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Agenda Packet TC 09/20/2004Town of Trophy Club Town Council Regular Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Monday, September 20, 2004 7:00 P.M. A.1 Call to order and announce a quorum. A.2 Invocation. A.3 Pledge of allegiance to the American Flag_ Pledge of allegiance to the Texas Flag. "Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible." B.1 Citizen presentations: this is an opportunity for citizens to address the Council on an matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. B.2 Council/staff reports: this is an onnortunity for Council and staff to provide brief updates on projects and to provide public service announcements. It is not a time for the expression of opinions, questions and answers, or discussion among staff and Council. Discussion is limited to whether Council desires to have a topic placed on a future a _ eg nda for future consideration. C.1 Public Hearing: Ordinance amending Article 5, Section 42 of Zoning Ordinance No. 2000-06 P&Z, relating to "Wireless Antennas and Antenna Facilities". D.1 Discuss and take appropriate action regarding _ an Ordinance amending Article 5, Section 42 of Zoning Ordinance No. 2000-06 P&Z, relating to "Wireless Antennas and Antenna Facilities". D.2 Discuss and take appropriate action reizardiniz the approval/reiection of a proposed oil gas, and mineral lease -non -drill site pooling agreement for the development of the Town's interest in Harmony Park by and between the Town and Star Of Texas Energy Services, Inc., a substantial copy of which is attached hereto; and authorizing the Mayor or his designee to execute necessary documents. D.3 Discuss and take appropriate action regarding an Ordinance authorizing issuance of Certificates of Obligation for financing construction of new building addition. DA Consent agenda: Discuss and take appropriate action regarding a Resolution approving the tax roll of the Denton Central Appraisal District for 2004. D.5 Consent agenda: Discuss and take appropriate action to authorize a Resolution to participate in CAPP and authorizing the Chairman of CAPP to execute an electric supply agreement for delivery of electricity beginningJanuM, 2005. D.6 Consent agenda: Discuss and take appropriate action to approve monthly financials dated August 31, 2004 D.7 Consent agenda: Discuss and take qppropriate action to approve Minutes dated August 30, 2004. D.8 Additional information Drovided to the Council. D.9 Adjourn. COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.A.I Call to order and announce a quorum. (dc) COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.A.2 Invocation. (dc) COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.A.3 Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible." (dc) COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.B.I Citizen presentations: this is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. (dc) COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.B.2 Council/staff reports: this is an opportunity for Council and staff to provide brief updates on projects and to provide public service announcements. It is not a time for the expression of opinions, questions and answers, or discussion among staff and Council. Discussion is limited to whether Council desires to have a topic placed on a future agenda for future consideration. (dc) COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.C.I Public Hearing: Ordinance amending Article 5, Section 42 of Zoning Ordinance No. 2000-06 P&Z, relating to "Wireless Antennas and Antenna Facilities". EXPLANATION: The Planning & Zoning Commission has completed their review and revisions to the Wireless Antenna Ordinance. The majority of the changes were made to the amateur antenna section. The main changes are as follows: Height limits, (increased); location, (expounded upon); design, (specifies tapered design); and nonconforming uses, (designated). The Siting Matrix was specified to apply to commercial antennas, not amateur. Additionally, a provision for Special Use Permit was added for amateur antennas exceeding the height limits specified. RECOMMENDATION: A motion was made by the Planning & Zoning Commission to approve the repeal and revision of the Wireless Antenna Facilities Ordinance. ACTION BY COUNCIL: (Initials) KCF Attachments: 1. Ordinance TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2004- P&Z AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, REPEALING ORDINANCE NO. 2001-08 P&Z, THE SAME BEING AN ORDINANCE AMENDING ORDINANCE NO. 2000-06 P&Z, THE SAME BEING THE COMPREHENSIVE ZONING ORDINANCE, BY REPEALING SECTION 42 OF ARTICLE 5 IN ITS ENTIRETY, AND A NEW SECTION 42, ENTITLED WIRELESS ANTENNAS AND ANTENNA FACILITIES, IS HEREBY ADOPTED; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING A PURPOSE; PROVIDING DEFINITIONS; PROVIDING PERMIT & SPECIAL EXCEPTION REQUIREMENTS; PRESCRIBING CRITERIA FOR GENERAL REGULATIONS; ESTABLISHING PROVISIONS FOR AMATEUR RADIO ANTENNAS AND TV ANTENNAS; ESTABLISHING STANDARDS FOR SATELLITE RECEIVE -ONLY ANTENNAS LESS THAN ONE (1) METER IN DIAMETER; ESTABLISHING PROVISIONS FOR SATELLITE ANTENNAS GREATER THAN ONE (1) METER IN DIAMETER; PROVIDING FOR PLACEMENT OF ANTENNA FACILITIES; PRESCRIBING ANTENNA FACILITY IMPACT LEVELS; PROVIDING AN ANTENNA FACILITY SITING MATRIX; PROVIDING STANDARDS FOR SPECIAL EXCEPTION; ESTABLISHING PROVISIONS FOR WRITTEN REPORT; PROVIDING FOR APPEAL; PRESCRIBING PROCEDURES FOR CONSIDERATION OF A SPECIAL USE PERMIT; PROVIDING A CUMULATIVE REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, it is the goal of the Town of Trophy Club to protect and promote the public health, safety, and welfare of the community by regulating the siting of wireless communications towers and antennas, and the Town recognizes that it is in the public interest to permit these facilities consistent with the regulations hereinafter adopted by this Ordinance; and WHEREAS, the location of wireless towers and antenna facilities can create safety and aesthetic issues for surrounding properties; and WHEREAS, safety, aesthetic, land use, and other concerns create the need for regulations to minimize the visual impact of wireless facilities; and WHEREAS, the Town recognizes the need to desires to provide opportunities to enable a broad range of technology and services to be made available to its citizens and businesses and to have supporting services to aid its citizens in the event of disasters and other emergencies; and WHEREAS, after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning and Zoning Commission of the Town has recommended to the Town Council the adoption of the amendments to the Comprehensive Zoning Ordinance as set forth in this Ordinance; and WHEREAS, the Town Council finds that such change to the Town's Comprehensive Zoning Ordinance would not be detrimental to the public health, safety, or general welfare, will promote the best and most orderly development of the Town, and is consistent with the Town's Comprehensive Land Use Plan. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES All of the above premises are found to be true and correct and are incorporated into the body of this Ordinance as if copied in their entirety. CF.0 TION '7 FINDINGS After due deliberations and consideration of the recommendation of the Planning & Zoning Commission and the information and other materials received at the public hearings, the Town Council has concluded that the adoption of this Ordinance is in the best interests of the Town of Trophy Club, Texas, and of the public health, safety and welfare and is consistent with the Town's Comprehensive Land Use Plan. SECTION 3. AMENDMENT Ordinance No. 2001-08 P&Z, of the Town of Trophy Club, Texas, the same being an ordinance amending ordinance No. 2000-06 P&Z, the same being the Comprehensive Zoning Ordinance is hereby amended in the following particulars, and all other articles, chapters, sections, paragraphs, sentences, phrases and words are not amended but are hereby ratified and affirmed: SECTION 42 — WIRELESS ANTENNAS AND ANTENNA FACILITIES A. Purpose: The purpose of the Town of Trophy Club Telecommunication Antenna Code is to further an overall plan for the enhancement of public safety, consistent community development, preservation of property values and the general welfare of the Town of Trophy Club while providing for the communication needs of the residents and businesses in the Town. The purpose of this section is to govern the placement of these facilities to: 1. Ensure that their location and use do not unduly compromise the aesthetic quality of the community; 2. Facilitate the provision of wireless telecommunication services to the residents and businesses of the Town; 3. Encourage operators of antenna facilities and antennas to locate them in areas where the adverse impact on the community is minimal; 4. Encourage co -location on both new and existing antenna facilities; 5. Encourage operators of antenna facilities and antennas to configure them in a way that minimizes the adverse visual impact through careful design, landscape screening, and innovative stealth techniques; and 6. Enhance the ability of wireless telecommunication providers to provide services to the community effectively and efficiently. B. Definitions: In this section the following definitions apply: Alternative Tower Structure: Clock towers, steeples, light poles and similar alternative - design mounting structures that camouflage or conceal the presence of antennas or towers. See also the definition of "stealth facility". Amateur Radio Antenna: A radio communication antenna used by a person holding an amateur station license from the Federal Communications Commission. Antenna: A device used in communications, which transmits or receives radio signals, television signals, digital signals, analog signals, radio frequencies (excluding radar signals), wireless telecommunications signals or other communication signals. Antenna, Building