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HomeMy WebLinkAbout1991-1916 - Ordinance - 10/10/1991ORDINANCE NO. 1916 AN ORDINANCE AMENDING CHAPTER 4 OF THE CODE OF ORDINANCES OF THE CITY OF COLLEGE STATION, TEXAS, BY AMENDING SECTION 13, REGULAT- ING THE EXPLORATION, DEVELOPMENT, PRODUCTION, AND TRANSPORTATION OF OIL, GAS, AND ASSOCIATED MINERAL HYDROCARBONS IN THE CITY; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: That Chapter 4, Section 13 City of College Station, Texas, follows: of the Code of Ordinances of the is hereby amended to read as "SECTION 13: OIL AND GAS REGULATIONS A. DEFINITIONS Oil and gas industry words or phrases not defined herein shall have the meaning customarily attributable thereto by reasonable and prudent oil and gas industry operators. Abandonment means "abandonment" as defined by the Com- mission and includes the restoration of the drill site as required by this Ordinance. APProved tvDe and aDproved design means improvements, equipment, or facilities of a type or design approved by the Commission, Fire Department, or Consultant. Area means the property within a radius of one thousand feet (1,000') of the oil or gas operation. ® Blowout preventer means a mechanical, hydraulic, pneu- matic, or other device or combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith, which can be closed around the drill pipe or other tubular goods to completely close the top of the casing and prevent blowout. Cellar means an excavation around and above the top joint of the well casing. 6. City means the City of College Station, Texas. 7. Citv Attorney means the City Attorney of the City. 8. City Code means the Code of Ordinances of the City. fn'~ . i f, r' Ordinance No. 1916 Page 2 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. City Enaineer means the City Engineer of the City. City Planner means the city Planner of the City. City Secretary means the City Secretary of the City. Commission means the Texas Railroad Commission. Completion of drillina and re-workinu means the date work is completed after the thirty (30) day period of drilling or re-working, and the crew is released by completing their work, contract, or by their employer. Consultant means a person familiar with and educated in the oil and gas industry who has been retained by City. Council means the City Council of the City. Derrick means any portable framework, tower, mast, or structure required or used in connection with drilling, re-working, operating, or maintaining a well. Desertion means the cessation of the operation at any drill site without compliance with the provisions of this Ordinance relating to suspended operations, idle wells, or abandonment. DisPosal well means any well drilled or intended to be drilled, including solutions and liquids containing solids in suspension, produced from any such well. Drillinq means any digging or boring of a new well to explore, develop, or produce oil, gas, or other hydro- carbons, or to inject gas, water, or any other fluid or substance into the earth. Drillin~ e~uiDment means the derrick, all parts and appurtenances to such structure, and every piece of apparatus, machinery, or equipment used, erected, or maintained for use in connection with drilling. Drill site means the premises used during the drilling or re-working of a well located there. Exploration means geologic or geophysical activities, including seismic surveys, related to the search for oil, gas, or other subsurface hydrocarbons. 23. Fire DeDartment means the Fire Department of the City. Ordinance No. 1916 Page 3 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. Fluids means any gas or liquid. Gas means any fluid, either combustible or non- combustible, which is produced in a natural state from the earth and which maintains a gaseous or ratified state at standard temperature and pressure conditions, and/or the gaseous components or vapors occurring in or derived from petroleum or natural gas. Gas well means any well drilled, to be drilled, or used for the intent or actual production of natural gas. Hi him act area means any residential, administrative, professional, or commercial neighborhood zone where there is an existing residential, administrative, pro- fessional, or commercial neighborhood use in the area of the proposed oil or gas operation. Lessee means a person who has executed an oil or gas lease or sublease, or the owner of the land or miner- als, or his heirs, who conducts or carries on any oil or gas exploration, development, and operation thereof, or a person conducting the operation for himself or others. Lessor means the owner of surface or mineral rights who has executed a lease. Maintenance means the repair or replacement of any machinery, equipment, apparatus, structure, facility, or parts used in connection with an oil or gas opera- tion, site, drill site, or any other work necessary to reduce fire hazards or hazards to employees, public health, safety, and welfare. New well means a new well bore or new hole established at the ground surface and shall not include re-working of an existing well which is not abandoned. Oil or ~as operation means construction, maintenance, or use, of any installation, facility, or structure, directly or indirectly, to carry out or facilitate one or more of the following functions: repair, develop- ment, drilling, re-working, production, storage, pro- cessing, extraction, enhanced recovery, stimulation, abandonment, or shipping of oil or gas from the sub- surface of the earth, including site development. Oil or ~as operation site means the physical location where oil or gas operations are conducted. Ordinance No. 1916 Page 4 34. 35. 36. 37. 38. 39. 40. 41. 