The purpose of this chapter is to regulate the drilling, redrilling and servicing of oil wells and the production and storage of hydrocarbon substances.
(Prior code § 22-2)
For the purposes of this chapter, the following words and phrases shall, unless the context clearly indicates otherwise, have the meanings respectively ascribed to them by this section:
means the restoration of the drill site as required by the provisions of this chapter.
means The American Petroleum Institute.
means and includes improvements, equipment or facilities of a type or design approved by the official.
means The American Society of Mechanical Engineers.
means the uncontrolled discharge of gas, liquid or solids or a mixture thereof from a well into the atmosphere.
means a mechanical, hydraulic, pneumatic or other device or a combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith designed and capable of preventing a blow-out.
means an excavation around or above the top joint of the casing in a well.
means a well is completed, for the purposes of this chapter, thirty days after the drilling crew has been released, unless drilling or remedial operations are resumed before the end of such thirty days.
means any framework, tower or mast, together with all parts of and appurtenance to such structure, including any foundations, pump house or pipe racks, and each part thereof, which is required, used or useful for the drilling for and the production of oil, gas or other hydrocarbons from the earth, except tanks used for storage purposes.
means the cessation of operations at a drill site without compliance with the provisions of this chapter relating to suspended operations or abandonment.
means the drilling derrick is in its operating position over the well, properly anchored and supported, and that an operating crew is on duty at the drill site at all reasonable times.
means the division of oil and gas of the department of natural resources of the state or any other state agency that may in the future be charged with its responsibilities.
means digging a hole in earth formation with a power driven drill bit for the purpose of exploring for or developing of oil or gas. "Drilling" includes those operations that are concerned with the completion of a well. "Drilling" does not include "shot hole."
means the premises used during the drilling and subsequent life of a well which is necessary for the safe operations thereof.
means the gaseous components or vapor occurring in or derived from petroleum or natural gas.
means the possessor of the right to exploit the premises for minerals.
means the mineral rights owner.
means the repair and replacement of parts of a structure where same does not alter or lessen the strength or stability of the structure.
means a plant for the processing of natural gas from the production wells and processed into its various components.
means the Building Official of the City, his or her assistants, deputies and inspectors and officers of the department of building and safety of the City.
includes petroleum, and "petroleum" includes oil.
means the person, whether proprietor, lessee or independent contractor, actually in charge and in control of the drilling, maintenance, operation or pumping of a well or lease.
means where several contiguous parcels of land in one or different ownerships are operated as a single oil or gas lease or operating unit, the term "outer boundary line" means the exterior limits of the land included in the lease or unit. In determining the contiguity of any such parcels of land, no street, road or alley lying within the lease or unit shall be deemed to interrupt such contiguity.
means a person who owns a legal or equitable title in and to the surfaces of the drill site.
means the deepening of an existing oil well or otherwise drilling beyond the extremities of the existing well casing. The provisions of this chapter relating to drilling shall be equally applicable to redrilling.
means prospecting for oil by means of drilling holes into the ground, placing an explosive charge therein, and detonating such charge, thereby exciting an energy or sound wave through the earth, the results of which are recorded and read by seismograph equipment placed at various locations on the surface of the earth.
means the hole drilled in seismic petroleum prospecting.
means any flame, arc, spark or heated object or surface capable of igniting flammable liquids, gases or vapors.
means that which is built or constructed; a tank, edifice or building of any kind.
means the approved, temporary suspension of drilling or redrilling operations pending a resumption of operations or abandonment.
means a container, covered or uncovered, used in conjunction with the drilling or production of an oil well for holding or storing liquids at or near atmospheric pressure.
means a well or hole drilled into the earth for the purpose of exploring for or extracting from the earth oil, gas or other hydrocarbon substances, or a well or hole in the earth by means of and through which oil, gas and other hydrocarbon substances are extracted, produced or capable of being produced from the earth, or a well or hole for the purpose of secondary recovery or disposal thereof. "Well" does not include "shot hole."
means remedial or maintenance work performed within any existing well which does not involve drilling or redrilling.
(Prior code § 22-1)
The applicant shall file an application in writing for a permit as required by Section 15.36.030 on a form furnished for that purpose by the Department of Building and Safety. Such application shall be accompanied by:
A.
A complete legal description of the property;
B.
A fully informative plot plan showing the location of the well, the location of which has been staked on the ground, appurtenant structures and their relation to any existing hospital, sanitarium, church, rest home, airport, school and dwelling within the radius required by this chapter;
C.
Plans and engineering specifications of structures, drilling derricks, drilling masts, tanks and high pressure systems regulated by this chapter. The applicant need not file plans and engineering specifications of standard derricks, masts and tanks when such plans and specifications are already on file in the office of the Official;
E.
A verified statement signed by the applicant certifying that he or she is duly authorized by the operator to make and file the application and that he or she has read the application and the same is true and correct;
F.
An acknowledged statement in writing subscribed by the owner of the surface rights of the drill site and by the owner of any private land over which access is had to the drill site granting to the City the right to enter upon the drill site and such private land for the purpose of inspection and restoring the premises in the event the applicant should fail to do so;
G.
A statement as to the means by which liquid spills will be removed from diked areas or catchment basins;
H.
Such other pertinent information as may be required by the Official.
(Prior code § 22-4)
A drilling permit may be amended insofar as it relates to the drill site area and a drill site may be modified as to size and shape by the filing with the Official of a modified plot plan if the modified-drill site conforms to the applicable provisions of this chapter and of Section 78.024 of the City Zoning Code, but not otherwise.