Attached: An antenna attached to an existing structure in two general forms: (1) roof -mounted, in which antennas are placed on the roofs of buildings, or (2) building -mounted, in which antennas are placed on the sides of buildings. These antennas can also be mounted on structures such as water tanks, billboards, church steeples, electrical transmission towers, etc. Antenna Facility: The mast, pole, structure, tower, building, equipment and other supporting material used to mount the antenna and equipment, including equipment storage buildings, and concealing or screening structures needed to operate an antenna. The antenna is considered part of the antenna facility. This definition does not include satellite receive -only antennas. Co -location: The act of locating wireless communications equipment for more than one telecommunications carrier on a single antenna facility. Equipment Storage Building: An unmanned, single story equipment building or structure used to house telecommunications equipment necessary to operate the telecommunications network. Monopole Tower: A self-supporting tower facility composed of a single spire used to support telecommunication antennas. Monopole towers cannot have guy wires or bracing. Preexisting Towers and Preexisting Antennas: Any tower or antenna for which a building permit or Special Use Permit has been properly issued prior to the effective date of this Ordinance, including permitted towers or antennas that have not yet been constructed so long as such approval is current and not expired. Satellite Receive -Only Antenna: An antenna, one (1) meter or less in diameter that enables the receipt of television signals transmitted directly from satellites to be viewed on a television monitor. Such antennas are commonly known as a satellite dish, television receive -only antenna, dish antenna, parabolic antenna, or satellite earth station antenna. Satellite Antenna: An antenna, greater than one (1) meter in diameter, which enables the transmission of signals directly to and from satellites. Such antennas are commonly known as a satellite dish, dish antenna, parabolic antenna, or satellite earth station antenna. Setback: The minimum amount of space required between a lot line and a building line. Stealth Facility: "Stealth" is a generic term describing a method that would hide or conceal an antenna, supporting electrical or mechanical equipment, or any other support structure that is identical to, or closely compatible with, the color of the supporting structure so as to make the antenna and related equipment as visually unobtrusive as possible to the surrounding neighborhood. Stealth facilities may include totally enclosed antennas, wireless facilities that replicate or duplicate the construction of common structures such as flagpoles, alternative tower structures, and camouflaged wireless facilities that are constructed to blend into the surrounding environment. Telecommunications Tower: Any structure that is designed and constructed for the purpose of supporting one or more antennae used for the provision of commercial wireless telecommunications services. This definition includes monopole towers, alternative mounting structures or any other vertical support used for wireless telecommunications antennae. This definition does not include commercial radio or television towers; nor does it include such things as satellite receive -only antenna or Amateur Radio Antennas. Telecommunications Tower Facility: A facility that contains a telecommunications tower and equipment storage building or structure. Telescopic or Crank -Up Tower: An antenna support structure designed to be lowered and raised either manually or mechanically. TV Antenna: An antenna that enables the receipt of television signals transmitted from broadcast stations. C. Permit / Special Exception/Special Use Permit Requirements: Table Type of Facility Building Permit Required Special Exception Required Special Use Permit Required Satellite Receive Only < 1 meter* No No No Satellite Antenna > 1 meter in Commercial Area* Yes No No Satellite Antenna > 1 meter in Residential Area* Yes Yes No Amateur Radio Antenna Support Structure Between 20'-50' in Height Yes No No Amateur Radio Antenna Exceeding Height Limits* Yes No Yes Amateur Radio Antenna Than Less 20' in Height No I No I No Television Antennas* No No No Level 1 Stealth Facility in FC, UR, WC or DR District Yes No No Level 2 Stealth Facility in FC, UR or WC District Yes No No Level 2 Stealth Facility in DR District Yes Yes No Level 3 Stealth Facility in FC, UR or WC District Yes No No Level 3 Stealth Facility in DR District Yes Yes No Level 4 Stealth Facility in FC or UR District Yes No No Level 4 Stealth Facility in WC or DR District Yes Yes No Monopole Tower up to 120 Feet in Height in FC, UR or WC District Yes Yes No Monopole Towers In DR Districts or Over 120 Feet Tall Prohibited Prohibited No * denotes All Districts. Refer to Section H . D. General Regulations: The following regulations apply to all antenna facilities and antennas located within any district. Except as specifically provided, all new telecommunications towers or antennas in the Town of Trophy Club shall be subject to the regulations contained in this Ordinance. Preexisting towers or antennas lawfully in existence at the time of the enactment of this ordinance shall not be required to meet the requirements of this Ordinance, other than those contained in Sections 9 and 11 below. 1. Equipment Storage Building: An equipment storage building (including cabinets) associated with an antenna facility or an antenna shall be screened with a mortar jointed brick masonry wall that will completely screen the equipment storage building or cabinet, or be incorporated into the stealth treatment so that it is consistent and complementary with the existing structures and uses on the premises. Alternative materials may be permitted upon approval by the Town Council and recommended by the Planning and Zoning Commission. The base of all tower facilities must be screened with a masonry wall that will completely screen the equipment storage building. All equipment storage buildings including cabinets must be screened with a mortar jointed brick masonry wall that will completely screen the equipment storage building or cabinet. 2. Driveway Surfaces: All telecommunication tower facilities must have an access drive that is constructed of asphalt or concrete. One (1) off-street parking space must be provided at each telecommunication tower facility. 3. Lights: No outdoor lighting shall be allowed on any antenna facility except lights or lighting that are required by the Federal Aviation Administration or the Federal Communications Commission. 4. Antenna Facility Capacity: All new antenna facilities must be structurally designed to allow for at least two (2) sets of antennas. 5. Tower Types: Only monopole, alternative tower structures or stealth towers are permitted in the Town. 6. Prohibited in Easements: Antenna facilities shall not be placed in easements unless authorized by the easement holder. 7. Construction Standards: A building permit, as identified in the Table in Section C, must be obtained prior to the construction or installation of any antenna facility. An antenna facility must be installed according to the manufacturer's recommendations and under the seal of a professional engineer registered in the State of Texas. Additionally, all antenna facilities shall comply with applicable state and local building codes. 8. Building Codes / Safety Standards: To ensure the structural integrity of antenna facilities, the owner of an antenna facility must ensure that it is maintained in compliance with all provisions of the Town of Trophy Club's building code and zoning regulations. If upon inspection, the Town concludes that an antenna facility fails to comply with such codes and regulations and/or constitutes a danger to persons or property, then upon written notice to the owner of the antenna facility, the owner shall have thirty (30) days to bring such tower into compliance with applicable standards. Failure to bring such tower into compliance shall constitute grounds for the removal of the antenna facility at the owner's expense. This notice requirement shall not preclude immediate action by the Building Official as allowed by law if public safety requires such action. 9. Contained on Property: No part of an antenna facility, antennas, or other attachment may extend beyond the property lines or required building lines of the lot on which the antenna or antenna facility is located. 10. State or Federal Requirements: All antenna facilities must meet or exceed current standards and regulations of the FAA, the FCC, and any other agency of the state or federal government with the authority to regulate towers and antennas. If such standards and regulations are changed, and if the controlling state or federal agency mandates compliance, then the owners of the towers and antennas governed by this Ordinance shall bring such towers and antennas into compliance with such revised standards and regulations within six (6) months of the effective date of such standards and regulations, unless a different compliance schedule is mandated by the controlling state or federal agency. 11. Variance Requirement: A variance granted by the Board of Adjustment, pursuant to Section 55 of the Comprehensive Zoning Ordinance, is required for an antenna or antenna facility which will not comply with the requirements of this section unless otherwise specified herein. E. Amateur Radio Antennas and TV Antennas: Amateur radio antennas and TV antennas that are owned and operated by a federally licensed amateur radio operator are allowed in any district. A building permit is required for antenna support structures of twenty feet (20') or more in height. 1. Number of Facilities Per Lot: No more than one (1) TV antenna and one (1) amateur radio antenna are permitted on each lot. Excluded from this provision are monopoles four inches (4") or less in diameter used exclusively to support wire antennas mounted on a pole or mast under twenty feet (20') in height. 