The purpose of this chapter is to provide for
the regulation of, acquisition of and development of natural gas supplies
in such a manner that will protect the public health, safety and welfare
of the residents of the Town of Lancaster.
Unless the context requires a different meaning,
the words defined below shall have the following meanings when used
in this chapter.
BLOWOUT
An uncontrolled sudden or violent escape of gas, as from
a drilling well, when high-formation pressure is encountered.
BLOWOUT PREVENTER
A device attached immediately above the casing which can
be closed and which will shut off the hole should a blowout occur.
DRILLING COMPANY
The person who constructs the well and conducts the drilling
operations.
DRILLING SITE
Includes the location of the drill hole for the gas well
and all equipment and appurtenances, including any ponds, to be used
in connection with the drilling operations for the gas well.
GAS
All natural gas and manufactured, mixed and by-product gas
and all other hydrocarbons not herein defined as oil or condensate.
LEASEHOLDER
The person who has been granted the rights by the owner to
drill into and produce or extract the gas from the premises.
OWNER
The owner of the legal title to the premises from which the
gas is to be extracted.
PERSON
Includes any natural person, corporation, association, partnership,
receiver, trustee, executor, administrator, guardian, fiduciary or
other representative of any kind. The masculine gender used in referring
to a person includes the feminine and the neuter genders.
STRUCTURE
Includes, but shall not be limited to, any building, device,
equipment, valves or piping temporarily or permanently erected at
the drilling site.
WELL
The hole which is drilled or put down for the purpose of
mining for the production of natural gas. Where reference is made
anywhere to the prohibition of the construction of a gas well within
certain distances of specified places, such distances shall be measured
from the center of the drill hole except where otherwise provided.
Gas well shall be permitted in the Town of Lancaster,
whether owned by a public utility or otherwise; provided, however,
that it shall be unlawful to commence drilling operations or to carry
on drilling operations for gas in any manner unless there has been
compliance with the provisions of this chapter, as follows:
A. Permit required.
No gas well drilling operations or construction or excavation for
a gas well site nor the erection of drilling equipment or the placing
or moving of equipment to be used for construction of a gas well site
on any land shall be commenced without a permit being first issued
by the Town Board of the Town of Lancaster, after review by the Building
Inspector or such other individual or agency as the Town Board may
designate.
B. Application for
permit. An application for a permit from the Town of Lancaster shall
be made to the Town Board of the Town of Lancaster or such other individual
or agency as the Board may designate from time to time. Said application
form shall require the name and address of the leaseholder, the name
and address of drilling company and, if any of the foregoing is a
corporation or partnership, the names and addresses of the partners,
president and treasurer thereof and the name and address of the agent
or person in charge of the drilling operations. Submitted with, attached
to and made a part of the application shall be a survey made by a
surveyor or engineer licensed by the State of New York, showing by
metes and bounds the premises to be drilled on, the proposed location
of the well hole and any appurtenances to the gas well, including
ponds, and the distance, in feet, of the said proposed location to
adjoining property owners and to all buildings, structures, places
of assembly, public recreational facilities, storage or repair areas,
places of public travel or occupancy, rights-of-way of any public
road or highway, rights-of-way of any public utility and streams,
creeks, rivers or other bodies of water which are within 300 feet
of the gas well site. The survey shall also show the names of all
adjacent property owners and the zoning classification of these properties.
If there are no buildings, roads and so forth within 300 feet of the
gas well site or appurtenances, including ponds, then the surveyor
or engineer shall indicate that fact on the survey.
C. Drilling permit.
A copy of the drilling permit issued by the Bureau of Mineral Resources
of the New York State Department of Environmental Conservation or
its successor shall be submitted to the Town Board of the Town of
Lancaster, together with the application for a permit.
D. Permit fee. The
application also must be accompanied by a fee of $150 in the form
of a check or money order made payable to the Town of Lancaster.
E. The application
for the permit shall be made and signed by the leaseholder and the
drilling company, with the written understanding that they have read
this chapter and understand that any violation of this chapter is
unlawful and shall constitute reason for immediate revocation of the
permit and, further, shall be cause for immediately enjoining and
ceasing all drilling operations.
F. The Town Board
of the Town of Lancaster, or such other individual or agency as the
Board may designate, may require such other information as shall be
deemed necessary for the proper enforcement of this chapter.
G. Bond required.
(1) The leaseholder
of the natural gas rights of the premises upon which the gas well
is to be drilled and, if there is no leaseholder, the owner of the
premises shall obtain and deliver to the Town Board of the Town of
Lancaster a license and permit bond in the amount of $10,000 as principal
in favor of the Town of Lancaster as obligee, which bond shall insure
compliance with all parts and sections of this chapter.
