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Bridgeport & Sherman ords. WDS RESOURCES INC. October 18, 1994 Mr. Gary Sieb, Director of Planning P.O. Box 478 Coppell, Texas 75019 Dear Ga~: Please fred enclosed, from the cities of Bridgeport and Shemm~ Texas, their ordiances pertainm' g to drilling and producing gas and oil wells within their jurisdiction. Also enclosed is a letter from the Wise County Appraisal District for the city of Bridgeport. As you can see, gas and oil production contributes handsomely to thek,, hde~endent School District tax base. Gary, I have been out of town, but will get you some photos of Burros, tank batteries, and well heads just as soon as the weather clears up. We look forward to speaking with you again very soon. Sr. Vice-President (t ~.: ~}'"~'~': ~[ Encl.-3 5025 Arapaho Road, Suite 350, Dallas, Texas 75248 (214) 661-8885 - Fax (214) 661-1618 Cov ¥ PHONE 627-3081 -:- 206 S. STATE STREET -:- DECATUR, TEXAS 76234 October 6, 1994 Sanford Dvorin 5025 Arapaho Road Suite 350 Dallas, Texas 75248 Re: Ad valorem mineral taxes Dear MR. Dvorin, For the 1994 tax year the ad valorem taxable value for the City of Bridgeport is $4,689,250, with a tax rate of $.3838 and an estimated collection rate of 90%. The Bridgeport I.S.D. value on their minerals $70,004,290 with a tax rate of $1.5056 and an estimated collection rate of 90%. Hope this is the information you were needing. Sincerly, ~ ~Jerry M~llins Chapter 22 OIL AND GAS WELLS* Art. L In General, §§ 22-1--22-30 Art. H. Permit, §§ 22-31-22-60 Art. IlL Drilling and Operating Rules, §§ 22-61-22.83 *Cross references-Buildings and building regulations, Ch. 6; licenses, permits and miscellaneous business regulations, Ch. 16; planning and development, Ch. 25. State law references-Authority to legislate for public health, safety, etc., V.T.C.A., Local Government Code §§ 51.001, 51.072, 54.008; oil and gas wells and production generally, V.T.C.A., Natural Resources Code ch. 81 et seq. 1327 0IL AND GAS WELLS § 22-4 ARTICLE I. IN GENERAL clerk's office, which plat is hereby referred to and adopted as a part of this section. Sec. 22-1. Definitions. (b) All drilling blocks' and units hereby estab- The following words, terms and phrases, when lished shall be minimum drilling units, and they used in this chapter, shall have the meanings as- may be enlarged by private contract with the fee cribed to them in this section, except where the mineral owners of more than four-f'n~hs of the context clearly indicates a different meaning: areas, and the rights of the permittees and nona- greeing owners shall be determined and protected Drilling block shall mean a tract of land con- as set forth in this chapter, but if enlarged, the sisting of one (1) city block of normal size ofblocks new unit must consist of multiples of established in the city where defined by surrounding streets adjacent units. and lanes. Where the block is not defined by sur- rounding streets or lanes, it shall consist of an (c) The city council may, upon hearing and no- area as nearly approximating the normal city' ' tice,-vary the established bounclm~es of such units block as is consistent with existing boundaries not to exceed one-tenth, and in so doing the council and property lines, shall assign any acreage eliminated from any ~mit to an adjacent unit. Watershed or source of water supply shall mean all areas of the fresh water sands commonly known (d) When definite distances in feet are not as the Trinity Sand, the First Woodbine Sand and shown on the map referred to herein, the bound- the Second Woodbine Sand from or through which aries of the drilling block or drilling districts water flows or percolates to the wells maintained shown thereon are intended to be along existing and operated by the city as the source of its water street, alley or property lines or extensions of or supply, from the same. Where the street or alley lines are (Code 1967, § 20-1) used, the centerline of the street or alley is in- Cross reference-Definitions and rules ofconstruction gen- tended, except where the street or alley lines are erally, § 1-2. coincident with the drilling block boundary as shown on the map. Where the layout of streets, Sec. 22.2. Penalty for violations, alleys, city limits or other monuments actually on Violations of this chapter are punishable as pro- the ground vary from the layout as shown on the vided in section 1-6. map, the designations shown on the mapped streets shall be applied to the streets, alleys, city Sec. 22-3. Drilling blocks and~nlts generally, limits and monuments actually established and existing upon the ground. (a) The oil and gas well drilling blocks for the city are shown and designated on the map at- (e) In the case of drilling blocks located along tached to the original copy of Ordinance No. 1955 the city boundary, all owners thereof may by on file in the city clerk's office, which map ~s --agreement poo! ,hr ~ea covered thereby vfith con- hereby referred to and made a part hereof for all tiguous acreage outside the city limits for the pur- purposes. Such drilling blocks shall be confined to pose of establishing a drilling unit. drilling operations down to four thousand five hun- (Code 1967, § 20-2) State law reference-Pooling of tracts of land, V.T.C~A., dred (4,500) feet, and no permit shall be granted Natural Resources Code ch. 102. nor production allowed from such blocks estab- lished at a greater depth than four thousand five Sec. 22-4. Effect on boundaries of drilling hundred (4,500) feet. Below four thousand five hun- blocks or units. dred (4,500) feet, the drilling units shall consist of areas of approximately twelve-plus acres, ex- Nothing in this chapter shall affect any ordi- cluding streets and alleys, and sixteen-plus acres, nance previously adopted which establishes the including streets and alleys, as set out and as boundaries of any drilling block or unit or pre- hereby established by plat attached to the orig- scribes the lots or territory to be included within '. inal copy of Ordinance No. 1955 on ['He in the city any such block or unit, and all such ordinances in 1329 OIL AND GAS WELLS § 22-32 nish the city manager or his designated represen- except in accordance with regulations adopted tative with complete, full and accurate informa- from time to time, nor to use the streets, alleys or tion as to the location and proposed depth of the public ways or any part thereof for the purpose of well or hole and shall pay to the city a fee of fifty transporting oil or gas in pipelines or otherwise, dollars ($50.00) to defray its expenses in connec- except under a separate permit issued by the city tion with the inspection of such operations to de- council and subject to such regulation of such termine their compliance with this chapter and to transportation as may be prescribed from time to determine that all laws and regulations for the time by ordinance of the city or otherwise. protection of the city's water supply are properly (Code 1967, § 20-12) observed. (b) As to all wells or holes to which this chapter Sec. 22-14. Appeals from official actions is applicable located more than five (5) miles out- under chapter. side of the city4imits, the driller or person respon- .~,y person who feels aggrieved by any action sible for such operation shall give written notice takenby any officials of the cityunder this chapter of the location and proposed depth of the well or shall have the right to appeal to the city council. hole to the city manager. (Code 1967, § 20-13) (Code 1967, § 20-9) Secs. 22-15-22-30. Reserved. Sec. 22-11. Inspections toensurecompliance. The city manager or his designated representa- tives shall have the right to inspect all drilling, ARTICLE Il. PERMIT digging or excavating operations to which this chapter may be applicable as frequently and to Sec. 22-31. Required. such extent as may be necessary to ensure full compliance with the terms of this chapter. It shall be unlawful for any person to drill or to (Code 1967, § 20-10) commence to drill a well for oil or gas within the limits of the city, or to work upon or assist in any way in the prosecution of the drilling of any such Sec. 22-12. Chapter does' not authorize tres- well, without a permit for the drilling, completion pass or affect landowner's right and operation of such well having been first is- of contract, sued by authority of the city council in accordance Neither this chapter nor any permit issued here- with the provisions of this article. It is hereby under shall be interpreted to grant any right to stated to be the expressed intention of the ciC-y the permittee to enter upon or occupy in any re- council to permit additional wells in each drilling spect in drilling or production operations any land block, where the production appears to warrant 'except by_written consent of the owner, nor shal! such additional wells; that no permit shall be is- it limit or prevent the free right of any lot owner sued for more than one (1) well to each drilling to contract for the amount of royalties to be paid block, and it shall be unlawful to drill more than with respect to his own land or other consider- one (1) well for oil and gas to each drilling block ation therefor, or for damages, rights or privileges without a permit. with respect thereto. (Code 1967, § 20-24) (Code 1967, § 20-11) Sec. 22-32. Application generally. Sec. 22-13. Chapter does not authorize storage or tran.