City of Kilgore, TX Oil and Gas Wells

It shall be unlawful for any person to use any part of the property or land of the city or any part of any street, alley, park, avenue, lane, or highway within the city in connection with the development of a well for oil or gas, as that term is defined in section 157, or in connection with the operation of oil or gas leases or wells as that term is defined in section 157, unless such person has entered into a contract with the city agreeing to indemnify the city for liability imposed by law on the city for damage or loss to property and for personal injuries or death arising out of such operations on such property, lands, streets, alleys, parks, avenues, lanes or highways.

It shall be unlawful for any person to use any part of the property or land of the city or any part of any street, alley, park, avenue, lane or highway of the city in connection with such property, land, street, alley, park, avenue, lane or highway without a policy of public liability insurance and property damage insurance to be issued by a solvent insurance company authorized to do business in the state, and to be approved by the city clerk.

The amount of such insurance policy for liability for bodily injury or death of one (1) person shall not be less than one million dollars ($1,000,000.00) and for any one (1) accident not less than one million dollars ($1,000,000.00) and for damage to property of others shall not be less than one million dollars ($1,000,000.00).

The terms and conditions of such policy shall be such as to insure such person against loss by liability imposed by law by reason of any accidental personal injury or death to any person other than the insured or his employees, or by reason of any loss or damage to property of any person other than the insured or his employees. Such policy shall provide for coverage of the assumed risk of the city provided for in this section.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 160 Drilling Oil And Gas Wells.

The following requirements shall apply to developing any well for oil and gas within the city limits of Kilgore, Texas.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 161 Distance from buildings.

The development of any well for oil and gas for the purpose of exploring for and producing oil and gas is prohibited within the city boundaries within four hundred (400) feet of:

Any building that is residential, commercial, or industrial; occupied or unoccupied; or owned by the city, by Gregg or Rusk County, or by the State of Texas;

Any public or private school, and;

A public-owned park, a public-owned playground, or a public-owned ball park.

A permit for the development of any well for oil and gas within four hundred (400) feet of any of the above (subsections (1)–(3)) may be issued by the city if the application for such drilling permit shall include waivers by the owners of all such properties and/or buildings within the prohibited area.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 162 Waiver form.

Any form used to obtain written permission of the owner of any building as required herein shall contain, as a minimum, the following information:

The name and address of the owner;

A clear and unequivocal statement that the owner agrees to the application for the permitting to develop any well for oil or gas as reflected by the duly acknowledged signature of the owner appearing on said form;

A clear and unequivocal statement that the owner may refuse to agree to the permitting of the well;

A statement of notice to the owner that a permit to develop any well for oil or gas will not be granted until such time as the applicant complies with all the terms and provisions of this Chapter.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 163 Application, information.

Any person desiring to develop any well for oil or gas within the city shall first make application for a permit therefore to the city clerk, which application shall set forth in writing the following facts:

The date of such application;

The name of the applicant;

The address of the applicant;

The proposed site of the well, including the name of the fee owner; the name of the lease owner; and a brief description of the land;

(5)

The type of derrick desired to be used (API recommended standards for depth to be drilled);

(6)

The name of the operator;

(7)

An oil spill emergency plan, a copy of which will be placed in the office of the emergency management coordinator;

(8)

A materials safety data sheet (that includes any chemical at the location) to be placed in the office of the fire chief;

(9)

Application to, or permit from, the Texas Railroad Commission;

(10)

Any waiver shall be supported by a scaled drawing of the proposed distance and an explanation of the need for such waiver.

(11)

A statement of the type of steel and/or lined, earthen reserve/drilling mud pit(s) to be used and any request for additional capacity.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 164 Placing application on record.

The application for a permit required by this chapter shall be placed and kept on record by the city clerk as a part of the public records of the city.

The city clerk shall provide copies of the permit application to the fire chief (who is responsible for all sections of this chapter, unless otherwise specified), to the chief building official, and to the director of planning (who will assure compliance with the special use permit regulations in this code).

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 165 Fees; redrilling operations.

Any applicant for a permit required by the chapter shall pay to the city the sum as provided in appendix B to this code in advance for a permit to develop any well for oil and gas or redrilling for each well to be developed or redrilled, and any drilling permit granted in violation of this section shall be void.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 166 Form, executing; binding effect.

When the applicant for a permit to develop any well for oil and gas has complied with the provisions of this chapter, the city clerk shall furnish a printed form of the permit which shall be in the nature of a contract or franchise from the city to the applicant.

Such permit shall state therein the substantial regulative provisions of this chapter and that the applicant agrees to comply with such contract or franchise. Such instrument shall be signed by the applicant and the mayor or the mayor pro tem in the name of the city, and shall be executed in duplicate, one (1) copy to be retained by the city and the other copy delivered to the applicant which shall constitute his drilling permit, when so signed and executed, shall be binding upon the applicant in every respect.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 167 Granting or denial.

Full power and authority for the granting or refusal of a permit to develop any well for oil and gas shall be vested in the city council, and if the city council is of the opinion that the applicant has not fully complied with the requirements of this chapter, it shall decline to issue a permit.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 168 Refusal or withdrawal of permit; processing fee.

If the permit for the well be refused, or if the applicant notifies the city council in writing that he does not elect to accept the permit as tendered and wishes to withdraw his application, or if the security of the applicant be not approved and the applicant notifies the city council in writing that he wishes to withdraw his application, then upon the happening of said events the fee filed with the application shall be returned to the applicant, except that there shall be retained therefrom by the City of Kilgore an amount as provided in appendix B to this code as a processing fee.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 169 Termination for failure to commence operation.

