 0.25' 3. Pits. All pits shall be lined Ind shall be desi ne constructed, and installed in accordance with the liner standards set forth by the RRC. Any new Drillin, in Production Sites Dronosed alter January 15. 2013 shall utilve a closed -loop mud system. The following additional standards shall ap ly to pits within a Drilling and Production Site. - -- -- a. The type of pit used in drilhi operations shall be specified at the time Of Formatted: Indent: Left: 0.75 ", Tab stops; permitting. The Oil and i�as Inspector may perform a contamination assessment Notat 1.25' for any reserve pit completion /work -over pit. drillil U fluid disposal pit. fresh makeup water pit. mud circulation pit, washout pit, or water condensate pit. The following concentrations for contaminants will be used to determine if contamination exists within any materials in the pits: - Formatted: Indent: Left: 0.75' Compound Concentration limit TPH 1 S m�L BTEX 500 u /L Benzene 50 L1 t /L It" concentrations exceedinIcy these values are detected the operator shall rcrnovc cause to be removed or otherwise remediate contaminants to below the limits provided herein. cleanup operations shall begin irninediately. cleanup activities that do not begin within twenty -four (24'D hours of notitication b' the oil and gas inspector shall be considered a violation of this Subchapter. b. 01 freshwater -based mud systems shall be permitted. Saltwater -based niud° — Formatted: Indent: Left: 0.75', Tab stops: systems and oil based nnid sy_stc ms are nrohibiteCi. 1 ", Left + Not at 1.25 Ti1C C7it and it�a contents sha11 be removed from the nrerrnses within nmetV i9O)- — Formatted: Indent: Left: 0.75', Tab stops: dais after completion of the drilling of a well provided, however, that the 1 ", Left + Not at 1.25' permittee mad ap 1y for a ninety '9( D -dad extension from such re mirennents based on showing ood cause, necessity to maintain said pit. inclement weather. or other factors. The fit maw 3nate a period of time shorter than the nine (90) -day extension set out herein. h.- A11 nits shall be bacicfilled in accordance with the f0110winIcy schedule. The.- Tab stops: 1 ", Left Director of Planning and Development ruall permission for a it to remain at the site if the surface property owner submits a written request. L) Deserve pits and mud circulation pits shall be dewatered within 30 days and bacicfilled and compacted within ninety (()0) days of cessation of drilling activities. (ii) All completion /w<rrkover nits used when completin(� a well shall be dewatered within thirty (30) days and bacicfilled and compacted within one hundred and twenty (120) days of well completion. 10 - - - Formatted: Indent: Hanging: 0.25', Tab c. Chloride content of fluids held in pits inav not exceed three thousand Qadl � stops: 1 ", Left --- _ mi11i romper liter. Formatted: Indent: Left: 0.75', Tab stops: 1 ", Left + Not at 1.25' d. No metal additives ma be added to any drillin s fluids. Formatted: Indent: Hanging: 0.25, Tab stops: 1 ", Left Formatted: Indent: Hanging: 0.25', Tab e. All fluid pr<rduced Pram the well during eLrmpletion of production shall be held in �� stops: 1 ", Left + Not at l.zs" enclosed containers while stored on the rtyperty_ Formatted: Indent: Hanging: 0.25', Tab stops: 1 ", Left f All fluids shall be removed (` "de- watering` ") from the pits within thirty (30 da s <,Pcompletion <,Pdrillin�� operations. Ti1C C7it and it�a contents sha11 be removed from the nrerrnses within nmetV i9O)- — Formatted: Indent: Left: 0.75', Tab stops: dais after completion of the drilling of a well provided, however, that the 1 ", Left + Not at 1.25' permittee mad ap 1y for a ninety '9( D -dad extension from such re mirennents based on showing ood cause, necessity to maintain said pit. inclement weather. or other factors. The fit maw 3nate a period of time shorter than the nine (90) -day extension set out herein. h.- A11 nits shall be bacicfilled in accordance with the f0110winIcy schedule. The.- Tab stops: 1 ", Left Director of Planning and Development ruall permission for a it to remain at the site if the surface property owner submits a written request. L) Deserve pits and mud circulation pits shall be dewatered within 30 days and bacicfilled and compacted within ninety (()0) days of cessation of drilling activities. (ii) All completion /w<rrkover nits used when completin(� a well shall be dewatered within thirty (30) days and bacicfilled and compacted within one hundred and twenty (120) days of well completion. 10 (iii)-All -�Allcorn �Ictiou�/workov�cr pits used when working over a well shall be dewatered within hundred and twenty L 12(j) rn days s of completion of re--work operations. - ---- ---- ------------- (iv) -Basic sediment nits, dare nits, fresh mining water pits, and water condensate pits shall be dewatered, backfilled, and compacted within one hundred and LwentLLI 20jdas of final cessation ofuse of _theits, . i. Each operator Must Submit to the City a water conservation plan for uses of water.' FFormatted: - a b Not - at 5 ---------------------- The plan I-LIUst provide information in response to each of the R-)Iiowln I Leicnicn�ts Formatted: Indent: Left: 1", Hanging: 0.31" Formatted: Indent: Left: 0.5", Hanging: 0.25", Tab stops: Not at 0.75" Opepat"" production process, includin(5 how the water is diverted and transported from the sources) Lirc the water is utili/ed M the production jn!L�, 1--cLSL-0—f1S—L,M1Y1 how —t the estimated uuantity <,l' water consumed in the production process and therefore unavailable for reuse discly,�irueor other means of disposal; (ii) If long term, five (5) to ten (10) veers, water stara�e is anticipated, quantified five -veer and ten -veer t <u ets l <rr water savings and the basis for the develornent of such --goals; (iii) A descrlstion <,l'the devices) and /or methods) within an accuracy <,l' lus or minus 5.0% to be used in order to measure and account for the amount of water diverted from the source of sanely; �Llv ter distribution sy-stein pp �ecL� (v) A hcation of state -of- the -art ui inept and /or process modifications to Formatted: Font: Not Bold improve watei use et1'iciency___ _____end Vi which the user* Formatted: Tab stops: Not at 1.25Y" ------------------------- . . . . . .................... .................... shows to be appropriate for achieving the state d goal or goals of the water conservation �Ian. - - ------------------------------------------------------------------------------------------------------------------- 4. Erosion and Sediment Controls. Erosion and sediment practices shall be conducted for all ZL is wells. The Operator shall comply with the Erosion and __— I Sediment Control Plan as approved Lb by City.s :gym: Formatted: Indent: Left: 0.5", Hanging: 0.5", Tab stops: Not at 1.25" Formatted: Font: Not Bold ------------------------- E. Operations and EqRjED12RI� _� The following requirements apply only I Indent: Left: 6;; within City limits. Hanging: 0.5", No bullets or numbering, Tab � stops: Not at0.75 - ----------------------------- .... IN *--1. Nuisances. Adequate nuisance prevention measures shall betaken to prevent or* Formatted: Indent: Lett: 0.5 ", Tab stops: Not control offensive odor, fumes, dust, noise and vibration. [at 1" 2. Vapor RecOVe1V Umts. Formatted: Indent: Hanging: 0.25 ", Tab stops Not at 1" a. Va - f)r reGl)Ver� C,<1u1 Jment 1S TE,Cjulred for facilities not included tinder Rule � Formatted: Indent: Left: 0.5 ", Hanging: 0.25 ", Tab stops: Not at 1" X106.352 of TAC title 30, Pa1-t I, Chapter 106, Subchapter O; or its successor regulation. b. An Operator shall notify the Oil and Gas Inspector within two (2D days after the- - Formatted: indent: Left: 0.75" tirst sale of gas t'rom a well. - Formatted: Indent: Left: 0.75 ", First line: 0 ", 1 Tab stops: Not at 0.69" J e--3. Compliance with Rules and Reuulations. The Operator shall at all times comply - with the applicable rules and regulations of the RRC including but not limited to all applicable Field Rules. s w-, f He-`s s 4.11,,,, *. � rYa�" cklcla�lir 4:, = ,. =1 =.xIf -`== "cifcrr -ic = r' "'.rrcri'c`ri- t-­4. Debris. The Drilline and Production Site and site access road shall at all times be kept free <,P debris, pools <,P water or other liquids, contaminated soil, weeds, bnrsh, trash or other waste material outside the Drillin- and Production Site Formatted: Indent: Left: 0.5 ", Tab stops: Not at 1" Formatted: Indent: Left: 0.75 ", Hanging: 0.25 ", Tab stops: 1 ", Left 5 Ventin, and Flaring There shall be no venting or flaring of gases in residential areas- - -- Formatted: Indent: Left: 0.5" except as allowed by the RRC or TCEQ. If venting or flaring is allowed by the RRC or TCEQ, a permit must be obtained from the Fire Marshal in accordance with the Fire Code. Further, the venting or flaring_activities shall not be located closer than twelve hundred (1,200) feet from any Protected Use, unless: (1) a setback variance has been granted pursuant to 35.22.5; or (2) if practical and if approved by the City Fire Marshal, ground flaring that is wholly enclosed or screened with a masonry wall. Except in the case of an emer�ency, was well flaring shall anly be conducted during day -time hours.. a - ( Formatted: Indent: Hanging: 0.25" €- 6. Vehicle Placement. Vehicles, equipment, and machinery shall not be placed or* Formatted: Indent: Left: 0.5 ", Tab stops: Not located on a Drilling and Production Site (or on any public street, alley, driveway, or at 1" other public right -of -way) in such a way as to constitute a fire hazard or to unreasonably obstruct or interfere with fighting or controlling fires. - Formatted: Indent: Hanging: 0.25" 12 �. -44 rl R4 t+re -4, H , - F- h. a �; g7 dime of F'racturin� Fracturing operation shall be scheduled to occur- [at Formatted: Indent: Left: 0.5 Tab stops: Not during daylight hours unless the Operator has notified the Oil and Gas Inspector that 1" tracing will occur before or after daylight hours to meet safety requirements. ^�- -- Formatted: Indent: Hanging: 0.25" i- € Pneumatic Drilling Pneumatic drilling shall not be permitted. Formatted Indent: Left 0.5", Hanging: 0.25", No bullets or numbering, Tab stops: Not at 1" — l2ertuit ements. The nrovlslons of thls section shall annly wlthln the eornorate 11m1t5 of the City of Denton. Formatted Indent: ,Left 0 5" -- Formatted: Indent: Left: 0 ", Hanging: 0.5 ", Tab stops: Not at t: Le q1. the drilhnp and Tip {Formatted: Font: Not sold accessing the Drilling and Production Site 4 g- 114 e rfi+ r � ifleshall be in compliance with - -I all state and federal environmental re (yulations 2. Gathering Lines a. Each Operator shall place pipeline marker sign at each point where a flow line or gathering line crosses a public street or road. b. Each Operator shall place a warning sign for lines carrying H2S (Hydrogen Sulfide) gas as required by the Railroad Commission. 13 Formatted: Indent: Left: 0.5 ", Tab stops: Not at 1" a Formatted: Indent: Left: 0.75 ", Hanging: 0.25 ", Tab stops: 1 ", Left Formatted: Indent: Hanging: 0.25" Formatted: Tab stops: 1.25 ", Left + Not at 1" Formatted: Indent: Left: 0.75 ", Hanging: 0.25 ", Tab stops: 1.25 ", Left Formatted: Tab stops: 1.25 ", Left + Not at 1" Formatted: Indent: Left: 0.75 ", Hanging 0.25 ", Tab stops: 1.25 ", Left c. All flow lines and gathering lines within the corporate limits of the City ---[ Formatted: Tab stops: Not at 1" (excluding City utility lines and franchise distribution systems) that are used to transport oil, gas, and /or water shall be limited to the maximum allowable operating pressure applicable to the pipes installed and shall be installed with at least the minimum cover or backfill specified by the American National Safety Institute Code, as amended. Formatted: Indent: Left: 0.5 ", Hanging: c�T. . ". �peratln hTeSSnre. 0.25" - - - - --- -_-- " Formatted: Indent: Left: 0 ", Hanging: 0.5 , Tab stops: Not at 0.75" fr€���� -5-F1 ,1, °a ra„1r ra�uro,arf - T„�, T rrxvvxila rrll � ,-- ,a °l�!� -1-s- mill€ -�l 4- --Each well shall be equipped with an automated valve that closes the well in the event- - -- Formatted: Indent: Left: 0.5 ", !tt� of an abnormal change in operating press ure. All wellheads shall contain an at 1" ------------------------------------------------------------------------emergency shut off valve to the well distribution line. e--4. Control Device. Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank. f5. Stora;?e d'anks. a. All storage tanks shall be anchored for stability. Formatted: Indent: Left: 0.75 , Hanging: -, 0.25 ", Tab stops: Not at 1" g b -As required by the Fire Code, all storage tanks shall be equipped with- �4 Indent: Left: 0.75 ", Hanging: I_ either steel or concrete secondary containment systems including lining with an 0.25" Tab stops_ Not at r' j impervious material. The secondary containment system shall be of a sufficient _Formatted: -- height to contain one and one -half (I /z) times the contents of the largest tank in accordance with the Fire Code. Drip pots shall be provided at pump out connections to contain the liquids from the storage tank. 14 4--6 Outdoor Storage Areas Outside storage areas shall be equipped with a secondary- [at Formatted: Indent: Lett: 0.5 ", Tab stops: Not containment system designed to contain a spill from the largest individual vessel. If 1" the area is open to rainfall, secondary containment shall be designed to include the volume of a twenty -four (24) -hour rainfall as determined by a twenty -five (25) -year storm and provisions shall be made to drain accumulations of ground water and rainfall. -- — Formatted: Indent: Hanging: 0.25' i- 7. Liohting System. Drilling and Production Sites shall be equipped with a- - —�at Formatted: Indent: Lett: 0.5, Tab stops: Not lightning protection system, in accordance with the City's Fire Code and the National 1" Fire Association's NFPA -780. In addition, tank battery facilities shall be equipped with a remote foam line and a lightning arrestor system. - Formatted Indent Hanging 0 25 8 Hazardorus Materials Managernent Plan A Hazardous Materials Management -[at Formatted: Indent: Lett o.5, Tab stops: Not Plan shall be on file with the Fire Marshal. Any updates or changes to this plan shall 1" be provided to the Fire Marshal within three (3) working days of the change. All chemicals and /or hazardous materials shall be stored in such a manner as to prevent, contain, and facilitate rapid remediation and cleanup of any accidental spill, leak, or discharge of a hazardous material. Operator shall have all material safety data sheets (MSDSs) for all hazardous materials on site. All applicable federal and state regulatory requirements for the proper labeling of containers shall be followed. Appropriate pollution prevention actions shall be required and include, but are not limited to, chemical and materials raised from the ground (e.g., wooden pallets), bulk storage, installation and maintenance of secondary containment systems, and protection from storm water and weather elements. Abandoned bw Formatted: Indent: Lett: os ", Tab stops• Not accordance with of thellRRC�l however�all ll casings shalabandoned b eout and lat 1 removed to a depth of at least ten (10) feet below the surface unless the surface owner submits a written agreement otherwise. Three (3) feet shall be the minimum depth. Alter the well has been ged and abandoned, the Operator shall clean and rear all damage to public proper caused by such operations within thirty (30 da s. In addition, the Operator shall: ia. Submit a copy of its RRC Form W -3A (Notice of Intention to Plug and- Formatted: Indent: Lett: 0.75 ", Tab stops; Abandon) and Form W -3 (Plugging Record) to the Inspector within two (2) Not at 1.25' business days of filing with the RRC; iib. Notify the Oil and Gas Inspector of the intention to plug and abandon a well at least twenty -four (24) hour prior to commencing activities; and ii-ic. Submit to the Oil and Gas Inspector the surface hole locations in an acceptable Geographic Information System (GIS) format to accurately map and track well locations. The GIS data may be submitted with an initial Gas Well Permit application or with the annual administrative report. Submission of GIS location data is only required once. 15 mod. Submit a copy of a soil sampling analysis as required by Subsection 35.22.5.AD.2 -q . 10. (----Reclamation Plan. Operators must close each Drilling and Production Site in a- —[at Formatted: Indent: Lett: 0.5 ", Tab stops: Not manner that minimizes the need for care after closure. To achieve this requirement, 1" the site shall be reclaimed to the condition identified on the Site Reclamation Plan, as nearly as practicable. In the event development encroaches up to the property after drilling and production activities, a reasonable rehabilitation alternative may be approved by the City to ensure the reclaimed site is compatible with the surrounding properties. a'rr ---i m-- ^zi- .s- '3a'-c:rY- aizxr- ci�^YCfcrc.r iz- t�'Y1- 1�t-- q--12. Pit Fencing. For safety reasons, fencing shall be installed to restrict access to a4 Formatted: Indent: Lett: 0.5 ", Tab stops: Not reserve pit or other type of open pit utilized in gas well drilling operation at a drill site at 1" within the corporate limits of the City. f-.-- 13. Catchment Basins. Drip pans, catchment basins and other secondary containment devices or oil absorbing materials shall be placed or installed underneath all tanks, containers, pumps, lubricating oil systems, engines, fuel and chemical storage tanks, system valves, connections, and any other areas or structures that could potential leak, discharge, or otherwise spill hazardous or solid materials. . — 14. Clean -up After Completion. After the well has been completed; "F g , - 1d- ie4;_ the Operator shall clean and repair all damage to public property caused by such operations within thirty (30) days. 4-- 15. Clean -up Operations. After any spill, leak or discharge, the Operator shall remove - or cause to be removed all contamination and associated waste materials. Clean -up operations shall begin immediately. 16 Formatted: Indent: Hanging: 0.25" Formatted: Indent: Left: 0.5 ", Tab stops: Not at 1" - - -- -- -- -- -- -- - - -- - - - -- - - -- -- - -- - -- - - -- - - - -- --------------- - - - -- Formatted: Indent: Hanging: 0.25" Formatted: Indent: Left: 0.5 ", Tab stops: Not at 1" a Formatted: Indent: Hanging: 0.25 ", Pattern: Clear ------------------------------------------------------------------------------------------------- Formatted: Indent: Left: 0.75", Tab stops: Not at 1.25" . - - - { Formatted: Indent: Left: 0.75" 1 ------------------------- ---------------------------------------------------------------------- Formatted: Indent: Left: 0.75", Tab stops: 4r, 1", Left + Not at 1.25" j 17 b Formatted: Indent: Left: 0.75 ", Tab stops: J 1 ", Left + Not at 1.25" Formatted: Tab stops: 1 ", Left „- '! -. ,! zi�k:Fktk4.s- ;'kfi-th1?.'�2-$� .i -cam" c�-- crziciccxxrccrcc rsr- fi$3E" s—t s—� arsgrc ovrlras¢rc b .r- 'sYcc°crl car'ia- }ri'rc- c�`rzc"c`i "rsr , "Formatted: Tab stops: Not at 0.75" Formatted: Indent: Left: 1 ", Hanging: 0.31" i16. Water Conservation flan. Each operator must submit to the C ity a water uoselvatlon plan for uses of water.fhe plan must provide information in response to each of the l<rllowinu elements a the use of the water in the lis- Indent: Left: 0--.-75- .75 ", Tab stops; water is transported from the sour e(s) of supply,rhowdthe water Not at 1.25" 1.25 utilized in the production process, and the estimated quantity of water consumed in the production process and therefore unavailable for reuse, discharge, or other means of disposal; iib. If long -term, five (5) to ten (10) years, water storage is anticipated, quantified five -year and ten -year targets for water savings and the basis for the development of such goals; 18 im4c. A description of the device(s) and /or method(s) within an accuracy of plus or minus 5.0% to be used in order to measure and account for the amount of water diverted from the source of supply; mod. Leak- detection, repair, and accounting for water loss in the water distribution system; e. Application of state -of- the -art equipment and /or process modifications to improve water use efficiency; and . Formatted: Tab stops: Not at 1.25" J fiarmaned- : Indent: Left: 0.5 ", Han 9: in 0.5 Tab stops: Not at 1.25" 9� J a �it --�, _Pef+atc+F_�_,C+ ��L��4_ r�., 'ern" i '. 19 35.22.9. - Indemnification and Insurance. A. Indemnification and Express Negligence Provisions. 1. Each Gas Well Permit issued by the City shall include the following language: OPERATOR DOES HEREBY EXPRESSLY RELEASE AND DISCHARGE ALL CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, AND EXECUTIONS WHICH IT EVER HAD, OR NOW HAS OR MAY HAVE, OR ASSIGNS MAY HAVE, OR CLAIM TO HAVE, AGAINST THE CITY OF DENTON, AND /OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, SUCCESSORS, ASSIGNS, SPONSORS, VOLUNTEERS, OR EMPLOYEES (COLLECTIVELY REFERRED TO AS THE "INDEMNIFIED PARTIES"), RELATING TO OR ARISING OUT OF BODILY INJURY, KNOWN OR UNKNOWN, AND INJURY TO PROPERTY, REAL OR PERSONAL, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER A GAS WELL PERMIT. TO THE FULLEST EXTENT PERMITTED BY LAW, OPERATOR SHALL DEFEND, PROTECT, INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST EACH AND EVERY CLAIM, DEMAND, OR CAUSE OF ACTION AND ANY AND ALL LIABILITY, DAMAGES, OBLIGATIONS, JUDGMENTS, LOSSES, FINES, PENALTIES, COSTS, FEES, AND EXPENSES INCURRED IN DEFENSE OF THE INDEMNIFIED PARTIES, INCLUDING, WITHOUT LIMITATION, BODILY INJURY AND DEATH IN CONNECTION THEREWITH WHICH MAY BE MADE OR ASSERTED BY OPERATOR, ITS AGENTS, ASSIGNS, OR ANY THIRD PARTIES ON ACCOUNT OF, ARISING OUT OF, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER A GAS WELL PERMIT. THE OPERATOR AGREES TO INDEMNIFY AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY LIABILITIES OR DAMAGES SUFFERED AS A RESULT OF CLAIMS, DEMANDS, COSTS, OR JUDGMENTS AGAINST THE INDEMNIFIED PARTIES RELATING TO OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE INDEMNIFIED PARTIES OCCURRING ON THE DRILLING AND PRODUCTION SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE INDEMNIFIED PARTIES OCCURRING ON THE DRILLING AND PRODUCTION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE INDEMNIFIED PARTIES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE INDEMNIFIED PARTIES, WHETHER THAT NEGLIGENCE IS THE SOLE CAUSE OF THE RESULTANT INJURY, DEATH, AND /OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. B. Insurance. 1. General Requirements. a. The Operator shall provide or cause to be provided the insurance described below for each well for which a Gas Well Permit is issued, and shall maintain such insurance until the well is abandoned and the site restored, except as otherwise required in this Section. b. Prior to issuance of the Gas Well Permit, the Operator shall furnish the City with a certificate(s) of insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements set forth in this Section. A copy of the endorsements or other policy provisions adding the City as an additional insured to the insurance policies, endorsements providing the City thirty (30) days written notice of cancellation or material change in coverage, and all waivers of subrogation shall be attached to the certificate(s) of insurance. Upon request, certified copies of the insurance policies shall be furnished to the City. The City's acceptance of documents that do not reflect the required insurance, or the City's failure to request the required insurance documents, shall not constitute a waiver of the insurance requirements set forth in this Section. c. In the event any insurance required by this Section is cancelled, the Gas Well Permit shall be suspended on the date of cancellation and the Operator's right to operate under the Gas Well Permit shall immediately cease until the Operator obtains the required insurance. d. The Operator shall provide the City thirty (30) days written notice of any cancellation, non - renewal, or material change in policy terms or coverage, and the policies shall be endorsed to provide the City such notice. Ten (10) days written notice shall be acceptable in the event of cancellation because of non - payment of premium. e. All insurance policies shall be written by an insurer authorized to do business in Texas and with companies with A: VIII or better rating in accordance with the current Best's Key Rating Guide, or with such other financially sound insurance carriers approved by the City. f All insurance policies, with the exception of the workers compensation policy, shall be endorsed to name the City, its officials, employees, agents and volunteers as additional insureds on the policies. The additional insured coverage shall apply as primary insurance with respect to any other insurance or self - insurance programs maintained by the City, its officials, employees, agents and volunteers. A copy of each endorsement shall be provided to the City as evidence of coverage. g. All insurance policies shall be endorsed with a waiver of subrogation in favor of the City, its officials, employees, agents and volunteers. A copy of each endorsement shall be provided to the City. h. All insurance policies shall be written on an occurrence basis where commercially available. i. During the term of the Gas Well Permit, the Operator shall report, in a timely manner, to the Gas Well Division any known loss or occurrence which has caused, or may in the future cause, bodily injury or property damage. 