Chapter 18 Oil and Gas Production

Authority to issue orders.

The city inspector shall have the authority to issue any orders or directives required to carry out the intent and purpose of this chapter and its particular provisions. Failure of any person to comply with any such order or directive shall constitute a violation of this chapter. The city inspector may be a city staff member or may be a third-party consultant retained by the city.

Authority to enter and inspect.

The city inspector shall have the authority to enter and inspect any premises covered by the provisions of this chapter to determine compliance with the provisions of this chapter and all applicable laws, rules, regulations, standards or directives of the state. Failure of any person to permit access to the city inspector shall constitute a violation of this chapter. The city inspector shall conduct periodic inspections at least once a year of all permitted drill sites in the city to determine that the drill sites are operating in accordance with proper safety parameters as set out in this chapter and all regulations of the commission.

Authority to request records.

The city inspector shall have the authority to request and receive any records, including any records sent to the commission, logs, reports and the like, relating to the status or condition of any permitted well necessary to establish and determine compliance with the applicable surface permit. Failure of any person to provide any such requested material shall be deemed a violation of this chapter.

Report violations.

The city inspector will report any perceived violation of commission rules and regulations (i.e. spillage) to the commission within twenty-four (24) hours after observation or after confirming a report from a citizen.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-4 Operator’s agent.

Every operator of any well shall designate an agent, who is a resident of the state, upon whom all orders and notices provided in this chapter may be served in person or by registered or certified mail. Every operator so designating such agent shall within ten (10) days notify the city inspector in writing of any change in such agent or such mailing address unless operations within the city are discontinued.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-5 Surface permit required.

Permit required.

A person wanting to engage in and operate in oil or gas production activities shall apply for and obtain a surface permit from the city after receiving the approved commission permit to drill. The city permit shall be for all above ground activity related to oil and gas operations. It shall be unlawful for any person acting either for himself or acting as agent, employee, independent contractor, or servant for any person to drill any well, assist in any way in the site preparation, reworking, fracturing or operation of any such well or to conduct any activity related to the production of oil or gas without first obtaining a surface permit issued by the city in accordance with this chapter. Such activities include, but are not limited to reworking, initial site preparation, drilling, operation, construction of rigs or tank batteries, fracturing and pressurizing.

No blanket permits.

The operator must apply for and obtain a surface permit for each drill site. Each proposed drill site shall require a separate permit and shall not be permitted on a “blanket” basis.

Permit required to re-enter abandoned well.

A surface permit shall not constitute authority for the re-entering and drilling of an abandoned well. An operator shall obtain a new surface permit in accordance with the provisions of this chapter if the operator is re-entering and/or drilling an abandoned well.

Permit expiration date.

A surface permit shall automatically terminate, unless extended by the city inspector, if drilling is not commenced within one hundred eighty (180) calendar days from the date of the issuance of the surface permit. The city inspector may extend a surface permit for an additional one hundred eighty (180) calendar days upon request by the operator and proof that the engineering site plan for the requested surface permit for such location has not changed.

Other permits may be necessary.

The surface permits required by this chapter are in addition to and are not in lieu of any permit, which may be required by any other provision of this Code or by any other governmental agency.

No additional permits or fees.

No additional surface permit or filing fees shall be required for:

Existing wells.

Any wells, existing, previously permitted or approved by the city, within the corporate limits of the city on the effective date of this chapter;

Drilling commenced on effective date of chapter.

Any wells which drilling has commenced on the effective date of this chapter;

Land annexed after effective date of chapter.

Any wells in existence or on any wells on which drilling has commenced on land annexed into the city after the effective date of this chapter; or

§ 18-6 Surface permit application and filing fees.

Application filed prior to annexation.

Any well that was planned for the land before the ninetieth (90th) calendar day before the effective date of its annexation and one or more licenses, certificates, permits, approvals, or other forms of authorization by a governmental entity were required by law for such well and the completed application for the initial authorization was filed before the date the annexation proceedings were instituted.

(g)

No permit issued in floodway.

No surface permit shall be issued for any well to be drilled within any floodway as defined by the most current FEMA map.

(h)

Permits in floodplains.

Surface permits may be issued on property located in a floodplain, provided that all water and drilling materials must be in steel containers except for the concrete pad. An engineer’s certificate shall be provided showing no negative impact on water flow in the floodplain.

(i)

City-owned property.

No surface permit shall be issued for any well to be drilled on city-owned property without the prior consent of the city council.

(j)

Operator agrees to comply with chapter.

By acceptance of any surface permit issued pursuant to this chapter, the operator expressly stipulates and agrees to be bound by and comply with the provisions of this chapter. The terms of this chapter shall be deemed to be incorporated in any surface permit issued pursuant to this chapter with the same force and effect as if this chapter was set forth verbatim in such surface permit.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

[Issuance.]

The surface permit may only be issued subsequent to a commission approved permit associated with exploration, drilling, production and transportation.

Application in writing.

Every application for a surface permit issued pursuant to this chapter shall be in writing signed by the operator, or an appointed agent duly authorized to sign on his behalf, and filed with the city secretary of the city. As soon as practical, the city secretary shall have the application delivered to the city inspector.

Application accompanied by permit fee.

Every application shall be accompanied by a permit fee for each drill site as set forth in the fee schedule referenced in section 18-21.

Application shall include.

An application for a surface permit shall include all the requirements of this section of this chapter as well as impacted vegetation, creeks and other topographic features, adjacent building and other structures and the measured distance from the well site to these buildings and structures, temporary and permanent fencing and landscaping. The application shall include the following information:

Date.

The date of the application for a surface permit.

Legal description.

An accurate legal description of the tract or parcel of real property, leased or owned, to be used for the oil or gas operation. Property recorded by plat should reference subdivision, block and lot numbers.

Map.

Map showing proposed transportation route and road for equipment, chemicals or waste products used or produced by the oil or gas operation and the number of truck trips, truck types and weight, loaded and unloaded, turning movements associated with truck and vehicle traffic, proposed access points and proposed traffic-control devices.

Well name.

Proposed well name.

Surface owner name.

Surface owner names(s) and address(es) of the lease property.

Name mineral owner/lessee.

Mineral owner/lessee name and address.

Name operator.

Operator/applicant name and address and if the operator is a corporation, the state of incorporation, and if the operator is a partnership, the names and addresses of the general partners.

(8)

Person to receive reports.

Name and address of individual designated to receive notice.

(9)

Supervisory authority.

Name of representative with supervisory authority over all oil or gas operation site activities and a twenty-four-hour phone number.

(10)

Location of improvements.

Location and description of all improvements and structures within six hundred (600) feet of the proposed well.

(11)

Owners.

Owner and address of each parcel of property within six hundred (600) feet of the proposed drill site.

(12)

Site plan.

A site plan of the proposed operation site showing the location of all improvements and equipment, including the location of the proposed well(s) and other facilities, including, but not limited to, tanks, pipelines, compressors, separators and storage sheds. The site plan shall include all existing utilities, public roadways, driveways, alleys, all public access points, floodways and floodplains.

(13)

Emergency contact person.

The name, address and twenty-four-hour phone number of the person to be notified in case of an emergency.

(14)

Road maintenance agreement.

An original executed citywide road maintenance agreement signed and approved by city must be filed with the city secretary that provides that the operator shall repair, at his own expense, damage to roads or streets caused by the use of heavy vehicles for any activity associated with the preparation, drilling, production, transportation and operation of oil and or gas wells, in accordance with the rights of the city to regulate above ground activity. City shall determine degree of damage and dollar amount owed. Failure of operator to reimburse city within thirty (30) days of billing may result in forfeiture of security bond.

