HomeMy WebLinkAboutPR 24389: APPROVAL OF PERMIT NO. 173 OIL AND GAS DRILLING APPLICATION BY GEOTERRE OPERATING, LLC City of
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www.PortArthurTx.gov
DEPARTMENT OF DEVELOPMENT SERVICES
INTEROFFICE MEMORANDUM
Date: June 9, 2025
To: The Honorable Mayor and City Council
Through: Ronald "Ron" Burton, CPM, City Manager
From: Pamela D. Langford, CPM, Assistant City Manager— Operations/Director of
Development Services
RE: P.R. NO. 24389 —Approval of Permit No. 173 — Oil and Gas Drilling
Application by GeoTerre Operating, LLC
Introduction:
The purpose of this memorandum is to request the City Council's consideration and
approval of proposed Resolution No. 24389, approving Permit No. 173 for the drilling
and operation of an oil and gas well by GeoTerre Operating, LLC on an 80-acre tract of
land situated in the John McGaffey League Survey, Abstract No. 167, approximately one
mile southwest of Sabine Pass, within the corporate limits of the City of Port Arthur,
Jefferson County, Texas.
Background:
GeoTerre Operating, LLC submitted a permit application for an oil and gas well with a
proposed depth of 8,500 feet on an undeveloped 80-acre tract. The well will follow a
TCEQ-regulated casing program and comply with all state and federal drilling regulations.
The Texas Railroad Commission approved Permit No. 907462 for this location on April
25, 2025.
The subject application has been reviewed by the City's Development Services
Department and determined to be in full compliance with Chapter 66 of the City of Port
Arthur Code of Ordinances, which governs oil and gas development within city limits.
As required under Section 66.3, a public hearing was held on June 4, 2025, at 6:00 p.m.
to solicit public input. No members of the public appeared in opposition to the request.
Budget Impact:
None
Recommendation:
Staff recommends that the City Council approve Permit No. 173 and authorize the
Building Official to execute the permit on behalf of the City Council, in substantially the
same form as presented in Exhibit "C" of the proposed resolution. The permit shall be
issued to GeoTerre Operating, LLC, with operations to be conducted in accordance with
all applicable city, state, and federal laws and regulations.
P.R. NO. 24389
06/09/2025- PDL
PAGE 1 OF 13
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR, TEXAS, APPROVING PERMIT NO. 173
FOR DRILLING FOR OIL AND GAS ON AN 80-ACRE
TRACT OUT OF THE JOHN MCGAFFEY LEAGUE
SURVEY, ABSTRACT NO. 167, WITHIN THE CORPORATE
LIMITS OF THE CITY OF PORT ARTHUR, TEXAS, AND
PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City of Port Arthur, pursuant to Chapter 66 of the City of Port
Arthur Code of Ordinances, regulates the drilling and operation of oil and gas wells within
its corporate limits to protect public health, safety, and welfare; and,
WHEREAS, an application has been submitted by GeoTerre Operating, LLC, a
delineated in Exhibit "A", for Permit No. 173 for the drilling of an oil and gas well on an
80-acre tract of land situated in the John McGaffey League Survey, Abstract No. 167,
located approximately one mile southwest of Sabine Pass, within the incorporated city
limits of Port Arthur, Jefferson County, Texas; and,
WHEREAS, the proposed well is planned to a depth of approximately 8,500 feet
and will utilize a casing program regulated by the Texas Commission on Environmental
Quality (TCEQ) to ensure environmental protection and public safety; and,
WHEREAS, the Texas Railroad Commission has reviewed and approved the
state-level application and issued Permit No. 907462 for the proposed drilling on April 25,
2025, as delineated in Exhibit "B"; and,
WHEREAS, the City's Development Services Department and applicable City
departments have reviewed the application and determined that the request is in
compliance with Chapter 66 of the City of Port Arthur Code of Ordinances, including all
setback, casing, and environmental requirements; and,
WHEREAS, the City Council finds that approval of Permit No. 173 is in the best
interest of the public and consistent with the City's regulatory framework for oil and gas
operations.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
P.R. NO. 24389
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PAGE 2 OF 13
Section 2. That the City Council hereby approves Permit No. 173 for the drilling of
an oil and gas well on an 80-acre tract of land located in the John McGaffey League
Survey, Abstract No. 167, approximately one mile southwest of Sabine Pass, within the
corporate limits of the City of Port Arthur, Texas, as delineated in Exhibit "D", attached
hereto and made a part hereof.
Section 3. That all drilling and associated operations shall conform to the
applicable provisions of Chapter 66 of the City of Port Arthur Code of Ordinances, and all
applicable federal and state regulations, including the casing program approved by the
Texas Commission on Environmental Quality (TCEQ) and the Texas Railroad
Commission Permit No. 907462.
Section 4. That the Building Official of the City of Port Arthur is hereby authorized
and directed to execute Permit No. 173 on behalf of the City Council, in the form and
substance substantially similar to the draft attached hereto as Exhibit "C", to be issued to
GeoTerre Operating, LLC for oil and gas drilling and operations at the location described
in Exhibit "D".
Section 5. That The issuance of Drilling Permit No. 173 shall be contingent upon
GeoTerre Operating, LLC submitting the required bond and insurance documentation as
required by Chapter 66 of the Code of Ordinances.
