No person shall conduct any drilling or redrilling within the
corporate limits of the city without having obtained a permit for
said drilling or redrilling under this article.
(1999 Code, sec. 4.202)
Applications for permits to drill or redrill any oil or gas
well shall be made in writing to the code enforcement administrator
of the city and shall include the following:
(1)
The
legal description of the proposed drill site and the legal description
of the real property in the city which the applicant proposes to explore
for oil and gas purposes, with a map attached to the application,
which map shall clearly show and outline the proposed drill site with
reference to existing city street or city limits.
(2)
A
statement of what property the applicant has the right, by reason
of ownership or permission of the owner, to pass through and enter
for drilling purposes, and a further statement that the applicant
agrees, in finally locating the well, not to pass through or enter
any property where he does not have such right.
(3)
A
plat of the proposed location showing type, kinds, size, and amount
of major equipment and a general description and the method of operation
of the proposed well, and a plat showing the location and description
of all improvements and structures within six hundred feet (600’)
of the well hole.
(4)
The proposed method of handling and using any product proposed to be developed at the well site and the proposed method of disposing of all waste products anticipated, and the proposed route of any flow or gathering lines to remove products in the event of production, to be supplemented in the event of production as required by section 4.07.005.
(5)
Each application shall be accompanied by an application fee as provided for in the fee schedule found in appendix A of this code.
(6)
A
map showing the proposed route and roadways over which equipment and
chemicals for use in the drilling operation will be brought to the
drill site.
(1999 Code, sec. 4.203)
The code enforcement administrator is authorized to engage a
person qualified in petroleum engineering, petroleum geology, or the
petroleum industry as necessary to enforce this article.
(1999 Code, sec. 4.204)
Prior to the issuance of any permit hereunder, the applicant
shall furnish the code enforcement administrator with a bond in the
principal sum of one hundred thousand dollars ($100,000.00) per drill
site. Such bond shall be executed by an insurance company authorized
to do business in the state as surety, and with the applicant as principal,
naming the city for the benefit of the city, conditioned that the
permittee will comply with the terms and conditions of this article.
In addition, the bond will be conditioned that the applicant will
promptly pay fines, penalties and other assessments imposed upon the
applicant by reason of the breach of any of the terms, provisions
and conditions of this article; and that the applicant will promptly
restore to their former condition streets, sidewalks, and other public
property which may be damaged in drilling operations; and that the
applicant will comply with all fencing, screening and site restoration
requirements of this article. If at any time the code enforcement
administrator should find the applicant's bond to be insufficient
for any reason, he may require the applicant to file a new bond.
(1999 Code, sec. 4.205)
After drilling is completed and production is made and upon
written request from a permittee who has complied with all the provisions
of this article, the code enforcement administrator may permit a reduction
of the permittee's bond to a sum of not less than ten thousand dollars
($10,000.00) per drill site for the remainder of the time such well
produces.
(1999 Code, sec. 4.206)
Prior to issuance of any permit hereunder, the applicant shall
furnish the code enforcement administrator with a certificate of insurance
showing a valid policy or policies of public liability insurance,
covering bodily injuries and property damage. Said insurance shall
be written by a company authorized to do business in this state. Such
policies shall provide for the following minimum coverage:
(1)
Bodily
injuries and general liability, one occurrence: $10,000,000.00.
(2)
Property
damage: $2,000,000.00.
(1999 Code, sec. 4.207)
Bond and insurance requirements may not be waived.
(1999 Code, sec. 4.208)
All permits granted under this article shall be transferable
upon approval of the code enforcement administrator, after a determination
that all requirements of this article are met by the transferee.
(1999 Code, sec. 4.216)
The drilling permit shall not become effective unless the permit
is accepted by the applicant in its entirety in writing, filed with
the code enforcement administrator within ten (10) days from the effective
date thereof, and no work on such drill site shall be commenced until
such permit is issued and accepted. The drilling permit shall become
null and void unless drilling is commenced within one hundred eighty
(180) days of the effective date of the permit. Drilling operations
shall be prosecuted in a diligent, workmanlike manner until the well
is completed or abandoned. Once a well is a producing well, it shall
not be serviced with a permanent derrick.
(1999 Code, sec. 4.217)
The permittee shall indemnify and save harmless the city and
its officers, agents, and employees from any and all claims, causes
of action and damages of every kind for injury to or death of any
person and damages to property arising out of the operation under
any drilling permit and including acts or omissions of the city, its
officers, agents, and employees in connection with said drilling permit.
(1999 Code, sec. 4.218)
(a)
Whenever a person holding a permit pursuant to the provisions of this article wishes to request an extension of the time within which drilling operations are required to be commenced to a period beyond one hundred eighty (180) days after the effective date of the permit, a request for such extension shall be filed with the code enforcement administrator in writing and be accompanied by a fee as provided for in the fee schedule found in appendix A of this code for each well for which an extension is requested.
(b)
Such
request for an extension shall set forth facts showing good cause
for the code enforcement administrator to allow additional time for
the commencement of the well. When good cause is shown, the code enforcement
administrator shall grant an extension not to exceed an additional
one hundred eighty (180) days.
(1999 Code, sec. 4.219)
A copy of the “Potential” or “Plug and Abandon
Report” of any well furnished to the state railroad commission
shall be concurrently filed by the permittee with the code enforcement
administrator. Prior to commencement of any drilling operation, the
permittee shall deliver to the code enforcement administrator a copy
of the state permit from the state railroad commission.
(1999 Code, sec. 4.220)
Any drilling permit may be suspended or revoked for any material
violation of the conditions of the permit by the permittee or for
persistent violation of any law by the permittee in the operation
of any such well. The code enforcement administrator shall not revoke
any permit without first giving the permittee ten (10) days’
written notice of the nature of the violations and of the intention
to revoke such permit. The permittee shall at once cease drilling
operations after receipt of notice of intent to revoke this permit.
If, within such ten (10) day period, the permittee requests a hearing
before the code enforcement administrator, the code enforcement administrator
shall grant such hearing within fifteen (15) days after the date of
such request. At such hearing, evidence shall be presented to establish
to the satisfaction of the code enforcement administrator the extent
and nature of the violation which constitutes grounds for the revocation,
and the permittee shall be given an opportunity to cross-examine all
witnesses testifying at such hearing. The permittee shall thereafter
be permitted at that hearing, or at a continued hearing if a continuance
is requested by the permittee, to present evidence to disprove or
explain such alleged violations. The code enforcement administrator
shall thereupon, after hearing all the evidence, determine whether
or not the permit should be revoked, and his determination thereon
shall be final. If the code enforcement administrator determines that
the permit should be revoked, the permittee may appeal the decision
of the code enforcement administrator to the city council in accordance
with the ordinances of the city. In the event the city council determines
that said permit should be revoked, the permittee shall have recourse
to the appropriate courts of this state to review such action by the
city council and the substantial evidence rule shall apply.
(1999 Code, sec. 4.232)
