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Minutes P&Z 06/17/2010Trophy Club Entities f Meeting Minutes Planning & Zoning Commission 100 Municipal Drive Trophy Club, Texas 76262 Thursday, June 17, 2010 7:00 PM Sears Municipal Building Boardroom Call To Order and announce a quorum COMMISSION MEMBERS: Present: 5 - Vice Chair James Stephens, Commissioner Mike Davidson, Commissioner Dennis Sheridan, Commissioner Dale Forest, and Chairman Gene Hill Absent: 1 - Commissioner Clayton Reed STAFF AND GUESTS PRESENT: Carolyn Huggins, Planning & Zoning Manager Bill Rose, Town Council Approval of Minutes 1. 2010-273-T Review and approve minutes of the May 6, 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 PUBLIC HEARING AND REGULAR SESSION Planning and Zoning Commission Page 1 of 6 Meeting Date: May Q 2616 Planning & Zoning Commission Meeting Minutes June 17, 2010 2010.2744 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 level/distance allowed during frail ng 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. Ms. Huggins stated that she is asking this evening for direction from the Planning and Zoning Commission as to how to move forward to consider a change to the Oil and Gas Well Manual. As background Neighborhood 8 of The Highlands was recently approved for a preliminary plat and during consideration of that plat the issue was raised regarding the decibel noise level during refmcing operations and whether or not the decibel level allowed by Trophy Club is adequate protection for the residential lots adjacent to a gas well. Ms. Huggins reviewed the locations of the six gas well sites, all of which are located in The Highlands: 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 6 In Neighborhood 1, nine residential lots have been platted adjacent to Gas Well Site 2H, possibly 9 additional lots will be platted adjacent to the well site. In Neighborhood 2, there are nine platted lots adjacent to Gas Well Site 8H. No further residential lots will be platted adjacent to the well site. In Neighborhood 6, no lots have been final platted adjacent to Gas Well Site 7H, but the preliminary plat approved in December 2006 indicates the possibility of approximately six lots adjacent to Gas Well Site 7H. In Neighborhood 7, no lots have been final platted adjacent to Gas Well Sites 3H or 15H, but the preliminary plat approved in December 2006 indicates the possibility of a total of approximately 14 tots adjacent to the well sites. In Neighborhood 8, seventeen (17) residential lots have been preliminary platted adjacent to Gas Well Site 4H. There are approximately 64 residential lots adjacent to gas well sites in Trophy Club. There was a seventh well site location in Trophy Club, north of the High School, but that well has been capped and Encena indicated they have no future plans for that site. Ms. Huggins explained that the Oil and Gas Well Drilling and Production ordinance is part of the Zoning Ordinance, Chapter 13 of the Town's Code of Ordinances. That ordinance specifies that a Specific Use Permit (SUP) is required to drill a gas well in Trophy Club and that ordinance outlines the requirements for an SUP application. It also outlines the requirements for the permitting process for drilling a gas well if an SUP is approved. Finally, it outlines the requirements for amending a permit. The Oil and Gas Well Drilling and Production ordinance in Chapter 13 also states that a gas well SUP shall adhere to the standards set forth in the Oil & Gas Well Manual located in Chapter 5 -General Land Use of the Town's Code of Ordinances. It is this Planning and Zoning Commission Page 2 of 6 Meeting Date: May 6, 2010 Planning 8 Zoning Commission Meeting Minutes June 17, 2010 manual that the Commission will be reviewing and considering for revision. The Gas Well Manual was included in the Commissioners packet. Staff is reviewing Sections 2 through 6 of the manual forpossible revisions: Section 2: On -Site Requirements Section 3: Operations and Equipment Practices and Standards Section 4.' Storage Tanks and Separators Section 5: Flow Lines and Gathering Lines Section 6: Additional Safety and Environmental Requirements Ms. Huggins stated that she spoke with an Encana representative and was informed that all six well sites have producing wells. The produced gas moves from the well sites through horizontal pipes that run along Trophy Park Drive, Trophy Club Drive, and Bobcat Blvd. to a compression station in Roanoke where the gas is compressed and then taken offsite by pipeline. Encana has longterm leases on each of the wall sites. They indicated that the average life of a well is 30 years. Encana's terminology is very specific. Encana indicates different stages of a well: drilling, completion, producing. Retracing can occur during the