Town of Double Oak, TX OIL AND GAS DRILLING AND PRODUCTION

The drilling and production of oil and/or gas within the corporate limits of the town shall be permitted within the corporate limits of the town provided that all terms, conditions and requirements set forth in subsections (1) through (10) below have been met and complied with:

No well shall be located within five hundred feet (500') of a residential structure;

No well shall be located within five hundred feet (500') of any public park, religious institution, school or place of assembly;

No well shall be located within five hundred (500') feet from any existing storage tank, or source of potential ignition;

No well within five hundred (500') feet of any public street, road, highway, or right-of-way;

No well within one hundred (100') feet of any building accessory to, but not necessary to the operation of the well;

No well within five hundred (500') feet to any fresh water well;

All applicable standards and requirements have been met as set forth in Section 4.308 of this article;

(8)

An approved oil/gas well development plat and a road repair agreement are on file with the town;

(9)

An oil/gas well permit has been issued by the town; and

(10)

All applicable town, state, county and federal laws and standards have been met and/or complied with.

The measurement of all distances set forth in subsections (1) – (6) above shall be calculated from the proposed well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the object listed in subsections (1) through (6) above.

(Ordinance 05-19 adopted 5/2/05)

§ 4.305 Oil or Gas Well Drilling and Production by Specific Use Permit; Application and Requirements.

No person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall engage in drilling or production of an oil or gas well within the corporate limits of the town without first obtaining a specific use permit as required by this article, as amended, and Chapter 14 of this code (the town’s comprehensive zoning ordinance).

An application for a specific use permit for the drilling and production of an oil/gas well shall be filed by the person having legal authority. That person is presumed to be the record owner, mineral owner, or the duly authorized agent of either the record owner or the mineral owner. An applicant shall submit written notarized documentation of his/her authority to file an application.

No application shall be accepted for filing until it is complete and all fees required to be paid prior to and/or with the application, as set forth in the schedule of fees, have been paid. Incomplete applications shall be returned less a fee for processing determined by the town secretary and/or designee.

(Ordinance 05-19 adopted 5/2/05)

§ 4.306 Oil and Gas Well Development Application and Plans.

Any person who proposes drilling and/or the production of oil or gas on a tract of land located within the corporate limits of the town must obtain a valid oil and gas development permit. To obtain a permit, an oil/gas well development application and plan must be prepared and filed with the town, regardless of whether the property has previously been platted.

The oil/gas well development application and plan shall be processed and approved in accordance with the town’s zoning ordinance and the provisions of this article. No new oil or gas development may begin on a property until the oil/gas well development plan is filed, the plan is approved by the town, a permit is issued and all other requirements of this article have been met. Where the provisions of this article conflict with those set forth in the town’s zoning ordinance or any other ordinance of the town, the provisions of this article will prevail.

No development is allowed in a designated floodplain other than the construction of temporary access roads.

An application for the approval of an oil and gas well development shall be filed with the town secretary at least thirty (30) days prior to the date the commission is to consider the application and shall include the application form, fifteen (15) sets of the oil and gas development plan plus one (1) additional copy of the plat, no larger than 11" x 17", one (1) electronic copy (PDF format) plus the original plat document. No plan will be considered filed until a complete application package, inclusive of all the required items and information listed herein are provided, and the appropriate filing fees have been paid. In addition, tax certificates (indicating that all taxes on the land covered by the plat have been paid to the current year) must be submitted with the application for approval of an oil and gas well development permit.

The oil and gas development plan shall contain:

An oil and gas development permit application.

An oil and gas well development plat which shall be drawn at a scale of one hundred feet to the inch (1" = 100') with contour intervals of two (2) feet with reference to mean sea level datum. The following information is to be included in the plat:

The tract designation and other legal descriptions according to the real estate records of the town, county, or central appraisal district for each tract of land contained within and adjacent to the oil and gas well development site.

Name of owner and surveyor responsible for the surveying design.

North point.

Primary control points or descriptions, and ties to such control points to which all dimensions, angles, bearings, block numbers, and similar data shall be referred.

Scale and date.

Boundary lines of the entire area covered by the oil and gas well development plan, indicated by heavy lines, and the computed acreage of the parcel shall be noted.

(G)

Contours shall be at an interval of two feet elevations unless otherwise specified by the town council. Any proposed changes in topography shall be illustrated on the plat.

(H)

Physical features of the property, including location of all planned and existing watercourses, culverts, bridges, railroads, structures, sewers, water mains, gas, electric, telephone lines and such other structures or improvements, whether above or below ground, within 200 feet of the tract with pipe sizes and grades.

(I)

The limits of any floodplain and floodway as they are currently shown on FEMA maps within the property and proposed alterations which may impact water flow.

(J)

Location of town limits, the town’s extraterritorial jurisdiction, and zoning district boundaries, if they traverse the plat, or form any part of the boundary of the plat, or are contiguous to the boundary of the plat.

The names and lot patterns of subdivisions and/or the names of record owners of unsubdivided land within one thousand feet (1000') of the perimeter of the oil and gas well development plat.

Identification of all truck routes and access points.

The design, location, and arrangement of all driveways and parking spaces, which must provide for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments.

A drainage and erosion control plan that is prepared by a professional engineer licensed to operate in the state. The drainage and erosion control plan must be approved by the town engineer and must conform with the following:

All floodplain, creek, and stream crossings shall be designed to a 25-year storm frequency;

The erosion control plan must provide references to all applicable local, state, and federal standards and must indicate how these requirements are to be satisfied; and

Verification that all floodplain, creek, and stream crossings shall have no negative effects on other property.

