2019-036 Gas Well Notification Disclosure RequirementsDate: March 1, 2019 Report No. 2019-036
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
At the Dec. 4, 2019 Council meeting, during concluding items, Council member Meltzer asked
for a staff report of the feasibility of adopting and enforcing gas well notification disclosure
requirements for new occupants of dwellings located within 1,000 feet of a gas well pad site.
EXECUTIVE SUMMARY:
There are currently several means for property owners to receive notification of their proximity to
gas wells. An annual, proactive approach was developed by staff and presented to the Committee
on Citizen Engagement, but staff received no subsequent direction on this issue. There is also an
ongoing effort for to create an opt-in notification option similar to the CodeRed system for gas
well activities.
BACKGROUND:
Staff received an inquiry from City Council regarding the feasibility of adopting and enforcing
gas well notification requirements for new occupants of dwellings within 1,000 feet of a gas well
pad site. Information was presented regarding gas well notifications to the Committee on Citizen
Engagement (COCE) in October 2018 and the agenda backup is attached. At that meeting the
current notification process for gas well site plans, changes in property ownership, and
information available on the website was discussed. Additionally, staff presented an option for
annual mailings to properties within 1,000 feet to inform them of the information and tools
available on the website, however staff did not receive direction from the COCE to move
forward with that option. Currently, individuals are notified of gas well proximity in the
following ways:
• Operators are required to send public notifications to surface property owners within
1,000 feet during gas well site planning.
• New owners are notified during the purchase of property that has been platted within
1,000 feet of a gas well production site.
• Operators are required to send written notices of activities to properties within 1,000 feet
of a gas well production site.
• Information is posted on website on the Gas Well Inspections page, including the notice
of activities and a gas well locator map with inspection reports by well site.
• Staff is also working on the creation of an opt-in notification on the website for the notice
of gas well activities. Individuals that opt-in would receive an email when a new notice of
activities is uploaded.
Notices to renters are more difficult because the City is not informed when new tenants lease a
rental property. An option for notifying these tenants is to mark addresses within 1,000 feet of
gas wells through the utility billing system, flagging those addresses to provide notification of
Date: March 1, 2019 Report No. 2019-036
the proximity to gas wells at the opening of a new utility account. However, not all tenants sign
up for an individual utility billing account as some utilities are handled by the property
owner/manager. If City Council directed staff to move forward with exploring this option
further, staff would work to develop policies, guidelines, standard operating procedures, and
further logistics such as staff time or costs.
CONCLUSION:
While there are options for property owners to receive gas well notifications, proactive
notifications on a regular basis will require further analysis to develop policies and assess staff
time and costs.
ATTACHMENT(S):
Gas Well Notification information presented to COCE
STAFF CONTACT:
Charles Rosendahl
Business Service Manager, Development Services
940-349-8452
Charles.Rosendahl@cityofdenton.com
City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Public Affairs
CM/ DCM/ ACM: Bryan Langley
DATE: October 9, 2018
SUBJECT Receive a report, hold a discussion, and give staff direction regarding gas well communications and notifications.
BACKGROUND The City of Denton is located atop the eastern edge of the Barnett Shale. As a result, numerous gas wells have been drilled within the city limits and extraterritorial jurisdiction. The City of Denton’s first Gas Well Ordinance was adopted in December of 2001 as part of the zoning code and subdivision and land development code. Since its adoption, the City has amended its Gas Well Ordinance from time to time to
address land-use compatibility concerns for gas well drilling and production activities and to reconcile the local ordinance with state law. The current ordinance (Attachment 2) governing Gas Well Drilling and Production is 2015-233 which was adopted August 4, 2015. At the September 11, 2018 City Council meeting, staff presented a work session on the history of gas well
ordinances and setback requirements. During this meeting, Council requested if gas well communications and notifications could be discussed at the next Committee on Citizen Engagement (COCE) meeting.
DISCUSSION The following outlines current notifications required by Ordinance 2015-233 from operators and
developers, as well as additional communications and information the City has made available through the City’s website.