If the development of any oil or gas well operations are not begun within one hundred eighty (180) days after the granting of a permit as required by this article, the permit shall become null and void; provided, such permit may be extended by the city clerk by a written extension before the termination of such one-hundred-eighty-day period, upon a proper written excuse for delay in commencing the drilling operations.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 170 Revocation.

The city council may revoke any permit issued pursuant to this article, upon proof and evidence that any provision of this chapter is being violated by the permittee. If a permit is revoked, the permittee may make direct application to the city council for a reissuance of such permit at a regular meeting or at any special or called meeting thereof, and the action of the commission thereon shall be final.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 171 Bond or other security required.

In the event a permit is issued by the city council under the terms of this chapter for the development of any oil or gas well or redrilling of a well, earth/dirt work may be commenced but no oilfield/drilling/rig equipment may be moved onto the site until the permittee shall file with the city clerk sufficient security in the form of cash, certificate of deposit, a bond, or a letter of credit in such principal sum as determined by the commission, but not to be less than two hundred thousand dollars ($200,000.00).

New security.

If at any time the city council shall deem any permittee’s security to be insufficient for any reason, it may require the permittee to file a new security.

Any security required under the provisions of this section will be conditioned on the penalty of forfeiture to the City of Kilgore on the following:

That permittee will comply with all the terms and conditions of this chapter.

That permittee will promptly pay all fines, penalties, or other assessments imposed upon permittee by reason of his breach of any of the terms, provisions, and conditions of this chapter.

That permittee will remedy any and all damage to streets, curbs, gutters, water lines, fire hydrants, and other property of the city, occasioned in any manner by permittee.

Maintenance of the drill site shall be according to the provisions of Article II [sic], section 173.

(5)

That permittee will indemnify and hold harmless the city from any and all liability growing out of or attributable to the granting of this permit or any of permittee’s actions with respect to the development of any well for oil and gas.

Reduction in principal amount.

If after completion of a well, the permittee has complied with all of the provisions of this chapter, such as to removing derrick, clearing premises, etc., he may apply to the city council to have the security reduced to a sum of not less than ten thousand dollars ($10,000.00) for the remainder of the time the well produces without reworking. During reworking operations, the amount of the security shall be increased to the original amount of not less than two hundred thousand [dollars] ($200,000.00)[.]

Violations of conditions.

It shall be unlawful for the principal of any security filed in accord with this section to violate any condition of such security.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 172 Insurance required prior to drilling.

In addition to the security required by this division, each permittee, prior to the issuance of the permit and commencement of actual development of any well for oil and gas operations shall file with the city clerk a certificate or certificates of insurance showing that the permittee has, in full force and effect, a policy or policies of standard comprehensive public liability covering bodily injuries and property damage by an insurance company authorized to do business within the State of Texas, naming the permittee and the city. Such policy or policies, in the aggregate, shall provide for the following minimum coverage:

For bodily injury or death, one million dollars ($1,000,000.00) as to any one (1) person and three million dollars ($3,000,000.00) as to any one (1) accident.

For public liability for damage to property of others, one million dollars ($1,000,000.00).

In addition, prior to the issuance of the permit, permittee shall file with the city clerk a certificate or certificates of insurance showing that the permittee has in full force and effect a policy or policies of blow-out or cost of well control insurance in an amount not less than one million dollars ($1,000,000.00) for each well, subject to a deductible amount of not more than one hundred thousand dollars ($100,000.00).

Cancellation.

Such insurance policy or policies shall not be materially altered, modified, or canceled without written notice from the insurance carrier to the city clerk at least thirty (30) days prior to the effective date of such cancellation.

The city shall be named as “an additional named insured”. In the event the insurance policy or policies are materially altered, modified, or canceled, the permit granted shall be terminated and the permittee’s rights to operate under the permit shall cease until the permittee files the appropriate insurance required herein.

It shall be unlawful for any person to develop any well for oil and gas within the city unless such person has entered into a contract agreeing to defend and hold harmless the city and its officers, agents and employees, from and against all damages, claims, losses, demands, suits, judgments and costs, including reasonable attorneys’ fees and expenses, arising out of, or resulting from, the drilling operations caused in whole or in part by any negligent act or omission of such person, or his contractor or subcontractor, or anyone directly or indirectly employed by any one of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by the party hereby indemnified.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 173 Maintenance of drill site and roads.

That permittee will promptly clear the premises of all litter, trash, waste, and other substances used, allowed or occurring in the drilling operations and shall grade, level, and restore said property to the reasonably same surface condition, as nearly as practicable, as existing when operations for developing any well for oil and gas were first commenced, or as otherwise directed by the chief building inspector.

That prior to commencing drilling operations, the fire chief and/or the fire marshal shall notify the chief building inspector, who shall photograph the drilling site, streets surrounding the site, and any public utilities appurtenances for “before” photographs.

In the case of the completion of a producing well or a nonproducing well, or exploration, the chief building inspector shall be responsible for photographing the site, surrounding streets, and nearby utilities appurtenances for “after” pictures to assess any changes, as far as damages, in public property or the area of the well site.

The permittee shall be responsible for any damages to the above during any drilling operations and shall begin to make the repairs prescribed by the chief building inspector within thirty (30) days of the completion of a producing or nonproducing well. Repairs shall be completed by the end of an additional thirty (30) days. All street repairs shall be made to the satisfaction of the street superintendent.

The drill site and all roads and drives providing vehicular ingress and egress to the well site shall be maintained in such a manner as to prevent dirt, dust, or other similar materials from such roads and well site from being carried in or deposited by the elements into the air or upon any public street, sidewalk, or other public property or upon the property of another party.

