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HomeMy WebLinkAboutGBA 2009-07-09 MinutesMINUTES OF THE MEETING OF THE GAS BOARD OF APPEALS OF THE CITY OF NORTH RICHLAND HILLS, TEXAS JULY 9, 2009 1. CALL TO ORDER The meeting was called to order by Chairman Tom Duer at 6:35 p.m. 2. ROLL CALL PRESENT Chairman Tom Duer Randy Shiflet Garry Cope ABSENT CITY STAFF Director of Planning & Dev. Assistant Dir. Public Works Assistant Fire Chief Recording Secretary Kathy Luppy John Pitstick Greg VanNeiuwenhuize Kirk Marcum Tanya Hope 3. Approval of June 11, 2009 Gas Board of Appeals Meeting Minutes. APPROVED Garry Cope, seconded by Randy Shiflet, motioned to approve the minutes from June 11, 2009. The motion carried unanimously (3-0). 4. GB 2009-03 Continuation from June 11, 2009 Gas Board of Appeals Meeting of Public hearing and consideration of a request from Chesapeake Energy Corporation for a variance to the required 150 foot "no-build" zone from the outside boundary of an existing gas well site under Section 104-6(0) for the proposed Morrow-Stevens A3H and 63H gas wells located at 9201 Kirk Lane. John Pitstick explained in June 11, 2009 meeting that there were questions and concerns about development within the 150' no build zone. Mr. Pitstick explained that Page 1 of 5; 07/09/09 GBA minutes Staff has provided updated maps so that the Board can see what the current boundaries are around the gas well sites. Mr. Pitstick explained that he would like to discuss the proposed Ordinance revision that will be presented to City Council on Monday July 13, 2009. Mr. Pitstick stated that Staff is recommending a postponement for GB 2009-03 until July 30, 2009. Mr. Pitstick stated that depending on what happens at the City Council meeting, if Council approves the proposed Ordinance then Chesapeake could withdraw the application and the Gas Board of Appeals would not have to meet on July 30, 2009. If City Council doesn't approve the Ordinance then the Gas Board of Appeals would meet on July 30, 2009 and continue with the public hearing. Mr. Pitstick explained that the Morrow-Stevens site was established before the requirement for the 150 foot no-build zone around the outside boundary. Based on that, Staff has spoken to the City Attorney, Chesapeake, and surrounding landowners. City Staff is recommending that Section 104-6(j)(5) be repealed. Section 104-6Q)(5) deals with the requirements for no building within the 150 foot no-build zone after the fact, in other words after the gas well is drilled. The Morrow-Stevens and Graham well sites both have existing preliminary platted properties that fall within the no-build zones therefore City Staff would like to remove or repeal that section of the Ordinance. By removing the Ordinance future development could occur. Mr. Barfield, Mr. Morrow and Mrs. Stevens could develop in the future within the 150 foot no-build zone if the Ordinance is repealed. Mr. Pitstick explained that City staff is recommending adding to Section 104-6(0). Mr. Pitstick stated that we are keeping the requirement for the 150 foot build zone but that the subsection shall not apply to those sites where one or more gas drilling permits were granted on or before August 5, 2008. What this would effectively be doing is grandfathering the Morrow-Stevens, Graham, and the Birdville gas well sites. It would not grandfather any future well sites. Chairman Duer opened the public hearing at 6:45 p.m. Norman Herrera, 100 Energy Way, Fort Worth, came forward representing the applicant Chesapeake Energy. Mr. Herrera stated that Chesapeake has provided a letter dated July 2, 2009 requesting that the Morrow Stevens A3H and B3H Gas Board of Appeals meeting for the variance request of the 150' no build easement requirement to be postponed to the July 30, 2009 Gas Board of Appeals meeting. Chairman Duer closed the public hearing at 6:46 p.m. Mr. Pitstick stated that City Staff believes that the changes are appropriate and that it would not lower the community standard because as depicted on the maps, there is still the 600 foot requirement with the gas well vicinity notice. In addition the applicant can still come in and request a variance to the Gas Board of Appeals. The Gas Board of Appeals has granted two variances previously. Mr. Pitstick explained that the yellow Page 2 of 5; 07/09/09 GBA minutes line shown on the map is the 300 foot boundary if there are existing structures or future structures built in there between gas well sites. The gas company would have to get permission from the Gas Board of Appeals and also the property owners. Mr. Pitstick stated that with it still establishes a good community standard, protect property owners, and allows for future development while still allowing for drilling to occur. Mr. Pitstick