2. Required Insurance Coverages. a. Commercial General Liability Insurance. Operator shall maintain commercial general liability (CGL) insurance with a limit of not less than one million dollars ($1,000,000) each occurrence with a two million dollars ($2,000,000) aggregate. This insurance shall cover liability including, but not limited to, liability arising from premises, operations, blowout or explosion, products- completed operations, contractual liability, underground property damage, broad form property damage, and independent contractors. This insurance shall also include coverage for underground resources and equipment hazard damage. In addition to the additional insured requirements set forth above, the additional insured coverage provided to the City, its officials, employees, agents and volunteers shall include coverage for products- completed operations. b. Environmental Impairment (or Pollution Liability) Insurance. Operator shall maintain environmental impairment or pollution liability insurance with a limit of not less than five million dollars ($5,000,000). Such coverage shall not exclude damage to the lease site. If coverage is written on a claims -made basis, the Operator shall maintain continuous coverage or purchase tail coverage for four (4) years following the expiration or suspension of the Gas Well Permit, and the retroactive date(s) applicable to such coverage shall precede the date of issuance of the Gas Well Permit. Coverage shall apply to sudden and accidental, as well as gradual, pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. c. Automobile Liability Insurance. Operator shall maintain automobile liability insurance with a limit of not less than one million dollars ($1,000,000) each accident. Such insurance shall cover liability arising out of any auto (including owned, non - owned, and hired autos). d. Worker's Compensation Insurance. Operator shall maintain workers compensation and employers liability insurance. The workers compensation limits shall be as required by statute and employers liability limits shall not be less than one million dollars $1,000,000 each accident for bodily injury by accident and $1,000,000 each employee for bodily injury by disease. e. Excess (or Umbrella) Liability Insurance. Operator shall maintain excess (or umbrella) liability insurance with a limit of not less than twenty -four million dollars ($24,000,000) per occurrence with a twenty - four million dollar ($24,000,000) aggregate. Such insurance shall be excess of the commercial general liability insurance, automobile liability insurance and employers liability insurance as specified above. f. Control of Well Insurance. Operator shall maintain control of well insurance with a limit of not less than five million dollars ($5,000,000) per occurrence. The policy shall provide coverage for the cost of controlling a well that is out of control, re- drilling or restoration expenses, seepage and pollution damage. A five hundred thousand dollars ($500,000) sub -limit endorsement may be added for damage to property for which the Operator has care, custody, and control. 35.22.8. 4 & °� 9. - Indemnification and Insurance. Formatted: Font: Not Bold, Font color: Black 4, ,, — 1�.' rf :�7 -i47 -� 1. �t p er`. -,- a�rt� Formatted: Indent:_Left: 0" VVIL r- icr- =da'-iin;i,- &- 44ft i— w A. Indemnification and Express Negligence Provisions. Each Gas Well Permit issued by the City shall include the following language Tdm 11- 21 -14 --- — Formatted: Right ------------------------ CONNECTION WITH THE PERFORMANCE OF THE WORD PERFORMED BY THE OPERATOR UNDER A GAS WELL PERMIT. TO THE FULLEST EXTENT PERMITTED BY LAW OPERATOR SHALL DEFEND PROTECT INDEMNIFY AND HOLD ((ARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST EACH AND (EVERY CLAIM DEMAND OR CAUSE OF ACTION AND ANY AND ALL LIABILITY DAiRAGES OBLIGATIONS JUDGMENTS LOSSES FINES PENALTIES COSTS FEES AND EXPENSES INCURRED IN DEFENSE OF THE INDEMNIFIED PARTIES INCLUDING WITHOUT LIMITATION BODILY INJURY AND DEATH IN CONNECTION THEREWITH WHICH MAY BE MADE OR ASSERTED BY OPERATOR ITS AGENTS ASSIGNS OR ANY THIRD PARTIES ON ACCOUNT OF ARISING OUT OF OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH THE PERFORMANCE OF THE WORD PERFORMED BY THE OPERATOR UNDER A GAS WELL PERMIT. THE OPERATOR AGREES TO INDEMNIFY AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY LIABILITIES OR DAMAGES SUFFERED AS A RESULT OF CLAIMS DEMANDS COSTS OR JUDGMENTS AGAINST THE INDEMNIFIED PARTIES RELATING TO OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE INDEMNIFIED PARTIES OCCURRING ON THE DRILLING AND PRODUCTION SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS. INCLUDING, BUT NOT LIMITED TO CLAIMS AND DAMAGES Formatted: Font: Bold ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE "v �u ?'� T�'�"`�INDEMNIFIED PARTIES OCCURRING ON THE Formatted: Font: Bold I DRILLING AND PRODUCTION SITE IN THE COURSE AND SCOPE OF - --------------------------------------------------------------- Formatted: Font: Bold INSPECTING AND PERMITTING THE GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE �? "tee ";-r`,INDEMNIFIED PARTIES FROM THE CONSEQUENCES OF Formatted:-Font-Bold THE NEGLIGENCE OF THE P- A —�^ ?` %- ' TltiD A D1 "k 4UNT'T°(,_' At!UNT'lf"(,_' £1111T1 Ti `u L) Q'U L) 'C 7 A T.T'T°' £lD '-,'INDEMNIFIED PARTIES WHETHER THAT NEGLIGENCE _ Formatted: Font: Bold IS THE SOLE—, CAUSE OF THE RESULTANT- INJURY, DEATH,- AND /OR (Formatted: Font: Bold DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. wommum 1 General R quirernenls. ar.w a 4r, a nfs r „lva-rri- irc`.i.- c�Dc- vienccz Ecii� -c}c- �dr ""'ti- rrccii- irirkGE' -- Formatted Indent Left 0", Tab stops 0 5 Left Tdm 11- 21 -14 --- - Formatted: Right ------------------------ e42- a. "d'he Operator shall provide or cause to be provided the insurance described below for each well for which a Gas Well Permit is jssLied and shall maintain such insurance until the well is abandoned and the site restored, extent as otherwise retluired in this `section. b. Prior to issuance of the Gas Well Permit the Operator shall firrnish the City with a certilicate(s) of insurance, executed by a duly authorised representative of each i set forth in this `section. A ctapy ol'the endorsements or other policy provisions addin(u the City as an additional insured to the insurance policies, endorsements providin( the City thirty(30) days written notice of cancellation or material change in coveraue, and all waivers of subrogation shall be attached to the certifcate(s) o iinsurance. U pon retiuest, certified ctapies of the insurance policies shall be furnished to the City "d'he City's acceptance of documents that do not reflect the retluired insurance, or the City'S failgre to redueSt the redgired insurance documents, shall not constitute a waiver of the insurance retiuirements set forth in this `section. C. In the event any insurance retiu:ired. by this `ection is cancelled., the Gas Well Permit shall be suspended on the date of cancellation and the Ofserator's right to tmperate under the Gas Well Permit shall immediately cease until the O erator obtains the It insurance. d. "d'he Operator shall provide the City thirty (30) days written notice of any cancellation, non - renewal, or material change in policy terms or covLrae, and the policies shall be endorsed to provide the City sash notice. d'en (I 0) days written notice shall be of premium. e. All insurance policies Shall be written by an insurer authorized to do business inQ — Formatted: Indent: Left: 0.75 ", Tab stops; Texas and with companies with A: VIII or better rating in accordance with the Not at 0.75' current 44e4,E4est'S Key Rating Guide, or with oonsJn+44e4such other financially sound insurance carriersmiz- iirP -& zaizaxcra -r it approved by the City. Formatted: Indent: Left: 0.75 ", Hanging: 4 -4a44t�-f All insurance policies--- 4i��4---, with the exception of the workers 0.25" J compensation policy, shall be endorsed to name a " it al 3ns,tar-t " the City -mil, its officials, -, -�- employees, agents and vtrlgnteers as additional insureds an the policies d'he additional insured covers 5e shall apply as primary insurance with respect to any other insurance or Self - insurance rogramS maintained by the Clty its officials, employees, agents and volunteers. Tdm 11- 21 -14 --- — Formatted: Right ------------------------ ep � n v s- - Formatted: Indent: Left: 0.75 ", Tab stops; A copy Of -a [Not at 0.75" rttla�+t t r� Ytt.� r ` reach endorsement shall 4ic4 be t» provided to the City as evidence Of coverage. Formatted: Indent: Left: 0.75 ", Hanging: All insurance policies shall be endorsed with a waiver of subra�ation in favor Of 0.25" the City, its <rllicials, empl<ryees, a 5ents and volunteers A copy <,P each endorsement shall be provided to the City. h. All insurance policies shall be written On an Occurrence basis where commercially available. i. I)rrring the term. oP the Csas Well Permit, the C)perator shall report, in a timely manner, to the Csas Well I)visiOn any known loss or Occurrence which has caused, or may in the lirttrue cause, bodily in trr Or ropert dan7 <�(�e. Formatted: Indent: Left: 0 ", Tab stops: 0.5" 2. —� _ a u i Left I--- Required Insurance Coverages. M General Liabilitv Insurance. shall- �e- r- d- �rz`°.rmrxrrcr°erci`rs's"rr _ a �- rrrn�rr- crr____ �) maintain commercial general liability (CirL) insurance with a limit Of not less than one million dollars ($1,000,000) beach occurrence t- It+rl+gwith a two million dollars ($2,000,000) a�; regate. This mil] ", insurance shall cover liability inchrdin, but not limited to, liability arising from premises, operations, blowout or explosion, products- - completed operations, met- contractual liability, underground property damage, broad form property damage, and independent contractors- pft4t�4i---,,�� lre d'his intiarance shall also inchrde covers 5e for underground resources and eduipment hazard damage. In addition to the additional insured reclrrirements set 1 <rrth above, the additional insared covers e provided to the City, its <al'licials, employees, a(5ents and vohrnteers shall inchrde coverage 1 <ar products - completed operations. b. Environmental Impairment (or - Pollution4 Liability) Insurance. Q erator shall l impairment or wtittcn— R41--- 17epollutwn liability insurance with a in4R- H+4imit of (- *ienot less than live million dollars ($4-51000,000-). Such coverage shall not exclude damage to the lease site. 4 I tirrr''�pzti -E - 1?clk>ti+�} If coverage is written on a - "claims -- made` basis, the ff4et (7 erator shall -- Formatted Indent Left 0.5", Hanging 0.215" Formatted: Font: Bold Formatted: Indent: Left: 0 ", Tab stops: 1 ", Left + Not at 0.75" Formatted: Indent: Left: 0" Formatted: Font: Bold Formatted: Font: Bold Tdm 11- 21 -14 --- - Formatted: Right ------------------------ maintain cantinuous cavera�e or purchase tail coverage for four (4) „years f <rllowing the expiration or suspension <,Pthe Csas Well Permit, and the retroactive dated applicable , �p ° +F�, ¢i*cto such coverage shall precede the date of fie-- issuance of the Gas Well Permit. Coverage shall apply to sudden and flon- ­ %accidental as well as (Yradual pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, t +*Xie- chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. Liabilitv Insurance. Cnerator shall maintain automobile liability insurance with a limit of not less than one million dollars 01,000,000) each accident. Such insurance shall cover liahihty ansinu out of any auto (including owned, non - owned, and hired autos). d. Worker's Comn2asation Insurance. Formatted: Indent: Left: 0 ", Tab stops: 0.5 ", Left Formatted: Font: Bold �peratCJT Shall mamtaln Wt7rherS GompenSatlC)n and emplC,yerS hablhty 1nsU:ranGe.' — {Formatted: Indent:-Left: 0.5 ",- Hanging: -O.5" The workers compensation limits shall be as required by statute and em 1<rycrs liability limits shall not be less than one million dollars 4$I 000 000 each accident for bodily ul ry by accident and 51,000,00 lnffff_� 14e�ty lt��a�ea each employee for bodily iii ury by disease. 4 e. )Excess or Umbrella LiabiW Insurance. of Formatted: Font: Bold Operator shall maintain excess (or umbrella) liability insurance with a limit of not-, � Formatted: Indent: Left: 0.75" less than twenty -four million dollars ($24,000,000) Wiper occurrence with atwenty -four million dollar 024,000,000 agre�ate Such insurance shall be excess of the coanmercial general liability insurance, automobile liability insurance and employers liability insurance as specified above. f. Control of Well Insurance. --[ Formatted: Font: Bold f7perator shall maintain control of well insurance with a. e; �; ,, „ limit of not less than five million dollars ($5,000,000) per occurrence. Tdm 11- 21 -14 --- - Formatted: Right ------------------------ b----- ----f' r' Lhc _ ohc shall proVlde coVerae foT the ° .` cast of- -Formatted: Indent: First line: 0" controlling a well that is out of control, re- drilling or i*ftrestoration expenses, 44ep&g{ —argi4i4� —*r - -l)rt� Rwge-- — s' r -ice %lx 7€ I atc - sccpagc and pollution damage. A five hundred thousand dollars ($500,000) sub -limit endorsement may be added for damage to property for which the f7perator has carc, custody, and control. +. Formatted: Font: +Body, 11 pt, Not Bold, Border:: (No border) Formatted: Left, Indent: Left: 0 ", Space After: 10 pt, Line spacing: Multiple 1.15 li 35.22.10. - Security. A. A security instrument that covers each well shall be delivered to the Oil and Gas Inspector before the issuance of the Gas Well Permit for the well. The instrument shall provide that it cannot be cancelled without at least thirty (3 0) days' prior written notice to the City and, if the instrument is a performance bond, that the bond cannot be cancelled without at least ten (10) days' prior written notice for non - payment of premium. The instrument shall secure the obligations of the operator related to the well to: 1. Repair damage, excluding ordinary wear and tear, if any, to public streets, including but not limited to bridges, caused by the operator or by the operator's employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the Gas Well Permit; 2. Comply with the insurance and security provisions set forth in Sections 35.22.9 and 35.22.10; 3. Pay fines and penalties imposed upon the operator by the City for any breach of the Gas Well Permit; and 4. Comply with Site Reclamation requirement. B. The security instrument may be in the form of an irrevocable letter of credit or payment bond issued by a bank or surety approved by the City. The instrument shall run to the City for the benefit of the City, shall become effective on or before the date the Gas Well Permit is issued, and shall remain in effect until the well is abandoned and the site restored. C. A certificate of deposit may be substituted for the letter of credit or payment bond. The certificate shall be issued by a bank in Denton County, Texas, shall be approved by the City, shall be payable to the order of the City to secure the obligations of the Operator described above, and shall be pledged to the bank with evidence of delivery provided to the Director of Planning and Community Development. Interest on the certificate shall be payable to the operator. D. The security instrument may be provided for an individual well, or for multiple wells being operated within the City by a single operator. The amount of the security shall be the amount of one hundred thousand dollars ($100,000.00) for a single well up to ten (10) wells, two hundred fifty thousand dollars ($250,000) for eleven (11) to twenty (20) wellswells;, and five hundred thousand dollars ($500,000.00) for twenty -one (21) or more wells. E. The security will terminate when the Oil and Gas Inspector confirms in writing that one of the following events has occurred: The Gas Well Permit is transferred, and the Operator- transferee provides replacement security that complies with this section; or 2. The well is plugged and abandoned and the site restored. 35.22.1910. - Security. A. A security instrument that covers each well shall be delivered to the Oil and Gas Inspector before the issuance of the Gas Well Permit for the well. The instrument shall provide that it cannot be cancelled without at least thirty (30) days' prior written notice to the City and, if the instrument is a performance bond, that the bond cannot be cancelled without at least ten (10) days' prior written notice for non - payment of premium. The instrument shall secure the obligations of the operator related to the well to: 1. Repair damage, excluding ordinary wear and tear, if any, to public streets, including but not limited to bridges, caused by the operator or by the operator's employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the Gas Well Permit; 2. Comply with the insurance and security provisions set forth in ` ectlon0,;eki-c*r 3 .22�andi�tEH13 7.22.1; Formatted: Font color: Auto, Border:: (No border) 3. Pay fines and penalties imposed upon the operator by the City for any breach of the Gas Well Permit; and 4. Comply with Site Reclamation requirement. B. The security instrument may be in the form of an irrevocable letter of credit or payment bond issued by a bank or surety approved by the City. The instrument shall run to the City for the benefit of the City, shall become effective on or before the date the Gas Well Permit is issued, and shall remain in effect until the well is abandoned and the site restored. C. A certificate of deposit may be substituted for the letter of credit or payment- -� Formatted: Normal, Indent: Left: 0.25 ", bond. The certificate shall be issued by a bank in Denton County, Texas, shall be Hanging: 0.25 ", No bullets or numbering approved by the City, shall be payable to the order of the City to secure the obligations of the Operator described above, and shall be pledged to the bank with evidence of delivery provided to the Director of Planning and Community Development. Interest on the certificate shall be payable to the operator. Formatted: Indent: Left: 0.25 ", Hanging: 4- D. The security instrument may be provided for an individual well, or for multiple 0.25" wells? rr-�aa P beln� c,pcLated Wlthln the (.lty by a Sln2 Formatted: Indent: Left: 0.25 ", Hanging: C� t,ratC)T. The amount Of the P , security shall be °G nay t'tt.Yale 0.25 ", No bullets or numbering r a �.� °°rrzcii:s°° °ca —ia= GR� -, i tote— a the amount of one hundred thousand dollars ($100,000.00) for a single ten 10) wells, two hundred fifty thousand dollars ($270,000) forcr cxa tli r' "eleven (I I) to twenty (20) wellswells;; and five hundred thousand dollars ($2.4)4500,000.00) for twenty -one (2I) or more wells -�-* a�e-si =Yitse. w - — Formatted: Indent: Hanging: 0.25" E. The security will terminate when the Oil and Gas Inspector confirms in writing - -- 10.25", Formatted: Indent: Left: 0.25 ", Hanging: that one of the following events has occurred: No bullets or numbering 1. The Gas Well Permit is transferred, and the Operator - transferee provides replacement security that complies with this section; or 2. The well is plugged and abandoned and the site restored. - Formatted: List Paragraph, Indent: Hanging: 0.5 ", Tab stops: - 2.44 ", Left + 0.25 ", Left + Not at 0.5" 35.22.11. - Inspection. A. The Oil and Gas Inspector shall have the authority to enter and inspect any premises covered by the provisions of this Subchapter and Gas Well Permit, to determine compliance with its provisions, and all applicable laws, rules, regulations, standards, or directives of any local, state or federal authority. B. Pursuant to inspection authority granted by this Subchapter, the Texas Clean Air Act, and the Texas Water Code, the Oil and Gas Inspector shall conduct periodic inspections of all wells permitted under this Subchapter. Formatted: Left: 1.06 ", Header distance from edge: 0.3 ", Footer distance from edge: 0.3" C. Inspections shall include periodic evaluations during production to determine ifs —� Formatted: Indent: Left: o.zs ", Hanging: equipment is not functioning as designed and may produce fugitive emissions. Multi space After: 10 pt, Line spacing: g g y P g Multiple 1.15 li, Pattern: Clear A third party contractor may be retained by the City to perform such inspections, and cost of services and charges assessed by the third party contractor shall be borne by the Operator. Any third part contractor shall have the same authority as the Oil and Gas Inspector for purposes of inspections under this Section. 2. The City shall notify the Operator in writing, as well as to the state and federal regulatory agencies having jurisdictional authority, of any malfunctioning equipment producing fugitive emissions. In the event that any state or federal regulatory agency determines that there are two or more notices of violation per well or Drilling and Production Site during any 12 -month period, within 30 days of the second notice of violation, the operator shall submit to the City a Leak Detection and Compliance Plan. The Plan must be created in accordance with guidelines promulgated by the City's Oil and Gas Inspector. It shall ensure all site activities and equrpment are in Formatted: Font: (Default) Times New Roman, compliance with applicable federal, state and local rules and regulations. The plan shall outline the methodology to assess and evaluate the impact of drilling, immediate production, u surroundings. SpecLific elements of suchalplan shall include, but are not � FZ Pmatted: Font: (Default) Times New Roman,1 Limited to, a quarterly leak detection monitoring program; methods and equipment J utilized for emission measurements; and a response plan to address Leak issues, should they arise, and any other information required by the Orland Gas Inspector_ Such Plan shall also include installation or repair of appropriate equipment to meet the requirements of the emissions compliance plan, which may include, but is not Limited to, vapor recovery units or other emissions control technology. 4. Monitoring shall include the evaluation of potential impact to air, soil, surface water and groundwater. Quarterly reporting of the monitoring results to the City's Oil and Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Gas Inspector, is required with all laboratory- data sheets, field logs, data summaries, Formatted: Font: (Default) Times New Roman, -- - - -- � and actions taken in the previous quarter. 12 pt 5. Upon showing documented compliance for a period of 12 months, the Operator shall thereafter employ best management practices to eliminate any emissions in violation of this Subchapter, state and federal regulations. D. Inspections will also include an evaluation of Operator conformance with their Formatted: Tab stops: Not at o.s" Hazardous Materials Management Plan and other applicable requirements to their site. Any deviations from, or violations of, the Hazardous Materials Management Plan shall be referred to the Fire Marshal for further inspection and enforcement in accordance with the Fire Code. E. Inspection fees will be assessed for all inspections in an amount set by separate ordinance. Failure to timely remit payment for inspection fees is a violation of this Subchaper; however, nothing herein shall be deemed to limit the City's remedies in equity or law in the collection of any past due fees. 35.22.11 -5. - Inspection. 44A. The Oil and Gas Inspector shall have the authority to enter and inspect any premises covered by the provisions of this Subchapter and Gas Well Permit, to determine compliance with its provisions, and all applicable laws, rules, regulations, standards, or directives of any local state or federal authority. ,GE4. Pursuant to inspection authority granted by the Texas Clean Air Act and the Texas Water Code, the Oil and Gas Inspector shall conduct periodic inspections of all wells permitted under this Subchapter. �C. Inspections may include periodic evaluations ^'' n;r a— ., � � ^¢r ie 4 ll; , ti� Tt, „! C rry�. r�l[a�= y�—�f, �ra��� ----�- trek,= ---eT �- dulin(� production to determine if ecuipment is not functioning as designed and ma produce fugitive emissions. and cost of services and charges assessed by the third party contractor shall be borne Le nctioning ectuipment producin fu itive emissions In the event that any state <rr federal regulatory auency determines that there are two or more notices of violation per well_or per Drilling an compliance with applicable federal, state and local rules and regulations. The plan shall outline t (5, fracturing surroundings. Specifrc elements of such a plan shall include, but are not limited to, a ctuarterly leak defection monitoring ro�ram; methods and ettuipment utilized for emission measurements; and a res onse plan to address leak issues, should they arise, ncludc installation or reparr of appropriate cduipmcnt to meet the rcduircmcnts of the emissions compliance ran, which may include, but is not hmitcd to, vapor recovery units or other emissions control technology. 