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OR 2007-1150 Oil and Gas well permits ORDINANCE NUMBER 2007-1150 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF COPPELL, CHAPTER 9, BY ADDING ARTICLE 9-26, “OIL AND GAS DRILLING AND PRODUCTION,” REGULATING THE DRILLING AND PRODUCTION OF OIL AND GAS WELLS; PROVIDING FOR DEFINITIONS; PROVIDING FOR INSPECTOR/TECHNICAL ADVISOR; PROVIDING FOR OPERATOR’S AGENT; PROVIDING FOR OIL OR GAS WELL PERMIT REQUIREMENTS; PROVIDING FOR PERMIT APPLICATION AND FILING FEES; PROVIDING FOR PERMIT PROCESS; PROVIDING FOR SETBACKS; PROVIDING FOR SCREENING FOR OIL OR GAS WELL FACILITIES; PROVIDING FOR LANDSCAPING; PROVIDING FOR VEHICLE ROUTES; PROVIDING FOR WORK HOURS; PROVIDING FOR NOISE RESTRICTIONS; PROVIDING FOR TANK SPECIFICATIONS; PROVIDING FOR THE CONVEYANCE OF FUEL, WATER, OIL, GAS OR PETROLEUM; PROVIDING FOR THE ISSUANCE OF OIL OR GAS WELL PERMITS; PROVIDING FOR AMENDED OIL OR GAS WELL PERMITS; PROVIDING FOR SUSPENSION OR REVOCATION OF OIL OR GAS WELL PERMITS; PROVIDING FOR PERIODIC REPORTS; PROVIDING FOR BONDS, LETTERS OF CREDIT, INDEMNITY, INSURANCE; PROVIDING FOR TECHNICAL REGULATIONS; PROVIDING FOR CLEAN UP AND MAINTENANCE; PROVIDING FOR PLUGGED AND ABANDONED WELLS; PROVIDING FOR APPEALS; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE OF A FINE NOT TO EXCEED TWO THOUSAND DOLLARS ($2000) FOR EACH AND EVERY OFFENSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS , there has been increased interest in oil and gas drilling and production within the city of Coppell; WHEREAS , the city of Coppell currently requires a Special Use Permit for Gravel, Sand, Stone or Petroleum Extraction in the Light Industrial and Agriculture Districts, but does not have comprehensive regulations concerning drilling and production of gas within the city limits; WHEREAS , the City Council finds that the drilling and production of oil and gas within the city limits without comprehensive regulations could affect the health, safety and welfare of its citizens; AS TM 12512.2.00CDB.REV WHEREAS , the City Council deems it necessary to enact comprehensive regulations for the drilling and production of oil and gas within the city limits; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. The Code of Ordinances of Coppell, Texas, is hereby amended by amending Chapter 9 by adding a new Article 9-26 entitled “Oil and gas,” which reads as follows: “ARTICLE 9-26. OIL AND GAS DRILLING Sec. 9-26-1. Purpose. The exploration, development and production of oil and gas in the City is an activity which necessitates reasonable regulation to ensure that all property owners, mineral and otherwise, have the right to peaceably enjoy their property and its benefits and revenues, and to prevent destruction of property and protect watersheds within the City. It is hereby declared to be the purpose of this Ordinance to establish reasonable and uniform limitations, safeguards and regulations for present and future operations related to the exploring, drilling, developing, producing, transporting and storing of oil and gas and other substances produced in association with oil and gas within the City to protect the health, safety and general welfare of the public; minimize the potential impact to property and mineral rights owners, protect the quality of the environment and encourage the orderly production of available mineral resources. Sec. 9-26-2. Definitions. All technical industry words or phrases related to the drilling and production of oil and gas wells not specifically defined in this Ordinance shall have the meanings customarily attributable thereto by prudent and reasonable oil and gas industry operators, the Texas Railroad Commission, the Texas Commission for Environmental Quality (TCEQ) and the Environmental Projection Agency (EPA). The following words, terms and phrases, when used in this Ordinance, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Abandonment means “abandonment” as defined by the Texas Railroad Commission and includes the plugging of the well and the restoration of any well site as required by this Ordinance. Blanket Permit means a permit approved and issued for multiple wells/drill pads located on the same tract of land. Blowout preventer means a mechanical, hydraulic, pneumatic or other device or combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith, which can be closed around the drill pipe, or other tubular goods which completely close the top of the casing and are designed for preventing blowouts. 2TM 12512.2.00.AS/CDB.REV Building means any structure used or intended for supporting or sheltering any use or occupancy. The term “building” shall be construed as if followed by the words “or portions thereof.” Containment means controlling the unplanned or accidental spillage or flow of any substance capable of causing pollution, including but not limited to smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, drilling fluids including muds, or other irritants. Cathodic protection means an electrochemical corrosion control technique accomplished by applying a direct current to the structure that causes the structure potential to change from the corrosion potential to a protective potential in the immunity region. The required cathodic protection current is supplied by sacrificial anode materials or by an impressed current system. City means the City of Coppell. City Code means the Code of Ordinances of the City of Coppell. City Attorney means the City Attorney of the city of Coppell. Closed Loop Drilling system is a system of drilling whereby natural materials (earth) is pumped up from the bore hole and are captured in legally required containment equipment and hauled off to environmentally approved disposal sites. Commission means the Texas Railroad Commission. Completion of drilling, re-drilling and re-working means the date the work is completed for the drilling, re-drilling or re-working and the first gas is flowing, Derrick means any portable framework, tower, mast and/or structure which is required or used in connection with drilling or re-working a well for the production of oil and gas. Drilling means digging or boring a new well for the purpose of exploring for, developing or producing oil, gas or other hydrocarbons, or for the purpose of injecting gas, water or any other fluid or substance into the earth. Drilling means and includes the re-entry of an abandoned well. Drilling does not mean or include the re-entry of a well that has not been abandoned. Drilling equipment means the derrick, together with all parts of and appurtenances to such structure, every piece of apparatus, machinery or equipment used or erected or maintained for use in connection with drilling. Drill site means the premises used during the drilling or re-working of a well or wells located there and subsequent life of a well or wells or any associated operation. Exploration means geologic or geophysical activities, including seismic surveys, related to the search for oil, gas or other subsurface hydrocarbons. 3TM 12512.2.00.AS/CDB.REV Fire Department means the Fire Department of the city of Coppell. Fracing is the term describing how the gas is freed from the shale rock. It is done by forcing sand and water down into the well hole under great pressure, thus fracturing the shale which permits the gas to escape from the rock. Gas means any fluid, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rarefied state at standard temperature and pressure conditions and/or the gaseous components or vapors occurring in or derived from petroleum or natural gas and/or as defined by the Railroad Commission. Oil and gas well means any well drilled, to be drilled, or used for the intended or actual production of oil or natural gas, or classified as a gas well in the Texas Natural Resources Code and regulated by the Texas Railroad Commission. Inspector means the Oil and Gas Inspector/Technical Advisor designated by the City Manager of Coppell. Operation site means the area used for development and production and all operational activities associated with oil or gas after drilling activities are complete. Permit means the permit required by the city of Coppell for any proposed well. Open Loop Drilling System is a system of drilling whereby earth is drilled up from the well flows into holding tanks and the frac pond thus being allowed to settle so that the frac water can be reused. Open Loop Systems shall not be permitted. – Operator means, for each well, the person listed on the Railroad Commission Form W-1 or Form P-4 for an oil or gas well that is, or will be, actually in charge and in control of drilling, maintaining, operating, pumping or controlling any well, including, without limitation, a unit Operator. If the Operator, as herein defined, is not the lessee under an oil or gas lease of any premises affected by the provisions of this Ordinance, then such lessee shall also be deemed to be an Operator. In the event that there is no oil or gas lease relating to any premises affected by this Ordinance, the owner of the fee mineral estate in the premises shall be deemed an Operator. Person means both the singular and the plural and means a natural person, a corporation, association, guardian, partnership, receiver, trustee, administrator, executor, and fiduciary or representative of any kind. Public building means all buildings used or designed to and intended to be used for the purpose of assembly of persons for such purposes as deliberation, entertainment, amusement, or health care. Public buildings include, but shall not be limited to, theaters, assembly halls, auditoriums, armories, mortuary chapels, dance halls, exhibition halls, museums, gymnasiums, bowling lanes, libraries, skating rinks, courtrooms, restaurants, hospitals, government buildings, schools, colleges and universities. 4TM 12512.2.00.AS/CDB.REV Public park means any land area dedicated to and/or maintained by the City for traditional park-like recreational purposes. Re-drill or reworking means re-completion of an existing well by deepening or sidetrack operations extending more than one hundred fifty (150) feet from the existing well bore. Religious Institution means any building in which persons regularly assemble for religious worship and activities intended primarily for purposes connected with such worship or for propagating a particular form of religious belief. Residence means a house, duplex, apartment, townhouse, condominium, mobile home or other building designed for dwelling purposes, including those for which a building permit has been issued on the date the application for an Oil or Gas Well Permit is filed with the Oil and Gas Inspector. Re-working means re-completion or re-entry of existing well within the existing bore hole or by deepening or sidetrack operations which do not extend more than one hundred fifty (150) feet from the existing well bore, or replacement of well liners or casings. Right-of-way means public rights-of-way including streets, alleys, easements and other property within the City and which is dedicated to the use and benefit of the public. School means any public and private, primary, secondary and higher educational facilities providing education up through and including the twelfth grade and college level and any licensed day care centers, meaning a facility licensed by the State of Texas that provides care, training, education, custody, treatment or supervision for more than six children under 14 years of age, and for less than 24 hours per day. Seismic activity is that activity performed before a well is drilled to determine the quality of the materials beneath the proposed drilling site. This process different transmitted frequencies into the earth and bounced back at different speeds to show a “seismic picture” of the structure to be drilled. It reveals to potential drillers where not to drill more than where to drill. Spud means the first time the drill bit enters the ground for gas well drilling and production. Street means any street, highway, sidewalk, alley, avenue, recessed parking area or other public right-of-way, including the entire right-of-way. Tank means a container, covered