The exploration, development and production of hydrocarbons
in the city is an activity which necessitates reasonable regulation
to ensure that all property owners, mineral and otherwise, have the
right to peaceably enjoy their property and its benefits and revenues.
It is hereby declared to be the purpose of this article to establish
reasonable and uniform limitations, safeguards and regulations for
present and future operations related to the exploring, drilling,
developing, producing, transporting and storing of hydrocarbons and
other substances produced in association with hydrocarbons within
the city to protect the health, safety and general welfare of the
public; minimize the potential impact to property and mineral rights
owners; protect the quality of the environment; and encourage the
orderly production of available mineral resources.
(Ordinance 2003-02-088, sec. 1,
adopted 4/22/03)
All technical industry words or phrases related to the drilling
and production of gas wells not specifically defined in this article
shall have the meanings customarily attributable thereto by prudent
and reasonable gas industry operators. 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:
As defined by the state railroad commission, and includes
the plugging of the well and the restoration of any well site as required
by this article.
means the all-encompassing noise level associated with a
given environment, being a composite of sounds from all sources at
the location, constituting the normal or existing level of environmental
noise at a given location.
means a mechanical, hydraulic, pneumatic or other device
or combination of such devices secured to the top of a well casing,
including valves, fittings and control mechanisms connected therewith,
which can be closed around the drill pipe, or other tubular goods
which completely close the top of the casing and are designed for
preventing blowouts.
means any structure used or intended for supporting or sheltering
any use or occupancy. The term "building" shall be construed as if
followed by the words "or portions thereof."
means an electrochemical corrosion control technique accomplished
by applying a direct current to the structure that causes the structure
potential to change from the corrosion potential to a protective potential
in the immunity region. The required cathodic protection current is
supplied by sacrificial anode materials or by an impressed current
system.
means the time when the blowout protectors (BOPs) are removed
or otherwise rendered inoperable and/or there are no further activities
to trip drill pipe, casing or insert other tools into or out of the
hole.
means the city attorney of the City of New Fairview.
means those pipelines within the city that under federal
and state rules and regulations are not exempt from city regulations
and ordinances regarding mapping, inventorying, locating or relocating
of pipelines, including, but not limited to, pipelines over, under,
along or across a public street or alley, pipelines from the well
to the first point of custody transfer or in private residential areas
within the boundaries of the city.
means a system utilized while drilling so that reserve pits
are not used and instead steel bins are used to collect all drilling
waste.
means the reflection of either "spud well" or "nipple up"
the blowout protectors (BOPs) by the drilling contractors on the IADC-API
daily drilling report form maintained by the operator's tool pusher
on the pad site.
means the state railroad commission and all state rules.
means the date the work is completed for the drilling, re-drilling
or reworking and the crew is released by completing their work or
contract or by their employer.
means the period from 6:00 a.m. to 7:00 p.m.
means a unit for measuring the intensity of a sound/noise
and is equal to ten times the logarithm to the base ten of the ratio
of the measured sound pressure squared to a reference pressure which
is 20 micropascals.
means those activities when the drilling has ceased and the
rig equipment and related pad site equipment is being dismantled for
the purpose of moving off the drill pad site.
means any portable framework, tower, mast and/or structure
which is required or used in connection with drilling or reworking
a well for the production of gas.
means digging or boring a new well for the purpose of exploring
for, developing or producing gas or other hydrocarbons, or for the
purpose of injecting gas, water or any other fluid or substance into
the earth.
means the derrick, together with all parts of and appurtenances
to such structure, and every piece of apparatus, machinery or equipment
used or erected or maintained for use in connection with drilling.
means drilling with drill pipe and bit, running casing, circulating
mud and fluids, tripping tools and setting production casing/tubing.
means the premises used during the drilling or reworking
of a well or wells located there and subsequent life of a well or
wells or any associated operation.
means geologic or geophysical activities, including seismic
surveys, related to the search for hydrocarbons or other subsurface
hydrocarbons.
means any state or federal approved fire apparatus.
means any fluid, either combustible or noncombustible, which
is produced in a natural state from the earth and which maintains
a gaseous or rarefied state at a standard temperature and pressure
conditions and/or the gaseous components or vapors occurring in or
derived from petroleum or natural hydrocarbons.
means any well drilled, to be drilled, or used for the intended
or actual production of natural hydrocarbons.
means the hydrocarbons inspector designated by the city.
means any liquid hydrocarbons, regardless of specific gravity,
capable of being produced from any well in liquid form at the well
by ordinary production methods and which is not the result of condensation
of hydrocarbons after it leaves the reservoir and is thereby defined
as condensate.
means any well drilled, to be drilled, or used for the intended
or actual production of liquid petroleum or petroleum products, or
for the intended or actual disposal of waste liquids, including solutions
and liquids containing solids in suspension, produced from any such
well.
means the area used for development and production and all
operational activities associated with hydrocarbons after drilling
activities are complete.
means, for each well, the person listed on the railroad commission
Form W-1 or Form P-4 for a hydrocarbons well that is, or will be,
actually in charge and in control of drilling, maintaining, operating,
pumping or controlling any well, including, without limitation, a
unit operator. If the operator, as herein defined, is not the lessee
under a hydrocarbons lease of any premises affected by the provisions
of this article, then such lessee shall also be deemed to be an operator.
In the event that there is no hydrocarbons lease relating to any premises
affected by this article, the owner of the fee mineral estate in the
premises shall deemed an operator.
means both the singular and the plural and means a natural
person, corporation, association, guardian, partnership, receiver,
trustee, administrator, executor, and fiduciary or representative
of any kind.
means a house, duplex, apartment, townhouse, condominium,
mobile home or other building designed for dwelling purposes, including
those for which a building permit has been issued on the date the
application for a hydrocarbons well permit is filed with the city
hall representative/inspector which was approved/designated by the
city council.
means all buildings used or designed to and intended to be
used for the purpose of assembly of persons for such purposes as deliberation,
entertainment, amusement, or health care. Public buildings include,
but shall not be limited to, theaters, assembly halls, auditoriums,
armories, mortuary chapels, dance halls, exhibition halls, museums,
gymnasiums, bowling lanes, libraries, skating rinks, courtrooms, restaurants,
and hospitals.
means any land area dedicated to and/or maintained by the
city for traditional park-like recreational purposes, but shall not
include privately owned amusement parks or privately owned or privately
managed golf courses.
means re-completion of an existing well by deepening or side
tract [sidetrack] operations extending more than one hundred fifty
(150) feet from the existing well bore.
means any building in which persons regularly assemble for
religious worship and activities intended primarily for purposes connected
with such worship or for propagating a particular form of religious
belief.
mean re-completion of [or] re-entry of an existing well within
the existing bore hole or by deepening or sidetrack operations which
do not extend more than one hundred fifty (150) feet from the existing
well bore, or replacement of well liners or casings.
means public rights-of-way including streets, easements and
other property within the city and which is dedicated to the use and
benefit of the public.
means any public and private, primary and secondary educational
facilities providing education up through and including twelfth grade
level and any licensed day care center, meaning a facility licensed
by the state that provides care, training, education, custody, treatment
or supervision for more than six children under 14 years of age, and
for less than 24 hours per day.
means a permit required if the proposed well is to be located
within six hundred (600) feet of a residence, religious institution,
public building, hospital building, school and public park.
means anything not covered under special permit.
means any street, highway, sidewalk, alley, avenue, recessed
parking area or other public right-of-way, including the entire right-of-way.
means a container, covered or uncovered, used in conjunction
with the drilling or production of hydrocarbons or other hydrocarbons
for holding or storing fluids.
means such person(s) familiar with and educated in the hydrocarbons
industry or the law as it relates to hydrocarbons matters who may
be retained from time to time by the city.
means drilling a well bore with hydrostatic fluid column
less than the anticipated or actual formation pressure as calculated
or measured at the formation depth.
means a hole or holes, bore or bores, to any horizon, formation,
or strata, for the purpose of producing hydrocarbons, liquid hydrocarbon,
brine water, sulphur water, or for use as an injection well for secondary
recovery, disposal or production of hydrocarbons, or other hydrocarbons
from the earth.
