(a)
Purpose
and intent.
The exploration, development, and production
of gas in the city is an activity which necessitates reasonable regulation
to ensure that all property owners, mineral and otherwise, have the
right to peaceably enjoy their property and its benefits and revenues.
It is hereby declared to be the purpose of this article to establish
reasonable and uniform limitations, safeguards and regulations for
operations related to the exploring, drilling, developing, producing,
transporting and storing of gas and other substances produced in association
with gas within the city to protect the health, safety and general
welfare of the public, minimize the potential impact to property and
mineral rights owners, protect the quality of the environment, and
encourage the orderly production of available mineral resources.
(b)
Abandonment
Applicant
Drill site
Drilling
Environmentally sensitive area
Exploration
Gas or natural gas,
Gas well
Gas well inspector
Gas well permit
Gathering station
Hazardous materials management plan
New well
Operation site
Operator
Pipeline easement map
Railroad commission
Road repair agreement
Well
Definitions.
All technical industry words or phrases related to the drilling
and production of gas wells not specifically defined shall have the
meanings customarily attributable thereto by prudent operators in
the gas industry. For the purposes of this article, the following
definitions shall apply unless the context clearly indicates or requires
a different meaning:
as defined by the railroad commission, means and includes
the plugging of the well and restoration of the drill site as required
by this article.
means a person to whom a permit or certificate for the drilling,
operation and production of a well, or the installation or operation
of a pipeline, is issued under this article, including, but not limited
to, his or her heirs, legal representatives, successors or assigns.
means the area used for drilling, completing, or re-working
a well.
means any digging or boring of a new well to develop or produce
gas or to inject gas, water, or any other fluid or substance into
the earth. Drilling means and includes the re-entry of an abandoned
well. Drilling does not mean or include the re-entry of a well that
has not been abandoned.
means an area under the jurisdiction of the U.S. Army Corps
of Engineers where scientific, ecological, cultural or aesthetic features
have been identified by the Corps of Engineers.
means geologic or geophysical activities, including, but
not limited to, surveying and seismic exploration, related to the
search for gas or other sub-surface hydrocarbons.
shall have the meaning ascribed to it in the rules, regulations,
and forms of the railroad commission.
means any well drilled for the production of gas or classified
as a gas well by the Texas Natural Resources Code or the Railroad
Commission.
means an independent qualified gas consultant familiar with
and educated in the gas industry who has been retained by the city.
means a permit applied for and issued or denied pursuant
to this article authorizing the drilling, production, and operation
of one or more gas wells.
means the site where the gathering lines for all the wells
converge.
means the hazardous materials management plan and hazardous
materials inventory statements required by the fire code.
means a new well bore or new hole established at the ground
surface and shall not include the re-working of an existing well that
has not been abandoned unless the re-working involves drilling to
a deeper total depth.
means the area used for development and production of gas
and all related operational activities after drilling activities are
complete.
means, for each well, the person listed on the railroad commission
form W-1 or form P-4 for a gas well, that is, or will be, actually
in charge and in control of drilling, maintaining, operating, pumping
or controlling any well including, without limitation, a unit operator.
If the operator, as defined herein, for any gas well is not the lessee
of any premises affected by the provisions of this article, then such
lessee shall also be deemed to be an operator. In the event that there
is no gas lease relating to any premises affected by this article,
the owner of the fee mineral estate in the premises shall be deemed
the operator.
means a map indicating all gathering line easements. The
easements must be located separately from other utility easements.
means the Railroad Commission of Texas.
means a written agreement obligating the operator to repair
damage, excluding ordinary wear and tear, if any, to public streets,
including, but not limited to, bridges, caused by the operator or
its employees, agents, contractors, subcontractors or representatives
in the performance of drilling or production of any gas wells authorized
by the city.
means a hole or bore to any horizon, formation, or strata
for the purpose of producing gas or other hydrocarbons.
(c)
Special
use permit required.
The drilling and production of gas
within the city shall only be permitted by special use permit in accordance
with section 6.08 Specific Use Permit (SUP) of the zoning ordinance.
A site plan is required with the special use permit application and
must include all information required by the zoning ordinance and
the following additional information:
(1)
The total number of wells to be drilled.
(2)
The location of the drill site and a layout of the site showing all
related facilities, including, but not limited to, drilling rig, pipe
rack, water and sanitary sewer facilities, electrical supply, camper/office
trailers, reserve pit and fracturing pits.