2. FCC License: Amateur radio antennas are only permitted for operators that have an amateur radio operator license from the FCC and the operator must provide the Town proof of a current FCC license before an amateur radio antenna is installed or maintained on a lot. 3. Height Limitations: No amateur radio antenna may be greater than fifty feet (50') in height. However, the height of such antenna may be increased to seventy-five feet (75') with the installation of a telescopic or crank -up tower upon the issuance of a Special Use Permit. 4. Antenna Location: Amateur radio antennas and TV antennas can only be located on a roof or in the back yard of a residence. No amateur antenna support structure, antenna or support wires may be located in the required rear or side yard setback. For an amateur radio antenna in excess of thirty-five feet (35'), the set back from side and rear setback lines must be increased one foot for every foot the height exceeds thirty-five feet (35). For Example: One foot (1') added to the required setback for each foot of antenna over thirty- five feet (35'). 5. Design: The bottom section of an antenna support structure may not exceed forty-eight inches (48") in width. An antenna support structure having a bottom section with a width exceeding thirty inches (30") but not greater than forty-eight inches (48") must be of a tapered design. 6. Nonconforming Uses: Amateur radio antennas, antenna support structures, bases, masts and poles in existence or for which a permit was issued prior to the effective date of the Ordinance shall be considered nonconforming uses and structures subject to the provisions specified in Article 5, Section 40 of this Ordinance. F. Satellite Receive Only Antennas, Less Than One (1) Meter in Diameter: Satellite dish receiving antennas, one (1) meter or less in diameter shall be permitted as an accessory use any zoning district. Satellite receive -only antennas must comply with the following regulations: 1. Antenna Location: Satellite receive -only antennaa less than one (1) meter in diameter can only be located on a roof or in the rear yard of a lot. 2. Number of Facilities Per Lot: No more than two (2) satellite receive -only antennas less than one (1) meter in diameter are permitted on each lot. 3. Height Limitations: A satellite receive -only antennas less than one (1) meter in diameter cannot extend more than eight (8) feet above the maximum height limitation applicable for the zoning district. 4. Setbacks: Satellite receive -only antennas less than one (1) meter in diameter are not permitted within any required setback area. G. Satellite Antennas Greater Than One Meter in Diameter: Satellite antennas greater than one (1) meter in diameter are permitted as accessory uses under the following conditions: 1. Nonresidential Zoning Districts: Satellite antennas greater than one (1) meter in diameter are accessory uses permitted by right in nonresidential zoning districts. 2. Residential Zoning Districts: Satellite antennas greater than one (1) meter in diameter are allowed in residential zoning districts only upon the approval of a Special Exception granted by the Board of Adjustment. 3. Height: Satellite antennas greater than one (1) meter in diameter shall not exceed ten feet (10') in height above the base of their mount. 4. Location: Satellite antennas greater than one (1) meter in diameter cannot be erected in any required setback or in front of residential structures. 5. Screening: Satellite antennas greater than one (1) meter in diameter that are mounted on the ground shall be screened from view from adjoining properties by solid fencing or evergreen plants to a height of a least six (6) feet. H. Placement of Antenna Facilities: This section does not apply to amateur radio, TV, and satellite receive -only antennas. For the purpose of determining the appropriate locations for the placement of antenna facilities, the Town is divided into land use threshold areas that establish different regulations pertaining to height, location, and type of antenna facility. These land use thresholds are defined as follows: 1. Full Commercial ("FC"): Property within the CG, CR, NS, PO, or non- residential Planned Development zoning districts. 2. Undeveloped Residential ("UR"): Property within R-15, R-12, R-11, R-10, R-9, R8, R -FV, R -TT, T -OH, R -OHF, R -S, MH, or any residentially zoned Planned Development districts, that: a. Is not a part of a recorded subdivision; or b. Is a part of a recorded subdivision but has not had a building permit issued for a residential structure; and c. Is not located within the calculated limits of the Developed Residential ("DR") threshold. 3. Wireless Corridors ("WC"): Property within, and 150 feet either side of, the right-of-way of a freeway or a major or minor arterial roadway, as indicated on the Town's Thoroughfare Plan. 4. Developed Residential ("DR"): Property within the R-15, R-12, R-11, R-10, R- 9, R8, R -FV, R -TT, T -OH, R -OHF, R -S, MH, or any residentially zoned Planned Development districts, which: a. Is a recorded subdivision that has had at least one building permit for a residential structure; or b. Is within six hundred feet (600') of areas described in paragraph 4a. I. Antenna Facility Impact Levels: For the purpose of determining appropriate locations for antenna facilities, the Town recognizes differing levels of impact for antenna facilities depending upon physical location, aesthetics, and land use compatibility. These Antenna Facility impact levels are described as follows: 1. Monopole: A monopole tower requires a Special Exception. The antenna equipment may not extend more than five feet (5') above the highest point on the monopole. 4. Level 4 Stealth Facility: The antenna on a Level 4 Stealth Facility is located on an existing structure (other than a telecommunications tower) including, but not limited to, a building, water tower, utility tower, steeple, or light pole. The antenna is neither screened nor hidden. For the purpose of this level, a pole or tower may be reconstructed to structurally hold the antenna but the height of the structure cannot be increased. 5. Level 3 Stealth Facility: The antenna on a Level 3 Stealth Facility is located on an existing structure (other than a telecommunications tower) including, but not limited to, a building, water tower, utility tower, steeple, or light pole. The antenna shall be aesthetically painted, constructed, or applied with material so that it is incorporated into the pattern, style, and material of the structure to effectively render the antenna unnoticeable. A new structure may be constructed to hold or house the antenna or equipment; however, the structure must be consistent with the overall architectural features of the primary buildings. 4. Level 2 Stealth Facility: The antenna on a Level 2 Stealth Facility is attached to the structure in such a manner that if it is seen it appears unrecognizable as an antenna, and the structure in which or on which the antenna is attached is an integral part of an overall development. 5. Level 1 Stealth Facility: The antenna on a Level 1 Stealth Facility is attached to the structure in such a manner that the antenna is completely unseen and the structure in which or on which the antenna is attached is an integral part of an overall development. I Antenna Facility Siting Matrix: Antenna facilities shall be located in accordance with the following Siting Matrix. This matrix provides for areas where antenna facilities may be located as permitted uses, areas where they may be located with a Special Exception, and areas where they are prohibited. This matrix does not apply to amateur antenna facilities or structures. Permitted Requires a Use TSpecial Prohibitei Monopole over 120 ft. Monopole up to 120 ft. Level 4 Stealth Facility Level 3 Stealth Facility Level 2 Stealth Facility Level 1 Stealth Facility FC UR WC DR K. Special Exception: When a Special Exception is required by this section for the location of an antenna facility or an antenna, the applicant must submit an application in accordance with the procedure established in this ordinance. Special Exceptions to this section may only be granted by the Board of Adjustment in accordance with Article 8, Section 55 of the Comprehensive Zoning Ordinance. 1. Application: In order to properly evaluate an application to locate an antenna facility or an antenna that requires a Special Exception, the applicant must provide the following information: a. A Special Exception application and appropriate application fee. b. A narrative detailing the proposed antenna facility. The narrative must indicate the following: (1) Whether the proposed structure is a co -location, a new monopole tower or a new alternate mounting structure. (2) The height of the proposed tower. (3) Why the antenna facility is necessary at the proposed location. (4) The name(s) of the telecommunications providers or other users of the antenna or tower and describe the use to be made by each user; (5) Whether the applicant has made an effort to co -locate the facilities proposed for this antenna facility on existing antenna facilities in the same general area. Identify the location of these existing sites, and describe in detail these efforts and explain in detail why these existing sites were not feasible. (6) Attach all studies or tests performed which demonstrate why the existing sites will not provide sufficient signal coverage. (7) Provide written documentation from existing sites owners and/or operators which confirm the statements provided. (8) Indicate whether the existing sites allow/ promote co -location and, if not, describe why not. (9) Whether co -location will be allowed to other telecommunications providers at the requested site. If they are not allowed, state every reason and the basis of each reason. c. Provide a site