~portation ofoil or (a) Every application for a per'mit to drill, com- plete and operate a well for oil or gas shall be in gas.. writing, signed by the applicant or by some person Neither this chapte~ n6r any permit issued her~ duly authorized to sign the same on his behalf. under shall be interpreted to grant any right to The application shall state the drilling block and the permittee to store oil within the city limits, the proposed depth and the particular lot and lo- 1331 OIL AND GAS V~ELLS § 22-34 Sec. 22-34. Bond or other security required (c) In lieu of the surety bond required by this of applicant, section, the applicant may file with the city clerk (a) Each application for a permit Under this ar- his personal undertaking or undertakings, which ticle shall be accompanied by a duly executed bond, shall be in the same amount and shall contain the given by the applicant as principal and a surety same conditions as provided with respect to surety company authorized to do business in the state, as bonds and which undertaking or undertakings surety, such bond to be approved by the city at- shall be secured by negotiable United States Gov- torney and the city council. The bond shall run to ernment securities or negotiable securities of the the city for the benefit of the city and all persons state, or of counties or municipalities in the state, concerned, conditioned that if the permit is such securities to be approved by the city council, granted, and if drilling operations are commenced and having a par value or market value, which- thereunder, the applicant and his assigns will ever is lesser, equal to the amount of the surety comply, with the terms, and conditions of this bond in lieu of which such undert ~aking is given, chapter, and all future amendments and ~egula- which securities shall be deposited in escrow with tions hereunder in the drilling and operation of a an official depository of the city, jointly selected well; that the applicant will restore the streets by the city manager and the applicant or his as. and sidewalks and other public places of the city signs, along with and attached to a copy of the which may be disturbed in the operations to their written undertaking for which same are to be held former condition, will clear the blocks and lots of as security. all litter, machinery, derricks, and buildings (d) Each applicant may provide the bond or se- erected or used in the drilling or operation of such curity as provided for in this section or, in lieu well whenever the well shall be completed, aban- thereof, an insurance policy or policies to cover doned or the operation thereof discontinued; and the same requirements, liabilities and conditions that the applicant or his assigns will pay such as required in the bond. Such insurance given in sums as may be due by them bY reason of produc- lieu of the bond shall provide that the city or any tion of oil, gas or other minerals to all persons aggrieved party shall have a right to proceed di- owning lots, blocks or tracts of land in the drilling rectly against the insurance company. block, who have not executed, at the time of filing of the bond or who shall not execute during the (e) A bond, undertaking or insurance policy filed term of the bond and prior to the accrual of lia- pursuant to this section shall be released by the bilities thereunder, leases, drilling contracts, city council when production ceases and the per- waivers or other form of contract under which the mittee has in all things complied with the provi- applicant or his assigns is or are authorized to sions of this chapter. When a permit terminates operate the premises of the owner for the devel- and becomes inoperative under the terms of sec- opment and production of oil and gas in accor- tion 22-43, or when the permittee or his assigns dance with the provisions of this chapter, shall file with the city council written notice of ' (b) The b~nd requffed by this SectiOn shall be in his ~lection'to SUrrender his permit and abandon the principal sum of twenty-five thousand dollars the premises covered thereby, provided that no- ($25,000.00) for a one-block drilling unit and one rice of such intent to abandon has been given in hundred thousand dollars ($100,000.00) for a the manner provided in section 22-33 with refer- drilling unit of twelve (12) plus acres. One (1) year ence to application for permits, then if no claims after the completion of the well, the city council under the bond or undertaking in lieu of the bend may, on application, reduce the principal amount have been filed with the city clerk within ninety of such bond to one thousand dollars ($1,000.00) (90) days, the city clerk on authorization by reso- on a one-block drilling unit and seven thousand lution adopted by the city council shall return the five hundred dollars ($7,500.00) on a dwelling unit bond or undertaking and security or securities of twelve (12) plus acres. The reduction shall in theretofore furnished by the permittee in connec- nowise affect any accrued liabilities, whether tion with such permit, and if claims are filed known or unknown, at the time the reduction is within such time, upon the f'mal satisfaction or made. defeat of such claims, such bond or undertaking, 1333 OIL AND GAS V~ELLS § 22-40 Sec. 22-37. Fee. acter and value of the permanent improvements already erected on the drilling block in question The fee for a permit under this article shall be or adjacent thereto, and the use to which the land as established by ordinance. Such fee shall be paid, and surroundings are adapted for civic purposes, in cash, to the city clerk at the time the permit or for sanitary reasons, the drilllng of an oil or gas application is filed, well is determined by the city council to be a se- (Code 1967, § 20-30) rious disadvantage to either the health, safety, morals or welfare of the city and its inhabitants. Sec. 22-38. Issuance generally. When a permit is refused for any of these reasons, Except as otherwise provided in this article~ if but not otherwise, the deposit in cash as a fee, an application for a permit under this articIe is made with the application, shall be returned to found by the city council to comply in all respects the applicant. with the terms of this c.h.apter,~ the city council (b) As an aite,-mative to. the refUsal of a permit shkll, by resolution adopted either at a regular or special meeting, authorize the city clerk to issue a upon the conditions se~ forth in s~bs~c~ion (a) permit for the drilling, completion and operation above, the city council may, in its sole discretion, of the well applied for. Such permit shall be is- require as a condition for the granting of such sued in the form prescribed by the city council permit such additional requirements as may be and shall be approved by the city attorney. The deemed necessary under the circumstances. Sub- granting and issuance of a permit for a well on a sequent breach of any part of such conditions shall drilling block as provided in this chapter shall authorize forfeiture of such permit by resolution automatically operate as a rejection and denial of of the city council duly adopted after five (5) days' all other pending applications for a well or wells notice to the holder thereof and hearing thereon. For the guidance and convenience of the city upon the drilling block involved or any portion or portions thereof, council, but without restricting it to the condi- (Code 1967, § 20-31) tions so set forth or excluding the imposition of other conditions, the following conditions most Sec. 22-39. Issuance in case of multiple appli- likely to be required are enumerated, any one (1) or more of which may be required: cations for sa,ne drilling block. In case there is filed with the city clerk, and (1) That an internal-combustion engine may pending at the same time, applications for per- be used in the drilling operations of the well mits to drill on any single drilling block within and, if an internal combustion engine is the city limits made by more than one (1) appli- used, that mufflers shall be installed on the cant, that application shall be granted, if other- mud pumps and engine so as to reduce noise wise sufficient, which is made by the person to a minimum, all of such installations to hgld~ing the greater area of ground., within the be done in a.manner satisfactory to the fire drilling block'by Ownership in fe~ Or'by lease or "mKrShal for fire prevention purposes only. other contract authorizing the drilling and oper- For production purposes, only electric power ation on land within such block for oil or gas. may be used, except that whenever electric (Code 1967, § 20-32) power is unavailable, impractical, or it be- comes economically more feasible for an Sec. 22-40. Refusal or issuance with special internal-combustion engine to be used, then conditions for certain locations, such an engine may be used for production purposes upon the issuance of a permit (a) The city council shall have the power and therefor by the city manager or his autho- reserves the authority to refuse any application rized