City of Midland, TX General Offenses

Purpose.

The purpose of this section is to establish reasonable and uniform limitations, safeguards, and regulations for present and future operations on private and public property within the City of Midland related to the exploring, drilling, developing, producing, transporting, and storing of oil, gas, and other substances produced in association with oil and gas, in order to protect the health, safety and general welfare of the public; to minimize the potential impact to private property and mineral rights owners; to protect the quality of the environment; and to encourage the orderly production of available mineral resources. This Section shall apply to all oil and gas well permits issued by the City Council on or after March 1, 2007.

Definitions.

For the purposes of this Section, the following words and terms wherever and whenever used or appearing herein shall have the scope and meaning hereafter defined and set out in connection with each:

"Abandonment" means "abandonment" as defined by the Texas Railroad Commission and includes the plugging of the well and the restoration of any well site as required by this Section.

"Blowout Preventer" means a mechanical, hydraulic, or other device or combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith, which can be closed around the drill pipe, or other tubular goods which completely close the top of the casing and are designed for preventing blowouts.

"Building" means any structure which is built for the support, shelter, or enclosure or partial enclosure of persons, animals, chattels, or movable property of any kind including pools.

"Building official" means the building official of the City of Midland, or the building official's duly authorized representative.

"City" means the City of Midland, Texas.

"City Council" or "Council" means the City Council of the City of Midland, Texas.

"City Code" means the Midland City Code.

"City attorney" means the city attorney of the City of Midland.

"City manager" means the city manager of the City of Midland.

"Completion of Drilling, Re-drilling and Re-working" means the date the work is completed for the drilling, re-drilling or re-working and the crew is released by completing their work or contract or by their employer.

"Derrick" means any portable framework, tower, mast and/or structure which is required or used in connection with drilling or re-working a well for the production of oil and gas.

"Drilling" means digging or boring a new well for the purpose of exploring for, developing or producing oil, gas or other hydrocarbons, or for the purpose of injecting gas, water or any other fluid or substance into the earth.

"Drilling equipment" means the derrick, together with all parts of and appurtenances to such structure, every piece of apparatus, machinery or equipment used or erected or maintained for use in connection with drilling.

"Drill site" means all of the land area used during the drilling or re-working of a well or wells located there and subsequent life of a well or wells or any associated operation.

"Exploration" means geologic or geophysical activities, including seismic surveys, related to the search for oil, gas or other subsurface hydrocarbons.

"Fire department" means the fire department of the City of Midland.

"Gas" means any fluid, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rarefied state at standard temperature and pressure conditions and/or the gaseous components or vapors occurring in or derived from petroleum or natural gas.

"Occupied residence" means any single-family or multi-family dwelling occupied by an owner or lessee at the time an application for an oil and gas well permit is filed with the City of Midland. An occupied residence shall include a single-family or multi-family dwelling that has been occupied by the owner or lessee at any time during the six months prior to the application date of the oil and gas well permit.

"Occupied commercial structure" means any commercial structure occupied by an owner or lessee at the time an application for an oil and gas well permit is filed with the City of Midland. An occupied commercial structure shall include a structure that has been occupied at any time during the six months prior to the application date of the oil and gas well permit.

"Oil and gas well" means any well drilled, to be drilled, or used for the intended or actual production of oil or natural gas.

"Operation site" means the area used for development and production and all operational activities associated with oil and gas after drilling activities are complete.

"Operator" means, for each well, the person listed on the appropriate City of Midland application forms for an oil and 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 herein defined, is not the lessee under an oil and gas lease of any premises affected by the provisions of this Section, then such lessee shall also be deemed to be an operator. In the event that there is no oil and gas lease relating to any premises affected by this Section, the owner of the fee mineral estate in the premises shall be deemed an operator.

"Owner" means the fee simple title owner of the surface estate.

"Person" means an individual, natural person, firm, partnership, corporation, company, association, joint stock association, organization, agency, business trust, estate trust, and any other legal entity, and includes a trustee, receiver, assignee, administrator, executor, guardian, or other representative.

"Persons" means every person, firm, association, partnership, corporation or society; and shall include both singular and plural and the masculine shall include the feminine gender.

"Railroad Commission" means the Texas Railroad Commission.

"Residence" means a house, duplex, apartment, townhouse, condominium, mobile home or other building designed for dwelling purposes, including those for which a building permit has been issued on the date the application for an oil and gas well permit is filed with the City.

"Re-working" means re-completion or re-entry of existing well within the existing bore hole or by deepening or sidetrack operations which do not extend more than 150 feet from the existing well bore, or replacement of well liners or casings.

"Right-of-way" means any area of land within the City that is acquired by, dedicated to, or claimed by the City in fee simple, by easement, by prescriptive right or other interest and that is expressly or impliedly accepted or used in fact or by operation of law as a public roadway, street, sidewalk, alley, utility, drainage, or public access easement or used for the provision of governmental services or functions. The term includes the area on, below, and above the surface of the public right-of-way. The term applies regardless of whether the public right-of-way is paved or unpaved.

"Street" means any public thoroughfare dedicated to the public use and not designated as an alley or private access easement.

"Tank" means a container, covered or uncovered, used in conjunction with the drilling or production of oil, gas or other hydrocarbons for holding or storing fluids.

"Well" means a hole or holes, bore or bores, to any sand, horizon, formation, strata, or depth, for the purpose of producing any oil, gas, liquid hydrocarbon, brine water or sulphur water, or for use as an injection well for the secondary recovery, disposal, or production of any oil, gas, liquid hydrocarbons, brine water or sulphur water.

"Well drill bore" means the open hole or uncased portion of an oil and gas well. A well drill bore may refer to the inside diameter of the well bore wall, the rock face that bounds the drilled hole.

All technical or oil and gas industry words or phrases used herein and not specifically defined shall have that meaning customarily attributable thereto by prudent operators in the oil and gas industry.

Permits required.

It shall be unlawful and an offense for any person acting either for himself or acting as an agent, employee, or independent contractor to knowingly drill or participate in the drilling of any well or to re-enter any well which has previously been abandoned for any reason or to install any water and/or gas re-pressurizing or injection facility within the corporate limits of the City without a permit having first been issued by the authority of the City Council of the City in accordance with the terms of this Section. A separate permit shall be required for each well and each water and/or gas re-pressurizing or injection facility. A permit issued by the City Council shall be valid for one year from the date it is approved by the City Council, and is subject to be renewed in accordance with this Section. An oil and gas well permit must be approved by a resolution of the Midland City Council.

Designation of Official; Enforcement; Inspections; Access to Records.

The City manager shall designate an official (or officials), who is a certified peace officer, and who shall enforce the provisions of this Section. The official (or officials) shall have the authority to issue any orders, directives, warnings, or citations, required to carry out the intent and purpose of this Section and its particular provisions.

The designated official (or officials) shall have the authority, in accordance with applicable law, to enter and inspect any premises covered by the provisions of this Section to determine compliance with the provisions of this Section and all applicable laws, rules, regulations, standards or directives of the state. The designated official (or officials) may conduct periodic inspections of all permitted wells within the City to determine that the wells are operating in accordance with the requirements as set out in this Section and with regulations promulgated by the Texas Railroad Commission.

The designated official (or officials) shall have the authority to request and receive any records, including records sent to the Texas Railroad Commission, reports and the like, relating to the status or condition of any permitted oil and gas well necessary to establish compliance with the applicable oil and gas well permit.

It is recommended that the designated official (or officials) contact the local office of the Texas Railroad Commission to seek their assistance in enforcing applicable oil and gas regulations.

Operator's agent.

Every operator of any oil and gas well shall designate an agent, who is a resident of the City of Midland, upon whom all orders and notices provided in this Section may be served in person or by registered or certified mail. Every operator so designating such agent shall within ten calendar days notify the City in writing of any change of agent or the mailing address of such agent. Every operator shall attempt to maintain at all times during the term of an oil and gas well permit, an office address within the City of Midland.

No vested property rights of permit holder.

An oil and gas well permit does not create a property interest or a vested right in the permittee. This section of the Midland City Code creates no property interest or right of entitlement of any kind.

(G)

Application procedure.

The procedure for applying for an oil and gas well permit from the City of Midland shall be initiated with the filing of an application by the operator with the planning division of the City of Midland. The Application form to be completed by the operator, or its authorized agent, shall be in the form as described in Section (I) herein. There shall be two (2) levels of oil and gas well permits. The level shall be determined by the proximity of the proposed well drill bore to any occupied residence, occupied commercial structure, public building, public athletic field, property line of any property owned by a governmental entity, or any publicly dedicated right-of-way.

Level one.

Oil and gas well drill bores that are not within 1,000 feet of any occupied residence, occupied commercial structure, public building, public athletic field, property line of any property owned by a governmental entity, or any publicly dedicated right-of-way are classified as level one. Level one oil and gas well permit applications do not require a public hearing. Authorization of level one oil and gas well permits may be granted by a majority vote of the city council. The 1,000 feet shall be measured in a direct, straight line.

Level two.

Oil and gas well drill bores that are less than 1,000 feet, but more than 500 feet from any occupied residence, occupied commercial structure, public building, public athletic field, property line of any property owned by a governmental entity, or any publicly dedicated right-of-way shall require a public hearing held before the City Council. Prior to the 15th day before the hearing date, notice of the time and place of the public hearing shall be published in the official newspaper of the City. Prior to the tenth day before the hearing date, written notice of the time and place of the public hearing shall be sent to each owner, as indicated by the most recently approved tax roll from the Midland Central Appraisal District, of real property within a direct line radius of 1,000 feet from the proposed oil and gas well drill bore.

If a proposed oil and gas well permit is protested in accordance with this Subsection, the proposed oil and gas well permit must receive, in order to take effect, the affirmative vote of at least three-fourths of all members of the City Council. The protest must be written and signed by the owners of at least 20 percent of the area of the lots or land immediately adjoining the oil and gas drill bore and extending 1,000 feet from that area.

For the purposes of computing total land area described in (b) above, streets and alleys shall be included.

The Council shall not vote on granting or denying the permit at the Council meeting when the public hearing is held. The Council shall allow thirty (30) days for written input from the public and the operator, after the public hearing is concluded. All written material shall be submitted to the city manager. The Council shall vote on the permit at a regular meeting.

Prohibition.

No oil and gas well drill bore shall be allowed within 500 feet of any occupied residence, occupied commercial structure, public building, public athletic field, property line of any property owned by a governmental entity, or any publicly dedicated right-of-way, within the City of Midland.

An owner of private residences or commercial structures may request a variance from the City Council in order to receive a building permit for the construction of a residence or building within 500 feet of any previously permitted oil and gas well. Any application for such a variance must be accompanied by a notarized petition signed by the owners of the residence or commercial structure that seeks to obtain a building permit within 500 feet of the previously permitted oil and gas well. In the event a variance is granted by the city council, the council may authorize the building official to issue a building permit to the applicant. Any building permit issued under this paragraph shall include the following notation: "This building permit is issued for a structure to be constructed on a lot or tract located within five hundred (500) feet of a previously permitted oil and gas well."

In no event shall a building permit be issued by the City of Midland for any private residence or commercial building to be constructed, either in whole or in part, within 175 feet of a previously permitted oil and gas well.

For the purposes of this section, a "previously permitted oil and gas well" shall mean any oil and gas well that has been issued an oil and gas well drill permit under the authority of the City Council, regardless of whether or not any oil and gas well drilling has commenced at the permitted location. In the event an oil and gas well drill permit has expired without drilling commencing at the permitted location, or in the event the oil and gas well is abandoned as described by the Texas Railroad Commission and this Section, the location of the proposed or abandoned oil and gas well drill site shall not trigger the requirements of this Subsection when requesting a building permit.

A request for a variance under this Subsection shall require a public hearing held before the City Council. Prior to the 15th day before the hearing date, notice of the time and place of the public hearing shall be published in the official newspaper of the City. Prior to the 10th day before the hearing date, written notice of the time and place of the public hearing shall be sent to each owner, as indicated by the most recently approved tax roll from the Midland Central Appraisal District, of real property within a direct line radius of 500 feet from the previously permitted oil and gas well drill bore.

The Council shall not vote on granting or denying the variance at the Council meeting when the public hearing is held. The Council shall allow 30 days for written input from the public, the Operator, and the variance applicant, after the public hearing is concluded. All written material shall be submitted to the City Manager. The Council shall vote on the variance at a regular meeting. A majority vote of the Council is required to pass a resolution authorizing a variance under this Subsection.

(H)

Authority of City Council; considerations.

The Midland City Council shall have the power and authority to grant or deny any oil and gas well permit within the city limits of the City of Midland. The City Council shall consider the following when determining whether to grant or deny a permit for an oil and gas well within the City of Midland:

The particular character and value of the improvements already erected on the property or on the property adjoining the site of the proposed oil and gas well.

Public health and safety issues concerning the particular location of the proposed oil and gas well.

Any special circumstances existing on the property on which the application is made related to the size, shape, area, topography, surrounding conditions and location that do not apply generally to other property in the vicinity.

Whether the particular location of the proposed oil and gas well would be injurious to the health and safety of the inhabitants in the immediate area of the City or to a substantial number of such inhabitants.

Whether an oil and gas well permit is necessary to permit the applicant the same rights in the use of his property that are presently enjoyed by other properties in the vicinity.

Whether the granting of an oil and gas well permit on the specific property will adversely affect any other feature of the comprehensive master plan of the City of Midland.

Whether the permit, if granted, will have a material detriment to the public welfare or injury to the use, enjoyment, or value of property in the vicinity.

Whether the drilling of the proposed oil and gas well would conflict with the orderly growth and development of the City of Midland.

Whether there are alternative well site locations.

Whether the operations proposed are consistent with the health, safety and welfare of the public when and if conducted in accordance with oil and gas well permit conditions to be imposed.

Whether the operations proposed are consistent with protecting the ecological integrity and environmental quality, including protection of surface and ground water sources, of potentially impacted environmentally sensitive areas.

Whether there is reasonable access for the City of Midland fire personnel and fire fighting equipment.

Whether the impact upon the adjacent property and the general public by operations conducted in compliance with the oil and gas well permit conditions are reasonable and justified, balancing the following factors:

The reasonable use of the mineral estate by the mineral estate owner(s) to explore, develop, and produce the minerals; and

The availability of alternative drill sites.

Whether the applicant is a reasonable and prudent operator. The Council shall consider the number of citations issued for previous violations, convictions in municipal court, notice from City officials for non-compliance, failure to promptly rectify violations, conditions of well sites previously permitted, and input from citizens or the applicant; the Request for Inspection and Extension of Permit results; and infractions or violations submitted to or found by the Texas Railroad Commission on previous oil and gas wells permitted and drilled within the City of Midland.

(I)

Permit application and filing fee.

Every application for a permit to drill or participate in the drilling of any oil and/or gas well, or to re-enter, re-drill or re-work any well for any reason, or to install any water and/or gas re-pressurizing or injection facility (hereinafter "oil and gas operations") within the corporate limits of the City shall be in writing; shall be signed by the operator or some person duly authorized to sign on the operator's behalf before a notary public; shall be filed with the city secretary; shall be accompanied by a non-refundable filing fee of $1,500.00; and shall only be considered when complete. A separate complete application and permit shall be required for each well, as well as the re-entering, re-drilling or re-working of any existing well.

No application shall be accepted for filing until it is complete and all required fees have been paid. Each application shall include full information, and will be considered complete only when ALL of the following is included:

The date of the application.

The name and address of the operator.

Name of operator's registered agent.

The address within the City of Midland, Texas, of the office of operator's registered agent, including telephone number and fax number. Operator's registered agent must have an office within the corporate limits of the City of Midland, Texas.

A title opinion prepared by an attorney licensed by the State of Texas indicating that applicant has an ownership interest in the mineral estate that is the subject of the oil and gas well permit application.

The name and address of the mineral estate lessor.

A title opinion prepared by an attorney licensed by the State of Texas listing the name(s) and address(es) of all surface owners within 1,000 feet of the proposed well bore (Rather than along any right-of-way, this distance shall be measured directly, in a straight line (hereinafter "measured directly")).

Description of the current surface use within 1,000 feet, measured directly, of the proposed location for the well drill bore.

An accurate legal description of the surface property to be used for any oil and gas operations, the parcel and the production unit and name of the geologic formation as used by the Railroad Commission. Any property recorded by plat should reference subdivision, block and lot numbers.

A location site plan, drawn to scale, and produced by a professional land surveyor licensed in the State of Texas, showing the following:

The proposed operation site;

The proposed location of the well drill bore;

The proposed routing of any gathering lines;

The location of all improvements and equipment, and other facilities, including, but not limited to, tanks, pipelines, separators, and storage sheds;

Lot lines shown on any recorded subdivision plat for the area;

Right-of-way or public easement boundaries;

city limit boundaries;

Any residence, commercial structure, public building, property line of any property owned by any governmental entity or any publicly dedicated right-of-way or any permanent accessory structure used in connection with such residence, structure or building surrounding such proposed drill site, and the measured distance from the proposed well bore to each residence, structure or building, if within a distance of 1,000 feet (measured directly);

Impacted vegetation;

Creeks and other topographic features; and

Proposed fencing and landscaping.

The proposed depth of the well.

Proposed hole size, casing program and cementing program. The surface and intermediate portions of the hole shall have cement circulated to the surface of the hole.

A map showing proposed transportation route and road for equipment, chemicals or waste products used or produced by the oil and gas operations. These are the only roads that may be used unless an amended route plan is filed and approved.

Proposed well name.

A description of public utilities required during drilling and operation.

A description of the water source to be used during drilling.

A copy of the approved Railroad Commission permit to drill together with attachments and survey plats which are applicable to the drill and operation sites.

A copy of the determination by the Texas Commission on Environmental Quality of the depth of usable quality ground water.

Irrevocable Letter of Credit in accordance with Subsection (J) 2 of this Section.

Insurance Certificate(s) in accordance with Subsection (J) 3 of this Section.

A copy of approved Railroad Commission Form 1, Permit to Drill, shall be furnished to the city secretary prior to commencement of drilling operations.

A drainage plan approved by the city engineer.

An emergency action response plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of oil and gas wells. Said plan shall use extensive guidelines as established by the Railroad Commission, Texas Commission on Environmental Quality, Department of Transportation, and/or the Environmental Protection Agency. Plan should include "drive-to-maps" from public rights-of-way to drill site.

A hazardous materials management plan shall be submitted and be on file with the fire department.

The names, local physical addresses (not P.O. Box numbers), and local telephone numbers of three (3) individuals who are responsible to ensure compliance with all conditions of the oil and gas well permit, along with any applicable ordinances. Each of said individuals must provide to the city secretary a notarized statement that the individual understands and agrees that he or she is responsible for ensuring compliance with all conditions of the oil and gas well permit, along with any applicable laws, regulations and ordinances by any and all employees, contractors or subcontractors of operator at the oil and gas operation site. Further, each must state before a notary that, in the event said individual is for any reason relieved of his or her position regarding said responsibilities, that the name, local address and local telephone number of a responsible replacement will be provided to the city secretary.

The name and address, including a 24-hour phone number of the person to be notified in case of an emergency.

A list and location of each well the operator has permitted in the city. The list and location shall include any well that the Operator owns an interest in. The operator shall certify that the well(s) comply with all applicable permits and ordinances. An application for a new permit may not be considered until all well(s) previously authorized by permit shall be brought into compliance with the applicable permit or ordinances.

A list of all available alternative locations from which the operator may reach the same mineral estate and potentially drill a producing oil and/or gas well.

A notarized statement signed by the operator, or designated representative, that the information submitted with the application is, to the best knowledge and belief of the operator or designated representative, true and correct.

Tax certificates. Tax certificates from the Midland Central Appraisal District (indicating that all taxes on personal and real property, including minerals, owned by the applicant have been paid to the current year) must be submitted with the application.

If the applicant proposes a landscaping plan or fencing plan as stated in 6-1-2(L)3 or 6-1-2(L)4.c, the proposed plan must be attached. An estimate of costs and a site plan showing the fencing materials prepared by a fencing contractor must also be attached.