4. Monitoring shall include the evaluation of potential impact to air, soil, surface water and Zroundwater. (yuatlerly reporting crf the monitarin� results to the city s oil Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Indent: First line: 0 ", Tab stops: 0.75 ", Left Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black ----------------------------------------------------------------------------------------------------------------- Formatted:-Indent:Firstline_ 0" Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Indent: First line: 0 ", Tab stops: 0.75 ", Left Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black -- - - - - -- - - - - -- - - - - - -- --------------- - -- Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black -------------------------------- Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black --- - - - - -` - - - - -- - - - - -- - - -` - -- Formatted. Font. (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black and a s inspector is reduired with all laboratary data sheets, Ileld lames, data summaries, and actions taken in the previous quarter. shall the emissions in Inspections will also include an evaluation of Operator conformance with their Hazardous Materials Management Plan and other applicable requirements to their site. Any deviatians from ar vialatians crf the Hazardous Materials Management Plan shall be referred to the Fire Marshal for further inspection and enforcement in accordance with the Fire Code. F. Inspection fees will be assessed f <rr all inspections in an amount set by se ordinance. Failure to timely remit payment f <rr inspection fees is a violation <af' this ubclranter: however, nothin(5 herein shall be deemed to limit the City's dies in eciuity or law in the collection <af' any past due fees. Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black ................ -------------------- Formatted: Font: (Default) Times New Roman, 12 pt, Font color: Black Formatted: Font: (Default) Times New Roman, 12 pt 35.22.12. - Periodic Reports. A. The Operator shall notify the Oil and Gas Inspector and the Fire Marshal of any changes to the following information within one (1) business day after the change occurs. 1. The name, address, and phone number of the Operator; 2. The name, address, and twenty -four (24) -hour phone number of the person(s) with supervisory authority over the Drilling and Production Site; 3. The name, address, and phone number of the person designated to receive notices from the City, which person shall be a resident of Texas that can be served in person or by registered or certified mail; and 4. The Operator's Emergency Action Plan if required to file one pursuant to federal or state law. B. The Operator shall provide a copy of any "incident reports" or written complaints submitted to the RRC or any other state or federal agency within thirty (30) days after the operator has notice of the existence of such reports or complaints. This includes the recording of both reportable and non - reportable events as noted in Texas Administrative Code, Title 30. C. Beginning the January after each well is spud, and continuing on each January thereafter until the operator notifies the Oil and Gas Inspector that the well has been plugged and abandoned and the Drilling and Production Site restored, the operator shall prepare a written report to the Oil and Gas Inspector identifying any changes to the information that was included in the application for the applicable Gas Well Permit that have not been previously reported to the City. D. The Operator must provide a copy to the Oil and Gas Inspector all reports otherwise filed with the TCEQ in connection with an installed vapor recovery unit as described in 35.22.8.E.2. The Operator shall also provide the City with copies of any responses provided by TCEQ. Such reports and responses shall be kept on the Drilling and Production Site and shall be available for inspection when requested by the Oil and Gas Inspector. E. The Operator shall provide the City with copies filed with the RRC of the respective reports for setting surface casing, blowout preventer (BOP) pressure testing, bridge plug testing, pressure relief valve testing, and level control testing. The Operator shall also provide the City with copies of any responses provided by the RRC. Copies of such reports and responses shall be kept on the Drilling and Production Site and shall be available for inspection when requested by the Oil and Gas Inspector. F. The Operator shall submit a copy of a soil sampling analysis as required by Subsection 35.22.8.D.2 upon request by the Oil and Gas Inspector. G. In addition to the records listed in Subsections 35.22.5.F.9 and 35.22.12.13, the Operator shall provide the City with a copy of all records filed with the RRC and TCEQ by the Operator or by third parties. Copies of such records shall be kept on the Drilling and Production Site and shall be available for inspection when requested by the Oil and Gas Inspector. 1 35.22.44-12. - Periodic Reports. A. The Operator shall notify the Oil and Gas Inspector and the Fire Marshal of any changes to the following information within one (1) business day after the change occurs. 1. The name, address, and phone number of the Operator; 2. The name, address, and twenty -four (24) -hour phone number of the person(s) with supervisory authority over the Drilling and Production Site; 3. The name, address, and phone number of the person designated to receive notices from the City, which person shall be a resident of Texas that can be served in person or by registered or certified mail; and 4. The Operator's Emergency Action Plan if required to file one pursuant to federal or state law. B. The Operator shall provide a copy of any "incident reports" or written complaints submitted to the RRC or any other state or federal agency within thirty (30) days after the operator has notice of the existence of such reports or complaints. This includes the recording of both reportable and non - reportable events as noted in Texas Administrative Code, Title 30. C. Beginning the January after each well is spud, and continuing on each January thereafter until the operator notifies the Oil and Gas Inspector that the well has been plugged and abandoned and the Drilling and Production Site restored, the operator shall prepare a written report to the Oil and Gas Inspector identifying any changes to the information that was included in the application for the applicable Gas Well Permit that have not been previously reported to the City. D. The Operator must provide a copy to the Oil and Gas Inspector all reports otherwise filed with the TCEQ in connection with an installed vapor recovery unit as described in 35.21.E.2.ft- The Operator shall also provide the City with copies of any responses provided by TCEQ. Such reports and responses shall be kept on the Drilling and Production Site and shall be available for inspection when requested by the Oil and Gas Inspector. E. The Operator shall provide the City with copies filed with the RRC of the respective reports for setting surface casing, blowout preventer (BOP) pressure testing, bridge plug testing, pressure relief valve testing, and level control testing. The Operator shall also provide the City with copies of any responses provided by the RRC. Copies of such reports and responses shall be kept on the Drilling and Production Site and shall be available for inspection when requested by the Oil and Gas Inspector. F. The Operator shall submit a copy of a soil sampling analysis as required by Subsection 35.22.E ®D.2:-q upon request by the Oil and Gas Inspector. G. In addition to the records listed in Subsections 35.22.5. . . & .°F.9 and 35.22. 12.13, the Operator shall provide the City with a copy of all records filed with the RRC and TCEQ by the Operator or by third parties. Copies of such records shall be kept on the Drilling and Production Site and shall be available for inspection when requested by the Oil and Gas Inspector. 35.22.13. - Notice of Activities. A. Any Operator who intends to perform the following activities: (1) drill a well; (2) re -work a well using a drilling rig; (3) to fracture stimulate a well; (4) perform flow back operations; (5) plug a well; (6) perform any other maintenance at a Drilling and Production Site; or (7) to conduct seismic exploration not involving explosive charges; shall give written notice to the City no sooner than thirty (30) days and no later than three (3) days before the activities begin, provided that the Operator has first obtained all necessary authorizations required by this Chapter. Road Damage Remediation Fees shall be paid to the City and submitted with the Notice of Activities. B. All dwellings within twelve hundred (1,200) feet of a Drilling and Production Site shall be notified a minimum of ninety -six (96) hours prior to the activities listed in Section A. 1. 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. 2. The notice shall also provide the address and the telephone numbers of two persons responsible for the well who may be contacted twenty -four (24) -hour a day concerning the activities. C. The Operator responsible for the activities shall post a sign at the entrance of the Drilling and Production Site giving the public notice of the activities, including the name, address, and twenty -four (24) -hour phone number of the person conducting the activities. D. If upon receipt of the notice the City determines that an inspection by the Oil and Gas Inspector is necessary, the Operator will pay the City's customary charge for the inspection. E. Surface Casing. 1. The Operator shall notify the Inspector within 24 hours of setting surface casing. 2. Casing procedures shall follow RRC Rule 3.13, or any successor regulation. F. If a proposed Drilling and Production Site is located within twelve hundred (1,200) feet of a Protected Use, the Operator shall also host a public meeting at a location accessibly convenient to surrounding property owners and residents at least ten (10) days, but no more than forty -five (45) days, prior to either: (1) the public hearing held by the Planning and Zoning Commission in connection with an SUP application, or (2) the submission of a Preliminary Gas Well Development Site Plan if an SUP is not required. The Operator must provide written notice of the meeting to all property owners located within one thousand (1,200) feet of the proposed Drilling and Production Site. A mailing list that identifies each property and property owner shall be submitted to the Oil and Gas Inspector for proof of compliance with this requirement. The meeting should provide information regarding planned activities and timelines for the site and must provide an opportunity for citizens to ask questions about the proposed site. All notification and meeting costs shall be borne by the Operator. G. All surrounding property owners, businesses and residents within twelve hundred (1,200) feet of a Drilling and Production Site shall be notified a minimum of ninety -six (96) hours prior to fracturing of a wellhead. In addition, at least two (2) business days before fracturing operations commence, the Operator shall post a sign at the entrance of the site advising the public of the date the operations will begin and send notice to the City. ON -35.22.4-213. - Notice of Activities. A. Any Operator who intends to perform the following activities: (1) drill a well; (2) re -work a well using a drilling rig; (3) to fracture stimulate a well ; (4) perform flow back operations; (5) plug a well; (6) perform any other maintenance at a Drilling and Production Site; or (7) to conduct seismic exploration not involving explosive charges; shall give written notice to the City no sooner than thirty (30) days and no later than 4 '__o� s;A,Eghree (213�) days before the activities begin, provided that the Operator has first obtained all necessary authorizations required by this Chapter. Road Damage Remediation Fees shall be paid to the City and submitted with the Notice of Activities. B. All dwellings within twelve hundred (1,200) feet of a we44Drilling and Production Site shall be notified a minimum of t;ar�-y eigktninety -six (49�96) hours prior to the activities listed in Section A. 1. 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. 2. The notice shall also provide the address and the telephone numbers of two persons responsible for the well who may be contacted twenty -four (24) -hour a day phe+te concerning the activities. C. The Operator responsible for the activities shall post a sign at the entrance of the Drilling and Production Site giving the public notice of the activities, including the name, address, and twenty -four (24) -hour phone number of the person conducting the activities. D. If upon receipt of the notice the City determines that an inspection by the Oil and Gas Inspector is necessary, the eOperator will pay the City's customary charge for the inspection. E. Surface Casing. 1. The Operator shall notify the Inspector within 24 hours of setting surface casing. 2. Casing procedures shall follow RRC Rule 3.13, or any successor regulation. F. If a proposed Drilling and Production Site is located within twelve hundred (1,200) feet of a Protected Use, the Operator shall also host a public meeting at a location accessibly convenient to surrounding property owners and residents at least ten (10) days, but no more than forty -five (45) days, prior to either: (1) the public hearing held by the Planning and Zoning Commission in connection with an SUP application, or (2) the submission of a Preliminary Gas Well Development Site Plan if an SUP is not required. The Operator must provide written notice of the meeting to all property owners located within one thousand (1,4200) feet of the proposed Drilling and Production Site. A mailing list that identifies each property and property owner shall be submitted to the Oil and Gas Inspector for proof of compliance with this requirement. The meeting should provide information regarding planned activities and timelines for the site and must provide an opportunity for citizens to ask questions about the proposed site. All notification and meeting costs shall be borne by the Operator. G. All surrounding property owners, businesses and residents within twelve hundred (1,200) feet of a Drilling and Production Site shall be notified a minimum of t;ar�-y eigktninety -six (49�96) hours prior to fracturing of a wellhead. In addition, at least two (2) business days before fracturing operations commence, the Operator shall post a sign at the entrance of the site advising the public of the date the operations will begin and send notice to the city. Formatted: Font: Not Bold, Font color: Black Formatted: Indent: Left: 0.25" Hanging: 0.25 ", Tab stops: -13", Left 35.22.14. — Relief Measures. A. Board of Adjustment Proceedings. I. The Board of Adjustment shall hear and decide appeals of orders, decisions, or determinations made by the Oil and Gas Inspector relative to the application and interpretation of this Subchapter, except for vested rights appeals and matters described in Section 35.22.I4.C.; furthermore the Board of Adjustment shall hear and decide requests for variances to the provisions of this Subchapter under the relevant criteria set forth below. The Board may also grant special exceptions: (i) extending the expiration date of a Consolidation Permit, a Site Preparation Plan, a Gas Well Development Site Plan or a Gas Well Permit for a period not to exceed one year; or (ii) limiting the area of contiguous leased area under consideration for a consolidation permit pursuant to Section 35.22.4.D.3. Any Operator who desires to appeal the decision of the Oil and Gas Inspector, request a variance or request a special exception to file a variance may file an appeal or variance to the Board of Adjustment pursuant to this Section shall follow the procedures in Section 35.3.6 of the DDC. Appeal fees shall be required for every appeal or variance request. a. Standard of review for appeals. The members of the Board of Adjustment shall have and exercise the authority to hear and determine appeals where it is alleged there is error or abuse of discretion regarding the approval or denial of a Gas Well Development Site Plan, or the issuance or non - issuance of a Gas Well Permit. b. Standard of review for variances. In deciding variance requests, the Board of Adjustment shall consider, where applicable, the following relevant criteria: i. Whether there are special circumstances existing on the property on which the application is made related to size, shape, area, topography, surrounding conditions and location that do not apply generally to other property in the vicinity; ii. Whether a variance is necessary to permit the applicant the same rights in the use of his property that are presently enjoyed by other similarly situated properties, but which rights are denied to the property on which the application is made; iii. Whether the granting of the variance on the specific property will adversely affect any other feature of the comprehensive master plan of the City; iv. Whether the variance, if granted, will be of no material detriment to the public welfare or injury to the use, enjoyment, or value of property in the vicinity; v. Whether the operations proposed are reasonable under the circumstances and conditions prevailing in the vicinity considering the particular location and the character of the improvements located there; vi. Whether the drilling of the maximum number of potential wells for the proposed drill site would conflict with the orderly growth and development of the City; vii. Whether there are other alternative well site locations; viii. Whether the operations proposed are consistent with the health, safety and welfare of the public when and if conducted in accordance with the oil, gas, or combined well permit conditions to be imposed; ix. Whether the operations proposed are consistent with protecting the ecological integrity and environmental quality, including protection of surface and ground water sources, of potentially impacted environmentally sensitive areas; x. Whether there is reasonable access for City fire personnel and firefighting equipment, including the ability to safely evacuate potentially affected residents; xi. Whether the impact upon adjacent property and the general public by operations conducted in compliance with the gas well permit conditions are reasonable and justified, balancing the following factors: 1. The reasonable use of the mineral estate by the mineral estate owner(s) to explore, develop, and produce the minerals; and 2. The availability of alternative drilling sites; and xii. Where a variance is requested to reduce separation standards in 35.22.8.A.1, in addition to other relevant criteria, the extent to which owners of Protected Uses, or freshwater wells currently in use, have consented to the reduction in separation standards in writing. c. The Board of Adjustment shall determine whether to grant an extension of the expiration date for a Gas Well Development Site Plan or Gas Well Permit based ON upon whether there are circumstances reasonably beyond the control of the Operator, including any delay on the part of the City in issuing subsequent permits, that justify an extension of the Site Plan or Permit, in order that the Operator may enjoy the same rights in the use of the property that are presently enjoyed by other similarly situated properties, but which rights are denied to the property for which the Site Plan or Permit expires. d. The Board of Adjustment shall determine whether to grant an applicant's request for a special exception to limit the contiguous leased area under consideration for a consolidation permit pursuant to Section 35.22.4, based on proof that such area(s) is under separate mineral lease from the mineral lease that contains the proposed consolidated site; that the mineral lease containing such consolidated site prohibits access to the leased area(s) to be excluded and that there is no economically feasible means of either obtaining the lessor's consent to access the minerals from such area(s) to be excluded from the proposed consolidated site or that the areas cannot be accessed through joint operating agreements from the proposed consolidated site. The Board in evaluating the special exception request may employ experts to assist it in deciding the special exception. The Board may approve a special exception for a smaller area than requested by the applicant. 2. The Board of Adjustment may reverse or affirm, in whole or in part, or modify the Oil and Gas Inspector's order, requirement, decision or determination from which an appeal is taken and make the correct order, requirement, decision or determination from which an appeal is taken and make the correct order, requirement, decision or determination. The Board of Adjustment may issue a variance to the applicant under the criteria referenced in Subsection A.l.b., and may grant a special exception under the criteria referenced in A.l.c. Any action under this subsection shall require a three- fourths majority vote of the entire Board of Adjustment. 3. Any Operator aggrieved by any decision of the Board of Adjustment may present to a court of record a petition, duly verified, stating that such decision is illegal, in whole or in part, and specifying the grounds of the alleged illegality. Such petition shall be presented within ten days after the date on which the decision of the Board of Adjustment was rendered and not thereafter, and judicial review of the petition shall be pursuant to Texas Local Government Code, § 211.011, as amended. B. Watershed Permit Appeals. 1. The applicant may appeal the denial or conditional approval of a Watershed Protection Permit on grounds pertaining to the standards in Subsection 35.22.5.1) to the Planning and Zoning Commission within ten (10) calendar days of the decision by 3 the DRC. In deciding the appeal, the Planning and Zoning Commission shall decide the appeal based upon the standards made applicable to the permit by Subsection 35.22.5.D. 2. The applicant may file a petition for review pursuant to Subsection 35.22.5.D on grounds therein specified to the City Council within ten (10) calendar days of the decision by the Planning and Zoning Commission. The Council shall decide the petition based upon the criteria in Subsection 35.22.5.D. C. Vested Rights Appeals. Any person who claims that he has obtained a vested right pursuant to Texas Local Government Code, Chapter 245 or other applicable vesting law for such applications, may request a determination pursuant to Section 35.3.8 of the DDC. For proposed gas wells to be located inside the city limits, the petitioner shall include a statement of the reasons why the zoning regulations contained in this Subchapter 22 are not exempt from statutory limitations on the application of new zoning standards. M 35.22.46. ad °°° kees]l4. — Relief Measures. A. Board of Adjustment Proceedings. The Board of Adjustment shall hear and decide appeals of orders, decisions, or determinations made by the Oil and Gas Inspector relative to the application and interpretation of this Subchapter, except for 4 4o-yL- vested ri (Yhts appeals and matters described in 44 ,Section 35.22.44— ?--&ad ?��514.C; furthermore the Board of Adjustment shall hear and decide requests for variances to the provisions of this Subchapter under the relevant criteria set forth below. The Board may also grant a special eeicrexceptions: (i) extending the expiration date of a Consolidation Permit, a Site Preparation Plan, a Gas Well Development Site Plan or a Gas Well Permit for a period not to exceed one year; or (ii) limiting the area of contiguous leased area under consideration for a consolidation permit pursuant to 44e -e Section 35.22.4.D.3. Any Operator who desires to appeal the e--4 nreir�r� c- decision of the Oil and Gas Inspector, request nest or request a special exce tion to file a variance may file an appeal or variance to the Board of Adjustment pursuant to_this Section shall follow the procedures in Section 35.3.6 of the DDC. Appeal fees shall be required for every appeal or variance request. 