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HomeMy WebLinkAboutOrdinance 18989-01-2010ORDINANCE NO 18989-01 2010 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 dralhng within the city hmrts of Fort Worth, and WHEREAS the Ordinance adopted in December of 2001 prohibited salt water disposal wells within the city hmrts of Fort Worth, and WHEREAS, since 2001 over five hundred permits have been issued for dnlhng and production of gas within the city hmrts, and WHEREAS m the past five years, gas dnlhng 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 dnlhng wrthm the City and the hauling of salt water to salt water disposal wells outside the city hmrts, and WHEREAS, before adoption of the proposed revised Ordinance on June 13 200b, regulations were added to allow salt water disposal wells within the city hmrts m industraally zoned distracts for lease use only provided the salt water was m~ected 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 m~ection 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 m~ection 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 wrthm the city hmrts, 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 hmrts 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 Dulling 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 m March of 2008, the Crty 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 dulling 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 Dnllmg Ordinance to allow staff time to evaluate all aspects of a pilot program with Chesapeake Operating Company involving salt water m~ection and salt water pipelines, and rts 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 apphcahons for salt water disposal wells as regulated by the Gas Dnllmg Ordinance to allow staff time to evaluate all aspects of a pilot program with Chesapeake Operating Company involving salt water m~ection and salt water pipelines, and its results, and WHEREAS the City is continuing rts participation in the pilot program with Chesapeake Operating Company Chesapeake has now acquired all but two tracts needed for the right-of way for the salt water pipelines, and will be installing the recycling equipment m the near future. In order to provide staff additional time to evaluate the operations of the salt water pipelines and the recycling efforts, an extension to July 31 2010 is advised, and WHEREAS, adoption of this Ordinance would extend the moratorium from January 31 2010 until July 31 2010 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; 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 WHEREAS, all findings m Ordinance Nos. 17224-10-2006 17361-01 2007 17443-03 2007 17667-07 2007 17846-10-2007 18063-04-2008 18332 10-2008 and 18'706-07 2009 are reaffirmed. 3 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 and 18706-07 2009 is hereby extended from January 31 2010 to July 31 2010 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 O1 2007 17443-03 2007 17667-07 2007 17846-10-2007 18063-04-2008 18332 10-2008 and 18706-07 2009 with the exception of the expiration date extended by Section 1 of this Ordinance, shall remain m 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 ~urisdichon, 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 Crty Council without the incorporation herein of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. 4 SECTION 4. This ordinance shall take effect upon adoption. APPRO D AS TO FORM AND LEGALITY By. ~li~- ssistant Cit Attorney ADOPTED• January 12, 2010 EFFECTIVE. Januar~l2, 2010 City of Fort Worth, Texas Mayor and Council Communication .~ ~ ~ ~ a COUNCIL ACTION: Approved on 1/12/2010 -Ord. No. 18989-01`-2010 . ~~ DATE Tuesday January 12 2010 REFERENCE NO G-16807 LOG NAME. 12SWDMORATORIUMBEX SUBJECT Adopt an 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 2010 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 the moratorium was extended to January 31 2010 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 Logname 12SWDMORATORIUM8EX Page 1 of 2 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 currently participating in a 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 and will be installing the recycling equipment in the near future An extension to July 31 2010 will allow staff additional time to evaluate the operations of the salt water pipelines and the recycling efforts Adoption of the attached Ordinance would extend the moratorium from January 31 2010 until July 31 2010 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 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 effect on City funds 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 (8476) David Yett (7623) Sarah Fullenwider (7619) Logname~ 12SWDMORATORIUM8EX Page 2 of 2