A road repair agreement must be attached which has been approved by the applicant. However, the approval of any road repair agreement is subject to Council approval by a separate resolution.

In connection with its review of an application for an oil and gas well permit, the City Council may determine that it is necessary to hire an oil and gas specialist to assist the Council in reviewing the application. If such a determination is made, the City Council will provide the Operator with a written "scope of work" that the Council proposes for such specialist. The City Council and the Operator will attempt to agree upon the "scope of work"; however, the decision of the City Council shall control. The operator shall be responsible to pay all fees, costs and expenses associated with the retention of and services rendered by the specialist. All work performed by the specialist shall be itemized (including a description of the work and the amount of time spent), and such itemization shall be provided to the operator.

(J)

General conditions of all oil and gas well permits.

General obligations of operator.

The operator shall be required to:

Comply with the terms and conditions of this Section, the Midland City Code, the rules and regulations of the Texas Railroad Commission, and any other state or federal agency that enforces land use, mineral use, or environmental protection regulations.

Promptly clear drill and operation sites of litter, trash, waste and other substances used, allowed, or occurring in the operations, and after abandonment or completion, grade, level, and restore such property to the same surface conditions as nearly as practicable as existed before operations.

Indemnify and hold harmless the City of Midland, the City's officers, agents and employees, from any and all claims, losses, damages, causes of action, suits, and liability of any kind, including all expenses of litigation, court costs, and attorney's fees, for injury to or death of any person, or for damage to any property arising out of or in connection with the work done by operator under an oil and gas well permit:

Where such injuries, death or damages are caused by operator's sole negligence or the joint negligence of the operator and any other person or entity; and

Regardless of whether such injuries, death or damages are caused in whole or in part by the negligence of operator.

Release the City from any and all demands, claims, damages, or causes of action of any kind, whatsoever, which operator has or might have in the future, including any negligence or tort claims.

Promptly pay all fines, penalties and other assessments imposed due to breach of any of the conditions herein.

Promptly restore to its former condition any public property damaged by the oil and gas operation.

Operator shall not, either directly or indirectly, assign all or any part of an oil and gas well permit, without the prior written consent of the City Council. The issue of whether or not to grant consent to an assignment is in the sole discretion of the City Council. The assignment of the permit shall not relieve the Operator of any liability or requirements under the permit. A new application, including the required insurance certificates and letter of credit shall be submitted with any request for assignment. No assignment shall be valid until the assignee obtains a new oil and gas well permit from the City Council.

Operator shall execute a "road repair agreement" between itself and the City of Midland and submit all necessary information and insurance and guarantees to the City prior to the issuance of any oil and gas well permit under this Section.

Irrevocable letter of Credit.

Prior to the issuance of an oil and gas well permit, the operator shall provide the city attorney with a guarantee in the form of an irrevocable letter of credit that satisfies the following:

The letter of credit shall be issued by a reliable bank authorized to do business in the State of Texas;

The letter of credit shall be effective starting on or before the effective date of the oil and gas well permit;

The letter of credit shall be in the amount of seventy-five thousand dollars ($75,000.00);

The letter of credit shall remain in full force and effect for a period of three years; and

The letter of credit shall authorize the City of Midland to draw upon such credit in the event the city manager, or his designee, determines said credit is needed to remedy any violation of this Section.

If the well is still producing or if the well has not been abandoned or plugged, the operator must renew the letter of credit on or before 120 days prior to the expiration of the letter of credit.

The City of Midland may draw upon the letter of credit to recover costs of repairs, modifications, or construction to remedy any violations by the Operator under this Section. The City may make partial or full draws of the letter of credit. The City may draw upon the letter of credit in the event the City has not received a new letter of credit within the 120-day renewal time period required above.

The operator shall maintain the principal amount of $75,000.00 in the form of a letter of credit at all times throughout the term of the permit. In the event such letter of credit is not restored to $75,000.00 within ten days after the date of the reduction of the letter of credit, the city may draw and receive the remaining balance of the letter of credit, and the oil and gas well permit shall be suspended on such date and the operator's right to operate under the oil and gas well permit shall immediately cease until the Operator files the required letter of credit.

Insurance.

In addition to the letter of credit required above, the operator shall carry a policy or policies of insurance issued by an insurance company or companies authorized to do business in the State of Texas. In the event such insurance policy or policies are cancelled, any oil and gas well permit issued under this Section shall be suspended on such date of cancellation and the Operator's right to operate under such oil and gas well permit shall immediately cease until the operator files additional insurance as required herein.

General requirements applicable to all polices.

The City, the City's officials, employees, agents and officers shall be endorsed as an "additional insured" on all policies, except under operator's workers compensation policy.

All policies shall be written on an occurrence basis, except for environmental pollution liability (seepage and pollution coverage) and excess and umbrella liability, which may be on a claims-made basis.

All policies shall be written by an insurer licensed to do business in the State of Texas.

Deductibles shall be listed on the certificate of insurance and shall be on a "per occurrence" basis unless otherwise stipulated herein.

Certificates of Insurance shall be delivered to the City of Midland, P.O. Box 1152, Midland, Texas 79702, Attn: City Attorney's Office, evidencing all the required coverages, including endorsements, prior to the issuance of an oil and gas well permit under this Section.

vi.

All policies shall be endorsed with a waiver of subrogation providing rights of recovery in favor of the City.

vii.

Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirements specified herein.

viii.

Each policy shall be endorsed to provide the city a minimum 30-day notice of cancellation, non-renewal, and/or material change in policy terms or coverage. A ten-day notice shall be acceptable in the event of non-payment of premium.

ix.

During the term of any oil and gas well permit issued hereunder, the operator shall report, in writing, within 30 days of the occurrence, to the city manager, any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss.

Upon request, certified copies of all insurance policies shall be furnished to the City.

Standard commercial general liability policy. This coverage must include premises, operations, blowout or explosion, products, completed operations, sudden and accidental pollution, blanket contractual liability, underground resources damage, broad form property damage, independent contractors protective liability, accidental death and personal injury. This coverage shall be a minimum combined single limit of $1,000,000 per occurrence for bodily injury, accidental death, and property injury.

Excess or umbrella liability.

$5,000,000	Excess, if the operator has a stand-alone environmental pollution liability (EPL) policy.
$10,000,000	Excess, if the operator does not have a stand-alone EPL policy. Coverage must include an endorsement for sudden or accidental pollution. If seepage and pollution coverage is written on a "claims made" basis, the operator must maintain continuous coverage and purchase extended coverage period insurance when necessary.

Environmental pollution liability coverage. Operator shall purchase and maintain in force for the duration of any oil and gas well permit issued hereunder, insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; cleanup costs; and defense, including costs and expenses incurred in the investigation, defense or settlement of claims; all in connection with any loss arising from the insured site. Coverage shall be maintained in an amount of at least $1,000,000 per loss, with an annual aggregate of at least $10,000,000.

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

Control of well coverage. The policy should cover the cost of controlling a well that is out of control, redrilling or restoration expenses, seepage and pollution damage as first party recovery for the operator and related expenses, including, but not limited to, loss of equipment, experts and evacuation of residents.

$5,000,000

per occurrence/no aggregate, if available, otherwise an aggregate of ten million ($10,000,000) dollars.

Workers compensation and employers liability insurance.

Workers compensation benefits shall be Texas statutory limits.

Employers liability shall be a minimum of $500,000.00 per accident.

Such coverage shall include a waiver of subrogation in favor of the City of Midland and provide coverage in accordance with applicable state and federal laws.

Automobile liability insurance.

Combined single limit of $1,000,000.00 per occurrence for bodily injury and property damage.

Coverage must include all owned, hired and not-owned automobiles.

Certificates of insurance.

The company must be admitted or approved to do business in the State of Texas.

The insurance set forth by the insurance company must be underwritten on forms that have been approved by the Texas State Board of Insurance or ISO or an equivalent policy form acceptable to the City, with the exception of environmental pollution liability and control of well coverage.

Set forth all endorsements and insurance coverage according to requirements and instructions contained herein.

Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the city. All policies shall be endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT THIRTY (30) DAYS ADVANCE WRITTEN NOTICE TO THE OWNER AND THE CITY, EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE, TEN (10) DAYS ADVANCE WRITTEN NOTICE IS REQUIRED".

Original endorsements affecting coverage required by this section shall be furnished with the certificates of insurance.

(K)

Specific conditions of all oil and gas well permits; on-site requirements.

Abandoned wells.

All wells shall be abandoned in accordance with the rules of the Texas Railroad Commission and pursuant to Subsection (N) of this Section.

Automated audible alarm system.

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

Blowout prevention.

In all cases, ram-type and annular blowout preventers shall be used on all wells being drilled, worked-over or in which tubing is being changed. Protection shall be provided to prevent blowout during drilling operations as required by and in conformance with the requirements of the Texas Railroad Commission and the recommendations of the American Petroleum Institute. The operator must equip all drilling wells with annular blowout preventers, as well as flow lines and valves commensurate with the working pressures involved as required by the Texas Railroad Commission. Annular blowout preventers shall be rated at no less than 500 pounds of working pressure. Each hydraulic-activated blowout preventer shall be a double-ram rotating head design with blinds and pipe rams. Prior to commencing drilling operations, each annular blowout preventer shall be tested by an independent third-party chosen by the city manager or his designee. Testing expenses shall be the responsibility of the operator. The operator shall provide a complete report of the well blowout prevention test within 15 days of the test.

Casing.

The surface and intermediate portions of the oil and gas drill hole shall have cement circulated to the surface of the hole. All surface casing must comply with all applicable rules of the Texas Railroad Commission.

Compliance.

Operator shall comply at all times with all applicable federal, state and City requirements.

Discharge.

No person shall place, deposit, discharge, or cause or permit to be placed, deposited or discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substances or any refuse including wastewater or brine from any oil and gas operation or the contents of any container used in connection with any oil and gas operation in, into, or upon any public right-of-way, alleys, streets, lots, storm drain, ditch or sewer, sanitary drain without permits from the appropriate city departments, or any body of water or onto any private property in the City of Midland.

Drilling notice.

The operator shall provide at least a 48-hour notice to the city manager before the start of drilling operations. The operator shall provide at least a 48-hour notice to all surface property owners within 1000 feet of the drill site before the start of drilling operations.

Drill stem testing.

No drill stem testing shall be allowed.

Dust, vibration, odors.

All drilling and production operations shall be conducted in such a manner as to minimize, so far as practicable, dust, vibration, or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for the production of oil, gas and other hydrocarbon substances in urban areas. All equipment used shall be so constructed and operated so that, vibrations, dust, odor or other harmful or annoying substances or effect will be minimized by the operations carried on at any drilling or production site or from anything incident thereto, to the injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in industry standards of drilling and production in this area shall be adopted as they become available if capable of reducing factors of dust, vibration and odor.

Electric lines.

All electric lines to production facilities shall be buried underground. All electric lines going under city roadways must be bored and encased pursuant to city standards. Any such plans must be submitted to the city manager for approval.

Electric motors.

Only electric prime movers or motors shall be permitted for the purpose of pumping wells. No electric power shall be generated on location. All electrical installations and equipment shall conform to the city ordinances and the appropriate national codes.

Emergency response plan.

Prior to the commencement of any oil or gas production activities, operator shall submit to the city manager an emergency response plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of oil and gas wells. Said plan shall use existing guidelines established by the Texas Railroad Commission, Texas Commission on Environmental Quality, Department of Transportation and/or the Environmental Protection Agency and City Fire Code. A copy of the emergency response plan shall be kept on site.

Equipment painted.

All production equipment on the site shall be painted beige and maintained at all times, including pumping units, storage tanks, buildings and structures. The City shall regularly inspect all painted structures and inform operator when repainting is necessary. Operator shall repaint within 60 days written notice from City. When requiring re-painting of such facilities, the city manager shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance.

Explosives.

Use of an explosive perforating gun during completion operations shall be allowed.

Fire notice.

In the event of a fire or discovery of a fire, smoke, or unauthorized release of flammable or hazardous materials on any property, the operator shall immediately report such condition to the fire department in accordance with the City of Midland Fire Code. The reporting limits for hazardous materials release shall conform to the requirements of the Texas Railroad Commission and not exceed any state or federal permitting limit. A copy of the hazardous materials release records required by TCEQ shall be forwarded to the Fire Marshal on an annual basis.

Fire prevention; sources of ignition.

Firefighting apparatus and supplies as approved by the fire department and required by any applicable federal, state, or local law shall be provided by the operator, at the operator's cost, and shall be maintained on the drilling site at all times during drilling and production operations. The operator shall be responsible for the maintenance and upkeep of such equipment. Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All well heads shall contain an appropriately labeled emergency shut off valve to the well distribution line.

Fracing operations.

No fracing or formation fracture stimulation operations may take place before 8:00 a.m. or after 5:00 p.m. (or after 6:00 p.m. between May 1 and October 1).

Fresh water wells.

The measurements required by this Subsection shall be in a direct line from the closest oil and gas well drill bore to the fresh water well drill bore.

Operator shall provide the city manager with a "pre-drilling" and "post-drilling" water analysis and flow rate from any existing fresh water wells within 1,000 feet of the permitted oil and gas well. If the owner of the adjoining property refuses entry for the purpose of testing any water well, the operator shall certify such to the city manager.

Operator shall conduct and fund biannual testing for water wells located within 1,000 feet of its oil and gas well. For those individuals wishing to participate in the program, Operator shall require an independent third party test of the applicable wells prior to drilling operations. This program shall continue for the production life of the well plus five years for a producing well, or for a period of one year for a dry hole.

A copy of the Texas Water Development Board permit shall be provided to the city manager along with the geographic coordinates of every water well within one-thousand (1000) feet of the oil and gas bore.

A copy of all plugging and abandonment reports filed with the state and/or transfer of ownership notices shall be provided to the city manager.

Any such well shall be drilled by a licensed driller certified by the Texas Department of Licensing and Regulation and in full compliance with Texas Occupations Code, Title 12, Chapters 1901 and 1902.

Operator shall ensure that the City receives a copy of the well log, as referred to in Texas Occupations Code, Section 1901.251, within 75 days of the date any such well is completed, deepened, or altered in any way.

Compressors.

No onsite compressor used to "lift gas" shall be used. No compressor of any type shall be used. In the event operator determines the use of such compressor is necessary, a detailed plan shall be submitted by operator to the city council for consideration. An on-site compressor plan shall include the following information:

The physical size of the compressor;

The power source of the compressor;

The horsepower of the compressor;

The noise of the compressor; and

The manufacturer of the compressor.

No compressor of any type shall be used unless a plan is approved by the City Council.

Gas emission or burning restricted.

Operator shall not allow, cause or permit gases to be vented into the atmosphere or to be burned by open flame except as provided by law or as permitted by the Texas Railroad Commission. If the venting of gases into the atmosphere or the burning of gases by open flame is authorized as provided by law or as permitted by the Texas Railroad Commission, then such vent or open flame shall not be located closer than 300 feet from any-building not used in operations on the drilling site and such vent or open flame shall be screened in such a way as to minimize detrimental effects to adjacent property owners. Operator shall provide notice to the fire marshall prior to any open flaring of gas. Gas may not be flared unless for a limited time when completing, or recompleting a well, and only if flaring will not constitute a fire hazard to other property owners. If flaring gas, it shall not be burned as a rate greater than 3,000 mcfd. No gas may be flared between the hours of 7:00 p.m. and 7:00 a.m., except in an emergency.

Gas processing onsite.

Except for a conventional gas separator or line heater, no refinery, processing, treating, dehydrating or absorption plant of any kind shall be constructed, established or maintained on the premises without prior written consent of the city manager.

Grass, weeds, trash.

All drill and operation sites shall be kept clear of high grass, weeds, and combustible trash within a radius of 100 feet around any tank or tanks or producing wells.

Hazardous plan.

Hazardous materials management plan (HMMP) and all material safety date sheets (MSDS) for all hazardous materials that will be located, stored, transported and/or temporarily used on the operations site shall be submitted to, and must be approved by the City Manager.

Lights.

Except under emergency circumstances, Operator shall not operate any lights located at the drill site. To the extent practicable, and taking into account safety considerations, emergency site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within 300 feet. This paragraph does not apply during initial drilling operations.

Monitoring for H 2 S gas. Equipment for the monitoring of H 2 S gas shall be used during initial drilling. Upon completion, a permanent monitoring station shall be installed and a thirty (30) day maintenance and inspection program shall be established to ensure that the monitoring equipment remains functional in accordance with the Texas Railroad Commission rules and regulations.

Muffling exhaust.

Exhaust from any internal combustion engine or compressor, stationary or mounted on wheels, used in connection with the drilling of any well or for use on any production equipment shall not be discharged into the open air unless it is equipped with an exhaust muffler, or mufflers or an exhaust muffler box constructed of noncombustible materials sufficient to suppress noise and disruptive vibrations and prevent the escape of obnoxious gases, fumes or ignited carbon or soot.

Pits.

The following applies for pits used for drilling and completion operations:

Only steel working pits shall be used; however, if approved by Council, reinforced (or woven) high density polyethylene (HDPE)-lined earthen reserve pits may be used provided the HDPE lining is a minimum thickness of 12 millimeters. In the event HDPE-lined reserve pits are used, the operator shall, within 30 days of installation, provide the city manager with a copy of an invoice showing the cost and thickness of the lining used. All steel pits shall be removed from the property when drilling is completed.

All pits and contents shall be de-watered following the schedule established by the statewide rules of the Texas Railroad Commission. All lined reserve pits shall have the lining cut to the water or mud edge of the pit, hauled out and transported to an approved disposal site.

No drill cuttings shall be buried on site, unless approved by the city manager. No rotary mud and wastewater generated during drilling operations may be buried on site unless permitted by the Texas Railroad Commission and approved by the city manager after submission of an acceptable pre-burial test plan.

No pit shall be placed in a floodplain without obtaining a floodplain development permit from the City Department of Development Services.

No fresh water pit may be placed in any City recognized drainage way, FEMA floodplain or floodway. Construction of the fresh water pit must comply with all city, state and federal regulations.

Every drill pit used for drilling operations shall be fenced on all open sides during drilling operations and enclosed after drilling operations have ceased.

No flowback wastewater produced by frac operations shall be placed in any open pit without a copy of a valid state permit submitted to the city manager.

Fresh water fracing pits, not transferred to the surface owner, shall be closed and the site restored within one hundred twenty (120) days after completion operations have ceased unless extended by the city manager.

Salt water wells.

No salt-water disposal wells shall be located within the City of Midland.

Signs.

A sign shall be immediately and prominently displayed at the gate on the temporary and permanent site fencing erected pursuant to Subsection (L)2 of these specific conditions. Such sign shall be durable material, maintained in good condition and, unless otherwise required by the Texas Railroad Commission, shall have a surface area of not less than two square feet nor more than four square feet and shall be lettered with the following:

Well name and number;

Name of operator;

The emergency 911 number;

Telephone numbers of two persons responsible for the well who may be contacted in case of emergency; and

A 24-hour phone number answered by an answering service.

Permanent weatherproof signs reading "DANGER NO SMOKING OR OPEN FLAME ALLOWED IN THIS AREA" shall be posted immediately upon completion of the well site fencing at the entrance of the well site and tank battery or in any other location approved or designated by the fire chief of the City. Sign lettering shall be four inches in height and shall be red on a white background or white on a red background. Each sign shall include the emergency notification numbers of the fire department and the operator, well and lease designations required by the Texas Railroad Commission.

Provide a National Fire Prevention Association (NFPA) 704 diamond hazard identification signs are required on each tank and at the entrance to the site adjacent to the operator's sign. A label must be located on each tank indicating exact chemicals that may be contained in the tank. Text shall be minimum 6 inches in height, contrasting with the background color.

Storage of equipment.

On-site storage is prohibited on the operation site. No equipment shall be stored on the drilling or production operation site. Lumber, pipes, barrels, trucks, trailers, automobiles, tubing and casing shall not be left on the operation site except when drilling or well servicing operations are being conducted on the site.

