It shall be unlawful for any person, acting either for himself or acting as agent, employee, independent contractor, or servant of any other person, to commence to drill or to operate any well within the city limits or to work upon or assist in any way in the prosecution or operation of such well, without a permit for the drilling and operation of such well having first been issued by the authority of the city council.
(1964 Code, sec. 17-19)
(a) 
Every application for a permit to drill and operate a well shall be in writing and signed and sworn to before a notary public by the applicant or some representative of the applicant having due and legal authority to enter into contracts binding upon the applicant. It shall be filed with the city secretary and shall not request a permit to drill and operate more than one (1) well. The application shall clearly identify the drilling block and the exact lot and location thereon of the well location where it is proposed the well be drilled, and there shall be attached thereto either certified or photostatic copies of all leases and contracts with the owners of minerals under such drilling block which are controlled or owned by the applicant, and of all requisite permissions from the owners of the surface and improvements thereon, to the end that the application will show what specific part of the drilling block the applicant holds under lease or contract with the owners, what specific part of the drilling block the applicant does not hold under lease or contract with the owners, and that he owns or controls the interest in the drilling block and the permissions from the owners of the surface and improvements required by this article.
(b) 
The application shall state the depth to which it is proposed that the well be drilled, the applicant’s proposed complete casing program, and an itemized schedule of the applicant’s then best belief as to the costs of drilling the well, and the costs of completing and equipping the well if the same is a producer. There shall be attached to the application a map or plat showing the exact and correct acreage or square feet in the drilling block and in each lot or tract comprising a part of the drilling block (each calculated to the center of the streets and alleys adjoining the same), the exact location of the proposed well, the areas within the drilling block owned or controlled by the applicant, the areas within the drilling block not owned or controlled by the applicant, the distances from the well location to the exterior boundary lines of the drilling block, and the distances from the well location to all residences, structures and commercial buildings situated within three hundred fifty (350) feet of the well location.
(1964 Code, sec. 17-20)
(a) 
Upon the filing of an application for a permit to drill and operate a well, the city secretary shall set a date for a hearing on such application, which hearing date shall not be less than ten (10) days subsequent to the date of the filing of such application. Notice of the filing of such application and the date of the hearing thereon shall be given by the city secretary at the applicant’s expense by publication in one issue of a newspaper published in the city at least five (5) days prior to the date of such hearing. Such notice shall be in substantial compliance with the following form:
Notice is hereby given that _____as applicant, pursuant to the provisions of article 4.10 of the Code of Ordinances, City of Robstown, Texas, did, on the _____ day of _____, 19_____, file with the City Secretary an application for a permit to drill and operate a well upon Robstown Drilling Block No. _____ Said application and map showing the lands comprising said drilling block and the exterior boundaries thereof are on file in the office of the City Secretary and are subject to the examination of all persons during regular office hours. A hearing upon such application will be held at the City Hall by the City Council on the _____day of _____, 19_____at _____ o’clock, _____.m., and at such continued hearing or hearings, if any, as the City Council may, in its discretion, designate.
(b) 
Proof of publication of such notice shall be made by the printer or publisher of the newspaper publishing the same by affidavit filed with the city secretary, and such affidavit shall be prima facie evidence of such publication.
(c) 
A hearing open to the public shall be held by the city council on every application filed under the provisions of this division at the particular time and date designated in the notice provided for above. In the event a majority of the members of the city council are not present at the hearing, or at the discretion of the members of the city council if a majority of the members thereof are present at the hearing, the hearing may be continued to a designated time and date.
(1964 Code, sec. 17-21)
(a) 
The fee for a permit required by this division shall be one thousand dollars ($1,000.00), which fee shall be paid in cash at the time the application is filed.
(b) 
If the permit for the well is 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 bond of the applicant is not approved and the applicant notifies the city council that he does not desire to file another bond, the fee paid under this section shall be returned to the applicant, except that there shall be retained therefrom by the city one hundred dollars ($100.00) as a processing fee.
(1964 Code, sec. 17-22)
If, after hearing, an application filed pursuant to this division is found by the city council to comply in all respects with the terms of this article, and the drilling block is not prohibited by the terms of this article and the city council does not elect to refuse the application as authorized by this article, and after determining the amount of the bond required by section 4.10.006, the city council shall issue a permit for the drilling and operation of the well applied for.
