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HomeMy WebLinkAboutORD 76-38• ORDINANCE NO. / 6 J y ENTITLED AN ORDINANCE REQUIRING A PERMIT FOR THE DRILLING OF AN OIL AND/OR GAS WELL IN THE CITY OF BEAUMONT; ESTABLISHING STANDARDS FOR ISSUANCE AND DENIAL OF SAID PERMIT; ESTABLISHING INSURANCE AND BOND REQUIREMENTS; PROVIDING FOR REGULATION OF DRILL SITES DURING DRILLING OPERATIONS AND AFTER ABANDOIZ=; PROVIDING DEFINITIONS; PRO- VIDING SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That Chapter 24 of the Code of Ordinances of the City of Beaumont be and the same is hereby repealed and a new Chapter 24 is hereby enacted, said chapter to read as follows: Section 24-1. Definitions: For the purpose of this chapter, all technical or oil and gas industry words or phrases used herein and not specifically defined herein shall have that meaning customarily attributed to them by the oil and gas industry. The following words and terms wherever and whenever used or appearing in this chapter shall have the scope and meaning hereinafter defined and set out in connection with each: Applicant shall mean any person who applies for a drilling permit hereunder. Approved, Approved Type, or Approved Design, is and includes improve- ments, equipment or facilities of a type or design approved by the Code Enforcement Administrator. Building Code shall mean'the, ordinance of the City of Beaumont known by that title and all amendments thereto. Building Permit shall meanthe permit required by the Building Code. Code Enforcement Administrator shall mean the Code Enforcement Ad- ministrator of the City of Beaumont or his successor. Canpletion of Drilling shall mean that a well is completed, for the purpose of these regulations, 30 days after the drilling crew has been released. The drilling crew is released within the meaning of this para- graph when work -at the wellsite for drilling or completing the well is -:sus- pended, either temporarily or permanently. Derrick shall mean any structure, improvement, equipment, or fa- cility,.and each and every part thereof, whether completed or not, and which is required, or used or useful.for or in connection with drilling, open- - ating, or maintaining a well for the:production of oil, gas or other hydro- carbons from the earth, together with all parts of and appurtenances to such structure, improvement, equipment, or facility, including, but not limited to, foundations and sills therefor, pump -houses, engine -houses, or housings, pipe -racks, postings,;. walkways, mud -ditches, and crown block. Diligence shall mean that the drilling derrick is in its operating position -over the well,.properly anchored and supported and that an oper- ating crew is on duty at the drill site at all reasonable times. Drilling shall mean entry onto.the site with equipment and/or personnel for the specific purpose of actually opening a well hole intended to produce oil or gas. Drill Site shall mean the premises used during the drilling and sub - Sequent life of a well or wells, which is necessary for the safe operations 194 =+ a• P Designated Agent shall mean the designated agent of applicant or permittee. Erect shall mean to build, construct, install, assemble, put together, improve, alter, move, reconstruct, restore, renovate, renew or'repair any building, structure, improvement or facility, or any part of portion thereof or foundations therefore, or appurtenance thereto, whether or not such building, structure, improvement or facility is completed, or to work upon, or in -any way, assist in such erection. -2- Flammable Liquids shall mean and include oil and other fluid hydrocarbons, including liquefied gases or other flammable liquids, having a flash point below two hundred degrees Fahrenheit (2001F). The flash point of all commodities shall be determined by the Elliot, Abel, Abel- Pensky, or Tag closed cap testers, but the Tag closed cap tester, standard- ized by the United States Bureau of Standards, shall be authoritative in case of dispute. All tests shall be in accordance with the methods adopted by the American Society for Testing Materials, and approved by the American Standards Association, or their successors. Gas shall mean the gaseous components or vapors occurring in or derived from petroleum or natural gas. Lessee shall mean the possessor of the right to explore and recover minerals from the premises. Lessor shall mean the owner of mineral rights. Maintenance shall mean and include the repair and replacement of parts of a structure when the repair or replacement does not alter or lessen. the strength or stability of the structure. Maintain shall mean to repair, or otherwise keep or place in working condition, and also to permit, or authorize to exist, regardless of whether any actual maintenance work is done. For the purposes of the chapter, an oil well, well -hole, derrick and production equipment, shall be deemed to be "maintained" upon the premises in and upon which the same were or are being drilled, erected or installed, until the following tasks are accom- plished: 1. Every part of such derrick and production equipment shall be removed from the drill site. 2. All requirements for abandonment established by the state and any other regulatory authority having jurisdiction