Z090-226(we)

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    CITY PLAN COMMISSION THURSDAY, NOVEMBER 18, 2010

    Planner: Warren F. Ellis

    FILE NUMBER: Z090-226 (WE) DATE FILED: July 1, 2010

    LOCATION: North side ofW. Camp Wisdom Road, appr oximately 700 feetwest of FM 1382 Highway

    COUNCIL DISTRICT: 3 MAPSCO: 61A-X

    SIZE OF REQUEST: Approx. 3.71 acres CENSUS TRACT: 165.01

    APPLICANT: XTO Energy Inc

    OWNER: Luminant Generation Company, LLC

    REPRESENTATIVE: Dallas CothrumMASTERPLAN

    REQUEST: An applic ation for a Specific Use Permit for gas drilling andproduction on property zoned an R-7.5(A) Single FamilyDistrict and an A(A) Agricultural District.

    SUMMARY: The purpose of this request is to allow for the drilling,production of natural gas. The Specific Use Permit will allowfor the operation of the production of the natural gas. Fourwells are being proposed for the site.

    STAFF RECOMMENDATION: Approval for a ten-year period with eligibility forautomatic renewal of additional ten-year periods, subject to an existing site plan,operation plan for drilling, operation pi an for production and conditions and approval ofthe deed restrictions volunteered by the applicant.

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    BACKGROUND INFORMATION:

    The appl icant's request fo r a Specific Us e Permit is on property zoned R-7.5 S ingleFamily and A(A) Agricultu r al districts. The surrounding property is undeveloped andis owned by Luminent Energy and the Corp of Engineers.

    The nearest residential lot is approx imatel y 1,200 ft to the east from the pad site.The nearest residential to the east and nort h is approximately 3 ,400 ft away in theCity of G rand Prairie.

    The request site is outside of, but adjacent to, the Mountain Creek floodplain.

    Luminent Energy has vol unteered deed restrictions on their adjacent propertyprohibiting development of resi dential uses and institutional uses within 600 ft of thes ite . The major ity of that property is in the floodplain. The Corp of Engineers hasindicated that they cannot enc umber federal property with deed restrictions butdevelopment on its property is prohibited sin ce it is in the flowage easement for JoePool Lake.

    Zoning History: There has not been any recent zoning changes request in the area.

    Thoroughfares/Streets:

    Thoroughfare/Street Type Existing ProposedROW ROW

    W. Camp Wisdom Road Principal Arterial 100 ft. 100 ft .

    Land Use:

    Zoning Land UseSite R-7.5(A), A(A) UndevelopedNorth R-7.5(A ,FP UndevelopedSouth A(AI UndevelopedEast A(AI UndevelopedWest R-7.5(A ,FP Undeveloped

    Comprehensive Plan: The fowardDallas! Comprehensive Plan was adopted by theCity Council in June 2006 . The request site is undeveloped and is located adjacent tothe Federal Government 's Property (managed by the Corp. of engineers). Theapplicant proposes to drill approximately 14 well s to extract natural gas from the site .There are several measures that are in pi ace pursuant to the Dallas Develop ment Codethat requires the applicant to restore the site back to it nat ural state after the wells havebeen capped. In addition, ther e are additional provis ions in the Code that require theright-of-ways (infrastructure) to be restored.

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    LAND USE

    GOAL 1.4 COORDINATE PLANNING ACTIVITIES TO BALANCE TRANSPORTAl ON,LAND USE, INFRASTRUCUTRE AND TRANSPORTATION

    Policy 1.4.3 Embrace environmental sustainability

    STAFF ANALYSIS:

    Land Use Compatibilit y: The 3.71 acre site is un developed and is loc ated on th enorth side of Camp Wisdom Road , approximately 700 feet west of Belt Line Road. Th eapplicant 's request for a Specific Use Permit is to permit gas drilling and production onthe site.

    The primary land us es surrounding the reques t site are undeveloped tracts of land tothe north, south, east and west. The nearest residential use is approximately 1,200 feetto the east of the request site.

