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HomeMy WebLinkAboutORD 29-Wf. . "; AN ORDINANCE CS�LGC. �y-VlL AN ORDINANCE REGULATING THE DRILLING OF OIL OR GAS WELLS WITHIN THE CITY LIMITS OF THE CITY OF BEAUMONT; DEFINING CERTAIN TERMS; PROHIBITING THE DRILLING OR OPERATION OF ANY WELL WITHOUT A PER- MIT; PROVIDING FORA FILING FEE TO.BE PAID IN CONNECTION WITH APPLICATION FOR PERMIT; PROVIDING FOR THE APPOINTMENT OF AN OIL AND GAS INSPECTOR; PROVIDING.FOR THE TYPE OF EQUIPMENT TO BE . USED IN DRILLING AND THE MANNER OF.DRILLING, COMPLETING,AND ABAN- DONING OF OIL OR GAS WELLS; PROVIDING -THAT VIOLATION OF CERTAIN LAWS OF THE.STATE OF TEXAS AND CERTAIN REGULATIONS OF REGULATORY BODIES SHALL BE A VIOLATION OF THIS ORDINANCE;.PROVIDING THAT THE INVALIDITY OR UNCONSTITUTIONALITY OF ANY PARTICULAR PROVISION OF THIS ORDINANCE SHALL NOT AFFECT THE VALIDITY OR CONSTITUTION- ALITY OF THE REMAINING PROVISIONS; PROVIDING -FOR A PENALTY,.AND REPEALING THE DRILLING ORDINANCE OF AUGUST 29, 1950 AND -ALL OTHER ORDINANCES IN CONFLICT HEREWITH. BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: Section 1 - Definitions: For the purpose of this Ordinance, and for all pur- poses under this Ordinances, the following words and terms wherever and when ever 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, associa- tion, corporation,.club, society, cooperative, trust, municipal corporation or political subdivision whatsoever.. (b) The word t'Welltt shall include and mean any hole or holes, bore or bores, to any sand, formation, strata or depth for the,,purpose of producing and 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, executors, heirs, successors 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 attri- butable thereto by prudent operators in the oil and gas industry. (e) The word ttleasett as that term is used herein shall mean any tract of land subject to -an oil, gas and mineral lease or other oil and gas develop- ment contract, or any unit composed of several tracts and leases but operated as one lease, and any tract of land in which the minerals are owned by an oper- ator or someone holding under it or him, but which, due to the fee royalty ownership is developed and operated as a separate tract. Section 2 - Permit: It shall be unlawful and an offense for any person acting either for himself or acting as agent, employee, independent contractor, or servant .;of any pther 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 as- sist 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 Beaumont; and no street or alley shall 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 4 - Well Location: 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 or commercial building without the applicant having first secured the written permission of the owner or owners thereof. Section 5 - Application 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 authorized to sign same on his behalf, and it shall be filed with the ,City Clerk and be accompanied with a filing fee of $300.00 in cash. No application shall request a permit to drill and operate but one well, the said application shall include full information, including the following: (a) The date of said application; (b) Name of the applicant; (c) Address of the applicant; (d) Proposed site of the well, including: (1) Name of the fee owner; (2) Name of the lease owner; (3) Brief description of the land; (e) Type of derrick to be used; (f) The proposed depth of the well (which shall not be deeper than 12,000 feet); (g) I,iotive power of rig that is to be used. Section 6 - Issuance or Refusal of Permit: The City Council, within twenty (20) days after the filing of the application for a permit 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 and insurance provided for in Section 8 herein, and after such determination 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 Ordinance were copied ver- batim in said permit; (2) Specify the well location with particularity to lot number, block, number, name of addition or subdivision, or other available correct legal de- scription; (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 drilling operations with no cessations of such opera- tions for more than ninety(�9O) days, 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 shall cease, the term shall not terminate if the permittee commences additional reworking operations within. ninbty(,90) d ays thereafter, and if they result in the production of oil or gas, so long thereafter as oil or Bas is produced in commercial quantities from said well; (4) Contain and specify such conditions as are by this Ordinance auth- orized; (5) Specify the total depth to which the well may be drilled, not ex- ceeding the projected depth; and, (6) Contain and specify that no actual operations shall be commenced until the permittea shall file and have approved an indemnity bond in the - 2 - aq «/ -/r/0-1 T designated principal amount as so determined by the City Council and condi- tioned 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 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 notifies " the City Council in writing that he does not elect to accept the permit as tendered and wishes to withdraw his application, or if the bond of the appli- cant be not approved and the applicant notifies the City Council in writing that he wishes to withdraw his application, then upon the happening 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 hundred 0100.00) dollars as a processing fee. Section 7 - Termination of Permit: When a permit shall have been issued, the same shall terminate and become inoperative without any action on the part of the City unless within ninety (90) days from the date of issuance actual drill- ing of the well shall have commenced. 