(3)
The location of the operation site and a layout of the site showing
all related facilities, including but not limited to wellheads, separators,
dehydrators, tank batteries, compressors and metering stations.
(4)
Size, location and purpose of any shared facilities, including, but
not limited to, centralized tank batteries or fracturing pits for
multiple wells or drill sites.
(5)
The design, location and arrangement of all access roads.
(6)
A map of the public streets to be used by truck traffic to the drill
site.
(7)
The location of any floodplain, drainage or flowage easement.
(8)
A pipeline easement map indicating the location of the nearest gathering
station and the alignment of the pipeline(s) connecting the operation
site to the gathering station.
(9)
A video documenting existing conditions of the city streets within
one mile of the drill site that will be used by truck traffic to the
site, plus a video of the property being used for the drill site.
(d)
Gas
well permit required.
(1)
No person shall engage in the drilling and production of gas wells
within the city without first obtaining a gas well permit.
(2)
A separate gas well permit shall be obtained for each well drilled,
regardless of whether such well is on a previously existing pad site.
(3)
An application for a gas well permit may be filed with the city concurrently
with the application for a special use permit; provided, however,
that the city shall not be required to consider the application for
a gas well permit unless and until a special use permit is approved
by the city council.
(4)
When a gas well permit has been issued covering a well, the permit
shall constitute authority for the following, so long as conducted
in strict accordance with this article: drilling, operation, production,
gathering of production, maintenance, repair, reworking, 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 or its employees, agents,
contractors, subcontractors or representatives. A gas well permit
shall also constitute authority for the construction and use of all
facilities reasonably necessary or convenient in connection therewith,
including gathering lines and discharge lines, by the operator or
his employees, agents, contractors, subcontractors or representatives,
so long as constructed and used in strict accordance with this article.
(5)
An original 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 gas well permit.
(6)
A gas well permit may be issued for any lot, tract or other parcel
of property, and public utilities may be extended or connected to
serve the drill site, whether or not the lot, tract, or other parcel
of property is part of a recorded plat.
(7)
In addition to obtaining a gas well permit and before establishing
a drill site and access road, the operator must obtain the necessary
permits from the city building inspections department and a grading
permit from the city engineering department. The grading permit application
shall include a stormwater pollution prevention plan and a drainage
plan unless the city engineer determines that they are not necessary.
(e)
Application
and review of gas well permit.
(1)
Applications for gas well permits shall be submitted in writing on
forms provided by the city and signed by the operator.
(2)
Applications for gas well permits shall be filed with the planning department. The operator shall pay a gas well permit fee and a gas well inspection fee in the amounts established in the fee schedule attached to the City Code as appendix A, for each gas well to be drilled. The permit fee is nonrefundable regardless of the outcome of the application. If the application is denied, the city shall promptly refund the inspection fee once such denial becomes final. Incomplete applications shall be returned to the applicant. The city shall return any application as incomplete if there is a dispute pending before the railroad commission regarding the determination or authorization of the operator.
(3)
No gas well permit shall be issued if the proposed activities are
not in conformance with the approved special use permit and associated
site plan, provisions of this article, building code, fire code and
all other applicable city ordinances.
(4)
A decision to deny an application for a gas well permit shall be
provided to the operator in writing, including the reason for the
decision. The operator may appeal any such denial to the city council.
(5)
If an application for a gas well permit is denied, nothing herein
contained shall prevent a new application from being submitted to
the city for the same well. A new application fee shall accompany
each new application.
(f)
Insurance
and indemnification.
The operator shall provide or cause
to be provided, the insurance described below for each well for which
a gas well permit is issued, such insurance to continue until the
well is abandoned and the site restored. The operator may provide
the required coverage on a "blanket" basis for multiple wells if the
site of each well is sufficiently identified, the limits of coverage
are sufficient as determined by the city within its sole discretion,
and the blanket policy is otherwise approved by the city. The operator
must provide to the city sufficient documentation that the operator's
insurance complies with the requirements of this section before the
issuance of the gas well permit.
(1)
General requirements: Indemnification and express negligence provisions.
a.
