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Home My WebLink AboutPR 22606: ONE YEAR EXTENSION OF PERMIT NO. 173 FOR DRILLING, AND OPERATION OF AN OIL AND GAS WELL City of ort rtltu � Texas www.PortArthurTx.gov DEPARTMENT OF DEVELOPMENT SERVICES DIVISION OF PLANNING AND ZONING INTEROFFICE MEMORANDUM Date: June 2, 2022 To: The Honorable Mayor and City Council Through: Ronald "Ron" Burton, City Manager From: Pamela D. Langford, Director of Planning & Development Services f.; Cc: Philip Vilardi, Building Official RE: P.R. No. 22606 — A resolution approving a one-year extension of Permit No. 173 for the drilling, completion and operation of an oil and gas well Introduction: The intent of this Agenda Item is to request approval of Proposed Resolution No. 22606 authorizing a one-year extension of Permit No. 173 for the drilling, completion and operation of an oil and gas well on approximately 64.78-acres of Land out of Section 9, T&NO RR Survey, Abstract No. 242, Port Arthur Jefferson County, Texas. An official request, in writing, was submitted by Aspect Energy, LLC in accordance with Chapter 66, Article I, Sections 66-3(3) of the Code of Ordinances. Background: On August 14, 2019, Acadian Land Services, LLC, applied on behalf of Aspect Energy, LLC requesting a permit to drill, deepen, or operate a well within the regulated area of the city. City Council held a public hearing to consider this request on October 7, 2019 and approved Resolution No. 19-750, authorizing the issuance of Permit No. 172. The permit expired on October 7, 2020, one (1) year from the approval/execution date. The applicant submitted a new application on February 2, 2021. In accordance with Chapter 66, Section 66.3(c) of the Code of Ordinances, the decision of whether to grant the application shall be within the city council's discretion, after public hearing and shall not be subject to review. A public hearing was held by the City Council on April 27, 2021 , for the issuance of Permit No. 173 for the drilling and operation of an oil and gas well at a definite location within the corporate city limits following approval of Resolution No. 21-235 on June 8, 2021. The permit is scheduled to expire on June 8, 2022. Pursuant to Section 66-6(3) of the Code of Ordinances the term of such permit shall be a period of one year from the date of the permit and renewable yearly thereafter, upon applying for such extension in writing to the director of community services and approval by the city council, if the permittee is engaged in drilling or commercial operations pursuant to such permit. Aspect Energy submitted, in writing, their request for extension dated May 26, 2022. If granted, the expiration date for renew shall be on or around June 8, 2023. After further review, it has been determined that Aspect Energy, LLC has satisfied all applicable requirements and this use being a use authorized by the City of Port Arthur Zoning Ordinance and having satisfied all other applicable requirements of said Chapter 66, Article I of the Code of Ordinances. Budget Impact: None Recommendation: It is recommended that City Council approve Proposed Resolution No. 22606 authorizing a one-year extension of Permit No. 173 for the drilling, completion and operation of an oil and gas well on approximately 64.78-acres of Land out of Section 9, T&NO RR Survey, Abstract No. 242, Port Arthur Jefferson County, Texas. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R. NO. 22606 06/02/2022 - PDL PAGE 1 OF 9 RESOLUTION NO. A RESOLUTION APPROVING A ONE YEAR EXTENSION OF PERMIT NO. 173 FOR THE DRILLING, COMPLETION AND OPERATION OF AN OIL AND GAS WELL BY ASPECT ENERGY, LLC WHEREAS, City Council approved Resolution No. 21-235, authorizing Permit No. 173 for the drilling, completion and operation of an oil and gas permit within the city; and, WHEREAS, pursuant to Section 66-6(c)(3) of the Code of Ordinances, Chapter 66 (Oil and Gas), Article I (In General) of the City of Port Arthur, Texas, the term of such permit shall be a period of one year from the date of the permit and renewable yearly thereafter, upon applying for such extension in writing to the director of community services and approval by the city council, as long as the permittee is engage in drilling or commercial operations pursuant to such permit; and, WHEREAS, Aspect Energy, LLC has made an application for extension for one year in accordance