No person shall commence construction or operate any Oil or Gas Facility without first receiving a Special Use and Development Permit (“SUDP”) issued by the CDRC together with subsequent Grading and Building Permits and a Certificate of Completion as provided for in this Section. A separate SUDP shall be required for each separate Oil or Gas Facility.
11.2.1. 
When an SUDP has been issued for an Oil and Gas Facility or Facilities (“Facility”), such permit together with subsequent Grading and Building Permits as required and a Certificate of Completion shall constitute sufficient authority for commencement of drilling, operation, production, workover, maintenance, repair and testing and all other usual and customary activities associated with the exploration, development, operation and production of oil and gas.
11.2.2. 
An SUDP issued pursuant to this Ordinance shall expire or be revoked after a duly noticed public hearing held by the Board, if construction of the Oil and Gas Facility is not completed within two (2) years of the date of development approval of the SUDP (and the completion of administrative and judicial appeals), with the following exceptions: (i) a multiyear phased project that is approved by the development order approving the SUDP; (ii) an Oil and Gas Facility that is substantially completed.
11.2.3. 
Any development order granting, granting with conditions or denying an SUDP or an amendment to the SUDP shall be appealable to the Board by the applicant, any interested party or by the Administrator within thirty (30) days after issuance of the development order, by the CDRC.
11.3.1. 
An amendment to the SUDP shall be required prior to undertaking any substantial modification to the Oil and Gas Facility including, but not limited to, recompletion of a well or substantially altering equipment at the facility, a change in well configuration or type of product being produced (e.g. oil or gas), or a substantially altering the site layout, or any material change from conditions presented by the Applicant during the initial permitting process (including but not limited to a substantial increase in traffic or water use or consumption from that authorized or predicted in the assessments submitted for the Overlay Zoning, use of different materials or processes than those disclosed during permitting, substantial change in type of operations[)]. Any change in the location of wells shall require a reapplication for amendments to both the Overlay Zoning and SUPD development orders.
11.3.2. 
Any operation that deviates from the SUDP order that the Operator determines in good faith is extremely necessary to preserve the public health, safety or welfare or to prevent property damage or pollution may be done on an immediate basis without prior notice or approval by the County. The Applicant shall provide the Administrator with notification of such emergency modifications within six (6) hours after determining the need for emergency modifications, and thereafter by filing a request for a written amendment to the SUPD development order, specifying the modifications made, within two (2) working days of completion.
11.3.3. 
Once a well has either been completed as a producer or abandoned as a dry hole, an amendment to the SUPD is required to recomplete the well. The application for the SUDP amendment shall specify:
a. 
The condition of the well and the casing therein;
b. 
The depth to which it is proposed such well be deepened or the new intervals to be perforated;
c. 
The proposed casing program to be used in connection with proposed deepening operations; and
d. 
Evidence of adequate current tests showing that the casing strings in the well passed such tests.
11.3.4. 
In the event the CDRC is satisfied that the well may be reworked with the same degree of safety as existed in the original well, an amendment to the SUDP may be issued authorizing the operation. In any reworking operation, the Operator shall comply with all other provisions contained in this Ordinance.
11.4.1. 
A nonrefundable annual inspection fee is hereby levied upon each Oil and Gas Facility[1] operated or maintained within the County. The amount of such fee is set forth in Appendix A. The fee shall be paid by cashier’s check, wire transfer or certified funds. The fee shall be payable to the County on or before the annual anniversary date of the issuance of the SUDP. Failure to pay the fee within thirty (30) days after the annual fee is due shall lead to a public hearing with due notice to revoke the Overlay Zoning and SUDP orders. A late fee of an additional five hundred dollars ($500.00) per facility per month shall be imposed.
[1]
Editor's note–Appendix A is included as an attachment to this exhibit.
11.4.2. 
Revenue from fees collected pursuant to this Ordinance shall be placed in a special fund the revenue from which shall be used to retain and pay the Oil and Gas Inspector, other County staff, or professional consultants and to administer and enforce this Ordinance. Revenue in excess of that required to retain and pay the above expenses may be used for County general fund purposes.
11.5.1. 
Each Oil and Gas Facility shall provide on an annual basis the following information to the Administrator:
A. 
A current list of personnel who may be contacted in case of an emergency at the Oil and Gas Facility. This list shall contain all information required to be set forth in this Ordinance, information requested by the Administrator, and information including, but not limited, to the following:
i. 
the name(s) of such person or persons;
ii. 
the job description(s) of such person or persons; and
iii. 
the residence, office and mobile telephone numbers of such person or persons.
B. 
A list of all Oil and Gas Facilities owned or operated within the County by that Operator in the same ownership. This list shall include all wells except those that have been plugged and abandoned in compliance with law. The list shall contain all information requested by the Administrator, including but not limited to the following:
i. 
the lease name and well number of each well;
ii. 
the legal description of each well;
iii. 
the current status and use of each well; and
iv. 
the current status and use of each Oil and Gas Facility.
11.6.1. 
If a new Operator is proposed to be designated for an Oil and Gas Facility, an amendment to the SUDP shall be required.
11.6.2. 
The new Operator must provide copies of the approved Change of Operator, Form C-145, from the OCD in addition to all submittals required for an application for a SUDP specified herein.
11.6.3. 
The obligations stated in this Ordinance on the previous Operator shall not be released (including required financial security and insurance) until the new SUDP is obtained by the new Operator.
11.7.1. 
The position of Oil and Gas Inspector is established. The Oil and Gas Inspector shall serve under and at the direction of the Administrator. It shall be the duty of the Administrator and the Oil and Gas Inspector to monitor compliance with and enforce the provisions of this Ordinance. It shall also be the duty of the Oil and Gas Inspector to monitor compliance within the development order granting the SUDP. The Oil and Gas Inspector shall assist the Administrator and the CDRC with the technical review of applications.
11.7.2. 