Each gas well permit issued by the city shall include the following
language and regardless of whether such language is actually included
in the gas well permit it shall be deemed to be included therein:
OPERATOR DOES HEREBY EXPRESSLY AND IRREVOCABLY RELEASE AND DISCHARGE
ALL CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, AND EXECUTIONS OF ANY AND
ALL KINDS WHICH IT OR ITS SUCCESSORS OR ASSIGNS EVER HAD, OR NOW HAS
OR MAY HAVE, OR CLAIMS TO HAVE, AGAINST THE CITY OF RICHLAND HILLS,
TEXAS, ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, EMPLOYEES, SPONSORS,
OR VOLUNTEERS, THE GAS WELL INSPECTOR, AND EACH OF THEIR RESPECTIVE
HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS, AND ASSIGNS (THE CITY
OF RICHLAND HILLS, TEXAS AND ALL OTHER FOREGOING PARTIES BEING HEREIN
REFERRED TO COLLECTIVELY AS THE "INDEMNIFIED PARTIES") CREATED BY
OR ARISING OUT OF PERSONAL INJURIES, KNOWN OR UNKNOWN, OR INJURIES
TO PROPERTY, REAL OR PERSONAL, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION
WITH THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER A
GAS WELL PERMIT. OPERATOR AGREES TO FULLY DEFEND, PROTECT, INDEMNIFY,
AND HOLD HARMLESS THE INDEMNIFIED PARTIES 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 BY THE INDEMNIFIED PARTIES CAUSED BY OR
ARISING OUT OF, INCIDENTAL TO, OR OTHERWISE IN CONNECTION WITH ANY
WORK PERFORMED BY OPERATOR UNDER A GAS WELL PERMIT, INCLUDING, WITHOUT
LIMITATION, PERSONAL INJURIES AND DEATH IN CONNECTION THEREWITH WHICH
MAY BE MADE OR ASSERTED BY OPERATOR, HIS AGENTS, ASSIGNS, OR ANY THIRD
PARTIES. OPERATOR AGREES TO FULLY DEFEND, PROTECT, INDEMNIFY, AND
HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY CLAIMS, LIABILITIES,
OR DAMAGES SUFFERED AS A RESULT OF CLAIMS, DEMANDS, COSTS, OR JUDGMENTS
AGAINST THE INDEMNIFIED PARTIES, CREATED BY OR ARISING OUT OF THE
ACTS OR OMISSIONS OF THE CITY OF RICHLAND HILLS OR ANY OF THE OTHER
INDEMNIFIED PARTIES, OCCURRING ON THE DRILL SITE OR OPERATION SITE
IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS
INCLUDING, BUT NOT LIMITED TO, CLAIMS, LIABILITIES, AND DAMAGES ARISING
IN WHOLE OR IN PART FROM THE NEGLIGENCE OF ANY OF THE INDEMNIFIED
PARTIES, INCLUDING THE SOLE NEGLIGENCE OF ANY INDEMNIFIED PARTY, OCCURRING
ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING
AND PERMITTING THE GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE
INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY
THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF RICHLAND HILLS,
TEXAS AND THE OTHER INDEMNIFIED PARTIES FROM THE CONSEQUENCES OF THE
NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, WHETHER THAT NEGLIGENCE
IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH,
AND/OR DAMAGE. THE FOREGOING IS NOT INTENDED TO REQUIRE THE OPERATOR
TO INDEMNIFY THE INDEMNIFIED PARTIES FROM THE INDEMNIFIED PARTIES'
GROSS NEGLIGENCE OR INTENTIONAL HARM, IRRESPECTIVE OF WHETHER THAT
GROSS NEGLIGENCE OR INTENTIONAL HARM IS THE SOLE OR CONTRIBUTING CAUSE
OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE.
b.
All policies shall be endorsed to read "This policy will not be cancelled
or nonrenewed without 30 days advanced written notice to the owner
and the City of Richland Hills, Texas, except when this policy is
being cancelled for nonpayment of premium, in which case ten days
advance written notice is required".
c.
Liability policies shall be written by: (i) carriers licensed to
do business in Texas and with companies with A: VIII or better rating
in accordance with the current best key rating guide; or (ii) nonadmitted
carriers that have a financial rating comparable to carriers licensed
to do business in Texas and which are approved by the city.
d.
Liability policies shall name as "additional insured" the city and
other indemnified parties. Waivers of subrogation shall be provided
in favor of all indemnified parties.
e.
