Chapter 62. Natural Resources

As used in this article, the following words and terms shall have the meanings ascribed to them in this section, unless the context of their usage clearly indicates another meaning:

Chief shall mean the fire chief of the city.

City's jurisdiction shall mean and include the territory within the city's limits and territory within 5,000 feet outside of the city's limits.

Fire code shall mean the fire code adopted in section 38-61 of this Code as amended in section 38-62 of this Code.

Seismic testing means an exploration method in which low frequency sound waves are generated on the surface to find subsurface rock structures that may contain hydrocarbons.

(Ord. No. 12,526, § 1, 4-10-14)

(a) Required. It shall be unlawful for any person, acting either for himself or as agent, employee, independent contractor or servant of any other person, to conduct seismic testing or surveys or other geophysical operations within the city's jurisdiction without a geophysical/seismic testing permit having first been issued in accordance with this article.

(b) Application. Applications for a geophysical/seismic testing permit must be made to the city clerk by the person desiring to conduct the geophysical/seismic testing within the city's jurisdiction at least 45 business days prior to the commencement of any seismic testing activities. Applications must be verified under oath on forms supplied by the city clerk and shall include or be accompanied by the following information:

(1) The date of the application;

(2) The name and address of the applicant; if the applicant is a corporation, the state of incorporation; and if the applicant is a partnership, the names and addresses of the general partners, e-mail addresses for contacts, including emergency contacts, and a 24-hour emergency phone number;

(3) A nonrefundable application fee of $1,000.00;

(4) The location of seismic survey;

(5) A detailed map showing the locations of all vibration and geophone points;

(6) A detailed explanation of the seismic survey method to be used on site;

(7) The date and time the seismic survey will be conducted;

(8) The date and time the seismic survey will be completed;

(9) Identification on a map and by address of all staging areas;

(10) Applicant's safety procedures;

(11) A traffic flow plan for the proposed testing operations;

(12) Evidence or documentation that the activity will comply with and adhere to the requirements of all applicable city ordinances, regulations, and rules; and

(13) An insurance certificate meeting the requirements of section 62-4.

(c) Issuance; denial. If, after such application is filed pursuant to this division, the chief determines that:

(1) The application complies in all respects with terms of this article; and

(2) The proposed operations.

a. Will not create a public nuisance;

b. Will not be contrary to the public safety;

c. Comply in all respects with this article; and

d. Are acceptable after considering the following factors:

1. The location of the point relative to surrounding improvements, pipelines, wells;

2. The quantity and nature of the proposed seismic survey to be used in implementing the exploration; and

3. The pendency of other activities at and adjacent to the point of exploration.

The city clerk shall contact the applicant to advise the applicant of the status of his application and require the applicant to tender the bond required in section 62-3 and the permit fee required in section 62-3 to the city clerk. Once the bond is received, the city clerk shall issue a permit. If the chief denies an application for a permit pursuant to this section, an appeal to the city council may be made by such applicant by filing written notice of appeal within ten days of the denial with the city clerk.

(d) Conditions. Each permit issued under this section shall:

(1) By reference have incorporated therein all sections of this article with the same force and effect as if this article were copied verbatim in the permit;

(2) Specify that seismic testing shall be completed within 90 days from the date of the issuance of the permit or the permit shall be forfeited; provided however, such forfeiture shall not affect the right of the applicant to apply for another permit; and

(3) Not be transferable.

(e) Revocation. The chief shall have the authority to revoke a permit for any one or more of the following reasons:

(1) Violation of any of any laws of a federal, state or local government;

(2) Violation of any provision of this article;

(3) Failure to meet the requirements set forth in its application or any deviation from the information submitted in the application; and

(4) Failure to comply with the road repair agreement.

Revocation shall take immediate effect upon notice to permittee by the chief, subject to reinstatement if the permittee files written notice with the city clerk of permittee's desire to appeal the permit revocation within ten days of the date the permit is revoked. Such notice must detail the reasons for the appeal.

(f) Display. A permit issued pursuant to this section shall be displayed at all times in such a manner that it is conspicuous from a public way.

(Ord. No. 12,526, § 1, 4-10-14)

(a) Bond. Before a permit is issued under this article, the applicant shall be required to a tender a $100,000.00 cash bond to the city, the purpose of which is to protect the city from any damages to traffic signs/markers, roads, bridges, drainage facilities, and rights-of-way owned by the city caused by permittee's operations. In the event the city, at its sole and exclusive option, determines that any repairs to the roads, bridges, drainage facilities, and rights-of-way are required as a result of applicant's operations, the city shall make such repairs and deduct the cost thereof from the cash bond amount without further notice to permittee. The city shall provide permittee a monthly accounting of all repairs and deductions made to the cash bond, which accounting shall be made only if a deduction has been made for which no prior accounting has been tendered. Upon expiration of one year from the effective date of the permit, the city shall refund any balance of the cash bond to permittee, upon written application for same. Should the costs to repair or replace damaged property exceed the amount of the cash bond, permittee shall reimburse the city for such costs within 30 days of the receipt of invoice. Costs not timely paid shall accrue interest at the rate of one percent per month.

(b) Permit fee. The nonrefundable permit fee is $100.00 per linear mile or portion thereof of seismic testing, which fee must be paid prior to the issuance of a permit.

(Ord. No. 12,526, § 1, 4-10-14)

(a) Insurance. Under this article, a permittee must furnish with his application and maintain at all times during the life of the permit, commercial general liability insurance for bodily injury and property damage, including explosion, collapse and underground hazard, coverage in the minimum combined single limit of $2,000,000.00 aggregate and $1,000,000.00 per occurrence as it pertains to its operations in the city's jurisdiction. Such policy shall name the city, its officers, agents and employees as additional insureds and shall be with an insurance carrier licensed and admitted to do business in the state and having an acceptable insurance rating approved by the chief. The certificate of insurance shall provide that at least 30 days' prior written notice for the termination or modification of the required insurance shall be given to the city.

(b) Indemnification. Any permit issued under this article shall not be effective unless it contains the following:

Permittee agrees to and shall indemnify, hold harmless and defend, the city, its officers, agents and employees, collectively referred to as "city," from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attorneys' fees for injury to or death of any person, or for damage to any property, arising out of or in connection with the geophysical/seismic testing operations permitted herein, where such injuries, deaths or damages are caused by the concurrent negligence of the city and permittee and/or by the joint or sole negligence of the permittee. It is the expressed intention of the parties hereto, both permittee and the city, that the indemnity provided for in this paragraph is an indemnity by permittee to indemnify, protect and defend the city from the consequences of the city's own negligence, where that negligence and permittee's negligence are concurring causes of the injury, death or damage; and/or the permittee's joint and sole negligence. Furthermore, the indemnity provided for in this paragraph shall have no application to any claim, loss, damage, cause of action, suit and liability where the injury, death or damage results from the sole negligence of the city unmixed with the fault of any other person or entity.

In the event that any action or proceeding is brought against the city by reason of any of the above, permittee further agrees and covenants to defend the action or proceeding by legal counsel acceptable to the city. This indemnity shall survive the revocation or expiration of the permit.

(Ord. No. 12,526, § 1, 4-10-14)

(a) Location. All geophysical operations shall be limited to the areas depicted on the map included in the application. If, during the course of operations, any geophysical line or lines must be relocated to maintain compliance with the terms and conditions set forth in this article or in the permit or to ensure the safety of the general population, permittee shall notify the chief within 24 hours of such relocation.

(b) Claims. Permittee shall be responsible for and shall settle all reasonable and legitimate claims, demands, and causes of action relating to property or persons arising out of, or as a result of, permittee's operations and shall handle all such claims in an expedient manner.

(c) Supervision. Permittee shall employ one or more permit supervisors, to be approved by the city, who will be on the job during the entire period to mitigate any potential damage to public or private property.

(d) Permission. Permittee shall obtain written permission from property owners before entering or crossing their property.

(e) Notification.

