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HomeMy WebLinkAbout02-09-09 TC Wkshp Packet TOWN OF WESTLAKE, TEXAS Mission Statement On behalf of the citizens, the mission of the Town of Westlake is to be a one-of-a-kind community that blends our rural atmosphere with our rich culture and urban location. Westlake, Texas – A Premier Knowledge Based Community TOWN COUNCIL WORKSHOP A G E N D A FEBRUARY 9, 2009 WESTLAKE TOWN HALL 3 VILLAGE CIRCLE MUNICIPAL COURT ROOM, SUITE 207 4:15 p.m. 1. CALL TO ORDER. 2. EXECUTIVE SESSION The Council will conduct a closed session under Texas Government Code for the following: a. Pursuant to Section 551.072: deliberation regarding the purchase, exchange, lease or value of real property: Easements for F. M. 1938 Project. b. Pursuant to Section 551.071(2): consultation with town attorney on a matter in which the duty of the town attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this Chapter: Gas well drill sites and property rights.   3. RECONVENE MEETING Town of Westlake Town Council Page 2 of 2 Workshop Agenda February 9, 2009 4. DISCUSSION AND CONSIDERATION OF A DRAFT PROPOSED OIL AND GAS DRILLING TECHNICAL STANDARDS ORDINANCE, PROPOSED ZONING ORDINANCE AMENDMENTS RELATED TO OIL AND GAS DRILLING, AND PROPOSED PERMITS/FEES FOR OIL AND GAS DRILLING IN WESTLAKE. 5. FUTURE AGENDA ITEMS: Any Council member may request at a workshop and / or Council meeting, under “Future Agenda Item Requests”, an agenda item for a future Council meeting. The Council member making the request will contact the Town Manager with the requested item and the Town Manager will list it on the agenda. At the meeting, the requesting Council member will explain the item, the need for Council discussion of the item, the item’s relationship to the Council’s strategic priorities, and the amount of estimated staff time necessary to prepare for Council discussion. If the requesting Council member receives a second, the Town Manager will place the item on the Council agenda calendar allowing for adequate time for staff preparation on the agenda item. - None 6. ADJOURNMENT. ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.87 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, by Friday, February 6, 2009, by 4:15 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. _____________________________________ Kim Sutter, TRMC, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you.    2. EXECUTIVE SESSION The Council will conduct a closed session under Texas Government Code for the following: a. Pursuant to Section 551.072: deliberation regarding the purchase, exchange, lease or value of real property: Easements for F. M. 1938 Project. b. Pursuant to Section 551.071(2): consultation with town attorney on a matter in which the duty of the town attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this Chapter: Gas well drill sites and property rights.   Town of  Westlake  Item # 2 – Executive  Session  Back up material has not been provided for this item.      Town of  Westlake  Item # 3 – Reconvene  Meeting  Back up material has not been provided for this item. 1 Town of Westlake Memo To: Honorable Mayor and Members of the Town Council From: Tom Brymer, Town Manager Subject: Workshop Meeting of February 9, 2009 Date: February 1, 2009 ITEM Discussion and consideration of a draft proposed oil and gas drilling technical standards ordinance, proposed zoning ordinance amendments related to oil and gas drilling, and proposed permits/fees for oil and gas drilling in Westlake. VISION POINT AND KEY RESULT AREAS This item supports the following Vision Point and Key Result Areas: ; Inviting Residential & Corporate neighborhoods o On-going comprehensive planning o Sensitivity to neighborhood integrity o Outstanding community appearance o Highest quality development and aesthetic standards o Open space preservation ; We are Leaders o Environmental stewardship initiatives o High quality services delivery coupled with financial stewardship o Infrastructure maintenance and planning ; Hospitality Finds its Home in Westlake o Citizen engagement and communication BACKGROUND The Council and staff have been working on proposed revisions to oil and gas drilling regulations for over a year. In spring 2008, after reviewing area communities’ oil and gas drilling ordinances, the Council gave staff direction to take additional time to perform further research on these regulations including discussions with area city staffs and representatives of the oil and gas industry. Having carried out this Council direction, the staff, in 2 Council workshops in October 2008, received Council direction regarding a framework for proposed oil and gas drilling regulations. This proposed regulatory framework had 2 components. First, was to regulate the zoning/land use aspect of oil and gas drilling by allowing oil and gas drilling in any zoning district, but only with a Council approved Specific Use Permit (SUP). An SUP requires a public hearing before both the Planning & Zoning Commission and the Town Council before it can be approved or denied. Second, was to place all the technical, aesthetic, noise, light, road, and setback regulations for oil and gas drilling in a proposed technical standards ordinance. This proposed technical standards ordinance establishes a process that, before a well could be drilled, the operator must first have an approved Specific Use Permit. If the operator receives an approved SUP, then the operator can apply for a Gas Well Pad Site Permit. If the Gas Well Pad Site Permit is approved, then 2 the operator can apply for a Gas Well Permit and if it is issued, then the operator can begin to perform drilling. A public information meeting was held in November 2008 to receive citizen feedback about this proposed regulatory framework. Extensive use of the Town’s web site as well as email to those on the Town’s email “blast” list serve has been used to keep residents informed about the work to date on this topic. The Planning & Zoning Commission held a public hearing in December on the zoning aspect of this proposed regulatory framework and tabled it so that both regular zoning districts and planned development districts could be considered. The Council received at its January 12, 2009 workshop a staff presentation concerning the draft technical standards ordinance. The Council also heard a presentation by State Geologist Scott Tinker at this same workshop regarding various aspects of gas well drilling in the Barnett Shale formation. At their January 26, 2009 workshop the Council continued their deliberations and reached consensus to use the staff recommendation related to the zoning aspect of this regulatory framework. That is, to allow oil and gas drilling in any zoning district, but only with a Council approved Specific Use Permit (SUP). This will also include a zoning ordinance amendment to provide for the option of owners of large tracts to prepare a gas well master concept plan which could allow them to submit all their multiple well sites for an SUP at one time in exchange for master planning all of their gas well sites at one time. Based on this Council consensus, the staff will move forward processing a major zoning change for all zoning districts requiring notification of all Westlake property owners. The Council indicated that overall they were satisfied with the draft Technical Standards Ordinance with the exception of the setback issue. The Council agreed to take discussion of the setback issue at its February 9th workshop. FUNDING: N/A at this time. RECOMMENDATION: Following presentations made at the workshop, staff recommends that the Council: 1. Review the draft proposed technical standards ordinance and give staff feedback about its adequacy in meeting the Council’s policy goals for regulating oil and gas drilling in Westlake. 2. Re-visit and review the proposed zoning approaches for regulating the land use aspect of oil and gas drilling in Westlake and provide staff direction regarding what approach the Council wishes to use regarding zoning (Note: Council gave direction to staff on this at the Jan. 12th workshop as mentioned above in the Background section of this agenda memo). 3. Review the proposed permits and fees for administering the proposed technical standards ordinance ATTACHMENTS: 1. Proposed oil and gas technical standards ordinance. 2. Power point presentation from 1-12-09 Council workshop re: proposed technical standard ordinance and zoning regulations. 3. Power point presentation from 10-6-08 Council workshop re: staff recommended oil and gas drilling staff regulatory approach for oil and gas drilling in Westlake. Draft Jan. 8, 2009 1 Contents  CHAPTER 56 GAS AND OIL WELLS ......................................................................................... 4  ARTICLE I. IN GENERAL ............................................................................................................ 4  Sec. 56-1 – 56-30. Reserved. ......................................................................................................... 4  ARTICLE II. DRILLING & PRODUCTION ................................................................................ 4  Sec. 56-31 Purpose and Intent. ....................................................................................................... 4  Sec. 56-32 Definitions. ................................................................................................................... 5  Sec. 56-33. Gas Well Pad Site Permit Required. .......................................................................... 16  Sec. 56-34. Gas Well Pad Site Classifications. ............................................................................. 17  Sec. 56-35. Gas Well Pad Site Permit Application and Requirements. ........................................ 17  Sec. 56-36. Site Plan requirements. ............................................................................................. 20  Sec. 56-37. Gas Well Pad Site Standards. .................................................................................... 22  Sec. 56-38. Gas Well Permit Required. ....................................................................................... 26  Sec. 56-39. Gas WellPermit Application, Requirements and Filing Fees. .................................. 28  Sec. 56-40. Standards for Gas WellDrilling and Production. ...................................................... 29  Sec. 56-41. Insurance and Indemnification. ................................................................................. 41  Sec. 56-42. Bond, Irrevocable Letter of Credit. ........................................................................... 44  Sec. 56-43. Gas Inspector............................................................................................................. 47  Sec. 56-44. Operator’s Agent. ..................................................................................................... 48  Sec. 56-45. Periodic Reports. ...................................................................................................... 48  Sec. 56-46. Transfer of Gas Well Permits. .................................................................................. 49  Sec. 56-47. Cleanup and Maintenance. ....................................................................................... 50  Sec. 56-48. Plugged and Abandoned Wells. ................................................................................ 51  Sec. 56-49. Technical Advisor. ..................................................................................................... 52  Sec. 56-50. Remedies of the Town. ............................................................................................. 53  Sec. 56-51. Amended Well Permits. ............................................................................................ 54  Sec. 56-52. Re-working of Well; Notice. ..................................................................................... 54  Sec. 56-53. Commission Permits; TCEQ .................................................................................... 54  ARTICLE III. OIL AND GAS PIPELINE STANDARDS .......................................................... 55  Sec. 56-54. Purpose. ..................................................................................................................... 55  Sec. 56-55. Definitions. .............................................................................................................. 55  Sec. 56-56. General Requirements and Minimum Design Standards. ........................................ 55  Sec. 56-57. New Pipeline Permit/License Application. ............................................................... 59  Draft Jan. 8, 2009 2 Sec. 56-58. Permit and/or License Approval. .............................................................................. 62  Sec. 56-59. Public Education. ..................................................................................................... 63  Sec. 56-60. Pipeline Information Reporting Requirements. ........................................................ 64  Sec. 56-61. Pipeline Markers. ................................................................................................. 6667  Sec. 56-62. One Call System ...................................................................................................... 67  Sec. 56-63. Inactive and Idled Pipelines. ..................................................................................... 68  Sec. 56-64. Emergency Response Plans and Emergency Incident Reporting. ....................... 6869  Sec. 56-65. Pipeline Repairs and Maintenance. .......................................................................... 70  Sec. 56-66. No Grant of Town Easement, No Assumption of Responsibility by Town. ............. 71  Sec 56-67. Protection and Painting of Structures. ...................................................................... 71  Sec. 56-68. Waiver/Hold Harmless Agreement Required for Issuance of Building Permit. ...... 71  Sec. 56-69. Street and Right-of-way Use. ................................................................................... 72  Sec. 56-70. Violations. ................................................................................................................ 72  Sec. 56-71. Bond and Insurance Required. .................................................................................. 73  ( ..................................................................................................................................................... 73  Sec. 56-72. Termination of Permit and/or license. ....................................................................... 75  Draft Jan. 8, 2009 3 TOWN OF WESTLAKE ORDINANCE NO. _____ AN ORDINANCE OF THE TOWN OF WESTLAKE, TEXAS (“TOWN”), AMENDING CHAPTER 56 GAS WELLS, ARTICLE II DRILLING AND PRODUCTION OF THE WESTLAKE CODE OF ORDINANCES, REGULATING THE DRILLING AND PRODUCTION OF GAS WELLS WITHIN THE TOWN, TO PROVIDE REVISED REGULATIONS REGARDING DISTANCE, NOISE AND TECHNICAL PROVISIONS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF CONFLICTING PROVISIONS; PROVIDING A CUMULATIVE CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Town of Westlake, Texas, is a General Law Municipality located in Tarrant and Denton Counties, Texas, created in accordance with the provisions of the Texas Local Government Code and operating pursuant to the enabling legislation of the State of Texas; and WHEREAS, on May 24, 2004, the Town Council of the Town of Westlake adopted Ordinance Number 458 enacting permit procedures, fees and regulations regarding the drilling and production of oil or Gas Wells with the Town limits of Westlake; and WHEREAS, the Town Council finds that the additional regulations for the development of gas and other hydrocarbon substances within and under the Town is necessary in order to protect the surface property rights, to protect the owners of mineral rights and to provide for the orderly exploration, development, and production of gas and other hydrocarbons; and WHEREAS, the Town Council deems it advisable to amend the current regulations for the drilling, production and re- Draft Jan. 8, 2009 4 drilling of gas and other hydrocarbon wells so that these activities may be conducted in a manner that protects the public health, safety and welfare of the citizens of Westlake, conforms with established codes and regulations while minimizing the potential impact of surface property and mineral rights owners; and WHEREAS, the Town Council finds and declares that the regulations contained herein are in the best interest of the public health, safety and general welfare. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION1: THAT, the above findings are hereby found to be true and correct and are incorporated herein in their entirety. SECTION2: THAT, of Chapter 56, of the Town of Westlake Code of Ordinances is hereby amended to read as follows, and that any mention of a State or Federal governmental agency means that agency or its successor: CHAPTER 56 GAS AND OIL WELLS   ARTICLE I. IN GENERAL  Sec. 56­1 – 56­30.  Reserved.  ARTICLE II. DRILLING & PRODUCTION    DIVISION 1. Generally Sec. 56­31 Purpose and Intent.   Draft Jan. 8, 2009 5 The exploration, development, and production of gas, oil and other hyrdocarbons in the Town of Westlake is an activity that necessitates reasonable regulation to ensure that all property owners, mineral and otherwise, have the right to peaceably enjoy their property and its benefits and revenues. It is hereby declared to be the purpose of this Ordinance to establish reasonable and uniform limitations, safeguards and regulations for present and future operations related to the exploring, drilling, developing, producing, transporting and storing of gas and other substances produced in association with gas within the Town to protect the health, safety and general welfare of the public, minimize the potential impact to property and mineral rights owners, and protect the quality of the environment and encourage the orderly production of available mineral resources. Sec. 56­32 Definitions.   All technical industry words or phrases related to the drilling and production of gas, oil and other hydrocarbon wells not specifically defined in this Ordinance shall have the meanings customarily attributable thereto by prudent gas industry Operators. The following words, terms and phrases, when used in this Ordinance, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Abandoned: Abandonment: “Abandonment” as defined by the Railroad Commission and includes the plugging of the well and restoration of the drill site as required by this Article. Adjacent property owner consent form: A form provided by the Town to be used for documenting that property owners adjacent to well Drilling Operations have consented to allowing a reduction in the typically required setbacks that impact their property. Administrator: The Town Manager or his or her designated representative. All-weather Surface: A surface that consists of a minimum of 6 inches of compacted Class II base rock for grades up to and including 5 percent, and oil and screened for grades up to and including 15 percent, and asphalt or concrete pavement with a non-skid finish for grades exceeding 15 percent to a maximum of 20 percent on a fire apparatus access road. Draft Jan. 8, 2009 6 Ambient Noise Level: The all encompassing noise level associated with a given environment, being a composite of sounds from all sources at the location, constituting the normal or existing level of environmental noise at a given location. Applicant: A person to whom a permit or certificate for the drilling, operation and production of a well, or the installation or operation of a pipeline, is issued under this Article, including, but not limited to, his or her heirs, legal representatives, successors or assigns. Base Flood Elevation: Shall be as defined by other Town ordinances. Building: Any structure used or intended for supporting or sheltering any use or occupancy, which includes, but is not limited to, all related site work and placement of construction materials on the site. Blowout Preventer: A mechanical, hydraulic, pneumatic, or other device or combination of such devices secured to the top of the well casing, including valves, fittings and control mechanisms connected therewith, which can be closed around the drill pipe or other tubular goods which completely close the top of the casing and are designed to prevent blow outs. Building: Any structure used or intended for supporting or sheltering any use or occupancy. The term “building” shall be construed as if followed by the words “or portions thereof.” Cathodic Protection: An electrochemical corrosion control technique accomplished by applying a direct current to the structure that causes the structure potential to change from the corrosion potential to a protective potential in the immunity region. The required cathodic protection current is supplied by sacrificial anode materials or by an impressed current system. Closed Loop Mud System: An enclosed suite of solids control equipment used for mud circulation and intended to minimize drilling fluid dilution to provide for handling of the drilling wastes so that reserve pits are not used. Completion of drilling, re-drilling and re-working: The date the work is completed for drilling, re-drilling, or re-working and the well status is one in which the well is capable of production. Commission: The Texas Railroad Commission and all state rules. : Compressor – Gas Lift: See Gas Lift Compressor. Draft Jan. 8, 2009 7 Compressor Station: Also referred to as a Pump Station or Compressor Facility, a Compressor Station is the engine that powers an Interstate natural gas pipeline. It contains equipment that compresses and propels natural gas through the pipelines. Construction: Causing of carrying out any building, bulk head, filling, excavation, or substantial improvements to land or to the size of any structure. Council: The Town Council of the Town of Westlake. Daytime: The period from 7:00 a.m. to 7:00 p.m. Dedication: Includes, but is not limited to, a permanent easement or a fee simple acquisition of land for a specific purpose. Derrick: Any portable framework, tower, mast and/or structure that is required or used in connection with drilling or re-working a well for the production of oil and/or gas. Disposal Well: See Salt Water Disposal Well. Drilling: Any digging or boring of a new well to develop or produce gas or other hydrocarbons, or to inject gas, water, or any other fluid or substance into the earth. Drilling means and includes the re-entry of an abandoned well. Drilling Equipment: Derrick, draw works, power plant, rotary table, pumps, together with all parts of an apparatus to such structure, every piece of apparatus, machinery or equipment used in connection with drilling and operations. Drilling Operations: All activities related to the drilling of a well beginning with the preparation of the site and and ending with the completion of the well. Drilling Operations and production do not occur concurrently on the same well but may occur concurrently within the same Gas WellGas WellGas WellGas Well Pad Site. Drill Site: Area used during the drilling, re-drilling or re-working of a well or wells prior to the reduction and conversion of the area to an operation site. Drill Zone: The area within an approved Gas Well Pad Site designated Draft Jan. 8, 2009 8 for drilling well bores,as shown on the Site Plan as part of the Specific Use Permit approval process. Excavation: Any movement or alteration of the surface of the ground by machinery in conjunction with or anticipation of drilling activities or construction of a pipeline, including but not limited to scraping or grading a site. Exploration: Geologic or geophysical activities, including seismic surveys, related to the search for gas or other subsurface hydrocarbons. Federal: The United States Government and its various agencies. FEMA: The Federal Emergency Management Agency. Filling: Includes, but is not limited to, disposal of excavated materials. Fire Chief: The Fire Chief of the Town of Westlake, Texas, or the Town Manager or his designee. Fire Code: The Adopted Fire Code of the Town of Westlake, Texas, as amended. Fire Marshal: The Fire Marshal of the Town of Westlal or, the Twon Manager or his designee in the absence of a designated fire marshal, the Director of Public Safety of the Town of Westlake, Texas. Flaring: Shall be defined to mean burn off gas during the Flow Back Operations stage. The process includes a series of secured piping to facilitate the flow of gas and a combustion chamber