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. All technical or oil and gas industry words and phrases used in this article and not specifically defined in this section shall have that meaning customarily attributable thereto by prudent operators in the oil and gas industry.
Actual drilling
means when the drilling rig, whose purpose it is to drill the bore hole into the production horizon, first inserts the drill bit into the ground.
Block
means block of land only and shall not be misconstrued to mean drilling block.
Lease
means any tract of land subject to an oil, gas and mineral lease or other oil and gas development contract, or any unit composed of several tracts and leases but operated as one lease, and any tract of land in which the minerals are owned by an operator or someone holding under it or him, but which, due to the fee royalty ownership is developed and operated as a separate tract.
New well permittee
means the person to whom is issued a permit for the drilling and operation of a new well under this Ordinance, and their administrators, executors, heirs, successors and assigns.
Old well permittee
means the person to whom is issued a permit for the redrilling, working-over, recompletion and reoperation of an old or existing well under this Ordinance, and their administrators, executors, heirs, successors and assigns.
Permittee
means both an old well permittee and a new well permittee.
Well
means any holes, bores to any sand, any formation, strata or depth for the purpose of producing and recovering any oil or gas, salt water injection, gas injection or enhanced recovery injection project.
Well location
means the surface location of a well.
(Ordinance 578, § 2(Attach., § 1), adopted 7/7/2009)
It shall be the duty of the building official to enforce the provisions of this article.
(Ordinance 578, § 2(Attach., § 2), adopted 7/7/2009)
Any violation of valid law or of any rule, regulation or requirement of any state or federal regulatory body having jurisdiction with reference to drilling, completing, equipping, operating, producing, maintaining, or abandoning oil or gas wells or related appurtenances, equipment or facilities, or with reference to firewalls, fire protection, blow-out protection or safety of persons or property shall also be a violation of this article.
(Ordinance 578, § 2(Attach., § 3), adopted 7/7/2009)
(a) 
New well permit.
It shall be unlawful and an offense for any person acting either for himself or acting as, by or through an agent, employee or independent contractor, to commence to drill, or to operate, any new well within the city limits, or to work upon or assist in any way in the development or operation of any such new well, without a new well permit for the drilling and operation of such new well having first been issued by the city, in accordance with the terms of this article.
(b) 
Old well permit.
It shall be unlawful and an offense for any person acting either for himself or acting as, by or through an agent, employee or independent contractor, to commence to deepen, to repair or to recomplete any well, old or existing, or to install any trunkline pipeline or repressurizing or injection facilities within the city limits or to work upon or assist in any way in the development or operation of any such well, without an old well permit having first been issued by the city, in accordance with the terms of this article.
(c) 
A separate permit shall be issued for the drilling or operating of each well.
(Ordinance 578, § 2(Attach., § 4), adopted 7/7/2009)
Every application for a permit to drill and operate a well shall be in writing, signed by the applicant, and duly filed with the city secretary, accompanied by a permit fee in an amount of $1,000.00. The application shall be for a single well and shall include full information, including the following:
(1) 
The date of the application.
(2) 
Name and address of the applicant.
(3) 
Proposed site of the well, including:
a. 
Name of the fee owner.
b. 
Name of the lease owner.
c. 
Legal description of the lease.
d. 
Map showing the exact location of the well on the lease, including distances from exterior boundary lines, streets and rights-of-way, residences and other structures located on or near the lease property.
e. 
Information detailing the requisite permission (if required) from the surface owner(s) and improvements located thereon.
(4) 
Type of drilling rig to be used.
(5) 
The proposed depth of the well.
(6) 
The proposed complete casing program.
(7) 
Location of compressor, pressure control, or safety devices with explanation of operating characteristics of each.
(8) 
Detailed explanation of operating pressures of all pipelines and facilities.
(9) 
A statement that it is understood and agreed that for any legal action or undertaking, venue for all suits arising under this article shall lie exclusively in Hays County, Texas.
(10) 
The name and contact information of the person(s) to be notified in case of emergency.
(11) 
Any other information required by the city.
(Ordinance 578, § 2(Attach., § 5), adopted 7/7/2009)
The building official, within 60 days after the filing of the application for a permit to drill and operate a well, shall determine whether the application complies in all respects with the provisions of this Ordinance and other applicable local, state and federal laws. If the application complies with this Ordinance and applicable local, state and federal law, the building official shall issue a permit for the drilling and operation of the proposed well.
(Ordinance 578, § 2(Attach., § 6), adopted 7/7/2009)
(a) 
Each permit issued under this article shall:
(1) 
By reference have incorporated therein all the provisions of this article with the same force and effect as if this article were copied verbatim in the permit.