or uncovered, used in conjunction with the drilling or production of oil, gas or other hydrocarbons for holding or storing fluids. Technical advisor means such person(s) familiar with and educated in the oil or gas industry or the law as it relates to oil or gas matters who may be retained from time to time by the City. 5TM 12512.2.00.AS/CDB.REV Well means a hole or holes, bore or bores, to any horizon, formation, or strata for the purpose of producing oil, gas, liquid hydrocarbon, brine water or sulfur water, or for use as an injection well for secondary recovery, disposal or production of oil, gas or other hydrocarbons from the earth. Sec. 9-26-3. Oil and Gas Inspector/Technical Advisor. A. The City Manager shall designate an Oil and Gas Inspector/Technical Advisor who shall enforce the provisions of this Ordinance. The Oil and Gas Inspector shall have the authority to issue any orders or directives required to carry out the intent and purpose of this Ordinance and its particular provisions. Failure of any person to comply with any such order or directive shall constitute a violation of this Ordinance. The Oil and Gas Inspector role may be provided or supplemented by a qualified consultant. B. The Oil and Gas Inspector shall have the authority to enter and inspect any premises covered by the provisions of this Ordinance to determine compliance with the provisions of this Ordinance and all applicable laws, rules, regulations, standards or directives of the State. Failure of any person to permit access to the Oil and Gas Inspector shall constitute a violation of this Ordinance. The Oil and Gas Inspector shall conduct periodic inspections at least once a year of all permitted wells in the City to determine that the wells are operating in accordance within proper safety parameters as set out in this Ordinance and all regulations of the Commission. C. The Oil and Gas Inspector shall have the authority to request and receive any records, including any records sent to the Commission, logs, reports and the like, relating to the status or condition of any permitted well necessary to establish and determine compliance with the applicable Oil or Gas Well Permit. Failure of any person to provide any such requested material shall be deemed a violation of this Ordinance. Sec. 9-26-4. Operator's Agent. Every Operator of any well shall designate an agent, who is a resident of the State of Texas, upon whom all orders and notices provided in this Ordinance may be served in person or by registered or certified mail. Every Operator so designating such agent shall within ten (10) days notify the Oil and Gas Inspector in writing of any change in such agent or such mailing address unless operations within the City are discontinued. Sec. 9-26-5. Oil or Gas Well Permit Required. A. A person wanting to engage in and operate in oil or gas production activities shall apply for and obtain an Oil or Gas Well Permit. It shall be unlawful for any person acting either for himself or acting as agent, employee, independent contractor, or servant for any person to drill any well, assist in any way in the site preparation, re-working, fracturing or operation of any such well or to conduct any activity related to the production of oil or gas without first obtaining an Oil or Gas Well Permit issued by the City in accordance with this Ordinance. Such activities include, but are not limited to re-working, initial site preparation, drilling, operation, construction 6TM 12512.2.00.AS/CDB.REV of rigs or tank batteries, fracturing and pressurizing. A permit shall not be required for seismic surveys. B. The Operator must apply for and obtain an Oil or Gas Well Permit for the drilling, re- drilling, deepening, re-entering, activating or converting of each well. The Operator may apply for and obtain a “blanket” Oil or Gas Well Permit for more than one well if multiple wells are located on the same tract of land. C. An Oil or Gas Well Permit shall not constitute authority for the re-entering and drilling of an abandoned well. An Operator shall obtain a new Oil or Gas Well Permit in accordance with the provisions of this Ordinance if the Operator is re-entering and drilling an abandoned well. D. When an Oil or Gas Well Permit has been issued to the Operator for the drilling, re- drilling, deepening, re-entering, activating or converting of a well, such Oil or Gas Well Permit shall constitute sufficient authority for drilling, operation, production gathering or production maintenance, repair, re-working, testing, plugging and abandonment of the well and/or any other activity associated with mineral exploration at the site of such well, provided, however, that a new or supplemental permit shall be obtained before such well may be reworked for purposes of re-drilling, deepening or converting such well to a depth or use other than that set forth in the then current permit for such well. E. Any person who intends to re-work a permitted well using a drilling rig, to fracture stimulate a permitted well after initial completion or to conduct seismic surveys or other exploration activities shall give written notice to the Oil and Gas Inspector no less than ten (10) calendar days before the activities begin. The notice must identify where the activities will be conducted and must describe the activities in detail, including whether explosive charges will be used, the duration of the activities and the time the activities will be conducted. The notice must also provide the address and 24-hour phone number of the person conducting the activities. If requested by the Oil and Gas Inspector, the person conducting the activities will post a sign on the property giving the public notice of the activities, including the name, address and 24-hour phone number of the person conducting the activities. If the Oil and Gas Inspector determines that an inspection by the Oil and Gas Inspector is necessary, the Operator will pay the City for the inspection. The following requirements shall apply to all fracture stimulation operations performed on a well within 800 feet of any occupied building (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business: 1) at least 48 hours before operations are commenced, the operator shall post a sign at the entrance of the well site advising the public of the date the operations will commence; 2) “flowback” operations to recover fluids used during fracture stimulation shall be performed during daylight hours only unless the Oil and Gas Inspector approves such operations during non-daylight hours; 3) a watchman shall be required at all times during such operations; and 4) at no time shall the well be allowed to flow or vent directly to the atmosphere without first directing the flow through separation equipment or into a portable tank. 7TM 12512.2.00.AS/CDB.REV F.An Oil or Gas Well Permit shall automatically terminate, unless extended, if drilling is not commenced within one hundred eighty (180) days from the date of the issuance of the Oil or Gas Well Permit. Drilling must commence within one hundred eighty (180) days from the date of the issuance of the Oil or Gas Well Permit on at least one well under a “blanket permit,” in order to maintain the validity of the Oil or Gas Well Permit for the multiple wells. An Oil or Gas Well Permit may be extended by the Oil and Gas Inspector for an additional one hundred eighty (180) days upon request by the Operator and proof that the engineering site plan for the requested Oil or Gas Well permit for such location has not changed. G. The Oil or Gas Well Permits required by this Ordinance are in addition to and are not in lieu of any permit which may be required by any other provision of this Code or by any other governmental agency. H. No additional Oil or Gas Well Permit or filing fees shall be required for: (1) any wells, existing, previously permitted or approved by the City, within the corporate limits of the City on the effective date of this Ordinance which are currently operating; or (2) any wells which drilling has commenced on the effective date of this Ordinance. A person shall have forty-five (45) calendar days after the enactment of this Ordinance to designate an oil or gas operation as a pre-existing operation by filing a site plan drawn to scale that shows the location of the well with respect to survey lines and the associated production facilities, if any, with the Oil and Gas Inspector. I. An Oil or Gas Well Permit shall not be issued for any well to be drilled within any designated floodway or floodplain as defined and adopted by the City. J. No Oil or Gas Well Permit shall be issued for any well to be drilled on City owned property without the prior consent of the City Council. The City Council shall review the insurance and security requirements on an individual basis prior to issuing of any permit or permission to enter city property. K. By acceptance of any Oil or Gas Well Permit issued pursuant to this Ordinance, the Operator expressly stipulates and agrees to be bound by and comply with the provisions of this Ordinance. The terms of this Ordinance shall be deemed to be incorporated in any Oil or Gas Well Permit issued pursuant to this Ordinance with the same force and effect as if this Ordinance was set forth verbatim in such Oil or Gas Well Permit. Sec. 9-26-6. Oil or Gas Well Permit application and filing fees. A. Every application for an Oil or Gas Well Permit issued pursuant to this Ordinance shall be in writing signed by the Operator, or some person duly authorized to sign on his behalf, and filed with the city of Coppell. B. Every application, including new and amended permits, shall be accompanied by a permit fee as established by resolution of the City Council. This permit fee is in addition to other 8TM 12512.2.00.AS/CDB.REV fees that may be charged. Annual inspection fees as established by resolution of the City Council shall also be assessed. C. The application shall include the following information: (1) The date of the application and type or types of Oil or Gas Well Permit requested. (2) An accurate legal description of the lease property to be used for the oil or gas operation, the parcel and the production unit and name of the geologic formation as used by the Commission. Property recorded by plat should reference subdivision, block and lot numbers. (3) Map showing proposed transportation route and road for equipment, chemicals or waste products used or produced by the oil or gas operation. (4) Proposed well name. (5) Surface owner names(s) and address(es) of the lease property. (6) Mineral Lessee name and address. (7) Operator/Applicant name and address and if the Operator is a corporation, the state of incorporation, and if the Operator is a partnership, the names and addresses of the general partners, with a copy of the form of business documentation. (8) Name and address of individual designated to receive notice. (9) Name of representative with supervisory authority over all oil or gas operation site activities and a 24-hour phone number. (10) Location and description of all improvements and structures within eight hundred (800) feet of the well. (11) Owner and address of each parcel of property within eight hundred (800) feet of the proposed drill site. (12) A detailed site plan of the proposed operation site showing the location of all improvements and equipment, including the location of the proposed well(s) and other facilities, including, but not limited to, tanks, pipelines, compressors, separators and storage sheds and their distances from any public rights-of-way, and temporary and/or permanent screening devises, as necessary. (13) The name, address and 24-hour phone number of the person to be notified in case of an emergency. 