OR 2009-1228 Oil and gas drilling and production
ORDINANCE NO. 2009-1228
AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE
CITY OF COPPELL, REPEALING ARTICLE 9-26, “OIL AND GAS
DRILLING AND PRODUCTION,” IN ITS ENTIRETY, AND REPLACING
WITH A NEW 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 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 BOND, INDEMNITY, INSURANCE; PROVIDING
BOND REQUIREMENTS AND TERMS; PROVIDING FOR TECHNICAL
REGULATIONS; PROVIDING FOR CLEAN UP AND MAINTENANCE;
PROVIDING FOR PLUGGED AND ABANDONED WELLS; PROVIDING
FOR APPEALS; PROVIDING FOR CIVIL REMEDIES; 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
, On January 9, 2007 City Council adopted Ordinance No. 2007-1150
regulating gas drilling within the city limits of Coppell. ;
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;
WHEREAS
, the City Council deems it necessary to revise the existing 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
repealing Article 9-26 entitled “Oil and Gas,” in its entirety, and replace the same with a new
Article 9-26, “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.
Ambient noise level means the all encompassing noise level associated with a given
environment, being a composite of sounds from all sources at the location, constituting the
normal or existing level of environmental noise at a given location.
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
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tubular goods which completely close the top of the casing and are designed for preventing
blowouts.
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.”
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 and/or any of its authorized agents, employees or
representatives, including but not limited to inspectors, consultants or other city inspectors.
City Attorney means the City Attorney of the city of Coppell.
City Code means the Code of Ordinances of the City of Coppell.
City Council means the governing body of the City of Coppell as constituted under its
Home Rule Charter.
City Regulated Pipelines means pipelines within the City that under federal and state
rules and regulations are not exempt from City regulations and ordinances regarding mapping,
inventory, locating or relocating of pipelines for the collection, distribution, or transmission of
oil or gas.
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,
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.
Decibel (db) means a unit for measuring the intensity of a sound/noise and is equal to 10
times the logarithm to the base 10 of the ratio of the measured sound pressure squared to a
reference pressure which is 20 micropascals.
Demobilization means those activities when the drilling has ceased and is completed and
the rig equipment and related pad site equipment is being dismantled for the purpose of moving
or relocating.
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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.
Fire Department means the Fire Department of the city of Coppell.
Flowback means the process of flowing a completed/fractured well for the purpose of
recovering water and residual sand from the gas stream prior to sending gas down a sales line.
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.
Freshwater Fracture Pit means a pit used for the collection and storage of fresh water for
the purpose of fracture stimulation of gas wells
Fresh Water means water obtained from any source (natural or reuse) that contains 3000
ppm chlorides of less or as defined by the Texas Railroad Commission. 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.
Habitable Structures means any building or structure used, or intended for use, on a day-
to-day basis by people for residential purposes, or for purposes of conducting a commercial or
industrial business, or for purposes of a similar nature,including but not limited to religious
institution, public building, hospital, school, or public park. This definition includes any structure
for which a certificate of occupancy is required.
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Inspector means the Oil and Gas Inspector/Technical Advisor designated by the City
Manager of Coppell.
Multiple Well Site Permit means that permit required when there is an application
submitted for the placement of more than one well on a pad site or an application to place
additional wells on an existing pad site where a single well exists.
Non-Residential Uses are uses other than residential as herein defined.
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. –
Operation site means the area used for development and production and all operational
activities associated with oil or gas after drilling activities are complete.
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.
Permit means the permit required by the city of Coppell for any proposed well.
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, hotels, motels, dance halls, exhibition halls, museums,
gymnasiums, bowling lanes, libraries, skating rinks, courtrooms, restaurants, hospitals,
government buildings, schools, colleges and universities.
Public park means any land area dedicated to and/or maintained by the City for
traditional park-like recreational purposes.
Reduced Emission Completion (Green Completion) means techniques or methods that
minimize the release of natural gas and vapors to the environment when a well is being flowed
during the completion or re-completion phase of a gas well.
