Minutes P&Z 09/02/2004MINUTES OF A REGULAR SESSION
FOR THE
PLANNING & ZONING COMMISSION
TOWN OF TROPHY CLUB
2 SEPTEMBER 2004
The Planning and Zoning Commission of the Town of Trophy Club, Texas met in a
Regular Session meeting 2 September 2004, at 7:00 pm in the Boardroom of the Trophy
Club Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262.
COMMISSIONERS ATTENDANCE:
Chairman Hill
Vice Chairman Stephens
Commissioner Bradley
Commissioner Moss
Commissioner Reed
Commissioner Rodgers
Commissioner Sheridan
STAFF AND GUESTS PRESENT:
Kerlin C. Fleck
Ray LeDesma
Rob Durbin
Mike McCravy
Matt Curry
Jeff Beck
Scott Beck
present
present
present
present
present
present
present
Planning & Zoning Coordinator
Applicant, Star of Texas
Applicant, Star of Texas
Star of Texas
Progress Fuels
Beck Properties
Beck Properties
1. CALL TO ORDER AND ANNOUNCE A QUORUM.
Chairman Hill called the meeting to order at 7:02 pm, and announced a quorum was
present.
2. PLANNING & ZONING COMMISSION TO TAKE APPROPRIATE ACTION AND MAKE A
RECOMMENDATION TO THE TOWN COUNCIL REGARDING:
Chairman Hill read captions A&B into the record.
A. AN APPLICATION FROM STAR OF TEXAS ENERGY SERVICES, INC. FOR A
SPECIFIC USE PERMIT TO ALLOW GAS WELL DRILLING ON A 1.5 ACRE TRACT
OF LAND REFERRED TO AS "PAD 8H & 9H" LOCATED APPROXIMATELY 600
FEET NORTH OF OAKMONT DRIVE AND APPROXIMATELY 1,220 FEET EAST OF
TROPHY CLUB DRIVE, AND 380 FEET EAST NORTHEAST OF THE QUORUM
CONDOMINIUMS AND MORE PARTICULARLY DESCRIBED AS BEING A TRACT
OR A PARCEL OF LAND SITUATED IN THE W. MEDLIN SURVEY, ABSTRACT
NUMBER 829, IN THE TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS, AND
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Planning & Zoning Commission
Regular Session Meeting
2 September 2004
BEING PART OF "TRACT 8A" CALLED 559.3807 ACRES CONVEYED TO BECK
PROPERTIES TROPHY CLUB, L.P. BY DEED RECORDED IN CLERK FILE NUMBER
93-R0087516 DEED RECORDS, DENTON COUNTY, TEXAS. (SUP -04-007)
B. A REQUEST FOR WAIVER TO THE REQUIREMENTS SET FORTH IN TOWN
ORDINANCE NO. 2004-11 P&Z, SECTION "C" ENTITLED "OIL AND GAS WELL
DRILLING AND PRODUCTION 'BY SPECIFIC USE PERMIT (SUP)"', SUBSECTION
(1), PERTAINING SPECIFICALLY TO THE REQUIREMENT FOR A ONE -THOUSAND
FOOT (1,000') SETBACK FOR THE LOCATION OF A GAS WELL PRODUCTION
SITE DESCRIBED AS "PAD 8H & 9H".
Mr. LeDesma addressed the Commission with a PowerPoint presentation. The
presentation overviewed the Barnett Shale, depicting vertical, horizontal and
directional drilling cross sections and an index map showing the current Barnett Shale
gas region. Four slides were shown detailing the production history on a monthly basis
for the Brumbaugh # 2 well in Tarrant County, the Corral City # 1 well in Denton County,
the McAllister # 16 well in Wise County, and the Mount Olivet # 2 well in Tarrant County,
Mr. LeDesma went on to show the proposed pad site for wells 8H/9H and detailed the
path of drilling and the location of a fault. Additionally, Mr. LeDesma presented the
Commission with a Production Table/Production Summary and the "Estimated Reserves
and Values" of proposed wells 8H and 9H.
The following residents addressed the Commission:
David Chudnow of 1500 Plantation Oaks Drive
Nick Sanders of 1 Michelle Court
Neil Twomey of 203 Oakmont Drive
Les Carter of 16 Ridgewood Drive
Sunny Patton of 212 Oakmont Drive
James Weaver of 216 Oakmont Drive
Karen Passiak of 18 Overhill Drive
Steven Kolts of 18 Overhill Drive
Paula Lee of 20 Crestwood Drive
Karen Bates of 113 Inverness Drive
Gregory LaMont of 15 Avalon Drive
Bob Monroe of 16 Avalon Drive
Marci Marshall of 124 Summit Cove
Chairman Hill read Section 43,1, subsection C, (3) of Town Ordinance No. 2003-11 P&Z
for the benefit of the audience, Chairman Hill called on the Commissioners for
discussion.
Commissioner Moss asked Star of Texas to address some of the questions raised by the
residents.
Commissioner Sheridan asked Mr. LeDesma about the path terminology shown in the
slide presentation. The "new path" depiction showed if the path was moved, where it
would go and the hardship that would be created as a result. Mr. LeDesma confirmed.