    In the Development Code , gas drilling and production means the activities related to the"the extraction of any fluid, either combustible or noncombus tible, that is produced in anatural state from the earth and that mainta ins a gaseous or rarefied state at standardtemperature and pres sure conditions, or th e extraction of any gaseous vapors derivedfrom petroleum or natural gas."

    The Development Code requires the app licant to provide the following site plans for agas drilling and production use:

    Site plan showing ex isting/original conditions ;

    Site/operation plan for the drilling phase; and Site/operation plan for the product ion phase .

    The applicant has submitted the following plans for the Spec ific Use Permit application:an existing conditions plan, an operations plan for the drill ing phase, and an operationsplan for the production phase. The operation plan for t he drilling phase addresses thenatu ral-gas drillin g. The plan shows the 10 cat ion 0 f several temporary constructiontrailers , water tanks , mud tan ks, and drilling equipment. A drilling rig w ith anapprox imate height of 160 feet will be on site during this phase. The building official willconsider this as a temporary structure , similar to a crane used in constructing a building.The SUP conditions will lim it the drilling phase for 90 days per calendar year, becausedrilling (with lighti ng) will be done 24 hours a day , an d because the noise will impactsurrounding uses.

    There are two methods fo r drilling: an open-loop system and a closed-loop system. Anopen-loop system uses a lined mud-pit to hold mud. The mud-p it may be a safetyhazard and may have a negative impact on adjac ent property . In co ntrast , a closed-loop system uses tanks to hold t he mud. T here are fewer environmental concerns witha closed-loop system and the appl icant is prov iding a drilling phase plans that will

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    include a closed-loop system. The applicant is proposing to drill approximately 4 wellson the site.

    The production plan shows an area in the southwest quadrant of the pad site that willstore the equipment (e.g., horizontal separators, water tanks and gas lift compressors).The SUP area will be enclosed by an eight foot wood fence along Camp Wisdom Roadand an eight-foot-high chain link fence with a v inyl coating around t he remainingperimeter. The dril ling phase, on the other hand, provides the mechanism for theequipment to place on site to begin drilling. The plan shows the locations f t he variousequipment such as, water pumps, r igs floor , pumps, tanks generators and centrifuge.

    The adjacent property owner has v olunteered deed restrictions that will limitdevelopment of certai n instit utional uses, recreation uses and residential uses within600 feet of the gas wells. These restrict ions will protect potential resid ential andinstitutional development that is adjacent to the gas wells. It shoul d be noted that thi sproperty is very likely un-develop able as it is either in t he floodplain for Mountain Creek

    or under the control of the Army Corp of Engineers.

    Staff has reviewed the applicant's request for a SUP for gas drilli ng and production andis recommending approval for a time period of 10 years with elig ibility for automaticrenewal of additional 10 year periods, subject to the attached plans and conditions.

    The general provisions for a Specific Use Permit in Sect ion 51A-4 .219 of the DallasDevelopment Code specifically state: (1) The SUP provides a means for develop ingcertain uses in a manner in whic h the spec ific use will be consist ent with the characterof the neighborhood; (2) Each SUP application must be evaluated as to its probableeffect on the adjacent pr operty and the community we Ifare and may be approved ordenied as the findings indicate appropriate; (3) The city council s hall not grant an SUPfor a use except upo n a finding that the use will: (A) complement or be compatible withthe surrounding uses and comm unity facilities; (8) contribute to, enhanc e, or promotethe welfare of the area of reques t and adjacent properties; (C) not be detrimental to thepublic health, safety, or general welfare ; and (D) conform in all other respects to allapplicable zoning regulations and standards. The request does not appear to have anadverse impact on the surrounding zoning and land uses.

    Development Standards:

    DISTRICT SETBACKS Density Height Lot Special PRIMARY UsesIJ=ron'f" i Side/Rear Coverage StandardsR-7.S(A) ,25 ' j 5' 1 Dwelling Un itl7,500 sq . ft. 30 ' 45% Single fam ilySingle Fam ily

    A(A) 50 ' 20 '/50 ' 1 Dwel ling Unit l3 Ac res 24 ' 10% Agricultural & single familyAqricultural

    j

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    Landscanlnq: Landscaping will be provided in accordance with the landscape plan. Ascreening hedge and street trees will be provided along the southern property lin eadjacent to Camp Wisdom Road. The su rrounding property is treed and un developedand under control of either Luminant Energy or the Army Corp of Engineers.