Section 6. That in compliance with Section 66.3 of the City of Port Arthur Code of
Ordinances, a public hearing was held by the City Council on June 4, 2025, at 6:00 p.m.,
and no objections or public opposition to the granting of Permit No. 173 were presented
during the hearing.
Section 8. That a copy of the caption of this Resolution shall be spread upon the
Minutes of the City Council.
P.R. NO. 24389
06/09/2025- PDL
PAGE 3 OF 13
READ, ADOPTED AND APPROVED this day of June 2025, A.D., at a
Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: MAYOR
COUNCILMEMBERS:
NOES:
Thurman Bill Bartle, MAYOR
ATTEST:
Sherri Bellard, TMRC, CITY SECRETARY
APPROVED AS TO FORM:
Roxann Pais Cotroneo, CITY ATTORNEY
APPROVED F• : ADMINISTRATION:
"*PIP°r
LiObler,<- (--D• ( /24
Ronald "Ron" Bu - , CPM, CITY MANAGER Pamela D. Langford, CPM, ASSISTANT
CITY MANAGER — OPERATIONS/
DIRECTOR OF DEVELOPMENT
SERVICES
P.R. NO. 24389
06/09/2025- PDL
PAGE 4 OF 13
EXHIBIT "A"
P.R. NO. 24389
06/09/2025 —PDL
PAGE 5 OF 13
"` APPLICATION FOR DRILLING PERMIT
0
Oil and Gas
ttirrrf rfhar
Trru
(Pursuant to Chapter 66, Article I of the City of Port Arthur Code of Ordinances)
APPLICATION DATE: 4/21/2025 PERMIT NO: RRC# 907462
APPLICANT OWNER (if differenti
NAME: GeoTerre Operating, LLC
ADDRESS: 9141 Interline Ave, Suite 3A
Baton Rouge, LA 70809
TELEPHONE:
ALT.
FAX NO: NA
nraig@sceroler.com
EMAIL:
PRESENT ZONING: HI - Heavy Industrial
ALL OF THE FOLLOWING ITEMS REFERENCED IN THE SUBMITTAL CHECKLIST —
DRILLING PERMIT MUST BE SUBMITTED WITH THIS APPLICATON BY 12:00 NOON
ON THE SUBMITTAL DEADLINE DATE (SEE P&Z SCHEDULE) TO BE CONSIDERED A
COMPLETE SUBMITTAL. AN INCOMPLETE SUBMITTAL WILL BE RETURNED TO THE
APPLICANT OR PROCESSED ON THE NEXT SUBMITTAL IF THE MISSING ITEMS ARE
SUBMITTED AFTER THE DEADLINE.
Note: Although a complete application is received by the submittal deadlines, the case may be
moved to a later meeting date. Planning & Zoning commission agendas are limited to a certain
number of cases and, therefore, may result in a backlog of development cases.
This application must be signed and notarized by all owners with checklist completed prior to
submittal acceptance.
Page lot 4
P.R. NO. 24389
06/09/2025 - PDL
PAGE 6 OF 13
EXHIBIT " B"
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P.R. NO. 24389
06/09/2025- PDL
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EXHIBIT "C"
P.R. NO. 24389
06/09/2025-PDL
PAGE 9 OF 13
Permit No. 173
e iergp !J
City of co
Cort rthu41 )
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, GeoTerre Operating, 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:
80-ACRE TRACT OF LAND OUT OF
JOHN MCGAFFEY LEAGUE SURVEY, ABSTRACT NO. 167
PORT ARTHUR, JEFFERSON COUNTY, TEXAS
(SEE ATTACHMENT "B")
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 shall be for a period of one (1) year from the date of the Permit
and renewable yearly thereafter, upon applying for such extension in writing to the
Director of Development Services 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
P.R. NO. 24389
06/09/2025- PDL
PAGE 10 OF 13
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. 2025
ACCEPTED:
Name of Permittee: GeoTerre Operating, LLC
By:
Title:
Building Official:
P.R. NO. 24389
06/09/2025— PDL
PAGE 11 OF 13
ATTACHMENT "B"
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SURVEYORS NOTES ,,11GG
1. COORDNATES ARE BASED ON THE TEAS COORDINATE SYSTEM OF • $URv F•
1927,SOUTH CENTRAL ZONE.O.S.SURSEY FEET AND ARE
REFERENCED TO SNARTHET,NORTH AMERICA. O
2. TEICAS 011-CALL SRIXIED BE DONE PRIOR TO ANY OIGGNG OR
CONSTRUCTTON IN CASE OF UNOERGROVNO PIPELINES OR IInURES A THONY M. GER
S. PROPOSED LOCATION IS APPRO%TIATELY ONE MILE SOUTHNEST CF
THE TON.Of..Ammf S.
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METES AND BOUND OF AS DATE ST0 ACCOMPANY THIS wRSEY REGISTERED PROFESSIONAL LAND SURVEYOR NO. 5481
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06/09/2025- PDL
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2. TT-yws mI-CAALL ENCEE TO SHOULD BE DONE 10 ETC VI 019401k,CR REGISTERED PROFFSSIONAL LAND SURVEYOR NO. 5481
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06/09/2025- PDL
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