must be met. 3. All sumps, cellars, rotary mud, concrete, oil and rubbish must be removed and the drill site cleaned and all ditches must be leveled. -3- t 4. All property of the City which may have been dis- turbed or damaged by the operations at the drill site shall be repaired and cleaned as needed and restored to substantially the same condition as existed at the time of the issuance of the permit. _ Occupied Structure includes only those structures that are regularly occupied by persons at least 20 hours per week. Oil shall mean petroleum and other fluid hydrocarbons obtained from the earth. Operate shall mean to work or act upon, or to cause or permit natural or artificial forces to function in connection with any structure, plant, equipment, machinery, or facility with the purpose of utilizing the same for the purpose for which it was or is erected or maintained, or for any other purpose, and when used with reference to a well, well -hole, derrick or production equipment, means and includes any acts or functions performed or permitted to occur in connection with such well, well -hole, derrick or production equipment from and after the completion of the drilling of the well, for the purpose of producing or obtaining oil, gas, or other hydro- carbons from the ground, and for the purpose of collecting and handling the same and making deliveries thereof at the well or from the shipping tanks or lease tanks in the vicinity of,the well. "Operate" includes all functions performed or permitted to occur i -n connection with such production, col- lection, handling and delivery, including the repair, reconditioning, re- storation, perforating, redrilling or deepending of said well or well -hole, and the dehydration or cleaning of said oil prior to making such deliveries as aforesaid.. Operator shall mean the person, whether owner, lessee, or independent contractor, actually in charge and in control of the drilling, maintenance, operation or pumping of a well or lease. Owner shall mean a person who has legal or equitable title to the surface of the drill site. Permit or Drilling Permit shall mean the written, typed or printed permission issued to applicant by the Code Enforcement Administrator under the authority of this chapter. -4- Permittee shall mean any person to whom a permit has been granted and issued under and pursuant to the terms of this chapter by the Code Enforcement Administrator. Person shall mean an individual; a receiver; a trustee; a partner- ship; a joint adventure; a firm; an.._.unincorporated association; a syndicate; a club; a society; a trust; a private corporation; a public corporation; a municipal corporation; a county, a state, or national government; a commission; a water district; a utility district; a political subdivision; and a,.drainage, irrigation, levee, reclamation, flood control, or water conservation district, whether acting for himself or itself or in any representative capacity. Production Equipment shall mean pumping equipment, tubing, pipes, gauges, meters; valves, oil and gas separators, sumps, flow tanks, production tanks, shipping tanks, lease tanks, shipping pumps, loading racks and all other structures, machinery, equipment and facilities, and each and every part thereof, whether completed or not, required.for or used or useful in connection with the operation, repair, reconditioning, redrilling or main- tenance of a well or well -hole, and the collection, handling and delivery of oil, gas or other hydrocarbons therefrom, and which structures, machinery, equipment and facilities are not included in the "derrick", "well", or "well - hole", as heretofore defined. Production Equipment also includes any wash tanks, dehydration plant or other equipment or facility operated or maintained by or in behalf of the operator of said well for the purpose of separating sand, water and other foreign substances from the oil, gas or other hydro- carbons produced or obtained,by said.operator, prior to shipping or delivering said oil from the shipping tanks or lease tanks at the well, or in the vicinity thereof. Re -drilling shall mean the deepening of an existing oil well or other- wise drilling beyond the extremities:(to the side) of the existing well casing. The provisions::._of this ordinance relating to drilling shall be equally applicable to re -drilling. Structure shall mean that which is built or constructed; a tank, edifice, or building of any kind. -5- 3-1013 1 Suspended operations shall mean the approved temporary suspension of drilling or re -drilling operations pending a resorption of operations or abandonment. Tank shall mean a container, covered or uncovered, used in con- junction with the drilling or production of an oil well, for holding or storing liquids at or near atmospheric pressure. Urbanized Drilling Site. A drill site shall be considered urbanized where an occupied commercial, residential or industrial structure exists within 1,000 feet of the proposed well -hole. Non -Urbanized Drilling Site. A drill site shall be considered non - urbanized if no occupied commercial, residential or industrial structure exists in use within 1,000 feet of the proposed well -hole. Well Head. A well head is composed of the bradenhead, christmas -tree and all well