    Traffic: The Engineering Section of the Departm ent of Sustainable Development andConstruction has rev iewed the request and determi ned that it will not negatively impactthe surrounding street system by the proposed development. All truck traffic to andfrom the site will be from Interstate-20, to Belt Line Road, to Camp Wisdom.

    Miscellaneous - conditions: T he attached conditions, while conceptually accurate,have been finalized wit h regard to potential residential adjacency. The DevelopmentCode requires that gas well be located a minimu m of 300 feet from ce rtain institutionaluses, recreation uses and residential us es. The applicant has volunt eered deedrestrictions that will limit development of certain institutional uses, recreation uses andresidential uses within 600 feet of the gas wells.

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    XTO ENERGY INCOFFICERS

    Bob R. Simpson Keith A. Hutton Vaughn O. Vennerberg II

    Louis G . Baldwin Timothy L. Petrus

    James L. Death

    Edwin S. Ryan, Jr. Mark J . Pospisi l

    Timothy Mcilwain Lindsey Dingmo re

    Chairman of the BoardChief Executive OfficerPresidentExecut ive Vice President and CFOExecutive Vice President - AcquisitionsSenior Vice President - LandSenior Vice President - Land AdministrationSenior Vice President of GeologyVice President of Operations - FW D ivisionVice President of Government and Regulatory Affairs

    LUMINANT GENERATION COMPANY, LLCOFFICERS

    Robert C. Frenzel , Donald Evans, James A. Baker III Arcilia Acosta David Bonderman Federick Goltz James R. Huffines Scott Lebovitz Jeffrey I Liaw Marc S . Lipschultz Michael MacDougall Kenneth Pontarelli William Reilly Jonathan Smidt Kneedland Youngblood William Young Lyndon Olson

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    Senior Vice PresidentNon-Executive ChairmanAdvisory Chairman

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    ISPECIFIC USE PERMIT CONDITIONS= -- ::;: -

    1. USE: The only use authoriz ed by this specific use permit is gas drilling and

    production.

    2. SITE/OPERATION PLANS: Use and develop the Property must compliance withthe following attached site and operation plans :

    (a) Site plan showing existing/original conditions;(b) Site/operation plan for the drilling phase; and(c) Site/operation plan for the production phase.

    3. TIME LIMIT: Except as provided in Paragraph (4)(b), this specific use permitexpires on (ten year from passage of or dinance), but is eligible for automaticrenewal for additional 10-year periods pursuant to Sect ion 51A-4.219 of Chapter51A of the Dallas City Code, as amended. For automatic renewal to occur, theProperty owner must file a complete app lication for automatic renewal wit h thedirector before the expirati on of the current period. Failure to timely file acomplete applic ation will render this spec ific use permit ineligible for automaticrenewal. (Note: The Code cur rently pr ovides that applications for automaticrenewal must be filed after the 180t h but before the 120th day before theexpiration of the current specific use permit period. The Property owner isresponsible for checking the Code for pos sible revisions to this provision. Thedeadline for applications for automatic renewal is strictly enforced.)

    (b) The Operator shall not ify the building official in writing at least 10 days

    before permanently stopping gas producti on (abandoning the well). Once theOperator permanently stops production, this specific use permit expires after theOperator restores the Property in accordance with Arti cle XII. After the Operatorrestores the Property, a new specific us e permit is required for any other gasdrilling and production operation.

    4. HEIGHT: Exc ept temporary structures aut horized by the building official, nostructure may exceed 24 feet in height.

    5. TIME LIMITS ON OPERATIONS: The following limits on operations apply to thegas drilling and production use:

    (a) DRILLING PHASE: Gas drilling activities may occur 24 hours a day, sevendays a week. If a residential us e is locate d within 600 feet of the operation site,the Operator shall begin dr iIIing all of the wells appr oved by the SUP with in oneyear after receiving a gas well permit for the first well. See Section 5 1A-12.105(d)(6).