to ignite the gas. Floodplain: Shall be as defined by other Town ordinances. Flowback Operations: Shall be defined as including Work Over Operations and other means necessary to expel water from the drilling hole in order to facilitate the production of gas. Frac, fracture or fracturing: The process of fracture stimulation of a rock formation, including, but not limited to, the process of pumping sand laden fluids down a well to stimulate a rock formation. Fresh Water Well: A well for the production of water. Gas: Any fluid, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or Draft Jan. 8, 2009 9 rarefied state at standard temperature and pressure conditions and/or the gaseous components or vapors occurring in or derived from petroleum or natural gas,and/or any material defined or referred to as “gas” in the rules, regulations or forms of the Railroad Commission. Gas Lift Compressor. Any on-site compressor used to 'lift gas' from the well to the well line collection system connecting to the on-site Tank or a Tank Batteryshall be designed to comply with the noise requirements of this Ordinance. Gas Inspector: The Town Manager or his designee. Gas Well: Any well drilled, to be drilled, or used for the intended or actual production of natural gas or other hydrocarbons. Gas Well Pad Site: the area defined on the Site Plan for a Specific Use Permit (SUP)used for all storage and operational activities associated with gas drilling and production. Gas Well Pad Site Permit: A Town permit authorizing the construction of a Gas Well Pad Site. Gas Well Permit: A permit authorizing the Drilling, Re-drilling, Re- entering, Fracturing, Re-working,Abandoning, or Re-Activating of a Well as approved by this ordinance. Gas Well Production Site: The area used for the production of gas, oil and other hydrocarbons. Reworking, re-fraccing, and other well maintenance activities may also be conducted within this area. Drilling shall only be permitted within the Drill Zone located within a Gas Well Pad Site. Green Well: A well which has the necessary equipment installed so as to allow operations and production without the necessity of Flaring or allowing gas to escape into the atmosphere. Habitable Structures: Structures meeting the Town of Westlake’s code requirements for human habitation or occupation, including, but not limited to, single or multifamily residences, hotels, condominium buildings, buildings for commercial purposes and enclosed spaces in which individuals congregate for education, worship, amusement or similar purposes, or in which occupants are engaged at labor, and which is equipped with means of egress, light, and ventilation facilities. Each building of a condominium regime is considered a separate Habitable Structure, but if a building is divided into apartments, then the entire building, not the individual Draft Jan. 8, 2009 10 apartments, is considered a single Habitable Structure. Additionally, a Habitable Structure includes porches, gazebos and other attached improvements. Hazardous Liquid: Defined by the Railroad Commission at 16 Texas Administrative Code, SECTION 7.80, Definitions, as amended, shall mean petroleum or any petroleum product, and any substance or material which is in a liquid state, when transported by pipeline facilities and which has been determined by the United States Secretary of Transportation to pose an unreasonable risk to life or property when transported by pipeline facilities. The term shall be enlarged to include liquefied natural gas and anhydrous ammonia should such materials at any time be introduced into any pipeline subject to this Article. It shall also include carbon dioxide, defined at 49 CFR 192.2 as a fluid consisting of more than ninety percent (90%) carbon dioxide molecules compressed to a supercritical state. Hazardous Materials and Site Safety Management Plan: The hazardous materials management plan and hazardous materials inventory statements required by the Town fire code as well as a site safety plan which shall comply with EPA and OSHA rules and regulations for a construction and hazardous materials work zone to include, but not limited to, a hazardous materials action plan with all monitoring equipment/maintenance plans listed. Health Care Facility: A location at which medicine is praticed regularly. Medical facilities range form small clinics and doctor’s offices to urgent care centers and large hospitals as examples. High Impact Gas Well Pad Site: A Gas Well Pad Site containing a Drill Zone that is closer than (600) six-hundred feet from a Protected Use. Idled Pipeline: A pipeline that has been inactive for at least two (2) years even though there may be no specific plans to reactivate the pipeline. Inactive pipeline: A pipeline that has temporarily been taken out of service for a period of at least six (6) months for hazardous materials or hazardous liquids and one (1) year for natural gas with the expectation that the pipeline may be reactivated within two (2) years even though there may be no specific plans to reactivate the pipeline. Inspector: The oil and gas inspector designated by the Town Manager. Draft Jan. 8, 2009 11 Line Marker. A marker identifying the location of a buried pipeline, as further defined in 49 CFR 192.707 License: A license issued by the Town of Westlake to permit certain uses for a prescribed amount of time at a prescribed location. Man Made Barriers: Barriers other than natural terrain used to aid in the protection of a Protected Use from some of the possible hazards associated with a Gas Well. Man made barriers shall only be allowed as approved during the Specific Use Permit approval process. New Pipelines: Pipelines constructed after the effective date of this Article but shall not include (a) the replacement or repair of any existing pipeline; (b) the realignment of a portion of an existing pipeline to a position that is not greater than fifty (50) feet from its original position; or (c) surface appurtenances added to existing pipelines. New Well: A new well bore or new hole established at the ground surface and shall not include the re-working of an existing well that has not been abandoned unless the re-working involves drilling to a deeper total depth. Nighttime: The period between 7:00 p.m. and7:00 a.m. OperationSite: The area used for development and production and all operational activities associated with gas after drilling activities are complete. Operations: Activities leading to and supporting the production of oil, gas and/or other hydrocarbons. Operator: For each well, the person listed on the Railroad Commission Form W-l or Form P-4 for a well, that is, or will be, actually in charge and in control of drilling, maintaining, operating, pumping or controlling any well including, without limitation, a unit Operator. If the Operator, as defined herein, for any well is not the lessee of any premises affected by the provisions of this Article, then such lessee shall also be deemed to be an Operator. In the event there is no gas and oil lease relating to any premises affected by this Article, the owner of the fee mineral estate in the premises shall be deemed the Operator. Padsite: See Gas Well Pad Site. Permittee: Any person authorized to act under a permit, license, or a Draft Jan. 8, 2009 12 certificate issued by the Town. Person: An individual, firm, corporation, association, partnership, consortium, joint venture, commercial entity, the United States government, a state, a municipality, commission, political subdivision or any international or interstate body or any other governmental entity. Pipeline: All parts of those physical facilities through which gas, hazardous liquids or chemicals move in transportation, including, but not limited to, pipe, valves and other appurtenance attached to pipe, whether or not laid in public or private easement or public or private right-of-way within the Town. Pipeline or Well Emergency: A pipeline or well incident in which any of the following has occurred or is occurring: (1) Fire or explosion not initiated by the Owner/Operator as part of its operations (in accordance with accepted safety practices). (2) Release of a gas, hazardous liquid or chemical that could adversely impact the environment or health of individuals, livestock and/or domestic animals, and wildlife, within the Town. (3) Death of any person or individual directly attributable to the operations of the pipeline or well. (4) Bodily harm to any person that results in loss of consciousness, the need to assist a person from the scene of the incident or the necessity of medical treatment in excess of first aid. (5) Damage to private or public property not owned by the pipeline or well Owner or Operator in excess of five thousand dollars ($5,000.00) in combined values, as determined by the Administrator. (6) The rerouting of traffic or the evacuation of buildings. Pipeline Permit: A permit applied for and issued or denied pursuant to this Article authorizing the movement of gas, oil, water or other products to or from the location of a well. Pipeline Review Committee: A committee appointed by the Town Manager, consisting of Town Staff, and others as deemed necessary, to seek resolution of any substantive, non-resolvable technical issues related to the issuance of a Pipeline Permit. Pipeline Owner or Operator: Any person owning, operating or responsible for operating an oil or gas pipeline for the purpose of transporting oil, gas, or other gasses, or liquids related to the production of oil, gas or other hydrocarbons. Planning and Zoning Commission: The Planning and Zoning Draft Jan. 8, 2009 13 Commission of the Town of Westlake, Texas. Practicable: In determining what is practicable, the Pipeline Review Committee shall consider the effectiveness, scientific feasibility and commercial availability of the technology or technique. Production: The collection and distribution process.. Property Owner: The owner of the surface property. Protected Use: A residence, religious institution, public building, Healthcare Facility building, Sschool or public park. This term shall not apply to accessory buildings, garages, hangars, or storage buildings. Public Building: All buildings used or designed to and intended to be used for the purpose of assembly of persons for such purposes as deliberation, entertainment, amusement, or health care. Public buildings include, but shall not be limited to, theaters, assembly halls, auditoriums, armories, mortuary chapels, dance halls, exhibition halls, museums, office buildings, government use facilities, gymnasiums, bowling lanes, libraries, skating rinks, courtrooms, restaurants, shopping malls, stores, and healthcare facilities. Public Park: Any land area dedicated to and/or maintained by the Town for traditional park-like recreational purposes, but shall not include trails, sidewalks, privately-owned parks / amusement parks or privately-owned or privately-managed golf courses. Re-Drill: Re-completion of an existing well by deepening or sidetrack operations extending more than one hundred fifty (150) feet from the existing well bore. Re-drilling must be conducted within an approved Drill Zone. Re-drilling shall also mean deepening, re-entering, re-fraccing, activating or converting. Religious Institution: Any building in which persons regularly assemble for religious worship and activities intended primarily for purposes connected with such worship or for propagating a particular form of religious belief. Residence: A house, duplex, apartment, townhouse, condominium, mobile home or other building designed or used for dwelling purposes. Re-working or Re-working Operations: Re-completion or re-entry of existing well within the existing bore hole or by deepening or sidetrack operations which do not extend more than one hundred fifty (150) feet from Draft Jan. 8, 2009 14 the existing well bore, or replacement of well liners or casings. Right-of –way: Public rights-of-way including streets, easements and other property within the Town and which is dedicated to the use and benefit of the public. Road Repair Agreement: A written binding agreement between the Town and the Operator obligating the Operator to repair damage, excluding ordinary wear and tear, if any, to public streets, including, but not limited to, bridges, caused by the Operator or its employees, agents, contractors, subcontractors or representatives in the performance of drilling or production of any wells authorized by the Town. In addition, said agreement may contain Town imposed requirements, prior to issuance of a Gas Well Permit, for improvements to any public street the use of which is required by the Operator for his well drilling and/or production operations. Roadway Landscape Zone: As defined by other Town ordinances. Rural Gas Well Pad Site: A Gas Well Pad Site containing a Drill Zone that is greater than (1,000) one-thousand feet from a Protected Use. Salt Water Disposal Well: Any well used for the disposal of salt water or other waste materials. Salt Water Disposal Well - commercial: Any well used for the disposal of salt water or other waste materials for a fee or other compensation. School: Any public and private, primary and secondary educational facilities and any licensed day care centers, meaning a facility licensed by the State of Texas or by the Town that provides care, training, education, custody, treatment or supervision for more than six children under 14 years of age, and for less than 24 hours per day. Site Plan: Shall include all plans as required for obtaining a Specific Use Permit and or a Site Plan amendment meeting all of the requirements included in this ordinance and other Town ordinances for Site Plans. Specific Use Permit(SUP): A permit recommended by the Planning and Zoning Commission and authorized by the Town Council for the use of land or structures in accordance to the provisions in the Zoning Ordinance. State: Shall mean the State of Texas. Street: Any street, highway, roadway, sidewalk, alley, avenue, access Draft Jan. 8, 2009 15 easement, recessed parking area or other public right-of-way, including the entire right-of-way. Structure: Without limitation, any building, or combination of related components constructed in an ordered scheme that constitutes a work or improvement constructed on or affixed to land, including, but not limited to, Habitable Structures, partially enclosed structures, enclosed tanks, etc. Surface Area Agreement: An agreement between a property owner and another party granting the party certain rights for useage of the surface of the property. Tank: A container(s) located on a Gas Well Pad Site, covered or uncovered, used in conjunction with the drilling or production of gas or other hydrocarbons for holding or storing fluids. Tank Battery: Two or more tanks located within a Gas Well Pad Site. Tank Battery Facility: a collection of tanks located other than inside a Gas Well Pad Site serving as a point of collection (tanks) and disbursement (tank, meter, lease automated custody transfer unit) of oil or gas from producing well(s). TCEQ: The Texas Commission on Environmental Quality. Technical Advisor: Person(s) familiar with and educated in the gas industry or the law as it relates to gas matters who may be retained from time to time by the Town. Town: The Town of Westlake, Texas. Town Manager: The Town Manager of the Town of Westlake, Texas, or his designee. Unified Development Code: The Unified Development Code of the Town of Westlake, Texas, as amended. Unregulated Pipeline: Those pipelines within the Town that enjoy exemptions under Federal and State rules that exclude such lines from construction standards, safety standards or reporting requirements of either or both federal and state governments. Urban Gas Well Pad Site: A Gas Well Pad Site containing a Drill Zone that is not closer than (600) six-hundred feet from a Protected Use and not Draft Jan. 8, 2009 16 farther than (1,000) one-thousand feet from the nearest Protected Use. Water Pits: a Town approved excavation designed for the storage of water to utilized in Drilling, Fraccing, and/or Work Over Operations. Well: A hole or bore to any horizon, formation, or strata for the purpose of producing oil, gas, or other hydrocarbons. Well Permit: A permit applied for and issued or denied pursuant to this Article authorizing the drilling, production, and operation of one or more wells. Work Over Operations: Work performed in a well after its completion in an effort to secure production where there has been none, restore production that has ceased or increase production. Zoning Ordinance: The Comprehensive Zoning Ordinance of the Town of Westlake, Texas, as it may be amended. Sec. 56­33. Gas  Well  Pad  Site Permit  Required.  a) Any person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall not engage in the drilling and production of Gas Wells within the corporate limits of the Town without first obtaining a Gas Well Pad Site Permit. b) Applications for a Gas WellPad Site Permit shall be in writing, shall be on forms provided by theTown, shall be signed by the Operator, shall include the application fee, shall include a copy of the application for a Specific Use Permit and, if located within a Planned Development Zoning District, an application for a Site Plan amendment. No Gas Well Pad Site Permit shall be issued without first obtaining an approved SUP. c) By acceptance of any Gas WellGas WellGas WellGas Well Pad Site Permits issued pursuant to this Ordinance, the Operator expressly stipulates and agrees to be bound by and comply with all of the provisions of this Ordinance. Draft Jan. 8, 2009 17 Sec. 56­34. Gas  Well  Pad  Site Classifications.  Gas WellPad Sites shall be classified as follows: a) High Impact Gas Well Pad Site if the Gas Well Pad Site contains a Drill Zone that is located within six hundred (600) feet of a Protected Use at the time of the filing of a Gas Well Pad Site permit application. b) Urban Gas Well Pad Site if the Gas Well Pad Site contains a Drill Zone that is located between six hundred (600) feet and one thousand (1000) feet of a Protected Use at the time of the filing of a Gas Well Pad Site permit application. c) Rural Gas Well Pad Site if the Gas Well Pad Site contains a Drill Zone that is located more than one thousand (1000) feet from a Protected Use at the time of the filing of a Gas Well Pad Site permit application. Sec. 56­35. Gas  Well  Pad  Site Permit  Application and Requirements.  a) Every application for a Gas Well Pad Site Permit issued pursuant to this Ordinance shall be in writing signed by the Operator, or some person duly authorized to sign on his behalf, and filed with the Town. b) An application deemed complete by the Town shall include, as a minimum, the following information: 1) All required applications, including an approved Specific Use Permit (SUP) and all permit fees and any other applicable fees as set out in the fee schedule approved by the Town Council by resolution. 2) The date of the application and type of Gas Well Well Pad Site Permit requested. 3) Surface owner name(s) and address of the pad site property. 4) Applicant/Operator name and address and if the Operator is a corporation, the state of incorporation, and if the Operator is a partnership, the names and addresses of the general partners. 5) Name and address of individual designated to receive notice. 6) Name of representative(s) with supervisory authority over all gas Draft Jan. 8, 2009 18 operation site activities and a 24-hour phone number. 7) Owner and address of each parcel of property within one thousand (1,000) feet of the proposed Drill Zone. 8) A Site Plan of the proposed Gas WellGas WellGas WellGas Well Pad Site meeting all of the requirements contained in Sec. 56-37 and the requirements contained in the Zoning ordinance for Site Plans. 9) The name, address and 24-hour phone number of the person to be notified in case of an emergency. 10) The exact and correct acreage included in the Gas Well Pad Site Permit application. 11) An original executed Town-wide Road Maintenance Agreement signed and approved by the Town Manager must be filed with the Town Secretary that provides that the Operator shall repair, at the Operator’s sole expense, any damage, as may be determined by the Town, to, Streets caused by the use of heavy vehicles for any activity associated with the preparation, drilling, production, and operation of Gas Wells. Said Town required road improvements contained as a contition in a Road Mainteneance Agreement may also cover improvements to Streets required for the Operator to service his well during well drilling and/or well production and that said improvements may be required to be completed by the Operator before drilling and/or production can commence. 12) A statement, under oath, signed by the Operator, or designated representative, that the information submitted with the application is, to the best knowledge and belief of the Operator or designated representative, true and correct. 13) For Gas Well Pad Sites desiring to reduce setbacks, all applicable Adjacent Property Owner Consent Forms must be included along with the prescribed fee for their review, validation and filing. c) Gas Well Pad Site Permit Requirements. Draft Jan. 8, 2009 19 1) An approved Specific Use Permit (SUP) per the Town’s Zoning Ordinance is required prior to the consideration, approval, and issuance of an approved Gas Well Pad Site Permit. 2) All approved Gas Well Pad Site permits shall be filed of record by the Operator, at his expense in the applicable county deed records and indicated on all applicable plats filed in the deed records. Each filed Gas Well Pad Site permit shall contain the street address, lot and block, subdivision name and plat volume and page of each lot, tract or parcel located within one thousand (1000) feet of the Gas Well Pad Site. 3) Prior to the issuance of a Gas Well Pad Site permit by the Town, the Operator shall place at least one sign,as approved by the Town, on the property located in a conspicuous place or places upon the property at a point or points visible from any Street, or Protected Use adjacent to such property. The Gas Inspector may require additional signage if the pad site fronts on more than one right-of-way, street, roadway, or public thoroughfare. 4) After a Gas Well Pad Site permit has been issued, the Operator shall place, and maintain at all times,at least one sign, as approved by the Town, on the property located in a conspicuous place or places upon the property at a point or points visible from any street or Protected Use adjacent to such property. The Gas Inspector may require additional signage if the pad site fronts on more than one right-of-way, street, roadway, or public thoroughfare. The sign shall indicate that a Gas Well Pad Site Permit to drill wells for gas on this site has been obtained, and shall further set forth that additional information can be acquired by telephoning the Applicant/Operator at the number indicated on the sign. 5) The sign shall remain posted at the pad site for the duration of the Gas WellGas WellGas Pad Site Permit. 6) Prior to the commencement of drilling of a future Gas Well on a permitted Gas Well Pad Site, the Operator must submit an application for the issuance of a Gas WellPermit, pay all applicable fees, and fulfill all other requirements for the approval and issuance of said permit, in accordance with this Ordinance. 7) The issuance of a Gas Well Pad Site Permit allows future wells to Draft Jan. 8, 2009 20 be drilled on an existing Gas Well Pad Site within the approved Drill Zone. All Gas Wells subsequently drilled upon a permitted Gas Well Pad Site shall otherwise comply with any drilling distance regulations for and from a Protected Use or other structure as required by state law and applicable fire code regulations and all other provisions of this Ordinance. Further, all Gas Wells drilled over time on an approved Gas WellWell Pad Site shall comply with all Town requirements in place for that pad site at the time of approval of the Gas Well Pad Site Permit. Sec. 56­36.  Site Plan requirements.  a) All submitted Site Plans shall include, as a required minimum, all items required for a Site Plan as detailed in the Zoning Ordinance along with the following: 1) Traffic management plan identifying all truck routes and vehicle ingress/egress access points to the Gas Well Pad Site from a street or street right-of-way. 2) Show the location and use of all structures and Protected Uses within one thousand (1,000) feet of the Gas Well Pad Site. 3) Show the location of all private roads to be used to access the Gas Well Pad Site as well as all points of intersection and ingress/egress of private roads to a street. 4) Show location of all vehicle parking and storage areas. Describe parking and drive area surfaces proposed. 