with Chapter 66, Article I, Section 66-6(c)(3), as delineated in Exhibit "A"; and, WHEREAS, the Director of Development Services has stated, and the city finds that said application complies with all the requirements of said Chapter 66 of the Code of Ordinances; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT pursuant to said Chapter, the Building Official be and is hereby authorized to execute on behalf of the City of Port Arthur, a one (1) year extension of Permit No. 173 in form and substance set forth in Exhibit "A" attached hereto and made a part hereof, to be issued to Aspect Energy, LLC for Oil and Gas Drilling and Operating at the following location: 64.78-ACRES OF LAND OUT OF SECTION 9, T&NO RR CO SURVEY, ABSTRACT NO. 242 PORT ARTHUR, JEFFERSON COUNTY, TEXAS EXHIBIT "C" P.R. NO. 22606 06/02/2022 - PDL PAGE 2 OF 9 THAT the Building Official shall cause a copy of this Resolution to be furnished to Aspect Energy, LLC. THAT a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED this day of June, A.D., 2022, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS: NOES: ATTEST: Thurman Bill Bartie, Mayor Sherri Bellard, TMRC, City Secretary APPROVED AS TO FORM: lecia ` izeno, City Attorney P.R. NO. 22606 06/02/2022-PDL PAGE 3 OF 9 APPROVED FOR ADMINISTRATION: onald "Ron" Bu n, City Mier . •er a"TIG i • Ar etmae Pamela D. Langford, Assist4nt City Manager- Operations/ Director of Planning & Development Services P.R. NO. 22606 06/02/2022- PDL PAGE 4 OF 9 EXHIBIT "A" P.R. NO. 22606 06/02/2022—PDL PAGE 5 OF 9 ASPECT I May 26,2022 Pamela Langford Asst.City Manager Director of Planning&Development Services City of Port Arthur 444 4th Street Port Arthur,TX 77640 Attn:Director of Code Enforcement BY US MAIL AND EMAIL(Pamela.langford@Dortarthurtx.Rov) Dear Ms. Langford, As you are aware,Aspect Energy("Aspect")was granted Drilling Permit No. 173,effective June 8, 2021. A copy has of the Drilling Permit has been attached for your reference. In light of our desire to continue operations and complete our drilling program,Aspect hereby formally requests an extension of the Drilling Permit,which expires on June 8,2022.The Drilling Permit states that it may be extended for one year, provided that"the Permittee is engaged in drilling or commercial operations".I have confirmed that as part of our drilling operations program,Aspect has constructed the drill site road and drilling pad and is continuing preparations for drilling.Aspect will arrange for the further mobilization of the drilling rig and drill site equipment once it receives its pending Road Use Permit,for which it applied in July 2021. Please let me know if you need any additional information regarding this request or if you would like to discuss. Thank you, gatAliftevAiik. Michael Short Sr.Attorney,Aspect Energy mshortCa@aspectenergv,com 303-225-5211 P.R. NO. 22606 06/02/2022- PDL PAGE 6 OF 9 EXHIBIT " B " P.R. NO. 22606 06/02/2022— PDL PAGE 7 OF 9 Enrrgy 4 City of Ciry. il ort rthur Texas OIL AND GAS DRILLING PERMIT Having filed an application in accordance with Chapter 66 of the Code of Ordinances regulating the drilling, completion, reworking and operation of oil and gas wells and City Council Resolution No. having authorized the issuance of this drilling permit upon satisfaction of all applicable requirements and this use being a use authorized by the City of Port Arthur Zoning Ordinance and having satisfied all other applicable requirements of said Chapter 66, Article I, Aspect Energy, LLC (hereinafter called "Permittee") is hereby granted a permit to drill and operate an oil and gas well at the following described site more particularly described in said application: 64.78-ACRES OF LAND OUT OF SECTION 9, T&NO RR CO SURVEY, ABSTRACT NO. 242 PORT ARTHUR, JEFFERSON COUNTY, TEXAS EXHIBIT"C" By making application and acceptance of this Permit by the Permittee, said Permittee agrees to comply with all Ordinances of the City of Port Arthur as are now provided or as hereafter may be provided pertaining to the operations for the drilling and production of oil and gas, said provisions being incorporated by reference in this Permit, and having the same force and effect as if copied verbatim in this permit. Permittee hereby further agrees to defend, exonerate, indemnify and hold the City of Port Arthur harmless from any and all liability arising out of the granting of, or Permittee's operations pursuant