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
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worship and activities intended primarily for purposes connected with such worship or for
propagating a particular form of religious belief.
Residence or Residential means a house, duplex, apartment, townhouse, condominium,
mobile home Residence shall include assisted living facility, assisted care facilty, nursing
homes (both intermediate care facilities and skilled nursing facilities), substance abuse
treatment facility, group homes and half-way houses, or any 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 City.
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.
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.
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Sec. 9-26-3. Oil and Gas Inspector/Technical Advisor.
A. Authority.
(1) The City Manager shall designate an Oil and Gas Inspector/Technical Advisor who
shall in coordination with his office 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.
(2) The Oil and Gas Inspector shall have as a condition to receiving a permit 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 and constitute noncompliance with its permit obligations. The Oil and Gas
Inspector shall conduct periodic and routine 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.
(3) 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 and constitute a violation of this
Ordinance.
B. Duties; fees. 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 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. 9-26-4. Operator's Agent.
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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
of rigs or tank batteries, fracturing and pressurizing.
B. Seismic Surveys. A permit shall not be required for seismic surveys.
C. The Operator must apply for and obtain a separate Oil or Gas Well Permit for the
drilling, re-drilling, deepening, re-entering, activating or converting of each well whether or not
contained within a single pad site.
D. An Oil or Gas Well Permit shall not constitute authority or create a property right or
interest 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.
E. 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.
F. 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 on the area covered by a permit shall give written notice to the City or its
authorized representative 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 City or its authorized
representative, the person conducting the activities will post a sign on the property giving the
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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 1,000 feet of any habitable structure (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) Written notice of all property owners within 1,000 feet of the pad site. 3)
“flowback” operations to recover fluids used during fracture stimulation shall be performed
during daylight hours only unless the City approves such operations during non-daylight hours;
4) a watchman shall be required at all times during such operations; and 5) 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.
G. 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 “multiple well
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 City in consultation with Oil and Gas Inspector
for an additional one hundred eighty (180) days upon request by the Operator and proof that the
site plan for the requested Oil or Gas Well permit for such location has not changed. After
approval of a multiple well site, individual permits shall be required for each well.
H. 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.
I. 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.
J. 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.
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K. 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.
L. 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
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. If Multiple Well Permit, maximum number of wells.
(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(s).
(5) Surface owner names(s), address(es) and signature(s) 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.
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(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 one
thousand, 1,000 feet of the pad site
(11) Owner and address of each parcel of property within one thousand, 1,000 of the
proposed pad site.
(12) A surveyed site plan of the proposed operation site shall display a Registered
Professional Land Surveyor seal, a legend with scale for measurements and a
complete legal description. The 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 all structures within 1,000 feet of
the pad site boundary, 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.
(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 determination by the Texas Commission on Environmental
Quality (TCEQ) of the depth of useable quality ground water.
(21) Evidence from DFW Airport that the drilling rig will not adversely effect the
DFW Flight Pattern Overlay.
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(22 ) 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.
(23) Evidence of insurance and security requirements under this Ordinance.
(24) 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.
(25) All required application and Oil or Gas Well Permit fees.
(26) 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.
(27) 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.
(28) 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.
(29) 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.
(30)Noise Management Plan as outlined in Section 9-26-7(I)
Sec. 9-26-7. Oil or Gas Well Permit process.
A.Permit Required.
1. No person shall drill, maintain or operate an Oil or Gas drilling or other operation
of such well within the jurisdictional limits of the City or its extraterritorial
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jurisdiction unless having first obtained a permit issued in accordance with this
article.
2. The City Manager or designee shall, after application and payment of applicable
fees, shall issue a permit subject to the conditions and provisions of this article.
3. No oil or gas permit can be issued to any person if the pad site is within 500 feet
of any habitable residential structure and 300 feet of any non-residential habitable
structure.