(1) Written notification. Permittee shall notify each owner, resident and/or business located within 1,000 feet of its planned operations 24 to 48 hours prior to performing the actual work. Permittee shall also provide to such owner, resident, and/or business, in writing, the name of permittee's insurance carrier, the types and amount of insurance covering its proposed operations, the name and telephone number of an individual to contact in case of a claim for personal injury or property damage, and the procedure for obtaining a copy of permittee's insurance certificate.

(2) Published notification. At least 15 days prior to performing the actual work, permittee shall place newspaper advertisements in both the official newspaper of the city and a second daily newspaper in general circulation in the county of not less than three inches by four inches (3″ × 4″) explaining the work to be performed, the location of the work, and a toll-free telephone number where residents may call for more information.

(3) Utility notification. Whenever operations are to be conducted in the vicinity of gas, electric, water, fire alarm, telephone, telegraph or stream utilities, the permittee shall notify the appropriate representatives of such utilities at least 24 hours in advance of commencement of operations specifying the location and intended time of such activity.

(4) Sign notification. Within 24 hours of permit issuance, permittee shall place signs on the property giving the public notice of the activities, including the name, address and 24-hour phone number of the person conducting the activities. The sign must be located within ten feet of the property line bordering a public highway, street, or road and must be constructed of durable material, maintained in good condition and have a surface area of not less than two square feet or more than four square feet. Lettering must not be less than three inches in height and block print, in a solid color that contrasts with the background. No permanent markings shall be made on trees, roads or any property not belonging to the operators, nor shall any signs be attached to tree in any fashion.

(5) Schedule of operations. Seventy-two hours prior to beginning of any week during which seismic testing activity will occur, permittee shall furnish to the chief a schedule of that week's operations plans along with proof that all of the required notices specified hereinabove have been given.

(f) Protection.

(1) Limits. Permittee shall engineer all source locations (vibroseis drive levels) so that no structure, water well, or underground toxic waste storage/disposal site shall be subject to any peak particle velocity greater than 0.5 inches per second.

(2) Monitoring. Using industry standard equipment and techniques, permittee shall monitor during operations all pertinent locations to ensure that no structure, water well, or underground toxic waste storage/disposal site is subject to a peak particle velocity greater than 0.5 inches per second. Permittee shall maintain all documentation of monitoring activities for a period of at least three years and make said documentation available upon request for inspection by the city.

(3) Distances. Permittee shall obtain water well, underground toxic waste storage/disposal sites, and water, sewer, oil, gas, and chemical pipeline location maps and conduct all engineering calculations necessary to confirm that all operations meet standards established by the governing engineering codes and criteria. This information shall be used by the surveying teams and operations manager to ensure compliance with the terms and conditions of the permit and that safe operating distances are maintained.

(g) Hours of operation. Within the city's jurisdiction, testing may be conducted from 7:00 a.m. until 5:30 p.m. (or until dark, whichever first occurs), local time, on Monday through Friday, from 8:00 a.m. until 5:30 p.m. (or until dark, whichever first occurs), local time, on Saturday, and from noon until 5:30 p.m. (or until dark, whichever first occurs), local time, on Sunday. Seismic survey and testing work is not allowed on city holidays. These hours may be further restricted by the city to accommodate special events.

(h) Restoration. Permittee must remove any mud or debris associated with its operations from the city's rights-of-way daily. Additionally, permittee shall restore any lands or rights-of-way used in its operations to original condition, free of damage, including ruts or any injury to vegetation. Any costs incurred by the city for restoration may be deducted from the cash bond required in section 62-3 or reimbursed to the city at full costs by permittee. If reimbursement is required, such costs will be paid within 30 days of receipt of invoice. Costs not timely paid shall accrue interest at the rate of one percent per month.

(i) Noninterference. Permittee shall ensure that its operations will not interfere with the free and safe flow of traffic. The applicant will prepare for approval by the chief of police, a traffic flow plan for the project. When operations are immediately adjacent to the pavement, all equipment shall be parked and/or operated on one side of the roadway only, unless demonstrated in the traffic flow plan that another method would be safer.

(j) Maximum load. Permittee shall notify the city of any equipment to be operated on city streets that will exceed the maximum load limit of 48,000 pounds and obtain special required permitting.

(k) Public safety.

(1) Cables. Cables placed on the pavement within rights-of-way must be arranged so they do not create a hazardous condition or rumble strip effect. All cables must be securely anchored to the roadway with materials that will not damage and/or puncture the pavement. Nails, spikes, and similar materials used for anchors shall not be placed inside the pavement edge. Other than seismic recording hardware and cables, permittee may not store equipment in city rights-of way during nonworking hours.

(2) Delay of operations. Operations under any permit issued under this article shall be barred when the city's director of public works determines that the ground conditions are such that operations would cause extensive rutting in the rights-of-way or easements. In addition, operations will be barred when ground conditions would, in the reasonable opinion of the director of public works, cause the tracking of mud, gravel, rock, or debris onto the roadway surface of any right-of-way or other city improvements. In the event that mud, gravel, rock, or debris is inadvertently tracked onto roadways in a way that creates a safety hazard or a potential for damage to vehicles, the operator shall immediately cease operations and clean the roadway of all mud, gravel, rock, or debris. The time for completion of operations, as specified in subsection 62-2(d), shall be extended by one day for each full day operations are barred under the provisions of this subsection.

(3) Traffic. Each work crew shall be accompanied by a police officer while operating on city streets and rights-of-way or otherwise impeding the flow of traffic (e.g., blocked lanes). Permittee shall reimburse the city the city's cost of such employee, including salary and benefits, and equipment for a minimum of four hours. Permittee shall pay such reimbursement within 30 days of receipt of invoice. Such reimbursement, if not timely paid shall accrue interest at the rate of one percent per month.

(4) Signs and barricades. Permittee shall furnish adequate signs, barricades, flares, flagmen, and other traffic control measures in conformance with the latest version of the state's manual on uniform traffic control devices, as necessary to protect the traveling public.

(5) Pathways. At all times, permittee must maintain Americans with Disabilities Act (ADA) compliant pathways and must resolve potential trip hazards from seismic hardware, lines/cables and equipment.

(l) Vibroseis operations.

(1) Inspections. Prior to performing the actual work, permittee shall offer, in writing to each owner, resident and/or business within 250 feet of any vibroseis operation, and shall provide, if requested, pre- and post-damage inspections for all structures, driveways and infrastructure including flow test and lab test for water wells. Permittee shall maintain records of such inspections for a period of three years and shall make such records available, in whole or in part, upon request by the city.

(2) Minimum requirements. All vibroseis operations shall be conducted a minimum distance of 35 feet from any structure, water well, or underground toxic waste storage/disposal site with a force drive and sweep frequency producing no more than a 0.5 inches per second peak particle velocity.

(3) Vibroseis log. Permittee shall maintain, for a period of three years, and make available upon request to the city, the daily log of vibroseis tests showing date, location, drive level, operator, and any other pertinent information related to the vibroseis tests.

(m) Dynoseis operations. Dynoseis operations are prohibited in the city's jurisdiction.

(Ord. No. 12,526, § 1, 4-10-14)

When an applicant shows that a provision of the regulations in this article would cause unnecessary hardship if strictly adhered to, and when, in the opinion of the city council, a departure may be made without destroying the spirit of the regulations, the city council may, at its sole discretion, grant a variance, which shall only apply to the variance and shall not be construed to be a waiver or change of any provision of this chapter. There shall be no variance to the prohibition of dynoseis operations in the city's jurisdiction.

(Ord. No. 12,526, § 1, 4-10-14)

Any person violating any provision of this article or providing false information to the chief shall upon conviction be punished by a fine as provided in section 1-14.

(Ord. No. 12,526, § 1, 4-10-14)

(a) The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Bottom-hole location means the point in the subsurface of the earth where a well is perforated for production of oil or gas from the surrounding subsurface strata.

Director means the director of planning and development services.

Drilling block means an area that contains 16 oil drilling units.