(Ordinance 2003-02-088, sec. 2,
adopted 4/22/03; Ordinance adopting
Code)
Every operator of any well shall designate an agent, who is
a resident of the State of Texas, upon whom all orders and notices
provided in this article may be served in person or by registered
mail or certified mail. Every operator so designating such agent shall
within ten (10) days notify the city secretary in writing of any change
in such agent or such mailing address unless operations within the
city are discontinued.
(Ordinance 2003-02-088, sec. 3,
adopted 4/22/03)
(a)
Permit required.
A person wanting to engage in and operate
in hydrocarbons production activities shall apply for and obtain a
hydrocarbons well permit under this article and shall indicate what
type of hydrocarbons well permit is requested. It shall be unlawful
for any person acting either for himself or acting as an agent, employee,
independent contractor, or servant for any person to drill any well,
to assist in any way in the site preparation, re-drilling, fracturing
or operation of any such well or to conduct any related activity related
to the production of hydrocarbons without first obtaining a hydrocarbons
well permit issued by the city in accordance with this article. Such
activities include but are not limited to reworking, initial site
preparation, drilling, operation, construction of rigs or tank batteries,
fracturing and pressurizing. A permit shall not be required for seismic
surveys.
(b)
Permit required for each well; multiple wells on same tract of land.
The operator must apply for and obtain a hydrocarbons well permit
for the drilling, re-drilling, deepening, re-entering, activating
or converting of each well. The operator may apply for and obtain
a "multiple" hydrocarbons well permit for more than one well if multiple
wells are located on the same tract of land. The number of wells requested
shall multiply any applicable fees.
(c)
Re-entering and drilling abandoned well.
A hydrocarbons
well permit shall not constitute authority for the re-entering and
drilling of an abandoned well. An operator shall obtain a new hydrocarbons
well permit in accordance with the provisions of this article if the
operator is re-entering and drilling an abandoned well.
(d)
Rights granted; new or supplemental permit.
When a hydrocarbons
well permit has been issued to the operator for the drilling, re-drilling,
deepening, re-entering, activating or converting of a well, such hydrocarbons
well permit shall constitute sufficient authority for drilling, operation,
production gathering or production maintenance, repair, reworking,
testing, plugging and abandonment of the well and/or any other activity
associated with mineral exploration at the site of such well as relates
to that specific well and the anticipated producing intervals as requested
in the permit application; provided, however, that a new or supplemental
permit shall be obtained before such well may be reworked for purposes
of re-drilling, deepening or converting such well to a depth or use
other than that set forth in the then current permit for such well.
(e)
Notice of proposed activities; fracture stimulation operations.
(1)
Any person who intends to rework a permitted well using a drilling
rig, to fracture stimulate a permitted well after initial completion
or to conduct seismic surveys or other exploration activities shall
give written notice to the city council no less than ten (10) days
before the activities begin. The notice must identify where the activities
will be conducted and must describe the activities in detail, including
whether explosive charges will be used, the duration of the activities
and the time the activities will be conducted.
(2)
The notice must also provide the address and 24-hour phone number
of the person conducting the activities. If requested by the city
council, the person conducting the activities will post a sign 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. If the city council determines that an inspection
by a hydrocarbons inspector is necessary, the operator will pay the
city for the inspection.
(3)
The following requirements shall apply to all fracture stimulation
operations performed on a well within six hundred (600) feet of an
occupied residence:
(A)
At least ten (10) days before operations are commenced, the operator
shall post a sign at the entrance of the well site advising the public
of the date the operations will commence;
(B)
"Flow back" operations to recover fluids used during fracture stimulation
shall be performed during daylight hours only unless the city council
approves such operations during non-daylight hours;
(C)
A watchman shall be required at all times during such operations;
and
(D)
At no time shall the well be allowed to flow or vent directly to
the atmosphere without first directing the flow through separation
equipment or into a portable tank.
(f)
Time limit for commencing drilling.
(1)
A hydrocarbons well permit shall automatically terminate, unless extended, if drilling is not commenced within one hundred eighty (180) days from the date of the issuance of the hydrocarbons well permit. Drilling must commence within one hundred eighty (180) days from the date of the issuance of the hydrocarbons well permit on at least one well under a "blanket permit," as described in subsection (b) of this section, in order to maintain the validity of the hydrocarbons well permit for the multiple wells.
(2)
A hydrocarbons well permit may be extended by the city council for
an additional one hundred eighty (180) [days] upon request by the
operator and proof that the classification of the requested hydrocarbons
well permit for such location has not changed.
(g)
Other permits.
The hydrocarbons well permits required
by this article are in addition to and are not in lieu of any permit
which may be required by any other provision of this code or by any
other governmental agency.
(h)
Existing wells.
No additional hydrocarbons well permit
or filing fees shall be required for:
(i)
Drilling in public park.
No hydrocarbons well permit
shall be issued for any well to be drilled within any public park
without the prior consent of the city council. The city council shall
review the insurance and security requirement on an individual basis
prior to issuing the permit.
(j)
Drilling in floodway.
No hydrocarbons well permit shall
be issued for any well to be drilled within any floodway without prior
consent of the city council.
(k)
Drilling on city-owned property.
No hydrocarbons well
permit shall be issued for any well to be drilled on city-owned property
without the prior consent of the city council.
(l)
Acceptance of regulations.
By acceptance of a hydrocarbons
well permit issued pursuant to this article, the operator expressly
stipulates and agrees to be bound by and comply with the provisions
of this article. The terms of this article shall be deemed to be incorporated
in any hydrocarbons well permit issued pursuant to this article with
the same force and effect as if this article was set forth verbatim
in such hydrocarbons well permit.
(Ordinance 2003-02-088, sec. 4,
adopted 4/22/03)
(a)
Every
application for a hydrocarbons well permit issued pursuant to this
article shall be in writing, signed by the operator, or some person
duly authorized to sign on his behalf, and filed with the city.
(b)
Every application shall be accompanied by a permit fee as set forth in the fee schedule in appendix A of this code. The application shall include the following information:
(1)
The date of the application and type of hydrocarbons well permit
requested.
(2)
An accurate legal description of the lease property to be used for
the hydrocarbons operation, the parcel and production unit and the
name of the geologic formation as used by the commission. Property
recorded by plat should reference subdivision, block and lot number.
(3)
Map showing the proposed transportation route and road for equipment,
chemicals or waste products used or produced by the hydrocarbons operation.
(4)
Proposed well name.
(5)
Surface owner name(s) and address(es) of the lease property.
(6)
Mineral lessee name and address.
(7)
Operator/applicant name and address and, if the operator is a corporation,
the state of incorporation, and if the operator is a partnership,
the names and addresses of the general partners.
(8)
Name and address of the individual designated to receive notice.
(9)
Name of representative with supervisory authority over all hydrocarbons
operation site activities and a 24-hour phone number.
(10)
Location and description of all improvements and structures within
six hundred (600) feet.
(11)
Owner and address of each parcel of property within six hundred (600)
feet.
(12)
A site plan of the proposed operation site showing the location of
all improvements and equipment, including the location of the proposed
well(s) and other facilities, including, but not limited to, tanks,
pipelines, compressors, separators and storage sheds.
(13)
The name, address and 24-hour phone number of the person to be notified
in case of an emergency.
(14)
The exact and correct acreage and number of wells, if applicable,
included in the hydrocarbons well permit application.
(15)
Copies of all reports required by the commission.
(16)
A signed road maintenance agreement supplied by the city that provides
that the operator shall repair, at his own expense, any damage to
roads, streets, or highways caused by the use of heavy vehicles for
any activity associated with the preparation, drilling, production,
and operation of hydrocarbons wells.
(17)
A description of public utilities required during drilling and operation.
(18)
A description of water source to be used during drilling.
(19)
A copy of the approved commission permit to drill together with attachments
and survey plats which are applicable to the drill and operation sites.
(20)
The projected depth of the well and the depth at which the slant
or horizontal portion (if applicable) of the well will begin along
with the proposed vertical and horizontal plan view of the slant or
horizontal well bore path (if such are not shown on the commission
permit).
(21)
A copy of the stormwater pollution prevention plan if required by
the Environmental Protection Agency. A copy of the notice of intent
shall be submitted to the city seven (7) days prior to the commencement
of any on-site activity.
