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HomeMy WebLinkAbout1984-1512 - Ordinance - 04/12/1984ORDINANCE NO. 1512 AN ORDINANCE APPROVING THE ISSUANCE OF A PERMIT FOR THE DRILLING OF AN OIL AND GAS WELL BY CHAPARRAL MINERALS, INC., AS OPERATOR IN THE CITY OF COLLEGE STATION, AND IMPOSING CERTAIN CONDITIONS UPON THE OPERATOR HEREOF AND PERSONS CONNECTED WITIt OR INVOLVED WITH SUCH ACTIVITY. W~EREAS, the City Council did by resolution, on motion and second duly carried, approve the issuance of a permit for oil and gas drilling and operations by CHAPARRAL MINERALS, INC.; and W~EREAS, 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 CHAPARRAL MINERALS, INC. is hereby approved and issued, conditioned upon compliance with the terms thereof by the operator. 2e The operator shall pay the sum of THREE HUNDRED ($300.00) DOLLARS as the initial permit fee, and shall pay all reasonable costs of the City's technical consultants as are from time to time incurred or expended. Ail ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict.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. 1984. PASSED AND APPROVED this 12th day of April ATTEST: APPROVED: ? · OIL AND GAS PRODUCTION PERMIT CITY OF COLLEGE STATION, TEXAS CHAPARRAL MINERALS, INC. , OPERATOR ISSUED AND EFFECTIVE APRIL 12, 1984 BY ORDINANCE NO. 1512 PURPOSE The City Council of the City of College Station has determined that the testing and exploration for and development, production and storage of oil, gas, and mineral hydrocarbons (including 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 otherwlse, to the peaceable enjoyment of their property and the benefits and revenues therefrom. ACCORDINGLY, this permit is issued pursuant to the provisions of Chapter 4, Section 10 of the Code of Ordinances of the City of College Station, Texas, to implement appropriate regulations 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 welfare of the public, and accomplish the orderly, safe and practical productlon and enjoyment of available mlneral resources when such activlty is consistent with those objectives. IT SHALL BE UNLAWFUL TO: a. Engage in any activity not permitted by the terms of this permit. b. Fall to comply with any condition set forth in this permit. Upon approval of thls permit by ordinance, any violation of the provisions and conditions herein, or the provislons of Chapter 4, Section 10, of the College Station Code of Ordinances, as amended, may be prQsecuted -as a Class C misdemeanor in the Municipal 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 $1.00 to $1,000.00. Such violations may be enjoined by any action in the appropriate Court without the necessity of any prior prosecution 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 24 hours notice to the operator, delivered 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 activities incident to such activity, including, without limitation, the building of roads, erection and use of facilities, installation of equipment, connection of utilities, and other such operations on site, including operations in connection with or pursuant to enhanced or secondary recovery of oil, gas and associated hydrocarbons, shall be permitted and shall be lawful to the extent that same are conducted in compliance with the terms of this permit. RENEWAL AND INSPECTION 1.) An official designated by the City Manager shall inspect 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 30 days prior to the expiration of a permit. An inspection and renewal fee of $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 application. 3.) The operator shall make available for review information requested by the City and acquired through the direct efforts of the operator 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 with respect to information compiled incident to the well drilling operation, such as logs, cores, and samples of materials or hydrocarbons -2- produced in the process upon the earlier to occur of the filing of such information with the Commission or one hundred eight (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. 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 ~mposed, and the operator shall be not~fied 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 may be enforced by injunctive process. 2. The operator shall continue in force to the City Secretary prior to validation of this permit, proof of the following minimum ~nsurance coverage: (a) Standard comprehensive general liabllity including premises, operations, blow-out or explosion, products and completed operatlons, 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 (b) Comprehensive Automoblie Liability, covering owned, non-owned, and hired vehicles: 1. Bodily injury, each person, $250,000 2. Bodily injury, each accident, $500,000 3. Property damage, $100,000 each occurrence (c) Excess l~ability 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 l~mits or excess umbrella policies where a need for same is present. In the event that such a need ~s -3- 04't63 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 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 $25,000 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 Principle, 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 slx 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 breach of any of the terms, provisions and conditions of this article and the operator will promptly restore the streets, sidewalks and other public property of the City which may be disturbed or damaged in the operations, to their former condition; and that the operator will promptly clear all premises of litter, trash, waste, and other substances used, allowed, or occuring 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 operator. Such notice shall specify the work to be done, the estimated 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 performed or failing thereupon shall pay over to the City 125% of the estimated cost of doing the work as set forth in the notice. The City shall be authorized 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 -4- to cause the required work to be performed and completed, but no liability shall be incurred therein other than for the expendature 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 estimated cost of the work to be done as set forth in the notice or the bank refuses to honor any draft by the City agaainst the applicable 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 irrevocable letter of credit has been properly abandoned in conformity with our regulations of this permit and in conformity with all regulations of the Commission and notice to that affect has been received by the City or upon receipt of a satisfactory substitute 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 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: (iii) (i) The derrick and all appurtenant equipment thereto shall be removed from drill site (ii) Ail tanks, towers and other surface installations shall be removed from the drill site 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 (iv) All holes and depressions shall be filled with clean compactible soil. Ail oil, waste oil, refuse or waste material shall be removed from the drill site. 5. Failure to: a) produce a well as defined herein, b) to conduct operations for drilling or reworking a well for a period of 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 -5- 0 165 herewith. If the proposed activity is the same as that originally 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. No street shall be blocked or closed without the written consent of the City, acting through the City Manager. 