City of Holland, MI
Ottawa County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[Ord. No. 455]
(a) 
The business and occupation of drilling and exploring for, producing, obtaining, transporting, gathering and storing of oil, gas, petroleum and hydrocarbons within the City is a potentially hazardous and dangerous business and occupation. It is necessary that such business and occupation be regulated, controlled and limited for the purpose of providing protection for the lives, health, welfare and safety of the citizens of the City and of the public generally and for the protection of property from the danger of fire, explosion, gas leaks, nuisances and other hazards injurious to the public peace, health, welfare and safety.
(b) 
The provisions of this chapter shall be deemed to be the minimum requirements for the preservation of the public peace, health, safety and welfare, and compliance with all terms thereof shall not be deemed to relieve any person from any duty imposed by law to use all necessary care and take all necessary precautions for the safeguarding of the public peace, health and safety and the rights of any individual or group of individuals, and it shall be the duty of any person drilling, operating or maintaining any well to use all necessary care and take all precautions of whatsoever nature which shall be reasonably necessary under the circumstances to protect the public or the rights of any part thereof.
[Ord. No. 455]
Words used in this chapter unless otherwise defined shall have the common meaning of such words as generally understood in the oil and gas industry, unless the content herein clearly implies otherwise.
[Ord. No. 455]
No person shall drill or deepen a well, or reopen a plugged well, for the production of oil, gas or other hydrocarbons, or for the injection of any fluid into any oil or gas-producing formation, until such person shall obtain a permit therefor as required in this chapter.
[Ord. No. 455; Ord. No. 788; Ord. No. 1069, 10-7-1992]
Any person desiring to drill, deepen or reopen any well regulated by this chapter shall fill out, sign and file an application in writing therefor upon forms provided by the City Clerk, accompanied by a filing fee as established by a resolution adopted by City Council to apply on the cost and expenses of the administration of this chapter. The application shall contain information as to the location of the proposed well and attached thereto shall be a map, plat or survey of the area to be drilled showing the location of the well on such unit together with the proposed location of tanks, flow lines, fences and details incident to the proposed drilling operation. The location of such well shall be stated in relation to established street or plat lines or, in lieu thereof, quarter section lines. Such application shall show the names of the owners of the oil and gas in the drilling unit and all leases thereon, insofar as such names and leases are known to the applicant or are a matter of public record. Such application shall also be accompanied by the consent in writing of the owner of the drill site, consenting to the drilling of the well on his property. Attached to such application shall be duly certified or photostatic copies of all leases for the discovery and removal of oil and gas, together with ratifications thereof, executed by the owners of all oil and gas in the drilling unit, owned or controlled by the applicant, together with a statement of all other leases insofar as known to the applicant setting forth the names of the lessors and lessees of each such respective lease. In the event that such leases shall by their terms provide for and consent to such drilling, the consent therein provided shall be deemed sufficient-compliance with the requirements for the consent of the lessor as herein provided. Bond, as set forth in this chapter, shall also accompany and be filed with such application.
[Ord. No. 455]
The City Clerk may refer any application for a permit under the provisions of this chapter to the Chief of Police, Fire Chief, Building Inspector, City Engineer, City Assessor, City Attorney, Superintendent of Utilities or City Sanitarian, or any two or more of them, for an investigation and recommendation on matters pertaining to the public safety, health or welfare which are or may be involved in the exercise of the permit applied for, and the City Clerk may require the giving of adequate proof to establish the identity of the applicant.
If it shall be made to appear, either upon the face of such application or by other satisfactory proof, that the applicant is the owner or has under his control, either as owner or lessee, or both, all interests in the area to be drilled, and such applicant showing compliance with all the requirements set forth in this chapter, the statutes of the state and the regulations promulgated by the Supervisor of Wells of the state, the City Clerk shall grant the permit without further notice.
If such application shows that the applicant for a permit to drill a well for oil or gas is not the owner, or does not have under his control for drilling purposes all the interests in all the oil or gas in the drilling unit, or if for any other valid reason the City Clerk determines not to issue a permit forthwith, then the City Clerk shall refer the application to the Board of Appeals of the City and shall fix a time and place for a public hearing thereon.