5) Identify the proposed source of water and any other public utilities required. 6) Identify all proposed water storage facilitiesincluding all on-site retention ponds and how those ponds will be utilized as a landscape water feature on the Gas Well Pad Site’s landscape plan. 7) Identify the 100-year floodplainand if a well is located in any part of this 100-year floodplain, how the well will be sited to comply with the floodplain regulations contained in this and other Town Ordinances. Draft Jan. 8, 2009 21 8) Identify and show the proposed method of erosion control. 9) A screening and landscape plan, as well as an executed third- party landscape maintenance agreement with frequency of landscape maintenance identified for all landscape plant materials as well as illustrations of all proposed screening materials, methods of irrigation, proposed planting materials, and elevations displaying how the proposed screening will prevent views of all on-site production/tank equipment on the proposed Gas Well Pad Site. 10) A tree preservation and mitigation plan. 11) A site security plan for all drilling and post Drilling Operations. 12) A copy of the noise management plan, prepared by a noise control engineer or other qualified person approved by the Inspector, for any equipment used in the drilling, completion, or production of a well. 13) An outdoor lighting plan for all drilling and post-Drilling Operations. 14) A dust mitigation plan detailing monitoring and air quality control measures to be implemented to mitigate and suppress dust generated at the drill site and the private vehicle access route for drilling and post-drilling operations. Brine water, sulphur water, or water in mixture with any type of hydrocarbon may not be used for dust suppression. 15) A waste disposal plan for all drilling and post-drilling operations including the site’s Hazardous Materials and Site Safety Management Plan (HMSP). 16) A copy of the noise management plan, prepared by a noise control engineer or other qualified person approved by the Inspector, for any equipment used in the drilling, completion, or production of a well. 17) Show elevations and height of all on-site telemetry equipment. 18) Show location of all on-site fresh water wells proposed to serve the Gas Well Pad Site. Draft Jan. 8, 2009 22 19) Show the location of pipelines from the well to the Tank or to the Tank Batteries and from the Gas Well to the Gas Well pipeline collection system. 20) All Adjacent Property Owner Consent forms must be submitted. 21) Show all equipment and structures that may be located or used during the Drilling and Production phases. Sec. 56­37.  Gas  Well  Pad Site Standards.  a) Gas Well Pad Site setbacks: a. The perimeter of a Gas Well Pad Site must be setback a minimum of (75) seventy-five feet from an adjacent property line. Exception: This distance may be reduced with consent from adjacent property owners and approval by the Town. b. When a Gas Well Pad Site is fronting on one or more streets, the setback for the perimeter of the pad site shall be as required by the building setback as established for that lot or as approved by the Site Plan / Specific Use Permit approval process. c. The Drill Zone within a Gas Well Pad Site must be setback a minimum of (600) six-hundred feet from all Protected Uses. Exception: This distance may be reduced to no less than (300) three-hundred feet with consent of all property owners with Protected Uses that are less than (600) six-hundred feet from the proposed Drill Zone and the reduction is approved by the Town. d. The Drill Zone within a Gas Well Pad Site must be setback a minimum of (300) three-hundred feet from all adjacent property lines and or right-of-way lines. Exception: This distance may be reduced with consent from adjacent property owners and approval by the Town, provided that a minimum 300 feet setback from all Protected Uses is maintained. b) Effects of setback increases and reductions: 1) If the Drill Zone is located within six hundred (600) feet of a Protected Use at the time of the filing of a pad site permit Draft Jan. 8, 2009 23 application, the applicant must comply with all regulations of a High Impact Gas Well Pad Site Permit. 2) If the Drill Zone is located within one thousand (1,000) feet but not less than six hundred (600) feet of a Protected Use at the time of the filing of a pad site permit application, the applicant must comply with all regulations of an Urban Gas Well Pad Site Permit. 3) If the Drill Zone is located greater than one thousand (1,000) feet from a Protected Use at the time of the filing of a pad site permit application, the applicant must comply with all regulations of a Rural Gas Well Pad Site Permit. c) Gas Well Pad Sites in general: 1) All future Gas Wells drilled on a permitted Gas Well Pad Site permit shall comply with all the then current applicable Gas Well Pad Site classification regulations, including the notice and landscape provisions, and all other provisions of this ordinance, except for the distance setback requirements related to drilling a well from a Protected Use, however, no well shall be drilled closer than three hundred (300) feet from any Protected Use. The distance shall be calculated from the Drill Zone, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building containing a Protected Use or boundary line of a Public Park. 2) No Gas Well Pad Site Permit shall be issued for a Gas Well Pad Site greater than five (5) acres in surface area or the amount of surface area acreage included in the Surface Use Agreement, whichever is larger. 3) No Gas Well Pad Site may contain more than one Drill Zone. Drill Zones may not be larger than (2) two acres in surface area. 4) No Gas Well Permit shall be issued for a High Impact Gas Well Pad Site unless the Gas Well Pad Site is graded in such a way as to comply with the following: a. Any fill material shall not be higher than the highest elevation along the perimeter of the adjacent tracts, parcels or platted lots, however; fill material placed on pad sites shall not Draft Jan. 8, 2009 24 exceed three (3) feet in height above the highest elevation along the perimeter of the adjacent tracts, parcels or platted lots. b. The slope of the fill material is a maximum ratio of three (3) feet horizontal to one (1) foot vertical, unless a retaining wall system is built. c. Fill material must be leveled and graded for positive drainage. d. The placement of fill material may not cause the release of dust and/or odor, damage any public improvements or public infrastructure, or be placed in a flood plain or floodway without a floodplain development permit from the Floodplain Administrator. The placement of fill material shall not result in flooding or significant increase in runoff to adjacent properties. e. Erosion control measures must be implemented to prevent any off site migration of silt and sediment. 5) Perimeter Wall requirements: A perimeter wall of a minimum of eight (8’) feet in height shall be required to enclose and visually screen the well and all associated equipment and structures during post-drilling operations. Low-profile equipment or facilities must be used on the production site and must not exceed the height of the screening wall. Construction materials for the perimeter wall shall include stone, cast stone, split-face concrete masonry units, or other masonry materials approved by the Site Plan / Specific Use Permit process. Wrought Iron fencing, with masonry columns spaced at (24) twenty-four feet or less, may be used in conjunction with vegetation when approved by the Town Council. A temporary perimeter fence may be approved for all or part of the Gas Well Pad Site during Drilling Operations if approved during the Specific Use Permit approval process provided a time schedule for removal is agreed to by the Town. 4) Gate Specifications. All masonry perimeter walls shall be equipped with at least one (1) gate. The gate shall be an architectural gate that is not less than twelve (12) feet wide and be composed of two (2) gates, each of which is not less than six (6) feet wide, or one (1) sliding gate not less than twelve (12) Draft Jan. 8, 2009 25 feet wide. If two (2) gates are used, gates shall latch and lock in the center of the span: a. The perimeter wall shall have an architectural metal gate that shall remain locked when the Operator or his employees are not within the enclosure. b. Operator must provide the Town Fire Chief with a "Knox Padlock" or "Knox Box with a key" to access the well site to be used only in case of an emergency. 6) Landscaping, Screening, and Tree Preservation and Mitigation. All Gas Well Pad Sites must meet the landscape requirements contained within the Town of Westlake Code of Ordinances or the Town of Westlake Planned Development Supplement, whichever is applicable, in the same manner as would any other commercial development or construction project. Installation of those portions of the landscaping that will be located within the proposed perimeter wall of the Gas Well Pad Site, but outside the proposed perimeter wall of the Gas WellProduction Site, may be delayed until the transition from drilling to production has been completed provided the time schedule for such transition has been approved by the Town Council as a part of the Operator’s approved SUP. a. All Gas Well Pad Sites must be landscaped along their entire perimeter to the same standards as outlined for Roadway Landscape zones. b. High Impact and Urban Gas Well Pad Sites must have physical barriers between the Drill Zone and any Protected Uses within six hundred (600) feet. The barrier may be earth by natural grade or berms, or other approved substantial barrier that will provide similar protection from projectiles, shock waves, fire spread, and radiant heat resulting from an explosion or fire at the Drill Zone. Berms must be designed, constructed and landscaped to comply with the requirements for berms in the Town Edge Zones as regulated by the Zoning Ordinance. Man made barriers, when approved, must be painted or decorative in nature so as to blend in with the surrounding walls and landscaping and be approved by the Town Council as a part of the SUP application. Draft Jan. 8, 2009 26 c. Rural Gas Well Pad Sites may be allowed to delay all or part of their landscape and screening wall installation as approved by the Town Council provided a specific time schedule is provided as a part of the Specific Use Permit application. This landscape and screening wall installation can be required immediately by the Town upon the final Site Planning and /or issuance of a building permit for a Protected Use located on any tract adjoining the Rural Gas Well Pad Site falling within the setback requirements for High Impact or Urban Gas Well Pad Sites. d. Tree preservation and mitigation shall be required for all Gas Well Pad Sites as required by the Town of Westlake Code of Ordinances or the Town of Westlake Planned Development Supplement, whichever is applicable, in the same manner as would any other commercial development or construction project provided the Town Council may impose additional tree preservation, mitigation, or landscape requirements as part of the Specific Use Permit approval process. Sec. 56­38.  Gas  Well  Permit  Required.  a) A person wanting to engage in and operate gas production activities shall apply for and obtain a Gas Well Permit under this Ordinance. A Gas Well Permit may only be issued for a well to be located within an approved and completed Gas Well Pad Site. It shall be unlawful for any person acting either for himself or acting as agent, employee, independent contractor, or servant for any person to drill any well, or assist in any way re-working, fracturing or operation of any such well or to conduct any activity related to the production of gas without first obtaining a Gas Well Permit issued by the Town in accordance with this Ordinance. Such activities include, but are not limited to re-working, drilling, operation, construction of rigs or tank batteries, fracturing and pressurizing. b) Operator must apply for and obtain a Gas Well Permit for the Drilling, Re-drilling, Re-entering, Fracturing, Re-working,Abandoning, or Re- Activating of each well on the approved Gas Well Pad Site. Operator. c) An approved Gas Well Permit shall not constitute authority for the Drilling, Re-drilling, Re-entering, Fracturing, Re-working, Abandoning, Draft Jan. 8, 2009 27 or Re-Activating of an Abandoned Well as defined by the terms of abandonment in this ordinance. An Operator shall obtain a new Gas Well Permit in accordance with the provisions of this Ordinance if the Operator is re-entering and drilling an abandoned well. d) When a Gas Well Permit has been issued to the Operator for the Drilling, Re-drilling, Re-entering, Fracturing, Re-working, Abandoning, or Re-Activating of a well, such Gas Well Permit shall constitute sufficient authority for drilling, operation, production gathering or production maintenance, and repair, of the well. e) ) Any person who intends to Re-work a permitted Gas Well after initial completion shall obtain a permit and give written notice to the Gas Inspector no less than ten (10) days before the Drilling, Re-drilling, Re-entering, Fracturing, Re-working,Abandoning, or Re-Activating activities begin. The notice must identify where the activities will be conducted and must describe the activities in detail, including the duration of the activities and the time the activities will be conducted. The notice must also provide the address and 24-hour phone number of the person conducting the activities. If required by the Gas Inspector, the person conducting the Re-working activities will post a sign on the property giving the public notice of the activities, including the name, address and 24-hour phone number of the person conducting the activities. If a Re-working permit is issued, all Re- working Operations will be conducted within the conditions of the original Gas Well Permit. f) A Gas Well Permit shall be valid for the purpose of drilling or re-drilling for a period of (1) one year from the date of issuance, A new Gas Well Permit shall be required for Drilling, Re-drilling, Re-entering, Fracturing, Re-working,Abandoning, or Re-Activating that occurs in any subsequent year. Well drilling equipment shall not be allow to be located within a Gas Well Pad Site or Gas Well Production Site without a valid Gas Well Permit. g) The Gas Well Permits required by this Ordinance are in addition to and are not in lieu of the Gas Well Pad Site Permits or of any other permit which may be required by any other provision of this Code or by any other governmental agency. h) No Gas Well Permit shall be issued for any well to be drilled within or upon any Town owned property without the prior consent of the Town Council. The Town Council may require additional insurance and security requirements above and beyond the limits established in this Draft Jan. 8, 2009 28 Ordinance. i) A floodplain development permit as required by Town ordinances and approved by the Floodplain Administrator shall be required prior to the approval of a Gas Well Permit for any drill site within an area of special flood hazard. Sec. 56­39.   Gas  WellPermit Application, Requirements and Filing Fees.  a) Every application for a Gas Well Permit issued pursuant to this Ordinance shall be in writing signed by the Operator, or some person duly authorized to sign on his behalf, and filed with the Gas Inspector. b) The application shall include, as a minimum, the following information: 1) The date of the application and type of Gas WellGas WellGas WellGas Well Permit requested. 2) Proposed well name. 3) The approved Gas WellGas WellGas WellGas Well Pad Site Permit and its approved Specific Use Permit (SUP). 4) Updated surface owner name(s) and address of the pad site property if this has changed since the approval of the Gas WellGas WellGas WellGas Well Pad Site Permit. 5) Applicant/Operator name and address and if the Operator is a corporation, the state of incorporation, and if the Operator is a partnership, the names and addresses of the general partners. 6) Updated name and address of individual designated to receive notice if this has changed since the approval of the Gas WellGas WellGas WellGas Well Pad Site Permit. 7) Updated name of representative with supervisory authority over all gas operation site activities and a 24-hour phone number if this has changed since the approval of the Gas WellGas WellGas WellGas Well Pad Site Permit. Draft Jan. 8, 2009 29 8) Copies of all reports required by the Commission as required by the Gas Inspector. 9) Evidence of meeting all insurance and security requirements under this Ordinance. 10) A statement, under oath, signed by the Operator, or designated representative, that the information submitted with the application is, to the best knowledge and belief of the Operator or designated representative, true and correct. 11) The Emergency Response Plan for this Gas WellGas WellGas WellGas Well Pad Site as required in this Ordinance. c) All required applications and lGas Well Permit fees as set out in the fee schedule approved by the Town Council by resolution. Sec. 56­40.  Standards  for Gas  WellDrilling and Production.  a) On Site Requirements. 1) Abandoned Wells. All wells shall be abandoned in accordance with the rules of the Commission and pursuant to Section 56-47 of this Ordinance. b) Blowout Prevention. In all cases, blowout prevention equipment shall be used on all wells being drilled, worked-over or in which tubing is being changed. Protection shall be provided to prevent blowout during gas operations as required by and in conformance with the requirements of the Commission and the recommendations of the American Petroleum Institute. The Operator must equip all drilling wells with adequate blowout preventers, flow lines and valves commensurate with the working pressures involved as required by the Commission. c) Compliance. Operator shall comply at all times with all applicable federal, state and Town requirements. d) Discharge. No person shall place, deposit, discharge, or cause or permit to be placed, deposited or discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substances or any refuse Draft Jan. 8, 2009 30 including wastewater or brine from any gas operation or the contents of any container used in connection with any gas operation in, into, or upon any public right-of-way, alleys, streets, lots, storm drain, ditch or sewer, or sanitary drain without permits from the appropriate Town departments. e) Drilling Notice. The Operator shall provide 48-hour notice to the Gas Inspector before the start of Drilling Operations. f) Drill Stem Testing. All open hole formation or drill stem testing shall be done during daylight hours. Drill stem tests may be conducted only if the well effluent during the test is produced through an adequate gas separator to storage tanks and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe. g) Dust, Vibration, Odors. All drilling and production operations shall be conducted in such a manner as to minimize, so far as practicable, dust, vibration, or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for the production of gas and other hydrocarbon substances in urban areas. All equipment used shall be so constructed and operated so that, vibrations, dust, odor or other harmful or annoying substances or effect will be minimized by the operations carried on at any drilling or production site or from anything incident thereto. The site or structures thereon shall not be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in industry standards of drilling and production in this area shall be adopted as they become available if capable of reducing factors of dust, vibration and odor. h) Electric Lines. All electric lines to drilling and production facilities shall be located underground. i) Hazardous Material and Site Safety Plan. Prior to the commencement of any gas or other hydrocarbons production activities, Operator shall submit to the Gas Inspector this plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of Gas Wells. Said plan shall use existing guidelines established by the Railroad Commission, TCEQ, Department of Transportation and/or the Environmental Protection Agency and Town Fire Code. A copy of this plan shall be kept on site. j) Equipment Painted. All production equipment on the site shall be Draft Jan. 8, 2009 31 properly painted and maintained at all times, including, but not limited to, pumping units, storage tanks, buildings and structures. k) Fire Notice. In the event of a fire or discovery of a fire, smoke, or unauthorized release of flammable or hazardous materials on any property, the Operator shall immediately report such condition to the fire department in accordance with the Town Fire Code. The reporting limits for hazardous materials release shall conform to the requirements of the Commission and not exceed any state or federal permitting limit. A copy of the hazardous materials release records required by TCEQ shall be forwarded to the Fire Chief on an annual basis. l) Fire Prevention; Sources of Ignition. Firefighting apparatus and supplies as approved by the Fire Department and required by any applicable federal, state, or local law shall be provided by the Operator, at the Operator's cost, and shall be maintained on the drilling site at all times during drilling and production operations. The Operator shall be responsible for the maintenance and upkeep of such equipment. Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All well heads shall contain an appropriately labeled emergency shut off valve to the well distribution line. Firefighter Training and Equipment. Each Operator shall be required, at the option of the Fire Chief, to provide training and instruction to the Fire Department regarding well safety and emergency management protocol. Each permit application for a Gas Well Pad Site permit or Gas Well Drilling permit shall include a fee to be used to cover the expenses incurred or anticipated for Firefighter training and equipment acquisition or replacement. The fees shall be set out in the fee schedule approved by the Town Council by resolution. All costs associated to responding to an incident at a Gas Well Site including, supplies, materials, and or personnel shall be reimbursed by the Operator to the responding agencies. m) Fracing Operations. All formation fracture stimulation operations shall be conducted during daylight hours unless the Operator has notified and obtained written permission in advance from the Gas Inspector or the Administrator for operations during nighttime hours. The following requirements shall apply to all fracture stimulation operations performed on a Gas WellPad Site: Draft Jan. 8, 2009 32 1) At least forty-eight (48) hours before operations are commenced, the Operator shall notify the Gas Inspector and post a sign at the entrance of the well site advising the public of the date the operations will commence; 2) Flowback Operations to recover fluids used during fracture stimulation shall be exempt from work hour restrictions; 3) A watchman shall be required at all times during such operations; and 4) At no time shall the well be allowed to flow or vent directly to the atmosphere. n) Fresh Water Wells. All water wells require a permit from the Town prior to drilling. It shall be unlawful to drill any well, the center of which, at the surface of the ground, is located within two hundred (200) feet of any existing fresh water well. The measurement shall be in a direct line from the closest well bore to the fresh water well bore. 1) The Operator of a Gas Well shall provide the Gas Inspector with a pre-drilling and post-drilling water analysis and flow rate from any existing fresh water well within five hundred (500) feet of the Gas Well. 2) An Operator may drill a fresh water well, in compliance with State law and Town of Westlake ordinances. 3) A copy of the Texas Water Development Board permit shall be provided to the Gas Inspector along with the geographic coordinates of every water well within five hundred (500) feet of the well bore. 4) A copy of all plugging and abandonment reports filed with the state and/or transfer of ownership notice shall be provided to the Gas Inspector. 