Drilling, oil or gas operations shall mean the drilling, completion or re-working of any type of oil, gas, disposal, exploratory or injection well or pipeline and subsequent life of a well or pipeline or any associated appurtenances or operations, including changes to existing operations and all related equipment and structures, including associated non-residential temporary office structures.

Drilling site means the surface premises used for drilling, oil or gas operations.

Drilling unit for gas means an area within the corporate limits that contains a minimum of 640 acres and shall be 5,280 feet square.

Drilling unit for oil means an area within the corporate limits that contains a minimum of 40 acres and shall be 1,320 feet square.

Extraterritorial jurisdiction means that land within three and one-half miles of the corporate limits of the city or as otherwise established by state law.

Fire chief means the chief of the fire department.

Gas means natural gas, including all of its constituent elements, which elements include but not by way of limitation, gasoline, condensate, distillate, butanes, propanes and other hydrocarbons.

Gas well means a well producing gas, as defined in this section, and which produces no oil, as defined in this section, or less than one barrel of oil to each 100,000 cubic feet of gas.

Oil means any liquid hydrocarbon, regardless of gravity, capable of being produced from a drilling unit in liquid form at the well by ordinary production methods and that is not the result of the condensation of gas after it leaves the reservoir.

Oil well means any well that produces one barrel or more of oil, as defined in this section, to each 100,000 cubic feet of gas, as defined in this section.

Permittee means the person to whom is issued a permit for the drilling and operation of a well under this article and his administrators, executors, heirs, successors and assigns.

Regulated area or regulated area of the city means and includes, subject to the exceptions contained in this article, all lands within the corporate limits and lands within the extraterritorial jurisdiction to the extent governed by subsection 62-28(c).

Surface location means the point where a well penetrates the surface of the earth.

Well means any hole or bore to any sand, formation, strata or depth, which is drilled, bored, sunk, dug or put down for the purpose of either exploring for or ascertaining the existence of any oil, gas or liquid hydrocarbon or for the purpose of producing and recovering any oil, gas or liquid hydrocarbon.

Well servicing means the installation or servicing of artificial lift equipment and the removal of tubing obstructions such as paraffin and sand.

Workover means working over a well, which shall be considered to be the act of reentering a well for any purpose after it is initially completed or abandoned, other than for well servicing.

(b) All technical or oil and gas industry words and phrases used in this article and not specifically defined in this section shall have the meaning customarily attributable thereto by prudent operators in the oil and gas industry.

(Ord. No. 671, § 2, 2-14-63; Code 1967, § 20-2; Ord. No. 11,434, § 1, 9-9-10; Ord. No. 12,474, § 2, 2-13-14)

The city council finds that there has been and there is a likelihood of additional drilling and production operations for oil and gas within the corporate limits requiring that operations for the drilling and production of oil and gas within such area be regulated because of the fire hazards created by such operations, as well as the menace of falling derricks, unsanitary conditions, contaminated water supply and all similar and like threats to the lives, property, health, safety and welfare of the public in general, for which the police power of the state delegated to this city is to be and is invoked in aid of the enforcement of this article.

(Ord. No. 671, § 1, 2-14-63; Code 1967, § 20-1)

(a) Anything contained in this article to the contrary notwithstanding, none of the sections of this article, except section 62-137, shall ever be construed as applying to the operation of any producing oil or gas well located within the corporate limits that was drilled and completed prior to January 1, 1950, or to the equipment and its operation, producing or otherwise, installed in connection with such well on the leased premises.

(b) Without limitations on subsection (a) of this section, nothing contained in this article shall be interpreted to require a permit for any producing oil or gas well located within the corporate limits that was drilled and completed prior to January 1, 1950, or for the continued operation, reworking, sidetracking, plugging back or abandonment or deepening through the deepest productive reservoir to which any such well was previously drilled.

(c) If the surface location of the well is within the extraterritorial jurisdiction of the city, but any portion of the well bore is located within the corporate limits, all of the sections of this article shall apply to all surface location operations of such well.

(Ord. No. 671, § 17, 2-14-63; Code 1967, § 20-3; Ord. No. 11,434, § 2, 9-9-10)

It shall be unlawful for any person, acting either for himself or as agent, employee, independent contractor or servant of any other person, to commence to drill, to drill or to operate any oil or gas well within the regulated area of the city or to work upon or assist in any way in the drilling, oil or gas operations without a permit for such activity having first been issued in accordance with this article and other applicable provisions of the Code.

(Ord. No. 671, § 12, 2-14-63; Code 1967, § 20-36; Ord. No. 12,474, § 3, 2-13-14)

Any person desiring to conduct drilling, oil or gas operations within the corporate limits may perform any well workover operations except drilling deeper, without a prior permit, provided the operator complies with all rules set forth in this article, and no additional filing fees will be required for such work. No well workover shall be started or performed without first informing the fire chief and complying with all provisions of the Code and all applicable state and local laws, rules and regulations, including obtaining a zoning amendment or special use permit where required. It will not be necessary to inform the fire chief when well servicing or swabbing operations are to be performed.

(Ord. No. 671, § 14, 2-14-63; Code 1967, § 20-49; Ord. No. 12,474, § 4, 2-13-14)

(a) Once any well has either been completed as an oil or gas producer or abandoned as a dry hole, it shall be unlawful and an offense for any person to drill such well to a greater depth than that reached in the prior drilling operations without the permittee complying with all provisions of the Code, including obtaining a zoning amendment or special use permit where required, and obtaining a supplemental permit after filing a supplemental application with the director specifying the following:

(1) The condition of the well and the casing therein;

(2) The depth to which it is proposed such well be deepened; and

(3) The proposed casing program to be used in connection with the proposed deepening operation.

(b) In any deeper drilling, any deeper completion, or any deeper production operations, the permittee shall comply with all other sections contained in this article and the Code and applicable to the drilling, oil or gas operations of a well, but no additional filing fee shall be required.

(Ord. No. 671, § 13, 2-14-63; Code 1967, § 20-37; Ord. No. 12,474, § 5, 2-13-14)

Any person desiring to drill, complete and operate a well for oil or gas exploration or production within the regulated area of the city shall present an application in duplicate to the director, which application shall be in writing on a form provided by the city, shall be signed by the applicant or some person duly authorized to sign the application for the applicant, and shall state the following:

(1) The date of the application;

(2) The name and address of the applicant; if the applicant is a corporation, the state of incorporation; and if the applicant is a partnership, the names and addresses of the general partners;

(3) Two 24-hour emergency contacts, who:

a. Can initiate appropriate actions to respond to any emergency associated with the drilling, oil or gas operations, including emergencies on the site, with any associated pipelines, or with transit of materials related to the development;

b. Have access to information on the location of the closest shutoff valve to any specific point in the city or within its jurisdiction; and

c. Can furnish the common name of the material then being carried by the pipeline, as well as any other materials that may be involved in the emergency.

(4) A statement confirming the right of the applicant to perform drilling, oil or gas operations on the property subject to the application;

(5) The number of the drilling unit(s), the property description, the particular lot and block number or tract in the drilling unit on which the surface location and proposed bottom-hole location of the proposed well are to be located and the exact location of the proposed well by Lambert Coordinates;

(6) The type of the proposed well, whether oil or gas, and the proposed depth of the well;

(7) The proposed complete casing program of the well;

(8) The boundaries of the applicant's leased area relating to the proposed well;

(9) If not otherwise exempt pursuant to subsection 62-96(b), the exact and correct number of square feet in the drilling unit of the proposed bottom-hole location over which the applicant has control of oil rights or gas rights, to the end that the application will show what proportion and what parts of such drilling unit the applicant owns in fee or holds under lease or drilling contract from the owners, and the applicant shall be required to own in fee or hold under lease or drilling contract from the owners more than 20 acres of the acreage within a drilling unit before a permit may be issued; provided, however, for a gas well, at least this required acreage shall be located within whichever 40-acre oil drilling unit, out of the gas drilling unit, on which the well is to be drilled;

(10) A notarized copy of a signed waiver of the setback requirements contained in section 62-62 evidencing that the surface owner agrees to a lesser setback if applicable; and

