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HomeMy WebLinkAboutOrdinance - 2939-1959 - Regulatingand Drilling Oil Or Gas Wells Within City Limits - 10/22/1959~.IJff· ' . : . J ORDINANCi"~o~~ !--·~ '. . \Q .. ??-1 ~ ~ · AN ORDINANCE REGULATING THE DRILLING OF OIL O~AS EL S A"'l,~ \ . I' ILW\THIN THE CITY LIMITS OF THE CITY OF LUBBOCK; DEFINING CERTAIN :~ TERMS: PROHIBITING THE DRILLING OR OPERATION OF ANY WELL WITH- .._ 1 r OUT A PERMIT.! PROVIDING FOR A FILING FEE TO BE PAID IN CONNECTION WITH APPLICATION FOR PERMIT; PROVTDING FOR THE APPOINTMENT OF I AN OIL AND GAS INSPECTOR; PROVIDING FOR THE TYPE OF EQUIPMENT I' TO BE USED IN DRILLING AND THE MANNER OF DRILLING• COMPLETING~ AND ABANDONING OF OIL OR GAS WEL·LS; PROVIDING THAT VIOLATION OF II CERTAIN LAWS OF THE STATE OF TEXAS AND CERTAIN REGULATIONS OF REGULATORY BODIES SHALL BE A VIOLATION OF THIS ORDINANCE; PRO- VIDING THAT THE INVALIDITY OR UNCONSTITUTIONALITY OF ANY PAR-I TICULAR PROVISION OF THIS ORDINANCE SHALL NOT AFFECT THE VALIDITY OR CONSTITUTIONALITY OF THE REMAINING PROVISIONS; PROVIillNG FOR , 1 A PENALTY. AND THAT PROVISIONS OF THIS ORDINANCE ARE CUMULATIVE OF ALL OTHER ORDINANCES; PROVIDING FOR PUBLICATION; AND DECLAR-I ING AN EMERGENCY AND THE EFFECTIVE DATE OF THIS ORDINANCE. -I WHEREASa the City Commission finds that due to the increase in oil and gas I ll drilling in the City of Lubbock that it would be in the interest of public health,. safe-, ty, and the general welfare to enact certain regulations with respect thereto; and, 11 WHEREAS,. there is an immediate need for such regulations to protect the public peace, property~ health,. and safety, which creates an emergency, NOW 1 THEREFORE. II BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBB.OCK: SECTION 1. THAT the Lubbock City Code is hereby amended by adding thereto a new Chapter to be designated Chapter l9A of Volwne I of said code to be entitled "Oil and Gas Drilling11, which shall read as follows: "Chapter l9A OIL AND GAS DRILLING. Sec. l9A-l DE FIN! TIONS. For the purposes of this chapter the following words and terms wherever and whemrver used or appearing herein shall have the scope and meaning hereinafter defined and set out in connection with each: (a} (b) The word 11we1l11 shall include and mean any hole or holes,, bore or bore a, to any sand, formatio~ strata or depth for the purpose of producing and recovering any oil2 gas1 liquid hydrocarbon, or any of them. The word "permittee" shall mean the person to whom is issued a permit for the drilling and ope ration of a well under this chapter, and his administrators,, exec- utors,. heirs, successors and a~signs. I f , (<:) All technical or oil and gas industry words or phrases used herein and not specifically defined herein shall have that me~ning customarily atb:ibutable thereto by prudent operators in the oil and gas industry. (d) The word 11lease11 as that term is used herein shall mean any tract of land sul>ject to an oil7 gas and Sec. 19A .. z mineral lease or other oil and gas development contract7 or any wtit composed o£ several tracts and leases but operated as one lease, and any tract of land in which the tninerals are owned by an operator or someone holding under it or him.t but which,. due to the free royalty ownership is developed and operated as a separate tract. INSPECTOR: APPOINTMENTJ COMPENSATIONt RE- MOVAL; DUTIES. The City Commission may appoint an oil and gas inspector, and his compensation shall be set by the City Commission. The inspector may be removed at the will of the City Commission. It shall be the duty of the oil and gas inspector when so appointed to enforce the pro- visions of this chapter. Sec. 19A-3 PERMIT--REQUIRED; ISSUING AUTHORITY. It shall be unlawful and an offense for any per son acting either for himself or acting as agent, employee, independent contractor7. or servant of any other person, to commence to drill, to drill, or to oper- ate any well :Within the city limit-s of the city, or to work upon or assist in any way in the prosecution or operation of any such well, without a permit for the drilling and operation of such well having first been issued by the authority of the City Commis..sion in accordance with the terms o£ tlis chapter. Sec. 19A-4 SAME--APPLICATION; FILING FEE. Every application for a permit to drill and operate a well shall be in writing, signed by the applii.r;ant or by some person duly autho- rized to sign on his behalf, and it shall be fil~d with the City Secretary and be accompanied Vldth a filing fee o£ two hundred fifty dollars in cash. No application shall request a permit to drill and operate but one well. The application shall include full information, including the following: (a) The date of the application; (b) Name of the applicant; (c) Address of the applicant; (d) Proposed site of the well,. including; (1) Name of the mineral owner and surface owner; 12.) Name of the lease .owner; (3) Brief description of the landi (-( - ,- (e) Type of derrick to be used; (.f) The proposed depth of the well. Sec. 19A ... 