proposed gas drilling and production regulations

City Council Briefing August 27, 2007 1

Proposed Gas Drilling and Proposed Gas Drilling and Production RegulationsProduction Regulations

City Council Briefing

August 27, 2007


Purpose of BriefingPurpose of BriefingOutline need for code amendmentsBackground on natural gas production in the Barnett ShaleOutline of natural gas drilling and production phasesOutline major issues to be addressedProvide an update on status of code amendments


ReviewReview

City Attorney’s OfficePublic Works and Transportation

UtilitiesStreetsFloodplain

Office of Environmental QualityHuman Resources – Risk ManagementDevelopment ServicesOutside Counsel


Committee ReviewCommittee ReviewZoning Ordinance Advisory Committee (ZOAC) considered the proposed ordinance at 6 meetings ZOAC had two additional meetings as part of the CPC Environmental Committee to review conditions for SUPsZOAC and CPC took a bus tour to visit gas drilling and production sites on April 12, 2007 CPC was briefed on August 9, 2007CPC had a public hearing on August 23, 2007 and recommended approval of the proposed ordinance


Review of Other Cities Review of Other Cities Ordinances and ProcessesOrdinances and Processes

Ft WorthIrvingArlingtonNorth Richland Hills Flower MoundColleyvilleCoppellGrapevine Southlake


Need for Code AmendmentNeed for Code AmendmentNatural gas drilling and production is currently considered a mining useExisting zoning provisions targeted towards sand and gravel miningLocation restrictions

Limited to Agricultural and Industrial Manufacturing Districts by Specific Use PermitProhibited in parkland

Insufficient permitting and review


Need for Code AmendmentNeed for Code Amendment

Environmental and Compatibility Issues

Air & water qualityNoiseEarth vibrationsLight and glareAesthetics


Other Regulatory Provisions Other Regulatory Provisions & Authority& Authority

Texas Railroad Commission Applicable Federal Law

Air qualityStorm water runoff

City CodesEnvironmental Performance Standards


Background Background --The Barnett ShaleThe Barnett Shale

Largest onshore natural gas field in Texas, one of the largest in the U.S.First discovered in 1981, recovery methods developed in 1990s made significant production possibleHeaviest concentration of well development is Tarrant, Johnson and Parker countiesCurrent known boundaries would limit any production to the far western portion of the City of Dallas



Barnett Shale gas wells are between 7,000 and 10,000 feet deepLateral drilling techniques reduce the number of wells to be drilled.Lateral lines extend up to 5,000 feet from the primary shaft in any or all directions.



Newark East Field


© 2007 by The Perryman Group


Drilling Activity


Vertical v. Horizontal Drilling



Typical Gas Well Site PhasesTypical Gas Well Site Phases

Site preparation Drilling operations Wellhead establishmentProductionReworking / FracturingSite reclamation


Typical Gas Well PhasesTypical Gas Well Phases

Site preparation



Site preparation

Digging the mud pit Lining the mud pit



Drilling Operations

Drilling rig move in



Drilling Operations



Wellhead establishment



Production with perimeter screening and landscaping



Reworking


Regulatory IssuesRegulatory Issues

Permissible zoning districtsDistance to other uses and structuresHours of operation Sound regulationsReclamationImpact on city infrastructure (roads)Screening



Permissible zoning districtsCurrent Provisions

By SUP only in Agricultural and IMZOAC and CPC recommendation

By SUP in all zoning districtsSUP provides

Public inputAppropriate site specific restrictionsFlexibility


Regulatory IssuesRegulatory IssuesDistance to other uses and structures

Current ProvisionsNone – unless imposed by SUPProhibited in parkland

Proposed ordinanceGreater setbacks may be imposed by SUP300 ft from institutional uses, recreation uses and residential uses200 ft from any water well100 ft from any structure75 ft from any right-of-way25 ft from any property line, storage tank or source of ignitionPermitted in parkland



Hours of operationCurrent Provisions

No formalProposed ordinance

Fracturing limited to daylight hoursTypical

Drilling phase 24/7 (approximately 30-60 days)Production 24/7 (minimal noise impacts)Fracturing – daylight hours



Sound regulationsCurrent Provisions

Defaults to code (varies relative to zoning)Proposed ordinance

Drilling - May not produce a sound level greater than 78dB(a)Fracturing - May not produce a sound level greater than 85dB(a)Production – Defaults to codeMeasured at 300 ft from the well



ReclamationCurrent Provisions

Reclamation plan and performance bondProposed ordinance

Reclamation plan and performance bondNo structure may be built over an abandoned well



Impact on city infrastructure (roads)Current Provisions

Addressed in SUP and operations planProposed ordinance

Require map of truck routesVideo tape of truck routes showing road conditionsRequire periodic inspections and repair as needed (within 10 days of notice)Require road repair agreement



EnvironmentalAllow open or closed loop systems determined by SUPOnly fresh water mud systemsRestriction on metal additives to drilling fluidsEmissionsSalt water disposal wells prohibited


Other Regulatory IssuesOther Regulatory Issues

Notice prior to fracturingInsurance and IndemnificationEmergency response planScreening

Site specific requirements through SUP


Approved SitesApproved SitesThree approved SUPs

DBU

Nat’l Cemetery

Mountain CreekLake

Mountain CreekBusinessPark


StatusStatusCity Plan Commission recommended approval on August 23, 2007Scheduled for City Council consideration on September 12, 2007


DiscussionDiscussion


Existing Site Plan

Required PlansRequired Plans


Operations Plan: Drilling



Operations Plan: Production



Reclamation Plan


proposed gas drilling and production regulations

Documents