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HomeMy WebLinkAboutResolution - 2017-R0017 - Approval Of Oil And Gas Well Permit - Texland Petroleum L.P. - 01_12_2017Resolution No. 2017-R0017 Item No. 7.1.1 January 12. 2017 RESOLUTION WHEREAS, on September 23, 2016, Texland Petroleum, L.P. submitted a completed City of Lubbock Oil and Gas Well Permit Application to the City of Lubbock Planning Department; and WHEREAS, the City Council hereby finds that all Oil and Gas Well Permit pre -approval requirements provided in Article 8.07 of the City of Lubbock Code of Ordinances have been satisfied by the City and Texland Petroleum, L.P.; NOW THEREFORE; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, an Oil and Gas Well Permit with any approved conditions for the drilling and operation of an oil or gas well for Texland Petroleum, L.P. of Fort Worth, Texas. Said Oil and Gas Well Permit is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on January 12. 2017 (.X.- DANIEL M. PO E, MAYOR ATTEST: CP R�� Rebecc 1U Garza, City Secretary APPROVED AS TO CONTENT: n rew Paxton, Director of Planning APPROVED AS TO FORM: \-41- Justi P uitt, Assi tat City Attorney ccdocs . Oil & Gas Well Permit— Texland Petroleum, L.P. December 20, 2016 Resolution No. 2017-R0017 OIL & GAS WELL PERMIT The City Manager of the City of Lubbock, Texas (the "City") hereby approves and grants this Oil & Gas Well Permit (the "Permit") to Texland Petroleum, L.P. (the "Permittee") for the drilling and operation of an oil and gas well known as SSC-Ashby #1(the "Well"), to be located on a tract located approximately at 660' FNL and 1867' FWL of Section 8, Block A, A-1242, Lubbock County, Texas, and more particularly described on the application submitted and filed with the City's Planning Department on September 23, 2016, and attached hereto as Exhibit 1. This Permit is granted for a period of one hundred eighty (180) days from date of issuance, and as long thereafter as the Permittee is engaged in drilling operations with no cessations of such operations for more than ninety (90) days, or for so long as oil is produced in commercial quantities from the well drilled. If at any time after the discovery of oil, or the production thereof in commercial quantities shall cease, this Permit shall not expire if the Permittee commences additional reworking operations within one hundred eighty (180) days thereafter for so long as oil is produced in commercial quantities from such well. This Permit is granted subject to the following conditions: 1. The total depth of the Well shall not exceed nine thousand six hundred eighty (9,680) feet. A greater depth shall require an additional permit and permit fee. 2. The Permittee shall meet all requirements of Article 8.07 of the City's Code of Ordinances, all conditions and requirements listed in the Permitee's application attached hereto as Exhibit 1, and any other applicable local, state, or federal law or regulation. 3. The Permittee shall satisfy all conditions recommended by the City Council in its granting of this Permit. 4. INDEMNITY — THE PERMITTEE AGREES TO SAVE HARMLESS THE CITY FROM AND AGAINST ALL CLAIMS, SUITS, DAMAGES OR LOSSES IN ANY MANNER ARISING OUT OF OR CONNECTED WITH THE DRILLING OR OPERATION OF THIS WELL. Granted by the City on January 12, 2017 (Signature Page to Follow) City of Lubbock — Oil & Gas Well Permit — Texland Petroleum, L.P. — SSC-Ashby 1— January 2017 Page 1 SIGNATURES For: THE CITY OF LUBBOCK For: TEXLAND PETROLEUM zo.