Permit. RECOMMENDATION Conduct a public hearing and consider an amendment to a Specific Use Permit (SUP) for gas drilling use.

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Staff Report Specific Use Permit SUP09-19R2 (Lenox Drill Site) Planning and Zoning Meeting Date: 12-05-12 Document Being Considered: Specific Use Permit RECOMMENDATION Conduct a public hearing and consider an amendment to a Specific Use Permit (SUP) for gas drilling use. PRIOR BOARD OR COUNCIL ACTION On January 12, 2010, City Council approved Zoning Case SUP09-19 by a vote of 9-0-0. On August 3, 2010, City Council approved Gas ell Permits G10-18, G10-19, G10-20, and G10-53 for the Lenox 1H, Lenox 2H, Lenox 3H, and Lenox 4H gas wells by a vote of 9-0-0. On December 14, 2010, City Council approved Zoning Case SUP09-19R1 (increased the site s acreage by 2.078 acres) by a vote of 8-0-0. On December 14, 2010, City Council also approved Gas ell Permit G10-134 for the Lenox 5H (name later changed to Laxson 1H) gas well by a vote of 8-0-0. PUBLIC MEETING On November 29, 2012, the operator held a Town Hall Meeting for the Lenox Drill Site. The meeting provided an overview of the drill site regarding the proposed specific use permit request, future drilling plans, and lease and royalty information. City Staff attended this meeting. REQUEST The applicant, Vantage Energy, LLC, requests to amend the SUP by establishing the location of a drill zone for gas drilling on a 6.958-acres tract of land zoned single-family residential with a minimum lot size of 7,200 square feet (R). The property is addressed at 6207, 6221 and 6225 Poly ebb Road, generally located north of est Poly ebb Road and south of est Pleasant Ridge Road. ANALYSIS The site is currently developed as a gas well site. The site currently contains five wellheads (Laxson 1H and Lenox 1H-4H) with supporting equipment. The operator plans to drill a total of 13 more wells on the site. However, due to the fluctuating demand of natural gas and market prices, the operator does not have an estimated time frame of when drilling activities will be completed. Proximity to Protected Uses and Other Drill Sites The closest residential structure is approximately 300 feet northwest of the proposed drill zone. The closest school (Miller Elementary) is approximately 1,700 feet northwest and the nearest park (Marti Van Ravenswaay Park) is approximately 4,500 feet west of the proposed drill zone. The closest religious institution is approximately 368 feet east of the proposed drill zone. The Lenox Drill Site is located within two miles of five identified gas well sites. The process to reduce the setback requires a simple-majority affirmative vote of City Council because the applicant has provided written consent for more than 70 percent of the

Page 2 of 3 surface property owners within a radius of 300 to 600 feet around the drill zone (see Petition Map). Landscaping/Screening Per Gas ell Ordinance No. 11-068, Tier 1 landscaping and screening is required for nonindustrial zoned districts. The following landscaping and perimeter fencing is required to be installed within thirty (30) days after spudding the first well on the site. Per the approved landscape plan (SUP09-19R1), the operator has installed 23 trees along the site s frontage to Poly ebb Road and interior to the pad site and has installed a wood fence along the east side of the site and a chain link fence on the north, south, and west sides. As noted in the table below, the operator has submitted an alternate plan requesting deviation from the masonry wall and 40-foot transitional buffer area requirements. Per the approved SUP boundaries, the site does not provide room for a 40-foot transitional buffer area around the entire site. Landscaping Perimeter Fencing Tier 1 40-foot transitional buffer around drill site 10-foot wide streetscape setback with street trees 8-foot tall masonry wall with 75% opacity around the perimeter of the drill site Installation of gate Alternate Plan 40-foot transitional buffer along the northern and southern boundaries 18-41-foot varying transitional buffer along the western boundary 5-foot transitional buffer along the eastern boundary 6-foot high poly-coated chain link fence along northern boundary 6 to 8 foot high wood fence along the eastern boundary (as stipulated on SUP09-19) 8-foot high masonry wall along the southern boundary A combination of an 8-foot high masonry wall and a 6-foot high poly-coated chain link fence along the western boundary The owner/operator shall be responsible for the installation, preservation, and maintenance of all landscaping and physical features shown on this site plan. ater Source The applicant is proposing to purchase water from the City of Arlington to serve as the site s water source for drilling and fracing operations. Transportation Route The transportation route enters the drill site from Poly ebb Road. This is indicated on the attached Transportation Route map. Pipeline Route The pipeline connection is to the existing DF Midstream Steeples Lenox Lateral located to the south of the site.

