(a)
Commercial building, residence and structure
Lease
Permittee
Person
Well
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:
mean not only existing structures but any site for the same
for which a city building permit has been issued or applied for and
issuance is pending. In order to have the effect of an existing structure
within the meaning of this article, construction must start on any
such site within 90 days after a permit is issued.
means any tract of land subject to an oil, gas and mineral
lease or other oil and gas development contract, or any unit composed
of several tracts and leases but operated as one lease, and any tract
of land in which the minerals are owned by an operator or someone
holding under it or him, but which, due to the fee royalty ownership,
is developed and operated as a separate tract.
means the person to whom is issued a permit for the drilling
and operation of a well under this article, and his or its administrators,
executors, heirs, successors and assigns.
means and includes both the singular and the plural; and
shall mean and include any person, individual, firm, partnership,
association, corporation, club, society, cooperative, trust, municipal
corporation or political subdivision whatsoever.
means and includes any holes or bores to any sand, formation,
strata or depth for the purpose of producing and recovering any oil,
gas, liquid, hydrocarbon, or any of them.
(b)
All
technical or oil and gas industry words or phrases used herein and
not specifically defined herein shall have that meaning customarily
attributable thereto by prudent operators in the oil and gas industry.
(1973 Code, sec. 20-3; 1991 Code,
sec. 21-1; 2007 Code, sec. 16-148)
The city council finds a necessity that future drilling, production
and transportation for oil and gas within the corporate limits of
the city be regulated because of the fire hazards, menace of falling
derricks, unsanitary conditions, possibility of contaminated city
water supply and contaminated surface waters, damage to neighboring
property, objectionable noise, atmospheric pollution and for protection
of the public health, safety and welfare for which the police power
of the state delegated to this city is hereby invoked in aid of the
enforcement of this article.
(1973 Code, sec. 20-2; 1991 Code,
sec. 21-2; 2007 Code, sec. 16-149)
The city manager, with the approval of the city council, shall
appoint an oil and gas inspector, who shall enforce the provisions
of this article.
(1973 Code, sec. 20-11; 1991 Code,
sec. 21-3; 2007 Code, sec. 16-150)
It shall be unlawful and an offense for any person to use or
operate in connection with the drilling or reworking of any well within
the city limits, any wooden derrick or any steam-powered rig, and
all engines shall be equipped with adequate mufflers approved by the
oil and gas inspector; or to permit any drilling rig or derrick to
remain on the premises or drilling site for a period longer than 60
days after completion or abandonment of the well. At all times from
the start of erection of a derrick or a mast or a gin-pole, until
the well is abandoned and plugged or completed as a producer and enclosed
with a fence as herein provided, the permittee shall keep a watchman
on duty on the premises at all times; provided, however, that it shall
not be necessary to keep an extra watchman on duty on the premises
when other workmen of the permittee are on the premises. A blowout
preventer, control head and other connections for keeping the well
under control at all times shall be installed as soon as the surface
casing is set. Blowout preventers shall be tested against pressure
at least once every 24 hours. All controls of such equipment shall
be in good working order and condition at all times.
(1973 Code, sec. 20-14; 1991 Code,
sec. 21-4; 2007 Code, sec. 16-151)
Steel slush pits shall be used in connection with all drilling
and reworking operations. Such pits and contents shall be removed
from the premises and the drilling site within 60 days after completion
of the well. No earthen slush pits shall be used.
(1973 Code, sec. 20-15; 1991 Code,
sec. 21-5; 2007 Code, sec. 16-152)
All drilling and operation at any well performed by a permittee
under this article shall be conducted in accordance with the best
practices of a reasonable and prudent operator. All casing, valves,
blowout preventers, drilling fluid, tubing, bradenhead, Christmas
tree and well head connections shall be of a type and quality consistent
with the best practices of such reasonable and prudent operator. Setting
and cementing casing and running drill stem tests shall be performed
in a manner and at a time consistent with the best practices of such
reasonable prudent and operation. Each permittee under this article
shall observe and follow the recommendations and/or regulations of
the American Petroleum Institute and the railroad commission of the
state.
(1973 Code, sec. 20-16; 1991 Code,
sec. 21-6; 2007 Code, sec. 16-153)
Surface casing properly cemented is required to conform with
rules and regulations as promulgated by the state railroad commission
and the state commission on environmental quality. Surface casing
must be set to 100 feet below the producing water sand in any well
drilled within 1,000 feet of a city water well.
