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2011_02.08 BOA Minutes241 MINUTES BOARD OF ADJUSTMENT REGULAR MEETING — FEBRUARY 8, 2 KENNEDALE CITY HALL— 405 MUNICIPAL DRIVE. COUNCIL CHAMBERS 7:00 PM CALL TO ORDER Chairman Adams called the meeting to order at 7:08 P.M. ROLL CALL Ms. Roberts called roll. Members present: Rick Adams (chair); Cheryl Abbot, Brian Cassady, Patrick Vader; alternate Darrell Dixon. Mr. Dixon was brought forward as an acting member in Ms. Elam's absence. Ms. Roberts sworn in those who wished to speak before the Board. I. VISITORS /CITIZENS FORUM No wished to speak 11. CONSIDER BOA CASE # 10 -08 BOA 10 -08 to consider and receive comments on a request for a Special Exception to the City Code Section 17 -426 (c) requested by Chesapeake Operating, Inc., to allow oil and gas well drilling and production for five gas wells to be located at 824 Kennedale Sublett Road, Jesse B Renfro Survey, Al260 Tract 3. a) STAFF PRESENTATION OF CASE Ms. Roberts and Mr. Cowey presented the case. Ms. Roberts said the case had been heard two months earlier and was tabled for 60 days. She said they had received one phone call and several emails in response to public notification. She said they had met with Chesapeake staff to review operational requirements and make sure everything required was in place. In terms of special exceptions, she said they had worked on these items, for example, material being tracked off site. She said Chesapeake had taken some steps to resolve the issue, but there were still some problems, so staff added conditions of approval to their recommendation, and in their minds, the issue would be resolved. Ms. Roberts said one thing they would like to be taken care of is fumes. There had been some complaints about fumes and air quality at this site, and while staff did not want to give this issue a disproportionate weight from the small number of complaints received, they did want Chesapeake to explore less noxious options for operations. Staff included in its recommendations that the Board add a condition of approval that Chesapeake provide a statement about whether less noxious options are available and if so, why those options are not used. Ms. Roberts added Chesapeake had brought someone to answer the Board's insurance - related questions raised during the December meeting. Ms. Roberts said that noise has still been a problem, and staff believes topography has played a role. She requested that if the Board grants the special exception, it require Chesapeake to submit an amended sound management plan that shows how Chesapeake will account for topography and environmental conditions. 242 Mr. Adams said he is asked all the time when this site was finally going to be finished. Ms. Roberts added that staff had the same concern and would like the requested drilling to be completed in a timely manner, by the end of the year if possible. She asked Mr. Cowey if he knew when the drilling would be completed. He said the applicant would address that in their presentation but that the Board may look at providing a completion date to Chesapeake, and after that date establishing a time period, for example 6 months or a year, when there would be no drilling so surrounding property owners could have a break. He said that spring seemed like a good time to drill, before the road projects got started and when leaves are back on trees. His understanding is that fracking on existing drilled wells would be started in March. Mr. Adams asked when construction would start on the roundabout, and Mr. Cowey said that was another reason to push this through; when Little Road is under construction, there will be more traffic on the route used by Chesapeake. Ms. Roberts continued with the presentation, saying parking has been a continuing problem, with contractors parking in areas they shouldn't. At the other Chesapeake site, Chesapeake had put in posts to keep drivers on the access road, and Chesapeake had agreed to install similar posts at this site. She also said the proposed water lines could interfere with the city road project, and requested that if the Board grants the special exception, it add a condition that Chesapeake is required to coordinate water supply with the city. Ms. Roberts said pad site materials had also been a problem, and staff and Chesapeake had disagreed about what was appropriate pad site materials, but the issue has been resolved. Staff recommended the Board grant the special exception with the conditions listed in the staff report. The Board asked how staff wanted Chesapeake to be more proactive. Ms. Roberts said that sometimes if many people aren't complaining about something, the complaint is ignored. She added that sometimes Chesapeake provides excellent customer service and will meet with the resident and try to address concerns, and staff would like to see that level of service every time. She said they don't want to put too big a burden on Chesapeake, they just want to make sure the residents have their concerns addressed in a way that shows they are taken seriously Mr. Adams asked if Chesapeake was aware of the conditions staff was recommending, and Ms. Roberts said they were and that they were given a copy of the staff report. b) APPLICANT PRESENTATION OF CASE Ms. Tiesa Leggett gave the presentation on behalf of the applicant. She said they appreciated staff meeting with them over the past couple of months