These regulations are established for the purpose of promoting
and protecting the public health, safety, and general welfare of the
community and in the furtherance of conserving the value of property
and establishing a community desirable to reside therein.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.01)
The following words and phrases, when used in this article,
shall have the meaning ascribed to them by this section. All terminology
used in this article and not specifically defined herein shall retain
its meaning in conformance with applicable publications of the American
National Standards Institute (ANSI) or its successor body or if not
defined therein the latest volume of Merriam-Webster’s Collegiate
Dictionary. Generally, all technical or oil and gas industry words
or phrases used herein and not specifically defined herein shall have
that meaning customarily attributed to them by the oil and gas industry.
means one contiguous body or block of land composed of one
or more tracts complying with the spacing regulations promulgated
by the state railroad commission or its successor.
means any area within the corporate limits of the city designated
as a fire zone by any provision of this article or in any ordinance
duly adopted and approved by the city council.
means the person to whom the city issues a permit to drill
and operate a well under the provisions of this article, or its administrators,
executors, heirs, successors, and assigns.
means any hole or holes, bore or bores, which is, or are,
drilled, bored, dug, sunk, or put down to any depth, strata, sand,
or formation for the purpose of exploring for or ascertaining the
existence of any oil, gas, or liquid hydrocarbon, or for the purpose
of producing and recovering any oil, gas, or liquid hydrocarbon.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.02)
Neither the city nor any authorized agent acting under the terms
of this article shall be liable or have any liability by reason of
orders issued, or not issued, or work done, or not done, in compliance
with the terms of this article.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.03)
Every person, firm, corporation, association, or other legal entity desiring to drill and/or operate any gas or oil well of any kind in the city limits must obtain the proper permit from the city secretary before proceeding. To obtain said permit the person, firm, corporation, association, or other legal entity shall submit to the city secretary proof of valid state certification and compliance with the rules and regulations as promulgated by the state railroad commission, or its successor. In addition, a permit fee as set forth in section A4.006 of the fee schedule in appendix A of this code shall be required before any such permit may be issued.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.04; Ordinance adopting 2019 Code)
Any violation of the state laws or any rules, regulations, or
requirement 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, 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.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.05)
The premises of each well shall be kept clean and sanitary,
free from rubbish of every character, to the satisfaction of the city
health officer at all times drilling operations or reworking operations
are being conducted and as long thereafter as oil or gas is being
produced from the well.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.06)
At all times from the start of erection of a derrick, a mast,
or a gin pole until the well is completed as a producer and enclosed
with a fence or until the well is abandoned and plugged, the permittee
shall keep a watchman on duty on the premises.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.07)
The drilling of a well within the fire zone of the city will
be permitted only under the following conditions and restrictions:
(1)
By
first securing the written approval of the city council;
(2)
By
complying with all of the terms and provisions of this article;
(3)
No
butane or propane gas shall be used in any such drilling or producing
operation; and
(4)
No
tank batteries shall be located or situated within the fire zone.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.08)
Any operator desiring to rework a well shall give the city council
written notice of this intent prior to the commencement of reworking
operations; provided, however, in the event of an emergency an operator
may proceed with such reworking without notice.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.09)
No well shall be drilled and no permit shall be issued for any
well to be drilled at any location which is nearer than 500 feet to
any residence, building or structure without the applicant for a permit
having first secured the written permission of the owner or owners
thereof.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.10)
(a)
It
shall be unlawful to drill any well and no permit shall be issued
for any well to be drilled at any location which is within 50 feet
of the boundary line of any of the streets, alleys, public ways, and
water wells of the city. No street, alley or public way shall be blocked,
encumbered or closed in any drilling or production operation, except
on a temporary basis and then only by special permit issued by the
city council.
(b)
Every
oil and gas well drilled within 1,500 feet of the site of any existing
or designated future municipal water well of the city shall have casing
set and cemented down to the first impervious stratum below the Trinity
sand formation, and similar casing shall be set and cemented on wells
located at greater distances from such water wells when requested
by the city council. Such requirements may be waived by the city council
for good cause shown after due hearing; but, if not waived by the
city council, may be enforced by injunction, or any other available
remedy. No drilling permit shall ever be issued to any person for
the drilling or operation of any well, when such person is in default
hereunder, and any such permit inadvertently issued shall be deemed
wholly void from the beginning.
