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HomeMy WebLinkAboutGBA 2013-06-13 Minutes MINUTES OF THE MEETING OF THE GAS BOARD OF APPEALS OF THE CITY OF NORTH RICHLAND HILLS, TEXAS June 13, 2013 1. CALL TO ORDER The meeting was called to order by Chairman Tom Duer at 7:00 p.m. 2. ROLL CALL PRESENT Chairman Tom Duer Garry Cope Kathy Luppy Randal Shiflet ABSENT Marty Kusmierski CITY STAFF Director of Planning & Dev. John Pitstick Asst. Dir of Public Works Greg Van Neiuwenhuize Management Asst. Dev. Serv. Jason Moore Fire Chief Stan Tinney Fire Prevention Lt. David Simmons Customer Service Assistant Misty Mata Recording Secretary Teresa Koontz 3. Approval of June 14, 2012 Gas Board of Appeals Meeting Minutes. APPROVED Randal Shiflet, seconded by Kathy Luppy, motioned to approve the minutes from June 14, 2012. The motion carried unanimously (4-0). 4. Approval of June 20, 2012 Gas Board of Appeals Meeting Minutes. APPROVED Kathy Luppy, seconded by Randal Shiflet, motioned to approve the minutes from June 20, 2012. The motion carried unanimously (4-0). Page 1 of 10;06/13/13 GBA minutes a 5. GB 2013 — 01 Public Hearing and Consideration of a request from Chesapeake Energy Corporation for an appeal to the Gas Board to allow a permanent above-ground lift compressor at the Graham gas well site at 7000 Hightower Dr. 6. GB 2013- 02 Public Hearing and Consideration of a request from Chesapeake Energy Corporation for an appeal to the Gas Board to allow a permanent above-ground lift compressor at the Morrow Stevens gas well site at 9203 Kirk Ln. 7. GB 2013-03 Public Hearing and Consideration of a request from Chesapeake Energy Corporation for an appeal to the Gas Board to allow a permanent above- ground lift compressor at the Birdville ISD gas well site at 6251 Richland Plaza Dr. 8. GB 2013-04 Public Hearing and Consideration of a request from Chesapeake Energy Corporation for an appeal to the Gas Board to allow a permanent above-ground lift compressor at the Engler gas well site at 7300 Mid Cities Blvd. John Pitstick came forward giving a brief overview of the four lift compressors that Chesapeake is requesting at the Graham, Morrow Stevens, Birdville ISD and Engler pad sites. Any new equipment, including compressors, requires Gas Board approval. This is new equipment that was not mentioned in previous plans for drilling. Lift compression in common in the Barnett Shale and many other cities have lift compressors at their well sites. We do not see any major safety issues with lift compression because of their adequate set-backs from surrounding properties; however, there are some sensitivities and aesthetic concerns . from surrounding neighborhoods with primary issues being noise abatement and potential screening. Several surrounding cities were surveyed and we found temporary use of lift compressors anywhere from 90 days to 6 months in most of the cities with 200-300 foot set-backs from surrounding structures was required. There will be approximately 350 feet from most of the surrounding residential structures in our city, however, at the Graham site, it will be about 220 feet from the compressor site. Chesapeake is proposing a low profile compressor that will be 8 feet high. They are requesting to install a 10 foot high metal sound enclosure and in some cases because the wall or enclosure would stick up above the 8 feet masonry wall. Chesapeake is proposing to Page 2 of 10;06/13/13 GBA minutes put up a 10 foot masonry wall inside the existing wall at Graham and Birdville sites to screen it from the adjacent streets. Regarding noise abatement, Chesapeake is requesting 65 decibels within 300 feet of the compressors. Staff recommends that whatever compressors are installed not to be visible from surrounding properties or over the existing masonry walls. The current drilling and re-drilling regulations for ambient noise allow 78 decibels. During fracturing approximately 4-5 days in most cases and 85 decibels is allowed. During production the city currently allows 65 decibels. The city wide residential noise restrictions allow up to 75 decibels during the daytime from 7:00 a.m. to 10:00 p.m., but at night from 10:00 p.m. to 7:00 a.m. no greater than 60 decibels are allowed. Chesapeake is requesting 24 hour lift compression with 65 decibels within 300 feet of the equipment. Staff recommends that the sound abatement enclosures would maintain no more of an increase than 1 decibel of ambient noise outside the surrounding no build areas. The Graham site has 40 current residential lots within 600 feet of the proposed compression area, however there is a future potential residential and there is no build zone outside and there could be future structures within the 600 feet. The Morrow Stevens site has 14 current residential lots with a potential for future building. The Birdville site is a bit more isolated with 6 current residential lots with a no build zone of 150 feet outside the boundary of the pad site. The Engler site has 4 current residential lots within 600 feet and an established no build zone. I.n summary, Staff sees no potential safety issues as long as the affected properties or structures are at least 150 feet from the proposed compressors. The primary concerns include potential visibility and noise. Chairman Duer opened the Public Hearing and called the applicant forward and was sworn in. Leah King, Chesapeake Energy, 100 Energy Way, Fort Worth, TX came forward and gave an overview of gas well compressors stating they are used on pad sites at the well head to enable production. They help to move water outside of the well bore and get the gas up through the well and fits inside of an existing pad site taking about 10 x 20 foot print no