� zz�� W. J, et Atkinson, City Manager Title: ATTEST: Reb cca Garza, City Secret ry APPROVED AS TO CONTENT: i An' -drew Paxton, Director of Planning APPROVED AS TO FORM: Justin P ui , Assista4 City Attorney City of Lubbock— Oil & Gas well Permit—Texland Petroleum, L.P. —SSC-Ash by I —January 2017 Page 2 EXHIBIT 1— Permittee's Application City of Lubbock —Oil & Gas Well Permit—Texland Petroleum, L.P. —SSC-Ash by 1 —January 2017 Page CITY OF LUBBOCK OIL AND GAS WELL PERMIT APPLICATION ADDITIONAL WELL ON PRODUCTION UNIT SECTION 8.07.033 (1) Date: September 23, 2016 (2) Name of Applicant: TEXLAND PETROLEUM, L.P. (3) Address of Applicant: 777 Main Street, Suite 3200 Fort Worth, Texas 76102 (4) (A) Proposed Name of Well: SSC-Ashby #1 (B) Name and Address of Surface Owner at well site FORTUNE8, INC. 4618 91 ST ST LUBBOCK,TX 79424 (C) Name and Address of Mineral Rights Owner at well site John K. Ashby 4618 91st Street Lubbock, TX 79424 Arthur S. Williams 5702 Hilton Head Dr. Garland, TX 75044 (D) Name and Address of Mineral Lease Owner at well site Texland Petroleum, L.P. 777 Main Street, Suite 3200 Fort Worth, Texas 76102 (E) Legal description for site of well The surface location will be 660' FNL and 1867' FWL of Section 8, Block A, A-1242, Lubbock County, Texas (5) Type and height of the pump jack or pump equipment proposed for producing the well: Beam Type —18 feet (6) (1) Proposed depth of the well and name of the geologic formation as used by the RRC Total Vertical Depth: 5,400 feet Formation: Upper Clear Fork (7) A legal description of the production unit See plat on attached Exhibit A. El Cid Application - Lubbock City Council Page 1 of 6 (8) A true and correct copy of the plat survey filed with the RRC as part of the drilling permit application for the subject well. See attached Exhibit A (9) Accurate map or drawing specifying exact location of storage facility and location of flowlines from the well site at a scale of 1/300 or greater. See attached Exhibit B. (10) The following, including exact acreage and if within a plat approved by the planning and zoning commission, provide the subdivision name, block and lot number, and: (A) Ownership of surface acreage for each parcel in the production unit; FORTUNE8, INC. 4618 91ST ST LUBBOCK,TX 79424 (B) Ownership of mineral rights for each parcel in the production unit; John K. Ashby 4618 91st Street Lubbock, TX 79424 Arthur S. Williams 5702 Hilton Head Dr. Garland, TX 75044 (C) Ownership of surface acreage for each parcel abutting the production unit; Section 8, Block A: FORTUNE8, INC. 4618 91ST ST LUBBOCK,TX 79424 Section 1, Block A: TEXAS INVESTMENT PARTNERS LLC Attn: DOMINION REAL ESTATE PTRS 15029 N THOMSON PECK PKWY STE B111-148 SCOTTSDALE,AZ 85260 (D) Ownership of mineral rights for each parcel abutting the production unit: Section 8, Block A: Same as (B) above. Section 1, Block A: TEXAS INVESTMENT PARTNERS LLC Attn: DOMINION REAL ESTATE PTRS 15029 N THOMSON PECK PKWY STE B111-148 SCOTTSDALE,AZ 85260 (E) Name and address of each owner of any parcel of property within three hundred (300) feet of the proposed wellhead; and FORTUNES, INC. 4618 91ST ST LUBBOCK,TX 79424 El Cid Application - Lubbock City Council Page 2 of 6 (F) Name and address of each owner of any parcel of property within one thousand (1,000) feet of the proposed storage facility. Using Existing storage facility on Guava Avenue north of Loop 289. Section 5, Block A: W. R. Collier PO BOX 1948 LUBBOCK,TX 79408 Section 6, Block A: BARKLEY GEORGE N & JANETTA F BARKLEY TRUST 5749 KENTON WAY ENGLEWOOD,CO 80111 (11) Alternate location of the well due to adjacent land uses: Not applicable in this case; the location is in the middle of a cotton field. (12) Air pollution and odor control devices: The drilling rig is outfitted with electronic control systems to increase fuel efficiency and minimize emissions. Production equipment (if necessary) will run on electric motors to eliminate emissions and noise from diesel or gas powered engines. All production equipment uses sealed stuffing boxes to eliminate natural gas emissions. Texland's battery uses sealed stock tanks to prevent emissions. All facilities will comply with Railroad Commission Requirements with respect to odor and air pollution control devices. (13) Noise control devices: Mufflers rated for urban areas will be used on the drilling rig. If completed as a producer, the pump will be an electric pump to eliminate noise from diesel or gasoline powered engines. The owner has not requested additional noise control. The well location