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Minutes P&Z 07/15/20104Trophy Club Entities Meeting Minutes Planning & Zoning Commission 100 Municipal Drive Trophy Club, Texas 76262 Thursday, July 15, 2010 7:00 PM Svore Municipal Building Boardroom Call To Order and announce a quorum. COUNCIL MEMBERS: Present: 6- Vice Chair James Stephens, Commissioner Mike Davidson, Commissioner Dennis Sheridan, Commissioner Dale Forest, Chairman Gene Hill, and Commissioner Clayton Reed STAFF AND GUESTS PRESENT: Carolyn Huggins, Community Development Director Karen Thiessen, Representing Walgreens Co. Becky Escott, Representing Encana Oil & Gas Company Bill Rose, Town Council Approval of Minutes 1. 2010.358-T Review and approve minutes of the June 17, 2010 Planning and Zoning Commission meeting. A motion was made by Vice Chair Stephens, seconded by Commissioner Davidson, that this Agenda Item be Approved. The motion CARRIED by the following vote: Aye: 5 - Vice Chair Stephens, Commissioner Davidson, Commissioner Sheridan, Commissioner Forest, and Chairman Hill Abstain: 1 - Commissioner Reed PUBLIC HEARING Planning and Zoning Commission Page 1 of 10 Meeting Date', July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 2010361-T Public Hearing regarding a request to amend Ordinance No. 2000-14P&Z amending Ordinance No. 99-17 P&Z, Planned Development No. 21 to allow Outdoor Display of propane for Walgreens. Applicant: Karen Thiessen, Gardere Wynne Sewell LLP on behalf of Walgreen Co. (PD -AMD -10-035) Chairman Hill opened the public hearing and asked Ms. Huggins for a staff roport. Ms. Huggins stated that the Walgreens on Trophy Lake Drive, which is part of PD -21, is requesting permission to keep propane on display on the sidewalk of the store. The development standards for PD -21 only allow outdoor display of merchandise by Tom Thumb. The Tom Thumb store was designed for outdoor display — with large front patios and a large covered foyer area. Ms. Huggins stated that Walgreens has a wide sidewalk. The building inspector measured the sidewalks in front of the Walgreens store and found that with two cabinets placed on the walkway, there does leave enough room for ADA standards to be met. ADA standards require 32" minimum for an accessible mule, the Walgreens sidewalk from cabinet to stone column allows 33.5". The building inspector measured the size of the cabinets as 80' length, 27" depth, and 71.5" height. — for one cabinet. Walgreens has two cabinets on the sidewalk. The distance imm the nearest cabinet to the front door is approximately 43 feet. Each cabinet holds 36 tanks. Them are two cabinets so there are 72 tanks total on the sidewalk. The fire chief has reviewed the request and has no objection. Staff has also reviewed the request and has no objection, however, staff asks for a stipulation that no more than two cabinets of the size currently on the walkway be allowed. Chairman Hill asked the applicant for comments. She had none at this time. There were no others wishing to speak. Chairman Hill closed the public hearing, This Agenda Itemfteferred to the Town Council, due back on 0/212010 Planning and Zoning Commission Page 2 of 10 Meeting Date'. July 15, 2010 Planning 8 Zoning Commission Meeting Minutes July 15, 2010 2010364-11` Public Hearing regarding a request for approval of a Specific Use Permit to allow beer and wine sales for off -premise consumption only. Applicant: Karen Thiessen, Gardere Wynne Sewell LLP on behalf of Walgreen Co. (PD -AMD -10-035) Chairman Hill opened the public hearing and asked Ms. Huggins for a staff report. Ms. Huggins stated that Walgreens is requesting a specific use permit to be allowed to sell beer and wine for off -premises consumption only. Town ordinances require that certain conditions be met to grant an SUP of this type. The building must be in compliance with all codes and ordinances. Walgreens does appear to be in compliance with all Town codes and ordinances. The store cannot be located within 300 -ft of church, public or private school, or private hospital. Walgreens is not within 300-ftof any of those types of establishments. The nearest facility of this type is a church and it is approximately 1,000 ft. away. Walgreens has spoken to Police Chief Kniffen and satisfied all public safety requirements and concems, including the requirement that store employees selling beer and wine to customers must be over the age of 21. Walgreens has indicated that all employees handling beer and wine sales will be over that age. As required by ordinance, notice ofpublic hearing was placed in the newspaper and all property owners within 200 -ft. were notified of this request Staff has not had any comments in support or opposition to this request Staff has no opposition to this request and recommends approval. Ms. Thiessen, on behalf of Walgreens, stated that she is available and