5 SAME--ISSUANCE OR REFUSAL TO ISSUE• The City Commission, within twenty days after the filing of the application for a permit to drill and operate a well shall determine whether or not the application complies in all respects with the pro- visions of this chapter, and if it does, the City Commission shall then fi x the amoWlt of the principal of the bond and insurance pro- vided for in section 19A-9 here ina and shall issue a permit for the drilling and operation of the well applied for. Each permit issued under this c~pter shall: (a) By reference have incorporated therein all the pro- visions of this chapter with the same force and effect as if this chapter were copied verbatim in such permit; (b) Specify the well location with particularity to lot num- ber:t, block nwnber2 aa.me of addition or subdivision, or other available correct legal de scription; (c) Contain and specify that the term of such permit shall be for a period of one year from the date of the permit and as long thereafter as the permittee is engaged in drilling operations with no cessations of such opera .. tions for more thanninety days~ or oil or gas i.l pro- duced in commercial quantities from the well drilled pursuant to such permit; provided,_ if at any time after discovery of oil or gas the production thereof in com- mercial quantities shall cease, the term shall not termin- ate if the permittee commences additional re w..a.rli.il!g operations within ninety days thereafter, and if they result in the production of oil or gas11 so long there- afte r as oil or gas is produced in commercial quanti- ties from such well; (d) Contain and specify such conditions as are by this chapter authorized; 1 {e) Specify the total depth to which the well may be drilled., not exceeding the projected depth; not.to exceed 9680 (.} f~~t .. ~_greater depth will require an additional permit and permit fe e of $100. (f) Contain and specify that no actual ope ratio.as shall be commenced until the permittee shall file and have ap- proved an indemnity bond in the designated principal amount as so determined by the City Commission and conditioned as specified in Section 19A-9 hereof. Such permit,. in duplicate originals, shall be signed by the City Manager,. and prior to delivery to the permittee shall be signed by the permittee (with one original to be retained by the city and one by the permittee); and when so signed shall constitute the permittee1s drilling . and operating license, and contractual obligation of the permittee to comply with the terms of such permit, and such bond. and this chapter. If the permit for the well be refused, or if the applicant notifies the City Commission in writing that he does not elect to accept the per- mit as tendered and wishes to withdraw his application, or if the bond of the applicant be not approved and the applicant notifies the City Commission in writing that he wishes to withdraw his application, then upon the :hap- pening of such an event, the cash deposit provided for to be filed with the application shall be returned to the applicant-.. except that there shall be retained therefrom by the city one hundred dollars as a processing fee. Sec. 19A-6 SAME--TERMINATION. When a permit shall have been issue~ the same shall termi- nate and become inoperative without any action on the part of the city; unless within ninety days from the date of issuance, actual drilling of the well shall have commenced. The cessation for a like period of the drilling operations or the cessation of the production of oil or gas from the well after production shall have commenced shall operate to terminate and cancel the permit, and the well shall be considered as abandoned for all purposes of this chapter, and it shall be unlawful thereafter to continue the operation or drilling of such well without the issuance of another permit. Sec. 19A-7 SAME-... SUPPLEMENTAL FOR DEEP DRILLING; Once any well has either been complete<:! as a producer or abandoned as a dry hole, it shall be unlawful and an offense for any ~~-·•---~ person to drill such well to a deeper depth than that reached in the prior drilling operations without the permittee as to such well ob- taining a supplemental permit after filing a supplemental applica- tion with the City Secretary specifying: (a) The then condition of the well and the casing therein; {b) The depth to which it is proposed such well be deepened; (c) The proposed casing program to be used in the connection with proposed deepening