(22)
A copy of the determination by the state commission on environmental
quality of the depth of usable quality groundwater.
(23)
Evidence of the insurance and security requirement under this article.
(24)
A statement, under oath, signed by the operator, or designated representative,
that the information submitted with the application is, to the best
knowledge and belief of the operator or designated representative,
true and correct.
(25)
All required application and hydrocarbons well permit fees.
(Ordinance 2003-02-088, sec. 5,
adopted 4/22/03; Ordinance adopting
Code)
(a)
Special hydrocarbons well permit.
(1)
Applicability.
A special hydrocarbons well permit shall
be required if the proposed well is to be located within six hundred
(600) feet of a residence, religious institution, public building,
hospital building, school or public park. This provision applies to
any residence, religious institution, public building, hospital building,
school or public park for which a building permit has been issued
on the date the application for permit is filed with the city.
(A)
Measurement of distance.
For the purpose of a special
hydrocarbons well permit the measurement of the six hundred (600)
foot distance shall be made from the well bore, in a straight line,
without regard to intervening structures or objects, to the closest
exterior point of the building.
(B)
Posting of sign.
At least ten (10) days prior to the
date of filing with the city an application for a hydrocarbons well
permit under this article, the operator shall erect at least one (1)
sign, no less than three feet by three feet, upon the premises upon
which a hydrocarbons well permit has been requested. Where possible,
the sign or signs shall be located in a conspicuous place or places
upon the property at a point or points nearest any right-of-way, street,
roadway or public thoroughfare adjacent to such property.
(i)
The sign(s) shall substantially indicate that a hydrocarbons
well permit to drill for hydrocarbons has been requested and shall
further set forth that additional information can be acquired by telephoning
the operator at the number indicated on the sign.
(ii)
The continued maintenance of any such sign(s) shall not be deemed
a condition precedent to the holding of any public hearing or to any
other official action concerning this article.
(iii)
Any sign(s) shall be removed subsequent to final action by the
city council.
(2)
Criteria for approval.
The city council shall review
the application and any other related information. The city council
shall consider the following in deciding whether to grant a hydrocarbons
well permit:
(A)
Whether the operations proposed are reasonable under the circumstances
and conditions prevailing in the area considering the particular location
and the character of the improvements located there;
(B)
Whether the drilling of such wells would conflict with the orderly
growth and development of the city;
(C)
Whether there are other alternative well site locations;
(D)
Whether the operations proposed are consistent with the health, safety
and welfare of the public when and if conducted in accordance with
the hydrocarbons well permit conditions to be imposed;
(E)
Whether there is accessible access for the city fire personnel and
firefighting equipment; and
(F)
Whether the impact upon the adjacent property and the general public
by operations conducted in compliance with the hydrocarbons well permit
conditions are reasonable and justified, balancing the following factors:
(G)
No drilling for hydrocarbons shall be conducted within one thousand
(1,000) feet of Highway 287, FM 407 and County Road 2264.
(3)
Landscaping.
Landscaping as determined by the city council
at the time of application.
(4)
Fencing for special hydrocarbons well permit.
Gates requirements and other fencing requirements as outlined in section 5.04.013 of this article shall also be required.
(5)
Vehicle routes for special hydrocarbons well permit.
Vehicles associated with drilling and/or production shall adhere
to all city codes and ordinances unless entering into road maintenance
agreement. The vehicles shall be operated on a truck route wherever
capable of being used; they shall be operated on a commercial delivery
route means [sic] any street or highway so designated by the city
council for the use by any commercial motor vehicle, truck-tractor,
trailer, semi-trailer, or any combination thereof.
(6)
Noise restrictions for special hydrocarbons well permit.
(A)
No drilling, fracing, producing or other operations shall produce
a sound level greater than 90 dB(A) when measured at a distance of
five hundred (500) feet from the production equipment in question.
The noise level shall be the average of sound level meter readings
taken consecutively at any given time from four (4) or more diametrically
opposite positions, four (4) feet above ground level, at a distance
of five hundred (500) feet from the production equipment.
(B)
No person shall operate or permit to be operated in connection with
the operation of a producing well any engine, compressor or motor-driven
machinery or any type which creates a sound level greater than 78
dB(A) when measured at a distance of six hundred (600) feet from the
well site. The noise level shall be the average of sound level meter
readings taken consecutively at any given time from four (4) or more
diametrically opposite positions at a distance of six hundred (600)
feet from the well site.
(C)
Sound level measurements shall be made with a sound level meter conforming,
as a minimum, to the requirements of the American National Standards
Institute.
(7)
Tank specifications for standard hydrocarbons well permit.
All tanks and permanent structures shall conform to the American
Petroleum Institute (API) specifications unless other specifications
are approved by the city council. The top of the tanks shall be no
higher than eight (8) feet above the terrain surrounding the tanks.
All tanks shall be set back pursuant to the standards of the commission
and the National Fire Protection Association, but in all cases shall
be at least twenty-five (25) feet from any public right-of-way or
property line.
(b)
Standard hydrocarbons well permits.
(1)
Applicability.
A standard hydrocarbons well permit shall
be required for anything not covered under special hydrocarbons well
permit.
(2)
Notice for standard hydrocarbons well permit.
(A)
At least ten (10) days prior to the date of filing an application
for a standard hydrocarbons well permit under this article with the
city, notice is to be posted at the city hall. The notice shall read
as follows:
Notice is hereby given that, acting under and pursuant to the
Ordinances of the City of New Fairview, Texas on the __________ day
of __________, 20___, __________ will file with the Authorized City
Personnel and/or City Council of the City of New Fairview, an application
to drill, complete and operate a well for Hydrocarbons upon property
located at __________, Wise County, New Fairview, Texas, Lot No. __________
Block No. __________, or __________ City of New Fairview, more particularly
shown on the map of record in Volume __________, Page __________,
Plat records of Wise County, Texas, or per Tax Tract Number __________,
Wise County Texas.
(B)
All notice provisions contained herein shall be deemed sufficient
upon substantial compliance with this section.
(3)
Fencing for standard hydrocarbons well permit.
Gates requirements and other fencing requirements as outlined in section 5.04.013 of this article shall also be required.
(4)
Vehicle routes for standard hydrocarbons well permit.
Vehicles associated with drilling and/or production shall adhere
to all city codes and ordinances unless entering into a road maintenance
agreement. The vehicles shall be operated on a truck route wherever
capable of being used; they shall be operated on a commercial delivery
route means [sic] any street or highway so designated by the city
council for the use by any commercial motor vehicle, truck-tractor,
trailer, semi-trailer, or any combination thereof.
(Ordinance 2003-02-088, sec. 6,
adopted 4/22/03; Ordinance
2003-09-095 adopted 1/13/04)
(a)
It
is the responsibility of the authorized city personnel to review and
approve or disapprove all applications for hydrocarbons well drilling
permits based on the criteria established by this article. The authorized
city personnel, within thirty (30) days after the filing of a completed
application and remittance of all fees, insurance and security per
the requirements of this article for a hydrocarbons well permit, shall
determine whether or not the application complies in all respects
with [this article and] the facility to be installed is in compliance
with the distance requirements for the requested hydrocarbons well
permit on the date the completed application is received by the authorized
city personnel.
(b)
The
provisions of this article shall apply to any dwellings or buildings
for which an application for a building permit has been submitted
on the date the application for a hydrocarbons well permit is filed
with the authorized city personnel.
(c)
If
all the requirements of this article are met, the authorized city
personnel shall issue a hydrocarbons well permit for the drilling
of the well or the installation of the facilities applied for.
(d)
If the authorized city personnel denies a standard hydrocarbons well permit application for reasons other than lack of required distance as set out in this article for the requested hydrocarbons well permit, he shall notify the operator in writing of such denial stating the reasons for the denial. Within thirty (30) days of the date of the written decision of the authorized city personnel to deny the hydrocarbons well permit, the operator may: (i) cure those conditions that caused the denial and resubmit the application to the authorized city personnel for approval and issuance of the hydrocarbons well permit, or (ii) file an appeal to the city council under the provisions outlined in this article pursuant to section 5.04.017 (Appeals) of this article.