representative. for a permit under this article, or to require a definite location within the drilling block to be (2) That all oil drilling and production opera- specified for drilling such well, when by reason of tions shall be conducted in such a manner the location of the proposed well and th~ char- as to eliminate, so' far as practicable, dust, 1335 OIL ANDGAS~ELLS § 22-65 tions adopted by the state railroad commission, ARTICLE HI. DRILLING AND and that violation of any such future ordinance, OPERATING RUI.F.S* law or regulation shall, when determined, after five (5) days' notice and hearing by the city council, Sec. 22-61. Compliance with article. be grounds for the cancellation of such permit and In operations under an oil or gas well permit operations thereunder shall cease immediately as issued pursuant to this chapter, the permittee or of the time of such cancellation, his assigns must observe the rules prescribed in (Code 1967, § 20-35) this article and the failure to observe the same shail be unlawful. (Code 1967, § 20-48) Sec. 22-43. Termination. Sec. 22-62. Drill stem tests, swabbing and A permit issued under this .article shall termi- comPletion attempts to be made hate and become inoperative without any action only during daylight hours. on the part of the city council, unless within ninety (90) days from the date of issuance actual drilling No drill stem test, swabbing or completion at- of the well is commenced, or additional periods of tempts shall be made at any oil or gas wells be- ninety (90) days each for the commencement of tween sundown and sunrise, but all of such work such drilling are authorized by resolution of the shall be done during the daylight hours. city council. After the drilling of the well has com- (Code 1967, § 20-49) menced, the cessation of drilling operations prior to the completion of the well for a period of six (6) Sec. 22-63. Mud engineer required upon reaching depth of seven thousand months shall operate to terminate and cancel the feet. permit, and the well shall be considered as aban- doned for all purposes of this chapter, and it shall Upon reaching adepth of seven thousand (7,000) be unlawful thereafter to continue the operation feet, the drilling operations shall be under the or drilling of such well without the issuance of supervision of a qualified mud engineer, who shall make any and all repor'ts concerning any danger another permit. If a well is completed as a pro- ducer and thereafter ceases to produce, the per- immediately to the city manager or his represen- mittee shall have the right to conduct deepening tative, and such engineer shall be retained until or reworking operations on the well within six (6) the oil string is set and cemented. months after cessation of production without (Code 1967, § 20-50) having to procure a new permit. (Code 1967, § 20-36) Sec. 22-64. Forge or open light prohibited in- side derrick. No forge or: open light shall be Placed inside the Sec. 22-44. Copy to be delivered to oil well derrick of a Well showing off or gas. inspector. (Code 1967, § 20-51) A copy of each permit issued under this article Sec. 22-65. Blowout preventer and other con- shall Be delivered to the oil well inspector, trol equipment generally. (Code 1967, § 20-37) (a) A blowout preventer, control head and other connections for keeping the well under control at all times shall be installed as soon as surfacing Secs. 22.45-22-60..Reserved. casing is set. The blowout preventer on the second string shall be hydraulically controlled. All con- ' : ' - *State law reference-General rules for wells, V.T.C~, : ~ ' " Natural Resources Code ch. 88. 1337 OIL AND GAS V~ELLS § 22-80 application for the permit, and then only on con- (b) Printed signs reading: "DANGEROUS, NO dition that boilers are located at least three hun- SMOKING ALLOWED," or similar words, shall dred (300) feet from any dwelling, producing well, be posted in conspicuous places on each producing tank battery or separator, drilling unit. (Code 1967, § 20-56) (Code 1967, § 20-62) Sec. 22-70. Safety stoves and vaporproof Sec. 22-76. Premises to be kept free of grass, lights, weeds and trash. Each person holding a permit for an oil or gas All of the permittee's premises shall be kept well under this chapter shall provide for safety clear of high grass, weeds and combustible trash stoves and vaporproof lights, within a radius of one hundred (100) feet around (Code 1967, § 20-57) an oil tank or producing well. (Code !967, § 20-63) Sec. 22.71. Interference with or pollution of water supply prohibited. Sec. 22-77. Disposal of waste. All operations under this chapter shall be con- (a) All waste from an oil or gas Well shall be ducted in such a manner as to assure that there disposed of in such a manner as to avoid creating will be no interference with or pollution of any of a fire hazard or polluting streams or fresh water the sands or strata from which the water supply strata. No well, prior to its completion, shall ever of the city or of any individual or corporation in be permitted to clean itself into an open pit, but the city is produced, the same shall be brought in flowing into a tank (Code 1967, § 20-58) through a separator and the waste shall be dis- posed of outside of the city in such a manner as Sec. 22-72. Production or flow tanks to be shall not constitute a nuisance. surrounded by dike or ditch. (b) In completing a well, mud, water, oil and All permanent production tanks or flow tanks the like shall be swabbed or flowed into a tank or in the city limits shall be surrounded by a dike or separator, and shall not be flowed into any open ditch of at least the capacity of the tank. pit. (Code 1967, § 20-59) (Code 1967, § 20-64) Sec. 22-73. Protection of tanks from gas Sec. 22-78. Standby mud pump. hazard. A standby mud pump shall be required at each All oil tanks, where there is a gas hazard, shall drilling well. be gastight and provided with proper gas vents. (Code 1967, § 20-65) (Code 1967, § 20-60) . Sec. 22-79. Depth of piPeline laid upon or Sec. 22-74. Oil storage facilities prohibited, across streets or alleys. No storage tanks or field working tanks or other All oil and gas pipeline laid upon or across a facilities for the storage of oil shall be erected or public street, alley or highway must be buried to maintained on the premises or in the city limits, a depth as established by the grade set by the city Open earth for oil is prohibited, engineer. (Code 1967, § 20-61) (Code 1967, § 20-66) Sec. 22-75. Smoking prohibited; signs. Sec. 22-80. Fencing. (a) No smoking will be permitted in any area All well heads, pits and tank batteries shall be within one hundred fifty (150) feet of the drilling adequately protected with "manproof" fencing. well. (Code 1967, § 20-67) .... : 1339 2 3 ORDINANCE 4 aN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRIDGEPORT, tEXAS, REPEALING SECTION 5-41 AND CHAPTER 13 OF THE CODE OF ORDINANCES OF TH~ CITY.OF BRIDGEPORT, TEXAS, AND ESTABLISHING A 5 ~EW CHAPTER 13 OW THE CODE OF ORD{NANCES OF THE CITY OF !~RIDGEPORT, TEXAS, PROVIDING FOR 'IHE REGULATION OF OIL AND GAS 6 ~RODUCTION; DEFINING TERMS; PROVIDING FOR DRILLING PERMITS; CON- ~AINING PROVISION FOR A WAIVER OF BOND AND INSURANCE REQUIRE- ? ~ENTS; PRESCRIBING MINIMUM SETBACK REQUIREMENTS FOR LOCATING ~ELL-HOLES AND STORAGE TANKS; PROVIDING FOR ESTABLISHMENT OF ~EHICULAR ACCESS ROUTES TO WELL SITES; REQUIRING COMPLIANCE WITH 8 )R[LLING PERMITS; REQUIRING APPOINTMENT OF OPERATIONS SUPERVISOR; tEQUIRING WELL SITES TO BE MARKED PRIOR TO COMMENCEMENT OF DRILL- 9 lNG OPERATIONS; REQUIRING ADEQUATE ROAD AND GROUND SURFACING; PROVIDING PROCEDURE FOR THE TRANSFER OF PERMITS; INDEMNIFYING 10 ]ITY AGAINST LOSS; REGULATING THE STORAGE OF EQUIPMENT AND ~ATERIALS; REQUIRING SITE TO BE FENCED; REQUIRING LANDSCAPING AND 11 ~CREENING OF DRILL SITE REGULATING NOISE VIBRATION AND ODOR EMANATING FROM DRILLING AND PRODUCTION EQUIPMENT; REQUIRING FIRE- FIGHTING EQUIPMENT ON DRILL SITE; REQUIRING WATCHMAN AT DRILL 12 SITE; PRESCRIBING MINIMUM REQUIREMENTS FOR CASING QUALITY; PRE- ;CRIBING MINIMUM DEPTH AND OTHER REQUIREMENTS FOR CASING QUALITY; 13 PRESCRIBING MINIMUM DEPTH AND OTHER REQUIREMENTS FOR SURFACE, PROTECTION AND PRODUCTION CASING INSTALLATION; PRESCRIBING 14 )RILL[NG PROCEDURES, TESTING RESTRICTIONS AND EQUIPMENT REQUIRE- MENTS; PROVIDING FOR OFF-SITE WASTE DISPOSAL; PROVIDING FOR MONITERING OF DRILLING AND PRODUCTION ACTIVITIES; RESTRICTING 15 tRANSPORTATION OF OIL AND GAS; REQUIRING THE REMOVAL OF DERRICKS AND OTHER EQUIPMENT UPON CESSATION OF DRILLING OPERATIONS; PRE- 16 SCRIBING REQUIREMENTS OF WELL ABANDONMENT; PROVIDING FOR SUSPEN- SION OR REVOCATION OF DRILLING PERMITS AND PROVIDING A PENALTY 17 IFOR VIOLATION. WHEREAS, the existing Chapter 13 of the Bridgeport Code of 18 Ordinances is void and has'been so for many years; and, 19 WHEREAS, the City Council is of the opinion that proposed oil and gas exploration and production activities within the 20 City require regulation; and, 21 WHEREAS, the City finds the provisions in this ordinance contained to be reasonable, just and in the interest of the public health, safety and general welfare. 