Page 3 of 3 Compliance The following violations were noted in the 3 rd Quarter Compliance Report: Vehicle impact protection at the time of no activity on-site, inadequate vehicle protection devices existed on the site Security Camera the security camera has not yet been installed Emergency Action Response (EAR) Plan the EAR Plan is not located on the site in a Knox Box Hazardous Materials Management (HMM) Plan - the HMM Plan is not located on the site in a Knox Box Knox Box none exists on the site City staff met with Vantage Energy, LLC and a tentative date for full compliance is January 1, 2013. All violations shall be satisfactorily complied with prior to issuance of a gas well permit. Conclusion The site is currently an operating drill site. The request for a drill zone is to outline the boundary of where wells are to be drilled, as outlined in the Gas Drilling and Production (GD&P) Ordinance. Additional permits for gas drilling will require a Gas ell Permit which must also comply with the standards outlined in the GD&P Ordinance. ADDITIONAL INFORMATION Attached: i. Case Information ii. Itemized Allowable Uses iii. Location Map iv. Proximity Map v. Petition Map vi. Landscape Plan vii. Transportation Route Under separate cover: None Available in the City Secretary s office: None CITY COUNCIL DATE December 18, 2012 STAFF CONTACTS Bridgett hite, AICP Maria Carbajal Assistant Director Gas ell Coordinator Community Development and Planning Community Development and Planning 817-459-6660 817-459-6661 Bridgett.hite@@arlingtontx.gov Maria.Carbajal@arlingtontx.gov

Case Information Applicant: Property Owners: Sector Plan: John Moran with Vantage Energy, LLC Vantage Fort orth Energy, LLC & Richard and Barbara Harrell, Harrell Family Trust est Council District: 4 Allowable Uses: Development History: Traffic Impact: All uses in R zoning as itemized in Attachment ii. A portion of the subject site is currently unplatted and commonly known as Tracts 3G and 3K of the Lawrence Ramey Addition, A-1336. The remainder of the subject site is currently platted and commonly known as Lot 2 of the Lawrence Ramey Addition. A Specific Use Permit does not alter the underlying zoning and therefore will not alter the traffic generated over the life of the well. The proposed development has access from est Poly ebb Road, via a private access easement. The trips generated during the drilling process are mitigated with Road Damage fee. ater & Sewer: The following information is needed at the time of permit to evaluate the suitability of the water distribution system to serve as the supply source for a gas well drilling site: 1. A site plan of the proposed drill site, including the location of the fire hydrant(s) proposed to supply water to the site. 2. An estimate of total volume of water desired. 3. Approximate dates water supply will be needed. Based on the information provided, additional infrastructure may be required to be constructed. Drainage: Fire: The site is located within the Rush Creek and the Village Creek drainage basins and is not located within the FEMA floodplain. No significant drainage impacts are expected to result from development of this site as long as all relevant city ordinances are complied with. Fire Station Number 7, located at 5601 Ronny Snow Drive, provides protection to this site. The estimated fire response time is 2.29 minutes, which is in keeping with recommended standards. 1Zoning Case: SUP09-19R2 i-1 Prepared: 11-27-12 MARIA CARBAJAL

Case Information School District: Notices Sent: Neighborhood Associations: Property Owners: 96 Letters of Support: 26 Letter of Opposition: 0 This property is located in the jurisdiction of the Arlington Independent School District (AISD). The AISD did not indicate that the proposal will have any impact to AISD. Action North Arlington Chamber of Commerce Downtown Development Arlington Neighborhood Council Bay Springs Homeowners Association East Arlington Renewal East Arlington Review Enchanted Lakes Estates Homeowners Association Eaglechase Far South Arlington Neighborhood Association Forest Hills Homeowners Association Georgetown Homeowners Association Hidden Creek Neighborhood Association Hidden Oaks Addition Highpoint I Highpoint II Hilldale-Mintwood Island at Enchanted Bay Kingswick on Patrol Crime Northern Arlington Ambience Overland Stage Neighborhood Association Southeast Arlington Community Alliance Southwest Action Team of Arlington aterwood Estate Homeowners Association ecan (est Citizen Action Network) hitemarsh Estates Homeowners Association illiams Place Addition illow Bend/Thousand Oaks ooded Acres Zoning Case: SUP09-19R2 i-2 Prepared: 11-27-12 MARIA CARBAJAL

Itemized Allowable Uses Allowable Uses: Single family residential with a minimum lot size of 7,200 square feet (R) Permitted - Single family detached dwelling on minimum 7,200 square foot lots, church, government facility, public or private school, public park, playground or golf course, family home, personal care facility with maximum of six residents, foster family home, foster group home, transit passenger shelter, utility lines, towers or metering station, accessory garageprivate, and accessory swimming pool-private. Specific Use Permit (SUP) - College, university or seminary, day care facility, philanthropic institution, country club with golf course, yacht club or marina, bed and breakfast inn, personal care facility with seven or more residents, airport, heliport or landing field, accessory community center-private and gas drilling. Special Exception (SE) - Temporary asphalt or concrete batch plant and temporary sand or gravel extraction. Conditions (C) Temporary construction field office, temporary construction storage yard, temporary real estate sales office, wireless telecommunication facilities, accessory building, secondary living unit, customarily incidental use. Zoning Case: SUP09-19R2 Prepared: 11-21-12 MARIA CARBAJAL ii.