9TM 12512.2.00.AS/CDB.REV (14) The exact and correct acreage and number of wells, if applicable, included in the Oil or Gas Well Permit application. (15) Copies of all reports required by the Commission. (16) A signed Road Maintenance Agreement supplied by the City that provides that the Operator shall repair, at his own expense, any damage to roads, streets, or highways caused by the use of heavy vehicles for any activity associated with the preparation, drilling, production, and operation of oil or gas wells. (17) A description of public utilities required during drilling and operation. (18) A description of the water source to be used during drilling or operation. (19) A copy of the approved Commission permit to drill together with attachments and survey plats which are applicable to the drill and operation sites. (20) A copy of the Stormwater Pollution Prevention Plan if required by the Environmental Protection Agency. A copy of the notice of intent shall be submitted to the city of Coppell three (3) days prior to the commencement of any onsite activity. (21) A copy of the determination by the Texas Commission on Environmental Quality (TCEQ) of the depth of useable quality ground water. (22) Evidence from DFW Airport that the drilling rig will not adversely effect the DFW Flight Pattern Overlay. (23) A Hazardous Materials Management Plan shall be on file with the Fire Marshal. Any updates or changes to this plan shall be provided to the Fire Marshal within 3 working days of the change. All chemicals and/or hazardous materials shall be stored in such a manner as to prevent, contain, and facilitate rapid remediation and clean-up of any accidental spill, leak, or discharge of a hazardous material. Operator shall have all material safety data sheets (MSDSs) for all hazardous materials on site. All applicable federal and state regulatory requirements for the proper labeling of containers shall be followed. Appropriate pollution prevention actions shall be required and include, but are not limited to, chemical and materials raised from the ground (e.g., wooden pallets), bulk storage, installation and maintenance of secondary containment systems, and protection from storm water and weather elements. (24) Evidence of insurance and security requirements under this Ordinance. 10 TM 12512.2.00.AS/CDB.REV (25) A statement, under oath, signed by the Operator, or designated representative, that the information submitted with the application is, to the best knowledge and belief of the Operator or designated representative, true and correct. (26) All required application and Oil or Gas Well Permit fees. (27) If any existing trees, 6 inch caliper or greater are to be removed and/or disturbed, then a Tree Mitigation Plan and Tree Removal Permit must be obtained in accordance with Section 12-34-2, as amended, of the Coppell Code of Ordinances. (28) An indemnification, release and discharge of the City of any liability as specified in Section 9-26-12, Insurance Bond, and Indemnity, Section 5 of this Ordinance. (29) A video documenting existing conditions of the City streets that will be used by truck traffic to the site, plus a video of the property being used for the Drill Site. (30) In addition to obtaining an Oil or Gas Well Permit and before establishing a Drill Site and access road, the Operator must obtain the necessary permits from the City Building Inspections Department and a grading permit from the City Engineering Department. The grading permit application shall include a storm water pollution prevention plan and a drainage plan unless the City Engineer determines that they are not necessary. Sec. 9-26-7. Oil or Gas Well Permit process. A.Permit Required. 1. An Oil or Gas Well Permit shall be required for all proposed wells. 2. Oil and Gas Wells shall be strictly prohibited within 300 feet of any of any occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business, and 200 feet from any railroad right-or-way. 3. Oil and Gas Wells and the drilling thereof shall only be permitted only in areas zoned LI –“Light Industrial,” PD-LI –“Planned Development – Light Industrial,” or A – “Agricultural.” 4. A public hearing for an oil or gas well permit shall be required if the proposed well is to be located within eight hundred (800) feet of any occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business. This provision applies to any building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public 11 TM 12512.2.00.AS/CDB.REV building, hospital, school, public park, or any business which a building permit has been issued on the date the application for a permit is filed with the gas inspector. Oil or gas wells located more than eight hundred (800) feet from such uses may be approved by the Oil and Gas Inspector/Technical Advisor without a public hearing. For the purpose of a such an oil or gas well permit the measurement of the eight hundred (800) foot distance shall be made from the well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building. B. Application Requirements. An application for an Oil or Gas Well Permit shall include all information, documents, permits and plans as required in Sec 9-26-6, Oil or Gas Well Permit Application and Filing Fees as herein defined. C. Permitting Procedure. 1. After a complete Permit application is submitted, the Oil and Gas Inspector shall evaluate the public impact of the proposed activity. The Oil and Gas Inspector shall consider the proposed site and the proposed operations or drilling program and shall identify restrictions or conditions, including minimum separation distance for drilling or other operations, special safety equipment and procedures, noise reduction levels, screening and any other requirements the Oil and Gas Inspector deems appropriate. If the proposed well or wells are located more than 800 feet from any occupied building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business for which a building permit has been issued on the date the application for a permit is filed with the Oil and Gas Inspector, the Inspector may, consistent with State law, accept, reject or modify the application in the interest of securing compliance with this Ordinance, the City Code of Ordinances and/or to protect the health, safety and welfare of the community. An applicant may appeal a decision of the Oil and Gas Inspector to the City Council. 2. Applications for a proposed well or wells that are located 800 feet or less from any occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business for which a building permit has been issued on the date the application for a permit is filed with the Oil and Gas Inspector, shall require a public hearing following a review by the Inspector. Within forty-five (45) calendar days of receipt of a complete application, the Oil and Gas Inspector shall place the matter on the City Council agenda for a public hearing and give notice by mail of the time, place and purpose thereof to the applicant and any other party who has requested in writing to be so notified. The forty- five (45)-day period shall not begin to run until the applicant/operator has provided the Oil and Gas Inspector with a complete application package. 12 TM 12512.2.00.AS/CDB.REV 3. At least fifteen (15) calendar days, and no more than thirty (30) calendar days prior to the date of the public hearing before the City Council for an Oil or Gas Well Permit under this Ordinance, Operator shall notify, at Operator’s expense, each surface owner of property, as shown by the current tax roll, within eight hundred (800) feet of the proposed well not owned by or under lease to the Operator of the hearing place, date and time. Such notice, as outlined below, shall be made by depositing the same, properly addressed and postage paid, in the United States mail. The Operator shall file an affidavit with the Oil and Gas Inspector showing the name and last known address, as identified by the current tax roll, of each owner of property to whom notice was mailed and the names of each owner of property to whom notice is required to be given, but whose address is unknown. Notice shall be sent to all neighborhood/property associations registered with the City within one-half mile of the proposed drill site. 4. At least fifteen (15) calendar days prior to the date of the public hearing before the City Council for an Oil or Gas Well Permit under this Ordinance, the Operator shall, at Operator’s expense, erect at least one sign, no less than three feet by three feet, upon the premises upon which an Oil or Gas Well Permit has been requested. Where possible, the sign or signs shall be located in a conspicuous place or places upon the property at a point or points nearest any right-of-way, street, roadway or public thoroughfare adjacent to such property. (a) The sign(s) shall substantially indicate that an Oil or Gas Well Permit to drill for oil or gas has been requested and state the date, time and place of the public hearing, and shall further set forth that additional information can be acquired by telephoning the applicant/Operator or the city of Coppell at the numbers indicated on the sign. (b) The continued maintenance of any such sign(s) shall be deemed a condition precedent to the holding of any public hearing or to any other official action concerning this Ordinance. (c) Any sign(s) shall be removed within 10 calendar days after final action by the City Council 5. At least fifteen (15) calendar days, and no more than twenty (20) days prior to the date of the public hearing before City Council for an Oil or Gas Well Permit under this Ordinance, Operator shall publish a copy of the notice as outlined below, at Operator’s expense, in the legal newspaper of the City for two (2) consecutive weeks. An affidavit by the printer or publisher of the newspaper indicating publication of the notice shall be filed with the application and will be prima facie evidence of such publication. The notice shall read as follows: ‘Notice is hereby given that, acting under and pursuant to the Ordinances of the city of Coppell, Texas, on the _______day of ___________, 20___, ____________ filed with the Oil and Gas Inspector of the city of Coppell, an application for an Oil or Gas 13 TM 12512.2.00.AS/CDB.REV Well Permit to drill, complete and operate a well for oil or gas upon property located at ________________, __________ County, Coppell, Texas, more particularly shown on the map of record in Volume ________, Page _____, Plat records of ______County, Texas or per Tax Tract Number _______, _________County, Texas. The City Council will conduct a public hearing on the request for said permit on the ________ day of __________, 20___ at _____o’clock __.m. in the City Council Chambers located at 255 Parkway Boulevard, Coppell, Texas.’ 6.All notice provisions contained herein shall be deemed sufficient upon substantial compliance with this section and are in addition to other notices which may otherwise be required. 7. After a Permit application is submitted, the Oil and Gas Inspector shall evaluate the public impact of the proposed activity. The Oil and Gas Inspector shall consider the proposed site and the proposed operations or drilling program and shall draft recommended restrictions or conditions, including minimum separation distance for drilling or other operations, special safety equipment and procedures, recommended noise reduction levels, screening and any other requirements the Oil and Gas Inspector deems appropriate. The recommendations shall be submitted to the City Council for consideration prior to the public hearing. 8. Prior to the public hearing and before the City Council considers the merits of the application and the recommendations of the Oil and Gas Inspector, the applicant/operator shall provide evidence of a certificate of publication establishing timely publication of the notice of the hearing, that timely actual notice of the hearing was given to all persons as required by this Ordinance and that the Applicant/Operator has otherwise complied with or satisfied all other requirements of this Ordinance, including full and complete compliance with the insurance and security requirements. 9. The burden of proof on all matters considered in the hearing shall be upon the Applicant/Operator. 