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:
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.
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)
Violations of this article are punishable as provided in section 1.01.009.
(1991 Code, sec. 22-2)
(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:
(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)
Any person who feels aggrieved by any action taken by any officials
of the city under this article shall have the right to appeal to the
city council.
(1991 Code, sec. 22-14)