MAYFIELD R D PLEASAN TR G GR REE EEN NO LLIIT OA TTT AK KS LLEE S B LV RRDD PERK INS R RD D STEEPLES VANTAGE LABC VANTAGE I DG E RD LENOX VANTAGE S SAPO II CARRIZO LV ATT SIA RL LU 0.25 06314 PPOO LLYY SNO MASS DR 04207 LINDBERG DR 04208 04214 06205 0 75 150 04302 Feet PPOO LLYY 04314 06110 R 04317 04319 04321 04323 04325 06102 06221 EEBB BB 04315 06001 PD DR RK A EP 06222 ICpurposes. F F This product is for informational purposes and may not have been prepared for or be suitable for legal, engineering, or surveying It does not O 06228 04216 06225 SUP09-19R1 06207 04211 06202 04212 04304 06301 04209 04210 04300 06227 SSLL AALL OO MM 04204 06114 06309 EEBB IINN BB SSPP RRDD IIRR AA TTII OO NN 04202 PPTT 04206 KISD CHESAPEAKE 1 Miles 06317 A DLEY LN B RA CHURCH S T D 0.5 DDRR 0 A ANDA T DR OIN TTR REE EEPP GG DIIN RD RR BARD EEEE NO N OA AK KSS BB ROCKOOD TRL YEANDLE VANTAGE LLY ELLIOTT RD KK EE 04305 RRDD 06005 represent an on-the-ground survey and represents only the approximate relative location of property boundaries. LENOX DRILL SITE 6.958 ACRES Prepared: 10-18-2012 06224 06212 LOCATION MAP SUP09-19R2 DRILL ZONE 06111 CS SUP10-20 / EXISTING DRILL SITES ITHIN 2 MILES iii - 1 CS

CHURCH ST 600 feet 300 feet SUP09-19R1 0 75 150 Feet POLY EBB RD This product is for informational purposes and may not have been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on-the-ground survey and represents only the approximate relative location of property boundaries. Ü SUPPORT SIGNED Yes No City Owned Property Right of ay PETITION MAP SUP09-19R2 SUP Boundary Drill Zone TOTAL PARCELS 37 NUMBER CONSENTED 26 PERCENTAGE 70.3% ^_ Prepared: 11-13-2012 1-1 CS

ROUTE MILEAGE: TO SITE LITTLE ROAD POLY EBB ROAD ROUTE MILEAGE: FROM SITE POLY EBB ROAD LITTLE ROAD 3450 FT 2525 FT 2525 FT 410 FT LENOX PAD SITE DRILLING PERMIT APPLICATION ARLINGTON, TEXAS MAYFIELD 5751 KROGER DRIVE SUITE 185 KELLER, TX 76244 PHONE: 817-562-3350 LAKE ARLINGTON GREEN OAKS BLVD TEXAS FIRM NO. 12207 V ANTAGE ENERGY 116 Inverness Drive East, Suite 107 Englewood, CO 80112 Phone 303-386-8600 Fax 303-386-8700 PLEASANT RIDGE RD POLY- EBB RD DRILL SITE LITTLE RD LEGEND SITE ACCESS / ROUTING- ENTERING SITE ACCESS / ROUTING- EXITING PROPOSED PAD SITE LOCATION PROJECT NO. 10-VAN003 FILE PATH G:\Job-VAN003-Lenox\Petro\DP\ June 2012 5H-7H\ DRAN BY: AG3 20 REVIEED BY: CMF DATE: OCT 3, 2012 REV: BO MAN SPRINGS RD SHORE OOD DR LITTLE RD GREEN OAKS NORTH 0 600 1200 1800 GRAPHIC SCALE SHEET CONTENT 20 287 287 EXHIBIT C TRANSPORTATION ROUTE 6.958 ACRES OUT OF THE L. RAMEY SURVEY, ABSTRACT NO. A-1336 CITY OF ARLINGTON TARRANT COUNTY, TEXAS OCTOBER 2012 SHEET NO. 1 OF 1