22 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 23 BRIDGEPORT, TEXAS' 24 Sec. 1. THAT Section 5-41 and Chapter 13 of the Code of 25 i 26 2 3 Ordinances of the C~ty of Bridgeport, Texas, be and the same are hereby repealed. 4 ec. 2. THAT a new Chapter 13 of the Code of Ordinances be and is hereby enacted as follows' 5 ,, CHAPTER 13 6 OIL AND GAS DRILLING AND PRODUCTION 7 Sec. 13-1. Definitions. 8 For the purpose of this chapter all technical or oil and gas industry words or phrases used herein and 9 not specifically defined herein shall have that meaning customarily attributed to them by the oil and gas 10 industry. The following words and terms wherever and whenever used or appearing in this chapter shall have ll the scope and meaning hereinafter defined and set out in connection with each: 12 Applicant: Any person who applies for a drilling permit hereunder. 13 Approved, approved type, or approved design' Improvements, equipment or facilities of a type or 14 design approved by the chief building official. 15 Building code' The pr>rtion of this Code or any ordinance of the city known by that title and all 16 amendments thereto. Building permit' The permit required by the 17 building code. 18 Chief building official' The chief building - official of the city or his successor. 19 Completion of drilling: A well is completed, for 20 the purpose of three regulations, thirty (30) days after the drilling crew has been released. The drilling crew is released within the meaning of this paragraph when 21 work at the well site for drilling or completing the well is suspended, either temporarily or permanently. 22 Derrick' Any structure, improvement, equipment, 23 or I'acility, and each and every part thereof, whether completed or not, and which is required, or used or useful for or in connection with drilling, operating, or 24 25 2 26 3 maintaining a well for the production of oil, gas or other hydrocarbons from the earth; together with all 4 ~arts of and appurtenances to such structure, improve- ment, equipment or facility, including, but not limited to, foundations and sills therefore, pump-houses, 5 engine-houses, or housings, pipe-racks, postings, walkways, mud-ditches and crown block. 6 Designated agent' The designated agent of 7 applicant or.permittee. 8 Diligence: That the drilling derrick is in its operating position over the well, properly anchored and supported and that an operating crew is on duty at the 9 drill site at all times. 10 Drill site' The premises used during the drilling and subsequent life of a well or wells, which is 11 necessary for the safe operations thereof. 12 Drilling' Entry onto the site with equipment and/or personnel for the specific purpose of actually opening a well hole intended to produce oil or gas. 13 Erect' To build, construct, install, assemble, 14 put together, improve, alter, move, reconstruct, restore, renovate, renew or repair any building, structure, improvement or facility, or any part or 15 portion thereof or foundations therefor, or appurtenance thereto, whether or not such building, structure, 16 improvement or facility is completed, or to work upon, or in any way assist in such erection. 17 Flammable liquids: Oil and other fluid hydrocarbons, including liquified gases or other 18 flammable liquids, having a flash point below two hundred (200) degrees Fahrenheit. The flash point of 19 all comodities shall be determined by the Elliot, Abel, Abel-Pensky, or Tag closed cap testers, but the Tag 20 closed cap tester, standardized by the United States Bureau of Standards, shall be authoritative in case of 21 dispute. All tests shall be in accordance with the methods adopted by the American Society for Testing Materials, and approved by the American Standards 22 Association, or their successors. 23 Gas' The gaseous components or vapors occuring 24 in or derived from petroleum or natural gas. 25 3 26 3 Lessee' The possessor of the right to explore and 4 kecover minerals from the premises. Lessor' The owner of the mineral rights. 5 Maintained' To repair, or otherwise keep or place 6 in working condition, and also to permit, or authorize to exist, regardless of whether any actual maintenance ? work is done. For the purposes of this chapter, an oil well, well-hole, derrick and production equipment, shall be deemed to be "maintained" upon the premises in and 8 upon which the same were or are being drilled, erected or installed, until the following tasks are accomp- 9 lished. 10 (1) Every part of such derrick and production equipment shall be removed from the drill site. 11 (2) All requirements for abandonment established by the state and any other regulatory authority having 12 jurisdiction must be met. 13 (3) All sumps, cellars, rotary mud, concrete, oil and rubbish must be removed and the drill site cleaned 14 and all ditches must be leveled. (4) All property of the City which may have been 15 disturbed or damaged by the operations at the drill site shall be repaired and cleaned as needed and restored to 16 substantially the same condition as existed at the time of the issuance of the permit. 17 Maintenance' The repair and replacement of parts of a structure when the repair or replacement does not 18 alter or lessen the strength or stability of the structure. 19 Non-urbanized drilling site' A drill site shall 20 be considered non-urbanized if no occupied commercial, residential or industrial structure exists in use within one thousand (1,000) feet of the proposed well-hole. 21 Occupied structure' Only those structures that 22 are regularly occupied.by persons at least twenty (20) hours per week. 23 Oil: Petroleum and other fluid hydrocarbons obtained from the earth. 24 25 4 26 3 Operate: To work or act upon, or to cause or permit natural or artificial forces to function in 4 connection with any structure, plant, equipment, machinery, or facility with the purpose of utilizing the 5 same for the purpose for which it was or is erected or maintained, or for any other purpose and when used wi. th 6 reference to a well, well-hole, derrick or production equipment, means and includes any acts or functions performed or permitted to occur in connection with such 7 well, well-hole, derrick or production equipment from and after the completion of the drilling of the well, 8 for the purpose of producing or obtaining oil, gas, or other hydrocarbons from the ground, and for the purpose 9 02' producing or obtaining oil, gas, or other hydrocarbons from the ground, and for the purpose of 10 collecting and handling the same and making deliveries thereof at the well or from the shipping tanks or lease 11 tanks in the vicinity of the well. "Operate" includes all functions performed or permitted to occur in connection with such production, collection, handling, 12 and delivery, including the repair, reconditioning, restoration, perforating, redrilling or deepening of 13 said well or well-hole, and the dehydration or cleaning of said oil prior to making such deliveries as aforesaid. 14 Operator: The person, whether owner, lessee, or 15 independent contractor, actually in charge and in control of the drilling, maintenance, operation or 16 pumping of a well or lease. Owner: A person who has legal or equitable title 17 to the surface of the drill site. 18 Permit or drilling permit: The written, typed or ~ printed permission issued to applicant by the chief 19 building official under the authority of this chapter. 20 Permittee: Any person to whom a permit has been granted and issued under and pursuant to the terms of this chapter by the code enforcement administrator. 21 Person: An individual; a receiver; a trustee, a 22 partnership; a ,joint veature; a firm; an unincorporated association; a syndicate; a club; a society; a trust, a 23 private corporation; a public corporation; a municipal corporation; a county, a state, or national government; a commission; a water district; a utility district; a 24 25 5 26 3 political subdivision; and a drainage, irrigation, levee, reclamation, flood control or water conservation 'district, whether acting for himself or itself or in any 4 representative capacity. 5 Production equipment: Pumping equipment, tubing, pipes, gauges, meters, valves, oil and gas separators, 6 sumps, flow 'tanks, production tanks, shipping tanks, lease tanks, shipping pumps, loading racks and all other ? structures, machinery, equipment and facilities, and each and every part thereof, whether completed or not, required for or used or useful in connection with the 8 operation, repair, reconditioning, redrilling or ~naintenance of a well or well-hole, and the collection, 9 handling and delivery of oil, gas or other hydrocarbons therefrom, and which structures, machinery, equipment 10 and facilities are not included in the "derrick," "well," or "well-hole," aS heretofore defined. 11 "Production equipment" also includes any wash tanks, dehydration plant or other equipment or facility operated or maintained by or on behalf of the operator 12 of said well for the purpose of separating sand, water ~ and other foreign substances from the oil, gas or other 13 ! hydrocarbons produced or obtained by said operator prior I to shipping or delivering said oil from the shipping ,i tanks or lease tanks at the well, or in the vicinity 14 thereof. 