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HomeMy WebLinkAboutORD 50-VAN ORDINANCE -el -)clS 0 AN ORDINANCE REGULATING THE DRILLING OF OIL OR GAS WELLS -WITHIN THE CITY LIMITS :OF_ THE CITY' OF BEAU- MONT;, DEFINING CERTAIN -TERMS; PROHIBITING THE DRILLING .OR.OPERATION OF ANY WELL. WITHOUT A. PERMIT; PROHIBITING THE DRILLING OF ANY_WELL.WITHIN ANY STREET. OR ALLEY; _PROHIBITING THE, ,DRILLING. OF. ANY WELL AT A LOCATION WITHIN.A CERTAIN.DISTANCE OF ANY STRUCTURE WITHOUT HAVING FIRST SECURED THE PERMIS- SION OF ,THE OWNERS. THEREOF, PROVIDING _FOR . THE ,R.E- QUIREMENTS AND. CONTENTS OF APPLICATION -,FOR.. PE10IT TO.DRILL.AND-OPERATE A WELL;. PROVIDING FOR A'FILING .T FEE O.. BE PAID_ IN CONNECTION WITH . EACH APPLICATION;. PROVIDING FOR .THE ISSUANCE OR REFUSAL. OF A.. PERMIT TO DRILL -AND OPERATE A .WELL; PROVIDING FOR .THE_ CONTENTS OF.A-PERMIT .ISSUED BY THE CITY.COUNCIL;, PROVIDING . FOR. A BOND, TO BE FILED. BY PERMITTEE 'AND THE CONDITIONS THEREOF; PROVIDING . FOR THE. APPOINTMENT _ OF. AN _, OIL . AND GAS INSPECTOR;.PROHIBITING THE DRILLING OF ANY.WELL. TO A.DEPTH.IN EXCESS-OF.TEN,THOUSAND.(10',000) FEET; PROHIBITING.THE DEEPER,DRILLING OF ANY WELL WITHOUT FILING.SUPPLEKENTAL APPLICATION'AND THE ISSUANCE OF A.SUPPLEMENTAL PERMIT; PROHIBITING_THE,USE..OF WOODEN DERRICKS OR. A._ STEAM-- POWERED . RIG, AND, REQUIRING ADE- QUATE-MUFFLERS ON,ENGINES;_PROHIBITING THE.RIG AND DERRICK REN_IAINING ON'THE_PREMISES.FOR MORE THAN . THIRTY_ (30.) - DAYS AFTER. THE COMPLETION OR ABANDONMENT OF.THE WELL; -PROVIDING FOR THE LEVELING OF.SLUSH PIT WITHIN THIRTY (30)_DAYS._AFTER COMPLETION OF WELL;,.. PROVIDING.FOR THE -SPECIFICATIONS OF CASINGS;.PROVIDING FOR THE SETTING.AND CEMENTING OF CASINGS: 1. PROVIDING,. FOR VALVES -AND, BLOW-OUT PREVENTERS; PROVIDING_TH -E SPECIFICATIONS VAND PERMISSIBLE. DRILLING. _FLUID; . PROHIB- ITING _THE. TAKING AND COMPLETION _OF -.DRILL _STEM TESTS . . EXCEPT,DURING.DAYLIGHT HOURS AND -PRESCRIBING THE. MANNER OF SVCH_TESTS;.PROVIDING FOR.,THE.SPECIFICATIONS OF TUBING;,PROVIDING FOR THE.SPECIFICATIONS OF.BRADEN- HEADS.;.PROVIDING_FOR THE SPECIFICATIONS.OF CHRISTMAS TREE AND WLL.HEAD_CONNECTIONS;.,PROVIDING-THAT.PREMISES SHALL BE -','PT KCLEAN AND SANITARY;- PROVIDING. THAT„MOTIVE POWER FOR. ALL OPERATIONS .AFTER COMPLETION OF. DRILLING OPERATIONS SHALL BE.ELECTRICITY OR_PE PROPERLY. -MUFFLED GAS OR_GASOLINE_ENGINES; PROVIDING SCIFICATIONS FOR STORAGE _TANKS ­AND SEPERATORS;_.PROVIDING.F.OR.THE ENCLOS- URE -OF A. WELL, , SURFACE FACILITIES -AND STORAGE. TANKS_ BY A FENCE;_PROHIBITING ESCAPE -OR. VENTING INTO,THE ,AIR OF GAS UNLESS THE. SAME BE _FLARED AND. BURNED;, PROVIDING THE MANNER _ IN WHICH_ WELLS SHALL .BE -.ABANDONED AND PLUGGED; REQUIRING_ THAT . ADEQUATE. PROVISIONS _FOR .THE DISPOSAL OF ,ALL . SALT. WATER AND. OTHER _IMPURITIES BE MADE; PROVIDING THAT VIOLATION OF. CERTAIN' LAWS -.OF THE STATE OF TEXAS AND CERTAIN.REGULATIQNS_OF REGULATORY BODIESHALL SHALL BE & ATIOLATION OF THIS ORDINANCE; _ PROVID- ING.THAT. THE INVALIDITY. OR UNCONSTITUTIONALITY OF..ANY PARTICULAR.PROVISION.OF THIS.ORDINANCE.SHALL.NOT-AFFECT THE.VALIDITY„ OR.CONSTITUTIONALITY OF,THE REMAINING PROVISIONS;..PROVIDING.FOR.-A PENALTY. ,. S-6 BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: Section 1 - Definitions: For the purpose of.this Ordinance, and For all purposes un er this Ordinance, the following words and terms wherever and whenever used or appearing in this Ordinance shall have the scope and meaning hereinafter defined and set out in connection with each: (a) The word "person" shall include both'the singular and the plural; and shall mean and.include.-any person, individual, firm, partnership, association, corporation, club, society, co- operative, trust, municipal corporation or political subdivision whatsoever. - (b) The word "well" shall include and mean any hole or holes, bore or bores, to',any sand, formation, strata or depth, which is or are drilled, bored,, sunk, Udg, or put down for the purpose of either exploring for or ascertaining the existence of any oil, gas, liquid hydrocarbon, or any -of them, or for the pur- pose of producing and recovering any oil, gas, liquid hydrocarbon, or any of them. (c) The word "permittee't shall mean the person to whom is issued a permit for the drilling ..and operation of a well under this ordinance, and his or its administrators, executors, heirs, suc- cessors and assigns. (d) All technical or oil and gas industry words or phrases used herein and not specifically defined herein shall have that meaning customarily attributable thereto by prudent operators in the oil and gas industry. Section 2 -.-Permit: It shall be unlawful and an offense for any person acting eit er�for himself or acting as agent, employee, in- dependent contractor, or servant of any other person, to commence to drill, to drill, or to operate, any well within the city limits of The City of Beaumont or to work upon or assist in any way in the prosecution or operation of any such well, without a permit for the drilling and operation of such well having first been issued by the. authority of the City Council of The City of Beaumont in accordance with the terms of this Ordinance.. Section 3 - _Streets and Alleys:, No well shall be drilled and no permit shall be issued for any.well to be drilled at any location which is within any of the streets or alleys of The City of Beau- mont; and no street or alley'shall be blocked or,ineumbered _or closed in any drilling or production operation, except by special permit by order of the City Council of The City of Beaumont, and then only temporarily. Section 4 - Well Location: No well shall be drilled and no permit shall beissuedfor any well to be drilled at any location which is nearer than i50 feet of any residence, building or structure without the applicant having first secured the written permission of the owner or owners thereof. Section 5 - A lication and Filin Fee: Every application for a permit to it an operate a wel s all be in writing, signed by the applicant or by some person duly authorized to sign same on his 1. behalf, and it shall be filed with the City Clerk and be accompan- ied with a filing fee of $300.00 in cash. No application shall request a permit to drill.and operate but one well, the said ap- plication shall include,full.information, including the following: The date of said application.; Name of the applicant; Address of the applicant; - Proposed site of the well, including: 11 Name of the fee owner; (21. Name of the lease owner; (3). Brief .description of the land; Type of derrick to be used; Whether the well shall be drilled as an oil or gas well; The proposed depth of the well (which shall not be deep- er than 10,000 feet; _ Motive power of rig that is to be used. Section 6 - Issuance or Refusal of Permit: The City Council, with- in ._ hir "Uya after the filing of the. application for a per- mit to drill and operate a well, shall determine whether or not said application complies in all respects with the provisions of this Ordinance, and if it does, the City Council shall then fix the amount of the principal of the bond provided for in Section 8 here- in, which shall not be less than $200,000.00 and after such deter- mination shall issue.a permit for.the drilling and operation of the well applied for. Each