producing"life of a well. Encana stated that there aro a small percentage of gas wells that are actually retraced. Retracing does not occur unless the wall gives a higher rate of decline than expected or doesn't perform as expected. Retracing takes an average of one week if retracing is allowed 24 hours a day. Most towns do not allow 24 hour a day fracturing operations; most allow 12 hours, and if the Town limits the hours of retracing to 12 hours then Encana indicated retracing would take an average of two weeks. One of the items being considered for revision is located in the Gas Well Manual, under Item No. 3, Operations and Equipment Practices and Standards, which deals with noise levels of internal combustion engines. Encana indicated that internal combustion engines are used during retracing. The average decibel level of an intemal combustion engine is 100 decibels. Vice Chairman Stephens asked at what distance? Ms. Huggins didn't know but would ask that question of Encana. Most Towns require sound abatement at 100 decibels. Ms. Huggins stated that staff asks for a continuation of this public hearing to the July 15, 2010 P&Z meeting for further discussion. Chairman Hill stated that there are six well sites, but there are more wells than just six. He believed there were about 17 perils issued.. Ms. Huggins stated that there are anywhere from four to eight wellheads on each site. She will ask Encene to provide that information. Chairman Hill stated that it is his experience that any oil and gas company ri a gas well when it drops to a level that it is not economical to keep it going. The economic level depends on the company and the economy. With gas prices at 25 cents per 1000 cubic feel, they can /at it drop quite a bit. If it gets down to where itis right now at 8 cents per 1000 cubic feel, they will want to mfrac sooner. Councilman Bill Rose staled that he is surprised that Encana would say that it takes two weeks to retrec a well — perhaps if that's a complete workover of the well, but actual tracing operation boils down to less than 6 hours actual operation of the equipment. The 100 decibel level is an interesting number. Is that for one engine? There might be anywhere from six to twelve engines operating on a site at a time so it could be a very noisy operation for a shorter duration than what is indicated." He encouraged the Commission to take a look at the regulations as brought up during consideration of Neighborhood 8. The Council reduced the distance from wellhead to Planning and Zoning Commission Page 3 of McOng Dale: May 6, 2010 Planning & Zoning Commission Meeting Minutes June 17, 2010 habitable structure to allow more full development of the area — reducing the distance to 200 -ft. — the standard in Ft. Worth. He stated that it is his thought that since Council has made that the acceptable standard he suggests "seriously taking a look at Ft. Worth's oil and gas regulations on the standards that they have'. He stated that "ours" says, "The noise level during tracing operations shall reduce the noise to not more than eighty (80) decibels at any point three hundred feet (300) from the boundary of the drill site or operation site. If noise at a distance of three hundred feet (300) exceed eighty (80) decibels, a sound reduction enclosure shall be required around a drilling rig and any intemal combustion engines." He stated that he finds this interesting in that as he reads that particular statement in the regulation he interprets it to mean 'that it would be possible to have the 100 decibel situation exceeding the 80 -ft. and the gas company could come in and put up a sound curtain and it may reduce it to 90 decibels and still comply with our regulation. Even though they have something greater than 80 they made an attempt to fix it even though they didn't fix it." Mr. Rose stated that he would suggest looking at Ft. Worth seriously. "It states that for tracing if it exceeds the ambient noise level by more than 10 decibels over the daytime average ambient noise level then sound curtains must be put in place to offset the noise. They have another one that is not tracing and if you exceed the noise level by 5 decibels then you have to make those adjustments." Mr. Rose also quoted Ft. Worth's regulations regarding exceeding noise levels during flow, back operations. He mentioned free flow versus flow back and asked the Commission to look at that. He mentioned stages of the well and Ft. Worth's classifications of a gas well. He asked that all areas of the Ft. Worth regulations be looked at. Chairman Hill stated that redrilling usually occurs when the hole was totally lost somewhere and they go back in to offset it, which would be redirection. Perforating is usually done on a 4 -ft. interval with a 60 -ft. long sector