15 Redrilling: The deepening of an existing oil well or otherwise drilling beyond the extremities (to the 16 side) of the existing well casing. The provisions of this chapter relating to drilling shall be equally 17 applicable to redrilling. Structure: That which is built or constructed; a 18 tank, edifice, or building of any kind. 19 Suspended operations: The approved temporary suspension of drilling or redrilling operations pending 20 a resumption of operations or abandonment. Tank: A container, covered or uncovered, used in 21 conjunction with the drilling or production of an oil well, for holding or storing liquids at or near 22 atmospheric pressure. 23 Urbanized drilling site: A drill site shall be considered urbanized where an occupied commercial, residential or industrial structure exists within one 24 25 6 26 3 thousand (1,000) feet of the proposed well-hole. 4 Well head' A well head is composed of the bradenhead, Christmas tree and all well connections. 5 Sec. 30-2. Permit required; acts constituting nuisances. 6 (a) No person shall conduct any drilling or redrilling within the corporate limits of the City of 7 Bridgeport without having obtained a permit for said drilling or redrilling under this chapter. 8 (b) It is hereby declared a nuisance for any person to conduct any drilling operations within one 9 thousand (1,000) feet of the property line of any school of the Bridgeport Independent School District without 10 the prior written consent of the board of trustees of said district, or within one thousand (1,000) feet of 11 the property line of any parochial school without the prior written consent of the board of trustees or other governing body of said parochial school. It is hereby 12 declared a nuisance for any person to conduct any drilling operations within one thousand (1,000) feet of 13 a property line of any hospital, convalescent home, orphanage or nursing home located within the city limits of the City of Bridgeport without prior written consent 14 of the owner or owners thereof. It is hereby declared a nuisance for any person to conduct any drilling or 15 redrilling operation outside the city limtis of the City of Bridgeport closer than one thousand (1,000) feet to 16 any occupied structure other than a school, hospital, convalescent home, orphanage, or nursing home located 17 within such city limits without obtaining a permit for said drilling or redrilling under this chapter. 18 (c) It is hereby declared a nuisance for auy person to constr~lct any storage tank or tanks within one 19 thousand (1,OOO) feet of the property line of any school of the Bridgeport Independent School District without 20 the prior written consent of the board of trustees of said district or within one thousand (1,000) feet of the property line of any parochial school without the 21 prior written consent of the board of trustees or the governing body of said parochial school or within one 22 thousand (1,O00) feet of any hospital, convalescent home, orphanage or nursing home located either within or 23 outside the city limits of Bridgeport without the prior written consent of the owner or owners thereof. 24 25 7 26 3 Sec. 13-3. Review and action on permit application; approval or disapproval of operations. 4 It shall be the responsibility of the City Council to review impartially and to approve or disapprove all 5 applications for drilling permits. The Council, based upon the criteria established herein, may require the 6 applicant for a permit hereunder to do those things necessary to insure the health, safety, and welface of 7 the citizens of the City. The decision of the Council shall be final. The chief building official is hereby authorized to approve or disapprove the actions of the 8 permittee not otherwise covered by the permit application during the drilling and post-drilling 9 operations in accordance with the terms of this chapter only. 10 Sec. 13-4. Form of permit application; permit fee. 11 (a) Applications for permits to drill or redrill any oil or gas well shall be made in writing to the City 12 Council and shall include the following: 13 (1) The legal description of the proposed drill site and the legal description of the real property in the city which the applicant proposes to explore for oil 14 and gas purposes. A map shall be attached to the application, which map shall clearly show and outline 15 the proposed drill site with reference to existing city street or city limits. 16 (2) A statement of what property the applicant 17 has the right, by reason of ownership or permission of the owner, to pass through and enter for drilling purposes and a further statement-that the applicant 18 agrees, in finally locating the well, not to pass - through or enter any property where he does not have 19 such right. 20 (3) The proposed location, type, kinds, size, and amount of major equipment and a general description and the method of operation of the proposed well. 21 (4) The proposed method of handling and using a~]y 22 product proposed to be.developed at the well site and the proposed method of disposing of all waste products 23 anticipated. 24 (5) A statement from a licensed surveyor or 25 8 26 3 registered professional engineer verifying the drill site as being either an urbanized or a non-urbanized 4 'drilling site as defined herein. (b) Each application shall state the maximum 5 depth to which the applicant desires to drill, and each application shall be accompanied by an application £ee 6 of ten cents ($0.10) per foot of depth. The maximum fee for any one well shall be one thousand dollars 7 ($1,000.00). Should the applicant drill to a greater depth than that stated in his application, a supplement- al fee shall be required based upon the increased depth. 8 Sec. 13-5. Engaging an expert to assist official 9 on permit applications. 10 The City Council is authorized to engage a person qualified in petroleum engineering, petroleum geology, 11 or the oil industry as necessary to determine whether to issue or deny a permit and to assist in the writing of a permit. When funds are sufficient, payment for such 12 services is to be made from the permit fees received hereunder. 13 Sec. 13-6. Bond required; amounts, conditions. 14 Prior to the issuance of any permit hereunder, the applicant shall furnish the City with a bond in the 15 principal sum of fifty-thousand dollars ($50,000.00) per drill site. Such bond shall be executed by an insurance 16 company authorized to do business in the state, as surety, and with applicant as principal, naming the City 17 for the benefit of the City conditioned that the permittee will comply with the terms and conditions of this chapter. I~ addition, the bond will be conditioned 18 _ that the applicant will promptly pay fines, penalties and other assessments imposed upon applicant by reason 19 of the breach of any of the terms, provisions and conditions of this chapter, and that the applicant will 20 promptly restore to their former condition streets, sidewalks, and other public property which may be damaged iu drilling operations; and that the applicant 21 will comply with all fencing, screening and site restoration requirements of this chapter. If at any 22 time the City should find the applicant's bond to be insufficient for any reason, it may require the appli- 23 cant to file a new bond. 24 25 9 26 3 Sec. 13-7. Reduction of amount of bond. 4 Upon written request from a permittee, who has complied with all the provisions of this chapter, the 5 chief building official may permit a reduction of the permittee's bond to a sum of not less than ten thousand 6 dollars ($10,000.00) per drill site for the remainder of the time such well produces. ? Sec. 13-8. Insurance required; types, amounts. 8 Prior to issuance of any permit hereunder, applicant shall furnish the chief building official 9 with a certificate of insurance showing a valid policy or policies of public liability insurance, covering 10 bodily injuries and property damage. Said insurance shall be written by a company authorized to do business 11 in this state. Such policies shall provide for the following minimum coverage: 12 (1) Bodily injuries and general liability one occurrence: $1,000,000.00 13 (2) Property damage: $500,000.00 14 Sec. 13-9. Waiver of bond and insurance to financially responsible person. 15 The chief building official may waive the requirements 16 for surety bond and policies of insurane as required herein as to any permittee who is financially respon- 17 sible and capable of meeting obligations for amounts in excess of seven million, five hundred thousand dollars ($7,500,000.00) upon permittee filing with the Chief 18 building official in lieu of any such surety bond or insurance policies a letter of acceptance and indemnity 19 approved by the city attorney, binding and obligating such p~rmite~ to abide by the conditions for which 20 surety bond and insurance policies are required as prescribed herein, and agreeing to indemnify and hold the City harmless from any and all liability growing out 21 of or attributable to the granting of any and all per- mits to such permittee including acts or omissions of 22 the City, its officers,.agents, and employees in connec- tion with said drilling permit. 23 Sec. 13-10. Minimum distance of well-hole from 24 occupied structure. 