permit'issued under this Ordinance shall: (1) By reference have incorporated therein all the provisions of this Ordinance with the same force and effect as if this Ordi- nance were copied verbatim in said permit; (2) Specify b er, block number, able correct legal the -well location with particularity to lot num- name'of addition or subdivision, or other avail - description; (3) Contain and specify that the term of such permit shall be for a period of one year from the date of the permit, and as long thereafter as the permittee is engaged in continuous drilling oper- ations or oil or gas is produced in commercial quantities from the well drilled pursuant to such permit, provided that if at any time after discovery of oil or -gas the production thereof in commercial quantities should cease, the term shall not terminate if the permit- tee commences additional reworking operations within sixty (60) days thereafter.; and if they result in the production of oil or gas, so long thereafter as oil or gas is produced in commercial quanti- ties from said well; (4) Contain and specify such conditions as are by this Ordi- nance'authorized; (5) Specify the total depth to which the well may be drilled, not exceeding the projected depth; and, (6) Contain and specify that no actual drilling operations shall be -commenced until the permittee shall file and have approved an indemnity bond -in the designated principal amount as so deter- mined by the City Council and conditioned.as specified in,Section 8 hereof. Said permit, in duplicate originals; shall be signed by the City Manager of The City of Beaumont, and prior to delivery to the permittee shall be signed by.the permittee (with one original to be retained by the City and one by the permittee); and when so signed 2. - ZAI .-0 shall constitute the permitteets-drilling and operating license and the contractual obligation.of the permittee to comply with the terms of such permit, and such.bond, and this Ordinance: If the permit for the well be refused, or if the applicant notified the City Council in writing that he does not elect to ac- cept the permit as tendered and wishes to withdraw his application, or if the bond of the applicant benot approved and the applicant notifies the City Council in writing that he wishes to withdraw his application, then. upon the happening of any: of said events the cash deposit provided for to be filed with the application shall be returned to the applicant, except that there shall be retained therefrom by The. -City of Beaumont bne hundred ('$100.00) as a pro- cessing fee. Section - Termination of Permit: When a permit shall have been issue d, the same s alI terminates and become inoperative without any action on the part of the City unless within sixty (60) days from the date of issuance actual drilling of the well shall -have com- menced: The cessation for a like period of the drilling operations or the cessation of the production of oil or gas from the well after production shall have commenced shall operate to terminate and cancel the permit, and the well shall be considered as aban- doned for all purposes of this Ordinance, and it shall .be unlawful thereafter to continue the operation or drilling of such well with- out the issuance of another permit. Section 8 - Permitteets Bond: In the event a permit be issued by the City Council un er. t e terms of this Ordinance for the drilling and operation of a well, no actual drilling operations shall be commenced until the permittee shall file with the City Clerk of The City of Beaumont a bond (and obtain written approval thereof by the City Manager of The City... of Beaumont) duly executed by the appli- cant as principal, and by a reliable. -surety company authorized to do business in the State of Texas, as surety, running to The City of Beaumont for the.benefit of the City and all persons concerned, conditioned that the permittee will comply with the terms and con- ditions of this Ordinance in the drilling -and operation of the well; that the permittee will promptly restore the streets and sidewalks and other public property of the City which may be disturbed or damaged in the operations to their former condition; that the per- mittee -will promptly clear all premises of all litter, trash, waste, and other substances used, allowed, or occurring in the drilling or producing operations, and will grade, level and restore said property to the same surface condition, as near as possible, as existed when operations for the drilling of the well were first commenced; that the permittee will pay to the owners of any buildings, improvements, goods or chattels located on the property any extra cost of insur- ance on such property imposed by reason of the granting of the per- mit or the operations carried on thereunder, and that the permittee will promptly pay and discharge any liability imposed by law for damages on account of injury to property, either public or private, or bodily injury, including death, received or suffered by any per- son whomsoever and resulting from the drilling operation, produc- tion or maintenance of said well, equipment, facilities, or appurte- nances thereto; and that the permittee will indemnify and hold the City harmless from any and all liability growing out of or attribu- table to the granting of such permit. Such bond shall be in the principal sum of such number of dollars as has been so determined by the City Council of The City of Bem auont.as aforesaid. Said bond shall become effective.on or before the date the same is filed with the City Clerk, and remain in force and effect for at least a period of two (2) years subsequent to the expiration of the term of the permit issued. Said bond shall accrue to the benefit of any person with reference to the conditions above stated, and may be sued upon by him. If at any time the City Council of The City of Beaumont shall deem any permittee's bond to be'insuff icient for any reason, it may require the permittee to file a new bond and upon such new bond being filed the sureties on the bond being replaced shall thereupon be dis- charged. Section 9 - Apj2ointment of Oil and Gas Inspector: The City Council s all appoint an Oil and Gas Inspector, and his compensation shall be set by the City Council; and said Inspector may be removed at the will of said City Council. It shall be the duty of the Oil and Gas Inspector to enforce the provisions of this Ordinance. Section 10 - Well Below 10,000 Feet Prohibited: It shall be unlawful and an offense for any person to drill a well within the city limits of Beaumont to a true vertical depth in excess of ten thousand (10,000) feet; and no drilling and operating permit shall be granted for any well to a true vertical depth in excess of ten thousand (10,000) feet. Section 11 -_Deeper Drilling: Once any well has either been completed as a producer or abandoned as a dry hole, it shall be unlawful and an offense for any person to drill such well to a deeper depth than that reached in the prior drilling operations without the permittee as to such well obtaining a supplemental permit after filing a supplemental applica- tion with the City. Clerk specifying: (1) The then condition of the well and the casing therein; : - (2) The depth to which it is proposed such well be deepened, not to exceed in any