Notifications Required by Ordinance
1. Operator Notifications: Per ordinance 2015-233, the Operator is required to follow a series of public notification steps (outlined in Attachment 3). The types of notifications are summarized below:
Written Notifications
At least 20 days prior to filing a Gas Well Development Site Plan application, notify each surface
property owner within 1,000 feet of the site by US mail.
At least 20 days prior to filing a Gas Well Development Site Plan application, publish a notice in the Denton Record Chronicle for 10 consecutive days.
No later than five days after filing a Gas Well Development Site Plan application, place a sign of no less than three feet by three feet in size at the proposed location.
For activities that include drilling, completing or re-completing, plugging and abandonment (P&A), activity that requires removal of the wellhead, or seismic exploration not involving
City Hall 215 E. McKinney Street
Denton, Texas www.cityofdenton.com
explosive charges, the operator is required to provide written notice to all dwellings within
1,000 feet of the boundary of the site between 10-30 days from the start of the activities. This notification is sent through the US mail.
Signage
A sign must be posted at the entrance of the site when the operator will be drilling, completing or re-completing, P&A, or any other activity that requires removal of the wellhead. The sign must include the date and time activities begin, and 24-hour contact information.
A sign shall be displayed on each side of the fence surrounding the site notifying the public that it is a gas well drilling and production site with site specific information and safety notices.
Emergency Notification
Immediate notification to the City of fires, blowouts, release of hazardous materials, injury, or other incident outside normal operating procedures.
2. Developer Notification Requirements: For a Plat that proposes single- or multi-family residential lots that will be within 1,000 feet of one or more Drilling and Production Sites, except for those Drilling and Production 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 as summarized below:
A note shall be placed on the Plat identifying the site and those proposed lots that are within 1,000 feet of the site. The note includes a statement that advises lot purchasers of the existence of
producing wells on the site and the potential that new wells that may be drilled and fracture stimulated on the site, as well as the possibility that the site may be re-drilled and/or re-fractured in the future.
There shall be depicted on the Plat, and on a lot survey submitted as part of a building permit
application, the location of the Drilling and Production Site(s) in relation to the lots that are within
1,000 feet of a Drilling and Production Site(s).
Include a provision in the Declaration of Restrictive Covenants that advises lot purchasers of the existence of producing wells on the site.
A Notice document that advises lot purchasers of the existence of producing wells on the drilling sites that is recorded with the Denton County Clerk’s Office.
Additional Information Provided by the City Per the Ordinance, in addition to mailing written notices to all dwellings within 1,000 feet of the boundary
of the site between 10-30 days from the start of the activities, operators are required to report Notice of Activities to the City for inspection. Activities that require reporting to the City are Site Preparation, Drilling, Completion, Rework/Workover, Setting Surface Casing, and General Maintenance. Once the City receives notification, the notice is posted in the Notification of Gas Well Activity portal that is found on the Gas Well Inspections page of the City’s website.
Also found on the Gas Well Inspections page is a tool created by staff and revised in spring 2018 called the
Gas Well Locator Map which shows the location of all gas wells. Once inside the map, users can type in their address and choose a search radius to find out how many gas well sites are in the vicinity. The map also provides information on an individual-well basis, including operator info, permits issued, status of the
well, and reports from inspections performed by the City and its contractor, Modern Geosciences. Reports
from the contractor are formatted to include a cover letter with any action items noted, inspection results, photographic documentation, and a padsite map. Technology Services will investigate if current software, or software planned to be purchased for development and permitting, could provide the functionality to
allow residents the ability to enable notifications through the website for any activity at a chosen gas well
site.
The online availability of gas well information was recently highlighted in both the June/July 2018 Resident Update and the October/November 2018 Resident Update. An additional gas well article is scheduled for an upcoming edition of the Citizen Connection, the newsletter that is included in all utility bills. A quick
link was also recently added from the main page of the City’s website to the Gas Well Inspections page for easy navigation and increased awareness. Staff has also received a citizen suggestion to develop a video explaining and demonstrating the various resources and features on the Gas Well Inspections website page and a video presenting an overview of
what the Gas Well Inspections Division does. Staff agrees this would be a helpful resource and will work on developing a video.
