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HomeMy WebLinkAboutIR 9181 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9181 To the Mayor and Members of the City Council January 26, 2010 `'"�►Tt�� Page 1 of 2 a SUBJECT: SALTWATER DISPOSAL WELL MORATORIUM Until the 2006 revisions to the City of Fort Worth's Gas Drilling ordinance, salt water disposal wells were prohibited within the city limits. The Railroad Commission of Texas (RRC) treated the City's prohibition as a protest to a state application and did not issue state permits for disposal wells inside the city limits between 2001 and 2006. The gas drilling ordinance was revised in 2006 to allow non-commercial salt water disposal wells in industrially zoned districts for the purpose of reducing truck traffic related to salt water disposal. The ordinance required the salt water to be injected into the Ellenberger Formation and the casing cemented to the surface. Shortly after the adoption of the 2006 ordinance revisions, 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. While the City's ordinance required that water be injected into the Ellenberger Formation, the Texas Railroad Commission granted a state permit to drill the injection well into the shallower formation. As a result of the permit issued by the Railroad Commission, the City Council adopted Ordinance No. 17224-10-2006 on October 3, 2006, establishing a 60-day moratorium on the acceptance of applications for salt water disposal wells. The moratorium has been extended by City Council action and remains in place until July 31, 2010 unless further extended. The purpose of the moratorium is to allow time to study the effects of salt water wells within the City limits, alternative methods available for the disposal of the salt water, the potential for recycling a portion of this waste stream, and the potential reduction in emissions and road damage related to the trucking of salt water. As part of this investigation, the City Council approved a pilot program with Chesapeake Operating Company(Chesapeake). Chesapeake owns and operates the only permitted saltwater disposal well in Fort Worth located on East First Street next to the old Arc Park, known as the Brentwood site. As part of the study, Chesapeake proposed to create a saltwater piping network connecting its eastside wells to the disposal site eliminating the need for trucking and providing the City with data on the quality and condition of the produced water. In addition, Chesapeake installed recycling equipment that uses evaporation to reduce the volume of injected saltwater and to return as much water to the water cycle as possible. To date, Chesapeake has acquired all but two tracts of needed right-of-way for the placement of salt water pipelines and installation of the pipeline has begun. Final negotiations and purchase of these two properties are underway. Approximately 1,030,893 barrels of saltwater has been disposed of at the site since May 2008, of which 610,000 barrels of saltwater have been trucked to and disposed of at this site as part of the pilot project. While the recycling equipment has been manufactured and installed, it is not yet operational on a permanent basis. However, results from its sporadic operations, to date, appear promising. Although the City has been actively enforcing this moratorium, the number of wells in the City's extraterritorial jurisdiction is growing. As of September 2009, a total of five gas injection wells have been permitted for operation (map attached). Two of these wells are in areas that may be annexed by the City in the future. These locations also require truck travel through the City to access for necessary disposal. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9181 To the Mayor and Members of the City Council January 26, 2010 G'"�"T`1� P. Page 2 of 2 a • SUBJECT: SALTWATER DISPOSAL WELL MORATORIUM rsts The City Council will need to consider these issues in deciding to allow the permitting of this activity under the existing ordinance, to prohibit disposal wells within the city limits or to regulate this activity under enforceable ordinance provisions. Staff is continuing to monitor activities at the Brentwood site, as well as assessing additional issues related to air pollution, noise, and water contamination so that, as the term of this moratorium comes to close, appropriate data and analysis is available so that informed decisions may be made. If you have any questions regarding this information, please contact Brian K. Boerner, CPM, CHMM, Environmental Management Director at 817-392-8085. 1 } Da a A. Fiss e , P.E. City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ACTIVE SALTWATER �� Z DISPOSAL WELLS Tarrant County, Texas :M o w O r o v� F 34128 ., 11a • W WESTPORT KEL'L'ER'HASL'ET A W I S 3.1228 NT 34128 TARRANT no Im 32003 81 37 Eagle Mountain Lake D 9 _ 32673 a z 199 w Q c C>~ a 28 70 Q Q Lake Worth so a F„ 32114 183 • r 28 Lake Arlington F 37 Q F Lake en rook TAR ANT JOH SON API Locations Fort Worth City Limits County Boundaries Extraterritorial Jurisdiction FORT WORTH 0 2.5 5 7.5 10 Miles basedata: RAILROAD COMMISSION OF TEXAS basemap: CITY OF FORT WORTH GEOGRAPHIC INFORMATION SYSTEM ENVIRONMENTAL ANAGEMENT