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Minutes P&Z 08/19/2004MINUTES OF A PUBLIC HEARING & REGULAR SESSION FOR THE TOWN OF TROPHY CLUB PLANNING AND ZONING COMMISSION 19 AUGUST 2004 The Planning and Zoning Commission of the Town of Trophy Club, Texas met in a Public Hearing and a Regular Session on 19 August 2004, at 7:00 pm in the Boardroom of the Trophy Club Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262, COMMISSIONERS ATTENDANCE: Chairman Hill Vice Chairman Stephens Commissioner Bradley Commissioner Moss Commissioner Reed Commissioner Rodgers Commissioner Sheridan STAFF AND GUESTS PRESENT: Kerin C. Fleck Karen Mitchell Rob Durbin Ray LeDesma Doug Mitchell Chuck Traxlor Matt Curry Mike McCravy present present present present present present present Planning & Zoning Coordinator Planning Consultant Applicant, Star of Texas Energy Services, Inc. Applicant, Star of Texas Energy Services, Inc. Winchester Production Company Winchester Production Company Progress Fuels Star of Texas Energy Services, Inc. CALL TO ORDER AND ANNOUNCE A QUORUM. Chairman Hill called the meeting to order at 7:02 pm, announced a quorum was present and explained the format of the meeting for the benefit of the audience. PUBLIC HEARING 2. PLANNING & ZONING COMMISSION TO OPEN PUBLIC HEARING. A motion was made to open the Public Hearing, Motion: Sheridan Second: Reed Ayes: Hill, Bradley, Moss, Rodgers, Stephens Nays: None Action: Approved, 7-0 Motion carried. Planning & Zoning Commission Public Hearing & Regular Session Meeting 19 August 2004 3. PLANNING & ZONING COMMISSION TO CONDUCT A PUBLIC HEARING RELATIVE TO THE FOLLOWING: Chairman Hill read the caption into the record, A. AN APPLICATION FROM STAR OF TEXAS ENERGY SERVICES, INC. FOR A SPECIFIC USE PERMIT TO ALLOW GAS WELL DRILLING ON A 1.5 ACRE TRACT OF LAND REFERRED TO AS "PAD 8H & 9H" LOCATED APPROXIMATELY 600 FEET NORTH OF OAKMONT DRIVE AND APPROXIMATELY 1,220 FEET EAST OF TROPHY CLUB DRIVE, AND 380 FEET EAST NORTHEAST OF THE QUORUM CONDOMINIUMS AND MORE PARTICULARLY DESCRIBED AS BEING A TRACT OR A PARCEL OF LAND SITUATED IN THE W. MEDIIN SURVEY, ABSTRACT NUMBER 829, IN THE TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS, AND BEING PART OF "TRACT 8A" CALLED 559.3807 ACRES CONVEYED TO BECK PROPERTIES TROPHY CLUB, L.P. BY DEED RECORDED IN CLERK FILE NUMBER 93-R0087516 DEED RECORDS, DENTON COUNTY, TEXAS. (SUP -04-007) Mr. Durbin addressed the Commission and introduced Mr. Curry, engineer with Progress Fuels. Mr. Curry addressed the Comrnission with a Power Point presentation. He explained the operator's reasons behind the location for pad site 8/9H, First, there will be future development on the northern border of the site. Also, just south of the proposed site, there is a cluster of trees which will act as a buffer providing both a visual and a sound barrier. Seismic testing was done and the results showed faulting in the area. The proposed site was chosen in order to access the gas reserves while avoiding the faults in the area. The proposed site maximizes access to reserves, avoids the fault and allows for adequate drainage of the area. Sound levels were taken earlier in the week and the decibel levels were found to be in conformance with the ordinance. The drilling ordinance calls for levels no greater than seventy (70) decibels at a distance of three hundred feet (300'). The drilling rig used by the operator is diesel electric, purposely chosen because it is relatively quiet. One of the decibel levels taken during the week was sixty-seven (67) at a distance of three hundred feet (300'). The proposed pad site will be in a low-lying area. In addition to the low elevation, there are existing trees that will provide visual and sound barriers, The following residents addressed the Commission. Neil Twomey of 203 Oakmont Drive James Weaver of 216 Oakmont Drive There were no additional requests to speak from the public. 4. PLANNING & ZONING COMMISSION TO CLOSE PUBLIC HEARING AND/OR CONTINUE TO A DATE CERTAIN. A motion was made to close the public hearing. NAkfleck\Private\PLANNING & ZONING\MINUTES\2004\AUG\08192004 PH & REG SESSION.doc (10/28/04 5:05:38 PM) 2 Planning & Zoning Commission Public Hearing & Regular Session Meeting 19 August 2004 Motion: Sheridan Second: Rodgers Ayes: Hill, Bradley, Moss, Reed, Stephens Nays: None Action: Approved, 7-0 Motion carried. 5. PLANNING & ZONING COMMISSION TO CONVENE INTO A REGULAR SESSION. Chairman Hill opened the Regular Session. "REGULAR SESSION 6. PLANNING & ZONING COMMISSION TO TAKE APPROPRIATE ACTION AND MAKE A RECOMMENDATION TO THE TOWN COUNCIL REGARDING: A. AN APPLICATION FROM STAR OF TEXAS ENERGY SERVICES, INC. FOR A SPECIFIC USE PERMIT TO ALLOW GAS WELL DRILLING ON A 1.5 ACRE TRACT OF LAND REFERRED TO AS "PAD 8H & 9H" LOCATED APPROXIMATELY 600 FEET NORTH OF OAKMONT DRIVE AND APPROXIMATELY 1,220 FEET EAST OF TROPHY CLUB DRIVE, AND 380 FEET EAST NORTHEAST OF THE QUORUM CONDOMINIUMS AND MORE PARTICULARLY DESCRIBED AS BEING A TRACT OR A PARCEL OF LAND SITUATED IN THE W. MEDLIN SURVEY, ABSTRACT NUMBER 829, IN THE TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS, AND BEING PART OF "TRACT 