14=14E 4 + - ns. ° 4 rll re t va the app r a. Standard of review for appeals. The members of the Board of Adjustment shall have and exercise the authority to hear and determine appeals where it is alleged there is error or abuse of discretion regarding the approval or denial of a Gas Well Development Site Plan, or the issuance or non - issuance of a Gas Well Permit. b. Standard of review for variances. In deciding variance requests, the Board of Adjustment shall consider, where applicable, the following relevant criteria: i. Whether there are special circumstances existing on the property on which the application is made related to size, shape, area, topography, surrounding conditions and location that do not apply generally to other property in the vicinity; ii. Whether a variance is necessary to permit the applicant the same rights in the use of his property that are presently enjoyed by other similarly situated properties, but which rights are denied to the property on which the application is made; iii. Whether the granting of the variance on the specific property will adversely affect any other feature of the comprehensive master plan of the #*CLity; iv. Whether the variance, if granted, will be of no material detriment to the public welfare or injury to the use, enjoyment, or value of property in the vicinity; v. Whether the operations proposed are reasonable under the circumstances and conditions prevailing in the vicinity considering the particular location and the character of the improvements located there; vi. Whether the drilling of the maximum number of potential wells for the proposed drill site would conflict with the orderly growth and development of the %City; vii. Whether there are other alternative well site locations; viii. Whether the operations proposed are consistent with the health, safety and welfare of the public when and if conducted in accordance with the oil, gas, or combined well permit conditions to be imposed; ix. Whether the operations proposed are consistent with protecting the ecological integrity and environmental quality, including protection of surface and ground water sources, of potentially impacted environmentally sensitive areas; x. Whether there is reasonable access for tCi�t fire personnel and firefighting equipment, including the ability to safely evacuate potentially affected residents; xi. Whether the impact upon adjacent property4e,,i) and the general public by operations conducted in compliance with the o4_ gas; --mow � _ well permit conditions are reasonable and justified, balancing the following factors: 1. The reasonable use of the mineral estate by the mineral estate owner(s) to explore, develop, and produce the minerals; and 2. The availability of alternative drilling sites; and 2 xii. Where a variance is requested to reduce separation standards in 35.22.448A. 1, in addition to other relevant criteria, the extent to which owners of Protected Uses, or freshwater wells currently in use, E)r preN,ieusl- e plat4ed „r.a,_' �e ]^*e, —WT -° W- hi*a-bl° stFuetur °° have consented to the reduction in separation standards in writing. c. The Board of Adjustment shall determine whether to grant an extension of the expiration date for a Gas Well Development Site Plan or Gas Well Permit based upon whether there are circumstances reasonably beyond the control of the Operator, including any delay on the part of the City in issuing subsequent permits, that justify an extension of the Site Plan or Permit, in order that the Operator may enjoy the same rights in the use of the property that are presently enjoyed by other similarly situated properties, but which rights are denied to the property for which the Site Plan or Permit expires , d. The Board of Adjustment shall determine whether to errant an applicant's request 1 ( rr a special exception to limit the Conti 5uous leased area under consideration for a consolidation permit pursuant to Section 35.22.4, based on proof that such areas) is under separate mineral lease from the mineral lease that contains the roposed consolidated site; that the mineral lease cantainin� such consolidated site access a) ph be excluded and that there is no economically feasible means <,1' either obtainin(5 the lessor's consent to access the minerals from such areas) to be excluded from the r<aposed consolidated site or that the areas cannot be accessed throuuh point uperatinu agreements froin the proposed consolidated site "d'he Board in evaluatin 5 tl ecial exception ret ti nest may em luy experts to assist it in decidin(5 the special exception. The Board may approve a special exception 1 <rr a smaller area than requested b the ap licant. 2. The Board of Adjustment may reverse or affirm, in whole or in part, or modify the Oil and Gas Inspector's order, requirement, decision or determination from which an appeal is taken and make the correct order, requirement, decision or determination from which an appeal is taken and make the correct order, requirement, decision or determination. The Board of Adjustment may issue a variance to the applicant under the criteria referenced in Subsection A.l.b., and may grant a special exception under the criteria referenced in A.I.e. Any action under this subsection shall require a three- fourths majority vote of the entire Board of Adjustment. 3. Any Operator aggrieved by any decision of the Board of Adjustment may present to a court of record a petition, duly verified, stating that such decision is illegal, in whole or in part, and specifying the grounds of the alleged illegality. Such petition shall be presented within ten days after the date on which the decision of the Board of 3 Formatted: Border:: (No border) Formatted: incr2, Indent: Left: 0.75', Hanging: 0.25' Adjustment was rendered and not thereafter, and judicial review of the petition shall be pursuant to Texas Local Government Code, § 211.011, as amended. B. Watershed Permit Appeals. The applicant may appeal the denial or conditional approval of a Watershed Protection Permit on grounds pertaining to the standards in Subsection 35.22.5.E Formatted: Font: +Body gI) to the Planning and Zoning Commission within ten (10) calendar days of the decision by the DRC. In deciding the appeal, the Planning and Zoning Commission shall decide the appeal based upon the standards made applicable to the permit by Subsection. ^� 4-,+ �. ' 35.22.5.D. 2. The applicant may file a petition for review pursuant to Subsection^ ri -44 35.22.5.1) on grounds therein specified to the City Council within ten (10) calendar days of the decision by the Planning and Zoning Commission. The Council shall decide the petition based upon the criteria in Subsection, 35.22.5,. ^ .4 - &n4 ^ f). C. ' iet1 Vested Rights A X1,..1 "r 1. ev . ,rye 1 ` �C�C'ci`L�YG f°YiT' 2 eals. 1-. f�r�C4 �f�T.ef aw--4 ".- cirkf- �k1-C+- riri-',- 1= rc= raxm- a};"= nr1�s- -E3E- k�✓i311--t�3E",-(?i it.= iui-lrrc -,1,r ":Rfff; Formatted: Font: +Body f�:°°°i•! - r:; l':,,,, r: M- ii.° = r- �` t -°zrii°i-c;�, "crieirM-Yi114 -- �.x--sik$.' li�t� : 1�f'i1(�4 —(�fi trriic-icr, "erricekt-:ifi- MR 35.22.15. - Remedies of the City. A. If an Operator (or its officers, employees, agents, contractors, subcontractors or representatives) fails to comply with any requirement of a Gas Well Permit (including any requirement incorporated by reference as part of the Permit), the Fire Marshal or Oil and Gas Inspector may, in connection with or separate from 35.22.16, give written notice to the operator specifying the nature of the alleged failure and giving the Operator a reasonable time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. The Operator shall respond in writing within forty -eight (48) hours and indicate how the violation(s) shall be cured. In no event, however, shall the cure period be less than thirty (30) days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the operator's failure to provide periodic reports. The Fire Marshal may issue a Stop Work Order under the Fire Code. B. If the Operator does not cure the alleged failure within the time specified by the Fire Marshal and /or Oil and Gas Inspector, the Fire Marshal and/or Oil and Gas Inspector may notify the RRC and request that the RRC take appropriate action (with a copy of such notice provided to the operator), and the City may pursue any other remedy available. C. If the operator does not cure the alleged failure within the time specified by the Fire Marshal and /or Oil and Gas Inspector, the Oil and Gas Inspector may upon recommendation of the Health and Building Standards Commission 1. Recommend to the City Council that the Gas Well Permit be suspended until the alleged failure is cured; or, 2. Recommend to the City Council that the Gas Well Permit be revoked, if after prior suspension the Operator does not cure the alleged failure. D. The decision of the Fire Marshal and /or Oil and Gas Inspector to recommend suspension or revocation of a Gas Well Permit shall be provided to the Operator in writing at least ten (10) days before any action by the City Council unless the alleged failure present a risk of imminent destruction of property or injury to persons. E. If a Gas Well Permit is revoked, the Operator may submit information to the Oil and Gas Well Inspector evidencing that the alleged failure resulting in the revocation of the Gas Well Permit have been corrected, and an application for a new Gas Well Permit may be submitted for the same well. I Im I I -2I -I4 35.22.4-715. - Remedies of the City. A. If an Operator (or its officers, employees, agents, contractors, subcontractors or representatives) fails to comply with any requirement of a Gas Well Permit (including any requirement incorporated by reference as part of the Permit), the Fire Marshal or Oil and Gas Inspector may, in connection with or separate from 35.22.16, give written notice to the operator specifying the nature of the alleged failure and giving the Operator a reasonable time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. The Operator shall respond in writing within forty -eight (48) hours and indicate how the violation(s) shall be cured. In no event, however, shall the cure period be less than thirty (30) days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the operator's failure to provide periodic reports. The Fire Marshal ^r Oil and Gas hispeete may issue a Stop Work Order under the Fire Code. B. If the Operator does not cure the alleged failure within the time specified by the Fire Marshal and /or Oil and Gas Inspector, the Fire Marshal and/or Oil and Gas Inspector may notify the RRC and request that the RRC take appropriate action (with a copy of such notice provided to the operator), and the City may pursue any other remedy available. C. If the operator does not cure the alleged failure within the time specified by the Fire Marshal and /or Oil and Gas Inspector, the Oil and Gas Inspector may upon recommendation of the Health and Building Standards Commission 1. Recommend to the City Council that the Gas Well Permit be suspended until the alleged failure is cured; or, 2. Recommend to the City Council that the Gas Well Permit be revoked, if after prior suspension the Operator does not cure the alleged failure. D. The decision of the Fire Marshal and /or Oil and Gas Inspector to recommend suspension or revocation of a Gas Well Permit shall be provided to the Operator in writing at least ten (10) days before any action by the City Council unless the alleged failure present a risk of imminent destruction of property or injury to persons. E. If a Gas Well Permit is revoked, the Operator may submit information to the Oil and Gas Well Inspector evidencing that the alleged failure resulting in the revocation of the Gas Well Permit have been corrected, and an application for a new Gas Well Permit may be submitted for the same well. 35.22.16. - Enforcements, Right of Entry. A. The Fire Marshal and the Oil and Gas Inspector are authorized and directed to enforce this Subchapter and the provisions of any Gas Well Permit. Whenever necessary to enforce any provision of this Subchapter or a Gas Well Permit, or whenever there is reasonable cause to believe there has been a violation of this Subchapter or a Gas Well Permit, the Fire Marshal or Oil and Gas Inspector, may enter upon any property covered by this Subchapter or a Gas Well Permit at any reasonable time to inspect or perform any duty imposed by this Subchapter. If entry is refused, the City shall have recourse to every remedy provided by law and equity to gain entry. B. It shall be unlawful and an offense for any person to do the following: 1. Engage in any activity not permitted by the terms of a Gas Well Permit issued under this Subchapter; 2. Fail to comply with any conditions set forth in a Gas Well Permit issued under this Subchapter; or 3. Violate any provision or requirement set forth under this Subchapter. C. The enforcement and penalty provision under Subsection 35.1.10.4 shall apply to a violation of this Subchapter. D. The Oil and Gas Inspector is authorized to issue citations into municipal court for violations of this Subchapter or Gas Well Permit. E. The City may also notify the EPA, TCEQ, RRC or other applicable federal or state agency in connection with violations of this Subchapter. 1 35.22.4-816. 16. - Enforcements, Right of Entry. A. The Fire Marshal and the Oil and Gas Inspector are authorized and directed to enforce this Subchapter and the provisions of any Gas Well Permit. Whenever necessary to enforce any provision of this Subchapter or a Gas Well Permit, or whenever there is reasonable cause to believe there has been a violation of this Subchapter or a Gas Well Permit, the Fire Marshal or Oil and Gas Inspector, may enter upon any property covered by this Subchapter or a Gas Well Permit at any reasonable time to inspect or perform any duty imposed by this Subchapter. If entry is refused, the City shall have recourse to every remedy provided by law and equity to gain entry. B. It shall be unlawful and an offense for any person to do the following: 1. Engage in any activity not permitted by the terms of a Gas Well Permit issued under this Subchapter; 2. Fail to comply with any conditions set forth in a Gas Well Permit issued under this Subchapter; or 3. Violate any provision or requirement set forth under this Subchapter. C. The enforcement and penalty provision under Subsection 35.1.10.4 shall apply to a violation of this Subchapter. D. The Fife M,,, sha Oil and Gas Inspector is authorized to issue citations into municipal court for violations of this Subchapter or Gas Well Permit. E. The City may also notify the EPA, TCEQ, RRC or other applicable federal or state agency in connection with violations of this Subchapter. Exhibit 3 SECTION 35.7.16 Gas Well Combining District 35.7.16.1. Purpose, Applicability and Nature of Combining District. A. Purpose. The purpose of the Gas Well Combining District is to assure compatibility between gas well development and residential, commercial and industrial developments within the corporate limits of the City by requiring consolidation of gas well Drilling and Production activities within areas that present the least conflicts between existing and future surface developments, on the one hand, and gas well development on the other, with the objective of establishing one gas well Drilling and Production Site per square mile. The Combining District is intended to reduce to the maximum extent possible the deleterious impacts arising from gas well development to other types of surface developments within proximity to gas well drilling and production activities, while providing mineral owners with reasonable access to mineral resources through development of the surface. The District is also intended to promote the existing and future economic development of the City and to promote the health, safety and general welfare of the City's residents and employees. B. Applicability. No gas well development may be undertaken on a new Drilling and Production Site unless such activities have been authorized by approval of a Gas Well Combining District. A Gas Well Combining District may also be approved for the purpose of designating an existing Drilling and Production Site as a consolidated site. All new Drilling and Production Sites to be established within an existing PD or MPC Zoning District shall be approved as a Gas Well Combining District pursuant to the standards and procedures of this Section. C. Nature of Combining District. The Gas Well Combining District shall be considered an overlay zoning district that combines with any base zoning district, or with a proposal to initially zone or rezone land within the City. Establishment of a Combining District shall be by ordinance and shall be considered a zoning map amendment, shall be defined on the City's Official Zoning Map, and shall be processed as a zoning district amendment. Each Combining District shall designate a Drilling and Production Site for consolidation of all future gas well development within the District, the "consolidated site." D. Terms. The terms used in this Section incorporate the definitions of terms in Subchapter 35.22. 35.7.16.2. Uses Permitted Within Combining District. Only gas well drilling and production activities and uses incidental thereto are authorized within Drilling and Production Sites within a Gas Well Combining District. Within all other areas of the Combining District, only the uses authorized by the base zoning district(s) are authorized. Upon termination of the Combining District, the regulations of the base zoning district shall remain in effect for all of the land within the former Combining District. 35.7.16.3 Size of Combining District and Number of Wells Allowed. A. Area of District. The minimum area permitted for a Gas Well Combining District shall be eighty (80) acres, unless the applicant can demonstrate the necessity for utilizing a smaller area. Not more than one Drilling and Production Site shall be allowed per eighty (80) acres. All contiguous areas subject to mineral leases owned or controlled by the applicant shall be included within the proposed Combining District, unless the applicant can demonstrate the necessity for utilizing s smaller area. B. Number of Gas Wells. It is the intent of the Combining District regulations to consolidate as many gas wells on a single Drilling and Production Site as is feasible. The number of proposed gas wells authorized for a consolidated site shall be determined by computing one (1) gas well for every twenty (20) acres included within the Combining District. 35.7.16.4 Criteria for Establishing Combining District. In determining whether a Gas Well Combining District should be established, the Planning and Zoning Commission in reporting and recommending action, and the City Council in deciding the application, shall determine whether the location of the proposed Combining District, with or without conditions, best minimizes the deleterious impacts of existing and future gas well development on existing and planned future residential, commercial and industrial development within and adjacent to the Combining District, taking into consideration the following criteria: 1. The current base zoning district classification(s) for the proposed Combining District and the compatibility of gas well development with uses authorized within such classification(s); 2. The compatibility of the proposed Drilling and Production Site with other existing and authorized surface developments; 3. The location of existing Drilling and Production Sites within the proposed Combining District or within one half -mile of the proposed consolidated site, which are under the control of the applicant; 4. The location of other Combining Districts or consolidated sites within one -half mile of the proposed consolidated site; 5. The extent to which the proposed consolidated site adversely affects watersheds and floodplains; PJ 6. The proposed location of roads for access to the proposed consolidated site and the effects on existing and future surface development within the District; 7. The location of existing and proposed pipelines and water lines to serve the proposed consolidated site and the anticipated effects of such facilities on other surface developments within the proposed Combining District; 8. The extent of contiguous mineral leases held or under the control of the applicant; and 9. The limitations on the applicant's ability to reasonably access the minerals it owns or leases without utilizing the proposed consolidated site. 35.7.16.5. Contents of Combining District Ordinance. The Ordinance approving the Gas Well Combining District shall identify the following: 1. The boundaries of each base zoning district that underlies the Combining District; 2. The boundaries of the District; 3. Identification of the consolidated site and each existing Drilling and Production Site within the Combining District by metes and bounds description; 4. A Combining District Plan showing the following: a. The location of the consolidated site and each existing Drilling and production site within the district; b. The location of the road(s) approved for access to each Drilling and Production Site; C. The reverse set -backs from the consolidated site and each existing Drilling and Production Site. 5. Requirements for public facilities to serve the Drilling and Production Site, including provision for improvements to the road network serving the consolidated site, if any; 6. Any conditions applicable to the gas well drilling and production activities within the Combining District; 7. The number of approved gas wells to be transferred, if any, from existing Drilling and Production Sites within or outside the District to the consolidated site; 3 The limitations on gas well development within all other existing Drilling and Production Sites within the District, including without limitation vacation of prior approved gas well development plats or site plans; and 9. Specification of reverse set -backs from the consolidated site and each existing Drilling and Production Site within the District, if different from those required by Subchapter 35.22. 35.7.16.6 Options and Conditions. In deciding the application, the Council may provide for any of the following: Designation of a different consolidated site than that proposed by the applicant if it better meets the purposes of the Combining District; 2. Designation of different boundaries for the Combining District than proposed by the applicant; Authorization for the transfer of approved gas wells to be transferred from existing drilling and production sites within or outside the District to the consolidated site, provided that the existing sites are restricted from new gas well development. 4. Imposition of such conditions on gas well drilling and production activities within the Combining District as are necessary to implement the purposes of the District, including the imposition of restrictions on development of new gas wells on other drilling and production sites under the control of the applicant and located within one -half mile of the consolidated site; and Designation of an existing drilling and production site as the consolidated site. 35.7.16.7 Effect of Approval of Combining District. Following approval of a Gas Well Combining District, the following rules shall apply within the District. These rules shall not be varied without amendment of the Combining District Ordinance. All gas well development shall be conducted solely within the consolidated site or within existing Drilling and Production Site(s) consistent with the terms of the Combining District Ordinance. All other areas within the Combining District shall be reserved for development of uses authorized in the base zoning district(s). 2. Road access to the drilling and production activities shall be solely upon roads designated for such purposes. 0 3. No other Drilling and Production Sites may be created within the boundaries of the Combining District. 4. Unless different reverse set -backs are specified in the Combining District Ordinance, no Protected Use may be located within 600 feet of the boundaries of the consolidated site, nor within 300 feet of any other existing Drilling and Production Site within the District. No other habitable structures may be located within 500 feet of the boundaries of the consolidated site. 5. All subsequent gas well development within the Combining District shall be in accordance with the standards and procedures contained within this Subchapter 35.22 and shall be in compliance with any conditions made applicable to such development within the District. 6. The separation distances in Section 35.22.8.A.1 shall not apply to gas well development on the consolidated site. 7. No more than thirty -two gas wells may be developed on a consolidated site within a one -mile square area. 8. All gas well development within the Combining District shall be approved and completed pursuant to the procedures and subject to the standards set forth in Subchapter 35.22. 35.7.16.8 Application Requirements. The applicant for a Gas Well Combining District shall be the mineral owner or lessee(s) of the land for which application is made. The application requirements for a consolidation permit set forth in Section 35.22.4.0 shall apply to a request to establish a Gas Well Combining District. In addition, the applicant shall include the following: 1. Proof of notice to each surface owner within the proposed boundaries of the District; 2. The proposed boundaries of the Combining District; 3. Written verification of the application; 4. Identification of the boundaries of each base zoning district within the proposed combining district; and 5. A draft Combining District Plan containing the elements described in Section 35.22.7.16.5(4). 35.7.16.9. Amendments. A. Following approval of a Final Gas Well Development Site Plan pursuant to Subchapter 35.22, the boundaries of the consolidated site designated in the Combining District Ordinance shall be deemed amended to include such area, without the necessity of amending the Combining District, provided that such boundaries are consistent with the Combining District Plan and are necessary only to accommodate the proper layout of the drilling and production facilities to be included within the consolidated site. B. All other changes to the location of the consolidated site or the number of wells contained therein shall require amendment of the Combining District. Any proposed amendment to an approved Final Gas Well Development Site Plan or development plat that is submitted for the purposes of relocating the boundaries of the consolidated site or existing Drilling and Production Site within the District shall be processed as a request for amendment of the Combining District. 35.7.16.10 Expiration of Authorization to Develop Gas Wells within Combining District. The authorization to develop gas wells within a Gas Well Combining District on the consolidated site shall be suspended (i) if no application for a Preliminary Gas Well Development Site Plan has been submitted within two years of the date of approval of the District, or (ii) within 5 years, if all site plan and permit applications have expired and no gas well has been established on the site. The Planning and Zoning Commission shall recommend and the Council shall decide whether the Combining District should be removed from the property, or whether the authorization to develop gas wells on the consolidated site should be reinstated with or without conditions. 