The Oil and Gas Inspector shall be a person who, by virtue of education, training or experience is qualified to monitor compliance with and enforce the provisions of any SUDP issued pursuant to this Section. The Oil and Gas Inspector may be a person employed by the County as a Code Enforcement Officer or a person contracted to perform the duties.
11.8.1. 
No SUDP for the operation of an Oil or Gas Facility shall be issued for property within the County, unless that property has received a development order approving an Oil and Gas Overlay Zoning District Classification for the project as approved by the Board pursuant to Section 9 of the Ordinance.
11.8.2. 
If a property has received development approval for an Overlay Zone, no Oil or Gas Facility shall be constructed unless an SUDP for such Facility has been issued by the CDRC after a public hearing. Issuance of an SUDP is required before any person may locate a new Oil or Gas Facility or Facilities, to substantially change, expand, or modify an existing Oil or Gas Facility or Facilities, or re-enter a well that has been plugged and abandoned as shown in the records of the OCD.
11.8.3. 
An Oil or Gas Facility shall not be permitted within a site listed on the National Register for Historic Places, a site designated in the Galisteo Basin Archaeological Sites Protection Act (as amended), 108 Pub. L. No. 208, 118 Stat. 558 (2004), the Cerrillos Hills Historical Park, or the Ortiz Mountains Educational Preserve. Nothing in this paragraph shall prevent accessing oil and gas that lies beneath these areas through directional drilling or other advanced technologies, consistent with the other provisions of this Ordinance, so long as no Oil and Gas Facilities occupy the surface.
11.8.4. 
Applicants shall submit a single SUDP application for each Oil or Gas Facility located within the same physical surface location. Where a facility or facilities are not utilizing the same physical surface location, a separate SUDP application must be filed for each such individual facility.
11.8.5. 
An application for an SUDP is required and shall be in writing and signed by a person duly authorized to sign on behalf of the Owner of the mineral estate or the oil and gas lessee. The application shall be filed with the Administrator along with the required submittals set forth in this Ordinance, and the required application fee set forth in Appendix A of this Ordinance.[1] A separate application shall be required for each well and for each Oil and Gas Facility. Applications may be consolidated and processed simultaneously, but each Oil and Gas Facility shall be considered separately.
[1]
Editor's note–Appendix A is included as an attachment to this exhibit.
11.8.6. 
An Application for an SUDP shall include the following:
11.8.6.1 
The development order of the Board approving the “Oil and Gas Overlay Zoning District classification” establishing where the facility or facilities are to be located; and all documents, reports, plans, assessment reports and development orders in relation to the Overlay Zone proceedings.
11.8.6.2 
Copies of all relevant OCD documents filed in conjunction with the facility or facilities, including, but not limited to the application for a permit to drill (C-101) and the drilling plat (C-102);
11.8.6.3 
The completed Final Environmental Impact Report, Fiscal Impact Assessment, Water Availability Report, Traffic Impact Assessment, Geo-Hydrological Report, Emergency Services Response and Preparedness Plan and Adequate Public Facilities and Services Assessment that served as the basis for the Board’s development order on the Oil and Gas Overlay Zone application.
11.8.6.4 
A detailed development plan map with north arrow and appropriate scale for the parcel where the Oil or Gas Facility or Facilities and wells will be sited that shows: the location of the components of the proposed facility or facilities, including, but not limited to, wells, tanks, pipelines, compressors, separators, lights, storage sheds, tank batteries, impoundment facilities, and staging and storage areas; existing improvements; utility easements and rights-of-way, if any; site features, including floodways, streams, floodplains, waterbodies, drainage patterns, aquatic habitat, vegetative and wildlife habitat, historical, cultural and archaeological sites; existing and proposed topography as necessary to portray the direction and slope of the area affected by the Oil or Gas Facility or Facilities; boundaries of the lease; and compliance with all setback requirements set forth in the Board’s development order on the Overlay Zone application.
11.8.6.5 
Adequate evidence of satisfaction of the financial assurance and comprehensive general liability insurance requirements.
11.8.6.6 
A detailed reclamation plan, including a re-vegetation plan, that will return the area disturbed by the Oil or Gas Facility or Facilities to its natural condition. The plan must include a provision requiring monitoring on at least an annual basis for a period of ten (10) years. The reclamation plan shall be consistent with requirements imposed by the OCD.
11.8.6.7 
If a Change of Operator is desired, a description of the new Operator’s organizational structure, including a description of any wholly owned subsidiaries or parent companies and the relationship of the Operator to those subsidiary or parent companies in the same ownership.
11.8.6.8 
If a Change of Operator is desired, a complete list of Oil and Gas Facilities owned or operated in the State of New Mexico, including facilities owned or operated by a parent or subsidiary identified in the previous paragraph; and a list of all oil and gas facilities in which the applicant has had a permit suspended or revoked or paid an administrative fine for violations of law.
11.8.6.9 
If a Change of Operator is requested and, approved by the CDRC as an Amendment to the SUDP, a letter of indemnity from a parent or subsidiary corporation with the County identified as a third-party beneficiary shall be provided.
11.8.6.10 
If a Change of Operator is requested as an Amendment to the SUDP, a list of Oil and Gas Facilities owned or operated by the Applicant that are not in compliance with regulatory approvals in the relevant jurisdiction. For each such facility listed, provide details concerning the compliance issues experienced;
11.8.6.11 
If a new well or a workover of an existing well is proposed, a drilling or workover plan shall be submitted, including the amount, weight and size of conductor pipe, surface pipe and production pipe, and the procedures proposed for cementing each;
11.8.6.12 
If plugging and abandonment is proposed, a plugging and abandonment plan shall be submitted that details the proposed operations and is otherwise consistent with requirements imposed by the OCD;
11.8.6.13 
The name and address of the person upon whom service of process or legal notice may be made on the Applicant within this State; and
11.8.6.14 
A nonresident Applicant shall provide copies of documents establishing the Applicant’s right to do business in the State of New Mexico from the Public Regulation Commission and shall designate a person within the State authorized to receive all notices and service of process;
11.8.6.15 
Where the Application is one for the re-entry of an abandoned well, said application shall contain all the information required by this Section, and shall also provide all of the following information:
(a) 
a statement of:
i. 
the condition of the abandoned well at the time the application is filed;
ii. 
the depth to which it is proposed such well shall be deepened; and
iii. 
the casing program to be used in connection with the proposed deepening.
