09.12.2012 CC PacketIn �1111 1111111 laiij 111 11,111 111 !!1 1;
•
•
•
I
NAME: PHONE:
ADDRESS:
/-1111ce
mo
�p
12 -
PLEASE CHOOSE ONE OF THE FOLLOWING:
E WOULD LIKE TO REGISTER MY OPINION BY ADDRESSING THE COUNCIL ORALLY
FOR ❑ AGAINST 0'
ADDITION INFORMATION:
❑ I DO NOT WISH TO SPEAK, BUT WISH TO REGISTER THE FOLLOWING WRITTEN OPINION
FOR ❑ AGAINST ❑
COMMENTS:
IN REGISTERING, I REPRESENT.
MYSELF ❑ THE FOLLOWING PERSONS/ FIRMS /CORPORATIONS /CLASSES /GROUPS El:
SIGNATURE: DATE:
L W. I A .;
Regular (Meeting Date:
MM /DD /YYYY
I11 ! -
a - a -#1
Please read and clearly provide ALL information below in order that the
Mayor may recognize you promptly at the appropriate time on the
agenda.
2. Please state your FULL NAME and ADDRESS when you begin, your remarks
in order that the official minutes will record you appearance before the
City Council.
3. Please make sure that your comments are directed toward the Presiding
Officer rather than individual Councilmembers or Staff. All speakers must
limit their comments to the subject matter as listed on your request and
must refrain from using any profane language and /or personal attacks
toward any individuaL
NAME OF SPEAKER l J� PHONE:
ADDRESS: C°� vv 1
EMAIL: 0414 ( -C * " - CITY RESIDENT?
YES ❑ NO ❑
E? a V
IS THE SUBJECT YOU WISH TO DISCUSS ON THE CURRENT AGENDA? YES AGENDA # NO ❑
HAS THIS SUBJECT BEEN DISCUSSED WITH ANY COUNCILMEMBER OR ADMINISTRATIVE STAFF? YES ❑ NO I
- IF YES, NAME OF COUNCILMEMBER /STAFF AND DATE:
SUBJECT:
` X - 7 (o I
`w Yl
M
SIGNATURE: /—
Dolores Garza
Project Manager
September 12, 2012
VIA HAND DELIVERY
The Honorable John Clark, Mayor
Members of City Council
City of Kennedale
405 Municipal Drive
Kennedale, Texas 76060
Dear Mayor Clark and Members of City Council:
Chesapeake Energy Corporation is submitting recommendations for consideration to the City of
Kennedale's schedule of administrative fees ordinance amendment. It is our hope that the
proposed changes to the ordinance Exhibit B: Schedule of Fees will positively effect natural gas
production operations within Kennedale as local regulatory environments and costs of doing
business weigh heavily in those decisions.
The City of Kennedale is already the most expensive city in the Barnett in which to permit a well.
The ordinance proposed this evening will only increase the expense of developing minerals in
Kennedale. Respectfully, we request that the City amend their fee schedule to reduce
permitting fees, not increase them. With the current proposed language, it would cost $19,000
for a low impact permit and $52,000 for high impact. This is only further exasperated when you
compound annual fees over the life of a well. The permitting cost to develop a well in Kennedale
would be $425,000 for a low impact well and $1,415,000 for a high impact over the life of a
well.
Filing Fee
Inspection or
Other
Annual Estimated
Estimated Cost over
per Well
Annual
Annual Fees
Cost of 1 Well
the life of 1 well
Permit fee
(30 years)
$5,000
$2,000 /well
$12,000 Air
$19,000 Low impact
$ 425,000 Low Impact
Sampling fee /pad
$52,000 High Impact
$1,415,000 High Impact
site (Low Impact)
$45,000 Air
Sampling fee /pad
site (High Impact
The City's staff report legitimizes the increase in permitting fees based on a comparison to other
cities fees. However, the comparison of the cumulative effect of the fees assessed by
Kennedale was not presented. If it had been presented, it is apparent that Kennedale's fees are
grossly excessive to any other city. The fees, according to the staff report are supposed to
offset costs associated with the administration, investigation and implementation of ordinances.