(11) The following shall be attached to the application for the permit:

a. A plat prepared by a state licensed registered professional land surveyor showing the exact surface location and proposed bottom-hole location of the proposed well with respect to the drilling unit boundaries, drilling site, and the boundaries of the lot or block on which the applicant has secured the rights from the owner to drill; the designation of lots, blocks or tracts owned or controlled by the applicant within the drilling unit; the distance from the well location to all residence, place of public assembly, hospital building, school, public park, public recreational space, or public or private water well situated within 750 feet of the well's surface location; and the distance from the well location to a private recreational space situated within 50 feet of the well's surface location;

b. A copy of all documents submitted to and issued by state regulatory agencies;

c. Hazardous materials management plan and emergency response plan, approved by the city's emergency management coordinator and fire chief, containing the following information:

1. A plan prepared by an emergency management professional practicing in Texas, detailing how hazardous materials will be handled to prevent reasonably anticipated spills or other emergency situations, and

2. An emergency response plan detailing how each type of emergency situation would be handled. This plan shall include a signed contract from an approved hazardous materials cleanup service company, affirming operator has contracted them to perform cleanup services in the event of a hazardous materials spill, leak, seepage or accident. A copy of the signed contract specifying specific actions shall be attached. The contract shall remain in full force and effect during all drilling operations, through capping of wells and for 30 days following termination of operations;

d. Risk management plan approved by the city's emergency management coordinator and the fire marshal, containing, at a minimum, the following:

1. A table of contents;

2. A roster of emergency and non-emergency contacts, including 24-hour available management and facility maintenance personnel;

3. A hazard threat analysis to address possible hazards including hurricanes, coastal storm issues, and other natural or man-made hazards;

4. A security plan including materials and operations;

5. A plan detailing construction, installation, anchorage and secondary containment with 110 percent of the capacity for each liquids storage tank using approved, impervious materials;

6. A description of risk management operations applicable to a well, tank or pipeline emergency, including, but not limited to:

a. Direction and control;

b. Notification procedures;

c. Evacuation procedures;

d. Evacuation sheltering locations and procedures;

e. Re-entry/return procedures; and

f. Shelter-in-place procedures;

7. Training schedule as applicable to well or pipeline operations;

8. Contracts for emergency response;

9. List of approved emergency equipment on site, including fire suppression and spill containment, absorption and cleanup supplies and provide licenses of persons, who will operate such equipment;

10. Proof of current required federal, state, and local licenses and permits; and

11. Other specific information related to the life-safety of the facility, staff, and nearby residents as required by the fire chief.

e. Infrastructure maintenance agreement, which will be executed by the city only if a permit is granted pursuant to this section. Such agreement will be on a form provided by the city and shall require the person to whom the permit is issued to repair, at its own expense, any damage to roads, streets or highways, which the city is required to maintain, caused by the use of commercial motor vehicles, as that term is defined in section 94-1 of the Code, for any construction activity associated with drilling, oil or gas operations. The agreement shall include the type of security enumerated in section 126-189 of the Code and be in an amount of 110 percent of the estimated cost of the repairs to the roads, streets or highways as determined by the city engineer, based on the current condition and age of the roads to be used, and the proportional damage likely to occur from applicant's vehicular impact, which shall be estimated based upon a signed and sealed statement by the permittee's engineer of the potential damage. The agreement will require the permittee to provide video documentation of the current state of all roads, streets or highways, which the city is required to maintain, and proposed for travel by equipment or commercial motor vehicles associated with the drilling, oil or gas operations. The security will be returned to applicant after completion of operations, less any amount determined by the city engineer that is required for repairs the applicant has failed to perform; and

f. A copy of the ordinance permitting drilling, oil or gas operations at the site of the proposed well, if required by the Unified Land Development Code.

(Ord. No 671, § 4, 2-14-63; Code 1967, § 20-38; Ord. No. 11,434, § 3, 9-9-10; Ord. No. 12,474, § 6, 2-13-14)

Each application for the permit required under this division shall be accompanied by a cashier's check in the amount of $250.00, made payable to the city, which shall be the filing fee. Each supplemental application shall furnish the information and conform with the requirements set forth in section 62-59, insofar as the requirements are relevant to the authority requested therein, but need not be accompanied by any additional filing fee.

(Ord. No. 671, § 4, 2-14-63; Code 1967, § 20-39; Ord. No. 12,474, § 7, 2-13-14)

(a) Notice of the filing of each application for the permit required under this division shall be given by the applicant to each owner of land within 750 feet of the property or lease lines of the land that is subject to the application, whichever shall give greater notice, and to each owner and mineral lessee of lots, blocks and tracts within the drilling unit of the proposed bottom-hole location described in the application, as such ownership is disclosed by the deed records of the county or other official records as needed to determine ownership. Such notice shall be in words and figures, substantially as follows:

NOTICE IS HEREBY GIVEN THAT _______, ACTING UNDER AND PURSUANT TO THE TERMS AND PROVISIONS OF CHAPTER 62 OF THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN, TEXAS, REGULATING THE DRILLING, COMPLETION AND OPERATION OF OIL WELLS AND OF GAS WELLS WITHIN THE CORPORATE LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND ESTABLISHING RESTRICTIONS THEREON, did on the _____ day of _______, file with the Director of Planning and Development Services or his/her designee, of the City of Baytown, an application to drill, complete and operate a well for oil (or gas) upon Lot No. _____, Block No. _____ (or other appropriate description), [within or outside, as applicable] the City of Baytown, Texas, as per map of record in Volume _____, Page _____ [if applicable, otherwise insert legal description of surface location], Plat Records of ___________ [Harris or Chambers] County, Texas, in Drilling Unit No. _____, and located by Lambert Coordinates for the South Central Zone of Texas at the intersection of Coordinates _____ East and _____ North, and the proposed bottom-hole location in Drilling Unit No. _____, and located by Lambert Coordinates for the South Central Zone of Texas at the intersection of Coordinates _____ East and _____ North.

(b) Within ten days after the filing of an application, a copy of such notice shall be mailed by registered mail at the expense of the applicant, addressed to the last known address of each owner of land within 750 feet of the property lines of the land that is subject to the application as shown in the records of the county appraisal district, and each owner and lessee of lots, blocks and tracts in the drilling unit not owned by or under lease to the applicant. A copy of such notice shall be published, at the expense of the applicant, in every issue of a local newspaper of the city within ten days after the filing of such application. Proof of such publication shall be made by the printer or publisher of the newspaper by affidavit filed with the director and shall be prima facie evidence of such publication. The applicant shall file with the director an affidavit showing the following:

(1) The name and last known address of each owner and lessee of a lot, block and tract to whom notice is required to be given as provided in this section; and

(2) The name of each owner and lessee of a lot, block and tract to whom such notice is required to be given and whose address is unknown to the applicant.

(Ord. No. 671, § 5, 2-14-63; Code 1967, § 20-40; Ord. No. 11,434, § 4, 9-9-10; Ord. No. 12,474, § 8, 2-13-14)

Unless otherwise provided pursuant to the ULDC, no drilling, oil or gas operations shall be permitted and no permit shall be issued for any well, including its associated appurtenances, to be drilled in any surface location, which is nearer than:

(1) Seven hundred fifty feet from the following:

a. Any structure designed or used for human occupancy associated with any dwelling unit, multifamily dwelling, place of public assembly, hospital building, school;

b. The property line of a public park or public recreational space;

c. Public or private water well, unless a private water well is associated with drilling, oil or gas operations; or

(2) Fifty feet from the property line of a private recreational space;

without the applicant having first securing a notarized setback waiver from the affected surface owner, which is not in conflict with an approved special use permit.

Drilling, oil or gas operations are not permitted on a surface location within any of the rights-of-way or alleys, parks or other public property unless authorized by an ordinance duly passed by the city council. Nothing in this section shall prohibit directional drilling beneath any of the streets or alleys, parks or other public property of the city, if the depth of the well path under any such property is at least 750 feet.