(b) 
a statement of the tests which will be run on the casing strings to show that the casing strings meet the same requirements for an original well. Include any proposed remedial cementing.
The same Notice shall be provided by the Applicant required for the Application for the Oil and Gas Overlay Zoning District Classification, as specified in Section 9.8 of the Ordinance.
Each Application for approval of an SUDP shall be accompanied by a nonrefundable application fee in the amount set forth in Appendix A,[1] The application fee shall be paid by cashier’s check, wire transfer or certified funds.
[1]
Editor's note–Appendix A is included as an attachment to this exhibit.
11.11.1. 
The Administrator shall refer an Application for approval of an SUDP to other government agencies, cities, or entities having a statutory interest in the matter, or otherwise affected by the Application, for review and comment, including but not limited to, specifically, the New Mexico Oil Conservation Division, the New Mexico Taxation and Revenue Department, the New Mexico Environment Department, the New Mexico State Engineer, and the New Mexico State Land Office and the City of Santa Fe.
11.11.2. 
The County may, in its discretion and at the expense of the Applicant, hire experts to review the Application and submittals or to evaluate specific technical issues, or require the Applicant to retain experts to provide analysis and studies of relevant issues to support the Application.
11.11.3. 
When an Application is scheduled for public hearing, the Administrator shall provide any comments received by other government agencies at the public hearing held on the Application.
The Administrator shall notify the Applicant concerning the completeness of the Application within thirty (30) days of receipt. No Application shall be processed by the CDRC until it has been deemed to be complete by the Administrator.
The CDRC shall set a public hearing for the Application after the Administrator’s determination that the Application is complete.
Each Application for approval of an SUDP shall be reviewed by the CDRC[:]
11.14.1. 
for consistency with the General Plan Oil and Gas Element, any applicable Area Plan including but not limited to a Galisteo Area Plan, and with the development order issued by the Board on the Overlay Zone Application.
11.14.2. 
to determine whether the proposed Oil or Gas Facility or Facilities meet or exceed the performance standards as set forth in Section 11.17-18;
11.14.3. 
to determine whether the proposed location is compatible with adjoining uses given the size, design and operational characteristics of the proposed Oil or Gas Facility or Facilities, and whether the Facility or Facilities can be made compatible with the surrounding area by using reasonable efforts to mitigate the possible adverse consequences of operation of the Oil or Gas Facility or Facilities. Factors to be considered include impacts on property values, public safety, impacts on cultural, historical and archeological resources, emergency service response, wildlife and vegetation resources, noise, impacts on roads and highways, vibration, odor, glare, fire protection, access, visual impacts, and impacts upon air and water quality and quantity, the past performance of the Operator’s past compliance (or lack thereof) with federal, state and local laws pertaining to oil and gas exploration and production activities[.]
11.14.4. 
to determine whether the proposed Facility or Facilities will be detrimental to the safety, health, prosperity, order, comfort and convenience of the County pursuant to NMSA 1978, section 4-37-1.
11.14.5. 
to the extent consistent with the other Review Criteria, to locate the Facility or Facilities within the area determined by the OCD for such Facility or Facilities.
11.14.6. 
to determine if the proposed location is in a geologic hazard area or an area with slopes equal to or exceeding eleven percent (11%).
11.14.7. 
to determine whether the requirements for co-location and directional drilling have been met, and to determine whether the surface area occupied by the project is less than or equal to acreages permitted under this Ordinance.
11.14.8. 
to determine whether the Operator has violated any federal, state, and local laws regulating or pertaining to oil and gas exploration and production either in the United States or elsewhere. Relevant considerations include whether the Operator has experienced spills or leaks, water contamination (whether surface or subsurface), other environmental problems; the Operator or Owner’s prior reclamation activities; whether the Operator has damaged fauna, flora, historical, cultural or archaeological resources, streams, wetlands, floodway, and floodplains, hillsides, and adjacent properties in previous operations; as well as any measures taken by the Operator to alleviate any such problems.
11.14.9. 
Whether the proposed Oil or Gas Facility will have an adverse effect or impact on any fiscal, economic or environmental factors, including County services including budgets, housing, water supplies, transportation systems, utilities, health care, law enforcement and fire protection, emergency response, and whether the proposed facility will be detrimental to the public health, and safety.
The CDRC shall render a decision on the SUDP Application within 90 days of the Administrator’s certification that the Application is complete. The CDRC may approve, conditionally approve, or deny the SUDP Application and shall issue a written development order with findings of fact and conclusions of law.
11.16.1. 
Once an SUDP has been issued for an Oil or Gas Facility or Facilities, the Applicant shall apply for all required grading and building permits and obtain a Certificate of Completion before any drilling, operation, production, workover, maintenance, repair and testing and all other usual and customary activities associated with the exploration for, and the development, operation and production of oil and/or gas shall commence within the scope of the terms of the SUDP development order.
11.16.2. 
If construction has not commenced on any Oil or Gas Facility or Facilities authorized by the terms of the SUDP within 18 months of its issuance, the SUDP shall expire and the Applicant shall be required to file a new Application for an SUDP before taking steps leading to the construction of an Oil or Gas Facility or Facilities.
11.17.1. 
Financial Assurance.
11.17.1.1. 
An Applicant seeking an SUDP for an Oil or Gas Facility shall furnish financial assurances acceptable to the County.
11.17.1.2. 