Identify the proposed sources of water for all drilling and other well-related operations (including but not limited to all water sources for fracing operations) and any other public utilities required.

(8)

Identify the location of proposed lease lines and well locations:

Label distance between wells and property lines;

Label distance between wells and structures within 1,000 feet of wells as measured from the property line;

Label distance between temporary holding ponds and floodplains.

(9)

Provide typical well site schematics showing layout during drilling and upon completion of drilling.

(10)

Show location of all proposed underground pipelines.

(11)

Identify pipelines connected with a gas distribution system.

(12)

Identify the location of any fresh water wells.

(13)

Identify the location of all structures, tanks and all areas where equipment is to be stored.

(14)

Required screening, landscaping and irrigation plans.

(15)

A copy of all existing protective covenants regulating the use of any portion of the land within the subject lease.

(16)

Written agreements, with notarized signatures, of the applicant and any person owning a residential structure located within five hundred feet (500') of a proposed well site that grant authorization to drill within five hundred feet (500') of said residential structure(s).

(17)

As-built drawings shall be filed with the town.

(18)

The site plan shall be drawn to scale and shall show general use, lot arrangements, building sites and elevations, and the location and design of all internal streets, drives, railway facilities, parking areas, uses, pipelines, and structures. Site plans shall be prepared by a professional engineer licensed to practice in the state and shall bear the engineer’s seal. The widths and names of all existing or platted streets or other public rights-of-way or easements within or adjacent to the tract, shall be located together with any existing permanent buildings, railroads, and other important features, such as abstract lines, political subdivisions or corporation boundaries, and school district boundaries; permanent structures and land uses within the area covered by the oil and gas well development plat and within one thousand feet (1,000') of the perimeter of the oil and gas well development plat. Said permanent structures and uses shall include houses, barns, walls, wells, tanks, gates, fencing and other significant features.

(19)

The operator shall file a copy of the storm water pollution plan if required by the EPA.

(20)

A road repair agreement with the town, approved by the town council.

(Ordinance 05-19 adopted 5/2/05)

§ 4.307 (Reserved)

§ 4.308 Standards and Conditions for Oil or Gas Well Drilling and Production.

The drilling and production of an oil/gas well shall comply with the following conditions and standards:

Compliance with the Development Plan.

Any and all drilling and production of an oil/gas well must comply with an oil and gas well development plan that has been approved by the town council and must comply with all requirements of this article and any other local, state and federal laws.

Other Requirements and Restrictions.

No refining process, or any process for the extraction of products from gas and/or oil, shall be carried on at a drill site or operation site, except that a dehydrator and separator may be maintained on a drill site or operation site for the separation of liquids from gas. Any such dehydrator or separator may serve more than one well.

A masonry fence at least eight (8) feet but not to exceed ten (10) feet in height, with a secured entrance gate, shall enclose all completed wells and tanks located within an oil/gas well permit area. A chain link fence, with a secured entrance gate, shall enclose the drill site during any and all drilling, completion or re-working operations. All gates are to be kept locked when the operator or his employees are not within the enclosure.

Landscaping and irrigation shall be required along all street frontages of the well site with suitable screening shrubs that complement the architectural character of the surrounding neighborhood. The vegetation or berms shall be kept in an attractive state and in good condition at all times by the applicant or operator. All landscape and irrigation plans shall be submitted to the town for approval.

Vehicles associated with drilling and/or production in excess of three (3) tons shall be restricted to streets as designated on the vehicle route map.

Site development, other than drilling or working over a well, shall be conducted only between the hours of 7 a.m. to 7 p.m. on Monday through Friday and 9 a.m. to 5 p.m. on Saturday. Truck deliveries of equipment and materials, including the delivery of water for all fracture stimulation operations performed on a well, associated with drilling and/or production, well servicing, site preparation and other related work conducted on the well site shall be limited to between the hours of 7 a.m. to 7 p.m., Monday through Friday, 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 “tripping” operations, formation fracturing operations (“fracing”) and “flowback” operations to recover fluids used during fracture stimulation shall be performed between the hours of 7 a.m. to 7 p.m., Monday through Friday.

Noise Restrictions.

No drilling, producing or other operations shall produce a sound level greater than 40 dB(a) when measured at a distance of three hundred (300) feet (in all directions) from the drilling/production operations equipment in question. A maximum sound level of 45 dB(a) shall apply to formation fracturing when measured at a distance of three hundred (300) feet in all directions from the equipment in question.

No person shall operate or permit to be operated in connection with the operation of a producing well any engine, compressor or motor-driven machinery of any type which creates a sound level greater than 45 dB(a) when measured at a distance of three hundred (300) feet in all directions from the well site.

(iii)

If sound levels exceed the dB(a) levels cited in (i) and (ii) of this subsection, the town may require, in addition to any other remedy or sanction, sound-reducing mufflers.

(iv)

No air, gas or pneumatic drilling shall be allowed due to the noise and safety factors involved.

(G)

All tanks and permanent structures shall conform to the American Petroleum Institute (A.P.I.) specifications unless other specifications are approved by the fire official. The top of the tanks shall be no higher than twelve (12) feet above the terrain surrounding the tanks. All tanks shall be set back pursuant to the standards of the railroad 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.

(H)

Main transmission pipeline cooling or compression facilities are not allowed in any zoning district in the town.

(I)

Only electric prime movers or motors shall be used for pumping wells. Air, diesel or pneumatic drilling is not allowed in the town.

(J)

No smoking or open fires shall be permitted on the drill site and/or operation site. Permanent weatherproof signs reading “DANGER NO SMOKING ALLOWED” in a minimum of four-inch (4") lettering shall be posted at the entrance of each drill site and operation site. The sign shall include the phone number for emergency services (911), the number for the operator, and the well designation required by the railroad commission in two-inch (2") lettering.