25 10 26 2 3 In each case of drilling or redrilling, the 4 distance from any well-hole to any occupied structure shall be a minimum of three hundred (:200) feet, unless permittee obtains written consent from the owners and 5 tenants or' said occupied structure and furnishes said written consent to the City Council prior to issuance of 6 said permit. 7 Sec. 13-11. Minimum distance of storage tank in conjunction with well from occupied 8 structure. In each case the distance from any storage tank or 9 tanks in conjunction with any well to any occupied structure shall be a minimum of two hundred (200) 10 feet. 11 Sec. 13-12. Minimum distance of well-hole and tanks from streets. 12 In each case the distance from the center of a well-bole dri.~[led under a permit issued under this 13 chapter and from all storage tanks installed after the effective date of this Ordinance to the nearest 14 travelled public or private street right-of-way shall be a minimum of one hundred (100) feet. 15 Sec. 13-13. Vehicular access route to site. 16 A vehicular access route to the site may be estab- lished at the discretion of the chief building official 17 after consideration of all of the circumstances in- cluding but not limited to the existing width, load- bearing capability, and composition of all streets pro- 18 posed to be included in the access route; residential densities; potential interference with pedestrian and 19 bicycle traffic; the presence of effective traffic con- trol; and 'the general character of the areas through 20 which the proposed access route would pass. 21 Sec. 13-14. Compliance with permit as to drilling location and as to operations. 22 The oil or gas well drilled pursuant to any drilling permit shall be drilled only within the 23 properties which the permittee set forth in its application as the properties through which such well was proposed to pass unless the permittee secures 24 25 11 26 3 approval of the chief building official to cause such well to pass through other properties. 4 No permittee shall drill, operate, or maintain any oil or gas well except in conformity with the terms and 5 conditions of a permit issued under this chapter. 6 Sec. 13-15. Representative operations supervisor. 7 The applicant or permittee shall designate a competent representative who shall be responsible for 8 the supervision of drilling operations and the carrying out of the conditions of any permit. Such representa- tive shall be available at all times during drilling 9 operations and shall be the responsible contact agent of the applicant or the permittee whom the chief building 10 official may require to carry out the provisions of the permit. 11 Sec. 13-16. Marking well location; road and ground 12 surfacing. (a) The well location shall be clearly marked by 13 staking or other suitable means and identified as the "drill site." 14 (b) Prior to commencement of any drilling operations all private roads used for access to the 15 drill site and the drill site itself shall be surfaced so as to prevent excessive dust and mud and in a manner 16 adequate to support the weight of mobile fire-fighting equipment. Sur[acing may be by boards, rock, gravel, 17 shell, or any other material that is oiled and main- tained so as to prevent excessive dust and mud. 18 Sec. 13-17. Permit transfer approval. 19 Ail permits granted under this chapter shall be transferable upon approval of the City Council, after a 20 determination that all requirements of this chapter are met by the transferee. 21 Sec. 13-18. Lapse of permit - Time; work without permit prohibited. 22 The d~illing permit shall become null and void 23 unless the permit is accepted by the applicant in its entirety in writing, filed with the city secretary within thirty (30) days from the effective date thereof, 24 25 12 26 3 and no work on such drill site shall be commenced until such permit is issued and accepted. The drilling permit 4 ghall become null and void unless drilling is commenced within one hundred eighty (180) days of the effective date of the permit. 5 Sec. 13-19. Same--Extension of time. 6 Whenever a person holding a permit pursuant to the 7 provisions of this chapter wishes to request an exten- sion of the time within which drilling operations are required to be commenced to a period beyond one hundred 8 eighty (180) days after the effective date of the per- mit, a request for such extension shall be filed with 9 the city secretary in writing within one hundred fifty (150) days after the effective date of the permit and be 10 accompanied by a fee in the amount of one hundred twenty-five ($125.00) dollars for each well for which an 11 extension is requested. Such request for an extension shall set fort[] facts showing good cause for the City Council to allow 12 additional time for the commencement of the well. When good cause [s shown, the City Council may grant an 13 extension not to exceed an additional one hundred eighty (180) days. 14 Sec. 13-20. Indemnification of city for damages. 15 The permittee shall indemnify and save harmless the City, its officers, agents and employees from any 16 and all claims, causes of action and damages of every kind, for injury to or death to any person and damages 17 to property arising out of the operation under any drilling permit and including acts or omissions of the City, its officers, agents, and employees in connection 18 with said drilling permit. 19 Sec. 13-21. Filing of "Potential" or "Plug and Abandon" report. 2O A copy of the "Potential" or "Plug and Abandon" report of any well furnished to the Texas Railroad 21 Commission shall be concurrently filed by the permittee with the city secretary. 22 Sec. 13-22. Storage of equipment and materials 23 restricted. 24 (a) No equipment shall be stored on the site 25 13 26 ~ 2 which is not (~ssential to the everyday operation of the 3 oil well located thereon. 4 (b) Lumber, pipes, and casing shall not be left on the site, except when drilling operations are being 5 conducted on the site. 6 (c) No equipment shall be stored except with the fenced areas of the site. 7 Sec. 13-23. Compliance with regulations as to slush pits. 8 The slush pit or pits at each drilling site shall 9 at all times be in compliance with all state and federal requirements. 10 Sec. 13-24. Fencing of site. 11 ia) Within thirty (30) days after production has been established, the permittee shall enclose the well, 12 together with its surface facilities and storage tanks by a substantial, smooth eleven (11) gauge or heavier 13 galvanized steel net wire fence a minimum of six (6) feet in height and provided with barbed wired supporting arms and a minimum of three (3) strands of barbed wire 14 installed at 'the top of each post and properly built so as ordinarily to prevent the entry of unauthorized 15 persons into the enclosure, with all gates thereto to be kept locked when the permittee or his employees are not within the enclosure. This applies also to each 16 existing producing drill site in the city together with its surface facilities and storage tanks. 17 (b) Wells which when in operation have no 18 externally moving parts are excepted from the fencing - requirements of this section; however, all storage tanks 19 and surface facilities must be fenced as required herein. 20 Sec. 13-25. Landscaping or screening of site. 21 ia) Within ninety (90) days after production has been established on an urbanized drill site containing a well, 22 tl~e p~rmittee shall have completed adequate leveling and mowing so as to protect the public and surrounding property oilers from the 23 presence of an ~.~pleasant site. 24 25 14 26 3. ~' Such required 4 'leveling. and. mowing -,.,j; is subject to the approval of the chief building official concerning its adequacy in meeting the requirements of this section. Said 5 leveling and mowing must be maintained so as to be. pleasant to the public view so long as 6 production continues on the drill site. This applies also to existing producing urbanized drill site in the 7 city containing a well which when in operation has externally moving parts. 8 (b) Wells which when in operation have no externally moving parts are excepted from the fencing 9 requirements of this section; however, all storage tanks and surface facilities must be fenced as required 10 herein. 11 (c) The City Council may waive the provisions of this section upon application and public hearing. 12 Sec. 13-26. Noise, vibration, odor, etc., restricted. 13 (a) All drilling and production equipment installed or operated upon any drill site shall be so constructed, operated and maintained that no noise, 14 vibration, odor, or other harmful or annoying substances or effects therefrom which can be eliminated or 15 diminished by the use of modern and approved types of equipment silencers, or greater care shall ever be per- 16 mitred to result from operations on any drill site to the injury or annoyance of persons in the vicinity of such drill site. Proven technological and mechanical 17 improvements in methods of drilling and production and in the type of equipment used therefor shall be adopted 18 from time to time, as the same become available, if the use of such equipment, improvements, and methods will 19 reduce noise, vibration, odors, or the harmful effects of annoying substances. 