Proposed Gas Drilling and Production Regulations
Transcript of Proposed Gas Drilling and Production Regulations
City Council Briefing August 27, 2007 1
Proposed Gas Drilling and Proposed Gas Drilling and Production RegulationsProduction Regulations
City Council Briefing
August 27, 2007
City Council Briefing August 27, 2007 2
Purpose of BriefingPurpose of BriefingOutline need for code amendmentsBackground on natural gas production in the Barnett ShaleOutline of natural gas drilling and production phasesOutline major issues to be addressedProvide an update on status of code amendments
City Council Briefing August 27, 2007 3
ReviewReview
City Attorney’s OfficePublic Works and Transportation
UtilitiesStreetsFloodplain
Office of Environmental QualityHuman Resources – Risk ManagementDevelopment ServicesOutside Counsel
City Council Briefing August 27, 2007 4
Committee ReviewCommittee ReviewZoning Ordinance Advisory Committee (ZOAC) considered the proposed ordinance at 6 meetings ZOAC had two additional meetings as part of the CPC Environmental Committee to review conditions for SUPsZOAC and CPC took a bus tour to visit gas drilling and production sites on April 12, 2007 CPC was briefed on August 9, 2007CPC had a public hearing on August 23, 2007 and recommended approval of the proposed ordinance
City Council Briefing August 27, 2007 5
Review of Other Cities Review of Other Cities Ordinances and ProcessesOrdinances and Processes
Ft WorthIrvingArlingtonNorth Richland Hills Flower MoundColleyvilleCoppellGrapevine Southlake
City Council Briefing August 27, 2007 6
Need for Code AmendmentNeed for Code AmendmentNatural gas drilling and production is currently considered a mining useExisting zoning provisions targeted towards sand and gravel miningLocation restrictions
Limited to Agricultural and Industrial Manufacturing Districts by Specific Use PermitProhibited in parkland
Insufficient permitting and review
City Council Briefing August 27, 2007 7
Need for Code AmendmentNeed for Code Amendment
Environmental and Compatibility Issues
Air & water qualityNoiseEarth vibrationsLight and glareAesthetics
City Council Briefing August 27, 2007 8
Other Regulatory Provisions Other Regulatory Provisions & Authority& Authority
Texas Railroad Commission Applicable Federal Law
Air qualityStorm water runoff
City CodesEnvironmental Performance Standards
City Council Briefing August 27, 2007 9
Background Background --The Barnett ShaleThe Barnett Shale
Largest onshore natural gas field in Texas, one of the largest in the U.S.First discovered in 1981, recovery methods developed in 1990s made significant production possibleHeaviest concentration of well development is Tarrant, Johnson and Parker countiesCurrent known boundaries would limit any production to the far western portion of the City of Dallas
City Council Briefing August 27, 2007 10
Background Background --The Barnett ShaleThe Barnett Shale
Barnett Shale gas wells are between 7,000 and 10,000 feet deepLateral drilling techniques reduce the number of wells to be drilled.Lateral lines extend up to 5,000 feet from the primary shaft in any or all directions.