(Ord. No. 671, § 6, 2-14-63; Code 1967, § 20-41; Ord. No. 11,434, § 5, 9-9-10; Ord. No. 12,474, § 9, 2-13-14)

Neither this article nor any permit issued under this division shall be interpreted to grant any right or license to the permittee to enter upon, use or occupy in any respect for the drilling or operation of any well on any surface land except by the written contract of the surface owner unless the permittee obtained such right in an oil and gas lease or other contract, 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.

(Ord. No. 671, § 7, 2-14-63; Code 1967, § 20-42; Ord. No. 11,434, § 6, 9-9-10; Ord. No. 12,474, § 10, 2-13-14)

(a) General requirements applicable to all policies.

(1) General liability and automobile liability insurance shall be written by a carrier with an A:VIII or better rating in accordance with the current Best Key Rating Guide.

(2) Only insurance carriers licensed and admitted to do business in the State of Texas will be accepted.

(3) Deductibles shall be listed on the certificate of insurance and are acceptable only on a per occurrence basis.

(4) Claims made policies will not be accepted, except for the environmental pollution liability and excess or umbrella liability, which may be on a claims-made basis.

(5) The City of Baytown, its officials, employees and volunteers, are to be added as "additional insured" to the general liability policy. The coverage shall contain no special limitations on the scope of protection afforded to the owner, its officials, employees or volunteers.

(6) A waiver of subrogation in favor of the owner with respect to workers' compensation insurance must be included.

(7) If the operator receives notice that any insurance policy required herein is suspended, voided, cancelled, reduced in coverage or in limits, the permittee shall provide the city prompt written notice by certified mail, return receipt requested.

(8) Upon request, certified copies of all insurance policies shall be furnished to the City of Baytown.

(9) Certificates of insurance must be delivered to the director, evidencing all the required coverages, including endorsements, prior to the issuance of an oil and gas well permit, and thereafter annually, prior to the policy termination or cancellation date.

(10) Any failure on part of the city to request required insurance documentation will not constitute a waiver of the insurance requirement specified herein.

(11) During the term of the oil or gas well permit, the operator will report, in a timely manner, to the fire chief any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss.

(b) No permit required under this division shall be issued until the applicant shall also file with the director a certificate of insurance evidencing the following:

Commercial general liability insurance with an aggregate of $2,000,000.00 and a per occurrence limit of $1,000,000.00. There shall be no modification limiting the scope of coverage for liability arising from drilling, oil or gas operations. No coverage shall be deleted from the standard policy without notification of individual exclusions being attached for review and acceptance by the city.

Excess or umbrella liability with minimum limits of $10,000,000.00. Coverage must include an endorsement for, sudden or accidental pollution. If seepage and pollution coverage is written on a "claims made" basis, permittee must maintain continuous coverage and purchase. Extended coverage period insurance when necessary.

Environmental pollution liability coverage with minimum limits of $5,000,000.00 per loss with an annual aggregate of at least $10,000,000.00. Insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; clean-up costs; and defense, including costs and expenses incurred in the investigation, defense or settlement of claims; all in connection with any loss arising from the insured site. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants, or other causes as applicable. Permittee shall maintain continuous coverage and shall purchase extended coverage period insurance when necessary. The ECP insurance must provide that any retroactive date applicable to coverage under the policy precedes the date of the permit.

Control of well coverage with minimum limits of $3,000,000.00 per occurrence/no aggregate, if available, otherwise an aggregate of $10,000,000.00. Five-hundred-thousand-dollar sublimit endorsement may be added for damage to property for which permittee has care, custody and control. This is a policy that covers the cost of controlling a well that is out of control, re-drilling or restoration expenses, seepage and pollution damage as first party recovered for permittee and related expenses, including, but not limited to, loss of equipment, experts and evacuation of residents.

Workers' compensation liability limits of $500,000.00 for each accident/disease is required by the employer. Texas Waiver of Our Right to Recover From Others Endorsement, WC 42 03 04 shall be included in this policy. Texas must appear in Item 3A of the Workers' Compensation coverage or Item 3C must contain the following: All States except those listed in Item 3A and the States of NV, ND, OH, WA, WV, and WY.

Automobile liability minimum combined single limit of $500,000.00 per occurrence for bodily injury and property damage. The business auto policy must show Symbol 1 in the covered autos portion of the liability section in Item 2 of the declarations page. Coverage must include all owned, hired and not-owned automobiles.

(c) The applicant shall, upon request of the city clerk, submit the original or a certified copy of any policy for inspection at any time.

(d) Irrespective of the requirements as to insurance to be carried, the insolvency, bankruptcy or failure of any insurance company carrying insurance for any applicant or permittee under this division or the failure of any such company to pay claims accruing shall not be held to waive any of the sections of this article. The applicant shall pay promptly all premiums for such insurance in strict accordance with its obligations to its carrier and shall maintain the described coverage in full effect so long as the permit shall be valid and alive.

(e) Failure to keep the policy in full force and effect, in accordance with the terms of this section, shall be unlawful and shall be punishable in accordance with section 1-14.

(f) Any bond, insurance or other financial security requirement as stated in the Unified Land Development Code or other article herein shall not apply to the aggregate for the purposes of this section.

(Ord. No. 671, § 10, 2-14-63; Code 1967, § 20-45; Ord. No. 12,474, §§ 11, 12, 2-13-14)

(a) If, after such application or supplemental application is filed pursuant to this division, it is found by the fire chief to comply in all respects with terms of this article and the drilling and operation or deepening and operation of a well is not prohibited by the terms of this article, the fire chief shall issue a permit for the drilling and operation or deepening and operation of the well applied for.

(b) Except for areas exempted under subsection 62-96(b), the granting and issuance of a permit for a well with a proposed bottom-hole location on a drilling unit, as provided in this article, shall automatically operate as a rejection and denial of all other pending applications for a well to be completed upon the drilling unit involved or any portion thereof.

(c) If the fire chief denies the applicant a permit to drill or deepen a well, an appeal to the city council may be made by such applicant by filing written notice of appeal with the city council. Such appeal shall be heard by the city council within 30 days after the filing date.

(Ord. No. 671, § 8, 2-14-63; Code 1967, § 20-46; Ord. No. 11,434, § 7, 9-9-10; Ord. No. 12,474, § 13, 2-13-14)

Each permit issued under this division shall:

(1) By reference have incorporated therein all sections of this article with the same force and effect as if this article were copied verbatim in the permit;

(2) Specify definitely the surface location and proposed bottom-hole location of the well and the number of the drilling unit(s) in which the well is to be located;

(3) Specify that drilling shall begin within 90 days from the date of the permit or the permit shall be forfeited; provided however, such forfeiture shall not affect the right of the applicant to apply for another permit; and

(4) Specify that such permit shall remain in full force and effect until the well is abandoned.

(Ord. No. 671, § 8, 2-14-63; Code 1967, § 20-47; Ord. No. 11,434, § 8, 9-9-10)

The permit issued pursuant to this division, in duplicate originals, shall be signed by the permittee. One original of the permit duly executed shall be delivered to the permittee, and one original of the permit duly executed shall be retained and filed by the fire chief. When so filed, the permit shall constitute the permittee's drilling and operating license and the contractual obligations of the permittee to comply with the terms of such permit, of the bond and of this article.

(Ord. No. 671, § 8, 2-14-63; Code 1967, § 20-48; Ord. No. 12,474, § 14, 2-13-14)

(a) The well spacing sections, the requirement for notice by registered mail to owners of nonleased property in a drilling unit and the forced pooling sections of this article shall not apply to producing areas that have been defined as piercement type salt domes by the state railroad commission. One field, namely Goose Creek, within the city limits is defined as a piercement type salt dome. Wells within this field shall comply with the applicable provisions of state law and the state railroad commission.

(b) The 40-acre drilling units within the Goose Creek Field that are exempt from certain sections of this article are listed in an exhibit marked "C," styled "Lambert Coordinates Describing Oil Drilling Units Within the Producing Limits of the Goose Creek Field," below.

