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HomeMy WebLinkAbout10-09-14-03 - Resolution - 10/09/2014A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS GRANTING AN OIL AND GAS HIGH IMPACT PERMIT FOR THE BISTONTE UNIT, WELL NO. 3H NEAR CAIN ROAD, APPROXIMATELY 1400 FEET NORTH-NORTHEAST OF THE INTERSECTION OF HOLLEMAN DRIVE SOUTH AND CAIN ROAD, AND LOCATED WITHIN THE CITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of College Station, Texas, has reviewed an application for an Oil & Gas Rural Permit ("Permit") submitted by Halcon Operating Co., Inc. for the Bistonte Unit, Well No. 3H; and WHEREAS, Council has reviewed the Project Review Committee report and other related information relating to the afore -described proposed High Impact oil & gas well located near Cain Road, approximately 1400 Feet north-northeast of the intersection of Holleman Drive South and Cain Road, within the City of College Station (the "City"); and WHEREAS, pursuant to Chapter 4, Section 13J Council is required to make certain findings and determinations in granting a permit for oil and gas operations located within the City; and WHEREAS, the City Council of the City of College Station, Texas, now desires to make such determinations and to grant such permit; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: That the City Council hereby acknowledges receipt of an application, Project Review Committee report and other related information relating to an Oil and Gas Rural Permit to Halcon Operating Co., Inc. for the Bistonte Unit, Well No. 3H located near Cain Road, approximately 1400 Feet north-northeast of the intersection of Holleman Drive South and Cain Road. A copy of such paperwork and the exact location of said proposed well are attached hereto as exhibits "A" and "B", respectively. PART 1 That the City Council hereby makes the following determinations with respect to said proposed Permit: 1. That the following amount and type of security instrument has been issued: a bond in the amount of two -hundred and fifty thousand dollars and no cents ($250,000) and as attached hereto as exhibit 11C." 2. That the operations proposed under the Permit are reasonable under the circumstances and conditions prevailing in the area; 3. That the operations proposed under the Permit are consistent with the health, safety, and welfare of the public when and if conducted in accordance with the permit conditions to be imposed; and 4. That the impact upon adjacent property and the general public of operations conducted in compliance with the Permit conditions are reasonable and justified, balancing the following factors: RESOLUTION NO. I-0G-_�_4-Q'� Page 2 (1) The right of the owner(s) of the mineral estate to explore, develop, and produce the minerals. (2) The availability of alternate drill sites, both presently and at other times during the lease term. (3) The date of acquisition by the various owners of the surface and mineral estates. PART 3: That based upon the above the City Council hereby grants said Permit and authorizes the City Manager or his designee to take any and all reasonable action to issue same. PART 4: That this resolution shall `�LJet�akkepe�f�fe�ct immediately from and after its passage. ADOPTED this —1+' day ofO,TLI, , A.D. 2014. APPROVED: MAYOR ATTEST;. N. "�u J City Secre �s e ... elmM City Attorney Application Permit �► ,w K M, � .,I i I 11711111ii-, BISONTE BRAZOS COUNTY, TEXAS 1, APPLICANT'S NAME AND ADDRESS: Jamie A. Robinson, Sr, Regulatory Analyst Halcon Operating Co., Inc. 1000 Louisiana, Suite 6700 Houston, Texas 77002 713-652-4811 20 NAME AND ADDRESS OF DRILLING COMPANY: Trinidad Drilling LP Southern Division Main Office 20105 Ifrahn Road Spring, Texas 77388 3. NAME AND ADDRESS OF OPERATOR: Halcon Operating Co., Inc, 111 11 Houston, 0 S. PROPOSED DEPTH OF WELL; Halcon Operating Co., Inc, Intends to drill the 131sonte #311 to an approximate depth of 9,000'± (true vertical depth) and 20,000`± (measured depth) with the lateral in the Eagleford formation. . LOCATION AND DESCRIPTIONOF ALL IMPROVEMENTS ASTRUCTURES I I THOUSAND (3.000) FEET OF THE WELL: Please refer to attached Exhibit A 7. SITE PLAN OF PROPOSED OPERATION, SHOWING LOCATION OF ALL IMPROVEMENTS AND EQUIPMENT.' Please refer to attached