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HomeMy WebLinkAboutOrdinance 18332-10-2008ORDINANCE NO. 18332-10-2008 AN ORDINANCE EXTENDING THE MORATORIUM ON THE ACCEPTANCE OF APPLICATIONS FOR SALT WATER DISPOSAL WELLS PENDING CONSIDERATION OF REVISED REGULATIONS REGARDING SALT WATER DISPOSAL WELLS IN THE CURRENT GAS DRILLING ORDINANCE OF CHAPTER 15 OF THE CITY CODE; PROVIDING A SEVERABILITY CLAUSE AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on December 11, 2001, the City Council adopted Ordinance Number 14880 regulating gas drilling within the city limits of Fort Worth; and WHEREAS, the Ordinance adopted in December of 2001 prohibited salt water disposal wells within the city limits of Fort Worth; and I~EREAS, since 2001 over five hundred permits have been issued for drilling and production of gas within the city limits; and WHEREAS, in the past five years, gas drilling and production has moved from sparsely populated areas in the northern part of the City to more densely urbanized areas in the southern, western and eastern portions of the City; and WHEREAS, in December of 2005, the City Council appointed a task force composed of representatives of the gas industry, developers and neighborhood representatives to study revisions to the gas drilling ordinance that would improve the quality of life for those citizens working and living near the drilling sites; and WHEREAS, the task force recommended increasing the permitted distance requirements for high impact permits, increasing notification to the citizens of Fort Worth, additional noise abatement procedures, site security, signage, and other revisions that will provide additional protections of surface property rights, but continue to allow access to the minerals; and WHEREAS, an additional concern raised by the task force was the amount of truck traffic on city roads as a result of drilling within the City and the hauling of salt water to salt water disposal wells outside the city limits; and WHEREAS, before adoption of the proposed revised Ordinance on June 13, 2006, regulations were added to allow salt water disposal wells within the city limits in industrially zoned districts for lease use only, provided the salt water was injected into the Ellenberger Formation and the casing is cemented to the surface, for the purpose of reducing truck traffic related to salt water disposal; and WHEREAS, since the adoption of Ordinance Number 16986-06-2006, a variance request was submitted for the City Council's consideration to allow salt water to be injected into the Caddo Sands formation without cementing the casing to the surface, raising concerns about surface and ground water contamination ;and WHEREAS, on October 3, 2006, the City Council adopted Ordinance No. 17224-10- 2006, establishing a moratorium until January 16, 2007, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to explore the effects of and alternatives to salt water injection wells; and WHEREAS, on January 9, 2007, the City Council adopted Ordinance No. 17361-01- 2007 extending the moratorium until March 20, 2007, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to further explore the effects of and alternatives to salt water injection wells ;and WHEREAS, on March 20, 2007, the City Council adopted Ordinance No. 17443-03- 2007 extending the moratorium until July 31, 2007, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to allow the staff and City Council time to :further study the impact and effects of salt water wells within the city limits, any alternative methods available for the disposal of the salt water; and the current state laws and city regulations for the disposal of salt water within the city limits of Fort Worth; and WHEREAS, on July 24, 2007, the City Council adopted Ordinance No. 17667-07-2007 extending the moratorium until October 31, 2007, on the acceptance of applications for saltwater disposal wells as regulated by the Gas Drilling Ordinance to allow the staff time to meet with representatives of the gas industry, developers and neighborhood representatives to discuss alternative methods available for the disposal of the salt water; and VVI3EREAS, on October 23, 2007, the City Council adopted Ordinance No. 17846-10- 2007 extending the moratorium until April 30, 2008, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to allow the staff time to meet with representatives of the gas industry, developers and neighborhood representatives to discuss alternative methods available for the disposal of the salt water; and 2 WHEREAS, in March of 2008, the City Council again appointed a task force composed of representatives from the gas industry, developers and neighborhood representatives to study further revisions to the Gas Drilling Ordinance to continue to improve the quality of life for those citizens working and living near the drilling sites;. WI~REAS, on Apri122, 2008, the City Council adopted Ordinance No. 18063-04-2008 extending the moratorium until October 31, 2008, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to allow the staff tune to meet with representatives of the gas industry, developers and neighborhood representatives to discuss alternative methods available for the disposal of the salt water; and WHEREAS, the City is currently participating in a pilot program with Chesapeake Operating Company, involving salt water injection and salt water pipelines. In order to provide staff time to evaluate all aspects of the program and its results, an extension to July 31, 2009, is advised; and WHEREAS, adoption of the attached Ordinance would extend the moratorium from October 31, 2008, to July 31, 2009, and maintain the status quo while the staff conducts the pilot program with Chesapeake at the Brentwood site located on East First Street next to the old Arc Park; and WHEREAS, following the conclusion of the pilot program, the staff would present to the City Council proposed revisions to the current Gas Drilling Ordinance regulating salt water disposal wells within the city limits of Fort Worth; and WHEREAS, the Ordinance would not apply to applications that were accepted by the City before enactment of the Ordinance on October 3, 2006, first establishing the .moratorium; and WIiEREAS, all findings in Ordinance Nos. 17224-10-2006, 17361-O1-2007, 17443-03- 2007, 17667-07-2007, 17846-10-2007 and 18063-04-2008 are reaffirmed. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, AS FOLLOWS: SECTION 1. The expiration of the moratorium on acceptance of applications of any type of salt water disposal wells, enacted pursuant to Ordinance No. 17224-10-2006, as extended by 17361-01- 3 2007, 17443-03-2007, 17667-07-2007, 17846-10-2007 and 18063-04-2008 is hereby extended from October 31, 2008, to July 31, 2009, at 11:59 p.m., or until the City Council terminates the moratorium, whichever occurs first. SECTION 2. All provisions of Ordinance No. 17224-10-2006, as extended by Ordinance No. 17361- 01-2007, 17443-03-2007, 17667-07-2007, 17846-10-2007 and 18063-04-2008, with the exception of the expiration date extended by Section 1 of this Ordinance, shall remain in full force and effect. SECTION 3. 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 final decree of a court of competent jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and 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 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: .. ~~ Assistant City orney ADOPTED: October 14 2008 EFFECTIVE: 4 Ciao ®f Fort In/~rth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/14/2008 -Ord. No. 18332-10-2008 DATE: Tuesday, October 14, 2008 LOG NAME: 12MORATORIUM6EX REFERENCE NO.: G-16317 SUBJECT: Adopt Ordinance Extending the Moratorium on the Acceptance of Applications for Salt Water Disposal Wells as Regulated by Article II, Chapter 15, of the City Code Regarding Gas Drilling and Production RECOMMENDATION: It is recommended that the City Council adopt the attached Ordinance extending the moratorium to July 31, 2009, for acceptance of applications for salt water disposal wells as regulated by Article II, Chapter 15 of the City Code, regarding Gas Drilling and Production. DISCUSSION: On October 3, 2006, the City Council adopted Ordinance No. 17224-10-2006, establishing a 60 day moratorium on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance. The moratorium was extended on January 9, 2007, until March 20, 2007, by Ordinance No. 17361-01-2007; and again extended on March 20, 2007, until July 31, 2007, by Ordinance No. 17443-03- 2007. On July 24, 2007, by Ordinance No. 17667-07-2007, the moratorium was extended a third time to October 31, 2007. On October 23, 2007, by Ordinance No. 17846-10-2007, the moratorium was extended a fourth time to April 30, 2008. On April 22, 2008, by Ordinance No. 18063-04-2008, the moratorium was extended a fifth time to October 31, 2008. On December 11, 2001, the City Council adopted Ordinance No. 14880 regulating the drilling and extraction of natural gas within the City limits. The Ordinance adopted in 2001 prohibited salt water disposal wells within the City limits of Fort Worth. Since 2001, over 500 permits have been issued for drilling and production of gas within the City limits, and gas drilling and production has moved from sparsely populated areas in the northern part of the City to more densely urbanized areas in the southern, western and eastern portions of the City. In December 2005, the City Council appointed a task force composed of representatives from the gas industry, developers and neighborhood representatives to study revisions to the Gas Drilling Ordinance that would improve the quality of life for those citizens working and living near the drilling sites. The task force recommended increasing the permitted distance requirements for high-impact permits, increasing notification to the citizens of Fort Worth, additional noise abatement procedures, site security, signage and other. revisions that would provide additional protections of surface property rights, but continue to allow access to the minerals. An additional concern raised by the task force was the amount of truck traffic on City roads as a result of drilling within the City and the hauling of salt water to salt water disposal wells outside the City limits. Before the adoption of the revised Gas Drilling Ordinance on June 13, 2006, regulations were added to allow salt water disposal wells within the City limits in industrially zoned districts for lease use only, provided the salt water was injected into the Ellenberger Formation and the casing is cemented to the surface. The regulations were added for the purpose of reducing truck traffic related to salt water disposal. Logname: 12MORA.TORIUM6EX Page 1 of 2 Since the adoption of Ordinance No. 16986-06-2006, a variance request was submitted for the City Council's consideration to allow salt water to be injected into the Caddo Sands formation without cementing the casing to the surface, raising concerns about possible contamination to the ground and surface water and surrounding property. Due to the environmental and other health and safety concerns, staff advised further study of the impacts and effects of salt water wells within the City limits, including any alternative methods available for the disposal of the salt water; and the current state laws and City regulations for the disposal of salt water within the City limits of Fort Worth. In addition to researching the issue, staff met with the industry to discuss the concerns of the City and the industry and explore possible solutions. A second extension of the moratorium allowed staff to further explore the effects of and alternatives to salt water injection wells. Further extensions allowed staff time to meet with representatives of the gas industry, developers and neighborhood representatives to discuss alternative methods available for the disposal of the salt water. In March of 2008, the City Council again appointed a task force composed of representatives from the gas industry, developers and neighborhood representatives to study further revisions to the Gas Drilling Ordinance. Additionally, the City is currently participating in a pilot program with Chesapeake Operating Company involving salt water injection and salt water pipelines. In order to provide staff time to evaluate all aspects of the program and its results, an extension to July 31, 2009, is advised. Adoption of the attached Ordinance would extend the moratorium from October 31, 2008, to July 31, 2009, and maintain the status quo while the staff conducts the pilot program with Chesapeake at the Brentwood site located on East First Street next to the old Arc Park. Following the conclusion of the pilot program, the staff would present to the City Council proposed revisions to the current Gas Drilling Ordinance regulating salt water disposal wells within the City limits of Fort Worth. The Ordinance would not apply to applications that were accepted by the City before enactment of the Ordinance on October 3, 2006, first establishing the moratorium. FISCAL_ INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will have no material affect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office b~ Fernando Costa (8476) Oriainating Department Head: David Yett (7623) Additional Information Contact: Sarah Fullenwider (7619) Logname: 12MORATORIUM6EX Page 2 of 2