connections. Section 24-2. No person shall conduct any drilling or redrilling within the corporate limits of the City of Beaumont without having obtained a permit for said drilling or redrilling under this chapter. It is hereby declared a nuisance for any person to conduct any drilling operations within 1,000 feet of the property line of any school of the Beaumont Independent School District or the South Park Independent School District or any parochial school. It is hereby declared a nuisance for any person to conduct any drilling operations within 1,000 feet of the property line of any hospital, convalescent home, or nursing home located within the city limits of the City of Beaumont. It is hereby declared a nuisance for any person to conduct any drilling or redrilling operation outside the city limits of the City of Beaumont closer than 1,000 feet to any occupied structure other than a school, hospital, convalescent home or nursing home located within such city limits without obtaining a permit for said drilling or redrilling under this chapter. 0 It is hereby declared a nuisance for any person to construct any storage tank or tanks within 1,000 feet of the property line of any school of the Beaumont Independent School District or the South Park In- dependent School District or any parochial school, hospital, convalescent home, orphanage, or nursing home located either within or outside the city limits of Beaumont. Section 24-3. It shall be the responsibility of the Code Enforcement Administrator to review impartially and to approve or disapprove all applications for drilling permits. The Code Enforcement Administrator, based upon the criteria established herein, may require the applicant for a permit hereunder to do those things necessary to insure the health, safety, and welfare of the citizens of the City. Items required shall be clearly stated in the permit issued hereunder. The Code Enforcement Administrator is hereby authorized to approve or disapprove the actions of the permittee not otherwise covered by the permit application during the drilling and post -drilling operations in accordance with the terms of this ordinance only. The Code Enforcement Administrator shall issue or deny a permit within ten (10) days of receipt of a properly completed application for drilling at a non -urbanized drilling site. The Code Enforcement Administrator shall issue or deny a permit within 30 days of the receipt of a properly -completed application for drilling at an urbanized drilling site. A. If the Code Enforcement Administrator denies a drilling permit, he shall notify the applicant in writing of such denial and the reasons therefor. B. If the Code Enforcement Administrator grants a drilling permit, the permit, in a form as determined by the Code Enforcement Administrator, shall be mailed to the applicant. Section 24-4. Applications for permits to drill or redrill any oil or gas well shall be made in writing to the Code Enforcement Administrator of the City of Beaumont and shall include the following: -7- A. The legal description of the proposed drill site and the legal description of the real property in the City which the applicant proposes to explore for oil and gas purposes. A map shall be attached to the ap- plication, which map shall clearly show and outline the proposed drill site with reference to existing city street or city limits; B. A statement of what property the applicant has the right, by reason of ownership or permission of the owner, to pass through and enter for drilling purposes and a further statement that the applicant agrees, in finally locating the well, not to pass through or enter any property where he does not have such right; C. The proposed location, type, kinds, size, and amount of major equipment and a general description and the method of operation of the pro- posed well; D. The proposed method of handling and using any product proposed to be developed at the well site and the proposed method of disposing of all waste products anticipated; E. A statement from a licensed surveyor or registered professional engineer verifying the drill site as being either an urbanized or a non - urbanized drilling site as defined herein. F. Each application shall state the maximum depth to which the ap- plicant desires to drill, and each application shall be accompanied by an application fee of Ten one Hundredths ($.10) Dollar per foot of depth. The maximum fee for any one well shall be $1,000.00. Should applicant drill to a greater depth than that stated in his application, a supplemental fee shall be required based upon the increased depth. Section 24-5. The Code Enforcement Administrator is authorized to engage a person qualified in petroleum engineering, petroleum geology, or the oil industry as necessary to determine whether to issue or deny a permit and to assist the Code Enforcement Administrator in the writing of a permit. When funds are sufficient, payment for such services is to be made from the permit fees re- ceived hereunder. Section 24-6. Prior to the issuance of any permit hereunder, the applicant shall furnish the Code Enforcement Administrator with a bond in the principal stun of Twenty -Five Thousand and No/100 ($25,000.00) Dollars per drill site. Such bond shall