Acceptable financial assurances may include: a. A bond in the principal sum of such amount as may be determined by the Board, but not less than Fifty Thousand Dollars ($50,000), in an amount representing the actual cost to remediate the site of the Oil or Gas Facility after abandonment less the amount of any agreement entered into by and between the Operator and a surface owner pursuant to the Surface Owners’ Protection Act. A bond shall be executed by a reliable insurance company authorized to do business in the State of New Mexico, as surety, and the Applicant as principal, running to the County for the benefit of the County and all persons concerned, under the condition that the Operator shall comply with the terms and conditions of this Section 9 [sic] in the drilling and operation of the well; b. An irrevocable letter of credit issued by a federally-insured financial institution located within the State of New Mexico, backed by cash on deposit at the institution representing the full value of the amount of the letter of credit. The amount shall be set as may be determined by the Board, but in no event shall be for a sum less than Fifty Thousand Dollars ($50,000). A letter of credit shall be for a term of not less than five (5) years, and shall be automatically renewed on like terms unless the issuer notifies the County in writing of non-renewal at least thirty (30) days prior to the end of the five (5) year period.
11.17.1.3. 
All financial assurances pursuant to this Section shall become effective on or before the date that documentation of such financial assurance is filed with the County.
11.17.1.4. 
The County shall release the financial assurance deposited pursuant to this Section upon written request of the Operator if the well has been plugged and abandoned and the location restored and/or remediated pursuant to this Ordinance, if the relevant Oil or Gas Facility has ceased operation and has been similarly restored and/or remediated pursuant to this Ordinance, or if a Change of Operator has been approved pursuant to this Article and a new SUDP development order has been granted.
11.17.2. 
Comprehensive General Liability Insurance.
In addition to the required financial assurance, the Operator shall submit with the Application a policy or policies of commercial general liability insurance, including contractual liability, covering bodily injuries and property damage that names the Operator as the insured and the County as an additional insured, issued by an insurance company licensed to do business in the State of New Mexico. The insurance policy must be in a form acceptable to the County and shall further provide a limit of liability of not less than Ten Million Dollars ($ 10,000,000) per occurrence. Said policy or policies shall provide that they may not be cancelled without written notice to the County of at least thirty (30) days prior to the effective date of such cancellation.
11.17.3. 
Pollution Liability Insurance.
The Operator shall submit with the Application a pollution insurance policy or policies that provide standard pollution liability insurance with a coverage of not less than $10,000,000 per occurrence, issued by an insurance company authorized to do business in the State, and that names the Operator as insured. Such insurance policy shall be maintained in full force and effect from the date an Application is submitted and continuing in force until the well is plugged and abandoned in accordance with the applicable State statutes, OCD regulations and this Ordinance. A separate policy is not required if pollution coverage is included as a part of the comprehensive general liability insurance policy required by Section 11.17.2. The insurance policy or policies shall provide that they may not be cancelled without written notice to the County at least thirty (30) days prior to the effective date of such cancellation.
11.17.4. 
Self Insurance.
An Operator offering a plan of self-insurance may provide a certificate of insurance as required by this section issued pursuant to such plan provided that such plan has been approved by the Public Regulation Commission of the State of New Mexico and the County’s Risk Manager.
11.18.1. 
General.
All drilling and other operations conducted at an Oil or Gas Facility or construction of buildings or other structures shall strictly follow the requirements of this Ordinance and the Code and shall be conducted at all times in accordance with the practices of a Reasonable and Prudent Operator.
11.18.2. 
Emergency Preparedness Plan.
11.18.2.1. 
Each operator of an Oil or Gas Facility is required to provide an updated Emergency Response and Preparedness Plan complying with the Application for the SUDP with the conditions and terms of the development order and development agreement granting approval of the Application for the Oil and Gas Overlay Zoning District Classification. The plan shall be filed with the Fire Chief and the Administrator and shall be updated annually or more frequently if conditions change.
11.18.2.2. 
The updated Emergency Response and Preparedness Plan shall consist of the following, at a minimum:
(a) 
Name, address and phone number, including a 24-hour emergency number of at least two persons responsible for emergency field operations;
(b) 
A facilities map showing the name, location and description of all Oil or Gas Facilities, including the size and type of all pipelines. Once as-built drawings are available, they shall be provided if they deviate from the plans previously submitted. “The map shall be prepared either manually on U.S.G.8. 7.5 Minute Series maps (one inch = 2,000 feet), or digitally on the county geographic information system parcel maps. The as-built facilities map shall be held confidentially by the County’s Fire Chief, and shall only be disclosed in the event of an emergency;
(c) 
Copies of the Material Safety Data Sheet (MSDS) for each chemical or substance present at the Oil and Gas Facility;
(d) 
A written response plan for the potential emergencies that may be associated with the operation of the facilities. This may include any or all of the following: explosions, fires, gas or water pipeline leaks or ruptures, hydrogen sulfide or other toxic gas emissions, or hazardous material vehicle accidents or spills; and
(e) 
Project specific emergency preparedness plans are required for any project that involves drilling or penetrating through known zones of hydrogen sulfite gas; as determined by the County. This plan shall be coordinated with and approved by the County prior to beginning field operations.
11.18.3. 
Fire Prevention.
11.18.3.1. 
Each Oil or Gas Facility shall comply with all fire prevention requirements set forth in the Code and all other applicable County ordinances relating to fire prevention, including the County Fire Code and the Urban-Wildland Interface Code. Firefighting apparatus and supplies, as approved by the Fire Chief, and required by any applicable federal, state, or County law shall be provided by the Operator at the Operator’s cost, and shall be maintained on the drilling site at all times during drilling and production operations which shall be in addition to all fire facilities operated by full-time professional firefighters as required in the Adequate Public Facilities and Services Assessment. The Operator shall be responsible for the maintenance of such equipment. The Operator shall place a sign in a conspicuous site at each well location or site to identify the Well with its name or number and the telephone numbers of the persons named in the Emergency Response and Preparedness Plan as being responsible for the site.
11.18.3.2. 