(e)
If
the authorized city personnel determines that the operator has complied
with all of the provisions of this article but that the proposed drill
site does not comply with the distance requirements of this article
under the requested standard hydrocarbons well permit, the authorized
city personnel shall notify the operator. The operator may revise
the permit to comply with the standard hydrocarbons well permit or
the authorized city personnel shall notify the city secretary and
the city secretary shall place the request for a hydrocarbons well
permit under this article on the city council agenda for public hearing
within the next forty-five (45) days.
(f)
Not
less than fifteen (15) days prior to the date set for the hearing
by the city council, the authorized city personnel shall:
(1)
Notify the operator and all owners of real property as the ownership
appears on the last certified tax roll of the applicable city or county
appraisal district within the applicable distance of the proposed
well location and hearing per the requested hydrocarbons well permit.
Such notice shall be served by depositing the same, postage paid,
in the United States [mail];
(2)
The erection an/or continued maintenance of any such sign shall not
be deemed a condition precedent to the holding of any public hearing
or to any other official action concerning this article.
(g)
All
notice provisions contained herein shall be deemed sufficient upon
substantial compliance with this section.
(h)
Following
the public hearing, the city council may grant such hydrocarbons well
permit upon such terms and conditions as it determines to be necessary
to protect the public health and safety. The city council may require
changes in the operations, plan, design, layout, fencing, screening,
lighting, or other matters reasonably required in the interest of
the public.
(i)
In
making its decision, the city council shall have the power and authority
to refuse any hydrocarbons well permit to drill any well at any particular
location within the city, when by reason of such particular location
would be injurious to the health, safety or welfare of the inhabitants
in the immediate area of the city.
(j)
If
the operator elects not to accept the hydrocarbons well permit under
the terms and conditions imposed by the city council and wishes to
withdraw his application, the operator must notify the authorized
city personnel in writing of his decision.
(Ordinance 2003-02-088, sec. 7,
adopted 4/22/03)
(a)
An
operator may submit an application to the authorized city personnel
to amend an existing hydrocarbons well permit to commence drilling
from a new drill site that is not shown on (or incorporated by reference
as part of) of the existing hydrocarbons well permit, to relocate
a drill site or operation site that is shown on (or incorporated by
reference as part of) the existing hydrocarbons well permit, or to
otherwise amend the existing hydrocarbons well permit.
(b)
Applications
for amended hydrocarbons well permits shall be in writing, shall be
signed by the operator, and shall include the following:
(1)
The application fee as set by city ordinance;
(2)
A description of the proposed amendments;
(3)
Any changes to the information submitted with the application for
the existing hydrocarbons well permit (if such information has not
previously been provided to the city);
(4)
Such additional information as is reasonably required by the authorized
city personnel to demonstrate compliance with the applicable hydrocarbons
well permit; and
(5)
Such additional information as is reasonably required by the authorized
city personnel to prevent imminent destruction of property or injury
to persons.
(c)
All
applications for amended hydrocarbons well permits shall be filed
with the city secretary and given to authorized city personnel and/or
the city council for review. Incomplete applications may be returned
to the applicant, in which case the city shall provide a written explanation
of the deficiencies; however, the city shall retain the application
fee. The city may return any application as incomplete if there is
a dispute pending before the railroad commission regarding the determination
of the operator.
(d)
If
the activities proposed by the amendment are not materially different
from the activities covered by the existing hydrocarbons well permit,
and if the proposed activities are in conformance with the applicable
hydrocarbons well permit, then the authorized city personnel shall
approve the amendment within ten (10) days after the application is
filed.
(e)
If
the activities proposed by the amendment are materially different
from the activities covered by the existing hydrocarbons well permit,
and if the proposed activities are in conformance with the applicable
hydrocarbons well permit, then the authorized city personnel shall
approve the amendment within thirty (30) days after the application
is filed. If, however, the activities proposed by the amendment are
materially different and, in the judgment of the authorized city personnel,
might create a risk of imminent destruction of property or injury
to persons that was not associated with the activities covered by
the existing hydrocarbons well permit or that was not otherwise taken
into consideration by the existing hydrocarbons well permit, the authorized
city personnel may require the amendment to be processed as a new
hydrocarbons well permit application.
(f)
The
failure of the authorized city personnel to review and issue an amended
hydrocarbons well permit within the time limits specified above shall
not cause the application for the amended hydrocarbons well permit
to be deemed approved.
(g)
The
decision of the authorized city personnel to deny an amendment to
a hydrocarbons well permit shall be provided to the operator in writing
within ten (10) days after the decision, including an explanation
of the basis for the decision. The operator may appeal any such denial
to the city council.
(Ordinance 2003-02-088, sec. 8,
adopted 4/22/03)
(a)
If
an operator (or its officers, employees, agents, contractors, or representatives)
fails to comply with any requirement of a hydrocarbons well permit
(including any requirement incorporated by reference as part of the
hydrocarbons well permit), the authorized city personnel and/or city
council shall give written notice to the operator specifying the nature
of the failure and giving the operator a reasonable time to cure,
taking into consideration the nature and extent of the failure, the
extent of the efforts required to cure, and the potential impact on
the health, safety, and welfare of the community. In no event, however,
shall the cure period be less than thirty (30) days unless the failure
presents a risk of imminent destruction of property or injury to persons
or unless the failure involves the operator's failure to provide periodic
reports as required by this article.
(b)
If
the operator fails to correct the noncompliance within thirty (30)
days from the date of the notice, the authorized city personnel may
suspend or revoke the hydrocarbons well permit pursuant to the provisions
of this article.
(c)
No
person shall carry on any operations performed under the terms of
the hydrocarbons well permit issued under this article during any
period of any hydrocarbons well permit suspension or revocation or
pending a review of the decision or order of the city in suspending
or revoking the hydrocarbons well permit. Nothing contained herein
shall be construed to prevent the necessary, diligent and bona fide
efforts to cure and remedy the default or violation for which the
suspension or revocation of the hydrocarbons well permit was ordered
for the safety of persons or as required by the commission.
(d)
If
the operator does not cure the noncompliance within the time specified
in this article, the authorized city personnel, upon written notice
to the operator, may notify the commission and request that the commission
take any appropriate action.
(e)
The operator may, within thirty (30) days of the date of the decision of the authorized city personnel in writing to suspend or revoke a hydrocarbons well permit, file an appeal to the city council under the provisions outlined in this article pursuant to section 5.04.017 (Appeals) of this article.
(f)
If
an application for a hydrocarbons well permit is denied by the authorized
city personnel, nothing herein contained shall prevent a new permit
application from being submitted to the authorized city personnel
and/or city council for the same well.
(Ordinance 2003-02-088, sec. 9,
adopted 4/22/03)
(a)
The
operator shall notify the authorized city personnel of any changes
to the following information within one business week after the change
occurs:
(1)
The name, address, and phone number of the operator;
(2)
The name, address, and phone number of the person designated to receive
notices from the city (which person must be a resident of Texas that
can be served in person or by registered or certified mail); and
(3)
The operator's emergency action response Plan 9 including "drive-to
maps'" from public rights-of-way to each drill site.
(b)
The
operator shall notify the authorized city personnel and/or city council
of any change to the name, address, and 24-hour phone number of the
person(s) with supervisory authority over drilling or operations activities
within one business day.
(c)
The
operator shall provide a copy of any "incident reports" or written
complaints submitted to the railroad commission with thirty (30) days
after the operator has notice of the existence of such reports or
complaints.
(Ordinance 2003-02-088, sec. 10,
adopted 4/22/03)
(a)
General requirements.
The operator shall be required
to:
(1)
Comply with the terms and conditions of this article and the hydrocarbons
well permit issued hereunder.
(2)
Promptly clear drill and operation sites of all litter, trash, waste
and other substances used, allowed, or occurring in the operations,
and after abandonment or completion grade, level and restore such
property to the same surface conditions as nearly as possible as existed
before operations.
(3)
Indemnify and hold harmless the city, its officers, agents, and employees
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 attorney's fees, for injury to or death of any person
or for damage to any property arising out of or in connection with
the work done by the operator under a hydrocarbons well permit:
(4)
Promptly pay all fines, penalties and other assessments imposed due
to breach of any terms of the hydrocarbons well permit.
(5)
Promptly restore to its former condition any public property damaged
by the hydrocarbons operation.