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 can- cel the permit, and the well shall be considered as abandoned for all purposes of this Ordinance, and it shall be unlawful thereafter to continue the operation or drilling of such well without the issuance of another permit. Section 8 - Permitteets Insurance and Bond: In the event a permit be issued by the City Council under the 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 a certificate of insurance, as follows: (a) k bond in the principal sum of such number of dollars as has been so determined by the City Council of The City of Beaumont, but not to be less than $25,000.00. Said bond to be executed by a reliable insurance company auth- orized to do business in the State of Texas, as surety, and with applicant as principal, 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 conditions of this Ordinance in the drilling and operation of the well. 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 six (6) months subsequent to the expiration of the term of the permit issue49 and in addition the bond will be conditioned that the permittee will promptly pay off fines, penalties and other assessments imposed upon permittee by reason of his breach of any of the terms, provisions and conditions of this Ordinance, and 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; and that the permittee 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, after abandonment, grade, level and restore said property to the same surface condition, as nearly as possible, as existed when operations for the drilling of the well or wells were first commenced; and that the permittee will indemnify and hold The City of Beaumont harmless from any and all liability growing out of or attributable to the granting of such permit. If at any time the City Council of The City of Beaumont shall deem any permitteets bond to be insufficient for any reason, it may require the permittee to file.a new bond. - 3 - , C21 -Irl If, after completion of a well permittee has complied with all of the provisions of this Ordinance, such as to removing derrick, clearing premises, etu., he may apply to the City Council to have said bond reduced to a sum of not less than $10,000.00 for the remainder of the time said well produces without reworking. During reworking operations the amount of the bond shall be increased to the original amount. (b) In addition to the bond required in Paragraph (a) of this Section, the permittee shall carry a policy or policies of standard comprehensive public liability insurance, including contractural liability covering bodily injuries and property damage, naming the permittee and The City of Beaumont, in an in— surance company authorized to.do business within the State -of Texas, said policy or policies in the aggregate shall provide fbr the following minimum coverages (1) Bodily injuries $100,000.00 one person; x$300,000.00 one accident. (2) Property -darn ge $200,000.00. Permittee shall file with the City Clerk of The City of Beaumont certi— ficates of said insurance as above stated, and shall obtain the written approval thereof by the City Manager of The City of Beaumont, who shall act thereon within ten (10) days from the date of such filing. Said insurance policy or policies shall,; -,not be cancelled without written notice to the City Clerk of The City of Beaumont at least ten (10) days prior to the effective date of such cancel3ation. In the event said insurance policy or policies are cancelled, the permit granted shall terminate, and permitteets rights to operate under said permit hhall cease until permittee files additional insurance as provided herein. If,.after'completion of a well permittee has complied with all of the provisions of this Ordinance, such as to removing derrick, clearing premises, etc., he may apply to the Bity Council to have said insurance)policies�may­be reduced as follows: (1) Bodily injuries $50,000 one person; $100,000.00 one accident, (2) Property damage 650,000.00, for the remainder of the time said well produces without reworking. During re— working operations the amount of the insurance policy or policies shall be in— creased to the original amount. Section 9 — Appointment of Oil and Gas Inspector: The City Council shall ap— point 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 GRs Inspector to enforce the provisions of this Ordinance. Section 10 — 'dell Below 12,000 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 twelve thousand (12,000) feet; and no drilling and operating permit shall be granted for any well to a true vertical depth in excess of twelve thousand (12,000) feet. Section 11 — Deeper Drilling: Once any well has either been completed as a producer or h�imdoned 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 supple— mental permit after filing a supplemental application with the City Clerk specifying: (1) The -then condition of the well and the casing therein; (2) The depth to which it isproposed such well be deepened, not to exceed in any event a total true vertical depth from the surface in excess of twelve thousand (12,000) feet; - 4 - 0 , i . , , 1 f. (3) The proposed casing program to be used in connection with pro— posed 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 Ordinance provided 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 authorizing 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 ex— cess of twelve thousand (12,000) 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 per— son 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 steampowered rig, and all engines shall be equipped with adequate mufflers approved by the Oil and Gas Inspector; or to permit any drilling rig or derrick to remain on the premises or drilling site for a period longer.