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HomeMy WebLinkAbout1982-1355 - Ordinance - 04/22/1982ORDINANCE NO. 1355 AN ORDINANCE APPROVING THE ISSUANCE OF A PERMIT FOR THE DRILLING OF AN OIL AND GAS WELL BY WOOD ENERGY, INC., IN THE CITY OF COLLEGE STATION, AND IMPOSING CERTAIN CONDITIONS UPON THE OPERATOR THEREOF AND PERSONS CONNECTED WITH OR INVOLVED WITH SUCH ACTIVITY. WHEREAS, the City Council did by resolution, on motion and second duly carried, approve the issuance of a permit for oil and gas drilling by WOOD ENERGY, INC.; and WHEREAS, the attached permit sets forth the conditions imposed by this Council; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: That the attached permit issued to WOOD ENERGY, INC., is hereby approved and issued, conditioned upon compliance with the terms thereof by the operator. 2. The operator shall pay the sum of Three Hundred Dollars ($300.00) as the initial permit fee, and shall absorb all costs of the City's technical consult- ants as are from time to time incurred or expended. 3. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict. 4. This ordinance shall become effective upon its passage. PASSED AND APPROVED this 22nd day of Abril , 1982• APPROVED: ATTEST: ITY SECRV� ARY, Dian Jones V MA 03636 ICJ OIL AND GAS DRILLING A "ID DEVELOPMENT PERMIT CITY OF COLLEGE STATION, TEXAS WOOD ENERGY, INC., OPERATOR ISSUED ACID EFFECTIVE^'* APRIL 3, 1932 BY RESOLUTION APPROVED .APRIL 22, 1932, BY ORDINANCE NO. 1355 PURPOSE The City Council of the City of College Station has determined that the testing and exploration for and development of oil, gas, and nineral hydrocarbons within the City limits is an activity which necessitates reasonable regulations in order that such activities will riot cause injury or property damage to the citizens of the City, and that such activities should conforn to the comprehensive plan and zoning ordinances of the City as far as practicable in order to preserve the integrity of said ordinances and regulations. The City recognizes that confli.ctin property rights exist in the carrying out of such activities, anct further recognizes the rights of all property owners, mineral and otherwise, to the peaceable enjoyment of their property and the benefits and revenues therefrom. ACCORDINGLY, this pernit is issued pursuant to the provisions of Chapter 4, Section 10 of the Code of Ordinances of the City of College Station, Texas, after public hearing on April 3, 1932 before the City Council of said City, to implement appropriate regulations for present and future activities on the part of the above operator, its al ents , en ployees , and contractors, as defined herein, in order to protect the health, safety, and general welfare of the public, and accomplish the orderly, safe and practical production and enj oyn ent of av ai la's le .nineral resources when such activity is consistent with those ob j ec t iv es . IT SHALL BE U^1LAWT-UL TO: a. Errg age in any activity not permitted by the terns of this pernit. b. Fail to comply with any condition set forth in this permit. Upon approval of this pernit by ordinance, any violation of the provisions and conditions herein, or the provisions of Chapter 4, Section 10, of the College Station Code of Ordinances, as amended, may be prosecuted as a Class C misdemeanor in the Municipal Court of the City of College Station, Texas; and without the necessity of any prior prosecution, such violations nay be enjoined by an action in the appropriate Court. �r In the event of continued violation of the provisions and conditions of this pernit or the above referenced provisions of -1- 03637 the Code of Ordinances, or in the event of a single violation which creates or created a significant threat to the :Health or safety of the public, this permit may be cancelled by the City Council after a hearing called for such purpose, and upon not less than 24 hours notice to the operator, delivered to the address set forth herein, and to the operations site. PFF'MIT PERIOD 1.) This permit shall be effective for one year. At the end of such time, it shall be updated by the filing of an application for renewal as provided for herein. 2.) The operator .rust re -apply during the permit period if a change of operations is proposed or takes place. PERMITTED OPERATIONS The operator shall be entitled to drill and .^_onplete for production an oil and gas well at the location specified on the plat attached hereto as Exhibit A. All activities incident to the drilling of such a well, including the building of roads, erection of facilities, installation of equipment, connection of utilities, and other such operations on site shall be permitted and shall be lawful to the extent that sane are conducted in compliance with the terns of this pernit. Any other activities shall constitute a change of operations, as that phrase is used herein. Other than the construction of roads or other access ways to the site, no operations shall be conducted outside the operations area designated on Exhibit A. This permit does not constitute authority to produce mineral resources from the completed well, to lay or construct pipelines or otherwise transport such minerals, except that the operator shall be entitled to transport by vehicle such minerals are produced incidental to the drilling and completion of such well for production. A subsequent application for pernit shall be necessary for the production of minerals from the well permitted herdoy, and for the transportation of the minerals produced therefrom. RENEWAL ARID INSPECTION 1.) An official designated ' - )y the City Manager shall inspect the operations site prior to the expiration of the pernit, and shall report to the City Manager prior to the renewal of said pernit as to compliance with this ordinance. 