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HomeMy WebLinkAbout1985-1610 - Ordinance - 09/12/1985ORDINANCE NO. 1~10 AN ORDINANCE APPROVING THE ISSUANCE OF A PERMIT FOR THE DRILLING OF AN OIL AND GAS WELL BY INEXCO OIL COMPANY, IN THE CITY OF COLLEGE STATIONw AND IMPOSING CERTAIN CONDITIONS UPON THE OPER- ATOR THEREOF AND PERSONS CONNECTED WIT~ OR INVOLVED WITH SUCS 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 INEXCO OIL COMPANY; 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 STA- TION, TEXAS: That the attached permit issued to INEXCO OIL COMPANY is hereby approved and issued, conditioned upon compliance with the terms thereof by the operator. 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 consultants as are from time to time incurred or expended. e Ail ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict. e This ordinance shall become effective upon its passage. PASSED AND APPROVED this 12th day of September, 1985. ATTEST: 00 52'- OIL AND GAS PRODUCTION PERMIT CITY OF COLLEGE STATION, TEXAS INEXCO OIL COMPANY, OPERATOR ISSUED AND EFFECTIVE September 12, BY ORDINANCE NO. 1610 1985 PURPOSE The City Council of the City of College Station has deter- mined that the testing and exploration for and development, pro- duction and storage of oil, gas, and mineral hydrocarbons (in- cluding enhanced or secondary recovery thereof) within the City limits is an activity which necessitates reasonable regulations in order that such activities will not cause injury or property damage to the citizens of the City, and that such activities should conform 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 conflicting property rights exist in the carrying out of such activities, and 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 permit is issued pursuant to the provi- sions of Chapter 4, Section 10 of the Code of Ordinances of the City of College Station, Texas, to implement appropriate regula- tions for present and future activities on the part of the above operator, its agents, employees, and contractors, as defined herein, in order to protect the health, safety, and general wel- fare of the public, and accomplish the orderly, safe, and practi- cal production and enjoyment of available mineral resources when such activity is consistent with those objectives. IT SHALL BE UNLAWFUL TO: 1. Engage in any activity not permitted by the terms of this permit. 2. Fail to comply with any condition set forth in this permit. Upon approval of this permit by ordinance, any violation of the provisions and conditions herein, or the provisions of Chap- ter 4, Section 10, of the College Station Code of Ordinances, as amended, may be prosecuted as a Class C misdemeanor in the Muni- cipal Court of the City of College Station, Texas. The range of punishment for Class C misdemeanor prosecution in Municipal Court shall be a fine of ONE DOLLAR ($1.00) to ONE THOUSAND DOLLARS ($1,000.00). Such violations may be enjoined by any action in - 1 00A52 the appropriate Court without the necessity of any prior prosecu- tion in Municipal Court. In the event of continued violation of the provisions and conditions of this permit or the above referenced provisions of 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 twenty-four (24) hours notice to the operator, deliver- ed to the address set forth herein, and to the operations site. PERMIT PERIOD This permit renews automatically each year while drilling or production operations are conducted. At the end of such time, it shall be updated by the filing of an application for renewal as provided for herein. PERMITTED OPERATIONS The operator shall be entitled to explore, drill, complete for production and produce an oil and gas well at the location specified on the plat attached hereto as Exhibit A. All activi- ties incident to such activity, including, without limitation, the building of roads, erection and use of facilities, installa- tion of equipment, connection of utilities, and other such opera- tions on site, including operations in connection with or pursu- ant to enhanced or secondary recovery of oil, gas, and associated hydrocarbons, shall be permitted and shall be lawful to the ex- tent that same are conducted in compliance with the terms of this permit. RENEWAL AND INSPECTION 1. An official designated by the City Manager shall in- spect the operations site prior to the expiration of the permit, and shall report to the City Manager prior to the renewal of said permit as to compliance with this ordinance. 2. The operator shall apply for a renewal permit thirty (30) days prior to the expiration of a permit. An inspection and renewal fee of ONE HUNDRED DOLLARS ($100.00) shall be paid at the time of reapplication. If such inspection reveals compliance with this ordinance during the preceding permit period, the City Manager shall issue a renewal permit. In all other events, the application for renewal shall be processed as an original appli- cation. - 2 - 00 52:. 3. The operator shall make available for review informa- tion requested by the City and acquired through the direct ef- forts of the operator, and in the possession of the operator, relating to the regulation of the activities on the operations site, including access to specifications and manufacturers' information concerning products or equipment, and with respect to information compiled incident to the well drilling operation, such as logs, cores, and samples of materials or hydrocarbons produced in the process upon the earlier to occur of the filing of such information with the Commission or one hundred eighty (180) days after completion of the well. The operator shall allow testing and accumulation of data on site pursuant to Section "Permit Conditions", subparagraph 19 thereof, 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. THIS PERMIT IS SUBJECT TO THE FOLLOWING CONDITIONS: 1. Ail 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 addi- tional conditions or regulations to this permit from time to time by the City's oil and gas consultant. All such additional condi- tions 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 twenty-four (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 imposi- tion of such conditions. If no such protest is filed, such con- ditions shall become part of this permit, and may be enforced by injunctive process. 