- than sixty (60) days after com— pletion 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 all times; provided, however, it shall not be necessary to keep an extra watchman on duty on the premises when other worlvnen of permittee are on said premises. 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 one hundred and twenty (120) days after completion of the well. 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 mini— mum internal pressure yield strength, computed in accordance with A.P.I. standards, to wit: Depth of String in Feet Internal Pressure Rating (psi) 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 Cementing Casing: No well shall be drilled within the City limits of Beaumont without properly setting surface casing to a minimum - 5 - 7T1 Casing 01 — 3,4001 2,720 lbs. 3,4001, - 4,400t 3,740 lbs. 4,4001. - 5,850' 4060 lbs. 5,850t - 7,6501 6,340 lbs. 7,6501 - 9,4501 7,240 lbs. 9,4501 —11,30W. 8,160 lbs. 5J11 Casing 01 — 4,4001 ;3,110 lbs. 4,4001 — 5,6001 4,270 lbs. 5,600t - 6,9o01 4,810 lbs. 6,9OW — 8,0001 5,320 lbs. 8,0001 —10,005 7,740 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 Cementing Casing: No well shall be drilled within the City limits of Beaumont without properly setting surface casing to a minimum - 5 - 7 C91��C , 2q- Irk depth of eight hundred (800) 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 completely fill all of the annular space be -- hind such casing to the surface of the ground; and without cementing the pro- duction 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 event a 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 Preventers: No well shall be drilled within the city limits of Beaumont without properly equipping the surface casing when sed, with at least one master valve, and without properly equipping the protec- tion casing when set with at least one master valve and one fluid -operated ram type blow-out preventer; and without properly equipping the production casing during completion operations and workover operations with at least one master valve and at least one fluid -operated ram type blow-out preventer. On each well drilled a valve cock or kelly cock shall be installed on the kelly used. Each blow-out preventer shall test six thousand (6,000) pounds and its mechanical operation shall be tested at least once every eight=hour period, and all control equipment shall be in good working condition and order at all times. Section 17 - Drilling Fluid: No well shall be drilled within the city limits of Beaumont without using mud as the drilling fluid after the setting of surface casing as provided in Section 15 hereof. 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 maintained at not less than ten (10) 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 (500) pounds per square inch in excess of the formation pressure. In reworking a well a drilling fluid shall be at all times maintained at such weight as will provide a hydrostatic head of not less than five hundred (500) 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 operations 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 - Tubing: All tubing used in any well within the city limits of The City of Beaumont shall be seamless steel tubing having not less than a minimum internal pressure yield strength of 5,280 pounds per square inch if used in con- nection with a well completion at a depth not exceeding 7,000 feet, or -less than a minimum internal pressure yield strength of 7,260 pounds per square inch if used i.n.connection"with a well completion at a depth in excess of 7,000 feet. 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 3,000 pounds per square inch. Bradenheads 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 working pressure rating of not less than 3,000 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. - 6 - 4A �, �z (Al Section 21 - Christmas Tree and Well Head Connections: The Christmas tree and all well head connections on each well drilled within the city limits of Beau- mont shall be as follows: On all flowing wells completed at a depth of above 4,000 feet the Christmas tree and well head connections shall have at least a minimum working pressure of 2,000 pounds per square inch and a minimum test pressure of at least 4,000 pounds 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 conte nections 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 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 pressure and minimum test pressure as hereinabove specified for Christmas tree and well head connec- tions. 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 addition to the regular control valves. Section 22 - Premises to be Kept Clean and Sanitary: The premises shall be kept in a clean and sanitary condition, free from rubbish of every character, to the satisfaction of the Health Officer of The City of Beaumont, at all times drilling operations or reworking 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 after completion of drilling operations shall be electricity or properly muffled gas, gasoline or Deisel engines; such mufflers to be approved 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, construct or operate in connection with any producing well within the city limits of Beaumont any crude oil storage tanks except to the ex- tent of two steel tanks for oil storage, not exceeding 500 barrels capacity each, and so constructed 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 circum- stances hold and retain