5) The Operator of a lGas Well shall provide the Gas Inspector with a "pre-drilling" and "post-drilling" water analysis from the fresh water well if the well is transferred to private or public use. o) Gas Lift Compressor. Any on-site compressor used to lift gas from the well to the well line collection system shall be designed to comply with the noise requirements of this Ordinance. Provided, however, off-site Draft Jan. 8, 2009 33 compressor stations are prohibited. Gas emission or burning restricted. No person shall allow, cause or permit gases to be vented into the atmosphere or to be burned by open flame. All wells must be “Green Wells” as defined in this chapter. p) Gas Processing On-site. No refining process or any process for the extraction of hydrocarbon products shall be performed at a drill site or operation site, except that a separator may be maintained for the separation of liquids from gas and oil. A separator may serve more than one well, provided that all wells served by a separator are located on the same Gas Well Pad Site. q) Grass, Weeds, Trash. All drill and operation sites shall be kept clear at all times of high grass, weeds, and combustible trash. r) Lights. No person shall permit any lights located on any drill or operation site to be directed in such a manner so that they shine directly on public roads, adjacent property or property in the general vicinity of the operation site. Unless approved otherwise in the SUP, site lighting shall be shielded and directed downward and internally so as to avoid glare on Streets and adjacent dwellings and buildings within three hundred (300) feet. Lighting for all drilling and production operations shall comply with the lighting plan for the Gas Well Pad Site, which as a minimum, shall comply with the standards as set out in the Code of Ordinances of the Town of Westlake ordinances. s) Muffling Exhaust. Exhaust from any internal combustion engine or compressor, stationary or mounted on wheels, used in connection with the drilling of any well or for use on any production equipment shall not be discharged into the open air unless it is equipped with an exhaust muffler, or mufflers or an exhaust muffler box constructed of noncombustible materials sufficient to suppress noise and disruptive vibrations and prevent the escape of obnoxious gases, fumes or ignited carbon or soot. t) Water Pits. No fresh water pit may be placed in any Town recognized drainage way, FEMA floodplain or floodway. Construction of the fresh water pit must comply with all Town, state and federal regulations. Fresh water fracing pits, not transferred to the surface owner, shall be closed and the site restored within one hundred twenty (120) days after completion of Drilling Operations have ceased unless extended by the Gas Inspector or unless required as stipulated in the Operator’s approved Site Plan for the Gas Well Pad Site as a permanent landscape Draft Jan. 8, 2009 34 feature. u) Private Roads and Drill Sites. Prior to the commencement of any Drilling Operations, all private roads used for access to the drill site and the operation site itself shall be at least twenty-four (24) feet wide, drain appropriately, have an overhead clearance of fourteen (14) feet and shall have an all-weather surface as approved by the Town as set out in the approved SUP and the approved Gas Well Pad Site Permit. The Operator shall install truck shakers along the private access road to remove mud from vehicles prior to entering the paved section of the access road. Watering, wetting or other methods or materials must be used to control the dust on all roads adjacent to residential property, schools, parks or public property as required by the Town. v) Salt Water Disposal Wells. Commercial Saltwater Disposal Wells are prohibited. Non-commercial Salt Water Disposal Wells that are ancilliary to a specific Gas Well must be shown on the Site Plan when applying for a Specific Use Permit. w) Signs. 1) A sign shall be immediately and prominently displayed at the gate on the temporary site fencing and the permanent perimeter wall as applicable. Such sign shall be durable material, maintained in good condition and, unless otherwise required by the Commission, shall have a surface area of not less than two (2) square feet nor more than four (4) square feet and shall be lettered with the following: a. Well name and number; b. Address as provided by the Town of Westlake. c. Name of Operator; d. The emergency 911 number; and e. Telephone numbers of two (2) persons responsible for the well, who may be contacted in case of emergency. 2) Permanent weatherproof signs reading "DANGER NO SMOKING OF OPEN FLAME ALLOWED IN THIS AREA” “PELIGRO NO FUMAR Draft Jan. 8, 2009 35 INCIAR LLAMA EN ESTA AREA”, shall be posted immediately upon completion of the well site fencing at the entrance of each well site and tank battery or in any other location approved or designated by the Gas Inspector. Sign lettering shall be four (4) inches in height and shall be red on a white background or white on a red background. Each sign shall include the emergency notification numbers of the Fire Department and the Operator and the well lease designations required by the Commission. 3) National Fire Prevention Association (NFPA) 704 diamond hazard identification signs are required on each tank and at the entrance to the site adjacent to the Operator's sign. A label must be located on each tank indicating exact chemicals that may be contained in the tank. Text shall be minimum six (6) inches in height, contrasting with the background color. x) Storage of Equipment. On-site storage is prohibited on the operation site. No equipment shall be stored on the drilling or production operation site, unless it is necessary to the everyday operation of the well. Lumber, pipes, tubing and casing shall not be left on the operation site except when drilling or well servicing operations are being conducted on the site. No vehicle or item of machinery shall be parked or stored on any street, right-of-way or in any driveway, alley or upon any operation site which constitutes a fire hazard or an obstruction to or interference with fighting or controlling fires except that equipment which is necessary for drilling or production operations on the site. The Fire Department shall be the entity that determines whether any equipment on the site shall constitute a fire hazard. y) Storage Tanks. All tanks and permanent structures shall conform to the American Petroleum Institute (A.P.I.) specifications unless other specifications are approved by the Fire Chief. The top of the tanks shall be no higher than eight (8) feet above the terrain surrounding the tanks, but in no case shall tanks extend beyond or be visible above the screening wall. All storage tanks shall be equipped with a secondary containment system including lining with an impervious material. The secondary containment system shall be of sufficient height to contain one and one-half (1 ½) times the contents of the largest tank in accordance with the Fire Code, and buried at least one (1) foot. Drip pots shall be provided at the pump out connection to contain the liquids from the storage tanks. 4) Temporary flowback tanks shall be removed within ninety (90) Draft Jan. 8, 2009 36 days after completion of the Gas Wells at the Gas Well Pad Site unless written permission is obtained from the Gas Inspector to extend the time period for no more than thirty (30) days. 5) All tanks shall be set back pursuant to the standards of the Commission and the National Fire Protection Association, but in all cases, shall be at least twenty-five (50) feet from any public street, road, highway or future street, or right-of-way and fifty (100) feet from a structure. Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank. All safety valves shall be tested annually. 6) A floodplain development permit approved by the Floodplain Administrator shall be required to place storage tanks or separation facilities within an area of special flood hazard. 7) Tanks and Tank Battery Facilities shall be equipped with a lightning arrestor system. 8) Surface Casing. Surface casing shall be run and set in full compliance with the applicable rules and regulations of the commission. 9) Valves. Each well must have a shutoff valve to terminate the well's production. The Fire Department shall have 24 hour access to the well site and the shut-off valve in an emergency. 10) Waste Disposal. Unless otherwise directed by the Commission, all tanks used for storage shall conform to the following: a. Operator must use portable closed steel storage tanks for storing liquid hydrocarbons. Tanks must meet the current American Petroleum Institute standards. All tanks must have a vent line, flame arrester and pressure relief valve. All tanks must be enclosed by a fence applicable to the issued permit classification. No tank battery shall be located within three hundred (300) feet of any Protected Use. b. A Closed Loop Mud System shall be used instead of lined reserve pits. No drilling fluid mud, storage or reserve pits shall be located within the Town, except steel Draft Jan. 8, 2009 37 containers used in a closed loop mud system. All disposals must be in accordance with the rules of the Commission and any other appropriate local, state or federal agency. c. Unless otherwise directed by the Commission, waste materials shall be removed from the site and transported to an off-site disposal facility not less often than every thirty (30) days. Water stored in on-site tanks shall be removed as necessary. d. All waste shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the State, this Ordinance and any other applicable ordinance of the Town. bb) Watchman. The Operator must keep a watchman or security personnel on site during the drilling or re-working of a well when other workmen are not on the premises. A record shall be kept of all personnel entering and leaving the site and said record shall be available to the Town upon request. cc) Wellhead Status after Fracing. All wellheads waiting on completion, for a period greater than 10 days, shall be: 1) Completed through the production casing flange with a metal plate or blind flange bolted across the head; 2) Surrounded with a six (6) feet tall chain link fence having a gate and lock; 3) The cellar shall be filled or closed; and 4) The Bradenhead shall be piped to the surface and open to the atmosphere or have an observable and adequate pressure gauge with operable test valve. dd) Work Hours for Site Development. No construction activities involving excavation of; demolition of; alteration to, or repair work on any access road or pad site, shall occur during nighttime hours or at any time on Sunday. ee) Noise. 1) No well shall be drilled, re-drilled or any equipment operated at Draft Jan. 8, 2009 38 any location within the Town in such a manner so as to create any noise which causes the exterior noise level when measured at the nearest Protected Use receiver's/receptor's property line or one hundred (100) feet from the nearest Protected Use structure (as measured to the closest exterior point of the building), whichever is closer to the receiver/receptor, that exceeds the Ambient Noise Level by more than five (5) decibels during Daytime hours and more than three (3) decibels during Nighttime hours. Fracing operations may not exceed the Ambient Noise Level by more than ten (10) decibels. Backflow operations may not exceed the Ambient Noise Level by more than five (5) decibels during nighttime hours. 2) The Operator shall be responsible for establishing and reporting to the Town the pre-drilling Ambient Noise Level prior to the issuance of a Gas Well Permit. Once the drilling is complete, the Operator shall be required to establish a new Ambient Noise Level prior to the installation of any new noise generation equipment. 3) Daytime hours adjustments to the noise standards as set forth above in subsection (1) of this section may be permitted, if requested in writing and approved by the Gas Inspector, in accordance with the following: Permitted Increase Duration of increase (dBA) (minutes)* 5 15 10 5 15 1 20 less than 1 *Cumulative minutes during any one hour. 4) All Workover Operations shall be restricted to Daytime Hours. "Workover Operations" shall mean work performed on a well after its completion in an effort to secure production where there has been none, restore production that has ceased, or increase production. 5) The exterior noise level generated by the drilling, re-drilling or other operations of all Gas Wells located within six hundred (600) feet of a Protected Use shall be continuously monitored, to ensure compliance. The cost of such monitoring shall be borne Draft Jan. 8, 2009 39 by the Operator. 6) Acoustical blankets, sound walls, mufflers or other alternative methods as approved by the Gas Inspector may be used to ensure compliance. All soundproofing shall comply with accepted industry standards and shall be subject to approval by the Town. 7) The sound level meter used in conducting noise evaluations shall meet the American National Standard Institute's Standard for sound meters or an instrument and the associated recording and analyzing equipment which will provide equivalent data. 8) During nighttime operations for High Impact and Urban Gas WellPad Sites, the operation of vehicle audible back-up alarms shall be prohibited or replaced with approved non-auditory signaling systems, such as spotters or flagmen. Deliveries of pipe, casing and heavy loads shall be limited to daytime hours, except for emergency situations. The Derrick Man and Driller shall communicate by walkie-talkie or other non disruptive means only when the Derrick Man is in the derrick. Horns may not be used to signal for connection or to summon crew (except that a horn may be used for emergency purposes only). The Operator shall conduct onsite meetings to inform all personnel of nighttime operations noise control requirements. ff) Well Setbacks. 1. It shall be unlawful to drill any well, the center of which, at the surface of the ground, is located: a. Outside the boundaries of the Drill Zone as shown on the approved SUP Site Plan for an approved Gas Well Pad Site. b. Within twenty-five (25) feet of any storage tank, or source of ignition; c. Within one hundred (l00) feet of any building accessory to, but not necessary to the operation of the well; or d. Within two hundred (200) feet of any fresh water well not drilled by the Operator as a specific source of water used for drilling or completion operations without the express written permission of the owner of the water well. The measurement shall be in a direct line from the closest well bore to the fresh Draft Jan. 8, 2009 40 water well bore. The distance requirement for fresh water wells is subject to the Commission regulations and any other State or Federal requirements. The distance shall be calculated from the well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of any object listed in 1) through 6) above. e. Tank batteries, tanks, well facilities be fully screened and located within the perimeter walls of a Gas Well Pad Site or Gas Well Production Site and at least three hundred (300) feet from any Public Park or from any residence, religious institution, public building, hospital building or school for which a building permit has been issued on the date of the application for a drilling permit is filed. The distance shall be calculated from the closest tank batteries, well facilities and/or equipment, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building. f. Well Completion and Inspection Permit/Tank and Tank Battery Permit. No well placed into production without an inspection by the Gas Inspector to certify compliance with all SUP, Gas Well Pad Site Permit, and Gas Well Permit conditions. Fees for these permits, as well as their annual renewal, shall be paid as set by the Town Council by resolution. gg) Installation of Pipelines on, under or across Public Property. The Operator shall apply to the Town for a license to place a pipeline on, over, under, along or across the Town streets, sidewalks, easements, rights-of-way, alleys and other Town property for the purpose of constructing, laying, maintaining, operating, repairing, replacing and removing pipelines. Operator shall: 1) Not interfere with or damage existing water, sewer or gas lines or the facilities of public utilities located on, under or across the course of such rights-of-way. 2) Furnish to the Gas Inspector a plat showing the location of such pipelines. 3) Construct such lines or cause same to be constructed out of new pipe. 4) Grade, level and restore such property to the same surface condition, as nearly as practicable, as existed when operations for Draft Jan. 8, 2009 41 the drilling of the well were first commenced. No Gas Well Permit shall be issued for any well to be drilled within any of the streets or alleys of the Town and/or projected streets and no street or alley shall be blocked or encumbered or closed due to any exploration, drilling or production operations unless prior consent is obtained from the Gas Inspector and Fire Department. Any consent shall be temporary in nature and state the number of hours and/or days that any street or alley may be blocked, encumbered or closed. Sec. 56­41.  Insurance and Indemnification. The Operator shall provide or cause to be provided the insurance described below for each well for which a Gas Well Permit is issued, such insurance to continue until the well is abandoned and the site restored. The Operator may provide the required coverage on a "blanket basis for multiple wells". The Town Manager shall approve such coverage. a) General requirements; indemnification and express negligence provisions. 1) Each Gas Well Permit issued by the Town shall include the following language: Operator does hereby expressly release and discharge, all claims, demands, actions, judgments, and executions which it ever had, or now have or may have, or assigns may have, or claim to have, against the Town of Westlake, and/or its departments, it agents, officers, attorneys, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the Operator under a Gas Well Permit. The Operator shall fully defend, protect, indemnify, and hold harmless the town, its elected and appointed officials, and/or its departments, agents, officers, servants, attorneys, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the town, its elected and appointed officials, and/or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Draft Jan. 8, 2009 42 Operator under a Gas Well Permit and, the Operator agrees to indemnify and hold harmless the town and/or its departments, and/or its officers, agents, servants, attorneys, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the Town, its elected and appointed officials, and/or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the Town of Westlake occurring on the drill site or operation site in the course and scope of inspecting and permitting the Gas Wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE TOWN OF WESTLAKE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE TOWN OF WESTLAKE, TEXAS, ITS ELECTED AND APOINTED OFFICIALS, AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, ATTORNEYS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE TOWN OF WESTLAKE, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, ATTORNEYS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE TOWN IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT. a. All insurance policies shall be endorsed to read "this policy will not be canceled or non-renewed without a minimum 30 days' advanced written notice to the Owner and the Town of Westlake except when this policy is being canceled for nonpayment of premium, in which case ten days' advance written notice is required.” b. Liability policies shall be written by carriers licensed to do business in the State of Texas and with companies with A:VIII or better rating in accordance with the current Best Key Rating Guide.. c. Liability policies shall name as "additional insured" the Draft Jan. 8, 2009 43 Town of Westlake and its officials, agents and employees. Waivers of subrogation shall be provided in favor of all Indemnified Parties d. Certificates of insurance must be presented to the Town evidencing all coverages and endorsements required by this article and the acceptance of a certificate without the required limits and/or coverages shall not be deemed a waiver of these requirements. Fees required for insurance policy review, as may be established by the Town Council by resolution, shall be paid at the time of presentation of the initial insurance coverage certificates as well as annually at the time of certificate presentation proving insurance policy renewal in accordance with the policy limits set by this Ordinance. e. Claims made policies will not be accepted except for excess policies or unless otherwise provided by this article. b) Required insurance coverages. 1) Commercial general liability insurance. a. Coverage should be a minimum combined single limit of $10,000,000.00 per occurrence for bodily injury and property damage. This coverage must include premises, operations, blowout or explosion products, completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractor's protective liability and personal injury. b. Environmental impairment (or seepage and pollution) shall be either included in the coverage or written as separate coverage. Such coverage shall not exclude damage to the lease site. If environmental impairment (or seepage and pollution) Coverage is written on a "claims made" basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit. Coverage shall apply to sudden and non-sudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste Draft Jan. 8, 2009 44 material or other irritants, contaminants or pollutants. Coverage shall be a minimum combined single limit of $1,000,000.00 per occurrence. 2) Automobile liability insurance. Minimum combined single limit of $500,000.00 per occurrence for bodily injury and property damage. Such coverage shall include owned, non-owned, and hired vehicles. 3) Worker's compensation insurance. In addition to the minimum statutory requirements, coverage shall include employer's liability limits of at least $100,000.00 for each accident, $100,000.00 for each employee, and a $500,000.00 policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the Town, its officials, agents, and employees for any work performed for the Town by the Operator. 4) Excess (or umbrella) liability insurance. Minimum limit of $20,000,000.00 covering in excess of the preceding insurance policies. 5) Control of well insurance. a. Minimum limit of $5,000,000.00 per occurrence. b. Policy shall cover the cost of controlling a well that is out of control, redrilling or restoration expenses, and seepage and pollution damage. Damage to property in the Operator's care, custody, and control with a sub- limit of $500,000.00 may be added. Sec. 56­42.  Bond, Irrevocable Letter of Credit.  Prior to the issuance of a Gas Well Permit the Operator shall provide the Gas Inspector with a security instrument in the form of a bond or an irrevocable letter of credit as follows: 1) Bond. A bond shall be executed by a reliable bonding or insurance institution authorized to do business in Texas, acceptable to the Town. The bond shall become effective on or before the date the Gas Well Permit is issued and shall remain in force and effect for at least a period of six (6) months after the expiration of the Gas Well Permit term or until the well is Draft Jan. 8, 2009 45 plugged and abandoned and the site is restored, whichever occurs first. The Operator shall be listed as principal and the instrument shall run to the Town, as obligee, and shall be conditioned that the Operator will comply with the terms and regulations of this Ordinance and the Town. The original bond shall be submitted to the Gas Inspector with a copy of the same provided to the Town Secretary. 2) Letter of Credit. A letter of credit shall be issued by a reliable bank authorized to do business in Texas and shall become effective on or before the date the Gas Well Permit is issued. The letter of credit shall remain in force and effect for at least a period of six (6) months after the expiration of the Gas Well Permit term. If the Letter of Credit is for a time period less than the life of the well as required by this Ordinance, the Operator must agree to either renew the Letter of Credit or replace the Letter of Credit with a bond in the amount required by this Ordinance, on or before 45 days prior to the expiration date of the Letter of Credit. If the Operator fails to deliver to the Town either the renewal Letter of Credit or replacement bond in the appropriate amount on or before 45 days prior to the expiration date of the Letter of Credit, the Town may draw the entire face amount of the attached Letter of Credit to be held by the Town as security for Operator's performance of its obligations under this Ordinance. The Town shall be authorized to draw upon such letter of credit to recover any fines or penalties assessed under this ordinance. Evidence of the execution of a letter of credit shall be submitted to the Gas Inspector by submitting an original signed letter of credit from the banking institution, with a copy of the same provided to the Town Secretary. 