(a) 
Generally.
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 of the city, without express permission of the city council in writing, and then only in strict compliance with the ordinances of the city.
(b) 
Maximum operating pressure of gathering lines and pipelines.
The gathering lines and pipelines hereafter installed within the city for the purpose of transporting oil, gas 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 two hundred and fifty (250) psi (pounds per square inch) unless otherwise specifically approved in writing by the oil and gas inspector.
(c) 
Testing of pipelines.
The pipeline shall be tested prior to being placed in service.
(d) 
As-built plans.
The companies responsible for all pipelines now existent or hereafter installed within the city 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.
(e) 
Minimum cover or backfill for pipelines.
All pipelines within the city, other than utility lines of the city and the franchise distribution system of Southern Union Gas Company, designed or utilized to transport oil, gas, or water in connection with the production and transportation of oil 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 oil and gas inspector is authorized to approve a lesser cover or specify a greater cover or backfill in special cases where in the opinion of the oil and gas inspector such variation is advisable and/or will not increase the degree of hazard.
(f) 
Written permission required for excavation or construction in street.
The digging up, breaking, excavating, tunnelling, 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 city manager.
(g) 
Exceptions.
Exceptions to this section are as follows:
(1) 
Work done in new developments of the city by utility and street contractors under and in conformity with the city’s subdivision policy is exempt from the provisions of this article.
(2) 
Work done by the city or under city contract and under direction of the city is exempt from the provisions of this article.
(3) 
Work done by public utility companies which operate under a current franchise for the city are exempt from the bond and insurance provisions of this article, when such work is in connection with the distribution of the product of such utility.
(4) 
Work done by plumbers who are qualified and bonded with a valid license from the state are exempt from the bond and insurance provisions of this article, but must comply with all other provisions hereof.
(h) 
Approval of plans.
No permit for construction within public right-of-way shall be issued unless the written application be accompanied with plans and descriptions and unless such plans and descriptions are approved by the director of public works.
(Ordinance 508, sec. 8, adopted 5/27/63; 1972 Code, sec. 19-10)
In the event a permit or certificate of compliance is issued by the city council or the oil and gas inspector under the terms of this article for the drilling of a well, or installation of a trunkline pipeline or installation of a water flooding project or gas injection project, no actual operations shall be commenced unless the permittee shall file with the city secretary a bond and certificate of insurance as follows:
(1) 
Bond.
(A) 
A bond in the principal sum of such amount as may be determined by the city council, but not to be less than one hundred thousand dollars ($100,000.00), and the bond shall be executed by a reliable insurance company authorized to do business in the state, as surety, and the applicant as principal, running to the city for the benefit of the city and all persons concerned, under the condition that the permittee shall comply with the terms and conditions of this article in the drilling and operation of the well, water flooding project or gas injection project. Such bond shall become effective on or before the date it is filed with the city secretary and remain in force and effect for at least a period of six (6) months subsequent to the expiration of the term of the permit issued; and in addition, the bond will be conditioned that the permittee will promptly pay all legally imposed fines, penalties, and other assessments imposed upon the permittee by reason of his breach of any of the terms, provisions and conditions of this article and that the permittee will promptly restore the streets and sidewalks and other public property of the city, which may be disturbed or damaged in the operations, to their former condition; that the permittee will promptly clear all premises of all litter, trash, waste and other substances used, allowed, or occurring in the operations, and will after abandonment, or completion, grade, level, and restore such property to the same surface conditions, as nearly as possible, as existed when operations were first commenced; and that the permittee will indemnify and hold the city harmless from all liability growing out of or attributable to the granting of such permit. If at any time the city council shall, after hearing thereon, deem any permittee’s bond to be insufficient for any reason, it may require the permittee to file a new bond.
(B) 
If after the completion of a producing well, gas injection well, water injection well or any facility for which a bond is required by this article and the permittee has complied with all the provisions of this article, such as removing the derrick, clearing the premises, erection of fences, and other requirements, he may apply to the city council to have the bond reduced to a sum not less than ten thousand dollars ($10,000.00) or as set by the city council on each well or facility for the remainder of the time the well produces or facility is operated without reworking. During reworking operations, the amount of the bond shall be increased to the original amount or as set by the city council. A trunkline pipeline installation shall not be considered as completed until the lines have been tested and in operation for a period of thirty (30) days.