(1964 Code, sec. 17-23)
The city council may, pursuant to the provisions of section 4.10.005, refuse to issue a permit for the particular drilling location on the drilling block as applied for by the applicant and, in lieu thereof, designate as the drilling location a different drilling site on such drilling block subject to the applicant obtaining all requisite leases, contracts, and surface permissions for the designated substituted drilling site.
(1964 Code, sec. 17-24)
There shall not be more than one permit issued for any one well in any one drilling block, except that, where more than one oil or gas sand capable of producing oil or gas in commercial quantities is found in such drilling block, a separate permit may be granted to the permittee then operating a producing well on such drilling block for one well to each of such sands in such drilling block.
(1964 Code, sec. 17-25)
No permit shall be granted for the drilling and operation of any well except upon land owned by the applicant or held by the applicant under an oil and gas lease or drilling contract from the owner of the mineral leasehold estate covering at least fifty-one percent (51%) of the total number of square feet of land contained in the drilling block, giving the applicant the owners’ permission to drill the well.
(1964 Code, sec. 17-26)
(a) 
In the event a permit for the drilling and operation of a well is issued to any person not owning or holding oil and gas leases or drilling contracts with all of the owners of the mineral leasehold estate covering one hundred percent (100%) of the total square feet of land contained in the drilling block, it shall be a condition of the permit that the permittee shall pay and deliver to the credit of each such owners, whose land shall to be under lease and who fail to elect to share in the ownership of the well within twenty (20) days from the date of issuance of the permit as provided in subsection (b) hereof, a sum in cash equivalent to the highest bonus paid by the applicant or his predecessor in title for a lease covering lands within such drilling block in the proportion or ratio as the square feet of land owned by such nonleasing owner bears to the square feet of land upon which such highest bonus was paid, and his proportionate share, determined by such nonleasing owner (calculated to the center of the streets and alleys adjoining the same) bears to the total square feet of land contained in such drilling block, of the following interest in the production from the well on such drilling block for which the permit is issued, payable monthly:
(1) 
On crude oil, the proceeds from the sale of one-eighth (1/8) of that produced and saved, less such one-eighth’s pro rata part of production and severance taxes applicable thereto and actually paid thereon by the permittee.
(2) 
On gas (including casing head gas) sold at the well, or from the outlet side of a separator, or on residue gas sold at the discharge side of a processing plant, one-eighth (1/8) of the price received by the permittee for such gas, less such one-eighth’s pro rata part of production severance gathering and similar taxes applicable thereto and actually paid thereon by the permittee, and less such one-eighth’s pro rata part of dehydration and compressing costs actually paid by the permittee.
(3) 
On condensate and other liquid hydrocarbons recovered by means of a mechanical separator or from processing in a processing plant, one-eighth (1/8) of one hundred percent (100%) of that value of that portion of the condensate and other liquid hydrocarbons that accrues to the permittee, less such one-eighth’s pro rata part of production and severance taxes applicable thereto and actually paid thereon by the permittee.
Each person owning or holding an oil and gas lease or interest therein who is not the permittee and who fails to elect, or whose lessor shall have failed to elect, to share in the ownership of the well within twenty (20) days from the date of issuance of the permit as provided in subsection (b) hereof shall be entitled to receive the payments specified in this subsection (a) from the permittee, subject to his obligation to pay royalties to the lessor of such lease in accordance with the terms thereof. Each person entitled to receive the payments specified in this subsection (a) from the permittee, including the person specified in the preceding sentence, shall be deemed to have agreed to pool his interest in the drilling block on the basis set forth in this subsection (a) and to have released the city and the permittee from any claims which might be asserted by him or his heirs, personal representatives, successors and assigns to participate in the drilling of such well or to share in the ownership, benefits or production from such well on any basis other than as set forth in this subsection (a).