to make sure everyone was on the same page. Ms. Leggett said they take staff and residents very seriously. She said there were several questions not answered at the last BOA meeting and that they had been working hard to get those questions answered. One of the questions had been about insurance coverage in the case of water contamination. Ms. Leggett introduced her colleagues at the meeting and asked Mr. Brian Boerner to speak to the Board about the insurance coverage provided by Chesapeake. Mr. Boerner said that the insurance coverage would cover water contamination at $5,000,000 per occurrence. He then described to the Board how wells are completed and responded to questions from the Board. He said fracking occurs 8000 feet below the surface and about 6500 feet below ground water resources in Kennedale. Mr. Adams asked if what they do is standard in the industry, and Mr. Boerner said yes. Some people may use slightly bigger pipes or slightly smaller, but this is standard for the industry. Mr. Adams said water contamination from drilling has happened, and Mr. Boerner said the probability of being hit by a car is also there, but with the thousands of wells occurring in the Barnett Shale, they have not seen any known or confirmed cases of contamination underground. Mr. Adams asked about the depth of groundwater and the depth of drilling, and Mr. Boerner responded. 243 Mr. Vader said he appreciated Chesapeake answering questions about insurance, although in the event of contamination, $5,000,000 might not be very much. Mr. Adams indicated that in the event of contamination, the city would have to prove Chesapeake was responsible before Chesapeake's insurance would pay anything, Mr. Boerner said in the absence of insurance, in any area with environmental concern, Chesapeake has stepped forward in the interim, and insurance is almost secondary to abatement concerns. Ms. Leggett said they were planning to frac the already drilled wells consecutively in March. Mr. Adams asked about the timeline for drilling the requested new wells. Ms. Leggett said hopefully they would be drilled in the fall. The Board asked if there was a construction schedule they could see. Ms. Leggett pointed out a timeline in the Board packets. Ms. Abbott asked how many permitted wells on site had already been drilled, and Ms. Leggett told her how many had been drilled and how many had been fracked. Ms. Abbott asked was there one well that has not yet been drilled? Ms. Leggett said yes, and they would have it drilled by June when the permit expires. Mr. Adams said this is an important site in the city, and we have upcoming road construction around here. He asked about alternate means of getting water to the site. Ms. Leggett said there were a couple of suggestions, and those discussions are ongoing. Ms. Abbott asked when the storage tanks would go in and how many there would be. Chesapeake staff said there would be a total of 15 tanks. Ms. Abbott said she drives past the site at least twice a day and she is not happy with the appearance of the little fence with the storage tanks showing over the top. She's looking more at how it will look once the roads are finished and the roundabout is in place. She does not want an industrial - looking complex at this site. She said Chesapeake is supposed to be at that site for the next 50 years maybe, and she wanted a guarantee that whatever is there appearance -wise is not going to negatively impact growth in the area. Ms. Leggett responded, saying that as far as the aesthetics of this site, they have worked with staff. She said she gets mixed messages about what looks best on the site, with some people saying it looked better before. She added she understands concerns for appearance but at the same time, it's a revenue - generating structure. She said the pad site will shrink, so they won't take up all the space. She said it's important to keep the communication lines open. Ms. Abbott said she wants to know that when the pad site is scaled back, that the tops of the tanks and the rest of it is not seen. Ms. Leggett said a completed site you can barely see. Ms. Abbott said that's what she wants. Mr. Adams asked how it would change when the site is completed, and Ms. Leggett said it's just the well heads and the tanks. Ms. Abbott said that's her concern, there's just that little fence, and she can see the top of the tanks. She doesn't want anyone driving in the area to even know that's there. Ms. Julie Jones said the landscaping will grow and mature, which will help shield the site. Ms. Abbott said that's what she's hoping for. c) PUBLIC HEARING ON BOA CASE #10 -08 The following people registered in favor of the special exception but did not address the Board [they were not present at the meeting but had submitted email comments to Ms. Roberts before the meeting]: Summer and Timothy Ball, 3917 Hawthorn Avenue, Dallas, TX 75219 PZ111l Amber Morris, 7032 Dover Lane, Richland Hills, Texas Leann O'Shea, 6756 Greenacres Drive, North Richland Hills, Texas 76182 The following person spoke in favor of the special exception: Rob Morris, 824 E. Kennedale Sublett Road, Kennedale, Texas 76060 The following person registered against the special exception but did not wish to address the Board: Rodger Scott, 1003 Colonial Court, Kennedale, Texas 76060 (Represented by A. Bradford for the addressing the board) d) APPLICANT RESPONSE The applicant had