10. The City Council shall review the application and any other related information and shall consider the following in deciding whether to grant a Oil or Gas Well Permit: (a) Whether the operations proposed are reasonable under the circumstances and conditions prevailing in the area considering the particular location and the character of the improvements located there; 14 TM 12512.2.00.AS/CDB.REV (b) Whether the drilling of such wells would conflict with the orderly growth and development of the City; (c) Whether there are other alternative well site locations; (d) Whether the operations proposed are consistent with the health, safety and welfare of the public when and if conducted in accordance with the Oil or Gas Well Permit conditions to be imposed; (e) Whether there is sufficient access for the City fire personnel and fire fighting equipment; (f) The recommendations of the Oil and Gas Inspector; and (g) Whether the impact upon the adjacent property and the general public by operations conducted in compliance with the Oil or Gas Well Permit conditions are reasonable and justified, balancing the following factors: i.The right of the owners(s) of the mineral estate to explore, develop, and produce the minerals; and ii.The availability of alternative drill sites. 11. The City Council may require an increase in the distance the well is setback from public rights-of-way or any occupied building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business, or require any change in operation, plan, design, layout or any change in the on-site and technical regulations of this Ordinance, including fencing, screening, landscaping, lighting, delivery times, noise levels, tank height, or any other matters reasonably required by public interest. 12. The City Council may, consistent with State law, accept, reject or modify the application in the interest of securing compliance with this Ordinance, the City Code of Ordinances and/or to protect the health, safety and welfare of the community. D. Wells Setbacks for Oil or Gas Well Permit. 1. Except as otherwise provided in this ordinance, it shall be unlawful to drill any well, the center of which, at the surface of the ground, is located within three hundred (300) any occupied building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business. This provision applies to any occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business which a building permit has been issued on 15 TM 12512.2.00.AS/CDB.REV the date the application for a permit is filed with the Oil and Gas Inspector. For the purpose of an Oil or Gas Well Permit the measurement of the 300 foot distance shall be made from the well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building. 2. This setback distance may be reduced by the City Council to less than three hundred (300) feet from any occupied building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business only when there is the unanimous consent of the property owners within a three hundred (300) foot radius around said well and the affirmative vote of not less than three-fourths of all the members of the City Council. For protection of the public health, safety and welfare, the City Council may impose additional requirements for a reduction of such distance. 3. Tank batteries, facilities and equipment (other than the well itself), shall be located at least three hundred (300) feet from any occupied building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business for which a building permit has been issued on the date of the application for a drilling permit is filed. The distance shall be calculated from the closest tank batteries, facilities and/or equipment, in a straight line, without regard to intervening structures or objects, to the closest exterior point of the building. E. Screening for Oil or Gas Well Facilities 1. A screening wall, a minimum of eight (8) feet, but not to exceed ten (10) feet, shall enclose all completed wells, tanks and compressors and shall be constructed of the following materials: (a) Brick and/or stone; (b) Pre-cast concrete wall or pour-in-place concrete wall with a similar appearance as brick, stone or split-face concrete masonry unit; (c) Earthen berm, appropriately landscaped; (d) Black or green vinyl coated chain link fence with evergreen trees planted in such a manner to provide a visual screen within 2 years; or (e) A combination of landscaped earthen berm, evergreen trees and one or more of the construction materials. Gate Specifications 2.. All masonry walls shall be equipped with at least one (1) gate. The gate shall meet the following specifications: 16 TM 12512.2.00.AS/CDB.REV (a) Each gate shall be not less than twelve (12) feet wide and be composed of two (2) gates, each of which is not less than six (6) feet wide, or one (1) sliding gate not less than twelve (12) feet wide. If two (2) gates are used, gates shall latch and lock in the center of the span; (b) The gates shall be of metal frame and wooden veneer construction that meets the applicable specifications, or of other approved material; (c) The gates shall be provided with a combination catch and locking attachment device for a combination padlock, and shall be kept locked except when being used for access to the site; and (d) Operator must provide the Oil and Gas Inspector with the padlock combination. (e) Operator must provide the City Fire Marshal with a “Knox Padlock” or “Knox Box with a key” to access the well site to be used only in case of an emergency. F.Landscaping. Landscaping and irrigation shall be required along all street frontages of the well site with suitable screening shrubs that complement the architectural character of the surrounding developments. 1. A landscape buffer shall be a minimum of 15 feet in depth. 2. Plants and materials used in living barriers shall be at least 30 inches in height at the time of planting and shall be of a type and species that will attain a minimum height of three feet one year after planting. 3. Perimeter landscape areas shall contain at least one evergreen tree (such as Austrian Pines and Eastern Red Cedar) for each 40 linear feet or fraction thereof of perimeter landscape area. G. Vehicle Routes for Oil or Gas Well Permit. Vehicles associated with drilling and/or production in excess of three tons shall be restricted to such streets designated as either truck routes or commercial delivery routes by the City Code wherever capable of being used. The vehicles shall be operated on a truck route wherever capable of being used; they shall be operated on a commercial delivery route only when it is not possible to use a truck route to fulfill the purpose for which such vehicle is then being operated. Commercial delivery route means any street or highway so designated by the City Council for the use by any commercial motor vehicle, truck-tractor, trailer, semi-trailer, or any combination thereof. Refer also to the Road Repair Agreement required to be executed with the Oil and Gas Permit. H. Work Hours for Oil or Gas Well Permit. Site development, other than drilling, shall be conducted only between sunrise and sunset. Truck deliveries of equipment and materials 17 TM 12512.2.00.AS/CDB.REV associated with drilling and/or production, well servicing, site preparation and other related work conducted on the well site shall be limited to between sunrise and sunset.., except in cases of fires, blowouts, explosions and any other emergencies or where the delivery of equipment is necessary to prevent the cessation of drilling or production. I. Noise Restrictions for Oil or Gas Well Permit. 1. No drilling, producing or other operations (excluding formation fracturing) shall produce a sound level greater than 78 dB(a) when measured at a distance of three hundred (300) feet from the production equipment in question. The noise level shall be the average of sound level meter readings taken consecutively at any given time from four (4) or more diametrically opposite positions, four (4) feet above ground level, when measured at a distance of three hundred (300) feet from the production equipment. A maximum sound level of 85 dB(a) shall apply to formation fracturing when measured at a distance of three hundred (300) feet from the production equipment in question. 2. No person shall operate or permit to be operated in connection with the operation of a producing well any engine, compressor or motor-driven machinery of any type which creates a sound level greater than 65dB(a) when measured at a distance of three hundred (300) feet from the well site. The noise level shall be the average of sound level meter readings taken consecutively at any given time from four (4) or more diametrically opposite positions measured at a distance of three hundred (300) feet from the well site. 3. Sound level measurements shall be made with a sound level meter conforming, as a minimum, to the requirements of the American National Standards Institute. 4. If sound levels exceed the dB(a) levels cited in subsection (1) and (2) of this section, the Oil and Gas Inspector may require sound reducing mufflers. J.Tank Specifications for an Oil or Gas Well Permit. All tanks and permanent structures shall conform to the American Petroleum Institute (A.P.I.) specifications unless other specifications are approved by the City. The top of the tanks shall be no higher than eight (8) feet above the terrain surrounding the tanks. All tanks shall be set back pursuant to the standards of the Commission and the National Fire Protection Association, but in all cases, shall be at least twenty-five (25) feet from any public right-of-way or property line. K.Conveyance of fuel, water, oil, gas or petroleum. No Operator shall excavate or construct any lines for the conveyance of fuel, water, oil, gas or petroleum liquids on, under, or through the streets, alleys or other properties owned by the City without an easement or right-of- way license from the City, at a price to be agreed upon, and then only in strict compliance with this section, other City ordinances, and the specifications established by the Department of Public Works . L All other provisions outlined in this Ordinance shall be required. 18 TM 12512.2.00.AS/CDB.REV Sec. 9-26-8. Issuance of Oil or Gas Well permits. A. It is the responsibility of the Oil and Gas Inspector to review and approve or disapprove based on the criteria established by this Ordinance all applications for Oil or Gas well drilling permits for wells located more than eight hundred (800) feet from a occupied building, (not used in operations on the drilling site) including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business for which a building permit has been issued on the date the application for a permit is filed with the Oil and Gas Inspector. The issuance of an Oil or Gas Well Permit for wells located eight hundred (800) feet or less from such occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business is subject to approval by the City Council. The Oil and Gas Inspector, within thirty (30) calendar days of the receipt of a complete application, or after the approval by the City Council and remittance of all fees, insurance and security per the requirements of this Ordinance for an Oil or Gas Well Permit, shall issue an Oil or Gas Well Permit for which the drilling of the well or the installation of the facilities have been applied. B. The provisions of this Ordinance shall apply to any dwellings or buildings for which an application for a building permit has been submitted on the date the application for an Oil or Gas Well Permit is filed with the Oil and Gas Inspector. C. If the Oil and Gas Inspector denies an Oil or Gas Well Permit application, he shall notify the Operator in writing of such denial stating the reasons for the denial. Within thirty (30) calendar days of the date of the written decision of the Oil and Gas Inspector to deny the Oil or Gas Well Permit, the Operator may: 1) cure those conditions that caused the denial and resubmit the application to the Oil and Gas Inspector for approval and issuance of the Oil or Gas Well Permit; or 2) file an appeal to the City Council under the provisions outlined in this Ordinance pursuant to Sec. 9-26-18, as amended. Sec . 