2. The operator shall furnish to the City Secretary prior to validation of this permit, proof of the following minimum in- surance coverage: (a) Standard Comprehensive general liability including premises, operations, blow-out or explosion, products and completed operations, blanket contractual liabil- ity, underground property damage, independent contrac- tors and personal injury: Bodily injury FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) per occurrence, FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) aggregate. - 3 - 00 52t Property damage, TWO HUNDRED THOUSAND DOLLARS ($200,000.00) each occurrence, TWO HUNDRED THOUSAND DOLLARS ($200,000.00) aggregate. (b) Comprehensive Automobile Liability, covering owned, non-owned, and hired vehicles: 1. Bodily injury, each person, TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000.00). 2. Bodily injury, each accident, FIVE HUNDRED THOUSAND DOLLARS ($500,000.00). 3. Property damage, ONE HUNDRED THOUSAND DOLLARS ($100,000.00) each occurrence. (c) Excess liability umbrella FIVE MILLION DOLLARS ($5,000,000.00) in excess of primary insurance as provided above. The City Council may require, as a permit condition, addi- tional coverage or extended limits or excess umbrella policies where a need for same is present. In the event that such a need is perceived subsequent to the granting of this permit, the Coun- cil 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 fifteen (15) days notice of cancellation to the City. Termination of insurance shall pro-tanto terminate any permit granted hereunder. 3. The applicant shall provide the City Secretary with an irrevocable letter of credit in the principal sum of the amount of FIFTY THOUSAND DOLLARS ($50,000.00) and the letter of credit shall be executed by a reliable banking institution authorized to do business in the State of Texas, with the operator as Principal, running to the City for the benefit of the City and all persons concerned, conditioned that the operator will comply with the terms and conditions of this Article. Such letter of credit shall become effective on or before the date it is filed with the City Secretary and remain in force and effect for at least a six month period subsequent to the expiration of the term of the permit. In addition it will be conditioned that the operator will promptly pay all legally imposed fines, penalties, and other assessments imposed upon the operator by reason of his - 4 - 00 52- breach of any of the terms, provisions and conditions of this Article, the operator will promptly restore the streets, side- walks and other public property of the City which may be dis- turbed or damaged in the operations to their former condition, and trash, waste, and other substances used, allowed, or occurring in the operations, and will after abandonment, 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 operator will defend, indemnify, and hold the City, its officers, agents and employees, harmless from any and all liability growing out of or attributable to the granting of such permit regardless of whether the liability is caused in part by the City, its officers, agents, or employees, or any of them. If at any time the City Council shall deem any operator's letter of credit to be insufficient for any reason, it may require the operator to increase the amount of such letter of credit. Whenever the City finds that a default has occurred in the performance of any requirement or condition imposed by this Article, a written notice thereof shall be given to the opera- tor. Such notice shall specify the work to be done, the esti- mated cost thereof and the period of time deemed by the City to be reasonably necessary for the completion of such work. After receipt of such notice, the operator shall, within the time therein specified, either cause or require the work to be per- formed or failing thereupon shall pay over to the City one hundred twenty-five percent (]25%) of the estimated cost of doing the work as set forth in the notice. The City shall be autho- rized to draw any irrevocable letter of credit which covers the oil operation site. Upon receipt of such monies, the City shall proceed by such mode as being convenient to cause the required work to be performed and completed, but no liability shall be incurred therein other than for the expenditure of said sum in hand. In the event that the well has not been properly abandoned under the regulations of the Commission, such additional money may be demanded from the operator as is necessary to restore the drill site in conformity with the regulations of this Article. In the event the operator does not cause the work to be performed and fails or refuses to pay over to the City the esti- mated cost of the work to be done as set forth in the notice or the bank refuses to honor any draft by the City against the ap- plicable irrevocable letter of credit, the City may proceed to obtain compliance and abate the default by way of civil action against the operator, or by criminal action against the operator, or by both such methods. When the well covered by said irrevo- cable letter of credit has been properly abandoned in conformity with our regulation of this permit and in conformity with all - 5 - 00 52c regulation of the Commission and notice to that affect has been received by the City or upon receipt of a satisfactory substi- tute, the irrevocable letter of credit issued in compliance with this permit shall be terminated and cancelled. 