4. No Oil and Gas Well permit shall be issued within 1,000 feet of any of any
habitable structure(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; unless approved by the City Council after a public hearing
as provided in this article. The City Council may approve, in its sole discretion,
an application within 1,000 feet to over 300 feet from non-residential, habitable
structures as herein defined (not used in operations on the drilling site) and 500
feet from habitable residential structures as herein defined including, but not
limited to residence, religious institution, public building, hospital, school, public
park, if the City Council, if after review of the application, they determine that
adequate provisions have been made in accordance with this article and there is
adequate safeguard of the health, safety and welfare of the habitable structure and
general public.
5. 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.”
6. A public hearing for an oil or gas well permit seeking a setback within 1,000 feet
of any habitable structure shall be required for all permit applications.
For the purpose of a such an oil or gas well permit the measurement of the one thousand
foot (1,000) distance shall be made from the edge of the pad site the property line of the
habitable structure, 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 City shall determine the
administrative completeness of the application and evaluate the public impact of
the proposed activity. The City, shall, after payment of the permit fee, consider
the proposed site and the proposed operations or drilling program and shall
identify restrictions or conditions, including minimum separation distance for
13 TM 36162.2.000
drilling or other operations, special safety equipment and procedures, noise
reduction levels, screening. The City, in addition to the requirements of this
article, may require and impose other reasonable restrictions or conditions to a
proposed permit in order to assure and protect the adjacent property owners,
occupants and the general health, safety and welfare. The City Manager or his
designee may, consistent with this article, issue an oil and gas drilling permit
which conforms to the requirements of the application in compliance with this
article.
2. Any applications which seeks to be located within 1,000 feet of a habitable
structure as herein defined and seeks a setback distance exception shall require
a public hearing before the City Council. Within forty-five (45) calendar days
of receipt of a complete application which seeks to be located within 1,000 feet
as stated in subsection 9-26-7, the City 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 City with a complete application
package.
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 1,000
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 City 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
14 TM 36162.2.000
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 thirty (30) 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 city of
Coppell, an application for an Oil or Gas 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.’
The notice shall also contain a location map sufficient to identify
the proposed well site(s) as well as all properties within 1,000
feet of the boundary of the pad site.
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 City shall evaluate the public
impact of the proposed activity. The City 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 City deems
appropriate. The recommendations shall be submitted to the City Council for
consideration prior to any public hearing.
15 TM 36162.2.000
8. Prior to the public hearing and before the City Council considers the merits of
the application and the recommendations of the City, 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;
(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 City, after administrative review, in
consultation with the appropriate representatives and/or consultants; 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 habitable structure, (not used in operations on
16 TM 36162.2.000
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 boundary of which, at the surface of the ground, is located within
1,000 feet of any habitable structure, (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
habitable structure (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 the date
the application for a permit is filed with the City or its authorized representative.
For the purpose of an Oil or Gas Well Permit the measurement of the 1,000 foot
distance shall be made from the boundary of the well site, 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 1,000
feet, but not less than three hundred (300) feet from any habitable, non-
residential structure, (not used in operations on the drilling site)and three
hundred (300) feet of any habitable residential including, but not limited to
residence, religious institution, public building, hospital, school, and public
park, only when there is the unanimous consent of the property owners within a
the 1,000 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 1,000 feet from any habitable structure, (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
17 TM 36162.2.000
structures or objects, to the closest exterior point of the building, unless
otherwise authorized by the City Council.
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 within 30 days of the
first well goes into production, and shall be constructed of the following
materials:
(a) Brick and/or stone;
(b) Pre-cast concrete wall when architecturally compatible with existing tilt
wall constructed on adjacent industrial/warehouse buildings and property
within close proximity.
Gate Specifications
2.. All masonry walls shall be equipped with at least one (1)
gate. The gate shall meet the following specifications:
(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.
18 TM 36162.2.000
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 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. When within 1,000 feet of a habitable structure, flagmen shall be used in
lieu of reverse alarms/horns.