7. All derricks and portable masts used for drilling, redrilling, deepening or reworking shall meet the standards and specifications of the American Petroleum Institute ss they presently exist or may be amended hereafter. 8. All drilling, redrilling, deepening or reworking equipment shall be removed from the oll operation site within thirty (30) days following the completion of drilling, redrilling, 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 residential property in the general vicinity of the oil operation site. Flaring will be permitted in compliance with the RRC'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. Slgn 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 connected with the drilllng redrilllng, deepening or reworking of any well shall be discharged into a portable steel tank or tanks, or other system approved by th 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 run-off. 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 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 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 -6- 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. 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 connection with the drilling of any well or for use on any production 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 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. 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) (b) 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. 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 constructed and maintained to meet the standards of the Commission and the National Fire Protection Association as they presently exist or may hereafter be amended. 17. Ail 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 -7- 0 .67 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 lighting rods and be grounded. 18. Ail well servicing equipment, including portable pulling 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 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 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. 20. Cleanup and Maintenance. (a) Cleanup after well servlcing. After completion of well servicing or abandonment operations, the drill site area shall be cleaned and all damage to public property caused by such ser- vicing or abandonment operations shall be re- paired. (b) Cleanup after spills, leaks and malfunctions. After any spill, leak or malfunction, operator shall remove or cause to be removed to the satisfaction of the Chief of the Fire Depart- ment all oil and waste materials from any public or private property affected by such spill, leak or malfunction. (c) Releasing of fluids. Excluding enhanced or secondary recovery operations, no person shall deposit, place, discharge or cause or permit -8- 0 .165 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, ~nto, 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. Freedom from debris. All property on which an oil well site is located shall at all times be kept free of (a) debris; (b) pools of oil, water or other liquids; (c) weeds; (d) brush; (e) trash, or other waste material. PERMIT CONDITIONS 1. 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, Ail 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 monitoring access to the facility at all times. 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. 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 may use earth berms and/or shrubbery to accomplish the screening affect. 7. The operator shall use a screen to restrict the l~ght 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 unauthorized 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 identity and phone number of a person available twenty-four hours a day in the event of an emergency on the site. This number shall be furnished to the Fire Department, the Police Department, 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) decibels at the fence during nighttime hours. 13. In the event of any spill or accidental release, the operator shall completely cleanup within eight (8) hours. 14. No sound those produced by motors shall exceed 94 decibels, calm air conditions. or noise produced on the site, including or engines used to operate equipment, measured ten feet from the source in 15. The operator shall pay the sum of THREE HUNDRED ($300.00) DOLLARS 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 days. Such costs are estimated to be in the amount of $5,000.00, but in any event shall not exceed $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 enforcement or clean up activities. 16. Cut slopes shall be constructed and sloped in a design approved by the City consultant. Cut slopes shall be covered with vegitation to prevent erosion. 17. Cut and fill work shall be carried out during the construction of the drilling pad. 18. Traffic to and from the drill sate shall be only on the West By-Pass. -lo- 0 .70 19. The following monitoring program shall be upon permitee: Air quality - Carry out spot sampling of air quality conditions on and around the drilling site. The first samples col- lected shall be made before drilling starts to establish a background charac- terization. Sampling is proposed for a weekly schedule; be Water quality - Water quality sampling of the stream runoff and mud pit water shall be carried on a schedule dictated by drilling activity and rainfall conditions. Noise - A noise survey shall be carried out to determine noise levels as a func- tion of distance from the rig. de Light - A night light level survey should be made to determine possible light pol- lution impacts. e. Traffic - A traffic counter shall be in- stalled to collect traffic data. fe General environmental review - A general 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 environmental impacts may be identified. imposed 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 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 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 April .. ~ , ~98~. MAYO R . APPRO~~~~~__ *Subject to compliance with the terms and conditions set forth herein.