The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Drilling block
means one of the spaced areas into which the city is subdivided, as defined and exemplified in section 46-168, for the purpose of permitting the drilling of wells for oil and/or gas therein.
Mineral owner
means the owner or lessee of the mineral interests or estate in and to the particular real estate referred to, subject only to liens to secure debt. A lienholder shall not be considered an "owner."
One well.
Reference to "one well" refers to and shall mean one well for each reservoir or sand from which production is sought or obtained within a particular drilling block.
Person
means natural persons, husband and wife, joint tenants, tenants in common, corporation, partnerships, joint stock associations, municipal corporations, and the state.
Surface owner
means the person who owns the legal title in and to the surfaces estates of the subject property. The surface estate and mineral estate may be held jointly by the same owner where not reserved.
(1966 Code, § 20-1; Ordinance 1999-79, § 1, adopted 9/13/1999)
The board of commissioners, having adopted a comprehensive drilling ordinance dated November 30, 1938, regulating the drilling of oil and/or gas wells in the city, parts of which have subsequently been amended from time to time, and it now appearing that time, conditions, city growth, increase of property values within the city, new drilling techniques, changes in pressures, development of new and improved drilling materials, a substantial part of the McAllen Field gas reserves underlies parts of the city as its corporate limits have been extended since 1938, and the 1938 drilling ordinance, as amended, having become the subject of controversy; and it appearing that such gas should be produced, but that the very minimum of wells should be drilled, consistent with proper drainage and conservation of such gas reservoirs; and it being deemed wise to redraft, amend, consolidate, and reenact the entire drilling ordinance so as to eliminate obsolescence, and improve its safety features, and regulate the drilling and operation of oil and/or gas wells to promote the public welfare and to guard and protect the persons, lives and properties of the people in the city, and of those passing through the city, from the dangers and hazards of the escape of gas, of fire, explosions, cratering and other dangers incident to fields and production of oil and gas, this article is, therefore, passed for the purpose of protecting health, life and property, to preserve and enforce good government, order and security of the city and its inhabitants, and for the purpose of preventing nuisances in the exploration, drilling for and production of oil and/or gas within the city limits, and to promote proper and orderly development and conservation of such natural resources.
(1966 Code, § 20-2)
(a) 
The city shall be, and is hereby, spaced and subdivided into oil and/or gas drilling units or districts, and such subdivision of the city into such drilling units or districts is hereby ordained, declared, fixed and definitely shown by the map or plat hereby adopted, which map or plat is hereby referred to and made a part of this article for all purposes. A copy of such map shall be on file in the city secretary's office and available for inspection during regular business hours Monday through Friday.
(b) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling units 154, 155, 156 and 157 thereto; such units encompassing the following respective areas: All of Lot 2, Block 5, Hidalgo Canal Company Subdivision, Hidalgo County, Texas; Lot 14, Block 6, Hidalgo Canal Company Subdivision, Hidalgo County, Texas; and Lot 21, Block 3, C. E. Hammond Subdivision, Hidalgo County, Texas.
(c) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 158 thereto; such unit encompassing the following respective area: Southwest ¼ of Block 6, Lot 10 of Hidalgo Canal Company Subdivision, Hidalgo County, Texas.
(d) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 159 thereto; such unit encompassing the following respective area: Lot 3, Block 15, Steel and Pershing Subdivision, Hidalgo County, Texas.
(e) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 160 thereto; such unit encompassing the following respective area: Lots 96 and 85 of the La Lomita Irrigation and Construction Company Subdivision of lands in Hidalgo County, Texas, and Lots 15, 16, 17 and 18 of Block 1 of the C. E. Hammond Subdivision of lands in Hidalgo County, Texas, and the adjacent irrigation canal which runs north and south on the east side of such Lots 15, 16, 17 and 18 of Block 1 of C. E. Hammond Subdivision of the land in Hidalgo County, Texas.