Copies of the pertinent portion of the insurance policies evidencing
all coverages and endorsements required by this section must be presented
to the city before the issuance of the gas well permit, and the acceptance
of a policy without the required limits and/or coverages shall not
be deemed a waiver of these requirements. The city may, in its sole
discretion, accept a certificate of insurance in lieu of a copy of
the pertinent portion of the policy pending receipt of such document
by the city. After the issuance of the gas well permit, the city may
require the operator to provide a copy of the most current insurance
coverages and endorsements for review at any time. An administration
fee of $150.00 will be charged to cover the cost of such review.
f.
Claims-made policies shall not be accepted except for excess policies
and environmental impairment (or seepage and pollution) policies.
(2)
Required insurance coverage:
a.
Commercial or comprehensive general liability insurance:
1.
Coverage should be a minimum combined single limit of $1,000,000.00
per occurrence for bodily injury and property damage, with a $2,000,000.00
annual general aggregate. This coverage must include premises, operations,
blowout or explosion, products, completed operations, blanket contractual
liability, underground property damage, underground reservoir (or
resources) damage, broad form property damage, independent contractors
protective liability and personal injury.
2.
Underground reservoir (or resources) damage shall be on an occurrence
basis, shall not be limited to sudden and accidental occurrences,
shall not have a discovery or reporting limitation and shall not exclude
damage to water tables, formation or strata.
3.
Environmental impairment (or seepage and pollution) shall be either
included in the coverage or written as separate coverage. Such coverage
shall not exclude damage to the lease site. Coverage shall apply to
sudden and accidental pollution conditions resulting from the escape
or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals,
liquids, gases, waste material, or other irritants, contaminants or
pollutants. Coverage shall be a minimum combined single limit of $1,000,000.00,
per occurrence. A discovery period for such peril shall not be less
than 30 days after the occurrence.
b.
Automobile liability insurance:
Minimum combined single
limit of $1,000,000.00 per occurrence for bodily injury and property
damage. Such coverage shall include owned, nonowned, and hired vehicles.
c.
Worker's compensation insurance:
In addition to the
minimum statutory requirements, coverage shall include employer's
liability limits of at least $1,000,000.00 for each accident, $1,000,000.00
for each employee, and a $1,000,000.00 policy limit for occupational
disease, and the insurer agrees to waive rights of subrogation against
any of the indemnified parties for any work performed for the city
by the operator.
d.
Excess (or umbrella) liability insurance:
Minimum limit
of $10,000,000.00 covering in excess of the preceding liability insurance
policies.
e.
Control of well insurance:
1.
Minimum limit of $10,000,000.00 per occurrence, with a maximum deductible
of $250,000.00 per occurrence.
2.
Policy shall cover the cost of controlling a well that is out of
control, redrilling or restoration expenses, and seepage and pollution
damage. Damage to property in the operator's care, custody, and control
with a sub-limit of $500,000.00 may be added.
(g)
Security.
A security instrument that covers each well must be delivered
to the city before the issuance of the gas well permit for the well.
The instrument must provide that it cannot be cancelled without at
least 30 days prior written notice to the city.
(1)
As to each well, the instrument shall secure the obligations of the
operator to:
(2)
The security instrument may be in the form of an irrevocable letter
of credit issued by a bank located in the City of Richland Hills,
Texas and approved by the city or a payment bond issued by a surety
approved by the city. The instrument shall run to the city for the
benefit of the city, shall become effective on or before the date
the gas well permit is issued, and shall remain in force and effect
for a period not less than six months after the expiration or termination
of the gas well permit or after the well is plugged and abandoned
and the site restored.
(3)
A certificate of deposit may be substituted for the letter of credit
or payment bond. The certificate shall be issued by a bank located
in the City of Richland Hills, Texas and approved by the city, shall
be payable to the order of the city to secure the obligations of the
operator described above, and shall be pledged to the city with evidence
of delivery provided to the city and an appropriate control agreement
signed by the issuing bank sufficient to perfect the city's interest
in the deposit. Interest on the certificate of deposit shall be payable
to the operator.
(4)
The amount of the security shall be $100,000.00 for any single well
and $200,000.00 for multiple wells on a "blanket" basis under the
same gas well permit.
(5)
The form and substance of the documents evidencing the security instruments
described above must be acceptable to the city within its sole discretion.
(h)
Periodic
reports.
(1)
The operator shall notify the director of planning of any change
to the following information within one business day after the change
occurs:
a.
The name, address or phone number of the operator;
b.
The name, address or 24-hour phone number of the person(s) with supervisory
authority over drilling or operations activities;
c.