The City Clerk shall thereupon cause notice of such hearing to be given by certified mail to all known owners of the lands containing oil and gas within the drilling unit and the lessees thereof under all leases of record, addressed to their last known place of residence, nor less than seven days prior to the date of such hearing. The City Clerk shall also publish a notice in the public newspaper published and printed in the City at least five days prior to the hearing thereon. Such notices shall be dated and contain a description of the property affected, and shall state the time, date, place and purpose of the hearing. An affidavit by the City Clerk showing such publication and mailing of notices shall be attached to the application by the City Clerk and shall constitute prima facie evidence that such notice was actually given.
The Board of Appeals of the City shall at the time and place designated for such hearing, or at some later date to which the hearing may be adjourned, conduct the hearing upon the application for a permit to drill such well. At such hearing all persons interested shall be heard. Upon the completion of the public hearing, if the Board of Appeals finds that the applicant's proposed drilling operation is in conformity with the provisions of this code and other ordinances of the City, the statutes of the state an all regulations promulgated by the Supervisor of Wells of the state, such Board shall enter such findings in its minutes and shall direct the City Clerk to issue the permit.
No permit shall be granted where the Board of Appeals finds as a matter of fact that the granting of such permit would create or materially increase the hazard of fire in the particular area involved. No permit shall be issued in any instance where the applicant's proposed drilling operations or any activity in connection therewith would be in violation of the Zoning Ordinances of the City.
[Ord. No. 455; Ord. No. 788]
The application for a permit under this chapter shall also be accompanied by, and no permit for the drilling of any well shall be issued without, a duly executed bond given by the applicant as principal and executed by some bonding or indemnity company authorized to do business in the state as surety, running to the City, for the benefit of the City and all persons concerned, conditioned that if the permit be granted the applicant will comply with the terms and conditioned that if the permit be granted the applicant will comply with the terms and conditions of this chapter in the drilling and operation of the proposed well, and that the applicant will pay and discharge any liability imposed by law for damages on account of injury to property, either public or private, or bodily injury or death, received or suffered by any person and resulting from the drilling operation or maintenance of any well or any structures, equipment, machinery, lines or appurtenances thereto used or allowed in the drilling or producing operation, and for clearing from the area to be drilled all litter, machinery, derricks, trenches, pits, debris, oil, waste and other substances used thereto or produced in connection therewith in the drilling, producing or pumping operations, whenever the well shall be abandoned or the operation thereof discontinued. The maximum total liability under such bond for loss or damage, either to person or property, shall be in the amount of $50,000. Such bond shall be made for a term of not less than one year, and a new bond shall be furnished at the expiration of any existing one if the operation of such well covered thereby is continued. If at the time of such renewal all drilling on such well has been completed, the amount of total liability under such bond may be reduced to $25,000.
In lieu of filing a separate bond for each well, any applicant may file a blanket bond in the amount of $100,000 covering all wells drilled and operated by such applicant; provided, however, that an appropriate rider, executed by the principal and surety thereof, stating the location of any additional wells which shall be covered by such bond, shall be attached to and made a part of such bond prior to the filing of an application for a permit for a subsequent well to be covered by such bond.
In lieu of filing a bond in the above designated amounts, any applicant may file a bond as described above in the amount of $5,000, conditioned upon the applicant's compliance with the terms and conditions of this chapter, together with evidence that such applicant is covered by one or more public liability and property damage policies of insurance through one or more companies approved by the Commissioner of insurance of the state in the amounts of $250,000 — $500,000 for public liability and $200,000 for property damage.
In the case that any bond or policy of insurance required herein shall lapse or become void for any reason whatsoever, the permit issued under the terms of this chapter shall immediately become inoperative and void until a new bond or policy of insurance shall have been provided and filed with the City Clerk, or the existing bond or policy of insurance reinstated in full force, and such well and the drilling operations and production thereunder shall be shut down, suspended and discontinued until the filing of such new bond or policy of insurance, or proof of reinstatement thereof. Each bond and memorandum of insurance, both original and renewal, shall be approved by the City Attorney as to form and shall be filed with the City Clerk.
[Ord. No. 455; Ord. No. 1069, 10-7-1992]
If no permit under this chapter is granted to an applicant therefor, $150 of the applicant's filing fee as established by a resolution adopted by City Council shall be refunded and the balance thereof shall be retained by the City.
[Ord. No. 455]
When a permit shall have been issued as provided by this chapter, the same shall terminate and become void and inoperative without any action on the part of the City, unless within 60 days from the date of the issuance thereof actual operations under such permit shall have been commenced.
[Ord. No. 455]
A copy of each permit granted under the provisions of this chapter shall be forwarded by the City Clerk by certified mail to the Supervisor of Wells of the state, and a duplicate copy thereof shall be posted in the location of such well by the permittee.