42. Oil well means any well drilled, to be drilled, or used for the intended or actual production of liquid petroleum or petroleum products or enhanced recovery. Operator means any person drilling, maintaining, oper- ating, pumping, or in control of a well. If the opera- tor is not the lessee under an oil or gas lease of any premises affected by the provisions of this article, then such lessee shall also be deemed to be an opera- tor. If no oil or gas lease exists relating to any premises affected by this article, the owner of the fee estate in the premises shall be deemed an operator. Outer boundary line means a situation in which several contiguous parcels of land in one or different owner- ships are operated as a single oil or gas lease or operating unit, or the exterior limits of the land included in a lease or unit. In determining the conti- guity of any such parcel, all public rights-of-way crossing through or within the lease boundaries shall be part of the leased tract or unit. Owner means a person who owns the legal or equitable title in and to the surfaces of the drill site or oil or gas operation site. Permit means a drilling permit issued or sought to be issued under this Ordinance authorizing the drilling of an oil or gas well or other oil operations. Permittee means a person to whom is issued a permit authorizing oil or gas operations, and his heirs, administrators, executors, successors, and assigns. Person means both the singular and the plural and means a natural person, corporation, association, guardian, partnership, receiver, trustee, administrator, execu- tor, and fiduciary or representative of any kind. Plannina and Zonina Commission means the Planning and Zoning Commission of the City. Processin~ means the use of oil operations for gauging, recycling, compressor repressuring, injection, reinjec- tion, dehydration, stimulation, separation (including but not limited to separation of liquids from gas), shipping and transportation, and gathering oil, gas, other hydrocarbon substances, water or any combination thereof. Ordinance No. 1916 Page 5 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. Pro4ect Review Committee (PRC) means a committee com- posed of the following persons or their designated alternate: Director of Planning, City Engineer, and the Planning and Zoning Commission Chairman. Residence means a house, duplex, apartment, townhouse, condominium, mobile home, or other building used for dwelling purposes. Re-working means reoccupation or re-entry of an exist- ing well within the existing bore hole or by deepening or sidetrack operations which do not extend more than one hundred fifty (150) horizontal feet from the exist- ing well bore, or replacement of well liners or cas- ings. Riaht-of-wa¥ means public rights-of-way including streets, easements, and other property in the City ded- icated to public use and benefit. Rural area means an area characterized by open space involving a proposed drill site of not less than twenty-five (25) acres with no operations to be con- ducted within one thousand feet (1,000') of a resi- dence, hospital, or school. Source of ianition means any flame, arc, spark, heated object, or surface capable of igniting liquids, gases, or vapors. Street means any street, highway, sidewalk, alley, avenue, recessed parking area, or other public right- of-way, including the entire right-of-way. Sump or sump mit means an earthen pit, commonly known as a "mud pit," lined or unlined for the discharge of oil field wastes. Tank means a container, covered or uncovered, used to hold or store fluids in conjunction with drilling or production of oil, gas, or other hydrocarbons. Department of Water Resources means the Texas Depart- ment of Water Resources. ~rban area means any area characterized by business and commercial use, where the proposed drill site is at least three hundred feet (300') from a commercial use as defined by the City Zoning Ordinance. Ordinance No. 1916 Page 6 Ce D® 54. Well means a hole(s) or bore(s) to any horizon, forma- tion, or strata for the purpose of producing any oil, gas, liquid hydrocarbon, brine water, sulphur water, or for use as an injection well for secondary recovery or disposal or production of oil, gas, or other hydrocar- bons from the earth. 55. Well servicina means maintenance work performed in any existing well bore which does not involve drilling or re-working. PURPOSE The exploration, development, and production of oil, gas, and other mineral hydrocarbons in the City is an activity which necessitates reasonable regulations. Such regulations will prevent or lessen injury or property damage to City citizens and make these activities conform to the City com- prehensive plan and zoning ordinances. Conflicting property rights exist in such activities and all property owners, mineral and otherwise, have the right to peaceably enjoy their property and its benefits and revenues. This Ordi- nance implements reasonable regulations for present and future mineral activities to protect the health, safety, and general welfare of the public and accomplish the orderly and practical production of available mineral resources. CITY ENGINEER EMPOWERED TO OVERSEE ORDINANCE The City Engineer is authorized and directed to enforce this Ordinance. Whenever necessary to enforce any pro- vision of this Ordinance, or whenever the City Engineer has reasonable cause to believe any condition exists upon any premise or in any building contrary to this Ordinance, he may enter such place at any reasonable time to inspect or perform any duty imposed by this Ordinance. If entry is refused, the City Engineer shall have re- course to every remedy provided by law and equity to gain entry. No owner or occupant or any other person having charge, care, custody, or control of any build- ing or premise shall fail or neglect after proper de- mand to permit prompt entry by the City Engineer. PERMIT APPLICATION Any person wanting to participate in oil, gas, or other hydrocarbons production activities shall apply for and Ordinance No. 1916 Page 7 5® obtain a permit under this Ordinance, and shall indi- cate what type of permit is requested. Such activities shall include, but are not limited to, exploration, re- working, site preparation, drilling, operation, con- struction of rigs or tank batteries, fracturing, and pressurizing. It shall be unlawful to conduct any activities related to the production of oil, gas, or other hydrocarbons without a permit. Applications for such permits shall be available from the City Secretary. No permit shall authorize the drilling, re-working, deepening, activating, or con- verting of more than one well in the City. A permit shall be required when a well is to be drilled, deep- ened, re-worked, activated, or converted on property in the City that is to be used for the production of the well or when the primary access to the drilling site is by way of a City street or public right-of-way. The City Engineer may require additional or supplemen- tal information before action is taken on an applica- tion. The City Engineer may seek Council authorization to engage the services of a Consultant, without submis- sion of the application to the Council, where he be- lieves that additional expertise is required. All fees of the Consultant will be paid by the applicant. City Engineer shall provide applicant with an opportunity to withdraw his application prior to engaging the services of a Consultant. The applicant shall be required to pay to the Consultant a retainer to cover the cost of the services prior to Consultant's commencement of the work. Permits shall be designated by the