plan of the proposed antenna facility at a scale of 1" = 30'. The site plan should be on a single 24" X 36"sheet and include: (1) A survey and legal description of the proposed antenna facility; (2) A detail on how access to the site is to be achieved; (3) A plan view layout of the proposed antenna facility clearly showing: (a.) The location of the facility, (b.) All equipment and structures in the proposed antenna facility, (c.) The required off street parking space, (d) Distances to property lines, (e.) Required setbacks, (f.) Adjacent land uses and zoning designations, (g.) Existing structures on the site, (h.) Required landscaping or screening of the base of the tower, (i) All recorded and proposed easements, and (j.) Natural features, such as watercourses and trees. d. Elevation drawings showing: (1) The design and height of the proposed antenna facility, (2) Detailed drawings of all structures and equipment, (3) Screening requirements, and (4) All requirements specified in Wireless Antenna Facility Special Exception Request Site Plan Check List. e. If the requested location is in a residential district the applicant must provide evidence that they have made an effort to locate the facility in a nonresidential district. Identify the location of these nonresidential district sites, describe in detail these efforts, and explain in detail why these nonresidential sites were not feasible. Attach all studies or tests performed which demonstrate why the nonresidential sites will not provide sufficient signal coverage. f. Provide a map showing the proposed provider's current coverage area for the Town. The map must show the roadway network and be labeled. The applicant must also provide propagation analysis showing the areas the proposed provider's existing antenna currently covers, the areas the applicant's existing sites and the requested site would cover. The propagation analysis must be labeled and have a legend. g. Describe the applicant's master antenna facilities plan for the Town. Attach maps and other related documentation. Provide information indicating each phase of the plan. 2. Consideration of Application: In considering whether to grant a Special Exception, the Board of Adjustment shall consider the following: a. The appropriateness of the location and design of the antenna facility; b. The potential for interference with the enjoyment of the use of surrounding properties; c. Aesthetics; Impact, including but not limited to, the surrounding topography, surrounding tree coverage and foliage; proposed buffering; and the design of the antenna facility, with particular reference to design characteristics that have the effect of reducing or eliminating visual obtrusiveness; d. The proposed height of the antenna facility relative to surrounding structures; e. The zoning district and the adjoining zoning districts of the property for which Special Exception is sought; f. The compliance with the Town's regulations; and g. The availability of suitable alternative sites. Suitable alternative site(s) shall mean a location or locations that would provide the same or better signal coverage than the proposed site for which a Special Exception is requested. The applicant shall provide documentation supporting his contention that alternative site(s) are not suitable and/or available. 3. Procedures for Consideration of Special Exception: The procedures for consideration of an application for a Special Exception requested under this section of the ordinance shall be the same as those procedures for a request of a Conditional Use Permit under Article 6, Section 44 of this Ordinance. L. Written Report: Denial of an application for a Special Exception under this section must be documented in writing in accordance with the requirements of the Telecommunications Act of 1996 as amended. M. Appeal: An applicant may appeal the decision of the Board of Adjustment to the District Court by filing a written Notice of Appeal within ten (10) days following the date the Administrator notifies the applicant of his decision. A decision not timely appealed in accordance with this section shall be final. N. Procedures for Consideration of Special Use Permit: The procedures for consideration of an application for a Special Use Permit requested under this Ordinance shall be as specified in Article 6, Section 44.1 of this Ordinance. SECTION 4. CUMULATIVE REPEALER That this Ordinance shall be cumulative of all other Ordinances and shall not repeal any of the provisions of such Ordinances except for those instances where there are direct conflicts with the provisions of this Ordinance. Ordinances or parts thereof in force at the time this Ordinance shall take effect and that are inconsistent with this Ordinance are hereby repealed to the extent that they are inconsistent with this Ordinance. Provided however, that any complaint, action, claim or lawsuit which has been initiated or has arisen under or pursuant to such Ordinance on the date of adoption of this Ordinance shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall remain in full force and effect. SECTION 5. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. CF.CTTnN SAVINGS All rights and remedies of the Town of Trophy Club, Texas, are expressly saved as to any and all violations of the provisions of any other Ordinance affecting wireless antennas and antenna facilities regulations which have secured at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such Ordinances same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 7. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision of this Ordinance shall be fined, upon conviction, in an amount not to exceed the sum of Two Thousand Dollars ($2,000.00) and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. SECTION 8. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish, the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 9. ENGROSSMENT & ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by copying the exact Caption, Penalty and Effective Date in the minutes of the Town Council and by filing this Ordinance in the ordinance records of the Town. SECTION 10. EFFECTIVE DATE That this Ordinance shall be in full force and effect from and after its date of passage, in accordance with law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas this day of , 2004. Mayor Town of Trophy Club, Texas Effective Date: [SEAL] ATTEST: Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Town Attorney Town of Trophy Club, Texas COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item NO.D.I Discuss and take appropriate action regarding an Ordinance amending Article 5, Section 42 of Zoning Ordinance No. 2000-06 P&Z, relating to "Wireless Antennas and Antenna Facilities". EXPLANATION: The Planning & Zoning Commission has completed their review and revisions to the Wireless Antenna Ordinance. The majority of the changes were made to the amateur antenna section. The main changes are as follows: Height limits, (increased); location, (expounded upon); design, (specifies tapered design); and nonconforming uses, (designated). The Siting Matrix was specified to apply to commercial antennas, not amateur. Additionally, a provision for Special Use Permit was added for amateur antennas exceeding the height limits specified. RECOMMENDATION: A motion was made by the Planning & Zoning Commission to approve the repeal and revision of the Wireless Antenna Facilities Ordinance. ACTION BY COUNCIL: (Initials) KCF COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 9-20-2004 Subject: Agenda Item No.D.2 Discuss and take appropriate action regarding the approval/rejection of a proposed oil, gas, and mineral lease -non -drill site pooling agreement for the development of the Town's interest in Harmony Park by and between the Town and Star Of Texas Energy Services, Inc., a substantial copy of which is attached hereto; and authorizing the Mayor or his designee to execute necessary documents. EXPLANATION: At the May 5, 2004 Council Meeting, the Town Council conducted public hearings and passed ordinances approving the subsurface use or taking of Harmony Park through an oil, gas, and mineral lease non -drill site pooling agreement with Star of Texas Energy. Star of Texas Energy was the apparent successful bidder for the Town's mineral interest in Harmony Park. At that time, Town Council directed the Town Attorney to complete the negotiation of the terms of the lease with Star of Texas and to bring the final agreement back to Council for review and approval. The Agreement provided in Council's agenda packet is the proposed Oil, Gas, and Mineral Lease Non -Drill Site Pooling Agreement negotiated between the Town and Star of Texas. The Agreement does not allow any drilling on the surface of Harmony Park. The Agreement allows the Town to pool its mineral interest in Harmony Park with other mineral interests already part of a proposed drill site and provides for a 1/4 royalty interest to the Town. This Agreement has been reviewed by the Town's oil and gas attorney and the negotiations were conducted in accordance with his advice. Attachments: Non Drill Site/Pooling Agreement with Exhibits OIL, GAS AND MINERAL LEASE NON -DRILL SITE/POOLING AGREEMENT THIS OIL, GAS AND MINERAL LEASE AND NON -DRILL SITE POOLING AGREEMENT (the "Lease") is made this day of , 2004 (the "Effective Date"), between The Town of Trophy Club, Denton and Tarrant Counties, Texas, acting herein by and through its Mayor, Scott Smith, duly authorized by resolution to execute this Lease ("LESSOR"), whose address is: 100 Municipal Drive, Trophy Club, Texas 76262 and Star of Texas Energy Services, Inc. ("LESSEE"), whose address is: P.O. Box 4038, Lago Vista, Texas 78645 WITNESSETH: 1. Lease of Land. LESSOR in consideration of Two Thousand Three Hundred Nine and 97/100 Dollars ($2,309.97), in hand paid, of the royalties herein provided, and of the agreements of LESSEE herein contained, hereby leases and lets exclusively unto LESSEE for the purpose of a