(15)

Public utilities.

A description of public utilities required during drilling and operation.

(16)

Water source.

A description of the water source to be used during drilling.

(17)

Fees.

All required application and surface permit fees.

(18)

Noise management plan.

A noise management plan complying with all requirements of the city. The noise management plan shall address the following:

This analysis must include a comparison of the potential noise generation with the applicable noise standards;

Identify all noise mitigation techniques that will be implemented on the site including blankets/curtains, sound walls, and mufflers for generators and motors, if any;

Best management practices used to reduce the impact of noisier operations such as pipe deliveries and use of horns for communication; and

Maximum noise levels anticipated at the drill site.

(19)

Screening.

A screening, fencing and landscape plan detailing compliance with all landscape and screening requirements required by this chapter, including a proposed schedule detailing the timing of all landscaping, screening and fencing to be installed.

(20)

Irrigation plan.

A landscape irrigation plan as designed by a state-licensed professional detailing the appropriate type of irrigation for the site; measures to be taken to adequately irrigate all landscaping, including indicating the water source for irrigation and the proposed efforts to replace dead or dying screening vegetation. All trees on site shall be irrigated by a bubbler system.

(21)

Encroachment agreements.

A copy of all applicable right-of-way encroachment agreements.

(22)

Dust mitigation plan.

A dust mitigation plan detailing measures to be implemented to mitigate and suppress dust generated at the drill site and the private vehicle access route, including a mud shaker for vehicles exiting the site.

(23)

Waste.

A waste management plan that addresses human, solid and drilling production waste.

(24)

Third-party contracts.

Copies of all third-party contracts related to:

Emergency services, including firefighting and control of well;

Site operations and maintenance; and

Well monitoring and testing.

(25)

Commission permit required.

A copy of the approved commission permit to drill together with attachments and survey plats which are applicable to the drill and operation sites.

(26)

Stormwater pollution.

A copy of the stormwater pollution prevention plan as required by the environmental protection agency. A copy of the notice of intent shall be submitted to the city five (5) calendar days prior to the commencement of any onsite activity.

(27)

Depth of usable water.

A copy of the determination by the Texas Commission on Environmental Quality (TCEQ) of the depth of useable quality groundwater.

(28)

Insurance and security.

Evidence of insurance and security requirements under this chapter.

(29)

Sworn statement.

A statement, under oath, signed by the operator, or designated representative, that the information submitted with the application is, to the best knowledge and belief of the operator or designated representative, true and correct.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-7 Surface permits; procedure.

Permit required.

A surface permit shall be required for all proposed drill sites.

Setback.

Any application that has proposed a drill site that is six hundred (600) feet or less from a protected use shall be rejected. This provision applies to any existing building, including but not limited to, a residence, religious institution, public building, hospital building, school or public park or any building for which a building permit has been issued on the date the application for a permit is filed with the city secretary. Drill sites located more than six hundred (600) feet from a protected use, may be approved by the city inspector. For the purpose of such surface permit, the measurement of the six-hundred-foot distance shall be made from the well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building.

Notice and sign.

Upon notification by the city inspector that the permit application is complete, within ten (10) days, operator/applicant shall publish notice in a local newspaper for two (2) consecutive weeks that a permit application has been submitted to the city. Notice shall contain the location of proposed well, name of operator/applicant, mineral owner/lessee name and contact information for operator/applicant and city inspector. Notice shall direct questions to operator/applicant and concerns to city inspector. In addition, within the ten (10) days, a sign will be erected on the drill site or the nearest public right-of-way, if the sign would not be visible from the drill site. The sign shall indicate that an oil or gas well is proposed for the site, name of operator/applicant and contact information for operator/applicant and the city inspector.

Permitting procedure.

After a complete permit application is submitted, the city inspector shall evaluate the public impact of the proposed activity. The city inspector shall consider the proposed site and the proposed above ground activity related to oil and gas operation or drilling program and shall identify restrictions or conditions, including minimum separation distance for drilling or other operations, special safety equipment and procedures, noise reduction levels, screening and any other requirements the city inspector deems appropriate. If the proposed drill site are located more than six hundred (600) feet from a protected use for which a building permit has been issued on the date the application for a permit is filed with the city secretary, the Inspector may, consistent with state law, accept or reject the application in the interest of securing compliance with this chapter, this code and/or to protect the health, safety and welfare of the community. An applicant may appeal a decision of the city inspector through the city manager to the city council.

Well and tank battery setbacks for surface permit.

Setback from parks.

Tank batteries, storage tanks, facilities and equipment, other than the well itself, shall be located at least six hundred (600) feet from any public park or from any protected use (unless prior consent is obtained through the city manager). The distance shall be calculated from the closest tank batteries, facilities and/or equipment, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building, or to the closest property line of the park.

Landscape buffer.

There will be a minimum twenty-five (25) feet landscape buffer on all sides of the area adjacent to and outside of the fencing on any pad site.

Fencing for surface permit.

Fences.

Fences shall not be required on drill sites during initial drilling, completion or re-working operations as long as twenty-four-hour on-site supervision is provided. Within thirty (30) calendar days after production has been established, the operation site shall be completely enclosed by an opaque fence or separate opaque fences may be installed to enclose individual facilities on drill site, such as pump jack, storage tanks or other production related facilities. The fences shall be a minimum height of five (5) feet and not higher than eight (8) feet. All shall be built in a manner that is safe enough to protect children in accordance with the attractive nuisance doctrine. In addition to fences, a secured entrance gate shall be required. All gates are to be kept locked when the operator or operator’s employees are not within the enclosure.

Gate specifications.

The gate shall meet the following specifications:

Each gate shall be not less than twelve (12) feet wide and the height of the fence and be composed of two (2) gates, each of which is not less than six feet (6) wide, or one (1) sliding gate not less than twelve (12) feet wide. If two gates are used, gates shall latch and lock in the center of the span. If fencing is intended to protect pump jack, storage tanks or other production related facilities and no trucks will be inside enclosure, city inspector may specify a reasonable sized walk through gate;

The gates shall be of metal frame construction that meets the applicable city specifications, or of other approved material;

The gates shall be provided with a combination catch and locking attachment device for a combination padlock, and shall be kept locked, except when being used for access to the site;

Operator must provide the fire department chief and the city inspector with a “Knox Padlock” or “Knox Box with a key” to access the drill site to be used only in case of an emergency. The fire chief shall determine the type. In the event a key is not provided or the lock is inoperable, the fire department shall be authorized to cut a lock or chain to gain access.

(g)

Landscaping.

A plan for landscaping and irrigation shall be provided with the surface permit application. Landscaping and irrigation shall be required as determined by city manager or designee along all sides of the drill site with suitable screening done via a combination of trees and shrubs that complement the natural character of the surrounding neighborhood. A three-foot separation should be maintained between the fence and vegetative screening. Care should be taken when selecting trees and shrubs to anticipate the ultimate size of the plant so that the tree or shrub maintains a three-foot separation from the fence at maturity. The landscaping within ten (10) years should characterize a natural screening of the pad site within one hundred (100) feet from all sides. The site should be well kept and mowed at all times. The following tree preservation and planting measures are required:

Tree spacing.

A minimum twenty-five-foot landscape buffer outside the operation site shall contain a tree for every forty (40) linear feet. Existing trees within the buffer may be counted as part of the required plantings. The following requirements apply to all surface permits.

A minimum retention of twenty-five (25) percent of the existing trees will be required unless removal is necessary for location of equipment as determined by the city inspector.