(1973 Code, sec. 20-17; 1991 Code,
sec. 21-7; 2007 Code, sec. 16-154)
The premises shall be kept in a clean and sanitary condition,
free from rubbish of every character, high grass, weeds or combustible
trash, to the satisfaction of the health officer, at all times drilling
operations or reworking operations are being conducted, and as long
thereafter as oil and/or gas is being produced therefrom. It shall
be unlawful for any permittee, his agent or employee to permit within
the corporate limits of the city any mud, water, waste oil, slush
or other waste matter from any slush pit, storage tank or oil and/or
gas well located within the corporate limits of the city, or from
any premises within the city, developed or being developed for oil
and/or gas purposes, to run into the alleys, streets, lots, land or
leases within the corporate limits of the city.
(1973 Code, sec. 20-18; 1991 Code,
sec. 21-8; 2007 Code, sec. 16-155)
Motive power for all operations after completion of drilling
operations shall be electricity or properly muffled gas, gasoline
or diesel engines, and such mufflers are to be approved by the oil
and gas inspector prior to their use.
(1973 Code, sec. 20-19; 1991 Code,
sec. 21-9; 2007 Code, sec. 16-156)
It shall be unlawful and an offense for any person to use, construct
or operate in connection with any producing well within the city limits
any crude oil storage tanks except to the extent of two steel tanks
for oil storage, not exceeding 500 barrels capacity each and so constructed
and maintained as to be in safe operating condition and so as not
to constitute a public nuisance. A permittee may use, construct and
operate a steel conventional separator and such other steel tanks
and appurtenances as are necessary for treating oil with each of such
facilities to be so constructed and maintained as to be in safe operating
condition and so as not to constitute a public nuisance. Each oil
or gas separator shall be equipped with both a regulation pressure
relief safety valve and a bursting head. Any oil or gas produced may
be transported outside of the city limits by underground pipelines.
All permanent oil tanks or battery of tanks must be surrounded by
a dike of at least 1-1/2 the capacity of the tank or battery of tanks.
No fuel tank or other oil tank shall hereafter be placed nearer than
150 feet to any derrick, rig, building, power plant or boiler of any
description.
(1973 Code, sec. 20-20; 1991 Code,
sec. 21-10; 2007 Code, sec. 16-157)
Any person who completes any well as a producer shall have the
obligation to enclose said well, together with its surface facilities,
by a substantial concrete block fence sufficiently high and properly
built so as to ordinarily keep persons and animals out of the enclosure
with all gates thereto to be kept locked when the permittee or his
employees are not within the enclosure; provided, however, that the
city council, at their discretion, may waive the requirements of any
fence or may designate the type of fence to be erected.
(1973 Code, sec. 20-21; 1991 Code,
sec. 21-11; 2007 Code, sec. 16-158)
All oil operations, drilling and production operations shall
be conducted in such a manner as to eliminate, as far as practicable,
dust, noise, vibration or noxious odors, and shall be in accordance
with the best accepted practices incident to exploration for, drilling
for and production of oil, gas and other hydrocarbon substances. Proven
technological improvements in exploration, drilling and production
methods shall be adopted as they become, from time to time, available,
if capable of reducing factors of nuisance and annoyance.
(1973 Code, sec. 20-22; 1991 Code,
sec. 21-12; 2007 Code, sec. 16-159)
No permittee engaged in the drilling or operation of an oil
and/or gas well within the corporate limits of the city shall permit
to escape into the air or to flare or burn gas from a torch or any
similar means within the corporate limits of the city, except that
gas may be burned for a limited time when necessary to complete an
oil and/or gas well upon the original completion or upon the recompletion
of workover jobs upon oil and/or gas wells.
(1973 Code, sec. 20-23; 1991 Code,
sec. 21-13; 2007 Code, sec. 16-160)
(a)
No
forge, open light, welding torch or electric welding equipment or
other flame-producing or spark-producing equipment shall be placed
nearer than 150 feet of any well showing oil or gas.
(b)
Adequate
firefighting apparatus and supplies, approved by the city fire department,
shall be maintained on the drilling site at all times during drilling
and production operations. All machinery, equipment and installations
on all drilling sites within the city limits shall conform with such
requirements as may from time to time be issued by the fire department.
(c)
Printed
signs reading “DANGEROUS, NO SMOKING ALLOWED” or similar
words shall be posted in conspicuous places on each producing unit.