at least one and one half times the maximum capacity of such tank. A permittee may use, construct 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 25 - 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 thereto to be kept locked when the permittee or his employees are not -within the enclosure. It is provided, however, that in non -congested areas the Oil and Gas Inspector" in his discretion, may waive the requirement of any fence or may designate the type of fence to be erected. Section 26 - Venting and Flaring of Gas: No person engaged in drilling or oper- ating 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 fixe hazard to any property; and the location of the torch, pipe, or other burning device, the construction thereof, the main- tenance thereof, and the operation thereof, shall at all times be in full ;com- pliance with such regulations as mal from time to time be issued by the Oil and Gas Inspector of The City of Beaumont. - 7 - Section 27 - Abandonment and Plugging: Whenever any well is abandoned it shall be the obligation of the permittee and the operator of the well to set a 200 -foot cement plug in the bottom of the surface casing with the bottom of the plug 100 feet below the surface casing -.section, and the top of the plug 100 feet above the surface casing section; and'to set a 50 -foot cement plug in the top of the surface casing. No.surface or conductor string of casing may be pulled or removed from a well. During initial abandonment operations it will be the obligation of the permittee and the operator of the well to flood the well with mud -laden fluid weighing not less than ten (10) pounds per gallon, and the well will be kept filled to the top with said mud -laden fluid at all times; mud -laden fluid of the above specifications will be left in the well bore below and between cement plugs. Any additional provisions or precau- tionary 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 - Disposal of Salt Water: Permittee shall make adequate provisions for the disposal of all 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 prospective., or to injure surface vegetation. Section 29 - Violation of Laws or Regulations: Any violation of the laws of the State of Texas or any rules, regulations or requirements of any State or Federal regulatory body having jurisdiction in reference to drilling, complet- ing, equipping, operating, producing, maintaining, or abandoning an oil or gas well'or related appurtenances, equipment or facilities, or in reference to fire walls, fire protection, blow-out protection, safety protection, or con- venience -of persons or property, shall also be a violation of this Ordiijancg and shall be punishable in accordance with the provisions hereof. Section 30 - Severability: If any section, paragraph, subdivision,'elause, phrase, or provision of this -Ordinance shall, for any reason, beadjudged in- valid or held to be unconstitutional, the invalidity or unconstitutionality of such particular section, paragraph, subdivision, clause, phrase or provis- ion so declared shall not affect the validity or constitutionality of the remaining provisions hereof, 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 hundred ($200.00) dollars; and the violation of each separate provision of this Ordinance, and of said permit, and of said bond, shall be considered a separate offense,. and each-dayts violation of each separ- ate 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 ten (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 con- ducted in the event the permittee thereof has -violated any provision of.said permit, said bond, or this Ordinance. In the event.the permit be revoked, the permittee may make application to the City Council of The City of Beaumont for a reissuance of such permit, -and the action of the City Council thereon shall- be hallbe final. M=M , 0 Section 32 — Repealing Clause: Any and all ordinances of the City of Beaumont in conflict with any of the provisions of this Ordinance are hereby expressly repealed, and the drilling ordinance passed by the City Council of The City of Beaumont on the 29th day of August, 1950, is expressly repealed in its entire— ty. PASSED by the City Council this �_ day of Qi cam. , A. D. 1951. - 9 - — Mayor — To: From: Subject: INTER -OFFICE MEMORANDUM CITY OF BEAUMONT, TEXAS Date: January 15, 1951 Mayor Otho (Plummer George E. Murphy, City Attorney Drilling Ordinance. COMMENT: If you recall, at the time we adopted our present ordinance regu- lating the drilling of oil wells within the city limits we were rushed in preparing the ordinance due to pressure by-property--owners.,out along Lucas Drive. Since that time I have had many meetings with a group representing the independent oil operators, and also with a group representing some of the major oil companies, and after giving the matter further study for several weeks I have written a new ordinance amending the present ordinance, and all concerned are interested in having the ordinance passed tomorrow, due to the fact that they expect to make application -for some new locations this week. The main changes have had mostly to do with technical matters, such as on tubing and casing, and changes with reference to the.Christmas tree and bradenhead, and also we have changed the provision requiring a minimum bond of $200,000.00 and in its place provided for a $25,000.00 bond plus liability and property damage insurance in the minimum sum of $100,000-$300,000- I will be glad to discuss this matter with the City Council tomorrow morning before our regular meeting so that it may be passed at the regu- lar meeting. George E. Murphy City Attorney GEM: h attach.