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    (b) FRACTURING and REWORKING PHASE:

    (1) Except as provided in this subsect ion , fracturing may occur durin gdaylight hours , seven days a wee k , except that flowback operationsmay occur 24 hours a day, seven da ys a week . See Section 51A-12.105(m)(1).

    (2) Except as provided in this subsection , reworking m ay occur 24hours a day , seven days a week.

    (3) If a residential use is located within 600 feet of the operation site,fracturing and reworking may occur no more than 90 days in any365 day period.

    (c) PRODUCTION PHASE: Gas production may occur at any time of day , butthe Operator must make any repairs or improvements , other than fracturi ng or

    reworking, between 6 :00 am to 9:00 pm, Monday through Saturday, exc ept thatemergency repairs may be made at any time .

    6. MANEUVERING SURFACE: Vehicle maneuvering surfac es must be gravel or asimilar material in the locations shown on the site/operation plans.

    7. PERMITS : The building official may not is sue a certificate of occupancy f or agas drilling and production use until the 0 perator obtains all required permitsfrom the Railroad Commission of Texas, Texas Co mmission on EnvironmentalQuality, and all other state , federal, or city agencies.

    8. SIGNS: Signs must comply with the provis ions for non-business zoning dis trictsin Article VII and gas drilling and production in Article XII.

    9. MAXIMUM NUMBER OF WELLS: No more than 4 wells may be on this site.

    10. CHEMICAL ADDITIVE REPORTS: At least 10 days prior to commencement ofdrilling or hydraulic fracturing operations ,the Operator will de liver to the GasInspector (both as defined in Sec. 51A- 12.102.b) a completed Material SafetyData Sheet ("MSDS") containing an a ccurate invent ory of chemicals to beinjected into the well bore for the purpose of drillin g or hydraulic fracturing, orrelated well bore activities. Such MSDS reports shall disclose every chemical tobe used, including quantity , concent rati ons , combinations , and formulations,

    sufficient to satisfy the Gas Inspector that full disclosure has been made . AIsuch reports shall be reasonably avail able to the public upon request. An yfailure or refusal to provide suc h MSDS reports to the Gas Inspector as providedherein shall be a v iolation as defined in Sec. 51A- 12.105(h) and Sec. 51A-12.109.

    11. EVAPORATION AND LAND FARMING : No open holding or evaporation pits or"land farming " processes (as that term is commonly understood in the indus try)

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    shall be allowed on the site, and all oper ations shall be conducted on a "clo sedloop system" basis, as that term is defined in Sec. 51A-12.102(5).

    12. DEHYDRATION OPERATIONS: Unless other equival ent means are proposedby Operator and approved by the Gas In spector, all gas dehydration operation sshall be handled by zero-emission separators to minimize fugitive emissions.

    13. WATER HANDLING: Within a reasonable ti me (to be determined by theDirector) the Operator shall transmit a ce rtified disclos ure to the Gas Inspectorstating the amounts and sourc es of all water actually us ed in any hydraulicfracturing operation. Within a reasonable time (to be determined by the Director)the Operator shall transmit a cer tified disclosure to the Gas Inspector stating thequantity of all f1ow-ba ck or produced f1ui ds recovered from each will. Within areasonable time (to be determined by the Director) the Operator shall transmit acertified disclosure to the Gas Inspector st ating the final destination of all fluids,slurries and muds removed from the site for disposal or reprocessing.

    14. NOISE MANAGEMENT PLAN: Prior to the issuance of a gas well permit a ndthe commencement of operations , the Operator shall submit a Nois eManagement Plan det ailing how the equipment used in the drilling, completion,transportation, or producti on of the well(s) complies with the maximumpermissible noise levels set forth in t he applic able city ordinance. The nois emanagement plan must:

    (a) identify operation noise impacts ;(b) provide documentation of a prof essional 72-hour study establis hing the

    Ambient Noise Level prior to construction at the site; and(c) detail how noise impacts will be mitigated (e.g., the providing of acoustical

    absorption walls around the site to sh ield neighboring uses), consideringspecific sit e characteristics, includi ng, but not limited to, the nature andlocation, proximity and type of adja cent development, seasonal prevailingweather patterns, including wind dire ctions, vegetative cover on oradjacent to the site, and topography of the site.