4. In the event of proposed abandonment of a well site, the person abandoning shall notify the City Manager of same. Within ten (10) days of the approval of the abandonment by the Railroad Commission, the person abandoning same shall furnish a copy of such approval to the City Manager. Abandonment 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: (a) The derrick and all appurtenant equipment thereto shall be removed from drill site. (b) Ail tanks, towers and other surface in- stallations shall be removed from the drill site. (c) All concrete, piping, wood and other foreign materials regardless of depth, except surface casing, shall be removed from the drill site, unless otherwise directed by the Commission. (d) All holes and depressions shall be filled with clean compactible soil. All oil, waste oil, refuse or waste material shall be removed from the drill site. 5. Failure to: (a) produce a well as defined herein, or (b) to conduct operations for drilling or reworking a well for a period of ninety (90) consecutive days shall terminate any permit issued therefor. In the event of the proposed resumption of any activities for drilling, reworking, or producing a well, the operator of same shall re-apply for a permit in accordance herewith. If the proposed activity is the same as that orig- inally permitted, the City Manager may, after satisfactory inspection, grant a renewal permit. 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 permits. - 6 - 00 .52' 6. No street shall be blocked or closed without the writ- ten consent of the City, acting through the City Manager, and any other required state agency. 7. Ail derricks and portable masts used for drilling, re- drilling, deepening, or reworking shall meet the standards and specifications of the American Petroleum Institute as they presently exist or may be amended hereafter. 8. All drilling, redrilling, deepening, or reworking equipment shall be removed from the oil operation site within thirty (30) days following the completion of drilling, redrill- lng, deepening, or reworking. 9. No person shall permit or allow any lights located on any oil operation site to be directed in such a manner so that they shine directly on adjacent residential property or residen- tial property in the general vicinity of the oil operation site. Flaring will be permitted in compliance with the Railroad Commission's orders. 10. "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. 11. Rotary mud, drill cutting, oil or liquid hydrocarbons, and all other oil field wastes derived or resulting from or con- nected with the drilling, redrilling, deepening, or reworking of any well shall be discharged into a portable steel tank or tanks, or other system approved by the City's oil and gas consultant. Unless otherwise directed by the Commission, waste materials shall be removed from the operation site on a basis that will protect against inadvertent runoff. 12. In all cases, protection shall be provided to prevent blowout during oil operations as required by and in conformance with the requirements of the Commission. 13. The operation site shall be completely enclosed by a masonry wall or other approved fencing material and acceptable gates. A plan for fencing shall be submitted to the Building Of- ficial showing types of fencing materials and manner of construc- tion. 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 construc- tion proposed, and their sufficiency to prevent entry by animals - 7 - 00/ 53t or unauthorized persons. The proposal must be submitted within fifteen (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 twenty-four (24) hour supervision on site; or in any event. (b) Before actual drilling commences. 14. 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 con- nection with the drilling of any well, or for use on any produc- tion equipment unless it is equipped with an exhaust muffler or mufflers, 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. 15. Public nuisance declared. The foregoing sections not- withstanding, no person shall conduct any oil operation in a man- ner 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 viola- tion shall be punished as provided for herein. 16. 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. Ail 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. Ail 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 con- structed and maintained to meet the standards of the Commission and the National Fire Protection Association as they presently exist or may hereafter be amended. - 8 - 00 53 17. 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 amended, but in all cases shall be at least a minimum of fifty feet (50') from any public right-of-way to allow off street access to such facilities. All petroleum product tanks shall have lightning rods and be ground- ed. 18. Ail well servicing equipment, including portable pull- ing masts and gin poles, shall be removed from the oil operation site or drill site within seven (7) days after completion of a well servicing operation. 19. Storage of equipment. (a) No drilling, redrilling, reworking, or other portable equipment shall be stored on the oil operation site of the oil well located thereon. This in- cludes 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, or operator to park or store any vehicle or item of machinery on any street, right-of-way, or in any drive- way, 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 transporting hydrocarbon substances from the site. 20. Cleanup and Maintenance. (a) Cleanup after well servicing. After completion of well servicing or aban- donment operations, the drill site area shall be cleaned and all damage to pub- - 9 - 00453& lic or private property caused by such servicing or abandonment operations shall be repaired. (b) Cleanup after spills, leaks, and mai- functions. After any spill, leak, or malfunction, operator shall remove or cause to be removed to the satisfaction of the Chief of the Fire Department all oil and waste materials from any public or private property affected by such spill, leak, or malfunction. (c) Releasing of fluids. Excluding enhan- ced or secondary recovery