(K)

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 paved or surfaced with crushed rock, gravel or ore and maintained to prevent dust and mud. In particular cases these requirements governing surfacing of private roads may be altered at the discretion of and with the approval of both the town engineer and fire official 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.

(L)

No person shall place, deposit, or discharge (or cause or permit to be placed, deposited, or discharged) any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, or any refuse, including but not limited to 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, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private property within the corporate limits of the town or the town’s extraterritorial jurisdiction.

(M)

All electric lines to production facilities shall be located underground.

(N)

All fire suppression and prevention equipment required by any applicable federal, state, or local law shall be provided by the operator, at the operator’s cost, and maintenance and upkeep of such equipment shall be the responsibility of the operator.

(O)

No operator shall excavate or construct any lines for the conveyance of fuel, water, or minerals on, under, or through the streets or alleys or other land of the town without an easement or right-of-way permit approved by the town council and then only in strict compliance with this article, with other ordinances of the town, and with the specifications established by the town engineer.

(P)

The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any public street or leaving upon any public street any earth or other material or obstruction, is prohibited unless the operator has first obtained written permission from the town engineer, police chief and fire official, and then only in compliance with specifications established by town ordinances.

(Q)

No oil/gas well permit shall be issued for any well to be drilled within any of the streets or alleys of the town and/or streets or alleys shown by the town thoroughfare plan and no street shall be blocked or encumbered or closed due to any exploration, drilling, or production activities unless prior consent is obtained by the town council, with input from the fire official and police chief, and then only temporarily.

(R)

On-site storage is prohibited on the operation site. No equipment shall be stored on the drill site or operation site unless it is necessary to the everyday operation of the well, required by local, state or federal law, or is reasonably necessary for the safe drilling or operation of the site. Lumber, pipes, tubing and casing shall not be left on the drill site or 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 town engineer and the fire official shall determine whether equipment on the site shall constitute a fire hazard. No refinery, processing, treating, dehydrating or absorption plant of any kind shall be constructed, established or maintained on the premises. This shall not be deemed to exclude a conventional gas separator or dehydrator.

(S)

Closed-loop drilling fluid systems shall be used instead of lined reserve pits.

Flow Lines and Gathering Lines.

Each operator shall place an identifying sign at each point where a flow line or gathering line crosses a public street or road.

Each operator shall place a warning sign for lines carrying H2S (hydrogen sulfide) gas as required by the railroad commission.

All flow lines and gathering lines within the corporate limits of the town (excluding utility lines and franchise distribution systems) that are used to transport oil, gas, and/or water shall be limited to the maximum allowable operating pressure applicable to the pipes installed and shall be installed with at least the minimum cover or backfill specified by the American National Safety Institute Code, as amended. All such lines shall be buried to a minimum of 36" below the ground surface and shall be shown on the as-built plans.

Structures shall not be built over flow lines or gathering lines.

Additional Safety and Environmental Requirements.

The drilling and production of oil/gas and accessing the oil/gas well site shall be in compliance with all state, federal, and local environmental regulations.

Oil/gas wells may have a target location or bottom-hole location that is under an environmentally sensitive area when the oil/gas well is drilled directionally from a location outside the environmentally sensitive area.

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.

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.

All storage tanks shall be equipped with a secondary containment system including lining with an impervious material. The secondary containment system shall be of a sufficient height to contain one-and-one-half (1-1/2) times the contents of the largest tank permitted under the town’s ordinances, and buried at least one foot (1') below the surface. Drip pots shall be provided at pump out connection to contain the liquids from the storage tank.

Tank battery facilities shall be equipped with a remote foam line and a lightning arrestor system. Vapor recovery equipment shall be required for tank battery facilities that have an estimated rolling annual aggregate emissions rate of twenty-five (25) tons or greater of total volatile organic hydrocarbons per year per wellhead. Vapor recovery equipment must be operated and maintained in such a way to ensure a ninety-five-percent (95%) recovery efficiency between the internal and external atmospheres of the tank(s).

(G)

Prior to any drilling or other oil and/or gas well operations, a hazardous materials management plan must be on file with the town secretary and approved by the town engineer and fire official.

(H)

Prior to any drilling or other oil and/or gas well operations, an evacuation plan must be on file with the town secretary and approved by the chief of police and the fire official.

(I)

All wells shall be abandoned in accordance with the rules of the railroad commission; however, all well casings shall be cut and removed to a depth of at least ten feet (10') below the surface unless the surface owner submits a written agreement otherwise. Three feet (3') shall be the minimum depth. A copy of the mandatory well casing report required for abandoned wells by the railroad commission shall be submitted to the water service provider that provides services in the area in which a well is located.

(J)

No permit shall be issued for any activity within 20 feet of an abandoned well or in such cases that may interfere with an abandoned well. No structures or wells shall be built or otherwise established over an abandoned well.

(K)

No salt-water disposal wells shall be located within the town.

(L)

Audible Alarms Required.

An automated audible alarm system shall be installed at each well site to provide warnings for a substantial drop in pressure, the release of any gas or oil, or fire. Said audible alarm system must be approved by the fire official prior to any drilling or production operations at the well site.

(M)

Site Cleanup Required.

Cleanup After Well Servicing.

After the well has been completed or plugged and abandoned, the operator shall clean and restore the drill site and/or operation site to the site’s pre-drilling condition (or other condition approved by the commission) and repair all damage to public property caused by such operations within thirty (30) calendar days of the completion of well drilling activities or plugging and abandonment of a well; provided however, that if such damage to public property is deemed by the fire official, chief of police or the town engineer to create an unreasonably dangerous condition, the time period within which such damage must be repaired by the operator may be shortened at the discretion of the town.

