1984 08 30 CC Minutes, Special40830 -1
MINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
August 30, 1984
The City Council of the City of Baytown, met in special
session on Thursday, August 30, 1984, at 7:00 p.m. in the
Council Chamber of the Baytown City Hall with the following
attendance:
Fred T. Philips
Jimmy Johnson
Perry M. Simmons
Ron Embry
Roy L. Fuller
Allen Cannon
Fritz Lanham
Larry Patterson
Randy Strong
Eileen P. Hall
Absent: Gerald Dickens
Councilman
Councilman
Councilman
Councilman
Councilman
Mayor
City Manager
Assistant City Manager
City Attorney
City Clerk
Councilman
The meeting was called to order with a quorum present,
and the following business was transacted.
Consider Proposed Ordinance, Amending the Oil and Gas Ordinance
Council had begun discussing this matter in a work
session at 6:00 p.m. During the work session, Jim Krizak,
representative of the Southwest Addition, presented Council
with a packet of information requesting changes to current
ordinance and indicating that under the current ordinance,
Council would have the power to deny permits to drill within
city parks.
Council had been furnished with a letter from the Goose
Creek Independent School District indicating that the school
district would lose considerable sums of money if drilling
is restricted to 400 feet from any residence or building.
In response to an inquiry from Council concerning
weight limits on city streets, Mr. Lanham explained that
under that ordinance, trucks are allowed to make deliveries.
Also, the bond posted by the drilling companies is $100,000
for the drilling of more than one well, rather than $50,000.
However, there would need to be substantial proof that the
company's trucks actually damaged the streets in order to
collect under this bond. The city could collect under the
bond for any obvious damage caused, but it would be difficult
to say that a street ultimately failed due to the truck
traffic of a particular company.
40830 -2
Minutes of the Special Meeting - August 30, 1984
Bud Franklin, President of Minex, stated that he felt
the trucks and equipment that the city has used over the
streets in Southwest Addition are heavier than the trucks
that would be carrying equipment to the drilling site.
The Administration had done some research by calling
other locations where there is drilling for oil to determine
what those cities require. A copy of that information is
attached to the minutes as Attachment "A."
Council discussed the proposed change in the ordinance
requiring a well location to be at least 400 feet from a
residence or building. The feeling was that if this change
were made that the owner should still have the right to give
written permission for the company to locate closer than the
400 feet. However, the point was made that this will not
keep the company from locating within closer proximity. The
company will simply have to negotiate with the owner.
Mr. Franklin pointed out that he had grown up in Southern
California where there were pump jacks located directly behind
businesses and in other areas in close proximity to buildings.
He also mentioned that Britton Park is not developed; the
pump jacks will just be something in the park.
Roy Fuller, Jr. -, attorney at law, mentioned that he
representd persons who had purchased leases with the thought
that it would only be necessary to set back 200 feet from
a residence or building. Therefore, he requested that prior
to making a decision on the setback requirements that Council
consider the ramifications. He felt that more study needed
to be given to the ordinance and that the ordinance should
not be amended in a piecemeal fashion.
Councilman Johnson commented that Council needed to be
fair with everyone and if the ordinance is changed, it would
be like changing the rules in the middle of the game.
Lee Gill, attorney for Enderli Oil Company, pointed out
that in all of the ordinances mentioned from other cities,
there are certain areas that are exempt from spacing require-
ments, such as salt domes.
Another point was that the City of Baytown's ordinance
tracks requirements of the Railroad Commission, as well as
the Texas Water Quality Board.
From different comments of Council, it appeared that
Council felt that if changes were necessary in the ordinance,
the ordinance should not be altered in a piecemeal fashion
and without a great amount of input from the residents, as
well as the drilling companies. No action was taken on
Proposed Ordinance No. 40830 -1.
N
40830 -3
Minutes of the Special Meeting - August 30, 1984
Consider Proposed Ordinance No. 40830 -2, Approving Applications
of Minex, Inc. to Drill Four Wells on City -Owned Property
Mr. Krizak mentioned that eleven (11) months ago, Mayor
Cannon had requested federal government support to restore
the parks of Baytown; therefore, he asked Council to be very
conscientious in making a decision. He felt that Council
would be setting a very dangerous precedent by approving the
permits; however, the point was made that there are operating
units already in Britton Park, Bayland Park and the park off
West Main Street.
In response to an inquiry from Council, Mr. Franklin
stated that he was aware of the city ordinance when the
lease was purchased; however, he felt that it would only be
necessary to work with the city to protect the area and to
drill in compliance with the ordinance to gain Council
approval, especially, since there is already a facility on
the property.
