[0:27] all right good evening mayor and Council um my name is Holly strong strong

[0:31] representing ches energy and just wanted to come to you tonight um to talk about

[0:37] a few of the items um that we've been in discussion with over um I guess probably

[0:41] starting back in June and July when you all were reviewing your gasing ordinance

[0:47] and uh as we were going through the ordinance and kind of reviewing it and

[0:52] looking through some of the items we boiled it down to May the three

[0:56] different areas that we would like to kind of um bundle

[1:00] the the um languages that we're looking at Under The Umbrellas and one of them

[1:05] would be environmental issues the second one is fees and then the third one is

[1:11] grandfathering and I have a copy of the presentation that I provided with you

[1:15] all for you all tonight and then there's also a document um at the top it says

[1:20] Lakeside ordinance and proposed ches peek revisions and so that's going to be

[1:25] more of a supplement document that um I'll refer to but basically what it is

[1:29] is we went through the ordinance and picked out the language that's currently

[1:33] in there and the Chesapeake recommendations are in red in there and

[1:37] then if there's any items that we would like to um delete or strike through

[1:43] that's reflected with the the strike through in there um so I will begin this

[1:49] part um and I'll kind of walk you through it so it'll be a little bit

[1:53] easier but it's a lot of information to digest um but basically tonight we just

[1:57] wanted to run through it and bring a couple of items uh to the Forefront for

[2:03] discussion so why consider the ordinance revisions we believe that adoption of

[2:08] these proposed revisions that we'll discuss tonight are going to be a

[2:11] win-win for the town of Lakeside City staff ches Peak and our lessur in this

[2:18] town um one of the things that we're looking at doing with the with the

[2:22] proposed revision would be to eliminate any duplicative testing um this is going

[2:28] to ultimately save the taxpayer dollar it's going to reduce the amount of work

[2:32] required by City staff and it's also going to allow the existing Regulatory

[2:37] Agencies such as the TCEQ to operate as they are intended and operate as um they

[2:44] do on a very daily basis and another thing to consider is that restrictive

[2:49] drilling ordinances could affect the development potential of future Wells um

[2:54] impacting potential royalties um we have seen um some recently in the news um the

[3:01] city of south lake has um passed a very restrictive Gast trilling ordinance and

[3:06] as a result um there's little uh activity going on in there little

[3:12] gastron in there one of the the first items under environmental issues is

[3:17] going to be air sampling and the first page um pages one to two is what the

[3:26] current ordinance reads and what we're proposing is that um we stick with what

[3:32] the tcq has in place already and there's been numerous third party studies on

[3:37] Regional natural gas operations that consistently show no cause for concern

[3:43] and you all were provided with a letter from Brian bner who is our environmental

[3:47] health and safety adviser who is also with me this evening um and that letter

[3:52] outlined a few of those studies that we um kind of picked for you all to look

[3:57] through uh the studies are very lengthy I've provided a copy to Diana for you

[4:01] all to um review at your leisure um but in there um you know you can just kind

[4:08] of read through that at your and there's a copy also should be included with the

[4:13] presentation tonight so the current ordinance

[4:17] language is inconsistent with the current tcq regulation and the tcq has

[4:22] pracy within Texas to permit inspect and enforce those air violations on the mun

[4:29] ipal level The Authority exists around the nuances or the the nuisance with the

[4:35] dust and the odor and the tcq must take any survey samples ultimately to be able

[4:42] to enforce any air quality um consequences that may be occurring um so

[4:48] this would the current ordinance requires unnecessary air sampling um

[4:53] creating un enforceable duplication Chesapeake's commitment here

[4:59] into cross the board net is 100% compliance if it's if it's broken we'll

[5:05] fix it um period and the recommendation that Chesapeake makes here is just to

[5:10] revise the language to require the operator to maintain compliance with all

[5:14] state and federal regulatory standards and on page seven of the supplement that

[5:20] you have um there's a a best practices and red that we've outlined and that's

[5:26] the elite detection and compliance plan and that's kind of suggested language

[5:30] that you all can go back and read through um that we we feel would be a

[5:35] win-win for both Lakeside and chest speak the next issue under

[5:41] environmental under the environmental umbrella is going to be the water

[5:45] sampling and on pages 2 through three in your

[5:49] supplements it outlines what the current ordinance

[5:54] says and one thing that we have experienced here in the bar is that

[6:00] there is no evidence of exist water and well water well contamination resulting

[6:05] from Barnet shell natural gas production and again I've got Brian burner here

[6:11] that you can answer questions if you have more specific um thoughts or

[6:15] concerns if you've read about something um to proba to try and work through

[6:19] those or talk through some of those issues and the current ordinance also

[6:24] shows a distance of 2,000 ft um from the well board that the water well would

[6:29] need to be sampled and we ches believes that it's impossible to isolate the

[6:34] actual source of contamination of a water well at a distance of 2,000 ft so

[6:40] Chesapeake recommends that the town of Lakeside conduct post Drilling and post

