[HISTORY: Adopted by the City Council of the City of Columbia
as Ch. 5.28 of the 1997 Code. Amendments noted where applicable.]
It is unlawful for any person, firm or corporation to drill
or commence to drill or to operate a well for oil and gas within the
corporate limits of the City, or to work upon or assist in any way
in the drilling or operating or the prosecution of work upon any such
well, without a permit for such well and for the development and operation
thereof having first being secured in accordance with the terms of
this chapter.
Within the corporate limits of the City, there shall be issued
only one permit for one well in each one-half platted block or one
well in any parcel or combination of parcels of land equal in area
to no less than one-half of the entire area of the block in which
such parcel or parcels of land are situated; provided, however, that
in any platted block containing more than four acres, a permit may
be granted for an additional well in such block for any additional
area containing no less than two acres; and provided, further, that
where any block, as platted, is divided by alleys into more than two
parts, then a permit for one well may be granted for each and every
part of such block; and provided, further, that where more than one
well has been heretofore drilled or commenced in any one-half block,
then an additional permit or permits may be issued for the drilling
of a well or wells to offset the well or wells heretofore so drilled
or commenced; provided that such offset well or wells shall be located
in the same block as the well or wells to be offset, or within 200
feet of such block; and provided, further, that where more than one
well shall be drilled beyond the City limits line, and within 400
feet thereof, on land either immediately adjacent to any platted block
or unplatted tract within the City, or separated therefrom by a street,
alley or highway, then a permit may be issued for the drilling of
an additional well in said block or tract, at a location not more
than 200 feet from the City limits line, to offset the additional
well or wells that shall be so drilled on said land situated outside
the City; and provided, further, that where more than one producing
oil or gas sand shall be found in any block, a permit may be granted
for one well to each of such sands for the same area or areas as hereinabove
defined.
The City Council shall have the right, power and authority to
refuse any application for a permit where, by reason of the location
of the proposed well and the character and value of the permanent
improvements already erected on the block or area of land in question,
or adjacent thereto, and the use to which the land and surroundings
are adapted, or for sanitary reasons, the drilling of an oil or gas
well would, in the judgment of the City Council, be a serious detriment
to the City and the welfare of its inhabitants.
In case a permit for the drilling of a well is issued to a person,
firm or corporation not holding oil and gas leases or drilling contracts
with the owners of all lots within a one-half block or area of land
equal thereto, as defined in the section setting forth regulations
covering the granting of permits in this chapter, then it shall be
a condition of the permit that the permittee, his or its assigns and
successors shall deliver to the credit of each of such owners whose
land shall not be under lease to such permittee, free of cost in the
pipeline to which the well may be connected, a pro-rata share in the
royalty of all oil produced and saved from such well, equal to no
less than one-eighth royalty, in the proportion that the area of land
so owned bears to the entire area of such one-half block or area of
land, exclusive of the streets and alleys, and a like proportion of
the proceeds of gas and casing head gas produced from the well and
used off the premises if such owner or owners desire to have and take
the same.
A.
In case there are applications by more than one applicant filed with
the City Clerk and pending at the same time for permits to drill in
any one-half block, or area of land equal thereto, as defined in the
section setting forth regulations covering the granting of permits,
in this chapter, that application shall be granted, if otherwise sufficient,
which shall be made by the person, firm or corporation holding the
greater area of the land in the one-half block or area, by lease or
other contract with the owner or owners permitting the drilling thereon
for oil and gas; but in case a permit is issued to a person, firm
or corporation which does not hold a lease or other valid drilling
contract in writing from the owners of all the land within the one-half
block or area of land equal thereto, then any owner of the unleased
land in the one-half block or area equal thereto, and any person,
firm or corporation other than the permittee holding oil and gas leases
on land in the one-half block or area equal thereto, shall have the
right to share in the ownership and benefits of such oil and gas wells
in the proportion that the area of his or its land or lease bears
to the area of the one-half block, or area equal thereto, exclusive
of streets and alleys; provided that, within 10 days from the date
of the issuance of such permit, he or it shall file with the City
Clerk his or its election, in writing, to pay to the holder of the
permit, or his or its assigns, a like proportion of the total cost
and expense of drilling, completing and operating a well and shall,
within that time, make and file with the City Clerk a bond with an
authorized surety company as surety, and in an amount representing
that portion of the estimated maximum cost of the well that the area
of ground held or owned under lease by the principal bears to the
whole area of the one-half block or area equal thereto, conditioned
that the principal in the bond pay to the permittee, and his assigns,
such proportion of the cost of drilling and operating of the well
from time to time as required in the operations, such bond to be approved
by the Mayor and held by the City Clerk for the benefit of all persons
interested.
B.
If an application be found by the Council to comply in all respects
with the terms of this chapter, the City Council shall be authorized
to issue a permit for the drilling of the well applied for. The permit
shall specify the particular location of the well to be drilled and
it is unlawful for the permittee to drill elsewhere in the block.
In case such permit is not granted, the inspection fee filed with
the application shall be returned or refunded to the applicant.