operations; (d) Evidence of adequate current tests showing that the casing strings in such well currently pass the same tests as are in this chapter provided for in case of the drilling of the original well. In the event the City Commission is satisfied that such well may be deepened with the same degree of safety as existed in the original well, a supplemental permit may be issued without additinnal filing fee to the permittee authorizing the deepening and operation of the well to such specified depth as apll_i!ed for. In any deeper drilling or any deeper completion of any deeper production operations the permittee shall com- ply with all other provisions contained in this chapter and applieable to the drilling, completion and operation of a well or wells. I _) J Sec. 19A-8 SAME--FOR CONDUITS ON STREETS AND ALLEYS: REQUIRED. No permittee shal1 make any excavations or construct any lines for the conveyance of fuel, water or minerals, on. Wlder or through the streets and alley s of the city~ without express permission of the City Commission, in writin g, and then only in strict compliance with the ordinances of the city. Sec:. 19A-9 BOND AND INSURANCE; REQUIRED: AMOUNTS. In the event a permit be issued by the City Commission under the terms of this chapter for the drilling and operation of a well, no actual drilling operations shall be commenced Wltil the permittee shall file with the City Secretary a bond and a certificate of insurance, as follows: (a) A bond in the principal sum of such amount as has been determined by the City Commission. but not to be less than twenty-five thousand dollars the bond shall be exe- cuted by a reliable insurance company authorized to do business in the State of Texas, as surety,. and with appli- cant as principal, running to the city for the benefit of the city and all persons concerned, conditioned that the permiUe.e will comply with the terms and conditions of this chapter in the drilling and operation of the well. Such bond 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 period of six months subsequent to the expiration of the term of the permit issued; and in additionilt the bond will be conditioned that the per- mittee will promptly pay all fines, penalties and other assessments imposed upon permittee by reason of his breach of any of the terms, provisions and conditions of this chapter, and that the permittee will promptly re &ore the streets and sidewalks and other public prop- erty of tae city which may be disturbed or damaged in the operations, to their former condition; and that the permittee will promptly clear all premises of all litter, trash, waste, and othe r subatalmcee used.t allow- ed, or occurring in the -drilling or producing operations~ and will,. after abandonment, grade, level and restore such property to the same surface condition, as nearly as possible, as existed when operations for the drilling of the well or wells were first commenced; and that the permittee will indemnify and hold the city harmless from any and all liability growing out of or aUributable to the granting of such permit. If at any time the city commission shall deem any permittee1 s bond to be in- sufficient for any reason. it may require the permittee to file a new bond. . . . If, after completion of a well,, permittee has complied with all of the provisions of this chapter, such as to removing derrick, clearing premises, etc. he may apply ~tp the City c 'ommission to have the bond reduced to a lillll'n o£ not less than ten thousand dollars for the remainae r of the time the well produces without re- working. During reworking operations the amount of the bond shall be maintained at $101 000. (b) In addition to the bond required in paragraph (a) of this section~ the permittee shall carry a policy or policies of standard comprehensive public liability insurance1 including contractual liability covering bodily injuries and property damage, naming the permittee and the city; in an insurance company authorized to do business with the State of Texas. Such policy or policies in the aggregate shall provide for the following minimum coverages: (1) Bodily it:Plries one hundred thousand dollars one person; three hundred thousand dollars one acci- dent. (Z) Property damage two hundred thousand dollars. Permittee shall file with the City Secretary cer- tificates of such insurance as above stated, and shall obtain the written approval thereof by the City Manager, who shall act thereon within ten days from the date of such filing. The insurance policy or policies shall not be cancelled without written notice to the City Secretary at least ten days prior to the effective date of such cancella- tion.. In the event such insurance policy or policies are cancelled, the permit granted shall