No vehicle or item of machinery shall be parked or stored on any street, right-of-way or in any driveway, alley or upon any operation site which constitutes a fire hazard or an obstruction to or interference with fighting or controlling fires except that equipment which is necessary for drilling or production operations on the site. The fire department shall be the entity that determines whether any equipment on the site shall constitute a fire hazard.

Storage tanks.

All tanks and permanent structures shall conform to the American Petroleum Institute (A.P.I.) specifications, unless other specifications are approved by the fire chief. All storage tanks shall be equipped with a secondary containment system including lining with an impervious material. The secondary containment system shall be a minimum of three (3) feet in height and 1½ times the contents of the total tank volume. Drip pots shall be provided at the pump out connection to contain the liquids from the storage tanks. No storage tank shall be over ten feet in height. All storage tanks shall be low-profile tanks. All storage tanks shall be built on a concrete slab or according to a plan approved by the Midland City Council.

Temporary flowback tanks shall be removed within 90 days after completion of the well at the pad site unless permission is obtained from the city manager to extend the time period for no more than 30 days.

All tanks shall be set back pursuant to the standards of the Texas Railroad Commission and the National Fire Protection Association, but in all cases, shall be at least 200 feet from any public street, road, highway or future street, or right-of-way and 500 feet from a structure. Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank.

No meters, storage tanks, separation facilities, or other aboveground facilities, other than the well head and flow lines, shall be placed in a floodway identified by FEMA on the most current FIRM or the 100-year floodplain without a floodplain development permit obtained from the Department of Development Services.

Tanks must be at least 500 feet from any residence, religious institution, public building, hospital building, school or combustible structure.

Tank battery facilities.

Tank battery facilities shall be equipped with a lightning arrestor system.

Valves.

Each well must have a shutoff valve to terminate the well's production. The fire department shall have access to the well site and the shut-off valve in an emergency.

Waste disposal.

Unless otherwise directed by the Texas Railroad Commission, all tanks used for storage shall conform to the following:

Operator must use portable closed steel storage tanks for storing all fluids from the well. Tanks must meet the American Petroleum Institute standards. All tanks must have a vent line, flame arrester and pressure relief valve. All tanks must be enclosed by a fence as required by Subsection (L) herein. All tanks shall be low-profile tanks. No tank shall exceed ten feet in height. No tank battery shall be constructed within 500 feet of any dwelling.

Drilling mud, cuttings, liquid hydrocarbons and all other field waste derived or resulting from or connected with the drilling, re-working or deepening of any well shall be discharged into a steel pit. All disposals must be in accordance with the rules of the Texas Railroad Commission and with a plan submitted to and approved by the city manager.

Unless otherwise directed by the Texas Railroad Commission, waste materials shall be removed from the site and transported to an off-site disposal facility not less often than every 30 days. Water stored in on-site tanks shall be removed as necessary.

All waste shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the state, the conditions of this permit, and any applicable ordinance of the City.

Work hours for site development.

No construction activities involving the excavation of, demolition of, alteration to, or repair work on any access road or pad site shall occur before 8:00 a.m. or after 5:00 p.m. (or 6:00 p.m. between the dates of May 1 and October 1).

36.

Wellhead status after fracing.

All wellheads between drilling and tank battery construction shall be:

Completed through the production casing flange with a metal plate or blind flange bolted across the head;

Surrounded with a six-foot feet tall chain link fence having a gate and lock;

The gate shall be locked at all times, except when the operator is involved in active operations;

The cellar shall be filled or closed; and

The Bradenhead shall be piped to the surface and open to the atmosphere or have an observable and adequate pressure gauge with operable test valve.

37.

Inspections.

In accordance within applicable law, the city manager, or his designee, shall have a right of entry to the drill site and may, at his discretion, visit the drill site to make sure operator is in compliance with the requirements of this section.

38.

Violation.

In the event a violation of this ordinance is determined by the city's official (or officials), the city may act in any or all of the following ways:

The city, through its designated official (or officials), may issue a notice of violation to the operator, its agent, agents, employees or independent contractors (whether on site or not), or to any person participating in the drilling of the well. Such notice may include a citation to appear before the Midland Municipal Court.

If the city manager, or his designee, finds the Operator to be in violation of any requirement of the applicable oil and gas well permit, then the City reserves the right after giving 72 hours written notice to the operator regarding such violation, to draw upon the letter of credit as outlined in Subsection (J) of this Section, in order to remedy such violation. In the event the City makes a claim on the letter of credit pursuant to the terms hereof, reinstatement of the full amount of the letter of credit shall be a condition to the cure of the violation leading to such claim. Alternatively, if the city manager finds the operator to be in violation of any requirement of the applicable oil and gas well permit, the City Manager shall give written notice to the Operator that unless all violations are corrected within 14 days, the city manager shall recommend to the City Council that the oil and gas well permit be cancelled by the City Council. If the City Council determines to consider the cancelling of the permit, it shall give the operator written notice of the date and time of the hearing and shall give the operator the opportunity to be heard and present facts the operator deems relevant. The cancelling of a permit requires the majority vote of the City Council.

(L)

Fencing and landscaping.

Fences/walls.

Fences shall not be required on drill sites during initial drilling, completion or re-working operations as long as 24-hour on-site supervision is provided. A secured entrance gate shall be required. All gates are to be kept locked when the Operator or his employees are not within the enclosure. Within 30 days after production has been established, all operation sites shall be completely enclosed by a solid masonry wall. Said masonry fence shall meet the following requirements:

All walls shall consist of brick or mission stone.

All walls shall be at least eight feet in height.

The design of the walls shall be compatible with the facilities, buildings and structures on and adjacent to the drill site.

Gate specifications.

All masonry walls shall be equipped with at least one gate. The gate shall meet the following specifications:

All gates shall be constructed from a wrought-iron material painted to match the enclosed tanks and associated structures.

Each gate shall be not less than 12 feet wide and be composed of two gates, each of which is not less than six feet wide, or one sliding gate not less than 12 feet wide. If two gates are used, gates shall latch and lock in the center of the span.

The gates shall be provided with a combination catch and locking attachment device for a padlock, and shall be kept locked except when being used for access to the site.

Operator must provide the City of Midland Fire Chief with a "Knox Padlock" or "Knox Box with a key" to access the well site to be used only in case of an emergency.

Operator submitted plan.

The operator may propose an alternative plan in lieu of the requirements outlined in paragraphs 1 and 2 above. A fencing plan submitted pursuant to this paragraph shall describe the building materials, dimensions, and locations of the proposed fence/walls and gates. Such a plan should take into consideration the surrounding area and neighborhood. The City Council may consider any proposal prepared in accordance with this paragraph. Any alternative plan shall not be effective unless approved by the Midland City Council. In any event all gates must be kept locked when the operator or his employees or agents are not within the enclosed portion of the fence.

Landscaping.

The City of Midland will require tree preservation and/or planting measures.

A minimum number of eight trees shall be required to be planted within 25 feet from the outside perimeter of the wall or walls required herein.

At least 75 percent of the trees shall be evergreen.

The minimum size of each tree planted will be at least four inches in diameter measured one foot above ground level.

All trees that die within three years of the date of project completion will be replaced by another replacement tree. The replacement tree carries the same three-year replacement requirement. A replacement of any tree that dies within three-years of planting will be replaced by the operator or agent and a new three-year guarantee will begin at the time of replacement.

The following list of trees is considered desirable. Planting of trees for this list is acceptable. Other trees will be considered by the city manager. The approval of additional species will be judged on adaptability, long-term health and growing characteristic of the tree type.

Scientific Name	Common Name
Pinus eldarica	Afghan Pine, Mondell Pine
Pinus11 Sylvestris	Russian Pine
Ulmas Crassifolia	Cedar Elm

Operator may submit a plan in lieu of subparagraphs a. and b. above. The operator must describe the type, number, and location of trees to be planted under this section. The City Council may consider any proposal prepared in accordance with this subparagraph. Any alternative plan shall not be effective unless approved by the Midland City Council.

Operator shall drill one freshwater well for the provision of irrigation water to maintain the trees required above. Said water well shall not be closer than 500 feet to the permitted oil and gas well. Operator shall maintain all required trees in a healthy and growing condition. The operator is authorized to drill only one well for irrigation purposes. Any such well shall be drilled by a licensed driller certified by the Texas Department of Licensing and Regulation and in full compliance with Texas Occupations Code, Title 12, Chapters 1901 and 1902. Operator shall ensure that City receives a copy of the well log, as referred to in Texas Occupations Code § 1901.251, within 75 days of the date any such well is completed, deepended, or altered in any way.

(M)

Cleanup and Maintenance.

Cleanup after well servicing.

After the well has been completed or plugged and abandoned, the operator shall clean the drill site or operation site, complete restoration activities and repair all damage to public property caused by such operations within 60 days.

Clean-up after spills, leaks and malfunctions.

After any spill, leak or malfunction, the operator shall remove or cause to be removed to the satisfaction of the city fire chief and the city manager all waste materials from any public or private property affected by such spill, leak or malfunction. Clean-up operations must begin immediately. If the operator fails to begin site clean-up immediately the city manager may then employ any cleanup expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which the city manager deems necessary to clean-up such spill, leak or malfunction. The city shall then be able to collect from operator the costs involved in the site clean-up. The city may collect from the posted letter of credit or any other legal means.

Free from debris.

The public street entrance and property on which a well site is located shall at all times be kept free of mud, debris, pools of water or other liquids, contaminated soil, weeds, brush, trash or other waste material within a radius of 100 feet around any separators, tanks and producing wells.

Painting.

All production equipment shall be painted beige and maintained at all times, including wellheads, pumping units, tanks, secondary containment and buildings or structures. When requiring painting of such facilities, the city manager shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance.

Blowouts.

In the event of the loss of control of any well, operator shall immediately take all reasonable steps to regain control regardless of any other provision of this permit and shall notify the city manager as soon as practicable.

(N)

Plugged and abandoned wells.

Surface requirements for plugged and abandoned well.

Whenever abandonment occurs pursuant to the requirements of the Texas Railroad Commission, the operator so abandoning shall be responsible for the restoration of the well site to its original condition as nearly as practicable, in conformity with the requirements of this permit.

Restoration of drill site.

Abandonment shall be approved by the city manager after restoration of the drill site has been accomplished in conformity with the following requirements at the discretion of the city manager:

The derrick and all appurtenant equipment thereto shall be removed from drill site;

All tanks, towers, and other surface installations shall be removed from the drill site;

All concrete foundations, piping, wood, guy anchors and other foreign materials regardless of depth, except surface casing, shall be removed from the site, unless otherwise directed by the Texas Railroad Commission;

All holes and depressions shall be filled with clean, compactable soil;

All waste, refuse or waste material shall be removed from the drill site; and

During abandonment, operator shall comply with all applicable sections in this section; and

The drill site shall be restored, as close as practicable, to its original condition.

Abandoned well requirement.

The operator shall furnish the following to the city manager:

A copy of the W-3A "Notice of Intention to Plug & Abandon" and W-3 "Plugging Record" forms on the same date these forms are submitted to the Texas Railroad Commission.

Prior 48-hour notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated.

All wells shall be abandoned in accordance with the rules of the Texas Railroad Commission; however, all well casings and cellars shall be cut and removed to a depth of at least three feet below the surface. A permanent abandonment marker pipe, with the well identity and location permanently inscribed, shall be welded to the casing and shall be at least four inches in diameter with a length of four feet visible above the ground level.

Abandonment requirements prior to new construction.

All abandoned or deserted wells or drill sites shall meet the most current abandonment requirements of the Texas Railroad Commission prior to the issuance of any building permit for development of the property. No structure shall be built over an abandoned well.

(O)

Certificate of request for inspection and extension of permit.

On or before 90 days prior to the expiration of operator's oil and gas well permit, operator shall submit to the city manager a certificate of request for inspection and extension of permit. The certificate of request for inspection and extension of permit must state the location and name of the well and the date the permit was granted by the City Council. The Certificate of Request for Inspection and Extension of Permit must be signed by the operator before a notary public stating that the well is in compliance with the permit and all applicable ordinances. The certificate of request for inspection and extension of permit must be accompanied by an application and inspection fee of $300.00. The city manager shall grant an extension of one-year on the oil and gas well permit if the operator is in compliance with the permit and all applicable ordinances. Prior to authorizing the extension, the city manager, or his designee, shall inspect the oil and gas well site that is subject to the oil and gas well permit. The city manager shall issue his decision in writing, within 30 days of receiving the certificate for request for inspection and extension of permit, either granting or denying the extension of the oil and gas well permit.

The operator may appeal the city manager's denial of an oil and gas well permit extension by submitting, in writing, an appeal to the City Council within 30 days of the city manager's written denial of the oil and gas well permit extension. If an appeal is received by the City Council, a hearing shall be set before a meeting of the City Council to consider the denial of the oil and gas well permit extension. The City Council shall hear and consider the recommendation of the city manager, or his designee, before deciding whether or not to uphold the city manager's decision. The Operator shall be allowed to speak and present any relevant evidence for consideration by the City Council prior to a vote of the Council. A majority vote of the City Council shall be required to uphold the denial of the oil and gas well permit extension by the City Manager. An extension of the permit shall be for one year from the expiration date.

(P)

Measurement.

The measurement of all distances set forth herein shall be calculated from the proposed well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the object.

(Q)

Effect of denial of oil and gas well permit.

If an application for an oil and gas well permit is denied by the City Council, nothing herein contained shall prevent a new permit application from being submitted to the City Council for the same proposed oil and gas well or a different location for a well. A new application may also be filed on any of the mineral estate owned or leased by the applicant.

(R)

Amendment to oil and gas well permit.

Amendment required.

Within 90 days after an operator has been granted an oil and gas well permit, an operator may submit an application to the city to amend an existing oil and 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 oil and gas well permit.

Application requirement for amendment to permit.

An application for an amended oil and gas well permit shall meet all the requirements of this Section, shall be in writing, shall be on forms provided by the city, shall be signed by the operator, and shall include the following:

The application fee as set by the city's current fee ordinance.

A description of the proposed amendments.

Any changes to the information previously submitted with the Application for the existing oil/gas drilling permit (if such information has not previously been provided to the city).

Such additional information as is reasonably required by the city to demonstrate compliance with the original oil/gas drilling permit.

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

Review of application for amendment to permit.

All applications for an amended oil and gas well permit shall be considered in accordance with the factors listed in Subsection (H) herein. The City Council may elect to consider the application for an amended oil and gas well permit without the requirement of a public hearing.

Standard of review.

No material change from existing permit.

If the activities proposed by the amendment are not materially different from the activities covered by the existing oil and gas well permit, and are otherwise in conformance with the requirements of this section, other applicable city ordinances, the oil/gas drilling permit then the city council shall approve the amended application.

Material change from existing permit.

If the activities proposed by the amendment are materially different from the activities covered by the existing oil/gas well permit, are not in conformance with the requirements of this Section, other applicable city ordinances, the oil/gas well permit, or if, in the judgment of the city council, the activities proposed by the amendment might create a risk of imminent destruction of property or injury to persons or property or that were not otherwise taken into consideration by the existing oil/gas well permit, the city council may require the amendment to be processed as a new oil and gas well permit application.

(S)

Independent contractor.

Operator understands and agrees that operator, its employees, servants, agents, and representatives, shall at no time represent themselves to be employees, servants, agents, and/or representatives of the City. The City shall not have any control over the means or methods by which operator shall perform its obligations hereunder. Operator shall furnish all equipment and materials necessary to perform hereunder and shall at all times be acting as an independent contractor. No action by either party should be construed to create a partnership, joint venture, or other dual enterprise between the parties.

(T)

Assignability.

The operator shall not, either directly or indirectly, assign, sell, or transfer any part of the oil and gas well permit, or any interest, right, duty, obligation or privilege under the permit, without the prior consent of the City Council. The consent may only be granted by a resolution adopted by the City Council. The issue of whether or not to grant consent to an assignment, sale or transfer of any interest in the permit shall be in the sole discretion of the City Council. A new application, including the required insurance certificates and letter of credit shall be submitted with any request for assignment, sale or transfer. No assignment, sale or transfer shall be valid until a new oil and gas well permit is obtained from the City.

(U)

Time limit requirements.

The failure of the City Council to review and approve an oil and gas well permit within a specified time limit shall not cause the application for the oil and gas well permit to be deemed approved. If the City Council denies a request for a permit, the applicant may file a request with the City Council to reconsider the application. The Applicant may present any new evidence to the Council and may present any extenuating circumstances or other matters deemed relevant by the Applicant. The decision of the City Council regarding the issuance of a permit is not final until the request for re-consideration is voted upon by the City Council.

(V)

Release.

The oil and gas well permit may contain the following language:

"NOTWITHSTANDING ANY OTHER PROVISIONS, OPERATOR HEREBY RELEASES, ACQUITS, RELINQUISHES AND FOREVER DISCHARGES CITY, CITY'S EMPLOYEES AND OFFICERS, FROM ANY AND ALL DEMANDS, CLAIMS, DAMAGES, OR CAUSES OF ACTION OF ANY KIND WHATSOEVER WHICH OPERATOR HAS OR MIGHT HAVE IN THE FUTURE, INCLUDING BUT NOT LIMITED TO BREACH OF CONTRACT, QUANTUM MERUIT, CLAIMS UNDER THE DUE PROCESS AND TAKINGS CLAUSES OF THE TEXAS AND UNITED STATES CONSTITUTIONS, TORT CLAIMS, OR CITY'S NEGLIGENCE."

(W)

Incident reports or written complaints.

The operator shall provide a copy of any "incident reports" or written complaints submitted to the Texas Railroad Commission or any other state or federal agency within 30 days after operator has notice of the existence of such reports or complaints.

(X)

Expiration of Permit.

Drilling must commence on the well covered by the oil and gas well permit within twelve (12) months of approval by the City Council, after which the oil and gas well permit shall automatically expire if no drilling has commenced.

(Ordinance 8498, sec. 2, 2/13/07)

§ 6-1-3 Arrest without warrant.

An arrest, without a warrant, may be made by the chief of police or any other officer of the City, when offenses against the provisions of this Code are committed in their presence or where persons are found in suspicious places, and under circumstances which reasonably show that such persons have been guilty of some felony or breach of the peace, or threaten or are about to commit some offense against the law.

(Ordinance adopted 6/10/1940)

§ 6-1-4 Noise.

It shall be unlawful for any person to use or operate, or cause to be used or operated, any mechanical or electrical device, machine, apparatus or instrument to intensify or to amplify or to reproduce the human voice, or any other sound, on any public street within the corporate limits of the City. It shall likewise be unlawful for any person to use or operate, or cause to be used or operated, any such mechanical or electrical device, machine, apparatus or instrument or any other mechanical or electrical device, machine, apparatus or instrument, whether involving amplification or not, that emits or causes any loud, excessive or unusual noise, in any building or on any premises in the City, whereby the sound therefrom is cast directly upon the public streets or places, or where such device is maintained and operated for advertising purposes or for the purpose of attracting the attention of the passing public or which is so placed or operated that the sounds coming therefrom can be heard to the annoyance or inconvenience of travelers upon any street or public place, or of persons in neighboring premises.

(Ordinance 3705 adopted 5/24/1960)

§ 6-1-5 Locomotive whistles.

All persons are prohibited from blowing any whistles on any locomotive or single blasts therefrom, within the city limits, for a longer period of time than five seconds, except when there is imminent danger of an accident.

§ 6-1-6 Boilers, noises from.

All persons are prohibited from blowing off or blowing out a boiler when crossing any public street, alley, or other thoroughfare within the limits of the City.

(Ordinance adopted 5/21/1948)

§ 6-1-7 Oil and gas wells.

Definitions.

For the purposes of this Section, the following words and terms wherever and whenever used or appearing herein shall have the scope and meaning hereafter defined and set out in connection with each:

The word "well" shall mean any hole or holes, bore or bores, to any sand, horizon, formation, strata or depth, for the purpose of producing any oil, gas, liquid hydrocarbon, brine water, or sulphur water or for use as an injection well for secondary recovery, or any of them.