2.) The operator shall apply for a renewal pernit 30 days prior to the expiration of a pernit. An inspection and renewal fee of $100.00 shall �) e paid at the ti-n e of reapplication. If such inspection reveals compliance with this ordinance during the preceding pernit period, the City Manager shall issue a renewal pernit. In all other events, the application for renewal shall be processed as an original -2- application. M 3.) The operator shall furnish information requested by the City and in the possession of the operator relating to the regulation of the activities on the operations site, including access to specifications and manufacturer's information concerning products or equipment, and to information compiled incident to the well drilling operation, such as logs, cores, and samples of materials produced in the process . The operator shall allow testing and accumulation of data on site, and shall cooperate in furnishing or obtaining any relevant information and providing suitable opportunities and locations for the conducting of such activities by the City or its representatives or consultants . 77TIS PERMIT IS SUBJECT TO TTIE FOLLO6'vING CONDITIONS: 1. All operations shall comply with the best available health, safety, and environmental protection technology available at the time of operations, subject to continuing on site review of compliance by periodic inspection, and the imposition of additional conditions or regulations to this permit from time to time by the City's oil and gas consultant. All such additional conditions and regulations shall be discussed with the operator before being imposed, and the operator shall be notified in writing of their imposition. The operator shall have 24 hours to file with the City Secretary a notice of protest and request for a hearing before the City Council with respect to the imposition of such conditions. If no such protest is filed, such conditions shall become part of this permit, and .nay be enforced by injunctive process. 2. No sound or noise produced on the site, including those produced by motors or engines used to operate equipment, shall exceed 94 decibels, measured ten feet from the source in calm air conditions. 3. The operator shall furnish to the City Secretary prior to validation of this permit, proof of the following minimum insurance coverage: ( a) Standard conprehensiv e -general liability including premises, operations, blow -out or explosion, products and completed operations, blanket contractual liability, underground property damage, independent contractors and personal injury: 1. Bodily injury $500,000 per occurence, $500,000 aggregate. 2. Property damage, $200,000 each occurence, $200,000 aggregate M (b) Conprehensiv e Automoblie Lia', covering owned, non - owned, and hired. ve')icles: -3- 03639 1. Bodily injury, each person, $250,000 2. Bodily injury, each accident, $500,000 3. Property damage, $100,000 each occurrence (c) Excess liability umbrella $5,000,000 in excess of primary insurance as provided above. The City Council may require as a permit condition additional coverage or extended limits or excess umbrella policies where a need for s am e is present. In the event that such a need is perceived subsequent to the granting of this permit, the council shall hold a special hearing prior to the imposition of such requirement. Any insurance policy or binder provided in compliance with this requirement, or any extended coverage set by the council shall provide for 30 days notice of cancellation to the City. Termination of insurance shall pro -tanto terminate any permit granted hereunder. 4. The applicant shall deliver a compliance and performance bond to the City Secretary, on a form approved by the City Attorney, in the penal sum set forth below. Such bond shall guarantee compliance with city ordinances, all conditions of this permit, and all regulations of the Railroad Commission of Texas, and shall assure the payment of any valid claim by the City or any member of the public which is based upon such violation as a producing cause of any injury or property loss. In addition, the bond will be conditioned that the permit holder will promptly pay all legally imposed fines, penalties, and the assesments imposed upon the permit holder by reason of his breach of any of the terms of his permit, and that the nermit holder will promptly restore the streets and sidewalks and any other property of the City which may be disturbed and damaged in such operations, to their former conditions; and that the permit holder will promptly clear all premises of trash, litter, waste, and other substances used, allowed, or occuring in the operation; 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 permit holder will