event a total true vertical .depth from the surface -in-excess of ten thousand (10,000) feet; (3) The proposed casing program to be used in connection with proposed deepening operations; (4) And evidence of adequate current tests showing that the casing strings in said well currently pass the same tests as_::are_'` in _:this .Ord in.an`ce;�prooided for -in case of the drilling of the original well. In the event the City Council is satisfied that said well may be deepened with the same degree of safety as existed in the original well, a supplemental permit may be issued without additional filing fee to the permittee authori- zing the deepening and operation of the well to such specified depth as applied for, not exceeding in any event a total true vertical depth from the surface in excess of ten thou- sand (10,000) feet. In any deeper drilling or any deeper completion or any deeper production operations the permittee shall comply with all other provisions contained in this Ordinance and applicable to the drilling, completion and operation of a well or wells. Section 12 - Derrick and Rig: It shall be unlawful and an offense for any person to use or operate in connection with the drilling or reworking of any well within the city limits of Beaumont, any wooden derrick or any steam -powered rig, and all engines shall be e quipped.with adequate mufflers approved by the Oil and Gas Inspector; or to permit any drilling rig or derrick to remain on the premises or drill- ing site for a period longer than thirty (30) days after completion or abandonment of the well. At all times from the start of erection of a derrick, or a mast, or a gin -pole, uhtil the well is abandoned and plugged or completed as a producer and enclosed with a fence as herein provided, the permittee shall keep a watchman on duty on' -the premises at all times. 4. Section 13 - Pits: Either earthen or steel slush pits shall be permitted in connection with the drilling operation In the event a steel pit is used, said pit and its contents shall be removed from the premises and the drilling site within thirty (30) days after completion of the well. In the event an earthen slush pit is used, same shall be filled and leveled within said period. Section 14 - Casing: All casing, including surface protection and production strings, shall be either seamless steel or equivalent quality oil well casing. Each production string of casing must comply with at least the following minimum internal pressure yield strength, computed in accordance with A.P.I. standards, to wit,. Depth of StrinE in Feet Internal Pressure Rating (psi) 0f - 62000, 4,500 lbs. 6;000' - 7,0001 5,000 lbs. 710001 - 800001 6,000 lbs. 820001 - 92000, 7,000 lbs. 9,000, - 100000, 8,000 lbs. Each joint and length of each particular casing string shall have prior to setting unconditionally passed a complete cold water test. Section 15 - Setting and CementinE Casingi No well shall be drilled within the city limits of Beaumont without properly setting surface casing to a minimum depth of 1,000 feet. No well shall be drilled within the city limits of Beau- mont without cementing the surface casing by the pump and plug method with sufficient cement to completely fill all of the annular space behind such casing to the surface of the ground; and without cementing the production string by the pump and plug method with sufficient cement to completely fill all the annular space behind the production string to at least 600 feet above the highest oil and/or gas bearing horizon; and in the'eventa protection string of casing be required under the terms of this Ordinance, without cement- ing the protection string by the pump and plug method with sufficient cement to completely fill all the annular space behind the protection string to at least 600 feet above the highest oil and/or gas bearing horizon. Section 16 - Valves and blow -Out Freventers; No well shall be drilled within the city limits of Beaumont without properly equipping the surface casing when set with at least one master valve and at least two ram type blow-out pre- venters; and without properly equipping the protection casing when set with a least one master valve and at least one ram type hydril blow-out preventers; and without proper- ly equipping the production casing during completion opera- tions and workover operations with at least one master valve and at least one ram type and one hydril blow-out preventers. On each well drilled a valve cock or kelly cock shall be installed on the kelly used. Each blow-out preventer shall be tested at least once every eight-hour period and all control equipment shqll be in good working condition and order at all times. 5. Section 17_- Drilling Fluid: No well shall be drilled or reworked within the city limits ..of Beaumont without using mud as the drill- ing fluid at all times. Prior to the time the well reaches a total depth of 5,000 feet or the depth of the first known or encountered oil or gas -bearing horizon, whichever is the lesser depth, the weight of the mud laden drilling fluid shall be at all times main- tained at not less than ten pounds per gallon. After the well reaches a total depth of 5,000 feet or the depth,of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud laden drilling fluid.shall be at all times maintained at such weight as will provide a hydrostatic head of not less than five hundred pounds per square inch in excess of the formation pressure. Section 18 - Drill Stem Tests: It shall be unlawful and an offense for any person in connection with the drilling or reworking opera- tions -of any well within the city limits of Beaumont to take and to complete any drill stem test or tests except during daylight hours and then only if the well effluent during the test is produced through an adequate oil and gas separator to storage tanks, and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe. Section 19 - Tubin : All tubing used in any well within the city limits of The.City of Beaumont shall be seamless steel tubing hav- ing -not less than a minimum internal pressure yield strength of 7,000 pounds per square inch if used in connection with a well com- pletion at a depth not exceeding 7,000 feet, or less than a minimum internal pressure yield strength of 10,000 pounds per square inch if used in connection with a well completion at a depth in excess of 7,000 feet. On all flowing wells the tubing shall be set on a packer, placed not more than 100 feet above the producing horizon, with the annular space between the tubing and the next adjacent casing string being left filled and maintained with mud laden drill- ing fluid having a specific gravity of not less than that of the. mud required to be used in drilling the well at the depth of the h orizon.in which it is completed. Section 20 - Bradenhead: Each well drilled within the city limits of Beaumont shall e equipped with a bradenhead with a working pressure of not less than 9,000 pounds per square inch.. Braden - heads shall not be welded. The bradenhead installed --on the surface casing shall be set above ground level and shall be equipped with fittings having a test pressure rating of not less than 6,000 pounds per square inch. The Bradenhead pressure shall be checked at least once each calendar month and if pressure is'found to exist, proper