(1973 Code, sec. 20-24; 1991 Code,
sec. 21-14; 2007 Code, sec. 16-161)
Whenever any well is abandoned it shall be the obligation of
the permittee and the operator of the well to set a 200-foot cement
plug in the bottom of the surface casing section, and the top of the
plug 100 feet above the surface casing section; and to set a 50-foot
cement plug in the top of the surface casing. No surface or conductor
string of casing may be pulled or removed from a well. During initial
abandonment operations it will be the obligation of the permittee
and the operator of the well to flood the well with mud-laden fluid
weighing not less than ten pounds per gallon, and the well will be
kept filled to the top with such mud-laden fluid at all times; mud-laden
fluid of the above specifications will be left in the well bore below
and between cement plugs. Any additional provisions or precautionary
measures prescribed by the state or the [railroad] commission of the
state in connection with the abandonment and plugging of a well shall
be complied with by the permittee. Within 30 days after the completion
or abandonment of any oil or gas well, the mud and other similar matter
and materials used in connection with the drilling and operations
thereon shall be removed from the premises and the surface put in
the same condition it was in before the operations commenced. This
section shall apply except as otherwise provided by the rules of the
state railroad commission.
(1973 Code, sec. 20-25; 1991 Code,
sec. 21-15; 2007 Code, sec. 16-162)
The permittee shall make adequate provisions for the disposal
of all salt water or other impurities which he may bring to the surface,
and such disposal is to be made in such a manner as to not contaminate
the water supply, present or prospective, or to injure surface vegetation.
(1973 Code, sec. 20-26; 1991 Code,
sec. 21-16; 2007 Code, sec. 16-163)
Any violation of the laws of the state or any rules, regulations
or requirements of any state or federal regulatory body having jurisdiction
in reference to drilling, completing, equipping, operating, producing,
maintaining or abandoning an oil or gas well or related appurtenances,
equipment or facilities, or in reference to firewalls, fire protection,
blowout protection, safety protection or convenience of persons or
property, shall also be a violation of this article and shall be punishable
in accordance with the provisions hereof.
(1973 Code, sec. 20-27; 1991 Code,
sec. 21-17; 2007 Code, sec. 16-164)
It shall be unlawful and an offense for any person to violate
or neglect to comply with any provision hereof irrespective of whether
or not the wording of each section hereof contains the specific language
that such violation or neglect is unlawful and is an offense. Any
person who shall violate any of the provisions of this article, or
any of the provisions of a drilling and operating permit issued pursuant
hereto, or any condition of the bond filed by the permittee pursuant
to this article, or who shall neglect to comply with the terms hereof,
shall be deemed guilty of a misdemeanor; and the violation of each
separate provision of this article, and of such permit and of such
bond, shall be considered a separate offense, and each day’s
violation of each separate provision thereof shall be considered a
separate offense. In addition to the foregoing penalties, it is further
provided that the city council at any regular or special session or
meeting thereof may, provided ten days’ notice has been given
to the permittee that revocation is to be considered at such meeting,
revoke or suspend any permit issued under this article and under which
drilling or producing operations are being conducted in the event
the permittee thereof has violated any provision of such permit or
bond or this article. In the event that the permit is revoked, the
permittee may make application to the city council for a reissuance
of such permit, and the action of the city council thereon shall be
final.
(1973 Code, sec. 20-28; 1991 Code,
sec. 21-18; 2007 Code, sec. 16-165)
It shall be unlawful and an offense for any person, acting either
for himself or as agent, employee, independent contractor or servant
of any other person, to commence to drill, or to operate, any well
within the city limits or to work upon or assist in any way in the
production or operation of any such well, without a permit for the
drilling and operation of such well having first been issued by the
authority of the city council in accordance with the terms of this
division.
(1973 Code, sec. 20-4; 1991 Code,
sec. 21-36; 2007 Code, sec. 16-184)
No well shall be drilled and no permit shall be issued for any
well to be drilled at any location which is within any of the streets
or alleys of the city. No street or alley shall be blocked or encumbered
or closed in any drilling or production operation except by special
permit by order of the city council, and then only temporarily.
(1973 Code, sec. 20-5; 1991 Code,
sec. 21-37; 2007 Code, sec. 16-185)
No well shall be drilled and no permit shall be issued for any
well to be drilled or reopened at any location which is nearer than
300 feet of any residence, commercial building or structure without
the applicant having first secured the written permission of the owner
thereof.
