Consider a Waiver Request by XTO Energy for a Multiple Gas Well Pad Site Permit and the Issuance of Gas Well Permits for the MBA Lease Located at 1190 Oakland Boulevard Less Than 600 Feet from a Protected Use (COUNCIL DISTRICT 4)

It is recommended that the City Council consider a waiver request by XTO Energy for a multiple gas well pad site permit and the issuance of gas well permits to allow the drilling of the four gas wells on the MBA lease less than 600 feet from a Protected Use.

Pursuant to the City of Fort Worth Code Section 15-36 a permit for well less than 600 feet from a residence, religious institution, hospital building, school or public park requires:

1. A waiver granted by the City Council: or

2. The written consent from all Protected Use property owners filed in the applicable county deed records.

XTO Energy has requested that the City Council conduct a public hearing and grant a waiver to allow four gas wells to be drilled less than 600 feet from Protected Uses on the MBA Lease located at 1190 Oakland Boulevard. The public hearing is necessary if they are unsuccessful in their effort to gain consent from all Protected Use property owners.

Pursuant to the City of Fort Worth Code Section 15-34, XTO Energy has grandfathered this site and has applied for wells that will be drilled within 200-300 feet of Protected Uses. The closest Protected Use is a hotel to the east, approximately 313 feet away. Gateway Park is approximately 451 feet away. There are approximately seven Protected Uses within 600 feet of the pad site.

Pursuant to the City of Fort Worth Code Section 15-34, XTO Energy has also requested the issuance of a Multiple Gas Well Pad Site Permit. Notice that a Multiple Gas Well Pad Site Permit application was filed with the City and was published in the local section of the newspaper. Additionally, the operator placed signs on the property indicating the time and date of this public hearing.

The issuance of a Multiple Gas Well Pad Site Permit is for the sole purpose of allowing future wells to be drilled on an existing pad site and within 600 feet of Protected Uses without obtaining additional waivers and/or variances. Multiple Gas Pad Site Permit applications and gas wells drilled on a permitted pad site must comply with all the standard requirements of gas well sites including distance standards and the acquisition of appropriate waivers for less than 600 feet sites. In addition, all pad site permits must be filed on record by the Operator, at his expense in the applicable county deed records and indicated on all applicable plats filed in the deed records. Each filed pad site permit shall contain the address, lot and block, subdivision name and plat volume and page of each lot, tract or parcel located within 1000 feet of the pad site permit. Notification has been sent to all surface property owners within 1000 feet of the well location.

The access road is off of Oakland Boulevard with a crushed rock all weather surface that will provide proper drainage and fire equipment support. The pad site is an all weather crushed rock surface approximately 380 feet by 420 feet in size. The site is of sufficient size for the drilling of multiple wells and has adequate road access to allow for emergency equipment if necessary.

Impact to Neighboring Property Owners:

The proposed gas development will be in compliance with all local, state and federal environmental regulations and will not adversely affect the floodplain, upland habitat, drainage patterns, erosion, water quality, or current or future use of the surface.

Damage to public thoroughfares adjacent to this lease area directly caused by the proposed gas development will be restored to city and state standards, as applicable, as the well is completed. Any substantial accumulations of dirt, dust and other debris deposited on public thoroughfares by gas development will promptly be removed.

Due to the 24-hour operations some noise interruptions will be encountered by those residents nearby the well site from the rig and some associated machinery and vehicles. Additionally, the drill rig is equipped for night time operations with low intensity lights for safe working conditions.

Drilling and production operations shall be conducted in a manner to minimize noise, vibration, dust and odors. Noise, vibration, dust and odors are generally limited to drilling, completion and re-working operations. Appropriate sound abatement equipment will be in place prior to commencement of drilling operations. The operator will be required to monitor the noise level 24 hours a day and provide the City with reports verifying the decibel levels.

Lighting will be directional on all nocturnal activities, toward the well site so that it will not be a nuisance or safety hazard to adjacent businesses, residential areas or public thoroughfares.

Work hours, noise levels, light intensity and dust will be kept within the levels required by the gas well ordinance.

XTO Energy will comply with current landscaping and screening required by the gas well ordinance.

The production of natural gas resources at this site will have negligible effect on the orderly development of the surface use within the City. The drilling and completion phases will have a disruptive effect on residences within 600 feet.

Gas Drilling Review Committee

The request was brought before the Gas Drilling Review Committee at its December 17, 2009 meeting. No citizens appeared either in opposition or support of the application. XTO informed the staff that they were considering individual well permits that would be configured in such a way as to avoid the 600 foot setback to existing protected uses. XTO was advised that the City had acquired additional parkland to the north (Exhibit 3) measured approximately 100 feet from the pad site and that the site was within 600 feet of Gateway Park.  Based on the new information regarding the park, XTO indicicated it would pursue a Multiple Gas Well Pad Site Permit.

The location is in COUNCIL DISTRICT 4.