If said well is completed as a producing well and actual production commences, permittee shall construct and maintain a private road or roads (at either the same location as the original access road or at a new location) sufficient to provide vehicular ingress and egress to the well site from a location along a public road, the entrance to such public road to be approved by the chief building inspector and the street superintendent.

Said private road, at a minimum, shall be constructed of an all-weather, oil-base material, maintained free of dust, dirt, or mud, and in such a manner as to prevent the deposit therefrom of dirt, dust, or other similar materials on, along, or upon any public street, sidewalk, or other public property, or upon the property of a third party. That portion of the private roadway located within the rights-of-way of a public street of the City of Kilgore shall comply in every respect to the construction standards for driveways of the City of Kilgore. Such roadway shall be so maintained until said well is plugged and abandoned.

If said well is completed as a producing well, but no actual production commences within a ninety-day period of the completion, permittee will grade, level, and restore said property to the reasonable same surface condition (weather permitting), as nearly as practicable as existing when operations for the drilling of the well were first commenced, or as otherwise directed by the chief building inspector. Upon written notice by the permittee to the building inspector, the permittee may present good cause as to why the well had not been put in production. If good cause is shown, the city council, at its next regularly scheduled meeting may grant a thirty-day extension. After production is commenced, said private road shall be constructed and maintained in the manner set forth in subsection (d) of this section.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 174 Operating Oil And Gas Wells.

The following regulations shall apply to operating oil and gas wells.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 175 Operating wells.

For the purpose of this section, the term “operate oil or gas leases or wells” shall include incidental cementing, cleaning out wells and tubing, repairing equipment, putting raw products into containers or pipelines for transmission, transmitting raw products from the wells to the pipeline, operating pumping equipment, and operations incidental to such enumerated operations.

Insurance.

It shall be unlawful for any person to operate oil or gas leases or wells within the city, unless such operation is covered by a policy of public liability insurance and property damage insurance issued by a solvent insurance company authorized to do business in the state, and to be approved by the city clerk. The amount of such insurance policy for liability for bodily injury or death of one (1) person shall not be less than five hundred thousand dollars ($500,000.00) and for any one (1) accident not less than one million dollars ($1,000,000.00) and for damage to property of others shall not be less than five hundred thousand dollars ($500,000.00). The terms and conditions of such policy shall be such as to insure such person against loss by liability imposed by law by reason of any accidental personal injury or death to any person other than the insured or his employees, or by reason of loss or damage to property of any person other than the insured or his employees.

For a completed well, the permittee shall furnish a Texas Railroad Commission P-4.

It shall be unlawful for any person to operate any well for oil and gas within the city unless such person has entered into a contract agreeing to defend and hold harmless the city and its officers, agents and employees, from and against all damages, claims, losses, demands, suits, judgments and costs, including reasonable attorneys’ fees and expenses, arising out of or resulting from the operator’s operations caused in whole or in part by any negligent act or omission of such person, or his contractor or subcontractor, or anyone directly or indirectly employed by any one (1) of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by the party hereby indemnified.

An operator within the city will remedy any and all damage to streets, curbs, gutters, water lines, fire hydrants, and other property of the city, occasioned in any manner by the operator.

(f)

The premises of any oil or gas well, storage tanks, tank batteries or related appurtenances, shall be kept in a clean and sanitary condition, free from rubbish of every character, to the satisfaction of the city health officer, at all times during the drilling operation and as long thereafter as oil and gas is being produced therefrom. An operator will promptly clear all premises of all litter, trash, waste, and other substances used, allowed or occurring in the operations. Any operator within the city shall keep the well site, including storage tanks, tank batteries and related appurtenances, clear of all weeds/grass over twelve (12) inches in compliance with the City of Kilgore Texas adopted International Property Maintenance Code.

All above ground equipment (storage tanks, dog houses, separators, pumpjacks, etc) are required to be painted. The color of paint and/or design on the pumpjack or tanks is hereby left to the discretion of the lease operator or owner.

(A)

Anytime that the majority (approx 50%) of the paint on the equipment has become damaged due to rust, flaking, peeling or discoloration, the equipment must be repainted.

(B)

The use of murals, themes or other designs are highly encouraged, but not required.

All painting of above ground equipment must follow the City of Kilgore Development Code, [Article IV.], Division B "Sign Regulations."

The City of Kilgore Fire Marshal or his designee shall have authority to enforce this subsection of the Oil and Gas Ordinance.

(Ordinance 1492 adopted 2/9/11; Ordinance 1577 adopted 5/14/13)

§ 176 Motive power for post-drilling operations.

Motive power for all operations after completion of drilling operations shall be by electricity or properly muffled, treated, odorized gas; gasoline; or diesel engines. The mufflers shall be approved by the chief building inspector prior to their use.

(Ordinance 1492 adopted 2/9/11)

§ 177 Reworking/Redrilling.

The following shall apply to reworking and redrilling wells.

(Ordinance 1492 adopted 2/9/11)

§ 178 Redrilling or Reworking - Permit and fees.

In case of any wells that have previously been developed for any oil and gas or as injection wells within the city which the operator desires to redrill, deepen, rework, recomplete, or plug back, or convert from or to an injection well or from or to a production well in any manner, and for which the Texas Railroad Commission requires a permit, before commencing such redrilling, deepening, reworking, recompleting, or back operation, the operator shall obtain a permit from the city in accordance with the provisions of this chapter and shall pay to the city, in advance, the sum as provided in appendix B to this code for a permit for each well. The operator shall furnish a materials safety data sheet (that includes any chemical at the location) to be filed with the fire chief. This shall include chemicals used by any subcontractor who will be working on the well. In case of any well already drilled for which the Texas Railroad Commission does not require a permit, no permit fee for such work will be charged by the city.