happy to answer questions on behalf of Walgreens. There were no others wishing to speak and Chairman Hill closed the public hearing. This Agenda ItennReferred to the Town Council, due back on 8/2/2010 REGULAR SESSION Planning and Zoning Commission Page 3 of 10 Meeting Date: July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 2010.362-T Consider and take appropriate action regarding an Ordinance amending Ordinance No. 2000-14 P&Z amending Ordinance No. 99-17 PBZ, the same being Planned Development No. 21, in orderto allow Outdoor Display of propane by Walgreens. Applicant: Karen Thiessen, Gardere Wynne Sewell LLP on behalf of Walgreen Co. (PD -AMD -10-035) Chairman Hill called for questions and discussion. Commissioner Davidson asked if this is an exception. Ms. Huggins responded that it is not an exception but an addition to the PD. The request would change the planned development document regulations to allow outdoor display of propane for the Walgreens store. It is already allowed for the Tom Thumb store. It doesn't mean that any other tenant in PD -21 would be allowed to have outdoor display of propane. This request is specifically for Walgreens. Commissioner Sheridan asked if the PD change request stays with the property or with the business. Ms. Huggins stated that the PD amendment request is specific for Walgreens. The SUP request, however, stays with the property. Commissioner Sheridan stated that he is in favor of this request, but he does not want open language to allow automated outside sales ofpropane. Chairman Hill clarified that the propane sales would take place in the store. The language Tor sale inside the store' was included in the title, but not clarified in the suggested language for the motion. There was no further discussion and Chairman Hill called for a motion Motion to recommend approval to the Town Council for a request to amend Ordinance No. 99-17 P&Z, Planned Development No. 21 to allow outdoor display of propane, for sale Inside the store, at Walgreen #06047, 541 Trophy Lake Dr. with the stipulation that no more than two cabinets (approximate size 80" length, 27" depth and 71.5" height) allowed. Aye: 6 - Vice Chair Stephens, Commissioner Davidson, Commissioner Sheridan, Commissioner Forest, Chairman Hill, and Commissioner Reed 2010-363-T Consider and take appropriate action regarding a request for approval of a Specific Use Permit to allow beer and wine sales for off -premise consumption only. Applicant: Karen Thiessen, Gardere Wynne Sewell LLP on behalf of Walgreen Co. (PD -AMD -10-035) Chairman Hill called for questions and discussion. There were no questions or discussion and Chairman Hill called for a motion Motion to recommend approval to the Town Council for a request for a Specific Use Permit to allow beer and wine sales for off -premise consumption only at Walgreen #06047, 541 Trophy Lake Dr. Aye: 6 - Vice Chair Stephens, Commissioner Davidson, Commissioner Sheridan, Commissioner Forest, Chairman Hill, and Commissioner Reed PUBLIC HEARING AND DISCUSSION Planning and Zoning Commission Page 4 of 10 Meeting Date'. July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 2010-274-T Public Hearing and Discussion to Consider changes to the Town of Trophy Club Code of Ordinances, Chapter 5 -General Land Use, Article VI -Oil and Gas Well Manual, affecting the noise decibel levelldistance allowed during freeing of a gas well; and amending definitions or other miscellaneous items of the Gas Well Manual and Town Ordinances related to this request as deemed necessary. (AMD -10.007) Chairman Hill opened the public hearing and asked Ms. Huggins for staff comments. On behalf of Staff, Ms. Huggins thanked Encana Oil & Gas Company for attending the Planning and Zoning Commission meeting this evening. Ms. Huggins staled that this is a continuation of the public hearing from last month and staff asks that at the end of this evening the Commission close the public hearing and come back in a month or two to further discuss this matter. Gas well information has been pulled from storage. There are several boxes and staff needs more time to go through the information in those containers. Then, at some point in the future, we can resume a public hearing antl/orproceed with a recommendation to Council. Ms. Huggins reminded the Commissioners where the six well sites are located.' Well Site 2H, Neighborhood 1 Well Site 8H, Neighborhood 2 Well site 7H, Neighborhood 6 Well Sites 3H and 15H, Neighborhood 7 Well Site 4H, Neighborhood 8 Ms. Huggins stated that the discussion of this matter is to consider whether or not a change in the gas well manual is needed regarding the decibel noise level during refrecing operations, and whether or not the decibel level allowed by Trophy Club is adequate protection for the residential lots adjacent to a gas well. Chairman Hill welcomed the Encana