remedial measures shall be immediately taken to eliminate the source and the existence of the pressure. Section 21 - Christmas Tree and Well Head Connections: The Christ- mas tree and all well Readconnectio on eachwe rilled within the city limits of Beaumont shall be/r-'ol,1ow-s'_ on all wells completed at a depth above 1,000 feet the Christmas tree and well head connec- tions shall have at least a minimum working pressure of 2,000 pounds per square inch and a minimum test pressure of at least 1,000 pounds per square inch; and on all wells completed to a depth of from 1,001 to 7,000 feet the Christmas tree and well head connections shall have at least a minimum working pressure of 3,000 pounds per square inch and a minimum test pressure of at least 6,000 pounds per square.inch; and on all wells completed below a depth of 7,000 6. feet the Christmas tree and well head connections shall be at least a minimum working pressure of 5,000 pounds per square inch and a minimum test pressure of at least 10,000 pounds per square inch. All piping and fittings connecting the well head to an oil gas separator shall have at least the same minimum working pres- sure and minimum test pressure as hereinabove specified for Christmas tree and well head connections. In the event the surface shut-in pressure of any well -in -the city limits of Beaumont exceeds 2 000 pounds per square inch, the flow wing of the Christmas tree sAall be equipped with an automatic closing safety valve in addi- tion to the regular control valves. Section 22 - Premises to be Kept Clean and Sanitary: The premises shall e kept in a clean an .sanitary con ition, ree from rubbish of every character, to the satisfaction of the Health Officer of The City of Beaumont, at all times drilling operations or rework- ing operations are being conducted, and as long thereafter as oil and/or gas is being produced therefrom. Section 23 - Mufflers Required: Motive power for all operations air completion of drilling operations shall be electricity or properly muffled gas or gasoline engines; such Mufflers to be ap- proved by the Oil and .Gas Inspector prior to their use. Section 24_- Storage Tanks and Separators: It shall be unlawful and an offense for any person to use, constructor operate in connec- tion with any producing well within the city limits of Beaumont any crude oil storage tanks except to the extent of two steel tanks for oil storage, not exceeding 500 barrels capacity each, and so con- structed and maintained as to be vapor tight and each surrounded with an earthen fire wall at. such distance from the tanks as -will under any circumstances hold and retain at least one and one-half times the maximum capacity of such tank.. A permittee may use, con- struct and 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 constructed and maintained as to be vapor tight. Each oil gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head. Section 25r Fence_: Any person who completes any well as a producer shall have the obligation to enclose said well, together with its surface facilities and storage tanks, by a substantial smooth net wire fence sufficiently high and properly built so as to ordinarily keep persons and animals out of the enclosure with all gates there- to to be kept locked when the permittee or his employees are not within the enclosure. It is provided, however, that the type of fence in a noncongested-:.area shall be designated and approved by the Oil and Gas Inspector. Section.26 - Venting and Flaring of Gas: No person engaged in drilling or operating any.well shall permit gas to escape or be vented into the air unless said gas be flared and burned. All gas flared or burned from a torch, pipe-, or.any other burning device, within the city limits of Beaumont must be done in such manner so as not to constitute a fire hazard to any property; and the location of the torch, pipe, or other burning device, the construction there- of, the maintenance thereof, and the operation thereof, shall at all times be in full compliance with such regulations as may from time to time be issued by the,Oi1 and Gas Inspector of The City of Beaumont. 7. 0_1�d, 5-6-V Section 27 - Abandonment and iPlug-Ling. Whenever any well is aban- d nci t shall be 7e o ligationof t . e permittee and the operator of the well to set a cast iron bridge plug in the top of all the remaining completion and protection casing sections and a 100 foot cement,plug pumped below and above each such bridge plug; and to set a cast iron bridge plug as low as possible in the surface cas- ing and a 100 foot cement plug pumped below and above such bridge plug. No surface string or conductor string of casing may be pulled and removed from a well. The production string of casing may be removed from a point 100 feet or more above the shoe of the protection string. The protection string of casing may be removed from a point 100 feet or more above the shoe of the surface string of casing. Whenever -any such well is abandoned and plugged, it shall be -the. _furthe-r obligation of the permittee and the operator of the well to out the surface casing off at least six feet below the surface of the ground, to place at least'a 25 foot cement plug in the top of the casing and to weld the top of the casing com- pletely shut with a resulting hole being completely filled to the surface of the ground and duly tamped. Any additional provisions or precautionary measures prescribed by the State of Texas or the Railroad -Commission of the State of Texas in connection with the abandonment and plugging of a well shall be complied:-. with by the permittee. Section 28 - Dis osal of Salt Water: Permittee shall make adequate provisions for the disposal o a salt water or other impurities which he may bring to the surface; such disposal to be made in such manner as to not contaminate the water supply, present or prospec- tive, or to injure surface vegetation. Section 2g_- Violation of Laws or Regulations: Any violation of tthe laws of the Mate of Texas or any rules, regulations or require- ments of any State or Federal regulatory body having jurisdiction in referencm to drilling, completing, equipping, operating, produc- ing, maintaining, or abandoning an oil or gas well or related ap- purtenances, equipment or facilities, or in reference to fire walls, fire protection, blow-out protection, safety protection, or conven- ience of persons or property, shall also be a violation of this. Ordinance, and shall be punishable in accordance with the provis- ions hereof. Section''0 - Severabilit : If any section, paragraph, subdivision, c ause, phrase or provision of this Ordinance shall, for any reason, be adjudged invalid or held to be unconstitutional, the invalidity or unconstitutionality of such -particular section, paragraph, sub- division, clause, phrase or provision so declared shall not affect the validity or constitutionality of the remaining provisions here- of, but the same, and each of them, shall remain in full force and effect. Section 31 - Penalty: It shall be unlawful and an offense for any person to violate or neglect to comply with any provision hereof irrespective of whether or not the verbage of each section hereof contains the specific language that such violation or neglect is unlawful and is an offense. -Any person who