City Council Briefing August 27, 2007 11
Background Background --The Barnett ShaleThe Barnett Shale
Newark East Field
City Council Briefing August 27, 2007 12
Background Background --The Barnett ShaleThe Barnett Shale
City Council Briefing August 27, 2007 13
© 2007 by The Perryman Group
Background Background --The Barnett ShaleThe Barnett Shale
Drilling Activity
City Council Briefing August 27, 2007 14
Vertical v. Horizontal Drilling
Background Background --The Barnett ShaleThe Barnett Shale
City Council Briefing August 27, 2007 15
Typical Gas Well Site PhasesTypical Gas Well Site Phases
Site preparation Drilling operations Wellhead establishmentProductionReworking / FracturingSite reclamation
City Council Briefing August 27, 2007 16
Typical Gas Well PhasesTypical Gas Well Phases
Site preparation
City Council Briefing August 27, 2007 17
Typical Gas Well PhasesTypical Gas Well Phases
Site preparation
Digging the mud pit Lining the mud pit
City Council Briefing August 27, 2007 18
Typical Gas Well PhasesTypical Gas Well Phases
Drilling Operations
Drilling rig move in
City Council Briefing August 27, 2007 19
Typical Gas Well PhasesTypical Gas Well Phases
Drilling Operations
City Council Briefing August 27, 2007 20
Typical Gas Well PhasesTypical Gas Well Phases
Wellhead establishment
City Council Briefing August 27, 2007 21
Typical Gas Well PhasesTypical Gas Well Phases
Production with perimeter screening and landscaping
City Council Briefing August 27, 2007 22
Typical Gas Well PhasesTypical Gas Well Phases
Production with perimeter screening and landscaping
City Council Briefing August 27, 2007 23
Typical Gas Well PhasesTypical Gas Well Phases
Reworking
City Council Briefing August 27, 2007 24
Regulatory IssuesRegulatory Issues
Permissible zoning districtsDistance to other uses and structuresHours of operation Sound regulationsReclamationImpact on city infrastructure (roads)Screening
City Council Briefing August 27, 2007 25
Regulatory IssuesRegulatory Issues
Permissible zoning districtsCurrent Provisions
By SUP only in Agricultural and IMZOAC and CPC recommendation
By SUP in all zoning districtsSUP provides
Public inputAppropriate site specific restrictionsFlexibility
City Council Briefing August 27, 2007 26
Regulatory IssuesRegulatory IssuesDistance to other uses and structures
Current ProvisionsNone – unless imposed by SUPProhibited in parkland
Proposed ordinanceGreater setbacks may be imposed by SUP300 ft from institutional uses, recreation uses and residential uses200 ft from any water well100 ft from any structure75 ft from any right-of-way25 ft from any property line, storage tank or source of ignitionPermitted in parkland
City Council Briefing August 27, 2007 27
Regulatory IssuesRegulatory Issues
Hours of operationCurrent Provisions
No formalProposed ordinance
Fracturing limited to daylight hoursTypical
Drilling phase 24/7 (approximately 30-60 days)Production 24/7 (minimal noise impacts)Fracturing – daylight hours
City Council Briefing August 27, 2007 28
Regulatory IssuesRegulatory Issues
Sound regulationsCurrent Provisions
Defaults to code (varies relative to zoning)Proposed ordinance
Drilling - May not produce a sound level greater than 78dB(a)Fracturing - May not produce a sound level greater than 85dB(a)Production – Defaults to codeMeasured at 300 ft from the well
City Council Briefing August 27, 2007 29
Regulatory IssuesRegulatory Issues
ReclamationCurrent Provisions
Reclamation plan and performance bondProposed ordinance
Reclamation plan and performance bondNo structure may be built over an abandoned well
City Council Briefing August 27, 2007 30
Regulatory IssuesRegulatory Issues
Impact on city infrastructure (roads)Current Provisions
Addressed in SUP and operations planProposed ordinance
Require map of truck routesVideo tape of truck routes showing road conditionsRequire periodic inspections and repair as needed (within 10 days of notice)Require road repair agreement
City Council Briefing August 27, 2007 31
Regulatory IssuesRegulatory Issues
EnvironmentalAllow open or closed loop systems determined by SUPOnly fresh water mud systemsRestriction on metal additives to drilling fluidsEmissionsSalt water disposal wells prohibited
City Council Briefing August 27, 2007 32
Other Regulatory IssuesOther Regulatory Issues
Notice prior to fracturingInsurance and IndemnificationEmergency response planScreening
Site specific requirements through SUP
City Council Briefing August 27, 2007 33
Approved SitesApproved SitesThree approved SUPs
DBU
Nat’l Cemetery
Mountain CreekLake
Mountain CreekBusinessPark
City Council Briefing August 27, 2007 34
StatusStatusCity Plan Commission recommended approval on August 23, 2007Scheduled for City Council consideration on September 12, 2007
City Council Briefing August 27, 2007 35
DiscussionDiscussion
City Council Briefing August 27, 2007 36
Existing Site Plan
Required PlansRequired Plans
City Council Briefing August 27, 2007 37
Operations Plan: Drilling
Required PlansRequired Plans
City Council Briefing August 27, 2007 38
Operations Plan: Production
Required PlansRequired Plans
City Council Briefing August 27, 2007 39
Reclamation Plan
Required PlansRequired Plans