(b)
Bond or irrevocable letter of credit.
Prior to the issuance
of a hydrocarbons well permit the operator shall provide the city
secretary with a security instrument in the form of a bond or an irrevocable
letter of credit as follows:
(1)
Bond.
A bond shall be executed by a reliable bonding
or insurance institution authorized to do business in Texas, acceptable
to the city. The bond shall become effective on or before the date
the hydrocarbons well permit is issued and remain in force and effect
for at least a period of six (6) months after the expiration of the
hydrocarbons well permit term or until the well is plugged and abandoned
and the site restored, whichever occurs first. The operator shall
be listed as principal and the instrument shall run to the city, as
obligee, and shall be conditioned that the operator will comply with
the terms and regulations of this article and the city. The original
bond shall be submitted to the city secretary and a copy to the authorized
city personnel.
(2)
Letter of credit.
A letter of credit shall be issued
by a reliable bank authorized to do business in Texas and shall become
effective on or before the date the hydrocarbons well permit is issued.
The letter of credit shall remain in force and effect for at least
a period of six (6) months after the expiration of the hydrocarbons
well permit term. The city shall be authorized to draw upon such letter
of credit to recover any fines or penalties assessed under this article.
Evidence of the execution of a letter of credit shall be submitted
to the city secretary by submitting an original signed letter of credit
from the banking institution, with a copy of the same provided to
the authorized city personnel.
(3)
(A)
The principal amount of any security instrument shall be fifty thousand
dollars ($50,000.00) for any single well. If, after the completion
of a well, the applicant/operator, who initially posted a fifty thousand
dollar ($50,000.00) bond, has complied with all of the provisions
of this article and whose well in the producing stage and all drilling
operations have ceased, may submit a request to the city council to
reduce the existing bond to ten thousand dollars ($10,000.00) for
the remainder of the time the well produces with reworking. During
reworking operations, the amount of the bond or letter of credit shall
be maintained at fifty thousand dollars ($50,000.00). In lieu of single
well bonds an applicant may submit a one hundred thousand dollar ($100,000.00)
blanket bond.
(B)
[tx]If at any time, after no less than fifteen (15) days' written
notice to the operator and a public hearing, the city council shall
deem any operator's bond or letter of credit to be insufficient, it
may require the operator to increase the amount of the bond or letter
of credit up to a maximum of two hundred and fifty thousand dollars
($250,000.00) per well.
(4)
(A)
Whenever the authorized city personnel and/or city council finds
that a default has occurred in the performance of any requirement
or condition imposed by this article, a written notice shall be given
to the operator. Such notice shall specify the work to be done, the
estimated cost and the period of time deemed by the authorized city
personnel and/or city council to be reasonably necessary for the completion
of such work. After receipt of such notice, the operator shall, within
the time therein specified, either cause or require the work to be
performed, or failing to do so, shall pay over to the city one hundred
twenty-five (125) [percent] of the estimated cost of doing the work
as set forth in the notice. In no event, however, shall the cure period
be less than thirty (30) days unless the failure presents a risk of
imminent destruction of property or injury to persons or unless the
failure involves the operator's failure to provide periodic reports
as required by this article.
(B)
The city shall be authorized to draw against any irrevocable letter
of credit or bond to recover such amount due from the operator. Upon
receipt of such monies, the city shall proceed by such mode as deemed
convenient to cause the required work to be performed and completed,
but no liability shall be incurred other than for the expenditure
of said sum in hand. In the event that the well has not been properly
abandoned under the regulations of the commission, such additional
money may be demanded from the operator as is necessary to properly
plug and abandon the well and restore the drill site in conformity
with the regulations of this article.
(5)
In the event the operator does not cause the work to be performed
and fails or refuses to pay over to the city the estimated cost of
the work to be done as set forth in the notice, or the issuer of the
security instrument refuses to honor any draft by the city against
the applicable irrevocable letter of credit or bond, the city may
proceed to obtain compliance and abate the default by way of civil
action against the operator, or by criminal action against the operator,
or by both such methods.
(6)
When the well or wells covered by said irrevocable letter of credit
or bond have been properly abandoned in conformity with all regulations
of this article, and in conformity with all regulations of the commission
and notice to that effect has been received by the city, or upon receipt
of a satisfactory substitute, the irrevocable letter of credit or
bond issued in compliance with these regulations shall be terminated
and cancelled.
(c)
Insurance.
In addition to the bond or letter of credit
required pursuant to this article, the operator shall carry a policy
or policies of insurance issued by an insurance company or companies
authorized to do business in Texas. In the event such insurance policy
or policies are cancelled, the hydrocarbons well permit shall be suspended
on such date of cancellation and the operator's right to operate under
such hydrocarbons well permit shall immediately cease until the operator
files additional insurance as provided herein.
(1)
General requirements applicable to all policies.
(A)
The city, its officials, employees, agents and officers shall be
endorsed as "additional insured" to all policies except employer's
liability coverage under the operator's worker's compensation policy.
(B)
All policies shall be written on an occurrence basis except for environmental
pollution liability (seepage and pollution coverage) and excess or
umbrella liability, which may be on a claims-made basis.
(C)
All policies shall be written by an insurer with an A-:VIII or better
rating by the most current version of the A.M. Best Key Rating Guide
or with such other financially sound insurance carriers acceptable
to the city.
(D)
Deductibles shall be listed on the certificate of insurance and shall
be on a "per occurrence" basis unless otherwise stipulated herein.
(E)
Certificates of insurance shall be delivered to the City of New Fairview,
999 Illinois Lane, New Fairview, Texas 76078, evidencing all the required
coverages including endorsements, prior to the issuance of a hydrocarbons
well permit.
(F)
All policies shall be endorsed with a waiver of subrogation providing
rights of recovery in favor of the city.
(G)
Any failure on the part of the city to request required insurance
documentation shall not constitute a waiver of the insurance requirement
specified herein.
(H)
Each policy shall be endorsed to provide the city a minimum thirty-day
notice of cancellation, non-renewal, and/or material change in policy
terms or coverage. A ten-day notice shall be acceptable in the event
of nonpayment of premium.
(I)
During the term of the hydrocarbons well permit, the operator shall
report, in a timely manner, to the authorized city personnel and/or
city council any known loss occurrence which could give rise to a
liability claim or lawsuit or which could result in a property loss.
(J)
Upon request, certified copies of all insurance policies shall be
furnished to the city.
(2)
Standard commercial general liability policy.
This coverage
must include premises, operations, blowout or explosion, products,
completed operations, sudden and accidental pollution, blanket contractual
liability, underground resources damage, broad form property damage,
independent contractors protective liability and personal injury.
This coverage shall be a minimum combined single limit $1,000,000.00
per occurrence for bodily injury and property damage.
(3)
Excess or umbrella liability.
|
$5,000,000
|
Excess, if the operator has a stand-alone environmental pollution
liability (EPL) policy.
|
|
$10,000,000
|
Excess, if the operator does not have a stand-alone EPL policy.
Coverage must include an endorsement for sudden or accidental pollution.
If seepage and pollution coverage is written on a "claims made" basis,
the operator must maintain continuous coverage and purchase extended
coverage period insurance when necessary.
|
(4)
Environmental pollution liability coverage.
(A)
The operator shall purchase and maintain in force for the duration
of the hydrocarbons well permit, 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 cost; 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 be maintained in an amount of at least $1,000,000.00
per loss, with an annual aggregate of at least $10,000,000.00.
(B)
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 hydrocarbons, waste material
or other irritants, contaminants or pollutants.
(C)
The operator shall maintain continuous coverage and shall purchase
extended coverage period insurance when necessary. The extended coverage
period insurance must provide that any retroactive date applicable
to coverage under the policy precedes the effective date of the issuance
of the permit by the city.
(5)
Control of well.
The policy should cover the cost of
controlling a well that is out of control, re-drilling or restoration
expenses, seepage and pollution damage as first party recovery for
the operator and related expenses, including, but not limited to,
loss of equipment, experts and evacuation of residents.
|
$5,000,000
|
Per occurrence/no aggregate, if available, otherwise an aggregate
of ten (10) million dollars.
|
|
$500,000
|
Sub-limit endorsement may be added for damage to property for
which the operator has care, custody and control.