(Ordinance 1492 adopted 2/9/11)

§ 179 Form, executing; binding effect.

When the applicant for a redrilling or reworking permit has complied with the provisions of this chapter, the city clerk shall furnish a printed form of the permit which shall be in the nature of a contract or franchise from the city to the applicant. Such permit shall state therein the substantial regulative provisions of this chapter and that the applicant agrees to comply with such contract or franchise. Such instrument shall be signed by the applicant and the mayor or the mayor pro tem in the name of the city, and shall be executed in duplicate, one (1) copy to be retained by the city and the other copy delivered to the applicant which shall constitute his drilling permit.

The provisions of such redrilling or reworking permit, when so signed and executed, shall be binding upon the applicant in every respect. The provisions of this section (Security required) section 171 shall apply to an applicant granted a redrilling or reworking permit.

(Ordinance 1492 adopted 2/9/11)

§ 180 Granting or denial.

Full power and authority for the granting or refusal of a redrilling or reworking permit shall be vested in the city council and if the city council is of the opinion that the applicant has not fully complied with the requirements of this chapter, it shall decline to issue a permit.

(Ordinance 1492 adopted 2/9/11)

§ 181 Refusal or withdrawal of permit; processing fee.

If the permit for the redrilling or reworking of a well be refused, or if the applicant notifies the city council in writing that he does not elect to accept the permit as tendered and wishes to withdraw his application, or if the security of the applicant be not approved and the applicant notifies the city council in writing that he wishes to withdraw his application, then upon the happening of said events, the fee filed with the application shall be returned to the applicant, except that there shall be retained therefrom by the City of Kilgore as provided in appendix B to this code as a processing fee.

(Ordinance 1492 adopted 2/9/11)

§ 182 Plugging And Abandoning Oil And Gas Wells.

The following shall apply to plugging and abandoning oil and gas wells.

(Ordinance 1492 adopted 2/9/11)

§ 183 Plugging wells.

Plugging of wells shall be according to the specifications of the Texas Railroad Commission, Texas Water Commission, and any other state or federal regulatory body or agency having jurisdiction over the operations and the plugging of oil and gas production wells.

No producing oil or gas well shall be permanently plugged unless a permit is first obtained from the fire chief or fire marshal. The application for such permit shall give the name and address of the applicant, the location of the well to be plugged, and the time and place of such plugging and be accompanied by an application fee as provided in appendix B to this code. The plugging shall be done in the presence of the fire marshal or some person designated by him, and notice of intention to do such plugging shall be given to the fire marshal not less than three (3) days prior to such plugging.

(Ordinance 1492 adopted 2/9/11)

§ 184 Abandonment of wells.

The abandonment of wells shall be according to the regulations of the Texas Railroad Commission.

(Ordinance 1492 adopted 2/9/11)

§ 185 Restoration of lease premises upon abandonment.

The owner or operator of any oil and gas lease, upon abandonment of any well, shall within ninety (90) days from the date of such well abandonment remove all concrete pumping unit foundations; unburied flow lines; and all machinery, equipment and tanks or other apparatus used in connection with the production of oil and gas or the operation of such lease. Additionally, belowground flow lines shall be flushed with fresh water. This requirement also shall apply to temporary abandonments.

The operator shall remedy any and all damage to streets, curbs, gutters, water lines, fire hydrants, and other property of the city, occasioned in any manner by the operator in the abandonment of said well.

The operator will clear the premises of all litter, trash, waste, and other substances used, allowed, or occurring in the abandonment operations and shall after abandonment, grade, level, and restore said property to the reasonably same surface condition, as nearly as practicable, as existing when operations for the drilling of the well were first commenced, or as otherwise directed by the chief building inspector.

(Ordinance 1492 adopted 2/9/11)

§ 186 Safety Measures.

The following safety measure shall apply to development of any well for oil and gas.

(Ordinance 1492 adopted 2/9/11)

§ 187 Well identification.

All well locations shall bear a sign with a local emergency telephone number, which shall also be current and filed at the fire department. The sign shall also include the name of the current operator of the lease or well and the lease name. Any storage tanks, tank batteries and related appurtenances not enclosed by the same fence as the well site, must also contain a separate sign with the above-mentioned information. All buried flow lines shall have identification signs. The City of Kilgore Fire Marshal or his designee shall have the authority to enforce this section of this division.

(Ordinance 1520 adopted 10/25/11)

§ 188 Watchman.

From the start of the erection of a derrick, mast, or gin-pole until the well is abandoned and plugged or completed as a producer and enclosed with a fence, as provided in this chapter, the permittee shall keep a watchman on duty on the premises at all times. It shall not be necessary to keep an extra watchman on duty on the premises when other workmen of permittee are on the premises.

(Ordinance 1492 adopted 2/9/11)

§ 189 Equipment in streets.

No person engaged in developing any well for oil and gas or operating a well for oil or gas shall permit or allow any surface equipment or property to extend into the streets, alleys, or rights-of-way of the city so that it will, in reason, interfere with the regular flow of traffic.

When excessive trucking is required, the City of Kilgore Chief of Police shall be notified.

(Ordinance 1492 adopted 2/9/11)

§ 190 Excavations, lines across streets.

No person shall make any excavation or construct any line for the conveyance of fuel, water, or minerals, on, under, and through the streets without the express permission of the city, in writing, and then only in strict compliance with the ordinances of the city.

(Ordinance 1492 adopted 2/9/11)

§ 191 Escaping gas.