35.7.16.11 Application for Designation of Existing Drilling and Production Site. A. The mineral owner or lessee may request rezoning of a tract containing one or more approved gas well drilling and production sites to a Gas Well Combining District in order to consolidate gas wells on a Drilling and Production Site that meets the standards of this Section. B. The mineral owner or lessee of an approved Drilling and Production Site within an existing PD or MPD zoning district or of such site approved pursuant to a Specific Use Permit may apply to convert such Drilling and Production Site and associated land to a Gas Well Combining District. C. Upon approval of a Gas Well Combining District designating an existing Drilling and Production Site as a consolidated site, all rules contained in subsection 35.7.16.7 shall apply, except as otherwise set forth in the ordinance establishing the Combining District. 11 Exhibit 4 Amend Subchapter 35.16.7. Lots, Access and Common Areas as follows: A. Amend the catchline for Subchapter 35.16.7, which currently reads as, "Lots, Access and Common Areas. ", to read as follows: "Lots, Access, Common Areas and Gas Well Notification Disclosure." B. Amend Section 35.16.7, Lots, Access and Common Areas, to include new Sections 35.16.7.E., which shall read as follows: E. Gas Well Notification Disclosure. A Plat that proposes single- or multi - family residential lots that will be within 1,200 feet of one or more gas well pad sites, except for those gas well pad sites and their subsurface mineral interests which are eliminated through plugging and abandonment, the Developer shall be required to provide all of the following disclosure notifications to all lot purchasers: 1. A note shall be placed on the Plat identifying the gas well pad site(s) and those proposed lots that are within 1,200 feet of the gas well pad site(s). Said note shall also include a statement that advises lot purchasers of the existence of producing wells on the gas well pad site(s), the possibility of new wells that may be drilled and fracture stimulated on the gas well pad site(s), as well as the possibility that gas wells on the gas well pad site(s) may be re- drilled and /or re- fracture stimulated in the future. 2. There shall be depicted on the Plat, or in a separate map, the location of the gas well pad site(s) in relation to the lots that are within 1,200 feet of a gas well pad site(s). 3. A provision shall be included in the Declaration of Restrictive Covenants that advises lot purchasers of the existence of producing wells on the gas well pad site(s), the possibility that new wells may be drilled and fracture stimulated on the gas well pad site(s), as well as the possibility that gas wells on the gas well pad site(s) may be re- drilled and /or re- fracture stimulated in the future. 4. A Notice document that advises lot purchasers of the existence of producing wells on the gas well pad site(s), the possibility that new wells may be drilled and fracture stimulated on the gas well pad site(s), as well as the possibility that gas wells on the gas well pad site(s) may be re- drilled and/or re- fracture stimulated in the future, shall be recorded with the Denton County Clerk's Office. The form of the disclosure notifications required in subsections E.3. and E.4. shall be approved by the City Attorney. Exhibit 5 Zoning Amendments to Section 35.5 Amend Subchapter 35.5, Zoning Districts and Limitations, as follows: A. Amend Section 35.5.1, Rural Districts, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2, for the industrial land use category "Gas Wells B. Amend Section 35.5.2, Neighborhood /Residential, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2, for the industrial land use category "Gas Wells," and delete the "SUP" designation for the NR -3, NR -4, NR -6, NRMU -12 and NRMU districts for the same category. C. Amend Section 35.5.3, Downtown Diversity Core, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2. for the industrial land use category "Gas Wells," and delete the "SUP" designation for the DR -1, DR -2, DC -N and DC -G districts for the same category. D. Amend Section 35.5.4 Community Mixed Use Centers, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2, for the industrial land use category "Gas Wells," and delete the "SUP" designation for the CM -G and CM -E districts for the same category. E. Amend Section 35.5.5 Regional Mixed Use Centers, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2, for the industrial land use category "Gas Wells" and delete the "SUP" designation for the RCR -1 and RCR -2 districts for the same category. F. Amend Section 35.5.6, Employment Centers, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2, for the industrial land use category "Gas Wells." G. Amend Section 35.5.7, Industrial Centers, subsection 2, Permitted Uses, by substituting the term "Gas Well Development," as defined in Section 35.22.2, for the industrial land use category "Gas Wells." H. Amend Section 35.5.8, Limitations, L (27), to read: "L (27) = Gas well development on new gas well drilling and production sites must be authorized through approval of a Gas Well Combining District pursuant to Section 35.7.16. Gas well development on existing drilling and production sites requires approval of a consolidation permit pursuant to Section 35.22.4. All gas well development is subject to compliance with Subchapter 35.22, Gas Well Drilling and Production." Exhibit 6 NEW OIL AND GAS PIPELINE ORDINANCE Amend Chapter 35 of the DDC to include new Subchapter 35.22A, "Oil and Gas Pipelines ", which shall read in its entirety as follows: Sec. 35.22A.1 - Purpose. The exploration, development, and production of oil and gas in the City of Denton are activities that necessitate reasonable regulation to ensure that all property owners, mineral and otherwise, have the right to enjoy their property and its benefits and revenues while at the same time protecting the City's citizens and others from risks associated with such activities. It is hereby declared to be the purpose of this subchapter to establish reasonable and uniform limitations, safeguards, and regulations for present and future operations related to transporting oil and gas and other substances which are produced in association with oil and gas, within the corporate limits of the City, and to the extent allowed or as may be allowed by state law, the extraterritorial jurisdiction, and to protect the health, safety and general welfare of the public; minimize the potential impact to property and persons; protect the quality of the environment; and encourage the safe and orderly transport of oil and gas resources. Sec. 35.22A.2 - Definitions. All technical and industry words and phrases related to the oil and gas pipelines related to transporting oil and gas and other substances which are produced in connection with oil and gas drilling and production activities not specifically defined shall have the meanings attributable thereto: (1) by other applicable definitions within the DDC; and (2) if not defined by the DDC, then the meaning customarily attributable to by prudent operators in the oil and gas industry. City regulated pipelines means those pipelines within the City that under federal and state rules and regulations are not exempt from City regulations and articles regarding mapping, inventorying, locating or relocating of pipelines, including, but not limited to, pipelines over, under, along, or across a public street or alley, pipelines from the well to the first point of custody transfer or in private residential areas within the boundaries of the City. Pipeline means all parts of those physical facilities through which gas, hazardous liquids, fresh water, salt water, or chemicals move in transportation, including but limited to, pipe, valves and other appurtenance attached to pipe, whether or not laid in public or private easement or public or private right -of -way within the City, including but not limited to gathering lines, production lines and transmission lines. This definition does not include pipelines associated with franchise utilities. Pipeline construction means the initiation of any excavation or other disturbance of property for the purpose of installation, construction, maintenance, repair, replacement, modification or removal of a pipeline. Pipeline or well emergency means a pipeline or well incident that is required to be reported to the RRC, the TCEQ, or any federal, state, or local regulatory agency. Pipeline permit means a permit for the movement of gas, oil, water or other products. Pipeline operator means any person owning, operating or responsible for operating a pipeline. Sec. 35.22A.3 - Oil and gas pipelines technical and permitting regulations. A. General regulations. 1. As determined in the sole, but reasonable, discretion of the City, pipelines may not interfere with or damage existing utilities, including but not limited to: water, sewer or gas lines, storm drains, electric lines or the facilities of any public utilities located in public rights -of -way, utility easements or other City -owned property or in private residential areas. 2. The pipeline operator shall be responsible to grade, level and restore the property affected by pipeline construction to the same surface condition, as nearly practicable, as existed before operations were first commenced within thirty (30) days after completion of the pipeline. 3. The pipeline operator shall construct, repair and /or maintain all pipelines so as to meet or exceed the applicable minimum criteria established by the statutory or regulatory requirements of the state and federal governments for such pipeline. 4. At least ten (10) days prior to the commencement of any pipeline construction, the pipeline operator shall give written mailed notice to all residents, tenants and property owners that are located adjacent to the proposed pipeline. The mailing shall include the operator's publication on pipeline safety. 5. At the time the required pipeline records are submitted to the railroad commission, the pipeline operator shall provide the Department the following information, including GPS information sufficient to locate the pipelines in the future, including the beginning and end points of the pipeline and sufficient points in between the pipeline route and the depth of cover information. This information shall be submitted to the Department in a format compatible with the Department's own GIS system. a. As -built or record drawings of the pipelines. Accuracy of the record drawings shall meet a survey level of one (1) foot to fifty thousand (50,000) feet. The scale of the record drawings shall be a minimum of one (1) inch to forty (40) feet. The drawings shall also be supplied in a digital file format with the location tied to at least one (1) nearby GPS (global positioning system) City monument. If the new pipeline length exceeds one thousand (1,000) feet within the City, the pipeline shall be tied to at least two (2) GPS City monuments; b. The origin point and the destination of the pipeline; c. The substance to be transported; d. A copy of the substance material safety data sheet (MSDS); e. Engineering plans, drawings and /or maps with summarized specifications showing the horizontal location, covering depths, and location of shutoff valves of the subject pipeline. Drawings shall show the location of other pipelines and utilities that are crossed or paralleled within fifteen (15) feet of the pipeline right -of -way; f. Detailed cross - section drawings for all public rights -of -ways and easement crossings on City property as permitted by the City; and g. A list of the names and mailing addresses of all the property owners, residents and tenants adjacent to the pipeline construction. 6. A pipeline operator that transports gas, oil, liquids or hydrocarbons through a pipeline located in the City shall be a member in good standing with the one call system or other approved excavation monitoring system as required by state law. The pipeline operator that transports gas, oil, liquids or hydrocarbons through a pipeline shall contract for service with the selected underground utility coordinating system for a minimum of five (5) years unless there is an agreement to change to an alternate system between the City and the pipeline operator. Said pipeline operator shall maintain such services without interruption for the life of the pipeline permit and as required under this section. 7. At the time of permitting and each year thereafter that the pipeline remains active, each pipeline operator shall provide to the Oil and Gas inspector, the Fire Marshal and the Chief of Police the names, mailing addresses and telephone numbers of at least two (2) primary persons, officers or contacts available on a twenty -four (24) hour basis and at least two (2) alternative persons, officers or contacts to be reached in the event that the primary contacts are unavailable who: a. Can initiate appropriate actions to respond to an emergency; b. Have access to information on the location of the closest shutoff valve to any specific point in the City; and c. Can furnish the common name of the material then being carried by the pipeline Any change in the above information must be provided to the City by contacting the gas inspector prior to such change. 8. Each pipeline operator shall file a copy of all initial or follow -up reports provided to the U.S. Department of Transportation or the RRC on unsafe pipeline conditions, pipeline emergencies or pipeline incidents within the City concurrently with the City. In addition, such pipeline operator shall file any initial or follow -up reports filed with state and federal environmental regulatory agencies pertaining to pipeline releases within the City concurrently with the City. 9. Every pipeline operator shall be required to file with the Department an annual verified report in letter form on or before June 30 of each year to cover a reporting period of the previous June 1 through May 31. Said written report shall contain a statement that the pipeline has no outstanding safety violations within the City as determined in an inspection or audit by either the RRC and /or the U.S. Department of Transportation with regard to any pipeline operating within the City. Alternatively, if there are any safety violations as determined by the RRC and /or the U.S. Department of Transportation that have not been corrected, these shall be described to the City with an action plan to correct the safety violations. Said action plan shall include a timeline for corrective action and the individual or firm responsible for each action. B. City regulated pipelines - peg snit required. 1. City regulated pipelines shall adhere to all standards outlined in section A. Federal and state statutory or regulatory requirements shall apply to pipelines between the well and the point of custody transfer. Prior to the transport of gas, oil, liquids or hydrocarbons, the operator shall provide to the Department certification from a professional engineer registered with the State of Texas that the design and installation of the pipelines meet all state and federal requirements. 2. Prior to pipeline construction and the issuance of notice required in section A.4, a pipeline operator shall obtain a pipeline permit from the City for all City regulated pipelines. Exceptions to this permitting requirement are those pipelines from the well to the first point of custody transfer and for construction necessary to respond to a pipeline emergency. 3. At the same time the operator submits a Gas Well Permit application, the operator shall require the pipeline operator to submit a proposed pipeline route from the well bore to the transmission line, for all City regulated pipelines. 4. The pipeline operator shall be required to submit an application for a pipeline permit to the Department prior to making any offer or initiating any negotiation or action to acquire any easement or other property right to construct, install, maintain, repair, replace, modify, remove or operate a pipeline in private residential areas. 5. The pipeline operator shall backfill all trenches and compact such trenches to ninety -five (959) percent standard density proctor in eight -inch lifts and construct the Pipeline so as to maintain a minimum depth of ten (10) feet below the finished grade except in public rights -of- way, where minimum cover to the top of the pipe shall be at the discretion of the Department based on existing or planned utilities. During the backfill of any pipeline excavations in open cut sections, the pipeline operator shall bury "buried pipeline" warning tape one (1) foot above any such pipeline to warn future excavators of the presence of a buried pipeline. The gas inspector may also require that a proposed or existing pipeline be relocated should it conflict with the proposed alignment and depth of a gravity dependent utility. 6. The pipeline operator shall equip all City regulated pipelines with an automated pressure monitoring system that detects leaks and shuts off any line or any section of line that develops a leak. In lieu of such system, the pipeline operator may have twenty -four (24) hour pressure monitoring of the pipeline system which provides monitoring of the pipeline within the City limits. 7. Review by the gas drilling review committee for all proposed pipelines through private residential areas shall be required prior to the issuance of a permit for the commencement of pipeline construction. 8. A pipeline permit application shall be required as follows: a. Applications for a City regulated pipeline or other activities regulated by this subsection shall be submitted to the Department in a form prescribed by the Department. b. Plans submitted with each application for a pipeline permit shall be in a format approved by the Department showing the dimensions and locations of the pipeline and related items or facilities, as well as all proposed lift stations, pumps or other service structures related to such pipeline and the location, type and size of all existing utilities, drainage, right -of -way and roadway improvements. The plans must additionally show the elevation and location of all known public utilities within fifteen (15) feet of the centerline of the proposed pipeline. Any application that fails to meet these requirements will be returned unfiled to the applicant. c. The following information shall be provided in the application: i. The name, business addresses and telephone numbers of the pipeline operator; ii. The names, titles and telephone numbers of the following: a. The person signing the application on behalf of the pipeline operator; b. The person designated as the principal contact for the submittal; and c. The person designated as the twenty -four (24) hour emergency contact; iii. The origin point and the destination of the proposed subject pipeline; iv. A text description of the general location of the proposed subject pipeline v. A description of the substance to be transported through the proposed subject pipeline; vi. A copy of the substance material safety data sheet (MSDS); vii. Engineering plans, drawings and /or maps with summarized specifications showing the horizontal location, covering depths and location of shutoff valves of the proposed subject pipeline. To the extent that information can be obtained, drawings shall show the location of other pipelines and utilities that will be crossed or paralleled within fifteen (15) feet of the proposed subject pipeline right -of -way; viii. A description of the consideration given to matters of public safety and the avoidance, as far as practicable, of existing habitable structures and private residential areas; ix. Detailed cross section drawings for all public street right -of -way and easement crossings; x. The proposed method or methods to be used for the installation of the pipeline; xi. Methods to be used to prevent both internal and external corrosion; xii. A binder or certificates of all bonds and insurance; and xiii. A proposed alignment strip map showing name and address of all affected property owners. C. Development Review Coininittee (DRC). 1. After the filing of an administratively complete application, the DRC shall review all applications for pipelines located in a private residential area. For other pipeline locations, an administrative conference may be conducted to seek resolution of any substantive, non - resolvable technical issues. If deemed necessary by the City, a third -party technical advisor may be employed. The costs associated with the technical advisor shall be borne by the pipeline operator. Any recommendation by the DRC to the Department is final. 2. If the DRC determines that the City should obtain an independent study or analysis of an application to construct a new pipeline, upon approval by the City Council, the City shall engage duly qualified independent consultant(s) or contractor(s) to conduct such special studies or analyses as required to fully evaluate and to act upon an application for a new pipeline. The actual cost for said consultant or contractor, including the cost of any inspections deemed necessary by the DRC or otherwise required, shall be paid by the pipeline operator. D. Pipeline info ination reporting requireinents. If the pipeline operator has no reporting responsibility to the RRC or the U.S. Department of Transportation and is otherwise exempt from the safety regulations of either of such agencies, the following documents pertaining to the preceding reporting period of June 1 through May 31 shall be furnished to the Department: 1. Copies of internal reports of responses to pipeline emergencies; 2. Current operations and maintenance logs; and 3. Current emergency response plan. E. Abandoned pipelines. 1. All pipelines shall be maintained in an active condition unless abandoned according to applicable state and federal regulations. The pipeline operator shall notify the Department within thirty (30) days of abandonment of any pipeline. 2. Reactivation of abandoned pipelines shall require notification to the Department pursuant to the standards and requirements specified in section 35.22.A.3. Reactivation shall require pressure testing for integrity and compliance with RRC and /or United States Department of Transportation regulations. F. Einergency response plans and einergency incident reporting. 1. Each pipeline operator shall maintain written procedures to minimize the hazards resulting from an emergency. These procedures shall at a minimum provide for the following: a. Prompt and effective response to emergencies, including but not limited to the following: i. Leaks or releases that can impact public health safety or welfare; ii. Fire or explosions at or in the vicinity of a pipeline or pipeline easement; and iii. Natural disaster; iv. Effective means to notify and communicate required and pertinent information to local fire, police and public officials during an emergency; v. The availability of personnel, equipment, tools and materials as necessary at the scene of an emergency; vi. Measures to be taken to reduce public exposure to injury and probability of accidental death or dismemberment; vii. Emergency shut down and pressure reduction of a pipeline; viii. The safe restoration of service following an emergency or incident; and ix. A follow -up incident investigation to determine the cause of the incident and require the implementation of corrective measures. 2. Upon discovery of a pipeline emergency or incident, any affected pipeline operator shall as soon as practical communicate to the City's 911 system the following information: a. A general description of the emergency or incident; b. The location of the emergency or incident; c. The name and telephone number of the person reporting the emergency or incident; d. The name of the pipeline operator; e. Whether or not any hazardous material is involved and identification of the hazardous material so involved; and f Any other information as requested by the emergency dispatcher or other such official at the time of reporting the emergency or incident. G. Pipeline repairs and maintenance. 1. All repairs and maintenance of pipelines are to be performed in accordance with U.S. Department of Transportation and RRC mechanical integrity requirements. 2. If non - emergency repairs necessitate excavation of a pipeline, the pipeline operator shall send notification to occupants of business establishments and residential dwellings located adjacent to the pipeline to be excavated at least five (5) days prior to commencing such repairs. 3. If above - ground non - emergency repairs that are not routine maintenance are required, the pipeline operator shall send notification to occupants of businesses and residential dwellings located within five hundred (500) feet from the centerline of the pipeline section to be repaired at least five (5) days prior to commencing such repairs. 4. The notice required in subsections (2) and (3) of this section shall be sent by U.S. regular mail, postage prepaid mailed at least five (5) days prior to commencing any non - emergency repair; provided, however, that the pipeline operator may use hand delivery notice as an alternative, at the pipeline operator's discretion. 