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HomeMy WebLinkAboutOrdinance 19798-07-2011ORDINANCE NO. 19798 -07 -2011 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 WHEREAS, since 2001 over nineteen hundred permits have been issued for drilling and production of gas within the City limits; and WHEREAS, in the past ten 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 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 WHEREAS, 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 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;. 2 WHEREAS, on April 22, 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 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 WHEREAS, on October 14, 2008, the City Council adopted Ordinance No. 18332 -10- 2008 extending the moratorium until July 31, 2009, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to allow staff time to evaluate all aspects of a pilot program with Chesapeake Operating Company involving salt water injection and salt water pipelines, and its results; and WHEREAS, on July 14, 2009, the City Council adopted Ordinance No. 18706 -07 -2009 extending the moratorium until January 31, 2010, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to allow staff time to evaluate all aspects of a pilot program with Chesapeake Operating Company involving salt water injection and salt water pipelines, and its results; and WHEREAS, on January 12, 2010, the City Council adopted Ordinance No. 18989 -01- 2010 extending the moratorium until July 31, 2010, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling Ordinance to allow staff time to evaluate all aspects of a pilot program with Chesapeake Operating Company involving salt water injection and salt water pipelines, and its results; and WHEREAS, on July 20, 2010, the City Council adopted Ordinance No. 19234 -07 -2010 extending the moratorium until July 31, 2011, on the acceptance of applications for salt water disposal wells as regulated by the Gas Drilling ordinance to allow staff time to continue its participation in the pilot program with Chesapeake Operating Company, WHEREAS, on July 19, 2011 staff proposed amendments to the technical regulations for salt water wells to provide for additional restrictions related to access from the roadways; tank height; sound restrictions and where allowed. In order to provide staff and the City Council additional time to evaluate the proposed amendments, an extension to October 31, 2011, is advised; and WHEREAS, adoption of this Ordinance would extend the moratorium from July 31, 2011. until October 31, 2011, and maintain the status quo while the City Council evaluates proposed the proposed amendments; and 3 WHEREAS, following the conclusion of the moratorium, the staff will present to the City Council proposed revisions to the current Gas Drilling Ordinance regulating salt water 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 WHEREAS, all findings in Ordinance Nos. 17224 -10 -2006, 17361 -01 -2007, 17443 -03- 2007, 17667 -07 -2007, 17846 -10 -2007, 18063 -04 -2008, 18332 -10 -2008, 18706 -07 -2009, 18989- 01 -2010 and 19234 -07 -2010 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- 2007, 17443 -03 -2007, 17667 -07 -2007, 17846 -10 -2007, 18063 -04 -2008, 18332 -10 -2008, 18706- 07 -2009, 18989 -01 -2010 and 19234 -07 -2010 is hereby extended from July 31, 2011, to October 31, 2011, 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, 18063 -04 -2008, 18332 -10 -2008, 18706 -07 -2009, 18989 -01 -2010 and 19234 -07 -2010, with the exception of the expiration date extended by Section 1 of this Ordinance, shall remain in full force and effect. M 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. APPROV D AS TO `D /LEGALITY: By A, Assistant City Attorney ADOPTED: July 26, 2011 EFFECTIVE: July 26, 2011 E City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/26/2011 = Ordinance No. 19798 DATE: Tuesday, July 26, 2011 LOG NAME: 12SWDMORATORIUM10EX REFERENCE NO.: G -17334 SUBJECT: Adopt Ordinance Extending the Moratorium to October 31, 2011, 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 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached Ordinance extending the moratorium to October 31, 2011, 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 October 14, 2008, by Ordinance No. 18332 -10 -2008, the moratorium was extended a sixth time to July 31, 2009. On July 14, 2009, by Ordinance No. 18706 -07- 2009, the moratorium was extended a seventh time to January 31, 2010. On January 12, 2010, by Ordinance No. 18989 -01 -2010, the moratorium was extended an eighth time to July 31, 2010. On July 20, 2010, by Ordinance No. 19234 -07 -2010, the moratorium was extended a ninth time to July 31, 2011. 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 1900 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. Logname: 12SWDMORATORIUMIOEX Page 1 of 2 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. 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. The City is continuing its participating in the pilot program with Chesapeake Operating Company involving salt water injection and salt water pipelines. Chesapeake has now acquired all but two tracts needed for the right -of -way for the salt water pipelines. On July 19, 2011, staff proposed amendments to the technical regulations for salt water wells to provide for additional restrictions related to access from the roadways, tank height, sound restrictions and where allowed. In order to provide staff and the City Council additional time to evaluate the proposed amendments, an extension to October 31, 2011 is advised. Adoption of the attached Ordinance would extend the moratorium from July 31, 2011 until October 31, 2011 and maintain the status quo while the staff continues 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 moratorium period, the staff will present to the City Council proposed revisions to the current Gas Drilling Ordinance regulating salt water 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 effect on City funds. FUND CENTERS: TO Fund /Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Logname: 12SWDMORATORIUM l OEX FROM Fund /Account/Centers Fernando Costa (8476) Sarah Fullenwider (8006) Melinda Ramos (7631) Page 2 of 2