shall violate any of the provisions of this Ordinance, or any of the provisions of a drilling and operating permit issued pursuant hereto, or any condition of the bond filed by the permittee pursuant to.this Ordinance, or who shall neglect to comply with the terms hereof, shall be deemed guilty of a misdemeanor and shall, on conviction thereof, be fined in any sum not less than five ($5.00) dollars nor more than two M hundred ($200.00) dollars; and the violation of each separate pro- vision of., this Ordinance, and of said .permit, and of said bond, shall be considered a separate offense, and each day's violation of each separate provision thereof shall be considered a separate offense. In addition to the foregoing penalties, it is further provided that the -City Council of The City of Beaumont at any regular or special session or meeting thereof, -may, provided -sten (10) days notice has been given to the permittee that revocation is to be considered at such meeting, revoke or suspend any permit issued under this Ordinance and under which drilling or producing operations are being conducted in the event the permittee thereof has violated any provision of said permit, -said bond, or this Ordi- nance. In the event the permit be revoked, the permittee may make application to the City -Council of The City of Beaumont for a re - issuance of such permit, and the,action_of the,City Council thereon shall be final. PASSED by the City Council this a q tl day of , A. D. 1950.: - Mayor - AP BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: Section 1 - Definitionss For the purpose of this Ordinance, and for all purposes un er this Ordinance, the following words and terms wherever and whenever used or appearing; in this Ordinance shall have the scope and meaning hereinafter defined and set out in connection with each: (a) The word "person" shall include both the singular and the plural; and shall mean and include any person, individual, firm, partnership, association, corporation, club, society, co- operative, trust, municipal corporation or political subdivision whatsoever. (b) The word "well" shall include and mean any hole or holes, bore or bores, to any sand, formation, strata or depth, which is or are drilled, bored, sunk, duo, or put down for the purpose of either exploring for or ascertaining the existence of any oil, bas, liquid hydrocarbon, or any of them, or for the pur- pose of producing; t•d recovering any oil, gas, liquid hydrocarbon, or any of them. (c) The word "permittee" shall mean the person to whom is issued a permit for the drilling and operation of a well under this ordinance, and his or its administrators, execu'�ors, heirs, suc- cessors and assigns. (d) All technical or oil and -as industry words or phrases used herein and not specifically defined herein shall have that meaning custoraarily attributable thereto by prudent operators in the oil and gas industry. Section 2 - '_'ermit: It shall be unlawful and an offense for any person Acting e=t er for himself or acting as agent, employee, in- dependent contractor, or servant of any c!.-h:r person, to commence to drill, to drill, or to operate, any well within the city limits of The City of Beaumont or to work upon or assist in any way in the prosecution or operation of any such well, without a permit for the drilling and operation of such well having first been issued by the authority of the City Council of The City of Beaumont in accordance with the teras of this Ordinance. Section - Streets and Alleys: No well shall be drilled and no permi shall e issued for any well to be drilled at any location which is within any of the streets or alleys of The City of Beau- mont; and no street or alley small be blocked or incumbered or closed in any drilling or production operation, except by special permit by order of the City Council of The City of Beaumont, and then only temporarily. Section Well Locations No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than 150 feet of any residence, building; or structure without the applicant having first secured the written permission of the owner or owners thereof. Section 5 - ARRlic&tion and Filing Fee: Every application for a permit to drill and operate a well shall be in writing, signed by the applicant or by some person duly authorised to sign same on his behalf, and it shall be filed with the City Clerk and be accompan- ied with a filing fee of $300.00 in cash. No application shall request a permit to drill and operate but one well, the said ap- plication shall include full information, including the following: (a) (b) (c) (d) (h) The date of said application_, Esme of the applicant; Address of the applicant; - Proposed site of the well, including: (1 Name of the fee owner; (2 A:ame of the lease owner; (3 Brief description of the land; Type of derrick to be used; Whether the well shall be drilled as an oil or gas well; The proposed depth of the well (which shall not be deep- er than 10,000 feet; I•iotive power of rip that is to be used. Section 6 - Issuance or Refusal of Permit: The City Council, with- ao A�.r in a reasonable tiros ter t e filing, oT the application for a per- mit to drill and operate a well, shall determine whether or not said application complies in all respects with the provisions of this Ordinance, and if it does, the City Council shall then fix the amount of the principal of the bond provided for in Section 8 here- in, which shall not be less than a200,OOO.00 and after such deter- mination shall issue a permit for the drilling and operation of the well applied for. Each permit issued under this Ordinance shall: (1) By reference have incorporated therein all the provisions of this Ordinance with the sane force and effect as if this Ordi- nance were copied verbatim in said permit; (2) Specify ber, block nwinber able correct lepaf the well location ifIth particularity to lot num- name of addition or subdivision, or other avail - description; (3 ) Contain and specify that the tcrr. of such permit, shall be for a period of one year from the date of the permit, and as long thereafter as the permittee is enma-ed in, continuous drilling oper- ations or oil or.gas is produced in commercial quantities from the well drilled Pursuant to such hermit, provided that i::" at any time after discovery of oil or gas the production thereof in commercial quantities should cease, the term shall not terminate if the permit- tee cozmeaces additional reworking operations within sixty (60) days thereafter, and if they result in the production of oil or gas, so long thereafter as oil or gas is produced in commercial quanti- ties from said well; (4) Contain and specify such conditions as are by this Ordi- nance authorised; (5) Specify the total depth to which the well may be drilled, not exceeding the projected depth; and, (6) Contain and specify that no actual drillinc, operations shall be cojmnenced until the permittee shall file and have approved an indemnity bond in the designated principal amount as so deter- mined by the City Council and conditioned as specified in Section $ hereof. Said permit, in duplicate originals, shall be signed by the City Manager of The City of Beaumont, and prior to delivery to the permittee shall be signed by the permittee (with one original to be retained by the City and one