terminate,. and permittee• a rights to operate under such per- mit shall cease until permittee files additional insurance as provided herein. If, after completion _ of a well1 permittee has complied with all of the provisions of this chapter, such as to removing derrick, clearing premises, etc. he may apply to the City C.Qnunis.:sion. to have. :B~hdn.s:m-iUlce.: ·policies reduced as tallows: (A) Bodily injuries,_ fifty thousand dollars one person; one hundred thousand dollars, one accident. {B) Property damage, fifty thousand dollars, for the remainder of the time such well produces without reworking. During reworking opera- tions the amount of the insurance policy or policies shall be increased to the original amount. .. 1· ·. ./ .. J S~c. 19A-10 IN STREETS AND ALLEYS OBSTRUCTIONS; PERMIT. No well shall be drilled and no permit shall be issued !or any well to be drilled at any location which is within any of the streets or alleys of the city:J ox in projected highway and street or alley; and no street or alley shall be blocked or encumbered or closed in any drilling or production operation except by special permit by order of the City Commission. and then only te rmporaril y. Sec. 19A-ll PROXIMITY OF WELL TO RESIDENCES; PERMISSION.; No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than one hundred and fifty feet of any residence or commercial building without the applicant having first secured the written pernU.ssion of the owner or owners thereof. ( ) Sec. 19A-1Z DERRICK AND RIG; TYPES PROHIBITED: ALLOWING TO REMAIN; WATCHMAN. It shall be unlawful and an offense for any person to use or operate in connection with the drilling or reworking of any well within the city limits, any wooden derrick or any steam-powered rig, and all engines shall be equipped with adequate mufflers. No person shall permit any drilling rig or derrick to remain on the premises or ·drilling site for a period longer than sixty days after completion or abandonment of the well. At all times from .;the start of erection of a derrick~ or a mast:J or a gin-pole, until the well is abandoned and plugged or completed as a producer and enclosed with a fence as herein provided, the permittee shall keep a watchman on duty on the premises at all times; provided:J however, it shall not be nece- ssary to keep an extra watclunan on duty on the premises when other work- men of permittee are on such premises. Sec. 19A-13 PITS; REQUIRED TYPE; REMOVAL.; Steel slu~h pits shall be used in connection with all drilling and reworking operations. Such pits and contents shall be removed from the 1 premises and the drilling site within thirty days after completion of the well. No earthen slush pits shall be used~ which may be calculat_ed to con- taminate, pollute or render unpal.iil:able, ~derground and percolating water, and then only on reworking operations. Sec. 19A-14 OPERATIONS AND EQUIPMENT; BEST PRACTICES; STAN- BARDS• All drilling and operation at any well performed by a permittee under this chapter shall be conducted in accordance with the best practices of the reasonably prudent operator in the Permian Basin area. All casing, valves, and blow-out preventer sa drilling fluid, tubing, bradenhead, Christmas tree:. and well head connections shall be of a type and quality consistent with the best practices of such reasonably prudent operator. J <Setting and cementing casing and rwming drill stem tests shall be performed in a manner and at a time consistent with the best practices of such reason- ably prudent operation. Each permittee under this chapter shall observe and follow the recommendations and/ or regulations of the American Petroleum Institute and the Railroad Commission of the State of Texas. Sec. 19A-15 CLEANLINESS AND SANITATION.; The premises shall be kept in a clean and sanitary conditio~ free from rubbish of every character1 to the satisfaction of the health officer of the city~ at all times drilling operations or reworking operations are being conductec4 and as long thereafter as oil and/or gas is being produced there- from. It shall be unlawful for any permittee, his agent or employee to per- mit within the corporate limits of the city any mu~ water, waste oil, slush or other waste matter from any slush pit. storage tank, or oil and/or gas well located within the corporate limits of the city, or from any premises within the city, developed or being developed for oil and/or gas purposes,to ,scape into the alleys, streets, lots, land or leases within the corporate limits of the city. Sec. 19A-16 MUFFLERS; REQUIRED; ..... _ --~ 7.. _..:. --------..-...::..."""'