(c)
It
shall be unlawful to drill any well and no permit shall be issued
for any well to be drilled at any location that is within or within
50 feet of the boundary line of a public park or a park owned and
maintained by a homeowners’ association.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.11)
No permit shall authorize the drilling, completion, and operation
of more than one well to each reservoir on each drilling unit, as
provided by the state railroad commission, or its successor, on such
unit, and it shall be unlawful to drill on each reservoir more than
one well on each unit; provided, however, that in the event a well
is lost or abandoned as a dry hole, the permittee may relocate the
well on the drilling unit involved and drill and complete such relocated
well under the permit for the first well by filing a plat and certificate
showing the abandonment of the first well and the location of the
second well.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.12)
Whenever any well is abandoned, it shall be the obligation of
the permittee and the operator of the well to set a cement plug in
the casing from the base of the Wilcox formation to the specifications
as set forth by the state railroad commission, or its successor.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.13)
The productive string shall have a mill test of 1,800 pounds
for wells 6,000 feet or less in depth. The surface casing shall be
new pipe and shall have a mill test of 1,100 pounds.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.14)
No well shall be drilled within the city without properly setting
the surface casing. No well shall be drilled within the city without
cementing the surface casing by the pump and plug method with sufficient
cement to completely fill all the annular space behind such casing
to the surface of the ground, and without cementing the production
string by the pump and plug method with sufficient cement to completely
fill the annular space behind the production string to the surface
of the ground. The production string shall be centralized from 1,000
feet to the surface with the use of five centralizers to be placed
at depths of 100 feet, 300 feet, 500 feet, 700 feet and 950 feet.
Sufficient cement shall be used so as to insure the circulation of
cement from the bottom of the oil string to the surface.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.15)
The Christmas tree and all well head connections on each well
head shall be as follows: On all wells completed at a depth above
4,000 feet, the Christmas tree and well head connections shall be
at least a minimum working pressure of 1,000 pounds per square inch
(psi) at a minimum test pressure of at least 4,000 psi; and on all
wells completed to a depth of from 4,001 feet to 7,000 feet, the Christmas
tree and well connections shall have at least a minimum working pressure
of 3,000 psi and a minimum test pressure of at least 6,000 psi; and
on all well head connections there shall be at least a minimum working
pressure of 5,000 psi and a minimum test pressure of at least 10,000
psi. In the event the surface shut-in pressure of any well exceeds
2,000 psi, the flow string of the Christmas tree shall be equipped
with an automatic closing safety valve in addition to the regular
control valves.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.16)
It shall be unlawful for any person to use or operate any wooden
derrick(s) or any steam-powered rig in connection with the drilling
or reworking of any well, or to permit any derrick or derricks to
remain on the premises or drilling site for a period longer than 30
days after completion of abandonment of the well.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.17)
The permittee shall make adequate provisions for the disposal
of all salt water or other impurities which may be brought to the
surface from the depth of the well. No salt water pits, vats, or other
open storage of salt water shall be permitted within the city. All
movement of salt water from within or without the city shall be by
enclosed lines with no leakage.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.18)
All operators shall be required to drill all wells with mud
through the process commonly referred to as mud drilling. Drilling
with air and/or gas shall be prohibited.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.19)
It shall be unlawful for any person to take or to complete any
drill stem test or tests except during daylight hours and then only
if the well effluent during the test is produced through an adequate
oil and gas separator to storage tanks, and 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 pipe.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.20)
Any person who completes a well as a producer shall have the
obligation to enclose said well, tank battery and any other surface
facilities by a substantially smooth net wire fence sufficiently high
and properly built so as to ordinarily keep persons and animals out
of the enclosure. All gates thereto shall be kept locked when the
permittee or employees are not within the enclosure. Tank batteries
shall be enclosed by earthen firewalls arranged so that the capacity
of the enclosure will be sufficient to contain the full volume of
oil in the tanks.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.21)
No water, gas, air or chemicals shall be injected into any oil
well for the purpose of forcing oil out of the producing formation
or for any other purpose. In applying for such approval, the permittee
shall include in the application a detailed statement of the method
to be used in injecting said water, gas, air or chemicals.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.22)
(a)
All
engines used in the drilling of any well, derrick or rig shall be
equipped with mufflers and approved by the city council.