be executed by an insurance company authorized to do business in the state, as surety, and with applicant as principal, naming the Cityfor the benefit of the City conditioned that the permittee will comply with the terms and conditions of this chapter. In addition, the bond will be con- ditioned that the applicant will promptly pay fines, penalties and.other assessments imposed upon applicant by reason of the breach of any of the terms, provisions and conditions of this chapter, and that the applicant will promptly restore to their former condition streets, sidewalks, and other public property which may be damaged in drilling operations; and that the applicant will comply with all fencing, screening and site restoration requirements of this chapter. If at any time the Code Enforcement Administrator should find the applicant's bond to be insufficient for any reason, he may require the applicant to file a new bond. Section 24-7. Upon written request from a permittee, who has complied with all the provisions of this chapter, the Code Enforcement Administrator may permit a reduction of the permittee's bond to a sum of not less than $10,000.00 per drill site for the remainder of the time such well produces. Section 24-8. Prior to issuance of any permit hereunder, applicant shall furnish the Code Enforcement Administrator with a certificate of insurance showing a valid policy or policies of public liability insurance, covering bodily injuries and property damage. Said insurance shall be written by a company authorized to do business in this state. Such policies shall provide for the following mini- mum coverage in an urbanized area: A. Bodily injuries and general liability one oc- currence: $2,500,000.00. B. Property damage: $1,000,000.00. In a non -urbanized area: A. Bodily injuries and general liability one oc- currence: $1,000,000.00. B. Property damage: $500,000.00. � r g Section 24-9. The Code Engorcement Administrator may waive the requirements for surety bond and policies of insurance as required herein as to any permittee who is financially responsible and capable of meeting obligations for amounts in excess of Five Million and No/100 ($5,000,000.00) Dollars, upon permittee filing with the Code Enforcement Administrator of the City in lieu of any such surety bond or insurance policies a letter of acceptance and indemnity ap- proved by the City Attorney, binding and obligating such permittee to abide by the conditions for which surety bond and insurance policies are required as prescribed herein, and agreeing to indemnify and hold the City harmless from any and all liability growing out of or attributable to the granting of any and all permits to such permittee including acts or omissions of the City of Beaumont, its officers, agents, and employees.in connection with said drilling permit. Section 24-10. In each case of drilling or redrilling, the distance from any well hole to any occupied structure shall bea minimurm of 300 feet, unless per- mittee obtains written consent from the owners and tenants of said occupied structure -and furnishes said written consent to --the Code Enforcement Ad- ministrator prior to issuance of said permit. Section 24-11. In each case the distance from any storage tank or tanks in conjunction with any well to any occupied structure shall be a minimum of 300 feet. Section 24-12. In each case the distance from the center of a well hole drilled under a permit issued under this ordinance and from all storage tanks installed after:_ he:::.effective date of this ordinance to the nearest traveled public or private street right of way shall be a minimum of 150 feet. Section 24-13. A vehicular access route to the site may be established at the dis- cretion of the Code Enforcement Administrator after consideration of all of the circumstances including but not limited to the existing width, load bearing capability, and composition of all streets proposed to be included in the access route; residential densities; potential interference with -10- pedestrian and bicycle traffic; the presence of effective traffic control; and thelgeneral character of the areas through which.the proposed access route would pass. Section 24-14. The oil or. gas well drilled pursuant to any drilling permit shall be drilled only within the properties which the permittee set forth in its application as the properties through which such well was proposed to pass unless the permittee secures approval of the Code Enforcement Administrator to cause such well to pass through other properties. No permittee shall drill, operate, or maintain any oil or gas well except in conformity with the terms and conditions of a permit issued under this chapter. Section 24-15. The applicant or permittee shall designate a competent representative who shall be responsible for the supervision.of drilling operations and the carrying out of the.conditions of any permit. Such representative shall be available at all times during drilling operations and shall be the respon- sible contact agent of the applicant or'the permittee whom the Code Enforce- ment Administrator may require to carry out the provisions of the permit. Section 24-16. \` 1. The well location shall be clearly marked by staking or other suitable means and identified as the "drill site". 