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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