Required Fire Prevention Equipment.
11.18.3.2.1. 
In addition to the requirements related to Adequate Fire Protection Facilities and Services, each Oil or Gas Facility shall maintain adequate firefighting apparatus, equipment and supplies at the site of the facility at all times during drilling and production operations, including, but not limited to, all of the following:
(a) 
During drilling operations, a minimum of four portable fire extinguishers, the size, rating, distribution and maintenance of which shall be in accordance with National Fire Protection Association (NFPA) Standard No. 10 (“Portable Fire Extinguishers) and NFPA Standard No. 30 (“Flammable Liquids Code”);
(b) 
Where flammable vapors may be present, precautions shall be taken to prevent ignition by eliminating or controlling sources of ignition. Sources of ignition may include open flames, lightning, smoking, cutting and welding, hot surfaces, frictional heat, sparks (static, electrical and mechanical), spontaneous ignition, chemical and physical-chemical reactions and radiant heat. NFPA Standard No. 77 (“Recommended Practice on Static Electricity”) and NFPA No. 78 (“Lightning Protection Code”) shall be adhered to;
11.18.3.2.2. 
All hazardous materials and/or special hazards at the facility shall be protected as set forth in applicable NFPA standards;
11.18.3.2.3. 
Lightning protection equipment shall be provided at each facility containing crude or water storage tanks. The lightning protection equipment shall be in accordance with recommendations of the NFPA;
11.18.3.2.4. 
Crude oil and water tanks shall be installed with a vent system approved by the OCD and the Oil and Gas Inspector. A flame arrestor approved by the Oil and Gas Inspector shall be installed on the vent line;
11.18.3.2.5. 
Copies of the Material Safety Data Sheet (MSDS) for each chemical or substance present at the Oil or Gas Facility shall be posted in a conspicuous place at the Facility.
11.18.4. 
Hazard Identification and Label Protection.
11.18.4.1. 
Safety paint shall be used to highlight and mitigate potential hazards of the Oil and Gas Facility such as tripping hazards or protruding mechanical edges that could harm an employee or the public.
11.18.4.2. 
Hazard labels shall be protected from weathering and maintained in a manner so that they will at all times be legible and eye-catching to employees and the public.
11.18.5. 
On-site security:
11.18.5.1. 
When traffic or safety is a concern, on-site security must be provided during active drilling phases.
11.19.1. 
The premises upon which an Oil or Gas Facility is located shall be kept in a clean and orderly condition at all times.
11.19.2. 
After a well has been completed or plugged and abandoned, the Operator shall clean the premises, complete restoration activities, remove equipment no longer being used and repair all damages to the premises:[.]
11.19.3. 
No mud, wastewater, oil, slush or other waste shall be permitted to flow off of the drill site.
11.19.4. 
Suitable and adequate toilet facilities shall be made available and kept in a clean and sanitary condition during drilling operations.
11.19.5. 
The premises on which the drill site is located shall at all times be kept free of debris, pools of water or other liquids, contaminated soil, weeds, brush, trash or other waste material.
11.19.6. 
An Oil or Gas Facility shall not be used for the storage of pipe or other equipment or materials except during the drilling or servicing of wells.
11.19.7. 
All above-ground production equipment shall be painted a uniform flat tan color.
11.19.8. 
All topsoil removed from the surface and retained on the site shall be carefully removed and stockpiled in a manner to prevent erosion and to facilitate its re-application to the disturbed areas during site reclamation.
11.19.9. 
An Oil or Gas Facility shall not cause significant erosion or sedimentation. When possible, vegetative buffers, swales, berms or waterbars should be used to divert stormwater away from the drill site. Sediment fences or temporary retention ponds shall also be used when possible to trap drill site runoff and sediments.
Except as otherwise mandated by the OCD, tanks used for the storage of condensate, crude oil, or other liquid hydrocarbons produced by and/or used in conjunction with any Oil or Gas Facility shall conform to the American Petroleum Institute (A.P.I.) standards for such tanks. All storage tanks shall be equipped with a secondary containment system including lining with an impervious material in order to protect against leaks and spills. Each storage tank shall be equipped with a level-control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank.
As defined in Section 7, each site where there is a producing oil or gas well shall have a fluid-containment system using a series of enclosed aboveground tanks. Only Closed Loop Systems that meet or exceed the requirements of NMAC 15.1.21, shall be used during the drilling or Completion of any Well. Open pits and reserve pits are prohibited under all circumstances.
11.22.1. 
The Operator shall complete a baseline water quality testing program prior to constructing and [sic] Oil or Gas Facility. At least three monitoring wells shall be constructed according to guidelines prepared by the County Hydrologist. The location of the monitoring wells shall be specified by the County Hydrologist. However, at least one of the wells shall be at the Oil or Gas Facility or, if directional drilling or horizontal drilling is utilized, at least one monitoring well shall be located at the surface location corresponding to the bottom hole location. A down gradient well or wells shall be provided. If permission to utilize property for purposes of locating a monitoring well is not provided, the Operator may use County rights-of-way or property as sites for monitoring wells. Water samples from all water wells and surface water sources within a three mile radius of the proposed Well site shall be taken and the parameters tested to establish the baseline water quality in the area. All samples shall be split with the County to enable the County to conduct independent testing. The parameters to be tested shall be specified by the Administrator and the County Hydrologist.
11.22.2. 
In the event a property owner refuses access to a well for purposes of locating a monitoring well, an affidavit from the Operator shall be provided that summarizes efforts to obtain water samples from the location and the obstacles encountered. If possible, the Operator shall secure the signature of the property owner confirming that property owner’s decision. If access is refused as described, the Operator shall be required to drill monitoring wells in alternative locations to provide the baseline data and monitoring required by this Ordinance.
11.22.3. 
At least annually thereafter, the Operator shall repeat its testing of surface and subsurface water resources to determine whether fresh waters have been degraded or polluted as a result of the operation of the Oil or Gas Facility, as compared to the baseline established during initial testing. Such results shall be provided to the Administrator.