2. Prior to commencement of any drilling operations all private roads used for access to the drill site and the drill site itself shall be surfaced so as to prevent excessive dust and mud and in a manner adequate to support the weight of mobile fire fighting equipment. Surfacing may be by boards, rock, gravel, shell, or any other material that is oiled and maintained so as to prevent excessive dust and mud. Section 24-17. All permits granted under this chapter shall be transferrable upon., approval of the Code Enforcement Administrator, after a determination that all requirements of this chapter are net by the transferee. -11- Section 24-18.. The drilling permit shall become null and void unless the permit is accepted by the applicant in its entirety in writing, filed with the Code Enforcement Administrator within thirty (30) days from the effective date thereof, and no work on such drill site shall be commenced until such permit is issued and accepted. The drilling permit shall become null and void unless drilling is commenced within 180 days of the effective date of the permit. Section 24-19. The permittee shall indemnify and save harmless the City of Beaumont, its officers, agents and employees from any and all claims, causes of action and damages of every kind, for injury to or death to any person and damages to property arising out of the operation under any drilling permit and in- cluding acts or omissions of the City of Beaumont, its officers, agents, and employees in connection with said drilling permit. Section 24-20. Whenever a person holding a permit pursuant to the provisions of this article wishes to request an extension of the time within which drilling operations are required to be commenced to a period beyond one hundred eighty (180) days after the effective date of the permit, a request for such ex- tension shall be filed with the Code Enforcement Administrator in writing and be accompanied by a fee in the amount of One Hundred Twenty -Five and No/100 ($125.00) Dollars for each well for which an extension is requested. Such request for an extension shall set forth facts showing good cause for the Code Enforcement Administrator to allow additional time for the commencement of the well. When good cause is shown, the Code Enforcement Administrator shall grant an extension not to exceed an additional 180 days. Section 24-21. A copy of the "Potential" or "Plug and Abandon Report" of any well furnished to the Texas Railroad Commission shall be concurrently filed by the permittee with the Code Enforcement Administrator. -12- C�! � d7 .. 6 J i Section 24-22. 1. No equipment shall be stored on the site which is not essential to the everyday operation of the oil well located thereon. 2. Lumber, pipes, and casing shall not be left on the site, except when drilling operations are being conducted on the site. 3. No equipment shall be stored except within the fenced areas of the site. Section 24-23. The slush pit or pits at each drilling site shall at all times be in compliance with all State and Federal requirements. Section 24-24. Within thirty (30) days after production has been established, the permittee shall enclose the well, together with its surface facilities and storage tanks by a substantial, smooth eleven (11) gauge or heavier galvanized steel net wire fence a minimum of six feet in height and provided with barbed wired supporting arms and a minimum of three (3) strands of barbed wire in- stalled at the top of each post and properly built so as ordinarily to prevent the entry of unauthorized persons into the enclosure, with all gates thereto to be kept locked when the permittee or his employees are not within the en- closure. Within six (6) months of the effective date of this Ordinance, each producing drill site in the City together with its surface facilities and storage tanks will be enclosed by a fence as defined in this section. Wells which when in operation have no externally moving parts are ex- cepted from the fencing requirements of this section; however, all storage tanks and surface facilities must be fenced as required herein. Section 24-25. Within ninety (90) days after production has been established on an. urbanized drill site containing a well which when in operation has externally moving parts, the permittee shall have completed either adequate landscaping or screening composed .of shrubbery a minimum.of six (6) feet in height, but -13- in any event tall and thick enough to shield the drilling site from public view or physical fencing and screening which effectively shields the drilling site from public view. Such required landscaping or screening is subject to the approval of the Code Enforcement Administrator concerning its adequacy in meeting the requirements of this section. Said landscaping or screening must be maintained so as to shield the drill site from public view so long as production continues on the drill site. Within six (6) months after the effective date of this Ordinance each producing urbanized drill site in the City containing a well which when in operation has externally moving parts shall be adequately landscaped or screened as provided in Section 24-25 herein. Wells which when in operation have no externally moving