Exhibit C
Lambert Coordinates Describing Oil Drilling Units Within the Producing Limits of the Goose Creek Field

(Ord. No. 671, § 18, 2-14-63; Code 1967, § 20-25; Ord. No. 4662, § 1, 3-12-87)

In order that the purpose and intent of this article be carried out and drilling for oil and gas within the city may proceed in an orderly manner and for convenience and clarity in identifying the location of approved or proposed drilling locations, drilling units shall be described by use of the state plane coordinate system (Lambert) for the south central zone of the state. For this purpose, the corporate limits have been divided into blocks containing 640 acres and being 5,280 feet square. All blocks or portions thereof, which are located within the corporate limits, are listed and described in an exhibit marked "A" styled "Lambert Coordinates Describing 640 Acre Blocks within the City Limits of the City of Baytown" below. The boundary lines of each block shall be contiguous with all adjacent blocks, as shown on such exhibit "A." Each block shall be identified, as shown on such exhibit "A," by the number of blocks distant it is located along the Lambert Coordinates north and west, north and east, south and east, or south and west from the intersection of coordinates 3,276,000 east and 708,000 north, which intersection is about 600 feet west of the city hall. For example N2E2 will identify the block which is the second block north and the second block east of the intersection of coordinates 3,276,000 east and 708,000 north.

_____

Exhibit A
Lambert Coordinates Describing 640-Acre Blocks
Within the City Limits of the City of Baytown

_____

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-14)

A drilling unit for oil within the corporate limits shall contain 40 acres and shall be 1,320 feet square. Each oil drilling unit shall be wholly within one of the blocks described in exhibit "A" in section 62-97 and the four boundary lines of each oil drilling unit shall be contiguous to all adjacent oil drilling units. Each of the blocks, as described in exhibit "A," shall contain 16 oil drilling units, and each oil drilling unit shall be identified by numbers, starting with the northwest corner oil drilling unit of each block and reading from left to right for four rows, as illustrated in the example appearing on a plat marked exhibit "B" styled "Example—Illustrating the Manner in which Each 640 Acre Block within the City of Baytown is divided into 40 acre Oil Drilling Units," below. The boundary lines of each oil drilling unit may be further described by Lambert Coordinates, as illustrated in the example appearing in such exhibit "B." Notwithstanding the foregoing, if an oil drilling unit includes land both inside and outside of the regulated area, the "drilling unit" shall be limited to that land which is inside of the regulated area.

Exhibit B
Example Illustrating the Manner in which Each 640-Acre Block Within the City of Baytown is Divided into 40-Acre Oil Drilling Units

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-15; Ord. No. 11,434, § 9, 9-9-10)

A drilling unit for gas within the city shall contain 640 acres and shall be 5,280 feet square, and the boundary lines of each such gas drilling unit shall be congruent with the boundary lines of one of the blocks described in exhibit "A," in section 62-97. Notwithstanding the foregoing, if a gas drilling unit includes land both inside and outside of the regulated area, the "drilling unit" shall be limited to that land which is inside of the regulated area.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-16; Ord. No. 11,434, § 10, 9-9-10)

(a) Except as provided in section 62-108, not more than one oil well shall be permitted to be drilled, completed and operated within the surface area of each oil drilling unit, and it shall be unlawful and a violation of this article to drill, complete and operate more than one oil well in each oil drilling unit.

(b) However, if on the effective date of the ordinance from which this article derives there exists on any oil drilling unit one or more producing oil wells, one additional oil well may be drilled, completed and produced on the same oil drilling unit under the terms of this article.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-17; Ord. No. 11,434, § 11, 9-9-10)

(a) Except as provided in section 62-108, not more than one gas well shall be permitted to be drilled, completed and operated within the surface area of each gas drilling unit, and it shall be unlawful and a violation of this article to drill, complete and operate more than one gas well in each gas drilling unit.

(b) However, if on the effective date of the ordinance from which this article derives there exists on any gas drilling unit one or more producing gas wells, one additional gas well may be drilled, completed and produced on the same gas drilling unit under the terms of this article.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-18; Ord. No. 11,434, § 12, 9-9-10)

(a) A substitute oil well may be drilled, completed and operated in each oil drilling unit and a substitute gas well may be drilled, completed and operated in each gas drilling unit if the prior existing oil well or gas well, drilled after the effective date of the ordinance from which this article derives, shall be abandoned.

(b) A substitute oil or gas well may be drilled, completed and produced on the same proration unit if an oil well that was producing or capable of producing on the effective date of the ordinance from which this article derives shall be abandoned. A substitute gas or oil well may be drilled, completed and produced on the same proration unit if a gas well that was producing on the effective date of the ordinance from which this article derives shall be abandoned. No substitute well shall be drilled to a deeper reservoir than the deepest productive reservoir of the well for which such substitute well is drilled.

(c) Except as provided in this section, an oil well cannot be substituted for a gas well, and a gas well cannot be substituted for an oil well.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-19)

This division shall not prevent a well from being completed in more than one producing horizon. Multiple completions in the same well bore are expressly authorized. If a well is completed in one or more oil zones and one or more gas zones through the one-well bore, a permit must be secured from the city for both an oil well and a gas well.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-20)

(a) If a well is drilled under an oil well drilling permit and the permittee for any reason wishes to complete the well as a gas well, he must first secure a gas well drilling permit at no additional charge.

(b) If a well is drilled under a gas well drilling permit and the permittee for any reason wishes to complete the well as an oil well, he must first secure an oil well drilling permit at no additional charge.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-21)

(a) If an application for a permit for the drilling, completion and operation of a well either for oil or gas shall be made by any person not owning or holding leases of oil or gas rights or drilling contracts from the owners of all lots, blocks or parcels of land included in or embraced within a drilling unit containing the projected bottom-hole location of the proposed well, a permit shall be issued to such applicant, his heirs, successors and assigns, only upon the conditions in subsections (b) and (c) of this section, in addition to such other conditions as may be provided for in other sections of this article.

(b) The permittee shall be free to enter into such contracts and agreements with the owners of such other lots, blocks or tracts as he may be able to make. If agreements are not reached with all owners of lots, blocks and tracts within the drilling unit containing the projected bottom-hole location of the proposed well, the owner of any given lot, block or tract shall have the right or option, by notice to the permittee given in writing within 30 days after the issuance of a permit for a well on the drilling unit involved, to either:

(1) Treat his interest as a working interest and contribute toward the actual cost and expense of drilling, completing and operating the well with all necessary appurtenances currently each month in the proportion that the number of square feet in area owned by him in the drilling unit bears to the total number of square feet embraced in the unit, and thereupon receive the same proportion of the oil produced and saved from such well or its value at the well, at the option of the permittee, and a like proportion of natural gas produced, saved and utilized or sold or the value of such at the well, at the option of the permittee; or

(2) Treat his interest as a royalty interest and receive, delivered free of cost in the pipeline to which the well may be connected, a share of all oil produced and saved from such well equal to one-eighth of the proportion of the whole quantity of oil and casinghead gas so produced and saved that the number of square feet in the area owned by him bears to the total number of square feet in such drilling unit or, at the election of the permittee, to receive a like proportion of the value at the well of the oil so produced, and to receive a like proportion of the gas and casinghead gas produced, saved and utilized or sold or, at the election of the permittee, the market value at the well of such proportion of gas or casinghead gas produced and sold or used off the premises or for gas sold at the well, such proportion of the amount realized from such sale.