(b)
Motive
power for all operations after completion of drilling operations shall
be electric or properly muffled gas or gasoline engines. Such mufflers
shall be approved by the city engineer. All pumping wells shall be
equipped with electric motors.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.23)
All slush pits or other means of storing mud or water for use
in drilling or reworking operations shall be constructed, dug or placed
at the location and in the manner specified by the state railroad
commission, or its successor.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.24)
Printed signs reading “Dangerous, No Smoking Allowed”
shall be posted in conspicuous places on each producing unit.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.25)
All crude oil storage tanks shall be located at the place designated
by and in the manner recommended by the state railroad commission,
or its successor. No oil, gas, salt water or other pipelines shall
be installed in the streets, alleys, public ways or on property owned
by the city without prior consent of the city council. Use of such
streets, alleys, public ways or municipally owned property for such
purpose shall be subject to the terms and conditions imposed by the
city council. The depth and location at which such lines shall be
laid shall be specified by the city council or its duly designated
representative.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.26)
All tubing used in any well drilled to a depth of 6,000 feet
or less shall be J-55 mill tested to 3,000 psi.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.27)
Valves and blow-out preventers shall be installed when deemed
necessary.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.28)
No person engaged in drilling or operating any well shall permit
gas to escape or be vented into the air within the city. Flaring of
gas within the city is prohibited.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.29)
It shall be unlawful for any person acting either for himself
or herself, or acting as the agent, servant, employee or independent
contractor of any other person, to commence to drill or to operate
any well within the city or to work upon or assist in any way in the
prosecution or operation of any such well without a permit for the
drilling and operation of such well having first been issued by authority
of the city council.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.30)
(a)
Every
application for a permit to drill and operate a well shall be in writing
and signed by the applicant or by some person duly authorized to sign
the same on his or her behalf, which such application shall be filed
with the city secretary. No application shall request a permit to
drill and operate more than one well.
(b)
The
application shall contain full information, including the following:
(1)
Date of application;
(2)
Name and address of the applicant;
(3)
Proposed site of the well, accompanied by a plat of the drilling
unit showing the descriptions of the lots, blocks or tracts owned
or controlled by the applicant. Such plats shall be prepared by a
registered public surveyor of the state;
(4)
Name(s) of the fee owner(s);
(5)
Names(s) of the lease owner(s) and a copy of the lease agreement;
(6)
A brief description of the land;
(7)
Type of derrick to be used;
(8)
Whether the well shall be drilled as an oil or gas well;
(9)
Proposed depth of well; and
(10)
Motive power of the rig that is to be used.
(c)
The
application must contain proof of a valid certification from the state
railroad commission, or its successor.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.31)
Every application for a permit to drill and operate a well shall be accompanied by a filing fee in the amount set forth in section A4.006 of the fee schedule in appendix A of this code, in cash.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.32; Ordinance adopting 2019 Code)
The city council shall have the authority to refuse any application
for a permit when by reason of the location of the proposed well and
the character and value of the permanent improvements already erected
on the drilling unit in question or adjacent thereto, or the use to
which the land and surroundings are adapted for public or civic purposes,
or for sanitary reasons, the drilling of an oil or gas well would
be injurious or a disadvantage to the health, safety, morals or welfare
of the city or its inhabitants.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.33)
(a)
Within
30 days after the filing of the application for a permit to drill
and operate a well, the city council shall determine whether the application
complies with the provisions of this article and, if it does, shall
fix the amount of the principal of the bond required by this article.
After such determination, the city council shall issue a permit for
the drilling and operation of the well described in said permit.
(b)
Each
permit issued under this article shall:
(1)
Have incorporated therein by reference all the provisions of this
article with the same force and effect as if this article were copied
verbatim in said permit;
(2)
Specify the location of the well with particularity as to lot number,
block number, name of addition or subdivision or other available correct
legal description;
(3)
Specify that the terms of such permit shall be for a period of six
months from the date of the permit and for as long thereafter as the
permittee is engaged in contiguous drilling reworking operations,
or oil and gas is produced from the well in commercial quantities.