I. Noise Restrictions for Oil or Gas Well Permit.
1. Prior to the issuance of a gas well permit and the commencement of
operations, the Operator shall submit a noise management plan, as
approved by the City, detailing how the equipment used in the drilling,
completion, transportation, or production of a well complies with the
maximum permissible noise levels of this Section. The noise management
plan shall include:
a. Identify operation noise impacts;
b. Provide documentation establishing the Ambient Noise Level prior to
construction of any wellhead, compressor or compression facility;
c. Detail how the impacts will be mitigated. In determining noise mitigation,
specific site characteristics shall be considered, including but not limited to
the following:
i. Nature and proximity of adjacent development, location, and type;
ii. Seasonal and prevailing weather patterns, including wind directions;
19 TM 36162.2.000
iii. Vegetative cover on or adjacent to the site; and
iv. Topography.
The Operator shall be responsible for verifying compliance with this section and
the noise management plan after the installation of the noise generation
equipment
2. No well shall be drilled, redrilled or any equipment operated at any location
within the city in such a manner so as to create any noise which causes the
exterior noise level when measured at the nearest Use receiver’s/receptor’s
property line or from the closest exterior point of the Use structure if access to the
property is granted by the receiver/receptor, that:
a. Exceeds the Ambient Noise Level by more than five (5) decibels during
daytime hours and more than three (3) decibels during nighttime hours;
b. Exceeds the Ambient Noise Level by more than 10 decibels during fracturing
operations during daytime hours. No fracturing shall be allowed during
nighttime hours except as provided in c. below.
c. Exceeds the Ambient Noise Level by more than three (3) decibels during
flowback operations or any other ancillary fracturing operations during
nighttime hours;
d. Creates pure tones where one-third octave band sound-pressure level in the
band with the tone exceeds the arithmetic average of the sound-pressure levels
of two contiguous one-third octave bands by 5 dB for center frequencies of
500 Hertz and above, and by 8 dB for center frequencies between 160 and 400
Hertz, and by 15 dB for center frequencies less than or equal to 125 Hertz; or
e. Creates low-frequency outdoor noise levels that exceed the following dB
levels:
16 Hz octave band: 65 dB
32 Hz octave band: 65 dB
64 Hz octave band: 65 dB
3. The Operator shall be responsible for establishing and reporting to the City a
continuous seventy-two (72) hour pre-drilling Ambient Noise Level prior to the
issuance of a gas well permit. The seventy-two hour time span shall include at
.
least one twenty-four (24) hour reading during either a Saturday or Sunday
The Operator shall use the prior established ambient noise level for the
installation of any new noise generation equipment unless the Operator can
demonstrate that the increase in the ambient noise level is not associated with
20 TM 36162.2.000
drilling and production activities located either on or off-site.
4. Adjustments to the noise standards as set forth above in subsection (1) a, b and c
of this section may be permitted intermittently in accordance with the following:
Permitted Increase Duration of Increase
(dBA) (minutes)*
10…………………………………………5
15…………………………………………1
20…………………………….…less than 1
*Cumulative minutes during any one hour
5. All workover operations shall be restricted to daytime hours.
6. The exterior noise level generated by the drilling, redrilling or other operations of
all gas wells located within 1, 000 feet of a Use shall be continuously monitored,
to ensure compliance. The cost of such monitoring shall be borne by the
Operator. If a complaint is received by either the Operator or the Gas Inspector
from any Use within one thousand (1,000) feet from the gas well, the Operator
shall, within 24 hours of notice of the complaint, continuously monitor for a 72-
hour period the exterior noise level generated by the drilling, redrilling or other
operations to ensure compliance. At the request of the Gas Inspector, the Operator
shall monitor the exterior noise level at the source of the complaint.
7. Acoustical blankets, sound walls, mufflers or other alternative methods as
approved by the City may be used to ensure compliance. All soundproofing shall
comply with accepted industry standards and subject to approval by the City’s
Fire Department.
8. The sound level meter used in conducting noise evaluations shall meet the
American National Standard Institute’s Standard for sound meters or an
instrument and the associated recording and analyzing equipment which will
provide equivalent data.
9. A notice of violation will be immediately issued for failure to comply with the
provisions of this Section. However, if the Operator is in compliance with the
approved noise management plan, and a violation still occurs, the Operator will be
given 24 hours from notice of non-compliance to correct the violation from an
identified source before a citation is issued. Additional extensions of the 24-hour
period may be granted in the event that the source of the violation can not be
identified after reasonable diligence by the Operator.