representatives and invited Becky Escort to come forward. Ms. Escort, Community Relations Coordinator, Encana Oil & Gas (USA), Inc. stated that she has technical experts with her and introduced them as: Oleg Tolmachev, Group Lead Completions Doug Love, Completions Coordinator Steve Rogers, Geologist, North Texas Development Team John Keil, Group Lead Environmental Ms. Escott stated that Encana is one of the largest natural gas companies in North American, headquartered out of Calgary Alberta, Canada, with U.S. headquarters in Denver, Colorado, The North Texas Barnett Shale operations are run out of a Dallas, Texas, office. At the end of 2009, oil assets were split off, Encana's U.S. operations are primarily in Colorado, Wyoming, Louisiana, Texas, Pennsylvania, and Michigan. They are the fifth largest gas producer in the State of Texas. Specific to Trophy Club, they have 1,740 gross acres. They have drilled 18 wells on seven pad locations. There are two to five wellheads per location. All wells were drilled from 2003 to 2005. Trophy Club 1H, near the high school, has been plugged and the land reclaimed. Currently, there are 15 wells in Trophy Club, producing 1.4 million cubic feet of natural gas per day, and producing approximately 1,400 barrels per day of water. For an average Barnett Shale lease that is below average gas production and above average water production. The life ore well in this area is approximately 20 to 30 Planning and Zoning Commission Page 5 of 10 Meeting Dale: July 15, 2010 Planning d Zoning Commission Meeting Minutes July 15, 2010 years. Refracing is basically the same thing as the initial frac operation. The duration and the time on location is typically shorter than the initial operation because the infrastructureis already in place. Similar equipment is utilized.. Frecing is done in between the perforations already traced to try to produce more gas. The impact to the residents is similar to the initial tracing operations. AWan; is only considered if one of two conditions is present (1) the well is located in a geologically good producing area, or (2) the well was under stimulated originally (usually the case in older wells, but not recently as technology has advanced). Ms. Escott stated that Encana currently does not have plans to mfrac the Trophy Club wells due to the high amount of water and the low gas production of the wells. She stated that a refrac would produce more water and still not very much gas. Their current economic structure does not have a program that wouldjuslify it. Ms. Escott stated that reclamation starts when drilling and completions on a pad site are finished and the pad is reduced to approximately 2 -acres for the production phase. During this phase, Encana employees and contractors are on the site regularly to maintain the equipment, monitor the production rates or flow of gas, and remove produced water. At this point, Encana replaces and re -seeds the native soil around the edges. Atter a well ceases production, Enders will clean up and restore the well site to its preexisting condition. Reclamation activities can include soil replacement and compacting, and reseeding of the natural prairie grasses. Vice Chairman Stephens stated that the Commission has concerns regarding sound. Although Encana says that they don't plan to retrac, if that did happen, what type of sound reduction barriers would Encana provide because most gasoline engines go over 100 decibels and Trophy Club ordinances call for 80 or below. Ms. Escott stated that Encana uses different types of sound mitigation. They use sound blankets and sound walls and they put mufflers on engines. Doug Love, Encana, stated that it depends on how much horsepower is used and these are big diesel engines. He stated that they typically put up tarp — there are a series of poles with tarp stretched between them -- and that is a conventional sound barrier used in the BarnettShale. He staled that if a decibel level is a little more stringent in a housing addition then they will use two of those. He slated that they have typically been able to meet most considerations with those types of devices. He stated that some vendors are using hospital caliber mufflers on the diesel engines to allow more urban type operations. He stated that they am pretty quiet relative to what they used to do back out in the far reaches. Vice Chairman Stephens asked how many diesel engines are typical in a retracing process. Mr. Love responded 12 to 14 of the big ones and maybe half a dozen smaller engines. Vice Chairman Stephens responded, "So, significant noise." Mr. Love responded, "Yes Sir". Commissioner Reed asked if they could put a decibel level on "significant". Mr. Love stated that typically they run in the 80 to 85 db range. Mr. Reed asked if that would be at 300 -ft. to meet Trophy Club requirements? Mr. Love responded that it