(2) 
Insurance.
(A) 
In addition to the bond required in subsection (1) of this section, the permittee shall carry a policy or policies of standard, comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming the permittee and the city, in an insurance company authorized to do business in the state. Such policy or policies in the aggregate shall provide for the following minimum coverages or as set by the city council:
(i) 
Bodily injuries, five hundred thousand dollars ($500,000.00) one (1) person; one hundred thousand dollars ($100,000.00) one (1) accident.
(ii) 
Property damage, five hundred thousand dollars ($500,000.00).
(B) 
The permittee shall file with the city secretary certificates of such insurance as above stated. The insurance policy or policies shall not be cancelled without written notice to the city secretary at least ten (10) days prior to the effective date of such cancellation. In the event such insurance policy or policies are cancelled, the permit granted shall terminate and the permittee’s right to operate under such permit shall cease until the permittee files additional insurance as provided herein. If, after the completion of a well, water flooding project, or gas injection project, the permittee has complied with all the provisions of this article, such as removing the derrick, completion of the pipeline, clearing the premises, and other requirements, he may apply to the city council to have such insurance policy or policies reduced as follows:
(i) 
Bodily injuries, two hundred fifty thousand dollars ($250,000.00) one (1) person; five hundred thousand dollars ($500,000.00) one (1) accident.
(ii) 
Property damage, two hundred fifty thousand dollars ($250,000.00) for the remainder of the times such well is produced without reworking. During the reworking operations the amount of the insurance policy or policies shall be increased to the original amount.
(3) 
Exceptions.
The city council may elect to make an exception to requirements of this section when in its opinion the intent and purpose for the requirements of the bond and insurance can be assured by the following means:
(A) 
Acceptance of the guarantee or indemnity to the city in lieu of bond and a plan of self-insurance in the case of financially responsible operators.
(B) 
Acceptance of a blanket bond and single policy of insurance to cover all operations of the permittee within the corporate limits of the city.
(C) 
Application of bond and insurance requirements acceptable to the city council.
(Ordinance 508, sec. 9, adopted 5/27/63; Ordinance 980, secs. 17, 18, adopted 7/9/96; 1972 Code, sec. 19-11)
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 of the city or streets shown by the master plan of the city, and no street shall be blocked or encumbered or closed in any drilling, production or pipeline operation except by written permission of the oil and gas inspector and the director of public works, and then only temporarily.
(Ordinance 508, sec. 10, adopted 5/27/63; 1972 Code, sec. 19-12)
(a) 
No well shall be drilled and no permit shall be issued for any well to be drilled at any location or storage tank to be located which is nearer than two hundred (200) feet to any residence or commercial building without the applicant having first secured the written permission of the city council.
(b) 
No high pressure gas injection well or a compressor used in conjunction with the gas injection well shall be located nearer than two hundred (200) feet to any residential, commercial, or structure [sic], except by permission of the city council. In exceptional cases for reasons of safety, the city council may require that any such facility shall be located at a greater distance than two hundred (200) feet to any such structure.
(c) 
No residential, commercial or industrial structure other than structures necessary to operate the pipeline shall be erected or moved to a location nearer than thirty (30) feet to any pipeline transporting gas when the pipeline operating pressure is greater than two hundred and fifty (250) psi unless a greater or lesser distance is recommended by the then-applicable ASA code.
(Ordinance 508, sec. 11, adopted 5/27/63; 1972 Code, sec. 19-13)
It shall be unlawful for any person to use or operate in connection with the drilling or reworking of any well within the city any wooden derrick or any steam-powered rig, and all engines shall be equipped with adequate mufflers approved by the inspector. The drilling rig or derrick shall be removed from the premises within thirty (30) days from the date of completion of the well and thereafter, when necessary, such completed well shall be served by portable rigs, which shall be removed from the premises within fifteen (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 time when other workmen of the permittee are not on such premises.
