Town Issues Gas Well Permit as Required By State Law and Local Ordinances

2121 Cross Timbers Road
Flower Mound, Texas 75028
972.874.6000

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Town Issues Gas Well Permit as Required By State Law and Local Ordinances

Titan Operating, L.L.C. received administrative approval on August 26, 2010 for a gas well pad site and two gas wells to be located at 1500 Long Prairie Road in Flower Mound.

Titan submitted an application to construct the well on November 9, 2009, prior to the Town Council’s approval of any gas drilling-related moratoriums. Town staff reviewed the application by Titan and submitted comments on November 19, 2009, informing the company that variances would be required to construct the pad site and drill the well as proposed. Titan representatives appeared before the Oil and Gas Board of Appeals on May 19, 2010, to request well setback variances based upon environmentally sensitive areas, an existing water well, waters of the state, and a building designed/used for human occupancy.

After a public hearing, the Oil and Gas Board of Appeals denied all requested variances. Thereafter, a revised application was submitted in May, reflecting a new pad location and plans to eliminate the water well and building that previously required variances. In addition, the landowner also submitted a request for a tree removal permit in June for agriculturally zoned property that is in full compliance with the Town’s tree ordinance as adopted in 1993. As a result of the applicant’s changes and after an exhaustive review by Town staff, the permit was in full compliance with all Town regulations. The Town’s Code of Ordinances provides that if an application meets the requirements of all applicable provisions of the Town’s oil and gas ordinances, then the Oil and Gas Inspector must issue a permit for the drilling of the well and/or the installation of the facilities for which the permit application was made.

Additionally, Section 4.02.3 of the Town Charter requires the Town Manager to administratively enforce state law and Town ordinances. The Town Council cannot legally interfere with the Town Manager’s statutory duties in this regard. After a detailed staff review of the application and detailed consideration of all other ordinance requirements, it was determined that the revised application demonstrated that the project met all drilling regulations established by both Town ordinance and state law. As such, the application was processed and the permit was issued on August 26, 2010, in accordance with standard Town procedures.

Prior to issuance of the permit, consideration was specifically dedicated to the applicability of a 1,000-foot residential setback for tank batteries, well facilities, and equipment. In 2007, the Town amended its oil and gas ordinance to include specific setback requirements for residences where the person has a mineral interest in the application. Section 34-422(d)(1)(c) of the Code of Ordinances states that a well may be located 500 feet from a residence owned by a person who has a mineral interest in the permit application. In addition, Section 34-422(d)(2) states that tank batteries, compression facilities, and associated equipment shall comply with all well bore permit setback requirements, which clearly define a 500-foot setback from a residence owned by a person who has a mineral interest in the permit application.

As reflected in the Town Council meeting minutes dated January 25, 2007 and a recent report by the Town Attorney, the language in the oil and gas ordinance outlining setback reflects the legislative intent to honor the 500-foot setback requirement. In addition, precedent set by the historical application of the language in the issuance of prior permits, specifically for the Cummings C-West and the Smith A pad sites, recognizes that facilities on a pad site must comply with well bore setback requirements. An additional consequence of applying a cast-in-stone 1,000-foot setback requirement for tank batteries, well facilities, and related equipment rather than complying with the well-bore setback would be the significant increase in pad size, creating potential safety and aesthetic issues that would negatively affect neighboring properties, as reflected in the Model Pad Expansion Map. Please review the Oil and Gas Drilling Ordinance Comparison Chart for additional information regarding the equipment setback requirements and the August 2010 Oil and Gas Drilling Frequently Asked Question Addendum for a complete overview of the current drilling environment in Flower Mound.

As part of the submittal process, the applicant was required to submit a hazardous materials management plan, an emergency response plan, insurance and security requirements, and a noise management plan. The applicant also agreed to address traffic concerns by establishing alternate primary and emergency truck routes for increased safety. In addition to the well, it is projected that storage tanks, a gas lift compressor, and other required surface equipment will also be located on the site. Town staff will vigorously will monitor pad construction and operations during the drilling process and conduct spot checks of the site and equipment on a regular basis. Operations must be in full compliance with all stringent Town regulations and ordinances.

Posted 08/26/2010.