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HomeMy WebLinkAboutGBA 2012-06-20 Minutes MINUTES OF THE MEETING OF THE GAS BOARD OF APPEALS OF THE CITY OF NORTH RICHLAND HILLS, TEXAS JUNE 20, 2012 1. Call To Order The meeting was called to order by Vice Chairman Shiflet at 6:30 p.m. 2. Roll Call PRESENT Chairman Tom Duer Randall Shiflet Kathy Luppy Marty Kusmierski Garry Cope CITY STAFF Director of Planning & Dev. John Pitstick Asst. Dir. of Public Works Greg Van Neiuwenhuize Fire Marshall Lt. Greg Lindsey Recording Secretary Gina Pastre 3. GB 2012 -03 Public Hearing and consideration of a request from Chesapeake Energy Corporation for a deviation from established work hours for gas well operations at the BISD gas well site located at 6200 Richland Plaza Drive. Work hours for gas well operations are established in Section 104 -13 of the City of North Richland Hills Code of Ordinances. John Pitstick came forward and stated this is a public hearing for consideration by Chesapeake and for established work hours. They have requested an appeal from the established public work hours from 7:00 am to 7:00 pm. While they are drilling and doing the fracturing they are on 24 hour operations. During normal operations the typical construction hours for the public of 7:OOam to 7:00 pm. Our current regulations allow for daylight savings time from 6:00 am to 8:OOpm. We have allowed Chesapeake to extend to those daylight savings time hours. There are 12 permitted wells and they have 10 operating wells at this time. Water is produced with the gas at the beginning stages and then it dries up during the prime production time and then at the end it would again produce more water. The primary issue is that they have 10 tanks that are approximately 10,000 gallon tanks. During the typical working hours they are producing about 9,000 gallons of water per hour. The water is required to be hauled off site. During the working hours they have 2 trucks per hour and each can carry about 5,000 Page 1 of 8; 06/20/12 GBA minutes gallons. However during the 10 hours that they are not allowed to haul water they are accumulating about 6,000 gallons. The issue is that during the nighttime hours when they cannot haul off the water they have to reduce the production so the existing tanks won't overflow. This means that at 6:00 am they have to have 12 trucks ready to go to get in to begin to haul off the water from the night. The specific appeal is in section 104- 6 KK with specifies working hours for gas wells. No activity other than drilling shall be conducted only between 7:00 am and 7:00 pm Monday — Saturday. In the appeals section 104 -18 C it states that the Gas Board is authorized to decide by majority vote requests for deviation specifically authorized by this chapter which would include hours of operation. In relevant considerations in determining such requests should be granted include the nature and remoteness of the site, the wishes of the owners and the immediate adjacent property impacted by the request. We have mailed out notices and this is the first time that the Gas Board has seen anything at the BISD site. The reason for that is all the Gas Wells are more than 600 feet from any habitable structure. When we sent out notices for the exterior of the pad site then there were a few homes that were notified for within that area that were affected. We would recommend that the Gas Board listen to the concerns of the affected property owners and would be open to their concerns and questions. BISD is somewhat of an isolated site because it is a lower density area. Chesapeake has asked to expand this site and we have preliminarily approved a site that would extend the drilling site. Birdville Independent School District and city staff all approve of the extension of the site. The landscaping was taken out on the east side when the pipeline construction was done. The outstanding issues at that site include a permanent concrete drive and landscape buffers on the east side of the site have not been replaced since the construction. The other issue is the existing holding tanks are visible from public areas over the masonry screening wall. They are proposing to expand site to the south and build a new screening wall but they would like a year extension on making those improvements. They have submitted a plan that includes the access road within the next several weeks and they should be completing the landscaping this summer but they would like to wait a year for the screening wall after the expansion. Staff has concerns about this since the ordinance states that the tanks have to be screened from view. Based on this and the concerns that the timely improvements have not been made to offset the impact. Staff is recommending denial at this time. We are not against the water hauling however until these other issues need to be resolved first. If you have any questions we would be happy to answer any