9-26-9. Amended Oil or Gas Well permits. A. An Operator may submit an application to the Oil and Gas Inspector to amend an existing Oil or Gas Well Permit to commence drilling from a new drill site that is shown on (or incorporated by reference as part of) the existing Oil or Gas Well Permit, to relocate a drill site or operation site that is shown on (or incorporated by reference as part of) the existing Oil or Gas Well Permit, or to otherwise amend the existing Oil or Gas Well Permit. B. Applications for amended Oil or Gas Well Permits shall be in writing, shall be signed by the Operator, and shall include the following: (1) The application fee as set by city ordinance; (2) A description of the proposed amendments; (3) Any changes to the information submitted with the application for the existing Oil or Gas Well Permit (if such information has not previously been provided to the City); 19 TM 12512.2.00.AS/CDB.REV (4) Such additional information as is reasonably required by the Oil and Gas Inspector to demonstrate compliance with the applicable Oil or Gas Well Permit; and (5) Such additional information as is reasonably required by the Oil and Gas Inspector to prevent imminent destruction of property or injury to persons. C. All applications for amended Oil or Gas Well Permits shall be filed with the Oil and Gas Inspector for review. Incomplete applications may be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies; however, the City shall retain the application fee. The City may return any application as incomplete if there is a dispute pending before the Texas Railroad Commission regarding the determination of the Operator. D. If the activities proposed by the amendment are generally consistent with activities covered by the existing Oil or Gas Well Permit, and if the proposed activities are in conformance with the applicable Oil or Gas Well Permit, then the Oil and Gas Inspector shall approve the amendment within ten (10) calendar days after the application is filed. E. If the activities proposed by the amendment are materially different from the activities covered by the existing Oil or Gas Well Permit, the Operator shall submit a new application. The process will then proceed through the same review and hearing requirements outlined above for a new well. F. The decision of the Oil and Gas Inspector to deny an amendment to an Oil or Gas Well Permit shall be provided to the Operator in writing within ten (10) days after the decision, including an explanation of the basis for the decision. The Operator may: 1) cure those conditions that caused the denial and resubmit the application to the Oil and Gas Inspector for approval and issuance of the Oil or Gas Well Permit; or 2) file an appeal to the City Council under the provisions outlined in this Ordinance pursuant to Sec. 9-26-18,as amended. Sec. 9-26-10. Suspension or revocation of Oil or Gas Well permit; Effect. A. If an Operator (or its officers, employees, agents, contractors, or representatives) fails to comply with any requirement of an Oil or Gas Well Permit (including any requirement incorporated by reference as part of the Oil or Gas Well Permit), the Oil and Gas Inspector shall give written notice to the Operator specifying the nature of the failure and giving the Operator a reasonable time to cure, taking into consideration the nature and extent of the failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. In no event, however, shall the cure period be less than thirty (30) calendar days unless the failure presents a risk of imminent destruction of property or injury to persons or unless the failure involves the Operator’s failure to provide periodic reports as required by this Ordinance, in which case the suspension revocation may be immediate. B. If, the Operator fails to correct the noncompliance within thirty (30) calendar days, or the time given, from the date of the notice, the Oil and Gas Inspector may suspend or revoke the Oil or Gas Well Permit pursuant to the provisions of this Ordinance. 20 TM 12512.2.00.AS/CDB.REV C. No person shall carry on any operations performed under the terms of the Oil or Gas Well Permit issued under this Ordinance during any period of any Oil or Gas Well Permit suspension or revocation or pending a review of the decision or order of the City in suspending or revoking the Oil or Gas Well Permit. Nothing contained herein shall be construed to prevent the necessary, diligent and bona fide efforts to cure and remedy the default or violation for which the suspension or revocation of the Oil or Gas Well Permit was ordered for the safety of persons or as required by the Commission. D. If the Operator does not cure the noncompliance within the time specified in this Ordinance, the Oil and Gas Inspector, upon written notice to the Operator, may notify the Commission and request that the Commission take any appropriate action. E. Operator may, within thirty (30) calendar days of the date of the decision of the Oil and Gas Inspector in writing to suspend or revoke an Oil or Gas Well Permit, file an appeal to the City Council under the provisions outlined in this Ordinance pursuant to Section 9-26-18, as amended. F. If an application for an Oil or Gas Well Permit is denied by the Oil and Gas Inspector, nothing herein contained shall prevent a new permit application from being submitted to the Oil and Gas Inspector for the same well. Sec. 9-26-11. Periodic reports. A. The Operator shall notify the Oil and Gas Inspector of any changes to the following information within one business week after the change occurs: (1) The name, address, and phone number of the Operator; (2) The name, address, and phone number of the person designated to receive notices from the City (which person must a resident of Texas that can be served in person or by registered or certified mail); and (3) The Operator’s Emergency Action Response Plan (including “drive-to-maps” from public rights-of-way to each drill site). B. The Operator shall notify the Oil and Gas Inspector of any change to the name, address, and 24-hour phone number of the person(s) with supervisory authority over drilling or operations activities within one business day. C. The Operator shall provide a copy of any “incident reports” or written complaints submitted to the Texas Railroad Commission within thirty (30) days after the Operator has notice of the existence of such reports or complaints. D. Beginning on December 31st of each year after each well is completed, and continuing on each December 31st thereafter until the Operator notifies the Oil and Gas Inspector that the well has been abandoned and the site restored, the Operator shall submit a written report to the Oil and Gas Inspector identifying any changes to the information that was 21 TM 12512.2.00.AS/CDB.REV included in the application for the applicable Oil or Gas Well Permit that have not been previously reported to the City. Sec. 9-26-12. Bond, letters of credit, indemnity, insurance. A. General Requirements. The Operator shall be required to: (1) Comply with the terms and conditions of this Ordinance and the Oil or Gas Well Permit issued hereunder. (2) Promptly clear drill and operation sites of all litter, trash, waste and other substances used, allowed, or occurring in the operations, and after abandonment or completion grade, level and restore such property to the same surface conditions as nearly as possible as existed before operations. (3) Indemnify and hold harmless the City, its officers, agents, and employees from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attorney’s fees, for injury to or death of any person or for damage to any property arising out of or in connection with the work done by Operator under an Oil or Gas Well Permit: (a) where such injuries, death or damages are caused by Operator’s sole negligence or the joint negligence of Operator and any other person or entity; and (b) regardless of whether such injuries, death or damages are caused in whole or in part by the negligence of Operator. (4) Promptly pay all fines, penalties and other assessments imposed due to breach of any terms of the Oil or Gas Well Permit. (5) Promptly restore to its former condition any public property damaged by the Oil or Gas operation. Sec.9-26-13. Bond, indemnity, and insurance. . A. BondPrior to the issuance of an Oil or Gas Well Permit the Operator shall provide the Oil and Gas Inspector with a security instrument in the form of a bond as follows: 1. A bond shall be executed by a reliable bonding or insurance institution authorized to do business in Texas, acceptable to the City or may provide an irrevocable letter of credit in the appropriate amount payable to the City of Coppell. The bond or letter shall become effective on or before the date the Oil or Gas Well Permit is issued and shall remain in force and effect for at least a period of one hundred and eighty (180) calendar days after the expiration of the Oil or Gas Well Permit term or until the well 22 TM 12512.2.00.AS/CDB.REV is plugged and abandoned and the site is restored, whichever occurs first. The Operator shall be listed as principal and the instrument shall run to the City, as obligee, and shall be conditioned that the Operator will comply with the terms and regulations of this Ordinance and the City. The original bond or letter shall be submitted to the Oil and Gas Inspector with a copy of the same provided to the City Secretary. 2. The principal amount of any security instrument shall be fifty thousand dollars ($50,000) for any single well. If, after completion of a well, the Applicant/Operator, who initially posted a fifty thousand dollars ($50,000) bond, has complied with all of the provisions of this Ordinance and whose well is in the producing stage and all drilling operations have ceased, may submit a request to the Oil and Gas Inspector to reduce the existing bond to ten thousand dollars ($10,000) 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 fifty thousand dollars ($50,000). An operator drilling or reworking between one and five wells at any given time may elect to provide a blanket bond in the principal minimum amount of one hundred fifty thousand dollars ($150,000). If the operator drills or reworks more than five wells at a time, the blanket bond shall be increased in increments of fifty thousand dollars ($50,000) per each additional well. Once the wells are in the producing stage and all drilling operations have ceased, the Operator may elect to provide a blanket bond for the remainder of the time the well produces, without reworking, as follows: Number of Producing Wells Blanket Bond Amount Required Up to 75 wells $100,000 75 to 150 wells $150,000 More than 150 wells $200,000 If at any time after no less than a fifteen (15)-day written notice to the Operator and a public hearing, the City Council shall deem any Operator's bond or letter of credit to be insufficient, it may require the Operator to increase the amount of the bond or letter of credit up to a maximum of two hundred and fifty thousand dollars ($250,000) per well. 3. Whenever the Oil and Gas Inspector finds that a default has occurred in the performance of any requirement or condition imposed by this Ordinance, a written notice shall be given to the Operator. Such notice shall specify the work to be done and the period of time deemed by the Oil and Gas Inspector to be reasonably necessary for the completion of such work. After receipt of such notice, the Operator shall provide the estimated cost and, within the time therein specified, either cause or require the work to be performed, or failing to do so, shall pay over to the City, one hundred twenty-five (125) percent of the estimated cost of doing the work. In no event, however, shall the cure period be less than thirty (30) days unless the failure presents a risk of imminent destruction of property or injury to persons or unless the failure involves the Operator’s failure to provide periodic reports as required by this 23 TM 12512.2.00.AS/CDB.REV Ordinance. The maximum cure period shall not exceed forty-five (45) days. The City shall be authorized to draw against any bond to recover such amount due from the Operator. Upon receipt of such monies, the City shall proceed by such mode as deemed convenient to cause the required work to be performed and completed, but no liability shall be incurred 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 properly plug and abandon the well and restore the drill site in conformity with the regulations of this Ordinance. 