Exhibit B 8. AREA ., SHOWINGPROPOSED 1,r WASTE PRODUCTS USED OR PRODUCED BY THE OIL OR GASOPERATION AND ALL NATURAL FEATURES DESCRIPTION , KIND, SIZE AND AMOUNT OF MAJOR EQUIPMENT USED BEFORE COMPLETION D REWORKING: Please refer to attached Exhibit D u DESCRIPTION O • DRILLING ANDCOMPLETION: Please refer to attached Exhibit A 11. WELL SURFACE CASING •, CEMENTING PROGRAM: Please refer to attached Exhibit E 12. COPIES OF RAILROAD C• •N FORMS AND DRILLING Please refer to attached Exhibit COUNCIL13. SECURITY INSTRUMENT CONSISTING OF AN IRREVOCABLE LETTER OR CREDIT, INDEMNITY BOND OR CERTIFICATE OF DEPOSIT, AS REQUIRED BY THE ORDINANCE AND IN THE AMOUNT DETERMINED BY THE CITY i DAYS AFTER COUNCILAPPROVAL: Please refer to Bond No. SUR002a701 in the amount of two hundred fifty thousand dollars ($250,000) Fr NAME OF REPRESENTATIVE SUPERVISORY AUTHORITYOVER OR GAS OPERATION SITE ACTIVITIES 1 PHONE NUMBER WHERE HE/SHE CAN BE REACHED TWENTY-FOUR• ► Adam Yanez: 936-245-3939 Bill Walker: 0 15. LEGAL DESCRIPTION OF THE PROPERTY TO BE USED FOR THE OIL OR GAS OPERATION, THE PARCEL ANI; THE PRODUCTION UNIT (PLAT DESCRIPTION OR METES AND BOUND BEARINGS) AND NAME OF THE GEOLOGIC FORMATION AS USED BYTHE RAILROAD COMMISSION OF TEXAS. PROPERTY RECORDED BY PLAT SHOULD REFERENCE SUBDIVISION, BLOCK AND LOT NUMBERS' 16. MINERAL LESSEE NAME ANDADDRESS: Please refer to attached Exhibit 17. SURFACE OWNER NAME AND 1 • CollegeAnn Fleming Hays 11862 Old Wellborn Road a 84 18. NAME AND ADDRESS OF INDIVIDUAL REPRESENTING THE OWNER/APPLICANT DESIGNATED TO RECEIVE NOTICE: Jamie A. Robinson, Sr. Regulatory Analyst 1000 Louisiana, Suite 6700 Houston, Texas 77002 1 EVIDENCE OF INSURANCEINFORMATIONREQUIRED"i O (A) COMMERCIAL GENERAL LIABILITY $1,000 ,000 (B) AUTOMOBILE LIABILITY $1,000,000 (C) WORKERS' COMPENSATION 1/f of Please refer to attached ExWibit 20. SURVEY OF PRODUCTION UNIT AT A SCALE OF I PER 200 OR GREATER BY A TEXAS CERTIFIED SURVEYOR (A) Lengths r bearings of all boundaryfor production (B) Exact acreage of production (C) Exact location of i production with distances of of r adjacent boundary lines of production f Length of diagonal production Please refer to attached Exhibit 111,1 I1f � PROPOSED f i' Please refer to attached Exhibit Please refer to t w 23. STATEMENT UNDER OATH SIGNED BY APPLICANTINFORMATION SUBMITTED APPLICATION` "I, Jamie A. Robinson, Sr. Regulatory Analyst of Halcon Operating Co., Inc., do hereby affirm that the information submitted in and attached to the Application for Permit to Conduct Operations for the Discovery and Production of Oil, Gas and Associated Hydrocarbons within the City of College Station, Texas for the Bisonte 31-1 is true and cof i octl:' June 24, 2014 Jamie A. Robinson, Sr. Regulatory Analyst STATE OF TEXAS Sworn to r subscribed before me this 24'h d. Robinson, who is personally known to me. Given under my hand and seal this day and �,r last written above S. KAYE WOODYARD ' MY COMMISSION EXPIRES _.. _...,,.. , October 2016 Notary I J rlyr,rd S. Kaye W �uc in and for the State of Texas ZME �n fJ nr mph . a ml' rl BOND (License or Permit - Continuous) 0 i . 1 0 00=r -T -10n. MM 11111 11111��11 a ril 6 z 1111fift,111 VIVOWIM191 1 Ito V 1Q.-I—ZA WHEREAS, the Principal has obtained or is about to obtain a license or permit for Drilling Operatina Permit for 131sonte NOW, THEREFORE, THE CONDITIONS OF THIS OBLIGATION ARE SUCH, that if the Principa. shall faithfully perform all duties and protect said Obligee from any damage caused by the Principal's non-compliance with or breach of any laws, statutes, ordinances, rules or regulations, pertaining 4 the license or permit issued, then this obligation shall be null and void; otherwise to remain in full force and effect. This bond shall become effective on the 4th day of June, 2014, PROVIDED, that regardless of the number of years this bond is in force, the Surety shall not be liable hereunder for a larger amount, in the aggregate, than the penal sum listed above. PROVIDED FURTHER, that the Surety may terminate its liability hereunder as to future acts of the Principal at any time by giving thirty (30) days written notice of such termination to the Obligee. SIGNED, SEALED AND DATED this 4th day of June, 2014. Halcon q Principal By: 011-1117,N)l