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2012-368s:llegal\our documentslordinances\1214th amendment to gas well moratorium ordinance-draft version.doc ORDINANCE NO. 2� 12-36g AN ORDINANCE AMENDING ORDINANCE NO. 2012-024, AS AMENDED BY ORDINANCE NOS. 2012-126 AND 2012-131, ESTABLISHING A MORATORIUM ON CERTAlN GAS WELL PERMITS FOR GAS WELL DRILLING AND PRODUCTION ACTIVITIES WITHIN THE CORPORATE LIMITS OF THE CITY OF DENTON, TEXAS; PROVIDING FOR AN EXTENSION OF THE MORATORIUM; PROVIDING A CUMULATIVE CLAUSE; PROVIDING A SEVER.ABILITY 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:llegal\our documentslordinances11214th amendment to gas well moratorium ordinance-draft version.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 Council extended the Moratorium Ordinance for an additional period of 75 days by Ordinance No. 2012-231, which ordinance expires on December 18, 2012; and WHEREAS, the City Staff, working 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 Stakeholder Drilling Advisory Group, and has presented to City Council a preliminary report of said research, findings and activities; and WHEREAS, the City Staff has prepared a draft of the ordinance enacting additional oil and gas well standards and procedures, which draft has been further revised two times; and WHEREAS, the draft ordinance was first posted on the City's website on October 2, 2012, a second revised draft ordinance was posted on October 19, 2012, for the purpose of soliciting public review and input; and WHEREAS, both the first and second draft ordinance versions were presented before the Gas Well Drilling Taslc Force at two public hearings, on October 1 and 22, 2012, at which the public was provided the opportunity to comment on both versions of the draft ordinance; and WHEREAS, on October 24, 2012, City Staff presented the second draft ordinance version to the Planning and Zoning Commission at a public hearing, which public hearing was continued for two additional Planning and Zoning Commission regularly scheduled meetings, on November 14 and 28, 2012, so as to solicit as much public comment on the draft ordinance; and WHEREAS, City Staff prepared a third revised draft ordinance version and presented it to the Planning and Zoning Commission at its November 28, 2012 regularly scheduled meeting; WHEREAS, at this same meeting, the Planning and Zoning Commission recommended that the third draft ordinance version be adopted by the City Council; and WHEREAS, on December 18, 2012, the City Council conducted a public hearing regarding the third draft ordinance version, and based on the public comments made and the discussions had, the City Council finds and has determined that additional time is required to fully evaluate all proposed ordinance changes; 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; NOW THEREFORE, Page 2 s:\legallour documents\ordinances112\4th amendment to gas well moratorium ordinance-draft version.doc THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. All of the above recitals are hereby found to be true and correct factual and legislative determinations of the City of Denton, Texas and are hereby approved and incorporated by reference as though fully set forth herein. SECTION 2. The moratorium established by Ord. No. 2012-024, and as amended and extended by Ord. Nos. 2012-126 and 2412 231, hereby is further extended until and including February 20, 2013 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 Chapter 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. SECTION 3, This 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 4. 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 take effect upon its passage. PASSED AND APPROVED this the 18th day of December, 2012. MARK A. OU S, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY �� BY: Page 3 s:\legallour documentslordinances11214th amendment to gas well moratorium ordinance-draft version.doc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 4