and if there are gaps in it they could go back and shoot in there. Chairman Hill gave an explanation of fracingirefracing and reperforating, but it is difficult to hear on the tape as he is soft-spoken. He stated that he doubts that there would be very much morilling in Trophy Club. Mr. Rose had a few more comments in response to Chairman Hill's comments. Vice Chairman Stephens stated that Trophy Club's regulations allow 80 -decibels at 300 -ft. and that an enclosure is required. He stated that he would like to be very clear and specific with what is required if the noise level exceeds 80 decibels in order to bring that level back below acceptable decibels. Chairman Hill stated that sound frequency is also a factor. He suggested that help with sound expertise might be needed. Vice Chairman Stephens asked for an explanation of flow back. Chairman Hill stated that Commissioner Reed (absent tonight] might be able to give an explanation of now back and noise associated with it. Commissioner Sheridan noted that he has heard a hissing noise at a well with water coming out of it. A short discussion followed of possible causes for a hissing sound. Commissioner Davidson stated that he drew a 300 -ft. perimeter around each well site, and that perimeter encompasses more lots than just the lots adjacent to well sites. If the ordinance is left as is and the gas well company meets the requirements for noise decibel levels, there maybe a lot of people living close to the well sites who will have uncomfortable noise levels. The noise level will increase in proportion to the distance, obviously, and it may be uncomfortable for residents living close to gas wells. Mr. Davidson feels that something needs to change. Commissioner Sheridan asked for answers on the following questions. • Is there any possibility that there will be further drilling in Trophy Club? • There is on-going concern about hazardous air around gas well facilities. Does Planning and Zoning Commission Page 4 of 6 Meeting Date', May 6, 2010 Planning & Zoning Commission Meeting Minutes June 17, 2010 Adjourn that mean wellheads? Collection stations? Or Processing Stations or whatever they erecalled. What about along pipelines? What about while frecing operations are occurring? • Can a compressor facility be placed in Trophy Club? How close to Town limits is the compressor facility in Roanoke? • In the Gas Well Manual, Item No. 3. a. Adequate nuisance prevention measures shall be taken to prevent or control offensive odor, fumes, dust, noise and vibration. Define "adequate". • Item 3. d. references "300 -ft. from the boundary of the drill site" antl habitable sbuctures are now 200 -ft. from the wellhead (as previously pointed out by Commissioner Davidson), and a sound reduction enclosure has to be put in place if the noise decibel level reaches a certain point, but the manual doesn't specify that it has to do anything, itjust has to be there. • Since the life of a well is 30 years and during that time we will experience increases in technology, how do we have contingencies for operations in the future that we don't know about yet. • Under "Safety and Environmental Requirements"of the Gas Well Manual, it states, "Each producing well shell 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 are there periodic updates based on automated valves. For example, if the current valves were no longer the most effective, or a year from now there are better valves, is there any stipulation (in the SUP, for instance) that the valves be updated to the current technology? Who determines if the valves are working properly and/or need to be updated? • Item No. 7, Supplemental Drilling, seems to indicate they have the right to come back in and do additional drilling (full fledged drill rig). Commissioner Sheridan stated that production figures are available through the Texas Railroad Commission. He also asked whether or not Trophy Club allows refacing 24 hours a day, right now. Chairman Hill responded that he didn7 believe the noise ordinance would allow it. Chairman Hill stated that this discussion will continue at the July 15, 2010, Planning and Zoning Commission meeting. A motion was made by Vice Chair Stephens, seconded by Commissioner Sheridan, that this Agenda Item Public Hearing and Discussion be Continued at the July 15, 2010, Planning & Zoning Commission meeting. The motion CARRIED by the following vote: Aye: 5 - Vice Chair Stephens, Commissioner Davidson, Commissioner Sheddan, Commissioner Forest, and Chairman Hill This meeting Adjourned 7:56 p.m. Planning and Zoning Commission Page 5 of 6 Meeting Date: May 6, 2010 Planning 8 Zoning Commission Meeting Minutes June 17, 2010 ane HIlletheirman Carolyn Huggi�weig Manager Planning and Zoning Commission Page 6 of a Meeting Date'. May 6, 2010