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Planning & Zoning Commission
Regular Session Meeting
2 September 2004
On well. 8H the economic hardship would be that 1/3 of the minerals would not be
recoverable. In addition, surface leases on the surrounding properties will have created
a restriction on the path of drilling and the location of the wells.
Mr. Durbin addressed some of the questions asked by the residents:
1.) Fracing and the noise associated with it:
Fracing takes place on a well only during the daytime hours of a single day. It is
not an ongoing process.
Chairman Hill stated that fracing was not done at the time the operator reached total
depth because there is no gas pipeline currently in place. According to the Town's
drilling ordinance, two (2) lines must be installed. One (1) is the producing gas line and
the other is a flowback line to carry recovered frac water and the initial amounts of
produced gas to the compressor and gathering station. The operator has purchased
land outside the limits of the Town where the gathering station will be located. Until
such time as the producing gas line and the flowback lines are in place, there is no
benefit to frac.
As far as noise, the Town requirement is less than seventy (70) decibels at three hundred
feet (300'). With the rig operating where it is now, decibel meter readings taken both
upwind and downwind indicated, sixty-seven (67) decibels at three -hundred feet
(300').
Mr. Durbin continued.
2.) Potential spills and frac fluid:
The operator does "slick water" fracs. The frac fluid is basically fresh water with
some sand of a particular grain size and an antibacterial agent.
3.) Water tanks shown on the site:
Even though there are tanks shown on the surface site, they are not there for the
purpose of trucking water in and out of the site. They are there as temporary
storage of the produced water so that while the operator is flowing back
another well, the water can be temporarily stored and then be pumped off site.
4.) The location among the trees:
The operator attempted "reasonable accommodation" by keeping the tree line
to the south to help screen noise as well as some visibility of the rig during drilling.
After the well is completed, the pad will be so low that it should not be visible
behind the first tree line, If the site is moved to the north, it will be in an area with
much higher visibility. In addition, if it is moved north it will be away from some
houses but closer to others.
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Planning & Zoning Commission
Regular Session Meeting
2 September 2004
5.) Why can't the drilling stay north of Marshall Creek Road and drill a long well bore
down south to access the minerals?
From an engineering standpoint, there are limitations as to how long a well shaft
can be. Generally, they can't be more than approximately 2,500 to 3,000 feet.
6.) Who loses the money?
Star of Texas is a property owner as well. Their property happens to be 7,000 feet
below the surface, As part of the lease purchase agreement the operator would
get a portion of the revenues from the sale of these reserves, and a portion
would go to the people Star of Texas bought the mineral interest from. The losses
would be shared amongst whoever owns an interest in these wells, whether it be
a royalty interest or a working interest.
7.) A lot if time was spent with the members of the Commission, attempting to put
together an ordinance for drilling. The original ordinance recommended to
Town Council contained a five -hundred foot (500') distance requirement.
However, at the request of residents, the distance was changed to one -
thousand feet (1,000) and a provision was added for a waiver request.
Ms. Fleck detailed the two items on the agenda for the benefit of the audience and
explained the difference between the zoning of the site versus the waiver request,
The Commission continued their discussion.
Commissioner Bradley asked if there was technology available to move the wells to the
northern portion of Town while still extracting the reserves,
Mr. LeDesma addressed the question. When Star of Texas first became involved with
drilling in Trophy Club, only vertical and, directional wells were being drilled in the
Barnett Shale region. At that time, there were approximately eighteen (18) drill pad
locations with over twenty-three (23) wells. Since that time, the drilling industry has
progressed. Recovery factors are improving and fracing technology is yielding higher
returns. Right now and in the foreseeable future, horizontal drilling is the best way to
recover reserves and access minerals. Mr. LeDesma went on to say that Star of Texas
has reduced the number of wells and pad sites as much as possible. The operator has
limitations in terms of distance, and at this time, this is the best they can do.
There was no further discussion from the Commissioners. Chairman Hill called for a
motion,
A motion was made to recommend approval of the application for Specific Use Permit
for Pad 8/9H.
Motion:
Reed
Second:
Sheridan
Ayes:
Hill, Bradley, Moss, Rodgers, Stephens
Nays;
Sheridan
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Planning & Zoning Commission
Regular Session Meeting
2 September 2004
Action: 6-1
Motion carried.
A motion was made to recommend approval of the waiver request to the 1,000'
distance setback for Pad 8/9H.
Motion: Reed
Point of Order was called by Bob Monroe. Mr. Monroe stated that Commissioner
Bradley asked if there was technology available and that Mr. LeDesma did not provide
a complete answer to the question. The answer might be that there could be
technology available in the future and if there are other sites they could drill on, they
could drill the sites that don't require waivers first and come back later and request a
waiver if necessary.
Second: Sheridan
Ayes: Hill, Bradley, Moss, Rodgers,
Nays: Sheridan, Stephens
Action: 5-2
Motion carried.
Both items will be forwarded to the Town Council at their 4 October 2004 meeting.
4. ADJOURNMENT.
Chairman Hill adjourned the meeting at approximately 8:39 pm.
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Gene Hill, Chairman
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K rin C. Fleck, Plannin & Zoning Coordinator
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