4. 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, or the issuer of the security instrument refuses to honor any draft by the City against the bond, 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. 5. When the well or wells covered by said bond have been properly abandoned in conformity with all regulations of this Ordinance, and in conformity with all regulations of the Commission and notice to that effect has been received by the City, or upon receipt of a satisfactory substitute, the bond issued in compliance with these regulations shall be terminated and cancelled. B. Insurance. In addition to the bond required pursuant to this Ordinance, the Operator shall carry a policy or policies of insurance issued by an insurance company or companies authorized to do business in Texas. In the event such insurance policy or policies are cancelled, the Oil or Gas Well Permit shall be suspended on such date of cancellation and the Operator’s right to operate under such Oil or Gas Well Permit shall immediately cease until the Operator files additional insurance as provided herein. (1) General Requirements applicable to all policies. (a) The City, its officials, employees, agents and officers shall be endorsed as an “Additional Insured” to all policies except Employers Liability coverage under the Operator’s Workers Compensation policy. (b)All policies shall be written on an occurrence basis except for Environmental Pollution Liability (Seepage and Pollution coverage) and Excess or Umbrella Liability, which may be on a claims-made basis. (c)All policies shall be written by an insurer with an A-: VIII or better rating by the most current version of the A. M. Best Key Rating Guide or with such other financially sound insurance carriers acceptable to the City. (d)Deductibles shall be listed on the Certificate of Insurance and shall be on a “per occurrence” basis unless otherwise stipulated herein. 24 TM 12512.2.00.AS/CDB.REV (e)Certificates of Insurance shall be delivered to the city of Coppell, 255 Parkway Boulevard, Coppell, Texas 75019, evidencing all the required coverages, including endorsements, prior to the issuance of an Oil or Gas Well Permit. (f)All policies shall be endorsed with a waiver of subrogation providing rights of recovery in favor of the City. (g)Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement specified herein. (h)Each policy shall be endorsed to provide the City a minimum thirty (30)-day notice of cancellation, non-renewal, and/or material change in policy terms or coverage. A ten (10)-day notice shall be acceptable in the event of non- payment of premium. (i)During the term of the Oil or Gas Well Permit, the Operator shall report, in a timely manner, to the Oil and Gas Inspector any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss. (j)Upon request, certified copies of all insurance policies shall be furnished to the City. (2)Standard Commercial General Liability Policy. This coverage must include premises, operations, blowout or explosion, products, completed operations, sudden and accidental pollution, blanket contractual liability, underground resources damage, broad form property damage, independent contractors protective liability and personal injury. This coverage shall be a minimum Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. (3) Excess or Umbrella Liability. $5,000,000 Excess, if the Operator has a stand-alone Environmental Pollution Liability (EPL) policy. $10,000,000 Excess, if the Operator does not have a stand-alone EPL policy. Coverage must include an endorsement for sudden or accidental pollution. If Seepage and Pollution coverage is written on a “claims made” basis, the Operator must maintain continuous coverage and purchase Extended Coverage Period Insurance when necessary. 25 TM 12512.2.00.AS/CDB.REV (4) Environmental Pollution Liability Coverage. (a) Operator shall purchase and maintain in force for the duration of the Oil or Gas Well Permit, insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; clean-up costs; and defense, including costs and expenses incurred in the investigation, defense or settlement of claims; all in connection with any loss arising from the insured site. Coverage shall be maintained in an amount of at least $1,000,000 per loss, with an annual aggregate of at least $10,000,000. (b) Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. (c) The Operator shall maintain continuous coverage and shall purchase Extended Coverage Period insurance when necessary. The Extended Coverage Period insurance must provide that any retroactive date applicable to coverage under the policy precedes the effective date of the issuance of the permit by the City. (5) Control of Well. The policy should cover the cost of controlling a well that is out of control, re-drilling or restoration expenses, seepage and pollution damage as first party recovery for the Operator and related expenses, including, but not limited to, loss of equipment, experts and evacuation of residents. $ 5,000,000 per occurrence/no aggregate, if available, otherwise an aggregate of ten (10) million dollars. $ 500,000 Sub-limit endorsement may be added for damage to property for which the Operator has care, custody and control. (6) Workers Compensation and Employers Liability Insurance. (a)Workers Compensation benefits shall be Texas Statutory Limits. (b)Employer’s Liability shall be a minimum of $500,000 per accident. (c)Such coverage shall include a waiver of subrogation in favor of the City and provide coverage in accordance with applicable State and Federal laws. (7) Automobile Liability Insurance. (a)Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. (b)Coverage must include all owned, hired and not-owned automobiles. 26 TM 12512.2.00.AS/CDB.REV (8) Certificates of Insurance. (a)The company must be admitted or approved to do business in the State of Texas, unless the coverage is written by a Surplus Lines insurer. (b)The insurance set forth by the insurance company must be underwritten on forms that have been approved by the Texas State Board of Insurance or ISO, or an equivalent policy form acceptable to the City, with the exception of Environmental Pollution Liability and Control of Well coverage. (c)Sets forth all endorsements and insurance coverage according to requirements and instructions contained herein. (d)Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the City. All policies shall be endorsed to read “THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT THIRTY (30) DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE CITY EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE TEN (10) DAYS ADVANCE WRITTEN NOTICE IS REQUIRED”. (e)Original endorsements affecting coverage required by this section shall be furnished with the certificates of insurance. C. Indemnification and Express Negligence Provisions. Each Oil or Gas Well Permit issued by the Oil and Gas Inspector shall include the following language: Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the city of Coppell, and/or its departments, agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil or Gas Well Permit. The Operator shall fully defend, protect, indemnify, and hold harmless the city of Coppell, Texas, its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the city of Coppell, Texas, its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil or Gas Well Permit. The Operator agrees to indemnify and hold harmless the city of Coppell, Texas, its departments, its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the city of Coppell 27 TM 12512.2.00.AS/CDB.REV occurring on the drill site or operation site in the course and scope of inspecting and permitting the Oil or Gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF THE CITY OF COPPELL OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL OR GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF COPPELL, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF COPPELL, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. D. Notice.The individual designated to receive notice shall be a resident of Texas upon whom all orders and notices provided in this Ordinance may be served in person or by registered or certified mail. Every Operator shall within ten (10) calendar days notify the Oil and Gas Inspector in writing of any change in such agent or mailing address unless operations in the City are discontinued and abandonment is complete. E. Acceptance and Indemnity Agreement. The Operator who has a net worth of not less than twenty-five million dollars ($25,000,000), as shown in such Owner’s or Operator’s most recent audited financial statements, may substitute an acceptance and indemnity agreement in lieu of the bond and insurance requirements set forth in this Ordinance, provided that such acceptance and indemnity agreement shall be in a form acceptable to, and approved by, the City Attorney. The Oil and Gas Inspector may request an annual review of the Operator’s most recent audited financial statements to assure compliance with this section. Sec.9-26-14. Technical regulations. A. On-Site Requirements. 1. Abandoned Wells. All wells shall be abandoned in accordance with the rules of the Texas Railroad Commission; however, all well casings shall be cut and removed to a depth of at least ten feet (10’) below the surface unless the surface owner submits a written agreement otherwise, then three feet (3’) shall be the minimum depth allowed. No structures shall be built over an abandoned well. 2. Blowout Prevention. In all cases, blowout prevention equipment shall be used on all wells being drilled, worked-over or in which tubing is being changed. Protection shall be provided to prevent blowout during oil or gas operations as required by and in conformance with the requirements of the Commission and the recommendations of the American Petroleum Institute. The Operator must equip all drilling wells with adequate blowout preventors, flow lines and valves commensurate with the working pressures involved as required by the Commission. 28 TM 12512.2.00.AS/CDB.REV 3. Compliance. Operator shall comply at all times with all applicable federal, state and City requirements. 4. Discharge. No person shall place, deposit, discharge, or cause or permit to be placed, deposited or discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substances or any refuse including wastewater or brine from any oil or gas operation or the contents of any container used in connection with any oil or gas operation in, into, or upon any public right-of-way, alleys, streets, lots, storm drain, ditch or sewer, sanitary drain or any body of water or any private property in the City. 5. Drill Stem Testing. All open hole formation or drill stem testing shall be done during daylight hours. Drill stem tests may be conducted only if the well effluent during the test is produced through an adequate gas separator to storage tanks and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe. 6. Dust, Vibration, Odors. All drilling and production operations shall be conducted in such a manner as to minimize, so far as practicable, dust, vibration, or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for the production of oil, gas and other hydrocarbon substances in urban areas. All equipment used shall be so constructed and operated so that vibrations, dust, odor or other harmful or annoying substances or effect will be minimized by the operations carried on at any drilling or production site or from anything incident thereto, to the injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in industry standards of drilling and production in this area shall be adopted as they become available if capable of reducing factors of dust, vibration and odor. 7. Electric Lines. All electric lines to production facilities shall be located in a manner compatible to those already installed in the surrounding area; however, all lines crossing and public right-of-way shall be placed underground. 