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
21 TM 36162.2.000
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.
Sec. 9-26-8. Issuance of Oil or Gas Well permits.
A. After a public hearing as herein prescribed, the City Council may, after conformance
with other applicable provisions of this ordinance, approve a well location within the
buffer areas as herein established.
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 City.
C. If the City 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 City to deny the Oil or Gas Well
Permit, the Operator may cure those conditions that caused the denial and resubmit
the application to the City for approval and issuance of the Oil or Gas Well Permit.
Sec . 9-26-9. Amended Oil or Gas Well permits.
A. An Operator may request to amend an existing Oil or Gas Well Permit to relocate a
drill site or operation site within the permitted pad site provided the distance to
adjacent habitable structures, as herein defined, does not decrease, unless otherwise
authorized by the Council, as provided in Section 9-26-7(D).
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;
22 TM 36162.2.000
(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);
(4) Such additional information as is reasonably required by the City to demonstrate
compliance with the applicable Oil or Gas Well Permit; and
(5) Such additional information as is reasonably required by the City 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 City 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 City 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 City 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 City, 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
City 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
23 TM 36162.2.000
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. A
citation may be immediately issued for failure to comply with the provisions of
Section 9-26-7.(I) Noise”. However, if the Operator is in compliance with the
approved noise management plan, and a violation still occurs, the Operator will be
given 24 hours from notice of non-compliance to correct the violation from an
identified source before a citation is issued. Additional extensions of the 24-hour
period may be granted in the event that the source of the violation can not be
identified after reasonable diligence by the Operator.
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 City
or its authorized representative 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 City, nothing herein
contained shall prevent a new permit application from being submitted to the City.
Sec. 9-26-11. Periodic reports.
A. The Operator shall notify the City or its authorized representative 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
24 TM 36162.2.000
(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 City or its authorized representativeof 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 City or its
authorized representative that the well has been abandoned and the site restored, the
Operator shall submit a written report to the City identifying any changes to the
information that was 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, indemnity, and insurance.
.
A. BondPrior to the issuance of an Oil or Gas Well Permit the Operator shall provide
the City 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
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 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 City 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).
25 TM 36162.2.000
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 City 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 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.
26 TM 36162.2.000
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.
(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
27 TM 36162.2.000
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.
(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
28 TM 36162.2.000
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.
(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.
29 TM 36162.2.000
(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 City 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 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,
30 TM 36162.2.000
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 City 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 City may request an annual
review of the Operator’s most recent audited financial statements to assure
compliance with this section.
Sec. 9-26-13. Bond requirements and terms.
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.
31 TM 36162.2.000
(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.9-26-14. Technical regulations.
A. On-Site Requirements.
a.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.
b.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.
c.Closed Loop Mud Systems. A Closed Loop Mud System shall be required for all
drilling and reworking operations for all gas wells.
d.Compliance. Operator shall comply at all times with all applicable federal, state
and City requirements.
e.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.
f.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.
32 TM 36162.2.000
g.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.
h.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.
i.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.
j.Emergency Response Plan. Prior to the commencement of any oil, gas or other
hydrocarbons production activities, Operator shall submit to the City 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.
k.Equipment Painted. All production equipment on the site shall be painted and
maintained at all times, including pumping units, storage tanks, buildings and
structures. No company logos or advertisement shall be allowed, however nothing
shall prevent branding or identification on any service vehicles.
l.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.
m.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 three hundred (300) feet to
33 TM 36162.2.000
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.
n.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 one thousand (1,000) 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. 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.
o.Gas lift Compressor. Any onsite compressor used to ‘lift gas’ shall be designed
to comply with the noise and screening requirements of this ordinance.
p.Gas processing onsite. Except for a conventional gas separator or line heater, no
refinery, processing, treating, or absorption plant of any kind shall be constructed,
established or maintained on the premises without appropriate City permits and a
Certificate of Occupancy.
q.Grass, Weeds, Trash. All drill and operation sites shall be kept clear of high
grass, weeds and combustible trash.
r. Hazardous Plan.Hazardous Materials Management Plan shall be on file with the
Fire Marshal and the Oil and Gas Inspector.
s.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 with Chapter 12, Article 36, Glare and Lighting Standards of the
Coppell Code of Ordinances.