No more than twenty-five (25) percent of the same species may be planted at one (1) site.

A minimum of twenty-five (25) percent of the planted trees must be an evergreen species.

The minimum size of tree planted will be three (3) inches in diameter measured one (1)foot above ground level. If the tree is multi trunk, the main stem will be given full credit for its diameter and all other stems will receive one-half (1/2) credit. The total of all must be three (3) inches or greater.

All trees that die within two (2) years of the date of project completion will be replaced with a new tree. The replacement tree carries the same two-year replacement requirement. A replacement tree that dies within two (2) years of planting will be replaced by the operator or agent, and a new two-year guarantee will begin at the time of replacement.

All other interpretations of the regulations will be made by the city.

Clear cut prohibition.

The clear cutting of trees is prohibited within the city. Cutting of trees, grading, and land clearing may be done for an oil or gas well drilling pad site in accordance with the approved site plan. The remainder of the site beyond the pad and the landscape buffer shall not be disturbed without approval in the permit.

(h)

Vehicle routes for surface permit.

Routes.

Vehicles associated with drilling and/or production in excess of three (3) tons shall be restricted to such streets designated as either state highway, farm to market, or truck routes or commercial delivery routes by the city wherever capable of being used. The vehicles shall be operated on a commercial delivery route only when it is not possible to use a state highway, farm to market, or truck route to fulfill the purpose for which such vehicle is then being operated. Commercial delivery route means any street or highway so designated by the city council for the use by any commercial motor vehicle, truck-tractor, trailer, semitrailer, or any combination thereof. All vehicles shall comply with Federal Motor Carrier Safety Administration (FMCSA) regulations.

Road maintenance agreement.

A citywide road maintenance agreement will be required for the above ground activity associated with any gas or oil well drilling operation that uses city maintained streets for access to their well site, whether the wells are within the city limits or outside the city limits. City shall determine degree of damage, the amount owed and shall bill the operator annually. Failure of the operator to pay the amount owed within thirty (30) days may result in forfeiture of or draw upon the fiscal security provided to the city.

Streets free from debris.

The operator shall keep thoroughfares throughout the city free from dirt, dust, mud or other debris deposited by vehicles involved in the well drilling or servicing or pipeline installation process. The operator shall eliminate dirt, dust, mud or other debris accumulations within two (2) hours of notification by the city. If for safety or other reasons, the city elects to perform the removal, the cost of such removal shall be paid by the operator.

(i)

Work hours for surface permit.

Site development, other than drilling, shall be conducted only during daylight hours. Truck deliveries of equipment and materials associated with drilling and/or production, well servicing, site preparation and other related work conducted on the drill site shall be limited to daylight hours except in cases of fires, blowouts, explosions and any other emergencies or where the delivery of equipment is necessary to prevent the cessation of drilling or production. All formation fracture stimulation operations shall be conducted during daylight hours as defined by this chapter. “Flowback” operations to recover fluids used during fracture stimulation shall be exempt from work hour restrictions, subject to compliance with noise restrictions contained in this chapter. All workover operations shall be restricted to daylight hours.

(j)

Noise restrictions for surface permit.

In no case shall any drilling, producing or other operations produce a sound level greater than seventy-eight (78) decibels (dB) when measured at a distance of three hundred (300) feet from the production equipment in question. If ambient noise level exceeds seventy-eight (78) dB, that ambient level will be the maximum allowable noise level under all circumstances.

Noise management plan.

Prior to the issuance of a surface permit and the commencement of operations, the operator shall submit a noise management plan, approved by the city, detailing how the equipment used in the drilling, completion, transportation, or production of a well complies with the maximum permissible noise levels of this section. The noise management plan must:

Identify operation noise impacts;

Provide documentation establishing the ambient noise level prior to construction of any wellhead, compressor or compression facility; and

Detail how the impacts will be mitigated. In determining noise mitigation, specific site characteristics shall be considered, including but not limited to the following:

Nature and proximity of adjacent development, location, and type;

Seasonal and prevailing weather patterns, including wind directions;

Vegetative cover on or adjacent to the site; and

Topography.

The operator shall be responsible for verifying compliance with this section and the noise management plan after the installation of the noise generation equipment.

Noise level.

No well shall be drilled, re-drilled or any equipment operated at any location within the city in such a manner so as to create any noise which causes the exterior noise level when measured at the protected use receiver’s/receptor’s property line or from the closest exterior point of the protected use structure or inside the protected use structure if access to the property is granted by the receiver/receptor, that:

Exceeds the ambient noise level by more than five (5) dB during daytime hours and more than three (3) dB during nighttime hours;

Exceeds the ambient noise level by more than ten (10) dB over the daytime average ambient noise level during fracturing operations during daytime hours. No fracturing shall be allowed during nighttime hours except for flowback operations related to fracturing as provided in subsection c. below;

Exceeds the ambient noise level by more than three (3) dB during flowback operations during nighttime hours.

Predrilling noise level.

Prior to the issuance of a surface permit the operator shall hire an independent third party to take ambient noise readings over a seventy-two-hour period, including at least one (1) twenty-four-hour reading during a Saturday or Sunday. The operator shall use the seventy-two-hour predrilling ambient noise level as the base for the installation of any new noise generation equipment unless the operator can demonstrate that the increase in the ambient noise level is not associated with drilling and production activities located either on or off-site.

Citation for violation.

A citation may be issued immediately for failure to comply with the provisions of this section. However, if the operator is in compliance with an approved noise management plan, and a violation occurs, the operator will be given twenty-four (24) hours from notice of noncompliance to correct the violation from an identified source before a citation is issued or other enforcement action is taken. Additional extensions of twenty-four-hour periods may be granted in the event that the source of the violation cannot be identified after reasonable diligence by the operator.

(k)

Tank specifications for a surface permit.

The construction and installation of all tanks and permanent structures shall conform to the requirements of the commission and any other local, state or federal agency. The top of the tanks shall be no higher than fifteen (15) feet. All tanks shall be set back pursuant to the standards of the commission and the National Fire Protection Association, but in all cases, shall be at least twenty-five (25) feet from any public right-of-way or property line. All transport trucks shall be filled on site, not on public rights-of-way or streets.

(l)

Inclusive of all provisions.

All other provisions outlined in this chapter shall be required.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-8 Issuance of surface permits.

Permit approval or denial.

It is the responsibility of the city inspector to review and approve or disapprove based on the criteria established by this chapter all applications for surface permits for drill sites located more than six hundred (600) feet from a protected use for which a building permit has been issued on the date the application for a permit is filed with the city inspector. City inspector, within thirty (30) calendar days of the receipt of a complete application demonstrating compliance with all applicable requirements of this chapter, and remittance of all fees, insurance and security per the requirements of this chapter for a surface permit, shall issue a surface permit for the drill site, including the installation of the facilities.

Building permits issued on date of filing application.

The provisions of this chapter shall apply to any dwellings or buildings for which an application for a building permit has been submitted on the date the application for a surface permit is filed with the city inspector.

Notice of denial.

If the city inspector denies a surface permit application, he/she shall notify the operator in writing of such denial stating the reasons for the denial. Within thirty (30) calendar days of the date of the written decision of the city inspector to deny the surface permit, the operator may:

Cure the reason(s) for denial.

Cure those conditions that caused the denial and resubmit the application to the city inspector for approval and issuance of the surface permit; or

Appeal.

File an appeal through the city manager to the city council under the provisions outlined in this chapter.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-9 Amended surface permits.

An operator may request to amend a surface permit, to relocate a drill site or operation site that was shown on the application, provided the distance from a protected use is not less than six hundred (600) feet.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-10 Transfer of surface permit.

