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2012-231s:llegallour documentslordinances\12\3d amendment to gas well moratorium ordinance final version 2.doc ORDINANCE NO. 2012-231 AN ORDINANCE AMENDING ORDINANCE NO. 2012-024, AS AMENDED BY ORDINANCE NO. 2012-126, ESTABLISHING A MORATORIUM ON CERTAIN GAS WELL PERMITS FOR GAS WELL DRILLiNG AND PRODUCTION ACTIVITIES WITHIN THE CORPORATE LIMITS OF THE CITY OF DENTON, TEXAS BY REDEFINING EXEMPTIONS, PROVIDING DEFINITIONS AND REPLACING TERMS; ESTABLISHING EXCLUSIONS AND REVISING VARIANCE PROCEDURES; PROVIDING FOR EXTENSION OF THE MORATORIUM; PROVIDING A CUMULATIVE CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, is a home rule municipality located in Denton County; and WHEREAS, the City Council of the City of Denton is aware of an increased interest in gas exploration and production in the North Central Texas area; and WHEREAS, the City Council has received from the public various environmental and land use compatibility concerns regarding the inadequacy of the City's ordinances and regulations now applicable to the Gas well drilling and production activities (as hereinafter defined), including, but not limited to, health, water quality, air quality, noise, lighting and nuisances; and WHEREAS, the City Council has conducted such investigations as it deemed necessary to determine the state of regulations now applicable to the Gas well drilling and production activities under the current ordinances and regulations of the City of Denton; and WHEREAS, the City Council, after due and careful consideration, finds that there are significant and compelling environmental and land use compatibility concerns associated with the Gas well drilling and production activities that the current regulations may not be adequate to address; and WHEREAS, the City Council believes that it is reasonable and necessary to update municipal ordinances and regulations to provide for a fair and equitable system of regulations relating to the Gas well drilling and production activities so as to protect the property interests of mineral estate owners while protecting the rights, opportunities and property interests of surface estate owners and citizens of the City of Denton, Texas; and WHEREAS, it is important and necessary to preserve the status quo while a review and update of these regulations are being developed and implemented to ensure compatible land uses that do not negatively impact property values or neighborhood character; and WHEREAS, the City Council of the City of Denton, Texas adopted Ordinance 2012-024 (the "Moratorium Ordinance") on February 7, 2012, which Moratorium Ordinance imposed a 120-day moratorium on the receipt, processing and approval of certain applications for permits to authorize oil and gas exploration and production activities, as prescribed therein, within the corporate limits of the City of Denton, Texas; and s:llegallour documentslordinances\1213d amendment to gas well moratorium ordinance final version 2.doc WHEREAS, the City Council extended the Moratorium Ordinance for an additional period of 120 days by Ordinance No. 2012-126, which ordinance expires on October 4, 2012; and WHEREAS, the City Staff, worlcing with the Gas Well Drilling Task Force, has conducted research, has received and reviewed public input from 12 public hearings conducted by the Gas Well Drilling Task Force, has reviewed the studies and report by the Denton Stalceholder Drilling Advisory Group, and has presented to City Council a preliminary report of said research, findings and activities; and WHEREAS, the City anticipates that a draft of the ordinance enacting additional oil and gas well standards and procedures will be forthcoming in the irnmediate future; and WHEREAS, the City Council finds and has determined that additional time is required for public review of the draft regulations before the Gas Well Drilling Task Force, the Planning and Zoning Commission and the City Council; and WHEREAS, the City Council further finds that it is in the best interest of the City and the public to extend the moratorium to a date certain in order to allow for the completion of regulatory changes to the City's ordinances governing Gas well drilling and production activities and the procedures related thereto; and WHEREAS, the Moratorium Ordinance established exemptions from the moratorium for certain categories of gas well permits; and WHEREAS, it appears that confusion has arisen concerning the applicability of the exemptions as stated in the Moratorium Ordinance; and WHEREAS, the City Council finds and has determined that it in the best interests of the City to clarify the exemption provisions and to resolve any ambiguities presented in the Moratorium Ordinance regarding such exemptions by amending the same; and WHEREAS, the City Council of the City of Denton recognizes that there may be individuals or businesses who may suffer an