non -drill site/pooling agreement for investigating, exploring, prospecting, drilling and mining for and producing oil, gas and all associated minerals, to produce, save, take care of, treat, transport and own said products, the following described land in Denton County, Texas, to -wit: The Land know and designated as Harmony Park — Non -Drill Site Pooling Agreement: An approximate 13.1998 acre tract of land situated in the JOHN R. MICHAEL SURVEY, Abstract No. 821, in the Town of Trophy Club, Denton County, Texas, and being a part of a tract of land described in a deed from Johnson-Loggins, Inc. to Gibraltar Savings Association as recorded in Volume 837, Page 16, of the Deed Records of Denton County, Texas and more fully described on Exhibit "A", a copy of which is attached hereto and incorporated herein. For all purposes of this Lease, said land is estimated to comprise 13.1998 acres, whether it actually comprises more or less. However, there is expressly excepted from this Lease and reserved to LESSOR, its successors and assigns, all vanadium, uranium, plutonium, thorium, fissionable minerals and all other minerals of every kind and character in, on and under the land, except only oil, gas, casinghead gas and their byproducts and such other hydrocarbon substances, carbon dioxide and sulfur as are necessarily produced with and incidental to the production of oil and gas, or either of them. The Lease consists of this Lease Agreement; the Town of Trophy Club Bid Form; Oil and Gas Lease Bid Instructions; and Lessee's response to Town's Oil and Gas Lease Bid. In the event of conflicts between the terms or provisions of any of the foregoing documents, the conflict shall be resolved with priority of interpretation given to the documents in the order that those documents are listed in this paragraph. Copies of all such documents are attached hereto and incorporated herein as Exhibit "B". 2. Reservation and Surface Use Prohibition / Seismic Testing. There is hereby excepted and reserved to LESSOR the full use of the land covered hereby and all rights with respect to the surface and subsurface thereof for any and all purposes and all minerals except those specifically identified in Paragraph 1. LESSOR reserves and excepts from this Lease all of the surface of the land described in Paragraph I and those corresponding depths lying between the surface of the land and a subsurface depth of one hundred feet (100'), and LESSEE agrees that it will not locate any wells, conduct any drilling operations, set any surface equipment, utility lines, road or other surface facilities, or conduct any other operations or activities of any nature on the surface of such land. Drilling operations under this lease shall be conducted by means of a well or wells, the surface location of which are not located on the lands subject to this lease. This lease does not grant or include any right of access to the land covered hereby for any purpose. LESSEE has no rights under this lease to conduct geophysical seismic surveys on the leased premises. During the term of this lease, LESSOR shall not allow any other party to conduct geophysical surveys on the lands covered by the lease without first allowing LESSEE the first opportunity to do so. In the event LESSEE wishes to conduct geophysical seismic operations on the leased premises, LESSEE must obtain a separate seismic permit from LESSOR, which permit shall include among other things restrictions for surface use, predetermined locations of shot holes, payments for damages to the Surface Lessees, and other restrictions placed on LESSEE by LESSOR. LESSOR may withhold granting a seismic permit to any and all of the leased premises if in the sole opinion of LESSOR such operations may cause undue surface damages or disturbances to the Surface Owners, or such operations may create potentially hazardous conditions to LESSOR'S facilities or properties. 3. Primary Term: This is a "Paid Up" lease in that no delay rentals or operations are necessary to perpetuate this lease during the primary term, and subject to the other provisions here contained, this Lease shall be for a term of three (3) years from the Effective Date (the "Primary Term") and as long thereafter as oil, gas and other minerals are produced in commercial quantities from said land or land with which said land is pooled hereunder, or this lease is held by some other provision herein. 4. Royalty: As royalty, LESSEE covenants and agrees to pay: a. As a royalty on oil (including all hydrocarbons produced in liquid form at the mouth of the well and also condensate, distillate, and other liquid hydrocarbons recovered from oil or gas run through a separator or similar equipment produced and saved by LESSEE from the leased premises or lands pooled therewith),25% of the proceeds from the sale of gross production, or at the option of LESSOR, or after thirty (30) days written notice from Lessor, which notice may be given from time to time, deliver free of cost to Lessor at the wells such percentage of all oil recovered or separated on the leased premises.. LESSEE agrees that before any gas produced from the land is sold, used or processed in a plant, it will be run, free of cost to the parties entitled to royalties, through an adequate oil and gas separator of conventional type, or other equipment at least as efficient, to the end that all liquid hydrocarbons recoverable from the gas by such means will be recovered. Upon written consent of the royalty owners, the requirement that gas be run through a separator or other equipment may be waived upon terms and conditions as prescribed by them. b. As a royalty on any gas, which is defined as all hydrocarbons and gaseous substances not defined as oil in subparagraph 4.a. above, produced from the leased premises or lands pooled therewith (except as provided in this Lease with respect to gas processed in a plant), 25% of the gross production or at the option of LESSOR, after thirty (30) days written notice from Lessor, which notice may be given from time to time, deliver free of cost to Lessor at the wells or to the credit of Lessor into the pipeline to which the well may be connected such percentage of all gas (including substances contained in such gas) recovered or separated on the leased premises. c. On all substances, including, but not limited to carbon dioxide and sulfur, permitted to be produced from the land by virtue of this Lease, and products, except liquid hydrocarbons, produced or manufactured from gas, and for which no royalty is otherwise specified in this Lease, LESSOR shall have and be entitled to the royalty percentage of that produced or saved to be delivered to LESSOR, free of all costs, or, at the option of LESSOR, which may be exercised from time to time, LESSEE shall account to LESSOR for the royalty percentage.. d. Accounting and payment to LESSOR of royalties from the production of oil and gas from any well shall commence no later than ninety (90) days after the date the well commences first production. Thereafter, all accountings and payments of royalties shall be made in accordance with the Proceeds Payment Act of the State of Texas, found in Texas Natural Resources Code §91.401, et seq. Should LESSEE at any time fail to make royalty payments to LESSOR on or before the last day of the third calendar month following the calendar month in which the production occurred, this Lease shall automatically terminate unless the payments are made within thirty (30) days after written notice is given to LESSEE. Any royalties provided for in this Lease which are not paid to LESSOR within the applicable time periods specified in this paragraph shall accrue interest at the same rate as judgments under the laws of the State of Texas from due date until paid. Acceptance by LESSOR of royalties which are past due shall not act as a waiver or estoppel of LESSOR'S right to receive or recover any and all interest due under the provisions of this paragraph unless the written acceptance or acknowledgment by LESSOR to LESSEE expressly so provides. LESSEE shall pay all reasonable attorney's fees incurred by LESSOR in connection with any lawsuit in which LESSOR is successful in recovering royalties or interest or in terminating this Lease due to LESSEE'S failure to pay royalties within the periods set forth above. e. Minimum Royalties: On each anniversary date of the first sale of oil and gas, or either, produced from the leased premises or from lands pooled therewith, and for so long as LESSEE is retaining all or any portion of the lands covered hereby by the production of oil and/or gas, if the royalties (including shut-in payments) accrued hereunder, during the preceding twelve (12) months shall not have equaled at least the amount of fifteen dollars ($15.00) per acre for each net mineral acre of land subject to the terms hereof at the commencement of said twelve (12) months, LESSEE covenants and agrees that, within thirty (30 days after the receipt from LESSOR of written notice to such effect, LESSEE will promptly pay to LESSOR as an additional royalty the amount of the difference between such accrued royalties and the sum to fifteen dollars ($15.00) per acre for each net mineral acre subject to the terms hereof at the commencement of said twelve (12) months. This additional royalty provision, when applicable, shall be in effect for an during the life of this lease after the primary term. LESSOR'S royalty shall never bear, either directly or indirectly, any part of the costs or expenses of producing, gathering, dehydrating, compressing, transporting, manufacturing, processing, treating, marketing or otherwise making the oil, gas and other products produced hereunder ready for sale, nor any part of the costs of constructing, operating or depreciating any plant or other facilities or equipment for processing or treating oil or gas produced from the land or lands pooled therewith. 