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all right good evening mayor and Council
um my name is Holly strong strong

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representing ches energy and just wanted
to come to you tonight um to talk about

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a few of the items um that we've been in
discussion with over um I guess probably

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starting back in June and July when you
all were reviewing your gasing ordinance

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and uh as we were going through the
ordinance and kind of reviewing it and

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looking through some of the items we
boiled it down to May the three

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different areas that we would like to
kind of um bundle

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the the um languages that we're looking
at Under The Umbrellas and one of them

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would be environmental issues the second
one is fees and then the third one is

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grandfathering and I have a copy of the
presentation that I provided with you

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all for you all tonight and then there's
also a document um at the top it says

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Lakeside ordinance and proposed ches
peek revisions and so that's going to be

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more of a supplement document that um
I'll refer to but basically what it is

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is we went through the ordinance and
picked out the language that's currently

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in there and the Chesapeake
recommendations are in red in there and

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then if there's any items that we would
like to um delete or strike through

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that's reflected with the the strike
through in there um so I will begin this

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part um and I'll kind of walk you
through it so it'll be a little bit

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easier but it's a lot of information to
digest um but basically tonight we just

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wanted to run through it and bring a
couple of items uh to the Forefront for

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discussion so why consider the ordinance
revisions we believe that adoption of

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these proposed revisions that we'll
discuss tonight are going to be a

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win-win for the town of Lakeside City
staff ches Peak and our lessur in this

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town um one of the things that we're
looking at doing with the with the

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proposed revision would be to eliminate
any duplicative testing um this is going

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to ultimately save the taxpayer dollar
it's going to reduce the amount of work

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required by City staff and it's also
going to allow the existing Regulatory

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Agencies such as the TCEQ to operate as
they are intended and operate as um they

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do on a very daily basis and another
thing to consider is that restrictive

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drilling ordinances could affect the
development potential of future Wells um

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impacting potential royalties um we have
seen um some recently in the news um the

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city of south lake has um passed a very
restrictive Gast trilling ordinance and

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as a result um there's little uh
activity going on in there little

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gastron in there one of the the first
items under environmental issues is

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going to be air sampling and the first
page um pages one to two is what the

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current ordinance reads and what we're
proposing is that um we stick with what

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the tcq has in place already and there's
been numerous third party studies on

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Regional natural gas operations that
consistently show no cause for concern

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and you all were provided with a letter
from Brian bner who is our environmental

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health and safety adviser who is also
with me this evening um and that letter

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outlined a few of those studies that we
um kind of picked for you all to look

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through uh the studies are very lengthy
I've provided a copy to Diana for you

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all to um review at your leisure um but
in there um you know you can just kind

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of read through that at your and there's
a copy also should be included with the

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presentation
tonight so the current ordinance

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language is inconsistent with the
current tcq regulation and the tcq has

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pracy within Texas to permit inspect and
enforce those air violations on the mun

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ipal level The Authority exists around
the nuances or the the nuisance with the

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dust and the odor and the tcq must take
any survey samples ultimately to be able

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to enforce any air quality um
consequences that may be occurring um so

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this would the current ordinance
requires unnecessary air sampling um

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creating un enforceable
duplication Chesapeake's commitment here

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into cross the board net is 100%
compliance if it's if it's broken we'll

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fix it um period and the recommendation
that Chesapeake makes here is just to

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revise the language to require the
operator to maintain compliance with all

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state and federal regulatory standards
and on page seven of the supplement that

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you have um there's a a best practices
and red that we've outlined and that's

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the elite detection and compliance plan
and that's kind of suggested language

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that you all can go back and read
through um that we we feel would be a

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win-win for both Lakeside and chest
speak the next issue under

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environmental under the environmental
umbrella is going to be the water

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sampling and on pages 2 through three in
your

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supplements it
outlines what the current ordinance

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says and one thing that we
have experienced here in the bar is that

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there is no evidence of exist water and
well water well contamination resulting

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from Barnet shell natural gas production
and again I've got Brian burner here

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that you can answer questions if you
have more specific um thoughts or

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concerns if you've read about something
um to proba to try and work through

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those or talk through some of those
issues and the current ordinance also

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shows a distance of 2,000 ft um from the
well board that the water well would

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need to be sampled and we ches believes
that it's impossible to isolate the

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actual source of contamination of a
water well at a distance of 2,000 ft so