(2) 
Specify the well location with particularity to lot number, block number and correct legal description.
(3) 
Contain and specify that the term of such permit shall be for a period of one year from the date of the permit and as long thereafter as the permittee is engaged in drilling operations with no cessations of such operations for more than 90 days, or oil or gas is produced in commercial quantities from the well drilled pursuant to such permit, provided that if at any time after discovery of oil or gas the production thereof in commercial quantities shall cease, the term shall not terminate if the permittee commences additional reworking operations within 90 days thereafter, and if they result in the production of oil or gas, so long thereafter as oil or gas is produced from such well.
(4) 
Contain and specify such conditions as are authorized by this article.
(5) 
Contain and specify that no actual operations shall be commenced until the permittee shall file and have approved an indemnity bond and insurance policies in the designated principal amount established and conditioned as specified herein.
(6) 
Specify the total depth to which the well may be drilled, not exceeding the projected depth.
(b) 
Such permit, in duplicate originals, shall be signed by the building official, and prior to delivery to the permittee, shall be signed by the permittee (with one original to be retained by the City and one by the permittee). When so signed, the permit shall constitute the permittee's drilling and operating license and the contractual obligation of the permittee to comply with the terms of such permit, such bond, this Article, and all applicable laws.
(Ordinance 578, § 2(Attach., § 7), adopted 7/7/2009)
If the permit for the well is refused, or if the applicant notifies the city in writing that he does not elect to accept the permit as tendered and wishes to withdraw his application, or if the bond of the applicant is not approved and the applicant notifies the city in writing that he wishes to withdraw his application, then, upon the happening of such events, the cash deposit provided for to be filed with the application shall be returned to the applicant, except that there shall be retained therefrom by the city a processing fee in an amount of $200.00.
(Ordinance 578, § 2(Attach., § 8), adopted 7/7/2009)
If a permit is issued by the building official under the terms of this article for the drilling and operation of a well, no actual drilling operations or site preparation work shall be commenced until the permittee shall file with the city secretary a bond and a certificate of insurance, as follows:
(1) 
The bond shall be in the amount of no less than $100,000.00. A reliable insurance company authorized to do business as a surety in the State of Texas shall execute the bond. Such bond shall be for the benefit of the city and all persons concerned, conditioned that the permittee will comply with the terms and conditions of this article in the drilling and operation of the well. Such bond shall become effective on or before the date the same is filed with the city secretary and remain in force and effect and on deposit for at least a period of six 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 off 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. The permittee will promptly clear all premises of all litter, trash, waste and other substances used, allowed or occurring in the drilling or producing operations, and will, after abandonment, grade, level and restore such property to the same surface condition, as nearly as possible, as existed when operations for the drilling of the wells were first commenced. The permittee will indemnify and hold the city harmless from any and all liability growing out of or attributable to the granting of such permit, including the payment of any expenses incurred by the City for any legal action which may be filed by either party hereto by reason of seeking or recovery of damages from the city. If at any time, the building official shall deem any permittee's bond to be insufficient for any reason, they may require the permittee to make an additional bond. If, after completion of a well, the permittee has complied with all of the provisions of this article, such as removing the derrick, clearing the premises, etc., they may apply to the Building Official to have the bond reduced to a sum of not less than $25,000.0) for the remainder of the time the well produces without reworking. During reworking operations, the amount of the bond shall be increased to the original amount; provided however, the building official may waive the requirement of the bond provided for in this section.
(2) 
In addition to the bond required in subsection (1) of this section, the permittee shall carry a policy of standard comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming the permittee and the city as an additional insured, issued by an insurance company authorized to do business within the state, such policy in the aggregate shall provide for the following minimum coverages:
a. 
Bodily injuries:
$1,000,000.00, one person and $3,000,000.00, one accident; and
b. 
Property damage:
$1,000,000.00.
(3) 
The permittee shall file with the city secretary certificates of such insurance coverage as stated in subsection (2) of this section, and shall obtain the written approval thereof by the city secretary, who shall act thereon within ten days from the date of such filing. Such insurance policy shall not be cancelled without written notice to the city secretary at least 30 days prior to the effective date of such cancellation. If the insurance policy is cancelled, the permit granted shall terminate, and the permittee's rights to operate under the permit shall cease until the permittee files additional insurance as provided in this section. If after completion of a well, permittee has complied with all provisions of this article, such as removing dirt, put up fencing, clearing the premises, etc., the permittee may apply to the building official to have the insurance policies reduced as followed:
a. 
Bodily injuries:
$250,000.00, one person and $500,000.00, one accident; and
b. 
Property damage:
$250,000.00.
(4) 
The city council may elect to make an exception to the requirements of this section when in their opinion the intent and purpose for the requirements of the bond and insurance can be assured by any of the following means:
a. 
Acceptance of a guaranty of 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 a single policy of insurance to cover all operations of the permittee within the city limits.
c. 
Application of bond and insurance requirements acceptable to the city council.
(Ordinance 578, § 2(Attach., § 9), adopted 7/7/2009)
A duly issued permit shall terminate without any action on the part of the city unless actual drilling of the well shall have commenced within 90 days from the date of issuance. The cessation for a like period of the drilling operations, or the cessation of the production of oil or gas from the well after production shall have commenced, shall cancel the permit, and the well shall be considered as abandoned for all purposes of this article. It shall be unlawful thereafter to continue the operation or drilling of such well without the issuance of another permit.
The building official, providing ten days notice has been given to the permittee that revocation is to be considered and the reasons that revocation is being considered, revoke or suspend any permit under this article under which drilling or producing operations are being conducted in the event that the permittee thereof has violated any provisions of an issued permit, bond or insurance requirements, or applicable provisions of this article, state law, or city ordinance, rules, or regulations. In the event that the permit is revoked, the permittee may make application to the building official for a re-issuance of such permit. The permittee may appeal revocation of the permit to the city manager in writing within ten days of revocation of the permit.
(Ordinance 578, § 2(Attach., § 10), adopted 7/7/2009)
(a) 
Streets and alleys.
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. No street or alley shall be blocked or encumbered or closed in any drilling or production operation except by special permit by order of the city council, and then only temporarily. No permittee shall make any excavation or construct any lines for the conveyance of fuel, water, or minerals on, under, or through the streets and alleys of the city with/express permission of the city council in writing, and then only in strict compliance with the applicable provisions of this article, state and federal law, or other city ordinances, rules and regulations.
(b) 
Residences; commercial buildings; places of worship; schools; City-owned buildings; water wells.
No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than 850 feet of any residence, commercial building or place of worship without the applicant having first secured the written permission of the owner(s). No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than 850 feet of any school campus within the Kyle Independent School District. No drilling and no permit shall be issued to any well nearer than 850 feet to city-owned buildings or water wells without written permission from the city.
(Ordinance 578, § 2(Attach., § 11), adopted 7/7/2009)
If the City is satisfied that a well may be deepened with the same degree of safety as existed with the original well, a permit may be issued to the permittee, authorizing the deepening and operation of the well to such specified depth as applied for. In any deeper drilling or any deeper completion or any deeper production operations, the permittee shall comply with all other provisions applicable to the drilling, completion and operation of a well contained in this article and applicable state and federal law.
(Ordinance 578, § 2(Attach., § 12), adopted 7/7/2009)
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 city limits, any wooden derrick, and all engines shall be equipped with adequate mufflers approved by the building official; or to permit any drilling rig or derrick to remain on the premises or drilling site for a period longer than 60 days after completion or abandonment of the well. At all times from the start of erection of a derrick, mast or gin-pole, until the well is abandoned and plugged or completed as a producer and enclosed with a fence as provided in this division, the permittee shall keep a watchman on duty on the premises at all times; provided, however, that it shall not be necessary to keep an extra watchman on duty on the premises when other workers of the permittee are on the premises.
(Ordinance 578, § 2(Attach., § 13), adopted 7/7/2009)
Steel slush pits shall be used in connection with all drilling and reworking operations unless the city council shall waive such requirements. Such pits and contents shall be removed from the premises and the drilling site with 30 days after completion of the well. No earthen slush pits shall be used.
(Ordinance 578, § 2(Attach., § 14), adopted 7/7/2009)
All drilling and operation of any well performed by a permittee under this article shall be conducted in accordance with the best practices of any reasonably prudent operator in the central Texas area. All casing, valves, and blow-out preventers, drilling fluid, tubing, bradenhead, Christmas tree, and well head connections shall be of the type and quality consistent with the best practices of such reasonable and prudent operators. Setting and cementing casing and running drill-steam tests shall be performed in a manner and at a time consistent with the best practices of such reasonable prudent operation. Each permittee shall observe and follow the recommendations and/or regulations of the American Petroleum Institute, the State Railroad Commission and the Texas Commission on Environmental Quality, or respective successor agencies.
(Ordinance 578, § 2(Attach., § 15), adopted 7/7/2009)
The premises shall be kept in a clean and sanitary condition, free from rubbish and fire hazardous materials of every character, to the satisfaction of the city at all times drilling operations or reworking are being conducted, and as long thereafter as oil and/or gas is being produced therefrom. It shall be unlawful for any permittee, his agents, or employees to permit within the city limits any mud, water, waste oil, slush or other waste matter from any slush pit, storage tank, or oil and/or gas well located within the City, or from any premises with the City developed or being developed for oil and/or gas purposes, in or on any alleys, streets, lots, land, or leases within the city. Any spill, oil or salt water must be reported immediately to the city and cleanup commenced promptly.
(Ordinance 578, § 2(Attach., § 16), adopted 7/7/2009)
Any person who completes a well as a producer shall have the obligation to enclose the well, together with its surface facilities, with a substantial fence sufficiently 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, that in noncongested areas, the Inspector, at his discretion, may waive the requirements of any fence or may designate the type of fence to be erected.
(Ordinance 578, § 2(Attach., § 17), adopted 7/7/2009)
Motive power for all operations after completion of drilling operations shall be electricity or properly muffled gas, gasoline, or diesel engines. Such mufflers are to be approved by the chief building official prior to their use.
(Ordinance 578, § 2(Attach., § 18), adopted 7/7/2009)
No person engaged in drilling or operating any well shall permit gas to escape or be vented into the air unless the gas is flared and burned as permitted by the state railroad commission.
(Ordinance 578, § 2(Attach., § 19), adopted 7/7/2009)
It shall be unlawful to operate a well for oil and/or gas without a four-inch header being laid over the top of the tanks and a 2½-inch line extending from the tank battery to a point 200 feet from tank battery. The manner and method provided for connection at the point shall be determined by the fire department so that foamite or other chemicals may be pumped through such line and header to such tanks to extinguish any fire in the tanks. Adequate fire fighting apparatus and supplies, approved by the fire department, shall be maintained on the drilling site at all times during drilling and production operations. All machinery, equipment, and installations on all drilling sites within the city shall conform to such requirements as may from time to time be issued by the fire department.
(Ordinance 578, § 2(Attach., § 20), adopted 7/7/2009)
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 well storage tanks except to the extent of two steel tanks for oil storage, not exceeding 500 barrels capacity each and so constructed and maintained as to be vapor tight, with pressure release valves set below tank design pressure, and each surrounded with an earthen firewall at such distance from the tank as will, under any circumstances, hold and retain at least 1½ times the maximum capacity of such tank. A permittee shall operate a conventional steel separator, and such other steel tanks and appurtenances as are necessary for separating oil and gas with each of such facilities to be so constructed and maintained as to be vapor tight. Each oil and gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head. Site location and design of any tanks shall be approved by the inspector.
(Ordinance 578, § 2(Attach., § 21), adopted 7/7/2009)
No geophysical work employing underground explosives will be permitted anywhere at any time within the city limits. Other geophysical systems employing the "thumper", "vibroseis", or other techniques not employing explosives, will be permitted upon proper application and payment of a $500.00 application fee. Such application shall include the following:
(1) 
The date of the application.
(2) 
The name of the applicant.
(3) 
The address of the applicant.
(4) 
A statement of the proposed commencement and completion dates.
(5) 
A map or plat outlining the areas proposed to be covered by the survey.
(6) 
Compliance with the indemnification bond and insurance coverage requirements herein or as established by city council.
(Ordinance 578, § 2(Attach., § 22), adopted 7/7/2009)
(a) 
All equipment necessarily incident to the production of oil and/or gas within the city limits shall be subject to the inspection and approval of the appropriate qualified inspectors, building inspectors, electrical inspector, fire and safety inspector, etc. All operations will be maintained in such a manner that will minimize dust, noise, noxious odors, vibrations and other offensive conditions to the surrounding residential area.
(b) 
Each producing well, together with their associated equipment (tankage, separators, structures, fencing, etc.) regulated by this article shall be inspected annually by the building official for the purpose of conformance to the various regulations. If any nonconformance is found, the permittee will be notified in writing of the violation immediately, and the permittee shall begin to institute proceedings to come into full compliance with this article. The annual inspection fee shall be two hundred dollars ($200.00) for each site upon which there is located a facility covered by this article, and such fee shall be paid by the permittee.
(Ordinance 578, § 2(Attach., § 23), adopted 7/7/2009)
The permittee shall make adequate provisions for the disposal of all salt water or other impurities which may come to the surface, and disposal to be made in such manner as to not contaminate the underground water strata or to injure surface vegetation. The disposal process shall be approved by the city, prior to disposal for the protection of public health, safety and well-being.
(Ordinance 578, § 2(Attach., § 24), adopted 7/7/2009)
Whenever any well is abandoned, it shall be the obligation of the permittee and the operator of the well to comply with the regulations of the Railroad Commission of the State of Texas in connection with the abandonment and plugging of a well.
(Ordinance 578, § 2(Attach., § 25), adopted 7/7/2009)