no comments to add. e) STAFF RESPONSE AND SUMMARY OF CASE Ms. Roberts said regarding water storage, the reason they wanted a condition added is so that the city would have a tool for negotiating. She added that in terms of the screening, the Board would need to add a condition on that because technically the fence meets the standard of the ordinance in terms of height, and that is why staff was unable to require additional screening. Mr. Adams asked if it already meets the ordinance, could they require something above that? Staff replied that they could in order to ensure it meets the standards of the special exception. f) ACTION ON CASE Mr. Vader said that even though Chesapeake has been working in the city for several years, staff has indicated that there are still pages of concerns listed in the staff report. Mr. Vader said he would like to see Chesapeake come back in six months and staff be able to say they don't have any additional concerns. He said he respected the rights of mineral owners, but by the same token, the Board has to be cognizant of the fact that what happens affects more than just the people in that room. Mr. Adams asked if the Bogi site had the same concerns. Ms. Roberts said there were some of the same concerns, but they seemed to affect the residents near the Bogi site more. Mr. Vader said he was not going to make a motion to deny the request for a special exception, although it did not meet the standards for a special exception. Mr. Vader made a motion to table the case for 6 months. Ms. Abbott said she was okay with seconding the motion since Chesapeake wasn't planning to drill until mid -to -late 2011. The motion passed with all members voting in favor. III. CONSIDER BOA CASE # 10 -09 BOA 10 -09 to consider and receive comments on a request for a Special Exception to the City Code Section 17 -426 (c) requested by Chesapeake Operating, Inc., to allow oil and gas well drilling and production for two gas wells to be located at approximately 205 N. Joplin Rd and 1257 Swiney Hiett Rd, Swiney Subdivision Lot 3, Swiney Subdivision Lot 4 Less SW Corner, and Ben Jopling Survey A -866 Tract 3B, recently replatted as Bowerman Addition, Block A, Lot 1 in the City of Kennedale, Tarrant County, Texas. 245 a) STAFF PRESENTATION OF CASE Ms. Roberts gave the staff presentation. She said this case was tabled in December, and a lot of the issues for this case were the same as for the Renfro case. She said she received no response to the letters mailed out but there were several people signed up for the public hearing. She said the fume issue was the main one that was not resolved, but the other conditions were all the same that staff was asking the Board to apply if they grant the special exception. Mr. Cassady asked why there were fewer concerns with the Renfro site. Ms. Roberts said it could be a matter of topography, and it could also be the people near the Renfro site weren't as concerned as the people living by the Bogi site. Mr. Cassady said he hadn't noticed the diesel issue. Ms. Roberts said that there had been one incident when the fire chief had been driving home and the diesel fumes from the Bogi site were such that at first he thought there might be a fire over there. The Board asked if the existing eight wells were in distribution yet, and Chesapeake said that not all of them were. Chesapeake said they should be doing flowback operations in the middle of March. b) APPLICANT PRESENTATION OF CASE Ms. Leggett said they addressed the special exception standards with information sent in the packets. She said eight wells had been drilled on site and the pipeline was in place. She added that the two additional wells requested would reach Steeplechase residents. Ms. Leggett said Chesapeake Energy was committed to being a good environmental steward, and she gave an overview of improvements made to the site and described how Chesapeake addressed the special exception standards. She said there were 180 families and businesses that stand to benefit from the wells. Ms. Leggett said that they had discussed with the city how to improve communication with residents. Chesapeake is proposing to continue to provide information to neighborhoods, and will attend homeowners association meetings or work with residents to host open house meetings so that they have an opportunity to meet with residents who want them to come out and speak. Ms. Leggett said Chesapeake was committed to having open lines of communication. Mr. Adams asked when Chesapeake would start drilling the two wells, and Ms. Leggett said as soon as possible, depending on when they're approved. Mr. Adams said they wanted to know a timeline for when the wells would be completed. Ms. Leggett said hopefully they would start drilling in May. Mr. Adams asked when they would frac, and Ms. Leggett indicated it would be around August. The Board asked if they would be finished by the end of the year, and Ms. Leggett indicated that was their timeline. Mr. Dixon said it would be early summer late spring before they tied on to the pipeline onsite, and Ms. Leggett said that was correct. c) PUBLIC HEARING ON BOA CASE #10 -09 The following people registered in favor of the special exception but did not address the Board: Donald McCrary, 1425 Swiney Hiett The following person spoke in favor of the special exception: Davey Jones, 1262 Cross Creek 246 The following person registered against the