This is an individualized determination. However, contrary to staff's own criteria, the permit fee
Chesapeake Energy Corporation
100 Energy Way • Fort Worth, TX 76102
direct 817 -502 -4732 • alternate 817 -502 -5835 • dolores.garza @chk.com
Page 2
increase was based upon what other cities charge and not upon Kennedale's actual costs. To
base it on anything other than what it actually costs the city to process and administer permits
would be an arbitrary fee imposition.
The fees associated with gas drilling appear punitive when compared to fees associated with
other industries within Kennedale. Gas drilling has been an enormous economic benefit to the
city, the school district and Kennedale residents. Last year, the industry through its activities and
production provided an impact of approximately $466,000 in revenue for the city and $1.25
million to the Kennedale ISD.
We courteously request that the City not only deny the fee increase proposed this evening but
also investigate and revise the already excessive fees imposed under the ordinance.
Chesapeake and other operators are more than willing to discuss alternatives that would be
mutually beneficial to residents and the city by allowing mineral development to continue.
Thank you for considering our comments.
Sincerely,
1�
Dolores Garza
cc: Members of Kennedale City Council
cc: Bob Hart, City Manager
cc: Julie H. Wilson, Chesapeake Energy Corporation
This form must be submitted tmthe City Secretary by 6 on the day of the council meeting
�
�
PLEASE CHOOSE ONE OF THE FOLLOWING:
UL0 LIKE TO REGISTER MY OPINION BY ADDRESSING THE COUNCIL ORALLY
FOR El AGAINSTX,
ADDITION INFORMATION:
El I DO NOT WISH TO SPEAK, BUT WISH TO REGISTER THE FOLLOWING WRITTEN OPINION
FOR F-1 AGAINST El
IN REGISTERING, I REPRESENT:
MYSELF U- FOLL0VV|NGPER3ONS/F|RMS/C0RPOKAT0NS/CLA3SES/GROUP3^~ [l
:
_
�
��
MUM
MM /DD /YYYY
1. Please read and clearly provide ALL information below in order that the
Mayor may recognize you promptly at the appropriate time on the
agenda.
2. Please state your FULL NAME and ADDRESS when you begin your remarks
in order that the official minutes will record you appearance before the
City Council.
3. Please make sure that your comments are directed toward the Presiding
Officer rather than individual Councilmembers or Staff. All speakers must
limit their comments to the subject matter as listed on your request and
must refrain from using any profane language and /or personal attacks
toward any individual.
IS THE SUBJECT YOU WISH TO DISCUSS ON THE CURRENT AGENDA? YES ❑ AGENDA # NO
HAS THIS SUBJECT BEEN DISCUSSED WITH ANY COUNCILMEMBER OR ADMINISTRATIVE STAFF? YES ❑ NO
- IF YES, NAME OF COUNCILMEMBER /STAFF AND DATE:
SUBJECT:
IA A v c� �
I Z/
SC AT Ea
DATE: �lz `—
i
•
•
•
•
•
•
txl�w
0
Vf.Tn-fm- zm!'�-,m
NAME: 'Tit cs MA 15 c- k =-4 / r nAq " PHONE:
ADDRESS: 'I i 7 & ,, d e Uj L/ (e-- (' b� ,
EMAIL:
\ I,( o
COMMENTS WILL BE PRESENTED FOR PUBLIC HEARING AGENDA
PLEASE CHOOSE ONE OF THE FOLLOWING:
�"�I'WOULD LIKE TO REGISTER MY OPINION BY ADDRESSING THE COUNCIL ORALLY
FORM AGAINST ❑
ADDITION INFORMATION: V-\4
❑ I DO NOT WISH TO SPEAK, BUT WISH TO REGISTER THE FOLLOWING WRITTEN OPINION
FOR ❑ AGAINST ❑
COMMENTS:
IN REGISTERING,
MYSELF ❑ THE FOLLOWING PERSONS/FIRMS/CORPORATIONS/CLASSES/GROUPS ❑:
SIGNATURE: DATE: