Minutes P&Z 06/17/2010Trophy Club Entities
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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
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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
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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
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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
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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
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ane HIlletheirman
Carolyn Huggi�weig Manager
Planning and Zoning Commission Page 6 of a Meeting Date'. May 6, 2010