(Prior code § 22-5)
A.
Existing Wells. A bond in the form required by this section shall be filed for each existing well within thirty days following the effective date of the ordinance codified in this chapter.
B.
New Wells. A bond in the form required by this section shall accompany every application for the drilling or redrilling of any oil well for which a bond is not on file.
C.
Bond Forms. Bonds shall be on a form approved by the City Attorney and shall be filed with the Department of Building and Safety.
1.
Single Bonds.
a.
Corporate Surety Bonds in the Penal Sum of Five Thousand Dollars. The bond shall be executed by the Operator as principal and by the authorized surety company as surety and conditioned that the principal named in the bond shall faithfully comply with all the provisions of this chapter in drilling or redrilling and maintaining all production facilities as required by this chapter until properly abandoned in conformity with the provisions hereof.
b.
The bond shall secure the City against all costs, charges and expenses incurred by it by reason of the failure of the principal to fully comply with the provisions of this chapter. The bond shall include the correct name and number of the well and such other information as may be necessary to readily identify the oil well.
2.
Blanket Bonds. Any operator may, in lieu of filing a single bond for each well as required by the foregoing subsections A and B of this section, file a bond in the amount of twenty-five thousand dollars to cover all of his or her operations conducted within the City. A rider to such bond shall be filed with the Official showing the correct name or number of the well and such other information as may be necessary to readily identify the oil well for each well covered by the bond.
D.
Default in Performance of Conditions—Notice to Be Given.
1.
Whenever the Official finds that a default has occurred in the performance of any requirement or condition of the provisions of this chapter, written notice thereof shall be given to the principal and to the surety on the bond.
2.
Such notice shall specify the work to be done, the estimated cost thereof and the period of time deemed by the Official to be reasonably necessary for the completion of such work.
3.
After receipt of such notice, the surety shall within the time therein specified either cause or require work to be performed, or failing therein, shall pay over to the Official the estimated cost of doing the work as set forth in the notice, plus an additional sum equal to twenty-five percent, of such estimated cost. Upon receipt of such moneys, the Official shall proceed by such mode as he or she deems convenient to cause the required work to be performed and completed, but no liability shall be incurred therein other than for the expenditure of such sum in hand. In the event that the well has not been properly abandoned under the regulations of the division of oil and gas, such additional moneys may be demanded from the surety as is necessary to restore the drill site in conformity with the regulations of this chapter.
E.
Exoneration. Any bond issued in compliance with provisions of this chapter shall be terminated and cancelled and the surety shall be relieved of all obligations thereunder when the well has been properly abandoned in conformity with all regulations of this chapter and in conformity with all regulations of the division of oil and gas when notice to that effect has been received by the Department of Building and Safety.
F.
Substitution. A substitute bond may be filed in lieu of any bond on file under the provisions of this chapter and the Official shall accept and file the same if it is qualified and in proper form and substance and the bond for which it is substituted shall be exonerated but only if the Official finds that all of the conditions of the last-mentioned bond have been satisfied and that no default exists as to the performance upon which the bond is conditioned.
(Prior code § 22-6)
A.
Drilling or Redrilling Permit Fees. A fee for each drilling permit or redrilling permit shall be paid to the Official as set forth in subsection E of this section.
1.
Where drilling, redrilling, construction or other work for which a permit is required by this chapter is started or proceeded with prior to obtaining such permit, the fees hereunder specified shall be doubled, but the payment of such double fee shall not relieve any person from fully complying with the requirements of this chapter or the execution of the work, nor from any other penalties prescribed in this chapter.
B.
Plan-Checking Fees. A plan-checking fee shall not be charged for the derrick or its appurtenances. A plan-checking fee shall be charged for all permanent buildings, production tanks, washing tanks, skim ponds and such other structures not directly connected with the derrick itself. A plan-checking fee shall be charged for oil well cellars designed to accommodate more than one oil well. Such plan checking fee shall be equal to one-half of the building permit fee as set forth in subsection E of this section.
C.
Annual Inspection Fees. The Official shall inspect annually and at such other times as he or she deems necessary, each producing oil well and suspended oil well regulated by this chapter for the purpose of ascertaining whether the well is being operated or maintained in conformity with the minimum standards of this chapter. To meet the expense of such inspection, the operator shall pay to the Department of Building and Safety an annual inspection fee as specified in subsection E of this section. The year for which each fee is applicable runs from July 1st to June 30th. The fees shall be based upon the total number of wells existing (whether producing or not) on to which they pertain. No additional fee shall be charged for additional inspections which may be required during the year. The official shall keep a permanent, accurate account of all annual inspection fees collected and received under this chapter, the name of the operator for whose account the same were paid, the date and amount thereof, together with the well name and designation and the general location of the well. A report of the Official's annual inspection findings shall be furnished to the operator.
D.
Building Permit Fees. A building permit fee shall be charged for the erection or construction or relocation of any permanent building, tank or other structures as defined and included in Section 15.36.020 and such fee shall be based on the total valuation of the structure when completed.
E.
Permit and Inspection Fees.
1.
Fees for the permitting and/or inspection of oil wells shall be set by resolution of the City Council, which may be amended from time to time;
2.
All construction work for which a building permit is required shall be based upon the fees listed in the current Uniform Building Code adopted by the City Council.
(Prior code § 22-7; Ord. 89-615; Ord. 2019-1061 § 11)