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 town all waste materials from any public or private property affected by such spill, leak or malfunction. Cleanup operations must begin immediately. The town also reserves the right to contact the railroad commission in order to facilitate the removal of all waste materials from any property affected by such spill, leak or malfunction. The operator is responsible for all costs and expenses associated with the clean up and removal of all waste materials and the restoration of the site to the condition it was in, prior to any leak, spill or malfunction.

(iii)

Free from Debris.

The property on which a well 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 within a radius of one hundred (100) feet around any tanks, separators, and producing wells.

(iv)

Blowouts.

In the event of the loss of control of any well, the operator shall immediately take all reasonable steps to regain control regardless of any other provision of this article and shall notify the town as soon as practicable. If the town believes that danger to persons and property exists because of 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 town 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 that the town deems necessary to regain control of such well. Upon the filing of a statement of expenses with the county clerk, the town shall then have a first, prior, and valid lien against the property and the interest of the well of all working interest owners to secure payment of any expenditure made by the town pursuant to such action of the town in gaining control of said well. Said lien shall accrue interest at the greater of: (aa) ten percent (10%) per annum, or (bb) the prime rate plus five percent (5%) per annum. Said lien shall be superior to all other liens against the property, including purchase-money security interests, regardless of when such other lien(s) may have arisen, except liens for taxes.

(N)

Emergency Response Plans and Emergency Incident Reporting.

The reporting requirements specified herein are in addition to those required by Section 4.314 of this article.

Prior to any drilling or other oil and/or gas well operations, an emergency response plan must be on file with the town secretary and approved by the chief of police and the fire official. Such plan must be maintained by each gas or oil well owner or operator and shall set forth procedures to minimize the hazards resulting from an emergency. These procedures shall, at a minimum, provide for:

Prompt and effective response to emergencies regarding:

Leaks or releases that can impact public health, safety, and welfare;

Fire or explosions at or in the vicinity of an oil or gas well; or

Natural disasters;

Effective means to notify and communicate required and pertinent information to local fire, police, and public officials during an emergency;

The availability of personnel, equipment, tools, and materials as necessary at the scene of an emergency;

(dd)

Measures to be taken to reduce public exposure to injury and probability of accidental death or dismemberment;

(ee)

Emergency shut down of an oil or gas well and related site;

(ff)

The safe restoration of service and operations following an emergency or incident;

(gg)

A follow-up incident investigation to determine the cause of the incident and require the implementation of corrective measures.

Each oil or gas well owner or operator shall meet annually with the town secretary, fire official and police chief to review emergency response plans. These reviews shall be in accord with U.S. Department of Transportation and railroad commission requirements and the owner or operator will:

Furnish or update a copy of the emergency response plan described in the foregoing subsection (N)(i);

Review the responsibilities of each governmental organization in response to an emergency or incident;

Review the capabilities of the pipeline owner or operator to respond to an emergency or incident;

(dd)

Identify the types of emergencies or incidents that will result in or require contacting the town; and

(ee)

Plan mutual activities that the town and the oil or gas well owner or operator can engage in to minimize risks associated with oil or gas well operation.

At this meeting or as soon as practicable thereafter, the town secretary shall provide the oil or gas well owner or operator with a list of additional contacts that should be made in the event of an oil or gas well emergency or incident. The town will inform the oil or gas well owner or operator of the emergency response groups that will be contacted through 911.

(iii)

Upon discovery of an oil or gas well emergency or incident, the following communications are to be initiated by the affected pipeline owners or operators:

A general description of the emergency or incident;

The location of the emergency or incident;

The name and telephone number of the person reporting the emergency or incident;

(dd)

The name of the oil or gas well owner or operator;

(ee)

Whether or not any hazardous material is involved and identification of the hazardous material so involved;

(ff)

Any actions taken by the operator, owner or the employees or agents thereof in response to the emergency prior to the arrival of emergency personnel; and

(gg)

Any other information as requested by the emergency dispatcher or other such official at the time of reporting the emergency or incident.

(iv)

The oil or gas well owner or operator shall contact any other emergency response groups that are necessary that may not be activated through the county 911 system.

(v)

The oil or gas well owner or operator shall contact the county emergency planning committee (DCEPC) no later than one (1) hour after the discovery of any incident.

(vi)

Within two (2) years of the effective date of the oil or gas well permit and every two (2) years thereafter, the oil or gas well owner or operator shall conduct an on-site, emergency drill that includes, but shall not be limited to, the personnel operating the oil or gas well, local law enforcement personnel, and the fire official or other designated representative from the fire department.

Re-working of a Well.

Re-working of a well to deepen or directional drill an existing well shall be conducted in accordance with the conditions for the applicable specific use permit. The operator shall provide the town a copy of additional railroad commission permits that allow drilling to a deeper depth.

Drilling and production of oil/gas wells shall comply with all federal, state, and local laws applicable to oil/gas well drilling, production and operations.

It shall be unlawful to drill any well, the center of which, at the surface of the ground, is located within two hundred (200) feet to any fresh water well. The measurement shall be in a direct line from the closest well bore to the fresh water well bore. The operator of an oil/gas well shall provide the town with a “pre-drilling” and “post-drilling” water analysis from any fresh water well within five hundred (500) feet of the oil or gas well. For testing purposes, the operator shall install a fresh water well within two hundred (200) feet of the oil/gas well, drilled to a depth of at least 1,500 feet or the depth of known aquifers beneath the well site, whichever depth is greater. Said test well shall be tested on a semi-annual basis (i.e., every six months). Within one hundred eighty (180) days of its completion date, each oil/gas well shall be equipped with a cathodic protection system to protect the production casing from external corrosion. The town may approve an alternative method of protecting the production casing from external corrosion.