The term "drill site" shall mean all of the land area used in the drilling or other related operations, specifically including, but not limited to, rig locations, portable or permanent structures, steel slush pits, storage of pipe or other material, and the parking or maneuvering of vehicles, except roadways used for ingress or egress to the drill site.

The word "permittee" shall mean the person to whom is issued a permit or certificate for the drilling, operating and producing of a well under this Section, and his heirs, legal representatives, successors and assigns.

The word "person" whenever used in this Section means and includes any natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator and a fiduciary or representative of any kind.

The word "street" is any street, highway, sidewalk, alley, avenue, recessed parking area, or other public right-of-way, including the entire right-of-way.

The phrase "right-of-way" is expressly limited to all public rights-of-way or streets or other public property within the City of Midland.

When the title of any city official is used herein such title shall include any duly authorized representative of such official.

The term "property owner" shall mean real property surface record owner(s).

Permits required.

It shall be unlawful and an offense for any person acting either for himself or acting as an agent, employee, or independent contractor to knowingly drill or participate in the drilling of any well or to re-enter any well which has previously been abandoned for any reason or to install any water and/or gas repressurizing or injection facility within the corporate limits of the City or outside the City Limits if any part of the drill site is within 1,000 feet of any occupied residence, commercial structure, public building, public athletic building or field, property line of any property owned by any governmental entity or any publicly dedicated right-of-way or any permanent accessory structure within the City Limits without a permit having first been issued by the authority of the City Council of the City in accordance with the terms of this Section.

Permit application and filing fee.

Every application for a permit to drill a well or to install a water and/or gas repressurizing or injection facility shall be in writing, signed by the applicant or some person duly authorized to sign on his behalf before a notary public; and it shall be filed with the city secretary. In case a permit is requested for the purpose of drilling a well or re-entering and drilling to a deeper formation or re-entering a well which has previously been abandoned, the application shall be accompanied by a filing fee of $500.00.

A separate application shall be required for each well and each water and/or gas repressurizing or injection facility. The application shall include full information, including the following:

The date of the application.

The name of the applicant.

The address of the applicant and the names and addresses of all property owners within 1,000 feet of the proposed drill site.

Proposed site of the well or water and/or gas repressurizing or injection facility, including:

(a)

Name of the lease owner.

(b)

Legal description of the lease land and current land use.

(c)

Location with respect to property lines, lot lines shown on any recorded subdivision plat for the area, right-of-way or public easement boundaries, city limit boundaries and all residences, commercial structures, public buildings, property line of any property owned by any governmental entity or any publicly dedicated right-of-way or any permanent accessory structure used in connection with such residence, structure or building surrounding such proposed drill site, if within a distance of 1,000 feet.

(d)

Location with respect to the same items of any off-site tank battery or other gathering facility, together with proposed routing of gathering lines.

The proposed depth of the well.

Location of compressor, compressor control, or safety devices with explanation of operating characteristics of each in any application for a permit for a gas repressurizing or injection facility.

The name of the person or persons to be notified in case of an emergency.

Proposed hole size, casing program and cementing program.

A copy of approved Railroad Commission Form 1, Permit to Drill, shall be furnished to the city secretary prior to commencement of drilling operations.

A drainage plan as required by the City Engineer.

The signature of the applicant or the individual duly authorized to sign the application.

Acknowledgment by a Notary Public.

The names and addresses of all individuals authorized to act on behalf of the applicant.

Permits; issuance or refusal to issue.

The City Council, within 30 days after the filing of the application for a permit to drill a oil and gas well or permit to install water and/or gas repressurizing or injection facilities, shall determine whether or not the applicant is eligible to be permitted. If the application complies in all respects with the provisions of this Section, and if the entire boundary of the drill site for the well to be drilled or the facility to be installed is located more than 1,000 feet from any occupied residence, commercial structure, public building, public athletic field, property line of any property owned by a governmental entity, any publicly dedicated right-of-way or any permanent accessory structure used in connection with any of same and said drill site is not crossed by any public street, the Council may issue a permit for the drilling of the well or the installation of the facilities applied for.

If the Council determines that any part of the drill site for the well to be drilled or the facility to be installed is located less than 1,000 feet from any occupied residence, commercial structure, public building, public athletic field, property line of any property owned by a governmental entity, any publicly dedicated right-of-way or any permanent accessory structure used in connection with any of same, then the Council shall hold a public hearing on such application after giving notice at least once by publication in the official newspaper at least ten days prior to said hearing and in writing by regular United States mail to the surface owners of real property within 1,000 feet of the drill site and by a sign erected on the drill site premises. Such notice is not necessary to any property owner within such 1,000 feet-radius that executes and files with the city secretary a written waiver acknowledged before a notary public. If, however, the proposed drill site is outside the City Limits but any part of the drill sites is within 1,000 feet of any occupied residence, commercial structure, public building or structure, public athletic field, property line of any property owned by a governmental entity or any publicly dedicated right-of-way or any permanent accessory structure used in connection with same, within the City Limits, then a public hearing shall be called according to the above procedure, and public notice shall be given to the surface owners of real property inside the City Limits within 1,000 feet of the point on the City Limit line nearest the proposed drill site.

If, following said public hearing, the Council finds that exceptional circumstances exist, it may grant such permit upon such terms and conditions as it determines to be necessary to protect the public health and safety. However, no such permit shall ever be granted for a well with the well bore to be located closer than 175 feet to the nearest residence, commercial structure, public building or public structure without the unanimous consent of the property owners within a 175-foot radius around said well and the affirmative vote of not less than three-fourths of the members of the full City Council.

Written notices may be served by depositing the same, properly addressed and postage paid, in the city post office to the owners and at the addresses as shown on the last approved city tax roll, or as shown in the application pursuant to subsection (C)3 if the latter is different from the tax roll.

The decision of the Council shall be final, and in making its decision, it shall, in addition to other considerations, have the power and authority to refuse any permit to drill any well at any particular location within the City, when by reason of such particular location and the character and value of the improvements already erected on or adjacent to the particular location in question for residences, commercial activities, schools, hospitals, parks, civic purposes, public health or safety reasons or any of them the drilling of such wells at such particular location would be injurious to the health or safety of the inhabitants in the immediate area of the City or to a substantial number of such inhabitants or would not promote orderly growth and development of the City. Each permit shall:

By reference have incorporated therein all the provisions of this Section with the same force and effect as if this Section were copied verbatim in such permit.

Specify the location of the proposed drill site, well, or injection facility with particularity to lot number, block number, name of addition or subdivision, or by metes and bounds description, or other available correct legal description.

Contain and specify that the term of the permit shall be for a period of one year from the date of the permit and so long thereafter as oil and gas are produced or until such time as the permittee has permanently abandoned the operation of such well or facility for which the permit was issued.

Contain and specify such other terms and provisions as may be necessary in a particular case to accomplish the purpose of this Section.

Contain and specify that no actual operations shall be commenced until the permittee has complied with the bond and insurance provisions of this Section.

Such permit, in triplicate originals, shall be signed by the city secretary, and prior to delivery to the permittee shall be signed by the permittee (with one original to be retained by the City and the others by the permittee); and when so signed, it shall constitute the permittee's drilling and installation license, as well as the contractual obligation of the permittee to comply with the terms of such permit and bond and of this Section.

Bond and insurance.

A bond or letter of credit approved for form by the city attorney shall be filed with the City in the amount of $50,000.00 along with the permit application for each well applied for by an operator. Said bond shall be executed by the operator, as principal, and a corporate surety on the list of authorized insurance companies published by the state board of insurance of the state, as surety, in a form approved by the city attorney and with the bond in favor of the City conditioned that the permittee will comply with all of the terms, conditions and requirements of this Section and any permit issued pursuant hereto, and further conditioned that the permittee will repair any damages to city streets, as determined by the city's director of public works, caused by the equipment and vehicles used by the permittee in going to and from the drill site, with such repairs to be in compliance with specifications therefor prepared and provided to the permittee by said director of public works.

In addition to the bond required above, the permittee shall carry a policy or policies of standard comprehensive public liability insurance including contractual liability coverage, for accidental death, bodily injury and property damage, naming both the permittee and City as insureds, with an insurance company authorized to do business in the state and appearing on the list of authorized insurance companies prepared by the state board of insurance. Such policy or policies in the aggregate shall provide for the following minimum coverages:

Accidental death or bodily injury, $5,000,000.00 one person and $5,000,000.00 total for one accident.

Property damage, $1,000,000.00 total one accident.

The permittee shall file with the city secretary a certificate of insurance showing compliance with the above prior to receiving a copy or copies of the permit or commencing any operations on the drill site. Said insurance shall not be canceled without written notice to the city secretary at least ten days prior to the effective date of such cancellation. In the event such insurance is canceled, the permit granted in connection with such policy or policies shall be suspended and ineffective until the permittee files additional insurance as provided herein.

Permit termination.

In the event of a failure of a permittee to comply with any provision of this Section, the city secretary shall issue in writing a notice to the permittee of the nature of the noncompliance and stating a reasonable time, not to exceed 48 hours, necessary to gain compliance. After lapse of such reasonable time, if compliance has not been made, the Council may suspend the permit for a period of time or cancel the permit.

(G)

Supplemental permit for deep drilling.

Once any well has either been completed as a producer or abandoned as a dry hole, it shall be unlawful and an offense for any person to drill such well to a deeper geological formation than that reached in the prior drilling operations or re-enter such well to produce from any geological formation than that reached in the prior drilling operations or change the location of any gathering lines or other facilities from that approved by the permit without the permittee, as to such well, obtaining a supplemental permit after filing a supplemental application with the City Council specifying:

The condition of the well and the casing therein.

The depth to which it is proposed that such well will be deepened.

The proposed casing and cementing programs to be used in connection with the proposed deepening operation.

The proposed locations of gathering facilities and routing of lines.

In the event the Council is satisfied that such well may be deepened or re-entered with the same degree of safety as existed in the original well, a supplemental permit may be issued for an additional $100.00 filing fee to the permittee authorizing the deepening or re-entering and operation of the well to such specified depth as applied for or the change in the location of gathering lines or other facilities. In any deeper drilling or any deeper completion or any deeper reproduction operations or any re-entry, the permittee shall comply with all provisions contained in this Section and applicable to drilling, completion, operation and production of a well or wells.

If the operator has removed the derrick and drilling equipment from the location, the supplemental permit shall comply with the requirements specified for a permit in Section (D).

(H)

Use of streets and alleys.

No permittee shall make any excavations for any purpose or construct any lines for conveyance of fuel, water or minerals on, under or through the streets or alleys or other land of the City without an express easement or right-of-way license from the City, at a price to be agreed upon, and then only in strict compliance with the ordinances of the City and the specifications established by the department of public works.

The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any street as herein defined, or leaving upon any street any earth or other material or obstruction, shall not be permitted unless such persons shall first have obtained written permission from the director of public works, and then only in compliance with specifications established by him.

(I)

Streets and alleys; obstruction; permits.

No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is within any of the streets or alleys of the City and/or streets or alleys shown by the master plan of the City, and no street or alley shall be blocked or encumbered or closed in any drilling or production operation except by written permission of the city traffic engineer, and then only temporarily.

(J)

Derrick and rig types; those prohibited; removal of those allowed; watchmen.

It shall be unlawful and an offense for any person to use or operate, in connection with the drilling or reworking of any well within the corporate limits of the City, any wooden derrick or any steam-powered rig. The drilling rig or derrick and other structures, material and drilling equipment shall be removed from the premises within 30 days from the date of completion of the well, as shown on the appropriate railroad commission form, and thereafter, when necessary, such completed well shall be served by portable rigs, which shall be removed from the premises within 15 days from the completion of the servicing operation. At all times from the start of erection of a derrick or a mast, or a ginpole, until the well is abandoned and plugged or completed as a producer and enclosed as herein provided, the permittee shall keep a watchman on duty on the premises at all times when other workmen of the permittee are not on such premises.

Provided, however, that the City Council may, for good cause shown by the applicant, for drill sites located more than 1,000 feet from any occupied residence, commercial structure or public building or any permanent accessory structure used in connection with any of same, waive in the permit (if one is issued) the watchman requirement contained in the preceding paragraph hereof, provided the fencing requirements of subdivision (N) are complied with.

Provided, however, that if the production string of casing is run into a well located between 1,000 feet and 1,320 feet from any occupied residence, commercial structure or public building or any permanent accessory structure used in connection with any of same, then and in that event, the preceding fencing and watchman requirements shall not apply during the interim period between the time the drilling rig moves off of the location and a workover rig moves onto the location so long as said interim period does not exceed 21 days and so long as the following requirements are met within 12 hours after the drilling rig is removed from the location:

No equipment remains on the location.

All free fluids are removed from the slush pits.

The cellar, rat hole and mouse hole are filled to ground level.

The operator notifies the designated office of the planning and development department when the drilling rig is released.

In the event that any permit is granted to drill or explore for oil or gas within such corporate limits, the permittee shall proceed with the drilling operations with the highest degree of care so as not to injure adjoining property or persons in any manner. All wastes must be contained within the drill site, as set out hereinafter, without any subsurface disposal, and upon the completion of such drilling operations the grounds around the well shall be immediately cleared of all drilling mud and/or all oil, saltwater or water, and shall be made to conform in appearance to the lands in the neighborhood wherein such drilling operations are so conducted.
Caliche drilling pads shall also be removed in the cleanup operation except the portion thereof within the fenced area around pump jacks. All cleanup and removal operations required above shall be completed within 30 days of the date of completion of drilling operations.
Steel slush pits shall be used in connection with all drilling and reworking operations. Such pits and contents shall be removed from the premises and drill site within 30 days after completion of the well. No earthen slush pits shall be used. However, cuttings from the drilling operations may be disposed of on the drill site according to the following requirements:
1.	Disposal shall be in a pit lined with black six-millimeter PVC lining material.
2.	Cuttings shall then be covered with not less than 24 inches of topsoil and the surface otherwise brought back to the same level and substantially the same appearance as the surrounding ground.
Provided, however, that the City Council may, for drill sites located more than 1,000 feet from any occupied residence, commercial structure or public building or any permanent accessory structure used in connection with any of same, authorize in the permit (if one is issued) the use of earthen slush pits in lieu of steel slush pits otherwise required by this subsection (J). Provided, further, that by simple majority vote the City Council may elect to hold a public hearing on the type of slush pits to be used outside the said 1,000-foot area by giving notice by publication and by mail in the manner provided for in subsection (D) hereinabove, but to all surface owners of real property within 1,320 feet of the proposed drill site.

(K)

Operations and equipment; practices and standards.

All drilling and operations at any well performed by a permittee under this Section shall be conducted in accordance with the practices of a reasonable and prudent operation in the Permian Basin area. All casing, valves, and blowout preventers, drilling fluid, tubing, wellheads, Christmas trees, and wellhead connections shall be of a type and quality consistent with such practice. Setting and cementing casing and running drill stem tests shall be performed in a manner and at a time consistent with the practices of a reasonable and prudent operator. Each permittee under this Section shall observe and follow the regulations of the railroad commission of the State of Texas.

That an internal combustion engine may be used in the drilling operations of the well, or wells, and if an internal combustion engine is used, that mufflers be installed on all engines so as to reduce noise to not more than 70 decibels at any point 100 feet beyond the drill site; and all of said installations to be done in accordance with accepted practices for fire prevention purposes. For production purposes, only electric power may be used. Drilling operations must be conducted in such a manner that percolating or ground water will not be adversely affected, including the prevention of vertical movement of percolating water.

That all oil drilling and production operations shall be conducted in such a manner as to minimize, so far as practicable, dust, noise, vibration or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for the production of oil, gas and other hydrocarbon substances.

Except in cases of emergency, no materials, equipment, tools or pipe used for drilling or production operations shall be delivered to or removed from the site except between the hours of 7:00 a.m. to 9:00 p.m. on any day. On drill stem tests, only one trip will be allowed at night between 9:00 p.m. and 7:00 a.m. unless an emergency exists.

Firefighting apparatus and supplies as approved by the Midland city fire department shall be maintained on the drilling site at all times during drilling and production operations. No refining process or any process for the extraction of products from natural gas shall be carried on at the drill site, except that a dehydrator and separator may be maintained on the drill site for the separation of liquids from natural gas. Any such separator shall serve only one well.

All production equipment used shall be so constructed and operated so that noise, vibration, dust, odor or other harmful or annoying substances or effect will be minimized by the operations carried on at any drilling site or from anything incident thereto, to the injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in methods of production shall be adopted as they, from time to time, become available if capable of reducing factors of nuisance or annoyance. There shall be no venting of gas into the open air except as allowed by the Texas Railroad Commission in residential areas.

The well site shall not be used for the storage of pipe, equipment or materials except during the drilling or servicing of the well and the production facilities allowed on the site.

That no refinery, dehydrating or absorption plant of any kind shall be constructed, established or maintained on the premises at any time. This shall not be deemed to exclude a simple gas separation process.

All electric lines to production facilities shall be located in a manner compatible to those already installed in the surrounding area or subdivision.

(L)

Cleanliness and sanitation.

The premises shall be kept in a clean and sanitary condition. The permittee shall prevent any mud, wastewater, oil, slush, or other waste matters from flowing into the alleys, streets, lots or leases within the corporate limits of the City.

All permittees' premises shall be kept clear of high grass, weeds and combustible trash within a radius of 100 feet around any oil tank, tanks, or producing wells. All waste shall be disposed of in such manner as to comply with the air and water pollution control regulations of the state and all ordinances of the City and removed as required in subsection (J) of this Section.

(M)

Storage tanks and separators; types and requirements.

It shall be unlawful and an offense for any person to use, construct or operate, in connection with any producing well within the city limits, any crude oil storage tanks except to the extent of two low type tanks for oil storage, not exceeding 500 barrels capacity for each well connected thereto or, in the alternative, low type tanks of sufficient capacity to hold 24 hours of production from such well; said tanks to be so constructed and maintained as closed tanks and properly vented. A permittee may use, construct and operate a steel conventional separator, heater treater, vapor recovery unit and such other tanks and appurtenances as are necessary for treating oil with each of such facilities, to be so constructed and maintained according to API standards. Each oil/gas separator shall be equipped with both a pressure relief safety valve and burst plate. All such tanks shall be placed above ground, and the tanks shall be placed upon a suitable earth or concrete pad.

The use of a central tank battery is permitted so long as not more than two tanks as specified are used for each well connected to the battery plus one 500-barrel water tank.

The tank or tanks shall be enclosed with a conventional type firewall constructed of compacted earth; sufficient water shall be used during the firewall construction to assure adequate compaction.

The firewall enclosing the tanks shall have a minimum capacity equal to two times the volume of the tanks enclosed.

The top or crown of the firewall shall have a normal height of three feet above normal ground elevation.

It shall be unlawful and an offense for any person to locate a storage tank or separator site nearer than 175 feet to any residence or commercial or public building within the City.

It shall be unlawful and an offense for any person to locate a storage tank site or separator site between 175 feet and 1,000 feet from the nearest residence or commercial or public building within the City without the unanimous consent of all of the property owners within 1,000 feet of said site and the affirmative vote of three-fourths of all of the members of the City Council cast at the time of the consideration of the drilling permit application or at a subsequent meeting.

(N)

Fences required; locking gates; waiver by inspector.

The well site, drill site, tank site, tank battery site, pump station site, or compressor site shall not be used for the storage of pipe, equipment or materials except during the drilling or servicing of the well, tanks, pump stations or compressor stations, and all such sites, including all surface facilities, whether located on the well site or at a separate location within the City, shall be enclosed and kept fenced by a substantial chainlink fence eight feet high, with slats woven through the links to make it sightproof and with concertina wire, barbed wire or other security wire on the top, and properly built and thereafter maintained so as to ordinarily keep persons and animals out of the enclosure, with all gates thereto to be kept locked when the permittee or his employees are not within the enclosure.