    The Operator shall be responsible for ve rifying to the Gas Inspector compliancewith this condition and with the noise ma nagement plan after the installation 0 fnoise generating equipment. Approval of such Noise Manageme nt Plan by theGas Inspector shall be a prerequisite to issuance of a gas well permit for the site.

    15. LEAKS: All flow lines, compression eq uipment and shut-off valves shall beinspected for leak detection at least annually, using infrared cameras , filtered andtuned for the wavelengths of sunlight absorbed and re-e mitted by natural gashydrocarbons, or other equally effective detection devices. Reports of suchinspections shall be delivered to the Gas Inspector within 15 day s of inspection ,and no later than one year following the date of the preceding annual report.

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    16. AIR SAMPLING: Ambient air sampling, prior to a drilling per mit being issuedand drilling activity commencing, must be performed to establish a bas elinesample for air quality. A second sampling must be taken within 60 days of thefirst well entering a production phase and a nnually there after. Air samples mustbe taken by a qualified firm approved the dire ctor of the office of environmentalquality. Samples will be analyz ed by a qualified 3rd pa rty laboratory, certified byindustry standards, and all results will be provided to the city.

    17. PRODUCTION SAMPLING: Within 60 days of the first well enteringproduction, gas samples must be taken and analyzed by a qualified 3rd partylaboratory, certified by industry standards, and all results provided to the city.Results must provide a thorough breakdown of the gas and record any presenceof benzene, hydrocarbons or other constituents.

    18. LANDSCAPING: Landscaping must be provided as in dicated on theLandscape Plan. Landscaping must be insta lied within 6 months of the first well

    being completed.

    19. MAINTENANCE: The Property must be properly maintained in a state of goodrepair and neat appearance.

    20. GENERAL REQUIREMENTS: Use of the Property must comply with all federaland state laws and regulat ions, and City of Dallas ordinance s, rules, andregulations, including the gas drilling regulations.

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    IPROPOSED DEED RESTRICTIONS JDEED RESTRICTIONS

    THE STATE OF TEXAS ))

    COUNTY OF DALLAS )KNOW ALL PERSONS BY THESE PRESENTS :

    I.

    The un dersigned, Lu minant Generat ion Com pany L LC ,a Texas limited liab ilitycompany ("the Owner"), is the owner of the following desc ribed property ("theProperty") , being in particular a tract of land out oft he John Dodd Survey, Abstract No.383, City of Dallas (" City"), Dallas County, Texas, and being th at same tract of landconveyed to the Owner by B.F. Tisinger, Jr., et ux, by deed dated January 8 , 1937, andrecorded in Volume 1992, Page 1 , in the Deed Records of Dallas County, Texas , andbeing more part icularly described as follows:

    See Attached Exhibit "A"

    II.

    The Owner does hereby impress a IIof the Property with the following deed restrictions("restrictions") , to wit:

    Buildings containing dwelling unit s (except tra ilers or mobile homes placed on the gasdrilling and production use site as temporar y residence for workers) and buildings forinstitutional and community service uses are not permitted within 6 00 feet of the gaswells shown on the site plan attached to the SUP , a copy of which is attached hereto asExhibit B , for so long as a gas well is in the drilling, frac tur ing , product ion , or reworkingphase.

    III.

    These restrictions shall continue in full force and effect for a period of 20 years from thedate of execution , and shall automatically be extended for additiona l periods of 10 yearsunless amended or terminated in the manner specified in this document.

    IV.

    These restrictions may be amended or terminat ed as to any portion of the Property ,upon appl ication to the City of Dallas by t he current owner of that portion of theProperty, without the concurr ence of the owners of the remaining portion of the

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    Property. These restrict ions may be am ended or terminated on ly after a public hearingbefore the City Plan Comm ission and a public hear ing before and approval by the CityCouncil of the City. Not ice of the public hearings must be given as would be required bylaw for a zoning change on the Property . The amending or terminating instrument mustbe approved as to form by the city attorney. If the City Council approves an amendmentor termination of these restrictions, t he Owner must then f ile the amending orterminating instrument in the Deed Rec ords of the county or counties where theProperty is located at his or her sole cost and expe nse befor e the amendment ortermination becomes effective .

