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Board of appeals denies variance requests
By Chris Roark, croark@acnpapers.com
During the Flower Mound Oil and Gas Board of Appeals meeting that began Wednesday night and ended early Thursday morning, the board denied variance requests made by Keystone Exploration, LTD to drill near Grapevine Lake.
Keystone was seeking to drill on 185.2 acres east of Deer Path, north of Harbor View Drive, south of Wichita Trail and west of Twin Coves Park Road. The area is on private property owned by Patsy Smith, outside of Twin Coves Park.
To do that, Keystone needed a host of 500-foot setback requirements to be reduced, but all of the variance requests were unanimously denied.
None of the board members commented on why they denied the variances except for chairman Scott Baker.
“This pad site is the wrong place for the 40 acres,” Baker said. “From what I can tell, there are too many variances no matter where you put this thing. It’s going to have to be juggled, looked at and reworked. I don’t think there’s a technical solution this close to the lake.”
Grapevine Lake water goes into the Trinity River, and Dallas Water Utilities draws water from the Trinity River and in turn sells water to Flower Mound and other municipalities. Dallas Water Utilities also gets water from other sources.
The team of Keystone officials and engineers gave a presentation to illustrate why the board should grant the variances.
Engineer Bobby Dollak discussed the safeguards to protect the water of Grapevine Lake from any possible spill, which included an industrial liner topped with gravel, a mulch berm and a 2.5-foot containment wall, which together would help contain about 582,000 gallons of water. He said a second berm would also be in place.
Dollak also referenced various reports from the Texas Railroad Commission that indicate no issues of water contamination from area lakes where gas drilling occurs, including Lake Bridgeport where two wells exist on an island, and Lake Arlington, which is surrounded by about 120 wells.
Melissa Lindelow, an attorney representing Keystone, summed up the reasons the variances should be granted. Her arguments included the various safety plans that had been submitted and approved by the town staff. She added that closed-loop operations add a safety measure.
She said the upland habitat isn’t in good condition anyway, and she said the site doesn’t impact the surrounding area.
Keystone vice president Steve Fort referenced numerous air quality studies in the Barnett Shale, saying that none of them reveal a health risk from gas drilling.
“All these claims we’ve heard are unsubstantiated,” Fort said.
Residents followed with their concerns, which included health risks, both from the drilling activity itself and from possible water contamination.
One speaker referenced action taken by the Environmental Protection Agency (EPA) against Ranger Resources in Parker County last week after it claimed water there was contaminated as a result of drilling.
“This isn’t just a Flower Mound issue, this is a fresh water issue,” said Southlake resident David Ray. “Just look at the action that the EPA took against Ranger Resources. Is the Railroad Commission protecting the industry or the public?”
Others were concerned with truck traffic on roads they say aren’t built for this type of activity.
Some opposed this because of property value impacts, and some residents warned that the wildlife’s core home would be destroyed.
“What they’re saying is that it’s OK to ignore the environment,” said one resident who was considering moving to Flower Mound.
Several speakers suggested that there is a better location for the pad site. Fort said there wasn’t.
“We’ve had a lot of people suggest that we go find another site,” Fort said. “And if we were able to do that, and this board saw fit to consider it, I’d like to ask those people who suggested it to come support that site. You wouldn’t.”
After the meeting, Keystone president Tom Blanton said his team will spend the next few days regrouping, adding that it’s unfortunate that Keystone can’t appeal the decision with any town board or council.
“They heard all the evidence,” Blanton said. “This was our best possible method of extracting the minerals. Now we have to either quit or go to court, and I don’t like either option.”
Board denies variances near Lakeside
Also at the meeting, the board unanimously denied Titan Operating, LLC’s requests for variances to drill the Powell 1H well on about 24 acres east of Long Prairie Road, south of Spinks Road and north of Lakeside Parkway.
Titan was seeking variances on the distance from a property line to a well bore, which ranged in distance from 105 feet to 447 feet, and a property line to a storage tanks, which ranged from 106 feet to 210 feet. The town’s requirement for all of those setbacks is also 500 feet, with the ability for the applicant to request variances down to zero feet.
The setback requirements from the well to the two schools in the area -- Bluebonnet Elementary School and Shadow Ridge Middle School -- were met. Still, residents said the proposed drilling activity was too close.
“The proposed well may be barely more than 1,000 feet away from the Bluebonnet school building, but the setbacks to the middle school’s athletics field is significantly less,” said Virginia Simonson. “This proximity is unreasonable as it will impact school children on a daily basis.
“During fracking (hydraulic fracturing) operations, school children will be subjected to increased noise, increased traffic and fumes. Even after the fracking operations end, children would still be subjected to emissions of volatile organic compounds like benzene, xylene and toluene that are routinely associated with gas drilling operations in the Barnett Shale.”
Other residents questioned the close proximity of drilling operations near an electrical substation (105 feet) owned by Oncor.
Lindelow argued Titan’s case, saying that Oncor had signed a waiver to give Titan permission to drill next to the property it owns. She said Oncor’s site cuts into the tract, which makes the tract’s shape an unusual circumstance.
Lindelow went on to say that the only property owners impacted by this proposal are to the east and the west of the pad site and that they had both signed waivers as well.
Lindelow also went through the 12 criteria that the board of appeals is supposed to go by when making a decision on variances.
Among her points was that this property owner should enjoy the same rights as others in the area, namely Ron Hilliard, whose property just to the north is undergoing drilling operations.
She also said that it doesn’t have a negative impact on the master plan since it doesn’t address gas drilling. Lindelow said there is no proof that drilling would impact growth and development in the area. And she said that the tract of land is not in a residential area.
“This site has the least impact on the general public and everyone involved,” Lindelow said.
Lindelow said this was the best site chosen that would allow Titan to access its minerals without having to request a variety of other setbacks.
“The site has been selected that complies with every requirement of the town with one exception and that is of the property line setback variance to the east and to the west only,” Lindelow said. “Because Titan can only access its minerals from this 24-acre Powell tract, Titan can only extract its minerals if the variances are granted. If the board fails to grant the variances, Titan will be deprived all economic viable use of its mineral estate, which will result in a taking, requiring payment of compensation.”
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