is in the middle of an undeveloped field. The location is approximately 1,000 feet from the nearest inhabited building, which is a house on E. Kent Avenue approximately % mile west of the intersection of Mesa Road. Because of the location and distance involved, Texland would not propose any additional noise abatement measures. (14) Type of engine for pump equipment: Electric Motor (15) Height of the pumping equipment during production: Approximately 18 feet. (16) (a) Fire control measures at the drill site: The drilling location is cleared of brush and other potentially flammable objects before the commencement of drilling operations. Texland will notify the Lubbock Fire Department upon commencement of drilling operations. Fire extinguishers will be provided by the drilling contractor during drilling operations. El Cid Application - Lubbock City Council Page 3 of 6 (b) Fire control measures at the storage facility: A firewall surrounds the storage facility and fire extinguishers are carried by Texland personnel working and supervising the facility. (17) Fence or visual screening on the site of pump equipment and storage facilities: Not applicable in this application; the storage facility is already existing and the pump equipment is in the middle of a cotton field. (18) Landscaping on the site of pump equipment and storage facilities: Not applicable in this application; the storage facility is already existing and the pump equipment is in the middle of a cotton field. (19) Proof of contractual responsibilities of pump site and storage site maintenance: See attached Certificate of Insurance (20) Blowout prevention control: We will use a Shaffer 3000 pound, double hydraulic type 3 or equivalent blowout preventer. (21) Specific description of safety procedures required at the drill/pump site and the storage site: Texland Petroleum, LP adheres to generally accepted industry "Best Practices" for insuring a safe working environment while conforming to Federal, State and City of Lubbock Laws and Ordinances (22) Special handling/storage of sludge/waste from the drill site: (1) Steel pits (2) Earth pits X (23) Special disposal of sludge/waste from the drill site: Texland will deep bury the settled solids and as the free water and solids separate Texland will remove the free water from the earthen pit and dispose of the free liquid in a RRC approved disposal facility. (24) Location of storage facilities: Using existing facility located on Guava Avenue approximately 1000 feet north of Loop 289. (25) Ingress/egress of vehicular traffic to the drill site and production site: Ingress/egress will be off E. Kent Street in a Southerly direction approx. '/2 mile east of the intersection of N Guava Ave and E Kent Street. Note proposed major truck route for ingress/egress to storage facility Northwest -bound Loop 289 access road, north on Guava Avenue; alternatively, northeast on Municipal Drive, south on Guava Avenue. El Cid Application - Lubbock City Council Page 4 of 6 (26) Specific precautions proposed to prevent contamination of the water aquifer at the drill site: Surface casing will be run to a depth of approximately 1,700 feet, or the top of the Rustler Anhydrite formation. This will provide an additional barrier of steel and cement to protect the Ogalalla Aquifer. (27) Specify source of water for drilling operations: All water used for drilling operations will be supplied by a commercial water trucking company licensed by the State of Texas. Texland has not yet bid out the job for providing water for this operation, but we have historically used the following water providers for our operations in Lubbock County: Bergstein Enterprises, Ltd. 2310 Fordham Street Lubbock, TX 79415 Pate Trucking 3073 W State Road 300 Levelland, TX 79336 Basic Energy Services 801 Cherry Street, Suite 2100 Fort Worth, TX 76102 The physical source of the water will be at the discretion of the selected provider. (28) Specific requirements for route and location of flowlines between the wellhead and