questions. Jenna Waters, Public Affairs Manager for Chesapeake Energy, 100 Energy Way, Fort Worth, TX came forward to present our Birdville padsite overview and request for variance for 24 hour water hauling. As you know the Birdville padsite is located on property owned by Birdville School District on Richland Plaza Drive. We are seeking the water haul transportation variance to move to 24 hour operations. The padsite currently had 10 wells drilled and 9 of those are producing. We rotate a shut in well so we can monitor and maintain the water level. We only have a certain number of tanks on the property and by keeping one rotating well shut in we are able to manage that a little better. The transportation route for the water hauling trucks is they go south out of the pad site to Broadway and then they take 183 to 820 to the produced water site at Silver Creek. This is actually a quarry in the county area of West Fort Worth. We produce 27,000 cubic feet of natural gas. We produce 3400 barrels of water per day. Page 2 of 8; 06/20/12 GBA minutes We haul between 6:00 am and 8:00 pm which is 14 hours. That is 2 trucks per hour and due to road construction that is half the number of trucks in twice the amount of time. It takes 2 trucks 4 hours to make the rotation. We currently have 10 hours of shut in time and that leaves us with 1420 barrels waiting at 6:00 am. That is 12 trucks to catch up and that takes 6 hours just to catch up from the night. We are requesting unanimous approval of the 24 hour hauling of produced water so we can get back on cycle with our regular production. We understand that in previous times when we were doing our flow back water the staff was able to allow for a variance for 24 hour hauling. We are hoping to be able to catch up on our produced water in the same manner. I would be happy to answer any questions. Chairman Tom Duer asked if this would continue just through the production of the natural gas to the market? Jenna Waters said yes. Chairman Tom Duer asked if this will be a process that you would like to have going on for the life of that well? Jenna Waters said that as John mentioned when we first bring a well online that is when we have the most production of water. Within a very short amount of time the trucks go from the amount you see today in our presentation to about 1 truck every other day. Once we get the variance and are able to catch up you will see that the trucks will drop down from 12 to 1 every other day. With the Birdville site and the shut in and the amount of water we are producing we are actually behind the schedule on when that will happen. Chairman Tom Duer asked if that one well site is producing a lot more water then the other ones that are producing gas right now? Jenna Waters said yes but it is also very good in the production of natural gas as well. So it is a very good site for Chesapeake and for the mineral owners. Marty Kusmierski asked how long this would have to go on? Jenna Waters said that the first estimation is 6 to 9 months. That is based upon all of these calculations. We don't know exactly how much water is already down there that will come up with the gas. It is a temporary request and we will be happy to report in to you to keep you updated and please feel free to do the same with us with any changes. We understand that you can do that anytime. Randall Shiflet asked about Chesapeakes attitude as far as paving the driveway? Jenna Waters said that we are waiting on the final approval from staff to let us go ahead and move forward. We already have everything ready to get started. We just need the final approval from city staff. The landscaping will be started on Friday. Page 3 of 8; 06/20/12 GBA minutes Randall Shiflet said that he had just drove by there and asked if there is an option in regards to the tops of the tanks that are showing above the wall? The landscaping looks good on the south side. What are they doing with the TCC site? John Pitstick said that we are still talking about that site also. The original plan called for the tanks to be screened but what happened is the 8 foot wall is not screening the tanks now. Chairman Tom Duer asked if the tanks are up on podiums? John Pitstick said that the height of the tanks is about 8 feet but what is happening is that the ground has been bermed up and it has raised the level of the tanks above the wall. Randall Shiflet asked if 9 of the 12 are producing gas now? Jenna Waters said yes. We had 12 permitted and we have only drilled 10 of them. We rotate that one shut in. They are all online but just keep one shut in to keep the water production down. They can all produce if we have the capacity for the 24 hour water hauling. We have 8 water tanks on the property and they fill up to capacity and we have to allow for a certain amount of air to be contained in the tanks. If it gets too full it affects the stability of the tanks. We fill to maximum and