In the packet of information furnished by Mr. Krizak,
there was an opinion from David B. Hurst, attorney at law,
which Mr. Hurst, in response to an inquiry from Councilman
Simmons, stated mainly that the City of Baytown's
police powers extend to the reasonable protection of the
public health, safety and welfare, and the city may prohibit
drilling if it affects the public health, safety and welfare.
The City Attorney concurred with Mr. Hurst that the
city has the police powers to reasonably protect the public
health, safety and welfare; however, he emphasized that the
Council needed to consider requests for permits on a case by
case basis. The police power is there, but Council cannot
be arbitrary or capricious in its decision.
Jim White, Baytown citizen and owner of property where
drilling is in process, said that everyone is talking about
city parks and the harm that can be done, but these areas
are not beautiful areas. He mentioned that he had allowed
Tandem Oil to drill on his property with the prerequisite
that the company fill the land and drain the standing water.
What was once a swampy area is now a useable piece of property.
He mentioned that most of the people drilling wells in Bay-
town are Baytown citizens. He reiterated that the school
district stands to lose a considerable sum if the ordinance
is eventually changed to the 400 feet requirement.
Councilman Fuller pointed out that one thing that
Council should not lose sight of is that in dealing with
other ordinances, existing businesses have been grand-
fathered and leases were purchased under the provisions of
the existing ordinance.
Councilman Philips said that there is a good ordinance
in effect, but it appears that it needs to be more stringently
enforced. He felt that Council needed to look at each
request for permits on a case by case basis taking into
account the public health, safety and welfare. In this
particular case, he did not feel that the public health,
safety or welfare is in jeopardy.
40830 -4
Minutes of the Special Meeting - August 30, 1984
Mr. Franklin mentioned that the parks are presently in
a poor state and need care. He asked Council to look at the
place where Minex is asking to drill. The company had first
wanted to drill as close as possible to the existing well, but
because a trailer was moved in which made the location within
200 feet of a residence and a settlement could not be worked
with the owner, the company was forced to set back 209 feet.
He stated that he did not feel that drilling would cause any
great disturbance because the area can still be developed as
a park.
Councilman Ron Embry moved that Council approve Proposed
Ordinance No. 40830 -2, approving applications of Minex,
Inc. to drill four wells on city -owned property; Councilman
Fuller seconded the motion.
Mr. Krizak reminded Council that Minex, Inc. had applied
to drill four wells, but the company could always apply to
drill more in the future. He also mentioned that the company
knew of the restriction that the permit must be authorized
by Council prior to purchase of the lease. Tank batteries
and wells are certainly unsightly on park sites, as well as
throughout the city.
Raymond Martin, resident of Southwest Addition, spoke to
the safety issue and mentioned that approximately 20 years
ago there was a blow out which could have caused damage in
Southwest Addition area if the wind had been blowing in a
different direction. He also mentioned that with the drilling
being very near his back door, he is concerned about safety.
Mr. Franklin stated that he was aware that the Council
had to approve any drilling on city -owned property, but he
did not feel at the time the lease was purchased that the
ordinance had been drafted to deny access.
David King with King Exploration Company stated that he
has nothing to do with Minex, Inc., but he was present when
representatives of Minex approached the City Attorney and
Mr. Rountree, Director of Parks and Recreation, indicating
a desire to work with the city. He pointed out that twenty
years ago the oil industry did not have the technology avail-
able that is now available. Now there are blow out preventers.
The fire chief of the city inspects the wells routinely. As
far as insurance coverage, no matter how much insurance a
company may purchase, if there is a real problem, no amount
of insurance will properly cover damages. Mr. King stated
that he had worked nine months to get the lease with the
school district which was purchased under the existing
ordinance. If Council elects to go to the 400 feet, this
will effectively eliminate the school leases.
Councilman Fuller made it clear to all those present that
as far as he was concerned, each request for permits coming
before City Council would be considered on its own merits.
In the future, any such requests could be approved or
rejected.
Councilman Philips stated that he felt that if Bobby
Rountree felt that the drilling of these wells would jeopar-
dize the parks that he would say so.
40830 -5
Minutes of the Special Meeting - August 30, 1984
Councilman Simmons pointed out that Bayland and Britton
Parks have the best potential for water based parks. He
predicted that drilling in Bayland and Britton will abso-
lutely ruin both properties as far as parks are concerned.