type of activity and the character of the area. There shall be the follow- ing types of permits: high impact, urban, rural, and seismic. Any proposed activity which will be conducted in more than one designated type of area shall be required to follow the permit procedure for the most restrictive area included therein. Before filing a site plan or preliminary plat, mineral owner shall notify surface owner by certified mail, return receipt requested, and show proof of such notice to the City. Mineral owner has thirty (30) days before filing to designate his oil or gas operation location on the surface owner's proposed plat or site plan. Applicant shall complete the application and deliver it and any additional required information to the City Ordinance No. 1916 Page 8 Engineer. Any costs of processing the application, including any unpaid fees of a Consultant, shall be paid by applicant prior to the public hearing. Applications shall be filed two (2) weeks prior to PRC site plan review. After PRC review, it shall prepare a report for Council recommending conditions which should be imposed upon applicant's oil or gas operation. Ail permits require Council approval. Council shall review the application, PRC report, and any other related information. Council shall set the dollar amount of the security to be provided by applicant pur- suant to Subsection E.2 herein. Council may require any change in the operations, plan, design, layout, fencing, screening, lighting, or other matters reason- ably required by the public interest. APPLICATION CONTENTS 1. An application shall include: a. Application fee as set by Council resolution. be Site plan of the proposed operation showing the location of all improvements and equipment. Map showing proposed transportation route and roads for equipment, chemicals, or waste products used or produced by the oil or gas operation. Description of type, kind, size, and amount of major equipment used before completion of drilling and re-working. Location and description of all improvements and structures within one thousand feet (1,000') of the well. Description of surface equipment after drilling and completion. g. Well surface casing and cementing program. h. Copies of Commission forms and drilling permit. Security instrument consisting of an irrevocable letter of credit, indemnity bond, or certificate of deposit, as required by this Ordinance and in an amount determined by the City Council. Ordinance No. 1916 Page 9 Re m. n. O. p. Name of representative with supervisory authority over all oil or gas operation site activities and a phone number where he can be reached twenty-four (24) hours a day. Legal description of the property to be used for the oil or gas operation, the parcel, and the pro- duction unit (plat description or metes and bounds bearings) and name of the geologic formation as used by the Commission. Property recorded by plat should reference subdivision, block and lot num- bers. Proposed well name. Mineral Lessee name and address. Operator/Applicant name and address. Surface owner name(s) and address(es). Name and address of an individual designated to receive notice. Evidence of insurance information as required by this Ordinance. A survey of the production unit at a scale of 1 per 300 or greater by a certified surveyor includ- ing: (1) Lengths and bearings of all boundary lines for production. (2) Exact acreage of the production unit. (3) Exact location of the well within production unit with distances of a minimum of two (2) adjacent boundary lines of the production unit. (4) Length of maximum diagonal within the produc- tion unit. Owner and address of each parcel of property within one thousand feet (1,000') of the proposed drill site. Ordinance No. 1916 Page 10 Copies of all reports required by the Department of Water Resources and Commission. u. Copy of Commission permit. Statement under oath signed by applicant that the information submitted in the application is true and correct. Security instrument. a. Any security instrument shall require operator to: (1) Comply with terms and conditions of this Ordinance and the permit issued. (2) Promptly clear all premises of all litter, trash, waste, and other substances used, allowed, or occurring in the operations, and after abandonment or completion grade, level and restore such property to the same surface conditions as nearly as possible as existed before operations commenced. (3) Permittee agrees to and shall indemnify and hold harmless City, its officers, agents, and employees, from and against any and all claims, losses, damages, causes of action, suits, and liability of every kind, including oil and gas development activity, all expenses of litigation, court costs, and attorney's fees, for injury to or death of any person, or for damage to any property, arising out of or in connection with the work done by Permittee under the Permit: (a) where such injuries, death or damages are caused by City's sole negligence or the joint negligence of City and any other person or entity; (b) regardless of whether such injuries, death, or damages are caused in whole or in part by the negligence of City. (4) Not cancel such instrument without thirty (30) days prior written notice thereof to the City Secretary. Ordinance No. 1916 Page 11 (5) Promptly pay fines, penalties, and other assessments imposed by reason of breach of any of the terms of the permit. (6) Promptly restore to their former condition any public property damaged by the oil or gas operation. (7) Promptly pay all fees of a Consultant whose services are engaged by the City pursuant to Section L.1 of this ordinance. be Any irrevocable letter of credit or indemnity bond shall be executed by a reliable banking institu- tion or insurance company as surety, authorized to do business in Texas. Such banking institution or insurance company must be acceptable to the City. The operator shall be listed as principal and the instrument shall run to the City for the benefit of the City and all persons concerned. Such letter or bond shall become effective on or before the date the permit is issued and shall remain in force and effect for at least a period of six months after the expiration of the permit term. The City will allow for reduction of the amount of the letter of credit when drilling is finished. Ce Applicant may substitute a certificate of deposit (CD) in lieu of the letter or bond if the CD is in an amount equal to or greater than the letter or bond. The CD shall be issued by a bank in Brazos County, Texas, selected by applicant, and shall be payable to the order of the bank; however, accrued interest thereon shall be payable to the operator