The name, address or phone number of the person designated to receive
notices from the city, which person must be a resident of Texas, that
can be served in person or by registered or certified mail; or
d.
The operator's emergency action response plan including "drive-to
maps" from public rights-of-way to each area covered by the applicable
special use permit and associated site plan.
(2)
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.
(3)
Beginning on December 31st after each well is completed, and continuing
on each December 31st thereafter until the operator notifies the city
that the well has been abandoned and the site restored, the operator
shall prepare a written report to the city identifying any changes
to the information that was included in the application for the applicable
gas well permit that have not been previously reported to the city.
(i)
Amended
gas well permits.
(1)
An operator must submit an application to the planning department
to amend an existing 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.
(2)
The operator shall file any application for an amendment to an existing
gas well permit with the planning department, in writing on forms
provided by the city and signed by the operator, which application
shall include the following:
a.
Payment of a gas well permit amendment fee in the amount established in the fee schedule attached to the City Code as appendix A, which application fee is nonrefundable regardless of the outcome of the application;
b.
A description of the proposed amendments;
c.
Permit (if such information has not previously been provided to the
city);
d.
Such additional information as is reasonably required by the gas
well inspector or city staff to demonstrate compliance with the applicable
special use permit and associated site plan and the provisions of
this article; and
e.
Such additional information as is reasonably required by the gas
well inspector or city staff to prevent imminent destruction of property
or injury to persons.
(3)
If, in the judgment of the city or the gas well inspector, the activities proposed by the amendment require an inspection, the operator shall pay an inspection fee in the amount established in the fee schedule attached to the City Code as appendix A. The operator must pay the fee before the amended gas well permit will be issued.
(4)
Incomplete applications shall be returned to the applicant. The city
shall return any application as incomplete if there is a dispute pending
before the railroad commission regarding the determination of the
operator.
(5)
If the activities proposed by the amendment are materially different and, in the judgment of the city or the gas well inspector, 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 current permit, the amendment must be processed as a new gas well permit application under the provisions of subsection (e) above.
(6)
A decision to deny an amendment to a gas well permit shall be provided
to the operator in writing, including an explanation of the basis
for the decision. The operator may appeal any such denial to the city
council.
(7)
No amended gas well permit shall be issued if the proposed activities
are not in conformance with the approved special use permit and associated
site plan, provisions of this article, building code, fire code and
all other applicable city ordinances.
(j)
Transfer
of gas well permits.
(1)
A gas well permit may be transferred upon written request by the
operator with the consent of the city:
a.
If the transferee agrees to be bound by the terms and conditions
of the current gas well permit and road repair agreement;
b.
If all information previously provided to the city as part of the
current gas well permit application is updated to reflect any changes;
and
c.
If the transferee provides the insurance and security required by
this article.
(2)
The insurance and security provided by the transferor shall be released
if a copy of the written transfer is provided to the city. The transfer
shall not relieve the transferor from any liability to the city arising
out of any activities conducted prior to the transfer.
(k)
On-site
operation requirements.
(1)
No drill site shall be permitted within 600 feet of the boundary
of any preliminary or final platted residential subdivision, and no
drill site shall be permitted within the greater of:
a.
Three hundred feet of the boundary line of any abutting property
with a residential structure, public building, hospital, institution,
school, day care center or commercial building; or
b.
Six hundred feet from any residential structure, public building, hospital, institution, school, day care center or commercial building. Notwithstanding any provisions of this subsection (1) to the contrary, a drill site shall be permitted as close as 300 feet to any boundary line if all affected property owners agree in writing.
(2)
No drill site or operation site shall be located within 200 feet
of a railroad right-of-way.
(3)
Erosion control shall comply with the stormwater pollution prevention
plan approved by the city engineering department.
(4)
A drill site or operation site may only be allowed in a floodplain
with the approval of the city or, where applicable, the U.S. Army
Corps of Engineers.
(5)
There shall be a locked entrance gate to the drill site and operation
site.
(6)
Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED"
in a minimum of four-inch lettering shall be posted at the entrance
of each drill site and operation site. The sign shall also include
the phone number for emergency services (9-1-1), the name and phone
number for the operator, and the well designation required by the
railroad commission in two-inch lettering. The information on the
sign shall be in English and Spanish. The sign shall be reflective.
(7)
All facilities used for parking, loading, unloading, driveways and
all other vehicular access shall be constructed of concrete, asphalt
or an alternative equivalent strength surface which complies with
all fire code standards, provided that the drive approach from the
street be constructed of concrete. The surface for such facilities
and drive approach must always be maintained in good condition and
repair.
(8)
A temporary six-foot chainlink or approved alternative fence with
a minimum height of six feet shall be required around a drill site,
and any gate to the site shall be locked when no operations personnel
are present.
(9)
The equipment or facilities on an operation site must be enclosed,
individually or collectively, by eight-foot-high screening. Low-profile
equipment or facilities must be used on the operation site and must
not exceed the height of the screening. Any gates in the screening
enclosure shall remain locked at all times when no operations personnel
are present. The operator must provide the city fire marshal with
a Knox box with a key to access the operation site in case of an emergency.
The screening shall be constructed of the following materials:
a.
Brick, stone or split-face concrete masonry unit;
b.
Precast concrete wall or pour-in-place concrete wall with a similar
appearance as brick, stone or split-face concrete masonry unit;
c.
Earthen berm, appropriately landscaped; or
d.
A combination of landscaped earthen berm and one of the construction
materials listed above.
(10)
No refining process, or any process for the extraction of products
from gas, shall be carried on at a drill site or operation site, except
that a dehydrator and separator may be maintained for the separation
of liquids from gas. Any such dehydrator or separator may serve more
than one well. All production equipment on an operation site shall
be maintained at all times.
(11)
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, refuse, wastewater, brine or hazardous
substance from any gas operation or the contents of any container
used in connection with any 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.
(12)
Electric lines to the drill site or operation site shall be located
underground.
(13)
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 the maintenance and upkeep of such equipment
shall be the responsibility of the operator.
(14)
No operator shall excavate or construct any lines for the conveyance
of fuel, water, oil, gas or petroleum liquids on, under, or through
the streets, alleys or other properties owned by the city without
an easement or right-of-way license from the city, at a price to be
agreed upon, and then only in strict compliance with this article,
other city ordinances, and the specifications established by the department
of public works.
(15)
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 city, and
then only in compliance with specifications established by the city.
(16)
No gas well permit shall be issued for any well to be drilled within
any of the public street or alley rights-of-way of the city and/or
future streets shown on the master thoroughfare plan. No street shall
be blocked or encumbered or closed due to any exploration, drilling,
or production activities unless prior consent is obtained from the
city, and then only temporarily.
(l)
Operations
and equipment practices and standards.
(1)
Adequate nuisance prevention measures shall be taken to prevent or
control offensive odor, fumes, dust, noise and vibration.
(2)
No person shall permit any lights located on any drill site or operation
site to be directed in such a manner so that they shine directly on
public streets, adjacent property or property in the general vicinity
of the drill site or operation site. Site lighting shall be shielded
and directed downward and internally so as to avoid glare on public
streets and buildings within 300 feet.
(3)
The operator shall at all times comply with the rules and regulations
of the railroad commission, including but not limited to all applicable
field rules.
(4)
Noise levels must not exceed 80 decibels at any point 300 feet from
the drill site. All internal combustion engines used on a drill site
must be equipped with mufflers that will reduce noise to no more than
the maximum decibel level set forth herein. If noise levels at a distance
of 300 feet from a drill site exceed 80 decibels, a sound reduction
enclosure shall be required around a drilling rig and any internal
combustion engines. The noise level during fracturing operations must
not exceed the maximum decibel levels set forth herein.
(5)
Noise levels must not exceed 60 decibels beyond the boundaries of
an operation site as defined in the special use permit and associated
site plan. All internal combustion engines used on an operation site
must be equipped with mufflers that will reduce noise to no more than
the maximum decibel level set forth herein.
(6)
An operator is allowed to construct, use and operate such storage
equipment and separation equipment as shown on the applicable special
use permit and associated site plan and gas well permit. The use of
centralized tank batteries is permitted only as shown on the applicable
special use permit and associated site plan and gas well permit.
(7)
In parallel to a gas gathering pipeline, a flow back line may be
installed to handle water and gas flow back following well fracture
treatment.
(8)
Vehicles, equipment and machinery shall not be placed or located
on a drill site or operation site or on any public street, alley,
driveway or other public right-of-way, in such a way as to constitute
a fire hazard or to unreasonably obstruct or interfere with fighting
or controlling fires.