operations, no person shall deposit, place, dis- charge, or cause or permit to be placed, deposited, or discharged any oil, naphtha, petroleum, asphaltum, tar, hydrocarbon substances, or any refuse, inluding 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 storm drain, ditch or sewer; a sanitary drain or sewer; any body of water or natural stream; or any private property in the City. (d) Freedom from debris. All property on which an oil well site is located shall at all times be kept free of (a) de- bris; (b) pools of oil, water, or other liquids; (c) weeds; (d) brush; (e) trash, or other waste material. PERMIT CONDITIONS ]. Any liquids, water, hydrocarbons, products, or by- products produced from the well shall be contained in a closed system, which shall at no time be released upon the ground or into adjacent drainage systems. All containment systems shall be protected against rainfall and flooding. No leakage or release of hydocarbons or by-products shall be permitted on the site. 2. The City or its consultant shall be entitled to moni- toring access to the facility at all times. -10- 00453,. 3. The operator shall comply with all Railroad Commission rules. 4. The operator shall notify the City Fire Marshall prior to the flaring of any gas, or the burning of any hydrocarbons on site. 5. When flaring is permitted and lawful, products may only be flared from a standing pipe with a flame no less than twelve feet (12') above the ground burning in such a manner as to produce a clean smoke. 6. The site shall be screened with a fence acceptable to the City Planner, as previously specified in Section 13 on Page 7. A proposal shall be submitted within five (5) days to the City Planner who shall approve or reject same. An acceptable fence to screen the site shall be completed within thirty (30) days from the date of this permit. The operator shall also use earth berms and shrubbery to accomplish the screening affect. 7. The operator shall use a screen to restrict the light from any flare. 8. Ail tanks and equipment shall be painted in earthtones. 9. Ail operations, including flaring, shall be conducted within a completely enclosed and fenced site, which shall be locked at all times, or if not locked during periods of use or operation, shall be guarded to prevent the entry of unauthorized persons. Signs shall be erected prohibiting the entry of un- authorized persons. The City shall be provided with a key or separate lock to permit monitoring access. 10. The operator shall keep the City informed of the iden- tity and phone number of a person available twenty-four (24) hours a day in the event of an emergency on the site. This num- ber shall be furnished to the Fire Department, the Police Depart- ment, and the City Secretary. 11. The operator shall notify the City through the Police Department within one (1) hour of any accidental release, fire, or casualty to persons or property on the site. 12. Noise produced on the site may not exceed eighty (80) decibels at the fence during daylight hours or sixty (60) deci- bels at the fence during nighttime hours, measured in calm air conditions. 13. In the event of any spill or accidental release, the operator shall completely clean up within eight (8) hours. - 11 00453 14. The operator shall pay the sum of THREE HUNDRED DOLLARS ($300.00) as the initial permit fee. The operator shall pay all reasonable costs and expenses of the the City's technical consultant and inspector upon receipt of invoices for such costs within ten (10) days. Such costs are estimated to be in the amount of FIVE THOUSAND DOLLARS ($5,000.00), but in any event shall not exceed SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00), total, except in the event any unforeseen failure of the drilling rig or other equipment, containment devices or vehicles, major spills or hydrocarbon releases, or other such significant en- forcement or clean up activities. 15. Cut slopes shall be constructed and sloped in a design approved by the City consultant. Cut slopes shall be covered with vegetation to prevent erosion. 16. Cut and fill work shall be carried out during the con- struction of the drilling pad. 17. Traffic to and from the drill site shall be only on the East By-Pass, East By-Pass feeder roads, and Krenek Tap Road. Note: Use of State Highways is regulated by the State Highway Department. 18. The following monitoring program shall be imposed upon permitee: (a) Air quality - Carry out spot sampling of air quality conditions on and around the drilling site. The first samples collected shall be made before drilling starts to establish a background characterization. Sampling is proposed for a weekly schedule; (b) Water quality - Water quality sampling of the stream runoff and mud pit water shall be carried on on a schedule dictated by drilling activity and rainfall conditions. (c) Noise - A noise survey shall be carried out to determine noise levels as a function of distance from the rig. Light - A night light level survey should be made to determine possible light pollution impacts. - 12- 00 53[ (e) Traffic - A traffic counter shall be installed to collect traffic data. (f) General environmental review - A gener- al environmental review shall be done to assess potential problems as public safety fencing access for emergency equipment, trash, erosion from on and off site sources, and other environmen- tal impacts may be identified. 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 ap- plication for writ taken to review the decision or order of the City in suspending or revoking such permit; provided, however, that nothing therein contained 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 de- fault or violation for which the suspension or revocation of the permit was ordered, or such operation as necessary for the safety of persons, or as required by the Commission. ISSUED THIS 12th day of September , 1985. ATTEST: CITY SE~ APPROVED: *Subject to compliance with the terms and conditions set forth herein. 13 - 00 53r_