(c) If any owner does not exercise the right and option provided in subsection (b) of this section, the obligation shall then be upon the permittee, his heirs, successors and assigns to make settlement with such owner on the terms provided in the option in subsection (b)(2) of this section, providing for the payment of a one-eighth royalty. If the owner of a lot, block or tract shall exercise his option under subsection (b)(1) of this section and treat his interest as a working interest, as therein provided, the permittee shall be entitled to reimburse himself for such owner's proportionate part of the cost out of such owner's proportionate part of the oil, gas and casinghead gas or the value thereof before making deliveries of products or settlement for the value thereof. If the option in subsection (b)(1) of this section is exercised by the owner of any lot, block or tract, such owner shall, within the time provided for notice of his election set forth in this section, file with the director a bond or other obligation executed by such owner as principal and by an authorized surety company as surety, in which such principal and surety agree, bind and obligate themselves to pay to the permittee, his heirs, successors and assigns, currently each month, that proportion of the actual and necessary cost and expenses involved in the drilling, completion and operation of such well that the number of square feet embraced within the lot, block or tract of such owner bears to the total number of square feet in such drilling unit, such bond to be approved by the city attorney and held by the director for the benefit of the beneficiaries therein. The failure of any such owner to timely file and obtain approval of such bond or other obligation shall be deemed to be an election under subsection (b)(2) of this section. Permits shall be issued in all cases and shall be subject to this article and upon the condition that the permittee, his heirs, successors and assigns shall make settlement in accordance with the provisions thereof.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-22; Ord. No. 11,434, § 13, 9-9-10; Ord. No. 12,474, § 15, 2-13-14)

If there are applications filed with the director and pending at the same time for permits to drill a well in any one drilling unit by more than one applicant, that application shall be granted, if otherwise sufficient, which shall be made by the person holding the greater area of the land within the drilling unit by ownership in fee or by lease or other contract with the owner permitting the drilling thereon for oil or gas.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-23; Ord. No. 12,474, § 16, 2-13-14)

(a) The interests of persons other than the permittee who hold oil and gas leases or equivalent contracts in any drilling unit which contains the bottom-hole location of the proposed well shall be treated as part of the total working interest of the drilling unit, and such other persons holding such interests shall each make the election as provided in subsections (b) and (c) of this section with the permittee within 30 days from the date of the issuance of a permit with respect to a drilling unit.

(b) The election as provided in subsection (a) of this section is that such other persons shall either:

(1) Agree in writing with the permittee to contribute their share of all costs and expenses, properly allocated to the well and drilling unit by the permittee in accordance with accepted accounting practice, currently each month in the proportion that the number of square feet in the area held by them or each of them in the drilling unit bears to the total number of square feet embraced in the unit and, within such 30-day period, execute and file with the director a bond issued by a surety company licensed to do business in the state in an amount representing that portion of the estimated maximum cost of the well that the area of land held in fee simple under lease or other contract by the principal bears to the whole area of the drilling unit, conditioned that the principal in the bond will pay to the permittee and his assigns such proration of the cost of drilling and operating the well, from time to time, as required in the drilling and operation thereof, such bond to be approved by the city attorney and held by the director for the benefit of all persons interested; and thereupon such persons so acting shall be entitled to participate in the total working interest under such unit; and the persons so acting shall have the right upon reasonable notice given to the permittee, upon furnishing of storage tanks or facilities for handling the same and upon the payment of or securing the payment of their share of the royalty interests and any overriding royalty or oil payment interest thereon, to receive in kind their proportionate share of oil and gas produced and saved from the well in the drilling unit and allocated to the working interest of the well; or

(2) If such other persons or any one or more of them fail to elect or fail to file and obtain approval of the bond under subsection (b)(1) of this section within the 30-day period, he shall be deemed to have elected to agree that permittee shall be entitled to reimburse himself currently each month from such other person's proportionate share of the proceeds of sale or production in kind for three times the amount of such other person's proportionate part of the costs and expenses as set out in subsection (b)(1) of this section.

(c) However, the permittee and such other persons or any one or more of them shall be able to alter the obligations as set out in this section by an agreement made by them in writing, provided such agreement is not repugnant to other rules and regulations set out in this article.

(Ord. No. 671, § 3, 2-14-63; Code 1967, § 20-24; Ord. No. 11,434, § 14, 9-9-10; Ord. No. 12,474, § 17, 2-13-14)

Notwithstanding any other provision of this chapter or other city regulations, multiple wells for oil or gas or both, may be drilled from a drilling site under the following circumstances:

(1) The surface location is located outside of the regulated area;

(2) The surface location is properly zoned in accordance with the ULDC;

(3) The nearest place of residence, public assembly, hospital building, public park, school, private recreational space, or public or private water well, unless a private water well is associated with drilling, oil or gas operations, to any wellhead, tanks or production equipment associated with any well meets the distance requirements in section 62-62.

The bottom-hole locations of such wells may be located in one or more drilling units, provided that the depth thereof shall not be less than 750 feet subsurface when a well penetrates the vertical extension of the boundary of the drill-site tract. Notwithstanding any other provisions of this article, multiple completions may be made in any given drilling block if a well otherwise meets the requirements of this section. Notwithstanding the foregoing, except as provided in subsection 62-96(b), (a) no more than one contiguous surface tract, not to exceed 40 acres in area, shall be utilized within a given gas drilling unit as a surface drillsite location; and (b) no more than one contiguous surface tract, not to exceed ten acres in area, shall be utilized within a given oil drilling unit as a surface drillsite location.

(Ord. No. 11,434, § 15, 9-9-10; Ord. No. 11,866, § 19, 2-23-12; Ord. No. 12,474, § 18, 2-13-14)

It shall be unlawful for any person to permit to escape any mud, water, oil, slush or other waste matter related to the drilling or operating of any oil or gas well into any adjoining lots upon which the permittee does not have leases or other contractual rights to use the surface or upon leases not owned by the permittee or into the city alleys, streets, gutters or sewers. Within 15 days after the completion or abandonment of any oil or gas well, the mud and other similar matter and materials used in connection with the drilling and operations shall be removed from the premises.

(Ord. No. 671, § 11, 2-14-63; Code 1967, § 20-60)

All persons engaged in the drilling, oil or gas operations within the regulated area shall comply with the following:

(1) In order to enable the holder of each permit to move oil, gas, water or other products to or from each drilling unit within the city limits, the holder of each permit issued under this article for the drilling, oil or gas operations shall apply to the city council for an easement on, over, under, along or across the city's streets, sidewalks, alleys and other city property for the purpose of constructing, laying, maintaining, operating, repairing, replacing and removing pipelines, so long as production or operations may be continued under any permit issued pursuant to this article. However, such permittee shall:

a. Not interfere with or damage existing water, sewer or gas lines or the facilities of public utilities located on, under or across the course of such rights-of-way;

b. Furnish the director with a plat showing the location of such pipelines;

c. Construct such lines or cause such to be constructed out of new or reconditioned pipe in accordance with directions of the fire chief and properly cased and vented if under a street; and

d. Grade, level and restore the property to the same surface condition, as nearly practicable, as existed when operations for the drilling of the well were first commenced.

(2) Any violation of state law or any rules, regulations or requirements of any state or federal regulatory body having jurisdiction in reference to drilling, completing, equipping, operating, producing, maintaining or abandoning any oil or gas well or related appurtenances, equipment or facilities or in reference to firewalls, fire protection, blowout protection, safety protection or convenience of persons or property shall also be a violation of this article and shall be punishable in accordance with this article.

(3) No person engaged in drilling or operating any well shall permit gas to escape or be vented into the air unless such gas is flared and burned. All gas flared and burned from a torch, pipe or other burning device within the city must be done in such a manner as not to constitute a fire hazard to any property. The location of the torch, pipe or other burning device; the construction thereof; the maintenance thereof; and the operation thereof shall at all times be in full compliance with such regulations as may from time to time be issued by the fire chief.

(4) It shall be unlawful for any person to use or operate, in connection with the drilling or working over of any well within the city limits, any wooden derrick or steam powered rig or to permit any drilling rig or derrick to remain on the premises or drilling site for a period longer than 60 days after completion or abandonment of the well.

(5) All engines shall be equipped with effective mufflers.

(6) Two dual-controlled, fluid-operated blowout preventers with working pressures equal to the maximum anticipated wellhead pressures shall be used for all drilling or completion operations involving the use of drill pipe or tubing after the surface casing has been set. The mechanical operation of the preventers shall be checked every 24 hours and shall be tested with pump pressure with enough frequency to ensure good working order at all times.

(7) Only portable steel slush tanks for mud or water shall be permitted in connection with the drilling and working over operations of any well.

