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HomeMy WebLinkAboutORD 08-027 ORDINANCE NO. 08-027 ENTITLED AN ORDINANCE AMENDING CHAPTER 19, SECTIONS 19-1, 19-2, CAPTIONS 19-3, 19-4 AND 19-5, SECTIONS 19-6, 19-8, 19-9, 19-19, 19-46, AND TO ADD NEW SECTIONS 19-47, 19-48,19-49,19-50, 19-51,19-52, 19- 53, 19-54, 19-55, 19-56, 19-57 AND 19-58; OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT PROVIDING FOR SEISMIC TESTING; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING FOR A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT Chapter19, Section 19-1, of the Code of Ordinances of the City of Beaumont be and it is hereby amended to read as follows: Sec. 19-1. Definitions. For the purpose of this chapter, all technical or oil and gas industry words or phrases used herein and not specifically defined herein shall have that meaning customarily attributed to them by the oil and gas industry. The following words and terms wherever and whenever used or appearing in this chapter shall have the scope and meaning hereinafter defined and set out in connection with each: Applicant: Any person who applies for a drilling or seismic testing permit hereunder. Approved, approvedtype, or approved design: Improvements, equipment orfacilities of a type or design approved by the building official. Building code: The portion of this Code or any ordinance of the city known by that title and all amendments thereto. Building permit: The permit required by the building code. Completion ofdrilling:Awell is completed,forthe purpose of these regulations,thirty (30) days after the drilling crew has been released. The drilling crew is released within the meaning of this paragraph when work at the wellsite for drilling or completing the well is suspended, either temporarily or permanently. Derrick: Any structure, improvement, equipment, or facility, 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 maintaining a well for the production of oil, gas or other hydrocarbons from the earth, together with all parts of and appurtenances to such structure, improvement, equipment, or facility, including, but not limited to,foundations and sills therefor, pumphouses, engine-houses, or housings, pipe-racks, postings, walkways, mud-ditches, and crown block. Designated agent: The designated agent of applicant or permittee. 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 drill site at all reasonable times. Drill site: The premises used during the drilling and subsequent life of a well orwells, which is necessary for the safe operations thereof. 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. Erect: To build, construct, install, assemble, put together, improve, alter, move, reconstruct, restore, renovate, renew or repair any building, structure, improvement or facility, or any part or portion thereof or foundations therefor, or appurtenance thereto, whether or not such building, structure, improvement or facility is completed, or to work upon, or in any way assist in such erection. Flammable liquids: Oil and other fluid hydrocarbons, including liquefied gases or otherflammable liquids, having a flash point belowtwo hundred(200)degrees Fahrenheit. The flash point of all commodities shall be determined by the Elliot,Abel, Abel-Pensky, or Tag closed cap testers, but the Tag closed cap tester, standardized by the National Institute of Standards and Technology, shall be authoritative in case of dispute. All tests shall be in accordance with the methods adopted by the American Society for Testing Materials, and approved by the American National Standards Institute,or their successors. Gas: The gaseous components or vapors occurring in or derived from petroleum or natural gas. Lessee: The possessor of the right to explore and recover minerals from the premises. Lessor. The owner of mineral rights. Maintain: To repair, or otherwise keep or place 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 upon which the same were or are being drilled, erected or installed, until the following tasks are accomplished: (1) Every part of such derrick and production equipment shall be removed from the drill site. (2) All requirements for abandonment established by the state and any other regulatory authority having jurisdiction must be met. (3) All sumps, cellars, rotary mud, concrete, oil and rubbish must be removed and the drill site cleaned and all ditches must be leveled. (4) All property of the city which may have been disturbed or damaged by the operations at the drill site shall be repaired and cleaned as needed and restored to substantially the same condition as existed at the time of the issuance of the permit. Maintenance: The repair and replacement of parts of a structure when the repair or replacement does not alter or lessen the strength or stability of the structure. Non-urbanized drilling site: A drill site shall 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. Occupied structure: Only those structures that are regularly occupied by persons at least twenty (20) hours per week. Oil: Petroleum and other fluid hydrocarbons obtained from the earth. Operate: To work or act upon, or to cause or permit natural or artificial forces to function in connection with any structure, plant, equipment, machinery, or facility with the purpose of utilizing the same for the purpose for which it was or is erected or maintained, or for any other purpose, and when used with 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 well,well-hole,derrick or production equipment from and after the completion of the drilling of the well, for the purpose of producing or obtaining oil, gas, or other hydrocarbons from the ground, and for the purpose of collecting and handling the same and making deliveries thereof at the well or from the shipping tanks or lease tanks in the vicinity of the well. "Operate" includes all functions performed or permitted to occur in connection