Written request.

A surface permit may be transferred upon written request by the operator with the consent of the city:

Transferee agreement.

If the transferee agrees to be bound by the terms and conditions of the current surface permit and citywide road maintenance agreement;

Update information.

If all information previously provided to the city as part of the current surface permit application is updated to reflect any changes; and

Insurance and security.

If the transferee provides the insurance and security required by this chapter.

Insurance and security.

The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the city. The transfer shall not relieve the transferor from any liability to the city arising out of any activities conducted prior to the transfer.

§ 18-11 Suspension or revocation of surface permit; effect.

Transfer fee.

Applications for the transfer of surface permits shall be filed with the city inspector. The application fee for the transfer as set forth in the fee schedule referenced in section 18-21 and shall accompany each surface permit transfer application.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

Suspension or revocation.

If an operator (or its officers, employees, agents, contractors, or representatives) fails to comply with any requirement of a surface permit (including any requirement incorporated by reference as part of the surface permit), the city inspector shall give written notice to the operator specifying the nature of the failure and giving the operator a reasonable time to cure, taking into consideration the nature and extent of the failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. In no event, however, shall the cure period be less than thirty (30) calendar days unless the failure presents a risk of imminent destruction of property or injury to persons or unless the failure involves the operator’s failure to provide periodic reports as required by this chapter.

Failure to correct.

If the operator fails to correct the noncompliance within thirty (30) calendar days from the date of the notice, the city inspector may suspend or revoke the surface permit pursuant to the provisions of this chapter.

Appeal.

Operator may, within thirty (30) calendar days of the date of the decision of the city inspector in writing to suspend or revoke a surface permit, file an appeal through the city manager to the city council under the provisions outlined in this chapter.

No work performed during suspension or revocation.

No person shall carry on any operations performed under the terms of the surface permit issued under this chapter during any period of any surface permit suspension or revocation or pending a review of the decision or order of the city in suspending or revoking the surface permit. Nothing contained herein shall be construed to prevent the necessary, diligent and bona fide efforts to cure and remedy the default or violation for which the suspension or revocation of the surface permit was ordered for the safety of persons or as required by the city council.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-12 Periodic reports.

Report timing.

The operator shall notify the city inspector of any changes to the following information within one (1) business week after the change occurs:

Name.

The name, address, and phone number of the operator;

Name of person to receive notice.

The name, address, and phone number of the person designated to receive notices from the city (which person must be a resident of the state that can be served in person or by registered or certified mail); and

Emergency action response plan.

The operator’s emergency action response plan (including “drive-to-maps” from public rights-of-way to each drill site).

Contact information for person with supervisory authority.

The operator shall notify the city inspector of any change to the name, address, and twenty-four-hour phone number of the person(s) with supervisory authority over drilling or operations activities within one (1) business day.

Incident reports.

The operator shall provide a copy to the city of any “incident reports” or written complaints submitted to the commission within thirty (30) calendar days after the operator has notice of the existence of such reports or complaints.

Annual report.

Beginning on December 31 after each well is completed, and continuing on each December 31 thereafter, until the operator notifies the city inspector that the well has been abandoned and the site restored, the operator shall submit a written report to the city inspector identifying any changes to the information that was included in the application for the applicable surface permit that have not been previously reported to the city.

Annual site inspection.

The city inspector shall perform an annual site inspection to insure that the operator is conducting operations in compliance with the surface permit and the provisions of this chapter and to verify the accuracy of the information reported pursuant to this section. The operator shall pay an annual inspection fee in an amount that as set forth in the fee schedule referenced in section 18-21. The annual inspection fee shall be paid no later than May 30 of each year.

§ 18-13 Bond, irrevocable letter of credit, indemnity, insurance.

Follow up inspection.

Incidents requiring notification to the commission shall require a follow up inspection by the city inspector. The fee for said follow up inspection as set forth in the fee schedule referenced in section 18-21. Said fee shall be paid within thirty (30) calendar days of being notified of the need for a follow up inspection.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

General requirements.

The operator shall be required to perform the items listed below:

Comply with terms of chapter.

Comply with the terms and conditions of this chapter and the surface permit issued hereunder.

Restore to conditions existing prior to operation.

Promptly clear drill and operation sites of all litter, trash, waste and other substances used, allowed, or occurring during operations; and after abandonment or completion grade, level, and restore such property to the same surface conditions as nearly as possible as existed before operations.

Indemnify and hold harmless.

Indemnify and hold harmless the city, its officers, agents, and employees from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attorney’s fees, for injury to or death of any person or for damage to any property arising out of or in connection with the work done by operator under a surface permit:

Where such injuries, death or damages are caused by operator’s sole negligence or the joint negligence of operator and any other person or entity; and

Regardless of whether such injuries, death or damages are caused in whole or in part by the negligence of operator.

Pay fines.

Promptly pay all fines, penalties and other assessments, including but not limited to road damage, imposed due to breach of any terms of the surface permit; and

Restore to former condition.

Promptly restore to its former condition any public property damaged by the oil or gas operation.

Bond.

Prior to the issuance of a surface permit the operator shall provide the city inspector with a security instrument in the form of a bond. The bond shall be executed by a reliable surety company appearing the in the U.S. Department of the Treasury Circular 570 list of approved sureties, authorized to do business in the State of Texas, acceptable to the city. The bond shall become effective on or before the date the surface permit is issued and shall remain in force and effect for at least a period of six (6) months after the expiration of the surface permit term or until the well is plugged and abandoned and the site is restored, whichever occurs first. The operator shall be listed as principal and the instrument shall be for the benefit of the city, as obligee, and shall be conditioned that the operator will comply with the terms and regulations of this chapter and the city. The city shall be authorized to draw upon such bond to recover any fines, penalties or road damages assessed under this chapter. The original bond shall be submitted to the city secretary with a copy of the same provided to the city inspector.

Letter of credit.

In lieu of a bond, the operator may choose to provide an irrevocable letter of credit which shall be issued by a reliable bank authorized to do business in the State of Texas and shall become effective on or before the date the surface permit is issued. The letter of credit shall remain in force and effect for at least a period of six (6) months after the expiration of the surface permit term. The city shall be authorized to draw upon such letter of credit to recover any fines or penalties or road damages assessed under this chapter. Evidence of the execution of a letter of credit shall be submitted to the city secretary by submitting an original signed letter of credit from the banking institution, with a copy of the same provided to the inspector.

Security amount.

The principal amount of any security instrument shall be fifty thousand dollars ($50,000.00) for any single well. If, after completion of a well, the applicant/operator, who initially posted a fifty thousand dollar ($50,000.00) bond or irrevocable letter of credit has complied with all of the provisions of this chapter and whose well is in the producing stage and all drilling operations have ceased, may submit a request to the city inspector to reduce the existing bond or irrevocable letter of credit to ten thousand dollars ($10,000.00) for the remainder of the time the well produces without reworking. During reworking operations, the amount of the bond or irrevocable letter of credit shall be maintained at fifty thousand dollars ($50,000.00). An operator drilling or reworking between one (1) and five (5) wells at any given time may elect to provide a blanket bond or irrevocable letter of credit in the principal minimum amount of one hundred fifty thousand dollars ($150,000.00). If the operator drills or reworks more than five (5) wells at a time, the blanket bond or irrevocable letter of credit shall be increased in increments of fifty thousand dollars ($50,000.00) per each additional well. Once the wells are in the producing stage and all drilling operations have ceased, the operator may elect to provide a blanket bond or irrevocable letter of credit for the remainder of the time the wells produce, without reworking, as follows:

Number of Producing Wells	Blanket Bond or Irrevocable Letter of Credit Amount Required
Up to 10 wells	$100,000.00
10 to 50 wells	$150,000.00
More than 50 wells	$200,000.00

City council to determine sufficiency of security.