5. Shut -In Gas. If LESSEE drills a well on land which the LESSOR has permitted to be pooled herewith, which well is capable of producing gas but such well is not being produced, and this Lease is not being maintained otherwise as provided herein, this Lease shall not terminate, whether it being during or after the Primary Term (unless released by LESSEE) and it nevertheless shall be considered that oil and gas is being produced from the land covered by this Lease. When, at the expiration of the Primary Term or any time or times thereafter, the Lease is continued in force in this matter, LESSEE shall pay or tender as royalty to the parties who at the time of such payment would be entitled to receive royalty hereunder if the well is producing, or deposit directly with LESSOR at its address shown herein, a sum equal to Fifteen and 00/00 Dollars ($15.00) for each gross acre of land subject to this Lease at the time such payment is made. The first payment of such sum shall be on or before the first day of the calendar month after the expiration of ninety (90) days from the date the Lease is not otherwise maintained, and thereafter subsequent payments may be made at annual intervals. LESSEE'S failure to pay or tender or properly or timely pay or tender such sum as royalty shall render LESSEE liable for the amount due and shall operate to terminate this Lease automatically. 6. Limit of Shut -In: Notwithstanding anything to the contrary in this Lease, it is expressly agreed and provided that this Lease cannot and shall not be extended beyond the Primary Term by reason of the shut-in well provisions of Paragraph 5 for any single period of more than two (2) consecutive years or more than three (3) years in the aggregate. 7. Compensatory Royalties: If, during the period the lease is kept in effect by payment of the shut-in gas royalty, gas is sold and delivered in paying quantities from a well located within six hundred sixty (660) feet of the leased premises and completed in the same producing reservoir, or in any case in which drainage is occurring, the right to continue to maintain the lease by paying the shut-in gas royalty shall cease, but the lease shall remain effective for the remainder of the year for which the shut-in payment has been paid. The LESSEE may maintain the lease for two (2) more successive years by LESSEE paying compensatory royalty at the royalty rate provided in this lease as if the well creating this obligation was drilled on the leased premises. The compensatory royalty is to be paid monthly to the LESSOR beginning on or before the last day of the month following the month in which the gas, along with any substances produced in association therewith, is produced from the well creating this obligation; if the compensatory royalty paid in any 12 -month period is in an amount less than the annual shut-in payment, LESSEE shall pay an amount equal to the difference within thirty (30) days from the end of the 12 -month period; provided however none of these provisions will relieve LESSEE of the obligation of reasonable development; provided further, however, with the LESSOR'S written approval, the payment of compensatory royalties shall satisfy the obligation to drill offset wells to the well creating the obligation herein. Compensatory royalty payments that are not timely paid will accrue penalty and interest in accordance with Paragraph 4 of this lease. 8. Pooling: Subject to the reservations and surface use prohibitions of paragraph 2 of this Lease, LESSEE, at its option, is hereby given the right and power to pool or combine the acreage covered by this lease or any portion thereof as to oil and gas, or either of them, with any other land covered by this lease, and/or with any other land, lease or leases in the immediate vicinity thereof to the extent hereinafter stipulated, when in LESSEE'S judgment it is necessary or advisable to do so in order properly to explore, or to develop and operate said leased premises in compliance with the spacing rules of the Railroad Commission of Texas, or other lawful authority, or when to do so would, in the judgment of LESSEE, promote the conservation of oil and gas in and under and that may be produced from said premises. Units pooled for oil hereunder shall not exceed forty (40) acres, plus a tolerance of 10 percent (10%) thereof, each in area, and units pooled for gas hereunder shall not exceed in area 160 acres each plus a tolerance of ten percent (10%) thereof, provided that should governmental authority having jurisdiction prescribe the creation of units larger than those specified, for the drilling or operation of a well at a regular location or for obtaining maximum allowable from any well to be drilled, drilling or already drilled, units thereafter created may conform in size with those prescribed by governmental regulations. LESSEE under the provisions hereof, may pool or combine acreage covered by this lease or any portion thereof as above provided as to oil in any one or more strata and as to gas in any one or more strata. The units formed by pooling as to any stratum or strata need not conform in size or area with the unit or units in to which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in one or more instances shall not exhaust the rights of the LESSEE hereunder to pool this lease or portions thereof into other units. LESSEE shall file for record in the appropriate records of the county in which the leased premises are situated an instrument describing and designating the pooled acreage as a pooled unit; and upon such recordation the unit shall be effective as to all parties hereto, their heirs, successors, and assigns, irrespective of whether or not the unit is likewise effective as to all other owners of surface mineral, royalty or other rights in land included in such unit. LESSEE may at its election exercise its pooling option before or after commencing operations for or completing an oil or gas well on the leased premises, and the pooled unit may include but is not required to include, land or leases upon which a well capable of producing oil or gas in paying quantities has theretofore been completed or upon which operations for the drilling of a well for oil and gas have theretofore been commenced. In the event of operations for drilling on or production of oil or gas from any part of a pooled unit which includes all or a portion of the land covered by this lease, regardless of whether such operations for drilling were commenced or such production was secured before or after the execution of this instrument or the instrument designating the pooled unit, such operations shall be considered as operations for drilling on or production of oil or gas from land covered by this lease whether or not the well or wells be located on the premises covered by this lease and in such event operations for drilling shall be deemed to have been commenced on said land within the meaning of paragraph 9 of this lease; and the entire acreage constituting such unit or units, as to oil and gas, or either of them, as herein provided, shall be treated for all purposes, except the payment of royalties on production from the pooled unit, as if the same were included in this lease. For the purpose of computing the royalties to which owners of royalties and payments out of production and each of them shall be entitled on production of oil and gas, or either of them, from the pooled unit, there shall be allocated to the land covered by this lease and included in said unit (or to each separate tract within the unit if this lease covers separate tracts within the unit) a pro rata portion of the oil and gas, or either of them, produced from the pooled unit after deducting that used for operations on the pooled unit. Such allocations shall be on an acreage basis --that is to say, there shall be allocated to the acreage covered by this lease and included in the pooled unit (or to each separate tract within the unit if this lease covers separate tracts within the unit) that pro rata portion of the oil and gas, or either of them, produced from the pooled unit which the number of surface acres covered by this lease (or in each such separate tract) and included in the pooled unit bears to the total number of surface acres included in the pooled unit. Royalties hereunder shall be computed on the portion of such production, whether it be oil and gas, or either of them, so allocated to the land covered by this lease and included in the unit just as though such production was from such land. The production from an oil well will be considered as production from the lease or oil pooled unit from which it is producing and not as production from a gas pooled unit; and production from a gas well will be considered as production from the lease or gas pooled unit from which it is producing and not from an oil pooled unit. The formation of any unit hereunder shall not have the effect of changing the ownership of any shut-in production royalty which may become payable under this lease. If this lease now or hereafter covers separate tracts, no pooling or unitization of royalty interest as between any such separate tracts is intended or shall be implied or result merely from the inclusion of such separate tracts within this lease, but LESSEE shall nevertheless have the right to pool as provided above with consequent allocation of production as above provided. As used in this paragraph 8, the words "separate tract" mean any tract with royalty ownership differing, now or hereinafter, either as to parties or amounts from that as to any other part of the leased premises. 