defend, indemnify, and hold the City, its officers and employees, harmless from any and all liability growing out of or attributable to the granting of such permit. The bond shall become effective on or before the date it is filed with the City Secretary and shall remain in force and effect for at least a period of six months subsequent to the expiration of the tern of the permit. If at any time the City Council shall deen a bond insufficient, it-nay require any permit holder to file a new bond. Any bond filed shall assure the obligation of all persons or corporations engaging in any activities at the well site, and all such persons shall be included in the terns 'permit holder' as used herein. Ln PENAL ST UM OF SUCH BOND: $100,000 -4- 036 5. In the event of proposed abandonnent of a well site the person abandoning shall notify the City Manager of sane. Within ten days of the approval of the a:-) andonn ent by the Railroad Commission the person abandoning sane shall furnish a copy of such approval to the City Manager. Ab andonn ent shall be approved by the City Engineer or his delegate, including any technical consultant retained by the City, after restoration of the drill site and the subsurface thereof has been accomplished in conformity with the following requirements: (i) The derrick and all appurtenant equipment thereto shall be removed fron drill site (ii) All tanks, towers and other surface installations shall be removed from the drill site ( iii) All concrete, piping, wood and other foreign materials regardless of depth, except surface casing, shall ' removed from the drill site, unless otherwise directed by the Commission (iv) All holes and depressions shall be filled with clean conpactible soil. All oil, waste oil, refuse or waste :material shall be removed from the drill site. 6. Failure to: a) produce a well as defined herein, b) to �aw conduct continuous operations for drilling or reworking a well for a period of 90 days shall terninate any permit issued therefor. In the event of the proposed resunption of any activities for drilling, reworking, or producing a well, the operator of sane shall re -apply for a peen it in accordance herewith. If the proposed activity is the sane as that originally pernitted, the City Manager may, after satisfactory inspection grant a renewal pernit. If the proposed activity is a change in operations, if the inspection is unsatisfactory, or if more than one year has elapsed since the discontinuance of operations or production, the application shall be processed in accordance with the procedure for original per-nits. 7. iTo street shall be blocked or closed without the written consent of the City, acting through the City Manager. B. All derricks and portable masts used for drilling, redrilling, deepening or reworking shall meet the standards and specifications of the Anerican Petroleum Institute as they presently exist or may be amended '.hereafter. 9. All drilling , redrilling , deepening or reworking equipment shall be removed from the oil operation site within thirty (30) days following the. completion of drilling, redrilling , deepening or reworking . %1W 10. No person shall permit or allow any lights located on -5- �J641 any oil operation site to be directed in such a manner so that they shine directly on adjacent residential property or residential property in the general vicinity of the oil operation site. 11. No smoking signs of a durable material shall be posted and maintained in all locations approved or designated by the Chief of the Fire Department. Sign lettering shall be four (4) inches in height and shall be red on a white background or white on a red background. 12. Rotary rnud, drill cutting, oil or liquid hydrocarbons and all other oil field wastes derived or resulting from, or connected with the drilling redrilling , deepening or reworking of any well shall be discharged into a portable steel tank or other systen approved by the City's oil and gas consultant. Unless otherwise directed by the Commission, waste materials shall be removed from the operation site every (30) days. 13. In all cases, protection shall be provided to prevent blowout :airing oil operations as required by and in conformance with the requirements of the Commission. 14. The operation site shall be completely enclosed by a chain link fence, masonry wall, or other approved fencing material, and acceptable gates. A plan for fencing shall be submitted to the building official showing types of fencing, M materials and manner of construction. Any requirements imposed by the council as to screening or type of fence or wall shall be set forth and complied within the proposal. The Building Official shall approve or disapprove the proposal based upon the durability of the materials and construction proposed, and their sufficiency to prevent entry by animals or unauthorized persons. The proposal must be submitted within 15 days of the issuance of a permit hereunder. The final construction of the fence or wall shall be completed: (a) Before commencement of operations if there will not be 24 hour supervision on site; or in any event (b) Before actual drilling commences. 