parts are excepted from the fencing requirements of this section; however, all storage tanks and surface facilities must be fenced as required herein. Section 24-26. A. All drilling and production equipment installed or operated upon any drill site shall be so constructed, operated, and maintained that no noise, vibration, odor, or other harmful or annoying substances or effects therefrom which can be eliminated or diminished by the use of modern and approved types of equipment, silencers, or greater care shall ever be per- mitted to result from operations on any drill site to the injury or annoyance of persons in the vicinity of such drill site. Proven technological and mechanical improvements in methods of drilling and production and in the type of equipment used therefor shall be adopted from time to time, as the same become available, if the use of such equipment,. improvements, and methods will reduce noise, vibration, odors, or the harmful effects of annoying sub- stances. B. The engines used in connection with the drilling of any oil well or any production equipment shall be equipped with an exhaust muffler or mufflers, or an exhaust muffler box, sufficient to suppress noise and to prevent the escape of obnoxious gases, fumes, sparks, ignited carbon, or soot. The type and design of any muffler or muffler box shall be approved by the Code Enforcement Administrator and by the Fire Chief or his authorized representative. MEM C. At an urbanized drilling site, the operation of oil field pro- duction equipment shall not increase the ambient noise level at any given time by more than three decibels in any octave band, when measured at a distance of 150 feet from the oil field production equipment in question. -The ambient noise level, for the purpose of this section, shall be the average of sound level meter readings taken consecutively at any given time from four or more diametrically opposite positions within an area of not more than five hundred feet nor less than two hundred feet from the oil field production equipment in question;Ia11 such readings to be taken at a distance and in such a manner so as to obtain the surrounding noise level as distinguished from the noise level produced by the oil field production equipment. However, if the ambient noise level is less than 70 decibels, the production equipment shall not generate a noise level in excess of 70 decibels measured at a distance of 150 feet from such equip- ment. D. At a non -urbanized drilling site, the operation of oil field pro- duction equipment shall not generate a noise level in excess of 80 decibels at a distance of 150 feet from said production equipment. Section 24-27. A. All of the operations at the drill site shall be conducted in a careful and orderly manner, and the premises shall at all times be main- tained in a neat, clean, and orderly manner. B. All fire -fighting equipment as.required and approved by Federal statutes shall be installed and maintained on the drill site at all times during drilling operations. In addition, each drill site shall, during drilling operations, be equipped with two (2) 150 pound dry chemical fire extinguishers equipped with wheels and also equipped with 50 feet of hose on each unit. Section 24-2:8. At all times during the drilling process 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, pro- vided, however, it shall not be necessary to keep a watchman on duty on the premises when other workmen of permittee are on such premises. a4M Section 24-29. c 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 meet or exceed the minimum internal pressure yield strength established under American Petroleum Institute standards. Each joint and length of each particular casing string shall have prior to setting unconditionally passed a complete cold water test and the Code Enforcement Administrator shall be furnished a copy of said test re- sults. Section 24-30. No well shall be drilled within the city limits without properly setting surface casing to a minimum depth of eight hundred feet. No well shall be drilled within the city limits 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 with- out cementing the production string by the pump and plug method with suf- ficienti'cement to completely fill all of the annular space behind the pro- duction string to at least five hundred feet above the highest oil and/or gas bearing horizon. In the event a protection string of casing be re- quired under the terms of this chapter, said protection string shall not be installed 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 five hundred feet above the highest oil and/or gas bearing horizon. Section 24-31.