storage facilities: N/A (29) An emergency response plan establishing written procedures to minimize any hazard resulting from the drilling, completion, or producing of a well. Said plan shall use existing guidelines established by the RRC, the Texas Commission on Environmental Quality, the Texas Department of Transportation, the U.S. Department of Transportation, the Environmental Protection Agency, and/or the city fire code. This plan shall include a system of alarms to detect the loss of the well or any loss of containment integrity, access routes, and emergency contact information. A copy of the emergency response plan shall be kept on file with the city manager and on site. Said emergency response plan shall be updated annually. See attached Exhibit C. Section 8.07.074 (b) Earthen pits may be used in connection with drilling and reworking operations located at a greater distance than five hundred (500) feet of an occupied residential or commercial structure, or an existing church, public or private school, hospital, nursing home, college or university, daycare center or public athletic field or domestic water well. Any earthen pits shall, as a minimum requirement, be lined with six (6) inches of bentonite clay and a plastic liner of eight (8) mil thickness. Such tanks or pits and contents shall be removed from the premises and the drilling site within thirty (30) days after completion of the well. Removal of the tanks or pits and contents shall be accomplished in such a manner as will preclude any possible contamination of underground and percolating water. Texland notes that the location is at least 960 feet away from the nearest structure. The pits will be lined as required under Section 8.07.074. Upon the conclusion of drilling operations, Texland shall fill all pits and excavations, level all mounds, neutralize all acids and leave the ground in as near the same condition as before the commencement of Texland's operations. El Cid Application - Lubbock City Council Page 5 of 6 NAME OF APPLICANT: AFFIDAVIT TEXLAND PETROLEUM, L.P. I, Wilson C. Woods, on behalf of TEXLAND PETROLEUM, L.P., Applicant, hereby affirm that the above information contained in the application is true and correct to the best of my knowledge. App icant's nature SUBSCRIBED and SWORN to before me, allotary Public, on this 23rd day of September, 2016 by Wilson C. Woods. ir MEGAN K YATES .�, Notary Public, State of Texas Comm. Expires 7-22-2020 Notary ID 13075188-1 APPROVED Assistant City Attorney Planning Department Oil and Gas Inspector City Secretary Notary ublic for t e State of Texas DISAPPROVED Assistant City Attorney Planning Department Oil and Gas Inspector City Secretary El Cid Application - Lubbock City Council Page 6 of 6 PLAT SHOWING PROPOSED WELL LOCATION TEXLAND PETROLEUM, L.P.--------------------SSC-ASHBY 01 777 MAIN ST', STE. 3200 FORT WORTH, TEXAS 76102 Description 660 FEET FROM THE NORTH LINE AND 1867 FEET FROM THE WEST LINE 8 A 1.242 T. & T. R.R. GO. LUBBOCK Section Block Abst• Survey County 10 1 7 7 77 F°. SPIKE 5 8r50'44" E 5262.2' 42 W3.76 1 1 A-1242 t I EW F0.1/2, PIPE t o I • ml 40 AC. In 41 N °`I1867 10 TEXLANb PETROLEUM, LP 765' SSC-ASHBY LEASE: 226.41 AC. I SSGASHBY #1 1 I'L3246 I I 52°04'S5•W 333.72' Na7*5 55 w 175223 "H119ITr N 87°55'(19" W 879.0V • No.4 No.3 • N.E.1/4' EL.3248 EL3245 o A-1309 N oPER ssc. INc 16 ILA A-1278 Not No1A v� EL3246 �Nol N W _ Q ---------------=-------- ---------- N in 9 zr ze .a3 fn N Z 5ECTION BLOCK A, T. & T. k.R Co., ) LUBBOCK COONTY, TEXA5 i PLAT DATE. 5-17-16 OPER. ssc, n-jr- OPM ssc, INC A-M I A-1308 I FD. RR SPIKE I • I , I 41 N 88008'08° W 5274.1Y 1.U4* APE 5 5 6 BEARINGS & COORDINATES ARE BASED ON LAMBERT GRID. NAD27 TEXAS NORTH CENTRAL ZONE. DISTANCES ARE ACTUAL SURFACE DISTANCES. This survey and all information hereon is for the exclusive use of -----------TEXLAND PETROLEUM, L.P ---------- ond shall not be copied or used except for the purpose for which it is expressly furnished. This drawing and all copies (partial or complete) shall be returned to the owner upon demand. Operator: TEXLAND PETROLEUM, L.P. Lease: SSC-ASHBY Scale: 1" = 1000' Date Staked: MAY 16, 2016 Well • 1 Good Drill Site YES Alternate Location Staked NO Topography CULTIVATION Approx. Miles to Nearest Town APPROX. 