No person engaged in developing any well for oil and gas and operation of an oil or gas well within the city shall permit unburned gas to escape into the air or maintain a flare for the burning of such gas at a lesser distance than forty (40) feet above the surface of the ground. Said flare shall be permitted only for one (1) forty-five (45) consecutive calendar day period.

Any such flare or vent line shall be equipped with an automatic leak detection system connected to a site alarm, an automatic shutdown device, a flame arrester, an automatic flare lighter, flare stream fluid removal equipment, and a vapor recovery unit.

(Ordinance 1492 adopted 2/9/11)

§ 192 Storage tanks.

Any storage tank shall be in compliance with the NPFA-30 (Tank Storage) although no storage tank may be constructed within fifty (50) feet of any building or street.

(Ordinance 1492 adopted 2/9/11)

§ 193 Fire-extinguishing equipment.

It shall be unlawful to develop any well for oil and gas or to operate a well for oil or gas without, at all times, keeping on the premises and maintaining fire extinguishers of a type suitable for the fighting of oil and gas fires. Such equipment shall meet with the approval of the fire chief and/or fire marshal of the city.

(Ordinance 1492 adopted 2/9/11)

§ 194 Escape, etc., of surface oil.

It shall be unlawful for any person developing any well for oil and gas operating, drilling, cleaning, repairing, or equipping any oil well within the city to allow the escape, spilling, overflow, or accumulation, in any manner whatsoever, of any surplus of surface oil in any amount. Wells being swabbed or unloaded to the atmosphere shall be unloaded through a vessel capable of holding the fluids.

(Ordinance 1492 adopted 2/9/11)

§ 195 Spilling, etc., of crude oil by railway loaders.

It shall be unlawful for any person engaged in the operation of a railway loading rack through which crude oil or petroleum products are transferred from a pipeline, tank, or other receptacle to railway cars, trucks, or other receptacles, or any person making use of such loading rack facilities, to allow the spilling, overflow, leakage, or accumulation of any crude oil or other flammable/inflammable petroleum products in or about any part of such loading rack equipment or about the premises thereof, in such any amount,.

(Ordinance 1492 adopted 2/9/11)

§ 196 Accumulations near tank.

It shall be unlawful for any person to allow the accumulation, leakage, or deposit, in any manner whatsoever, of crude oil or other flammable/inflammable petroleum products in or about any lease tank, storage tank, fire wall, or other place used in the storage or transportation of oil, in such any amount.

(Ordinance 1492 adopted 2/9/11)

§ 197 Drainage into ditches.

It shall be unlawful for any person owning or operating any oil well, oil lease, oil tank, or storage facility, oil loading rack, or other facility used in the production, storage, transportation, sale or shipment of crude oil or petroleum products to allow crude oil, fuel oil, salt water, or other flammable/inflammable products to drain out of or pass through any open surface ditch, trough, or other exposed surface conduit.

(Ordinance 1492 adopted 2/9/11)

§ 198 Continuing use when hazardous.

It shall be unlawful for any person owning or operating any oil well, oil lease, oil tank, or storage facility or loading rack facility, to maintain, use, or continue to use or operate, in any manner whatsoever, such oil well, oil lease, oil tank, or storage facility or loading rack facility, in, on, or about which there may be an accumulation or deposit of surface oil or any other flammable/inflammable petroleum products in any amount.

(Ordinance 1492 adopted 2/9/11)

§ 199 Definition of “fire hazard”; inspection; abatement.

If any oil well, oil tank, or storage facility, oil loading rack, or other facility mentioned in this chapter is located within four hundred (400) feet of any building or within such distance of a producing oil well, the accumulation, spillage, leakage, or deposit of any amount of crude oil or other flammable petroleum products shall be deemed the creation and maintenance of a “fire hazard” as referred to in this section.

The fire chief, fire marshal, or any other authorized officer of the city, shall be authorized to enter upon the premises of any person drilling or operating an oil well within the city, or maintaining or using any oil tank, pipeline, loading rack, or other facility named in this section through to make a thorough inspection of such premises and property with reference to the accumulation or deposit of crude oil or flammable/inflammable petroleum products, and the fire chief, the fire marshal, or his authorized officer or representative shall be directed and instructed to make such inspection at reasonable times for such purpose. If the fire chief, fire marshal, or his authorized representative finds an accumulation or deposit of crude oil or flammable/inflammable petroleum or other facility mentioned in this chapter in such an amount as to create a fire hazard as defined in subsection (a), he shall notify the person so owning, maintaining, or in any manner using such facilities to thoroughly remove the surplus accumulation or deposit of crude oil or flammable/inflammable petroleum products within three (3) days after such inspection. For the purpose of this section, it shall be sufficient for the fire chief, fire marshal, or his authorized representative to give such notice to any person employed or working on or about the affected well, lease, storage tank, pipeline, loading racks, or other facility, or the person in charge of or supervising the same at the time such inspection is made.

(Ordinance 1492 adopted 2/9/11)

§ 200 Derrick - Quality.

The derrick used shall be API recommended standards for the depth to be drilled. A derrick of standard quality and/or proportion shall be used. Industry and OSHA standards shall be adhered to in the use of any such derrick.

(Ordinance 1492 adopted 2/9/11)

§ 201 Derrick and rig.

It shall be unlawful for any person to operate or permit to be operated in connection with the development of any well for oil and gas, completing, equipping, operating, producing, maintaining, or abandoning of a well, any engine, compressor, or motor-driven machinery of any type which creates a sound level greater than seventy-five (75) dB when measured at a distance of four hundred (400) feet from the engine.

Sound level measurement shall be made with a sound level meter conforming as a minimum to the requirement of American National Standards Institute S1.4-1971 Type 2 or its successor publication and be set to an A-weighted response. However, the restriction of maximum sound level shall not apply to fracturing operations in connection with a well when such operations are conducted during the hours of 7:00 a.m. and 7:00 p.m.