11.22.4. 
The Administrator shall have the authority to require the construction of supplemental monitoring water wells in the event degradation or pollution is suspected to physically document any degradation or pollution of an aquifer or any other fresh water bearing formation. Such construction and monitoring shall be at the expense of the Operator.
11.22.5. 
In the event [of] degradation or Pollution of surface or subsurface waters, the Operator shall immediately abate the degradation or Pollution, at its own expense, and cooperate and follow the directives of County, State and federal officials having jurisdiction over the incident.
11.23.1. 
All construction, maintenance and operations of any Oil or Gas Facility shall be conducted in a manner to minimize the noise created to the greatest extent possible.
11.23.2. 
The exhaust from all engines, motors, coolers and other mechanized equipment, including compressor station fans, shall be vented in a direction away from the closest existing building units or platted subdivision lots.
11.23.3. 
Production equipment shall be powered by electric motors if located within 1,320 feet of distribution voltage capable of powering production equipment. Production equipment may be powered by engines prior to the time that the Facility has access to electric power but subject to the restrictions contained in this Subsection.
11.23.4. 
Drilling and production operations shall not create a sound level greater than 75 dB(a) when measured at a distance of three hundred (300) feet from the source of the sound. When an inhabited building is within 500 feet of the Facility, drilling and production operations shall not create a sound level greater than 70 dB(a) when measured at a distance of three hundred (300) feet from the source of the sound. A lower sound level shall be required where the Environmental Impact Report determines that the sound levels for a specific site requires further mitigation.
11.24.1. 
All Oil or Gas Facilities shall comply with the Code and the Night Sky Protection Act, NMSA 1978, Sections 74-12-1 et seq. (1999) (as amended) at all times, except as provided for in this Section. All lighting shall be limited to the minimum required to meet security and safety standards consistent with the practices of a reasonable and prudent operator.
11.24.2. 
The Operator shall log all lighting levels and shall provide night ambient light levels prior to commencing work on the Oil or Gas Facility. Levels shall be provided during the development and operation of the Oil or Gas Facility on a daily basis.
11.24.3. 
Lights shall be shut off on a drilling rig when not drilling or performing other operational, maintenance or repair functions related to the drilling rig. Lights required by the Federal Aviation Administration that are needed to alert aircraft of the rig shall not be subject to this requirement.
11.24.4. 
Lighting that does not comply with the Code shall not be permitted.
11.25.1. 
Fracturing and acidizing of any well shall be performed in strict compliance with applicable OCD rules and the practices of a reasonable and prudent operator. Fracturing pressures shall be controlled to limit the extent to which fractures escape the zone being fractured. Fracturing operations may be monitored by the Oil and Gas Inspector to ensure compliance with these standards.
11.25.2. 
All oil or gas operations, including fracturing and drilling for exploratory wells, shall be conducted only during the hours of 8:00 a.m. to 5:00 p.m. Upon an Applicant’s request, fracturing and exploratory well drilling may be permitted outside these hours if approved by the CDRC on a case-by-case basis. The CDRC shall take into account whether the specific land use or environmental conditions warrant such an allowance. An extended hour application shall not be granted if there are residences within 1/2 mile of the drill site. If approved for extended exploratory drilling or fracturing hours, Applicants shall at all times abide by all performance standards established in this Ordinance.
11.25.3. 
Fracturing operations shall not create a sound level of greater than 80 dB(a) when measured at a distance of three hundred (300) feet from the source of the sound.
11.25.4. 
Fracturing operations shall only use fresh water as the fluid component of the fracturing material. Water and sand used in fracturing operations shall not contain dissolved hydrocarbons or other toxic contaminants. The use of synthetic fracturing fluids is prohibited. Fracturing with brine is prohibited. Fresh water that meets or exceeds drinking water standards shall be used and such water shall be obtained from the County or a municipal system that supplies drinking water, or a private source, and shall comply with the Water Availability Assessment. If the County Petroleum Engineer agrees, subject to clear and convincing evidence, that use of fresh water during fracturing operations would damage the rock formation so that the oil and gas cannot be recovered, use of other fluids may be authorized so long as the exact constituents of the fluids are on the prescribed list of chemicals, minerals, or materials and approved by the Board, a groundwater monitoring program is established, and the need for the use of the specific constituents are verified by the County Petroleum Engineer and approved by a medical professional, both to be selected by the County. Fracturing pressures shall be strictly controlled as provided in the previous paragraph to the satisfaction of the County Petroleum Engineer and oil and gas inspector.
11.25.5. 
After fracturing operations are completed, all fluids used in the operations shall, to the extent technologically possible, be removed from the well.
11.25.6. 
Pollution of the surface or any surface or subsurface fresh waters before, during and after the fracing process is prohibited.
11.26.1. 
No Oil or Gas Facility shall be located closer than the setbacks permitted in the Board’s development order approving the Overlay Zoning or the following distances to the following types of land uses; whichever is greater.
(a) 
Inhabited Dwelling - 750 feet
(b) 
Building Used as a Place of Assembly, School or Institution - 750 feet
(c) 
Nonresidential Use or Building - 400 feet
(d) 
Public Road or Highway - 200 feet
(e) 
Lot Line for a Lot Designated for Residential Use on Approved Plat - 600 feet
(f) 
Groundwater Re-charge Area, Alluvial Aquifer, Acequia, Perennial, Seasonal or Ephemeral Water Course, Creek, Arroyo, Playa Lake or Wetland as Defined by the United States Corps of Engineers - 1000 feet
(g) 
100-year Floodplain Line as Designated by the Federal Emergency Management Agency - 500 feet
(h) 
Existing Water Well Permitted by the State Engineer - 750 feet
(i) 
Cultural, Historic or Archeological Resource -750 feet
(j) 
County Trail or Designated Open Space - 200 feet
(k) 
Parks, trails, and recreation areas - 250 feet
11.26.1.1. 