If at any time after no less than a fifteen-day written notice to the operator and a public hearing, the city council shall deem any operator’s bond or irrevocable letter of credit to be insufficient, it may require the operator to increase the amount of the bond or irrevocable letter of credit up to a maximum of two hundred fifty thousand dollars ($250,000.00) per well.

Written notice of default.

Whenever the city inspector finds that a default has occurred in the performance of any requirement or condition imposed by this chapter, a written notice shall be given to the operator. Such notice shall specify the work to be done and the period of time deemed by the city inspector to be reasonably necessary for the completion of such work. After receipt of such notice, the operator shall provide the estimated cost and, within the time therein specified, either cause or require the work to be performed, or failing to do so, shall pay over to the city one hundred twenty-five (125) percent of the estimated cost of doing the work. In no event, however, shall the cure period be less than thirty (30) calendar days, unless the failure presents a risk of imminent destruction of property or injury to persons or unless the failure involves the operator’s failure to provide periodic reports as required by this chapter. The city shall be authorized to draw against any bond or irrevocable letter of credit to recover such amount due from the operator. Upon receipt of such monies, the city shall proceed by such mode as deemed convenient to cause the required work to be performed and completed, but no liability shall be incurred other than for the expenditure of said sum in hand. In the event that the well has not been properly abandoned under the regulations of the commission and/or this chapter, such additional money may be demanded from the operator as is necessary to properly plug and abandon the well and restore the drill site in conformity with the regulations of this chapter.

(g)

Other legal action.

In the event the operator does not cause the work to be performed and fails or refuses to pay over to the city the estimated cost of the work to be done, or the issuer of the security instrument refuses to honor any draft by the city against the bond or irrevocable letter of credit, the city may proceed to obtain compliance and abate the default by way of civil action against the operator, or by criminal action against the operator, or by both such methods.

(h)

Termination of securities.

When the well or wells covered by said bond or irrevocable letter of credit have been properly abandoned in conformity with all regulations of this chapter, and in conformity with all regulations of the commission and notice to that effect has been received by the city, or upon receipt of a satisfactory substitute, the bond or irrevocable letter of credit issued in compliance with these regulations shall be terminated and cancelled.

(i)

Insurance.

In addition to the bond or irrevocable letter of credit required pursuant to this chapter, the operator shall carry a policy or policies of insurance issued by an insurance company or companies authorized to do business in the State of Texas. In the event such insurance policy or policies are cancelled, the surface permit shall be suspended on such date of cancellation and the operator’s right to operate under such surface permit shall immediately cease until the operator files additional insurance as provided herein.

General requirements applicable to all policies.

The city, its officials, employees, agents and officers shall be endorsed as an “additional insured” to all policies except employer’s liability coverage under the operator’s workers compensation policy.

All policies shall be written on an occurrence basis except for environmental pollution liability (seepage and pollution coverage) and excess or umbrella liability, which may be on a claims-made basis.

All policies shall be written by an insurer with an A-: VIII or better rating by the most current version of the A. M. Best Key Rating Guide or with such other financially sound insurance carriers acceptable to the city.

Deductibles shall be listed on the certificate of insurance and shall be on a “per occurrence” basis unless otherwise stipulated herein.

Certificates of insurance shall be delivered to the City of Brenham, City Manager, P.O. Box 1059, Brenham, Texas 77834, evidencing all the required coverage’s, including endorsements, prior to the issuance of a surface permit.

All policies shall be endorsed with a waiver of subrogation providing rights of recovery in favor of the city.

Any failure on part of the city to request required insurance documentation shall not constitute a waiver of the insurance requirement specified herein.

Each policy shall be endorsed to provide the city a minimum thirty (30) calendar day notice of cancellation, nonrenewal, and/or material change in policy terms or coverage. A ten (10) calendar day notice shall be acceptable in the event of nonpayment of premium.

During the term of the surface permit, the operator shall report, in a timely manner, to the city inspector any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss.

Upon request, certified copies of all insurance policies shall be furnished to the city.

Standard commercial general liability policy.

This coverage must include premises, operations, blowout or explosion, products, completed operations, sudden and accidental pollution, blanket contractual liability, underground resources damage, broad form property damage, independent contractors’ protective liability and personal injury. This coverage shall be a minimum combined single limit of one million dollars ($1,000,000.00) per occurrence for bodily injury and property damage.

Excess or umbrella liability.

Five million dollars ($5,000,000.00) excess, if the operator has a standalone environmental pollution liability (EPL) policy. Ten million dollars ($10,000,000.00) excess, if the operator does not have a standalone EPL policy.

Coverage must include an endorsement for sudden or accidental pollution. If seepage and pollution coverage is written on a “claims made” basis, the operator must maintain continuous coverage and purchase extended coverage period insurance when necessary.

Environmental pollution liability coverage.

Operator shall purchase and maintain in force for the duration of the surface permit, insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; cleanup costs; and defense, including costs and expenses incurred in the investigation, defense or settlement of claims; all in connection with any loss arising from the insured site. Coverage shall be maintained in an amount of at least one million dollars ($1,000,000.00) per loss, with an annual aggregate of at least five million dollars ($5,000,000.00).

Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants.

The operator shall maintain continuous coverage and shall purchase extended coverage period insurance when necessary. The extended coverage period insurance must provide that any retroactive date applicable to coverage under the policy precedes the effective date of the issuance of the permit by the city.

Control of well.

The policy shall cover the cost of controlling a well that is out of control, re-drilling or restoration expenses, seepage and pollution damage as first party recovery for the operator and related expenses, including, but not limited to, loss of equipment, experts and evacuation of residents.

One million dollars ($1,000,000.00) per occurrence/no aggregate, if available, otherwise an aggregate of five million dollars ($5,000,000.00). Five hundred thousand dollars ($500,000.00) sub-limit endorsement may be added for damage to property for which the operator has care, custody and control.

Workers compensation and employers liability insurance.

Workers compensation benefits shall be state statutory limits.

Employers liability shall be a minimum of five hundred thousand dollars ($500,000.00) per accident.

Such coverage shall include a waiver of subrogation in favor of the city and provide coverage in accordance with applicable state and federal laws.

Automobile liability insurance.

Combined single limit of one million dollars ($1,000,000.00) per occurrence for bodily injury and property damage.

Coverage must include all owned, hired and not-owned automobiles.

(8)

Certificates of insurance.

The company must be admitted or approved to do business in the State of Texas, unless a surplus lines insurer writes the coverage.

The insurance set forth by the insurance company must be underwritten on forms that have been approved by the Texas Department of Insurance, or an equivalent policy form acceptable to the city, with the exception of environmental pollution liability and control of well coverage.

Sets forth all endorsements and insurance coverage according to requirements and instructions contained herein.

Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the city. All policies shall be endorsed to read:

“THIS POLICY WILL NOT BE CANCELLED OR NONRENEWED WITHOUT THIRTY (30) CALENDAR DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE CITY EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE TEN (10) DAYS’ ADVANCE WRITTEN NOTICE IS REQUIRED.”

Original endorsements affecting coverage required by this section shall be furnished with the certificates of insurance.

(j)

Indemnification and express negligence provisions.

