HomeMy WebLinkAboutOrdinance - 9170-1988 - Amending Article VI Chapter 14 Opertion Oil And Gas Wells. - 02/11/1988DGV:da
First Reading
February 11, 1988 Item 16
Second Reading
February 25, 1988
Item 7
ORDINANCE NO. 9170
AN ORDINANCE AMENDING ARTICLE VI OF CHAPTER 14 OF THE CODE OF
ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, BY AMENDING THE LANGUAGE OF
SECTION 14-128 PERTAINING TO REQUIREMENTS FOR BONDS, LETTERS OF CREDIT
AND INSURANCE FOR DRILLING AND OPERATION OF OIL AND GAS WELLS; BY
AMENDING THE LANGUAGE OF SECTION 14-142, SUBSECTION (c)(3), WITH REGARD
TO VOTE REQUIRED TO SECURE PERMIT FOR OIL AND GAS WELL OPERATION WHEN
lESS THAN 100 PERCENT WRITTEN CONSENT OF REAl PROPERTY OWNERS IS SECURED;
PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION.
WHEREAS, the City Council of the City of Lubbock deems it to be in
the best interest of the citizens of the City of Lubbock to allow letters
of credit to be substituted for bonds by applicants for oil and gas
drilling and operation permits; and
WHEREAS, the City Council of the City of lubbock deems it to be in
the best interest of the citizens of the City of lubbock to specify the City Council vote required for issuance of an oil and gas well drilling
and operation permit when the applicant has not obtained 100 percent
written consent of property owners; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF lUBBOCK:
SECTION 1. THAT subsection (a) and (b) of Sec. 14-128 of the Code of Ordinances of the City of lubbock, Texas, BE and are hereby amended to read as follows:
8 (a) A bond or letter of credit in the principal sum of such
amount as has been determined by the City Council, but
not to be less than twenty-five thousand dollars
($25,000.00); the bond or letter of credit shall be
executed by a reliable insurance company authorized to
do business in the State of Texas, or the letter of
credit issued by a reliable bank authorized to do business in the State of Texas, as surety, and with
applicant as principal, running to the city for the
benefit of the city and all persons concerned,
conditioned that the permittee will comply with the
terms and conditions of this article in the drilling
and operation of the well. Such bond or letter of
credit shall become effective on or before the date it
is filed with the city manager and remain jn force and
effect for at least a period of six (6) months
subsequent to the expiration of the term of the permit
issued; and in addition, the bond or letter of credit
will be conditioned that the permittee 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 article, and
that the permittee will promptly restore the streets
and sidewalks and other public property of the 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 other substances used, allowed, 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
attributable to the granting of such permit. If at any
time the City Council shall deem any permittee's bond
or letter of credit to be insufficient for any reason,
it may require the permittee to file a new bond or
letter of credit. If, after completion of a well,
permittee has complied with all of the provisions of
this article, such as to removing derrick, clearing
premises, etc., he may apply to the City Council to
have the bond or letter of credit reduced to a sum of
not less than ten thousand dollars ($10,000.00) for the
remainder of the time the well produces without
reworking. During reworking operations the amount of
the bond or letter of credit shall be maintained at ten
thousand dollars ($10,000.00).
(b) In addition to the bond or letter of credit required in
paragraph (a) of this section, the permittee shall
carry a policy or policies of standard comprehensive
public liabil fty insurance, including contractual
liability covering bodily injuries and property damage,
naming the permittee and the city as insureds, in an
insurance company authorized to do business with the
State of Texas. Such poHcy or policies in the
aggregate shall provide for the following minimum
coverages:
(1) Bodily injuries one hundred thousand dollars
($100,000.00) one person; three hundred thousand
dollars ($300,000.00) one accident.
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(2) Property damage two hundred thousand dollars
($200,000.00). Permittee shall file with the
city manager certificates of such insurance as
above stated, and shall obtain the written
approval thereof by the city manager, who shall
act thereon within ten (10) days from the date of such filing. The insurance policy or policies
shall not be cancelled without written notice to
the city manager at least ten (10) days prior to
the effective date of such cancellation. In the
event such insurance policy or policies are cancelled, the permit granted shall terminate,
and permittee's rights to operate under such
permit shall cease until permittee files
additional insurance as provided herein. If,
after completion of a well, permittee has
complied with all of the provisions of this
article, such as to removing derrick, clearing
premises, etc., he may apply to the City Council
to have such insurance policy reduced as follows:
a. Bodily injuries, fifty thousand dollars
($50,000.00) one person; one hundred
thousand dollars ($100,000.00) one
accident.
b. Property damage, fifty thousand dollars
($50,000.00) for the remainder of the time
such well produces without reworking.
During reworking operations the amount of
the insurance policy or policies shall be
increased to the original amount."
SECTION 2. THAT line 6 of subsection (f) of Sec. 14-132 of the
Code of Ordinances of the City of Lubbock, Texas, BE and is hereby amended to read as follows:
"14-142(a), (c), (d) and (e); section 14-143(a), (b), (c),
and (f); sections 14-144 through 14-148; sections ••. "
SECTION 3. THAT subsection (c)(3) of Sec. 14-142 of the Code of Ordinances of the City of Lubbock, Texas, BE and is hereby amended to read as follows:
"(3) When the written consent of fifty (50) percent of real
property owners cannot be secured, the City Council may
approve a permit in accordance with this article by a
concurring vote of six (6) members."
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SECTION 4. THAT violation of any provision of this Ordinance shall be deemed a misdemeanor punishable by a fine not to exceed two hundred
dollars ($200.00) as provided by Section 1-4 of the Code of Ordinances.
SECTION 5. THAT should any paragraph, sentence, clause, phrase or
words of this Ordinance be declared unconstitutional or invalid for any
reason, the remainder of this Ordinance shall not be affected thereby.
SECTION 6. THAT the City Secretary is hereby authorized and
directed to cause publication of the descriptive caption of this
Ordinance as an alternative method of publication provided by law.
AND IT IS SO ORDERED.
Passed by the City Council on first reading this 11th day of
February , 1988.
Passed by the City Council on second reading this 25th day of February , 1988.
'Cc. McMlN; MAYOR
ATTEST:·
APPROVED AS TO CONTENT:
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
Before me Fnncea ttemandat a Notary Public in and for Lubbock County, Texas on this day
personally appeared Twill Aufitl t Accoaftt Henace t of the Southwestern Newspa-
pers Corporation. publishers of the Lubbock Avalanche-Journal -Morning, Evening and Sunday, who
being by me duly sworn did depose and say that said newspaper has been published continuously for more
than fifty-two weeks prior to the first insertion of this -tLw!C~IliiWII+f--fiNHiO~t~i~c~r•.-----------
------~-~---=---NI2St18 at Lubbock County, Texas and the attached print-
ed copy of the Lela I ht1ce is a true copy of the original and was printed in the Lubbock
Avalanche-Jgurnal on the following dates: r.&h If• March 5• Ull 26~ word• • .aa • Gl&9.68
' Account tl8ftftr
LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspapers Corporation
FORM58·10