Charles E. Zech Denton, Navarro, Rocha & Bernal, P.C.

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1 Charles E. Zech Denton, Navarro, Rocha & Bernal, P.C.

2 General Police Powers A municipality may adopt ordinances for the good of the government, peace, or order of the municipality (Health, Safety and Welfare). Zoning Nuisance Subdivision

3 Road Damage Law Enforcement and Police Protection Fire and Emergency/HAZMAT Response and Cost Safety and Environmental Regulation Rules Information and Education

4 Limited land use authority Business regulation SOB regulation (LGC Chapter 243) Subdivision and plat approval (LGC Chapter 232) County Road Damage Law enforcement and Sheriff s office demands

5 State or Federal Preemption Regulatory Takings LGC Chapter 245

6 LGC Chapter 380 (Cities) LGC Chapter 382 (Counties)

7 Oil and Gas Operation Regulations Flower Mound Fort Worth Copperas Cove 7

8 1. Ordinance Review Team City Manager City Attorney City Engineer Fire Chief Consulting Engineer Consulting Oil and Gas Attorney 2. Meet with Railroad Commission 3. Review Ordinances 4. Draft Preliminary Ordinance 5. Hold Public Hearing with Stakeholders 6. Consider Amendments Based on Comments

9 7. Hold Second Public Hearing with Stakeholders 8. Amend Ordinance 9. Workshop for City Council for Review 10. Hold Third Public Hearing with Stakeholders 11. Adopt Ordinance

10 Protected Use A residence or a residentially zoned property or parcel, a religious institution, a public building, a hospital building, a school or a public park

11 Gas Well Permit Application Type of Well High Impact Well to be located within 600 feet of a protected use Urban Gas Well to be located between 600 and 1000 feet of a protected use Rural Gas Well to be located outside 1000 feet of a protected use

12 High Impact Requires Waiver either by land owners or Council Whether the operations proposed are reasonable under the circumstances and conditions prevailing in the area considering the particular location and the character of the improvements located there; Whether the drilling of such wells would conflict with the orderly growth and development of the City; Whether there are other alternative well site locations that would allow reasonable access to explore, develop and produce the mineral estate without creating mineral waste;

13 High Impact Whether the operations proposed are consistent with the health, safety and welfare of the public when and if conducted in accordance with the High Impact Gas Well Permit conditions to be imposed; Whether there is accessible access for the City fire personnel and fire fighting equipment; and

14 High Impact Whether the impact upon the adjacent property and the general public by operations conducted in compliance with the Gas Well Permit conditions are reasonable and justified, balancing the following factors: The right of the owners(s) of the mineral estate to explore, develop, and produce the minerals; and The availability of alternative drill sites, both presently and at other times during the lease term; The recommendations of the Gas Inspector

15 Waivers Gas Well Pad Site Permit Appeals Revocation of permits Penalties

16

17 Reporting requirements Name changes Incidents Complaints Insurance Workers Comp Environmental Pollution Liability (1,000,000.00) Commercial General Liability ($1,000,000.00) Umbrella ($5,000,000.00) Auto ($1,000,000.00) Bonding- LOCs $50, per well Authority to draw down for fines or penalties assessed Indemnity requirements

18 On-Site Technical Requirements Abandonment Blow Out Prevention Discharge Dust, Vibration Odors Fire prevention Explosives Fresh Water Wells

19 On-Site Technical Requirements Clean Up and Site Maintenance Plugged and Abandoned Wells Soil Contamination Emergency Management plans

20 Development Requirements Grass, Weeds and Trash Hazard Mitigation plans Lighting Exhaust Control Noise Control Signage Storage Requirements Vehicle Routes

21 On-Site Regulation Security Well Set backs Development Work Hours Fencing Landscaping Access Control Street damage agreement

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