larger than a refuge truck. The gathering line and transmission compressors are both there to pressurize gas and move it through pipelines. Those are typically the size of a small house. We are requesting the smaller size that goes in an existing site. Several illustrations were shown of compressors and how gas gets from the well site to our homes and businesses. Ms. King continued saying Chesapeake operates about 500 gas lift compressors all of which are about 12 feet high and provides artificial stimulation to,the gas well. We are requesting the Gas Board of Appeals consider some options for each of the sites in discussion tonight. We are requesting that review and approval of the updated site plans which identifies the location of the temporary and permanent gas lift compression units, to approve fit for purpose sound walls specifically designed to mitigate sound from these units, allowance for visibility above existing fencing, whether with enclosure or the Page 3 of 10;06/13113 GBA minutes masonry wall, and provide guidance on sound allowances at a defined and reasonable distance. On the Graham pad, 8 of the 16 wells on this site require gas lift. We currently have two lift units on that pad. Over the years we have had gas lift on and off of that pad site. We recently installed the compressors there in September 2012. They have been on the site and wells have been struggling for quite some time, so it looks like they need to be permanent. As a point of reference, there have been royalties paid from these 16 wells to about 2800 royalty owners just shy of$3,000,000. We are looking at 8 foot high gas lift units. All of the wells on the Morrow wells require a gas lift to get kick started. Initially we will take 2 gas lift compressors to the site and once the wells get started, we are able to remove one of them and operate all the wells off of just one. There are about 1700 royalty owners benefitting off the Morrow wells with about $2,000,000 paid to them. These units were installed March 2013. Birdville ISD pad site has multiple wells requiring gas lifts very similar to Morrow where we are able to get them kicked off with 2 and keep 1 once going. These were installed January 2013. There are about 1900 royalty owners benefitting from $3,500,000 from the royalties. The Engler pad site requires constant gas lift with the most recent installed in January 2013. Approximately 2800 royalty owners benefit from this pad and over $1,000,000 has been paid to them. We have attended multiple meetings with city staff regarding the lift stations, sound and aesthetics; we have updated the site plans showing exactly where the unit will be. We have been working with the sound engineering firm to get the walls designed and to help position the lift compressors on the site for sound control. We are working with vendor to source low profile units because most of the cities we work with do not require low profile units, so it will take us a little bit of time to change out the equipment. An open house was hosted to educate neighbors about the purpose of gas lift units. Without a gas lift compressor, wells begin to under -perform, they fill up with water and eventually either stop producing gas all together or produce at such a rate they become uneconomic. If that begins to happen, we run an analysis and may have to shut the well down. At that point, there will be no royalty payments made to any of our lessors. Ms. King continued , saying tonight we are asking that the Gas Board of Appeals approve gas lift units on the Graham, Morrow, BISD and Engler pad sites and we understand that would be exchanging from an 12 foot to an 8 foot low profile enclosing it inside the sound walls designed for this equipment specifically with some type of screening. Chairman Duer asked if eventually the low profile units have a masonry wall around them? „ Leah King said yes, there would be. Page 4 of 10;06/13/13 GBA minutes s Kathy Luppy asked if anything could be done to lower the decibel level besides the metal enclosure of the walls. Leah King said yes, we have been working on that the past couple of weeks with the test case the Morrow pad. First, we put it inside of wall with mufflers to mitigate the noise. We have also ordered additional equipment and it did not show up yet. Our plan was to be able to take people on tours before this evening's hearing, but the equipment did not show up in time. We expect when we add the cooler/silencer to the muffler and sound wall, we should be able to get it much quieter. We hope to have the time to install all our equipment, do the sound survey before and after so then we are working from a base line to compare it to. Chairman Duer asked what the cost differences between the 12 foot lift compressor and the low profile? Leah King said she is not sure, the left compressors are extremely expensive but the alternative is not meeting the obligations of the mineral owners we have signed leases with. Chairman Duer called those up wishing to speak. Melanie Cartwright, 6904 Finch Drive, NRH came forward with concerns for her property because of constant noise, decreased property values, wants immediate termination of compressor until Chesapeake is in compliance with the city ordinance. She asked all West Hightower Place residents in attendance in support of her concerns to stand. Approximately 20 people stood in the audience. Chairman Duer called Don Hicks and Vickie Wakeland but they did not wish to speak as their points were made by previous speaker. John Webb, 6936 Finch Drive, NRH came forward stating the previous speaker made the points he wanted to say, he strongly disagrees with the proposal. There is a major concern with constant