5. Inspection of the interior of all regulated pipelines shall comply with United States Department of Transportation and RRC rules. H. Protection and painting of structures. A pipeline operator shall keep protected and painted all pipeline risers and all appurtenances related to pipeline construction and operations which are composed of materials which are generally protected or painted. Such operator shall repaint all such items at sufficiently frequent intervals to maintain same in good condition. It shall be a violation of this article for any pipeline operator to permit any pipeline riser and /or appurtenances related to pipeline construction and operations to be in a state of disrepair or to have chipped, peeling or unpainted portions. L No implied grant of use of public rights -of -way, utility easements or other City- owned property. Nothing in this subsection grants permission for the use of any street, public rights -of- way, utility easements, or City -owned property. In the event a pipeline operator wishes to undertake any pipeline construction on, over, under, along, or across any public rights -of -way, utility easements or other City -owned property, the pipeline operator shall apply for and execute a written agreement with the City governing the terms and conditions for such use; obtain all required permits and comply with any other applicable provisions of the DDC. J. Expiration of pipeline peg init. If construction of a pipeline has not commenced within one (1) year of the date of issuance of the pipeline permit, or if the pipeline has not been completed and the surface restored within two (2) years, the pipeline permit shall expire; provided, however, that the Director may grant an extension of time not to exceed an additional one (1) year if the D determines that weather or other unexpected physical conditions justify such an extension. K. No assumption of responsibility by City. Nothing in this subsection shall be construed as an assumption by the City of any responsibility of a pipeline operator of a pipeline not owned by the City. L. It is the joint and several responsibility of the owner and the pipeline operator of any and all pipeline to maintain the markers in accordance with this article. The location of all new or replacement pipe and pipelines shall be marked by the owner(s) thereof or by the person installing or operating such pipelines as follows: 1. Marker signs shall be placed at all locations where pipe or pipelines cross property boundary lines and at each side of a public street or road right -of -way which the pipe or pipeline crosses; 2. The top of all marker signs shall be a minimum of four (4) feet above ground level, and the support post must be sufficient to support the marker sign and shall be painted yellow or such other color as may be approved by the director of transportation and public works or his designee; 3. All marker signs shall be a minimum of twelve (12) inches square and shall be marked as "gas pipe line;" 4. All marker signs shall contain the name of the owner and operator of the pipeline and a twenty- four -hour local contact number; 5. Pipelines shall be marked along their entire length with a buried metal wire and metallic flag tape; 6. All signs shall also contain an 811 designation "Call Before You Dig" statement; and 7. The pipeline operator shall annually replace signage that has been lost, damaged or removed. M. Annually, all pipeline operators will provide affected landowners, public official and emergency providers with appropriate public awareness information as outlined in API 1162. o:A2014 gas well ordinance ainendinents \ainendinent to ordinance 2013 -248 to add penalty and interest to gas well fees -clean 12- 8- 14.docx Exhibit 7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ORDINANCE NO. 2013 -248 RELATING TO PLANNING AND DEVELOPMENT FEES AS IT CONCERNS GAS WELL DRILLING AND PRODUCTION IN THE CITY OF DENTON AND ITS EXTRATERRITORIAL JURISDICTION, AND ROAD DAMAGE REMEDIATION FEE CALCULATIONS DUE TO DAMAGE TO CITY OF DENTON ROADWAYS FROM GAS WELL DRILLING AND PRODUCTION ACTIVITIES IN THE CITY; ADDING PRODUCTION MONITORING FEES; AND SETTING AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 2013 -248, the City Council of the City of Denton, Texas established certain fees related to gas well drilling and production in the City of Denton and the extra - territorial jurisdiction of the City, and also established a formula for the calculation of road damage remediation fees in the interest of recovering costs associated with damage to city roadways from gas well drilling and production activities; and WHEREAS, the City Council deems it in the public interest to authorize the assessment of penalties and interest in the event the fees authorized in Ordinance No. 2013 -248 and the Denton Development Code, Subchapter 22 are not timely remitted to the City; and WHEREAS, the City Council further deems it in the public interest to assess production monitoring fees incurred by the City in retaining any third party consultant to monitor the function of all equipment that may lead to fugitive emissions; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and found to be true. SECTION 2. The fifth preamble paragraph in Ordinance No. 2013 -248 is amended to strike the words "enter into a Road Damage Remediation Agreement" and substitute therefor the words "pay Road Damage Remediation Fees." SECTION 3. The seventh preamble paragraph in Ordinance No. 2013 -248 is amended to strike the words "Road Damage Remediation Agreement" and substitute therefor the words "Road Damage Remediation Fees." SECTION 4. Ordinance No. 2013 -248 is amended to add a new Section 4 as follows: "Production monitoring fees incurred by the City in retaining any third party consultant to monitor the function of all equipment that may lead to fugitive emissions is hereby adopted. Calculations for such fees are set forth in Exhibit `B." SECTION 5. Ordinance No. 2013 -248 is hereby amended to add a new Section 5 as follows: "Development fees are due and owing at the time of application and delinquent if not o:A2014 gas well ordinance ainendinents \ainendinent to ordinance 2013 -248 to add penalty and interest to gas well fees -clean 12- 8- 14.docx paid at that time. Inspection fees and production monitoring fees are due and owing on or before the 3oth day following any inspection, are delinquent thereafter, and will be billed to the operator of record. Road Remediation Fees are due and owing at the time the operator of record notices the City of intent to perform any activities specified in Subchapter 22 of the Denton Development Code; or, in the event of failure to notice the City of activities specified in Subchapter 22 of the Denton Development Code, at the time the operator embarks upon such specified activities, and are delinquent thereafter. To cover a portion of the administrative costs of collecting past due balances, a late payment charge of $20.00 shall be assessed on the fifth business day following the due date. Furthermore, interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of each monthly billing calculation. The interest provided for and assessed shall be due and payable on the due date of the month's billing statement. The interest charge shall be 1% per month on all past due charges and account balances unpaid at the time of the succeeding month's billing calculations; however, the interest charge provided for herein shall not exceed the legal rate of interest, and the City intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate." SECTION 6. Sections 4 and 5 of Ordinance 2013 -248 are respectively renumbered to Section 5 and Section 6. SECTION 7. This ordinance shall become effective immediately. PASSED AND APPROVED this, the day of 12014. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY CHRIS WATTS, MAYOR Page 2 o:A2014 gas well ordinance ainendinents \ainendinent to ordinance 2013 -248 to add penalty and interest to gas well fees -clean 12- 8- 14.docx EXHIBIT `B" PRODUCTION MONITORING FEES Production Monitoring Fees shall be assessed under the following criteria: Priority High Moderate Frequency of Pad Site Inspections Location of Pad Site- 250 feet or less from Protected Uses more than 250 feet, less than 1200 feet Low Priority more than 1200 feet Quarterly Bi- Annually Annually 0 Separation distances shall be measured from the boundary of the Drilling and Production Site identified on the: (1) Gas Well Development Plat or Site Plan or (2) Final Gas Well Site Plan; in a straight line, without regard to intervening structures or objects, to: i. the closest exterior point of any structure occupied by a Protected Use; ii. any lot line of an undeveloped lot(s) in a City- approved platted residential subdivision; iii. any lot line in a residential subdivision plat that proposes to encroach upon an existing Drilling and Production Site; or iv. a freshwater well currently in use at the time a complete application for a gas well development [preliminary ?] site plan is filed. Assessment of fees per Pad Site 1 Well on Pad Site 2 -3 Wells on Pad Site 4 -6 Wells on Pad Site 7 -9 Wells on Pad Site 10 -12 Wells on Pad Site $1350 per Pad Site $2200 per Pad Site $3000 per Pad Site $4500 per Pad Site $6000 per Pad Site Compressor /Processing Pad Site $7500 per Pad Site Reinspection Page 3 $1350 per Well Exhibit 8 Questions & Answers From Joint Planning and Zoning and City Council Meeting of December 16, 2014 Regarding Gas Well Ordinance Amendments Posted to the City Website What exceptions apply to consolidation permit requirements and how many applications are currently pending? Answer: The purpose of the proposed draft amendments is to require nearly all applications for new gas wells to conform to consolidation site standards. Exceptions to consolidation permit review are listed in Chapter 22, section 35.22.4.B.2. The principal exceptions are for gas well permits that were issued prior to the city's moratorium ordinance and remain in effect, and gas well permit applications that were pending prior to the enactment of the moratorium. What is the timeline to obtain a gas well permit? Answer: Since most gas well permits are requested on existing sites, the average timeline to obtain a gas well permit will likely be approximately 90 days. The estimate presented during the joint public hearing indicated approximately 145 days for a legislative review and approximately 120 days for an administrative review. These estimates, however, could be shortened if the applicant's response to staff review comments does not utilize the entire time allocation to as little as 80 -105 days, depending on the type of review needed. Do consolidation permit requirements apply in the extraterritorial jurisdiction (ETJ)? Answer: They apply indirectly, for gas well leases that straddle the city boundaries only. Because consolidation permit review applies to all land subject to contiguous mineral leases, gas well drilling and production sites in the ETJ may be considered for a consolidated site at the request of the applicant. If existing sites within city limits are constrained by protected uses, it may be to the benefit of all parties to locate a consolidated site in the adjacent ETJ. If so, the City and the operator could enter a development agreement outlining the respective obligations of the operator and the City. Describe the status of the U.S. Environmental Protection Agency (EPA) regulations for flaring, flowback, and green completions and identify whether the January 1, 2015 deadline is holding. Answer: The EPA New Performance Standards for Crude Oil and Natural Gas Production, Transmission and Distribution became effective on January 1, 2015. Further, on December 19, 2014, the EPA clarified and finalized some updates to its 2012 New Source Performance Standards for the oil and natural gas industry. The amendments respond to requests for clarification and issues raised in administration petitions for reconsideration but did not change the emission reduction green completions in the 2012 rules. The 12 -19 -14 updates: ➢ Provided additional detail on requirements of handling of gas and liquids during well completion operations; ➢ Clarified requirements for storage tanks; ➢ Defined low - pressure wells; ➢ Clarified certain requirements for leak detection at natural gas processing plants; ➢ Updated requirements for reciprocating compressors; and ➢ Updated the definition of "responsible official." The EPA identified two distinct stages of a well completion operation known as "flowback," with specific requirements for handling gas and liquids during each stage, including clarifying when green completion equipment must be used. The initial flowback stage extends from the beginning of flowback and ends when it is technically feasible for "green completion" equipment to function. The next stage is separation flowback and in this stage, special equipment separates gas, liquid hydrocarbons, and water that come from the well. Wells subject to green completion requirements must begin using green completions no later than Jan. 1, 2015. Wells not subject to these requirements, such as exploratory wells, must flare the gas during separation. Are open pits prohibited? Answer: The city did enact provisions in Ordinance 2013 -014, dated January 15, 2013, prohibiting open pits and requiring closed -loop mud systems. No new open pits have been installed since this date. Can the City prohibit compressor stations? Answer: No, cities cannot prohibit compressor stations. Compressor stations are facilities located along the U.S. interstate natural gas pipeline network. They compress natural gas to a specified pressure, thereby allowing it to continue traveling along the pipeline network to the intended recipient. The entity that builds the compressor station is considered a "utility provider" with condemnation powers under the Texas Utilities Code. Compressor stations are built in accordance with the safety standards as they appear in the U.S. Pipeline Safety Act. They are generally regulated by the state and federal government, not by municipalities. The City may enact regulations that address aesthetics and other land use issues without violating federal or state law. However, the City may not "zone out" a utility provider from locating a compressor station in the city. The City does regulate setbacks for compressor stations from protected uses. Can the City conduct air and water quality monitoring? Answer: Cities may conduct, and pay for, air and water monitoring. Are the production monitoring inspections surprise inspections or not? If not, can we require that the inspections be surprise inspections? Restaurants and daycare and other businesses have surprise inspections. Why should Gas Well Production Sites be different? Answer: Some businesses are generally open to the public, and members of the public entering on these premises are deemed "invitees." Since these businesses are open to the public at large, so too can inspectors enter on the premises for purposes of conducting inspections. This is not true with Gas Well Production Sites. Members of the public are considered "trespassers" and are not allowed upon these premises. These sites are fenced and usually locked to deny admittance to the site, for reasons of safety and because the general public is not being provided an opportunity to purchase goods or obtain services. While the proposed ordinance revisions at Section 35.22.11 assert that any third party performing Gas Well Production monitoring shall have the same right of entry upon the site as the Gas Well Inspector, nothing in the city's ordinance changes the requirement that a city must gain proper authority to enter a premise to which it is denied access, including by presentation of a locked site. Gaining access under these circumstances requires consent of the owner or an administrative warrant issued by a judge. What remedies are available in the event an operator is found to have malfunctioning equipment during the course of production monitoring? Answer: Section 35.22.11 addresses remedies in the event an operator is found to have fugitive emissions from equipment at a drill site. The primary objective is to require correction of any malfunctioning equipment which is causing the emissions. The City shall notify the operator in writing, as well as state and federal regulatory agencies having jurisdiction to regulate these issues. In the event a state or federal agency issues 2 or more notices of violation per well or drilling and production site during any 12 -month period, within 30 days of the second notice, the operator shall submit to the City a Leak Detection and Compliance Plan with elements as described in the proposed ordinance, including installation or repair of equipment, the submission of a response plan, and the provision of quarterly reports including the evaluation of potential impacts to air, soil, surface water and groundwater. What efforts are underway to promote public education of gas well activities in Denton? Answer: Recent modifications to the Gas Well Inspections Division's website ( www. cityofdenton .com/gaswellinspections) provide a useful tool to educate the general public about gas well activity. The site contains a user - friendly Main Page with simple icons for ease of use and contact information for both division staff members and a 24 -hour hotline (940- 349- 8GAS). A press release highlighting the changes was recently forwarded to various media outlets for publication to assist spreading the word. A one -page fact sheet flyer will summarize the City's gas well program, contacts at the local universities will be used to assist with public outreach, and the City will apply for an Excellence Award from the Texas Municipal League. In addition, home owner associations will be contacted with the intent of spreading notices to help inform citizens about the various methods to obtain gas well activity information. What are the current notification requirements for a well blowout? Answer: The Fire Code requires the fire code official be notified of any unauthorized discharges of hazardous materials under Section 2703.3.1. Additionally, the emergency response plan has a section that specifically addresses emergency notification of public safety personnel during any type of incident. This document is required for any hazardous materials operations and must be submitted to obtain a drilling permit. Emergency notification is made through 911 though it is conceivable notification would be made telephonically with the Fire Marshal. What notification and disclosure requirements are in the draft Gas Well Ordinance amendments that will alert homebuyers that there are gas wells nearby? Answer: A new subsection "E." is proposed to be added to Subsection 35.16.7 that provides the following notification and disclosure requirements: E. Gas Well Notification Disclosure. A Plat that proposes single -or multi - family residential lots that will be within 1,200 feet of one or more gas well pad sites, except for those gas well pad sites and their subsurface mineral interests which are eliminated through plugging and abandonment, the Developer shall be required to provide all of the following disclosure notifications to all lot purchasers: A note shall be placed on the Plat identifying the gas well pad site(s) and those proposed lots that are within 1,200 feet of the gas well pad site(s). Said note shall also include a statement that advises lot purchasers of the existence of producing wells on the gas well pad site(s), the possibility of new wells that may be drilled and fracture stimulated on the gas well pad site(s), as well as the possibility that gas wells on the gas well pad site(s) may be re- drilled and /or re- fracture stimulated in the future. 2. There shall be depicted on the Plat, or in a separate map, the location of the gas well pad site(s) in relation to the lots that are within 1,200 feet of a gas well pad site(s). 3. A provision shall be included in the Declaration of Restrictive Covenants that advises lot purchasers of the existence of producing wells on the gas well pad site(s), the possibility that new wells may be drilled and fracture stimulated on the gas well pad site(s), as well as the possibility that gas wells on the gas well pad site(s) may be re- drilled and /or re- fracture stimulated in the future. 4. A Notice document that advises lot purchasers of the existence of producing wells on the gas well pad site(s), the possibility that new wells may be drilled and fracture stimulated on the gas well pad site(s), as well as the possibility that gas wells on the gas well pad site(s) may be re- drilled and /or re- fracture stimulated in the future, shall be recorded with the Denton County Clerk's Office. The form of the disclosure notifications required in subsections E.3. and E.4. shall be approved by the City Attorney. Finally, in Section 35.22.8.C.3, the size of the sign that is to be displayed at each Drilling and Production Site has increased so as to provide better visibility. In addition, the sign will now need to include language that the Site may be subject to future drilling and production activity. What standards are in place for reverse set - backs, where an application is made for a residential subdivision or other surface development before any existing gas well drilling and production site has been designated as a consolidated site? Answer: There are no provisions in the draft gas well amendments that address this circumstance. This means that a surface developer could locate the development 300 feet from an existing gas well site, which then could not be designated as a consolidated site thereafter. This should encourage gas well operators to apply for consolidated sites at the earliest opportunity following enactment of the consolidated site regulations. Why not amend the consolidation permit section to provide that appeals from the gas well administrator go directly to the City Council, not the Board of Adjustment? What procedures and standards govern Board decisions? Answer: Chapter 22 permits are deemed to be part of the City's zoning regulations. Under Tex. Loc. Gov't Code, chapter 211, an appeal from an administrative decision by statute must be made to the Board of Adjustment. The Board is a quasi-judicial body, which means that it is vested with greater discretion to make decisions involving matters delegated to it by statute or by City ordinance. Nevertheless, the Board must make its decision on any matter within its jurisdiction under standards prescribed by ordinance. Appeals from gas well administrative decisions, variance requests and special exceptions, are governed first by standards generally applicable to any zoning issue, and further by special standards applicable solely to gas wells. These are found in Chapter 22, Section 14.A of the draft gas well amendments. Decisions of the Board must be made after a public hearing has been held. Six of the seven regular Board members (three - quarters majority) must agree to approve matters within the Board's jurisdiction. What are the remedies available to the City under the Initiative Ordinance banning hydraulic fracturing? Answer: We note that some misinformation has been circulated as to enforcement of the initiative ordinance and there have been suggestions that the City should arrest anyone violating the ordinance. The penalty provision of this ordinance is written, like all City ordinances, as a Class C misdemeanor. Class C misdemeanors are fine only offenses; therefore, neither arrest nor jail time are typically appropriate in the case of a Class C misdemeanor. Additionally, injunctive relief is available and may be appropriate. Should we increase the frequency of the Production Monitoring inspections such that all wells are inspected quarterly? Answer: Staff has proposed that the frequency of Production Monitoring inspections be based on the proximity to "protected" uses. Sites in closest proximity to "protected" uses would have more frequent inspections and sites more distant from "protected" uses would have fewer inspections. Staff is of the opinion that this policy encourages operators to locate sites at a greater distance from "protected" uses and that this is the desired result of the community. Staff also believes the proposed inspection schedule addresses the heightened concerns of citizens located in close proximity to gas well sites that equipment shall be required to be in good operating order. The proposed inspection schedule is set forth in an Exhibit to the Amendments to the Gas Well Fee Ordinance. What notification requirements are provided to the public regarding Zoning Board of Adjustment (BOA) meetings? Answer: The BOA meetings are advertised as required by State law and the DDC. The meetings are published in the Denton Record Chronicle. In addition, a notice of each zoning item is provided to every surrounding property owner within 200 feet of the property at issue. Further, although not required, the City sends a courtesy notice to surrounding property owners within 500 feet of the property at issue. Finally, a notice of the BOA's meeting agenda is posted on the bulletin board located at City Hall and posted on the City's internet website. How are surface owners of land subject to a mineral lease notified of an application for a consolidation permit for a new well on an existing drilling and production site? Answer: Currently, Section 4 does not provide for special notice to surface owners. However, the requirements for an application for a Combining District require the operator to show proof of notice to all surface owners of the land subject to the mineral lease. In light of the discussion on this topic, City Staff will amend the consolidation permit application requirements to provide the same notice to surface owners for consideration by the City Council. Consent of the surface owner is not required. As with other administrative permits in the zoning arena, no public hearing is required. Will Gas Well Operators be notified as to the filing of new residential surface plats that encroach within 1,200 feet of the boundary of the Drilling and Production Site? Answer: There is not a notification requirement in the initial draft of the Gas Well Ordinance Amendments. However, Staff will prepare a