[Ord. No. 455]
Should any permittee under the provisions of this chapter dispose of his interest to a new owner before drilling is commenced, while the well is being drilled, or after it has been completed, a request for transfer of such permit shall be submitted to the City Clerk. The request for transfer of a permit may be approved by the City Clerk and the transfer completed only if the request has been properly prepared including signatures by both the operator and the acquiring operator and when the acquiring operator has filed suitable surety bond as required for an original permit.
[Ord. No. 455]
Any permit issued under the provisions of this chapter for the operation of any well may be suspended by the City Clerk where any of the provisions of this chapter, or any amendments thereto, any statute of the state or any regulation promulgated by the Supervisor of Wells of the state is violated, which suspension shall be effective until such violations are corrected.
No such permit shall be revoked except after hearing before the Board of Appeals of the City following not less than 10 days' written notice to the permittee by the City Clerk, advising such permittee that such hearing will be held at a time and place fixed in such notice to determine whether the permit shall be revoked, and setting forth the reasons for revocation.
It shall be unlawful and an offense for any person to operate any well during any period in which the permit covering the operation of such well is so suspended or revoked.
The provisions of this section shall in no way limit or interfere with the enforcement of the penalties for the violation of any provisions of this code or ordinances generally, but shall be cumulative and in addition to such penalties.
[Ord. No. 455]
(a) 
Minimum drilling unit. The minimum drilling unit for any permittee to drill any well for the discovery of oil or gas within the City shall be established by the Supervisor of Wells of the state.
(b) 
Distance from adjoining property line or well. No permit shall be granted and no well shall be located unless the location be at least 330 feet from the nearest adjoining property line, unless such adjoining property shall be communitized with the property constituting the drill site, and unless the location be at least 660 feet from each adjacent or adjoining well.
(c) 
Distance from street line, railroad, building, etc. The drilling location of any well shall in each instance be at least 330 feet from any street line, alleys or right-of-way line or the location of any building existent at the time of commencement of drilling.
(d) 
Location in street, alley, etc. No well shall be located within any of the streets, alleys or rights-of-way of the City, or so located as to block or hinder or obstruct the use of any street, alley or public right-of-way.
(e) 
Variances. In the event that it shall appear from the application on file, and after notice and hearing thereon is given as provided by this chapter, the Board of Appeals of the City may grant a variance from the limitations and restrictions set forth in Subsections (b) and (c) above.
[Ord. No. 455]
(a) 
Generally. In the drilling for oil and gas or other hydrocarbons and the production thereof, the permittee under the provisions of this chapter shall use every precaution, equipment and material in accordance with approved methods of operation, drilling and production to stop and prevent waste of oil, gas or other hydrocarbons and to protect residents and properties of the City, and shall equip and operate the well and all allied equipment therewith with equipment of standard design and quality as are in general use in the petroleum industry, and all such equipment shall be installed, maintained and inspected in accordance with standard drilling, producing and operating practices.
(b) 
Enclosure. From the time of placing any equipment, derricks, riggings or other drilling or pumping equipment or supplies on the drill site, each location of the well shall be completely surrounded by fencing in order to completely surround and enclose the drilling and pumping operation. Such fence shall be of woven wire of not less than 14 gauge with mesh of not more than four inches, shall be supported by steel posts and shall be at least six feet high. No person shall enter within such an enclosed well location unless authorized by the permittee or an agent of such permittee.
(c) 
Flares. All flares erected within the City shall be at least 300 feet from any building or structure, shall extend at least 20 feet above the surface of the ground, and shall be secured by guy wires.
(d) 
Slush pits, etc. In all cases where an oil and gas well is being drilled in a residentially zoned area, the drilling operator shall use a portable slush pit, and all slush and waste shall be deposited therein and from time to time removed beyond the corporate limits of the City for disposal. No open pits for the disposal of slush, brine or salt water shall be permitted at any time after the completion of the drilling operation in any area in the City.
(e) 
Water pollution control. All brine or salt water produced in the drilling for or production of oil shall, under the supervision of the Supervisor of Wells of the state, be returned to some underground formation or otherwise disposed of in order that such brine, salt water or refuse shall not do damage to any fresh water, wells, lakes, ponds or rivers.