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(6)
Worker's compensation and employer's liability insurance.
(8)
Certificates of insurance.
(A)
The company must be admitted or approved to do business in the State
of Texas, unless a surplus lines insurer writes the coverage.
(B)
The insurance set forth by the insurance company must be underwritten
on forms that have been approved by the state department of insurance
or ISO, or an equivalent policy form acceptable to the city, with
the exception of environmental pollution liability and control of
well coverage.
(C)
Sets forth all endorsements and insurance coverage according to requirements
and instructions contained herein.
(D)
Shall specifically set forth the notice of cancellation, termination,
or change in coverage provisions to the city. All policies shall be
endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED
WITHOUT 30 DAY ADVANCE WRITTEN NOTICE TO THE OWNER AND THE CITY EXCEPT
WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN
WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED."
(E)
Original endorsements affecting coverage required by this section
shall be furnished with the certificates of insurance.
(d)
Indemnification and express negligence provisions.
Each
hydrocarbons well permit issued by the city shall include the following
language: "Operator does hereby expressly release and discharge, all
claims, demands, actions, judgments, and executions which it ever
had, or now has or may have, or assigns may have, or claim to have,
against the City of New Fairview, and/or its departments, agents,
officers, servants, successors, assigns, sponsors, volunteers, or
employees, created by, or arising out of personal injuries, known
or unknown, and injuries to property, real or personal, or in any
way incidental to or in connection with the performance of the work
performed by the operator under a Hydrocarbons Well Permit. The Operator
shall fully defend, protect, indemnify, and hold harmless the City
of New Fairview, Texas, its departments, agents, officers, servants,
employees, successors, assigns, sponsors, or volunteers from and against
each and every claim, demand, or cause of action and any and all liability,
damages, obligations, judgments, losses, fines, penalties, costs,
fees, and expenses incurred in defense of the City of New Fairview,
Texas, its departments, agents, officers, servants, or employees,
including, without limitation, personal injuries and death in connection
therewith which may be made or asserted by Operator, its agents assigns,
or any third parties on account of, arising out of, or in any way
incidental to or in connection with the performance of the work performed
by the Operator under a Hydrocarbons Well Permit. The Operator agrees
to indemnify and hold harmless the City of New Fairview, Texas, its
departments, its officers, agents, servants, employees, successors,
assigns, sponsors, or volunteers from any liabilities or damages suffered
as a result of claims, demands, cost, or judgments against the City,
its departments, its officers, agents, servants, or employees, created
by, or arising out of the acts or omissions of the City of New Fairview
occurring on the drill site or operation site in the course and scope
of inspecting and permitting the Hydrocarbons wells INCLUDING, BUT
NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM
THE NEGLIGENCE OF THE CITY OF NEW FAIRVIEW OCCURRING ON THE DRILL
SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING
THE HYDROCARBONS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY
PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR
TO INDEMNIFY AND PROTECT THE CITY OF NEW FAIRVIEW, TEXAS, AND/OR ITS
DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES
OF THE NEGLIGENCE OF THE CITY OF NEW FAIRVIEW, TEXAS AND/OR ITS DEPARTMENTS,
AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE
IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH,
AND/OR DAMAGE."
(e)
Notices.
The individual designated to receive notice
shall be a resident of Texas upon whom all orders and notices provided
in this article may be served in person or by registered or certified
mail. Every operator shall within ten (10) days notify the city in
writing of any change in such agent or mailing address unless operations
in the city are discontinued and abandonment is complete.
(f)
Acceptance and indemnity agreement.
The operator who
has a net worth of not less than twenty-five million dollars ($25,000,000,00),
as shown in such owner's or operator's most recent audited financial
statements, may substitute an acceptance and indemnity agreement in
lieu of the bond or irrevocable letter of credit and insurance requirements
set forth in this article, provided that such acceptance and indemnity
agreement shall be in a form acceptable to, and approved by, the city
attorney and the city council. The authorized city personnel may request
an annual review of the operator's most recent audited financial statements
to assure compliance with this section.
(Ordinance 2003-02-088, sec. 11,
adopted 4/22/03)
(a)
On-site requirements.
(1)
Abandoned wells.
All wells shall be abandoned in accordance
with the rules of the railroad commission; however, all well casings
shall be cut and removed to a depth of at least ten feet (10') below
the surface unless the surface owner submits a written agreement otherwise.
Three feet (3') shall be the minimum.
(2)
Blowout prevention.
In all cases, blowout prevention
equipment shall be used on all wells being drilled, worked-over or
in which tubing is being changed. Protection shall be provided to
prevent blowout during hydrocarbons operations as required by and
in conformance with the requirements of the commission and the recommendations
of the American Petroleum Institute. The operator must equip all drilling
wells with adequate blowout preventers, flow lines and valves commensurate
with the working pressures involved as required by the commission.
(3)
Compliance.
The operator shall comply at all times with
all applicable federal, state and city requirements.
(4)
Discharge.
No person shall place, deposit, discharge,
or cause or permit to be placed, deposited or discharged any oil,
naphtha, petroleum, asphalt, tar, hydrocarbon substances or any refuse
including wastewater or brine from any hydrocarbons operation or the
contents of any container used in connection with any hydrocarbons
operation in, into, or upon any public right-of-way, alleys, streets,
lots, storm drain, ditch, sewer, septic [system], sanitary drain or
any body of water or any private property in the city.
(5)
Drill stem testing.
All open hole formation or drill
stem testing shall be done during daylight hours. Drill stem tests
may be conducted only if the well effluent during the test is produced
through an adequate hydrocarbons 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.
(6)
Dust, vibrations, odors, etc.
All equipment used shall
be so constructed and operated so that vibrations, dust, odor or other
harmful or annoying substances or effects will be minimized by the
operations carried on at any drilling production site or from anything
incident thereto, to the injury or annoyance of persons living in
the vicinity; nor shall the site or structures thereon be permitted
to become dilapidated, unsightly or unsafe. Proven technological improvements
in industry standards of drilling and production in this area shall
be adopted as they become available if capable of reducing factors
of dust, vibration and odor.
(7)
Electric lines.
All electric lines to production facilities
shall be located in a manner compatible to those already installed
in the surrounding area or subdivision.
(8)
Electric motors.
Only electric prime movers or motors
shall be permitted for the purpose of pumping wells. No electric power
shall be generated on location. All electrical installations and equipment
shall conform to the city ordinances and the appropriate national
codes.
(9)
Emergency response plan.
Prior to the commencement of
any hydrocarbons [drilling] or other hydrocarbons production activities
the operator shall submit to the authorized city personnel and/or
city council an emergency response plan establishing written procedures
to minimize any hazard resulting from drilling, completion or producing
of hydrocarbons wells. Said plan shall use existing guidelines established
by the commission, the state commission on environmental quality,
the department of transportation and/or the Environmental Protection
Agency.
(10)
Equipment to be painted.
All production equipment on
the site shall be painted and maintained at all times, including pumping
units, storage tanks, buildings and structures.
(11)
Fire prevention; sources of ignition.
Firefighting apparatus
and supplies as approved by the fire department and required by an
applicable federal, state, or local law shall be provided by the operator,
at the operator's cost, and shall be maintained on the drilling site
at all times during drilling and production operations. The operator
shall be responsible for the maintenance and upkeep of such equipment.
Each well shall be equipped with an automated valve that closes the
well in the event of an abnormal change in operating pressure. All
wellheads shall contain an emergency shut-off valve to the well distribution
line.
(12)
Fresh water wells.
(A)
It shall be unlawful to drill any well, the center of which at the
surface of the ground is located within two hundred (200) feet to
any fresh water well. The measurement shall be in a direct line from
the closest well bore to the fresh water well bore.
(B)
The operator of a hydrocarbon well shall provide the city council
with a "pre-drilling" and "post-drilling" water analysis from any
fresh water well within five hundred (500) feet of the hydrocarbons
well.
(C)
Within 180 days of its completion date, each hydrocarbon well shall
be equipped with a cathodic protection system to protect the production
casing from external corrosion. The authorized city personnel and/or
city council may approve an alternative method of protecting the production
casing from external corrosion.
(13)
Hydrocarbons emission or burning restricted.