by the permittee); and when so signed 2. shall constitute the pernitteets drilling and operating license and the contractual obligation of the permittee to comply with the terms of such permit, and such bond, and this Ordinance. If the permit for the well be refused, or if the applicant notified the City Council in writing that he does not elect to ac- cept the permit as tendered and wishes to withdraw his application., or if the bond of the applicant be not approved and the applicant notifies the City Council in writing that he wishes to withdraw his application, then, upon the happening of any of said events the cash deposit provided for to -be filed with the application shall be returned to the applicant, except that there shall be retained therefrom by The ,City of Beaumont one huh -fired (0100.00) as a pro- cessing fee. Section 7_ Termination of Permit: When a permit shall have been is d,, the same sba31 term nate and become inoperative without any action on the part of the City unless within sixty (60) days from the date of issuance actual drilling; of the well shall have com- menced. The cessation for a like period of the drilling operations or the cessation of -the production of oil or jas from the well after production shall have commenced shall operate to terminate and cancel the permit, and the well shall be considered as aban- doned for all purposes of this Ordinance, and it shall be unlawful thereafter to continue the operation or drilling of such ,well with- out the issuance of another permit. Section 8 - Permitteets Bond: In the event a pernit be issued by do Calty Council un er t e terns of this Ordinance for the drilling and operation of a well, no actual drilling operations shall be commenced until the permittee shall file with the City Clerk of The City of Beaumont a bond (and obtain written approval thereof by the City Manager of The City of Deaumont) duly executed by the appli- cant as,principal, and by a reliable surety company authorized to do business in the State of Texas, as surety, running to The City of Beaumont for the benefit of the City and all persons concerned, conditioned that the permittee will comply with the terms and con- ditions of this Ordinance in the drilling and operation of the well; that the permittee will promptly restore the streets and sidewalks and other public property of the City which may be disturbed or damaged in the operations to their former condition; that the per- mittee will promptly clear all premises of all litter, trash, waste, and other substances used, allowed, or occurring in the drilling or producing; operations, and will grade, level and restore said property to the same surface condition, as near as possible, as existed when tperatioAs for the drilling; of the well were first commenced; that the permittee will pay to the owners of any buildings, improvements, goods or chattels located on the property any extra cost of insur- ance on such property imposed by reason of the granting of the per- mit or the operations carried on thereunder, and that the permittee will promptly pay and discharge any liability imposed by law for damages on account of injury to property, either public or private, or bodily injury, including death, received or suffered by any per- son whomsoever and resulting from the drilling operation, produc- tion or maintenance of said well, equipment, facilities, or appurte- nances thereto; and that the permittee will indemuify and hold the City harmless from any and all liability growin'F out of or attribu- table to the granting of such permit. Such bona shall be in the principal sum of such number o: dollars as has been so determined by the City Council of The City of Beaumont as aforesaid. Said bond shall become effective on or before the date the same is filed with the City Clerk, and remain in force and effect for at leaat a period of two (2) years subsequent to the expiration of the term of 3. the permit issued. Said bond shall accrue to the benefit of any person with reference to the conditions above stated, and may be sued upon by him. If at any time the City Council of The City of Beaumont shall deem any permitteeis bond to be insufficient for any reason, it may require the permittee to file a new bond and upon such new bond being filed the sureties on the bond being re- placed shall thereupon be discharged. section 9 - Appointment of Qil and Gas s actor: The City Council shall appoint an Oil and Gas Inspector,, and his compensation shall be set by the City Council; and said Inspector may be removed at the will of said City Council. It shall be the duty of the Oil and Gas,Inspector to enforce the provisions of this Ordinance. S -W 1.10 Ifvc Vt (i --'ca I ful and an offense for anv person to drill limits of Beaumont to a depth in excess of feet; and no drilling and operating permit well to a1depth in excess of ten thousand ,taQ Af}lcal JW# • itLdd,: It shall b e unlaw- a well wit hin the city ten thousand (10,000) shall be granted for any (10,000) feet. Section 11 - Deeper Dril in : Once any well has either been com. pleted as a producer or abandoned as a dry hole, it shall be unlaw- ful and an offense for any person to drill such well to a deeper depth than that reached in the prior drilling operations without the permittee as to such well obtaining a supplemental permit after filing a supplemental application with the City Clerk specifying: ill The then condition of theelandv/the+cain therein; 2The depth to which it is roposed such well be deepened, not to exceed in any event a total epth from the surface in ex- cess of ten thousand (20,000) feet; (3) The proposed casing program to be used in connection with proposed deepening operations; (4) And evidence of adequate current tests shoring that the casing stringo in said well currently pass the same tests as are in this Ordinance provided for in case of the drilling of the original well. In the event the City�uncil is satisfied that said well may be deepened with the same degree of safety as existed in the origi- nal well, a supplemental/permit may be issued without additional filing fee to the permittee authorizing the deepening and operation of the well to suchsppecified depth as applied for, not exceeding in any event a total %depth from the surface in excess of ten thou- sand (100000) feet. In any deeper drilling or any deeper comple- tion or any deeper production operations the permittee shall comply with all other provisions contained in this Ordinance and applica- ble to the drilling, completion and operation of a well or wells. Section 12 - Derrick -and Rig: It shall be unlawful and an offense or any person to use or operate in connection with the drilling or reworking of any well within the city limits of Beaumont, any wooden derrick or any steam -powered rig and all engines shall be equipped with adequate mufflers approved by the Oil and Gas Inspec- tor; or to permit any drilling rig or derrick to remain on the premises or drilling site for a period longer than thirty (30) days after completion or abandonment of the well. -At all times from the start of erection of a derrick, or a mast, or a gin -pole, until the well is abandoned and plugged or completed as a producer and enclosed with a fence as herein provided the permittee shall keep a watchman on duty on