Gas Drilling Program Update. Quicksilver Lake Arlington Drill Site

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1 Gas Drilling Program Update Quicksilver Lake Arlington Drill Site City Council Work Session September 13, 2011

2 Presentation Overview Existing Ordinance Background Proposed Ordinance Discussion Topics Potential Council Consensus items Additional information from previous discussions Road Damage Fee Changes Additional Program Review

3 Ordinance Background November 2003: Arlington adopts first gas drilling ordinance June 2006: first gas well permit issued February 2010: City Council charges Planning and Zoning Commission to review gas drilling program Commission completed Phase 1 and 2 reports July 2011: As of this date, 329 gas well permits have been issued in Arlington, with 25 permits pending approval

4 Consensus Items P Plat Requirement P Flowback operations allowed 24/7 with restrictions P Flood Hazards Ordinance requirements P Standardized notices to 3 business days P Reclaimed water connection P Site remediation plan P Streamlined public hearing notifications P Frac pond design and landscaping

5 Consensus Items P Private road surfacing P Landscaping and fencing standards P Increase consent required to reduce setback for compressor station P Masonry wall for compressor stations P Specific Use Permit time limits P Vehicle routes modified by staff P Updates to noise restrictions

6 Additional Items Definitions Adds drilling zone, flowback and gas drilling Expands protected use to include medical and dental offices, nursing homes, personal care homes, and reservoir used for public water supply

7 Additional Items Gas Well Permit Review Operator required to hold public meeting with neighborhood groups and property owners within 30 days of public hearing Purpose is for public to be able to ask questions and get information related to the project before the public hearing date

8 Additional Items Periodic Reports Must report operation status of each well by January 1 instead of permit anniversary date Bonding and Security Creates tiered level of security requirements Number of Wells Per Site Amount of Security Per Site 1 well $100, wells $150,000 6 or more wells $250,000 A cap of $1,000,000 per site shall apply.

9 Additional Items Technical Regulations Specifies that all operations, facilities and equipment must comply with Fire Code and NFPA standards 24-hour operation of security camera required on all site within 1,000 feet of protected use, residential subdivision or park Noise Sound walls and blankets must be removed no later than 30 days after drilling operations end

10 Additional Items Pipelines Landscaping required on pipeline sites with aboveground facilities such as valves Cleanup and Maintenance Fire protection system components must be painted red and marked according to Fire Code standards

11 AdditionalItems Gas Well Setbacks Setbacks measured from drilling zone boundary, not individual well bores Written consent to reduce setback increased from 60% to 70% of property owners Setback of equipment from protected use increased from 100 feet to 150 feet Notification area measured from SUP boundary Setbacks measured from Drilling Zone

12 Additional Items Drilling Zone Establishes setbacks for all proposed wells on the site at the SUP stage Measure from Drill Zone Measure from Wellhead

13 Road Damage Fee Changes Updated Fees Proposed fees more accurately reflect the anticipated repair cost to roads Fee determined by the street section and the proposed water source (piped vs hauled)

14 Additional Program Review Ongoing meetings with Operators Includes gas well, compressor and pipeline operators Meetings focused on 2 specific areas: Communications Public Safety Additional program recommendations to be presented to City Council (1-2 months)

15 Council Direction Requested Authorize staff to schedule a public hearing on identified changes to the gas well ordinance Authorize staff to schedule a public hearing for an amendment to the zoning ordinance regarding the SUP time limit for gas wells Authorize staff to place the road damage fee resolution on a future agenda

16 Questions & Discussion