undue hardship created by the moratorium and may have a legitimate reason to seelc a variance from the requirements of this moratorium; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Ordinance No. 2012-024, Section 1, as extended by Ordinance No. 2012- 126, hereby is amended to read: SECTION 1. A moratorium is hereby imposed on the receipt, processing and approval of applications for gas well permits within the corporate limits of the City of Denton, and any applications for specific use permits, site plans, development plans and plats of any nature or type, pursuant to the Denton Development Code as they relate to Gas well drilling and production activities, or any part thereof, in the City of Denton, subject to the exemptions stated in Section 2 of this ordinance. Page 2 s:llegallour documents\ordinances112\3d amendment to gas well moratorium ordinance final version 2.doc SECTION 2. Ordinance No. 2012-024, Section 2, as extended by Ordinance No. 2012- 126, hereby is amended to read: SECTION 2. The following applications are exempt from the moratorium: a. Applications for gas well permits that are in sequence with an approved specific use permit, site plan, development plan or gas well plat approval, under the terms of the City's existing ordinances relating to gas well drilling and production activities; and b. Applications for specific use permits, site plans, development plans or plat applications that authorize gas well drilling and production activities, or gas well permits, which were filed before the effective date of this moratorium; and c. Applications for permits relating to the drilling of wells, which do not require hydraulic fracturing, in conjunction with the injection or storage of natural gas as personal property beneath the surface of the earth. SECTION 3. Section 5 of Ord. No. 2012-024, as amended by Ord. No. 2012-126, is further amended to add the following provisions at the end of Section 5 to read: The City Council shall apply the following criteria in determining whether or not to grant the variance: (1) Application of the moratorium will create an undue hardship. (2) The situation creating the undue hardship is neither self- imposed nor generally affecting all or most properties subject to the same regulations; (3) The relief sought will not be harmful to the permitted use of adj acent lawful uses; and (4) The granting of the variance sha11 be in harmony with the purpose of the moratorium. In granting the variance, the City Council may impose conditions that are consistent with the purpose of this ordinance, SECTION 4. The moratorium established by Ord. No. 2012-024, and as extended by Ord. No. 2012-126, hereby is further extended until and including December 18, 2012 under the terms as herein amended, unless sooner terminated on the effective date of an ordinance adopted by the City Council implementing amendments to the gas well permit regulations contained in chapters 35-16 and 35-22 of the Denton Development Code, pursuant to the recommended changes to the regulations by City staff, as charged in Section 3 of the Moratorium Ordinance. Page 3 s:llegal\our documentslordinances112\3d amendment to gas well moratorium ordinance final version 2.doc SECTION 5. The following definitions apply to the Moratorium Ordinance, as amended by this Ordinance: a. The term "Mineral Activities" as defined in the Moratorium Ordinance, shall be replaced in its entirety by the term "gas well drilling and production activities," which shall have the meaning ascribed to the term in DDC, chapters 35.16 and 35.22, and the Moratorium Ordinance hereby is amended to effect the same. b. The term "oil and gas well permit," as set forth in the Moratorium Ordinance, shall be replaced in its entirety by the term "gas well permit," which shall have the meaning ascribed to the term in Ord. No. 2010-181, amending DDC, Chapters 35.16 and 35.22, and the Moratorium Ordinance hereby is amended to effect the same. SECTION 6. T`his Ordinance shall be cumulative of all provisions of the ordinances of the City of Denton, Texas, as amended, except where ,the provisions of this Ordinance are in direct conflict with the provisions of such ordinances, in which event the terms of this Ordinance, during its effectiveness, shall prevail over any other conflicting ordinances or provisions thereof. SECTION 7. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared void, ineffective or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation herein of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. SECTION 8. This Ordinance shall talce effect upon its passage. PASSED AND APPROVED this the l lth day of September, 2012. ��' � �� ,. . ; ..� ��s' . �. ATTEST: JENNIFER WALTERS, CITY SECRETARY � BY: Page 4 s:Uegal\our documentslordinances11213d amendment to gas well moratorium ordinance final version 2.doc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ����v� ,�.� Page 5