the premises at ail times. Section 13 - Pits: Either earthen or steel slush pits shall be WE ted in connection with the drilling operation. In the event a steel pit is used, said pit and its contents shall be removed from the premises and the drilling site within thirty (30) days after completion of the well. In the event an earthen slush pit is used, same shall be filled and leveled within said period. Section 1- C sin Z p rs n ngage n e dr3. a - tion or -any oi r ga we umont sha3i -use, ser pee y r --r s- tng-,--pi-pe-or-tubin . All casing including surface protection and production strings, shall be eitLer seamless steel or equivalent quality oil well casing. Each production string of casing must comply with at least the following minimum internal pressure y;eld strength, computed in accordance with A.P.T. standards, to wit•. Depth of String In Feet- Internal Pressure Rating (psi) 01 . - 6;0001 1;500 lbs. 6;0001 - 70-000t 5;000 lbs. ; 0001 - 890001 6, 000 lbs: x;0001 — 9;0001 7;000 lbs. 9,0001 — 10,000, $,000 lbs. ,,C01d Lv4f-et Each joint and length of each particular casing strif g shall have prior to setting unconditionally passed a complete iattrftal and a Urnai i nsp.+ oti-on, witt_auch-i-nspection -having-bbeh-at leant' cam aba�e ZDmp1etsspei3tion-4erxice availat'1e by either e -Tu sopa GHo 1-Field-Nater"l--Company,--Inc:; r�ste=In etionC Section 1 - Setting and Cements Casing: No well shall be drilled withi the city limits of Beaumont without properly setting surface casing to a minimum depth of 1,000 feet. No well shall be drilled within the city limits of Beaumont without cementing the surface casing by the pump and plug method with sufficient cement to com- pletely fill all of the annular space behind such casing to the sur- face of the ground; and without cementing the production string by the pump and plug method with sufficient cement to completely fill all the annular apace behind the production string to at least 600 feet above the highest oil and/or gas bearing horizon; and in the event a protection string ofcasing be required under the terms of this Ordinance, without cementing the protection string by the pump and plug method with sufficient cement to completely fill all the annular space behind the protection string to at least 600 feet above the highest oil and/or gas bearing horizon Section 16 - Valves and Blow -Out Preventers: No well shall be drillea withiothe city limits of BeaumoRt—without properly equip- ping thA.Xanductor-aaaing.-Mben x4mut,.pruperly�quip<pi the surface casing when set with at least one master valve and at least two ram type blow-out preventers; and without properly equipping the protects casing when set with at least one master valve and at least hn type aAA OA blow-out preventers; and without properly equipping the production casing during completion operations and Q kover oper tions wi Q^4 101 at least one master valve and at least ram type low-ou pre- hyir, venters. On each well drilled a valve cock or kell cock shall be installed on the kelly used. Each blow-out preventer shall be tested at least once every eight-hour period and all control equip- ment shall be in good working condition and order at all times. P, Section 1 Drillin& Fluid: No well shall be drilled or reworked with n the city limits of Beaumont without using mud as the drill- ing fluid at all times. Prior to the time the well reaches a total depth of 5,000 feet or the -depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud laden drilling fluid shall be at all times main- tained at not less than ten pounds per gallon. After the well reaches a total depth of 5,000 feet or the depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud laden drillin€ fluid shall be at all times maintained at such weight as will provide a hydrostatic head of not less than five hundred pounds per square inch in excess of the formation pressure. Section 18 - Drill Stem Tests: It shall be unlawful and an offense or any person in connection with the drilling or reworking opera- tions of any well within the city limits of Beaumont to take and to complete any drill stem test or tests except during daylight hours and then only if the well effluent during the test is produced through an adequate oil and gas separator to storage tanks, and the effluent. remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid -down the annulus and up the drill pipe. Section 1 - Tubin : All tubing used in any well within the city 1im� s o e ty of Beaumont shall be seamless steel tubinS hav- ing not less than a minimum internal pressure yield strength of 7,000 pounds per square inch if used in connection with a well com- pletion at a depth not exceeding 7,000 feet, or less than a minimum internal pressure yield strength of 10 000 pounds per square inch if used in connection with a well completion at a depth in excess of 7,000 feet. On all flowing 'ells the tubing shall be set on a - packer, placed not more than 100 feet above the producing horizon, with the annular space between the tubing and the next adjacent casing string being left filled and maintained with mud laden drill- ing fluid having a specific gravity of not less than that of the mud required to be used in drilling; the well at the depth of the horizon in which it is completed. Section 20 - Bradenhead: Each well drilled within the city limits of Beaumont shall be equipped with a bradenhead with -a working pressure of not less than 6,000 pounds per square inch. Braden - heads shall not bye welded. The bradenhead installed on the surface casing, shall be set above ground level and shall be equipped with fittings having a test pressure rating of not less than 6,000 pounds per square inch. The Bradenhead pressure shall be checked -at least once each calendar month and if pressure is found to exist, proper remedial measures shall be immediately taken to eliminate the source and the existence of the pressure. Section 21 - Christmas Tree and Well_Head Connections: The Christ- mas tree and Ell well head connections onea�1l drilled within the city limits of- Beaumont shall be r .-and: Q',, a 1 hells completed �o � at a depth above 4,000 feet the Christmas tree and well head connec- 4 tions shall have at least a minimum working pressure of 2,000 pounds f per square inch and a minimum test pressure of at least 4,000 pounds ��iC per square -inch; and on all wells completed to a depth of from 4,001 to 7,000 feet the Christmas tree and well head connections shall have at least a minimum working pressure of 3,000 pounds per rFsqua�e, perr squareinch inch; a dminimum on alltest wells co pletedressure of abelowleast a depth of 7,000 SY � Y � 6. feet the Christmas tree and well head -connections shall be at least a mininum working pressure of 5,000 pounds per square inch and a minimum test pressure of at least 10,000 pounds per square inch. All piping and fittings connecting the well head to an oil gas separator shall have at least the same ninimun working pres- sure and minimum test pressure as hereinabove speci-fied for Christmas tree and well head connections. In the event the surface shut-in pressure of any well -in the city limits of Beaumont exceeds 2,000 pounds per square inch, the flow wing of the Christmas tree shall be equipped with an automatic closing safety valve in addi- tion to the regular control valves. 