(Ordinance 05-19 adopted 5/2/05; Ordinance 10-04, sec. 2, adopted 2/16/10; Ordinance 10-04, sec. 3, adopted 2/16/10; Ordinance 10-04, sec. 4, adopted 2/16/10)

§ 4.309 Planning and Zoning Commission Recommendations for Specific Use Permits.

The town secretary shall forward all applications for the drilling and production of an oil/gas well to the planning and zoning commission for review. The planning and zoning commission shall review each application and shall make recommendations regarding the applications to the town council. A copy of all recommendations shall be provided to the operator. The planning and zoning commission may make recommendations regarding any aspect of the proposed oil/gas well development including, but not limited to, recommendations with respect to the standards set forth in Section 4.308 of this article.

In connection with its review of an application for a specific use permit for the drilling and production of oil/gas wells, the planning and zoning commission may determine that it is necessary to hire a petroleum specialist to assist the commission in reviewing the application. If such a determination is made, the commission will provide the operator a written “scope of work” that the commission proposes for such specialist. The planning and zoning commission and the operator will attempt to agree upon the “scope of work”; however, the decision of the commission shall control. The operator shall be responsible to pay all fees, costs and expenses associated with the retention of and services rendered by the petroleum specialist. If required by the specialist, the operator will provide a retainer; otherwise, the operator will pay for the services of the specialist after they are rendered. All work performed by the specialist shall be itemized on a daily basis (including a description of the work and the amount of time spent), and such itemization shall be provided to the operator with each request for payment.

The planning and zoning commission has the authority to establish checklists, forms and other application processing and review aids, consistent with this article, to aid in the application process and review of applications by the planning and zoning commission.

(Ordinance 05-19 adopted 5/2/05)

§ 4.310 Oil/Gas Well Permit Required.

Any person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall not engage in the drilling and production of oil/gas wells within the corporate limits of the town without first obtaining an oil/gas well permit issued under this article.

When an oil/gas well permit has been issued covering a well, the permit shall constitute authority for drilling, operation, production, gathering of production, maintenance, repair, re-working, testing, site preparation consisting of rigs or tank batteries, plugging and abandonment, and any other activity authorized by this article associated with drilling or production by the operator and their respective employees, agents, and contractors. An oil/gas well permit shall also constitute authority for the construction and use of all facilities reasonably necessary in connection therewith, including gathering lines and discharge lines, by the operator and its respective employees, agents, contractors and subcontractors.

An oil/gas well permit shall not be required for exploration for oil or gas, provided that said exploration does not include the drilling of any well. Exploration of oil/gas means geologic or geophysical activities, including, but not limited to, surveying and seismic exploration, related to the search for oil, gas, or other sub-surface hydrocarbons.

Any well that has been annexed into the town shall be required to meet the requirements of this article and shall apply for an oil/gas well permit on the effective date of the annexation. Any well that has obtained an oil/gas well permit issued by the town prior to the effective date of this article shall provide all information required for oil/gas well permits under this article, unless the information has been previously provided to the town. Oil/gas well permits issued prior to the effective date of this article shall comply with the following requirements:

Standards for oil/gas well drilling and production requirements of Section 4.308.

Insurance and security requirements of Sections 4.311 and 4.312.

Periodic reports as required by Section 4.314 of this article.

Road maintenance agreement unless already provided.

Notice of activity requirements of Section 4.315 of this article.

An oil/gas well permit shall not, however, constitute authority for the re-entering and drilling of an abandoned well. Re-entry and drilling of an abandoned well shall require a new oil/gas well permit.

Applications for oil/gas well permits shall be in writing; shall be on forms provided by the town; shall be signed by the operator; shall include the application fee; and shall include a copy of the applicable specific use permit and oil/gas well development plan; and shall include a copy of all other forms, agreements, plans, and plats required under Sections 4.305 through 4.308 of this article or by state or federal law. Copies of all forms, applications and other documents filed with the railroad commission pertaining to the proposed oil/gas well shall also be filed with the town secretary as part of the application for oil/gas well permit.

(g)

An oil/gas well permit shall not be issued until such time that the operator has filed a vehicle route map indicating the route that will be used by all vehicles associated with drilling and/or production in excess of three (3) tons.

(h)

An oil/gas well permit shall not be issued until such time that the operator and the town have entered into an acceptable road maintenance agreement that includes provisions for a pre-drilling road condition evaluation study and a post-drilling road condition evaluation study. The studies shall be prepared by a professional engineer and shall be paid for by the operator. The purpose of the studies is to evaluate the condition of the vehicle routes used by the operator in order to determine the extent of damage, if any, caused by drilling operations of the operator.

An oil/gas well permit shall not be issued until such time that a hazardous materials management plan has been approved and is on file with the town secretary, as required by this article.

(j)

An oil/gas well permit shall not be issued until such time that an evacuation plan has been approved and is on file with the town secretary, as required by this article.

(k)

An oil/gas well permit shall not be issued until such time that a drainage and erosion control plan has been approved and is on file with the town secretary, as required by this article.

(l)

An oil/gas well permit shall not be issued until such time that an emergency response plan has been approved and is on file with the town secretary, as required by this article.