Each surface permit issued by the city inspector shall include the following language:

“Operator does hereby expressly release and discharge, all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City of Brenham, Texas, and/or its departments, agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under a surface permit. The operator shall fully defend, protect, indemnify, and hold harmless the City of Brenham, Texas, its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the City of Brenham, Texas, its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the operator under a surface permit. The operator agrees to indemnify and hold harmless the City of Brenham, Texas, its departments, its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the city, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Brenham occurring on the drill site or operation site in the course and scope of inspecting and permitting the surface of the oil or gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF THE CITY OF BRENHAM OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE ABOVE GROUND ACTIVITY RELATED TO OPERATIONS OF THE OIL OR GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF BRENHAM, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF BRENHAM, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE.”

(k)

Notice.

The individual designated to receive notice shall be a resident of the State of Texas upon whom all orders and notices provided in this chapter may be served in person or by registered or certified mail. Every operator shall within one business week notify the city inspector in writing of any change in such agent or mailing address unless operations in the city are discontinued and abandonment is complete.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-14 Technical regulations.

Onsite requirements.

Abandoned wells.

All wells shall be abandoned in accordance with the rules of the commission. No structures shall be built over an abandoned well.

Compliance.

Operator shall comply at all times with all applicable federal, state and city requirements.

Discharge.

No person shall place, deposit, discharge, or cause or permit to be placed, deposited or discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substances or any refuse including wastewater or brine from any oil or gas operation or the contents of any container used in connection with any oil or gas operation in, into, or upon any public right-of-way, alleys, streets, lots, storm drain, pit, ditch or sewer, sanitary drain or any body of water or watercourse that may ultimately enter into waters of the city, state or United States.

Dust, vibration, odors.

All drilling and production operations shall be conducted in such a manner as to minimize, so far as practicable, dust, vibration, or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for the production of oil, gas and other hydrocarbon substances in urban areas. All equipment used shall be constructed and operated so that, vibrations, dust, odor or other harmful or annoying substances or effect will be minimized by the operations carried on at any drilling or production site or from anything incident thereto, to the injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in industry standards of drilling and production in this area shall be adopted as they become available if capable of reducing factors of dust, vibration and odor.

Electric lines.

All electric lines to production facilities shall be located underground. When electric utility lines are located within three hundred (300) feet of the pad site and are determined to be sufficient for operations, the operator may use fuel-powered generators only as a backup in the event of a power failure.

Emergency response plan.

Prior to the commencement of any oil, gas or other hydrocarbons production activities, operator shall submit to the city inspector an emergency response plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of oil or gas wells. Said plan shall use existing guidelines established by the commission, and any other local, state or federal agency.

Fire prevention; sources of ignition.

Firefighting apparatus and supplies as approved by the fire department and required by any applicable federal, state, or local 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. Operators must identify sites with hydrogen sulfide (H2S) producing wells and provide wind direction socks for those sites at the operator’s sole cost. The operator shall be responsible for the maintenance and upkeep of equipment required herein. Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All wellheads shall contain an emergency shut off valve to the well distribution line as required by the commission.

(8)

Freshwater wells.

It shall be unlawful to drill any oil or gas well, the center of which, at the surface of the ground, is located within one thousand (1,000) feet to any freshwater well, except for freshwater wells used solely for the oil or gas well operation. The measurement shall be in a direct line from the closest well bore to the freshwater well bore.

(9)

Oil or gas emission or burning restricted.

At no time shall the well be allowed to flow or vent directly to the atmosphere without first directing the flow through separation equipment or into a portable tank. Venting operations shall be required to comply with the noise regulations contained in this chapter.

(10)

Grass, weeds, trash.

All drill and operation sites shall be kept clear of high grass, weeds, and trash. All landscaping shall be continuously maintained in an acceptable manner.

(11)

Hazardous plan.

Hazardous materials management plan shall be on file with the fire marshal and the city inspector. A safety data sheet (SDS) will be maintained at each location and shall be readily available for fire personnel to review in the event of an emergency. Additionally, any hazardous materials protected as “trade secret” shall be disclosed to fire personnel in the event of an emergency, in accordance with commission rules.

(12)

Lights.

No person shall permit any lights located on any drill or operation site to be directed in such a manner so that they shine directly on public roads, adjacent property or property in the general vicinity of the drill or operation site. To the extent practicable, and taking into account safety considerations, site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within three hundred (300) feet.

(13)

Closed loop mud systems.

A closed loop mud system shall be used in conjunction with all drilling and reworking operations for all surface permits, unless specifically waived by the city council.

(14)

Private roads and drill sites.

Prior to the commencement of any drilling operations, all private roads used for access to the drill site and the operation site itself shall be at least ten (10) feet wide, have an overhead clearance of fourteen (14) feet and shall be surfaced with crushed rock, gravel or ore and maintained to prevent dust and mud. Further, an ample supply of dust suppressant shall be maintained on any private road used for access to the drill site so as to prevent dust during the lifetime use of the road. In particular cases these requirements governing surfacing of private roads may be altered at the discretion of the city inspector after consideration of all circumstances including, but not limited to, the following: distances from public streets and highways; distances from adjoining and nearby property owners whose surface rights are not leased by the operation; the purpose for which the property of such owners is or may be used; topographical features; nature of the soil; and exposure to wind.

(15)

Signs.

A sign shall be immediately and prominently displayed adjacent to the public right-of-way at the gate on the temporary and permanent site fencing erected pursuant to this chapter. Such sign shall be durable material, maintained in good condition and, unless otherwise required by the commission, shall have a surface area of not less than two (2) square feet nor more than four (4) square feet and shall be lettered with the following:

Wellname and number;

Name of operator;

The emergency 911 number; and

Telephone numbers of two (2) persons responsible for the well who may be contacted in case of emergency.

Permanent weatherproof signs reading “danger no smoking allowed” shall be posted immediately upon completion of the drill site fencing at the entrance of each drill site and tank battery or in any other location approved or designated by the fire marshal of the city. Sign lettering shall be four (4) inches in height and shall be red on a white background or white on a red background. Each sign shall include the emergency notification numbers of the fire department and the operator, well and lease designations required by the commission.

(16)

Storage of equipment.

Onsite storage is prohibited on the operation site. No equipment shall be stored on the drilling or production operation site, unless it is necessary to the everyday operation of the well. Lumber, pipes, tubing and casing shall not be left on the operation site except when drilling or well servicing operations are being conducted on the site.

No vehicle or item of machinery shall be parked or stored on any street, right-of-way or in any driveway, alley or upon any operation site which constitutes a fire hazard or an obstruction to or interference with fighting or controlling fires except that equipment which is necessary for drilling or production operations on the site. The fire department shall be the entity that determines whether equipment on the site shall constitute a fire hazard. Vehicles containing hazardous materials shall be placarded according to National Fire Protection Association requirements.

(17)

Storage tanks.

All storage tanks shall be equipped with firewalls, berms or secondary containment system including lining with an impervious material. The firewall, berms or secondary containment system shall be in accordance with the rules of the commission and any other local, state or federal agency. Drip pots shall be provided at the pump out connection to contain the liquids from the storage tank.

All tanks shall be set back pursuant to the standards of the commission and the National Fire Protection Association, but in all cases, shall be at least twenty-five (25) feet from any public right-of-way or property line. 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.

No meters, storage tanks, separation facilities, or other above ground facilities, other than the wellhead and flow lines, shall be placed within any floodway as defined by the most current FEMA map, without the prior consent of the city council.

To the extent that it is technically feasible, all storage tanks, separators and compressors serving multiple wells shall be kept as a group on a single site.

(18)

Tank battery facilities.