and the bank shall be so instructed. The CD shall be delivered to the bank and evidence of the such delivery shall be submitted to the City Secretary. The bank shall be instructed of the terms and con- ditions in this Ordinance for oil or gas operation security instruments. The principal amount of any security instrument shall be determined by the Council, and shall never be in an amount less than $25,000.00. Operator shall carry a policy(les) of insurance issued by an insurance company or companies authorized to do business in Texas. The insurance policy or policies required as part of the application shall provide they shall not be cancelled without prior written notice to Ordinance No. 1916 Page 12 the City Secretary at least thirty (30) days before the effective date of such cancellation. If such insurance policy or policies are cancelled, the permit shall ter- minate on such date of cancellation and the operator's right to operate under such permit shall cease until the operator files additional insurance as provided herein. The policy(ies) in the aggregate shall provide for the following minimum coverages: STANDARD INSURANCE POLICIES REQUIRED (1) Commercial General Liability Policy (2) Automobile Liability Policy (3) Workers' Compensation Policy GENERAL REQUIREMENTS APPLICABLE TO ALL POLICIES (1) General Liability and Automobile Liability insurance shall be written by a carrier with a A:VIII or better rating in accordance with the current Best Key Rating Guide. (2) Only Insurance Carriers licensed and admitted to do business in the State of Texas will be accepted. (3) Deductibles shall be listed on the Certifi- cate of Insurance and are acceptable only on a per occurrence basis for property damage only. (4) Claims Made Policies will not be accepted. (5) The City of College Station, its officials, employees and volunteers, are to be added as "Additional Insured" to the General Liability policy. The coverage shall contain no spe- cial limitations on the scope of protection afforded to the OWNER, its officials, employ- ees or volunteers. (6) A Waiver of Subrogation with respect to Workers' ance must be included. in favor of the OWNER Compensation insur- (7) Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days prior Ordinance No. 1916 Page 13 em written notice by certified mail, return receipt requested, has been given to the City of College Station. (8) Upon request, certified copies of all insur- ance policies shall be furnished to the city of College Station. COMMERCIAL GENERAL LIABILITY (1) Minimum Combined Single Limit of $500,000.00 per occurrence for Bodily Injury and Property Damage. (2) Coverage shall be at least as broad as Insur- ance Service's Office Number CG O0 01. (3) No coverage shall be deleted from the stan- dard policy without notification of individ- ual exclusions being attached for review and acceptance. AUTOMOBILE LIABILITY (i) Minimum Combined Single Limit of $500,000.00 per occurrence for Bodily Injury and Property Damage. (2) The Business Auto Policy must show Symbol 1 in the Covered Autos Portion of the liability section in Item 2 of the declarations page. WORKERS' COMPENSATION (1) Employer's Liability limits of $100,000.00 for each accident is required. (2) Texas Waiver Of Our Right To Recover From Others Endorsement, WC 42 03 04 shall be included in this policy. (3) Texas must appear in Item 3A of the Workers' Compensation coverage or Item 3C must contain the following: All States except those listed in Item 3A and the States of NV, ND, OH, WA, WV, and WY. Ordinance No. 1916 Page 14 f. CERTIFICATES OF INSURANCE (1) Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent, and shall contain provi- sions and warranting the following: (a) The company is licensed and admitted to do business in the State of Texas. (b) The insurances set forth by the insur- ance company are underwritten on forms which have been provided by the Texas State Board of Insurance or ISO. (c) Sets forth all endorsements and insur- ance coverages according to requirements and instructions contained herein. (d) Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the City of College Station. (e) Original endorsements affecting coverage required by this section shall be fur- nished with the certificates of insur- ance. The individual designated to receive notice shall be a resident of Texas upon whom all orders and notices pro- vided in this Ordinance may be served in person or by registered or certified mail. Every operator shall within ten (10) days notify the City Secretary in writ- ing of any change in such individual or mailing address unless operations in the City are discontinued and abandonment is completed. PERMIT CLASSIFICATIONS 1. High Impact Permit. Except as provided herein, the procedure for urban permits shall apply. After a high impact permit application is submit- ted, the City Engineer shall retain a Consultant to evaluate the public impact of the proposed activity. Consultant shall study the application, proposed site, and proposed operations or drilling Ordinance No. 1916 Page 15 program, and shall draft recommended restrictions or conditions to be appended to the permit if issued, including minimum separation distance for drilling or other operations, maximum pressures for anticipated operations, minimum test pressures for equipment, special safety equipment and proce- dures, and prohibited operations or techniques. Consultant shall recommend noise reduction levels and screening where deemed appropriate. The recommendation shall be completed and delivered to the City Engineer, the PRC, and applicant within forty-five (45) days after the application is sub- mitted. Applicant shall pay for the cost of Con- sultant's study and recommendations prior to the public hearing. After a high impact permit application is received, the City Secretary shall cause a notice of public hearing to be published in a newspaper of general circulation in the City, which hearing shall be held at the next regular Council meeting after the expiration of the forty-five (45) day period set forth in the preceding section. After the public hearing, Council may approve or deny the permit based upon the criteria set forth herein and may add any conditions necessitated by the health, safety, and welfare of the public, whether or not they are included in Consultant's recommendations. Urban Permit. The City Engineer shall review urban permit appli- cations and shall determine if a Consultant is needed to evaluate the public impact of the pro- posed activity and recommend permit conditions. The City Engineer or his delegate shall study the application, proposed site, and proposed activity, and