then shut them down to wait for the trucks at 6:00 am. That is 12 trucks waiting at 6:00 am. They don't all wait on the street at the same time but they come in on a rotation about every 45 minutes. We aren't able to get caught up on the water from the night until about 2:00 pm and then we are able to get started on our daily production of water. Chairman Tom Duer asked if you were able to go 24 hours what rotation would the trucks be on? Jenna Waters said that it would the same except the 12 trucks that are waiting in the morning would be the 12 trucks that you would see at night. There would be 2 trucks every hour. The trouble is the construction has doubled our length of time our trucks are on the road. We have to go east on 183 and then up and over. There is not a direct shot for our trucks. Garry Cope asked if he heard her say correctly that the water levels will go down quickly? Jenna Waters said yes. Garry Cope said that when Marty asked you about the time frame you are talking about 6 to 9 months before the water levels drop to the point where you will be doing 1 truck every 2 days. Jenna Waters said that it is because we are so behind in our water production and the shut in. Had we been able to pull off all the water we needed to from the beginning that wouldn't have been an issue it would have taken a lot less time. We are working in half Page 4 of 8; 06/20/12 GBA minutes lifes. Because of the production overnight our day actually starts at 2:00 pm in the afternoon. Garry Cope said that 6 to 9 months does not sound like a short period of time. Jenna Waters said that she understands that but that is how far behind we are. It could be less time but we don't want to ask for less time and have to come back before you to ask for more time. Public Hearing opened at 6:52 pm Chairman Tom Duer asked for anyone wanting to speak for or against GB 2012 -03 Carolyn Ayers, 3613 Holland Drive, North Richland Hills, came forward and stated that she can see the tanks from her property. Our property is higher in elevation. I do want to thank the City of North Richland Hills for notifying us. It has been 5 years and 8 months since this project started or since we signed for our $300 bonus. Since then we have experienced noise for a couple years 24/7. We have experienced having to cover our windows at night because the lights were so bright. The dust has been unbearable with our swimming pools and hot tubs. Every day we have to go out and clean. There hasn't been a privacy fence as far as we are concerned because of the elevation of our property and the barrier has been removed from that side. We are just wondering how much more are we going to have to give up to enjoy our back yards and our property. There have been times when my neighbor and I have stood in our yards hollering at each other trying to have a conversation. It is better now and not quite as noisy although it is still very dusty. They have cleaned up a lot of things. We would like to know some time frames. We would like updates because we are left in the dark to wonder what Chesapeake is doing and why we aren't being informed. We are not excited about having those trucks disturb us 24/7 and I don't think anyone would be. We have been very nice and have never approached the city about anything. We don't complain to Chesapeake because we thought it would be for the better good of our community. That $300 has been all that we have seen. What recourse do we as citizens have if this doesn't work for us? So what about that 6 to 9 months. If it is unbearable can we come back and talk with you? The watering of the dirt is not being taken care of and we are dealing with that. What kind of compensation do we get as a neighborhood? I appreciate you listening to me. We love our city and I have been in my home for 35 years. I have paid a lot of taxes and made a lot of friends and supported a lot of things in this city. Chairman Tom Duer said first of all we have been at this about 6 years. The Gas Board of Appeals hears the variances or exceptions. Until tonight we have only had one or two citizen comments. The reason we haven't had any comments on this particular well site is because everything was within the ordinance. We are all residents just like you therefore we do listen and we do care. To address your visibility I'm not sure how we would be able to change that due to your elevation above the site. We can make sure that they aren't seen at ground level. We are concerned about dust and things of that nature. We haven't had very many complaints or concerns from the residents. Therefore we haven't heard anything from the Birdville site prior to tonight. The Page 5 of 8; 06/20/12 GBA minutes variance that is being asked for tonight is only for expanding the work hours. Would the traveling of the trucks from 8:OOpm and 6:00 am put an extra burden on you and the other residents in that neighborhood is what we have to