stated that an additional safety standard that is in the Ordinance is the permanent masonry wall has to be built within ninety days of the completion of the first well. While we ultimately may see ten or fifteen wells on each site, the masonry wall would be built so it would serve as a natural boundary. The masonry wall has been installed on the Graham well site. City staff has worked with Chesapeake and the masonry walls on both the Morrow-Stevens and Birdville well sites should be installed by September 1, 2009. Mr. Pitstick stated that there will be a permanent masonry wall with landscaping. Based on that and with working with our City Attorney, property owners and Chesapeake, City Staff believes that the revision that allows for drilling to continue but also protects the community standard. Mr. Pitstick stated that City Staff met with Mrs. Stevens and Mr. Barfield and they were okay with the proposed Ordinance revision. Mr. Duer asked if it's the Ordinance revision that City Council will be acting on Monday night? Mr. Pitstick said yes. Mr. Duer asked if technology has improved to the point that the gas company can build masonry walls and get all their equipment for multiple sites? Mr. Duer stated that he recalls that Harding wanted to wait until they got their second well in before the masonry wall. Mr. Pitstick stated that the gas well companies are getting bigger sites. Greg VanNeiuwenhuize stated that the Graham site was originally constructed by Harding Company. At the time, Harding Company's modus operandi was to have the drill area as large as possible and then when they went to production and didn't need all that room, they would shrink it down. Mr. VanNeiuwenhuize stated that he doesn't think that Chesapeake has that same philosophy. Mr. Pitstick stated that there are fewer well sites but the gas companies are building multiple wells on each site. Mr. Pitstick stated that we are seeing bigger final production well sites than we originally started with. Mr. VanNeiuwenhuize stated that technology has changed. When Harding Company first came in, Harding did not have the movable rigs. Page 3 of 5; 07/09/09 GBA minutes Garry Cope asked if the philosophy of Chesapeake is to leave the site the same size and not shrink it down after production? Mr. VanNeiuwenhuize answered yes; and that the drilling site and the production site upon turning in permit applications have been the same size. Mr. Pitstick stated based on our Ordinance it allows the masonry wall to be built and allows Chesapeake to come in and drill future wells with enough room to work within the walls. Mr. Pitstick stated with the newer technology, the gas wells are being built approximately ten feet apart. Kirk Marcum stated that on the Graham well site, the site is a lot tighter than the other sites in regards to the wall and the gas wells. Randy Shiflet, while looking at the boundary map, asked if what is being proposed for the three gas well sites to City Council is governed by the red line? Mr. Pitstick stated yes and that City Staff would be removing the dotted black line. The three well sites would be grandfathered and the 150 foot no-build zone would not be applicable to these sites. Mr. Marcum stated that it would be the green circle. Mr. Marcum stated that the original Ordinance called for nothing within 150 foot of the well head and tank battery. Mr. Marcum stated that City Staff was trying to do away with the 150 foot of the tank battery but City Council wanted to go out to the fence boundary. Mr. Marcum stated that City Staff wanted just the 150 foot around the well head itself which would normally stay inside and then you would use the exterior wall as your boundary for not building within the wall. Mr. Shiflet, seconded by Mr. Cope, motioned to postpone GB 2009-03 to July 30, 2009. The motion carried unanimously (3-0). Mr. Duer asked if City Staff would notify the Gas Board of Appeals members about the decision of the City Council meeting? Mr. Pitstick stated yes and if City Council passes the Ordinance revision than it would be up to Chesapeake to give us a letter to withdraw their case. The Gas Board of Appeals has officially set the next meeting date to July 30, 2009. If City Staff doesn't hear from Chesapeake than the meeting will still be held and move forward. Mr. Pitstick stated hopefully if City Council passes the Ordinance Chesapeake will give us a letter withdrawing their case and then City Staff would notify the Gas Board of Appeals and affective property owners that the meeting has been cancelled because Chesapeake has withdrawn their case. Page 4 of 5; 07/09/09 GBA minutes 5. ADJOURNMENT The chairman adjourned the meeting at 6:58 pm. Chairman Tom Duer Secretary ~~ Ka by Luppy Page 5 of 5; 07!09/09 GBA minutes