34 TM 36162.2.000
t.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.
u.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.
v.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 City 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.
w.Reduced Emission Completion.After fracturing or re-fracturing, Operators shall
employ appropriate equipment and processes as soon as practicable to minimize
natural gas and associated vapor releases to the environment. All salable gas shall
be directed to the sales line as soon as practicable or shut in and conserved.
Reduced Emission Completion techniques and methods shall not be required for
Barnett Shale wells permitted prior to July 1, 2009 that do not have a sales line.
Operators may request a variance from the Gas Inspector if they believe that
reduced emission completion techniques or methods are not feasible or would
endanger the safety of personnel or the public. Flaring may be allowed in some
instances to an alternative from venting as allowed by the Gas Inspector. If
burning of gases by open flame is authorized by the Gas Inspector then such open
flame shall not be located closer than one thousand feet from any building not
used in operations on the drilling site and such open flame shall be screened in
such a way as to minimize detrimental effects to adjacent property owners.
x.Salt Water Wells. No salt water disposal wells shall be located within the city of
Coppell.
35 TM 36162.2.000
y.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;
(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.
26.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.
36 TM 36162.2.000
27.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. The top of the tanks shall be no higher than ten (10) feet above the terrain
surrounding the tanks. 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.
a. Secondary containment shall be capable of containing a release of 110% of
the largest storage container within the containment and have adequate
freeboard to contain an average annual rain event.
b. Temporary flowback tanks shall be removed within ninety (90) days after
completion of the gas well(s) at the pad site unless permission is obtained
from the Gas Inspector to extend the time period for no more than thirty
(30) days.
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 five hundred
(500) 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.
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 not be placed within the 100-year floodplain
Tanks must be at least five hundred (500)feet from any residence, religious
institution, public building, hospital building, school, habitable structure or
combustible structure.
28.Tank Battery Facilities. Tank battery facilities shall be equipped with a remote foam
line and a lightning arrestor system.
29.Surface Casing.
a)An operator may set and cement sufficient surface casing to protect all usable-
quality water strata, as defined by state law. The Operator shall notify the City
in writing at least 72 hours prior to setting and cementing surface casing. In
addition, the following shall be required:
i)Centralizers must be used at an interval of one centralizer per one hundred
feet, or 10 centralizers per one thousand feet.
37 TM 36162.2.000
ii)New surface casing.
iii)Proper floating equipment shall be used.
iv)Class “H” or Class “C” cement with accelerators shall be used.
v)The Operator shall circulate to surface; if not, the Operator shall cement
with one inch tubing and top off.
vi)The Operator shall wait on cement a minimum of eight to twelve hours prior
to commencing further Drilling operations.
vii)The Operator shall test the blowout preventer before Drilling out of surface
casing to four thousand psi.
30.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. Each well shall be equipped with an automated valve that
closes the well in the event of any abnormal increase in operating pressure.
.
31. Vapor Recovery for Storage TanksVapor recovery equipment shall be required for
tank batteries that have an estimated rolling annual aggregate emissions rate of 25
tons or greater of total volatile organic hydrocarbons per year per well head. Vapor
recovery equipment must be operated and maintained in such a way to ensure a 95%
recover efficiency between the internal and external atmospheres of the tank(s).
32.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 five hundred (500)of any habitable structure (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
38 TM 36162.2.000
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.
33.Watchman. The Operator must keep a qualified personnel on site at all times during
the drilling or re-working of a well. .