Emergency Notifications Residents are also encouraged to sign up for the City of Denton’s CodeRed system. CodeRed signups are
promoted through a quick link on the City’s homepage, social media posts, a feature graphic in the August/September 2018 Resident Update, and handouts during Denton Public Safety Day and other information tables throughout the year. In addition to notifying the public during severe weather updates and other emergencies, staff is able to utilize this system in case of a gas well emergency. In the event of a gas well emergency, staff is able to identify the well site on the map and capture anyone signed up for
CodeRed within a specified boundary. Public Safety can send out the necessary information to the residents directly affected.
Additional Option In addition to increased promotion and awareness of the tools available online through the City’s website,
staff has drafted another option for discussion to send an annual notification targeted to residents that are within 1,000 feet of a Gas Well site. The letter would serve to simply notify residents that they are located near a gas well, and explain the online resources for them to be able to gather additional information.
Attachment 5 is a map showing the 3,389 intercepted parcels of land that fall within those parameters. Within these parcels, staff would gather mailing information for both the property owners on file with the
County and tenant information from utility billing in an effort to send the letter to both parties. Although this would capture a majority of the addresses, it does not guarantee that every single address may receive. The estimated cost of mailing this one-page letter via regular U.S. mail based upon the estimated amount of addresses is $4,500 to $5,500, but could vary depending on the format of the notice, postage rates, and mailing services.
Legal Considerations In previous discussions, City Council Members have asked whether or not the City could require operators and developers to provide notice to residents beyond 1,000 feet of a gas well site. Staff believes that the City could not impose additional notification requirements on operators or developers by local ordinance
under the current state legislation without being challenged by operators and developers.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence;
Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Safe, Liveable & Family-Friendly Community
Related Goal: 4.2 Seek clean and healthy neighborhoods in Denton
EXHIBITS 1. Agenda Information Sheet 2. Gas Well Drilling and Production Ordinance 2015-233
3. Gas Well Notification Requirements Per Ordinance No. 2015-233 4. Gas Well Notifications Requirements for Plats Per Ordinance No. 2015-233 5. Gas Well Notifications Map for Letter Option
Respectfully submitted: Sarah Kuechler Director of Public Affairs Prepared by:
Stuart Birdseye Management Analyst
GAS WELL NOTIFICATION REQUIREMENTS
PER ORDINANCE NO. 2015‐233
Page 1 of 2
GAS WELL INSPECTIONS DIVISION
DEVELOPMENT SERVICES DEPARTMENT
Phone: (940) 349-8372 | Web: www.cityofdenton.com/gaswellinspections
Applications:
At least 20 days prior to filing a Gas Well Development Site Plan application, the Operator shall notify each
surface property owner within 1, 000 feet of the site.
o Notification will be by US mail with proper addresses & postage.
o The notice shall identify the Operator and give the address and phone number of the Operator’s
representative, an internet link for information on the proposed request, and contact numbers
for City staff (940‐349‐8372).
At least 20 days prior to filing a Gas Well Development Site Plan application, the Operator shall also publish
a notice in the Denton Record Chronicle for 10 consecutive days.
o An affidavit by the printer or publisher of the newspaper indicating publication of the notice shall
be filed with the application and will be prima facie evidence of such publication.
o The notice shall identify the Operator and give the address and phone number of the Operator’s
representative, an internet link for information on the proposed request, and contact numbers
for City staff (940‐349‐8372).
No later than five days after filing a Gas Well Development Site Plan application, the Operator shall erect
a sign, no less than three feet by three feet, upon the premises for which the Gas Well Development Site
Plan was proposed.
o The sign shall be located in a conspicuous place or places upon the property at a point near the
right‐of‐way adjacent to such property.
o The sign shall state “A Gas Well Development Site Plan has been requested, which if approved,
would authorize the drilling of multiple gas wells for this site.”
o The sign shall further set forth that additional information can be acquired by telephoning the
Operator at the number indicated on the sign.
o The sign shall remain at the site for the duration of the Gas Well Development Site Plan.
