The city council declares that the enactment of this division
shall serve to regulate subsurface natural gas and petroleum drilling
originating outside the territorial limits of the city and continuing
into the territorial limits of the city. The city council desires
to regulate such activity taking place within the territorial limits
of the city only to protect the public health, safety and welfare
of the city. The regulations imposed by this division shall not be
more stringent than those imposed on petroleum and natural gas exploration
originating entirely within the territorial limits of the city.
(Ordinance 100-04B, sec. 8.5-1,
adopted –/–/04)
(a)
The
definitions contained in division 2 of this article, as it may be
amended, are hereby incorporated herein as if copied in full.
(b)
Directional drilling permit
Directional or slant well drilling
Horizontal drilling
The
following definitions shall apply to the provisions of this division:
means a permit applied for and issued or denied under this
division authorizing the directional or slant well or horizontal drilling
for oil or gas where such drilling originates outside the territorial
limits of the city and continues into the territorial limits of the
city.
means the controlled directional drilling when the bottom
of the well bore is directed away from the vertical position.
means the process of drilling a well that begins as a vertical
or inclined linear bore which extends from the surface to a subsurface
location, then bears off on an arc to intersect a potential reservoir
and, thereafter, continues at a near-horizontal attitude tangent to
the arc, to substantially or entirely remain within the reservoir.
(Ordinance 100-04B, sec. 8.5-2,
adopted –/–/04)
(a)
No
subsurface drilling or extraction of petroleum or natural gas within
the territorial limits of the city through directional or slant well
or horizontal drilling commencing outside the territorial limits of
the city is permitted without first obtaining a directional drilling
permit issued pursuant to this division.
(b)
An
application for a directional drilling permit shall be filed with
the office of the city secretary. An application may be filed by the
owner of the property. The owner of the mineral rights, the well operator,
or his authorized agent.
(Ordinance 100-04B, sec. 8.5-3,
adopted –/–/04)
Every application shall be accompanied by a filing fee in the amount set forth in the fee schedule in appendix A of this code.
(Ordinance 100-04B, sec. 8.5-4,
adopted –/–/04; Ordinance
adopting 2018 Code)
(a)
An
application for a directional drilling permit (“permit”)
shall be accompanied by a site plan which, along with the application,
will become a part of the permit, if approved. The accompanying site
plan shall provide the following information:
(1)
Data describing all processes and activities involved with the proposed
directional or slant well drilling operation;
(2)
The location, depth and distance of the proposed directional or slant
or horizontal well drilling operation; and
(3)
The location of all municipal public rights-of-way beneath which
such directional or slant or horizontal well drilling operation is
proposed.
(b)
An
application for a permit under this division shall include the following
information:
(1)
The date of the application.
(2)
The name and signature of the applicant.
(3)
The address of the applicant.
(4)
The name, address, and phone number of persons to be notified in
case of an emergency.
(5)
The names of all mineral rights owners within the territorial limits
of the city through which subsurface directional or slant well or
horizontal drilling operations may take place.
(6)
An accurate legal description of the property, the lease area, and
the drill site.
(7)
A copy of approved state railroad commission Form 1 for the well
shall be furnished to the city secretary prior to the beginning of
actual directional or slant well drilling operations within the territorial
limits of the city.
(Ordinance 100-04B, sec. 8.5-5,
adopted –/–/04)
A permit issued under this division shall be valid for a period
of eighteen (18) months from the date of issuance and shall expire
unless drilling operations or extraction of petroleum or natural gas
is substantially underway.
(Ordinance 100-04B, sec. 8.5-6,
adopted –/–/04)
A permit issued pursuant to this division may be revoked for
either of the following reasons:
(1)
The
permit was obtained by fraud or deception; or
(2)
One
or more the conditions of the permit has been violated since the date
of issuance.
(Ordinance 100-04B, sec. 8.5-7,
adopted –/–/04)
Permits granted pursuant to this division are non-transferable.
(Ordinance 100-04B, sec. 8.5-8,
adopted –/–/04)
Every operator subject to the requirements of this division
shall designate an agent, who is a resident of the State of Texas,
upon whom all orders and notices may be served in person or by registered
or certified mail. Every operator so designating such agent shall
within ten (10) days notify the city secretary in writing of any change
in such agent or such mailing address unless operations within the
city are discontinued.
(Ordinance 100-04B, sec. 8.5-9,
adopted –/–/04)
If an application for a permit is approved the following documents
must be submitted to the city prior to issuance of the permit:
(1)
A
surety bond, irrevocable letter of credit approved in the amount of
$50,000.00, or cash escrow shall be filed with the city prior to the
issuance of a permit pursuant to this division. The bond shall be
issued by an insurance company authorized to issue bonds in the State
of Texas by the state department of insurance. The bond, in favor
of the city, shall be surety that the applicant will comply with all
of the terms, conditions, and requirements of this division and any
permit issued pursuant to the application. Further, the bond is surety
that the applicant will repair any damage to city thoroughfares or
public or private property caused by the directional or slant well
or horizontal drilling operations conducted within the territorial
limits of the city based on a determination of damage by the city.
The bond or letter of credit must remain in force until 90 days after
the well starts producing.
(2)
In
addition, the applicant shall file with the city a copy of a current
standard comprehensive public liability insurance policy including
contractual coverage for accidental death, bodily injury, and property
damage. The policy will name both the applicant and the city as insureds.
The issuing company shall be an insurance company authorized by the
State of Texas to issue policies in the state. The insurance policy
shall be filed with the city prior to the applicant receiving the
approved permit. In the event that the policy is canceled, the city
may cancel or suspend any permit issued in connection with the canceled
policy and all directional or slant well or horizontal drilling operations
conducted within the territorial limits of the city must cease immediately.
The permit shall remain ineffective until a certification of current
insurance coverage is received by the city. The insurance coverage
must remain in effect until the well has been plugged and abandoned.
The minimum coverages shall be:
(Ordinance 100-04B, sec. 8.5-10,
adopted –/–/04)
Each permit holder shall take special care that no groundwater
supply of the city is contaminated by the directional or slant well
or horizontal drilling operations conducted within the territorial
limits of the city. All rules of the federal government, the state,
and the city regarding protecting natural resources must be strictly
followed.
(Ordinance 100-04B, sec. 8.5-11,
adopted –/–/04)
Upon abandonment of a well or well site outside the territorial
limits of the city from which well or well site directional or slant
well or horizontal drilling into the territorial limits of the city
has occurred, the operator of such well or well site, within two months,
shall plug such well in accordance with the state railroad commission
standards to ensure the safety and stability of the subsurface area
within the territorial limits of city through which such drilling
has occurred.
(Ordinance 100-04B, sec. 8.5-13,
adopted –/–/04)