8. Electric Motors. Only electric prime movers or motors shall be permitted for the purpose of pumping wells. No electric power shall be generated on location except for thermal electric generators. All electrical installations and equipment shall conform to the City ordinances and the appropriate national codes. 9. Emergency Response Plan. Prior to the commencement of any oil, gas or other hydrocarbons production activities, Operator shall submit to the Oil and Gas Inspector an emergency response plan establishing written procedures to minimize any hazard resulting from drilling, completion or producing of oil or gas wells. Said plan shall use existing guidelines established by the Commission, Texas Commission on Environmental Quality, Department of Transportation and/or the Environmental Protection Agency. 29 TM 12512.2.00.AS/CDB.REV 10. Equipment Painted. All production equipment on the site shall be painted and maintained at all times, including pumping units, storage tanks, buildings and structures. 11. Fire Prevention; Sources of Ignition. Fire fighting apparatus and supplies as approved by the Fire Department and required by any applicable federal, state, or local law shall be provided by the Operator, at the Operator’s cost, and shall be maintained on the drilling site at all times during drilling and production operations. The Operator shall be responsible for the maintenance and upkeep of such equipment. Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All well heads shall contain an emergency shut-off valve to the well distribution line. 12. Fresh Water Wells. It shall be unlawful to drill any oil or gas well, the center of which, at the surface of the ground, is located within two hundred (200) feet to any fresh water well, except for fresh water wells used solely for operation of the oil or gas well operation. The measurement shall be in a direct line from the closest well bore to the fresh water well bore. The operator of an oil or gas Well shall provide the Oil and Gas Inspector with a “pre-drilling” and “post-drilling” water analysis from any fresh water well within eight hundred (800) feet of the oil or gas well. Within one hundred eighty (180) days of its completion date, each oil or gas well shall be equipped with a cathodic protection system to protect the production casing from external corrosion. The Oil and Gas Inspector may approve an alternative method of protecting the production casing from external corrosion. 13. Oil or Gas Emission or Burning Restricted. No person shall allow, cause or permit gases to be vented into the atmosphere or to be burned by open flame except as provided by law or as permitted by the Commission. If the venting of gases into the atmosphere or the burning of gases by open flame is authorized as provided by law or as permitted by the Commission, then such vent or open flame shall not be located closer than three hundred (300) feet from any building not used in operations on the drilling site and such vent or open flame shall be screened in such a way as to minimize detrimental effects to adjacent property owners. 14. Grass, Weeds, Trash. All drill and operation sites shall be kept clear of high grass, weeds and combustible trash. 15. Hazardous Plan.Hazardous Materials Management Plan shall be on file with the Fire Marshal and the Oil and Gas Inspector. 16. Lights. No person shall permit any lights located on any drill or operation site to be directed in such a manner so that they shine directly on public roads, adjacent property or property in the general vicinity of the operation site. To the extent practicable, and taking into account safety considerations, site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within three hundred ( 300) feet, and shall be in compliance 30 TM 12512.2.00.AS/CDB.REV with Chapter 12, Article 36, Glare and Lighting Standards of the Coppell Code of Ordinances. 17. Muffling Exhaust. 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 shall not be discharged into the open air 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. All formation fracturing operations shall be conducted during daylight hours unless the Operator has notified the Oil and Gas Inspector that fracing will occur before or after daylight hours to meet safety requirements. 18. Pits. Lined earthen mud or circulating pits shall be used. Such pits and contents shall be removed from the premises and the drilling site within sixty (60) days after completion of the well. Reserve pits are prohibited and everything shall be placed in steel tanks surrounded by a berm. Only freshwater-based mud systems shall be permitted. Saltwater-based mud systems and oil-based mud systems are prohibited. 19. Private Roads and Drill Sites. Prior to the commencement of any drilling operations, all private roads used for access to the drill site and the operation site itself shall be at least ten (10) feet wide, have an overhead clearance of fourteen (14) feet and shall be surfaced with crushed rock, gravel or ore and maintained to prevent dust and mud. In particular cases these requirements governing surfacing of private roads may be altered at the discretion of the Oil and Gas Inspector after consideration of all circumstances including, but not limited to, the following: distances from public streets and highways; distances from adjoining and nearby property owners whose surface rights are not leased by the operation; the purpose for which the property of such owners is or may be used; topographical features; nature of the soil; and exposure to wind. 20. Salt Water Wells. No salt water disposal wells shall be located within the city of Coppell. 21. Signs. (a) A sign shall be immediately and prominently displayed adjacent to the public right-of-way at the gate on the temporary and permanent site fencing erected pursuant to this Ordinance. Such sign shall be durable material, maintained in good condition and, unless otherwise required by the Commission, shall have a surface area of not less than two (2) square feet nor more than four (4) square feet and shall be lettered with the following: (1) Well name and number; (2) Name of Operator; 31 TM 12512.2.00.AS/CDB.REV (3) The emergency 911 number; and (4) Telephone numbers of two (2) persons responsible for the well who may be contacted in case of emergency. (b) Permanent weatherproof signs reading “DANGER NO SMOKING OR OPEN FLAMES ALLOWED” shall be posted immediately upon completion of the well site fencing at the entrance of each well site and tank battery or in any other location approved or designated by the Fire Marshal of the City. Sign lettering shall be four (4) inches in height and shall be red on a white background or white on a red background. Each sign shall include the emergency notification numbers of the Fire Department and the Operator, well and lease designations required by the Commission. 22.Storage of Equipment. On-site storage is prohibited on the operation site. No equipment shall be stored on the drilling or production operation site, unless it is necessary to the everyday operation of the well. Lumber, pipes, tubing and casing shall not be left on the operation site except when drilling or well servicing operations are being conducted on the site. No vehicle or item of machinery shall be parked or stored on any street, right-of- way or in any driveway, alley or upon any 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 drilling or production operations on the site. The Fire Department shall be the entity that determines whether an equipment on the site shall constitute a fire hazard. No refinery, processing, treating, dehydrating or absorption plant of any kind shall be constructed, established or maintained on the premises. This shall not be deemed to exclude a conventional gas separator or dehydrator. 23.Storage Tanks. All tanks and permanent structures shall conform to the American Petroleum Institute (A.P.I.) specifications unless other specifications are approved by the City. All storage tanks shall be equipped with a secondary containment system including lining with an impervious material. The secondary containment system shall be a minimum of three feet (3’) in height and one and one-half (1½) times the contents of the largest tank in accordance with the Fire Code, and buried at least one foot (1’) below the surface. Drip pots shall be provided at the pump out connection to contain the liquids from the storage tank. All tanks shall be set back pursuant to the standards of the Commission and the National Fire Protection Association, but in all cases, shall be at least twenty-five (25) feet from any public right-of-way or property line. Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank. 32 TM 12512.2.00.AS/CDB.REV No meters, storage tanks, separation facilities, or other aboveground facilities, other than the well head and flow lines, shall be placed in a floodway. Such facilities may be placed within the 100-year floodplain Tanks must be at least three hundred (300) feet from any residence, religious institution, public building, hospital building, school, or combustible structure. 24.Tank Battery Facilities. Tank battery facilities shall be equipped with a remote foam line and a lightning arrestor system. 25.Surface Casing. Surface casing shall be run and set in full compliance with the applicable rules and regulations of the Commission. 26.Valves. Each well must have a shut-off valve to terminate the well’s production. The Fire Department shall have access to the well site to enable it to close the shut-off valve in an emergency. 27.Waste Disposal. Unless otherwise directed by the Commission, all tanks used for storage shall conform to the following: (a) Operator must use portable closed steel storage tanks for storing liquid hydrocarbons. Tanks must meet the American Petroleum Institute standards. All tanks must have a vent line, flame arrester and pressure relief valve. All tanks must be enclosed by a fence applicable to the issued permit classification. No tank battery shall be within three hundred (300) feet of any occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business or other combustible structure. (b) Drilling mud, cuttings, liquid hydrocarbons and all other field waste derived or resulting from or connected with the drilling, re-working or deepening of any well shall be discharged into a lined earthen pit. All disposals must be in accordance with the rules of the Commission and any other appropriate local, state or federal agency. (c) Unless otherwise directed by the Commission, waste materials shall be removed from the site and transported to an off-site disposal facility not less often than every thirty (30) days. Water stored in on-site tanks shall be removed as necessary. (d) All waste shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the state, this Ordinance and any other applicable ordinance of the City. 28.Watchman. The Operator must keep a qualified personnel on site at all times during the drilling or re-working of a well. . 