with such production, collection, handling and delivery, including the repair, reconditioning, restoration,perforating, redrilling or deepening of said well orwell-hole,and the dehydration or cleaning of said oil prior to making such deliveries as aforesaid. Operator. The person, whether owner, lessee, or independent contractor, actually in charge and in control of the drilling, maintenance, operation or pumping of a well or lease. Owner. A person who has legal or equitable title to the surface of the drill site. Peak particle velocity:The maximum rate of ground movement measured by any of the 3 mutually perpendicular components of ground motion. Permitordrilling permit.The written,typed or printed permission issued to applicant by the building official under the authority of this chapter. Permittee: Any person to whom a permit has been granted and issued under and pursuant to the terms of this chapter by the building official. Person: An individual; a receiver; a trustee; a partnership; a joint adventure; a firm; an unincorporated association; a syndicate; a club;a society; a trust; a private corporation; a public corporation; a municipal corporation; a county, a state, or national government; a commission; a water district; a utility district; a political subdivision; and a drainage, irrigation, levee, reclamation, flood control, or water conservation district, whether acting for himself or itself or in any representative capacity. Point of impulse: The location of the source of energy used in seismic testing. This definition shall include energy caused by detonation of explosive charges or through the use of mechanical devices such as vibratory trucks, if approved by the City. Production equipment. Pumping equipment,tubing,pipes, gauges,meters,valves, oil and gas separators, sumps, flow tanks, production tanks, shipping tanks, lease tanks, shipping pumps, loading racks and all other structures, machinery,equipmentand facilities, and each and every part thereof, whether completed or not, required for or used or useful in connection with the operation, repair, reconditioning, redrilling or maintenance of a well or well-hole, and the collection, handling and delivery of oil, gas or other hydrocarbons therefrom, and which structures,machinery,equipment and facilities are not included in the "derrick", "well',or"well-hole",as heretofore defined."Production equipment"also includes any wash tanks, dehydration plant or other equipment or facility operated or maintained by or in behalf of the operator of said well for the purpose of separating sand,water and other foreign substances from the oil, gas or other hydrocarbons produced or obtained by said operator, prior to shipping or delivering said oil from the shipping tanks or lease tanks at the well, or in the vicinity thereof. Redrilling: The deepening of an existing oil well or otherwise drilling beyond the extremities (to the side) of the existing well casing. The provisions of this chapter relating to drilling shall be equally applicable to redrilling. Structure: That which is built or constructed; a tank, edifice, or building of any kind. Suspended operations: The approved temporary suspension of drilling or redrilling operations pending a resumption of operations or abandonment. Tank: A container, covered or uncovered, used in conjunction with the drilling or production of an oil well, for holding or storing liquids at or near atmospheric pressure. Urbanized drilling site:A drill site shall be considered urbanized where an occupied commercial, residential or industrial structure exists within one thousand (1,000)feet of the proposed well-hole. Well head: A well head is composed of the casinghead, Christmas tree and all well connections. Section 2. THAT Chapterl9, Section 19-2, of the Code of Ordinances of the City of Beaumont be and it is hereby amended to read as follows: Sec. 19-2. Permit required (drilling or seismographic testing); acts constituting nuisances. (a) No person shall conduct any drilling, redrilling or seismic testing within the corporate limits of the City of Beaumont without having obtained a permit for said drilling, redrilling or seismic testing under this chapter. (b) It is hereby declared a nuisance for any person to conduct any drilling operations within one thousand (1,000) feet of the property line of any school of the Beaumont Independent School District without 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 or charter school without the prior written consent of the board of trustees or other governing body of said schools. It is hereby declared a nuisance for any person to conduct any drilling operations within one thousand (1,000) feet of a property line of any hospital, convalescent home, orphanage or nursing home located within the city limits of the City of Beaumont without the prior written consent of the owner or owners thereof. It is hereby declared a nuisance for any person to conduct any drilling or redrilling operation outside the city limits of the City of Beaumont closer than one thousand (1,000) feet to any occupied structure otherthan a school, hospital,convalescent home, orphanage,or nursing home located within such city limits without obtaining a permit for said drilling or redrilling under this chapter. (c) It is hereby declared a nuisance for any person to construct any storage tank or tanks within one thousand(1,000)feet of the property line of any school of the Beaumont Independent School District without the prior written consent of its board of trustees, or within one thousand (1,000) feet of the property line of any parochial or charter school without the prior written consent of the board of trustees or the governing body of said schools orwithin one thousand(1,000)feet of any hospital,convalescent home,orphanage or nursing home located either within or outside the city limits of Beaumont without the prior written