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File #: ID 15-1235    Version: 1 Name:
Type: Work Session Report
File created: 11/18/2015 In control: City Council
On agenda: 12/1/2015 Final action:
Title: Receive a report, hold a discussion, and give staff direction regarding a proposed ordinance of the City of Denton, Texas, setting Planning and Development Fees as it concerns gas well drilling and production in the City of Denton and its extraterritorial jurisdiction.
Sponsors: City Council
Attachments: 1. Exhibit 1 Fee Schedule Ordinance No. 2013-248, 2. Exhibit 3 Findings from Gas Well Fee Analysis, 3. Exhibit 4 Gas Well Fees - Presentation
Date Ver.Action ByActionResultAction DetailsVideo
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Agenda Information Sheet

DEPARTMENT: Development Services

CM/ ACM: Jon Fortune

Date: December 1, 2015

SUBJECT
Title
Receive a report, hold a discussion, and give staff direction regarding a proposed ordinance of the City of Denton, Texas, setting Planning and Development Fees as it concerns gas well drilling and production in the City of Denton and its extraterritorial jurisdiction.
Body

BACKGROUND
On August 4, 2015, the City adopted comprehensive changes to the Gas Well Drilling and Production Ordinance, under Ordinance No. 2015-233, in order to comply with HB 40 (Texas Natural Resources Code, Sec. 81.0523) enacted by the Texas Legislature on May 18, 2015. Ordinance No. 2015-233 went into effect on August 18, 2015 after the required two-week publication period. On August 18, 2015, a corresponding fee schedule modification was proposed. During deliberations for the August 18, 2015, City Council meeting, further discussions were requested on the revised Development Review Fee Schedule once a third-party consultant completed a detailed review of the fees.

After the August 18 discussion, NewGen Strategies & Solutions, LLC began an update to the 2013 Gas Well Fee Study (2013 Study) to incorporate the changes in City employee activities resulting from the passage of Ordinance No. 2015-233. A summary memo and the findings of the update to the 2013 Study are included in the Exhibits to this report.

In addition to the findings from the Study, City staff proposes an incentive to gas well operators that apply for a new Gas Well Development Site Plan within a short period of time. The proposal is to reduce the currently studied fee amounts by 50 percent for 90 days. Based on discussions with Operators conducted during the process to revise Ordinance No. 2015-233, City staff learned most Operators are more likely to apply for a new Gas Well Development Site Plan with this financial incentive and the City would benefit by enabling new Gas Well De...

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