2 MILES NORTH OF LUBBOCK, TEXAS Best Access. to Site KENT STREET ALONG NORTH SIDE OF SECTION Northing: NAD27 742691 Easting= NAD27 687862 Latitude: NAD27 33" 38'02.66" Longitude: NAD27 101° 48'43.63" 1, the undersigned Registered Professional Land Surveyor, do hereby certify that the above well location was surveyed on the ground as shown on this plat. Section lines shown on adjoining Sections ore for information only, and wer not surveyed on h ground. �7•; 1 y: Q��G -4r�4' �tf W11..,SQN RVY1NG Co., INC .»»°�YaVALSON "" 2 Registered Professional Land Surveyors �'oSS�o�P Global Positioning System Surveyors SU 3330 70th ST., SUITE 201 * LUBBOCK, TX. 79413 ' "B. 483. P. 26 (806) 792-4731 - FIRM No. 10074700 38,102 TT Bff I F-7 � Texland Petroleum, L.P. Emergency Response Plan — First Responder 24 Hour Emergency Number- 1-806-701-5083 Upon identifying or being made aware of an emergency. employees must takeimmediate action to ensure the safety of personnel, community, and environment. CALL 911 OR THE APPROPRIATE LOCAL RESPONDER SYSTEM IF PEOPLE ARE INJURED OR THE COMMUNITY IS THREATENED. The First Responder is the On -Scene Incident Commander until he or she is relieved. (l) Alert other personnel in the immediate vicinity by appropriate alarms, radio or other communication. Summon help if needed. Report the incident immediately to your Supervisor. If they cannot be reached, contact the next level of supervision. Solicit the help of local law enforcement if evacuation is necessary. (2) In the event of fire or explosion: a. Assess the situation as soon as possible, stay clear of danger/provide information to Supervisor. b. Evacuate the area immediately if there is a risk due to hazardous or toxic chemicals. C. Shut down operations in progress, close valve to isolate sources only if safe to do SO. d. Eliminate all sources of ignition. e. Enlist help and secure area to prevent public from entering site. f. Provide Chemical Safety Data Sheets to responders. g. Forward media inquiries to the Texland's Superintendent (3) In the event of spills: a. Assess the situation: determine the extent of spill and impact on surrounding area and probability of contamination of streams, or other bodies of water. b. Provide information to the Area Foreman and Superintendent. C. Evacuate the area immediately if there is a risk due to hazardous or toxic chemicals. d. Shut down operations in progress, close valve/valves to isolate sources only if safe to do so. e. Eliminate all sources of ignition. f. Keep public from entering site. Enlist help from other employees, contractors or other First Responders. g. Area Foreman or designate should order spill clean-up resources. h. Provide Chemical Safety Data Sheets to responders. i. Forward media inquiries to the Texland's Superintendent Last update: 09/23/2016 Texiand Petroleum, L.P. 24 HOUR EMERGENCY PHONE NUMBER: 1-806-701-5083 Name Title Cell Phone Office Phone PRODUCING OPERATIONS - LUBBOCK, TEXAS OFFICE Kirk Jackson Production Superintendent 432-894-1461 806-701-5083 Allen Grisham Production Foreman 806-777-3911 806-777-3911 Ricky Patterson Lease Operator 806-781-6352 806-781-6352 Gene Morrow Lease Operator 806-781-5006 806-781-5083 Steven Lewis Lease Operator 806-781-1924 806-701-5083 CORPORATE OFFICE — FORT WORTH, TEXAS Greg Mendenhall VP Operations 817-965-5443 817-336-2751 Clayton Scott Petroleum Engineer 817-201-8009 817-336-2751 Austen Kidwell Petroleum Engineer 817-228-3190 817-336-2751 Wilson Woods Counselor, Attorney at Law 817-336-2751 DRILLING OPERATIONS — LUBBOCK, TEXAS OFFICE Jerry Rogers Drilling Manager 806-781-3427 806-701-5083 Austen Lyle Drilling / Workover Engineer 806-781-8214 806-701-5083 Trey Wann Drilling / Workover Engineer 806-781-5063 806-781-5083 Last update: 09/23/2016