(f) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 161 thereto, such unit encompassing the following respective areas: Lots 73, 74, 83, and the north 30 acres of Lot 84, La Lomita Irrigation and Construction Company Subdivision of lands in Hidalgo County, Texas, Block 1, and the lands underlying the irrigation canal that runs in a northerly and southerly direction between Lot 14, C. E. Hammond Lands, Block 1 and Lot 13, Block 12, C. E. Hammond Lands, Hidalgo County, Texas, comprising 271.85 acres of land, more or less.
(g) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 162 thereto; such unit encompassing the following respective areas: All of Lots 4 (40.76 acres) and 5 (40.00 acres) of Block 6; all of Lots 1 (44.76 acres), 2 (40.00 acres), 3 (40.00 acres), 4 (40.00 acres), 5 (40.00 acres) and 6 (44.00 acres) of Block 7, Steele and Pershing Subdivision; all of Lots 1 (45.08 acres), 2 (40.00 acres), 3 (42.16 acres), 4 (40.00 acres), 5 (40.00 acres) and 6 (45.04 acres) of Block 8, Steel and Pershing Subdivision; the west 23.14 acres of the north 32.95 acres, and the south 11.05 acres of Lot 1 of Block 4, A. J. McColl Subdivision; all of Lots 2 (44.07 acres) and 3 (44.19 acres) of Block 4, A. J. McColl Subdivision of the land in Hidalgo County, Texas.
(h) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 163 thereto, such unit encompassing the following respective areas: Lot 11, Block 1, C. E. Hammond Lands, Lots 3, 4, 5, 6 and 12, Block 12, Hidalgo Canal Company Survey, Hidalgo County, Texas, and the lands underlying the irrigation canal that runs in a northerly and southerly direction between Lots 9, 10, 11, 12, 13 of C. E. Hammond Lands, Block 1 and Lots 4, 5, 12, of Hidalgo Canal Company Subdivision of lands, all in Hidalgo County, Texas, comprising approximately 260.71 acres of land as set out in red on the plat hereby referred to and made a part of this section for all purposes.
(i) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 164 thereto, such unit encompassing the following respective area: Lots 51 through 59, McAllen Second Suburban Citrus Groves Subdivision out of La Lomita Irrigation and Construction Company Subdivision of Porciones 61, 62 and 63, Hidalgo County, Texas; Lots 182 through 184, La Lomita Irrigation and Construction Company Subdivision of Porciones 61, 62 and 63, Hidalgo County, Texas; the east 26.17 acres of Lot 189, Lot 190, and Lot 191, La Lomita Irrigation and Construction Company Subdivision of Porciones 61, 62 and 63, Hidalgo County, Texas; and Lots 2 and 3, Block 1 of Rio Bravo Subdivision, Hidalgo County, Texas.
(j) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 399 thereto; such unit encompassing all of Lot 29, C.E. Hammond Subdivision, Hidalgo County, Texas.
(k) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 441 thereto; such unit encompassing the west 40.15 acres of Lot 144, La Lomita Irrigation and Construction Company Subdivision, Hidalgo County, Texas.
(l) 
The map or plat adopted in subsection (a) of this section is hereby amended by adding drilling unit 461 thereto; such unit encompassing Lots 1, 6, 7, 8, 9, and 10, Clydesdale Acres Subdivision and the west 11.0 acres of Lot 143, La Lomita Irrigation and Construction Company Subdivision, Hidalgo County, Texas.
(m) 
The map or plat heretofore adopted in subsection (a) is hereby amended by adding drilling unit 858 thereto; said unit encompassing Lot 2, Block 13, Hidalgo Canal Company Subdivision, M. Ujanda de los Rios Porcion 65, Hidalgo County, Texas.
(n) 
The map or plat heretofore adopted in subsection (a) of this section is hereby amended by adding drilling unit 359 thereto; such unit encompassing all of Section 12, Lot 3, Hidalgo Canal Company Subdivision.