(Ordinance 508, sec. 12, adopted 5/27/63; 1972 Code, sec. 19-14)
Steel slush and reserve pits shall be used in connection with all drilling and reworking operations. Such pits and contents shall be removed from the premises and drilling sites within thirty (30) days after completion of the well, and all waste substances such as drilling muds, oil, brine, or acids produced or used in connection with drilling operations or oil production shall be retained in watertight receptors from which they may be disposed of outside of the city. No earthen slush pits shall be used. The permittee, in connection with production operations, shall use steel or wooden pits or tanks for the disposal of all salt water and other impurities that he may bring to the surface so as not to contaminate the potable water supply and he shall remove same from the site.
(Ordinance 508, sec. 13, adopted 5/27/63; Ordinance 980, sec. 19, adopted 7/9/96; 1972 Code, sec. 19-15)
(a) 
All drilling and operations at any well performed by a permittee under this article shall be conducted in accordance with the practices of a reasonable and prudent operation in the Permian Basin areas. All casing, valves and blow-out preventers, drilling fluid, tubing, bradenheads, Christmas tree, and well head 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 article shall observe and follow the regulations of the state railroad commission, oil and gas division, and the state commission on environmental quality.
(b) 
All operations relative to the design, installation, maintenance and operation of pipelines shall conform to the requirements of this article and the applicable ASA codes and the standards of performance of the reasonable and prudent operators of the trades involved.
(c) 
All pipelines hereafter constructed shall be tested prior to being placed in operation and the standard for testing will be the ASA standard test. Valves shall be installed on all pipelines at such locations and spacing to safely and adequately control the operation of the line and to minimize the quantity of gas, oil or water that would be released from the line in case of line failure or rupture. The types and locations of all valves shall be indicated on a plan layout and approved by the oil and gas inspector.
(d) 
Internal combustion engines or electrical equipment may be used in the drilling or pumping operations of the well, and if internal combustion engines are used, mufflers shall be installed on the mud pumps and on the engines so as to reduce noise to a minimum, all of said installations to be done in a manner satisfactory to the oil and gas inspector and all electrical installations to be done in a manner satisfactorily conforming with the applicable electrical code. 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.
(e) 
Pipeline location markers shall be approved, as to type of [and] location, by the oil and gas inspector and the removal of any pipeline marker without the express permission of the oil and gas inspector shall constitute a violation of the provisions of this article.
(f) 
Pipelines crossing certain thoroughfares, designated by the oil and gas inspector, shall be cased and vented in accordance with accepted practice of the pipeline industry.
(g) 
Except in case of emergency, no materials, equipment, tools or pipe used for production operations shall be delivered to or removed from the site except between the hours of 7:00 a.m. and 8:00 p.m. on any day.
(h) 
Adequate firefighting apparatus and supplies as approved by the 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 drilling site, except that separators may be maintained on the drilling site for the separation of liquids from natural gas. Any such separator shall serve only one (1) well.
(i) 
All production equipment used shall be so constructed and operated so that no noise, vibration, dust, odor or other harmful or annoying substances or effect which can be eliminated or diminished [is created] 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. The site and structures thereon shall not 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. In the event of pumping units, no internal combustion engines are to be used except when approved by the inspector.
(j) 
The well site shall not be used for the storage of pipe, equipment or materials except during the drilling or servicing of the well or pipelines from the well or the production facilities allowed on the site.
(k) 
No drilling, redrilling, work or construction shall be done beyond the point indicated in each successive inspection without first obtaining the written approval of the inspector and without giving notice within twelve (12) hours prior to any work hereinafter described is commenced, said notice to be given to the city dispatcher:
(1) 
Site preparation.
The permittee shall not commence drilling until the well location has been cleared and marked by a stake and inspected by the inspector and approved in writing.
(2) 
Commencement of drilling.
(A) 
The inspector shall be called and notified when the drilling derrick or mast has been erected and all necessary equipment to drilling operation has been installed.
(B) 
Drilling may proceed prior to the inspection of the derrick or mast, provided that its design has been previously approved by the inspector, in writing.
(3) 
Completion of drilling.
Upon completion of drilling operations an inspection request shall be called for and obtained prior to the release of said equipment.
(4) 
Abandonment.
No well shall be plugged without an inspection being made and the presence of the inspector of any operations conducted in connection with the plugging or abandonment of any well and his written approval shall be obtained evidencing satisfactory abandonment pursuant to this article.
(5) 
Running and cementing pipe.
No pipe shall be run nor cemented without the person of the inspector, and his written approval to such operation shall be obtained upon completion.