2O (b) The engines used in connection ~it}] the dril- ling of any oil well or any production equipment shall 21 be equipped with an exhaust muffler or mufflers, or an exhaust muffler box, sufficient to suppress noise and to 22 prevent the escape of obnoxious gases, fumes, sparks, ignited carbon, or soot. Type and design of any muffler 23 or muffler box shall be approved by the chief building official and by the fire chief or his authorized repre- sentatLve. 24 25 15 26 2 3 (c) At an urbanized drilling site, the operation of oil field production equipment shall not increase the 4 ambient noise level at any given time by more than three (3) decibels in any octave band, when measured at a 5 distance of one hundred fifty (150) feet from the oil field production equipment in question. The ambient 6 noise level, for the purpose of this section, shall be the average of sound level meter readings taken 7 consecutively at any given time from four (4) or more diametrically opposite positions within an area of not more than five hundred (500) feet nor less than two 8 hundred (200) [eet from the oil field production equipment in question; all such readings to be taken at 9 a distance and in a manner so as to obtain the surrounding noise level as distinguished from the noise 10 level produced by the oil field production equipment. However, if the ambient noise level is less than seventy 11 (70) decibels, the production equipment shall not generate a noise level in excess of seventy (70) decibels measured at a distance of one hundred fifty · 12 (150) feet from such equipment. 13 (d) At a non-urbanized drilling site, the operation of oil[ field production equipment shall not generate a noise level in excess of eighty (80) decibels 14 at a distance of one hundred fifty (150) feet from said production equipment. 15 Sec. 13-27. Neatness, cleanliness, order; fire- 16 fighting equipment. (a) Ali of the operations at the drill site shall 17 be conducted in a careful and orderly manner, and the premises shall at all times be maintained in a neat, 18 clean, a~d orderly manner. 19 (b) Ail fire-fighting equipment as required and approved by federal statutes shall be installed and 20 maintained on the drill site at all times during drilling operations. In addition, each drill site shall, durin~ drilling operations, be equipped with 21 either two (2) one }ihndred fifty (150) bound dry Chemical '{ire extinguishers%(~ipped withwheels and als0 equipped with fifty 22 (50) feet of hose on each unity or fire extinguishing equipment which meets OSHA regulations. 23 Sec. 13-28. Watchman. 24 At all times during the drilling process ~]til the 25 16 3 well is abandoned and plugged or completed as a producer and enclosed with a fence as herein provided, the 4 'permittee shall keep a watchman on duty on the premises; provided, however, it shall not be necessary to keep a watchman on duty on the premises when other workmen of 5 permittee are on such premises. 6 Sec. 13-29. Casing quality. 7 (a) All casing, including surface protection and production strings, shall be new seamless steel oil well casing. Each production string of casing must 8 meet or exceed the minimum internal pressure yield strength by hydrostatic testing standards established by 9 the American Petroleum Institute and have the API monogram on each joint. 10 (b) If used seamless steel oilwell casing is to 11 be used, each joint and length of each particular casing string shall have prior to setting unconditionally passed a complete hydrostatic testing process as pre- 12 scribed by the American Petroleum Institute standards and the chief building official shall be furnished a 13 copy of said test results. Sec. 13-30. Minimum depth of surface casing; 14 cementing of casing. 15 No well shall be drilled within the city limits without properly setting surface casing to a minimum 16 depth of one hundred (100) feet below the fresh water depth required by state law. No well shall be drilled within the city limits without cementing the 17 surf~ace casing by the pump and plug method with sufficient cement to completely fill all of the annular~ 18 space behind such casing to the surface of the ground; - and without cementing the production string by the pump 19 and plug method with sufficient cement to completely fill all of the annular space behind the production 20 string to at least five hundred (500) feet above the highest oil and/or gas bearing horizon. In the event a protection string of casing be required under the terms 21 of this chapter, said protection string shall not be installed without cementing the protection string by the 22 pump and plus method with sufficient cement to completely fill all the annular space behind the 23 pcotection string to at least give five hundred (500) feet above the highest oil and/or gas bearing horizon. 24 25 17 26 3 Sec. 13-31. Master valves, valve cocks, blow-out preventers. 4 No well shall be drilled within the city limits without properly equipping the surface casing when set 5 with at least one (1) master valve, and without properly equipping the protection casing when set with at least 6 one (1) master valve and one (1) fluid-operated ram type blow-out preventor, and without properly equipping the 7 product[on casing during completion operations and workover operations with at least one master valve and at least one fluid-operated ram type blow-out preventer. 8 On each well drilled a valve cock or kelly cock shall be installed on the kelly used. Each blow-out preventer 9 shall test a minimum of thousand ( ,000) pounds and its mechanical operation shall be tested at least 10 once every twenty-four (24) hour period. All control equipment shall be in good working condition and order 11 at all times. Sec. 13-32. Drilling fluid. 12 No well shall be drilled within the city limits 13 without using mud as the drilling fluid after the setting of surface casing as provided in Section 13-30 hereof. Prior to the time the well reaches a total 14 depth of five thousand (5,000) feet or the depth of the '~irst known or encountered oil or gas bearing horizon 15 whichever is the lesser depth, the weight of the mud laden drilling fluid shall be at all times maintained at 16 a weight sufficient to contain the formation pressure. After the well reaches a total depth of five thousand (5,000) feet' or the depth of the first known or 17 encou~tered oil or gas bearing horizon, whichever is the lesser depth, the weight of the drilling fluid shall be 18 maintained to provide a hydrostatic head necessary to - contain the formation pressure. In reworking a well the 19 drilling fluid shall be at all times maintained at a weight that will provide a hydrostatic head necessary to 20 contain the formation pressure. Sec. 13-33..Testing restrictions. 21 Any person in connection with the drilling or reworking 22 operations of any weI1 within the city limits will ~ake a diligent effort to complete any drill stem test or tests during dayli~ght 23 hours and then if possible the well effluent during the test 'should be ~roduced through an~ adequate oil and gas separator'to 24 storage tanks or appropiate~,alternate method and the 25 18 26 3 efflueut .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. 4 Sec. 13-34. Tubing quality. 5 All tubing used in any well within the city limits 6 shall be seamless steel tubing or an premium grade of ERI.V80 we~tded tubing manufactured by Lone Star, A'nnco, .US Steel or 7 Equivent Premiun Tubing Manufacture;' " Sec. 13-35. Bradenheads. 8 Each well drilled within the city limits shall be 9 equipped with a bradenhead with a working pressure sufficient to contain the fOrmation pressure. 10 Bradenheads shall not be welded. The bradenhead pressure shall be checked at two (2) or more times each 11 calendar year and if pressure is found to exist, proper remedial measures shall be immediately taken to eliminate the source and the existence of the pressure. 12 Sec. 13-36. Christmas tree and well head connection 13 maintenance; safety valve. The Christmas tree and all well head connections 14 on each well existing within the city limits and on each well drilled pursuant to a permit under this section 15 shall be maintained so as to operate safely. If a a Christmas 'tree or a well connection is found to be 16 leaking or otherwise defective, the chief building official may immediately revoke the permit. In the event the surface shut-in pressure of any well in the 17 city limits exceeds two thousand (2,000) pounds per square inch, the flow wing of the Christmas tree shall 18 be equipped with an automatic closing safety valve in ~ addition to the regular control valves. In any event all 19 master and wing valves will be backed up by another valve in case of malfunction. Ail valves shall be new 20 not rebuilt, and have a 2,000 pound minimum working pressure. 21 Sec. 13-37. Compressor station shutdown devices and other precautionary measures. 