(o) 
The map or plat heretofore adopted in subsection (a) of this section is hereby amended by adding drilling unit 153 thereto; such unit encompassing all of Lot 4, Block 8, A.J. McColl Subdivision.
(p) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 288 thereto; said unit encompassing all of Block 3, Section 17, Steele and Pershing Subdivision.
(q) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 213 thereto; said unit encompassing all of Lot 1, Block 16, Steele and Pershing Subdivision.
(r) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 603 thereto; said unit encompassing all of Lot 1, Block 1, Rio Bravo Plantation Subdivision.
(s) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 604 thereto; said unit encompassing all of Lot 2, Block 1, Rio Bravo Plantation Subdivision and the northern half of Lot 2, Block 2, Rio Bravo Plantation Subdivision.
(t) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 605 thereto; said unit encompassing all of Lot 3, Block 1, Rio Bravo Plantation Subdivision and the northeastern quarter of Lot 3, Block 2, Rio Bravo Plantation Subdivision.
(u) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 606 thereto; said unit encompassing all of Lot 4, Block 1, Rio Bravo Plantation Subdivision and the northeastern 0.36 acres of Lot 4, Block 2, Rio Bravo Plantation Subdivision.
(v) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 607 thereto; said unit encompassing all of Lot 5, Block 1, Rio Bravo Plantation Subdivision.
(w) 
The map or plat heretofore adopted in paragraph (a) is hereby amended by adding Drilling Unit 608 thereto; said unit encompassing all of Lot 6, Block 1, Rio Bravo Plantation Subdivision.
(1966 Code, § 20-3; Ordinance 1994-65, § I, adopted 9/20/1994; Ordinance 1996-6, § I, adopted 1/22/1996; Ordinance 1996-33, § I, adopted 5/13/1996; Ordinance 1996-43, § I, adopted 6/24/1996; Ordinance 1997-6, § I, adopted 1/13/1997; Ordinance 1997-22, § I, adopted 3/27/1997; Ordinance 2004-36, § adopted 5/10/2004; Ordinance 2012-34, § I, adopted 5/29/2012; Ordinance 2015-64, § I, adopted 7/27/2015)
It shall be unlawful to drill any well for oil or gas within any of the streets or alleys of the city. It shall be unlawful to block, encumber or close up any street or alley in the drilling or production operations, except by special permit issued by order of the board of commissioners, and then only temporarily.
(1966 Code, § 20-4)
No well for oil or gas shall be drilled and no permit shall be issued to drill any such well within 400 feet of the subdivided property line of any residence or commercial building, unless the applicant has first secured the permission of the surface owner or owners thereof to drill such well. In the event the applicant fails to secure such permission as a result of being unable to located, after due diligence, such owners, the city commission may issue a variance of this consent requirement if the applicant files an affidavit setting forth applicant's good faith effort to locate such owners and provided not less than 75 percent of the remaining owners have consented to such drilling operations.
(1966 Code, § 20-5; Ordinance 1999-79, § 2, adopted 9/13/1999)
No well for oil or gas shall be drilled, and no permit shall be granted to drill a well for oil or gas, where the hole is to be drilled within less distance than 400 feet from any building or 100 feet from the boundary line of any land used as a school, church, public building site or city park location in the city, whichever is greater, unless the applicant has first secured the permission of the school district or church or city governing body. No well being drilled within 700 feet of any school or church in the city shall have drill-stem testing tools open during school hours, or from 8:00 a.m. to 5:00 p.m. on any day when school is in session, or at a time when church services are being held. Nothing in this section shall be construed as affecting the rights of the school district or church to its pro rata part of oil or gas produced in the unit in which any of its land is situated in the same manner as provided in this article for other owners.