provision to that effect for Council's consideration. Are the reverse setbacks sufficient to mitigate the impacts on gas well drilling and production? Are the reverse setbacks too great such that there is a deleterious effect on surface development? Answer: The proposed reverse setbacks are 300' for a regular drill site, and 600' for a consolidated site. The propriety of the setbacks is ultimately a policy decision of the City Council. Staff has attempted to strike a reasonable balance between the impacts of the drilling operations and the opportunities of the surface owner to develop the property. It is noted that development not included as a "protected" use would not be bound by the "reverse" setbacks, but could encroach upon the drilling and production site to within the distance limitations of the Fire Code. I'd like to explore why a well is allowed in a flood fringe, but not a flood plain. Are there inherent risks associated with wells in flood plains? If so, why would we allow a well in a flood fringe, which I assume is also classified as an ESA (am I correct about that)? Answer: There might be some confusion about the differences between floodway, flood fringe, and floodplain that requires clarification before further discussing the merits of allowing drilling in the flood fringe. Below are included the definitions as listed in the Denton Development Code. Floodway. Area regulated by federal, state, or local requirements to provide for discharge for the base flow, so that the cumulative increase in water surface elevation is no more than a designated amount within the one hundred (100) year floodplain. A river, channel or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height. Noy, inally, the floodway will include the stream channel and that portion of the adjacent land areas required to pass the base flood (100 year flood) discharge without cumulatively increasing the water surface elevation at any point more than one - foot above that of the pre floodway condition, including those designated on the flood insurance rate map. Flood Fringe. The area located within the floodplain and outside the floodway. Floodplain. An area identified by the Federal Emergency Management Agency as possibly being flood prone, or below the immediate flood line (one hundred (100) year floodplain). In other words, FEMA 100 -year floodplain is the land in the floodplain subject to a one - percent or greater chance of flooding in any given year. The floodplain is composed of the floodway and the flood fringe. The floodway is the stream channel and that portion of the adjacent floodplain that must remain open to permit passage of the base flood (a.k.a. 100 -yr flood). Floodwaters generally are deepest and swiftest in the floodway, and anything in this area is in the greatest danger during a flood. The remainder of the floodplain is called the flood fringe, where water may be shallower and slower. Consequently, most communities permit development in the flood fringe if the development is elevated or otherwise protected to the base flood level. Flood Level 4 Flood Hazard Area 0 00 -Year Floadplaiia) ------- - - - - -- ------- - - - -- Floadwa - Frin ge Fringe Stream Clronnel y Normal Water Level Cross - section showing the Floodway and Flood Fringe Unregulated drilling in floodplains poses numerous potential risks such as tanks floating away during flooding events if not properly anchored, contaminants reaching waterways during spills and floods, the removal of vegetative ground cover for the construction of pad sites increasing the chances of sediments and pollutants reaching the waterways without any attenuation, and the elimination of important habitats. However, drilling in the flood fringes, where floodwaters are typically shallower and slower, presents a substantially reduced risk, particularly when appropriate conditions are imposed which reduce these risks. Since 2013, Denton only allows gas well drilling in the flood fringe with the approval of a specific use permit (SUP). Drilling in the floodway is not allowed. In contrast, previous to 2013, drilling in the flood fringe was allowed by right and only drilling in the floodway required a SUP. Additional conditions can be included as part of the approval of SUPS with the intent of further reducing the risks or mitigating for the removal of vegetation or habitat losses when drilling in the flood fringe. In addition to requiring SUPS, the DDC prohibits the placement of storage tanks and separation facilities in the flood fringe. The number of wells in the flood fringe is limited to one well head, and is subject to the approval of a hydrologic and hydraulic engineering study demonstrating no adverse impact on the carrying capacity of the adjacent waterway or increasing the water surface elevation of the floodplain. However, an exception to the SUP requirement is granted when gas wells are drilled directionally (meaning the pad site is outside the floodplain) and have a target location or bottom -hole location that is under the floodway. By definition FEMA 100 -yr floodplains are considered a type of environmentally sensitive areas (ESAs) granting floodplains additional protection. Drilling in ESAs requires a watershed protection permit (WPP) that includes a field assessment of the protected areas and, if necessary, the imposition of additional conditions. Subchapter 22 also establishes the chronological order of approval for gas well sites encroaching into ESAs. Drilling in the flood fringe requires the approval of an SUP, WPP, and gas well site plan before a drilling permit can be issued. The current requirements provide a series of checks and balances through the staff review process and City Council action before drilling in the flood fringe can take place. The requirement of placing storage tanks and separation facilities outside floodplains and limiting the number of wells in the flood fringe, in conjunction with SUPS and WPPs, provides opportunities for reducing risks and requiring mitigating measures. What standards exist to address the adequacy of roadways used to access drilling and production sites? Answer: The transportation route for every Drilling and Production Site is reviewed to calculate the road damage remediation fee that an operator must pay for various activities performed for each well. The roadway condition or adequacy, construction type, and segment length in lane miles are all included in the calculation. The City conducted an extensive engineering study to determine these road impacts. The assessments in the City's Fee Ordinance are based on this study. Does the RRC or TCEQ have cooperative programs or other opportunities to deputize City staff? Answer: The City's stormwater program is not characterized as "cooperative" as asked in the question because it is considered a regulatory program that requires certain actions on the City's part as required by the NPDES component of the Clean Water Act. The City, however, is responsible for inspecting construction sites as a part of the City's stormwater permit, even though these construction sites are permitted through the TCEQ. The City is also taking on a greater inspection role with the Multi - Sector general permit holders in the City (who are also permitted through the TCEQ) as a part of our new City of Denton stormwater permit requirements. In pretreatment, we issue local permits for industrial dischargers into our system, and have associated compliance responsibilities. We also have local permitting and inspection responsibilities for on -site sanitary sewage facilities. These responsibilities, however, represent a situation where the City has existing City of Denton permits that require us to perform these duties as a condition of those COD permits. As a result, the responsibilities have been codified in the code of ordinances and the development code to provide the necessary local authority. The Texas Clean Air Act provides some opportunities for the TCEQ to "deputize" city staff. Regarding "cooperative agreements" between the TCEQ and a municipality, note that the Texas Health and Safety Code provides that a city may be able to contract with the TCEQ for the following specific purposes: (1) to provide for the performance of air quality management, inspection, and enforcement functions and to provide technical aid and educational services to a party to the agreement; and (2) for the transfer of money or property from a party to the agreement to another party to the agreement for the purpose of air quality management, inspection, enforcement, technical aid, and education. City Staff is exploring with TCEQ whether this program is feasible for Denton. Describe the City's current water quality monitoring program. Answer: The Watershed Protection Division Water Monitoring Network consists of sites through the City of Denton and surrounding watersheds. Most of the sites are located within the City of Denton but the divisions monitors several sites upstream and downstream of the City limits to be more protective of our vital water resources. Our monitoring program is required as part of the City's stormwater permit under the Clean Water Act (MS4 Permit — Municipal Separate Storm Sewer System) for illicit discharge detection and elimination. Denton began monitoring several years before our permit became live because of EPA grants we received. This has allowed us to look at some of the long -term trends more closely and determine when we have a problem or impact somewhere. The objective of the Watershed Monitoring Network is to broadly characterize Denton's aquatic resources with a known statistical confidence. (1) Program in place since 2001. Began with 70 sites located around Denton's four primary watersheds (Cooper, Pecan, Clear, Hickory) (2) Now have approximately 85 sites and have added Denton Creek watershed (3) Sites monitored monthly for water quality parameters (pesticides during growing season). (4) Continuous monitoring sites at end of each watershed (5) Ability to respond to illicit discharges as needed Over 1000 sites have been visited in 2014. Water samples (including quality assurance samples) are collected as frequently as every 30 minutes at continuous monitoring stations. Most samples are taken monthly. Are the proposed disclosure provisions of the draft ordinance sufficient notice of gas well activities? How can we get notification and disclosures of gas well activities to renters as opposed to homeowners? What were the notice provisions the City Council previously imposed in 2 zone cases, one in 2013 and one in 2014? Answer: The proposed ordinance revisions require that Surface Plats for single or multi - family residential developments within 1200 feet of gas well pad sites shall note the location of the Pad Site, the existence of well(s), the possibility of new wells, the possibility of more drilling and fracturing, and the possibility of re- working wells. Further, a Declaration of Restrictive Covenants shall advise purchasers of the existence of well(s), the possibility of new wells, the possibility of more drilling and fracturing, and the possibility of re- working. Finally, a Notice document shall be recorded in County Clerk's Office as to existence of well(s), the possibility of new wells; the possibility of more drilling and fracturing, and the possibility of re- working. As to renters, we note some states have provisions in law requiring notice to tenants regarding any number of events, including gas well activities. These provisions are generally written as a "Bill of Rights for Tenants." Such laws typically require landlords to give notice to tenants prior to the execution of leases as to drilling activities in the vicinity, sometimes also requiring notice of drilling activities such as re- working during the term of the lease. The requirements operate by imposing these notice duties upon landlords, who in turn, must insure all required notices are provided to prospective and current tenants. Whether this is feasible in Denton where there are a large number of rental units is an open question. City Staff notes that rental contracts are of a definite term and do not carry the same investment burden and opportunity as home ownership. In addition, there is a high turnover in rental occupancy such that any tenant information will be quickly outdated. Another method of notice to renters would be the City's website, along with public education regarding the interactive mapping system which provides locations of all well sites in the City. The notice provisions enacted by the City Council in two separate zone cases in previous years are similar to the ones proposed in the draft ordinance, and city staff used the notice provisions in those two prior zone cases as a pattern in crafting the draft ordinance revisions. Can the City require realtors to disclose the location of gas well production sites? Answer: The City's authority generally does not reach into this occupation. However, the City has explored some possibilities with the Texas Association of Realtors in Austin with the assistance of the Texas Municipal League. Preliminarily, it appears that the Association may be willing to support some disclosure language in standard real estate contracts. When does an existing drilling and production site become a consolidated site and what exceptions apply to consolidation permit requirements? Answer: Following approval of either a Gas Well Combining District by the City Council or approval of a consolidation permit by the Oil and Gas Well Inspector, a site becomes a consolidated site. In the case of a consolidation permit, the approval is not complete until the operator submits and records a development plat restricting the remainder of the mineral leasehold from future gas well development. The 2013 gas well amendments provided a number of exceptions, the proposed draft amendments are written to require nearly all applications for new gas wells to conform to consolidation site standards. Exceptions to consolidation permit review are listed in Chapter 22, section 35.22.4.B.2. The principal exceptions are for gas well permits that were issued prior to the city's moratorium ordinance and remain in effect, and gas well permit applications that were pending prior to the enactment of the moratorium. Further explain the activities covered by the gas well permit and the completion permit. Answer: The gas well permit is a two -stage written authorization granted by the City of Denton that authorizes drilling, completion and production activities, issued pursuant to rules and regulations of the Denton Development Code. A gas well permit is required for each separate well and for each re -drill of any gas well. The completion permit authorizes completion activities and subsequent production activities either after initial drilling, as the second stage of the gas well permit, or prior to any new completion activities performed to an existing well. What are the procedures for deciding requests by an operator to lessen the requirements for consolidated drilling and production sites due to geological or contractual constraints? Answer: The draft gas well amendments recognize that there are circumstances in which consolidated site standards cannot be fully achieved because of geological conditions or contractual obligations which prevent an operator who holds mineral leases for contiguous land from being able to combine the acreage for purposes of determining the location of a consolidated site. In the case of a consolidation permit application, an operator must apply for a special exception to the Board of Adjustment in order to reduce the acreage under consideration for a consolidated site. The Board will decide the request pursuant to the standards for the special exception in Section 35.22.14.B. If the Board decides that special circumstances require reduction of the area to be considered for the consolidated site, its determination will become the basis for the Oil and Gas Inspector's administrative review. Because this decision could also result in consideration of existing drilling and production sites that are closer to protected uses than the Oil and Gas Inspector has discretion to designate as a consolidated site, an operator may also apply to the Board for a variance to the well set -back standards. The Board, however, may not grant an exception to a setback less than five hundred feet. An operator that applies for a Combining District to establish a new drilling and production site may present geological or contractual impediments to the area under consideration for the District to the City Council as part of the zoning amendment process. Can the City re- insert the recitations concerning air and water pollution into the recital clauses of the revised ordinance? Answer: City Staff crafted the ordinance to avoid encroachment on state and federal law. Further, those specific recitals are not necessary to support any regulations contained in the draft ordinance. How can the City insure objectivity in the selection of third party gas well investigators? Answer: Under the proposed third party inspector scenario, the City (not the operator) would contract directly with a third party to conduct gas well inspections. The third party gas well inspector would serve as an agent of the City, be paid by the City and act at the City's direction. The operator would have no contractual relationship with the third party gas well inspector and no ability to direct how or when such inspections are conducted. The only connection that the operator would have to the third party gas well inspector is that the cost of the inspections would be passed through from the City to the operator. Additionally, the contract between the City and the third party gas well inspector would be a professional services contract. Such contracts are exempt from the bidding laws and procurement provisions of state law, and would not be subject to those provisions. Exhibit 9 Questions & Answers From Public and Planning & Zoning Commission January 28, 2015 Regarding Gas Well Ordinance Amendments Posted to the City Website A. Public's list of items for inclusion in the Gas Well Ordinance 1. Can we prohibit compressor stations? Answer: See Q &A, Question No. 6, from December 16, 2014 P &Z & City Council Joint Public Hearing. 2. Can we prohibit all pits? Answer: See Q &A, Question No. 5, from December 16, 2014 P &Z and City Council Joint Public Hearing. 3. Can we mandate vapor recovery systems? Answer: See Q &A, Question No. 4, from December 16, 2014 P &Z and City Council Joint Public Hearing. 4. Can we prohibit flaring? Answer: See Q &A, Question No. 4, from December 16, 2014 P &Z and City Council Joint Public Hearing. 5. Can we prohibit venting? Answer: See Q &A, Question No. 4, from December 16, 2014 P &Z and City Council Joint Public Hearing. 6. Can we require operators to use all electric motors rather than diesel powered motors in order to minimize noise to adjacent property owners? Answer: It is not clear whether a regulation such as this is within the City's authority or the state's authority. However, some cities have ventured into this arena to some extent. For instance, the cities of Arlington and Mansfield have enacted provisions requiring the use of electric motors. The Arlington ordinance stipulates that "Electric or diesel - electric hybrid rigs must be utilized for drilling a well located within four hundred fifty (450) feet of a Protected Use. The CD &P Director may authorize the use of alternative rigs in specific cases if it is determined that the project is in substantial compliance with this Chapter." 1 The City of Mansfield adopted a new ordinance in March 2014 that states "An Operator shall use only electricity to power a drilling rig or permanent lift compressors." Mansfield's ordinance further requires that "The electricity shall be provided by the electric delivery utility company utilizing a ground- mounted transformer located on the Drill Site or Operator Site." Like Arlington, the City of Mansfield also considers the site's distance from a Protected Use. In fact, per Mansfield's ordinance, "The City may approve an alternative power source or equipment such as diesel generators if the Drill Site or Operation Site is located more than one thousand (1,000) feet from a property with a Protected Use, or if the electric delivery utility company reports that there is insufficient capacity to serve a Drill Site or Operation Site." In addition, "An Operator may use temporary diesel generators during a disruption of electric service until such service is restored, provided that the noise produced by such equipment does not exceed the maximum limits established for the Drill Site or Operation Site." The language difference between the Arlington ordinance and the Mansfield ordinance may be slight, but could carry a lot of significance. The reason for the significance is because most drill rigs today operate as electric rigs. In the majority of instances, however, the electricity is produced on -site through the use of diesel powered generators. These generators provide the electricity to power the rig. As such, under typical current operations, most wells already utilize electric rigs for drilling, regardless of distance to a Protected Use. The City of Mansfield requirements elaborated on similar language from the Arlington ordinance to state how the electricity must be provided. Any consideration for this same requirement in Denton should include language regarding the source of the electricity used to power the rig or compressor. In addition, since utility installations should not prematurely dictate development patterns, any stipulation to bring electric service to a Drilling and Production Site should consider proximity to development or specifically Protected Uses. 7. What are the pros and cons to requiring operators to use pressurized tanks during the hydraulic fracturing process? Answer: With the caveat that hydraulic fracturing is prohibited with the City and the amendments do not change this, City Staff points out that the hydraulic fracturing process requires large volumes of water to complete the well. During this process, water is mixed with sand and other additives before being injected downhole as one method to open the rock formation in order to allow the flow of oil or gas. The water used for this process is generally derived from one of three typical sources: 1) Potable water from a municipal or private supply hydrant; 2) Underground water well; or 3) Diverting allowable surface water resources from an existing reservoir. The water withdrawal rate from a water hydrant or well is not rapid enough to directly supply water used during hydraulic fracturing and surface water typically cannot be replenished fast enough to solely rely on this source. To augment the rapid withdrawal rates, water is typically stored in a holding vessel to provide a high enough volume for the hydraulic fracturing process. PJ Early wells typically utilized large acre fresh water make -up pits or " frack ponds" as the method of storing water. Many of these pits are still utilized around Denton today. As a shift from off - site, large -acre storage pits, operators began utilizing on -site storage systems in the form of frack tanks or pool tanks. The pros and cons of each option are weighed in the following table. Storage System Surface Track Pond" Frack Tank Frack Pool Pros • High volume • On -time construction • Ease of use for multiple sites • Not permanent • On -site storage • Leak resistant • Easily portable • Interconnected tanks • Not permanent • On -site storage • Visible water level 9 Cons • Permanent • Large off -site acreage • Open water • Water transported to site via pipeline • Increased truck traffic • Tank pressurization requires energy (noise ?) • Larger site area or stored off -site • Pump cavitation potential • Could spill • Maximum site area • Assembly time 8. Can we impose a 1500 foot setback for gas wells from all protected uses, including reverse setbacks? Answer: Staff does not recommend the imposition of a 1500 foot setback. While various cities have established setbacks at differing distances, it is typically prudent to determine the distance at which the impacts of gas wells fall off. This includes any impacts on property value or other nuisance factors. Some cities have looked to empirical data in determining this distance. Another consideration is the impact of setbacks on the future growth of the City. The larger the setback, the more limited the growth potential and the less flexibility the City has in supporting comprehensive, well planned development. The propriety of the setbacks is ultimately a policy decision of the City Council. Staff has attempted to strike a reasonable balance between the impacts of the drilling operations and the opportunities of the surface owner to develop the property. Please see also Q &A, Question 420, from 12/16/2014 P &Z & City Council Joint Public Hearing. 9. Can we establish an air monitoring program paid for by the gas well industry? Answer: Please see response to Question B.3. in this Q &A document. Also, Please see also Q &A, Question No. 7, from December 16, 2014 P &Z & City Council Joint Public Hearing. 