noise levels and decibel levels exceeding the ordinance. He said the work hours of the wells running are not in compliance with the ordinance. Quality of life has been compromised due to the constant reverberating noise. Bill Graham, 7000 Hightower Drive, NRH, came forward in support of gas drilling and would like to see something worked out with Chesapeake and the residents. Ben Johnson, 1712 Oak Knoll, Colleyville, came forward stating he was the developer, property owner of about 15 lots, president of the West Hightower Place Homeowners Association and is representing homeowners outside of the 600 foot area. He is against the proposal because of extensive noise, a negative situation that is in violat6on of the city ordinances. Randal Shiflet asked how many houses in Ben Johnson's subdivision are within 300 feet of the drill site in regards to daytime and nighttime decibel readings. Page 5 of 10;06/13/13 GBA minutes Ben Johnson said there are 40 lots inside the 600 but there are 90 lots within the whole subdivision. Since Graham site was the very first site in the city and there are not any no build zones and the set -back requirements are less than any other site, so this site should have special consideration. This was a learning curve for the city and for all of us but should have special consideration. Don Hicks, 6977 Warbler, NRH, came forward stating he can hear the compressor running at different times and is against the drilling due to noise. Chairman Duer asked if anyone else wished to speak, seeing none he closed the Public Hearing and called the applicant forward. Leah King with Chesapeake came forward and wanted to correct a few statements. She said violating the city ordinance and blatantly doing something outside of the guidelines is not true. The ordinance doesn't specifically say anything about lift compressors. We have been using these lift compressors on and off for several years. Secondly, the Morrow site was the test case regarding the sound engineered wall. Because we just finished fracking the last 5 wells at the Graham pad site, the 32 foot sound walls came down on Friday of last week and we have not installed this fit for purpose on those compressors as of yet. Possibly everyone is hearing the compressors because they are not specifically designed for these units. We have ordered the building for the Graham site and other silencing equipment to get this on all the sites throughout the city. Chairman Duer asked when would the 8 foot low profiles be installed? Leah King said the first step is to have the last silencer come in. If we can get the noise level to where it is acceptable to the city on Morrow, then it will probably take about 5 months to get 8 foot profiles for all of the sites. Chairman Duer asked for a date if possible, when the very first low profile? He said before anything is approved, there needs to be a date and wants to hear what it sounds like at its highest production and loudest and go around 300 feet during daylight and night time hours. When would be the earliest possible date for a test case with all the equipment and sound equipment so we can go out. Chairman Duer gave comments regarding how things have progressed since 2006 and gave a recommendation to have a "field trip" to see what is actually going on at the sites before approving anything. Garry Cope stated he wants to see and hear what is going on at the sites before making a decision. He said there are compressors running that have not been brought before this board and will not make any decisions at this time. Chairman Duer recommended postponing GB 2013-01, GB 2013-02, GB 2013-03 and GB 2013-04 until the field trip can be held. He asked Ms. King when the earliest date would be when this could be installed. Page 6 of 10;06/13/13 GBA,ninutes Leah King said the 12 foot compressor is installed with the exception of waiting on one additional piece of equipment to come and should be in next week. We would need a couple of days to get it installed and tested so probably 10 days would be needed. Our engineers do not think there will be a noticeable change in the sound from the 12 foot to 8 foot. We can order the 8 foot and it would take additional 6 weeks. Kathy Luppy said she thinks the only way to make a better education decision about this to benefit everyone involved is to wait for the 8 foot and go do the field trip. Garry Cope suggested sooner than later to do the field trip because the compressors will still be running and wants to shut the compressors down if it is too loud. Leah King said perhaps both can be done, one to order the 8 foot sound building for the Graham site which is not there currently. We can order that building for Morrow site where the muffler and other equipment is already at so there is relief from what they are hearing today with the better installed sound walls specifically designed for this equipment as well as the other equipment. Chairman Duer asked is it just to improve that site or all 4 of them. Leah King said today at Graham to take the small sound walls away, put around a building which is at the Morrow site and it will give them an improvement pretty much immediately. The Morrow site already has the building and would have to order the new building and equipment. The suggestion is to no make them wait put put the building on the Graham site right now. There was a general discussion about time lines about when equipment will be coming and what is at the sites. Randal Shiflet said the Board of Appeals really depends on the City Staff working with Chesapeake and the property owners to strike a balance for all parties involved. We are very fortunate in North Richland Hills to have our own gas well