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Home My WebLink About2016-016sAlegal\our documents\gas well documentsA6\planning & development gas well fee ordinance.docx ORDINANCE NO. 2016-016 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, REPEALING ORDINANCE NO. 2013-248 AND ENACTING A NEW ORDINANCE RELATING TO PLANNING AND DEVELOPMENT FEES AS IT CONCERNS: GAS WELL DRILLING AND PRODUCTION IN THE CITY OF DENTON AND ITS EXTRATERRITORIAL JURISDICTION; PRODUCTION MONITORING OF DRILLING AND PRODUCTION SITES AS REQUIRED BY THE CITY' S GAS WELL DRILLING AND PRODUCTION ORDINANCE; ROAD DAMAGE REMEDIATION FEE CALCULATIONS DUE TO DAMAGE TO CITY OF DENTON ROADWAYS FROM GAS WELL DRILLING; ASSESSMENT OF PENALTIES AND INTEREST; 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 enacted Ordinance 2015-233 on August 4, 2015, thereby amending the City's regulations relating to gas well drilling in the City in order to comply with HB 40 (Texas Natural Resources Code, Sec. 81.0523) enacted by the Texas Legislature on May 18, 2015; and WHEREAS, the City Council deems it prudent to harmonize Ordinance 2015-233 and the assessment of fees associated with gas well drilling and production and associated activities; and WHEREAS, all fees assessed under this Ordinance have been comprehensively reviewed, are fair and reasonable, and do not exceed the reasonable cost to the City in providing the scheduled service; and WHEREAS, the City Council deems it in the best interest of the City to allow a short period of fee reduction in order to encourage gas well operators to file Site Plans on those gas well drilling and production sites existent in the City as of the effective date of this Ordinance; 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 Planning and Development Fee Schedule for gas well production is set forth in Exhibit "A", which Exhibit is incorporated herein as though set forth in full, and is hereby adopted. SECTION 3. The Planning and Development Fee Schedule for production monitoring, as required by Section 35.22.2.G. Lb. of Ordinance No. 2015-233 (the "Gas Well Ordinance") for gas well operators who have received a reduction to the setback requirements in said Ordinance, is set forth in Exhibit "B", which Exhibit is incorporated herein as though set forth in full, and is hereby adopted. SECTION 4. The Road Damage Remediation Fee Calculation Formula adopted by Ordinance No. 2013-248 remains unchanged and is hereby re -adopted as part of this Ordinance, which fee calculation formula is set forth in Exhibit "C". SECTION 5. Planning and Development fees are due and owing at the time of application and delinquent if not paid at that time. No permit will issue until payment is made. Inspection fees are due and owing on or before the 301h day following the end of the month when any inspection(s) are performed and 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 Ordinance 2015-233; or, in the event of failure to notice the City of activities specified in Ordinance 2015-233, at the time the operator embarks upon such specified activities, and are delinquent thereafter. Production monitoring fees are due and owing on or before the 30th day following the end of the when any inspection(s) are performed and are delinquent thereafter, and will be billed to the operator of record. 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 of any fees assessed. 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. Ordinance 2013-248 is hereby superseded and repealed. SECTION 7. This ordinance shall become effective immediately. PASSED AND APPROVED this, the _ day of - ,... W , 2016. �-o C Y 'J'S, MAY (:R Page 2 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: A.PP' VED TO LEGAL FORM: AN11"'A BURGESS, CITY ATTORNEY BY:...._"�,..ww_w Page 3 Exhibit "A" Planning and Development Fee Schedule Gas Well SUP Review - Watershed Protection Permit (WPP) $12,925 Watershed Protection Permit $265 ......._.. . Gas Well 5.��.._......___.......... a.-..... .......��..-,.......m UP Review as Part of PD/MPC Review $500 Gas Well Development Site Plans ; Initial Review First 2 years $3,960 Initial Review -After 2 years $7,570 Amendment (non -SUP related) �...., ...m ........ ...... ..m�..,,. ._ $3,960 With SUP Amendment - First 2 years $5,470 With SUP Amendment - After 2 years $8,070 Gas Well Development Plats Initial Review V80 Amendment 80 Additional Fees Char ed for � g r Gas Well Development Site and Plats, if applicable,.,,,,,"-,,- Additional Fee for Engineering Review .......