·---· -----·-- Motive power for all operations after completion of drilling operation shall be electricity~ or properly muffled gas, gasoline or Diesel engines. Sec. 19A-17 STORAGE TANKS, SEPARATORS; TYPES; REQUIREMENTS. It shall be unlawful and an offense for any person to use, construct or operate in connection with any producing well within the city limits, any crud oil storage tanks except to the extent of two low type steel tanks for oil sto- rage,. not exceeding five hundred barrels capacity each and so constructed and maintained as to be vapor tight. A permittee may use, construct and operate a steel conventional separator'~~ and such other steel tanks and appur tenances as are necessary for treating oil with each of such facilities to be so constructed and maintained as to be vapor tight. Each oilt gas separator shall be equipped with both a regulation pressure relief safety valve and a . bursting head. All such tanks and separators shall be placed above ground and the tanks shall be placed upon a suitable earth or concrete pad. The tank or tanks shall be enclosed within a conventional type fire wall constructed of compacted earth; sufficient water shall be used during the fire wall construction to assure adequate compaction. The fire wall enclosing the tanks shall have a minimum capacity equal to two times the volwne of the tanks enclosed. The top or crown of the fire wall shall have a normal height of three feet above normal ground elevation. The location of the tank site shall be approved by the city oil and gas inspector. ....) J j The tanks shap be recessed within the fire wall enclosure to such depth tpat will assure them being practically 11sight clear11 when viewed !rom with- out the fenced enclosure. The separators shall be installed for operation in a horizonal or verticle position, height not to exceed ten feet above tank level. 1 Any oil or gas produced may be transported outside of the city limits by under ground pipe lines. Sec. 19A-18 FENCES; REQUIRED; LOCKING GATESt WAIVER BY INSPEC TOR. Any person who completes any well as a producer shall have the obliga- tion to enclose such wella together with its surface facilities, by a substan- tial wire fence sufficiently high and properly built so as to ordinarily keep persons and animals out of the enclosure., with all gates thereto to be kept locked when the permittee or his employees are not within the enclosure pro vided, however, in noncongested areas the City Manager, in his discretion• may waive the requirement of any fence or may designate the type of fence to b be erected. Sec. 19A-19 NUISANCES; TO BE ELIMINATED; BEST PRACTICES. All oil operations~ drilling and production operations shall be conducted I in· such a manner as to eliminate., as far as practicable, dust, noise, vibra- tion or noxious odors) arid shall be in accordance with the best accepted prac tice s incident to exploration for:r, drilling for and production of oil, gas and other hydrocarbon substances. Proven technological improvements in explo ration., drilling and production methods shall be adopted as they become, frotilt time to time, available, if capable of reducing factors of nuisance and annoyt Sec. 19A-20 FIRE PREVENTION--E&CAPE OF GAS; BURNING; FLARlNGH GENERAL REQUIREMENTS. II (a) No permittee engaged in the drilling or operation of an oil and/ or g s well within the corporate limits of the city shall permit gas to e.scape into th air7. or flare or burn gas from a torch or any similar means Within the corpo1 ate limits of the city; provide~ gas may be burned for a limited t ime when necessary to complete an oil and/or gas well upon the original completion o upon the recompletion of work over jobs upon oil and/ or gas wells~ so long a the same does not constitute a ire hazard to the property of others within the vicinity of such oil and/ or gas well. (b) Adequate fire fighting apparatus and supplies~ .approved by the fire department of the city shall be maintained on the drilling site at all times during drilling and production operations. All machinery, equipment and installations on all drilling sites within the city limits shall conform with such requirements as may from time to time be issued by the fire depart- ment of the city. Sec. 19A-21 ABANDONMENT; PLUGGING; PRECAUTIONARY MEASU~ I Whenever any well is abandoned it shall be the obligation of the permitte,~ and the operator of the well to set a three hundred eighty five foot cement plug in the bottom of the surface casing with the bottom of the plug one hnndred feet below the surface casing section, and the top of the plug onJ hundred feet above the surface casing s e ction; and to s e t a fifty foot cement plug in the top of the surface casing. .u ~ .. ____ . .: ~ u-· .::u ~ x..:,._.... ..... "' ...... No surface or conductor string of casing may be pulled or removed from a well. During initial abandonment operations it will be the obligation of the permittee and the