10. Do property owners receive notice if an operator plans to drill, fracture stimulate, or re -work a well? Answer: The ordinance proposes to keep language requiring notifications to property owners and residents. While the current ordinance requires notice prior to the SUP application, the proposed ordinance will likely require the public meeting prior to filing the co- location application. As written, if a proposed Drilling and Production Site is located within 1,200 feet of a Protected Use, the Operator shall also host a public meeting at a location accessibly convenient to surrounding property owners and residents at least 10 days, but no more than 45 days, prior to either: (1) the public hearing held by the Planning and Zoning Commission in connection with an Gas Well Combining District application, or (2) the submission of a Consolidated Site Permit if a Gas Well Combining District is not required. The Operator must provide written notice of the meeting to all property owners located within 1,200 feet of the proposed Drilling and Production Site. The meeting should provide information regarding planned activities and timelines for the site and must provide an opportunity for citizens to ask questions about the proposed site. All notification and meeting costs shall be borne by the Operator. These notification requirements are in addition to any state - mandated notice requirements for a public hearing before the Planning and Zoning Commission or City Council. Per state law, property owners within 200 feet of the zoning change must receive notice of the hearing. The City of Denton requires courtesy notices to also be mailed to property owners within 500 feet of the proposed zoning change. The public meeting conducted by the operator in accordance with the gas well drilling and production ordinance is an additional requirement to ensure more people are notified, not just those adjacent to the activity. rd It. Can we require 24/7 third party air monitoring paid for by the industry operator? Answer: Please see Q &A, Question No. 7, from December 16, 2014 P &Z & City Council Joint Public Hearing. 12. Can we require a 1500 foot setback, including reverse setback (homes should not be allowed to be built closer than 1500 feet to wells whether or not someone is willing to buy such a home? Typically such a buyer is uninformed about the process of drilling /fracking and buys a home with the expectation that the city has sound regulations on the books). Answer: Staff does not recommend the imposition of a 1500 foot setback. While various cities have established setbacks at differing distances, it is typically prudent to determine the distance at which the impacts of gas wells fall off. This includes any impacts on property value or other nuisance factors. Some cities have looked to empirical data in determining this distance. Another consideration is the impact of setbacks on the future growth of the City. The larger the setback, the more limited the growth potential and the less flexibility the City has in supporting comprehensive, well planned development. The propriety of the setbacks is ultimately a policy decision of the City Council. Staff has attempted to strike a reasonable balance between the impacts of the drilling operations and the opportunities of the surface owner to develop the property. Please see also Q &A, Question 420, from 12/16/2014 P &Z & City Council Joint Public Hearing. 13. Can we require mandatory vapor recovery units during flowback and of compressors including lift compressors? Answer: See Q &A, Question 44, from 12/16/2014 P &Z and City Council Joint Public Hearing. 14. Can we prohibit flaring within city limits? Answer: See Q &A, Question 44, from 12/16/2014 P &Z and City Council Joint Public Hearing. 15. Can we limit hours of operation to 9 -5 on weekdays and eliminate on weekends so that residents may enjoy the comfort and quiet of their homes at the times when they are most likely to be home? Answer: Several surrounding municipalities place time or curfew restrictions on various activities. Five municipalities were compared based on the similar make -up of the community and history of drilling. The Barnett Shale municipalities with dense urban areas and a large number of wells generally include Denton, Arlington, Fort Worth, Grand Prairie, and Mansfield. Several additional communities in Johnson County and Wise County, such as Burleson, Cleburne, Decatur, and Bridgeport, are home to a large number of wells; however, the populations for these towns are not scalable to the five cities used in the comparison. 9 In nearly all instances of curfew limits for the five cities, the drilling and flowback stages are permissible 24 hours a day and seven days a week. Well integrity or formation pressure issues and other dangers could arise during these two stages if work activities were required to cease at an arbitrary time during the operation. These two stages are frequently cited as the points in well development that are most time sensitive. As a result, for several well safety reasons, these two stages occur without curfew restrictions. The following outline describes the respective ordinance prescribed time restrictions for various activities. In addition, for each municipality, the definitions of daytime and nighttime are provided. 1. Denton A. Time Restrictions 1) Fracing operation shall occur during daylight hours 2) Unless the Operator has notified the Oil and Gas Inspector that fracing will occur before or after daylight hours to meet safety requirements B. Definitions 1) Daytime: The period from 7:00 a.m. to 7:00 p.m., Monday through Friday; and from 8:00 a.m. to 5:00 p.m., Saturdays and Sundays 2) Nighttime: The period commencing at 7:00 p.m. and ending at 7:00 a.m., Monday through Friday and from 5:00 p.m. to 8:00 a.m., Saturdays and Sundays. 2. Arlington A. Time Restrictions 1) Drilling allowed 24/7, except Thanksgiving and Christmas Day 2) Site preparation, well servicing, truck deliveries of equipment and materials, fracing, and other related work limited to hours of 7 a.m. to 6 p.m., CST and 7 a.m. to 8 p.m. CDT, Monday through Saturday 3) All open hole formation or drill stem testing shall be during daylight hours 4) The City Council may restrict the hours of operation of vehicles B. Definitions 1) Daytime: The period from 7:00 a.m. to 6:00 p.m. Central Standard Time and 7 a.m. to 8 p.m. Central Daylight Saving Time. 2) Nighttime: The period between 6:00 p.m. and 7:00 a.m. Central Standard Time and 8 p.m. to 7 a.m. Central Daylight Saving Time. 3. Fort Worth A. Time Restrictions 1) No construction activities involving excavation of, alteration to, or repair work on any access road or pad site shall occur during nighttime hours or at any time on Sunday. on 2) Truck deliveries of equipment and materials associated with drilling and /or production, well servicing, site preparation and other related work limited to daytime hours 3) Other than mobilization and demobilization and advancing the bore hole, no other activities shall be allowed on the well site on Sundays. 4) All open hole formation or drill stem testing shall be during daytime hours. 5) Formation fracture stimulation operations shall be during daytime hours. 6) Workover operations restricted to daytime hours. B. Definitions 1) Daytime: means the period from 6:00 am to 7:00 pm. 2) Nighttime: means the period between 7:00 p.m. and 6:00 a.m. 4. Grand Prairie A. Time Restrictions 1) Work hours for site development, truck deliveries of equipment and materials associated with drilling and /or production, well servicing, site preparation and other related work limited to daytime. 2) Deliveries of pipe, casing and heavy loads limited to daytime hours. 3) Flowback operations performed during daytime hours, unless the City approves during non - daytime hours. 4) All open hole formation or drill stem testing shall be during daytime hours. 5) Formation fracture stimulation operations shall be during daytime hours. 6) Workover operations restricted to daytime hours. 7) During nighttime, the operation of vehicle audible backup alarms prohibited. 8) Seismic testing limited to the hours of 8:00 am until 5:00 pm and not on weekends or City holidays. 9) Drill stem testing done during daytime hours. B. Definitions 1) Daytime: means the period from 7:00 am to 7:00 pm. 2) Nighttime: means the period between 7:00 p.m. and 7:00 a.m. 5. Mansfield A. Time Restrictions 1) No construction activities shall occur during nighttime hours. 2) Well servicing operations and any deliveries to the site or a line compressor facility shall occur between the hours of 7:00 a.m. to 7:00 p.m., Monday- Friday, and 9:00 a.m. to 6:00 p.m., Saturday and Sunday. 7 3) Mobilization and demobilization of equipment used for drilling and related operations permitted only during daytime hours. 4) Workover and fracturing operations restricted to daytime hours. 5) Drill stem testing shall be done during daytime hours. B. Definitions 1) Daytime: means the period from 7:00 am to 7:00 pm. 2) Nighttime: means the period between 7:00 p.m. and 7:00 a.m. After careful consideration of the comparable Barnett Shale ordinances, reasonable limits to on- site activities seem typical. The most common curfew limits restrict activities during nighttime hours and allow all activities during daytime hours. 16. Can we require the mandatory lining of pits? Answer: The City enacted provisions in Ordinance 2013 -014, dated January 15, 2013, prohibiting open pits and requiring closed -loop mud systems. No new open pits have been installed since this date. In addition, Ordinance 2013 -014 requires that all pits shall be lined and shall be designed, constructed, and installed in accordance with the liner standards set forth by the Railroad Commission (RRC). The RRC mandates that pits should be constructed of soil material which is capable of achieving permeability of 1 x 10 -7 cm/sec or less when compacted. To achieve the RRC's put design requirements, in areas where clay beds do not occur at the land surface, importing off -site soils with high clay and silt content could be considered. In most circumstances, artificial liners are the best alternative. 17. Can we require the use electric, not diesel, generators throughout the drilling and production process? Answer: Please see Question A.6 in this Q &A document. 18. Should the new ordinance provide for financial payments to those living and working 2000 feet of a fraced site as nuisance compensation? Answer: Staff is of the opinion that this is not advisable. Whether a nuisance exists, whether it is substantial enough to warrant compensation and what amount of compensation is appropriate are factually intensive issues that are not amendable to a solution through legislation. Generally, these are issues between the operator and any individuals specifically affected which should be handled between those parties, with the assistance of our court system, if necessary. 19. Can we require immediate notification of the City and the TCEQ of any mishap /accident and provide for a fine if this does not happen? Answer: The City has requirements for notification. Please see Q &A, Question 411, from 12/16/2014 P &Z & City Council Joint Public Hearing. The International Fire Code is adopted with local amendments by the City Council. These provisions contain penal provisions for failure to comply with ordinance requirements. TCEQ sets its own rules, but City Staff notes, depending on the circumstances, appropriate state and federal agencies may be notified by the City. E'? 20. Can we prohibit compressor stations allowed within city limits? Answer: See Q &A, Question 46, from 12/16/2014 P &Z & City Council Joint Public Hearing. 21. Can the City Council, and not the ZBA, be allowed to grant variances /exceptions? Only council should be allowed to do that since it is directly responsible to the voters. Answer: See Q &A, Question 414, from 12/16/2014 P &Z & City Council Joint Public Hearing. 22. In reference to 35.22.8.B.6, there is no designation made for the type of dehydrator that should be used. Please see the following EPA website and amend the ordinance to require zero emissions dehydrators so that methane emissions, VOCs, and HAPs are eliminated. http: / /www.epa.2ov /2asstar /documents /zeroemissionsdehy.pdf . Answer: City Staff has included in the Gas Well Ordinance amendments a requirement that gas well operators follow all federal and state laws in connection with their gas well drilling and production operations. 23. Are tank farms allowed or beneficial? Answer: Yes, tank farms are allowed. In fact, we currently have one "tank farm" location in the City that is contained within Robson Ranch. This term is not an industry name, but rather a unique way to identify this particular site. The benefit of this tank farm is to reduce the truck traffic within the development by piping the water to a centralized facility for a single point of collection. The site is accessed outside of Robson Ranch instead of requiring heavy truck traffic to drive through the community. 24. Are injection wells allowed in the ETJ? Answer: Injection wells are not allowed in the City. Ordinance No. 2013 -014 at 35.22.5.6.n. In the ETJ, the City has only the authority given it by the State of Texas, unlike the City's authority within its corporate boundaries where the City has the power and authority of a home rule city pursuant to the Texas Constitution. As such, the City does not regulate injection wells in its ETJ as being beyond its authority. 25. Should the City consider revising the insurance provisions in the new ordinance to match the insurance requirements in the Flower Mound ordinance? Answer: The City engaged insurance counsel for the specific task of reviewing the gas well situation in Denton, analyzing Denton's current insurance provisions, and making recommendations for any needed amendments to the insurance provisions in the current ordinance. The recommendations of insurance counsel are reflected in the draft ordinance. Staff believes that those recommendations are the most appropriate for the City and for inclusion in the new ordinance. I B. Issues and Questions Raised by the Planning and Zoning Commission 1. I understand that there are challenges to regulating compressor stations because of their status as a public utility. I also understand that the citizens of Denton have spoken out against compressor stations in their neighborhoods, and that compressor stations will further limit our ability as a city to develop our land. We have ample space in Denton located in industrial zones, so I believe that any compressor stations should be located in IC -E or IC -G zoning districts. Answer: At first blush, this may seem like an attractive option. However, please note that the IC -E and IC -G zoning districts are located in different parts of the City, such as the East, Southeast, South and West sides of the City. Further, some of these areas are proximate to single- and multi - family dwellings and other Protected Uses. While the Gas Well Ordinance's 1,200 foot setback applies to compressor stations, it is possible to meet the setback in an IC -E and IC -G zoning district, but still be close to residential dwellings so as to generate complaints. By adopting this limitation as to where compressor stations may locate, we may inadvertently spread complaints and concerns associated with gas well drilling and production to other parts of the City that have not experienced them thus far. 2. The use of lift compressors is a separate issue. Whereas a compressor station is defined as "a facility that compresses natural gas for delivery by pipeline through a transmission pipeline ", a lift compressor is "a mechanized device that compresses gas prior to its introduction into a well for use in lifting well liquids to the surface." They are typically run on diesel engines, which can be loud and disruptive. I believe that all noise from lift compressors should be inaudible from the property line of a protected use, and that any violations be subject to the penalties laid out in chapter 22. Answer: Staff is of the opinion that it is unreasonable to require noise from lift compressors to be inaudible from a property line of a Protected Use. All activities generate some level of noise. Instead, the state and cities regulate noise when the noise rises to a level that reasonable people would consider it to be disturbing the peace (a factual inquiry) or to a level that exceeds 85 dB under state law, which is presumed to disturb the peace. Further, adopting a requirement that noise be inaudible will present enforcement problems, such as in the prosecution of violations in municipal court. For example, the City would have to explain why one noise is prohibited to be heard, yet many others, some which may be louder than lift compressors, are allowed. 3. Air monitoring was suggested in the 2012 ordinance, but we have yet to enact anything. I would like to see the City define a clear method within this ordinance for monitoring the air surrounding gas wells in order to fulfill that promise, and to protect the health, safety, and welfare of the citizens. How will the air be monitored, where will that happen, how often, and who is in charge of paying for that? Answer: Please see Q &A, Question No. 7, from December 16, 2014 P &Z & City Council Joint Public Hearing. Staff is of the opinion that the City can conduct air monitoring and pay for air monitoring. It should be noted that Staff is presenting a "production monitoring" program to the Council for consideration in these ordinance amendments. The program may accomplish many 10 of the objectives of the air monitoring program some desire. It will monitor for fugitive emissions from equipment operated by the gas well companies. Staff has received a quote from the environmental professional who is conducting the air monitoring program in Flower Mound for this work in Denton. The program would require the operator to bear the costs of the program. The inspection schedule is set forth in the fee ordinance, which is part of the gas well amendments under consideration. Please see Q &A, Question No. 9, from December 16, 2014 P &Z & City Council Joint Public Hearing for more detail. 4. What exactly are the EPA standards for venting /flaring? Answer: On April 17, 2012, the U.S. Environmental Protection Agency (EPA) issued cost - effective regulations to reduce harmful air pollution from the oil and natural gas industry while allowing continued, responsible growth in U.S. oil and natural gas production. The final rules include the first federal air standards for natural gas wells that are hydraulically fractured, along with requirements for several other sources of pollution in the oil and gas industry that were not previously regulated at the federal level. A key component of the final rules is expected to yield a nearly 95 percent reduction in VOCs emitted from gas wells each year. This significant reduction would be accomplished primarily through the use of a process known as a "reduced emissions completion" or "green completion" to capture natural gas that currently escapes to the air. During this process, special equipment separates gas and liquid hydrocarbons from the flowback that comes from the well as it is being prepared for production. The gas and hydrocarbons can then be treated and used or sold, avoiding the waste of natural resources that cannot be renewed. Since January 1, 2015, operators must capture the gas and make it available for use or sale, which they can do through the use of green completions. Green completions are not required for: 1) New exploratory ( "wildcat ") wells or delineation wells (used to define the borders of a natural gas reservoir), because they are not near a pipeline to bring the gas to market. 2) Hydraulically fractured low - pressure wells, where natural gas cannot be routed to the gathering line. Operators may use a simple formula based on well depth and well pressure to determine whether a well is a low - pressure well. 3) Owners /operators must reduce emissions from these wells using combustion during the well - completion process. Pneumatic controllers used at a well site are limited to no more than an emission rate of six (6) cubic feet of gas per hour at an individual controller. New storage tanks with VOC emissions of 6 tons a year or more must reduce VOC emissions by at least 95 percent. The EPA expects this will generally be accomplished by routing emissions to a combustion device. The final rule also retains the existing 1- ton -per year benzene compliance option for large glycol dehydrators, meaning operators may reduce benzene emissions from large dehydrators to less than 1 ton per 11 year as an alternative to reducing total air toxics emissions by 95 percent. Both existing and new small glycol dehydrators must meet a unit - specific limit for emissions of BTEX (benzene, toluene, ethylbenzene and xylene) that is based on the unit's natural gas throughput and gas composition. These rules apply only to sources that are considered "major sources" of air toxics. A major source annually emits 10 or more tons of a single toxic and 25 tons of a combination of toxics. Also, see Q &A, Question 44, from 12/16/2014 P &Z and City Council Joint Public Hearing. 5. How exactly are home buyers being notified of their proximity to gas wells? Answer: See Q &A, Question 410, from 12/16/2014 P &Z & City Council Joint Public Hearing. 6. How short of notice will be given prior to accessing gas well pad sites for inspection? Answer: The City conducts two inspections for each gas well pad site per year, once in the Spring and the other in the Fall. A written notice is sent to each gas well operator informing them of the upcoming inspections. The written notice also requests a reply confirmation that the gas well operator consents to the inspection. Thereafter, the City will create an internal inspection schedule for the Gas Well Inspectors to follow in performing the inspections. No additional notice is provided to the gas well operators once the gas well inspectors commence their inspection per their internal inspection schedule. The only exception to this inspection process involves EagleRidge, who requested to be present for each inspection at their gas well pad sites. 7. How exactly are we incentivizing operators to co- locate? Please clarify what the ordinance provides. Answer: The ordinance requires any operator seeking a new well to either seek a combining district if it is a new pad site (see 35.22.3) or a consolidation permit if it is an existing pad site (see 35.22.4). Further, a consolidated pad site establishes an enhanced reverse set -back of 600 feet (as opposed to 300 feet for a regular pad site) which will likely result in fewer conflicts with surface activities. Finally, City Staff understands that consolidated sites may be more economical and favored by operators in many circumstances. 8. Freshwater pits are the only pits allowed. Please define "freshwater. Answer: To be considered fresh water, the water must not contain certain constituents in concentrations that surpass ordinance prescribed thresholds. The following table defines the concentration limits for four constituents. Constituent Concentration Limit Total petroleum hydrocarbons (TPH) 15 mg /L Benzene, Toluene, Ethylbenzene, and Xylene (BTEX) volatile organic compounds (VOCs) 500 �Lg /L Benzene 50 �Lg /L Chlorides 3,000 mg /L 12 Three typical sources of freshwater include: 1) Potable water from a municipal or private supply hydrant; 2) Underground water well; or 3) Diverting allowable surface water resources from an existing reservoir. Pit contents can be tested by the City's watershed protection laboratory in order to ensure compliance with the ordinance prescribed thresholds. 9. Page 5, Item E, items 1 & 3 both use the phrase "lot purchasers ". Could that wording be construed to mean that only the original "home builder" will receive the gas well existence notices? Answer: No. The proposed Gas Well Notification Disclosure provision was drafted to provide notice not only to the initial buyer of a home, but to subsequent buyers as well. Subsequent buyers will be provided notice through one of the following three methods: (1) Declaration of Restrictive Covenants; (2) a Notice document filed in the County Clerk's Office; (3) in the lot survey of the home that is typically included in a purchaser's closing documents. 10. What are the potential impacts to a surface owner in the event a consolidated site is located on his /her property? Answer: There may be potential enhanced impacts on the surface owner in this example. The increased reverse setback of 600 feet from a consolidated site (as opposed to 300 feet from a regular site) may result in restriction of a greater amount of the surface area from development, although uses not defined as "protected uses" would not be so impacted. Further, since multiple wells will be located on consolidated sites, activities may continue for a longer period of time. 11. What are the potential impacts to the City if the "reverse setback" was increased to 1,200 feet or greater? Answer: Please see Question A.8 in this Q &A document. 12. What is the extent of the Gas Well Administrator's authority under the Gas Well Ordinance? Answer: The Gas Well Administrator is an administrative official, which means that he has only the authority granted to him. He has no discretionary power and must issue and deny permits based on the objective criteria contained in the ordinance. Our Gas Well Ordinance, both in its current and proposed forms, is drafted in this manner. The Gas Well Administrator must approve or deny permits, site plans, development plats in accordance with the objective criteria listed for each. He has no power to grant variances. Rather, that power lies with the Zoning Board of Adjustment. Further, an applicant whose application is denied has the ability to appeal the Gas Well Administrator's denial to the Zoning Board of Adjustment. 13