3) The principal amount of any security instrument shall be Fifty Thousand Dollars ($50,000) for any single well. If, after completion of a well, the Applicant/Operator, who initially posted a fifty thousand dollar ($50,000) bond, has complied with all of the provisions of this Ordinance and whose well is in the producing stage and all Drilling Operations have ceased, may submit a written request to the Gas Inspector for approval to reduce the existing bond to fifteen thousand dollars ($15,000) for the remainder of the time the well produces without reworking. During reworking operations, the amount of the bond or letter of credit shall be maintained at fifty thousand dollars ($50,000). An Operator drilling or reworking between one and five wells at any given time, may elect to provide a blanket bond Draft Jan. 8, 2009 46 or letter of credit, in the principal minimum amount of One Hundred Fifty Thousand Dollars ($150,000). If the Operator drills or reworks more than five wells at a time, the blanket bond or letter of credit shall be increased in increments of $50,000 per each additional well. Once the wells are in the producing stage and all Drilling Operations have ceased, the Operator may elect to submit a written request to the Gas Inspector for approval to reduce the existing bond and provide a blanket bond or letter of credit for the remainder of the time the well produces, without reworking, as follows: Blanket Bond/Letter of Credit Number of Producing Wells Amount Required Up to 75 wells $1,000,000 75 to 150 wells $2,000,000 More than 150 wells $5,000,000 If at any time after no less than a fifteen (15) day written notice to the Operator and a public hearing, the Town Council shall deem any Operator's bond or letter of credit to be insufficient, it may require the Operator to increase the amount of the bond or letter of credit up to a maximum of two hundred and fifty thousand dollars ($250,000) per well. 4) Whenever the Gas Inspector finds that a default has occurred in the performance of any requirement or condition imposed by this Ordinance, a written notice shall be given to the Operator. Such notice shall specify the work to be done, the estimated cost and the period of time deemed by the Gas Inspector to be reasonably necessary for the completion of such work. After receipt of such notice, the Operator shall, within the time therein specified, either cause or require the work to be performed, or failing to do so, shall pay over to the Town one hundred twenty-five (125) percent of the estimated cost of doing the work as set forth in the notice. In no event, however, shall the cure period be less than thirty (30) days unless the failure presents a risk of imminent destruction of property or injury to persons or unless the failure involves the Operator's failure to provide periodic reports as required by this Ordinance. The Town shall be authorized to immediately draw against any irrevocable letter of credit or bond to recover such amount due from the Operator. Upon receipt of such monies, the Town shall proceed by such mode as deemed convenient by the Town to cause the required work to be performed and completed, but no liability shall be incurred other than for the expenditure of Draft Jan. 8, 2009 47 said sum in hand. In the event that the well has not been properly abandoned under the regulations of the Commission, such additional money may be demanded from the Operator as is necessary to properly plug and abandon the well and restore the drill site in conformity with the regulations of this Ordinance. 5) In the event the Operator does not cause the work to be performed and fails or refuses to pay over to the Town the estimated cost of the work to be done as set forth in the notice, or the issuer of the security instrument refuses to honor any draft by the Town against the applicable irrevocable letter of credit or bond the Town may proceed to obtain compliance and abate the default by way of civil action against the Operator, or by criminal action against the Operator, or by both such methods. 6) When the well or wells covered by said irrevocable letters of credit or bond have been properly abandoned in conformity with all regulations of this Ordinance, and in conformity with all regulations of the Commission and written notice to that effect has been received by the Town, or upon receipt of a satisfactory substitute, the irrevocable letter of credit or bond issued in compliance with these regulations shall be terminated and canceled. Sec. 56­43.  Gas  Inspector.   a) The Administrator shall designate the Inspector(s) who shall enforce the provisions of this Article. The Inspector shall have the authority to issue any orders or directives required to carry out the intent and purpose of this Article and its particular provisions. Failure of any person to comply with any such lawful order or directive shall constitute a violation of this Article. b) The Gas Inspector shall have the authority to enter and inspect any premises covered by the provisions of this Article to determine compliance with the provisions of this Article and all applicable laws, rules, regulations, standards, or directives of the State. Failure of any person to permit lawful access to the Inspector or Fire Marshal shall constitute a violation of this Article. c) The Gas Inspector shall conduct inspections of all permitted wells in Draft Jan. 8, 2009 48 the Town to determine compliance with this Article and all regulations of the Commission. The Gas Inspector shall conduct periodic inspections at least once a year of all permitted wells in the Town to determine that the wells are operating in accordance within proper safety parameters as set out in this Ordinance and all regulations of the Commission. d) The Gas Inspector shall have the authority to request and receive any records, including any records sent to the Commission, logs, and reports relating to the status or condition of any permitted well related to the health, safety and operations of the well. Failure of any person to provide any such requested material shall be a violation of this Ordinance. Sec. 56­44.   Operator’s Agent.   Every Operator of any well shall designate an agent, who is a resident of the State of Texas, upon whom all orders and notices provided in this Article may be served in person or by registered or certified mail. Every Operator so designating such agent shall within ten (10) business days notify the Town Secretary in writing of any change in such agent or such mailing address unless operations within the Town are discontinued. Sec. 56­45.   Periodic Reports.   a) The Operator shall notify the Town of any change to the following information within one (1) business day after the change occurs. 1) The name, address, or phone number of the Operator; or 2) The name, address, or twenty-four (24) hour phone number of the person(s) with supervisory authority over drilling, production, or operations activities. b) The Operator shall notify the Town of any change to the following information within ten (10) business day after the change occurs. 1) The name, address, or phone number of the person designated to receive notices from the Town, which person must be a resident of Texas that can be served in person or by registered Draft Jan. 8, 2009 49 or certified mail; or 2) The Operator’s Emergency Action Response Plan including “drive-to maps” from public rights-of-way to each area covered by the applicable Gas Well Permit and associated Site Plan. c) The Operator shall provide a copy of any “incident reports” or written complaints submitted to the Commission or any other state or federal agency within fifteen (15) days after the Operator has notice of the existence of such reports or complaints. d) Beginning on December 31st after each well is completed, and continuing on each December 31st thereafter until the Operator notifies the Town that the well has been abandoned and the site restored, the Operator shall prepare a written report to the Town identifying any changes to the information that was included in the application for the applicable well permit that have not been previously reported to the Town. Sec. 56­46.   Transfer  of Gas  Well  Permits.  a) A Gas Well Permit may be transferred upon written request by the Operator with the consent of the Town: 1) If the transferee agrees to be bound by the terms and conditions of the current Gas Well Permit and the Road Repair Agreement; 2) If all information previously provided to the Town as part of the current well permit application is updated to reflect any changes; and 3) If the transferee provides the insurance and security required by this Article, and all permits, licenses, and fees due at the time of transference, including a well transference review fee as established by the Town Council by resolution. The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the Town. The transfer shall not relieve the transferor from any liability to the Town arising out of any activities conducted prior to the transfer. Draft Jan. 8, 2009 50 Sec. 56­47.   Cleanup and Maintenance.  a) Cleanup after well servicing. After the well has been completed or plugged and abandoned, the Operator shall clean the drill site or operation site, complete restoration activities and repair all damage to public property caused by such operations within sixty (60) days. b) Clean-up after spills, leaks and malfunctions. After any spill, leak or malfunction, the Operator shall remove or cause to be removed to the satisfaction of the Town Fire Chief and the Gas Inspector all waste materials from any public or private property affected by such spill, leak or malfunction. Clean-up operations must begin immediately. If the owner fails to begin site clean-up immediately the Gas Inspector or Fire Chief may then employ any cleanup expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which the Gas Inspector deems necessary to clean-up such spill, leak or malfunction. c) Free from debris. The public street entrance and property on which a well site is located shall at all times be kept free of mud, debris, pools of water or other liquids, contaminated soil, weeds, brush, trash or other waste material within a radius of one hundred (100) feet around any separators, tanks and producing wells. d) Painting. All production equipment shall be painted and maintained at all times, including wellheads, pumping units, tanks, secondary containment and buildings or structures. When requiring painting of such facilities, the Gas Inspector shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance. Paint shalt be of a neutral color, compatible with surrounding uses. Neutral colors shall include sand and unobtrusive shades of black or dark green. e) Blowouts. In the event of the loss of control of any well, Operator shall immediately take all reasonable steps to regain control regardless of any other provision of this Ordinance and shall notify the Gas Inspector as soon as practicable. The Gas Inspector shall certify in writing, briefly describing the same, to the Town Manager. If the Gas Inspector, in his opinion, believes that danger to persons and property exists because of such loss of well control and that the Operator is not taking or is unable to take all reasonable and necessary steps to regain control of such well, the Gas Inspector may then employ any well control expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which Draft Jan. 8, 2009 51 the Gas Inspector deems necessary to regain control of such well. The Town shall then have a valid lien against the interest in the well of all working interest owners to secure payment of any expenditure made by the Town pursuant to such action of the Gas Inspector in gaining control of said well. Sec. 56­48.  Plugged and Abandoned Wells.  a) Surface requirements for plugged and abandoned wells. 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 Ordinance. b) Abandonment shall be approved by the Gas Inspector after payment of an abandonment inspection fee and restoration of the drill site has been accomplished in conformity with the following requirements at the discretion of the Gas Inspector 1) The derrick and 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, wood, guy anchors and other foreign materials regardless of depth, except surface casing, shall be removed from the Drill Site, unless otherwise directed by the Commission; 4) All holes and depressions shall be filled with clean, compactable soil; 5) All waste, refuse or waste material shall be removed from the Drill Site; and 6) During abandonment, Operator shall comply with all applicable sections in this Ordinance. c) Abandoned well requirement. The Operator shall furnish the following to the Gas Inspector: Draft Jan. 8, 2009 52 1) A copy of the W-3A 'Notice of intention to Plug & Abandon' and 'W-3 Plugging Record' forms on the same date these forms are submitted to the Commission; and 2) Prior 48-hour notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated; 3) All wells shall be abandoned in accordance with the rules of the Commission; however, all well casings and cellars shall be cut and removed to a depth of at least three (3) feet below the surface. 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. 4) 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. Sec. 56­49.  Technical Advisor.  The Town may from time to time employ a Technical Advisor or advisors who are experienced and educated in the gas industry or the law as it pertains to gas matters. The function of such advisor(s) shall be to advise, counselor represent the Town on such matters relating to gas operations within the Town as the Town may want or require and the effect thereof, both present and future, on the health, welfare, comfort and safety of the citizens of the Town. In the event such Technical Advisor(s) is employed for the purpose of advising, counseling or representing the Town relative to an Operator's unique and particular set of circumstances, case or request relating to this Ordinance, then the cost for such services plus an administrative processing fee for such Technical Advisor(s) shall be assessed and paid for by such Operator in addition to any other fees or charges assessed pursuant to this Ordinance. Prior to the employment of a Technical Advisor, the Town shall inform the Operator of the intended scope of work and the estimated costs and expenses. The employment of a Draft Jan. 8, 2009 53 Technical Advisor shall be approved by the Town Manager. Sec. 56­50.  Remedies  of the Town.   a) If an Operator (or its officers, employees, agents, contractors, subcontractors or representatives) fails to comply with any requirement of a Gas Well Permit (including any requirement incorporated by reference as part of the permit), the Gas inspector shall give written notice to the Operator specifying the nature of the alleged failure and giving the Operator a reasonable time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. In no event, however, shall the cure period be less than 30 days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the Operator’s failure to provide periodic reports. The Gas Inspector may issue a Stop Work Order under the Fire Code. b) If the Operator does not cure the alleged failure within the time specified by the Gas Inspector, the Gas Inspector may notify the Commission and request that the Commission take appropriate action (with a copy of such notice provided to the Operator), and the Town may pursue any other remedy available. c) If the Operator does not cure the alleged failure within the time specified by the Gas inspector, the Gas Inspector may upon recommendation of the Town Manager: 1) Recommend to the Town Council that the lGas Well Permit be suspended until the alleged failure is cured; or 2) If the Operator fails to initiate and diligently pursue a cure recommend to the Town Council that the Gas Well Permit be revoked. d) The decision of the Gas Inspector to recommend suspension or revocation of a Gas Well Permit shall be provided to the Operator in writing at least ten (10) days before any action by the Board unless the alleged failure presents a risk of imminent destruction of property or injury to persons. Draft Jan. 8, 2009 54 e) If a Gas Well Permit is revoked, the Operator may submit an application for a new Gas Well Permit for the same well. Sec. 56­51.  Amended Well  Permits.  a) Amendments to Gas Well Permits may be approved by the Gas Inspector provided the well will be in strict conformance with the Gas Well Pad Site permit as approved and all applicable fees established by the Town Council by resolution have been paid. Sec. 56­52.  Re­working  of Well; Notice.  a) Any person who intends to re-work a well using a drilling rig or to fracture stimulate a well after initial completion shall give written notice to the Town at least twenty (20) days before the activities begin. The notice shall identify where the activities will be conducted and shall describe the activities in reasonable detail, including but not limited to the duration of the activities and the time of day they will be conducted. The notice must also provide the address and twenty-four (24) hour phone number of the person conducting the activities. The person conducting the activities shall post a sign, in English and Spanish, on the property giving the public notice of the activities, including the name, address, and twenty-four (24) hour phone number of the person conducting the activities. No well shall be re-worked without the approval of the Inspector. If the Gas Inspector determines that an inspection is required, the actual cost of the inspection shall be assessed against the respective Operator. All well Re-working shall require a well Re-working permit, the fee for which shall be established by the Town Council. Sec. 56­53.  Commission Permits; TCEQ . a) Any person who proposes the drilling and production of gas on a tract of land located within the corporate limits of the Town shall provide copies of all permits filed with the Commission at the time of the application for the Gas Well Permit. At a minimum, a copy of the W-1 and the W-1H, if applicable, filed with the Commission shall be submitted. b) Prior to approval of the Gas Well Permit, the Operator must submit the Draft Jan. 8, 2009 55 following: 1) Commission W-1 (Permit). A copy of the approved W-1 issued by the Commission. 2) Commission P-12 (Pooling Information). A copy of the P-12 filed by the Operator, if any part of the Gas Development Site will contain pooled or unitized leases, reflecting the unit participants and property boundaries. 3) A copy of the determination by the TCEQ of the depth of usable quality ground water. ARTICLE III.  OIL AND GAS PIPELINE STANDARDS     Sec. 56­54.  Purpose.   a) It is hereby declared to be the purpose of this Article to establish reasonable and uniform limitations, safeguards, and regulations for present and future operations related to transporting oil and gas and other substances produced in association with oil and gas, within the corporate limits of the Town to protect the health, safety and general welfare of the public; minimize the potential impact to property and persons; protect the quality of the environment; and encourage the safe and orderly transport of oil and gas resources. Sec. 56­55.   Definitions.   a) The words and phrases used in this Article are specifically defined in SECTION56-32 of this Article II. All technical industry words or phrases related to the transportation of oil, gas, hydrocarbons, and other substances produced in association with oil, gas and other hydrocarbons not specifically defined shall have meanings customarily attributable thereto by prudent Operators in the oil and gas industry. Sec. 56­56.   General  Requirements and Minimum Design Standards. (a) A pipeline permit is required as follows: Draft Jan. 8, 2009 56 1) It shall be unlawful for any person, acting either for himself or as an agent, employee, independent contractor or servant of any other person, to commence to construct, install, operate or reconstruct a pipeline or any section of a pipeline or to operate any pipeline or to assist in the construction, installation, operation or reconstruction of a pipeline if a lawful pipeline permit and/or license has not been first obtained. 2) Any applications to construct, lay, rework, wrap or otherwise lower or replace existing pipelines or install monitoring or recovery wells shall be submitted to the Town in a form prescribed by the Town. 3) Each application for a pipeline permit and/or license shall be accompanied by five (5) paper sets and one (1) electronic set of plans showing the dimensions and locations of the pipelines and related items or facilities within the subject right-of-way or easement, as well as all proposed lift stations, pumps or other service structures related to such pipeline and the location, type and size of all existing utilities, drainage, right-of-way and roadway improvements. The plans must additionally show the elevation and location of all known public utilities within fifteen feet (15’) of the centerline of the proposed pipeline. 4) Within thirty (30) days after the date of filing of said application and plans, the Town shall send notice to the applicant as to whether the application will be accepted for processing and the total charge due. If the application is rejected, reasons for rejection of the application shall be provided in writing. 5) No pipeline permit and/or license may be issued unless and until a Specific Use Permit (SUP)is approved by the Town Council for the well or wells within the Town, intended to be served by the pipeline. 6) No pipeline for the transportation of gas, oil or hydrocarbons from wells to be drilled shall be constructed or laid except on Town approved rights-of-way or easements owned by the Owners or Operators of wells or third party pipeline companies, or upon designated drilling tracts and upon rights-of-way or easements necessary to connect future wells to present lines. 7) In order to enable the holder of each pipeline permit and/or license to move gas, oil, water or other products to or from the Draft Jan. 8, 2009 57 location of a well, the holder of each pipeline permit shall apply to the Town for an easement on, over, under, along or across the Town streets, sidewalks, alleys and other Town property for the purpose of constructing, laying, maintaining, operating, repairing, replacing and removing pipelines so long as production or operations may be continued under any pipeline permit issued pursuant to this Article; provided, however, such permittee shall: a. Not interfere with or damage existing utilities including but not limited to: water, sewer or gas lines, storm drains, electric lines or the facilities of public utilities located on, under or across the course of such right-of- way. b. Furnish to the Inspector a Site Plan showing the location of such pipelines for the transport of gas, oil or hydrocarbons. Said Site Plan shall conform to the Town’s standards for Site Plans, contained in the Zoning Ordinance, as amended. c. Construct such lines or cause same to be constructed out of new pipe. d. Grade, level and restore such property to the same surface condition, as nearly practicable, as existed before operations were first commenced. 8) All required agreements pursuant to this Article shall be completed, reviewed, and resolved by the Town Engineer, Town Attorney, Town Manager, Administrator, and, by Town Council, prior to the determination of any pipeline permit as being administratively complete. 