34. Completion (per/frac). The Operator shall notify the City in writing at least 72 hours
prior to starting completion procedures such as fracturing and perforating. The well
must be equipped with a blowout preventer before this operation is commenced. If a
bridge plug is set over a producing formation prior to additional completion, it must
be pressure-tested to a sufficient pressure to ensure that it is not leaking.
st
35. Final Pipeline hookup (1 sales, bradenhead gauge, and final pad site clean-up)
a.The Operator shall notify the City in writing at least 72 hours prior to the fist sale.
b.The Operator shall install a bradenhead gauge.
c.After the site has been cleaned up and screened, the Operator shall notify the Gas
Well Inspector for a final inspection. Prior to the final inspection the operator
must provide the City with geographic coordinates of the Well Bore, using the
North American Datum 1983 (NAD 83), Texas State Plane – North Central Zone
(4202), in United States feet.
B. Well Setbacks. Except as otherwise provided, it shall be unlawful to drill any well,
which is located:
(1) Within one hundred (100) feet from any outer boundary line of the pad site; or
(2) Within five hundred (500) 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 one thousand (1000) feet from any habitable structure (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 The
distance shall be calculated from the boundary of the pad site, 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.
(5) Within one hundred (100) feet of any building accessory to, but not necessary to
the operation of the well; or
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(6) Within three hundred (300) feet to any fresh water well, and five hundred feet
from a water conveyances. The measurement shall be in a direct line from the
closest well bore to the fresh water well bore.
The distances set out in Section 9-26-14(B), subsection may be reduced as
provided herein at the discretion of the City Council, but in no event less than
five hundred (500) feet from any dwelling or any other habitable structure as
herein defined and three hundred (300) feet from non-residential structures as
herein defined without the unanimous consent of the property owners within this
radius around said well and the affirmative vote 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.
(2) Furnish to 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 City.
Any consent from the City 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.
40 TM 36162.2.000
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. Surface Reclamation Plan Requirements. Each Operator must submit as part of the
Gas Well Permit application a surface reclamation plan that must include information outlined in
this subsection, in the degree of detail necessary to demonstrate that full site reclamation can be
accomplished. The reclamation plan must include:
(1) Measures to be taken to restore property to allow use under the City Comprehensive
Plan;
(2) The control of surface water drainage and of water accumulation and measures to be
taken during the reclamation process to provide for the protection of the quantity and
quality of surface and groundwater systems;
(3) Cleaning up polluted surface and ground water;
(4) Backfilling, soil stabilization, compacting, grading, and appropriate revegetation;
(5) Soil reconstructions, replacement, and stabilization;
(6) Configuration of the reshaped topography;
(7) Waste disposal;
(8) A plan for re-vegetation of affected lands;
(9) Road reclamation; and
(10) Other practices necessary to ensure all disturbed areas will be reclaimed.
C. 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 City 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.
D. 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.
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E. 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 City 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 City.
F. 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 City after
restoration of the drill site has been accomplished in conformity with the following
requirements at the discretion of the City:
(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
42 TM 36162.2.000
(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 City:
(1) A copy of the approval of the Commission confirming compliance with all
abandonment proceedings under the state law; and
(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. Appeals.
A. In addition to the hearing, 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.
B. Appeal fees shall be required for every appeal in the amount of three hundred ($300)
dollars.
Sec. 9-26-18. Penalty.
A. It shall be unlawful and an offense for any person to do the following:
43 TM 36162.2.000
(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.
Sec. 9-26-19. Civil Remedies.
Any person, entity, corporation, partnership or association, owner or occupant that
operates an oil or gas well without a permit or in violation of the conditions or regulations of a
permit shall be declared a public nuisance which may be abated in conformance to Chapter 54 of
the Texas Local Government Code or by other forms of injunctive relief by a court of competent
jurisdiction. Any remedy provided for in this section shall be cumulative of any other remedy
provided in this article or the common law.”
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
44 TM 36162.2.000
or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such
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.
,: DULY PASSED by the City Council the of Coppel Texas, this the ~ day of
2009
APPRO D:
D S OVER, MAYOR
ATTEST:
LIB BAL ITY SECRETARY
(REH/cdb Q~/19/09)
ATTORNEY
45 T