Provided, however, that the City Council may, for drill sites located more than 1,000 feet from any occupied residence, commercial structure or public building or any permanent accessory structure used in connection with any of same, waive in the permit (if one is issued) the fencing otherwise required by this subsection (N). Provided, further, that by simple majority vote the City Council may elect to hold a public hearing on the fencing requirement outside the said 1,000-foot area by giving notice by publication and by mail in the manner provided for in subsection (D) hereinabove, but to all surface owners of real property within 1,320 feet of the proposed drill site. If the drill site is located within 1,000 feet of any occupied residence, commercial structure or public building or any permanent accessory structure used in connection with any of same, the drill site shall be landscaped upon completion of the drilling of the well.

(O)

Fire prevention; escape of gas, burning; flaring; general requirements.

Any permittee engaged in the drilling or operation of an oil and/or gas well or the operation of any facility used in conjunction with the production of oil and/or gas within the corporate limits of the City shall take reasonable precautions to prevent gas from escaping into the air, and shall not flare or burn gas from a torch or any similar means within the corporate limits of the City; provided gas may be burned for a limited time when necessary to complete any oil and/or gas well upon the original completion or upon the recompletion or workover jobs upon oil and/or gas wells, so long as the same does not constitute a fire hazard to the property of others within the vicinity of such oil and/or gas well.

The permittee shall place a sign at each well location or site to identify the well.

Each permittee shall fully comply with "Special Order Amending Rule 36 of the General Conservation Rules of Statewide Application State of Texas Having Reference to Oil and Gas Operation in Hydrogen Sulfide Areas," adopted by the Railroad Commission of Texas, Oil and Gas Division, in Oil and Gas Docket No. 20-65, 354 on March 15, 1976.

(P)

Flow lines and gathering lines.

Each permittee shall place an identifying sign at each point where a flow line or gas gathering lines crosses any public street or road and it shall be unlawful and a misdemeanor for any person to remove, destroy or deface any such sign.

Each permittee shall also place a warning sign at each point where a line carrying H2S gas crosses any public street or road and it shall be unlawful and a misdemeanor to remove, destroy or deface any such sign.

No permittee shall make any excavation for any purpose or construct any lines for conveyance of fuel, water, or minerals, on, under, or through the streets and alleys of the City without express permission of the director of public works in writing, and then only in strict compliance with the ordinances of the City; provided, however, emergency repairs may be made without such permission when in the good faith opinion of the permittee the delay required to obtain written permission would involve a hazard to person or property.

The gathering lines and flow lines hereafter installed in the corporate limits of the City, for the purpose of transporting oil, gas and/or water in conjunction with the operation of any well, tank or tank battery, injection or gathering system, are hereby limited to a maximum operating gauge pressure of 250 psi (pounds per square inch) unless otherwise specifically approved by the director of public works. The location of any such gathering lines and flow lines, if not specified in the permit, must be specifically approved by the director of public works.

The pipeline shall be tested prior to being placed in service.

The companies responsible for any and all pipelines now existent or hereafter installed within the corporate limits are hereby required to furnish the City an "as-built" plot plan showing the location of all their facilities for permanent record with the City.

All pipelines within the corporate limits, other than the utility lines of the City and the franchised distribution system of Pioneer Natural Gas Company, designed or utilized to transport oil, gas or water in connection with the production and transportation of oil and/or gas or for repressurizing operations, shall hereafter be installed with the minimum of cover or backfill specified by the then applicable ASA code for such pipelines.

The director of public works is authorized to approve a lesser cover or specify a greater cover or backfill in special cases when in the opinion of the oil and gas inspector such variation is advisable and/or will not increase the degree of hazard.

The requirements for construction in public rights-of-way must conform to such ordinances of the City regulating such construction.

The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any street as herein defined, or leaving upon any street any earth or other material or obstruction, shall not be permitted unless such persons shall first have obtained written permission from the director of public works, provided, however, emergency repairs may be made without such permission when in the good faith opinion of the permittee the delay required to obtain the written permission would involve a hazard to person or property.

(Q)

Exceptions.

On well bores located no closer than 1,320 feet to any occupied residence, commercial structure or public building, the regulations contained hereinabove regulating decibel levels of sound, steel slush pits, fences around drill sites, and restricting nighttime operations and night watchmen shall not apply.

(R)

Penalties; fines; forfeitures; revocation of permit.

Subject to subsection (F) of this Section, it shall be unlawful and an offense for any person to violate or fail to comply with any provision hereof, whether or not such Section contains the specific language that such violation or failure to comply is unlawful and is an offense. Any person who shall violate the provisions of this Section, or the provisions of a permit issued pursuant hereto, or who shall fail to comply with the terms hereof, shall be guilty of a misdemeanor and shall, on conviction thereof, be fined in any sum not less than $100.00 nor more than $500.00, and the violation of each separate provision of this Section, and of such permit, shall be considered a separate offense, and each day's violation of each separate provision thereof shall be considered a separate offense.

(S)

This section shall apply to all oil and gas well permits for which an application has been received and/or a permit has been issued before the 1st day of March, 2007. This section shall remain in full force and effect for any such oil and gas wells operating under this section.

(Ordinance 6364 adopted 1/24/1984; Ordinance 6411 adopted 6/26/1984; Ordinance 6450 adopted 9/11/1984; Ordinance 6717 adopted 12/16/1986; Ordinance 7707, secs. 1, 2 adopted 2/10/1998; Ordinance 7812, secs. 1—6 adopted 1/26/1999; Ordinance 8132, sec. 2, adopted 10/8/2002; Ordinance 8499, sec. 1, adopted 2/13/07)

§ 6-1-8 Peeping Toms.

It shall be unlawful for any person to enter upon the premises of another or upon any public property with the intention of peeping into a house or other building, or spying in any manner upon any person therein; provided, however, that the provisions of this Section shall not apply to an officer of the law in the performance of his duties.

§ 6-1-9 Police radio; interception of communications.

No solicitor, or other person, not being authorized by the City, shall intercept any communication and divulge or publish the existence, contents, substance, purpose, effect or meaning of such intercepted communication, and no solicitor or other person, not being entitled thereto, shall receive or assist in receiving any message emanating through the medium of KKA-662, and use the same or any information therein contained for his own benefit, or for the benefit of another solicitor or person.

(Ordinance adopted 3/24/1953)

§ 6-1-10 Railroads; length of time at crossings.

It shall be unlawful for any yardmaster, engineer, conductor or other person in any manner controlling or operating any railway locomotive, engine, car or train of cars to suffer or permit any such locomotive, engine, car or train of cars to remain standing upon any public street crossing within the corporate limits of the City for a longer period than five minutes, and all of the time such locomotive engine, car or train of cars is permitted to stand upon such public crossing shall be considered one period, unless, between said periods, five minutes elapses, during which time no such locomotive engine, car or train of cars is permitted to stand on such crossing.

(Ordinance adopted 10/14/1930; Ordinance adopted 11/27/1945)

§ 6-1-11 Railroad trains speeding.

It shall be unlawful for any engineer or other person in charge of a locomotive or train to run the same within the corporate limits of the City of Midland at a speed greater than 25 miles per hour.

(Ordinance 5107 adopted 11/9/1976)

§ 6-1-12 Arsonists.

There is hereby appropriated from the general fund of the City the sum of $250.00 to be paid to any person procuring the arrest and conviction of any person found guilty of arson, or any attempt to commit arson, within the corporate limits of the City. If and when such fund is exhausted, then additional funds of like amount shall be appropriated so as to keep the fund a continuous one.

(Ordinance adopted 2/16/1928; Ordinance adopted 2/14/1950)

§ 6-1-13 Auto part sales.

Any person, firm, or corporation purchasing vehicle hubcaps, mirrors, fenders, skirts, ornaments, tires or other parts of vehicle accessories from individuals not engaged in the lawful business of selling auto parts and equipment shall make daily reports of all such purchases to the chief of police before the hour of 10:00 a.m., except on Sunday, giving the name, age and address of the seller and any proof of ownership furnished to the purchaser by the seller. Any person, firm or corporation failing to so report such purchases shall be guilty of a misdemeanor.

(Ordinance 3383 adopted 10/14/1958)

§ 6-1-14 Go-carts.

It shall be unlawful within the City for any person to offer for rent or hire or to rent out or hire out to another person, or otherwise use, offer for use or permit the use of, commercially, any go-cart, as hereinafter defined, owned or controlled by such person. It shall likewise be unlawful for any person to operate, or permit the operation of, a commercial racetrack or go-cart track on any property owned or controlled by him within the City.

For the purposes of this Section go-carts are defined as any small motor vehicle propelled by an internal combustion engine and not registered as a motor vehicle under the state licensing law or not equipped with certain safety devices, such as those required for a state safety inspection certificate under V.T.C.A., Transportation Code ch. 548, which shall include, but not be limited to, headlights, taillights, brakes, turn signals and a metal body to prevent the driver of said vehicle from falling from it in the event of an accident.

(Ordinance 3822 adopted 8/22/1961)

§ 6-1-15 Police dogs; mistreatment, injury or killing.

It shall be unlawful for any person to willfully or maliciously torture, torment, beat, kick, strike, mistreat, injure, disable, or kill any dog used by the police department of the City of Midland in the performance of the functions or duties of such department, or to interfere with or meddle with any such dog while being used by said department or any official or member thereof in the performance of any of the duties or functions of such department or of such official or member. Any person violating any provisions of this Section shall be deemed guilty of a misdemeanor.

(Ordinance 3951 adopted 10/23/1962)

§ 6-1-16 City hall parking.

It shall be unlawful for any person to park a motor vehicle on any part of Lots 7, 8, 9, 11, 12 and S/2 10, of Block 25, and Lot 11 of Block 26, all in the Original Town of Midland, Texas, unless such person is an elected or appointed official of the City of Midland or an employee of the City of Midland, duly authorized so to do by the city manager.

It shall be unlawful for any person to park a motor vehicle on any part of the N/2 of Lot 10 of Block 25 of the Original Town of the City of Midland, Texas, unless such person is an elected or appointed official of the City of Midland or an employee authorized so to do by the city manager, or unless such person has business to transact in the city hall.

The city traffic engineer is hereby authorized and directed to erect appropriate signs and markings on and near the above-described lots indicating the regulations established hereby.

(Ordinance 4304 adopted 2/14/1967)

§ 6-1-17 Trespassing.

It shall be unlawful for any person to prowl, loiter, enter into, or go about the premises of another, without the invitation or consent, either express or implied, of any occupant of any room, house, hotel, tourist cabin, business house, accessory building, or other buildings on or near the premises: and such person shall be guilty of trespassing and disorderly conduct.

It shall be unlawful for anyone to trespass upon, interfere with, or use property of another person, or of a corporation, without the consent of the owner or person in charge and control of such property.

(Ordinance 4303 adopted 2/14/1967)

§ 6-1-18 Entering restrooms of the opposite sex.

It shall be unlawful for any person to knowingly and intentionally enter any public restroom designated for the exclusive use of the sex opposite to his or her own without permission of the owner, tenant, manager, lessee, or other person in charge of the premises.

(Ordinance 6185 adopted 4/12/1983)

§ 6-1-19 Nuisance water.

It shall be unlawful for any person, corporation, partnership or association to allow any individual sprinkler, sprinkler system, hand-held hose, soaker hose, bubbler or any other device to emit water so as to allow water to directly land on any public street or emit water so as to allow such water to run off into or on any public street.

For the purposes of this Section, the word "street" shall mean the width between the boundary lines of a publicly maintained way any part of which is open to the public for vehicular travel.

It shall be an affirmative defense to prosecution under this Section if water is used by any of the following in the stated manners:

The use of water by any person, corporation, partnership or association for roadway base preparation, flushing of utility lines, concrete and asphalt work and for building construction processes;

The use of water by any person, corporation, partnership or association for the repair of water distribution facilities, repairing residential and commercial plumbing facilities, and repairing permanently installed landscape irrigation systems;

The use of water by a governmental entity in pursuit of its governmental functions for the benefit of the public, such as capital improvements, construction projects, the cleaning of public streets to prevent debris and harmful substances from entering water systems via storm sewers, and the use of water from fire hydrants and trucks related to fire fighting related activities;

The use of water by any person, corporation, partnership or association to alleviate immediate health or fire hazards;

The device that emitted water directly onto any public street or emitted water so as to allow water to run onto any public street is fixed or repaired within five days, excluding weekends and holidays, from the date of the issuance of the citation under this Ordinance and evidence detailing the repairs is presented to the Court; or

The device is damaged or destroyed without the knowledge of the person, corporation, partnership or association that received the citation and the damage or destruction that caused the device to emit water directly onto any public street or emit water so as to allow water to run onto any public street is repaired. The damage or destruction must be repaired within five days, excluding weekends and holidays, from the date of the issuance of the citation under this Ordinance and evidence detailing the repairs is presented to the Court.

For purposes of this Section, it shall be presumed that a person, corporation, partnership or association in whose name City of Midland water is or was billed for at the subject property, or is receiving the economic benefit of said public water supply at the subject property, has caused public water to be emitted from a sprinkler, sprinkler system, soaker hose, bubbler or any other device if the public water has been:

Allowed to be emitted directly from the subject Property onto any public street; or

Allowed to run off from the subject Property onto or on any public street.

In the situation where a person, corporation, partnership or association does not use City water, it shall be presumed that the owner of the property has caused water to be emitted from a sprinkler, sprinkler system, soaker hose, bubbler or any other device if the water has been:
1.	Allowed to be emitted from the owner's property directly on any public street; or
2.	Water is allowed to run off the owner's property into or on any public street.

Any person, corporation, partnership or association violating any provision of this Section shall be deemed guilty of an offense, and, upon conviction, shall be punished by a fine not to exceed $500.00. Each day that a provision of this Section is violated shall constitute a separate offense. It is hereby declared that the culpable mental state required by Texas Penal Code Section 6.02 is specifically negated and clearly and plainly dispensed with and an offense under this ordinance is declared to be a strict liability offense. Each day such violation shall continue, or be permitted to continue, shall be deemed a separate offense. The City Attorney may file suit for an injunction to enforce any of the provisions of this Section.

Judicial Notice.

The City of Midland Municipal Court upon its own motion may, or upon the motion of a party shall, take judicial notice of this ordinance.

The City of Midland Municipal Court upon its own motion may, or upon the motion of a party shall, take judicial notice of records in the City's Customer Service Division.

The City of Midland Municipal Court upon its own motion may, or upon the motion of a party shall, take judicial notice of all records of Midland County, Texas; all records of the Midland Central Appraisal District; and all records of the City of Midland, Texas.

(Ordinance 6671 adopted 7/8/1986; Ordinance 6790 adopted 9/22/1987; Ordinance 8947 adopted §1 adopted 10/11/2011)

§ 6-1-20 Prohibiting fishing, swimming, and boating in stormwater drainage facilities.

It shall be unlawful for any person to fish, swim, wade, dive, float, ski, boat, or participate in any type of water sport or activity in or on any channel, ditch, basin, pond, or other facility which is owned or operated by the City of Midland, Texas, for the control, conveyance, or storage of stormwater runoff or drainage.

(Ordinance 7040 adopted 10/9/1990)

§ 6-1-21 Discharge of firearms prohibited.

It shall be unlawful for any person to knowingly shoot or discharge within the city limits any firearm.

For the purposes of this Section, "firearm" means any device used in the expulsion of shot, shell or bullets or other harmful objects by the action of gunpowder exploded within it or by compressed air, compressed gas, or springs capable of shooting or discharging any bullet, missile or projectiles and including, but not limited to, what are commonly known as air rifles, BB guns and pellet guns.

The provisions of this Section shall not apply to:

The discharge of a firearm in a regularly established and properly supervised shooting range or gallery or other location properly registered in accordance with this Code.

The discharge of a firearm by a citizen when lawfully defending person or property.

The discharge of a firearm by a commissioned peace officer in the performance of his lawful duty.

The discharge of an air rifle, BB gun or pellet gun by a citizen on his own property, provided such device is not fired into or onto another person's property.

Every person engaged in the operation of a shooting range, shooting gallery, gun club, or other such location for the discharging of firearms shall register each such location with the Midland police department.

This Section does not prohibit the discharge of a firearm within the city limits for ceremonial, theatrical or other such purposes provided that such discharge does not result in the shooting of a bullet, missile or projectile of any kind.

(Ordinance 7155 adopted 3/10/1992)

§ 6-1-22 Garage and estate sales.

Garage or estate sale. Garage sale or estate sale shall be defined as an offering for sale, on a residential premises, of household furnishings, clothing, appliances and related items. A person may not conduct a garage sale or estate sale except as provided herein. A garage sale or estate sale may not exceed three consecutive days in duration. A garage or estate sale may be held two times within a 90-day period. The number of garage or estate sales a person may hold within a 12-month period shall be limited to four.

(Ordinance 7749, sec. 1, adopted 7/14/1998)

§ 6-1-23 Oil and gas well permits issued on or after January 1, 2010.

Purpose.

The purpose of this Section is to establish reasonable and uniform limitations, safeguards, and regulations for operations on private and public property within the City of Midland related to the exploring, drilling, developing, producing, transporting, and storing of oil, gas, and other substances produced in association with oil and gas, in order to protect the health, safety and general welfare of the public; to minimize the potential impact to private property and mineral rights owners; to protect the quality of the environment; and to encourage the orderly production of available mineral resources. This Section shall apply to all oil and gas well permits issued by the City Council on or after January 1, 2010.

Definitions.

For the purposes of this Section, the following words and terms wherever and whenever used or appearing herein shall have the scope and meaning hereafter defined and set out in connection with each:

Abandonment

means "abandonment" as defined by the Railroad Commission and includes the plugging of the well and the restoration of any well site as required by this Section.

Blowout preventer

means a mechanical, hydraulic, or other device or combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith, which can be closed around the drill pipe, or other tubular goods which completely close the top of the casing and are designed for preventing blowouts.

Building

means any structure which is built for the support, shelter, or enclosure or partial enclosure of persons, animals, chattels, or movable property of any kind including pools.

Building official

means the building official of the City of Midland, or the building official's duly authorized representative.

City

means the City of Midland, Texas.

City Council or Council

means the City Council of the City of Midland, Texas.

City Code

means the Midland City Code.

City attorney

means the city attorney of the City of Midland.

City manager

means the city manager of the City of Midland.

Completion of drilling, or re-drilling

means the date the work is completed for the drilling, or re-drilling and the crew is released by completing their work or contract or by their employer.

Derrick

means any portable framework, tower, mast and/or structure which is required or used in connection with drilling, or re-drilling a well for the production of oil and gas.

Drilling

means digging or boring a new well or re-entry of any well which has been previously abandoned for which a Form W-1 is required by the Railroad Commission for the purpose of exploring for, developing or producing oil, gas or other hydrocarbons, or for the purpose of injecting gas, water or any other fluid or substance into the earth.

Drilling equipment

means the derrick, together with all parts of and appurtenances to such structure, every piece of apparatus, machinery or equipment used or erected or maintained for use in connection with drilling.

Drill site

means all of the land area used during the drilling of a well or wells.

Exploration

means drilling, geologic or geophysical activities, including seismic surveys, related to the search for oil, gas or other subsurface hydrocarbons.

Fire department

means the fire department of the City of Midland.

Gas

means any fluid, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rarefied state at standard temperature and pressure conditions and/or the gaseous components or vapors occurring in or derived from petroleum or natural gas.

High volume well

means an oil or gas well which produces at least 125 barrels of oil per day or 300 mcf per day. The determination of 125 barrels or 300 mcf per day shall be from the average daily production sustained during the first 30 days of production.

Occupied residence

means any single-family or multi-family dwelling occupied by an owner or lessee at the time an application for an oil and gas well permit is filed with the City of Midland. An occupied residence shall include a single-family or multi-family dwelling that has been occupied by the owner or lessee at any time during the six months prior to the application date of the oil and gas well permit. An occupied residence shall include a single family or multi-family structure which is under construction or for which a building permit has been issued by the City during the six months prior to the application date of the oil and gas well permit.