No person
shall allow, cause or permit hydrocarbons to be vented into the atmosphere
or to be burned by open flame except as provided by law or as permitted
by the commission, [and] then such vent or open flame shall not be
located closer than three hundred (300) feet from any building not
used in operations on the drilling site and such vent or open flame
shall be screened in such a way as to minimize detrimental effects
to adjacent property owners.
(14)
Grass, weeds and trash.
All drill and operation sites
shall be kept clear of high grass, weeds, and combustible trash within
a radius of one hundred (100) feet around any hydrocarbons tank or
tanks or producing wells.
(15)
Hazardous material management plan.
A hazardous material
management plan shall be on file with the authorized city personnel
and city hall where at any time the fire department may have access
to the plan.
(16)
Lights.
No person shall permit any lights located on
any drill or operation site to be directed in such a manner so that
they shine directly on public roads, adjacent property or property
in the general vicinity of the operation site. To the extent practicable,
and taking into account safety considerations, site lighting shall
be directed downward and internally so as to avoid glare on public
roads and adjacent dwellings and buildings within three hundred (300)
feet.
(17)
Muffling exhaust.
Exhaust from any internal combustion
engine, stationary or mounted on wheels, used in connection with the
drilling of any well or for use on any production equipment shall
not be discharged into the open air unless it is equipped with an
exhaust muffler or mufflers or an exhaust muffler box constructed
of noncombustible material sufficient to suppress noise and prevent
the escape of obnoxious hydrocarbons, fumes or ignited carbon or soot.
(18)
Oil-based mud.
No operations involving oil-based mud,
drill fluids, work-over treatments, or other flammable-based fluids
shall be allowed to be pumped on any permitted well location.
(19)
Pits.
Such pits shall be restored and contents shall
be removed from the premises and the drilling or work-over site within
one hundred eighty (180) days after completion of the well to the
standards required by the inspector to restore the area as practicable.
(20)
Private roads used for access to site.
Prior to the
commencement of any drilling operations, all private roads used for
access to the drill site and the operation site itself shall be at
least ten (10) feet wide, have an overhead clearance of fourteen (14)
feet and shall be surfaced with crushed rock, gravel or ore and maintained
to prevent dust and mud. In particular cases these requirements governing
surfacing of private roads may be altered at the discretion of the
inspector and the city council after consideration of all circumstances
including, but not limited to, the following: distances from public
streets and highways, distances from adjoining and nearby property
owners whose surface rights are not leased by the operation, the purpose
for which the property of such owners is or may be used, topographical
features, nature of the soil, and exposure to wind.
(21)
Salt water disposal wells.
No salt water disposal wells
shall be located within the city.
(22)
Signs.
(A)
A sign shall be immediately and prominently displayed at the gate on the temporary and permanent site fencing erected pursuant to section 5.04.013 of this article. Such sign shall be of durable material, maintained in good condition and, unless otherwise required by the commission, shall have a surface area of not less than two (2) square feet nor more than four (4) square feet and shall be lettered with the following:
(B)
Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED"
shall be posted immediately upon completion of the well site fencing
at the entrance of each well site and tank battery or in any other
location approved or designated by authorized city personnel and/or
fire chief of East Wise Fire Rescue. Sign lettering shall be four
(4) inches in height and shall be red on a white background or white
on a red background. Each sign shall include the emergency notification
numbers of the fire department and the operator, well and lease designations
required by the commission.
(23)
Storage of equipment.
(A)
On-site storage is prohibited on the operation site. No equipment
shall be stored on the drilling or production operation site, unless
it is necessary to the everyday operation of the well. Lumber, pipes,
tubing and casing shall not be left on the operation site except when
drilling or well servicing operations are being conducted on the site.
(B)
No vehicle or item of machinery shall be parked or stored on any
street, right-of-way or in any driveway, alley or upon any operation
site which constitutes a fire hazard or an obstruction to or interference
with fighting or controlling fires except that equipment which is
necessary for drilling or production operations on the site. The fire
department shall be the entity that determines whether equipment on
the site shall constitute a fire hazard.
(C)
No refinery, processing, treating, dehydrating or absorption plant
of any kind shall be constructed, established or maintained on the
premises. This shall not be deemed to exclude a conventional hydrocarbons
separator or dehydrator.
(24)
Storage tanks.
(A)
All tanks and permanent structures shall conform to the American
Petroleum Institute (API) specifications unless other specifications
are approved by the city council. All storage tanks shall be equipped
with a secondary containment system [that] shall be a minimum of three
feet (3') in height and one and one-half (2-1/2) [sic] times the contents
of the largest tank in accordance with the fire code, and buried at
least one foot (1') below the surface. Drip pots shall be provided
at the pump-out connection to contain the liquids from the storage
tank. Drip pots shall be provided at the pump-out connection to contain
the liquids from the storage tank.
(B)
All tanks shall be set back pursuant to the standards of the commission
and the National Fire Protection Association, but in all cases shall
be at least twenty-five (25) feet from any public right-of-way or
property line. Each storage tank shall be equipped with a level control
device that will automatically activate a valve to close the well
in the event of excess liquid accumulation in the tank.
(C)
No meters, storage tanks, separation facilities, or other above-ground
facilities, other than the wellhead and flow lines, shall be placed
in a floodway or the 100-year floodplain.
(25)
Surface casing.
Surface casing shall be run and set
in full compliance with the applicable rules and regulations of the
commission.
(26)
Tank battery facilities.
Tank battery facilities shall
be equipped with a remote foam line and a lightning arrestor system.
(27)
Under-balanced operations.
No operations involving under-balanced
drilling or work-over conditions shall be allowed at any time, unless
necessary to protect the citizens of the city and agreed to by the
authorized city personnel.
(28)
Valves.
Each well must have a shut-off valve to terminate
the well's production. The authorized city personnel shall have access
to the well site to enable it to close the shut-off valve in an emergency.
(29)
Waste disposal.
Unless otherwise directed by the commission,
all tanks used for storage shall conform to the following:
(A)
The operator must use portable closed steel storage tanks for storing
liquid hydrocarbons. Tanks must meet the American Petroleum Institute
standards. A fence applicable to the issued permit classification
must enclose all tanks. No tank battery shall be within one hundred
(100) feet of any dwelling or combustible structure.
(B)
Drilling mud, cuttings, liquid hydrocarbons and all other field waste
derived or resulting from or connected with the drilling, reworking
or deepening of any well shall be discharged into a lined earthen
pit. All disposals must be in accordance with the rules of the commission
and any other appropriate local, state or federal agency.
(C)
Unless otherwise directed by the commission, waste materials shall
be removed from the site and transported to an off-site disposal facility
not less often than every thirty (30) days. Water stored in on-site
tanks shall be removed as necessary.
(D)
All waste shall be disposed of in such a manner as to comply with
the air and water pollution control regulations of the state, this
article and any other applicable ordinance of the city.
(b)
Well setbacks.
It shall be unlawful to drill any well,
the center of which, at the surface of the ground, is located:
(1)
Within twenty-five (25) feet from any outer boundary line;
(2)
Within twenty-five (25) feet from any storage tank, or source of
ignition;
(3)
Within seventy-five (75) feet of any public street, road, highway
or future street, right-of-way or property line; or five hundred (500)
feet on FM 407, U.S. 287, or FM 2264;
(4)
Within one hundred (100) feet of any building accessory to, but not
necessary to, the operation of the well; or
(5)
Within two hundred (200) feet to any fresh water well. The measurement
shall be in a direct line from the closest well bore to the fresh
water well bore and subject to the approval of the inspector to ensure
protection of the well and water supply.
The distances shall be calculated from the well bore, in a straight line, without regard to the intervening structures or objects, to the closest exterior point of any object listed in subsections (1) through (5) above. The distances set out in subsection (1), (3), (4), or (6) [sic] may be reduced at the discretion of the city council, but never less than two hundred (200) feet from any dwelling or any other building used, or designed and intended to be used, for human occupancy without the unanimous consent of the property owners within a two hundred (200) foot radius around said well and the affirmative vote of not less than three-fourths of all members of the city council. For protection of the public health, safety and welfare, the city council may impose additional requirements for a reduction of such distance. The reduction of the distance requirement for fresh water wells is subject to the railroad commission regulations and any other state or federal requirements.
