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Home My WebLink AboutOrdinance 20402-09-2012ORDINANCE NO. 20402-09-2012 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF FORT WORTH (1986), AS AMENDED, BY AMENDING SECTION 15-51 "GAS WELL FEES" OF ARTICLE III OF CHAPTER 15, "GAS", ENTITLED, "GAS DRILLING AND PRODUCTION FEES" TO INCREASE THE ANNUAL FEES PER WELL; ADDING THE PROVISION "PER WELL" WHERE NECESSARY; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE; PROVIDING FOR PUBLICATION; AND NAMING AN EFFECTIVE DATE. WHEREAS, in 2001 the City Council adopted Ordinance Number 14880, regulating the drilling and production of gas within the city limits; and WHEREAS, since 2001 over twenty-one hundred permits have been issued for drilling and production of gas within the city limits; and WHEREAS, due to the change in gas drilling activity for new well permits and gas pipelines in the City, it is necessary to revise the Gas Well Fees to cover the cost of city permitting, inspecting, maintaining and investigating gas well activity. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That the Code of Ordinances of the City of Fort Worth, Texas, as amended, is further amended by revising Section 15 -5'1, "Gas Well Fees", of Article III, "Gas Well Drilling and Production Fees" of Chapter 15, "Gas" to read as follows: Section 15-51 Gas Well Fees. For services rendered, the following schedule of fees and charges is hereby adopted: Gas well permit (per well) .....$3,000.00 Gas well permit requiring a waiver granted by City Council (in addition to the gas well permit (per well) fee) .....$5,000.00 Amended pen-nit (per well/pad site) .....$540.00 Extended permit (per wel1).....$270.00 Supplemental permit .....$1$0.00 Ordinance No. 20402-09-2012 Pagel of Operator transfer (per well site) .....$720.00 Seismic site inspection .....$360.00 Annual fee (per well) ..... $600.00 Compressor facility .....$500.00 City regulated pipeline (per constructible segment) .....$1,500.00 Fresh water fracture pond .....$500.00 SECTION 2. That this ordinance shall be cumulative of all other ordinances of the City of Fort Worth and shall not repeal any of the provisions of such ordinances, except in those instances where provisions of such ordinances are in direct conflict with the provisions of this ordinance. SECTION 3. That all rights or remedies of the City of Fort Worth, Texas, are expressly saved as to any and all violations of the City Code, or any amendments thereto that have accrued at the time of the effective date of this ordinance; and as to such accrued violations, and all pending litigation, both civil or criminal, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. SECTION 4. That 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 5. That any person, fin-n or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Two Thousand Dollars ($2000.00) for each offense. Each day that a violation exists shall constitute a separate offense. Ordinance No. 20402-09-2012 Page 2 of 3 SECTION 6. That the City Secretary of the City of Fort Worth, Texas is hereby directed to publish this ordinance for two (2) days in the official newspaper of the City of Fort Worth, Texas, as authorized by V.T.C.A. Local Government Code Subsection 52.013. SECTION 7. This ordinance shall take effect upon adoption and publication as required by law. APPROVED AS TO FORM AND LEGALITY: By: 1/Vl Assistant City Attorney Po r. Adopted:,.. <�� 'C?/ Effective: Ordinance No. 20402 -09 -2012 Page 3 of 3 City of Fort Worth, Texas Mayor and Council Communication �rnrvoummuummimwmuuuuuooim mwwwumi��m�o ��mm�mma�mm�mum. �uw¢ rcaamm�mmonuouuoiouuoiouumiwm�. mnouuuu�muuuwmwivn�uuuommuuuma uwwv, �nm�aoMaaiva�mmouwwaww�wuniaw�tomu�mmmw�mrmuom�mmmomimmmioimuoomimnmmmmmmrcaoiw�nrvomm�mmm�imuouummoouuuwuumummmimu� ,umu�uu uumuwwwuwouwuumumnwmwuwi w + t IJfi C 1;; GTIQ Approved, on 9/18/2042 0rdinan a Now 201402 %-�21117 „ � mmmmminlilililililililililililililoNNN0M0iN000i010i010iWiIWWNWONNNIiIIWUWWtl fA ! u�LU�G�N410iW��MdN��' oiomil�mmuuulmtloimioio0uouoio0ouuuuuml WiOpmm9UiW,Wii DATE: Tuesday, September 18, 2012 REFERENCE NO.: G -17675 LOG NAME: 062040 INCREASE ANNUAL FEE PER WELL SUBJECT: Adopt Ordinance Amending Section 15 -51 Gas Well Fees of Article III of Chapter 15 of the City Code to Increase the Annual Fee Per Well from the Amount of $500.00 to the Amount of $600.00 Per Well (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance amending Section 15 -51 of Article III of Chapter 15 of the City Code to increase the annual fee per well from the amount of $500.00 to the amount of $600.00 per well. DISCUSSION: Chapter 15, Article III of the City Code provides for gas fees to cover costs of regulating gas well drilling and production and related activities. Staff recommends that the new annual fee per well be increased from the amount of $500.00 to the amount of $600.00. This will cover the operating costs of unit to include equipment, records management, and inspector time and attention. It will also ensure that sufficient resources are available to research and respond to complaints. Language will also be amended to further clarify how the fees are applied and will read as follows: • Gas Well Permit (per well) - $3,000.00 • Gas Well Permit Requiring a Waiver Granted by City Council (In addition to the Gas Well Permit (per well fee) - $5,000.00 • Amended Permit (per well /pad site) - $540.00 • Extended Permit (per well) - $270.00 • Supplemental Permit - $180.00 • Operator Transfer (per well site) - $720.00 • Seismic Site Inspection - $360.00 • Annual Fee (per well) - $600.00 • Compressor Facility - $500.00 • City Regulated Pipeline (per constructible segment) - $1,500.00 • Fresh Water Fracture Pond - $500.00 All of the fees clarified in the language above are currently assessed at the rates stated and there is no increase in those fees at this time. The purpose of this Mayor and Council Communication is to increase the annual fee per well from $500.00 to $600.00 per well. This fee increase would still make Fort Worth fee at the low end of the range for Cities in the Barnett Shale. The low fee 17 local cities surveyed is $300.00 and the high is $5,000.00. Logname: 062040 INCREASE ANNUAL FEE PER WELL Page I of 2 The Fiscal Year 2013 adopted budget assumes that this revenue will be in place to support the gas related activities of the Planning and Development Department. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that the Planning and Development Department will be responsible for the collection and deposit of funds due to the City. FUND CENTERS: TO Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: FROM Fund/Account/Centers Fernando Costa (6122) Randle Harwood (6101) Rick Trice (7959) Lomame: 062040 INCREASE ANNUAL FEE PER WELL Page 2 of 2