Occupied commercial structure

means any commercial structure occupied by an owner or lessee at the time an application for an oil and gas well permit is filed with the City of Midland. An occupied commercial structure shall include a structure that has been occupied at any time during the six months prior to the application date of the oil and gas well permit. An occupied commercial structure shall include a structure which is under construction or for which a building permit has been issued by the City during the six months prior to the application date of the oil and gas well permit.

Oil and gas advisory committee

or "committee" means the five member committee appointed by the City Council to assist with the technical and administrative review of all oil and gas well permits.

Oil and gas well

means any well drilled, to be drilled, or used for the intended or actual production of oil or natural gas.

Operation site

means the area used for production and all operational activities associated with oil and gas after completion of drilling.

Operator

means, for each well, the person designated on the Railroad Commission Form P-4 as the operator, as well as the person listed on the appropriate City application forms for an oil and gas well permit.

Owner

means the fee simple title owner of the surface estate.

Person

means an individual, natural person, firm, partnership, corporation, company, association, joint stock association, organization, agency, business trust, estate trust, and any other legal entity, and includes a trustee, receiver, assignee, administrator, executor, guardian, or other representative.

Persons

means the plural of person and shall include both singular and plural and the masculine shall include the feminine gender.

Public building

means any structure owned, leased or occupied by the City or any other governmental entity at the time an application for a permit for an oil and gas well is filed.

Railroad Commission

means the Railroad Commission of Texas.

Residence

means a house, duplex, apartment, townhouse, condominium, mobile home or other building designed for dwelling purposes, including those for which a building permit has been issued on the date the application for an oil and gas well permit is filed with the City.

Re-working

means any work done on an existing well including deepening sidetrack operations which extends less than 150 feet from the existing well-bore, replacement of well liners or stimulation repair or replacement of existing casing or tubing, rod repair or replacement of pumping equipment.

Right-of-way

means any area of land within the City that is acquired by, dedicated to, or claimed by the City in fee simple, by easement, by prescriptive right or other interest and that is expressly or impliedly accepted or used in fact or by operation of law as a public roadway, street, sidewalk, alley, utility, drainage, or public access easement or used for the provision of governmental services or functions. The term includes the area on, below, and above the surface of the public right-of-way. The term applies regardless of whether the public right-of-way is paved or unpaved.

Street

means any public thoroughfare dedicated to the public use and not designated as an alley or private access easement.

Tank

means a container, covered or uncovered, used in conjunction with the drilling or production of oil, gas or other hydrocarbons for holding or storing fluids.

Well

means a hole or holes, bore or bores, to any sand, horizon, formation, strata, or depth, for the purpose of producing any oil, gas, liquid hydrocarbon, brine water or sulphur water, or for use as an injection well for the secondary recovery, disposal, or production of any oil, gas, liquid hydrocarbons, brine water or sulphur water.

Permits required.

It shall be unlawful and an offense for any person acting either for himself or acting as an agent, employee, or independent contractor to knowingly drill or participate in the drilling of any well or to re-enter any well which has previously been abandoned for any reason or to install any water and/or gas re-pressurizing or injection facility within the corporate limits of the City without an oil and gas well permit having first been issued by a resolution of the City Council of the City in accordance with the terms of this Section. A separate permit shall be required for each well and each water and/or gas re-pressurizing or injection facility. A permit issued by the City Council shall be valid, until it is revoked by the City Council in accordance with Subsection (L), Paragraph (36). An oil and gas well permit must be approved by a resolution of the Midland City Council.

Designation of official; enforcement; inspections; access to records.

The city manager, or his designated representative, shall enforce the provisions of this Section. The official (or officials) shall have the authority to issue any orders, directives, warnings, or citations, required to carry out the intent and purpose of this Section and its particular provisions.

The city manager may retain the services of an independent consultant to aid in the detection of violations and enforcement of this Section.

The designated official (or officials) shall have the authority to request and receive any public records, including records sent to the Railroad Commission, reports and the like, relating to the status or condition of any permitted oil and gas well necessary to establish compliance with the applicable oil and gas well permit.

It is recommended that the designated official (or officials) contact the local office of the Railroad Commission to seek their assistance in enforcing applicable oil and gas regulations.

Oil and gas advisory committee.

There is hereby created the Oil and Gas Advisory Committee of the City of Midland consisting of licensed petroleum engineers, or engineers with a bachelor's degree, or geologists appointed by a majority vote of the City Council. The Council shall also appoint two members to the committee who have experience in real property development or real estate sales or development. Of the original members, two shall serve for one year, two for two years and the fifth for three years. Subsequent members shall serve staggered terms of three years each. The role of the five-member committee will be to assist the planning division of the City of Midland with the administrative review of oil and gas well permit applications for: (1) technical compliance with this Section and (2) administrative completeness. The committee may also recommend a surface location where there is disagreement between the operator and the owner. The city manager or his designee shall be an "ex-officio" member of the committee.

The oil and gas advisory committee shall be subject to the Texas Open Meetings Act and shall serve at the will of the City Council. All written findings and conclusions of the committee shall be included as part of the city staff report accompanying each permit application, which shall be delivered to the City Council, and a copy of such findings shall be made available to the operator and will be available for public inspection.

The committee shall not be classified as a department, agency or political subdivision of the City and shall have no authority to:

(1)

Exercise judgment and discretion, except in an advisory capacity;

(2)

Make binding orders and judgments;

(3)

Affect the personal or property rights of private persons;

(4)

Examine witnesses, compel the attendance of witnesses, or to hear the litigation of issues on a hearing; or

(5)

Enforce decisions or impose penalties.

The oil and gas advisory committee shall make a final decision within 45 calendar days after the committee has received a full and complete application from the operator. If the committee fails to act within said 45 calendar days, the city manager shall begin the process to have the application considered by the City Council.

Operator's representative.

Every operator of any oil and gas well shall designate at least one representative, who is a resident of the City of Midland, upon whom all orders and notices provided in this Section may be served in person or by registered or certified mail. Every operator so designating such representative shall within ten calendar days notify the City in writing of any change of representative or the mailing address of such representative. Every operator shall attempt to maintain at all times during the term of an oil and gas well permit, an office address within the City of Midland.

(G)

No vested property rights of permit holder.

An oil and gas well permit does not create a property interest or a vested right in the permittee. This Section of the Midland City Code creates no property interest or right of entitlement of any kind.

(H)

Application procedure.

The planning division shall coordinate the review of the application with the oil and gas advisory committee. If the permit "application" is found to be administratively complete, the director of planning shall forward the application, together with the findings and recommendations of the committee, to the City Council.

Once the committee has rendered its final report, the City Council shall consider the application as set forth below:

Oil and gas well permit.

Prior to granting any permit to drill an oil and gas well, a public hearing shall be held before the City Council. Prior to the 15th day before the hearing date, notice of the time and place of the public hearing shall be published in the official newspaper of the City. Prior to the tenth day before the hearing date, written notice of the time and place of the public hearing shall be sent to each owner, as indicated by the most recently approved municipal tax roll from the Midland Central Appraisal District, of real property within a direct line radius of 860 feet from the proposed oil and gas well drill bore.

For the purposes of computing total land area described herein, streets and alleys shall be included.

The Council shall not vote on granting or denying the permit at the Council meeting when the public hearing is held. The council shall allow 30 days for written input from the public and the operator, after the public hearing is concluded. All written material shall be submitted to the city manager. The Council shall vote on the Permit at a regular meeting.

Prohibition; well spacing.

No oil and gas well shall be allowed within 500 feet of any occupied residence, occupied commercial structure or occupied public building, church, public or private school, hospital, nursing home, college or university, or daycare center; 330 feet of any public athletic field; or 135 feet of any publicly dedicated street or alley right-of-way, within the City of Midland.

A variance may be requested under this subsection. In order to grant the variance, the Council must determine that the granting of the permit will not present a health or safety risk. The Council shall vote on the variance at a regular meeting.

In the absence of agreement with the surface owner, identified pursuant to the most recently approved municipal tax roll of the Midland Central Appraisal District, or a title opinion prepared by an attorney licensed by the State of Texas, or take-off by a certified petroleum landman or a title commitment by an abstract company, the City Council shall consider all the factors listed in Subsection (I) hereof, when determining whether to grant or deny a permit. If the application is denied, the operator may appeal to the City Council under Subsection (Z) hereof, and the operator shall have the burden of showing that the denial of the permit is likely to result in a compassable taking under the Texas or United States Constitutions. If the operator and surface estate owner reach an agreement, the council will not consider Subsection I (15—18) but will consider the remainder of Subsection I.

An owner of private residences or commercial structures may request a variance from the City Council in order to receive a building permit for the construction of a residence or building within 500 feet of any previously permitted oil and gas well. Any application for such a variance must be accompanied by a notarized petition signed by the owners of the residence or commercial structure that seeks to obtain a building permit within 500 feet of the previously permitted oil and gas well. In the event a variance is granted by the City Council, the Council may authorize the building official to issue a building permit to the applicant. Any building permit issued under this paragraph shall include the following notation: "This building permit is issued for a structure to be constructed on a lot or tract located within 500 feet of a previously permitted Oil and Gas Well."

In no event shall a building permit be issued by the City of Midland for any private residence or commercial building to be constructed, either in whole or in part, within 300 feet of a previously permitted but undrilled oil and gas well or 135 feet of an existing oil and gas well or within 150 feet of a previously permitted tank battery.

In no event shall a building permit be issued by the City of Midland for any church, public or private school, hospital, college or university, nursing home, or day care center, within 300 feet of a previously permitted oil and gas well or within 350 feet of a previously permitted tank battery.

In the event an oil and gas well drill permit has expired without drilling commencing at the permitted location, or in the event the oil and gas well is abandoned as described by the Texas Railroad Commission and this Section, the location of the proposed or abandoned oil and gas well drill site shall not trigger the requirements of this Subsection when requesting a building permit.

A request for a variance under this Subsection shall not require a public hearing held before the City Council. In order to grant the variance, the council must determine that the granting of the permit would not present a health or safety risk to the applicant or subsequent occupants of the structure.

An owner of property may request the setback variance at any time, including at the time of platting; provided, however, any plat approved permitting the construction of a private residence or commercial structure within such proximity to an existing well shall contain a notation on the face of the plat reflecting the approval of the setback variance.

The Council shall vote on the variance at a regular meeting. A majority vote of the Council is required to pass a resolution authorizing a variance under this Subsection.

No property right; notices.

Issuance of any permit required by this section shall bestow upon the operator the privilege of conducting the operations detailed in the permit. In no event shall any such permit bestow a property right to an operator to conduct the operations detailed in the permit.

The failure of the City to provide any notice required by this section shall not give rise to a private cause of action by any aggrieved owner, operator, person or persons. It being the specific intent of the City Council that all city-initiated notices shall be for informational purposes only and not for the purposes of affording any owner, operator, person or persons with additional due process.

(I)

Authority of City Council; Considerations.

The Midland City Council shall have the power and authority to grant or deny any oil and gas well permit within the City limits of the City of Midland. The City Council shall consider the following when determining whether to grant or deny a permit for an oil and gas well within the City of Midland:

The particular character and value of the improvements already erected on the property or in the vicinity.

Public health and safety issues concerning the particular location of the proposed oil and gas well.

Whether an oil and gas well permit is necessary to permit the applicant the same rights in the use of his property that are presently enjoyed by other properties in the vicinity.

Whether the granting of an oil and gas well permit on the specific property will adversely affect any other feature of the comprehensive master plan of the City of Midland.

Whether the permit, if granted, will have a material detriment to the public welfare or injury to the use, enjoyment, or value of property in the vicinity.

Whether the drilling of the proposed oil and gas well would conflict with the orderly growth and development of the City of Midland.

Whether there are alternative well site locations.

Whether the operations proposed are consistent with the health, safety and welfare of the public when and if conducted in accordance with oil and gas well permit conditions to be imposed.

Whether there is reasonable access for the City of Midland fire personnel and fire fighting equipment.

The reasonable use of the mineral estate by the mineral estate owner(s) to explore, develop, and produce the minerals; and

The availability of alternative drill sites.

Whether the applicant is a reasonable and prudent operator. The council shall consider the number of citations issued for previous violations, convictions in municipal court, notice from city officials for non-compliance, failure to promptly rectify violations, conditions of well sites previously permitted, condition of well sites in the City of Midland even if not permitted, condition of well sites in the City's extraterritorial jurisdiction, and input from citizens or the applicant; the request for inspection and extension of permit results; and infractions or violations submitted to or found by the Railroad Commission on previous oil and gas well permitted and drilled.

Whether to grant or deny the permit and request that the surface estate owners and the operator continue negotiations.

Whether to grant or deny the permit leaving the parties to seek a judicial remedy.

Any agreements between the operator and surface estate owners.

The City Council may propose a surface location for the drilling of an oil and gas well different than the location proposed by the operator; and

The spacing density of previously permitted wells.

(J)

Permit application and filing fee.

Every application for a permit to drill any oil and/or gas well, or to install any water and/or gas re-pressurizing or injection facility (hereinafter "oil and gas operations") within the corporate limits of the City shall be in writing; shall be signed by the operator or some person duly authorized to sign on the operator's behalf before a notary public; shall be filed with the planning division of the City of Midland; shall be accompanied by a non-refundable filing fee of $4,000.00; and shall only be considered when complete. A separate complete application and permit shall be required for each well.

The date of the application.

The name and address of the operator as identified on the W-1 filed with the Railroad Commission.

Name of operator's representative.

The address within the City of Midland, Texas, of the office of representative, including telephone number and fax number. Operator's representative must have an office within the corporate limits of the City of Midland, Texas.

A title opinion prepared by an attorney licensed by the State of Texas, or a take-off from a certified petroleum landman or a title commitment prepared by an abstract company, or a letter signed by an attorney licensed to practice law in the State of Texas indicating that the applicant has a legal right to develop the mineral estate that is the subject of the oil and gas well permit application.

The name and address of the mineral estate lessor (under the applicable oil and gas lease).

A title opinion prepared by an attorney licensed by the State of Texas, or a take-off from a certified petroleum landman or a title commitment prepared by an abstract company, or the most recently approved municipal tax roll from the Midland Central Appraisal District listing the name(s) and address(es) of all surface owners within 860 feet of the proposed surface location of the well (Rather than along any right-of-way, this distance shall be measured directly, in a straight line (hereinafter "measured directly").

General description of the current surface use within 860 feet, measured directly, of the proposed surface location for the well.

A location site plan, including a legal description drawn to scale, and produced by a professional land surveyor licensed in the State of Texas, showing the following:

The proposed operation-site;

The proposed surface location of the well;

The proposed routing of any gathering lines;

The location of all improvements and equipment, and other facilities, including, but not limited to, tanks, pipelines, separators, and storage sheds;

Lot lines shown on any recorded subdivision plat for the area;

Right-of-way or public easement boundaries;

City limit boundaries within 860 feet of the proposed surface location of the well;

Topographic features; and

Proposed fencing and landscaping.

A map, plat, or satellite/aerial photo depicting any residence, commercial structure, public building, or any publicly dedicated street or alley, right-of-way or permanent accessory structure used in connection with such residence, structure or building surrounding such proposed drill site, including marking two circles on the map, plat or satellite photo depicting a radius of 500 feet and a radius of 860 feet from the proposed surface location of the well.

Proposed hole size, casing program and cementing program. The surface portions of the hole shall have cement circulated to the surface of the hole.

A map showing proposed transportation route and road for equipment, chemicals or refuse products used or produced by the oil and gas operations. These are the only roads that may be used unless an amended route plan is filed and approved.

Proposed well name.

A description of public utilities required during drilling and operation.

A description of the water source to be used during drilling.

A copy of the approved Railroad Commission permit to drill, Form-W-1, together with attachments and survey plats which are applicable to the drill site and operation site.

A copy of the determination by the Texas Commission on Environmental Quality of the depth of usable quality ground water.

Irrevocable letter of credit or certificate of deposit or other approved financial assurance in accordance with Subsection (K)2 of this Section.

Insurance certificate(s) in accordance with Subsection (K)3 of this Section.

A copy of approved Railroad Commission Form W-1, Permit to Drill, shall be furnished to the city secretary prior to commencement of drilling operations.

A drainage plan approved by the city engineer, if required by the city engineer.

An emergency action response plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of oil and gas wells. Said plan shall use guidelines as established by the Railroad Commission, Texas Commission on Environmental Quality, Department of Transportation, and/or the Environmental Protection Agency. Plan should include "drive-to-maps" from public rights-of-way to drill site.

A hazardous materials management plan shall be submitted and be on file with the fire department.

The names, local physical addresses (not P. O. Box numbers), and local telephone numbers of one individual who is responsible to ensure compliance with all conditions of the oil and gas well permit, along with any applicable ordinances. The said individual must provide to the city secretary a notarized statement that the individual understands and agrees that he or she is responsible for ensuring compliance with all conditions of the oil and gas well permit, along with any applicable laws, regulations and ordinances by any and all employees, contractors or subcontractors of operator at the oil and gas operation site. Further, he or she must state before a notary that, in the event said individual is for any reason relieved of his or her position regarding said responsibilities, that the name, local address and local telephone number of a responsible replacement will be provided to the city secretary. Instead of the requirements stated above, the operator may provide two telephone numbers that will be answered by an answering service, seven days a week, 24 hours a day.

The name and address, including a 24-hour phone number of the person or company representative to be notified in case of an emergency.

A list and location of each well the operator has permitted in the City. The list and location shall include any well that the operator owns a controlling interest in or is the operator of. The operator shall certify that the well(s) comply with all applicable permits and ordinances. An application for a new permit may not be considered until all well(s) previously authorized by permit shall be brought into compliance with the applicable permit or ordinances.

If available, a list of alternative locations developed in consultation with the oil and gas advisory committee from which the operator may reach the same mineral estate and potentially drill a producing oil and/or gas well.

A fencing plan, as required by Subsection (M) of this Section and an irrigation plan containing the detail set forth in Subsection (M) of this Section.

A road repair agreement must be attached which has been approved by the applicant. However, the approval of any road repair agreement is subject to council approval by a separate resolution. The City Council may waive this requirement upon a showing by the operator that no City-owned streets or alleys will be used by the operator in connection with its oil and gas well operations. The City Council shall require a letter of credit, certificate of deposit or surety bond in the amount of not less than $25,000.00 for every approved road repair agreement. If an operator has three or more road repair agreements in effect, that have been approved by the City Council, the operator may petition the Council to consolidate all repair agreements into one agreement. The council may grant the request and require a letter of credit, certificate of deposit or surety bond in an amount not less than $75,000.00. This letter of credit or certificate of deposit is in addition to the security required in Subsection (K)2. hereof.

A concept plan depicting the proposed operations site, tanks, roads, power lines and pipeline routes sufficient to allow the City to determine that the future development will not be unreasonably restricted. The concept plan shall not constitute an application for development under the City's development ordinances or Chapter 245 of the Texas Local Government Code and is simply intended to allow the city to determine that the orderly growth and development of the City and its ETJ will not be unreasonably hindered by the proposed well and pipelines.

A written statement from the oil and gas advisory committee confirming that the application is complete and complies with the technical requirements of this Section, subject to final approval of the City Council.

All electric lines to production facilities.

A plan detailing the construction, location, and closure of pits used for drilling and completion operations.

36.

A copy of the letter(s) sent to 100 percent of the surface owners within 860 feet of the well as shown in the most recently approved City municipal tax rolls as found in the Midland Central Appraisal District. The letter(s) must indicate that it was sent certified mail. The letter shall notify the surface owners that an application for an oil and gas well permit has been filed in accordance with this Section and that a copy of the application will be made available for review at the planning division of the City of Midland. The application will not be forwarded to the oil and gas advisory committee for consideration until at least 21 days have passed from the date of the letter(s).

In connection with its review of an application for an oil and gas well permit, the City Council may determine that it is necessary to hire an oil and gas specialist to assist the Council in reviewing the application. If such a determination is made, the City Council will provide the operator with a written "scope of work" that the Council proposes for such specialist. The city council and the operator will attempt to agree upon the "scope of work"; however, the decision of the City Council shall control. The Council may request the committee's assistance with its review of the application.