Tank battery facilities and/or storage tanks shall be equipped with a remote foam line and a lightning arrestor system.

(19)

Valves.

Each well must have a shutoff valve to terminate the well’s production. The fire department shall have access to the drill site to enable it to close the shut-off valve in an emergency.

(20)

Waste disposal.

Unless otherwise directed by the commission, all tanks used for storage shall conform to the following:

Operator must use portable closed steel storage tanks for storing liquid hydrocarbons. Tanks must meet the American Petroleum Institute standards. All tanks must have a vent line, flame arrester and pressure relief valve. A fence applicable to the issued permit classification must enclose all tanks. No tank battery/storage tank shall be within three hundred (300) feet of any dwelling or other combustible structure.

Drilling mud, cuttings, liquid hydrocarbons and all other field waste derived or resulting from or connected with the drilling, reworking or deepening of any well shall be processed through a closed loop mud system. All disposals must be in accordance with the rules of the commission and any other appropriate local, state or federal agency.

Unless otherwise directed by the commission, waste materials shall be removed from the site and transported to an offsite disposal facility not less often than every thirty (30) calendar days. Water stored in onsite tanks shall be removed as necessary.

All waste shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the state, and any other appropriate local, state or federal agency.

(21)

Watchman.

The operator must keep a watchman or security personnel on-site during the drilling or reworking of a well when other workmen are not on the premises.

(22)

Painting.

All production equipment shall be painted and maintained at all times, including wellheads, pumping units, tanks and secondary containment. When requiring painting of such facilities, the city inspector shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance. Paint shall be of a neutral color, compatible with surrounding uses. Neutral colors shall include sand, gray and unobtrusive shades of green, blue, black and brown, or other neutral colors approved by the city inspector. The color of all tanks, fixed equipment and painted surfaces, including fences, shall be the same throughout the pad site.

(23)

Hydrogen sulfide.

If a gas or oil field is identified as a hydrogen sulfide (H2S) field under RRC, TCEQ, or EPA regulations, or if a well is producing hydrogen sulfide (H2S) gas over applicable commission, and any other appropriate, state or federal agency standards, the operator shall immediately stabilize and cease any additional oil or gas operations of that well or facility.

(24)

Saltwater wells.

No saltwater wells, or disposal wells shall be located within the city.

Well setbacks.

Except as otherwise provided in this section, it shall be unlawful to drill any well, the center of which, at the surface of the ground, is located:

Boundary of drill site.

Within seventy-five (75) feet from the boundary of the drill/operation site;

Storage tank.

Within seventy-five (75) feet from any storage tank, or source of ignition;

Public street.

Within six hundred (600) feet of any public street, road, highway or future street, right-of-way or property line, or railroad right-of-way;

Protected use.

Within six hundred (600) feet from any protected use;

Accessory building.

Within one hundred (100) feet of any building accessory to, but not necessary to the operation of the well; or

Freshwater well.

Within one thousand (1,000) feet to any freshwater well. The measurement shall be in a direct line from the closest well bore to the freshwater well bore.

Outer boundary line.

Within three hundred (300) feet from an outer boundary surface property line or a distance minus the required zoning setback of the adjacent property at the time of permitting the first oil or gas well unless one (1) of the following conditions exist:

The oil, gas and mineral lease precedes the formation of an outer boundary surface property line; or

The adjacent property is owned or under lease by the operator.

General information.

The distance shall be calculated from the well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of any object listed in subsections (b)(1) through (6) above.

There will be a minimum twenty-five-foot landscape buffer on all sides of the area adjacent to and outside of the fence of the operation site.

The distances set out in subsection (b)(1), (3) or (6) of this section may be reduced at the discretion of the city council. The reduction of the distance requirement for freshwater wells is subject to the commission regulations and any other appropriate local, state or federal agency.

The distance set out in subsection (b)(4) of this section may be reduced to three hundred (300) feet from any protected use, with a:

waiver granted by the city council; or

written notarized waivers granted by all the protected use property owners within a six-hundred-foot radius around the proposed well.

Installation of pipelines on, under or across public property.

Franchise.

The operator shall apply to the city for a franchise agreement on, over, under, along or across the city streets, sidewalks, alleys and other city property for the purpose of constructing, laying, maintaining, operating, repairing, replacing and removing pipelines so long as production or operations may be continued under a surface permit issued pursuant to this chapter. Operator shall:

Not interfere with or damage existing water, sewer or gas lines or the facilities of public utilities located on, under or across the course of such rights-of-way.

Furnish to the city inspector of the city a plat showing the location of such pipelines.

Construct such lines out of pipe in accordance with the city codes and regulations properly cased and vented if under a street.

Grade, level and restore such property to the same surface condition, as nearly as practicable, as existed when operations for the drilling of the well were first commenced.

Drilling in streets prohibited.

No surface permit shall be issued for any well to be drilled within any of the streets or alleys of the city and/or projected streets or alleys shown by the current master/thoroughfare plan of the city, and no street or alley shall be blocked or encumbered or closed due to any exploration, drilling or production operations unless prior consent is obtained from the city council. Any consent shall be temporary in nature and state the number of hours and/or days that any street or alley may be blocked, encumbered or closed. The decision to authorize a license agreement in accordance with this section shall be in the sole discretion of the city council.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-15 Cleanup and maintenance.

This section applies to new surface permits as well as oil and gas wells that are in existence at the time of adoption of this chapter. All drill sites shall be maintained to this cleanup and maintenance standard.

Cleanup after well servicing.

After the well has been completed or plugged and abandoned, the operator shall clean the drill site or operation site, complete restoration activities and repair all damage to public property caused by such operations within sixty (60) calendar days.

Cleanup after spills, leaks and malfunctions.

After any spill, leak or malfunction, the operator shall remove or cause to be removed to the satisfaction of the city inspector all waste materials from any public or private property affected by such spill, leak or malfunction. Cleanup operations must begin immediately. If the owner fails to begin site cleanup within twenty-four (24) hours, the city shall have the right to contact the commission in order to facilitate the removal of all waste materials from the property affected by such spill, leak or malfunction.

Free from debris.

The property on which a 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.

Painting.

All production equipment shall be painted and maintained at all times, including wellheads, pumping units, tanks, and buildings or structures. When requiring painting of such facilities, the city inspector shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance. Paint shall be of a neutral color, compatible with surrounding uses. Neutral colors shall include sand, gray and unobtrusive shades of green, blue, black and brown, or other neutral colors approved by the city inspector.

Blowouts.

In the event of the loss of control of any well, operator shall immediately take all reasonable steps to regain control regardless of any other provision of this chapter and shall notify the city inspector as soon as practicable. The city inspector shall certify in writing, briefly describing the same, to the city manager. If the city inspector, in his opinion, believes that danger to persons and property exists because of such loss of well control and that the operator is not taking or is unable to take all reasonable and necessary steps to regain control of such well, the city inspector may then employ any well control expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which the city inspector deems necessary to regain control of such well. The city shall then have a valid lien against the interest in the well of all working interest owners to secure payment of any expenditure made by the city pursuant to such action of the city inspector in gaining control of said well.

Secondary containment.

All storage tanks shall be equipped with a firewall, berm or secondary containment system including lining with an impervious material. The firewall, berm or secondary containment system shall be in accordance with the rules of the commission and any other local, state or federal agency. Drip pots shall be provided at the pump out connection to contain liquids from the storage tank.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-16 Plugged and abandoned wells.

Surface requirements for plugged and abandoned well.