No permit shall be granted or issued for the drilling of a well
except upon ground held by the applicant under an oil and gas lease
or drilling contract from the owner, giving the owner's permission
to drill the well; and when a permit shall have been issued, the same
shall terminate and become inoperative without any action on the part
of the Council unless, within 30 days from the date of issue, actual
drilling of the well shall have commenced; and the cessation for a
like period of the drilling operations, or the cessation of production
of oil or gas from the well after production shall have commenced,
shall operate or terminate and cancel the permit, and the well shall
be considered as abandoned for all purposes of this chapter, and it
shall be unlawful thereafter to continue the operation or drilling
of such well without the issuance of another permit.
Every person, firm or corporation securing a permit under the
provisions of this chapter for the drilling and operating of any well
or wells shall pay to the owner or owners of any buildings, improvements,
goods or chattels so located that the insurance rates or premium have
been increased by reason of maintaining or operating of such well
or wells any extra cost of fire insurance on such property caused
by the operations carried on under and by virtue of any such permit,
and shall pay also any and all damages suffered by any person as to
property within the City from fire, over and above insurance collected
thereon, or damages from oil, gas or water caused by originating from
the operation connected with such well or wells.
It is unlawful to drill any oil or gas well within any of the
streets or alleys of the City, or to block or encumber or close up
any street or alley in any drilling or production operation, except
through a special permit by order of the City Council, and then only
temporarily.
No tanks or other facilities for the storage of oil produced
from any well or wells within the City shall be kept, erected or maintained
within the limits of the City having a capacity in excess of 500 barrels;
and no wooden tanks for such purpose shall be erected or maintained
within the City.
Neither this chapter nor any permit issued hereunder shall be
interpreted to grant any right or license to the permittee to enter
upon or occupy in any respect, in drilling or production operations,
any land, except upon the written consent of the owners; nor shall
it limit or prevent the free right of any property owner to contract
for the amount of royalties to be paid with respect to his own land
or for damages, rights or privileges with respect thereto.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
In operating by virtue of any permit issued under this chapter
or amendments thereto, all oil, gas or water produced or arising from
such operations shall be piped or otherwise conveyed or removed from
the corporate limits of the City, except in connection with the ordinary
use of a slush pit. No waste or sludge water shall be permitted to
empty into any sanitary sewer. All excavations in or use of the streets
or alleys under such operations shall be under the direction of the
Department of Public Works, and done without obstruction of the streets,
or without cost or expense to the City.
Within 30 days after any oil or gas well within the limits of
the City shall have been completed for production of oil or gas, or
within 30 days after the same shall have been completed in cases where
the same is abandoned for the reason that a dry hole is found, the
slush pit shall be filled with dirt and leveled off.
Any officer or employee of the City, designated for that purpose,
shall have the right and privilege at any time to enter upon the premises
covered by any permits issued under this chapter, for the purpose
of making inspections to determine if the requirements of this chapter
are being complied with, or the requirements of any other code of
the City relating to the health and safety of persons or property
within the City.
A.
Any person, firm or corporation desiring to obtain a permit for the
drilling or operating of any oil or gas well within the City shall
make written application therefor to the City Council and file the
same with the City Clerk, which application shall be accompanied by
a deposit in an amount set from time to time by City ordinance, payable
in cash or by certified check for said amount as an inspection fee,
in case the permit is granted. All such applications shall be made
upon forms prescribed and provided for such purpose by the City, and
each such application shall be duly signed, and executed by the applicant
and shall be verified under oath by the applicant or by some person
duly authorized on behalf of the applicant.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
B.
A separate application shall be made and filed as to each well proposed
to be drilled, and every such application shall, among other things,
show the lot and particular point where the proposed well is to be
located, and in addition shall have attached to it or be accompanied
by copies of all oil and gas leases or other drilling contracts which
the applicant may have with the owners of land within the block and
also a map covering the platted block or the tract of land where the
proposed well is to be located, indicating thereon the lots or land
covered by such leases or contracts and the particular point where
such well is to be drilled.
C.
The application shall also be accompanied by, or show that the applicant
has on file in the office of the City Clerk, a duly executed and approved
bond given by the applicant as principal and a surety company authorized
to do business in the State of Illinois, as surety, running to the
City for the benefit of the City and all persons, firms and corporations
concerned, duly conditioned that if the permit be granted, the applicant
and his or its assigns will comply with the terms and conditions of
this chapter in the drilling of the well, as herein provided; that
the applicant will restore the streets and sidewalks and other public
places of the City which may be disturbed in the operations to their
former condition, will clear the block and lots of all litter, machinery,
derricks, buildings, oil and other substance erected, used or allowed
in the drilling or producing operations, whenever the well shall be
abandoned or the operations thereof shall be discontinued; and will
pay the City for any and all damages done to the trees, sidewalks,
paving or other public property, and will also pay to the City any
increase in cost of insurance on any building, improvements, goods
or chattels owned by the City and so located that the insurance rates
or premium will be increased by reason of the drilling, maintaining
or operating of such well or wells; and will hold the City harmless
from any and all liability growing out of the granting of such permit.
Such bond shall be in the sum of $5,000 and shall be approved by the
Mayor and filed with the City Clerk, and shall be kept in force and
effect as long as such well or wells are continued in operation.