would be at that range. Commissioner Sheridan asked if that would be with or without the poles and sound barrier. Mr. Love responded that it would be with the sound barriers. Ms. Escott stated that they drill in other neighborhoods similar to Trophy Club, and even in a retirement community, so they are used to, and are comfortable with, meeting sound requirements. Vice Chairman Stephens asked for an explanation of flow back. Mr. Love stated on a newly drilled well they will frac the well and they set a series of bridge plugs. When they start to "bring that on", in the Barnett Shale, mostly water is produced to begin with so the water has to be flowed back off the formation before the gas starts Coming back in. That's the initial flaw back. Flow back crews are kept on location for Planning and Zoning Commission Page 6 of 10 Meeting Data'. July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 roughly two weeks. Then the well is fumed over to production. At that point, a pumper will watch over it. During the flow back phase it may produce sand ora significant quantity of water so there is a lot of hands-on and tuning -in to what that well is doing during that phase. Vice Chairman Stephens asked how noisy is flow back? Mr. Love responded that it is not noisy at all. If it were done in West Texas they would use a different type of tank, but locally it goes through a series of separators, the gas is being sold so they are not going to release the gas to the atmosphere, so they are catching water and catching gas and it is all going its appropriate way. Pressure drops are what creates sound. Any kind of pressure drop would be contained. Vice Chairman Stephens stated that the Commission had heard there could be hissing noise during flow back. Mr. Love stated that hissing might result from water on the wells and they had to open them up to atmosphere. He stated that if there is flow back to an open top tank there would be a hissing noise. Commissioner Reed added— "So you get to a point you start making some gas, so you switch the flow through a water knock out"— Mr. Love interjected, Absolutely"— Commissioner Reed continued, "You collect the water and then the gas comes out separately, so you shouldn't even hear a hissing sound". Mr. Love stated, "No sir. We are to the point, environmentally, in these urban settings, we are highly incentivized to capture that gas." He stated that the gas busters of days gone by and knocking it through a choke and going to open top pit is not happening. Vice Chairman Stephens asked what kinds of chemicals are being used in the freeing process. Mr. Love stated they have a biocide — the equivalent of Clorox bleach. A lot of times in fracture operations they are pulling water out of streams, rivers, ponds and basically if it's wet they'll pump it, but a lot of these things have a biogenic compound to it and may have bacteria. They are using a biocide to knock out the bacteria. The reason for that is if they pump anaerobic bacteria down into the formation it will create a slime and one of the offshoots of that is hydrogen sulfide, so they try to make sure that gets killed before if goes in the hole. Mr. Love stated that it's fairly benign. In days gone by some biocides were used that were pretty aggressive, but in this day and age, relatively speaking, they are very green. Vice Chairman Stephens asked if the water table is being contaminated Mr. Love stated that they work far below the aquifer. The highest thing they might contact would be the Marble Falls that sits at 5,500 -ft. He stated that if they can't keep their free energy deep and the tracing is coming up high, they are wasting a lot of money, they are not making gas, they are not getting the free efficiency that they are after. He slated that their work is contained well over a mile below where the aquifer sits. Commissioner Reed stated that when a well is initially drilled it goes through the fresh water sands and pipe is set through there and sealed so it is cemented off completely. Ms. Escott added that they have a proven process in place to protect the groundwater. There is steel piping and cement casing and a very true and tested process to protect the ground water. In the State of Texas, and the Railroad Commission testified to this last week, there has never been a case of ground water contamination due to tracing operations. Mr. Love stated that the Railroad Commission has required that for the last 50 years or so. Commissioner Reed slated that there is a lot going on in Pennsylvania right now regarding this issue and testing throughout the country to see what is in the atmosphere around wells. He stated that people don't believe it, but so far all of the testing that has been done hasn't found anything toxic about the atmosphere around gas producing wells. Ms. Escott staled that the mixture they use to frac a