Councilman Simmons continued that in 1981 the city voted a
$23,000,000 bond issue. A portion of that was allowed
toward acquisition of park lands; therefore, he wondered
what the posture of the citizens of Baytown would be the
next time a bond issue is put forth, requesting $3,000,000;
$5,000000 or whatever for park acquisition, knowing that the
history is to allow drilling. He felt that it would be very
difficult to convince the citizens to vote a park bond issue
knowing that.
Mr. Rountree said that he would hope to have support of
Council in defending the city's position on issuance of per-
mits. He stated that according to the legal advice that he
had been given, Minex's request is reasonable. Had the
company requested to drill 8 to 10 wells all over the
property, that would not be reasonable. These people did
say that they would like to drill four wells and explained
where they planned to locate, if that was suitable, and that
was suitable as far as the legal definition of reasonable.
Councilman Simmons explained that he was not critical
of the Director of Parks and Recreation's negotiations as far
as attempting to minimize damage to the parks, but the
Councilman had understood Mr. Krizak to say that possibly
the company may drill anywhere from 15 to 20 wells. Mr.
Rountree said that he couldn't answer that, but he would
think the parks' board, we well as the Director of Parks
and Recreation would take a dim view of that request.
In response to an inquiry from Council, Mr. Rountree
stated that in the future, the city will need to purchase
mineral rights when properties are purchased for park
purposes. However, he does not feel that the city should
discontinue its parks' acquisition program because of this
situation.
Councilman Simmons commented that he had been present
at the hearing when Mayor Cannon had requested federal assis-
tance. The Mayor had requested assistance from the U. S.
Forestry Department to help build back 33 parks consisting
of 300 acres and to replant 205 trees. Councilman Simmons
concluded that what nature didn't doh' the city is going to
allow man to finish up.
Mr. Rountree explained that to his knowledge, no trees
will be removed except scrub trees (6 to 8 feet tall). If
the company were going to remove a large pine tree in Bay -
land Park, the director of parks would object. Mr. Rountree
clarified that with regard to the condition of both parks,
both parks were used after Hurricane Alicia to deposit
debris and brush because there was no other place to put it.
Alicia came through about one year ago and the department is
just now getting to the point where these parks can be
cleaned up. Secondly, there is money in the bond program for
development of both parks, but because there has been no bond
sale, those programs have been pushed back and it will be
approximately four years before the parks are developed.
40830 -6
Minutes of the Special Meeting - August 30, 1984
Councilman Embry asked Mr. Rountree if in his opinion the
plans to drill these four wells will destroy or eliminate the
possibility that these sites could be developed as effective
parks. Mr. Rountree responded that anytime one puts an
obstruction in the park, this will inhibit the development
somewhat; however, the legal opinion that Mr. Rountree had
received was that the city needs to work reasonably with
these people. He stated that he felt that this had been
done, and he felt that the parks can be developed as planned
where the current wells and current tanks are located.
Again, Mr. Rountree reiterated that the parks' board had
discussed the matter and would take a dim view of requests
for more permits. The vote follows:
Ayes: Council members Philips, Johnson, Embry
and Fuller
Nays: Councilman Simmons and Mayor Cannon
ORDINANCE NO. 3933
AN ORDINANCE AUTHORIZING MINEX, INC. TO DRILL OIL WELLS ON
CITY OWNED PROPERTY, BEING THE ARIZONA STREET PARK AND
BAYLAND PARK; PROVIDING FOR THE EFFECTIVE DATE HEREOF.
Consider Proposed Ordinance Granting An Easement to Houston
Lighting and Power Company for Power Lines to Service the
Police Radio Tower Site off North Main
Councilman Philips moved to adopt the ordinance; Council-
man Embry seconded the motion. The vote follows:
Ayes: Council members Philips, Johnson, Simmons,
Embry and Fuller
Mayor Cannon
Nays: None
ORDINANCE NO. 3934
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR OF THE CITY
OF BAYTOWN TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN
EASEMENT TO HOUSTON LIGHTING AND POWER COMPANY; AND PROVIDING
FOR THE EFFECTIVE DATE HEREOF.
Adjourn
There being no further business to be discussed, the
meeting was adjourned.
Eileen P. Hall, City Clerk
BAYTOWN
BEAUMONT
HOUSTON pttaclinimt "pP
FILING FEE
$250
10t per foot
$1,000. maximum
$250
City Manager
Code Enforcement Officer
Director of Public Works and Engineeri►g
,PERMIT GRANTOR
but City Council grants permits on
but City Council grants permits on
public property
public property
$50,000 for one
$25,000 per well
$50,000 for one
BOND
$100,000 for two or more
reduced to $10,000 during operation
$100,000 for two or more
$100,000 Personal Injury
Urban:
.