inspectors which are NRH Firefighter employees. He motioned to amend Chairman Duers' motion to postpone for 180 day period for Chesapeake, the City of NRH, the residents to come to a conclusion for everyone to benefit and not have to come back shortly afterwards to make more changes. Also, he motioned to make the metal building at the Morrow site masonry. Randal Shiflet asked if the motion was accepted for 180 days. Chairman Duer said his personal prefiererce is that is too long. This is why he wants to know exactly how long to get the low profile installed and noise reduction. Not necessarily a masonry finish yet, but the final outcome when approved will need to look exactly like the outside wall. We know that means that the citizens have to put up with stuff but if we are going to come to a final conclusion, we would rather come to an agreement first one time. Page 7 of 10;06/13/13 GBA minutes John Pitstick said that we didn't need to ignore the other sites but since more people are here from Hightower we need to concentrate on Graham site for now. There was a discussion to regarding making the Graham site the test site. Leah King said that is fine, but that will take a bit longer since we have been working on Morrow the entire time and we would have to get additional equipment. Chairman Duer asked if there was any perceived problem getting this done in 2 months? Leah King said that should be adequate. Chairman Duer recommend postponing to 60 days with the 8 foot lift compressor and sound proof, the Gas Board of Appeals visiting the site and scheduling the meeting as soon as possible to make a decision yes or no. A citizen asked if there was any time restriction during day time hours only when these compressors could run until approved. Leah King said they have to run 24/7, but we are not hear 75 decibels. Chairman Duer asked if we can verify that have staff to go to the site over next few days? He asked for a decibel level where Chesapeake thinks they are at. Leah King said she has not measured on Graham but on Morrow and it is below 50 decibels. There was general discussion from audience and Board and Chesapeake about what mufflers and silencers were installed. Chairman Duer asked what can be done between now and 8 weeks to the Graham site that will lessen the sound. Leah King said the building we have ordered that has not arrived yet , possibly a few weeks away. There was a general discussion about when the next meeting will be held. Chief Tinney came forward and said we can get the sound readings in about 24 hours after the work is completed and would like to-read them at different hours of the day and night to address all the complaints. Chairman Duer asked John Pitstick what type of permits would be needed since there was not any record of this being built. John Pitstick said depending on what gets approved, Chesapeake has made application for an amended permit for each one of the sites. Staff would then approve after the vote for an amended permit ro allow or not to allow. We are looking for direction from Page 8 of 10;06/13/13 GBA minutes the Gas Board and we could approve a temporary permit for whatever you wanted. Ultimately, the final gas well permit or site permit would have to be amended based on what decision was made. Randal Shiflet asked if these compressors were illegal. John Pitstick said we have never seen on any of our plans any compressors. They are required when filing applications for gas well drilling to show us all appurtenances s and we have never seen a compressor on any of the plans. On a temporary basis, there are a lot of things that happen when they are drilling and fracturing , the sound blanket are not even required by the city but they did that on their own decision. Randal Shiflet said he doesn't see this as illegal, just as an area that is not covered. He offered an amended motion to 90 days. Chairman Duer motioned to postpone the decision with a continuance for 60 days to the August 8, 2013 meeting and at that time we will approve or deny this variance request for compressors. In the meantime we have requested Chesapeake Energy to install an 8 foot lift compressor with accompanying sound proofing for a sound test and field trip to be performed prior to the August 8, 2013 meeting. There was a discussion between Chairman Duer and Garry Cope about how to amend the motion to include no production while this is being handled. It was stated that the applicant will be modifying the Graham site within the next two weeks to reduce noise production. Chairman Duer's motion did not pass for lack of a second. Randal Shiflet offered the same motion, but for 90 day period. Kathy Luppy asked if within that motion would production still continue at the site? Chairman Duer stated they will be making the said adjustments within the next two weeks. Randal Shiflet stated that the test should be publicly posted. Kathy Luppy seconded the motion. Page 9 of 10;06/13113 GBA minutes POSTPONED ACTION Randal Shiflet motioned to postpone GB 2013-01, GB 2013-02, GB 2013-03, GB 2013-04 with a continuance to the September 12, 2013 meeting and at that time we will decide the variance request for compressors. In the meantime, we have requested Chesapeake Energy to install an 8 foot lift compressor with accompanying sound proofing for a sound test and field trip to be performed prior to the September 12, 2013 board meeting. The motion was seconded by Kathy Luppy. The motion was approved by a majority vote for all cases presented 3-1 (Garry Cope voted against the motion). 9. Adjournment There being no further business, the meeting was adjourned at 8:30 p.m. Chairman Secretary Tom Duer Katfiy Lup Page 10 of 10;06/13/13 GBA minutes