[6:45] rcking sampling of the municipal water wells within 300 ft of the wellbore

[6:50] within 30 days of the conclusion of that fracking or drilling activity and then

[6:56] the cost for such testing would be covered in the permitting

[7:02] fees and so there's again there's language on pages two and three in red

[7:07] you can go back and look at um that that we would recommend for you to consider

[7:13] there as

[7:16] well the third issue under the environmental umbrella relates to the

[7:21] lift and the line compressors um the current ordinance has

[7:26] setbacks in place 6 to 700t set backs in place and um it mandates a lot of

[7:33] permanent structures to be um surrounding these gas lift compressors

[7:39] and by mandating those enclosures like is represented in the

[7:44] presentation um it can impact the performance of the compressor which goes

[7:48] back to impacting the performance of The Well ultimately and potentially

[7:53] impacting um the potential development of those gas Wells and it can also

[7:57] prolong the activity on the side um additional heat on this system can

[8:02] affect the well productivity as well and Alternatives if the noise is the issue

[8:08] there are sound blankets that can very effectively reduce and stay keep those

[8:14] compressors within allowable limits allowable decel levels of that's in your

[8:18] current ordinance um lift compressors are also they're often rented and not

[8:24] owned by The Operators making the permanent enclosure impractical to

[8:28] enclosure a rented um compressor and within that and then the 600t setbacks

[8:34] are not necessary to mitigate sound again we can do that with the sound

[8:38] blankets or the the the shorter sound walls around the compressor Jack the's

[8:44] recommendation would be a require permanent structure only if the lift or

[8:48] line compressors are unable to meet those allowable noise limits and the

[8:53] chest PE would also recommend removal of the stepb distance

[9:01] and that is reflected on page four of the

[9:10] supplement the and the the next issue under the

[9:15] environmental umbrella would be the sound and the preactivity sound survey

[9:20] that we do it's 72-hour sound survey measures the regular frequency that's

[9:26] conducted by a third party and it demonstrates the Ambient sound levels

[9:30] and what we have found in our sound survey is that the ambient levels are

[9:36] slightly higher than what the current ordinance allow so even at ambient it's

[9:41] out of compliance and this is due to road noise the location of the you know

[9:46] being in the nearby flight path and even crickets chirping made those those

[9:50] deciel levels Spike slightly just's recommendation would be

[9:57] to delete the current ordinance language relating to low frequency noise and

[10:02] we're working with Baron um our environmental or not our environmental

[10:06] company a environmental company in the Barnet shell that does a lot has a ton

[10:11] of experience with sound surveying um in other cities to develop a reasonable

[10:17] deciel level that would work for those low frequency um ambient levels now the

[10:23] difference between low frequency frequency pure tones it's very umed and

[10:29] can be very confusing and I've talked with a few of you all about having

[10:33] potentially at the next council meeting having Barons come by and providing a a

[10:38] presentation and kind of explaining what that means what what can the human year

[10:42] actually hear and how can you um you know have an ordinance that that allows

[10:49] for you know a reasonable amount of of noise on the

[10:54] site um and what you do have in your ordinance is the the decibel level

[10:59] during fracking and drilling um which would be five five DB sound level not to

[11:05] exceed five DB during the daytime and three DB at night time and then in your

[11:10] the current ordinance for fracking it says um noise level not to exceed 7even

[11:15] DB and we would recommend 10 DB um just of bumping that up to up three decal

[11:27] levels and the final issue under the environmental umbrella

[11:32] is going to be as it relates to the Railroad Commission permit and basically

[11:37] the current ordinance requires an approved Railroad Commission permit at

[11:42] the time that Chesapeake submits the gas well or that any company would submit

[11:46] the gas well permit and for various reasons that I've outlined here we would

[11:53] like to recommend that prior to the issuance of the gas

[11:57] well is when you would need to have the approved Rel commission permit so and

[12:02] for one of the main reasons and one of the big things here is that leasing

[12:07] continues to go on um after we've submitted the well or the well

[12:12] application and so having to go back having our land team having to go back

[12:16] to the state and amend those permits constantly uses up resources uh CH speak

[12:22] resources State resources constantly amending those permits as we take and

[12:27] expand our wells and our least hold in that area um another reason because the

[12:32] city permitting process can be lengthy especially if there's a you know a

[12:36] council meeting involved or there's much work to be done with the surrounding

[12:41] Community um we can go ahead and have that process started and not necessarily

[12:46] need an approved Road Commission permit in hand and ultimately any activity on

[12:51] that site requires the roadroad commission perit as far as drilling goes

[12:56] but our request is that the ordinance language say um what it points out here

[13:02] in this box which is on page nine of your supplement document in red and that

[13:07] says prior to the issuance of a gasv permit operator shall provide to the

[13:11] town a copy of the approved rail recission permit to drill but not before

[13:16] applying for a city of

[13:20] permit I'll move on to the second umbrella that we've kind of defined

Lakeside TX Council Meeting 2011-12-08 Environmental

Transcript