(9)
Except in the case of an emergency, well servicing operations and
any deliveries to the site shall be scheduled to occur between the
hours of 7:00 a.m. to 7:00 p.m., Monday through Friday, and 9:00 a.m.
to 6:00 p.m., Saturday and Sunday, only. The time limits set forth
herein do not apply during the well drilling and fracturing process.
(10)
Air, gas or pneumatic drilling shall not be permitted.
(11)
The operator shall immediately notify the city of any substantial
accumulations of dirt, dust, mud or other debris deposited on city
thoroughfares by vehicles involved in the well drilling or servicing
or pipeline installation process. If for safety or other reasons,
the city elects to perform the removal, the cost of such removal shall
be paid by the operator.
(12)
Within 60 days of the completion of the well or within 60 days of
reworking a well, the area around the well shall be cleaned up and
cleared of all material and equipment, holes or excavations filled,
and the land graded and returned to its original condition including
replanting of vegetation to match the surrounding area.
(m)
Flow
lines and gathering lines.
(1)
An operator shall place an identifying sign, in English and Spanish,
at each point where the operator has constructed or caused to be constructed
a flow line or gathering line across a public street or road.
(2)
An operator shall place a warning sign, in English and Spanish, for
lines carrying hydrogen sulfide (H2S) gas as required by the railroad
commission.
(3)
All flow lines and gathering lines within the city (excluding city
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.
(4)
Easements must be acquired for all flow lines, gathering lines and
flow back lines. The location of easements shall be shown in a pipeline
easement map.
(5)
Structures shall not be built over flow lines or gathering pipelines.
(6)
All pipelines shall be located underground. The location of all pipelines
must be marked with warning signs in accordance with industry standards.
Within the City of Richland Hills, the distance between such signs
shall not exceed 500 feet. In addition, during backfill of pipeline
excavations, "buried pipeline" warning tape shall be buried one foot
above the pipeline to warn future excavators of the presence of buried
pipeline.
(n)
Additional
safety and environmental requirements.
(1)
The drilling and production of gas and accessing the drill site or
operation site shall be in compliance with all state and federal environmental
regulations and shall not occur within environmentally sensitive areas.
(2)
Gas wells may have a target location or bottom-hole location that
is under an environmentally sensitive area when the gas well is drilled
directionally from a location outside the environmentally sensitive
area.
(3)
Each producing 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.
(4)
Each storage tank shall be equipped with a level control device that
will automatically activate a valve to close the well or automatically
call the operator's response personnel to manually close the well
in the event of excess liquid accumulation in the tank.
(5)
Storage tank facilities 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 1½
times the contents of the largest tank, and the impervious liner shall
be covered with at least one foot of sand. Drip pots shall be provided
at pump out connections to contain the liquids from the storage tank.
(6)
Tank battery facilities shall be equipped with a remote foam line
utilizing a 2½-inch national standard hose thread female inlet
connection in locations approved by the fire department. A lightning
arrestor system shall be installed according to the most current edition
of the National Electrical Code.
(7)
An approved hazardous materials management plan shall be on file
with the fire department. The costs of cleanup operations due to hazards
associated with a well site shall be the responsibility of the operator.
(8)
No saltwater disposal wells shall be located within the city.
(9)
All pits must have an impervious lining.
(10)
The following inspections shall be required:
a.
Surface casing:
An operator must set and cement sufficient
surface casing to protect all usable-quality water strata, as defined
by state law. The operator shall notify the gas well inspector in
writing at least 72 hours prior to setting and cementing surface casing.
In addition, the following shall be required:
1.
Centralizers must be used at an interval of one centralizer per 100
feet, or ten centralizers per 1,000 feet.
2.
New surface casing is required.
3.
Proper floating equipment shall be used.
4.
Class "H" or class "C" cement with accelerators shall be used.
5.
The operator shall circulate cement to surface; if not, the operator
shall cement with one-inch tubing and top off.
6.
The operator shall wait on cement a minimum of eight to 12 hours
prior to commencing further drilling operations.
7.
The operator shall test the blowout preventer before drilling out
of surface casing to 1,000 psi.
b.
Completion:
The operator shall notify the gas well inspector
in writing at least 72 hours prior to starting completion procedures
such as fracturing and perforating. The well must be equipped with
a blowout preventer before this operation is commenced. If a bridge
plug is set over a producing formation prior to additional completion,
it must be pressure-tested to a sufficient pressure to ensure that
it is not leaking.
c.
