From
Cindy Mendez, Environmental Quality Manager
Title
Ordinance amending Chapter 13, Article 19 - Gas Drilling and Production Ordinance
Presenter
Cindy Mendez, Environmental Quality Manager
Recommended Action
Approve
Analysis
The city passed its' first Gas Drilling and Production Ordinance in 2005. In the past 15 years, Environmental Quality has revised the ordinance ten times as needed for aesthetics, public health, public safety, or for other reasons. The last ordinance update was in 2015. This ordinance seeks to address three issues: administrative variance for the drilling of the first well on the pad site, the requirement of a Surface Reclamation Plan, and post production inspections.
For operators, drilling wells with the current gas prices may not be feasible, however, securing a permit may be required for contractual reasons. Currently, operators must drill their first well within 180 days to validate the permit. The proposed change in this ordinance will allow administrative extensions for additional 180 day periods. This extension avoids the necessity of bringing a variance to city council.
The existing requirements when plugging and abandoning a well will be enhanced by requiring submittal of a Surface Reclamation plan which will provide valuable information on the operator's plan related to not only removing existing equipment and restoring the property, but also specifics as to how the land will be re-vegetated, the configuration of the reshaped topography, and other important planning information to ensure the well site is being appropriately returned to its original condition for use under the city comprehensive plan.
In addition, the ordinance will require a specific Post Production Inspection. Currently, inspections are done after plugging, but this inspection will be enhanced with monitoring for healthy and safety items which negatively impact the environment at or above the surface such as naturally occurring radioactive material and sub grade leaks. This will provide a record of the evaluation for future redevelopment in addition to other due diligence done by the property owner. This inspection will complete the regulation of the wells by the City.
These ordinance changes were presented to the Public Safety, Health & Environment Committee on November 2, 2020 and the City Council Development Committee on November 3, 2020.
Financial Considerations
Gas operators currently pay between $800 and $6,400 per inspection depending on the number of wells and nearest protected use. The post production inspection costs are estimated to be an additional $1,200 to $3,000. If further investigation is warranted, the operator can utilize their own consultant to conduct any additional investigation and remediation to meet state and federal standards or can choose to utilize our consultant to conduct the work and reimburse the city through our escrow account.
Body
AN ORDINANCE AMENDING CHAPTER 13 “HEALTH AND SANITATION”, SECTIONS 13-501 “DEFINITIONS”, 13-518 “PLUGGED AND ABANDONED WELLS, AND 13-524 “SUBMITTING DOCUMENTATION”, OF THE CODE OF ORDINANCES OF THE CITY OF GRAND PRAIRIE, TEXAS; PROVIDING A PENALTY CLAUSE, A SAVINGS CLAUSE AND A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE UPON PASSAGE AND PUBLICATION.
WHEREAS, the City has restructured the Environmental Services Department and altered job titles since the original passage of Article XIX (Gas Drilling and Production) of Chapter 13 (Health and Sanitation) of the Grand Prairie Code of Ordinances; and
WHEREAS, market conditions related to gas drilling have been impacted by the COVID-19 Pandemic creating a desire to delay drilling certain wells; and
WHEREAS, authorizing additional extensions of gas well permits is commercially reasonable;
WHEREAS, additional regulations related to the development of land which has previously been utilized for gas operations is necessary to protect the health and safety of the public;
WHEREAS, the receipt of notices related to abandonment and inspections of conditions at or above the surface of the ground during and post abandonment will help ensure the health and safety of the site and its future occupants;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
Section 1. That Section 13-501 (Definitions) of Chapter 13, “Health and Sanitation”, of the Code of Ordinances of the City of Grand Prairie, Texas, is hereby amended by adding the following:
“Environmental Services Director or City’s Environmental Services Director means the City Manager or designee.”
Section 2. That Subsection (f) of Section 13-504 (Gas well permit required) of Chapter 13, “Health and Sanitation”, of the Code of Ordinances of the City of Grand Prairie, Texas, is hereby amended to read as follows:
“(f) A gas well permit shall automatically terminate, unless extended, if drilling is not commenced within one hundred eighty (180) days from the date of the issuance of the gas well permit. Drilling must commence within one hundred eighty (180) days from the date of the issuance of the gas well permit on at least one (1) well under a permit, as described in section 13-504(b) in order to maintain the validity of the gas well permit for the multiple wells. A gas well permit may be extended by the inspector for additional one hundred eighty (180) day periods upon request by the operator and proof that the classification of the requested gas well permit for such location has not changed.
For gas drilling permit applications received after January 18, 2011, all initial drilling activities shall be required to cease five (5) years from the date of permit issuance for the initial gas well for a particular pad site. Any permits that contain authorization for the drilling of gas wells that are not drilled within this time frame shall be modified by the city to remove any reference to the un drilled gas wells. An operator may apply for a one-time, five-year administrative extension from the Environmental Services Director. The Environmental Services Director shall be authorized to require such measures as necessary to minimize the impact of the additional drilling activities upon neighboring properties as a condition of the approval of the administrative extension. Any additional extension requests or the appeal of a denial of an administrative extension shall require City Council approval in accordance with Section 13-510. Extension requests, whether administrative or requiring City Council approval, shall be requested in writing at least six (6) months prior to any drilling permit expiration date. All extension requests shall be an amendment to the gas drilling permit and the fee required in 13-505(b) shall be assessed. Any rework or re-franc operations shall comply with this article.”
