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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 N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\SEPT\09022004 REG SESS.doc Page 1 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. N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\SEPT\09022004 REG SESS.doc [10/28/04 5:05:50 PMj Page 2 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. N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\SEPT109022004 REG SESS.doc [10/28/04 5:05:50 PM] Page 3 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 N:\kfieck\Private\PLANNING & ZONING\MINUTES\2004\SEPT\09022004 REG SESS.doc [10/28/04 5:05:50 PM] Page 4 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. clrz- - Gene Hill, Chairman SOF TRp�yy �® r CD coo �2 h li'9FlY 1,19 K rin C. Fleck, Plannin & Zoning Coordinator N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\SEPT\09022004 REG SESS.doc [10/28/04 5:05:50 PM] Page 5