Pipeline:
The operator shall notify the gas well inspector
in writing at least 72 hours prior to the first sale.
d.
Final inspection:
After the site has been cleaned up
and screened, the operator shall notify the gas well inspector for
a final inspection. Prior to the final inspection, the operator must
provide the city with geographic coordinates of the well bore, using
the North American Datum 1983 (NAD 83), Texas State Plane - North
Central Zone (4202), in United States feet.
(11)
The gas well inspector shall conduct periodic inspections at least once a year of all permitted wells in the city to determine that the wells are operating in accordance with the requirements of this article and all regulations of the railroad commission. The operator shall pay to the city an annual inspection fee in the amount established in the fee schedule attached to the City Code as appendix A. If a violation of the applicable special use permit and associated site plan or the gas well permit is found during an annual inspection, the gas well inspector shall conduct a reinspection to determine whether such violation has been remedied, and the operator shall pay a reinspection fee in the amount established in the fee schedule attached to the City Code as appendix A.
(12)
If a gas field in the city is identified as a hydrogen sulfide (H2S)
gas field, the operator shall immediately cease operation.
(o)
Supplemental
drilling.
(1)
Supplemental drilling to deepen or directional drill a well that
has not been abandoned shall be conducted in accordance with the conditions
of the applicable special use permit and associated site plan and
the gas well permit for the well.
(2)
The operator shall provide the city with a copy of additional railroad
commission permits that allow drilling to a deeper depth.
(p)
Reworking
of well; notice.
Any operator who intends to rework a well using a drilling right, to fracture stimulate a well after initial completion, or to conduct seismic exploration involving explosive charges shall give written notice to the city at least 20 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 shall post a sign, in English and Spanish, 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. No well shall be reworked without the written approval of the gas well inspector. If the gas well inspector determines that an inspection is necessary, the operator must pay a reworking inspection fee in the amount established in the fee schedule attached to the City Code as appendix A, which fee shall be paid prior to the inspector giving consent for such rework to proceed.
(q)
Abandonment
of wells and pipelines.
(1)
Upon abandonment of a well or well site, within 60 days, the well
shall be plugged in accordance with railroad commission standards,
the site shall be cleaned and cleared of all material and equipment,
holes or excavations filled, and the land graded and returned to its
original condition including replanting of vegetation to match the
surrounding area. All well casings shall be cut and removed to a depth
of at least ten feet below the surface.
(2)
No structures shall be built within ten feet of an abandoned well.
(3)
Upon abandonment of a pipeline, within 60 days of abandonment, a
pipeline must be purged and plugged in accordance with the rules and
regulations of the State of Texas in effect at that time.
(r)
Remedies
of the city.
(1)
If an operator or his officers, employees, agents, contractors, subcontractors
or representatives fails to comply with the conditions of the applicable
special use permit and associated site plan or any requirement of
a gas well permit (including any requirement incorporated by reference
as part of the permit), or any applicable provisions of this Ordinance
or any other city ordinances, the city may give written notice to
the operator specifying the nature of the alleged failure and providing
the operator a specified 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. Notwithstanding the foregoing, if circumstances
warrant proceeding without notice, no notice shall be required. In
any case, failure to give such notice shall not prohibit the city
from pursuing any available remedy.
(2)
If the operator does not cure the alleged failure within the time
specified by the city, the city may notify the railroad commission
to request appropriate action. In addition, the city may pursue all
other remedies allowed by law, including, but not limited to the following:
a.
The city manager may suspend the gas well permit until the alleged
failure is cured; and
b.
The city manager may revoke the gas well permit if the operator fails
to initiate and diligently pursue a cure; and
c.
The city manager may seek recourse against the security delivered
pursuant to this article.
(3)
The operator may appeal a decision to suspend or revoke the gas well
permit to the city council.
(s)
Enforcement,
right of entry.
City staff and the gas well inspector
are authorized and directed to enforce this article and the provisions
of any gas well permit. Whenever necessary to enforce any provision
of this article or a gas well permit, or whenever there is reasonable
cause to believe there has been a violation of this article or a gas
well permit, city staff and/or the gas well inspector may enter upon
any property covered by this article or a gas well permit at any reasonable
time to inspect or perform any duty or requirement imposed by this
article. If entry is refused, the city shall have recourse to every
remedy provided by law and equity to gain entry.
[Ord. No. 1274-14, § 8(Exh.
H), 5-6-2014]