(c)
Installation of pipelines on, under or across public property.
(1)
The operator shall apply to the city for a franchise agreement on,
over, under, along or across the city 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 hydrocarbons well
permit issued pursuant to this article. The operator shall:
(A)
Not interfere with or damage existing water, sewer or hydrocarbons
lines or the facilities of public utilities located on, under or across
the course of such rights-of-way.
(B)
Furnish to the director of development of the city a plat showing
the location of such pipelines.
(C)
Construct such lines out of pipe in accordance with the city codes
and regulations, properly cased and vented if under a street.
(D)
Grade, level and restore such property to the same surface condition,
as nearly as practicable, as existed when operations for the drilling
of the well were first commenced.
(2)
No hydrocarbons well permit shall be issued for any well to drilled
within any of the street or alleys of the city and/or projected streets
or alleys shown by the current comprehensive plan of the city, and
no street or alley shall be blocked or encumbered or closed due to
any exploration, drilling or production operations unless prior consent
is obtained from authorized city personnel and/or the city council.
Any consent from the authorized city personnel and/or city council
shall be temporary in nature and state the number of hours and/or
days that any street or alley may be blocked, encumbered or closed.
(Ordinance 2003-02-088, sec. 12,
adopted 4/22/03)
[1]
Editor’s note–Former section pertaining
to fences, walls and screening, and deriving from Ordinance 2003-02-088,
sec. 13, adopted 4/22/03, was repealed and deleted in its entirety
by Ordinance 202212-01-101 adopted 1/3/2023.
(a)
Clean-up after well servicing.
After the well has been
completed or plugged and abandoned, the operator shall clean the drill
site or operation site, complete restoration activities, and repair
all damage to public property caused by such operation within sixty
(60) days.
(b)
Clean-up after spills, leaks and malfunctions.
After
any spill, leak or malfunction, the operator shall remove or cause
to be removed to the satisfaction of the fire chief and the authorized
city personnel all waste materials from any public or private property
affected by such spill, leak or malfunction. Clean-up operations must
begin immediately. If the owner fails to begin site clean-up within
twenty-four (24) hours, the city shall have the right to contact the
commission in order to facilitate the removal of all waste materials
from the property affected by such spill, leak or malfunction.
(c)
Free from debris.
The property on which a well site
is located shall at all times be kept free of debris, pools of water
or other liquids, contaminated soil, weeds, brush, trash or other
waste material within or radius of one hundred (100) feet around any
separators, tanks and producing wells.
(d)
Painting.
All production equipment shall be painted
and maintained at all times, including wellheads, pumping units, tanks,
and buildings or structures. When requiring painting of such facilities,
paint shall be of a neutral color, compatible with surrounding uses.
Neutral colors shall include sand, gray and unobtrusive shades of
green, blue and brown, or other neutral colors approved by the authorized
city personnel.
(e)
Blowouts.
In the event of the loss of control of any
well, the operator shall immediately take all reasonable steps to
regain control regardless of any other provision of this article and
shall notify the authorized city personnel and/or city council as
soon as practicable. The authorized city personnel shall certify in
writing, briefly describing the same, to the city council. If the
authorized city personnel, in his opinion, believes that danger to
persons and property exists because of such loss of well control and
that the operator is not taking or is unable to take all reasonable
and necessary steps to regain control of such well, the authorized
city personnel may then employ any well control expert or experts
or other contractors or suppliers of special services, or may incur
any other expenses for labor and material which the authorized city
personnel deems necessary to regain control of such well. The city
shall then have a valid lien against the interest in the well of all
working interest owners to secure payment of any expenditure made
by the city pursuant to such action of the authorized city personnel
in gaining control of said well.
(Ordinance 2003-02-088, sec. 14,
adopted 4/22/03)
(a)
Restoration of site.
Whenever abandonment occurs pursuant
to the requirements of the commission, the operator so abandoning
shall be responsible for the restoration of the well site to its original
condition as nearly as practicable, in conformity with the regulations
of this article.
(b)
Approval of abandonment.
Abandonment shall be approved
by the authorized city personnel after restoration of the drill site
has been accomplished in conformity with the following requirements
at the discretion of the authorized city personnel:
(1)
The derrick and all appurtenant equipment thereto shall be removed
from the drill site;
(2)
All tanks, towers, and other surface installations shall be removed
from the drill site;
(3)
All concrete foundations, piping, wood, guy anchors and other foreign
materials, regardless of depth, except surface casing, shall be removed
from the site, unless otherwise directed by the commission;
(4)
All holes and depressions shall be filled with clean, compactable
soil;
(5)
All waste, refuse or waste material shall be removed from the drill
site (including any oil contaminated and/or other contaminated soil);
and
(6)
During abandonment, the operator shall comply with all applicable
sections in this article.
(c)
Notice; documentation of state approval.
The operator
shall furnish the following at the discretion of the authorized city
personnel:
(1)
A copy of the approval of the commission confirming compliance with
all abandonment proceedings under the state law; and
(2)
A notice of intention to abandon under the provisions of this section
and stating the date such work will be commenced. Abandonment may
then be commenced on or subsequent to the date so stated.
(d)
Abandonment requirements prior to new construction.
All abandoned or deserted well or drill sites shall meet the most
current abandonment requirements of the commission prior to the issuance
of any building permit for development of the property. No structure
shall be built over an abandoned well.
(Ordinance 2003-02-088, sec. 15,
adopted 4/22/03)
The city may from time to time employ a technical advisor or
advisors who are experienced and educated in the hydrocarbons industry
or the law as it pertains to hydrocarbons matters. The function of
such advisor(s) shall be to advise, counsel or represent the city
on such matters relating to hydrocarbons operations within the city
as the city may want or require and the effect thereof, both present
and future, on the health, welfare, comfort and safety of the citizens
of the city. In the event such technical advisor(s) is employed for
the purpose of advising, counseling or representing the city relative
to an operator's unique and particular set of circumstances, case
or request relating to this article, then the cost for such services
of such technical advisor(s) shall be assessed against and paid for
by such operator in addition to any fees or charges assessed pursuant
to this article. Prior to the employment of a technical advisor, the
city shall inform the operator of the intended scope of work and the
estimated costs and expenses. The employment of a technical advisor
shall be approved by the city council.
(Ordinance 2003-02-088, sec. 16,
adopted 4/22/03)
(a)
The
city council shall have and exercise the power to hear and determine
appeals where it is alleged there is error or abuse of discretion
regarding the issuance of a hydrocarbons well permit or the revocation
or suspension of any hydrocarbons well permit issued hereunder as
provided by this article. Any person or entity whose application is
denied by the authorized city personnel (other than for distance requirements
set out in this article) or whose hydrocarbons well permit is suspended
or revoked or whose well or equipment is deemed by the authorized
city personnel to be abandoned may, within thirty (30) days of the
date of the written decision of the authorized city personnel, file
an appeal to the city council in accordance with the following procedure:
(1)
An appeal shall be in writing and shall be filed in triplicate with
the city secretary. The grounds for appeal must be set forth specifically,
and the error described, by the appellant.
(2)
Within forty-five (45) days of receipt of the records, the city secretary
shall transmit all papers involved in the proceeding, place the matter
on the city council agenda for hearing and give notice by mail of
the time, place and purpose thereof to appellant and any other party
who has requested in writing to be so notified. No other notice need
be given.
(b)
Appeal fees shall be required for every appeal in the amount set forth in the fee schedule in appendix A of this code and the appellant will also be responsible for all costs of the appeal, including professional fees, incurred by the city in the handling of the appeal, and no permit will be issued until such are fully paid.
(Ordinance 2003-02-088, sec. 17,
adopted 4/22/03; Ordinance adopting
Code)
All regulations and standards in this article for the production
of hydrocarbons shall also apply to oil wells.
(Ordinance 2003-02-088, sec. 18,
adopted 4/22/03)
(a)
It
shall be unlawful and an offense for any person to do the following:
(b)
Any
violation of this article shall be punished by a fine, per day, not
to exceed the maximum amount permissible under state law. Each day
that a violation exists shall constitute a separate offense.
(Ordinance 2003-02-088, sec. 19,
adopted 4/22/03)