9) Pipeline trenches shall be backfilled and compacted to ninety five percent (95%) standard density proctor in eight inch (8”) lifts and pipelines shall be constructed so as to maintain a minimum depth of eight feet (8’) below the finished grade except in public rights- of-way, where minimum cover to the top of the pipe shall be at least eight feet (8’) below the bottom of any adjacent roadside ditch. Public roads shall not be crossed by open cut. During the backfill of any pipeline excavations, ‘Buried Pipeline” warning tape shall be buried one foot (1’) above any such pipeline to warn future excavators of the presence of a buried pipeline. Draft Jan. 8, 2009 58 10) In all cases in which one or more residential lots in a proposed subdivision are crossed or come by or come within one hundred feet (100’), of any existing oil or gas pipeline or pipeline easement, the subdivider shall, prior to and as a condition of Town approval of the subdivision, execute the following waiver and hold harmless agreement, which shall be duly acknowledged in the manner provided by law, and which shall thereafter be recorded in the appropriate deed or other permanent county records: a. “(Subdivider Name), by and through its duly undersigned and authorized officer, does hereby state that it fully realizes that it is applying for a permit from the Town of Westlake to build within one hundred feet (100’) of an existing oil or gas pipeline or pipeline easement, and that the Town of Westlake considers building near such pipeline or pipeline easement to have certain inherent dangers, including, but not limited to, explosion and release of noxious, toxic and flammable substances. For the aforementioned reasons (Subdivider Name) hereby RELEASES and agrees to forever HOLD HARMLESS the Town of Westlake, Texas, its officers, officials, employees, successors and assigns from all liability in any way arising from the building, use or habitation of (structure described in the said permit).” 11) In all cases in which one or more residential lots in a proposed subdivision are crossed or come by or come within one hundred feet (100’) of any existing oil or gas pipeline or pipeline easement, the subdivision shall provide a note on the face of the development plan and record plat stating that the subdivision is crossed or is located within one hundred feet (100’) of an existing oil or gas pipeline. 12) Construction, repair and/or maintenance of all pipelines, gathering lines, and production lines shall meet or exceed the minimum criteria established by the statutory or regulatory requirements of the state and federal governments for oil and gas pipelines. 13) Pipelineswithin the Town limits shall be constructed in accordance with this Article and shall be designed and constructed to the latest standards mandated by the United States Department of Transportation (DOT) and Railroad Draft Jan. 8, 2009 59 Commission for pipelines operating within a Class 3 location in accordance with 49 CFR 1 92. 111. 14) Pipelines subject to this Division shall be constructed with an automated pressure monitoring system that detects leaks and shuts off any line or any section of line that develops a leak. In lieu of such system, the pipeline Operator may have 24 hour pressure monitoring of the pipeline system which provides monitoring of the pipeline within the Town limits. Any monitoring system(s) shall be keyed to or required to notify the Town’s emergency response providers in order to provide them with immediate notice of any leak. 15) Construction of the pipeline must commence within six (6) months of approval by the Town or otherwise the pipeline permit expires. A one-year extension of time may be granted if existing conditions are the same, as determined by the Director of Planning and Development Services. Once construction has commenced, the pipeline permit shall continue (i) until the pipeline covered by the pipeline permit is complete and the site restored, or (ii) one year has elapsed since the approval date of the pipeline permit, whichever occurs first. 16) The Administrator may require that sections of proposed pipeline be constructed at deeper depths based upon future Town infrastructure needs. The Administrator may also require that a pipeline relocated should it conflict with the proposed alignment and depth of a gravity dependent utility. Sec. 56­57.  New Pipeline Permit/License Application.     a) At least forty-five (45) days prior to the scheduled commencement of the construction of a new pipeline, the pipeline Owner or Operator shall submit an application and pay a fee, as shown in the approved fee schedule, for a pipeline permit and/or license to the Town pursuant to its intention to construct the pipeline. A permit shall be required for any new pipeline constructed in the Town. A license shall be required for any pipeline proposed to cross a street, roadway, alleyway, easement or right-of-way in the Town. All pipeline permits and licenses shall be subject to annual review and renewal fees. The Owner and/or Operator shall submit the following information in the application for a pipeline permit and/or license: Draft Jan. 8, 2009 60 1) The name, business addresses and telephone numbers of the pipeline Owner or Operator. 2) The names, titles and telephone numbers of the following: a. The person submitting the application and petition for the pipeline construction; b. The person designated as the principal contact for the submittal; c. The person designated as the twenty-four hour emergency contact; and d. The person or firm that will operate the pipeline. 3) A map showing the origin point and the destination of the segment of the pipeline to be constructed as well as the location of all Habitable Structures located within 500’ of the pipeline route. 4) A text description of the general location of the planned pipeline. 5) A description of the substance to be transported through the pipeline. 6) A copy of the substance material safety data sheet (MSDS). 7) The maximum allowable operating pressure on the pipeline, along with the Specified Minimum Yield Strength (SMYS) of the pipe, its pressure class, and design calculations in accordance with 49 CFR 192.105, assuming a Class 3 or better location. 8) The normal operating pressure range of the pipeline, not to exceed the maximum allowable operating pressure as designated above. 9) Engineering plans, drawings and/or maps with summarized specifications showing the horizontal pipeline location, pipeline covering depths, and location of shutoff valves (the location of shutoff valves must be known in order for emergency responders to clear area for access valves.) To the extent that information can be obtained, drawings shall show the location of other pipelines and utilities that will be crossed or paralleled within fifteen (15’) feet of the proposed pipeline right-of-way. Draft Jan. 8, 2009 61 10) A description of the consideration given to matters of public safety and the avoidance, as far as practicable, of existing inhabited structures and congregated areas. 11) Detailed cross section drawings for all public street right- of-way and easement crossings. 12) Methods to be used to prevent both internal and external corrosion. 13) A binder or certificates of all bonds and insurance as required under this Division. 14) All application materials required pursuant to the Town’s Tree Preservation Ordinance, as it may be amended, including a tree survey measured from the outer edge of any improvements, construction areas, development, equipment, materials, temporary roads, access easements, and/or built structures, extending twenty-five (25) feet, without regard to intervening structures or objects. 15) A proposed alignment strip map showing name and address of all affected property owners. 16) The application for a pipeline permit and/or license is approved and a permit and/or license is issued, the pipeline Owner or Operator shall at all times be required to maintain a fund with the Town containing a minimum running balance of fifteen thousand ($15,000.00) dollars for each permit application approved. The funds shall be maintained by the Town in a separate non-interest bearing account from which the Town shall reimburse itself for the administrative expenses, consulting fees, contracting fees or the funding of Inspector position(s). The Town shall invoice and notify the pipeline Owner or Operator, in writing, of any deduction from the application fund, and, within fifteen (15) days of receipt thereof, the pipeline Owner or Operator shall pay to the Town, for deposit into the application fund, the amount necessary to return the balance to fifteen thousand ($15,000.00) dollars. The Town shall return the remaining account balance to the applicant or the applicant’s approved assign if the pipeline subject to the pipeline permit and/or license is disconnected from all sources or supplies of gas, hazardous liquids and chemicals, and if capped or sealed at the ends and/or removed in accordance with the provisions of this Article. No pipeline Draft Jan. 8, 2009 62 permit and/or license shall be issued if the proposed activities are not in conformance with this Article and all other applicable Town ordinances, state and federal law. Sec. 56­58.  Permit and/or License Approval. a) The applicant shall submit an application as described in this Article. Any application submitted that is determined to be administratively incomplete shall be returned to the applicant within ten (10) business days of the submittal date along with a letter documenting the deficiencies of the application, if any. b) After the submission of an administratively complete application, an administrative conference may be conducted to seek resolution of any substantive, nonresolvable technical issues. The conference shall be conducted with the Pipeline Review Committee., and, if necessary, the Town’s Technical Advisor. The costs associated with the Technical Advisor shall be borne by the applicant. A quorum of at least three (3) members must be present to conduct a conference with at least one (1) of the members present at the conference having emergency management expertise. Any decision by the Pipeline Review Committee is final. c) From time to time the Town may need to obtain an independent study or analysis of an application or petition to construct a new pipeline. The Town, upon approval by the Town Manager, after recommendation by the Pipeline Review Committee, shall engage duly qualified independent consultant(s) or contractor(s) to conduct such special studies or analyses as required to fully evaluate and act upon an application for a new pipeline. The actual cost for said consultant or contractor, including the cost of any inspections deemed necessary by the Pipeline Review Committee, all administrative processing fees, or fees otherwise required by this Ordinance, shall be billed directly to the pipeline Owner or Operator’s fund balance established pursuant to this Article. d) The pipeline Owner or Operator shall give notice forty-eight (48) hours prior to the commencement of pipeline construction to all residents and business establishments that are located within five hundred feet (500’) of the proposed centerline of the pipeline. e) Upon completion of pipeline construction the pipeline Owner or Operator shall provide the Town with as-built or record drawings of the Draft Jan. 8, 2009 63 pipelines within sixty (60) calendar days. Accuracy of the record drawings shall meet a survey level of one foot (1’) to fifty thousand feet (50,000’). The scale of the record drawings shall be a minimum of 1” = 40’. The drawings shall also be supplied in as DFF digital file format with the location tied to one (1) nearby GPS (global positioning system), Town monument. If the new pipeline length exceeds one thousand feet (1,000’) within the Town the pipeline shall be tied to at least two (2) GPS Town monuments. f) Any change in service of a pipeline not previously addressed by this Article to gas, hazardous liquid or chemical service must be reviewed in accordance with the new pipeline review procedure outlined herein, as if it were new pipeline construction. g) A preconstruction conference with the Pipeline Review Committee shall be required prior to the commencement of pipeline construction. Sec. 56­59.   Public Education. a) In keeping with the Natural Gas Pipeline Safety Act of 1968 and 49 CFR 192.614, “Damage Prevention Program,” 49 CFR 192.615, “Emergency Plans,” the Hazardous Liquids Safety Act of 1979, and 49 CFR 195.408, “Communications,” 49 CFR 195.440, “Public Awareness,” and the Community Right-to-Know Act, 40 CFR Parts 350-374: b) Each pipeline Owner or Operator shall maintain a public education program that is communicated to residents and business establishments within one thousand feet (1,000’) of the centerline of a pipeline. c) Pipeline information communicated pursuant to subSECTION(1) shall contain the following subjects: 1) Pipeline location; 2) Material transported within the pipeline; Pipeline markers; 3) How to recognize a pipeline; Draft Jan. 8, 2009 64 4) How to report a pipeline emergency; 5) Contact information regarding underground utility ocations; 6) Additional requirements for excavations near a home or business; and 7) Response needs during a pipeline, emergency, including instructions for sheltering in the event of an emergency. d) Public education information shall be communicated at least annually in both English and Spanish. e) The Town shall notify all property owners within one thousand feet (1,000’) of the proposed pipeline, in writing, by U.S. regular mail, of the proposed construction date of the pipeline. The actual cost of said notice shall be billed directly to the pipeline Owner or Operator’s fund balance established pursuant to SECTION56-309(b), of this Article. Sec. 56­60.  Pipeline Information Reporting Requirements. (a) Each pipeline Owner or Operator shall provide to the Inspector, the Fire Marshal, and the Police Chief the names, mailing addresses and telephone numbers of at least two (2) primary persons, officers or contacts available on a twenty-four hour basis and at least two (2) alternative persons, officers or contacts to be reached in the event that the primary contacts are unavailable who: (1) Can initiate appropriate actions to respond to an emergency; (2) Have access to information on the location of the closest shutoff valve to any specific point in the Town; and (3) Can furnish the common name of the material then being carried by the pipeline. Any change in the above information must be provided to the Town by contacting the Inspector prior to such change. (b) Every Owner or Operator of a pipeline subject to this Article shall be required to present to the Town a safety report and file with the Town an annual verified safety report in letter form on or before June 30 of each year to cover a reporting period of June 1 through May 31. Said written safety report shall contain the following information and said information shall be presented to the Inspector by every Owner or Operator of a pipeline subject to this Article: (1) A statement that the pipeline has no outstanding safety violations as determined in an inspection or audit by either the Railroad Commission and/or the U.S. Department of Transportation with regard to any pipeline operating within the Town. Alternatively, if there are any safety violations as Draft Jan. 8, 2009 65 determined by the Railroad Commission and/or the U.S. Department of Transportation that have not been corrected, these shall be described to the Town with a specific action plan to correct the safety violations. Said action plan shall include a timeline for corrective action and the individual or firm responsible for each action. (2) Evidence that the pipeline Owner or Operator has current liability insurance covering each respective pipeline in the minimum amount of five million dollars ($5,000,000.00). Insurance carriers must be licensed to conduct business in the state and possess at least an “A” rating by the A.M. Best Company. (3) A statement that the pipeline information specified in this Article is correct. Alternatively, in the event that the required information on file with the Town is no longer correct, updated or corrected information shall be submitted within five (5) calendar days of the change and the updated information shall be submitted with the annual safety report. (4) Owners or Operators of any Unregulated Pipeline who have no reporting responsibility to the Railroad Commission or the U.S. Department of Transportation and who may otherwise operate outside the safety regulations of either of these agencies shall additionally provide the following pertaining to the preceding reporting period of June 1 through May 31: a. Copies of internal reports of responses to pipeline emergencies, as pipeline emergency is defined in this Article; b. Current operations and maintenance logs; and c. Current emergency action plan. (5) A log of all the maintenance and monitoring activities conducted on all lines subject to this Article for the reporting period shall be made available upon request by the Town. (6) The designated Owner or Operator shall submit an annual safety report, along with the safety report review fee established by the Town Council, with respect to each pipeline subject to the this Ordinance or any other ordinances of the Town of Westlake. The safety report and verification shall be executed by an officer or a person who is authorized to sign such safety report letter and make verification. The prescribed form of verification on the safety report letter shall read: Verification I, NAME, TITLE, of OWNER/OPERATOR, am authorized to make and have made the foregoing annual safety report letter to the Town for oil and gas pipelines. Any attachments made to this letter are true and correct copies of originals and the information provided in this letter is true and correct to the best of my knowledge and is information based on the standard of inquiry and investigation as would be made by a reasonably prudent pipeline Owner or Operator within the Town of South lake. Signature of Officer or Person Authorized to Sign Letter Draft Jan. 8, 2009 66 STATE OF TEXAS § COUNTY OF [Place Where Safety Letter is Prepared] § The foregoing annual safety report letter was sworn to and subscribed before me by (signatory of letter) on this ____ day of ________,20___ Signed: Notary Public for the State of Texas Printed Name: __________________________ My Commission Expires: _______________ Ordinance No. 880 A 49 (7) The actual administrative costs incurred by the Town in reviewing the annual safety letter shall be billed directly to the pipeline Owner or Operator’s fund balance established pursuant to SECTION56-309(b), of this Article. (8) A copy of all initial or follow-up reports provided to the U.S. Department of Transportation or the Railroad Commission on unsafe pipeline conditions, pipeline emergencies or pipeline incidents within the Town must be filed concurrently with the Town. In addition, any initial or follow-up reports filed with state and federal environmental regulatory agencies pertaining to pipeline releases within the Town must be filed concurrently with the Town. (9) Upon written request, the pipeline Owner or Operator shall make available during normal business hours and at the pipeline Owner or Operator’s local office, documents for review that are required for submittal to or to be maintained on file for the U.S. Department of Transportation and the Railroad Commission such as: a. Operations and maintenance; b. Employee training; c. Annual inspection; d. Repair records; e. Operating records; and f. Insurance. In the case of unregulated pipelines, the Town may request any such additional information that the Town deems necessary, in the best interests of the Town, and necessary to protect the public health, safety and general welfare. Sec. 56­61.   Pipeline Markers. (a) In accordance with U.S. Department of Transportation and Railroad Commission requirements, pipeline Owners or Operators shall place and maintain permanent line markers as close as practical over the pipeline(s) at Draft Jan. 8, 2009 67 each crossing of a public street, utility easement or railroad. Marker(s) shall also be maintained along each pipeline that is located above ground in an area accessible to the public. The markers shall be of permanent type construction and contain labeling identifying the: (I) Pipeline Owner or Operator; (2) Twenty-four-hour contact telephone number; and (3) A general description of the product transported in the pipeline; i.e., natural gas, oil, petroleum. (b) No person shall tamper with, deface, damage or remove any pipeline marker, except the pipeline Owner or Operator. (c) Upon specific reasonable request of the Owner of a real property on which a residence is located and through which a pipeline traverses, the pipeline Owner or Operator shall install temporary pipeline markers or flagging to reduce the possibility of pipeline damage or interference, in accordance with this Article. (d) The material, design, color, size and content of each line marker shall subject to Town Council approval prior to installation. Sec. 56­62.   One Call System    (a) The Owner or Operator of any pipeline that transports gas, oil, liquids or hydrocarbons that is located in the Town shall be a member in good standing with the One Call system or other approved excavation monitoring system as required by State law. The Owner or Operator of any pipeline that transports gas, oil, liquids or hydrocarbons subject to this Article shall contract for service with the selected underground utility coordinating system for a minimum of five (5) years unless there is an agreement to change to an alternate system between the Town and the pipeline Owners or Operators. Said services shall be maintained without interruption for the life of the pipeline permit and/or license. The selected underground utility coordinating system may be different that the one used by the Town for other underground utility services. (b) Prior to beginning any excavation, trenching or digging using powered equipment or hand tools that may damage a pipeline, any person within the Town shall be required to contact the One Call System and any other appropriate underground utility coordinating systems and determine if there are any pipelines or public utilities in the vicinity of the proposed activities. (c) If physical contact is made with a pipeline during any excavation, trenching or digging, the pipeline company must be notified by the person or agency making the physical contact with the pipeline for any necessary pipeline inspection or repair. Draft Jan. 8, 2009 68 Sec. 56­63.  Inactive and Idled Pipelines. (a) Inactive Pipelines (1) All reporting records specified in this Article shall be maintained and kept current on inactive pipelines. An application to place a pipeline into inactive status must made to the Town and permit issues, with the permit fee paid, prior to placing the pipeline into inactive status. (2) Inactive pipelines shall be purged of gas, hazardous liquids, and chemicals, and physically isolated if such action does not adversely affect the pipeline Owner or Operator’s right-of-way easement and does not prevent the pipeline Owner or Operator from maintaining the physical integrity of the pipeline. These pipelines shall be maintained to prevent deterioration. (3) The means used to physically isolate, if such action is taken, the inactive pipeline shall be included in the information retained on file with the Town for reporting as specified in this Article.. (b) Idled Pipelines (1) An entry shall be made to the required reporting records, as required in this Article that the pipeline has been idled An application to place a pipeline into idled status must made to the Town and permit issues, with the permit fee paid, prior to placing the pipeline into idled status. (2) Idled pipelines shall be purged, disconnected from all sources or supplies of gas, hazardous liquids and chemicals, and capped or sealed at the ends. (3) Reactivation of idled pipelines shall require notification of the Town pursuant to the standards and requirements specified in SECTION56- 311. Reactivation shall require pressure testing for integrity and compliance with Railroad Commission and/or United States Department of Transportation regulations. Sec. 56­64.   Emergency Response Plans and Emergency Incident  Reporting.  (a) Each pipeline Owner or Operator shall maintain written procedures to minimize the hazards resulting from an emergency. These procedures shall at a minimum provide for: (1) Prompt and effective response to emergencies: a. Leaks or releases that can impact public health, safety or welfare; b. Fire or explosions at or in the vicinity of a pipeline or pipeline easement; or c. Natural disasters; (2) Effective means to notify and communicate required and pertinent Draft Jan. 8, 2009 69 information to local fire, police, and public officials during an emergency; (3) The availability of personnel, equipment, tools and materials as necessary at the scene of an emergency; (4) Measures to be taken to reduce public exposure to injury and probability of accidental death or dismemberment; (5) Emergency shut down and pressure reduction of a pipeline; (6) The safe restoration of service following an emergency or incident; (7) A follow-up incident investigation to determine the cause of the incident and require the implementation of corrective measures. (b) Each pipeline Owner or Operator shall meet annually with the Inspector and Fire Marshal to review emergency response plans. These reviews shall be in accord with U.S. Department of Transportation and Railroad Commission requirements and the Owner or Operator will: (1) Furnish or update a copy of the emergency response plan described in this Article; (2) Review the responsibilities of each governmental organization in response to an emergency or incident; (3) Review the capabilities of the pipeline Owner or Operator to respond to an emergency or incident; (4) Identify the types of emergencies or incidents that will result in or require contacting the Town; and (5) Plan mutual activities that the Town and the pipeline Owner or Operator can engage in to minimize risks associated with pipeline operation. (6) At this meeting, the Town shall provide the pipeline Owner or Operator with a list of additional contacts that shall be made in the event of a pipeline emergency or incident. The Town will inform the pipeline Owner or Operator of the emergency response groups that will be contacted through 911. (c) Upon discovery of a pipeline emergency or incident, the following communications are to be initiated by the affected pipeline Owners or Operators: (1) A general description of the emergency or incident; (2) The location of the emergency or incident; (3) The name and telephone number of the person reporting the emergency or incident; (4) The name of the pipeline Owner or Operator; (5) Whether or not any hazardous material is involved and identification of the hazardous material so involved; and (6) Any other information as requested by the emergency dispatcher or other such official at the time of reporting the emergency or incident. (d) The pipeline Owner or Operator shall contact any other emergency response groups that are necessary that may not be activated through the Draft Jan. 8, 2009 70 county 911 system. (e) The pipeline Owner or Operator shall contact the Westlake Department of Public Safety immediately after the discovery of any pipeline emergency. (0 Notwithstanding any provision in this Article, each pipeline, containing natural gas which contains hydrogen sulfide in concentrations of more than one hundred (100) parts per million, shall be constructed with an audible alarm system that will provide an alarm to the general public in the event of a leak from any pipeline, gathering or flow line subject to this Article. Said audible alarm system shall be of a type and design approved by the Town. (g) Within two (2) years of the effective date of the pipeline permit and every two (2) years thereafter, the pipeline Owner or Operator shall conduct an on-site, emergency drill that includes, but shall not be limited to, the personnel operating the pipeline, local law enforcement personnel, and officials of the Town. (h) Notwithstanding the foregoing, all incidents involving well safety or integrity that do not rise to the level of a pipeline emergency shall additionally be reported to the Town by completing an incident report on forms prepared by the Town. Incident reports must be filed by the pipeline Owner or Operator within twenty-four (24) hours of discovering the incident. Sec. 56­65.   Pipeline Repairs  and Maintenance.   (a) All repairs and maintenance are to be performed in accordance with U.S. Department of Transportation and Railroad Commission mechanical integrity requirements. This requirement applies to all pipelines covered by this Article, unregulated as well as those operating under federal rules. (b) If non-emergency repairs necessitate excavation of the pipeline, prior notification is required to occupants of business establishments and residential dwellings located within five hundred feet (500’) from the centerline of the pipeline to be excavated. (c) Above-ground non-emergency repairs that are not routine maintenance necessitate prior notification to occupants of businesses and residential dwellings located within five hundred feet (500’) from the centerline of the pipeline section to be repaired. (d) Without limitation of the methods of giving the notice required in subsections (b) and (c), notice shall be by U.S. regular mail, postage prepaid mailed at lease five (5) days prior to commencing any non-emergency repair. (e) Inspection of the interior of all pipelines subject to these standards shall Draft Jan. 8, 2009 71 follow United States Department of Transportation and Railroad Commission rules. Sec. 56­66.  No Grant of Town  Easement, No Assumption of Responsibility  by  Town.     (a) Nothing in this Article grants permission for the use of any street, way or property of the Town, and any such use shall be subject to the Town at its sole discretion. (b) Nothing in this Article shall be construed as an assumption by the Town of any responsibility of an Owner or Operator of a pipeline not owned by the Town, and no Town officer, employee or agent shall have authority to relieve an Owner or Operator of a pipeline from their responsibility under this Article or by any other law, ordinance or resolution. Sec 56­67.   Protection and Painting of Structures.  All pipeline risers and all appurtenances related to pipeline construction and operations composed of materials generally protected or painted shall be protected and painted and shall be repainted at sufficiently frequent intervals to maintain same in good condition. It shall be a violation of this Article for any pipeline riser and/or appurtenances related to pipeline construction and operations to be in a state of disrepair or to have chipped, peeling or unpainted portions thereof. Sec. 56­68.   Waiver/Hold  Harmless Agreement Required for Issuance of  Building Permit.     Any person, firm or corporation wishing to obtain a building permit for the erection, construction, reconstruction or expansion of any structure, of which any portion of such erection, construction, reconstruction or expansion would occur within one hundred feet (100’) of an existing oil or gas pipeline or pipeline easement, shall, prior to and as a condition of the issuance of such building permit, execute the following waiver and hold harmless agreement, which shall be duly acknowledged in the manner provided by law, and which shall thereafter be notarized and recorded in the appropriate deed or other permanent county records: Draft Jan. 8, 2009 72 “I, (Applicant’s Name), do hereby state, on my oath, that I fully realize I am applying for a permit from the Town of Westlake to build within one hundred feet (100’) of an existing oil or gas pipeline easement; that I am fully aware of the dangers inherent in building near such pipeline or easement, including, but not limited to, explosion and release of noxious, toxic and flammable substances; and, further, that I do hereby RELEASE and agree to forever HOLD HARMLESS the Town of Westlake, Texas, its officers, officials, employees, successors and assigns from all liability in any way arising from the building, use or habitation of the structure described in the said permit.” Sec. 56­69.   Street  and Right­of­way Use.   (a) In the event an oil or gas pipeline is placed within any public right-of- way under the jurisdiction of the Town, the Owner/Operator shall comply with the right-of- way use regulations as provided in the Town of Westlake Code of Ordinances and obtain an appropriate franchise or license for the use of such right-of-way. (b) To the extent that the provisions of this Article conflict with the Town’s right-of-way use ordinance, this Article shall apply. Sec. 56­70.   Violations. (a) Any pipeline Owner or Operator subject to this Article, who shall have failed to comply with this Article, shall be deemed to maintain a nuisance and the Town may take such measures to remedy such nuisance, including, but not limited to, revocation of the pipeline Owner or Operator’s pipeline permit and/or license. (b) It shall be a violation of this Article for a person to knowingly make a misrepresentation of any information to be reported pursuant to this Article. It shall also be a violation of this Article if the person makes such misrepresentation as a result of failure to exercise such due diligence of investigation or inquiry, as would a reasonably prudent pipeline Owner or Operator conducting business in the jurisdiction of the Town. (c) Each violation of any section, subsection or part of this Article shall be a separate offense. Each day of on-going violation shall be a separate offense, and shall carry with it a fine of not less than one thousand dollars ($1,000.00) per day nor more than two thousand dollars ($2,000.00) per day. (d) The Town shall be entitled to injunctive relief or any other appropriate relief in a court of appropriate jurisdiction to prevent violation of or to Draft Jan. 8, 2009 73 compel compliance with this Article. Sec. 56­71.  Bond and Insurance Required.   (a) In the event that a pipeline permit and/or license is issued for a pipeline or other operations under this Article, no actual operation shall be commenced until the permittee shall file with the Town Secretary a bond and a certificate of insurance as follows: (1) No person shall begin the construction or operation of any pipeline until he has filed with the Town Secretary a duly executed bond executed by the applicant as principal with an AM Best “A” rated surety company that is acceptable to the Town and is licensed to conduct business in the State as surety, payable to the Town and the policy shall name the Town as an additional insured and such surety company shall maintain an A.M. Best “A” rating for the policy period. Said bond shall include conditions that the applicant, its heirs, assigns and successors will do the following: a. Comply with the terms and conditions of the application and this Article in the construction, operation and maintenance of the pipeline and related structure(s). b. That all streets and sidewalks and all other public places and all public utilities that may be injured or damaged in the operation will be restored to their former condition. c. That all litter, machinery, buildings, trash, and waste used, accumulated or allowed in the construction of any pipeline will be removed within ten (10) days of the completion of said construction. d. That all litter, machinery, buildings, trash, and waste used, accumulated or allowed in the operation of any pipeline will be removed within (10) days of the completion of said operations. e. Such bond shall be in the sum of $1,000,000.00 and before the pipeline permit and/or license shall be issued, the bond shall be approved by the Town and filed with the Town Secretary. Such bond shall become effective upon the granting of the pipeline permit and/or license and shall remain in full force and effect until all work under the terms of such pipeline permit and/or license has been completed. Such bond may later be amended to include other pipelines, under provisions of other applications, or other permits. (2) In addition to the bond required in this Article above, each person desiring to construct a pipeline or to conduct any other work under the provisions of this Article shall be required to carry public liability insurance with a carrier rated “A” or better by A.M. Best in a minimum amount of $1,000,000.00 for one person and $5,000,000.00 for one accident and property damage insurance in the amount of $10,000,000.00 for one accident, which shall remain in full force and effect and be carried so Draft Jan. 8, 2009 74 long as such pipeline is operated. A certificate of insurance shall be furnished annually by the permittee or the subsequent Owner and Operator of such pipeline showing that such insurance is and continues in effect. (3) Permittee shall provide and maintain in full force and effect during the term of its permit insurance with the following minimum limits: a. Worker’s compensation at statutory limits; b. Employer’s liability, including bodily injury by accident and by disease, for $500,000.00 combined single limit per occurrence and a twelve-month (12- month) aggregate policy limit of $1,000,000.00; c. Commercial general liability coverage, including blanket contractual liability, products and completed operations, personal injury, bodily injury, broad form property damage, operations hazard, pollution, explosion, collapse and underground hazards for $5,000,000.00 per occurrence and a twelve-month (12-month). aggregate policy limit of $10,000,000.00; and d. Automobile liability insurance (for automobiles used by the permittee in the course of its performance under the pipeline permit and/or license, including employer’s non-ownership and hired auto coverage) for $2,000,000.00 combined single limit per occurrence. (b) The Town shall adjust the above minimum liability limits every five (5) years during the term of the pipeline permit and/or license, or sooner as determined by the Town Council, to compensate for the effects of inflation and with the objective to reestablish the value of coverage required as of the effective date of this Article. (c) Each policy or an endorsement thereto, except those for worker’s compensation and employer’s liability, shall name the Town and its officers, officials, employees, successors and assigns as additional insured parties, but limited to risks indemnified pursuant to this Article. If any such policy is written as “claims made” coverage and the Town is required to be carried as an additional insured, then the permittee shall purchase policy period extensions so as to provide coverage to the Town for a period of at least two (2) years after the last date that the pipeline permit and/or license is in effect. No deductible shall exceed ten percent (10%) of the minimum limits of liability or one percent (1%) of the consolidated net worth of the permittee and its permitted affiliates, whichever is greater. (d) Permittee shall assume and bear any claims or losses to the extent of deductible amounts and waives any claim it may ever have for the same against the Town and its officers, officials, employees, successors and assigns in respect of any covered event. (e) All such policies and certificates shall contain an agreement that the insurer shall notify the Town in writing not less than thirty (30) days before any material change, reduction in coverage or cancellation of any policy. Permittee shall give written notice to the Town within five (5) days of the date upon which total claims by any party against permittee reduce the aggregate amount of coverage below the amounts required by the pipeline Draft Jan. 8, 2009 75 permit and/or license. (f) Each policy must contain an endorsement to the effect that the insurer waives any claim or right in the nature of subrogation to recover against the Town, its officers, officials, employees, successors and assigns. (g) Each policy must contain an endorsement that such policy is primary insurance to any other insurance available to the Town as an additional insured with respect to claims arising thereunder. (h) The Town Council may modify the requirements of this SECTION56-323, as it deems appropriate, in order to account for the risk and possible threat to the public health, safety and general welfare posed by the operation of pipelines within the Town. Sec. 56­72.  Termination  of Permit  and/or license.   Any violation of the provisions of any or all sections of this Article shall be grounds for the termination of any pipeline permit and/or license. The termination of any oil and gas pipeline permit and/or license shall require the immediate cessation of all operations subject to the pipeline permit and/or license and shall require the pipeline Owner or Operator to reapply for a new pipeline permit and/or license in full accordance with the provisions of this Article. SECTION 3: This Ordinance shall be cumulative of all provisions of ordinances of the Town of Westlake, Texas, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. SECTION 4: It is hereby declared to be the intention of the Town Council that the phrases, clauses, sentences, paragraphs and sections of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the Town Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION5: Draft Jan. 8, 2009 76 Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Two Thousand Dollars ($2,000.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. SECTION 6: The Town Secretary of the Town of Westlake is, upon adoption by the Westlake Town Council, ishereby directed to publish the proposed ordinance by caption and, if this Ordinance provides for the imposition of any penalty, fine or forfeiture for any violation of any of its provisions, then the Town Secretary shall additionally publish this ordinance or its caption and penalty in the official Town newspaper one time within ten days after final passage of this Ordinance. SECTION7: This Ordinance shall be in full force and effect from and after its passage and publication as required by law, and it is so ordained. PASSED AND APPROVED ON THIS ____ DAY OF ____ 2009. _________________________________ Laura Wheat, Mayor ATTEST: ___________________________ ________________________________ Kim Sutter, TRMC, Town Secretary Thomas E. Brymer, Town Manager Draft Jan. 8, 2009 77 APPROVED AS TO FORM: __________________________________ Stan Lowry, Town Attorney 2/5/2009 1 Proposed Technical Standards Ordinance and Related Matters Pertaining to Oil and Gas Drilling and Production January 12, 2009 2/5/20091 `Current Regulations `Have worked on updating for over a year `CouncilDirection –May ‘08`Council Direction May 08 `Staff work since that time `Oct ‘08 Council Workshops –Direction to staff `Nov ’08 –Public information meeting ‘08 &bldd`Dec ‘08 –P&Z tabled zoning amendment `Extensive use of newsletter, website, email blasts to inform public of status 2/5/20092 2/5/2009 2 1 ZoningOrdinance1.Zoning Ordinance 2.Technical Standards Ordinance a.Gas well drilling and production b.Pipelines 2/5/20093 First Prong -Zoning `Zoning = land use `Whatzoningdistrictsoilandgasdrilling/productioncanbe`What zoning districts oil and gas drilling/production can be conducted in? `Staff recommendation: oil and gas drilling/production in all zoning districts, but ONLY with an approved SUP. `What’s an SUP? (specific use permit) `What is it exactly? “AitddbthP&ZCiiddbthT 2/5/20094 ƒ“A permit recommended by the P&Z Commission and approved by the Town Council for the use of land or structures in accordance to the provisions in the Zoning Ordinance”. 2/5/2009 3 First Prong –Zoning (continued) `How does an SUP work? ƒApplicationbypropertyowner/agentApplication by property owner/agent ƒStaff review/recommendations prepared ƒAdjacent property owners within 200’ radius notified ƒPlanning and Zoning Commission public hearing held ƒP&Z recommendation to Council 2/5/20095 ƒTown Council public hearing held ƒTown Council decision First Prong –Zoning (continued) `What does amending the Zoning Ordinance to allow oil & gas drilling/production in all districts, but ONLY with an approved Sll?SUP, actually mean? ƒAdditional opportunities to ASK ƒWith increased opportunities to ASK, better balance achieved between the mineral estate owners rights and the surface owners right. ƒStrong opportunity for transparency and citizen input (2 public hearings) 2/5/20096 ƒStrong opportunity to, if SUP is approved, to impose stringent special conditions on the well drilling and production. 2/5/2009 4 Second Prong –Technical Standards Ordinance `What does the Technical Standards Ordinance cover? ƒApplication requirements and processppqp ƒDrilling standards and requirements ƒWell production operation standards ƒSecurity requirements ƒWell abandonment standards ƒReportingrequirements 2/5/20097 Reporting requirements ƒPipeline standards ƒPenalties Second Prong –Technical Standards Ordinance (continued) `What standards does the Technical Standards Ordinance establish? ƒWell setbacks ƒRoadway use requirements ƒTruck route requirements ƒFresh water for drilling ƒNoise level requirements ƒLightingrequirements 2/5/20098 Lighting requirements ƒLandscape screening ƒWastewater disposal 2/5/2009 5 SUP Application Gas Well Pad Site Application Gas Well Permit 1. Zoning Two Public Hearings 2. Technical Standards Ordinance 3. Technical Standards Ordinance if approved if approved 2/5/20099 `Two Parts ƒWell drilling and production ƒPipelines 2/5/200910 2/5/2009 6 Part One -Drilling and Production `Gas Well Pad Site Permit application “GasWellPadSite(GWPS):theareadefinedonthesiteplanfora`Gas Well Pad Site (GWPS): the area defined on the site plan for a SUP for all storage and operational activities associated with gas drilling and production”. `What’s required to apply for a Gas Well Pad Site Permit? ƒAn approved SUP ƒA complete application (pages 17-18) ƒAcompletesiteplan 2/5/200911 A complete site plan Part One -Drilling and Production (continued) `What does the Site Plan for a Gas Well Pad Site require? ƒSite Plan requirements (pages 19 -21) `What other standards are there for Gas Well Pad Sites? ƒSolid perimeter screening wall for well production facilities (pages 24-25) ƒExtensive landscaping/tree preservation and mitigation (pages 25-26) ƒGas Well Pad Site classifications 2/5/200912 ƒGas Well Pad Site and Drill Zone setbacks 2/5/2009 7 Part One -Drilling and Production (continued) `What are the classifications of Gas Well Pad Sites? fƒHigh Impact –Gas Well Pad Site contains a Drill Zone located within 600’ of a Protected Use. ƒUrban –Gas Well Pad Site contains a Drill Zone located between 600’ and 1,000’ of a Protected Use. ƒRural –Gas Well Pad Site contains a Drill Zone located more than 1,000’ from a Protected Use. 2/5/200913 ™NOTE: distance of GWPS from a Protected Use is at the time of GWPS application. Part One -Drilling and Production (continued) `What is the “Drill Zone”? ƒ“The area within an approved Gas Well Pad Site designated for drilling, as shown intheSitePlanpartoftheSpecificUsePermitapprovalprocess”in the Site Plan part of the Specific Use Permit approval process. `What is a “Protected Use”? ƒ“A residence, religious institution, public building, health care facility building, school, or public park. The term shall not apply to accessory buildings, garages, hangars, or storage buildings.” `What is a “Gas Well Production Site”? ƒ“The area used for the production of gas, oil and other hydrocarbons. 2/5/200914 Reworking, re-fraccing, and other well maintenance activities may also be conducted within this area. Drilling shall only be permitted within the Drill Zone located within a Gas Well Pad Site.” 2/5/2009 8 Gas Well Pad Site (PitBd) Site Plan is to show everything on the property. Protected Use 300’* 600’ 1,000’ (Perimeter Boundary) 75’ Gas Well Production Site (Must be within Pad Site) 2/5/200915 , 300’ to Property Line Drill Zone Part One -Drilling and Production (continued) `Other Gas Well Pad Site requirements (page 21) ƒPerimeter of GWPS must be a minimum of 75’ from adjacent property line. Can bereducedwithadjacentpropertyownersconsent and Townapprovalbe reduced with adjacent property owners consent and Town approval. ƒGWPS fronting on one or more streets; the setback shall as be required by the building setback for that lot or as approved by the Site Plan/SUP process. ƒThe Drill Zone of any GWPS classification must always be at least 600’ from all Protected Uses. It can reduced to 300’, but only if all adjacent property owners and the Town consent. 2/5/200916 ƒThe Drill Zone of any GWPS classification must always be at least 300’ from all adjacent property lines. It can be reduced, but only with consent of all adjacent property owners and the Town. 2/5/2009 9 Part One -Drilling and Production (continued) `Effects of setback increases/reductions: ƒIf Drill Zone becomes within 600’ of a Protected Use = High Impact Classification RequirementsRequirements. ƒIf Drill Zone becomes within 600’ to 1,000’ of a Protected Use = Urban Classification Requirements. ƒIf Drill Zone becomes outside 1,000’ or more from a Protected use = Rural Classification Requirements. `Future Gas Wells on a GWPS can never be closer than 300’ from a ProtectedUseandcannotbereducedbyadjacentproperty 2/5/200917 Protected Use, and can not be reduced by adjacent property consent. `Drill Zones may not exceed two acres in size. Part One -Drilling and Production (continued) `Gas Well Permits WhtiidttGWllPit?ƒWhat is required to get a Gas Well Permit? 