special exception but did not wish to address the Board: Mary Billingsley, 1402 Wren Court, Kennedale 76060 Amanda Bradford, 322 Steeplechase Trl. Represented by Kevin Bradford [submitted comments to Ms. Roberts by email before the meeting, which were read aloud by Ms. Roberts] The following people spoke against the special exception: Grady Fuller, 1254 Elmbrook Drive 76060 Hollis Matthews, 1252 Elmbrook, Kennedale 76060 Roy Scott, 1260 Elmbrook Drive, Kennedale 76060 John Hivale, 418 Coker Valley, Kennedale 76060 d) APPLICANT RESPONSE Ms. Leggett responded to comments from the public hearing. She said the Bowerman 20 were included in the Tiger 1H and 2H unites. She said previously they had drilled around Steeplechase completely. Ms. Leggett said that as to activities on the site, in some cases the only way to prove that they will meet the standards they say they will is to be allowed to go out and do it. She added they are committed to being more proactive and they speak with staff on a monthly basis. She also said they have someone on site already. Mr. Adams asked if there was one person who people could contact with questions, and Ms. Roberts said that person was Woody Sandlin. Ms. Leggett clarified that people should only call Mr. Sandlin in an emergency. Mr. Sandlin said there is an 800 number people can call 24 hours a day. Mr. Adams said there was supposed to be one person that people could call who is on site, someone who will come out and listen to concerns. Ms. Leggett said that would be her. Ms. Leggett said they had an ordinance and special exception they have to abide by. They have a year to drill the well, and if they get everything done within that year, they comply. Mr. Adams stated that just because they're drilling and fracking within that one year, doesn't mean they haven't exceeded sound limits or air pollution limits or something like that. Ms. Leggett said they were talking about the timeline for drilling. Ms. Leggett added they have proven they are abiding by the ordinance, and if there is an issue, they immediately rectify the issue, they are not going to let issues go by the wayside. They are taking the concerns and trying to better the situation. She said she is concerned because there is a lot of misinformation. Mr. Adams asked why Chesapeake hadn't taken care of the issues listed in the staff report. Ms. Roberts said the staff reports had been sent out the day they met with Chesapeake, so a lot of those issues have been resolved. She said they wished Chesapeake had been more proactive about addressing the issues, but at least a lot of them have been resolved. Ms. Leggett asked the Board to let them prove they can be a community partner. Ms. Leggett asked Ms. Roberts to discuss how Chesapeake addressed sound issues. Ms. Roberts said that when they get complaints about sound, they ask Chesapeake for the sound reports. She said sometimes the reports from Chesapeake show they are out of compliance when the city hadn't realized it, and staff appreciates Chesapeake being willing to share that information with them. She said the problems come from when the sound issue is farther away than the sound meter, and the sound meter doesn't catch it. She added that sometimes people are reluctant to call the police about sound problems, or by the time the police get there, the 247 sound is gone. She said they do appreciate Chesapeake sending the sound reports when the city asks for them. Mr. Vader said he wanted to respond to a comment from someone about BOA members going out to observe sites. He said they cannot do that, they can only consider what is brought up at the meeting. He also reminded Chesapeake that they are seeking a special exception. The wells they had permitted already are exceptions. He said the Board doesn't delay Chesapeake just to delay them and Chesapeake needs to keep in mind that they are asking for an exception. Mr. Vader said the communication problem seemed to be a big issue, and Ms. Leggett agreed and said Chesapeake was willing to continue to work with the residents. The Board asked if they were pretty much finished with the site after the Tiger wells and Ms. Leggett said yet. e) STAFF RESPONSE AND SUMMARY OF CASE Mr. Cowey said that if you go back to the comments staff had made and citizens about Chesapeake being more proactive, he hoped Chesapeake had made good notes. He said staff suggests tabling for 60 days, and in the meantime Chesapeake will make a list of concerns, send them to the city, and the city would make the community center available for Chesapeake to meet with residents and address the concerns. Then in 60 days, Chesapeake would come back to the Board to talk about how the concerns were addressed. f) ACTION ON CASE Mr. Cassady made a motion to accept the city staff recommendation, seconded by Mr. Vader. All members voted in favor. IV. REGULAR ITEMS a) Consider and approve minutes from the December 2010 meeting Mr. Vader made a motion to approve minutes from the December 2010 meeting, seconded by Mr. Cassady. The motion passed with all in favor. V. STAFF REPORTS a) Update on City Projects Ms. Roberts reminded the Board members of the board appreciation dinner to be held on March 31S the upcoming Texas Independence Day Parade, and Art in the Park to be held on the weekend of April 9th. VI. ADJOURNMENT Ms. Abbott made a motion to adjourn, seconded by Mr. Dixon. All members voted in favor.