draft recommended restrictions or conditions which shall be furnished to the PRC and applicant within thirty (30) days after the application is submitted. Applicant shall pay the cost of Con- sultant's study and recommendations prior to the public hearing. After an urban permit application is received, the City Secretary shall cause a notice of public hearing to be published in a newspaper of general circulation in the City, which hearing shall be Ordinance No. 1916 Page 16 held after the expiration of the thirty (30) day period set forth in the preceding section. If no Consultant is used, the hearing shall be held at the next Council meeting after the expiration of fifteen (15) days from such publication. Ail persons with property located within one thou- sand feet (1000') of the proposed drill site as shown by the latest Brazos County Appraisal District certified tax rolls, shall be notified of the public hearing by certified mail, return receipt requested. The applicant shall pay Four Dollars ($4.00) for each such notification letter. No notification letter shall be necessary if the applicant files a consent form, supplied by the City Secretary, signed and notarized, by such property owner. At the public hearing, the recommendation of the City Engineer shall be presented and any inter- ested party shall be allowed to speak or present evidence. After the conclusion of the hearing, the Council shall approve or deny the permit based upon the criteria herein. Where the City Council determines that the services of a Consultant are necessary, the Council may direct the City Engi- neer to engage the services of a Consultant pur- suant to Subsection D and then table the applica- tion. The Council may table any application for up to sixty (60) days. Where the City Engineer has been authorized to engage the services of a Consultant, the Council may table the application and direct that the City Engineer provide further information. The Council may add any conditions necessitated by the health, safety, and welfare of the public, whether or not same are included in the recommendations of the City Engineer. Rural Permit. The City Secretary shall cause a notice of public hear- ing to be published in a newspaper of general circula- tion in the City, which hearing shall be held at least fifteen (15) days following such publication at the next available meeting of the Council. The Council shall consider the application and grant or deny the permit based upon the criteria set forth herein. The Council may table the application for a period of up to sixty (60) days to obtain additional data from the Ordinance No. 1916 Page 17 applicant or by a study of the activity by a Consul- tant. 4. Seismic Permit. a. A proper seismic application shall include: (z) A letter requesting a geophysical permit describing the proposed system, date work will begin, and date work will end. A state- ment, acceptable to the city Attorney, shall be included in the permit relieving the City of any liability for damages which may result from such activity. (2) A copy of a valid and existing public liabil- ity insurance policy, as required by this Ordinance. (3) A plat outlining the areas proposed to be covered by the survey. The City Engineer may issue a permit to the appli- cant to conduct such seismic or geophysical work if he decides the work will not create a public nuisance nor be contrary to public safety. The determination shall include, but shall not be limited to, consideration of: (1) Whether the location of the proposed test, considering the geology of the area, will reasonably be expected to damage waterlines, sewerlines, structures, dwellings, or other area improvements. (2) Quality of the proposed seismic survey to be used in implementing the exploration. LOCATION RULES No oil or gas drill site may be located or oil and gas operation shall occur: ae Within fifty feet (50') of any street, right-of- way, alley, or utility easement. Within six hundred feet (600') of a cemetery, park, or residential unit, unless waived by the residential unit property owner and the party entitled to occupy the premises. Ordinance No. 1916 Page 18 He Ce Within one thousand feet (1,000') of any school or hospital. d. In any public park unless authorized by State law. e. In any City streets or alleys. No drilling or re-working shall occur within one hundred feet (100') of any oil storage tank, ignition source, or building. PRC SITE PLAN REVIEW The City Secretary shall forward the application and supporting materials to the City Engineer and the PRC for review. The PRC shall review the application and the nature and location of the proposed oil or gas operation and make recommendations to the Council about site plan design, construction, installation, operation, and maintenance of the proposed oil or gas operation and/or storage facility, and, if applicable, the following: a. Alternate well location due to adjacent land uses. b. Air pollution control devices. c. Noise control devices. d. Type of pump engine. e. Height of pump equipment. Fire control measures, as required by this Ordi- nance. ge Fence and/or visual screening, as required by this Ordinance. h. Landscaping, as required by this Ordinance. Proof of contractual responsibilities of pump site and storage site maintenance. j. Safety procedures. Special handling, storage, or disposal of sludge/waste. Ordinance No. 1916 Page 19 1. Hours of pumping operation. m. Gas flaring. n. Location of storage facilities. Traffic loads or patterns, proposed street devel- opment, as required by this Ordinance, and ingress/egress of vehicular traffic. p. Water source used during drilling operation. Full line location and route between the well head and storage facilities. Screening and Landscaping. Fencing shall be in the PRC's discretion based upon the impact to adjacent areas. Fencing may be required during the drilling opera- tions and/or separate fencing may be required after completion of the drilling operations. C® A six foot (6') solid screen fence around the entire perimeter of the site may be required. Any fence should be at least one hundred feet (100') from any well, equipment, or structure within the site, but no closer than five hundred feet (500') to any residential property line. Ail fencing shall be of a solid neutral color com- patible with surrounding uses and shall be main- tained in a neat, orderly, secure condition. Neu- tral colors for fencing shall include unobtrusive shades of sand, grey, green, blue, brown, or other colors approved by the PRC. Upon completion of a well as a commercial pro- ducer, any apparatus used in the production of the well, including pump