General Notice:
Electronic notice to the City (https://www3.cityofdenton.com/gaswellactivity/) required not more than
30 days or less than 10 days from the start of the following activities:
o Drilling, Workover, Completion or Re‐Completion, P&A, any other activity that requires removal
of the wellhead, and seismic exploration not involving explosive charges
Surface Casing – Electronic notice to the City (https://www3.cityofdenton.com/gaswellactivity/) within 24
hours of setting surface casing
Page 2 of 2
GAS WELL INSPECTIONS DIVISION
DEVELOPMENT SERVICES DEPARTMENT
Phone: (940) 349-8372 | Web: www.cityofdenton.com/gaswellinspections
General Notice (cont.):
Written notice to all dwellings within 1,000 feet of the boundary of the site not more than 30 days or less
than 10 days from the start of the activities. Notification will be by US mail with proper addresses &
postage.
o Shall include where the activities will be conducted, activities in reasonable detail, duration of the
activities, and the time of day that the activities will be conducted.
o Shall include Operator’s address and 24‐hour phone number
o Activities include:
Drilling, Completion or Re‐Completion, P&A, any other activity that requires removal of
the wellhead, or seismic exploration not involving explosive charges.
Signage:
Notice of Activities
o A sign must be posted at the entrance of the site giving the public notice of the following activities:
Drilling, Completion or Re‐Completion, P&A, or any other activity that requires removal
of the wellhead.
o The sign must include:
Date and the time the activities will begin
Name, address, and 24 hour phone number
Each Drilling and Production Site
o A sign shall be displayed on each side of the fence surrounding the site. The sign shall have a
surface area of not less than 2½ by 2½ feet or more than 4 by 4 feet, shall be lettered in minimum
4 ‐inch lettering, and shall include the following sentences:
“THIS IS A GAS WELL DRILLING AND PRODUCTION SITE. THIS SITE MAY BE THE SUBJECT
OF FURTHER DRILLING AND PRODUCTION OR HYDRAULIC FRACTURING.”
o A sign reading “DANGER NO SMOKING ALLOWED.”
o Additional signs shall be posted on each Drilling and Production Site which contain the following
information:
Well Identification (API) Number;
Operator’s name, telephone number, and business mailing address;
Address of Drilling and Production Site;
The number for emergency services (911);
The telephone number of the City' s Gas Well Division (940‐349‐8GAS); and
The telephone number of the TCEQ's Regional Office.
PLAT NOTIFICATION REQUIREMENTS
PER ORDINANCE NO. 2015‐233
Page 1 of 1
GAS WELL INSPECTIONS DIVISION
DEVELOPMENT SERVICES DEPARTMENT
Phone: (940) 349-8372 | Web: www.cityofdenton.com/gaswellinspections
DENTON DEVELOPMENT CODE – SUBCHAPTER 35.16.7
Lots, Access, Common Areas and Gas Well Notification Disclosure
E. Gas Well Notification Disclosure. A Plat that proposes single‐ or multi‐family residential lots that will be
within 1, 000 feet of one or more Drilling and Production Sites, except for those Drilling and Production
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 Drilling and Production Site(s) and those
proposed lots that are within 1, 000 feet of the Drilling and Production Site(s). Said note shall also
include a statement that advises lot purchasers of the existence of producing wells on the Drilling
and Production Site(s), the possibility of new wells that may be drilled and fracture stimulated on
the Drilling and Production Site(s), as well as the possibility that gas wells on the Drilling and
Production Site(s) may be redrilled and /or re‐ fracture stimulated in the future.
2. There shall be depicted on the Plat, and on a lot survey submitted as part of a building permit
application, the location of the Drilling and Production Site(s) in relation to the lots that are within
1,000 feet of a Drilling and Production 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 Drilling and Production Site(s), the
possibility that new wells may be drilled and fracture stimulated on the Drilling and Production
Site(s), as well as the possibility that gas wells on the Drilling and Production 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 Drilling
and Production Site(s), the possibility that new wells may be drilled and fracture stimulated on
the Drilling and Production Site(s), as well as the possibility that gas wells on the Drilling and
Production 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 Sections E.3 and E.4 shall be approved by the City Attorney.
Gas Well Citizen Notifications1000ft Buffer
Date: 9/14/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather for reference purposes. These maps are the property of the Cityof Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate information possible. No warranties, expressed or implied, are providedfor the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
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Gas Well
City Parcels Intersecting 1000ft Buffer (3,889)