No drilling rig or derrick except a regulation production pumping unit shall be permitted to stand or remain on the premises of any well for a period longer than thirty (30) days after the completion of the well in connection with which the rig is used. Upon written notice by the permittee to the city clerk, the permittee may present good cause as to why a production unit could not be removed within thirty (30) days of completion of the well. The city council at its next regularly scheduled meeting shall consider such request and may grant thirty (30) days extension.

No timbers, planks or other wooden objects shall be allowed to remain on or in a derrick, except for such time as such wooden objects are actually in use for working on a well or derrick, for a continuous period of time; and on the cessation of the use of such wooden objects for any period of time, they shall be immediately removed. The owner and operator of any oil well shall be responsible for seeing that this section is strictly complied with, and the persons who actually place such objects on or in a derrick, as well as their employers, shall likewise be equally responsible for seeing that this section is strictly complied with.

(Ordinance 1492 adopted 2/9/11)

§ 202 Casing generally.

All casing, including surface protection and production strings, shall be either seamless steel or equivalent quality oil well casing. Each production string of casing must comply with at least the minimum internal pressure yield strength, computed in accordance with API specifications for casing and tubing #5C-T. Each joint and length of each particular production casing string shall, prior to setting, unconditionally pass a hydrostatic pressure test to API specifications.

Oil shall be prevented from being sprayed around such derrick and the premises, and from being blown through the air from such well into such premises and any adjoining property by use of safety valves, blow-out preventers, or oil savers.

(Ordinance 1492 adopted 2/9/11)

§ 203 Casing; setting and cementing surface casing.

It shall be unlawful to drill a well for oil or gas without:

Setting and cementing a string of casing to a depth from the surface of the earth as specified by the Texas Water Commission, or any other state or federal agency, provided any cementing process approved by the Texas Railroad Commission may be used.

Notifying the fire chief and/or fire marshal of the reaching of these depths and giving him an opportunity to inspect such activity and to determine that a proper amount of casing is set out and cemented.

(Ordinance 1492 adopted 2/9/11)

§ 204 Casing and tubing.

All oil and gas wells hereafter drilled, upon completion, shall be equipped with an adequate wellhead to be maintained with proper fittings and valves as permanent equipment upon such well, which shall remain during the life and operation of the well.

(Ordinance 1492 adopted 2/9/11)

§ 205 Blow-out preventor (B.O.P.).

No well shall be developed for oil and gas within the city limits without proper equipment on surface casing with a B.O.P. with one (1) blind ram and one (1) pipe ram with one (1) hydrill bag preventer on top of B.O.P. stack with minimum test pressure of six thousand (6,000) pounds and minimum working pressure of three thousand (3,000) pounds. If any such well is drilled to the Cotton Valley or Smackover, then B.O.P. equipment shall be of minimum test pressure of ten thousand (10,000) pounds and have a working pressure of five thousand (5,000) pounds with one (1) hydrill bag preventer on top of the B.O.P. stack.

A blow-out preventer (B.O.P.) shall either be hydraulic or manually operated. When a hydraulic operated blow-out preventer is used, it also must be capable of being operated manually. The B.O.P. shall be tested at least once in every twenty-four-hour period, and all control equipment shall be in good working condition and order at all times. The fire chief and/or the fire marshal shall periodically witness such test of the blow-out preventer stack.

(Ordinance 1492 adopted 2/9/11)

§ 206 Tubing.

All tubing used in any well within the city limits shall be steel tubing and meet API standards and specifications for such depth as required for the well.

(Ordinance 1492 adopted 2/9/11)

§ 207 Drilling fluid.

No well shall be developed for oil and gas within the city limits without using mud as the drilling fluid after the setting of surface casing as provided in this section. Prior to the time the well reaches a total depth of five thousand (5,000) feet or the depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud-laden drilling fluid shall be at all times maintained at not less than nine (9) pounds per gallon.

After the well reaches a total depth of five thousand (5,000) feet or the depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud-laden drilling fluid shall be at all times maintained at such weight as will provide an adequate hydrostatic head needed to control any formation pressure anticipated to be penetrated by the well bore. In reworking a well, a drilling fluid shall be at all times maintained at such weight as will provide hydrostatic head equal to formation pressure.

(Ordinance 1492 adopted 2/9/11)

§ 208 Drill stem tests.

It shall be unlawful for any person connected with the development of any well for oil and gas or reworking operations of any well within the city limits to take and to complete any drill stem test or tests except during the daylight hours and then only if the well effluent during the test is produced through an adequate oil and gas separator to storage tanks for oil (or flared over the reserve tank for gas), and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe.

(Ordinance 1492 adopted 2/9/11)

§ 209 Bradenheads.

Any well developed for oil or gas within the city limits shall be equipped with a bradenhead with a working pressure of not less than three thousand (3,000) pounds per square inch. The bradenhead installed on the surface casing shall be equipped with a fitting having a working pressure rating of not less than three thousand (3,000) pounds per square inch. The bradenhead pressure shall be checked at least once each calendar month and, if pressure is found to exist, proper remedial measures shall be taken immediately to eliminate the source and the existence of the pressure.

(Ordinance 1492 adopted 2/9/11)

§ 210 Christmas tree and wellhead connections.

A pumping well tree shall include the installation of blind rams below the pumping tee and a stuffing box that can be repacked under pressure. The pumping unit shall have a flow line high pressure shutdown device and a stuffing box leak detection and shutdown.