(1973 Code, sec. 20-6; 1991 Code,
sec. 21-38; 2007 Code, sec. 16-186)
Every application for a permit to drill and operate a well shall
be in writing, signed by the applicant or by some person duly authorized
to sign same on his behalf. It shall be filed with the city manager
or designee and be accompanied with a filing fee as currently established
or as hereafter adopted by resolution of the city council from time
to time. No application shall request a permit to drill and operate
but one well. The application shall include full information, including
the following:
(1)
The
date of said application.
(2)
Name
of the applicant.
(3)
Address
of the applicant.
(4)
Proposed
site of the well, including:
(A)
Name of the mineral owner and surface owner.
(B)
Name of the lease owner.
(C)
Brief description of the land.
(D)
Detailed plat showing the staked well site and course and distance
to the well site from fixed visible surface markers and locations
of all proposed tanks for slush or storage of oil.
(5)
Type
of derrick to be used.
(6)
The
proposed depth of the well.
(7)
Have
attached a copy of the state railroad commission permit for the well.
(1973 Code, sec. 20-7; 1991 Code,
sec. 21-39; 2007 Code, sec. 16-187; Ordinance adopting 2022 Code)
(a)
The city manager, within 20 days after the filing of the application for a permit to drill and operate a well, shall determine whether or not such application complies in all respects with the provisions of this division and the bonding and insurance requirements provided for in section 5.11.047. If it does, a permit for the drilling and operation of the well shall be issued. Each permit issued under this division shall:
(1)
By reference have incorporated therein all provisions of this division
with the same force and effect as if this division were copied verbatim
in such permit.
(2)
Specify the well location with particularity as to lot number, block
number, name of addition or subdivision, or other available correct
legal description; such location may not be changed after issuance
of a permit.
(3)
Contain and specify that the term of such permit shall be for a period
of one year from the date of the permit and as long thereafter as
the permittee is engaged in drilling operations with no cessations
of such operations for more than 90 days, or oil or gas is produced
in commercial quantities from the well drilled pursuant to such permit;
provided that if at any time after discovery of oil or gas the production
thereof in commercial quantities shall cease, the term shall not terminate
if the permittee commences additional reworking operations within
90 days thereafter as oil or gas is produced in commercial quantities
from such well.
(4)
Contain and specify such conditions as are authorized by this division.
(5)
Specify the total depth to which the well may be drilled, not exceeding
the projected depth.
(6)
Contain and specify that no actual operations shall be commenced until the permittee shall file and have approved an indemnity bond in the designated principal amount as so determined by the city council and conditioned as specified in section 5.11.047. Such permit, in duplicate originals, shall be signed by the city manager, and prior to delivery to the permittee’s drilling and operating license and the contractual obligation of the permittee to comply with the terms of such permit and such bond and this division [sic].
(b)
If
the permit for the well be refused, or if the applicant notifies the
city council in writing that he does not elect to accept the permit
as tendered and wishes to withdraw his application, then upon the
happening of such events the cash deposit provided for to be filed
with the application shall be returned to the applicant, except that
there shall be retained therefrom by the city a processing fee as
currently established or as hereafter adopted by resolution of the
city council from time to time.
(1973 Code, sec. 20-8; 1991 Code,
sec. 21-40; 2007 Code, sec. 16-188)
When a permit shall have been issued, the same shall terminate
and become inoperative without any action of the part of the city
unless within 90 days from the date of issuance actual drilling of
the well shall have commenced. The cessation for a like period of
the drilling operations or the cessation of the production of oil
or gas from the well after production shall have commenced shall operate
to terminate and cancel the permit, and the well shall be considered
as abandoned for all purposes of this division. It shall be unlawful
thereafter to continue the operation or drilling of such well without
the issuance of another permit.
(1973 Code, sec. 20-9; 1991 Code,
sec. 21-41; 2007 Code, sec. 16-189)
In the event a permit be issued by the city manager under the
terms of this division for the drilling and operation of a well, no
actual drilling operations shall be commenced until the permittee
shall file with the city manager or designee a bond and a certificate
of insurance, as follows:
(1)
Bond.
A bond in the principal sum as currently established
or as hereafter adopted by resolution of the city council from time
to time.