well is approximately 98% water and sand. Commissioner Sheridan stated that he wants to speak in terms of general safety. Planning and Zoning Commission Page 7 of 10 Meeting Date: July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 The current Trophy Club requirement is 80 db at 300 -ft, which was based on a time when Trophy Club regulations required 250 -ft, from wellhead to residential property line. The regulations now allow a habitable structure to be placed 200 -ft. from a wellhead. Mr. Sheridan asked if Encane currently has wells 200 -ft. from a residence. Ms. Escott wasn't sum, but would follow up with Ms. Huggins. Commissioner Sheridan staled that the Commission interest is in protecting people who live as close as 200 -ft. to a gas wellhead.. What needs to be put in place for five to ten years down the road if frecing does occur? What would Encane advise is the proper decibel level? The sound barriers would have to be on Encana's property and what should be the allowed decibel level at the location of the sound barriers to properly protect the occupants at the location of the habitable structure? Should it be 60 db at 200-ft9 Or, should it be a certain decibel level at the sound barrier location? Steve Rogers, Geologist, stated that it should be feasible to have the sound barrier at 300 -ft. on Encana's property as most well sites are two acres. Commissioner Sheridan, however, countered that it could also be feasible, under the current Trophy Club regulations, to place a habitable structure as close as 200 -ft. from a wellhead so the acreage distance may not always apply depending on the locations of the wellheads on the two acre site. The wellheads are not always centered on the pad site. Commissioner Reed asked if enough sound barriers can be put up to get the decibel level down to 80 with a habitable structure 200 -ft. away from the wellhead? Commissioner Davidson stated that he believes some of the pad sites are less than one acre and the wellheads are offset towards the residences. The distance is, in his opinion, alarmingly close to the residents. If there are 12-14 large diesel engines and he# a dozen smaller ones all contained in this site, it will be very crowded in there, and it seems that there will need to be at least double sountl deadening techniques. Commissioner Reed asked if Encana can get the sound decibel level down to 80 at 200 -ft. or less. Mr. Love stated that within current economic limits and current equipment capabilities they could get to 80 db, but that's about it. He stated that it will be Encana's responsibility to meet Trophy Club's noise regulations. Commissioner Sheridan asked if Encana acknowledges that if the gas manual is changed they are required to follow it. Ms. Escoff responded, Absolutely." Commissioner Sheridan stated that the SUP doesn't set a precedent that would supersede Encana following the gas well ordinance as amended in the future. Ms. Escott staled that for all Encana's operations in the Town of Trophy Club they would follow the ordinances as written. Commissioner Sheridan stated "The idea of inviting you here is to have a two way conversation. I don't think anybody up here is trying to say we want 80 db at 100 -ft. We want to hear that it is feasible, reasonable, and we are protecting our homeowners." Mr Love stated that it will be tremendously expensive to meet too restrictive of a distance/sound bamer. OSHA requires Encana to keep with the 80 db threshold. John Kell, Group Lead Environment, Encana, stated that Encana takes safety very seriously. When a tracing operation is done they make sure that their employees hearing is protected according to the standards set by OSHA which is designed to protect their hearing. He stated that they would never engage in any type of activity that would subject the public to a standard that they wouldn't allow their own employees to be faced with, At 80 db they would have to finds way to ensure that the property owner's noise levels are not going to be in excess of 80 db using the OSHA standard. If Trophy Club decides that they want to lower that standard to below 80, Encana might have a difficult time, if not impossible, to make that happen. Encana would encourage the Commission to consider what is reasonable and practical to achieve while still ensuring that the residents are not going to be impacted by Encana's operations. If they have to fake measures to make sure that the decibel level is not above 80 db at the property line, that is what they will do. Planning and Zoning Commission Page 8 of 10 Meeting Dale'. July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 That concluded the first round of questions by the Commissioners. Chairman Hill gave each Commissioner a second round of questions, answers and discussion with the Encena experts, which lasted approximately another 45 minutes, discussing