to, this permit and to defend, exonerate, indemnify and hold the City of Port Arthur harmless from any and all liability of every kind and nature whatsoever which may arise because of any act done or omitted by Permittee or successors thereto. This indemnity and hold harmless agreement shall apply to Permittee regardless of whether or not it is alleged and/or proved that said liability was caused in part by an act or omission of the City. The performance of this indemnity and hold harmless agreement shall be insured by contractual liability insurance as required by Chapter 66. The term of this Permit extension shall be for a period of one(1)year and renewable yearly thereafter, upon applying for such extension in writing to the Director of Code Enforcement and to City Council as long as the Permittee is engaged in drilling or commercial operations pursuant to such permit. Neither Chapter 66 or the Code of Ordinances, nor any permit issued thereunder, nor this permit shall be interpreted to grant any right or license to the Permittee to enter upon, use or occupy in any respect of the drilling or operation of any well, any surface land except by the written contract of the surface owner; nor shall it limit or prevent the free right of the owner to contract for the amount of damages, rights or privileges with respect to his own land and property. Dated this day of June,A.D. 2022 ACCEPTED: Name of Permittee: Aspect Energy, LLC By: Title: Building Official: P.R. NO. 22606 06/02/2022— PDL PAGE 8 OF 9 EXHIBIT "C" NOTE Approx.3.3 Miles SouthwesterlyAll bearings.distances,areas and coordinates rarer to the Texas Coordinate System of 1927.South Central Tone From Nederland.Texas LEGEND ——— Approximate Survey_fines Lease Lines WILLIAM CARROLL I I A-13 1 T&NO RR CO 1 A-242 , WILLIAM MCFADDIN SECTION 9 i A-420 1 SECTION 4 TRACT I T&NO RR CO VALERO LUCAS PARTNERS,LLC i A-415 TRACT 3 5.41 ACRES UNION PACIFIC RAILROAD t VOL 340,PAGE 93 7 71 ACRES JEFFERSON COUNTY.TEXASSECTION 10 OR 2-187 WO JEFFERSON COUNTY,TEXAS I A ITRACT a 1629' BALLARD EXPLORATION 1 COMPANY Proposed Surtace LXFativn, 355 ACRE TRACT Aspect Energy.LLC I OR 162.402 tg,\ CI.,RB�rnon JEFFERSON COUNTY.TEXAS et . Ne••We ram Aft+' / N9'j I r� I / . \ ef h \\ /.Q"J� TRACT 1 \ PBNL r t.'` C DOORNBOS MINERALS L P I \\\ 80135 — OPR ENTRY NORES 2 011502 991 5 JEFFERSON COUNTY TEXAS %, /, o" 1 w I T&NO RR CO 1 `%\\ A-238 —\ / SECTION 5 I. ( — — _ — — T&NO RR C— O 7&NO RR CO A 416 A-239 i SECTION 6 SECTION 7 I PROPOSED SURFACE LOCATION: �P{RDOk[POSED BOTTOM ASPECT ENERGY,LLC l ,O�ER NIPSHL. CNAZZ REINNOLO NO'WELL CN4ZZREINNOLO SAC 27 NO 1 WELL X=3.574447 e0 INAD 271 Y Y. 798.431 45 X.3.573857 ;AT• 29.56 13.97' Y• 79I.818 1 '_ONG•94.01'39.23E Lease.1051'FW- I SAD 83 Survey 1513'FSL it act'PAL M.242 X-3,542.857 Y Y. 13921.889 • JT= 29.5e'IkRY O� J LONG=ee•Dr 40.12' 9'� Q FOR THE EXCLUSIVE USE OF Clay 4 2h NAVE/em •,fie.eseAST,FT1� Lease 581'FNL&197 FEL A CO P O itS, ASPECT ENERGY,LLC Survey 2293'PSL a ie29 FWt fA-242I A I.Dale R.Hollister,Registered Professional gears SW 33.3 MM.Corr 1m0 1.n9 TX I Land Surveyor,do herebystate this plat is true DAL9'R .v_:_af�R C Y o NOTE: / end cortect to tha best of my knowledge. This plat represents a survey made on the yQ9 6382 e;jQ ` ground for a well IoeaUon It IS not a boundary 71 �%°56fi5Q�+�0 I • survey As such.this survey does not a was SURV�e intended,to comply with the TEPLS minimum • standards of practice for a land boundary '` ' Survey Only limited measurements were made ale ollister and lease lines were established and compiled Registration No 6382 from those measurements and records.This plat is stncUy for the use or Aspect Energy,LLC WELL LOCATION PLAT gti for aegmnng Texas Railroad Commisemn ASPECT ENERGY, LLC 3 Permits for Oil and Gas Exploration in Lie State of Texas. CHAZZ REINHOLD, NO.1 WELL LIIC to°°' _ .. C SOO 1opO' T&NO RR CO A-242,SECTION 9 Scale:1"=1000' JEFFERSON COUNTY,TEXAS REVISIONS C H Fenstermaker S Assocates,L L.C. DRAWN BY:DRH a BY: DATE: DESCRIPTION: 135 Regency Sq Lafayette,IA 70508 Ph.337-237-2200 Fax.337-232-3299 PROJ.MGR.:DRH -1111 —�— www-fenetermaker.eom DATE:8/28/2019 �/ Taxes Firm No.10028500 FILENAME:T:12 01 912 1 90 08 8\DWG1Chazz_Reinhold Location.dwg D °' .0, aisY i ONN 7r ' 1 -- \ 4; ' \ 29.93741494 027811 \\ ` \ '' • __ - \-. \ . i + » ] Alt f i z $N. 0 ` `t,-- It WilY L ill, 1` Goo le Ea tA: ...49 O' •gle Earth mrs 1 A m 1