° No well shall be drilled within the city limits without properly equipping the surface casing when set with at least one master valve, and without properly equipping the protection 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 -16- 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 a minimum of three thousand pounds and its mechanical operation shall be tested at least once every twenty-four hour period. All control equipment shall be in good working condition and order at all times. Section 24-32. No well shall be drilled within the city limits without using mud as the drilling fluid after the setting of surface casing as provided in section 24-30 hereof. Prior to the time the well reaches a total depth of five thousand 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 a weight sufficient to contain the formation pressure. After the well reaches a total depth of five thousand feet or the depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the drilling fluid shall be maintained to provide a hydrostatic head necessary to contain the formation pressure. In reworking a well the drilling fluid shall be at all times maintained at a weight that will provide a hydrostatic head necessary to contain the formation pressure. Section 24-33. It shall be unlawful for any person in connection with the drilling or reworking operations of any well within the city limits 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 24-34. All tubing used in any well within the city limits shall be seamless steel tubing meeting American Petroleum Institute Standards for minimum in- ternal pressure yield strength. -17- Section 24-35. Each well drilled within the city limits shall be equipped with a bradenhead with a working pressure sufficient to contain the formation pressure. Bradenheads shall not be welded. The bradenhead pressure shall be checked at two or more times each calendar year and if pressure is found to exist, proper remedial measures shall be immediately taken to eliminate the source and the existence of the pressure. Section 24-36. The christmas tree and all well head connections on each well existing within the city limits and on each well drilled pursuant to a permit under this section shall be maintained so as to operate safely. If a christmas tree or a well connection is found to be leaking or otherwise defective, the Code Enforcement Administrator may immediately revoke the permit. In the event the surface shut-in pressure of any well in the city limits exceeds two thousand 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 24-37. The compressor station on each well existing within the city limits and on each well drilled pursuant to a permit under this section shall be equipped with an automatic shutdown device which shall be clearly marked and visible at all times. The compressor station and all pipes and valves con- nected thereto must meet or exceed the minimum internal pressure yield strength established under American Petroleum Institute standards and shall have prior to installation unconditionally passed a complete cold water test. All com- pressor stations shall be checked a minimLn of once each three months and the result of said check shall be sent to the Code Enforcement Administrator upon request. Failure to comply with this section shall result in immediate cancellation of the drilling permit issued hereunder. CHO Section 24-38. Except as provided in section 24-11 herein, within 1,000 feet of any occupied structure a maximum of two (2) 500 barrel tanks for crude oil storage may be constructed in connection with any one producing well within the city limits. There shall be no limitation on -.the size or number of storage tanks that may be constructed in the area more than 1,000 feet from any occupied..structure. Each tank shall be equipped with flame arrestors and shall be so constructed and maintained as to be vapor -tight. Each tank or tank battery shall also be surrounded with an earthen fire wall which shall at all times be free of vegetation and which shall be at such distance from the tank as will under any circumstances hold and retain at least one and one-half times the maximum capacity of such tank. The area outside each tank but contained within the earthen fire wall shall be properly drained at all times. 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 con- structed 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 24-39. When a well is abandoned it shall be the obligation of the permittee,. and the operator of the well to plug said well in accordance with the re- quirements of the Texas Railroad Commission. Section 24-40. The permittee shall make adequate provision for the disposal of all salt water or other impurities which he may bring to the surface. Disposal shall be made in a manner that will not contaminate the water supply, present or prospective, or injure surface vegetation. Section 24-41. A Well Site Inspector to be designated by the Code Enforcement Ad- ministrator shall be responsible for the monitoring of drilling and production -19- activities both at scheduled intervals and.at any other times he may deem necessary to ensure the public safety and to ensure compliance with the terms of this ordinance. Section 24-42. Whenever practicable on an urbanized drilling site all delivery of equipment and supplies to the drill site shall be made only on Monday through Saturday between the hours of 8:00 A.M. and 6:00 P.M. This re- quirement shall not apply to drilling operations being conducted in a non - urbanized area. Section 24-43. When production has been established in any new well, the construction of a pipeline shall be started as soon as practical and economically feasible and thereon diligently prosecuted until such pipeline is completed in order to eliminate the trucking of oil. All oil and gas shall be shipped and transported