� � $415 Additional Fee for Full Landscape Plan Review (includes initial inspection and one $495 follow-up inspection) �--�-�65 Additional Fee for 2nd Follow -Up Inspectionsite-is _ .....�..�� p on (3`d site visit) for Landscape Plan -�- ........................ � .. n.._...-. $265 d iFee for Full Tree Mitigation Review (includes initial inspection and one Additional $395 follow-up _ Additional Fee for 2nd Follow -Up Inspection (3"d site visit) for Tree Mitigation Plan $165 Annual Inspection and Administration Fee (within City Limits) per well located on the same Drilling and al inspections) . Production Site (covers two annual -- a. ..� - __.. 1-2 wells $1,125 per ...�.. e.-.a. nm.................... ...... m ....- 3-5 wells $900 per _........ .....-...uu__.........�.. .._ ........-. >_ 6 wells $500 per Additional Fee for 2 nd Follow -Up Inspection 3 d site visit - Inspection Administration Fee (within TJ) pp...... Annual Ins p �( n ETJ) per Drilling and Production Site (covers two annual inspections) 1 well on site $325 ,_.. .......... >_ 2 wells on site $720 -..m�........... ....... .... Additional Fee for 2"d Follow -Up Inspection (3 d site visit) ........... $40 Erosion and Sediment Control and one follow-up inspection) per Annual Inspection (covers initial inspection . $205 each Drilling and Production Site _.........—.—_ .............. _......_.m ......... Additional Fee for 211 Follow -Up Inspection (3 d site visit) $175 Transfer of Operation Per Well $300 Maximum $720 Gas Well Permits First Permit issued under a Gas Well $5 Development Site Plan p 530 Each Subsequent Permit issued under a Gas Well Development Site Plan $370 Initial Gas Well Inspections - Includes Initial Erosion Control Review (required for $1 720 each Gas Well Permit, first or subsequent) Page 4 EXHIBIT "B" Production Monitoring Fee Schedule Page 5 EXHIBIT C ROAD DAMAGE REMEDIATION CALCULATION Initial Drilling and Fracturing - Piped Water Construction AASHTO New Road ( Cost/Lane Mile Design Life Consumptive Consumptive Type 2013 (ESAL) Use (ESAL) Use % 1 $67,500 1,000 719.82 71.982% II $128,503 13,000 719.82 5.537% 111 $150,920 250,000 719.82 0.288% IV $275,000 1 1,600,000 719.82 0.045% Initial Drilling and Fracturing - Hauled Watei Construction AASHTO Road Cost/Lane Mile Design Life Consumptive Consumptive Type 2013 (ESAL) Use(ESAL) Use % 1 $67,500 1,000 1567.52 156.752% II $128,503 13,000 1567.52 12.058% III $150,920 250,000 1567.52 0.627% IV $275,000 1 1,600,000 1567.52 0.098% Assessment Road Damag Assessment Per Lane Mile Percentage Per Lane Mile $48,588 55.097% $37,190 $7,115 4.238% $5,446 $435 0.220% $332 $124 0.034% $94 Assessment !Road Damage Assessment Per Lane Mile Percentage Per Lane Mile $105,808 139.867% 1 $94,410 $15,495 10.759% 1 $13,826 $946 0.559% $844 $270 0.087% $239 Fracturing - Piped Water Construction AASHTO I Road Cost/Lane Mile Design Life Consumptive Consumptive Assessment Road 132rnaait Assessment Type 2013 (ESAL) Use (ESAL) Use % Per.Lane Mile Percentage I Per Lane Mile 1 $67,500 1,000 315.57 31.557% $21,301 I 14.672% $9,904 II $128,503 13,000 315.57 2,247% $2,887 1.129% $1,451 III $150,920 250,000 31557 0.126% $190 0.059% $89 IV $275,000 1,600,000 315.57 0-073% $201 0.009% $25 Fracturing - Hauled Water Construction AASHTO Road Cost/Lane Mile Design Life Consumptive Consumptive Assessment ?Road Darnag6 Assessment Tvoe 2013 (ESAL) I Use (ESAL) Use % Per Lane Mile Percentage Per Lane Mile 1 $67,500 1,000 1163.27 116.327% $78,521 99.442% $67,123 II $128,503 13,000 1163.27 8.948% $11,498 7.649% $9,829 III $150,920 250,000 1163.27 0.465% $702 0.398% $601 IV $275,000 1,600,000 1163.27 0.073% $201 0.062% $171 Fee Calculation Formula Access Lane 1 Road Miles Per Assessment Assessment Type Plat Per Lane Mile Per Rcad T I x it x 111 x IV x I Total Assessment (see Note #5) $7,500 NOTES: 1. Road Type I is six inch (6") flex base with chip seal; 2. Road Type II is six inch (6") flex base with chip seal and a two inch (2") asphalt overlay; 3. Road Type III is six inch (6") treated subgrade with six inches (6") of asphalt; 4. Road Type IV is six inch (6") treated subgrade with eight inches (8") of asphalt; 5. Minimum charge for Road Damage Remediation is $7,500 per well; 6. Maximum charge for Road Damage Remediation is up to the maximum Assessment Per Lane Mile per well as shown above.