9. Termination. a. If, at the expiration of the Primary Term, LESSEE is not engaged in the actual drilling of a well under the terms of this Lease or if LESSEE has completed or abandoned a well on the land or lands pooled therewith within thirty (30) days prior to expiration of the Primary Term and is not, at the expiration of ninety (90) days after the date of completion or abandonment of the well, engaged in the actual drilling of another well under the terms of this Lease, this Lease shall then terminate as to all of the land, save and except the following: (1) Each well producing oil or being reworked, and classified as an oil well under the rules and regulations of the Railroad Commission of Texas, together with forty (40) acres around each such well (an "Oil Unit"). (2) Each well producing gas (or capable of producing gas with all shut-in royalty having been paid thereon) or being reworked, and classified as a gas well under the rules and regulations of the Railroad Commission of Texas, together with the proration unit around each such well (a "Gas Unit"). b. Notwithstanding the foregoing, if the Railroad Commission of Texas or other authority having jurisdiction, by rule or order prescribes a larger or a smaller number of acres for the purposes of securing the maximum allowable production, each unit shall be increased or decreased in size as necessary to conform to the number of acres prescribed by the rule or order, but if the rule or order provides for or permits optional sized tracts or spacing, the unit shall be the smallest tract permitted by the rule or order. c. If, at the expiration of the Primary Term, LESSEE is engaged in the actual drilling of a well under the terms of this Lease or if LESSEE has completed or abandoned a well on the land or lands pooled therewith within thirty (30) days prior to expiration of the Primary Term and is, at the expiration of ninety (90) days after completion or abandonment of the well, engaged in the actual drilling of another well under the terms of this Lease this Lease shall not terminate so long as LESSEE pursues the drilling of the well with reasonable diligence to completion or abandonment and so long as LESSEE commences the actual drilling of additional and successive wells under the terms of this Lease at intervals not exceeding ninety (90) days between completion of a well as a producer or dry hole and commencement of actual drilling of the next well under the terms of this Lease. If and when LESSEE fails to commence the actual drilling of a well within the applicable interval (or within the extended time provided in subparagraph 9.d. below, this Lease shall then terminate to all of the land, save and except the Oil Units and Gas Units provided in subparagraph 9a. above. Upon expiration of the Primary Term or the cessation of the continuous drilling program set forth herein, whichever is later, this Lease shall also terminate as to all depths below each unit retained as to depths below a depth of one hundred feet (100') beneath the stratigraphic equivalent of the deepest producing horizon or zone for each unit. d. If LESSEE, in the conduct of actual drilling operations under this Lease after the expiration of the Primary Term, commences the actual drilling of any next succeeding well within less than the ninety (90) day time interval specified in subparagraph 9.c. and thus speeds up the development of the land, LESSEE shall have credit in time for the accelerated development and may, in the conduct of subsequent actual drilling operations, take advantage of the credit in time on a cumulative basis and thus extend the time for the commencement of actual drilling of any subsequent well or wells required to be drilled under the provisions of this Lease in order to prevent termination of this Lease. Within ten (10) days of the commencement of the actual drilling of each well under the terms of this Lease, LESSEE shall give LESSOR written notice of the date of commencement. Within ten (10) days after the completion or abandonment of each well under the terms of this Lease, LESSEE shall give LESSOR written notice of the date of completion or abandonment and also of the time credit, if any claimed by LESSEE as a result of having commenced the actual drilling of the well within less than the required interval. If LESSEE fails to timely so notify LESSOR in any of these respects, LESSEE shall not be entitled to any credit in time for accelerated development. Nothing contained in this paragraph shall relieve LESSEE of any offset obligation arising by implication or under the terms of this Lease, but any well drilled by LESSEE to satisfy an offset obligation will entitle LESSEE to the privileges of this paragraph. 10. Dry Hole Cessation of Production During Primary Term: If, during the primary term hereof, and prior to discovery and production of oil or gas on said land, LESSEE should drill a dry hole or holes thereon, or if during the primary term hereof and after the discovery and actual production of oil or gas from the leased premises such production thereof should cease from any cause, this lease shall not terminate but instead be maintained until the end of the primary term. If, within sixty (60) days prior to the end of the primary term, a dry hole should be completed and abandoned, or the production of oil or gas should cease for any cause, LESSEE'S rights shall remain in full force and effect without further operations until the expiration of the primary term; and if LESSEE has not resumed production in paying quantities at the expiration of the primary term, LESSEE may maintain this lease by conducting additional drilling or reworking operations pursuant to Paragraph 11, using the expiration of the primary term as the date of cessation of production under Paragraph 11. If at the expiration of the primary term or any time thereafter a shut-in oil or gas well is located on the leased premises or lands pooled therewith, payments may be made in accordance with the shut-in provisions hereof. 11. Cessation, Drilling, and Reworking Following the Primary Term: If, after the expiration of the primary term, production of oil or gas from the leased premises or lands pooled therewith, after once obtained, should cease from any cause, this lease shall not terminate if LESSEE commences additional drilling or reworking operations within sixty (60) days after such cessation, and this lease shall remain in full force and effect for so long as such operations continue in good faith and in workmanlike manner without interruptions totaling more than sixty (60) days. If such drilling or reworking operations result in the production of oil or gas, the lease shall remain in full force and effect for so long as oil or gas is produced from the leased premises in paying quantities or payment of shut-in gas well royalties or payment of compensatory royalties is made as provided herein or as provided by law. If the drilling or reworking operations result in the completion of a well as a dry hole, the lease as to the unit established for such well will not terminate if the LESSEE commences additional drilling or reworking operations within sixty (60) days after the completion of the well as a dry hole, and this lease as to the unit established for such well shall remain in effect so long as LESSEE continues drilling or reworking operations in good faith and in a workmanlike manner without interruptions totaling more than sixty (60) days until production in paying quantities is reestablished. 12. Removal of Equipment. Subject to the surface use prohibitions of paragraph 2, LESSEE shall have the right at any time during and for one hundred eighty (180) days after the expiration of this Lease to remove all casing. Thereafter, it shall be deemed abandoned to LESSOR. If LESSEE fails to remove such property, casing and fixtures within such 180 day period, at Lessor's option, ownership of the same will vest in LESSOR, LESSOR'S successors and assigns or LESSOR, at its option, may require the removal of said equipment in addition to all other remedies to which LESSOR is entitled under law. 13. Assignment. The rights of either parry hereunder may be assigned in whole or in part, and the provisions hereof shall extend to and bind their respective heirs, successors and assigns; but no change or division in ownership of the land, rentals or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of LESSEE. 14. Title. LESSOR does not warrant or agree to defend the title of the lands covered hereby. LESSEE takes this Lease without warranty of title either express or implied. If LESSOR owns an interest in the oil, gas and minerals leased hereby less than the entire fee simple estate, then the royalties, or other monies accruing from any part of the land to which this Lease covers less than such full interest shall be paid to LESSOR only in the proportion which LESSOR'S interest therein, if any, bears to the whole and undivided fee simple mineral estate therein. It is the sole responsibility of LESSEE to determine the LESSOR's mineral interest. The bonus payment paid for this Lease shall be deemed to be final if no title problems are submitted for resolution within ninety (90) days of the Effective Date. 15. Force Maieure: When drilling, production or other operations under the terms of this Lease or land pooled with such land, or any part thereof are prevented, delayed or interrupted by fire, storm, flood, war, rebellion, insurrection, sabotage, riot, strike, or as a result of some law, order, rule, regulation or necessity of governmental authority, either State or Federal, the Lease shall nevertheless continue in full force and effect and be extended for the period such drilling, production and other operations are so prevented, delayed or interrupted. LESSEE shall not be liable for breach of any express or implied covenants of this Lease when drilling, production or other operations are so prevented, delayed or interrupted, except that nothing in this paragraph 12 shall be construed to suspend the payment of delay rentals, shut-in royalty or any other amount otherwise required to maintain this Lease in effect. 