consent of the owner or owners thereof. Section 3. THAT Chapter19, Sections 19-3, 194 and 19-5, of the Code of Ordinances of the City of Beaumont be and are hereby amended to amend the captions to read as follows: Sec. 19-3. Review and action on drilling or redrilling permit application; approval or disapproval of operations. Sec. 19-4. Form of drilling permit application; permit fee. Sec. 19-5. Notification for drilling permits. Section 4. THAT Chapter19, Section 19-6, of the Code of Ordinances of the City of Beaumont be and it is hereby amended to read as follows: Sec. 19-6. Bond required; amounts, conditions. Prior to the issuance of drilling or redrilling permit hereunder, the applicant shall furnish the building official with a bond in the principal sum of seventy-five thousand dollars ($75,000) per drill site. Such bond shall be executed by an insurance company authorized to do business in the state, as surety, and with applicant as principal, naming the city for the benefit of the city conditioned that the permittee will comply with the terms and conditions of this chapter. In addition, the bond will be conditioned that the applicant will promptly pay fines, penalties and other assessments imposed upon applicant by reason of the breach of any of the terms, provisions and conditions of this chapter, and that the applicant will promptly restore to their former condition streets, sidewalks, and other public property which may be damaged in drilling operations; and that the applicant will comply with all fencing, screening and site restoration requirements of this chapter. If at anytime the building official should find the applicant's bond to be insufficient for any reason, he may require the applicant to file a new bond. Section 5. THAT Chapter 19, Section 19-8, of the Code of Ordinances of the City of Beaumont be and it is hereby amended to read as follows: Sec. 19-8. Insurance required; types, amounts. Prior to issuance of drilling or redrilling permit hereunder, applicant shall furnish the building official with a certificate of insurance showing a valid policy or policies of public liability insurance, covering bodily injuries and property damage. Said insurance shall be written by a company authorized to do business in this state. Such policies shall provide for the following minimum coverage: (1) Bodily injuries and general liability one occurrence: $5,000,000 in an urbanized area. (2) Property damage: $2,500,000 in an urbanized area. (3) Bodily injuries and general liability one occurrence: $2,500,000 in an non- urbanized area. (4) Property damage: $1,000,000 in a non-urbanized area. i Section 6. THAT Chapter 19, Section 19-9, of the Code of Ordinances of the City of Beaumont be and it is hereby amended to read as follows: Sec. 19-9. Waiver of bond and insurance to financially responsible person. The building official may waive the requirements for surety bond and policies of insurance as required herein as to any drilling or redrilling permittee who is financially responsible and capable of meeting obligations for amounts in excess of ten million dollars ($10,000,000) upon permittee filing with the building official in lieu of any such surety bond or insurance policies a letter of acceptance and indemnity approved by the city attorney, binding and obligating such permittee to abide by the conditions for which 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 of or attributable to the granting of any and all permits to such permittee including acts or omissions of the city, its officers, agents, and employees in connection with said drilling permit. Section 7. THAT Chapter 19, Section 19-19, of the Code of Ordinances of the City of Beaumont be and it is hereby amended to read as follows: Sec. 19-19. Same—Extension of time. Whenever a person holding a drilling permit pursuant to the provisions of this chapter wishes to request an extension of the time within which drilling operations are required to be commenced to a period beyond one hundred eighty (180) days after the effective date of the permit, a request for such extension shall be filed with the building official in writing and be accompanied by a fee in the amount of one hundred twenty-five dollars ($125.00) for each well for which an extension is requested. Such request for an extension shall set forth facts showing good cause for the building official to allow additional time for the commencement of the well. When good cause is shown, the building official shall grant an extension not to exceed an additional one hundred eighty (180) days. Section 8. THAT Chapter19,Section 19-46,of the Code of Ordinances of the City of Beaumont be and it is hereby amended by moving Section 19-46 to Section 19-58 and enacting new Sections 19-46 through 19-58 to read as follows: Sec. 19-46. Permit required and fees for Seismic Testing. It shall be unlawful for any person to conduct seismographic testing within the city without a permit, as set out below: Seismographic permits(within the city) ... $50.00 plus$100.00 per shot hole on city property where allowed. Sec. 19-47. Review and action on seismic permit application; approval or disapproval of operations. It shall be the responsibility of the building official to review impartially and to approve or disapprove all applications for seismic testing permits. The building official, based upon the criteria established herein,may require the applicant for a permit hereunder to do those things necessary to insure the health, safety, and welfare of the citizens of the city. Items required shall be clearly stated in the permit issued hereunder. The building official is hereby authorized to approve or disapprove the actions of the p ermittee not otherwise covered by the permit application during the seismic testing and post-testing operations in accordance with the terms of this chapter only.The building official shall issue or deny a