The wellhead shall include the equipment used to maintain surface control of a well including the casing head, tubing head, and the Christmas tree pertaining to the wellhead.

The Christmas tree shall include two (2) master valves and one (1) wing valve, control valves, pressure gauges and the choke assembly at the top of a well to control the flow of oil and gas after the well has been drilled and completed.

All Christmas trees, valves, and vessels shall be of new construction or tested. The Christmas tree and all wellhead connections on each well drilled within the city limits shall follow API standards and specifications for a given depth.

All piping and fittings connecting the wellhead to an oil/gas separator shall have at least the same minimum working pressure and minimum test pressure as hereinabove specified for Christmas trees and wellhead connections. In the event the surface shut-in pressure of any well in the city limits exceeds two hundred (200) pounds per square inch, the flow wing of the Christmas tree shall be equipped with a fail-safe high-low safety valve in addition to wing valve. The safety valve shall be maintained in accordance with manufacturer’s specifications.

(Ordinance 1492 adopted 2/9/11)

§ 211 Application of requirements before pulling tubing.

If any person desires to pull or remove the tubing now in place in any present producing well within the city, before doing so such person shall give notice to the fire chief or fire marshal of such intention, in which event sections 204, 205, and 206 shall apply to all present wells from and after the time the tubing may be pulled or removed therefrom. When such tubing is pulled, the operator shall install a dual blow-out preventer on the wellhead as provided in sections 204, 205, and 206 and such rods and tubes shall be pulled through an adequate blow-out preventer of standard manufacture. The operator shall use a customary approved method of preventing the oil from flowing through the tubing in the withdrawal or installation of the same.

(Ordinance 1492 adopted 2/9/11)

§ 212 Servicing of pumping wells.

All pumping wells shall be equipped with a removable standing valve or tubing bleeder in order than that the oil contained in the tubing above the standing valve can drain back into the hole rather than be brought to the surface. All rods shall be pulled through a rod stripper with new rubbers in order that the flow of oil through the tubing and around the rods may be restricted and prevented from spilling, overflowing, or escaping and thus forming a fire hazard.

Such rod stripper shall be in the nature of a blow-out preventer for the rods on such equipment of standard manufacture as will prevent oil from flowing between the rods and the tubing and maintaining control of the well at all times.

All reasonable and practicable efforts should be made to avoid pulling a wet tubing string (one containing well fluids), including, but not limited to, perforating tubing for drainage. If a tubing string must be pulled wet, then the fire department shall be notified so that equipment necessary to prevent spillage or fire hazards can be provided at the well location.

(Ordinance 1492 adopted 2/9/11)

§ 213 Fencing.

All wells, tanks, or tank batteries located within the city shall be enclosed in a heavy steel fence of chain-link construction and of standard manufacture. Such fence shall be a six (6) feet industrial chain-link with three (3) strands of barbed wire for an overall height of seven (7) feet.

The corner metal posts used for such fence shall have an inside dimension of two and one-half (2-1/2) inches and the metal posts used as line posts shall have a two-inch inside dimension, and the gate frames for such fence shall have a one-inch inside dimension. Where desired, a good grade line pipe may be used for such posts; provided, such pipe shall be finished with at least one (1) undercoat of rust preventive primer and at least one (1) outer coat of aluminum paint, to be applied at the time of construction. Each fence shall be constructed with a tubular, galvanized iron railing, having a one-inch inside dimension, which shall be attached with the posts and shall be two (2) inches below the exposed upper edges of the posts.

The galvanized fencing material used in such fence shall be of two-inch mesh and shall be constructed of not less than eleven-gauge wire.

Such fence shall be completed with a gate of the same design and manufacture, which gate shall be kept locked with a substantial locking device except where access is made under the direction and authority of the owner.

All pumping wells drilled and completed in the future, tank, or tank battery, within the city shall likewise be enclosed with a fence as above specified. This provision shall also apply to any equipment in operation at or in connection with any pumping well or any tank battery within the city where such pumping equipment or tanks are not actually located at the well.

At the time the zoning special use permit is considered by the planning and zoning board and/or the city council, varying and/or different fencing requirements may be stipulated as a special condition to the special use permit to conform to existing deed restrictions or to allow materials requested by the residents within two hundred (200) feet of the drill site tract. Regardless of the type of fencing, the minimum height shall be six (6) feet with three (3) strands of barbed wire for an overall height of seven (7) feet.

The fence around the location shall be maintained in good repair and shall be kept free of weeds, trees and vines.

(f)

The City of Kilgore Fire Marshal or his designee shall have authority to enforce this section of this division.

(Ordinance 1492 adopted 2/9/11)

§ 214 Disposal of salt water and frac fluid.

Adequate provision of disposal.

Any person drilling or operating an oil or gas well shall make adequate provision for the disposal of salt water, frac fluid or other impurities which may be brought to the surface of the earth in such manner as not to contaminate the water supply of the city or destroy vegetation.

Escape prohibited.

It shall be unlawful for any person to store salt water or frac fluid in or allow salt water or frac fluid to flow or escape into any earthen pit within the city, and it shall be unlawful to dig or cause any such pits for such purposes. It shall also be unlawful to allow any salt water or frac fluid to flow or escape onto the surface or under the ground within the city.

Injection wells prohibited.

It shall be unlawful for any person to dig, bore, drill, or cause to be dug, bored, or drilled, any well within the city for the purpose of using such well as a salt water injection well or pumping salt water or frac fluid into the same, and no well within the city shall be used as a salt water injection well, nor shall salt water be pumped into such well or allowed to flow or escape into the well.

Disposal outside city.