Provided, however, if at any time after discovery of oil or gas the
production thereof in commercial quantities shall cease, the term
of the permit shall not terminate if the permittee commences additional
reworking operations within six months thereafter, and if such reworking
operations result in the production of oil or gas from said well in
commercial quantities;
(4)
Specify such conditions as are by this article authorized;
(5)
Specify the total depth to which the well may be drilled; and
(6)
Specify that no actual drilling operations shall be commenced until
the permittees shall file and have approved an indemnity bond in the
designated principal amount as determined by the city council.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.34)
Each permit shall be prepared in duplicate originals and shall
be signed by the city secretary and by the permittee prior to the
delivery of such permit to the permittee. One original shall be retained
by the city and the other delivered to the permittee. When such permit
is signed by both parties, it shall constitute the permittee’s
drilling and operating license.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.35)
If the permit for the well shall be refused by the applicant
and [the applicant] notifies the city council in writing that he/she
does not elect to accept the permit as tendered and wishes to withdraw
the application, or if the bond of the applicant is not approved,
or if the applicant notifies the city council in writing that he or
she wishes to withdraw the application, then upon the happening of
any said events the cash deposit together with the application shall
be returned to the applicant, except that there shall be retained
therefrom by the city $100.00 as a processing fee.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.36)
A permit to drill and operate a well shall be issued only to
the holder of a valid oil, gas and mining lease.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.37)
Any permit for the purpose of drilling and operating a well
granted by the city shall not be transferable.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.38)
When a permit to drill and operate a well is issued, the same
shall terminate and become inoperative without action on the part
of the city unless within six months from the date of the issuance
of such permit actual drilling of the well designated therein shall
have commenced. The cessation for a like period of the drilling or
reworking 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 under this article. It shall be unlawful
to continue the operation or drilling of such well without the issuance
of another permit.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.39)
In the event a permit is issued by the city council for the
drilling and operation of a well, no actual drilling operations shall
be commenced until the permittee shall file with the city secretary
a bond and a certificate of insurance.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.40)
(a)
A
bond shall be required in the principal sum of such number of dollars
as has been determined by the city council but not less than $25,000.00
nor more than $1 million. Said bond shall be executed by a reliable
surety company authorized to do business in the state, as surety,
and by the permittee, 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 provisions of this article in the drilling
and operation of the well. Said bond shall become effective on or
before the date the same is filed with the city secretary and shall
remain in full force and effect for at least six months subsequent
to the expiration of the term of the permit issued, and in addition
the bond shall be conditioned that the permittee will promptly pay
off all fines, penalties and other assessments imposed upon the permittee
by reason of breach of any of the terms, provisions or conditions
of this article, and that the permittee will promptly restore the
streets, alleys, sidewalks and other public ways and 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 said property to the same surface
condition, as nearly as possible, as existed when operations for the
drilling of the well 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, cleaning
the premises, etc., he may apply to the city council to have said
bond reduced to a sum of not less than $10,000.00 for the remainder
of the time said well produces without reworking. During reworking
operations, the amount of the bond shall be increased to the original
amount.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.41)
(a)
The
permittee shall carry a policy or policies of standard comprehensive
public liability insurance, including contractual liability covering
bodily injuries and property damage, naming the permittee and the
city, with an insurance company authorized to do business in the state;
said policy or policies in the aggregate shall provide for an umbrella
coverage of at least $5 million, plus a minimum of $1 million coverage
for each accident.
(b)
The
permittee shall file with the city secretary certificates of said
insurance and shall obtain the written approval thereof by the city
council, who shall act thereon within 10 days from the date of such
filing. Said insurance policy or policies shall not be cancelled without
written notice to the city secretary at least 10 days prior to the
effective date of such cancellation. In the event said insurance policy
or policies are cancelled, the permit granted shall terminate and
the permittee’s rights to operate under said 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 the
provisions of this article, such as removing the derrick, clearing
the premises, etc., he or she may apply to the city council to have
said insurance policy or policies reduced as follows:
(1)
Bodily injury - $500,000.00 one person; $1 million one accident;
(2)
Property damage - $1 million;
|
for the remainder of the time said well produces without reworking
operations. During reworking operations, the amount of the insurance
policy or policies shall be increased to the original amounts.
|
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.42)
Any person who violates any provisions of this article shall, upon conviction, be subjected to a fine in accordance with the general penalty provided in section 1.01.009 of this code for each offense, unless otherwise specifically set forth in this code. Each day that such violation is permitted to continue shall constitute a separate offense. The term “person” as used in this section shall include the owner, occupant, mortgagee or vendor in possession, assignee or rentor, receiver, executor, trustee, or lessee, agent or any other person, firm or corporation directly, or indirectly, in control of a building or tract of land.
(Ordinance 89-2003 adopted 8/12/03; 2008 Code, pt. II, art. 45, sec.
1.43; Ordinance adopting 2019 Code)