permit within thirty (30) days of receipt of a properly completed application for seismic testing. (a) If the building official denies a seismic testing permit, he shall notify the applicant in writing of such denial and the reasons therefor. (b) If the building official grants a seismic testing permit, the permit, in a form as determined by the building official, shall be mailed to the applicant. Sec. 19-48. Form of permit application; permit fee. Each application for a seismic testing permit shall be made in writing to the building official and shall include the following: (a) A map at a scale of 1:200 showing the location of the proposed seismic survey, including cable routes and points of impulse, when applicable. This map shall clearly show city limit, streets and parcel boundaries. (b) A statement of what property the applicant has the right, by reason of ownership or permission of the owner, to pass through and enter for seismic testing purposes. (c) The proposed location, type, kinds, size, and amount of major equipment and a general description and the method of operation of the proposed testing. (d) A statement from a licensed professional engineer who will act as the third party engineer, stating that they will be on the job site during the entire period of testing to monitor peak particle velocity levels and to mitigate any potential damage to public or private property. (e) Each application shall state the depth to which the applicant desires to drill and the size and type of charges that will be used during the course of testing. (f) All required explosive permits issued by the City Fire Marshal. (g) Any other permits required by another other governmental entity. Sec. 19-49. Seismic testing requirements and restrictions. Each seismic testing operation shall be limited to the following restrictions: (a) No point of impulse using an explosive charge shall occur within five hundred (500) feet of any aboveground or belowground structure. (b) No point of impulse using an explosive charge shall occur within five hundred (500) feet of any pipeline without written consent of the pipeline or facility owner. (c) No point of impulse using mechanical vibration (vibratory trucks) shall occur within two hundred and fifty (250) feet of any structure and shall occur only on private property with the expressed, written consent of the property owner of the property containing the mechanical point of impulse. (d) No point of impulse shall be used on city streets. (e) No point of impulse shall be used on city property without written permission from the Director of Public Works and only if the distance requirements outlined is this section are adhered to. (f) Applicant shall obtain written permission from property owners before entering upon or crossing their property. (g) Utilizing third party engineers for monitoring, no structure shall be subject to any peak particle velocity of ground motion in excess of 0.5 inches per second (h) Testing and associated drilling shall occur on week days only (Monday through Friday) between the hours of 6:00 a.m. and 6:00 p.m. No testing, drilling or hauling of equipment shall be allowed at night, on weekends or holidays, recognized as such, by the City of Beaumont. (i) The permittee shall immediately notify the City of any and all complaints of damage. Sec. 19-50. Representative operations supervisor. The applicant or permittee shall designate a competent representative who shall be responsible for the supervision of seismic testing operations and the carrying out of the conditions of any permit. Such representative shall be available at all times during seismic testing operations and shall be the responsible contact agent of the applicant or the permittee whom the building official may require to carry out the provisions of the permit. Sec. 19-51. Notification for seismic testing. (a) Permittee shall publish notices in the local newspaper in the manner and order set forth below: (i) 1st Notice- to be published at least three (3) days prior to the start of any seismic testing. Running time - one (1) day. (ii) 2nd Notice - to be published on the day which seismic testing first begins. Running time - one (1) day. (iii) Such work may continue no more than three (3) consecutive working days of non-production. If seismic testing does not occur during this time, another notice must be published on the day such work will restart.Additional notices must be republished to coincide with intermittent work. Running time - one (1) day each occurrence. (iv) Final Notice - to be published when any such seismic testing is approximately fifty percent (50%) complete. Running time - one (1) day. Aforementioned notices shall appear in the classified section under legal notices. The notice shall indicate the scope of operations to be performed and will detail the approximate dates and time(starting and ending)and general location of work to be performed. The City of Beaumont Building Official shall be notified when the notice has been placed with the newspaper and what dates it will be published. (b) Permittee is required to notify the following entities twenty-four(24) hours prior to the start of seismic testing: Fire Department - Fire Marshal (409-880-3905) BLASTING WORK ONLY; Engineering Division (409-880-3725); and All residents abutting test route, If more than three 3 consecutive working days of non-production occur, Permittee must contact the Fire Department twenty-four(24)hours in advance of any blasting to be done after a period of intermittent work. In addition, Permittee is required to notify any and all other entities, directly or indirectly, involved through other permits or agreements. Sec. 19-52. Bond required; amounts, conditions. Prior to the issuance of any seismic permit hereunder,the applicant shall furnish the building official with a performance bond in the principal sum of one hundred thousand