The setbacks listed above are intended to be “minimum” protections for the listed structures and resources. Individual circumstances will be taken into account throughout the Overlay Zoning and SUDP application processes. The Board of County Commissioners is ultimately responsible for deciding where drill sites may be located on an individual property. At the Board’s discretion, these setbacks may be increased on a site by site basis. The Board should also pay particular attention to protecting sensitive neighboring uses such as residences when locating drill sites.
11.26.2. 
Setback Exceptions.
When an Applicant cannot locate an Oil or Gas Facility anywhere on the surface because doing so would violate the setback requirements, the Application for the SUDP shall be denied and an Application for a Beneficial Use and Value Determination shall be required in accordance with Section 12.
Except as provided for in Section 11.25.2, all oil or gas development or operations shall be conducted only between 8:00 a.m. and 5:00 p.m. Upon Applicant’s request, drilling (but no other activity) may be permitted up to twenty-four (24) hours per day if approved by the CDRC on a case-by-case basis. The CDRC shall take into account whether the specific land use or environmental conditions warrant such an allowance. An extended hour application shall not be granted if there are residences within 1/2 mile of the drill site. If approved for extended exploratory drilling or fracturing hours, Applicants shall at all times abide by all performance standards established in this Ordinance. Truck deliveries of equipment and materials associated with drilling and/or production, well servicing, site preparation, and other related work conducted on the oil or gas facility shall be limited to between the hours of 8:00 a.m. and 5:00 p.m. except in cases of fires, blowouts, explosions and any other emergency or where the delivery of equipment is necessary to prevent the cessation of drilling or production.
The Oil or Gas Facility or Facilities shall use structures and equipment of the minimum size necessary to satisfy the functional requirement of the Facility. The Operator shall use low profile pumps and equipment to mitigate the adverse visual impacts caused by the Facility or Facilities.
Drill site dimensions for an Oil or Gas Facility or Facilities shall be the minimum size necessary to provide a safe work area and minimize surface disturbance. The site should be oriented in a manner to reduce adverse visual impact on view corridors.
Gas shall not be flared except as necessary during drilling and workover operations, and then only as permitted by OCD regulations.
An Oil or Gas Facility or Facilities shall be sited in areas that maximize the amount of natural screening available for the Facility or Facilities. Natural screening includes, but is not limited to, the use of existing vegetation as a background, the construction of the facility or facilities near mature stands of vegetation or behind ridges or natural rock formations. Where natural screening is inadequate, as determined by the CDRC, other screening or fencing, including but not limited to trees, shrubs, grass, ground cover or flowers, bricks, rocks, walls or stones may be required. In exercising this power the CDRC shall consider the existence of any surface use agreement between the surface owner and the mineral owner, and shall comply with the landscaping requirements approved by the Board in the Overlay Zone development order.
Security fencing and a locked gate for an Oil or Natural Gas Facility or Facilities shall be required where:
(1) 
There are four (4) or more existing residences within 2500 feet of the facility or facilities;
(2) 
There is a public or private school within 1000 feet of the facility or facilities;
(3) 
There is an existing structure used for commercial purposes within 600 feet of the Facility or Facilities;
(4) 
There is an existing recreational facility located within 1000 feet of the Facility or Facilities;
(5) 
There is a determination by the CDRC that public safety so requires.
(1) 
The Oil or Gas Facility or Facilities shall not cause significant degradation in the quality and quantity of surface waters from the addition of non-point source pollution; as determined by the Board in the development order for the Overlay Zone.
(2) 
The Oil or Gas Facility or Facilities shall not cause degradation in the water quality of any public or private well so that any regulated groundwater standard is exceeded or cause a reduction in water pressure of any public or private water wells.
(3) 
The Oil or Gas Facility or Facilities shall not pose any significant risk, nor cause any significant degradation to subsurface water resources.
(4) 
The Operator shall maintain all safety and pollution monitoring equipment deemed necessary by the CDRC and shall inspect the equipment quarterly. The results of the monitoring and inspections shall be submitted to the Administrator.
11.34.1. 
There shall be no disposal of saltwater, produced water or water containing salts or other minerals in quantities that exceed applicable groundwater standards established by the Water Quality Control Commission, at the site of the Oil or Gas Facility.
11.34.2. 
Drilling mud shall be disposed of by transporting the mud to an OCD-licensed disposal site. The mud may not be buried in an earthen pit on site, pumped down the well bore or down the annulus of a well, or spread on the surface of the ground at the site.
11.34.3. 
Each Operator shall make sufficient provisions for the safe disposal of water containing salts or other minerals in quantities that exceed applicable groundwater standards established by the Water Quality Control Commission, hydrocarbons, or other deleterious substances which may be brought to the surface. Any such disposal shall be at an OCD-approved disposal well or site. No disposal of such substances shall be permitted at the site of the Oil or Gas Facility. When a disposal well is to be used for disposal of such substances, the location of the proposed well shall be identified, the Operator shall identify the disposal well by operator, lease, well name and number, and location.
11.34.4. 
In the event of any spill or leak of produced water or any deleterious substance, whatever the cause thereof, the Operator shall immediately notify the Oil and Gas Inspector. If, in the judgment of the Inspector, such leak or spill represents a potential hazard to surface or groundwater resources or the environment, the Inspector shall immediately notify OCD. The Inspector may require that the Operator strictly follow all orders issued by OCD with respect to the spill or leak, and may additionally require that the Operator conduct testing of the surface and subsurface for pollutant incursion and conduct remediation of the spill or leak as directed by OCD, the cost of which is to be paid by the Operator.
11.34.5. 
All other waste shall be treated, stored and disposed of in accordance with all local, state and federal requirements.
11.34.6. 
Surface disposal of wastes of any kind is prohibited at a Oil or Gas Facility.
11.34.7. 