(K)

General conditions of all oil and gas well permits.

General obligations of operator.

The operator shall be required to:

Comply with the terms and conditions of this Section, the Midland City Code, the rules and regulations of the Railroad Commission, and any other state or federal agency that enforces land use, mineral use, or environmental protection regulations.

Promptly clear drill and operation sites of litter, trash, refuse and other substances used, allowed, or occurring in the operations, and after abandonment or completion, grade, level, and restore such property to the same surface conditions as nearly as practicable as existed before operations.

Promptly pay all fines, penalties and other assessments imposed due to breach of any of the conditions herein. If the operator does not agree that a breach has occurred, the operator may file a written objection with the city manager within ten days of being notified of the alleged breach. The city manager shall review the objections and give the operator the opportunity to be heard and present facts that the operator deems relevant.

Promptly restore to its former condition any public property damaged by the oil and gas operation.

Except as permitted by Subsection U, hereof, operator shall not, either directly or indirectly, assign all or any part of an oil and gas well permit.

If required by the permit, operator shall execute a "road repair agreement" between itself and the City of Midland and submit all necessary information and insurance and guarantees to the City prior to the issuance of any oil and gas well permit under this Section.

Irrevocable letter of credit, certificate of deposit, or surety bond.

Prior to the issuance of an oil and gas well permit, the operator shall provide the city attorney with a guarantee in the form of an irrevocable letter of credit, certificate of deposit, or surety bond in the name of the City. The applicant shall be entitled to receive the interest earned if the certificate of deposit reaches maturity. The letter of credit, certificate of deposit, or surety bond must satisfy the following:

The letter of credit, certificate of deposit or surety bond shall be issued by a reliable bank or insurance carrier authorized to do business in the State of Texas;

The letter of credit, certificate of deposit or surety bond shall be effective starting on or before the effective date of the oil and gas well permit;

The letter of credit, certificate of deposit or surety bond shall be in the amount of $25,000.00;

The letter of credit, certificate of deposit or surety bond shall remain in full force and effect for a period of three years; and

The letter of credit, certificate of deposit or surety bond shall authorize the City of Midland to draw upon such credit in the event the city manager, or his designee, determines said credit is needed to remedy any violation of this Section.

If the well is still producing or if the well has not been abandoned or plugged, the operator must renew the letter of credit, certificate of deposit or surety bond on or before 120 days prior to the expiration of the letter of credit, certificate of deposit or surety bond.

The City of Midland may draw upon the letter of credit, certificate of deposit or surety bond to recover costs of repairs, modifications, or construction to remedy any violations by the operator under this Section. The City may make partial or full draws of the letter of credit, certificate of deposit or surety bond. The City may draw upon the letter of credit, certificate of deposit or surety bond in the event the City has not received a new letter of credit, certificate of deposit or surety bond within the 120-day renewal time period required above.

The operator shall maintain the principal amount of $25,000.00 in the form of a letter of credit, certificate of deposit or surety bond at all times throughout the term of the permit. In the event such letter of credit, certificate of deposit or surety bond is not restored to $25,000.00 within ten days after the date of the reduction of the letter of credit, certificate of deposit or surety bond, the City may draw and receive the remaining balance of the letter of credit, certificate of deposit or surety bond, and the oil and gas well permit shall be suspended on such date and the operator's right to operate under oil and gas well permit shall immediately cease until the operator files the required letter of credit, or certificate of deposit or surety bond.

If an operator has three (3) or more oil and gas well permits in effect which have been approved by the City Council, the operator may petition the council to consolidate the letter of credits, certificate of deposits or surety bonds into one letter of credit, certificate of deposit or surety bond that would cover all oil and gas wells in the City limits. The consolidated letter of credit, certificate of deposit or surety bond shall be in an amount determined by the City Council as sufficient to cover the costs of repairs, modifications, construction or to remedy violations by the operator but in no event shall the amount be less than $75,000.00.

Insurance.

In addition to the letter of credit, certificate of deposit or surety bond required above, the operator shall carry a policy or policies of insurance issued by an admitted insurer or eligible surplus lines insurer authorized to do business in the State of Texas. In the event such insurance policy or policies are cancelled, any oil and gas well permit issued under this Section shall be suspended on such date of cancellation and the operator's right to operate under such oil and gas well permit shall immediately cease until the operator files additional insurance as required herein.

General requirements applicable to all polices.

The City, the City's officials, employees, agents and officers shall be endorsed as an "additional insured" on all policies, except under operator's workers compensation policy.

All policies shall be written by an admitted insurer or eligible surplus lines insurer authorized to do business in the State of Texas.

Deductibles shall be listed on the certificate of insurance and shall be on a "per occurrence" basis unless otherwise stipulated herein.

vi.

All policies shall be endorsed with a waiver of subrogation providing rights of recovery in favor of the City.

vii.

Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirements specified herein.

viii.

Each policy shall be endorsed to provide the City a minimum 30-day notice of cancellation, non-renewal, and/or material change in policy terms or coverage. A ten-day notice shall be acceptable in the event of non-payment of premium.

ix.

Upon request, certified copies of all insurance policies shall be furnished to the City.

xi.

Operator shall have the right to maintain a qualified, self-insurance plan and/or maintain prudent levels of self-insured retentions for insurance coverage required in this section; however, operator shall remain financially obligated for all self-insured retention amounts and deductibles. To the extent of the liabilities assumed by the operator, operator's insurance shall be primary coverage as to any liabilities of the City.

Standard commercial general liability policy. This coverage must include premises, operations, blowout or explosion, products, completed operations, sudden and accidental pollution, blanket contractual liability, underground resources damage, broad form property damage, independent contractors protective liability, accidental death and personal injury. This coverage shall be a minimum combined single limit of $1,000,000.00 per occurrence for bodily injury, accidental death, and property injury.

Excess or umbrella liability.

$1,000,000	Excess, if the operator has a stand-alone environmental pollution liability (EPL) policy.
$10,000,000	Excess, if the operator does not have a stand-alone EPL policy. Coverage must include an endorsement for sudden or accidental pollution. If seepage and pollution coverage is written on a "claims made" basis, the operator must maintain continuous coverage and purchase extended coverage period insurance when necessary.

Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, refuse material or other irritants, contaminants or pollutants.

Workers compensation and employers liability insurance.

Workers compensation benefits shall be Texas statutory limits.

Employers liability shall be a minimum of $1,000,000.00 per accident.

Such coverage shall include a waiver of subrogation in favor of the City of Midland and provide coverage in accordance with apphlicable state and federal laws.

Automobile liability insurance.

Combined single limit of $1,000,000.00 per occurrence for bodily injury and property damage.

Coverage must include all owned, hired and not-owned automobiles.

Certificates of insurance.

The company must be licensed or authorized to do business in the State of Texas.

Set forth all endorsements and insurance coverage according to requirements and instructions contained herein.

Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the City. All policies shall be endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT THIRTY (30) DAYS ADVANCE WRITTEN NOTICE TO THE OWNER AND THE CITY, EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE, TEN (10) DAYS ADVANCE WRITTEN NOTICE IS REQUIRED".

Original endorsements affecting coverage required by this section shall be furnished with the certificates of insurance.

vi.

At the request of an operator, the Council may grant a variance to insurance requirements if the Council determines that the insurance procured by the operator is sufficient to protect the City. A variance of this type may be required because of a change in underwriting policies of admitted insurance carriers.

(L)

Specific conditions of all oil and gas well permits; on-site requirements.

Abandoned wells.

All wells shall be abandoned in accordance with the rules of the Railroad Commission and pursuant to Subsection (O) of this Section.

Automated audible alarm system.

After completion, the appropriate system for flowing gas and/or flowing oil wells must be maintained to provide warnings for a substantial drop in pressure, or the release of any oil or gas, or a fire. Said audible alarm system must be approved by the fire marshal prior to installation of production equipment at the flowing gas and/or flowing oil well site.

Blowout prevention.

In all cases, ram-type and annular blowout preventers shall be used on all wells being drilled. In cases where re-working is being performed on a well, ram-type or annular blowout preventers shall be used. Protection shall be provided to prevent blowout during drilling operations as required by and in conformance with the requirements of the Railroad Commission and the recommendations of the American Petroleum Institute. In addition to the blowout preventers stated above, all drilling must be equipped with flow lines and valves commensurate with the working pressures involved as required by the Railroad Commission each blowout preventer shall be a double-ram design with blinds and pipe. After surface casing has been set and cemented to surface, each blowout preventer shall be tested and witnessed by operator's personnel and the results of such test shall be documented in the operator's well file. Testing expenses shall be the responsibility of the operator. The operator shall provide a complete report of the well blowout prevention test to the city manager within fifteen (15) days of the test.

Casing.

The surface portions of the well shall be cased with cement circulated to the surface. All surface and intermediate casing must comply with all applicable rules of the Railroad Commission and the Texas Commission on Environmental Quality.

Compliance.

Operator shall comply at all times with all applicable federal, state and City requirements.

Discharge.

No person shall place, deposit, discharge, or cause or permit to be placed, deposited or discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substances or any refuse including water or brine from any oil and gas operation or the contents of any container used in connection with any oil and gas operation in, into, or upon any right-of-way, alleys, streets, lots, storm drain, ditch or sewer, sanitary drain without permits from the appropriate cIty departments, or any body of water or onto any private property in the City.

Drilling notice.

The operator shall provide at least a 48-hour notice to the city manager prior to mobilizing the drilling equipment. In addition to notification to the city manager, the operator shall provide a notice to the owners of at least 48 hours or more prior to mobilizing the drilling equipment through a publication in the Midland Reporter Telegram and a posting in the city secretary's office.

Drill stem testing.

No drill stem testing shall be allowed.

Dust, vibration, odors.

All drilling and production operations shall be conducted in such a manner as to minimize, so far as practicable, dust, vibration, or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for the production of oil, gas and other hydrocarbon substances in urban areas. All equipment used shall be so constructed and operated so that, vibrations, dust, odor or other harmful or annoying substances or effect will be minimized by the operations carried on at any drill site or operation site or from anything incident thereto, to the injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in industry standards of drilling and production in this area shall be adopted as they become available if capable of reducing factors of dust, vibration and odor.

Electric lines.

All electric lines going under City roadways must be bored and encased pursuant to city standards. All electric lines to production facilities may be overhead service unless the surrounding neighborhood is developed with underground electric service. If the surrounding neighborhood is developed with underground electric service, then all electric lines to production facilities shall be buried underground.

Electric motors.

Only electric prime movers or motors shall be permitted for the purpose of pumping wells. No electric power shall be generated on location. All electrical installations and equipment shall conform to the City ordinances and the appropriate national codes.

Emergency response plan.

Prior to the commencement of any oil or gas production activities, operator shall submit to the city manager an emergency response plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of oil and gas wells. Said plan shall use existing guidelines established by the Railroad Commission, Texas Commission on Environmental Quality, Department of Transportation and/or the Environmental Protection Agency and City fire code. A copy of the emergency response plan shall be kept at the operator's office.

Equipment painted.

All production equipment on the site shall be painted beige and maintained at all times, including pumping units, tanks, buildings and structures. The City shall regularly inspect all painted structures and inform operator when repainting is necessary. Operator shall repaint within 60 days written notice from City. When requiring re-painting of such facilities, the city manager shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance. Upon request of the operator, a color other than beige may be approved by the City Council.

Explosives.

Use of an explosive perforating gun during completion operations and during plugging operations and down-hole operations that require such explosives shall be allowed.

Fire notice.

In the event of a fire or discovery of a fire, smoke, or unauthorized release of flammable or hazardous materials on any property, the operator shall immediately report such condition to the fire department in accordance with the City of Midland fire code. The reporting limits for hazardous materials release shall conform to the requirements of the railroad commission and not exceed any state or federal permitting limit.

Fire prevention; sources of ignition.

Firefighting apparatus and supplies as approved by the fire marshal and required by any applicable federal, state, or local law shall be provided by the operator, at the operator's cost, and shall be maintained on the drilling site at all times during drilling and/or reworking operations. The operator shall be responsible for the maintenance and upkeep of such equipment.

Fracing operations.

No fracing or formation fracture stimulation operations may take place before 7:00 a.m. or after 7:00 p.m.

Fresh water wells.

The measurements required by this Subsection shall be in a direct line from the closest oil and gas well to the fresh water well.

Upon request of an owner of a fresh water well within 860 feet of an oil and gas well, who has been duly notified, operator shall provide the city manager with a "pre-drilling" and "post-drilling" water analysis from any such existing fresh water well(s).

Operator shall conduct and fund annual testing for water wells that have been tested pursuant to Subsection (L)18.a. above. This testing program shall continue for the production life of the well plus three years for a producing well, or for a period of one (1) year for a dry hole.

Compressors.

No onsite compressor used to "lift gas" shall be used. No compressor of any type shall be used. In the event operator determines the use of such compressor is necessary, a detailed plan shall be submitted by operator to the City Council for consideration. An on-site compressor plan shall include the following information:

The physical size of the compressor;

The power source of the compressor;

The horsepower of the compressor;

The noise of the compressor; and

The manufacturer of the compressor.

No compressor of any type shall be used unless a plan is approved by the City Council.

Gas emission or burning restricted.

Operator shall not allow, cause or permit gases to be vented into the atmosphere or to be burned by open flame except as provided by law or as permitted by the Railroad Commission. If the venting of gases into the atmosphere or the burning of gases by open flame is authorized as provided by law or as permitted by the Railroad Commission, then such vent or open flame shall not be located closer than 330 feet from any building not used in operations on the drilling site and such vent or open flame shall be screened in an effort to minimize detrimental effects to adjacent owners. Operator shall provide notice to the fire marshall prior to any open flaring of gas. Gas may not be flared unless for a limited time when completing, or recompleting a well, and only if flaring will not constitute a fire hazard to other owners. If flaring gas, it shall not be burned at a rate greater than 3,000 mcfd. No gas may be flared between the hours of 7:00 p.m. and 7:00 a.m., except in an emergency.

Gas processing onsite.

Grass, weeds, trash.

All drill sites and operation sites shall be kept clear of high grass, weeds, and combustible trash within a radius of 100 feet around any tanks, production facilities, or producing wells.

Hazardous plan.

Hazardous materials management plan (HMMP) and all material safety data sheets (MSDS) for all hazardous materials that will be located, or stored, on the operations site shall be submitted to the city manager.

Lights.

Except under emergency circumstances, operator shall not operate any lights located at the drill site. To the extent practicable, and taking into account safety considerations, emergency site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within 300 feet. This paragraph does not apply during initial drilling operations.

Monitoring for H2S gas.

If required by the Railroad Commission, equipment for the monitoring of H 2 S gas shall be used during drilling. The operator will comply with all requirements found in Statewide Rule 36 of the Railroad Commission, as amended. Within 60 days after completion, and annually thereafter, operator shall submit to the city manager results of testing to determine the concentration of H 2 S produced from the well. If the results of the H 2 S testing proves to be 100 PPM H 2 S or greater, the operator is responsible for determining the 100 PPM H 2 S radius of exposure for each well and production facility. Wells and facilities where the concentration of H 2 S is equal to or greater than 100 PPM will be considered "Sour." Safety systems described herein must be approved by the fire marshall.

The following safety alarms and equipment are required at the well site of all wells that are capable of producing at a sustained rate of at least 125 barrels of oil per day and/or 300 MCF of gas per day and for "sour" wells whose 100 PPM H 2 S radius of exposure is greater than 15 feet:

H 2 S monitors located along the fencing, as set forth in Subsection M (for "sour" wells only).

Automated audible alarms to provide warnings for a substantial drop in pressure or for the presence of H 2 S in concentrations greater than 100 PPM.

Automated valve to shut-in production from the well if a substantial drop in pressure or if the presence of H 2 S in concentrations greater than 100 PPM is detected.

The following safety alarms and equipment are required at "sour" tank battery facilities:

H 2 S monitors located along the fencing, as set forth in Subsection M.

Automated audible alarm to provide warnings for the presence of H 2 S in concentrations greater 100 PPM.

An electrical device capable of shutting down power to all "Sour" wells producing into the battery in the event H 2 S in concentrations great than 100 PPM is detected.

Muffling exhaust.

Pits.

The following applies for pits used for drilling and completion operations:

No pit shall be placed in a floodplain without obtaining a floodplain development permit from the City department of development services.

No fresh water pit may be placed in any city recognized drainage way, FEMA floodplain or floodway. Construction of the fresh water pit must comply with all City, state and federal regulations.

The use of earthen pits shall be allowed so long as the construction, use, dewatering and closure of such pits meets or exceeds the requirements of the applicable Railroad Commission rules and Texas Commission on Environmental Quality rules. In addition to compliance with applicable Railroad Commission rules, and Texas Commission on Environmental Quality rules, such earthen reserve pits shall also meet the following requirements;

(i)

the maximum size of a reserve pit shall be no greater than 200 feert by 200 feet;

(ii)

The pits shall be lined with a plastic liner having a minimum thickness of eight mil reinforced polyethlene;

(iii)

Reserve pits used in drilling operations shall be fenced on all open sides during such operations and shall be enclosed on all sides once Drilling operations have ceased;

(iv)

Reserve pits shall be closed within 180 days of the cessation of drilling operations;

(v)

Drill cuttings may be disposed of on the drill site using a deep burial method provided that the burial pit containing the cuttings is located entirely within 135 feet of the surface location of the well, provided that all free water has been removed prior to burying the cuttings, and an impermeable liner is placed above the cuttings prior to covering the cuttings and liner with top soil, and provided that the burial pit is constructed in such a manner that the cuttings will be covered with a minimum of 36 inches of clean, compactable soil. A survey and description of the location of any closed pit used in connection with the drill site shall be recorded in the property records of the county in which the real property is located.

Salt water wells.

No commercial salt-water disposal wells that receive water by truck shall be located within the City of Midland. In the event the operator determines that the use of a non-commercial salt-water well is necessary, a detailed plan shall be submitted by the operator to the City Council for consideration. No salt water disposal well of any type shall be used unless a plan is approved by the City Council.

Signs.

A sign shall be immediately and prominently displayed at the gate on the temporary and permanent site fencing erected pursuant to Subsection (M) of this Section. Such sign shall be durable material, maintained in good condition and, unless otherwise required by the Railroad Commission, shall have a surface area of not less than two square feet nor more than four square feet and shall be lettered with the following:

Well name and number;

Name of operator;

The emergency 911 number; and

A 24-hour phone number that will provide an emergency phone number of operator's representatives as stated in Subsection F.

Permanent weatherproof signs reading "DANGER NO SMOKING OR OPEN FLAME ALLOWED IN THIS AREA" shall be posted immediately upon completion of the well site fencing at the entrance of the well site and tank battery or in any other location approved or designated by the fire chief of the City. Sign lettering for this sign shall be two (2) inches or greater in height and shall be red on a white background or white on a red background. Each sign shall include the emergency notification numbers of the fire department and the operator, well and lease designations required by the Texas Railroad Commission.

Provide a National Fire Prevention Association (NFPA) 704 diamond hazard identification signs are required at the entrance to the operation site adjacent to the operator's sign if chemicals are present. A label must be located on each chemical tank indicating exact chemicals that may be contained in such tank. Text shall be minimum two inches or greater in height, contrasting with the background color.

Storage of equipment.

Storage of equipment and materials shall be minimized and limited to the immediate operational needs of the well. Lumber, pipes, empty drums, trucks, trailers, automobiles, junk tubing, casing and rods shall not be left on the operation site except when drilling or reworking operations are being conducted on the site.

Tank battery facilities.

At the tank battery for either oil and/or gas wells a sensor for fire detection should be appropriately placed near heater treaters, separators, and oil storage tanks that would allow an automated valve placed at the header to be closed in the event of a detected fire. All storage tanks shall be equipped with a secondary containment system. The secondary containment system shall be a minimum of three feet in height and one and one-half (1½) times the contents of the total tank volume. Drip pots shall be provided at the pump out connection to contain the liquids from the storage tanks. No storage tank shall be over 16 feet in height. All storage tanks shall be built on an adequate foundation with a 12-mil liner being placed beneath each tank, extending a minimum of three feet beyond the edge of each tank.