16. Designation of Gas Unit. a. Upon completion of the first well as a producer of oil and/or gas in paying quantities (whether the first or a subsequent well drilled), LESSEE shall designate an appropriately sized drilling unit around said first producing well, out of the above described property, by filing a written designation in the Deed Records of Denton County Texas and shall provide LESSOR with a copy of such unit designation. b.. If an additional well is completed as a producer of gas in paying quantities, LESSEE shall again designate an approximately sized drilling unit around said additional producing well, out of the above described property, by filing a written designation in the Deed Records of Denton County, Texas and shall provide LESSOR with a copy of such unit designation. LESSEE shall designate all drilling units in a fair and reasonable manner so that the remaining acreage not included in the drilling units is capable of being drilled or pooled with other lands. Notwithstanding anything herein to the contrary, in no event shall the Leased Premises be pooled into more than two (2) drilling units. All designations of units as provided in this paragraph 13 shall be in accordance with and subject to the provisions of paragraph 8 above. 17. Indemnifications and Insurance / Hazards. LESSEE shall inform the LESSOR of any potential or existing dangers and to warn the LESSOR of any and all hazards that may arise or exist as a result of the LESSEE'S operations, including but not limited to hazards upon the surface of the property due to the subsurface operations. LESSEE shall provide or cause to be provided the insurance described below for each well drilled under the terms of this Lease, such insurance to continue until the well is abandoned and the site restored. Such insurance shall provide that LESSOR shall be a co-insured, without cost, and that said insurance can not be canceled or terminated without thirty (30) days prior notice to LESSOR and ten (10) days notice to LESSOR for nonpayment of premiums. a. General Requirements. Indemnification and Express Negligence Provisions. LESSEE shall 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 LESSOR, it agents, officers, 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 oil and gas drilling and production performed by the LESSEE under this lease and the LESSEE shall fully defend, protect, indemnify, and hold harmless the LESSOR, and/or its departments, agents, officers, servants, 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 LESSOR, 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 LESSEE, 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 oil and gas well drilling and production performed by the LESSEE under this lease and, the LESSEE agrees to indemnify and hold harmless the LESSOR, and/or its departments, and/or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the LESSOR and/or, its departments, it's officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the LESSOR 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 NEGLIGENCE OF THE LESSOR OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF ITS DUTIES UNDER THIS LEASE. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE LESSEE TO INDEMNIFY AND PROTECT THE LESSOR AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE TOWN OF TROPHY CLUB, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. b. All policies shall be endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON -RENEWED WITHOUT 30 DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE TOWN EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED". C. Liability policies shall be written by carriers licensed to do business in Texas and with companies with A: VIII or better rating in accordance with the current Best Key Rating Guide, or with nonadmitted carriers that have a financial rating comparable to carriers licensed to do business in Texas approved by the Town. d. Liability policies shall name as "Additional Insured" the Town and its officials, agents, employees, and volunteers. e. Certificates of insurance must be presented to the Town evidencing all coverages and endorsements required by this Section 35-508, and the acceptance of a certificate without the required limits and/or coverages shall not be deemed a waiver of these requirements. f. Claims made policies will not be accepted except for excess policies or unless otherwise provided by this Article. g. Required Insurance Coverages 1. Commercial General Liability Insurance. Coverage should be a minimum Combined Single Limit of $1,000,000 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 contractors protective liability and personal injury. 2. 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 material or other irritants, contaminants or pollutants. 3. Automobile Liability Insurance. Minimum Combined Single Limit of $500,000 per occurrence for Bodily Injury and Property Damage. Such coverage shall include owned, non -owned, and hired vehicles. 4. Worker's Compensation Insurance. In addition to the minimum statutory requirements, coverage shall include Employer's Liability limits of at least $100,000 for each accident, $100,000 for each employee, and a $500,000 policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the Town, its officials, agents, employees, and volunteers for any work performed for the Town by the LESSEE. 5. Excess (or Umbrella) Liability Insurance. Minimum limit of $10,000,000 covering in excess of the preceding insurance policies. 6. Control of Well Insurance. a. Minimum limit of $5,000,000 per occurrence. b. Policy shall cover the Cost of controlling a well that is out of control, Redrilling or Restoration expenses, Seepage and Pollution Damage. Damage to Property in the LESSEE's Care, Custody, and Control with a sub -limit of $500,000 may be added. 18. Offset Well Requirement. In the event a well or wells producing oil and gas in any quantities should be brought in by LESSEE or any other LESSEE on adjacent lands and within 660 feet of the land or lands pooled, by permission of LESSOR, with such lands, LESSEE agrees to drill such offset wells as a reasonably prudent LESSEE would drill under the same or similar circumstances. 19. Location of Drilling Activity, Pipelines and Equipment: No drilling activity shall be conducted on and no pipelines, equipment or other structures shall be placed on or under any pavement, concrete, asphalt, or any other improved surface area situated the above described land except as specifically allowed in paragraph 2 of this Lease. The location of any pipelines installed by LESSEE shall be approved in advance by LESSOR, shall not be located on the lands covered by this Lease, and shall be situated along routes that least interfere with LESSOR's existing or future use of the surface. No equipment or roads shall be placed or built on Town property. The location of wells shall comply with Chapter 29, Fire Code, of the Code of Ordinances of the Town of Trophy Club, as amended, and all other applicable laws; provided, however, in no event will any such activities or operations be conducted on the surface of the lands covered by this Lease. 20. Reserves, Contracts and Other Records: (a) LESSEE shall within thirty (30) days after receiving written notice from LESSOR furnish the LESSOR with copies of all contracts under which gas is sold or processed and all subsequent agreements and amendments to such contracts. If LESSEE obtains or creates internally for itself any reserve estimates for the oil and/or gas underlying the lease, then LESSEE shall provide such estimates to LESSOR within thirty (30) days of obtaining or creating such reports. Such contracts and agreements when received by the LESSOR shall be held in confidence by the LESSOR to the extent allowed by law unless otherwise authorized by LESSEE. All other contracts and records pertaining to the production, transportation, sale and marketing of the oil and gas produced on said premises, including the books and accounts, receipts and discharges of all royalties to LESSOR, wells, tanks, pools, meters, and pipelines shall at all times be subject to inspection and examination. (b) Drilling Records: LESSEE shall, within thirty (30) days after receiving written notice from LESSOR, furnish the LESSOR with actual dates of all operations on this lease such as but not limited to, spud date, work over, re-entry, temporary abandonment or plug and abandonment of any well or wells. Such written notice to the LESSOR when requested shall include copies of Railroad Commission forms for application to drill. If requested by LESSOR in writing, copies of well tests, completion reports and plugging reports shall be supplied to the LESSOR at the time they are filed with the Texas Railroad Commission. LESSEE shall supply the LESSOR with any records, memoranda, accounts, reports, or other reasonable information relative to the operation of the above-described premises, which may be requested by the LESSOR, in addition to those herein expressly provided for. LESSOR shall be entitled to receive copies of all well logs obtained from wells drilled on the leased premises, such logs to given to LESSOR within sixty (60) days from the date such logs were created. LESSOR shall hold in confidence all such information to the extent allowed by law provided to LESSOR unless otherwise authorized by LESSEE. (c) Penalties: LESSEE shall incur a penalty whenever reports, documents or other materials are not filed with the LESSOR when due. The penalty for late filing shall be an amount of fifty ($50) dollars per month effective on the date when the affidavits or supporting documents were due based upon the written notification stated herein. 21. Compliance with Laws: LESSEE shall comply with all applicable rules, regulations, ordinances, statutes and other laws in connection with any drilling, producing or other operations under the terms of this Lease, including, without limitation, the oil and gas well regulations of the Town of Trophy Club. 22. Notices: Any notices, communications or payment to a parry hereunder may be given, sent, paid or tendered by pre -paid mail, certified mail, return receipt requested or commercial courier service addressed to said party at the address shown below or such other address as may hereinafter be designated in writing: