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.
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.
means block of land only and shall not be misconstrued to
mean drilling block.
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.
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.
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.
means both an old well permittee and a new well permittee.
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.
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:
(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:
(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)