(2) The license
and permit bond shall be issued by a bonding company licensed to do
business in the State of New York and shall be submitted to the Town
Board of the Town of Lancaster with the application for the drilling
permit. Such bond shall be conditioned upon compliance with all provisions
of this chapter, and the bond shall be made for a period of not less
than one year. A new bond or an extension or renewal of the original
shall be furnished at the expiration of any existing bond and shall
remain in effect as long thereafter as the derrick, derrick foundations,
tanks, machinery, pipe or other equipment or improvements placed on
the premises to drill or operate the well, including slush pots, sump
pumps and ponds, are permitted to remain on the premises.
(3) If any bond
required herein lapses or becomes void for any reason, the permit
issued under this chapter shall immediately become inoperative and
void until a new bond is provided or the existing bond is reinstated
in full force. All bonds shall be subject to the approval of the Town
Attorney as to form and sufficiency.
H. The applicant
shall also submit to the Town Board of the Town of Lancaster or such
other individual or agency as the Board may designate evidence in
the form of certificates of insurance that the drilling company maintains
and is carrying public liability and property damage insurance covering
all drilling operations conducted by the drilling company in an amount
of not less than $200,000.
I. Upon determination that the application is in order, that the proposed location of the gas well site complies with the restrictions set forth in §
198-4, that a state permit has been issued, that a permit and license bond have been submitted and the fee has been paid and that the necessary insurance is being maintained by the drilling company, the Town Board or such other individual or agency as the Board may designate shall issue a permit to the leaseholder and, if there is no leaseholder, to the owner of the premises.
J. Expiration of
permit. Any permit issued upon an application for same shall expire
one year from the date of issuance.
K. Renewal of permit.
(1) Any permit
holder shall apply for renewal of same at the Town Clerk's office
of the Town of Lancaster, by filing a renewal application as provided.
Any substantial or material changes in the ownership or operation
of the well(s) or the premises shall be set out in the renewal application.
(2) The application
for renewal shall be made at least 60 days prior to the expiration
date of the existing permit.
(3) The Town Clerk
of the Town of Lancaster, upon receipt of any said renewal application,
shall forward same to the Town Board of the Town of Lancaster for
approval thereof before the renewal permit shall be issued by said
Clerk.
Following completion of the drilling of any
gas well, all land surfaces shall be graded to the original contour
and, where necessary, seeded with a suitable ground cover, fertilized,
mulched and maintained, all in accordance with acceptable, applicable
standards, in order that the property be restored as nearly as possible
to the same surface conditions which existed prior to commencement
of the drilling operation. Such restoration must be accomplished within
30 days after removal of the drilling rig and apparatus. If weather
or further construction prohibits or impairs restoration within the
aforementioned time limit, the drilling company may submit a request
to the Building Inspector for an extension of time to complete permanent
restoration. The Building Inspector may extend the time for completion
up to three months from the date of the request to so extend.
For purposes of assessing the value of any gas
well as licensed hereunder, the leaseholder shall annually provide
the Assessor of the Town of Lancaster with the production records
of each well for each and every calendar year at the same time that
such records are filed with the Public Service Commission (P.S.C.).
The terms and conditions of this chapter dealing with the maintenance and operation of drilling facilities, shall, where applicable, apply to drilling sites and/or facilities operational prior to the effective date of this chapter. Such terms and conditions shall include but shall not be limited to the safeguards set forth herein, together with the fencing requirements contained in §
198-7L; provided, however, that the time period for the installation of any such security fence, as required by the above-mentioned section, relative to existing drilling facilities, shall be for a period of 80 days after the effective date of this chapter.
Upon determination that the application is in
order and conforms to the provisions of this chapter and that a state
permit has been issued and that a permit and license bond has been
submitted as provided by this chapter, the Building Inspector shall
issue a permit to the leaseholder or to the owner of the premises.
In addition to being subject to any other legal
or equitable remedies, the leaseholder of the premises upon which
any violation of the provisions of this chapter has been committed
or shall exist and the general agent, drilling company, owner, contractor
or any other person who knowingly commits, takes part in or assists
in any such violation or who maintains any gas well or structure on
the premises in or upon which any such violation shall exist shall
be guilty of a violation of this chapter and shall be liable, upon
conviction thereof, to a fine or penalty not exceeding $250 or 15
days in jail, or both. Each operating day of drilling in violation
shall be construed to be a separate offense.
If any other ordinance, local law, code or state
law, rule or regulation now in effect or hereafter enacted is more
restrictive than this chapter or imposes higher standards or requirements
than the provisions of this chapter, then the provisions of the higher
and more restrictive requirement shall govern.
If any clause, sentence, paragraph, section
or part of this chapter shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair
or invalidate the remainder thereof, but shall be confined in its
operation to the clause, sentence, paragraph, section or part thereof
directly involved in the controversy in which such judgment shall
have been rendered.
This chapter shall take effect after filing
and publication as required by law.