jacks, shall be enclosed as to prevent any entry by unauthorized persons and to prevent well equipment from being seen. The enclosure walls shall be solid and constructed with privacy fence materials and shall be high enough to restrict the view of any well equipment including the pump jack. The enclosure shall re- Ordinance No. 1916 Page 20 main locked at all times unless the well is being serviced by the operator or its service companies. Within sixty (60) days after completion of drilling or re-working, or within sixty (60) days after activation of an idle well, any oil or gas operation site in a developed area shall be land- scaped pursuant to the requirements of this Ordi- nance. h. High impact and urban areas. (1) Within thirty (30) days after completion of drilling or re-working, or within thirty (30) days after activation of an idle well in a high impact or urban area, any oil or gas operation site shall be screened by a fence enclosure pursuant to Commission requirements and this Ordinance. (2) Ail sites in urban or high impact areas shall be screened by a fence enclosure constructed of any material compatible with surrounding uses which effectively screens the site. (3) Ail sites in urban or high impact areas shall have landscaping. (4) Upon permit renewal, if the City Planner determines the impact of the area has changed from rural to high impact or urban, screened fencing and landscaping shall be required within sixty (60) days. Site development other than drilling shall be conducted only between 7:00 a.m. and 7:00 p.m. A franchise agreement under the City Charter may be required. All fire suppression and prevention equipment required by Fire Department shall be provided by the permittee at the drill site, at the permittee's own cost, and maintenance and upkeep shall be permittee's responsi- bility. Before any oil or gas operation begins, all private roads used for access to the site and the site itself shall be surfaced with crushed rock, gravel, or ore, or oiled and maintained to prevent dust and mud. Roads Ordinance No. 1916 Page 21 shall be at least thirty feet (30') wide. These re- quirements may be altered at the discretion of the PRC after consideration of all circumstances, including but not limited to the recommendation of the Consultant and the following: ae Distances from public streets and highways and adjoining and nearby property owners whose surface rights are not leased by the Operator. The purpose for which the property of such owners is or may be used. c. Topographical features. d. Nature of the soil. e. Exposure to wind. PUBLIC HEARING The Council shall hold a public hearing on any applica- tion for a permit to drill an oil or gas well. Written notice of such hearing shall be sent by the City Secretary to the applicant and all other persons deemed by the City Engineer to be affected thereby and all owners of real property within six hundred feet (600') of the proposed drill site. Written notice shall also be sent by the City Secretary to all real property owners within one thousand feet (1,000') of the storage facility proposed site. Such notice shall be given not less than fifteen (15) days before the date set for the hearing to all such property owners who have rendered their said property for City taxes as the ownership appears on ~he last certified tax roll of the Brazos County Appraisal District. Such notice may be served by depositing the same, properly addressed and postage paid, in the U.S. Post Office. Notice shall also be given by publishing the same in a news- paper of general circulation in the City at least fifteen (15) days prior to the date set for the hear- ing, which notice shall state the time and place of such hearing. Ail notice provisions contained herein shall be deemed sufficient upon substantial compliance with this section. Ordinance No. 1916 Page 22 Je CRITERIA FOR GRANTING OR DENYING PERMIT The Council shall review the application, PRC report, and any other related information and shall set the principal amount of the security instrument. Granting the permit shall be conditioned on applicant submitting the security instrument to the City within thirty (30) days. The Council may require any change in the opera- tions, plan, design, layout, fencing, screening, light- ing, or other matters reasonably required by the public interest. The Council may accept, reject, or modify the PRC recommendations in the interest of securing compliance with this Ordinance, the City Code, and/or to protect the health, safety, and welfare of the community. The following additional criteria shall be addressed by the Council: That the operations proposed are reasonable under the circumstances and conditions prevailing in the area. That the operations proposed are consistent with the health, safety, and welfare of the public when and if conducted in accordance with the permit conditions to be imposed. That the impact upon adjacent property and the general public of operations conducted in compli- ance with the permit conditions are reasonable and justified, balancing the following factors: (1) The right of the owner(s) of the mineral estate to explore, develop, and produce the minerals. (2) The availability of alternate drill sites, both presently and at other times during the lease term. (3) The date of acquisition by the various owners of the surface and mineral estates. ON SITE REQUIREMENTS The following are required at oil and gas operation sites: All oil or gas operations shall be conducted in a care- ful and orderly manner and the premises shall at all Ordinance No. 1916 Page 23 e e times be maintained in a neat, clean, and orderly man- ner. All discarded surplus materials, supplies, and refuge shall be removed from the operation site no later than every thirty (30) days. Only electric prime movers or motors shall be permitted for the purpose of pumping wells. Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED" shall be posted at the entrance of each well site and tank battery. The sign shall include the emergency notification numbers of the Fire Department and the Operator, drilling block number, and well and lease designations required by the Commission. No person shall place, deposit, discharge, cause, or permit to be placed, deposited, or discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon sub- stances, or any refuse, including wastewater or brine, from any oil and gas operation or the contents of any container used in connection with any oil operation in, into, or upon any public right-of-way, storm drain, ditch or sewer, sanitary, drain or sewer, any body of water, or any private property in the City. Ail production equipment on the site shall be painted and maintained at all times, including pumping units, storage tanks, buildings and structures. No person shall allow, cause, or permit gases vented into the atmosphere to be burned by open flame except as allowed by law or permitted by the Commission. After completion of well servicing or abandonment, owner shall repair all damage to public property caused by such servicing or abandonment operations. Ail property on which an oil or gas operation occurs shall at all times be kept free of debris, pools of oil, water or other liquids, weeds, brush, trash, or other waste material. Drilling mud, cuttings, oil, or liquid hydrocarbons and all other oil field waste derived or resulting from or connected with the drilling, re-working, or deepening of any well shall be discharged only into a portable steel tank. Unless otherwise directed by the Commis- sion, waste materials shall be removed from the opera- tion site no later that every thirty (30) days. Ordinance No. 1916 Page 24 10. 11. At the conclusion of any drilling or re-working opera- tions, the drill site shall be cleaned within forty- eight (48) hours of all equipment and machinery that is not needed to produce the well. No street or alley may be blocked or obstructed by any drilling or producing operations unless prior consent is obtained by the operator in the form of a resolution adopted by the Council, except when necessary to pro- tect life or property in connection with emergency operations being conducted pursuant to this Ordinance. 12. Storage of Equipment. 13. No drilling equipment, re-working equipment, other portable equipment or idle equipment which are not essential to the everyday operation of the activ- ity located thereon shall be stored on the oil or gas operation site. Lumber, pipes, tubing, and casing shall not be left on the site except when drilling or well ser- vicing operations are being conducted. No person, owner, or operator shall store or park any vehicle or item of machinery on any street, right-of-way, driveway, alley, or upon any oil or gas 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 site or for gathering or transportation of hydrocarbons from the site. The Fire Department shall be the entity which determines whether any equipment on the site shall constitute a fire hazard. Ail well servicing equipment, including portable pulling masts and gin poles, shall be removed from the leasehold, oil or gas operation site, or drilling site within fifteen (15) days after com- pletion of a well servicing operation. Operator shall at all time comply with all applicable federal, state, and City requirements. Ordinance No. 1916 Page 25 ne SPILLS AND BLOWOUTS I. Clean Up of Spills. After any leak, spill, or malfunction, the permittee shall remove or cause to be removed to the satisfaction of the City Engineer, Fire Department, and Consultant all oil and waste materials from any public or private property affected by such spill, leak or malfunction. 2. Blowouts. In the event of the loss of control of any well or other oil and gas operation, Operator shall immediately take all reasonable steps to regain control of such activity regardless of any other provisions of this Ordinance and shall notify the City Engineer as soon as practicable. If and when the City Engineer certifies in writing to the City Secretary, that in his opinion: ag Danger to persons and property exists because of such loss of well control, briefly describing the same; and Operator is not taking or is unable to take all reasonable and necessary steps to regain control of such well, the City Engineer may employ any well control expert or experts, or other contrac- tors or suppliers of special services, or may incur any other expenses for labor and material which the City Engineer deems necessary to regain control of such oil and gas operation. The City shall then have a valid lien against the interest in the well of all working interest owners who have voluntarily joined in the drilling of such well to secure payment of any expenditure made by the City pursuant to such action of the City Engi- neer in gaining control of said well. PERMIT PERIOD AND RENEWAL 1. Permit Period. A permit shall be issued for one (1) year. At the end of such time, it shall be updated (if Operator wishes to continue his oil or gas operation) by the filing of an renewal application. Operator must reapply during the permit period for a renewal application if a change of operations is proposed or takes place. Ordinance No. 1916 Page 26 Ne 2. Renewal. me Operator shall submit a application form for a renewal permit no later than thirty (30) days before the expiration of his permit, and indicate in the application what changes, if any, are requested at the operation site. An inspection and renewal fee as set by Council resolution shall be paid at the time of reapplication, and Operator shall only be required to submit documents with his application for changes that occurred at the operation site. b® Before the expiration of the permit, the City Engineer shall inspect the oil or gas operation site to determine compliance with this Ordinance. Ce If no change in operations is proposed or has taken place, or the Operator is re-working the operation site, and inspection reveals compliance with this Ordinance during the preceding permit period, the city Engineer shall issue a renewal permit. Otherwise the renewal application shall be processed as an original application. Upon application for a renewal permit, the City Engineer or PRC can consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust and its appearance, and recommend repainting or other remedial steps to be taken as a condition of renewal. If any change or addition to the permit informa- tion on the application occurs, such change or addition during the period of the permit shall be communicated to the City Secretary within ten (10) days of the date of such change or addition. PERMIT SUSPENSION OR REVOCATION me The City Engineer may, in writing, suspend or revoke any permit issued under the provisions of this article upon finding any of the following: Permittee failed, neglected, or refused to perform and comply with the conditions of the permit. be Permittee failed, neglected, or refused to comply with or abide by, or in any way violated any pro- Ordinance No. 1916 Page 27 e vision of this Ordinance or any regulation, law, rule, or order either directly or indirectly, by reason of or in connection with or incidental to the conduct of his oil or gas operation. Any of the permittee's operations or the continu- ance thereof upon the premises covered by the per- mit are a menace or hazard