Section 3 That Section 13-518 (Plugged and abandoned wells) of Chapter 13, “Health and Sanitation”, of the Code of Ordinances of the City of Grand Prairie, Texas, is amended to read as follows:
(a) Surface requirements for plugged and abandoned well. Whenever abandonment occurs pursuant to the requirements of the commission, the operator so abandoning shall be responsible for the restoration of the well site to its original condition as nearly as practicable, in conformity with the regulations of this article.
(b) Abandonment shall be approved by the inspector after restoration of the drill site has been accomplished in conformity with the following requirements at the discretion of the inspector:
(1) All appurtenant equipment thereto shall be removed from drill site;
(2) All tanks, towers, and other surface installations shall be removed from the drill site;
(3) All concrete foundations, piping (surface and subsurface flow lines), wood, guy anchors and other foreign materials regardless of depth, shall be removed from the site, unless otherwise directed by the commission;
(4) All holes and depressions shall be filled with clean, comp actable soil:
a. Abandoned holes, depressions and private access drives used during the operation of the gas well that are constructed on or within public or private parks, landscaped common areas within a residential subdivision, landscaped residential areas or yards, or similar type areas with a maintained ground cover surface shall also be re-sodded with equal or better quality ground covering material similar to that evident on adjoining maintained ground-covered areas.
(5) Whether the gas gathering pipeline shall be abandoned in place or removed during abandonment shall be determined by the gas well operator and the gas gathering pipeline operator in accordance with commission standards and other applicable law. In addition, the City shall be consulted and assist in the determination when the gas gathering pipeline is in a City right-of-way.
(6) All waste, refuse or waste material shall be removed from the pad site;
(7) A permanent abandonment marker pipe, with the well identity and location permanently inscribed, shall be welded to the casing and shall be at least four (4) inches in diameter with a length of four (4) feet visible above the ground level; and
(8) After all equipment and waste material has been removed from the site, the operator must notify the City and schedule the final post-production inspection. The purpose of the post-production inspection is to evaluate impacts at or above the surface of the ground which may need to be addressed to ensure the health and safety the public and future occupants. All fees incurred by the City as a result of such post-production inspections shall be paid by the Operator.
(9) During abandonment, operator shall comply with all applicable sections in this article.
(c) Abandoned well requirement. The operator shall furnish the following to the Environmental Services Department:
(1) A copy of the W-3A “Notice of Intention to Plug and Abandon” and “W-3 Plugging Record” forms on the same date these forms are submitted to the Texas Railroad Commission; and
(2) A notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may be commenced on or subsequent to the date so stated provided that notice has been received by the Environmental Services Department.
(d) Abandonment requirements prior to new construction. All abandoned or deserted wells or drill sites shall meet the most current abandonment requirements of the commission prior to the issuance of any building permit for development of the property. No structure shall be built over an abandoned well.
(e) No structures shall be built over an abandoned well. A five-foot no-build easement around the center of the plugged and abandoned well bore shall be required and recorded in the applicable county deed records on all residential zoned lots.
(f) Surface reclamation plan requirements.
(1) Each operator must submit as part of the gas well abandonment, a surface reclamation plan that must include information outlined in this subsection (d), in the degree of detail necessary to demonstrate that full site reclamation can be accomplished.
(2) The reclamation plan must include:
a. Measures to be taken to restore property to allow use under the city comprehensive plan;
b. The control of surface water drainage and of water accumulation and measures to be taken during the reclamation process to provide for the protection of the quantity and quality of surface and groundwater systems;
c. Remediation of impacted surface and ground water;
d. Backfilling, soil stabilization, compacting, grading and appropriate re-vegetation;
e. Soil reconstructions, replacement and stabilization;
f. Configuration of the reshaped topography;
g. Waste disposal;
h. A plan for re-vegetation of affected lands;
i. Road reclamation; and
j. Other practices necessary to ensure all disturbed areas will be reclaimed.
Section 4 That Section 13-524 (Submitting Documentation) of Chapter 13, “Health and Sanitation”, of the Code of Ordinances of the City of Grand Prairie, Texas, is hereby amended to read as follows:
“Documents required to be submitted to the Environmental Services Director pursuant to this Article shall be submitted through the Environmental Services Department of the City of Grand Prairie. The term “Environmental Services Department” as used in this Article refers to the Department or Division within the City of Grand Prairie designated to enforce this Article.
Section 5. That a violation of any provision of this Ordinance shall be a misdemeanor punishable in accordance with Section 1-8 of the Code of Ordinances of the City of Grand Prairie, Texas.
Section 6. That Chapter 13, “Health and Sanitation”, of the Code of Ordinances of the City of Grand Prairie, Texas, as amended, shall be and remain in full force and effect save and except as amended by this Ordinance.
Section 7. That the terms and provisions of this Ordinance are severable and are governed by Section 1-4 of the Code of Ordinances of the City of Grand Prairie, Texas.
Section 6. All ordinances or parts of ordinances not consistent or conflicting with the provisions of this Ordinance are hereby repealed. Provided that such repeal shall be only to the extent of such inconsistency and in all other respects this Ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered in this Ordinance.
Section 7. That this Ordinance shall be and become effective immediately upon and after its passage and publication.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, NOVEMBER 17, 2020.