Any person drilling or operating any well for the production of oil or gas shall make adequate provision for the disposal of salt water, frac fluid or other impurities produced from such well, which disposal shall be outside the city at a Texas Railroad Commission approved site.

(Ordinance 1492 adopted 2/9/11)

§ 215 Slush, mud, etc., not to escape.

It shall be unlawful for any person to permit to escape within the city any mud, water, waste oil, slush, or other waste matter from any reserve pit, storage tank, or oil well located within the city, or from any premises within the city developed or being developed for oil or gas purposes, into the alleys, streets, gutters, or sewers of the city, or onto adjoining lots, lands, or leases within the city.

Steel or lined, earthen reserve or drilling mud pits shall be permitted in connection with drilling operations. Pits may not exceed a total capacity of one thousand (1,000) barrels per drill site.

At the time an application for an oil/gas drilling permit is made, the operator shall state the use of steel and/or lined, earthen pits, and include any request for additional site pit capacity not to exceed two thousand (2,000) barrels. Prior to the city council issuance of a drilling permit, the fire marshal shall make a visual site assessment and give a written recommendation on the operator’s request to the city council on the use of the type and capacity of pit(s) to be used.

A steel pit and its contents shall be removed from the premises and drilling site within thirty (30) days after the completion of the well. Lined, earthen pits shall be emptied of contents, filled, and leveled within thirty (30) days, unless pits are fenced as described in Section 17-87 [213], or an extension is requested of, and granted by, the city council.

In removing such reserve or drilling mud pits, it shall be unlawful to permit the contents thereof to escape onto adjacent lands, lots, or property or into the streets, alleys, gutters, or sewers in the city. The premises shall be cleaned and restored to a smooth even state.

(Ordinance 1492 adopted 2/9/11)

§ 216 Petroleum tanks.

Maximum capacity of single tanks.

It shall be unlawful for any person to construct, build, maintain, or operate, or cause to be constructed, built, maintained, or operated, within the city, any tank or receptacle of steel or any other material having a capacity of more than one thousand (1,000) barrels. Such prohibition shall include, and is intended to include, all tanks or receptacles used for the collection, storing or distribution of oil having a capacity of more than one thousand (1,000) barrels. Gasoline must be stored according to the City of Kilgore Fire Code.

Maximum capacity of battery of tanks.

It shall be unlawful for any person to construct, build, or maintain any battery of tanks within the city where such battery or collection of tanks shall exceed a total capacity of one thousand five hundred (1,500) barrels, or such tanks shall be constructed or built in close proximity of each other, or in such a manner and location as to constitute an unusual fire hazard.

Permit to construct; safety measures; inspection.

Before any tank, as defined in this chapter, for the collection, storage or distribution of oil or its products shall be built, constructed, moved, or replaced within the city, an application shall be made to the fire chief or fire marshal for a permit to allow the construction, moving, or replacing of such tank, and there shall be deposited with such application the sum as provided in appendix B to this code as a permit fee for each tank. Upon such application being made to the city, the fire chief or fire marshal shall make an inspection of the premises and location at which such tanks are desired to be constructed by such applicant, and the applicant shall furnish with such application a diagram showing the proposed location of the tanks, giving the capacity of them and the specifications to be constructed, and also showing the approximate distance of such tank locations from all adjacent wells, houses, barns, or other structures.

Any tank hereafter constructed within the city, whether it is a replacement or otherwise, shall be a welded tank with vent stack valves and with flame arresters, pressure vacuum vent valves with flame arresters, and pressure vacuum thief covers, and all tanks shall be grounded. The operators and their authorized agents shall be responsible for keeping the thief hatch covers closed. No tank battery shall have over one thousand five hundred (1,500) barrels of storage, and no tank shall be built closer than one hundred (100) feet to any other structure, nor closer than fifty (50) feet to any property or street right-of-way line.

A steel conventional separator and such other steel tanks and appurtenances as are necessary for treating oil, with each of such facilities to be vapor-tight, may be constructed and operated. Each oil/gas separator shall be equipped with a regulation pressure relief safety valve. A heater treater may not be placed closer than one hundred fifty (150) feet to any tank, nor closer than fifty (50) feet to any property or street right-of-way line.

After the application required in subparagraph (1) of this subsection shall have been made and the plat or diagram furnished, the fire chief or fire marshal or his authorized representative shall make an inspection of such premises and proposed location and after such inspection shall make a report either approving or disapproving the construction of such tanks at the location proposed, as well as the type of tanks proposed to be erected. If such application should be approved, a permit for the construction of such tanks shall be issued, but if such application should not be approved by the fire chief or fire marshal, or his authorized representative, a report in writing setting objections, if any, to the construction of such tanks at the location proposed in such application, shall be made a part of the fire department’s records.

If such application should be refused, the opinion and judgment of the fire chief or fire marshal shall be final and conclusive; provided, however, any applicant whose application may be refused may appeal to the city council at any regular meeting thereof.

Fire walls.

Any person receiving a permit provided for in this section shall be required to construct a fire wall around each tank battery erected within the city, which fire wall shall be constructed to such a height as may be necessary to hold and restrain one hundred fifty (150) percent of the fluid capacity of the tanks enclosed by such fire wall if such oil or oil products should escape from such tanks and so as to prevent the oil and/or oil products from escaping to and spreading upon any adjacent land or property.

The fire wall shall be constructed of earth or metal. If a metal fire wall is used it shall:

Be of a factory-manufactured galvanized, corrugated steel of not less than 10 gauge;

Have the base of the steel imbedded in the ground not less than five (5) inches;

Have support posts equivalent to three-inch Schedule 40 steel pipe, ASTM A 53 Type F, have a section modulus of not less than 1.72 and be sufficiently anchored in concrete; and