(1966 Code, § 20-6; Ordinance 1999-79, § 3, adopted 9/13/1999)
The board of commissioners shall have the power and reserves the authority to refuse any application for a permit to drill any well at any particular location within any drilling block, where by reason of such particular location and the character and value of the permanent improvements already erected on or approximately adjacent to the particular location in question, or because of the use to which the land and surroundings are adapted for school, college, university, hospital, park or civic purposes, or for health reasons, or safety reasons, or any of them, where the drilling of such well on such particular location might be injurious, or be a disadvantage to the city or to its inhabitants as a whole, or to a substantial number of its inhabitants, or to visitors as a group, or would not promote the orderly development and conservation of oil, gas and minerals, or orderly growth and development of the city.
(1966 Code, § 20-7)
No person shall commence the drilling of any oil or gas well until he has filed with the city secretary a duly executed bond as a drilling bond, executed by the applicant for the drilling permit as principal, and some good and reliable surety company authorized to do business in the state as surety, payable to the mayor and his successors in office, conditioned that, if the permit is granted, the applicant and his assigns will comply with the terms and conditions of this article in the drilling of the well; that the applicant will restore the streets and sidewalks and other public places of the city which may be injured in the operations to their former condition; will clear the lots and blocks of all litter, machinery, derricks, buildings, trash and waste accumulated, used or allowed in the drilling of such well, when the well shall be completed as a producing well or plugged and abandoned as a dry hole. Such bond shall be in the sum of $25,000.00 and, before the permit shall be issued, the bond shall be filed with the city secretary. Such bond shall become effective upon the granting of the permit and shall remain in full force and effect until such well is abandoned as a dry hole and plugged or is completed as a producing well. The city shall not release the obligation of such bond for any well which is abandoned as a dry hole or plugged unless and until sufficient proof is furnished to the city secretary from the state railroad commission as having met all of the requirements of such railroad commission. For convenience such bond may be cumulative and may be conditioned to cover successive wells.
(1966 Code, § 20-8)
(a) 
In addition to the bond required by section 46-173, each person drilling an oil or gas well shall carry public liability insurance in the minimum amount of $500,000.00 for one person and $100,000.00 for one accident, and property damage insurance in the minimum amount of $5,000,000.00 for one accident, with a company authorized to do business in the state, which shall be in force and effect during the drilling of such well and until the completion thereof as a producing well or the abandonment and plugging thereof as a dry hole.
(b) 
If any oil or gas well is completed as a commercially producing well, then the permittee therefore shall be required to carry public liability insurance in a minimum amount of $500,000.00 for one person and $100,000.00 for one accident, and property damage insurance in a minimum amount of $5,000,000.00 for one accident, which shall remain in force and effect and be so carried as long as such well is producing oil or gas, or either of them, in commercial quantities and until plugged and abandoned.
(1966 Code, § 20-9; Ordinance 1999-79, § 4, adopted 9/13/1999; Ordinance 2009-35, § I, adopted 6/22/2009)
Those persons in control of the drilling or operation of any oil or gas well in the city shall permit the city oil and gas inspector, or any subordinate thereof, to come upon the premises and make inspections and tests at all reasonable hours. The city manager shall, from time to time, appoint a city oil and gas inspector.
(1966 Code, § 20-10)
A permit for an input or reception well for cycling or pressure maintenance purposes may be obtained by a person owning oil and/or gas wells in the city, to be located at some convenient place in the city, under the same terms and conditions as provided in this article for obtaining a permit to drill a well for oil or gas, excepting that the one drilling block spacing shall not apply, and, with such exceptions, such well shall be drilled in accordance with this article, except that there may be maintained upon its site such machinery as is necessary for the production of pressure and cycling purposes. Such well shall be for cycling or repressuring purposes only, and not for producing oil or gas.
(1966 Code, § 20-11)
Neither this article nor any permit issued under this article shall be interpreted to grant any right or license to the permittee to enter upon or occupy, in any respect, in the drilling or production operations, any land not under contract or lease to him, except by the written consent of the owner.
(1966 Code, § 20-12)