22 The compressor station on each well existing within the city limits and on each well drilled pursuant 23 to a permit under this section shall be equipped with an automatic shut-down device which shall be clearly marked 24 25 19 26 3 and visible at all times. The compressor station and all pipes and valves connected thereto must meet or 4 'exceed the minimum internal pressure yield strength established under Americaa Petroleum Institute standards and shall have prior to installation unconditionally 5 passed a complete cold water test. All compressor stations shall be checked a minimum of once each three 6 (3) months and the result of said check shall be sent to the chie£ buildiag official upon request. Failure to 7 comply with this section shall result ia immediate cancellation of the drilling permit issued hereunder. 8 Sec. 13-38. Tank restrictions and requirements. 9 Except as provided in Section 13-11 herein, within one thousand (1,OOO) feet of any occupied structure a 10 maximum of two (2) five hundred (500) barrel tanks for crude oil storage may be constructed in connection with 11 any one producing well within the city limits. There shall be no limitation on the size or number of storage tanks tha~ may be constructed in the area more tha~ one 12 thousand (1,000) feet from any occupied structure. Each tank shall be equipped with flame arrestors and shall be 13 so coastructed and maintained as to be vaportight. Each tank or tank battery shall also be surrounded with aa 14 earthen fire wall which shall at all times be free of vegetation and which shall be at such distance from ~he tank as will under any circumstances hold and retain at 15 least one and one-half (1 1/2) times the maximum capacity of such tank. The area outside each tank but 16 contained within the earthen fire wall shall be properly drained at all times. A permittee may use, construct, 17 a~d operate a steel conventional separator, and such other steel tanks and appurtenances as are necessary for treating oil, with each of such facilities to be so 18 constructed and maintained as to be vaportight. Each oil gas separator shall be equipped with both a 19 regulation pressure relief safety valve and a bursting head. 20 Sec. 13-39. Plugging of abandoned wells. 21 When a well is abandoned it shall be the obligation of the permittee and the operator of the well 22 to plug said well in accordance with the requirements of the Texas Railroad Commission. 23 Sec. 13-40. Disposal of salt water. 24 25 20 26 3 .Fh~ permittee shall make adequate provision for the disposal of all salt water or other impurities which 4 ~e may bring to the surface. Disposal shall be made in a manner that wiI1 not contaminate the water supply, present or prospective, or injure surface vegetation. 5 Sec. 13-41. Monitoring official. 6 A well site official to be designated by the 7 chief building official shall be responsible for the monitoring of drilling and production activities both at 8 scheduled intervals and at any other times he may deem necessary to ensure the public safety and to ensure compliance with the terms of this chapter. 9 Sec. 13-42. Time restriction on delivery of equipment 10 and supplies. 11 Whenever practicable on an urbanized drilling site all delivery of equipment and supplies to the drill site shall be made only on Monday through Saturday between 12 the hours of 8:00 a.m. and 6:00 p.m. This requirement shall not apply to drilling operations being conducted . 13 in a non-urbanized area. 14 Sec. 13-43. Transportation of oil and gas restricted. When production has been established in any new 15 well, the construction of a pipeline shall be started as soon as practical and economically feasible and thereon 16 diligently prosecuted until such pipeline is completed in order to eliminate the trucking of oil. All oil and 17 gas shall be shipped and transported through pipelines after those pipelines have been completed, except in cases in which such a method of transportation is found 18 ~ by the chief building of'~icial to be unfeasible. In such cases the shipping and transportation of oil by 19 truck may be permitted at the discretion of the chief building official after consideration of all the 20 circumstances including but not limited to the proximity of the well to existing and available pipelines, the availability of acceptable access routes to the drill 21 site, and the frequency and size of transportation vehicles required to serve the well. In the instan~e of 22 an oil spill, permitte~ may bring in a vacuum truck to clean said spill without the necessity of obtaining 23 permission from the chief building official. 24 Sec. 13-44. Producing or nonproducing status of well. 25 21 26 3 If a well is placed in production, it shall be 4 ~nspected periodically by the chief building official in accordance with the requirements of this chapter. A notification of status change from producing well to 5 abandoned well shall become necessary for any well which has not produced, or which has not been used for 6 subsurface injection into the earth of oil, gas, salt water, or oil field waste for a period of nine (9) 7 months, unless permission to hold said well for a longer period of time is obtained from the Texas Railroad 8 Commission. The operator shall upon request of the chief building o.[ficial furnish verification of production for the purposes of this section. 9 Sec. 13-45. Well abandonment requirements; removal of 10 derricks when production started. 11 If a well is to be abandoned, the following requirements are applicable: 12 (1) Within ninety (90) days after 'the completion of drilling operations or abandonment of further 13 drilling, the derrick and all drilling equipment, including temporary tanks, shall be removed from the 14 drill site. Well abandonment shall be in accordance with the requirements of all applicable laws and ordinances. Upon such well abandonment, the permittee 15 shall restore the property as nearly as possible to its original conditions and shall remove all concrete 16 foundations, oil-soaked soil, and debris. All holes or depressions shall be filled to the natural surface. 17 (2) Drilling operations shall be prosecuted in a workmanlike manner until the well is completed or 18 abandoned. Once a well is a producing well, it shall not be serviced with a permanent derrick. 19 (3) The chief building official shall determine 20 that the drill site and all facilities pertinent thereto have bee~ 'restored to their original condition as nearly as practicable and that all requirements of this section 21 have been satisfied. 22 (4) After abandonment of a well by the operator, ~he drilling permit will be terminated if, to the 23 satisfaction of the chief building official, all the conditions stated in this chapter have been fulfilled. 24 25 22 26 2 3 Sec. 13-46. Violations; suspension or revocation of permit, appeals. 4 Any drilling permit may be suspended or revoked for any naterial violation of the conditions of the 5 permit by the permittee or for persistent violation of any law by the permittee in the operation of any such 6 well. The chief building official shall not revoke any permit without first giving the permittee ten (10) days' written notice of the nature of the violations and the ? intention to revoke such permit. 8 If, within such ten (10) day period, the permittee requests a hearing before 9 the chief building official, the chief building official shall grant such hearing within fifteen (15) 10 days after the date of such request. At such hearing, evidence shall be presented to establish to the 11 satisfaction of the chief building official the extent and nature of the violation which constitutes grounds for the revocation, and permittee shall be given an 12 opportunity to cross-examine all witnesses testifying at such hearing. The permittee shall thereafter be 13 permitted at that hearing, or at a continued hearing, if a continuance is requested by the permittee, to present evidence to disprove or explain such alleged violations. 14 The chief building official shall thereupon, after hearing all the evidence, determine whether or not the 15 permit should be revoked, and his determination thereon shall be final. If the chief building official 16 determines that the permit should be revoked, permittee may appeal the decision of the chief building official to the building board of adjustment and appeals in 17 accordance with the ordinances of the City. In the ' event that the building board of adjustment and appeals 18 determines that said permit should be revoked, permittee . - shall have recourse to the appropriate courts of this 19 state to review such action by said building board of adjustment and appeals and the substantial evidence rule shall apply. 2O Sec. 13-47. Penalty. 21 Notwithstanding any other provisions herein 22 contained violations of the provisions of this chapter shall be punishable by a fine of not to exceed two hundred dollars ($200.00). A separate offense shall be 23 deemed committed on each day an offense occurs or continues." 24 25 23 3 Sec. 3. THAT if any section, paragraph, subdivision, clause, 'phrase, or provision of this chapter shall be adjudged 4 invalid or held unconstitutional, the same shall not affect the validity of this chapter as a whole or any 5 part or provision thereof other than the part so decided to be invalid or unconstitutional. 6 AND IT IS SO ORDERED. 7 Passed and adopted by the City Co.uncil of the City of Bridgeport, (f---- day o~ . ~/~Z~ ~- , l~.. Texas this 8 CITY OF BRIDGEPORT 10 11 ', .... AT'rEST · 14 Patsy 'S~des City Secretary 15 Applied as tr~-[or~ and legality' C~ty ~tt~rney 18 2O 21 22 23 24 25 24 ~ 26