such things as the cost to Encana to increase the sound barrier, the height of the sound barriers (very tall— 40 -ft.), whether or not the sound barriers can withstand weather (wind, min, hail), and quantity of water used during dnlling/facing. Commissioner Davidson asked where all the water from the well goes? Mr. Love stated that the water is trucked to a salt water disposal well close to Paradise, Texas. Commissioner Reed asked some technical questions about the process of frecing. Councilman Rose asked to speak and made a couple of comments and asked a couple of questions of Encana. Mr. Davidson mentioned Mr. Rose's comments from the last Planning and Zoning Commission meeting. Mr. Rose, in that meeting, had brought up Fort Worth's ordinance and that they will be drilling within 200 -ft. of houses and so Encana will gain experience in having to deal with sound barriers close to homes in the City of Fort Worth. Commissioner Reed asked questions about the production level of the wells. They are low producers and in Mr. Reed's opinion it might not be economically worth it to Encana to ever refrac Trophy Club wells. Mr. Love stated that the wells in Trophy Club could currently be considered exactly those types of wells in these economic times. Commissioner Reed asked for the length of time for a retracing operation. Mr. Lave responded that it would be approximately one long day. Ms. Escott stated that retracing operations are significantly shorter than initial tracing operations. Commissioner Sheridan asked Encana a number ofquestions that came up at the last Planning & Zoning Commission: Is there any possibility that there will be further drilling in Trophy Club? Ms. Escott stated there is a possibility that Encana or some other gas company could drill in Trophy Club, but Encana's current plans do not include drilling in Trophy Club. • Is there full disclosure of the chemicals used in (racing. Ms. Escofl responded that there is full disclosure to the State. Trophy Club has a noise ordinance and no tracing can occur overnight. Ms. Escott responded that Trophy Club's regulations allow work from 7 a.m. to 6 p.m. Who inspects the work, well, drilling, etc., from the Railroad Commission? Mr. Love responded that the Railroad Commission inspectors are on-site during certain operations; they are very active inspectors. Under "Safety and Environmental Requirements" of the Gas Well Manual, it states, "Each producing well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All wellheads shall contain an emergency shut off valve to the well distribution line." Based on recent events in the Gulf, does this occur at the time that the wellhead is created? Or, is there a periodic update for automated valves. John Keil responded that there are automatic shut-off valves that are monitored back at Operations. He stated that there is also a computerized asset management inventory system that tracks every piece of equipment that is out at locations, and a preventive maintenance program that is designed to check equipment according to a specific schedule for that type of equipment to ensure that it is functioning properly and it is verified by the operators and subject to a preventive maintenance schedule. Does Encana own the well sites? Ms. Escott responded that they do not own the land. They lease the minerals. She stated that they enter into a special lease with the land owner that dictates Encana's operations. Commissioner Sheridan stated that if Encana gives up their lease on the land the land owner could lease the land to another gas well operator and the Commission should think in terms of other operators fhanjust Encana. Commissioner Sheridan and Vice Chairman Stephens asked for information regarding any fines that Encana has faced from OSHA or the Railroad Commission, or other (EPA) regulatory agencies, Mr. Kyle responded that they will have to research that information. He stated that compliance is the minimum standard at which they operate. He stated they also have a document referred to as their Planning and Zoning Commission Page 9 of 10 Meeting Dale: July 15, 2010 Planning & Zoning Commission Meeting Minutes July 15, 2010 Adjourn "environmental constitution" which can be presented to Trophy Club, which summarizes where the Corporation stands with respect to health and safety and the environmental principles of how they operate. Chairman Hill thanked Ensure for their attendance and for the information given to the Commission. He closed the public hearing and explained that this item would be brought back before the Planning and Zoning Commission in the future after further review and research. This Agenda IlemDiscussion only - No action taken This meeting adjourned. 8:40 p.m. -, -1 /I Gene Hill, Chairman Carolyn Development Director Planning and Zoning Commission Page 10 of 10 Meeting Cale: July 15, 2010