(f) 
Cleanliness of drill site; storing machinery, etc., at site; oil tanks to be painted or galvanized. The persons in charge of the producing operations of a well shall keep the area within the fenced enclosure around such well free of all trash and inflammable substances not necessary in the operation of such well and shall keep the weeds cut and otherwise keep the location in a clean and orderly condition. Machinery and equipment not used in the operation of such well shall not be stored or left in such enclosure. The exterior surface of all oil tanks shall be either painted or galvanized.
(g) 
Commencing drill stem flow or swab testing restricted; tests required before bringing in well. It shall be unlawful to commence drill stem flow or swab testing of any well from sundown until sunrise or during any period when atmospheric conditions will not allow the ordinary dissipation of gas. Before bringing in a well, all of the control devices, including master gates and safety valves, shall be tested and shall be in good working order.
[Ord. No. 455]
(a) 
Generally. All equipment and materials used in the drilling of wells for the discovery of oil, gas and hydrocarbons shall be modern and shall be kept in good working condition at all times. All drilling rigs shall be of the rotary type only to the production stage of such well, and thereafter cable-tool equipment may be used for swabbing, cleaning and completion of such well. All drilling rigs shall be anchored or secured in accordance with good drilling practices.
(b) 
Blow-out preventers. All drilling rigs or derricks shall be equipped with a blow-out preventer properly installed and tested before drilling into any formation likely to contain oil or gas. Such blow-out preventers shall be pressure tested prior to drilling operations and shall be tested periodically every eight hour working shift thereafter.
(c) 
When master-gate and lubricators required. When cable-tool equipment shall be used for completion of the well, it shall be equipped with master-gate, and the rig shall be equipped with lubricators while the well is being tested, swabbed or bailed. Such master-gate shall have a remote control located at least 20 feet from the well bore.
(d) 
Separators for wells producing both oil and gas; shutting down in event of accumulation of explosive gas mixture. Every well producing both oil and gas shall be equipped with or connected to a separator with a capacity sufficient to prevent the escape of oil through the vent line. Whenever an explosive mixture of gas shall accumulate around the well, the chief of the Fire Department of the City may require that the well be shut in until such mixture is dissipated.
(e) 
Oil storage tanks. All tanks for the storage of oil shall be placed in a pit and encircled by an embankment and fire wall of such size that the space between the tank and the embankment and fire wall shall have a volumetric capacity 1 1/2 times that of the tank. No such tank shall be located less than 330 feet from any building.
(f) 
Depth of pipe lines; permits for excavations under streets, etc.; construction of private pipe line for unmetered natural gas. All pipes or pipe lines leading to or from a well location shall be buried underground a minimum depth of 24 inches below the normal surface of the ground. No excavation or opening in or under any street, alley or public place shall be made without first obtaining a permit as required by Section 32-5. No private pipe line for the transmission of unmetered natural gas shall be constructed without first obtaining the approval of such installation by the Superintendent of Utilities of the City.
(g) 
Well head connections for producing wells. All producing wells shall be properly equipped with well head connections designed for a minimum working pressure in excess of the pressure encountered in the producing formation and shall be designed for a minimum testing pressure of double the minimum working pressure.
(h) 
Pumping units and electrical switches and outlets. All pumping units installed shall be electrically operated and so enclosed as to exclude the public therefrom. All electrical switches and electrical outlets shall be enclosed and be explosion-proof.
[Ord. No. 455]
(a) 
Supervision of plugging, etc. Upon the discontinuance of the drilling operations or the production of any oil or gas from any working well, such well shall be abandoned and plugged under the supervision of the Supervisor of Wells of the state.
(b) 
When plugging to commence, etc. All plugging operations on all dry or abandoned wells shall commence within 30 days after drilling production operations shall have ceased and shall be carried through forthwith to completion.
(c) 
Filling pits and cellars, restoration of surface, removal of equipment, etc. Within 30 days after the plugging of any well, the permittee shall fill all pits and cellars with dirt and level off the surface and restore the same as nearly as possible to its condition prior to the commencement of drilling operations. All equipment shall be removed from the location promptly and all machinery, tanks, pipes and tools shall be transported from the well site and the embankments shall be leveled and the surface of the land restored to its former condition.
(d) 
Accumulation of slush, removal of debris, etc. The permittee shall not permit any undue accumulation of slush, salt water, oil or any other offensive or dangerous substances and upon the completion of the well shall remove and eliminate all debris and conditions contributing to the hazard of fire or water pollution.
[Ord. No. 455]
Each violation of this chapter, whether or not denominated as unlawful or an offense, is hereby declared to be a public nuisance per se and may be abated by appropriate proceedings as provided by law.