evaluate for tonights decision. The other matters that they have discussed are ancillary items that we would like to get improved. We would like to get the barrier and concrete driveway completed. How will the frequency of the trucks increasing affect you and your neighborhood? Carolyn Ayers said that her bedroom is on that side of the house so I hear those kinds of things. I can't speak for my neighbors. Garry Cope said that there are already a lot of trucks going in and out of there. Can you describe for me what that sounds like during the day? I'd like to know what that sounds like to a citizen. Carolyn Ayers said that when she is home it is very annoying. We used to have a very quiet neighborhood and we didn't have a lot of traffic so certainly we have noticed the trucks coming and going. If you are out working in your yard during that time and the dust from the trucks is really bad. Chairman Tom Duer asked if anyone if their neighborhood had spoke to city council about their concerns? That is really the venue that you will need to pursue because they are the ones that can make changes to the ordinances. John Pitstick said that Lt. Greg Lindsey is our Gas Inspector. He has his cards available for you. If there is dust or issues you need to call Greg. He is out there on a daily basis and he has full rights to tell Chesapeake to get their water trucks out or deal with any problems. Kathy Luppy asked if the dust is coming from the gravel driveway ? John Pitstick said yes and the new paved driveway is going to resolve some of that. We encourage the neighbors to contact Greg Lindsey at any time with any concerns. Lt. Greg Lindsey said that he has placed his cell phone numbers on his cards and he can be contacted anytime 24 hours a day and can address any issues that you may have. Randall Shiflet said that the request that we are considering tonight is simply the expansion of the times that trucks can be running in and out of there but if we make a recommendation to approve this we can make a stipulation on there for the concrete driveway to get rid of the dust and get the landscaping complete. I don't know that we will get landscaping or fencing high enough to address with where you live on Holland. You referenced the sound walls that had been up previously and you are the first person that has said anything positive about the sound walls. Most people don't like the looks of them and even though they aren't a city requirement they are something that Chesapeake has done to try to minimize the sound. I know you said that you have put up with a lot of noise and especially if you have had 12 wells drilled there that is a lot of noise. Page 6 of 8; 06/20/12 GBA minutes John Pitstick said that they have done a lot of pipeline construction in that area. That was the epicenter of the pipeline that went north. There was a significant amount of construction activity and took several months to get that complete. Randall Shiflet said that they are only asking for extended hours for their trucks and this gives the city some ability to ask for some of these other things as a condition of approval of extended hours. Carolyn Ayers asked if the citizens would have any more input at a later date if this is voted upon. Chairman Tom Duer said that the direction of the input needs to be to the city council since they are the ones who can change the ordinances. We follow what the guideline of the ordinances. We grant variances from those ordinances. If there needs to be tighter ordinances the city council are the ones that can have that updated and changed. I'm not sure why the concrete drive hasn't been completed yet. Do you know if there is some tie up with the permit for the driveway? John Pitstick said that it is in the flood plain and we were just verifying that there weren't any issues but I believe that it is good. Greg VanNeiuwenhuize said that we have been asking for quite some time that they get the road put in. Chairman Tom Duer said that the concrete drive will be part of tonights decision. Public Hearing closed 7:09 APPROVED Randall Shiflet, seconded by Kathy Luppy, motioned to approve GB 2012 -03 with the conditions that the approval of 24 hour water hauling at BISD pad site for up to 1 year beginning June 20, 2012 with the stipulation that prior to any after - hours water hauling, a concrete drive to the pad site be constructed and landscaping on the east side of the pad be established before any after- hours water hauling is allowed to begin and the Gas Inspector has the authority to revoke approval of after -hours water hauling at any time there are unresolved nuisances at the BISD pad site. . The motion carried (3 -2) Garry Cope and Marty Kusmierski opposed. Page 7 of 8; 06/20/12 GBA minutes 4. Adjournment There being no further business, the meeting was adjourned at 7:27 p.m. Chairman Secretary 7 0 , 4 „ y „.-- r # � Tom Duer Kat y Lup •'' Page 8 of 8; 06/20/12 GBA minutes