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Chesapeake recommends that the town of
Lakeside conduct post Drilling and post

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rcking sampling of the municipal water
wells within 300 ft of the wellbore

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within 30 days of the conclusion of that
fracking or drilling activity and then

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the cost for such testing would be
covered in the permitting

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fees and so there's again there's
language on pages two and three in red

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you can go back and look at um that that
we would recommend for you to consider

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there as

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well the third issue under the
environmental umbrella relates to the

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lift and the line
compressors um the current ordinance has

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setbacks in place 6 to 700t set backs in
place and um it mandates a lot of

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permanent structures to be um
surrounding these gas lift compressors

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and by mandating those enclosures like
is represented in the

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presentation um it can impact the
performance of the compressor which goes

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back to impacting the performance of The
Well ultimately and potentially

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impacting um the potential development
of those gas Wells and it can also

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prolong the activity on the side
um additional heat on this system can

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affect the well productivity as well and
Alternatives if the noise is the issue

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there are sound blankets that can very
effectively reduce and stay keep those

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compressors within allowable limits
allowable decel levels of that's in your

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current ordinance um lift compressors
are also they're often rented and not

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owned by The Operators making the
permanent enclosure impractical to

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enclosure a rented um compressor and
within that and then the 600t setbacks

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are not necessary to mitigate sound
again we can do that with the sound

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blankets or the the the shorter sound
walls around the compressor Jack the's

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recommendation would be a require
permanent structure only if the lift or

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line compressors are unable to meet
those allowable noise limits and the

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chest PE would also recommend removal of
the stepb distance

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and that is
reflected on page four of the

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supplement
the and the the next issue under the

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environmental umbrella would be the
sound and the preactivity sound survey

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that we do it's 72-hour sound survey
measures the regular frequency that's

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conducted by a third party and it
demonstrates the Ambient sound levels

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and what we have found in our sound
survey is that the ambient levels are

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slightly higher than what the current
ordinance allow so even at ambient it's

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out of compliance and this is due to
road noise the location of the you know

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being in the nearby flight path and even
crickets chirping made those those

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deciel levels Spike
slightly just's recommendation would be

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to delete the current ordinance language
relating to low frequency noise and

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we're working with Baron um our
environmental or not our environmental

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company a environmental company in the
Barnet shell that does a lot has a ton

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of experience with sound surveying um in
other cities to develop a reasonable

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deciel level that would work for those
low frequency um ambient levels now the

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difference between low frequency
frequency pure tones it's very umed and

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can be very confusing and I've talked
with a few of you all about having

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potentially at the next council meeting
having Barons come by and providing a a

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presentation and kind of explaining what
that means what what can the human year

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actually hear and how can you um you
know have an ordinance that that allows

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for you know a reasonable amount of of
noise on the

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site um and what you do have in your
ordinance is the the decibel level

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during fracking and drilling um which
would be five five DB sound level not to

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exceed five DB during the daytime and
three DB at night time and then in your

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the current ordinance for fracking it
says um noise level not to exceed 7even

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DB and we would recommend 10 DB um just
of bumping that up to up three decal

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levels and the final
issue under the environmental umbrella

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is going to be as it relates to the
Railroad Commission permit and basically

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the current ordinance requires an
approved Railroad Commission permit at

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the time that Chesapeake submits the gas
well or that any company would submit

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the gas well permit and for various
reasons that I've outlined here we would

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like to recommend
that prior to the issuance of the gas

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well is when you would need to have the
approved Rel commission permit so and

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for one of the main reasons and one of
the big things here is that leasing

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continues to go on um after we've
submitted the well or the well

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application and so having to go back
having our land team having to go back

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to the state and amend those permits
constantly uses up resources uh CH speak

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resources State resources constantly
amending those permits as we take and

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expand our wells and our least hold in
that area um another reason because the

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city permitting process can be lengthy
especially if there's a you know a

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council meeting involved or there's much
work to be done with the surrounding

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Community um we can go ahead and have
that process started and not necessarily

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need an approved Road Commission permit
in hand and ultimately any activity on

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that site requires the roadroad
commission perit as far as drilling goes

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but our request is that the ordinance
language say um what it points out here

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in this box which is on page nine of
your supplement document in red and that

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says prior to the issuance of a gasv
permit operator shall provide to the

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town a copy of the approved rail
recission permit to drill but not before

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applying for a city of

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permit I'll move on to the second
umbrella that we've kind of defined