33 TM 12512.2.00.AS/CDB.REV B. Well Setbacks. Except as otherwise provided, it shall be unlawful to drill any well, the center of which, at the surface of the ground, is located: (1) Within twenty-five (25) feet from any outer boundary line; or (2) Within twenty-five (25) feet from any storage tank, or source of ignition; or (3) Within seventy-five (75) feet of any public street, road, highway or future street, right-of-way or property line; or (4) Within three hundred (300) feet from any occupied building (not used in operations on the drilling site), including, but not limited to residence, religious institution, public building, hospital, school, public park, or any business. (5) Within one hundred (100) feet of any building accessory to, but not necessary to the operation of the well; or (6) Within two hundred (200) feet to any fresh water well. The measurement shall be in a direct line from the closest well bore to the fresh water well bore. The distance shall be calculated from the well bore, in a straight line, without regard to intervening structures or objects, to the closest exterior point of any object listed in Section 9-26- 14(B) (1-6), as amended. The distances set out in Section 9-26-14(B), subsections (1), (3), (4), or (6) of this subsection may be reduced at the discretion of the City Council, but in no event less than two hundred (200) feet from any dwelling or any other building used, or designed and intended to be used, for human occupancy without the unanimous consent of the property owners within a two hundred (200) foot radius around said well and the affirmative vote of not less than three-fourths of all the members of the City Council. For protection of the public health, safety and welfare, the City Council may impose additional requirements for a reduction of such distance. The reduction of the distance requirement for fresh water wells is subject to the Texas Railroad Commission regulations and any other state or federal requirements. C. Installation of Pipelines On, Under or Across Public Property.The Operator shall apply to the City for a franchise agreement on, over, under, along or across the City streets, sidewalks, alleys and other City property for the purpose of constructing, laying, maintaining, operating, repairing, replacing and removing pipelines so long as production or operations may be continued under any Oil or Gas Well Permit issued pursuant to this Ordinance. Operator shall: (1) Not interfere with or damage existing water, sewer or gas lines or the facilities of public utilities located on, under or across the course of such rights-of way. 34 TM 12512.2.00.AS/CDB.REV (2) Furnish to the Oil and Gas Inspector of the City a plat showing the location of such pipelines. (3) Construct such lines out of pipe in accordance with the City codes and regulations properly cased and vented if under a street, all crossings of City streets will be by “dry bore” method only; (4) Grade, level and restore such property to the same surface condition, as nearly as practicable, as existed when operations for the drilling of the well were first commenced. No Oil or Gas Well Permit shall be issued for any well to be drilled within any of the streets or alleys of the City and/or projected streets or alleys shown by the current comprehensive plan of the City, and no street or alley shall be blocked or encumbered or closed due to any exploration, drilling or production operations unless prior consent is obtained from the Oil and Gas Inspector. Any consent from the Oil and Gas Inspector shall be temporary in nature and state the number of hours and/or days that any street or alley may be blocked, encumbered or closed. Sec. 9-26-15. Clean-up and maintenance. A.Clean-up after well servicing. After the well has been completed or plugged and abandoned, the Operator shall clean the drill site or operation site, complete restoration activities and repair all damage to public property caused by such operations within sixty (60) calendar days. B. Clean-up after spills, leaks and malfunctions. After any spill, leak or malfunction, the Operator shall remove or cause to be removed to the satisfaction of the Oil and Gas Inspector all waste materials from any public or private property affected by such spill, leak or malfunction. Clean-up operations must begin immediately. If the owner fails to begin site clean-up within twenty-four (24) hours, the City shall have the right to contact the Commission in order to facilitate the removal of all waste materials from the property affected by such spill, leak or malfunction. C. Free from debris. The property on which a well site is located shall at all times be kept free of debris, pools of water or other liquids, contaminated soil, weeds, brush, trash or other waste material within a radius of one hundred (100) feet around any separators, tanks and producing wells. D. Painting. All production equipment shall be painted and maintained at all times, including wellheads, pumping units, tanks, and buildings or structures. When requiring painting of such facilities, the Oil and Gas Inspector shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance. Paint shall be of a neutral color, compatible with surrounding uses. Neutral colors shall include sand, gray and unobtrusive shades of green, blue and brown, or other neutral colors approved by the Oil and Gas Inspector. 35 TM 12512.2.00.AS/CDB.REV E. Blowouts. In the event of the loss of control of any well, Operator shall immediately take all reasonable steps to regain control regardless of any other provision of this Ordinance and shall notify the Oil and Gas Inspector as soon as practicable. The Oil and Gas Inspector shall certify in writing, briefly describing the same, to the City Manager. If the Oil and Gas Inspector, in his opinion, believes that danger to persons and property exists because of such loss of well control and that the Operator is not taking or is unable to take all reasonable and necessary steps to regain control of such well, the Oil and Gas Inspector may then employ any well control expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which the Oil and Gas Inspector deems necessary to regain control of such well. The City shall then have a valid lien against the interest in the well of all working interest owners to secure payment of any expenditure made by the City pursuant to such action of the Oil and Gas Inspector in gaining control of said well. Sec. 9-26-16. Plugged and abandoned wells. A.Surface requirements for plugged and abandoned well. Whenever abandonment occurs pursuant to the requirements of the Commission, the Operator so abandoning shall be responsible for the restoration of the well site to its original condition as nearly as practicable, in conformity with the regulations of this Ordinance. B. Abandonment Approval. Abandonment shall be approved by the Oil and Gas Inspector after restoration of the drill site has been accomplished in conformity with the following requirements at the discretion of the Oil and Gas Inspector: (1) The derrick and all appurtenant equipment thereto shall be removed from drill site; (2) All tanks, towers, and other surface installations shall be removed from the drill site; (3) All concrete foundations, piping, wood, guy anchors and other foreign materials regardless of depth, except surface casing, shall be removed from the site, unless otherwise directed by the Commission; (4) All holes and depressions shall be filled with clean, compactable soil; (5) All waste, refuse or waste material shall be removed from the drill site; and (6) During abandonment, Operator shall comply with all applicable sections in this Ordinance. C. Abandoned well requirement. The Operator shall furnish the following at the discretion of the Oil and Gas Inspector: (1) A copy of the approval of the Commission confirming compliance with all abandonment proceedings under the state law; and 36 TM 12512.2.00.AS/CDB.REV (2) A notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated. D.Abandonment Requirements Prior to New Construction. All abandoned or deserted wells or drill sites shall meet the most current abandonment requirements of the Commission prior to the issuance of any building permit for development of the property. No structure shall be built over an abandoned well. Sec. 9-26-17. Oil or Gas Inspector / Technical Advisor. The City may from time to time employ a technical advisor or advisors who are experienced and educated in the oil or gas industry or the law as it pertains to oil or gas matters. The function of such advisor(s) shall be to advise, counsel or represent the City on such matters relating to oil or gas operations within the City as the City may want or require and the effect thereof, both present and future, on the health, welfare, comfort and safety of the citizens of the City. In the event such Technical Advisor(s) is employed for the purpose of advising, counseling or representing the City relative to an Operator's unique and particular set of circumstances, case or request relating to this Ordinance, then the cost for such services of such technical advisor(s) shall be assessed against and paid for by such Operator in addition to any fees or charges assessed pursuant to this Ordinance. Prior to the employment of a Technical Advisor, the City shall inform the Operator of the intended scope of work and the estimated costs and expenses. The employment of a Technical Advisor shall be approved by the City Council. Sec. 9-26-18. Appeals. A. The City Council shall have and exercise the power to hear and determine appeals where it is alleged there is error or abuse of discretion regarding the issuance of an Oil or Gas Well Permit or the revocation or suspension of any Oil or Gas Well Permit issued hereunder as provided by this Ordinance. Any person or entity whose application is denied by the Oil and Gas Inspector or whose Oil or Gas Well Permit is suspended or revoked or whose well or equipment is deemed by the Oil and Gas Inspector to be abandoned may, within thirty (30) calendar days of the date of the written decision of the Oil and Gas Inspector file an appeal to the City Council in accordance with the following procedure: (1) An appeal shall be in writing and shall be filed in triplicate with the City Secretary. The grounds for appeal must be set forth specifically, and the error described, by the appellant. (2) Within forty-five (45) calendar days of receipt of the records, the City Secretary shall transmit all papers involved in the proceeding, place the matter on the City Council agenda for hearing and give notice by mail of the time, place and purpose thereof to appellant and any other party who has requested in writing to be so notified. No other notice need be given. 37 TM 12512.2.00.AS/CDB.REV B. Appeal fees shall be required for every appeal in the amount of three hundred ($300) dollars. Sec. 9-26-19. Penalty. A. It shall be unlawful and an offense for any person to do the following: (1)Engage in any activity not permitted by the terms of a Oil or Gas Well Permit issued under this Ordinance. (2)Fail to comply with any condition set forth in a Oil or Gas Well Permit issued under this Ordinance; (3)Violate any provision or requirement set forth under this Ordinance; or (4)Bring alcohol, controlled substances or firearms onto the drilling site at any time. B. Any violation of this Ordinance shall be punished by a fine of not more than tow thousand dollars ($2,000.00) per day, subject to applicable state law. Each day that a violation exists shall constitute a separate offense.” SECTION 2. That this Ordinance shall be cumulative of all other ordinances of the city of Coppell and shall not repeal any of the provisions of such ordinances, except in those instances where provisions of such ordinances are in direct conflict with the provisions of this Ordinance. SECTION 3. That all rights or remedies of the city of Coppell, Texas, are expressly saved as to any and all violations of the City Code, or any amendments thereto that have accrued at the time of the effective date of this ordinance; and as to such accrued violations, and all pending litigation, both civil or criminal, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. SECTION 4. That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared void, ineffective or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such 38 TM 12512.2.00.AS/CDB.REV voidness, ineffectiveness or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this ordinance, since the same would have been enacted by the City Council without the incorporation herein of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. SECTION 5. That any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than two thousand dollars ($2000.00) for each offense. Each day that a violation exists shall constitute a separate offense. SECTION 6. That the City Secretary of the city of Coppell, Texas is hereby directed to publish this ordinance for two (2) days in the official newspaper of the city of Coppell, Texas, as authorized by V.T.C.A. Local Government Code Subsection 52.013. SECTION 7. That this ordinance shall take effect immediately from and after its passage as the law and charter in such cases provide. 8 DULY PASSED by the City Council of the City of Coppell, Texas, this the /~U ,2007 . '1~ day of ATTEST: RO 39 TM 12512.2.00.AS/CDB.REV