Whenever abandonment occurs pursuant to the requirements of the commission, the operator so abandoning shall be responsible for the restoration of the drill site to its original condition as nearly as practicable, in conformity with the regulations of this chapter.

Abandonment.

Abandonment shall be approved by the city inspector after restoration of the drill site has been accomplished in conformity with the following requirements at the discretion of the city inspector:

Derrick.

The derrick and all appurtenant equipment thereto shall be removed from drill site;

Tanks.

All tanks, towers, and other surface installations shall be removed from the drill site;

Concrete foundations.

All concrete foundations, piping, wood, guy anchors and other foreign materials regardless of depth, except surface casing, shall be removed from the site, unless otherwise directed by the commission;

Holes and depressions.

All holes and depressions shall be filled with clean, compactable soil;

Waste.

All waste, refuse or waste material shall be removed from the drill site; and

Compliance.

During abandonment, operator shall comply with all applicable sections in this chapter.

Permanent marker.

A permanent abandonment marker pipe, with well identity and location permanently inscribed shall be welded to casing and shall be at least four (4) inches in diameter with a length of four (4) feet visible above ground level.

Abandoned well requirement.

The operator shall furnish the following at the discretion of the city inspector:

Commission approval.

A copy of the approval of the commission confirming compliance with all abandonment proceedings under the state law; and

Notice.

A notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated.

§ 18-18 Extraterritorial jurisdiction (ETJ).

Abandonment requirements prior to new construction.

All abandoned or deserted wells or drill sites shall meet the most current abandonment requirements of the commission prior to the issuance of any building permit for development of the property. No structure shall be built over an abandoned well.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-17 Technical advisor.

The city may from time to time employ a technical advisor or advisors who are experienced and educated in the oil or gas industry or the law as it pertains to oil or gas matters. The function of such advisor(s) shall be to advise, counsel or represent the city on such matters relating to oil or gas operations within the city as the city may want or require and the effect thereof, both present and future, on the health, welfare, comfort and safety of the citizens of the city. In the event such technical advisor(s) is employed for the purpose of advising, counseling or representing the city relative to an operator’s unique and particular set of circumstances, case or request relating to this chapter, then the cost the services of the technical advisor(s) shall be assessed against and paid for by the operator in addition to any fees or charges assessed pursuant to this chapter. Prior to the employment of a technical advisor, the city shall inform the operator of the intended scope of work and the estimated costs and expenses. The employment of a technical advisor shall be approved by the city manager.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

Site plan required.

All wells drilled, redrilled/reworked after the passage of this chapter that are located within the ETJ of the city shall file a site plan with the city secretary showing the property boundaries and location of said well and associated equipment. No fee shall be charged by the city for said filing.

Road maintenance agreement.

Any oil or gas well to be drilled or being drilled in the ETJ on the effective date of this chapter, using trucks larger than three (3) tons, that will be traveling on city maintained streets during drilling, production, transportation or any other related activity must sign a citywide road maintenance agreement. The agreement shall provide that the operator shall repair, at his own expense, damage to roads or streets caused by the use of heavy vehicles for any activity associated with the preparation, drilling, production, transportation and operation of oil and or gas wells. City shall determine degree of damage, dollar amount owed and bill annually. Operator shall provide the number of truck trips, truck types and weights, loaded and unloaded. Agreement may also contain provisions to protect the health, welfare and safety of the citizens along the streets being used, such as, speed limits, other traffic-control devices, days and times of usage, turning movements, noise limitations, etc. Failure to sign and abide by the citywide road maintenance agreement will result in the loss of the privilege to use city streets.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-19 Appeals.

Failure to cure.

If the operator does not cure any noncompliance within the time specified in this chapter, the inspector, upon written notice to the operator, may suspend or revoke the surface permit.

File appeal.

Operator may, within thirty (30) calendar days of the date of the decision of the inspector in writing to suspend or revoke a surface use permit, file an appeal through the city manager to the city council under the provisions outlined in this section.

Council appeal.

The city council shall have and exercise the power to hear and determine appeals where it is alleged there is error or abuse of discretion regarding the revocation or suspension of any surface use permit issued by the inspector as provided by this chapter. Any person or entity whose permit is suspended or revoked or whose well or equipment is deemed by the inspector to be abandoned may, within thirty (30) calendar days of the date of the written decision of the inspector file an appeal to the city council in accordance with the following procedure.

Appeal in writing.

An appeal shall be in writing and shall be filed in triplicate with the city secretary. The grounds for appeal must be set forth specifically, and the error described, by the appellant.

City council agenda.

Within forty-five (45) calendar days of receipt of the records, the city secretary shall transmit all papers involved in the proceeding, place the matter on the city council agenda for hearing and give notice by mail of the time, place and purpose thereof to appellant and any other party who has requested in writing to be so notified. No other notice need to be given.

Fee.

Appeal fees shall be required for every appeal and as set forth in the fee schedule referenced in section 18-21.

Decision final.

The decision of the city council shall be final.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-20 Takings determination.

Taking application.

Any aggrieved person who believes that an action taken pursuant to this chapter by the city council or any officer, employee or agent of the city would legally constitute a taking of property without just compensation under the state or United States Constitution, must file an application with the city council to request a takings determination.

File with city secretary.

The applicant seeking a takings determination from the city council shall file its application with the office of the city secretary at least thirty (30) days prior to the next regularly scheduled city council meeting. The city secretary shall then forward the takings determination application to the city council for consideration. The application fee as set forth in the fee schedule referenced in section 18-21 shall accompany each filing.

Evidence of takings.

The application shall state the reasons the applicant believes would support a finding that the city’s application of the provisions of this chapter to the applicant’s property would legally constitute a taking under the state or United States Constitution and shall include evidence substantiating the purported diminution in value of the applicant’s property.

Burden of proof.

At the takings determination hearing conducted by the city council, the applicant must present detailed economic information and other evidence necessary to establish that the city’s application of the provisions of this chapter to the applicant’s property would legally constitute a taking of the property without just compensation. The applicant has the burden of proof in establishing that the city’s application of the provisions of this chapter to the applicant’s property legally constitutes a taking of property without just compensation under the state or United States Constitution.

Council powers.

The city council may administer oaths, compel the attendance of witnesses and require the disclosure of financial information from the applicant that the city council determines is necessary to make a determination regarding whether the city’s application of the provisions of this chapter to the applicant’s property legally constitutes a taking of property without just compensation under the state or United States Constitution.

Council finding.

If the council finds in favor of the applicant it may:

Grant the relief requested;

Direct the city manager to rescind action taken by city staff or agent that formed the basis of the takings determination application; or

Direct the city manager to reconsider action taken by city staff or agent that formed the basis of the takings determination application.

If the council denies the application, or after a favorable determination the city council fails action of the city council to the county or district court of the county in which the affected real property is located within thirty (30) calendar days of the date that the council issues its final decision.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-21 Fee schedule.

Oil and gas well drilling and production activities are subject to the following fees which amounts shall be established by resolution adopted by the city council, and said resolution shall be available in the city secretary’s office:

Surface permit fee.

Extended permit fee.

Annual inspection fee.

Follow-up inspection fee.

Amended permit fee.

Transfer permit fee.

Appeal fee.

“Taking” application fee.

(Ordinance O-18-015, sec. 1, adopted 11/1/18)

§ 18-22 Penalty.

Unlawful.

It shall be unlawful and an offense for any person to do the following:

Activities not permitted.

Engage in any activity not permitted by the terms of a surface permit issued under this chapter;

Failure to comply.

Fail to comply with any condition set forth in a surface permit issued under this chapter; or

Violate provision.

Violate any provision or requirement set forth under this chapter.