(m)

Before drilling and setting casing in any well for oil or gas within the corporate limits of the town, the permit applicant must contact the town and the governing body of potable public water supplies and obtain letters stating where the fresh water sands are to [be] found in the area or field in which the well is to be drilled. A copy of the governing body of potable water supplies’ letter must be filed with the town, and the permit applicant must set sufficient surface casing as required. Failure to file such letter shall be unlawful and shall be punishable as such.

(Ordinance 05-19 adopted 5/2/05)

§ 4.311 Insurance and Indemnification.

The operator shall provide or cause to be provided the insurance described below for each well for which an oil/gas well permit is issued, such insurance to continue until the well is abandoned and the site restored. Such coverage shall be approved by the town council.

General Requirements, Indemnification and Express Negligence Provisions.

Each oil/gas well permit issued by the town 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 have or may have, or its successors or assigns may have, or claim to have, against the town, and/or its departments, it 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 an oil/gas well permit and the operator caused by or arising out of, that sequence of events which occur from the operator under the oil/gas well permit and work performed by the operator. The operator shall fully defend, protect, indemnify, and hold harmless the town, and/or 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 town, and/or 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 an oil/gas well permit and the operator agrees to indemnify and hold harmless the town, and/or its departments, and/or 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 town and/or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the town occurring on the drill site or operation site in the course and scope of inspecting and permitting the oil/gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE TOWN OF DOUBLE OAK OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL/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 TOWN OF DOUBLE OAK, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE TOWN OF DOUBLE OAK, TEXAS, ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE TOWN IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE OIL/GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT.”

All policies shall be endorsed to read, “This policy will not be cancelled or non-renewed without 30 days’ advanced written notice to the owner and the town except when this policy is being cancelled for nonpayment of premium, in which case 10 days’ advance written notice is required.”

Liability policies shall be written by carriers licensed to do business in the state and with companies rated A+ or better by A.M. Best, or with non-admitted carriers that have a financial rating comparable to carriers licensed to do business in Texas approved by the town. The A+ rating by A.M. Best shall be maintained for the policy period.

Liability policies shall name as “additional insured” the town and its officials, agents, employees, and volunteers.

Certificates of insurance must be presented to the town evidencing all coverages and endorsements required by this section, and the acceptance of a certificate without the required limits and/or coverages shall not be deemed a waiver of these requirements.

Claims made policies will not be accepted except for excess policies or unless otherwise provided by this article.

Required Insurance Coverages.

Commercial General Liability Insurance.

Coverage should be a minimum combined single limit of $2,000,000 per occurrence for bodily injury and property damage. This coverage must include premises, operations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractors’ protective liability and personal injury.

Environmental Pollution Liability Coverage.

Operator shall purchase and maintain in force insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of that 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 a loss arising from the insured site. Coverage shall be maintained in an amount of at least one million dollars ($2,000,000) per loss, with an annual aggregate of at least ten million dollars ($10,000,000).

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

Automobile Liability Insurance.

Minimum combined single limit of $500,000 per occurrence for bodily injury and property damage. Such coverage shall include owned, non-owned, and hired vehicles.

Worker’s Compensation Insurance.

In addition to the minimum statutory requirements, coverage shall include employer’s liability limits of at least $100,000 for each accident, $100,000 for each employee, and a $500,000 policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the town, its officials, agents, employees, and volunteers for any work performed for the town by the operator.

Excess (or Umbrella) Liability Insurance.

Minimum limit of $10,000,000 covering in excess of the preceding insurance policies.

Control of Well Insurance.

Minimum limit of $5,000,000 per occurrence.

Policy shall cover the cost of controlling a well that is out of control, re-drilling or restoration expenses, seepage and pollution damage. Damage to property in the operator’s care, custody, and control with a sub-limit of $500,000 may be added.

(Ordinance 05-19 adopted 5/2/05)

§ 4.312 Security.

A security instrument that covers each well must be delivered to the town before the issuance of the oil/gas well permit for the well. The instrument must provide that it cannot be cancelled without at least thirty (30) days’ prior written notice to the town and, if the instrument is a performance bond, that the bond cannot be cancelled without at least ten (10) days’ prior written notice for non-payment of premium. The instrument shall secure the obligations of the operator related to the well to:

Repair damage as determined by a professional engineer by comparing the pre-drilling and the post-drilling road condition evaluation studies, excluding ordinary wear and tear, if any, to public streets, including but not limited to bridges, caused by the operator or by the operator’s employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the oil/gas well permit;

Comply with the insurance and security provisions set forth in Section 4.311 of this article and this section; and

Pay any and all fines and penalties imposed upon the operator by the town for any breach of the oil/gas well permit.

The security instrument may be in the form of an irrevocable letter of credit or payment bond issued by a bank or surety authorized to do business in the state and approved by the town. The instrument shall run to the town for the benefit of the town, shall become effective on or before the date the oil/gas well permit is issued, and shall remain in effect until the well is abandoned and the site restored. The security instrument must be provided by a surety company with an A.M. Best A+ rating that is licensed to conduct business in the state and shall be payable to the town. Such surety company shall maintain an A.M. Best A+ rating for the policy period.

A certificate of deposit may be substituted for the letter of credit or payment bond. The certificate shall be issued by a bank in the county, shall be approved by the town, shall be payable to the order of the town to secure the obligations of the operator described above, and shall be pledged to the bank with evidence of delivery provided to the town. Interest on the certificate shall be payable to the operator.

The amount of the security shall be a minimum of $50,000 for any single well. Any operator who initially posted a $50,000 bond, and whose well in the producing stage and all drilling operations have ceased, may submit an application to the town to reduce the existing $50,000 bond.