(8) Any person drilling or operating a well for oil or gas shall make adequate provisions for the disposal of saltwater or other materials that may be produced along with the oil or gas in such a manner as not to contaminate the city water supply or watersheds or damage vegetation or fauna.

No saltwater or other type of disposal well shall be permitted unless issued a permit in accordance with this section. No saltwater or other type of disposal well shall be located within a subdivision that was platted on or after January 1, 2003, and that is used for residential use. No saltwater or other type of disposal well shall be operated as a commercial disposal well, and all disposal wells shall be limited to private use. Disposal wells shall only be used for the disposal of saltwater or other materials that may be produced from the associated drilling, oil or gas operations.

(9) No well shall be drilled or worked over in the city without the bore hole at all times being filled with drilling fluid of a weight and viscosity as a reasonably prudent operator would use to keep the well under control at all times.

(10) It shall be unlawful for any person in connection with the drilling or working over operations of any well within the city to conduct any swabbing operations or to take and to complete any drill stem test except during daylight hours. Drill stem tests may be conducted only if the well effluent during the test is produced through an adequate oil and gas separator to storage tanks, and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe. The fire chief shall be informed before drill stem testing or swabbing is performed so that a city representative may be present during such operations.

(11) The operator of any well in any field or area within the city shall be required to set and cement a sufficient amount of surface casing to properly protect all freshwater sands as specified by the state regulatory authorities and the fire chief. A minimum of 1,200 feet of surface casing shall be set. The surface casing shall be of new or reconditioned casing and shall be set and cemented in accordance with the rules, regulations and orders of the state railroad commission for the field or area in which the well is to be drilled. Cementing shall be by the pump and plug method, and sufficient cement shall be used to fill the calculated annular space back of the casing to the surface of the ground. If returns to the surface of the ground are not realized, a temperature survey must be conducted to find the location of the cement and necessary work performed to provide cementing from the shoe of the casing to the surface of the ground. The cement shall be allowed to stand for a period of 24 hours before drilling plug.

If more than 1,200 feet of surface casing is required, in lieu of setting the full amount of surface casing required to protect freshwater sands, the applicant may use the multistage cementing process on the next casing string. In using the multistage cementing process, sufficient cement shall be used in the stage cement job that is equivalent to the volume of the annulus from the cementing tool to the surface of the ground. If the cement does not reach the surface of the ground, a temperature survey must be conducted. If the survey shows that the top of the cement is less than one-third of the distance from the shoe of the surface casing to the surface, corrective measures must be taken. Any applicant using the multistage process must file with the director a copy of the state railroad commission letter granting such permit and an affidavit from the company performing the cementing. Failure to file either of these shall be unlawful and shall be punishable in accordance with this article.

(12) Before drilling and setting casing in any well for oil or gas within the corporate limits, the permittee must notify the fire chief and obtain letter(s) from the state regulatory authorities stating where the freshwater sands are to be found in the area or field in which the well is to be drilled. A copy of the state regulatory authorities letter(s) must be filed with the director and the fire chief, and the permittee must set sufficient surface casing as required. Failure to file a copy of the state water commission's letter shall be unlawful and shall be punishable under section 1-14.

(13) All completed wells within the city shall be equipped with Christmas tree fittings and wellhead connections, with a rated working pressure equal to or greater than the surface shut-in pressure of the well. All wellhead connections shall be assembled and tested prior to installation by a fluid pressure, which shall be equal to the test pressure of the fitting employed.

(14) Whenever any well is abandoned within the city limits, it shall be the obligation of the permittee to plug such well in accordance with the rules and regulations of the state railroad commission and to make any and all additional provisions or take precautionary measures prescribed by the state or the state railroad commission in connection with abandonment and plugging of the well. It shall be the further obligation of the permittee or the operator of the well to cut the surface casing off at least six feet below the surface of the ground and to place at least a 25-foot cement plug in the top of the casing and to weld the top of the casing completely shut. The resulting hole in the ground must be completely filled to the surface of the ground and duly tamped.

Abandonment shall be approved by the city engineer after restoration of the drill site and the subsurface thereof has been accomplished in conformity with state regulations and the following requirements:

a. The derrick and all appurtenant equipment thereto is removed from the drill site;

b. All tanks, towers, and other surface installations are removed from the drill site;

c. All concrete, piping, wood, and other foreign materials regardless of depth, except surface casing, are removed from the drill site, unless otherwise directed by the state railroad commission;

d. All holes and depressions are filled with clean compatible soil;

e. All oil, waste oil, refuse, or waste material is removed from the drill site;

f. Operator pays an abandonment fee in an amount set by council resolution; and

g. During abandonment operator shall comply with all applicable sections in this chapter.

(15) It shall be unlawful and an offense for any person to use, construct or operate in connection with any producing well within the city limits any crude oil storage tanks except to the extent of two steel tanks for oil storage, not exceeding 500-barrel capacity each, and so constructed and maintained as to be vaportight and each surrounded with an earthen firewall at such distance from the tanks as will, under any circumstances, hold and retain at least two and one-half times the maximum capacity of such tank. A permittee may use, construct and operate a steel conventional separator and such other steel tanks and appurtenances as are necessary for treating oil, with each of such facilities to be so constructed and maintained as to be vaportight. Each oil and gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head.

(16) Any person may install equipment for the purpose of secondary recovery or pressure maintenance operations or for automatic lease operations, provided that such person must comply with all safety requirements of this article and of the state railroad commission.

(17) It shall be unlawful for any person within the corporate limits to install any fired vessel or open flame nearer than 150 feet to any well or storage tank.

(18) Except in a drilling overlay district, any appurtenance that is three feet or more in height and within 300 feet of a property line or a public right-of-way shall be adequately protected by an opaque fence so constructed that it will prevent easy entry, in accordance with the Code, including the chapter 18, article XIV of the Code and the ULDC. Fences to prevent easy entry shall be approved by the director.

(19) The premises shall be kept in a clean and sanitary condition, free from rubbish of every character, at all times during the drilling operation and as long thereafter as oil or gas is being produced therefrom. Every permittee's premises shall be kept clear of high grass, weeds and combustible trash or any other rubbish or debris that might constitute a fire hazard within a radius of 100 feet around any oil tank or producing well or to the limits of premises, whichever is the lesser.

(20) No prime movers shall be permitted within the corporate limits for the purpose of pumping wells, except electric motors. However, nonelectric motors may be used in an unusual hardship, with approval of the fire chief.

(21) Printed signs reading "danger, no smoking allowed" or similar words shall be posted in conspicuous places on each well, storage tank or battery of tanks within the corporate limits.

(22) Material, equipment, tools or pipe used for either drilling or producing operations at the well shall not be delivered to or removed from the well site except between the hours of 7:00 a.m. and 7:00 p.m. of any day, except in an emergency; provided, however, that this restriction shall not apply to operations conducted in an area zoned heavy industrial under the provisions of the Unified Land Development Code.

(23) It shall be unlawful to block or encumber or close up any streets or alleys in any drilling or production operations, except by an ordinance duly passed by the city council permitting a temporary closing of a street or alley.

(24) All new flow lines shall be located underground at least 18 inches under grade from and after February 23, 2014. Warning signs shall be placed for lines carrying hydrogen sulfide gas as required by the commission and all other applicable state or federal regulatory agencies, and an identifying sign at each point where a flow line or gathering line crosses a public street, road, or fence line. Identification signs must conform to commission regulations.

(25) All tanks, piping and appurtenances shall comply with the requirements of NFPA 30.

(26) All electrical equipment, lighting, bonding and grounding shall comply with the requirements of NFPA 70.

The fire chief, upon a determination of change in standards or technology, may permit a variance from the forgoing provisions of this section, or a functionally equivalent alternative method to achieve equivalent compliance.

(Ord. No. 671, § 15, 2-14-63; Code 1967, § 20-61; Ord. No. 11,434, § 16, 9-9-10; Ord. No. 11,866, § 20, 2-23-12; Ord. No. 12,474, § 19, 2-13-14)