(Ordinance 508, sec. 14, adopted 5/27/63; Ordinance 980, sec. 20, adopted 7/9/96; 1972 Code, sec. 19-16)
The premises shall be kept in a clean and sanitary condition, satisfactory to the oil and gas inspector. The permittee shall take reasonable precautions to prevent any mud, wastewater, oil, slush, or other waste matters from flowing into the streets, lots or leases within the city.
(Ordinance 508, sec. 15, adopted 5/27/63; 1972 Code, sec. 19-17)
(a) 
It shall be unlawful for any person to use, construct or operate in connection with any producing well within the city, any crude oil storage tanks, except to the extent of two (2) low-type tanks for oil storage, not exceeding five hundred (500) barrels capacity for each well connected thereto and so constructed and maintained as to be vapor-tight and properly vented. A permittee may use, construct and operate a steel conventional separator, and such other approved tanks and appurtenances as are necessary for treating oil with each of such facilities, to be so constructed and maintained as to be vapor-tight. Each oil/gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head. All such tanks shall be placed above ground, and the tanks shall be placed upon a suitable earth or concrete pad.
(b) 
The use of a central tank battery is permitted so long as not more than two (2) tanks as specified are used for each well connected to the battery.
(c) 
The tank or tanks shall be enclosed within a conventional type firewall constructed of compacted earth; sufficient water shall be used during the firewall construction to assure adequate compaction.
(d) 
The firewall enclosing the tanks shall have a minimum capacity equal to two (2) times the volume of the tanks enclosed.
(e) 
The top or crown of the firewall shall have a normal height of three (3) feet above normal ground elevation. The location of the tank site shall be approved by the oil and gas inspector.
(f) 
The tanks shall be recessed within the firewall enclosed to such depth that will assure them of being practically “sight clear” when viewed from without the fenced enclosure.
(g) 
The separators shall be installed in a manner that will assure them of being practically “sight clear” when viewed from without the fenced enclosure.
(Ordinance 508, sec. 16, adopted 5/27/63; 1972 Code, sec. 19-18)
(a) 
Any person who completes any well as a producer shall have the obligation to enclose such well, together with its surface facilities, by a substantial concrete block fence six (6) feet high and properly built 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, in noncongested areas the oil and gas inspector, in his discretion, may waive the requirement of any fence or may designate the type of fence to be erected.
(b) 
The compressor unit or pump station and injection well location shall be enclosed on all sides by a minimum six-foot chain-link fence with double strands of barbed wire along the top. The chain-link fence shall have a minimum of two (2) gates or exitways remotely located on the site and adequately marked, and the gates shall be kept locked at all times when the permittee or his employees are not within the enclosure.
(c) 
The pump station compressor unit and gas injection well location shall, in addition to the fence requirements described above, be enclosed with a masonry or equivalent noncombustible structure constructed in such a manner to reduce or minimize the noise of operation; the design of the structure shall be submitted to and approved by the oil and gas inspector prior to erection.
(d) 
The well 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, pipelines, tanks, pump stations, or compressor stations, except where the site is located in an industrial or manufacturing zone.
(Ordinance 508, sec. 17, adopted 5/27/63; 1972 Code, sec. 19-9)
(a) 
Any permittee engaged in the drilling or operation of an oil or gas well or the operation of any facility used in conjunction with the production of oil or gas within 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 city; provided, gas may be burned for a limited time when necessary to complete any oil or gas well upon the original completion or upon the recompletion of workover jobs upon oil 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 or gas well.
(b) 
It shall hereafter be unlawful to operate a well for oil or gas without a four-inch header being laid over the top of the tank and two and one-half (2-1/2) inch line extending from the tank battery to a point designated by the oil and gas inspector. The manner and method provided for connection at such point shall be determined by the fire department of the city so that foamite or other chemicals may be pumped through such line or lines and the header of the tanks into such tanks to extinguish fires in the tanks.
(c) 
Emergency firefighting apparatus and supplies, subject to approval by the fire department of the city, shall be maintained on the drilling site at all times during the drilling operations, and in the site of each compressor used for gas injection operations.
(d) 
The permittee shall place a sign at each well location or site to identify the well.
(Ordinance 508, sec. 18, adopted 5/27/63; 1972 Code, sec. 19-20)