No person shall deposit, drain or divert into or upon any public highway, street, alley, drainage ditch, arroyo, storm drain, sewer, gutter, creek, stream, river, lake or lagoon, any oil or liquid containing any hydrocarbons, or any drilling mud, sand, water or saltwater, or in any manner permit, by any means, any of such substances to escape from any property owned, leased or controlled by such person. All such material shall be properly disposed of at an OCD-approved facility.
11.35.1. 
Upon the abandonment of a well or Oil or Gas Facility or Facilities, the Operator shall comply with OCD regulations, Water Quality Control Commission regulations, or relevant federal agency regulations, in connection with the abandonment, plugging and remediation.
11.35.2. 
A copy of the OCD plugging and abandonment forms shall be furnished to the County within ten (10) days of the date of submission to the OCD.
11.35.3. 
No building shall subsequently be erected on or over, or restricting access to any abandoned well.
11.35.4. 
Within four months following abandonment, the area formerly occupied by the well or Oil or Gas Facility shall be fully restored to a safe and clean condition. Compliance with the reclamation plan submitted by the Applicant shall be required.
11.36.1. 
Construction, Installation or Operation of Unapproved Oil or Gas Facilities.
11.36.1.1. 
It shall be unlawful to construct, install, or cause to be constructed or installed, any Oil or Gas Facility or Facilities without the issuance of development orders approving applications for both an Oil and Gas Overlay Zoning District Application, an SUDP and requisite Grading and Building Permits and a Certificate of Completion.
11.36.1.2. 
It shall be a violation of the Code to construct, install or cause to be constructed or installed, any Oil or Gas Facility in violation of the Code, or contrary to the conditions established by the development orders for the Overlay Zone or SUDP.
11.36.2. 
Penalties; Permit Revocation.
11.36.2.1. 
Any Operator, person, firm, corporation or legal entity that violates any provision of Section 11, any provision of the development orders approving an Oil and Gas Overlay Zoning District Classification a SUDP or a valid directive or order of the Administrator, shall be subject to the penalties set forth in NMSA 1978, section 4-37-3 (1993) (as amended).
11.36.2.2. 
The violation of each separate provision in this Section shall be considered a separate offense, and each day the violation is allowed to continue shall be considered a separate offense.
11.36.2.3. 
Notwithstanding any other penalty or remedy provided for in this Section, the County may, on finding a violation of provisions of this Section, revoke or suspend any Oil and Gas Overlay Zoning District Classification or SUDP governing the Oil or Natural Gas Facility or Facilities that the County finds to be violating the provisions of this Section upon the same notice and public hearing requirements applicable to the application for the Overlay Zone. The County may also revoke any development order if it is determined that the Operator provided false, misleading; deceptive or inaccurate information and/or documentation to secure issuance of the Oil and Gas Overlay Zoning Classification or Special Use and Development Permit.
11.36.2.4. 
An Applicant’s default also constitutes a default on any existing development agreement held by the Applicant for that Oil or Gas Facility. In such event, remedies are available both under this Ordinance and under the development agreement.
11.36.3. 
Authority of the Administrator.
11.36.3.1. 
The Administrator shall have authority to issue any orders or directives required to carry out the intent and purpose of this Section. Any person’s failure to comply with such an order or directive shall constitute a violation of this Ordinance.
11.36.3.2. 
The Administrator shall have the authority to enter and inspect any Oil or Gas Facility or Facilities governed by Section 11 to determine its compliance with the provisions of this Section. If an Operator denies the Administrator entry, the County shall have the right to obtain an order from a court of competent jurisdiction to obtain entry, or may institute proceedings to revoke the Board and CDRC development orders pursuant to a duly noticed public hearing before the Board or CDRC respectively.
11.36.3.3. 
The Administrator shall have the authority to request and receive any records, logs, reports, studies or other documents relating to the status or condition of an Oil or Gas Facility. Items that are marked “confidential” or “proprietary” shall be kept confidential to the extent permissible as provided in the New Mexico Inspection of Public Records Act, NMSA 1978, Section 14-2-1 et seq. Any person’s failure to timely provide any such requested materials shall constitute a violation covered by Section 11.6(b) [sic].
11.36.3.4. 
The Administrator shall have the authority to order immediate remedial action of [if] he or she finds that the Operator or any person for whom the Operator is legally responsible has not complied with the requirements of this Section, if the Administrator also finds that such noncompliance constitutes a hazard to the public health, safety or general welfare. If the persons responsible for noncompliance fail to take immediate steps to eliminate the hazard, or if the situation is so perilous as to constitute an imminent threat to the public health, safety or general welfare, the Administrator may order the prompt cessation of all activity at the Well site or in the entire Oil or Gas Facility, including evacuation of the premises and/or the temporary suspension of the SUDP applicable to the Facility, subject to a public hearing to be held by the CDRC within twenty (20) days after the Administrator’s Order.
11.36.3.5. 
In case any building, structure or other oil and gas related project is or is proposed to be erected, constructed, reconstructed, altered or used, or any land is or is proposed to be used, in violation of any provision of this Ordinance, the County, in addition to the other remedies provided by law, ordinance or resolution, may seek an injunction, mandamus, or abatement of activity or pursue other appropriate action or proceeding to prevent, enjoin, abate or remove such unlawful erection, construction, reconstruction, alteration or use.
11.36.3.6. 
Any person or organization, affected by any violation of this Ordinance, may sue to enjoin violations of, or compel compliance with, any provision of this Ordinance.
11.36.3.7. 
The Administrator is hereby authorized to prepare and promulgate staff instructions for the implementation of this Ordinance and administrative rules and regulations which shall be approved by the CDRC and the Board respectively. The Administrator shall assign one staff member of the Santa Fe County Growth Management Land Use Department to supervise and manage each application for an Oil and Gas Overlay Zoning District Classification and subsequent SUDP. The assigned staff member shall be the contact point for all relevant owners, lessees and interested persons regarding the status of the application throughout the administrative process.