15. It shall be unlawful for any person, owner or operator to discharge into the open air the exhaust from any internal combustion engine stationary or .mounted on wheels, used in connection with the drilling of any well or for use on any production equipment unless it is equipped with an exhaust .muffler, or snufflers or an exhaust muffler box constructed of noncombustible materials sufficient to suppress noise and prevent the escape of obnoxious gases, fumes or ignited carbon or soot. The Council may prohibit the use of internal combustion engines and require the use of all electric power. Alit" 16. Public nuisance declared. The foregoing sections -6- �0U642 notwithstanding, no person shall conduct any oil operation in a manner that would create a noise, odor or vibration detrimental to the health, safety or welfare of the public. Such operation is hereby declared to constitute a public nuisance, and any violation shall be punished as provided for herein. 17. Unless otherwise directed by the Commission, all tanks used for the storage, production of oil, or the disposal of wastewater shall conform to the following: (a) A.P.I. Specifications. All tanks shall conform to American Petroleum Institute (A.P.I.) specifications unless other specifications are approved by the Chief of the Fire Department. (b) Dikes and Capacity Requirements. All persons owning, operating or having control of storage tanks, clarifying tanks or tanks used in connection with the production of oil shall construct and maintain dikes around said tanks. Drainage dikes and walls shall be constructed and -maintained to meet the standards of the Commission and the National Fire Protection Association as they presently exist or may hereafter be anended. 18. All tanks, including replacement tanks, and permanent structures shall be set back pursuant to the standards of the Commission and the National Fire Protection Association as they presently exist or may hereafter be anended, but in all cases shall be at least a minimum of fifty feet (50') fron any public right -of -way to allow off street access to such facilities. 19. All well servicing equipment, including portable pulling ~pasts and gin poles, shall be renov ed from the oil operation site or drill site within seven (7) days after completion of a well servicing operation. 20. Storage of equipment. (a) No drilling, redrilling , reworking, or other portable equipment shall be stored on the oil operation of the oil well located thereon. This includes the removal of idle equipment unnecessary for the operation of such wells. (b) Lumber, pipes, tubing and casing shall not be left on the oil operation site except when drilling or well servicing operations are being conducted on the site. (c) It shall be illegal for any person, owner -7- 03643 or operator to park or store any vehicle or item of ,machinery on any street, right -of -way or in any driveway, alley or upon any oil operation site which constitutes a fire hazard or an obstruction to or interference with fighting or controlling fires except that equipment which is necessary for the maintenance of the oil well site or for gathering or transportation of hydrocarbon substances from the site. 22. Cleanup and Maintenance. (a) Cleanup after well servicing. After completion of well servicing or abandonment operations, the responsible party shall clean the drill site area and repair all damage to public property caused by such servicing or ab andon- tn ent operations . (b) Cleanup after spills, leaks and malfunctions. After any spill, leak or malfunction, the responsible party shall remove or cause to be removed to the satisfaction of the Chief of the Fire Department all oil and waste materials fron any public or private property affected by such spill, leak or-malfunction. (c) Releasing of fluids. No person shall deposit, place, discharge or cause or permit to be placed, deposited or discharged any oil, naphtha, petroleum, asphaltum, tar, hydro- carbon substances or any refuse including wastewater and brine from any oil operation or the contents of any container used in connection with an oil operation in, into, or upon a public right -of -way, a stor drain, ditch or sewer; a sanitary drain or sewer; any body of water; or any private property in the City. (e) Freedom from debris. All property on which an oil well site is located shall at all tirnes be kept free of (a) debris; (b) pools of oil, water or other liquids; (c) weeds; (d) brush; (e) trash, or other waste material. EFFECT OF SUSPENSION OR REVOCATION OF PERMIT No person shall carry on any operations performed under the terms of any permit during any period of permit suspension or revocation, or pending a judgment of the court upon any application for writ taken to review the decision or order of the City is suspending or revoking such permit; provided, however, that nothing therein contained shall be construed to prevent the performance of such operation as 'nay be necessary in connection �ftw with a diligent and bona fide effort to cure and remedy the - a - 03644 m default, or violation for which the suspension or revocation the permit was ordered, or such operation as necessary for safety of persons or as required - ")y the Connission. ISSUED THIS 22nd day of April , / , 19,92. /J ATTI APPF of th e *Subject to conpliance with the terns and conditions set forth herein. 03645