(b) 
In the event a permit is issued to a person who does not own or hold leases or drilling contracts from the owners of the mineral leasehold estate under all of the lands within the drilling block, any person owning mineral [interest] under or holding oil and gas leases on land in the drilling block shall have the right, subject to all the terms and conditions of the permit and subject to paying his pro rata part of any payments due under the provisions of subsection (a), to share in the ownership, benefits and production of such well in the proportion that the area attributable to his mineral interest or his lease or leases (calculated to the center of the streets and alleys adjoining the same) bears to the whole area of the drilling block, provided that, within twenty (20) days after the date of the issuance of the drilling and operating permit, he shall file with the city secretary his election in writing to pay to the permittee a like proportion of the total cost and expense of building, completing, equipping and operating the well, and shall, within such time, make and file with the city secretary, for the benefit of the permittee, a bond duly executed by him, as principal, and by a reliable surety company authorized to do business in the state, as surety, and in an amount representing that portion of the estimated maximum cost of drilling, completing and equipping such well that the area attributable to his mineral interest or his lease bears to the whole area of the drilling block, conditioned that the principal in the bond will currently from time to time pay to the permittee his proportion of all costs of drilling, completing, equipping and operating the well, including all costs incurred by the permittee in fulfilling the terms and conditions of the permit, such bond to be approved by the mayor and held by the city secretary for the benefit of the permittee.
(1964 Code, sec. 17-27; Ordinance 867, sec. II, adopted 7/13/92)
Each permit issued under this division shall be issued in duplicate originals, shall be signed by the mayor and, prior to delivery to the permittee, shall be signed by the permittee, with one original to be retained by the city and one by the permittee. When so signed, the permit shall constitute the permittee’s drilling and operating license and the contractual obligation of the permittee to comply with the terms of such permit, his bond, and this division.
(1964 Code, sec. 17-28)
Each permit issued under this division shall:
(1) 
By reference have incorporated therein all provisions of this article with the same force and effect as if this article were copied verbatim in the permit.
(2) 
Specify the well location with particularity as to lot number, block number, name of addition or subdivision, or other available correct legal description.
(3) 
Contain and specify that the term of such permit shall be for a period of one (1) year from the date of the permit and as long thereafter as the permittee is engaged in continuous drilling operations or oil or gas is produced in commercial quantities from the well drilled pursuant to such permit; provided that, if at any time after discovery of oil or gas the production thereof in commercial quantities should cease, the permit shall not terminate if the permittee commences additional reworking operations within ninety (90) days thereafter, and if the result is the production of oil or gas, so long thereafter as oil or gas is produced in commercial quantities from the well.
(4) 
Contain and specify such conditions as are by this article authorized.
(5) 
Specify the total depth to which the well may be drilled, not exceeding the projected depth.
(6) 
Contain and specify that no actual drilling operations shall be commenced until the permittee shall file and have approved the indemnity bond required by section 4.10.006.
(1964 Code, sec. 17-29)
Once any well has either been completed as a producer or abandoned as a dry hole, it shall be unlawful for any person to drill such well to a deeper depth than that reached in the prior drilling operations unless the permittee as to such well obtains a supplemental permit after filing a supplemental application with the city secretary specifying the then condition of the well and the casing therein; the depth to which it is proposed such well be deepened, not to exceed in any event total depth from the surface in excess of ten thousand (10,000) feet; the proposed casing program to be used in connection with the proposed deepening operation; and evidence of adequate current tests showing that the casing strings in said well currently passed the same tests as are in this article provided for in case of the drilling of the original well. In the event the city council is satisfied that the well may be deepened with the same degree of safety as existed in the original well, a supplemental permit may be issued, without an additional fee, to the permittee authorizing the deepening and operation of the well to such specified depth as applied for, not exceeding in any event a total depth from the surface in excess of ten thousand (10,000) feet. In any deeper drilling or any deeper completion, or any deeper production operations, the permittee shall comply with all other provisions contained in this article and applicable to the drilling, completion and operation of a well.
(1964 Code, sec. 17-30)
The city council, at any regular or special session or meeting thereof, provided ten (10) days’ notice has been given to the permittee that revocation is to be considered at such meeting, may revoke or suspend any permit issued under this division and under which drilling or producing operations are being conducted, in the event the permittee has violated any provision of his permit or bond or of this article. In the event the permit is revoked, the permittee may make application to the city council for a reissuance of such permit, and the action of the city council shall be final. Such revocation or suspension shall be in addition to any penalty imposed upon conviction for such violation.
(1964 Code, sec. 17-31)
Neither this division nor any permit issued hereunder shall be interpreted to grant any right or license to the permittee to enter upon, use or occupy, in any respect in the drilling or operation of any well, any surface land except by the written consent of the surface owner, nor shall it limit or prevent the free right of any owner to contract for the amount of damages, rights or privileges with respect to his own land and property.
(1964 Code, sec. 17-32)