The security will terminate when the oil/gas well permit is transferred, with respect to the operator-transferor and if the operator-transferee provides replacement security that complies with this section, when the well is abandoned and the site restored, and when the town consents in writing to such termination.

An appeal of the determination of the amount of security required under this article may be made to the planning and zoning commission for recommendation to the town council for final determination of the amount of security.

(Ordinance 05-19 adopted 5/2/05)

§ 4.313 Review of Applications for Oil/Gas Well Permit.

All applications for oil/gas well permits shall be filed with the town secretary who shall immediately forward all applications to the planning and zoning commission for review. Incomplete applications shall be returned to the applicant, in which case the town shall provide a written explanation of the deficiencies if requested by the applicant. The town shall retain a processing fee determined by the town. The town may return any application as incomplete if there is a dispute pending before the railroad commission regarding the determination of the operator. All such applications shall be accompanied with an approved permit issued by the railroad commission.

The planning and zoning commission shall review each application and shall determine whether the application includes all of the information required by this article and all other applicable town ordinances, whether the application is in conformance with the applicable oil/gas well development plat, applicable specific use permit or planned development zoning district and whether the application is in conformance with the insurance and security requirements set forth in Sections 4.311 and 4.312 of this article. The planning and zoning commission shall forward a written report regarding its determination to the town council, with a copy provided to the operator.

The planning and zoning commission shall review the application and shall make recommendations to the town council regarding issuance of the oil/gas well permit. If the town council approves the oil/gas permit application, the town shall issue an oil/gas permit, which shall be forwarded to the operator. If after receiving the application, the planning and zoning commission determines that the application is incomplete or that the application is not in conformance with the applicable oil/gas well development plan and/or the applicable specific use permit, the application shall be returned to the applicant with a written explanation of the deficiencies, if requested by the operator.

The town council may condition the release of the approved oil/gas well permit upon the operator providing the security required by Section 4.312 of this article.

Each oil/gas well permit issued by the town shall:

Identify the name of each well and its operator;

Specify the date on which the town issued each permit;

Specify that drilling must commence on the well covered by the permit within six (6) months of approval by the town otherwise the permit expires. A one-year extension of time may be granted if existing conditions are the same;

Specify that once drilling has commenced, the permit shall continue until the well covered by the permit is abandoned and the site restored or within one year of the approval date of the permit by the town council, whichever comes first;

Incorporate, by reference, the insurance and security requirements set forth in Sections 4.311 and 4.312 of this article;

Incorporate, by reference, the requirement for periodic reports set forth in Section 4.314 of this article and for notice of activities set forth in Section 4.315;

Incorporate the full text of the release of liability provisions set forth in Section 4.311(1) of this article;

(8)

Incorporate, by reference, the conditions of the applicable development plat, site plan or applicable specific use permit;

(9)

Incorporate, by reference, the information contained in the permit application;

(10)

Incorporate, by reference, the applicable rules and regulations of the railroad commission, including the applicable “field rules”;

(11)

Specify that no drilling operations (including the construction of internal private access roads) shall commence until the operator has provided the security required by Section 4.312 of this article;

(12)

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

(13)

Incorporate by reference all other permits and fees required by the fire code.

The decision of the planning and zoning commission to recommend denial of an application for an oil/gas well permit shall be provided to the operator in writing within 10 days after the decision, including an explanation of the basis for the decision, if requested by the operator. The town council shall make the final decision regarding approval of the oil/gas well permit.

(g)

If a denial of an oil/gas well permit is denied by the town council, nothing herein contained shall prevent a new permit application from being submitted to the town for the same well.

(h)

Nothing herein contained shall prevent a new permit application from being submitted to the town for the same well.

(Ordinance 05-19 adopted 5/2/05)

§ 4.314 Periodic Reports.

The operator shall notify the town secretary of any changes to the following information immediately, within one business day after the change occurs:

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

The name, address, and 24-hour phone number of the person(s) with supervisory authority over drilling or operations activities;

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

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

The operator shall provide a copy of any “incident reports” or written complaints submitted to the railroad commission or any other state or federal agency within 30 days after the operator has notice of the existence of such reports or complaints.

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

(Ordinance 05-19 adopted 5/2/05)

§ 4.315 Notice of Activities.

Any person who intends to re-work a well using a drilling or workover rig, to fracture stimulate a well after initial completion, or to conduct seismic exploration involving explosive charges shall give written notice to the town at least 10 days before the activities begin. The notice shall identify where the activities will be conducted and shall describe the activities in reasonable detail, including but not limited to the duration of the activities and the time of day they will be conducted. The notice must also provide the address and 24-hour phone number of the person conducting the activities. The person conducting the activities will post a sign on the property giving the public notice of the activities, including the name, address, and 24-hour phone number of the person conducting the activities. If the town determines that an inspection by the town is necessary, the operator will pay the town’s applicable fee for the inspection.

(Ordinance 05-19 adopted 5/2/05)

§ 4.316 Amended Oil/Gas Well Permits.

An operator shall submit an application to the town to amend an existing oil/gas well permit to commence drilling from a new drill site that is not shown on, or incorporated by reference as part of, the existing permit, to relocate a drill site or operation site that is shown on, or incorporated by reference as part of, the existing permit, or to otherwise amend the existing permit.

Applications for amended oil/gas well permits shall be in writing, shall be on forms provided by the town, shall be signed by the operator, and shall include the following:

The application fee as set by the town’s adopted fee schedule;

A description of the proposed amendments;

Any changes to the information submitted with the application for the existing oil/gas well permit, if such information has not previously been provided to the town;

Such additional information as is reasonably required by the town to demonstrate compliance with the applicable development plan, site plan, applicable specific use permit or planned development zoning district; and

Such additional information as is reasonably required by the town to prevent imminent destruction of property or injury to persons.