through pipelines after those pipelines have been completed, except .in cases in which such a method of transportation is found by the Code Enforcement Administrator to be infeasible. In such cases the shipping and transportation of oil by truck may be permitted at the.discretion of the Code Enforcement Administrator after consideration of all the circumstances including but not limited to the proximity of the well to existing and available pipelines, the availability of acceptable access routes to the drill site, and the frequency and size of transportation vehicles required to serve the well. In the instance of an oil spill, permittee may bring in a vacuum truck to clean said spill without the necessity of obtaining per- mission from the Code Enforcement Administrator. Section 24-44. If a well is placed in production, it shall be inspected periodically by the Code Enforcement Administrator in accordance with the requirements of this chapter. A notification of status change from producing well to abandoned well shall become necessary for any well which has not produced, or which has not been used for subsurface injection into the earth of oil, gas, salt water, or oil field waste for a period of nine (9) months, unless permission W -20- to hold said well for a longer period of time is obtained from the Texas Railroad Commission. The operator shall upon request of the Code Enforcement Administrator furnish verification of production for the purposes of the subsection. Section 24-45. If a well is to be abandoned, the following requirements are applicable. A. Within ninety (90) days after the completion of drilling operations or abandonment of further drilling, the derrick and all drilling equipment, including temporary tanks, shall be removed from the drill site. Well aban- donment shall be in accordance with the requirements of all applicable laws and ordinances. Upon such well abandonment, the permittee shall restore the property as nearly as possible to its original condition and shall remove all concrete foundations, oil -soaked soil, and debris. All holes or depressions shall be filled to the natural,surface. B. Drilling operations shall be prosecuted in a workmanlike manner until the well is completed or abandoned. Once a well is a producing well, it shall not be serviced with a permanent derrick. The Code Enforcement Administrator shall determine that the drill site and all facilities pertinent thereto have been restored to their origi- nal condition as nearly as practicable and that all requirements of this section have.been satisfied. C. After abandonment of a well by the operator, -the drilling permit will be terminated if, to the satisfaction of the Code Enforcement Admin- istrator, all the conditions stated in .this ordinance have been fulfilled. Section 24-46. Any drilling permit may be suspended or revoked for any material vio- lation of the conditions of the permit by the permittee or for persistent violation of any law by the permittee in the operation of any such well. The Code Enforcement Administrator shall not revoke any permit without first giving the permittee ten (10) days' written notice of the nature of the violations and of the intention to revoke such permit. Permittee shall at IW -40 a3 -1G/ once cease drilling operations after receipt of notice of intent to revoke this permit. If, within such ten (10) day period, the permittee requests a hearing before the Code Enforcement Administrator, the Code Enforcement Administrator shall grant such hearing within fifteen (15) days after the date of such request. At such hearing, evidence shall be presented to es- tablish to the satisfaction of the Code Enforcement Administrator the extent and nature of the violation which constitutes grounds for the revocation, and the permittee shall be given an opportunity to cross-examine all witnesses testifying at such hearing. The permittee shall thereafter be permitted at that hearing, or at a continued hearing, if a continuance is requested by the permittee, to present evidence to disprove or explain such alleged vio- lations. The Code Enforcement Administrator shall thereupon, after hearing all the evidence determine whether or not the permit should be revoked, and his determination thereon shall be final. If the Code Enforcement Adminis- trator_Idetermines that the permit should be revoked, permittee may appeal the decision of the Code Enforcement Administrator to the Building Board of Adjustment and Appeals in accordance with the ordinances of the City of Beaumont. In the event the Building Board of Adjustment and Appeals determines that said permit should be revoked, permittee shall have recourse to the appropriate courts of this state to review such action by said Building Board of Adjustment and Appeals and the substantial evidence rule shall apply. Ccr-Fi nn 7 That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall in no wise affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Cnr•i-i nn � All ordinances or parts of ordinances in conflict herewith are hereby repealed. -22- V � ~ Section 4. Any person who violates any provision of this ordinance shall, upon conviction, be punished as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of `M oV1 , 1976. - Mayor - -23-