to public or private property, or to any interest of the City, or to the lives or safety of persons. Any of the permittee's operations or the continu- ance thereof upon the premises covered by the per- mit constitute a public nuisance. Permittee made any willful misrepresentation of facts in any application for any such permit or in any report or record required by this Ordinance to be submitted to the City. fe Permittee burned or allowed to burn oil, gas, or other hydrocarbons in the City. 2e 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 in suspending or revoking such permit; provided, however, nothing therein con- tained shall be construed to prevent the performance of such operation as may be necessary in connection with a diligent and bona fide effort to cure and remedy the default or violation for which the suspension or revo- cation of the permit was ordered, or such operation as necessary for the safety of persons or as required by the Commission. ABANDONMENT Abandonment shall be approved by the City Engineer after restoration of the drill site and the subsurface thereof has been accomplished in conformity with the following require- ments: The derrick and all appurtenant equipment thereto is removed from the drill site. Ail tanks, towers, and other surface installations are removed from the drill site. Ordinance No. 1916 Page 28 Pe Ail concrete, piping, wood, and other foreign materials regardless of depth, except surface casing, are removed from the drill site, unless otherwise directed by the Commission. Ail holes and depressions are filled with clean compat- ible soil. Ail oil, waste oil, refuse, or waste material is re- moved from the drill site. Operator pays an abandonment fee in an amount set by Council resolution. During abandonment, Operator shall comply with all applicable sections in this Ordinance. APPEAL In addition to the hearing provided for by this Ordinance, any person whose drilling, re-working, activating, convert- ing, or renewal permit is refused or revoked may, within thirty (30) days, file a written appeal to the Council in accordance with the following procedure: The Council shall have and exercise the power to hear and determine appeals where it is alleged there is error or abuse of discretion regarding the revocation of any permits issued hereunder or determination of the existence of any idle well, as provided by this Ordi- nance. An appeal shall be in writing and shall be filed with the City Secretary. The grounds for appeal must be set forth specifically and the error described by the appellant. Upon receipt of the appeal, the City Secretary shall place the matter on the Council agenda for hearing and give notice by mail of the time, place, and purpose thereof to appellant, and any other party who requested notice in writing. Within ten (10) days from and after the filing of the appeal, the City Secretary shall transmit to the Coun- cil all papers involved in the proceedings. The City Secretary shall make and transmit to the Council such supplementary reports as he may deem necessary to pre- sent the facts and circumstances of the case. Copies Ordinance No. 1916 Page 29 shall be mailed to the appellant ten (10) days prior to the hearing. Se The Council shall hear the appeal on the hearing date unless, for cause, it shall continue the matter. No notice of continuance need be given if the order there- for is announced at the time for which the hearing was set. The decision of the Council shall be final and may only be reviewed on the abuse of discretion stan- dard. ACOUISITION AND TRANSFER OF EXISTING OPERATIONS Every person who acquires any well, property or site upon which operations which are the subject matter of this article exist, whether by purchase, transfer, assignment, conveyance, exchange or otherwise, shall within ten (10) days after acquiring such well, prop- erty or site, notify the City Secretary in writing of his acquisition. The notice shall contain the following: The name and address of the person acquiring such well, property or site involving an oil or gas operation. b. The name and location of the oil or gas operation. c. The date of acquisition. A description of the properties and equipment acquired, and the oil or gas operation. The name and address of any individual designated to receive service of notice in compliance with the notice provision requirements. The operator of every well shall notify the City Secretary in writing of the transfer to another operator of such well for any purpose. The notifica- tion shall be within ten (10) days after such transfer by reason of sale, assignment, transfer, conveyance or exchange and shall contain the following: The name and address of the person to whom such oil or gas operation was sold, assigned, transferred. The date when possession was relinquished by the former operator. Ordinance No. 1916 Page 30 Se C® The name and address of the person acquiring such well, property or site involving an oil or gas operation. d. The name and location of the oil or gas operation. e. The date of acquisition. A description of the properties and equipment acquired, and the oil or gas operation. The name and address of any individual designated to receive service of notice in compliance with the notice provision requirements. DESIGNATION OF EXISTING OPERATIONS A person shall have thirty (30) days after enactment of thie Ordinance to designate an oil or gas operation by survey description and plat if an application was made and granted under a prior Ordinance. VIOLATION It shall be unlawful and an offense for any person to do the following: Engage in any activity not permitted by the terms of a permit issued under this Ordinance. Fail to comply with any condition set forth in a permit issued under this Ordinance. Violate any provision or requirement set forth under this Ordinance. Any violation of this Ordinance shall be punished by a fine of not less than Fifty Dollars ($50.00) and not more that One Thousand Dollars ($1,000.00) per day, subject to applicable State law. GENERAL INFORMATION Should any section, paragraph, sentence, clause, phrase, or word of this ordinance be declared unconsti- tutional or invalid for any purpose, the remainder of this ordinance shall not be affected thereby. Ordinance No. 19%6 Page 31 That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. As used herein, a specification of the masculine gender includes the feminine, and the singular includes the plural. And, it is ordained this Ordinance shall become effec- tive immediately on its passage. PASSED, ADOPTED and APPROVED this 10th day of October, 1991. APPROVED: Larry~ ATTEST: Connie Hooks, City Secretary