[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 or her
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; 7-21-2021 by Ord. No. 1798]
(a)
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 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.
(b)
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 or her 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.
(c)
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
or her 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.
(d)
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,
not 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.
(e)
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.
(f)
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 Chapter 39 - Unified Development Ordinance (UDO) 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 or her 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.
[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.
