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:
Drilling block.
A tract of land consisting of one (1) city block of normal size of blocks in the city where defined by surrounding streets and lanes. Where the block is not defined by surrounding streets or lanes, it shall consist of an area as nearly approximating the normal city block as is consistent with existing boundaries and property lines.
Watershed or source of water supply.
All areas of the freshwater sands commonly known as the Trinity Sand, the First Woodbine Sand and the Second Woodbine Sand from or through which water flows or percolates to the wells maintained and operated by the city as the source of its water supply.
(1991 Code, sec. 22-1)
(a) 
The oil and gas well drilling blocks for the city are shown and designated on the map attached to the original copy of Ordinance No. 1955 on file in the city clerk’s office, which map is hereby referred to and made a part hereof for all purposes. Such drilling blocks shall be confined to drilling operations down to four thousand five hundred (4,500) feet, and no permit shall be granted nor production allowed from such blocks established at a greater depth than four thousand five hundred (4,500) feet. Below four thousand five hundred (4,500) feet, the drilling units shall consist of areas of approximately twelve-plus acres, excluding streets and alleys, and sixteen-plus acres, including streets and alleys, as set out and as hereby established by plat attached to the original copy of Ordinance No. 1955 on file in the city clerk’s office, which plat is hereby referred to and adopted as a part of this section.
(b) 
All drilling blocks and units hereby established shall be minimum drilling units, and they may be enlarged by private contract with the fee mineral owners of more than four-fifths of the areas, and the rights of the permittees and nonagreeing owners shall be determined and protected as set forth in this article, but if enlarged, the new unit must consist of multiples of established adjacent units.
(c) 
The city council may, upon hearing and notice, vary the established boundaries of such units not to exceed one-tenth, and in so doing the council shall assign any acreage eliminated from any unit to an adjacent unit.
(d) 
When definite distances in feet are not shown on the map referred to herein, the boundaries of the drilling block or drilling districts shown thereon are intended to be along existing street, alley or property lines or extensions of or from the same. Where the street or alley lines are used, the centerline of the street or alley is intended, except where the street or alley lines are coincident with the drilling block boundary as shown on the map. Where the layout of streets, alleys, city limits or other monuments actually on the ground vary from the layout as shown on the map, the designations shown on the mapped streets shall be applied to the streets, alleys, city limits and monuments actually established and existing upon the ground.
(e) 
In the case of drilling blocks located along the city boundary, all owners thereof may by agreement pool the area covered thereby with contiguous acreage outside the city limits for the purpose of establishing a drilling unit.
(1991 Code, sec. 22-3)
Nothing in this article shall affect any ordinance previously adopted which establishes the boundaries of any drilling block or unit or prescribes the lots or territory to be included within any such block or unit, and all such ordinances in effect at the time of the adoption of this code are hereby recognized as continuing in full force and effect.
(1991 Code, sec. 22-4)
It shall be unlawful to drill any well for oil or gas within any of the streets or alleys of the city or to block or encumber or close up any street or alley in any drilling or producing operations, except by special permit issued by order of the city council, and then only temporarily.
(1991 Code, sec. 22-5)
(a) 
Each person holding a permit issued under this article, his assigns and successors, in addition to the surety bond required by section 4.10.034, must at all times be insured against liability in tort arising from drilling or production, or activities or operations incident thereto, conducted or carried on under or by virtue of such permit. The amount of such insurance shall be fixed by the city council, based on the location of the well and the value of the surrounding property and improvements; provided, that the amount of such insurance shall in no case be less than ten thousand dollars ($10,000.00). A separate insurance policy or policies may be used to cover the drilling of the well and/or the operation or production of it after completion. The policy or policies of insurance issued in compliance herewith shall be subject to the approval of the city attorney and the city council, and duplicates shall be furnished to the city attorney. Each policy shall be conditioned or endorsed to cover such agents, lessees or representatives of the permittee as may actually conduct drilling, production or incidental operations permitted by the drilling permit.
(b) 
The insurance required hereby shall be released by the city council when production ceases and the permittee has in all things complied with the provisions of this article.
(1991 Code, sec. 22-6)
No oil or gas well shall be drilled and no permit therefor shall be issued, until satisfactory subsurface blowout insurance has been provided by the permittee, in such amount as may be determined by the city council at the time the permit is issued.
(1991 Code, sec. 22-7)
(a) 
It is recognized and ordained that the owner of land in the city who has not leased his land for oil and gas and mineral development has the following estates in and to such land:
(1) 
An expense bearing seven-eighths working interest, commonly called the leasehold estate; and
(2) 
A free royalty interest, equivalent to one-eighth of all minerals produced from his land free of cost.
(b) 
In the absence of express contract otherwise, the landowner shall always have and be entitled to a free royalty of one-eighth of the minerals produced and saved from the drilling block in proportion that the number of square feet owned by the landowner bears to the total number of square feet in the drilling block.
(1991 Code, sec. 22-8)
All wells or holes of any type or size drilled through the impervious stratum beneath the Trinity Sand within the city limits shall conform to the terms of this article, except that the city council may, in its discretion, waive all or any part of the permit fee and bond and insurance requirements of this article insofar as applicable to wells or holes drilled solely for exploration purposes and not suitable for production of oil, gas or other minerals.
(1991 Code, sec. 22-9)
(a) 
Before any well or hole to which this article may be applicable is commenced outside of but within five (5) miles of the city limits, the driller or person responsible for such operation shall furnish the city manager or his designated representative with complete, full and accurate information as to the location and proposed depth of the well or hole and shall pay to the city a fee of fifty dollars ($50.00) to defray its expenses in connection with the inspection of such operations to determine their compliance with this article and to determine that all laws and regulations for the protection of the city’s water supply are properly observed.
(b) 
As to all wells or holes to which this article is applicable located more than five (5) miles outside of the city limits, the driller or person responsible for such operation shall give written notice of the location and proposed depth of the well or hole to the city manager.
(1991 Code, sec. 22-10)
The city manager or his designated representatives shall have the right to inspect all drilling, digging or excavating operations to which this article may be applicable as frequently and to such extent as may be necessary to ensure full compliance with the terms of this article.
(1991 Code, sec. 22-11)
Neither this article nor any permit issued hereunder shall be interpreted to grant any right to the permittee to enter upon or occupy in any respect in drilling or production operations any land except by written consent of the owner, nor shall it limit or prevent the free right of any lot owner to contract for the amount of royalties to be paid with respect to his own land or other consideration therefor, or for damages, rights or privileges with respect thereto.
(1991 Code, sec. 22-12)
Neither this article nor any permit issued hereunder shall be interpreted to grant any right to the permittee to store oil within the city limits, except in accordance with regulations adopted from time to time, nor to use the streets, alleys or public ways or any part thereof for the purpose of transporting oil or gas in pipelines or otherwise, except under a separate permit issued by the city council and subject to such regulation of such transportation as may be prescribed from time to time by ordinance of the city or otherwise.
(1991 Code, sec. 22-13)