(A)
Such bond shall be executed by a reliable insurance company authorized
to do business in the state, as surety, and with the applicant as
principal, running to the city for the benefit of the city and all
persons concerned, conditioned that the permittee will comply with
the terms and conditions of this division in the drilling and operations
of the well. Such bond shall become effective on or before the date
the same is filed with the city manager or designee and remain in
force and effect for at least a period of six months subsequent to
the expiration of the term of the permit issued. In addition, the
bond will be conditioned that the permittee will promptly pay off
fines, penalties and other assessments imposed upon permittee by reason
of his breach of any of the terms, provisions and conditions of this
article, and that the permittee will promptly restore the streets
and sidewalks and other public property of the city, which may be
disturbed or damaged in the operations, to their former condition;
and that the permittee will promptly clear all premises of all litter,
trash, waste and other substances used, allowed or occurring in the
drilling or producing operations and will, after abandonment, grade,
level and restore the property to the same surface condition, as nearly
as possible, as existed when operations for the drilling of the well
or wells were first commenced; and that the permittee will indemnify
and hold the city harmless from any and all liability growing out
of or attributable to the granting of such permit. If at any time
the city council shall deem any permittee’s bond to be insufficient
for any reason, it may require the permittee to file a new bond.
(B)
If, after completion of a well, the permittee has complied with all
of the provisions of this article such as removing the derrick, clearing
the premises, etc., he may apply to the city council to have such
bond reduced to a sum of not less than as currently established or
as hereafter adopted by resolution of the city council from time to
time for the remainder of the time such well produces without reworking.
During reworking operations the amount of the bond shall be increased
to the original amount.
(2)
Insurance.
(A)
In addition to the bond required in subsection (1) of this section,
the permittee shall carry policies of standard comprehensive public
liability insurance, including contractual liability covering bodily
injuries and property damage, naming the permittee and the city, in
an insurance company authorized to do business within the state; such
policies in the aggregate shall provide for the minimum coverages
as currently established or as hereafter adopted by resolution of
the city council from time to time.
(B)
The permittee shall file with the city manager or designee certificates
of such insurance as above stated, and shall obtain the written approval
thereof by the city manager, who shall act thereon within ten days
from the date of such filing. Such insurance policies shall not be
canceled without written notice to the city manager or designee at
least ten days prior to the effective date of such cancellation. In
the event that such insurance policies are canceled, the permit granted
shall terminate, and the permittee’s rights to operate under
such permit shall cease until the permittee files additional insurance
as provided herein.
(C)
If, after completion of a well, the permittee has complied with all
of the provisions of this article, such as to removing the derrick,
clearing the premises, etc., he may apply to the city council to have
such insurance policy limits reduced for the remainder of the time
such well produces without reworking. Such limits shall be as currently
established or as hereafter adopted by resolution of the city council
from time to time.
|
During reworking operations the amount of the insurance policies
shall be increased to the original amount.
|
(1973 Code, sec. 20-10; 1991 Code,
sec. 21-42; 2007 Code, sec. 16-190; Ordinance adopting 2022 Code)
No permittee shall make any excavations or construct any lines
for the conveyance of fuel, water or minerals on, under or through
the streets and alleys of the city without the express permission
of the city council, in writing, and then only in strict compliance
with the ordinances of the city.
(1973 Code, sec. 20-12; 1991 Code,
sec. 21-43; 2007 Code, sec. 16-191)
(a)
Once
any well has either been completed as a producer or abandoned as a
dry hole, it shall be unlawful and an offense for any person to drill
such well to a deeper depth than that reached in the prior drilling
operations without the permittee to such well obtaining a supplemental
permit after filing a supplemental application with the city manager
or designee specifying:
(1)
The then-condition of the well and casing therein.
(2)
The depth to which it is proposed such well be deepened.
(3)
The proposed casing program to be used in connection with proposed
deepening operations.
(4)
Evidence of adequate current tests showing that the casing strings
in such well currently passed the same tests as are in this division
provided for in case of the drilling of the original well.
(b)
In
the event the city council is satisfied that the well may be deepened
with the same degree of safety as existed in the original well, a
supplemental permit may be issued without additional filing fee to
the permittee authorizing the deepening and operation of the well
to such specified depth as applied for.
(c)
In
any deeper drilling or any deeper completion or any deeper production
operations the permittee shall comply with all other provisions contained
in this article and applicable to the drilling, completion and operation
of a well.
(1973 Code, sec. 20-13; 1991 Code,
sec. 21-44; 2007 Code, sec. 16-192; Ordinance adopting 2022 Code)