    V.

    These restrictions are not intended to restrict the right of the City Council of the City toexercise its legislative dut ies and powers insofar as zoning of the Property is concerned.

    VI.

    The Owner agrees that these restrictions inure to the benefit of the City . The Ownerhereby grants the City the right to enforce these restrictions by any lawful means ,including filing an action in a court of competent jurisdiction, at law or in equity, agains tthe person violating or attemp ting to violate these restrict ions, either to prevent theviolation or to require its correction. If the City substantially prevails in a legalproceeding to enforce these restrictions, the Owner agrees that the City shall be entitledto recover damages, reasonable attorney's fees, and court costs . For further remedy ,the Owner agrees that the Cit y may withhold any certificate of occupanc y or finalinspection necessary for the lawful use of the Property until these restrictions arecomplied with. The right of t he City to enforce these restr i ctions shall not be waived,expressly or otherwise.

    VII.

    The Owner agrees to defend , indemnify , and hold harmless the City from and against allclaims or liabilities arising out of or in connection with the prov isions of this document.

    VIII.

    The provis ions of this document are her eby declared covenants runn ing with the landand are fully bind ing on all successors , he irs, and as signs of the Owner who acquireany right, title , or interest in or to the Property , or any part t hereof. Any person wh 0acquires any right , title, or in terest in or to the Property, or any part thereof , therebyagrees and covenants to abide by and fully perform the provisions of this document.

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    PROPOSED DEED RESTRICTIONS

    The United States Corp . of Engineer's owns the property east of the request site. TheCorp. has provided the follow ing response to the applicant regarding submitting deedrestrictions on their property.

    Friday, September 03,20108:56 AM

    Mr. Alexander ,

    The Corps of Engineers will not authorize the placement of any restrictive covenants on

    federal land. Lands encumbered with the Go vernment's flowage eas ement are alreadyrestricted from certain types of development in accordance with the deed restrictions.

    Craig KislingburyRealty SpecialistTrinity Regional Project1801 N. Mill StreetLewisville , Texas 75057469-645-9100Fax 469-645-9101

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    NIX IlIlLLOWJ>i\RK

    VICINITY MAP Map n o : P -21:8,400 Case no:

    Z090 -226

    DATE. Novembe r 04, 2010

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    R- 7 .5 {A) I UndevelopedUndeveloped

    PD5 2 1

    I Undeveloped

    A( A)

    ZONINGAND LAND USE

    P-2Map no : - - --- =: - =~--

    Z090-226Ca se no: ---.;.~ -=....... ;==-=---1 :4,800DA TE: Novem ber 04 . 2010

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    The area of req uest IS 11 atcl1ed (Z) . Notifica tion is 'S en t t o a llpr o p e rt y ow ner s wittun the n otifi c a tio n bu ffer a re a [s h ow n b ~ 1 h e d a sh e d

    circle ). Your prope rty is no t be ing rez oned !f you ar e ou ts ide Of theha tched a rea . If your prop e rty is n ot withif'i!he ha tche d ar ea . you a re

    ree ewing this n otice on l;, to le t you know o f U'.e requ est .

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    NOTIFICATION11000 - 1W

    AREA OF NO TIFICATION

    NUMBER OF PROPERTYOWNERS NOTIFIED

    Map no:P-2

    1 :4,800 Case no:Z090-226

    DA TE: Novem ber 04 , 2010

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    Notification List of Property

    Z090-226

    Label # Address

    1 8701 CAMP WISDOM

    2 8401 CAMP WISDOM

    3 3400 MOUNTAIN CRE EK

    4 1 CAMP WISDOM

    5 2014 MAIN

    5 Property Owners Notified

    Owner

    TEXAS UTILITIES ELEC CO % STATE & LOCAL TAX DEPT

    US CORPS ENGINEERS SANTA FE BLDG

    TEXAS UTILITIES ELEC CO %STATE & LOCAL TAX DEPT

    TRACT S 3A HOMEOWNERS ASN DBA HUNTERS BEND

    US ARMY CORP OF ENGINEERS

    Thursday, November 04, 2010

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