8A" CALLED 559.3807 ACRES CONVEYED TO BECK PROPERTIES TROPHY CLUB, L.P. BY DEED RECORDED IN CLERK FILE NUMBER 93-R0087516 DEED RECORDS, DENTON COUNTY, TEXAS. (SUP -04-007) Chairman Hill read Section 431, subsection C, (3) of Town Ordinance No. 2003-11 P&Z for the benefit of the audience. Chairman Hill called on the Commissioners for discussion. Mr. Durbin addressed the Commission and explained the limitations of the horizontal well bore length. The operator will be drilling horizontal wells, which results in the number of well sites being reduced. Horizontal wells produce along the entire length of the well bore in the Barnett Shale. Mr. Curry stated that seismic testing was conducted in their lease area and the data from the testing showed faulting in the Barnett Shale, As a result of horizontal drilling, the number of pad sites has been reduced and relocated to avoid contact with faults. These wells are positioned in the southwestern corner of the operator's lease area to avoid the faulting. The well bore's positioning and the pad site location combined give the operator the best chance to avoid the fault and to recover the mineral reserves. Mr. Durbin added that on this particular portion of the lease, there is a "bottleneck", in that the Army Corps of Engineers property comes a substantial distance into the Town of Trophy Club, There is a State spacing requirement for drill sites to be at least 330 feet from lease lines. Mr, Durbin stated if the operator moved the proposed site, the State N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\AUG\08192004 PH & REG SESSION.doc (10/28/045:05:38 PM) 3 Planning & Zoning Commission Public Hearing & Regular Session Meeting 19 August 2004 spacing rule would be violated, Therefore, Star of Texas has placed the well site as close to the "bottleneck" as possible so that another drill pad would not have to be added nearby. Chairman Hill clarified with the applicant that they reduced the number of drill pads by doubling the wells in this location. Mr. Durbin confirmed. Mr. Durbin went on to say that the wells drilled to date had not yet been fractured. They will not be fraced until the pipeline is installed. Mr, Doug Mitchell addressed the Commission. The traffic route for pad site 8/9H will come off Marshall Creek Road, head south on Trophy Club Drive and then turn east into the location. Mr. Mitchell addressed concerns about leakage/spills from the drill site. He said that Star of Texas drills in sensitive areas regularly. The location has been designed with special provisions. The reserve pits will be lined and there will not be a flowback of produced water. The water will either be trucked out or pumped out by way of a pipeline. Chairman Hill stated that according to the Town's drilling ordinance, gas flaring is prohibited. The ordinance calls for a flowline carrying frac water during the production stages to the pipeline central gathering station located outside the Town limits. As a result, there would not be any on-site storage of flowback water from the frac process or any gas flares in the proximity of these wellheads. Mr. Mitchell stated the only flowback that takes place is that water which goes into the frac tank in order for the operator to get it pumped down the wellbore. As far as flowing back in a tank and trucking the water out of the site, that will not occur on this site. Commissioner Reed asked the applicant about the potential loss of reserves if the pad site was relocated further north. Originally, the applicant planned to drill directional wells, however, since the change to horizontal drilling, there has been no information about the bottom hole locations, what area a well will drain and where the faults are in relation to the well. Commissioner Reed asked to see visual data to backup the request for distance waiver. Discussion ensued among the Commission and the applicants. Mr. LeDesma addressed the Commission and attempted to provide an answer to Commissioner Reed's questions. A motion was made to table action on this agenda item until a date certain of 2 September 2004 in order to get more detail from the applicant, justifying what was verbally discussed during this meeting, i.e. golf course property line, lease lines, Corp of Engineers boundary lines and possible alternative sites. Motion; Sheridan N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\AUG\08192004 PH & REG SESSION.doc (10/28/045:05:38 PM) a] Planning & Zoning Commission Public Hearing & Regular Session Meeting 19 August 2004 Second: Moss Ayes: Hill, Bradley, Stephens, Reed, Rodgers Nays: None Action: Approved, 6-0 Motion carried. This item will be on the Commission's 2 September 2004 meeting. 7. REVIEW AND APPROVE MINUTES: A. 5 AUGUST 2004 A motion was made to approve the minutes. Motion: Sheridan Second: Rodgers Ayes: Hill, Bradley, Moss, Reed, Stephens Nays: None Action: 7-0 Motion carried. 9. ADJOURNMENT Chairman Hill adjourned the meeting at approximately 8:20pm. Gen Hill, Chairman OF rRoo Kern C. Fleck, Planni & Zoning Coordinator OSS y� C CD N:\kfleck\Private\PLANNING & ZONING\MINUTES\2004\AUG\08192004 PH & REG SESSION.doc (10/28/04 5:05:38 PM) 5