9 An approved SUP 9 An approved Gas Well Pad Site Permit 9 Payment of all fees 9 Proof/payment of insurance, LOC, and/or bonds (page 40) 2/5/200918 2/5/2009 10 Part One -Drilling and Production (continued) `Gas Well Operation Standards ƒPages 29 –40 ƒHMSSP (page 30) ƒEquipment Painting (page 30) ƒLighting (page 33) ƒWater Pits (page 33) ƒPrivate Roads (page 34) SlWdilll(P34) 2/5/200919 ƒSalt Water disposal wells (Page 34) ƒNoise Levels (page 37-38) Part One -Drilling and Production (continued) `Other Gas Well Permit Requirements ƒReporting (pages 48-49) ƒPermit Transference (pages 49-50) ƒClean-Up and Maintenance (page 50) ƒPlugging and Abandonment (page 51) ƒTechnical advisor (page 52) ƒWell Permit Amendments and Re-working (page 54) AlRi 2/5/200920 ƒAnnual Review 2/5/2009 11 Second Part Pipeline Standards 2/5/200921 Part Two –Pipeline Standards (continued) `Permit required `License required for road crossing `No permit/license issued unless for an SUP approved well.opet/cesessueduessoaSUappoede `Future development –note on plat required if within 100’ of existing pipeline. `Extensive application and construction requirments. `Reporting requirements `Pipeline makeovers required `One call membership required `Inactive pipelines `Waive/hold harmless agreement required if building constructed within 100’ of 2/5/200922 existing pipeline. `Bond insurance requirements `Termination of permit/license 2/5/2009 12 `Zoning = land use `The question: where? `Another way of saying it: ƒIn what zoning districts, and under what conditions will we allow oil & gas drilling and production? `Key consideration: ƒBalancing the legal rights of the mineral estate to access their minerals versus surface owner rights. 2/5/200923 `What are the options? ƒAllowed use permitted by right 9 All Districts 9 Some Districts ƒAllowed use , but only with an approved SUP 9 All Districts 9 Some Districts `Key policy question: ƒWhich approach allows us to practice good urban planning while addressing the need, and legal right, of the mineral estate to access their minerals and the need of the surface owner to have reasonable tti? 2/5/200924 protection? 2/5/2009 13 `Let’s look at the options in light of this key question `Allowed use by Right ƒAll Districts 9 il/tiitihbjtltthtitif9means oil/gas activities can go anywhere subject only to the restrictions of the Technical Standards Ordinance. ƒSome Districts 9 means oil/gas activities can go in certain districts subject only to the restrictions of the Technical Standards Ordinance. `Important Question? ƒWhich districts can oil/gas activities go into as an allowed use by right? 2/5/200925 `Do these options address good urban planning while addressing both mineral right estate and surface owner rights? `Allowed use, but only with an approved SUP ƒAll Districts 9 means oil/gas activities may go anywhere, but first must apply for and receive an SUP (two public hearings), and are subject to the restrictions of the Technical Standards Ordinance. ƒSome Districts 9 means oil/gas activities may go in certain districts, but first must apply for and receive an SUP , and are subject to the restrictions of the Technical Standards Ordinance. `Which districts can oil/gas activities go into with an approved SUP? `MuchofWestlakeiszonedPD(PlannedDistrict)withalloweduses 2/5/200926 `Much of Westlake is zoned PD (Planned District) with allowed uses that are a mixture of residential and commercial, but those uses are not geographically defined within the PD. 2/5/2009 14 `So, which option best allows us the ability to practice good urban planning while addressing the need of the mineral estate to access their minerals and the need of the surface owner to have reasonable protections? `Staff recommendation: ƒAllowed use in all districts, but only with an approved SUP. ƒSUP process allows Town more control, public review and comment, placement of stipulations and conditions on the SUP. ƒSUP in all districts addresses the wide use of blended, but not geographicallydefinedusesinour PDzoningdistrictsthatcomprise 2/5/200927 geographically defined uses, in our PD zoning districts that comprise much of Westlake. 2/5/200928 2/5/2009 1 Town  of Westlake Proposed Gas Drilling and  Production Ordinance  Worksho pp October 6, 2008 Guiding Principals Staff is not seeking a commitment from the Board on these issues,  rather a general consensus that the Board is willing to consider an  ordinance containing these key provisions as outlined at this timeordinance containing these key  provisions as outlined at this time. Following citizen feedback and continued staff research, the Board  will be presented a draft ordinance for consideration and approval.  Some changes could still be made at that time if the Board were to  incorporate the changes into their motion for approval.  If new information comes to light that might merit a  reconsideration of any of these positions, staff will include that  information in the staff report accompanying the proposed  ordinance. 2 2/5/2009 2 Topics  of Discussion •Setbacks  •Water •Roadway usage •Permit  approval process •Screening /Landscaping•Screening / Landscaping •Sound limitations 3 Definitions •Gas Well  Pad Site ‐The area used for all  operational activities associated with gas  drilling and productiondrilling and production.   •Drill Zone ‐The area within an approved Gas  Well  Pad Site designated to drilling well bores. •Gas Well  production Site –The area  designated for  containment of all equipment  and activities associated with gas  production  and well maintenance. •Protected use –Dwelling, commercial  building, school or public park.   4 2/5/2009 3 Setbacks Comparison to neighboring cities: Mii di f llb (h hl h dill i)f dMinimum distance of a wellbore (the open hole at the drill site) from a protected use. Municipality Standard Minimum Keller500 feetCity Council can decrease; no minimum listed* Roanoke1000 feet500 feet Fort Worth600 feet200 feet Southlake1000 feetCity Council can decrease; no minimum listed* Trophy  Club1000 feet**250 feet **  Argyle 500 feet 250 feetArgyle  500 feet 250 feet Westlake600 feet300 feet *The Texas  Local Government Code imposes a 200 feet minimum. ** Measured to the property line instead of the structure.   5 Setbacks ‐discussion points Distance from drill zone to protected use •Why not just adopt the greatest setback that any  of our neighboring cities are using? •The purpose of setbacks –safety and quality of  life or nuisance mitigation. •Unintended consequences of larger setback  requirements. 6 2/5/2009 4 Examples of setback impacts on  developable property •1000 foot 1000 1000 100 2100 2100 X 2100 4410000 /43560 10124 acres1000 + 1000 + 100 = 2100; 2100 X 2100 = 4,410,000 / 43560 = 101.24 acres •600 foot 600 + 600 + 100 = 1300; 1300 X 1300 = 1,690,000 / 43560 = 38.8 acres •300 foot 300 + 300 + 100 = 700; 700 X 700 =  490000 / 43560 = 11.25 acres Formula:  h*w/ 43560 = acres,  where: h= The setback from one side added to the setback for the opposite side plus the  depth of the well bore zone. w= The setback from the front side added to the setback for the back side plus the  depth of the well bore zone.  7 Setbacks Proposed Distance from drill zone to protected use. •600 feet  –base line minimum standard. •1,000 feet –voluntary and results in the relaxation of  some regulations and will be easier for operator to  comply with quality of life/nuisance  regulations. 8 2/5/2009 5 Setbacks Proposed ‐continued Distance from drill zone to protected use  •300 feet  –absolute minimum setback.  Requires  approval from all property owners with structures  closer than 600 feet  and Board approval.  Results in  more restrictive regulations and allows property  owners with greater potential of negative impact  from well operations to negotiate directly with the  operator for creative options to address their  specific concerns.  9 SetbacksProposed ‐continued Distance from drill zone  to protected use •After a Gas Well  Pad  Site has been approved,  the required setback from future habitable  structures will be 300 feet.  This reduction  allows for  more options for development of  surrounding propertiessurrounding properties.   10 2/5/2009 6 Setbacks from other uses •Proposed distance from drill zone to  street right‐of‐way is 200 feet.steet gto ay s 00 eet. Hwy 114 and 170 –Also requires 100 foot setback for the  Gas Well production Site perimeter fence from the right‐of‐ way for landscape in the Town  Edge Open Space Zone. Hwy 377 –Also requires 50 foot setback for the Gas Well   production Site perimeter fence from the right‐of‐way for  landscape in the Town Edge Open Space Zonelandscape in the Town  Edge Open Space Zone. All other street right‐of‐ways –The perimeter fence  must be behind the established building setback line for the  zoning district.   11 Setbacks from other property lines  and other structures •The proposed requirement for  the Drill Zone  t b ii f 75 ftf thto be a minimum of 75 feet from the  perimeter of the Gas Well  Pad Site, along with   a minimum required 50 foot separation of the  Gas Well  Pad  Site perimeter fence  from  adjacent property lines, results in a minimum  125 foot setback from any structures or other  uses not related to the gas well drilling or  production operations. 12 2/5/2009 7 Setbacks ‐continued •Variances to the setback requirements, or  diti f th ltideviations from any other regulations  governing the drilling and production of gas,  may be authorized during the Specific Use  Permit approval process after meeting all  prerequisites and receiving a recommendation  from the Planning and Zoning Commission  and approval by the Board of Aldermen.   13 Drill Zone Setbacks Consensus  ‰1000’ from habitable structures –rural  ‰600’ from habitable structures –standard ‰300’ from habitable structures –high impact  (With approval of all property owners with habitable structures located  closer than 600’ and approval from Board of Aldermen)  ‰75’ from property line unless neighboring  property owner approves less. ‰300’ from habitable structures built after the  Well  Pad Site Permit is issued.  14 2/5/2009 8 Roadway Usage •Roadway Improvement / Repair agreement –Town  will have roadways along the approved truck  route assessed for suitability for use by heavy  truck traffic and determine if roadway must be  improved prior to the increased usage.  Repair or  replacement costs will be estimated and  arrangements for payment of those costs will be  addressed in the agreement. 15 Roadway Usage •Approved truck routes –Truck  routes will be  approved during the Gas Well Pad Site permitting processapproved during the Gas Well  Pad Site permitting process. –Encourage use of State owned Highways and Access Roads by reducing  roadway improvement/repair fees if town owned roads are not used. –Prohibit usage of certain roads based on safety considerations, traffic  studies, and availability of other routes. –Coordinate efforts with neighboring cities to regulate truck routes forCoordinate efforts with neighboring cities to regulate truck routes for  gas well sites located in the Town  of Westlake and in neighboring  cities.  16 2/5/2009 9 Roadway  Improvement/Repair  Agreement Consensus  Comparison to neighboring cities: Most cities have Roadway use agreements at this  time.   The uniqueness of the Town  of Westlake   relative to condition of existing roadways, access  to State owned Roadways, and our focus  on  minimizing truck traffic, makes a line item  comparison with other cities impractical.  The  agreement will be specific to each project and  will require approval by the Board of Aldermen. 17 Water  Supply •Fresh water supply for  gas drilling operations. ill b idd b f lk–Water  will not be provided by Town  of West lake,  without a Water  Supply Agreement, because the  increased water demand could result in the peak  limits being exceeded and a possible increase in  water fees for all Westlake  water customers. –Freshwater wells may be drilled on site or water y may be trucked or piped in and stored on site.   Trucking of water in or out will require a Roadway  Improvement/repair Agreement. 18 2/5/2009 10 WaterSupply Consensus ‰Fresh water must be obtained from source  th th th iil t l lother than the municipal water supply unless  a Water  Supply Agreement is executed. ‰Water  storage ponds will be encouraged to be  established as permanent water features to beestablished as permanent water features  to be  included in the required landscape plan. 19 Waste  Water •Waste  water from Gas well drilling and  dti ti t b didproduction operations must be disposed  of properly. –Option A is to have all water trucked out of town  for disposal.  Most likely the waste will be pumped  into a nearby Salt Water  Disposal Well. Option B is to permit the drilling of a Salt Water–Option B is to permit the drilling of a Salt Water   Disposal Well  within the Town  of Westlake  but  limit it’s usage to disposing of water produced  within the Town  of Westlake. 20 2/5/2009 11 Waste  Water  Consensus ‰Option A is to have all water trucked out of town  for disposal.Most likely the waste will be pumpedfor disposal.  Most likely the waste will be pumped  into a nearby Salt Water  Disposal Well. ‰Option B is to permit the drilling of a Salt Water   Disposal Well  within the Town  of Westlake  but  limit it’s usage to disposing of water produced  ihi h T f WlkThi i illwithin the Town of Westlake.  This option still  allows waste water to be trucked out if the  operator chooses to do so. 21 Permitting •There is a two pronged approach to regulating  Gas Well Drilling and Production activitiesGas Well  Drilling and Production activities  requiring two separate ordinance amendments. –Regulatory standards are similar to the Building Codes  as they relate to new buildings.  Dealing with safety  and operational facets of the operation. Zoning regulations are used to regulate the Land Use–Zoning regulations are used to regulate the Land Use  aspects and insure conformance with the Master  Plans for Land Use, Open Space, Thoroughfares, and  Water  & Sewer Utilities. 22 2/5/2009 12 Permitting •The proposed Gas Well  Drilling and Production Ordinance  will cover the regulatory standards and will contain some  ld ldi h ifi hi iland use related items that are specific to this unique use. •To  address the remainder of the zoning related issues, an  ordinance will be proposed to amend the Comprehensive  Zoning Ordinance to permit Gas Drilling in all zoning  districts with a Specific Use Permit.  All Gas Well  Pad Site  Permits will only be approved following notification of all  property owners within 1,000 feet and a public hearing  before the Planning and Zoning Commission followed by abefore the Planning and Zoning Commission followed by a  hearing before the Board of Aldermen. •Gas wells located within the designated Drill Zone of an  approved Gas Well  Pad site will be permitted  administratively. 23 Permitting  Approval Process  Consensus ‰Allowed in all zoning districts with Specific Use  Permit. ‰Variances should have prerequisites that must  be met prior to being considered by the Board  of Aldermenof Aldermen. 24 2/5/2009 13 Fencing / Screening & Landscaping Municipality Fence requirements Keller8', wrought iron, tube steel, masonry, or a  combination ‐thereof Roanoke       8' chain link fence  Fort Worth6’ chain link Southlake     8' masonry perimeter wall with 8' chainlinkand  barbed wire inside perimeter Trophy  ClubRemovable masonry 7.5' with wrought iron  gating/Permanent masonry fencing along thoroughfare   Argyle          8’ masonry columns/wrought iron fencing  Westlake8' perimeter wall constructed of stone, cast stone or  split‐face concrete masonry units as approved by SUP.   Evergreen shrubs shall be planted at ten foot spacing along  the wall. 25 Fencing/ Screening & Landscaping Municipality Screening & Landscaping Requirments KellerCity Council & Planning and Zoning discretion Roanoke      3’‐5’ shrubs surrounding well site; subject to g ;j Gas Inspector approval Fort Worth    40% tree canopy for wells 200’‐600’ from PU.   30%; 600’‐1000’  Southlake     Subject to SUP; third party landscape  maintenance contract required Trophy  Club Subject to SUP. Argyle             Suitable screening shrubs subject to SUP. Westlake Minimum standards require compliance with the Landscape Development Standards of theMinimum standards require compliance with the Landscape Development Standards of the  Unified Development Code.   The entire perimeter of the site will be required to be landscaped as  a Roadway landscape Zone except for portions located in, and meeting the requirements for, a  Town  Edge Open Space Zone.   A minimum forty foot wide area around the perimeter must be landscaped in all cases.  In the SUP approval process the Board may allow delayed installation of landscaping for Rural Pad  Sites or require additional landscaping or screening based on neighboring uses or other concerns.   Roadways or service roads may be required to be screened or landscaped if closer than 300 ft.  from a protected use.26 2/5/2009 14 Roadway  landscape Zone •c)Zone width.The width of the landscape zone is measured from  the outside edge of the street pavement to the required building  setback line on both sides of the streetsetback line on both sides of the street. •(d)Landscape requirement. •(1)Tree  density.A minimum of six trees are required per 100  linear feet of landscape zone on each side of the roadway, which  may be planted anywhere within the roadway landscape zone.  Credit will be given for maintaining existing trees of equal or greater  size which are listed in the town's approved plant list in appendix D. •(2)Tree  size.There shall be a minimum of 60 percent large trees  ith th id bi ll t T i d twith the remainder being small trees. Tree sizes and measurement  shall conform to section 98‐110, acceptable landscape materials. 27 Town  Edge Open Space Zone  (c)Landscape treatment of town edge zones. (1)Alternative treatments.Town  edge open  space zones may be treated in one of two  ways: by earth berm, or forested  edge, as set  out in subsections (c)(2) and (c)(3) of this  section. 28 2/5/2009 15 Earth  Berm (2)Earth berm. a.State Highway 114 and 170.On State Highway 114 and 170 the earth bermmay  vary in width and height,and shall have a maximum 5:1 slope from the propertyvary in width and height, and shall have a maximum 5:1 slope from the property  line to the ridge line and a maximum 3:1 slope from the ridge line to the setback  line. The bermshall be a minimum height of 11 feet. b.Highway 377.On Highway 377 the earth bermmay vary in width and height, and  shall have a maximum 5:1 slope from the property line to the ridge line and a  maximum 3:1 slope from the ridge line to the backside of the easement. The berm shall be a minimum height of six feet. c.Wildflowers.Wildflowers shall be planted along earth bermsconsistent with the  Comprehensive Plan. d.Trees.Trees shall be planted along the earth bermconsistent with the  Comprehensive Plan in the following manner:Comprehensive Plan in the following manner: 1.Quantity.There shall be a minimum of 17 trees per 10,000 square feet of the area  measured from the top of the bermto the edge of the town edge open space zone  closest to the interior of the lot. 2.Size.Sixty percent of the trees shall be a minimum three‐inch caliper, and 40  percent shall be a minimum two‐inch caliper. 29 Forested Edge •3)Forested edge.As an alternative to creating  an earth berm a forested edge may be createdan earth berm, a forested edge may be created  which includes: •a.A minimum of 17 trees per 10,000 square feet   over the entire town edge open space zone per  size and proportion described in subsection  (c)(2)d of this section.()() •b.Wildflowers must be provided over 25  percent of the town edge open space zone   adjacent to the highway. 30 2/5/2009 16 Fencing/ Screening & Landscaping Consensus ‰Minimum 40’ landscape buffer zone   around perimeter. ‰Must meet Roadway open space landscape  requirements entirely around perimeter,  even when not adjacent to roadwayeven when not adjacent to roadway.     ‰Must meet Town  Edge Open Space Zone        landscape requirements when applicable. 31 Noise Limitations Municipality Standards Keller90 db/300 feet k 8 db/300 f 8 di fiRoanoke78 db/300 feet –85 during fracing Fort Worth*5 db/daytime or 3 db/nighttime ‐10 db/daytime or 5  db/nighttime during fracing Southlake*5 db/daytime or 3 db/nighttime ‐10 db/daytime or 5  db/nighttime during fracing Trophy  Club70 db/300 feet ‐80 during fracing Argyle90 db/300 feet  Westlake current90 db/300 feet Westlake5  db/daytime or 3 db/nighttime ‐10 db/daytime or 5  /db/nighttime during fracing.  85 db max. * When measured at the nearest Protected Use receiver's/receptor's property line or  one hundred (IOO) feet from the nearest Protected Use structure. 32 2/5/2009 17 Current Noise limitations Sec. 102‐183.Noise. (a)Measurement.Measurement of noise shall be made at () the residential property line with a sound level meter and  octave band analyzer meeting the standards prescribed by  the American Standards Association. (b)Noise level at residential property lines. (1)Nighttime noise level.Noise levels shall not exceed 49  dBAat a residential property line between 7:00 p.m. and  7:00 a.m. (2)Daytime noise level.Noise levels shall not exceed 56 dBA at a residential property line. (3)Octave band standards.Noise in any octave band shall  not exceed standards set out in Figure 1: 33 FIGURE 1 NOISE STANDARDS At no point along the bounding property line of any lot or parcel in a residential district shall the sound  pressure level of any operation or activity exceed the decibel limits specified in the octave band groups  designated in the following table: Octave Band Range (cps) Decibel BandLimit (dB re 0.0002 microbar) 37‐‐7580 75‐‐15068 150‐‐30061 300‐‐60055 600‐‐120051 1200‐‐240048 2400‐‐480045 4800‐‐960043 A scale (for monitoring purposes only)56 Noise level adjustments: Nighttime noise‐‐7 p.m. and 7:00 a.m.subtract 7 db Impulsive noisesubtract 7 db (Meter reading changes at a rate greater than ten db per second)34 2/5/2009 18 Decibel Level Examples Threshold of hearing..........................0 dB  Otd l tffi20dBOutdoors, no people or traffic..........20 dB  Background noise in a library...........40 dB  Ordinary speaking voice...................60 dB  Heavy traffic.....................................85 dB  Power lawnmower up close.............90 dBp Source –United States Department of Energy 35 Noise Level Consensus Ambient noise level + ‰5 db/daytime or 3 db/nighttime  ‰10 db/daytime or 5 db/nighttime during              fracing. g ‰85 db max. unless ambient is higher. 36 2/5/2009 19 Lighting Standards Municipality Requirements ll iillihi dib/dl•KellerDirectional lighting so as not to disturb/adversely  adjacent properties. •RoanokeCannot shine directly on public roads or adjacent  property. •Fort WorthCannot shine directly on public roads or adjacent.  •SouthlakeCannot shine directly on public roads or adjacent  property and shielded so no glare on public roads or  buildings within300 feet. •Trophy  ClubCannot shine directly on public roads or adjacent  property and directed so as to avoid glare on publicproperty and directed so as to avoid glare on public  roads or buildings within 300 feet. •ArgyleNot addressed in oil and gas ordinance. •WestlakeCannot shine directly on public roads or adjacent  property and shielded so no glare on public roads or  buildings within 300 feet.  Shall conform to the outdoor  lighting ordinance to the degree practical and safe.  37 Current Gas and Oil Ordinance Operations and equipment practices and standards. •b.Directional lighting shall be provided for   the safety of oil or gas well drilling and  production operations and shall be provided  so as to not disturb or adversely affect  adjacent properties. No light source shall be  visible from any ground mounted or pole  mounted light. Rig lights shall be directional  and focused  exclusively on the operational  area of the rig. 38 2/5/2009 20 Lighting standards Consensus ‰Shall conform to the outdoor lighting  ordinance to the degree practical and safe. ‰Cannot shine directly on public roads or  adjacent property and shielded so no glare on    public roads or buildings within 300 feet. 39 5. FUTURE AGENDA ITEMS: Any Board member may request at a workshop and / or Board meeting, under “Future Agenda Item Requests”, an agenda item for a future Board meeting. The Board member making the request will contact the Town Manager with the requested item and the Town Manager will list it on the agenda. At the meeting, the requesting Board member will explain the item, the need for Board discussion of the item, the item’s relationship to the Board’s strategic priorities, and the amount of estimated staff time necessary to prepare for Board discussion. If the requesting Board member receives a second, the Town Manager will place the item on the Board agenda calendar allowing for adequate time for staff preparation on the agenda item. - None Town of  Westlake  Item # 5 –   Future Agenda  Items  Town of  Westlake  Item # 6 –  Adjournment  Back up material has not  been provided for this item.