HomeMy WebLinkAboutResolution 4776-05-2017 A Resolution
NO. 4776-05-2017
RATIFYING THE EMPLOYMENT OF THE LAW FIRM OF KELLY, HART &
HALLMAN, L.L.P. AS OUTSIDE LEGAL COUNSEL TO PROVIDE LEGAL
REPRESENTATION TO THE CITY OF FORT WORTH IN THE RAILROAD
COMMISSION PERMIT APPLICATION KNOWN AS DOCKET NO. 09-0303267 BY
BLUESTONE NATURAL RESOURCES II, LLC AND AUTHORIZING PAYMENT
IN AN AGGREGATE AMOUNT NOT TO EXCEED$100,000.00
WHEREAS, in December 2016, B1ueStone Natural Resources II, LLC filed an application with the
Railroad Commission for a saltwater disposal well within the City of Fort Worth Docket NO. 09-0303267;
and
WHEREAS, the City of Fort Worth prohibits saltwater injections wells within the City limits by
City Ordinance No. 20166-04-2012 and therefore the City filed its objection to the Railroad Commission
granting of such permit;
WHEREAS, the Railroad Commission has set a hearing on the permit application for September 5-
7, 2017;
WHEREAS due to the complexities of the state rules on the permitting of saltwater injection wells
and the Railroad Commission, it is necessary to hire outside counsel with knowledge on these matters; and
WHEREAS, the law firm of Kelly, Hart & Hallman, L.L.P. possesses the required knowledge and
expertise to assist the City in this matter;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH,TEXAS,THAT:
1. The City ratifies the employment of the law firm of Kelly, Hart & Hallman, L.L.P. as outside
counsel under Chapter VI, § 3 of the City Charter, for legal services related to the Railroad
Commission permit application known as Docket No. 09-0303267 by Bluestone Natural
Resources 11,L.L.C.; and
2. The City is authorized to compensate the law firm of Kelly, Hart & Hallman, L.L.P., in an
aggregate amount not to exceed $100,000.00.
Adopted this 22nd day of May,2017. b4/�. F eRp n0
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By. Mary J. a er, 'ty retary �� 000°o° r
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FoRTIWORTH
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/2/2017 - Resolution.No. 4776-05-2017
DATE: Tuesday, May 2, 2017 REFERENCE NO.: G-18998
LOG NAME: 12SWDWCOUNSEL
SUBJECT:
Adopt Resolution Ratifying the Retention of the Law Firm Kelly, Hart & Hallman, L.L.P, as Outside Legal
Counsel, for a Fee Not to Exceed $100,000.00, Pursuant to Chapter VI, Section 3 of the City Charter, to
Provide Legal Representation to the City of Fort Worth in the Railroad Commission Permit Application
known as Docket No. 09-0303267 By BlueStone Natural Resources II, LLC (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution ratifying the retention of the law firm
of Kelly, Hart& Hallman, L.L.P, as outside legal counsel, pursuant to Chapter VI, Section 3 of the City
Charter, in order to provide legal representation to the City of Fort Worth in the Railroad Commission
permit application known as Docket No. 09-0303267 by BlueStone Natural Resources II, LLC, and
designating in advance, as far as practicable, that the amount to be paid to Kelly, Hart & Hallman, L.L.C,
will not exceed $100,000.00.
DISCUSSION:
In December 2016, BlueStone Natural Resources II, LLC, filed an application (Docket No. 09-0303267) to
the Railroad Commission for a permit for a saltwater disposal well within the City limit, identified as
Cravens Well No.1. The City of Fort Worth prohibits such wells within its City limits by Ordinance No.
20166-04-2012). Therefore, the City immediately filed a letter of protest with the Railroad
Commission. Shortly thereafter, the City of Arlington and the Trinity River Authority also filed protests to
the proposed BlueStone injection well. Since that time, Fort Worth has conducted negotiations with
BlueStone to resolve the issue. However, to date, no resolution has been obtained.
A hearing has been set by the Railroad Commission for September 5-7 to consider this matter, with a
prehearing conference set for August 21 and 22. Because of the complexity of the legal issues involved, it
is advisable to retain outside counsel with specific knowledge of both the state rules on the permitting of
salt water injection wells and exposure to the Railroad Commission.
The law firm of Kelly, Hart & Hallman, L.L.P. was selected to represent the City's interests before the
Railroad Commission because the firm possesses the required knowledge and expertise in matters
involving civil service law and Commission investigations. The City Attorney and the City Manager are
requesting that the City Council ratify the hiring of Kelly, Hart & Hallman, L.L.P., to authorize payment to
the firm for the time it has spent advising the City on the protest of BlueStone's saltwater disposal well
application, and to authorize retention of this law firm for future legal matters on the same issue.
Funds from gas well income will be used to cover expenses incurred for this Agreement.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as appropriated,
Logname: 12SWDWCOUNSEL Page 1 of 2
of the General Fund for the period through September 30, 2017.
FUND IDENTIFIERS (FIDs�:
TO
Fund Department �ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID YearChartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Sarah Fullenwider (7606)
Christa Reynolds (8984)
Additional Information Contact: Judy Lacker (8006)
Logname: 12SWDWCOUNSEL Page 2 of 2