111---- Section 22 - Premises to be Kept Clean and Sanitary, The premises sball be kept in a•c can ana sanitary condition, ree from rubbish of every character, to the satisfaction of the Health Officer of The City of Beaumont, at all times drilling; operations or rework- ing operations are being conducted, and as long thereafter as oil and/or gas is being produced therefrom. Section 2 - Muff1 rs RIquired, Motive power for all operations aTter completion of drilling operations shall be electricity or properly muffled gas or gasoline engines; such Mufflers to be ap- proved by the Oil and C. -as Inspector prior to their use. Section Storage T ks and Se arators, It shall be unlawful and an oense for any person to use, construct or operate in connec- tion with any producing well within the city limits of Beaumont any crude oil storage tanks except to the extent of two steel tanks for oil storage, not exceeding 500 barrels capacity each, and so con- structed and maintained'as to be vapor tight and each surrounded with an earthen fire wall at such distance from the tanks as will under any circumstances hold and retain at least one and one-half times the maximum capacity of such tank. A permittee may use, con- struct and 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 constructed and maintained as to be vapor tight. Each oil gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head. Section 2 - Fence: Any person who completes any well as a producer shat have the obligation to enclose said well, together with its surface facilities and storage tanks, by a substantial smooth net wire fence sufficiently high and properly built so as to ordinarily keep persons and animals out of the enclosure with all gates there- to to be kept locked when the permittee or his employees are not within_ the enclosure. It is provided, however, that the type of fence in a noncongested area shall be designated and approved by the Oil and Gas Inspector. Section 26 - Venting and Flarin of Gas: No person engaged in drilling or operating any well shall permit gas to escape or be vented into the air unless said gas -be flared and burned. All gas flared or burned from a torch, pipe, or any other burning device, within the city limits of Beaumont must be done in such manner so as not to constitute a fire hazard to any property; and the location of the torch, pipe, or other burning device, the construction there- of, the maintenance thereof $ and the operation thereof, shall at all times be in full compliance with such regulations as may from time to time be issued by the Oil and Gas Inapector of The City of Beaumont. 7• Section 27 - Abandonment and PluaeinS: Whenever any well is aban- done itshall be the oUrg-ation of the permittee and the operator of the well to set a cast iron bridge plug in the top of all the remainingcoilpletion and protection casing sections and a 100 foot cement pug pumped below and above each such bridge plug, and to set a cast iron bridge plug as low as possible in the surface cas- ing and a 100 foot cement plug pumped below and above such bridge plug. Fo surface string or conductor string of casing may be pulled and removed from a well. Tha production string of casing; :say be removed from a point 100 feet or more above the shoe of the protection string. The protection string of casing may be removed from a point 100 feet or more above the shoe of the surface string of casing. Whenever any such well is abandoned and plugged, it shall be the further obligation of the permittee and the operator of the wall to, cut the' surface casing off at least six feet below the surface of the ground, to place at least a 25 foot cement plug in the top of the casing and to weld the top of the casing com- pletely shut with a reaUting hole being completely filled to the surface of the ground and duly tamped. ,Any additional provisions or precautionary measures prescribed by the State of Texas or the Railroad Commission of the State of Texas in connection with the abandormont and plugging of a well shall be complied. with by the permittee. Section 28 - Disj2osal of Salt Water: Pernittee shall make adecivate prov s on$ for the disposal of all salt water or other impuritfes which he may bring to the surface, such disposal to be made in such manner as to not contaminate the water supply, present or prospec- tive, or to injure surface vegetation. Section_29_- Violation of Laws_ c?r_Regulati_ona: Any violation of the laws of the State of Texas or any rules, regu ations or require- ments of any State or Federal regulatory body having jurisdictf on in reference.;to drilling, completing, equipping, operating, produc- ing, maintaining, or abandoning an oil or gas well or related ap- purtenances, equipment or facilities, or in r9ference to fire galls, fire protection, blow-out protection, safety protection, or conven- ience of persons or property, shall also be a violation of this Ordinance, and shall be punishable in accordance u-ith the provis- ions hereof. Section 30 - Severability: If any section, paragraph, subdivision, clause, phrase or provision of this Ordinance shall, for any reason, be adjudged invalid or held to be unconstitutional, the invalidity or unconstitutionality of such particular section, paragraph, sub- division, clause, phrase or provision so declared shall not affect the validity or constitutionality of the remaining provisions here- of, but the same, and each of thio., shall remain in full force and effect. Seettion 31 — Penalty: It shall be unlawful and an offense for any person to—violo_ ate or neglect to comply with any provision hereof irrespective of whether or not the verbage of each section hereof contains the specific language that such violation or neglect is unlawful and is an offense. -Any person who shall violate any of the provisions of this Ordinance, or any of the provisions of a drilling and operating permit issued pursuant hereto, or any condition of the bond filed by the permittee pursuant to this Crdinance, or who shall neglect to comply with the terms hereof shall be deemed guilty of a misdemeanor and shall, on conviction thereof, be fined in any sum not less than five ($5.00) dollars nor more than two hundred ($200.00) dollars; and the violation of each separate,pro- vi sion of thi. ;i - Ordinance, and of said permit, and of said , band, shall be considered a separate. offense,, and each days violation of each separate-provision thereof shall-be considered a separate offense: In addition to the foregoing penalties, it is further provided that the 'City' Council of The City .of - Beaumont at any regular or special session or meeting thereof, may,. provided '"-yen (10) days notice has'been given to the permittee that revocation is to.be considered at such meeting, revoke or suspend any permit issued under this'.Qrdinance and under which drilling or productr1g operations are bean; coxiducted in the event the permittee thereof as violated any provision of said permit,-said bond or this Ordi- nance. Iu the event the permit be revoked, the p;r;ittee may make application to the City Council-of The City of'Beaumont for a re- i ssuance ' of such permit, and the action of the City Council thereon shall be ' f ina1: PASSED by -the City Council this day of , A, C. 1950. .....""' 9.