$300,000 per incident
$1,000,000 P.D. or $5,000,000.-
$300,000 p.i.
INSURANCE
$100,000 Property Damage
Non- Urban: $1,000,000 P.I. blanket indemnity
$100,000 P.D.
$500,000 P.D. agreement
owners and lessees within drilling unit
owners and lessees within drilling unit
NOTICE
one well-per drilling unit except-salt domes
one well per drilling unit except salt
SPACING
domes
no tanks within 300 Mt of occuplea structures
PROHIBITIONS
no well or tank within 150 feet of public or
private roads
no well within 200 feet of residence or
no well or tanK witfiln i,uuu Teet oT scnool,
no well within 400 feet of rest ence or
RESTRICTIONS
building without written permission of
parochial. school, hospital, convalescent,
building without written permission of
the owner ( ?)
orphanage, or nursing home without written
the owner except on salt domes.
consent of the owner.
no well within 300 feet of an occupied
structure without written consent of the
owner.
C3
ills
'
HUMBLE
KILGORE
LUFKIN
FILING FEE
$500
$500
$500
PERMIT GRANTOR
City Manager
Mayor
City Council
BOND
$25,000 per well
$25,000
reduced to $10,000
during operation
P. I. reduced to
$300,000 p.i. $100,000
$300,000 p.i.
$500,000 p.i.
INSURANCE
$200,000 P.D.
$ 50,000
$100,000 P.D.
$500,000 P.D.
during drilling
during opera ion
NOTICE
SPACING
streets and alleys
no perms s ssued where property is a ica e
PROHIBITIONS
to a civic purpose (parks, schools, libraries)
no well within 300
feet of a residence,
no well within
400 feet of a building,
no well within 600 feet
RESTRICTIONS
commercial building
or structure without
residential or
commercial without written
without consent
written permission
of the owner,
wavier of occupnats" and owners.
(City Council may issue permit in streets
or alleys)
'
MIDLAND
ODESSA
PORT ARTHUR
$250
$500
$1,500
FILING FEE
$100 supplement
$ 500 supplement
PERMIT GRANTOR
City Council
City Council
City Council
BOND
$25,000
$25,000 per well
$50,000
reduced to $10,000 during operation
$5,000,000 P.I.
$100,000 P.I. reduced
to 50,000
$250,000 P.I. plus $1,000,000
INSURANCE
$5,000,000 p.i.
$300,000 p.i.
$1009000
$750,000 p.i. for a blowout
$1,000,000 P.D.
$200,000 P.D.
$ 50,000
$500,000 P.O.
diming
eration
.
surface owners within 467 feet of drill site
NOTICE
SPACING
one well per drilling unit
streets and alleys
streets, alleys, easements, or right-of-way
PROHIBITIONS
of the city
no tank or separator site within 175 feet of
a residence or commercial or public building
no well within 175 feet of a residence,
no well or tank within
150 feet of a
street,
no well within 700 feet of a residence,
RESTRICTIONS
commercial structure or public building
road, highway, or alley-without City
Council
school, church, hospital, or commercial
without the consent of the owner and 3/4
approval
building without written permission of the
vote of City Council
owner
no well or -tank within
150 feet of a
residence
no tank or separator site within 467 feet of-
or commercial building
without City
Council
a residence, commercial structure or public
approval
building without the consent of the owner
and 3/4 vote of City Council
- I fly
I`i �q
19'l0
40830 -1
MINUTES OF THE EXECUTIVE SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
August 30, 1984
The City Council of the City of Baytown, Texas, met in
executive session on Thursday, August 30, 1984, at 5:00 p.m.
in the Conference Room of the Baytown City Hall with the
following attendance:
Fred T. Philips
Jimmy Johnson
Perry M. Simmons
Ron Embry
Roy L. Fuller
Allen Cannon
Fritz Lanham
Larry Patterson
Randy Strong
Eileen P. Hall
Absent: Gerald Dickens
Councilman
Councilman
Councilman
Councilman
Councilman
Mayor
City Manager
Assistant City Manager
City Attorney
City Clerk
Councilman
The meeting was called to order with a quorum present,
and Mayor Cannon recessed the open meeting into executive
session to discuss pending litigation.
When the open meeting reconvened, Mayor Cannon announced
that there was no business to be transacted.
Adjourn
Since there was no further business to be transacted,
the meeting was adjourned.
i
Eileen P. Hall, City Clerk