All applications for amended oil/gas well permits shall be filed with the town secretary who shall then immediately forward said amended application to the planning and zoning commission for review. Incomplete applications may be returned to the applicant, in which case the town shall provide a written explanation of the deficiencies; however, the town may retain a processing fee as determined by the town. The town may return any application as incomplete if there is a dispute pending before the railroad commission regarding the determination of the operator.

If the activities proposed by the amendment are not materially different from the activities covered by the existing oil/gas well permit, and if the proposed activities are in conformance with the applicable development plan, site plan, and applicable specific use permit, then the planning and zoning commission shall recommend to the town council appropriate action within 30 days. The town council shall then have 30 days to take action.

If the activities proposed by the amendment are materially different from the activities covered by the existing oil/gas well permit, and if the proposed activities are in conformance with the applicable development plat, site plan, or the applicable specific use permit, then the planning and zoning commission shall approve the amendment within 30 days after the application is filed. If, however, the activities proposed by the amendment are materially different and, in the judgment of the planning and zoning commission, might create a risk of imminent destruction of property or injury to persons that was not associated with the activities covered by the existing permit or that was not otherwise taken into consideration by the existing permit, the planning and zoning commission may require the amendment to be processed as a new oil/gas well permit application.

The failure of the planning and zoning commission to review and issue an amended oil/gas well permit within a reasonable specified time limit shall not cause the application for the amended permit to be deemed approved.

(g)

The decision of the planning and zoning commission to deny an amendment to an oil/gas well permit shall be provided to the operator in writing within 10 days after the decision, including an explanation of the basis for the decision. The operator may appeal such denial to the commission and only upon a second denial appeal to the town council.

(Ordinance 05-19 adopted 5/2/05)

§ 4.317 Transfer of Oil/Gas Well Permits.

An oil/gas well permit may be transferred by the operator without the consent of the town council if the transfer is in writing, signed by both parties, if the transferee agrees to be bound by the terms and conditions of the transferred permit, if all information previously provided to the town as part of the application for the transferred permit is updated to reflect any changes, and if the transferee provides the insurance and security required by Sections 4.311 and 4.312 of this article. The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the town. The transfer shall not relieve the transferor from any liability to the town arising out of any activities conducted prior to the transfer.

(Ordinance 05-19 adopted 5/2/05)

§ 4.318 Adoption of Oil and Gas Pipeline Standards.

The installation, construction, reconstruction, use, operation, maintenance, repair and removal of any and all pipelines, conduit and lines for the conveyance, transmission and delivery of oil and gas within or through the town shall be in conformity with the oil and gas pipeline standards hereby adopted by the town, as such may be amended. A true and correct copy of the oil and gas pipeline standards and any and all amendments thereto shall be maintained in the offices of the town secretary and the building official. This section and the standards adopted herein shall not apply to pipes, conduit or lines used for the transmission of natural gas (liquefied petroleum gas – LPG) for domestic and household consumption where such transmission of LPG is directly to households.

(Ordinance 05-19 adopted 5/2/05)

§ 4.319 Remedies of the Town.

If an operator or its officers, employees, agents, contractors, subcontractors or representatives fails to comply with any requirement of a oil/gas well permit, including any requirement incorporated by reference as part of the permit, the town shall give written notice to the operator specifying the nature of the alleged failure and giving the operator a reasonable time to cure, taking into consideration the nature and extent of the alleged 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 14 days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the operator’s failure to provide periodic reports. The town may issue a stop work order under the fire code or under circumstances or conditions deemed by the fire official or chief of police to pose a serious threat to public safety.

If the operator does not cure the alleged failure within the time specified by the town, the town may notify the railroad commission and request that the railroad commission take appropriate action, with a copy of such notice provided to the operator, and the town may pursue any other remedy available under this article or other law.

If the operator does not cure the alleged failure within the time specified by the town, the town may, in addition to any other remedy:

Suspend the oil/gas well permit until the alleged failure is cured; or

If the operator fails to initiate and diligently pursue a cure, revoke the oil/gas well permit.

A notice of suspension or revocation of an oil/gas well permit shall be provided to the operator in writing at least seven (7) days before such suspension or revocation takes effect. The operator can appeal the decision to suspend or revoke the oil/gas well permit to the town council.

If an oil/gas well permit is revoked, the operator may submit an application for a new oil/gas well permit for the same well.

(Ordinance 05-19 adopted 5/2/05)

§ 4.320 Enforcement, Right of Entry.

The building official is authorized and directed to enforce this article and the provisions of any oil/gas well permit. Whenever necessary to enforce any provision of this article or an oil/gas well permit, or whenever there is reasonable cause to believe there has been a violation of this article or an oil/gas well permit, the building official, or his designated representative, may enter upon any property covered by this article or an oil/gas well permit at any reasonable time to inspect or perform any duty imposed by this article. If entry is refused, the town shall have recourse to every remedy provided by law and equity to gain entry. Such refusal shall constitute an offense under the provisions of this article.

(Ordinance 05-19 adopted 5/2/05)

§ 4.321 Penalty.

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

Engage in any activity not permitted by the terms of an oil/gas well permit or an oil and gas pipeline permit issued under this article;

Fail to comply with any conditions set forth in an oil/gas well permit or an oil and gas pipeline permit issued under this article; or

Violate any provision or requirement set forth under this article.

Any violation of this article shall be punished by a fine in accordance with the general penalty provision found in Section 1.109 of this code per day, subject to applicable state law. Each day a violation occurs constitutes a separate violation.