operator of the well to flood the well with mudladen fluid weighing not less than ten pounds per gallon~ and the well will be kept filled to the top with such mud-laden fluid at all times. Mud-laden fluid of the above specifications will be left in the well bore below and between ceme ~ plugs. Any additional provisions or precautionary measures prescribed by j the State of Texas or the Railroad Commission of the State of Texas in con ... nection with the abandorunent and plugging of a well shall be complied with I by the permittee. Sec. 19A-2.2. SALT WATER; DISPOSAL REQUIRED• Permittee shall make adequate provisions for the disposal of all salt water or other impurities which he may bring to the surface~ such disposal to be made in such manner as to not contaminate the water supply> present or prospective, or to injure surface vegetation. Sec. 19A-2.3 FEDERAL AND STATE LAWS APPLY. Any violation of laws of the State of Texas or any rules, regulations or requirements of any State or Federal regulatory body having jurisdiction in reference to drilling, completing, equipping1 operating, producing1 main taining, or abandoning an oil or gas well or related appurtenances., equip- ment or facilities, or in reference to fire walls, fire protectio~ blow-out protection~ safety protection, or convenience of per sons or property~ shall also be a violation of this chapter and shall be punishable in accordance with the provisions hereof. Sec. 19A-2.4 PENALTIES; FINE; FORFEITURE; REVOCATION OF PERM! • It shall be unlawful and an offense for any per son to violate or ne glee :1 to comply with azy ~provision hereof, irrespective of whether or not the veri r, biage of each section hereof contains the specific language that such violatio or neglect is unlawful and is an offense. Any person who shall violate any o the provisions of this chapter, or al}y of the provisions of a drilling and operating permit issued .pursuant hereto,. or any conditinn of the bond filed by the permittee pursuant to this chapter., or who shall neglect to comply ~ with the terms aereof., shall be deemed guilty of a misdemeanor and shall, "' on conviction thereof, be fined in any swn not exceeding two hundred dollars/ 4 and the violation of each separate provision of this chapter, and of such per-jjl:( mit, and of such bond1 shall be considered a separate offense, and each day violation of each separate provision thereof shall be considered a separate offense. In addition to the foregoing penalties, it is further provided that the city commission at any regular or special session or meeting thereof, may~ provided ten d.ays1 notice has been given to the permittee that revo- cation is to be considered at such meeting~ revoke or suspend any permit issued under this chapter and under which drilling or producing operations are be.ing conducte~ in the event the permittee thereof has violated any --==ll=c= '?. .... U ' .. "J?lfCi>vision of such permit, such bond. or this chapter. In the event the per- • q mit is revokec4 the permittee may make application to the City Commission for a reissuance of such permit, and the action of the City Commission ther - on shall be final. 11 SECTION 2. SEVERABILITY: If any section., paragrap~ subdivision, claus :t phrase, or provisions of this Ordinance shall~ for any reason,. be adjudged invalid or held to be unconstitutional~ the invalidity or unconstitutionality of such particu- lar section~ paragraph, subdivision, clause, phrase or provision so declared shal not affect the validity or constitutionality of the remaining provisions hereof, but the same:~ and each of them~ shall remain in full force and effect. SECTION 3. The provisions of this ordinance shall be cumulative of all other ordinances of the City of Lubbock on the same or similar supject matter. SECTION 4. The City Secretary shall cause the publication of the caption and penalty clause of this ordinance (said penalty clause being set forth as Sec. 19A-24 in Section 1 of1hls ordinance) once a week for two consecutive weeks in a newspaper regularly published in the City of Lubbock as an alternative method of publication as provided by law. SECTION 5. This ordinance is declared to be an emergency measure for th reasons eet forth in the preamble hereof and the rule requiring two readings of an ordinance before final passage is suspended, and this ordinance shall become ef- fective immediately after its passage. AND IT SO ,ORDERED On motion of Commissioner Casey ,seconded by Commissioner Th.ompson , the above and foregoi~dinance was unanimously passed by the City Commission this ~,:'(,day of ~ , 1959, by the following vote: Commissioners Voting 11AYE11: Commissioners Voting 11NAY": ATTEST: ~~~ City Secretary-Trea \lrer Casey, Thompson, MAner, Y4XeY No~~ YOR ' -