dollars ($100,000). The bond shall be payable to the City of Beaumont for the use and benefit of any person entitled thereto and conditioned that the principal and bond will pay all damages to any person caused by, or arising from, or growing out of any violation of the terms of this permit. Such bond shall be executed by an insurance company authorized to do business in the state, as surety, and with applicant as principal, naming the city for the benefit of the city conditioned that the permittee will comply with the terms and conditions of this chapter. In addition, the bond will be conditioned that the applicant will promptly pay fines, penalties and other assessments imposed upon applicant by reason of the breach of any of the terms, provisions and conditions of this chapter, and that the applicant will promptly restore to their former condition streets,sidewalks, and other public property which may be damaged in seismic operations. If at any time the building official should find the applicant's bond to be insufficient for any reason, he may require the applicant to file a new bond. Sec. 19-53. Insurance required; types, amounts. Prior to issuance of any permit hereunder, applicant shall furnish the building official with a certificate of insurance showing a valid policy or policies of public liability insurance, covering bodily injuries and property damage.Said insurance shall be written by a company authorized to do business in this state. Applicant shall provide at least fifteen (15) days written notice of any cancellation or modification of such insurance. Such policies shall provide for the following minimum coverage: (1) Bodily injuries: $300,000 per person, $1,000,000 per incident. (2) Property damage: $1,000,000. Sec. 19-54. Permit transfer approval. All permits granted under this chapter shall be transferable upon approval of the building official, after a determination that all requirements of this chapter are met by the transferee. Sec. 19-55. Lapse of permit—Time; work without permit prohibited. The seismic permit shall become null and void unless the permit is accepted by the applicant in its entirety in writing, filed with the building official within thirty (30) days from the effective date thereof, and no work on such drill site shall be commenced until such permit is issued and accepted. The seismic permit shall become null and void unless seismic testing is commenced within one hundred eighty (180) days of the effective date of the permit. Sec. 19-56. Same—Extension of time. Whenever a person holding a permit pursuant to the provisions of this chapter wishes to request an extension of the time within which seismic testing operations are required to be commenced to a period beyond one hundred eighty (180) days after the effective date of the permit, a request for such extension shall be filed with the building official in writing and be accompanied by a fee in the amount of one hundred twenty-five dollars ($125.00) for each well for which an extension is requested. Such request for an extension shall set forth facts showing good cause for the building official to allow additional time for the commencement of the well. When good cause is shown, the building official shall grant an extension not to exceed an additional one hundred eighty (180) days. Sec. 19-57. Indemnification of city for damages. The permittee shall indemnify and save harmless the city, its officers, agents and employees from any and all claims, causes of action and damages of every kind, for injury to or death to any person and damages to property arising out of the operation under any seismic testing permit and including acts or omissions of the city, its officers, agents, and employees in connection with said seismic permit. Sec. 19-58. Violations; suspension or revocation of permit, appeals. Any permit may be suspended or revoked for any material violation of the conditions of the permit by the permittee or for persistent violation of any law by the permittee in the operation of any such well. The building official shall not revoke any permit without first giving the permittee ten (10) days'written notice of the nature of the violations and of the intention to revoke such permit. Permittee shall at once cease drilling or seismic testing operations after receipt of notice of intent to revoke this permit. If, within such ten (10)day period,the permittee requests a hearing before the building official,the building official shall grant such hearing within fifteen (15) days after the date of such request.At such hearing, evidence shall be presented to establish to the satisfaction of the building official the extent and nature of the violation which constitutes grounds for the revocation,and permittee shall be given an opportunity to cross-examine all witnesses testifying at such hearing. The permittee shall thereafter be 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. The building official shall thereupon, after hearing all the evidence, determine whether or notthe permit should be revoked,and his determination thereon shall be final. If the building official determines that the permit should be revoked, permittee may appeal the decision of the building official to the construction board of adjustment and appeals in accordance with the ordinances of the city. In the event the construction board of adjustment and appeals determines that said permit should be revoked, permittee shall have recourse to the appropriate courts of this state to review such action by said construction board of adjustment and appeals and the substantial evidence rule shall apply. Section 9. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid,such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 10. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 11. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 291h day of April, 2008. of - Mayor FWcky Ames -