Operator must use portable steel storage tanks or fiberglass tanks for storing all fluids from the well. Tanks must meet the American Petroleum Institute standards. All tanks must have a vent line, lightning arrester and pressure relief valve. All tanks must be enclosed by a fence as required by Section (M) herein. No tank shall exceed 16 feet in height. No tank battery shall be constructed within 500 feet of any occupied residence, occupied commercial structure or occupied public building, unless a variance is granted by the City Council.

Drilling mud, cuttings, liquid hydrocarbons and all other field refuse derived or resulting from or connected with the drilling, re-working or deepening of any well shall be discharged into a steel pit or an approved earthen pit. All disposals must be in accordance with the rules of the Railroad Commission and with a plan submitted to and approved by the city manager. Water stored in on-site tanks shall be removed as necessary.

All refuse shall be disposed of in such a manner as to comply with the applicable air and water pollution control regulations of the state, the conditions of this permit, and any applicable ordinance of the City.

Temporary flowback tanks shall be removed within 90 days after completion date of the well at the pad site unless permission is obtained from the city manager to extend the time period for no more than 30 days. Completion date is that date which is stated as the "completion or recompletion date" shown on the Form W-2 or G-l filed with the Railroad Commission.

All tanks shall be set back pursuant to the standards of the Railroad Commission and the National Fire Protection Association, but in all cases, shall be at 135 feet from any street or alley right-of-way, 330 feet from any public athletic field, and 500 feet from an occupied residence, occupied commercial structure or occupied public building, church, public or private school, hospital, nursing home, college or university or daycare center unless a variance is granted by the Midland City Council. Operator shall institute operational practices involving the daily monitoring of tank integrity and fluid levels within each tank. The use of a remote monitoring system is acceptable.

All fluids and tank bottoms will be disposed of in accordance with Railroad Commission regulations.

Valves.

Each flowing high volume well must have an automated shut-off valve to shut-in the well's production at the operation site for either a fire or abnormal change in pressure. The fire department shall have access to the operation site and the shut-off valve in an emergency.

Work hours for site development.

No construction activities involving the excavation of, demolition of, alteration to, or repair work on any access road or pad site shall occur before 7:00 a.m. or after 7:00 p.m.

Wellhead status after fracing.

The wellhead between the time of drilling/completion and tank battery construction, shall be:

Surrounded with a six-foot tall temporary chain link fence having a gate and lock until permanent fencing is installed;

The gate shall be locked at all times, except when the operator is involved in active operations;

The cellar shall be filled or closed; and

The Bradenhead shall be piped to the surface and open to the atmosphere or have an observable and adequate pressure gauge with operable test valve.

Inspections.

In accordance within applicable law, the city manager, or his designee, at his sole cost, risk and expense shall have a right of entry to the drill site/operation site and may, at his discretion, visit the drill site/operation site to make sure operator is in compliance with the requirements of this Section.

36.

Violation.

In the event a violation of this Section is determined by the City's official (or officials), the City may act in any or all of the following ways:

The City, through its designated official (or officials), may issue a notice of violation to the operator, its agent, agents, employees or independent contractors (whether on site or not), or to any person participating in the drilling of the well. Such notice may include a citation to appear before the Midland Municipal Court.

If the city manager, or his designee, finds the operator to be in violation of any requirement of the applicable oil and gas well permit, then the City reserves the right after giving ten business days written notice to the operator regarding such violation, to draw upon the letter of credit, certificate of deposit or surety bond as outlined in Subsection (K) of this Section, in order to remedy such violation. In the event that a violation is not capable of being remedied within such ten business day period, then operator must have commenced efforts to remedy such violation within said ten-business day period and thereafter continue with such efforts to remedy said violation with due diligence until completed, and as long as the operator continues with efforts to remedy a violation with due diligence, the City shall not draw against the letter of credit, certificate of deposit or surety bond. In the event the City makes a claim on the letter of credit, certificate of deposit or surety bond pursuant to the terms hereof, reinstatement of the full amount of the letter of credit, certificate of deposit or surety bond shall be a condition to the cure of the violation leading to such claim. Alternatively, if the city manager finds the operator to be in violation of any requirement of the applicable oil and gas well permit, the City manager shall give written notice to the operator that unless all violations are corrected within ten business days of the operator's receipt of notice of the violation, the city manager shall recommend to the City Council that the oil and gas well permit be cancelled by the City Council. In the event that a violation is not capable of being remedied within such ten-business-day period, then operator must have commenced efforts to remedy such violation within said ten-business-day period and thereafter continue with such efforts to remedy said violation with due diligence until completed, and as long as the operator continues with efforts to remedy a violation with due diligence, as determined by the City, the City shall not draw against the letter of credit, certificate of deposit or surety bond. If the City Council determines to consider the cancelling of the permit, it shall give the operator written notice of the date and time of the hearing and shall give the operator the opportunity to be heard and present facts the operator deems relevant. The cancelling of a permit requires the majority vote of the City Council.

Prosecution of violations of this Section shall be given priority and expedited upon the municipal court docket. Provided, however, that this subsection does not grant or guarantee persons cited a right to expedited consideration of their citation before the Midland Municipal Court.

In the event that there exists an imminent threat to public health and safety, a certified peace officer, in conjunction with the Railroad Commission, may order the temporary cessation of operations. An operator may appeal the order to an appropriate Court in Midland County, Texas and request an expedited hearing. With respect to the contestation of an order issued pursuant to this subsection, an operator retains all of its legal remedies.

(M)

Fencing and landscaping.

Fences.

A fencing plan shall be submitted, said plan containing a description of the building materials, dimensions, and locations of the proposed fence/walls and gates. The plan shall take into consideration the surrounding area and neighborhood.

At a minimum, tank battery facilities, wellheads and any production equipment associated with oil and gas wells shall be enclosed by a chain link fence at least seven feet in height with beige-colored slats woven through the chain link, topped with three (3) strands of barbed wire angled outward or concertina wire, and shall be equipped with a locking gate. Gates shall be provided with a combination catch and locking attachment for a padlock, and shall be kept locked except when being used for access to the operation site. Operator must provide the city fire chief with a "Knox Padlock" or "Knox Box with a key" to access the operation site to be used only in case of an emergency.

The City Council may require additional or a different type of fencing to the extent necessary to conform with architectural standards and building materials existing on lots and/or lands immediately adjacent to the well and within 500 feet of the well at the time the oil and gas well permit is issued.

Additionally, if at any time within 24 months following the issuance of an oil and gas well permit, a structure intended for permanent occupancy is constructed within 500 feet of the well, the City Council may require the operator to undertake a one-time revision of the fencing plan to account for architectural standards and building materials associated with such structure to the extent that the revised fencing plan is consistent with, but not better than, the architectural standards and building materials associated with such structure.

Fences shall not be required on drill sites during drilling, completion or re-working operations as long as 24-hour on-site supervision is provided.

Landscaping.

The City will require tree preservation and/or planting measures.

A minimum number of eight trees shall be required to be planted within 25 feet from the outside perimeter of the wall or walls required herein.

At least 75 percent of the trees shall be evergreen.

The minimum size of each tree planted will be at least four inches in diameter measured one foot above ground level.

All trees that die within three years of the date of project completion will be replaced by another replacement tree. The replacement tree carries the same three-year replacement requirement. A replacement of any tree that dies within three years of planting will be replaced by the operator or agent and a new three-year guarantee will begin at the time of replacement.

Scientific Name	Common Name
Pinus eldarica	Afghan Pine, Mondell Pine
Pinus Sylvestris	Russian Pine
Ulmas Crassifolia	Cedar Elm

Operator may submit a plan in lieu of subparagraphs (M)2.a and b above. The operator must describe the type, number, and location of trees to be planted under this Section. The City Council may consider any proposal prepared in accordance with this subparagraph. Any alternative plan shall not be effective unless approved by the City Council.

Operator shall submit an irrigation plan detailing the measures to be taken to adequately irrigate all landscaping, including indicating the proposed water source for irrigation, and the proposed efforts to replace dead or dying screening vegetation. Upon request by the operator, the City may provide access to fresh water to be used for such irrigation if water is readily available and in conformance with City policies and procedures.

In such instances, where City water is not available, a variance may be requested. Additionally, when City water becomes available, the provisions of this subsection shall be required.

(N)

Cleanup and maintenance.

Cleanup after well servicing.

Clean-up after spills, leaks and malfunctions.

After any Railroad Commission reportable spill, leak or malfunction, the operator shall remove or cause to be removed to the satisfaction of the city fire chief and the city manager all refuse materials from any public or private property affected by such spill, leak or malfunction. Clean-up operations must begin immediately. The operator shall comply with all requirements found in Statewide Rule 91 of the Railroad Commission, as amended. If Statewide Rule 91 requires reporting of the spill, the operator shall comply with the notification and reporting requirements found in Statewide Rule 20 of the Railroad Commission, as amended. Upon request the operator shall furnish the city manager with all information filed with the railroad commission. If the operator fails to begin site clean-up immediately the city manager may then employ any cleanup expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which the city manager deems necessary to clean-up such spill, leak or malfunction. The City shall then be able to collect from operator the costs involved in the site clean-up. The City may collect from the posted letter of credit, certificate of deposit or surety bond or any other legal means.

Free from debris.

The public street entrance and property on which a well site is located shall at all times be kept free of mud, debris, pools of water or other liquids, contaminated soil, weeds, brush, trash or other refuse material within a radius of 100 feet around any production facilities, tanks and producing wells.

Painting.

All production equipment shall be painted beige and maintained at all times, including pumping units, tanks, secondary containment and buildings or structures. When requiring painting of such facilities, the city manager shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance.

Blowouts.

In the event of the loss of control of any well, operator shall immediately take all reasonable steps to regain control regardless of any other provision of this permit and shall provide the city manager with the same information as required to be filed with the Railroad Commission under Statewide Rule 20 as soon as practicable.

Cleanup after drilling/completion.

After the well has been drilled and completed, the operator shall clean the drill site, complete restoration activities and repair all damage to public property caused by such operations within 90 days as specified previously in Subsection (L)27.

(O)

Drilled and abandoned wells.

Surface requirements for plugged and abandoned well.

Whenever abandonment occurs pursuant to the requirements of the Railroad Commission, the operator so abandoning shall be responsible for the restoration of the operation site to its original condition as nearly as practicable, in conformity with the requirements of this permit underground pipelines associated with operations shall be purged of all fluids and may be abandoned in place.

Surface requirements for drilled and abandoned well.

Abandonment shall be approved by the city manager after restoration of the drill site has been accomplished in conformity with the following requirements at the discretion of the city manager:

The derrick and all appurtenant equipment thereto shall be removed from drill site;

All tanks, towers, and other surface installations shall be removed from the drill site;

All concrete foundations, above ground piping, wood, guy anchors and other foreign materials regardless of depth, except surface casing, shall be removed from the site, unless otherwise directed by the Railroad Commission;

All holes and depressions shall be filled with clean, compactable soil;

All, refuse and trash shall be removed from the drill site; and

During abandonment, operator shall comply with all applicable subsections in this section; and

The drill site shall be restored, as close as practicable, to its original condition.

Unless modified by the approved plan, deep burying of pits within the drill site perimeter is permitted. A survey and description of the location of any closed pit used in connection with the drill site shall be recorded in the property records of the county in which the real property is located. In any event the operator shall comply with Subsection (L), Paragraph 27.

Abandoned well requirement.

The operator shall furnish the following to the city manager:

A copy of the W-3A "Notice of Intention to Plug & Abandon" and W-3 "Plugging Record" forms on the same date these forms are submitted to the Railroad Commission.

All wells shall be abandoned in accordance with the rules of the Railroad Commission; however, all well casings and cellars shall be cut and removed to a depth of at least three feet below the surface. A permanent abandonment marker, with the well identity and location permanently inscribed, shall be welded to the casing.

Abandonment requirements prior to new construction.

All abandoned or deserted wells or drill sites shall meet the most current abandonment requirements of the Railroad Commission prior to the issuance of any building permit for development of the property. No structure shall be built over an abandoned well.

(P)

Certificate of request for inspection and extension of permit.

On or before 90 days prior to each annual anniversary date of operator's oil and gas well permit, operator shall submit to the city manager a certificate of request for inspection of permit. The certificate of request for inspection of permit must state the location and name of the well and the date the permit was granted by the City Council. The certificate of request for inspection of permit must be signed by the operator before a notary public stating that the well is in compliance with the permit and all applicable ordinances. The certificate of request for inspection of permit must be accompanied by an application and inspection fee of $300.00. The city manager shall grant a one-year inspection approval on the oil/gas drilling permit if the operator is in compliance with the permit and all applicable ordinances as they apply to the inspected well. Prior to authorizing the inspection approval, the city manager, or his designee, shall inspect the oil and gas well site that is subject to the oil/gas drilling permit. The city manager shall issue his decision in writing, within 30 days of receiving the certificate for request for inspection of permit, either granting or denying the inspection of the oil/gas drilling permit.

The operator may appeal the city manager's denial of an oil/gas drilling permit inspection by submitting, in writing, an appeal to the City Council within 30 days of the city manager's written denial of the oil and gas well permit inspection. If an appeal is received by the City Council, a hearing shall be set before a meeting of the City Council to consider the denial of the oil/gas drilling permit inspection. The City Council shall hear and consider the recommendation of the city manager, or his designee, before deciding whether or not to uphold the city manager's decision. The operator shall be allowed to speak and present any relevant evidence for consideration by the City Council prior to a vote of the council. A majority vote of the City Council shall be required to uphold the denial of the oil and gas well permit inspection by the city manager. An inspection that is approved shall be valid for one year from the inspection date.

(Q)

Measurement.

The measurement of all distances set forth herein shall be calculated from the proposed surface location of the well and tank batteries in a straight line, without regard to intervening structures or objects, to the closest exterior point of the object.

(R)

Effect of denial of oil and gas well permit.

If an application for an oil and gas well permit is denied by the City Council, nothing herein contained shall prevent a new permit application from being submitted to the city Council for the same proposed oil and gas well or a different location for a well. A new application may also be filed on any of the mineral estate owned or leased by the applicant. Once all of the operator's administrative and legislative remedies have been exhausted herein, the operator may appeal or challenge the denial of an application in an appropriate Court in Midland County Texas under applicable state or federal law.

(S)

Amendment to oil and gas well permit.

Amendment required.

Within 180 days after an operator has been granted an oil and gas well permit, an operator may submit an application to the City to amend an existing oil and 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 oil and gas well permit.

Application requirement for amendment to permit.

An application for an amended oil and gas well permit shall meet all the requirements of this Section, shall be in writing, shall be on forms provided by the City, shall be signed by the operator, and shall include the following:

An amendment fee of $1,000.00.

A description of the proposed amendments.

Any changes to the information previously submitted with the application for the existing oil/gas drilling permit (if such information has not previously been provided to the City).

Such additional information as is reasonably required by the City to demonstrate compliance with the original oil/gas drilling permit.

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

Review of application for amendment to permit.

All applications for an amended oil/gas drilling permit shall be considered in accordance with the factors listed in Subsection (I) herein. The City Council may elect to consider the application for an amended oil/gas drilling permit without the requirement of a public hearing.

Standard of review.

No material change from existing permit. If the activities proposed by the amendment are not materially different from the activities covered by the existing oil and gas well permit, and are otherwise in conformance with the requirements of this section, other applicable City ordinances, the oil/gas drilling permit then the City Council shall approve the amended application.

Material change from existing permit. If the activities proposed by the amendment are materially different from the activities covered by the existing oil/gas well permit, are not in conformance with the requirements of this section, other applicable City ordinances, the oil/gas well permit, or if, in the judgment of the City Council, the activities proposed by the amendment might create a risk of imminent destruction of property or injury to persons or property or that were not otherwise taken into consideration by the existing oil/gas well permit, the City Council may require the amendment to be processed as a new oil and gas well permit application.

(T)

Independent contractor.

(U)

Assignability; transfer permit.

An oil and gas well permit may be transferred upon written request by the operator with the consent of the City Council:

If the transferee agrees in writing to be bound by the terms and conditions of the current oil and gas well permit and road repair agreement;

If all information previously provided to the City as part of the current oil and gas well permit is updated to reflect any changes; and

If the transferee provides the insurance and security required by this section.

In determining whether to approve the transfer permit, the City Council may consider the financial standing of the transferee and its record of compliance with respect to existing permits. Should the transfer permit be denied, the transferee may file an application for a new oil and gas well permit.

The insurance and security provided by the transferor shall be released if the transfer permit is approved; provided, however, that the transfer shall not relieve the transferor from any liability to the City arising out of any activities conducted prior to the transfer, except to the extent that the transferee expressly agrees in writing to assume such liabilities as part of the transfer.

Applications for the transfer of oil and gas well permits shall be filed with the City's planning department. A non-refundable administration fee shall be charged for each application in the amount of $500.00.

(V)

Time limit requirements.

The failure of the City Council to review and approve an oil and gas well permit within a specified time limit shall not cause the application for the oil and gas well permit to be deemed approved. If the City Council denies a request for a permit, the applicant may file a request with the City Council to re-consider the application. The applicant may present any new evidence to the council and may present any extenuating circumstances or other matters deemed relevant by the applicant. The decision of the City Council regarding the issuance of a permit is not final until the request for re-consideration is voted upon by the City Council.

(W)

Indemnification.

The oil and gas well permit may contain the following language:

OPERATOR AGREES TO INDEMNIFY AND HOLD HARMLESS AND DEFEND THE CITY OF MIDLAND, THE CITY'S OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS, AND LIABILITY OF ANY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND ATTORNEY'S FEES, FOR INJURY TO OR DEATH OF ANY PERSON, OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN CONNECTION WITH THE WORK DONE BY OPERATOR UNDER AN OIL AND GAS WELL PERMIT WHERE SUCH INJURIES, DEATH, OR DAMAGES ARE CAUSED BY OPERATOR'S SOLE NEGLIGENCE OR THE JOINT NEGLIGENCE OF THE OPERATOR AND ANY OTHER PERSON OR ENTITY.

(X)

Incident reports or written complaints.

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 operator has notice of the existence of such reports or complaints.

(Y)

Expiration of permit.

Drilling must commence on the well covered by the oil and gas well permit 12 months of approval by the City Council, after which the oil and gas well permit shall automatically expire if no drilling has commenced. A permit extension for a maximum time period of six months may be granted by the city manager without reapplication after the city manager receives a written request from the operator.

(Z)

Takings determination.

Any aggrieved applicant that believes that an action taken pursuant to this Section by the city council or any officer or employee of the City constitutes a taking under the Texas or United States Constitution or under other state law, may file an application with the City Council requesting a takings determination.

The applicant seeking a takings determination from the council shall file its appeal with the office of the city secretary. The city secretary shall then forward the appeal to the City Council for consideration. An appeal fee in the amount of $250.00 dollars shall accompany each filing.

The appeal shall state the reasons that the applicant believes would support a finding that the City's actions constitute a taking under the Texas or United States Constitution or pursuant to other state law and shall include evidence substantiating the purported diminution in value of the applicant's real property.

If the Council finds by a majority vote in favor of the applicant it may: (1) grant the relief requested, or (2) direct the city manager to rescind action taken by city staff that formed the basis of the takings determination appeal. If the Council denies the appeal, or after a favorable determination the City Council fails to take action as specified above, the applicant may appeal the decision or inaction of the City Council to the county or district court of the county in which the affected real property is located within 30 days of the date that the Council issues its final decision or in the event the Council does not act on the application, then the operator may appeal to the county or district court after the expiration of 120 days from the date the application is heard by the City Council.

(Ordinance 8769, sec. 2, adopted 12/8/2009)

§ 6-1-24 Use of engine brake prohibited.

This section applies to a roadway or street within the corporate limits of the City of Midland, including a state-maintained highway.