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Ordinance No. 73ORDINANCE NO. 73 AN CR.DINANCE LICENSING THE DRILLING OF OIL AND GAS WELLS MTHIN THE CORPORATE LIMITS OF THE CITY OF BAYTOWN, TEXAS; REGUTATING THE DRILLING AND OPERA- TION OF SUCH k-GELLS WITHIN THE CITY; REPEALING ORDI- la!%ICES INCONSISTENT THERE 7ITH; CONTAINING A SAVI14GS CLAUSE; PRESCRIBING A PEXALTY; AND IROVIDING FOR THE EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN: � y SECTION 1. Statement of Purpose and Intent of this Ordinance. It has been brought to the attention of the City Council of the City of Baytown that oil and gas wells have recently been drilled vrithin the city limits, that drilling operations therein are now in progress, and that there is the likelihood of further drilling being done within the city in the future. - -The City of Baytown does not at this time have any ordinance expressly providing regulations for the control of operations for the drilling and production of oil and gas within the corporate limits and such an ordinance is deemed necessary and essential because of the fire hazards created by such operations, as well as the menace of falling derricks, well blowouts, exploding boilers, unsanitary conditions, contaminated water supply and all similar and like threats to the lives, property, health, safety and convenience of the public in general. The police pourer of the State, delegated to this city, is here invoked in aid of the enforcement of the provisions of this ordinance. The City Manager shall be charged with the general responsibility for the adminis- tration and enforcement of this ordinance, vrith the advice and assistance of the de- partment heads of the city, particularly the City Engineer, the Fire 11drshal and the Director of Public Works. Yrhen deemed necessary for the proper carrying out of this • responsibility, the City Lbnager may employ as consultants on a temporary basis and vrith the approval'of the City Council, persons-of specialized knowledge in the skill of oil and gas industry. SECTION 2. Permit for Drilling. It shall be unlawful for any person to drill or commence to drill a well for oil and gas within the limits of the City of Baytown, Texas, or to work upon or assist in any way in the prosecution of the drilling of any such well vrithout first complying with the provisions of this ordinance and making application for and obtaining a license or permit so to do as herein provided. Persons engaged in operations for the drilling or production of oil and gas at the effective date of this ordinance shall be excluded from the above requirement for a permit, however, such persons shall in all other respects comply with the regu- lso ations and provisions of this ordinance so far as the same are applicable to their operations, including the requirement for carrying public liability insurance and license and permit bond as provided in Section 8 hereof. SECTION 3. Application for Permit. Any person, firm, or corporation desiring to drill a well for oil and gas within the corporate limits of the City of Baytown, Texas, shall first make application therefor to the City Manager, which application shall set forth in writing the following facts: a. 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 Wrner, 2. Name of the lease owner, 3. Brief description of the land; e. Type of derrick desired to be used. The above application shall be accompanied by a plat showing the location of the proposed well on the property to be drilled. A copy of the plat (Form 1) furnished to the State Railroad Commission will be acceptable. SECTION 4. Record of Application. That this application shall be placed and kept on record by the City Clerk as a part of the public records of the City of BaytDwn. SECTION 5. License Fee. For the purpose of defraying the expenses of administra- tion and enforcement of the provisions of this ordinance, the applicant shall pay to the City of Baytown the sum of One Hundred ($100.00) Dollars, as a license fee for the issuance of such a permit, which sum shall be paid in before the permit shall be granted. SECTION 6. Issuance of Permit. When the applicant shall have complied with the provisions of this ordinance, the City Manager shall furnish a written license or per- mit which shall be in the nature of a contract or a franchise from the City to the • applicant, and shall state therein that the applicant agrees to abide by the provisions of this ordinance in carrying on drilling operations. This instrument shall be signed by the applicant and by the City M&.nager, in the name of the City and shall be executed in duplicate, one copy to be retained by the city and the other copy delivered to the applicant, constituting his drilling license and permit. The provisions of this drill- ing license, when so signed and executed, shall be binding upon the applicant in every respect. SECTION 7. Appeal to City Council. Full power and authority for the granting or refusal of such license shall be vested in the City Manager and in the event such offi- cer is of the opinion that the applicant has not Billy complied with the requirements of this ordinance, he shall then decline to issue such license. In the event such ap- plication and license shall be refused by the City Manager, the applicant therefore shall have the right to appeal to the City Council of the City of Baytown, at any regular stated meeting or any special or called meeting of the same and renew his application -2- for such license. That at such meeting, there shall be submitted, in writing, by the City Manager, his reason for refusing to grant such license, together with the application therefor; that upon final hearing of such appeal if it be the opinion of the members of the City Council, by a majority vote of members present, that the appli- cant is entitled to receive such license, the City Manager shall be directed to issue same upon full compliance with the provisions and requirements of this ordinance by the applicant; that in such appeal,, the action of the City Council shall be final. SECTION 8. Insurance and Bond. Applicant shall, at his expense, provide public liability insurance covering all of his operations in the city limits of Baytown in bodily injury limits not less than Fifty Thousand 050,000.00) Dollars for each person, and One Hundred Thousand ($100,000.00) Dollars for each accident and property damage limits of not less than Plenty -Five Thousand (p25,000.00) Dollars for each accident. Such coverage shall also include protection for the acts of independent contractors of,applicant for let,or sub -let. The public liability insurance hereunder shall be earried in companies acceptable to the city and prior to beginning operations under said permit or license, the applicant shall furnish tb the city certificate of insurance evidencing compliance vrith this section and providing at least ten (10) days notice to the city of any change in or cancellation of such insurance. Said insurance shall be continued in force so long as applicant remains engaged in operations for the drilling or production of oil and gas within the city limits of Baytown. In addition to said insurance, applicant shall furnish to the city a good and sufficient license and permit bond, written by a corporate surety licensed to do business in the State of Texas and which bond shall be in such form as may be approved ® by the City Attorney. Said license and permit bond shall be in the amount of Twenty- Five Hundred (,$,2500.00) Dollars and shall be conditioned that the applicant shall drill or operate ~yells for oil and gas production in the city limits of Baytown in strict accordance with the terms and provisions of this ordinance and amendments as may be adopted. Said bond shall be renewed annually and shall be kept in full force and effect so long as the obligor is engaged in operations for the drilling or production of oil and gas irells in the City limits. SECTION 9. Time within which Drilling to be Commenced. That in the event drill= ing operations are not begun within six (6) months after the granting of such license, • same shall become null and void. Provided, however, that such license may be extended— by the City Manager of the City of Baytown) by a -written extension before the termina- tion of said six (6)- months' period, upon a proper excuse for delay in commencing said drilling operations. -3- SECTION 10. Type of Derrick. That in the drilling of any oil or gas well within the corporate limits of the City of Baytown, it shall be, in all instances, required • to be used in such operations a steel derrick of adequate capacity and of good material and workmanship. SECTION 11. Rules for Drilling and Producing Operations. All persons engaged in operations for the drilling or production of oil and gas wells in the City of Baytown shall comply with the following rules and regulations: (a) All lays of the State of Texas and the rules and regulations of the Rail- road Commission of the State of Texas with reference to fire vralls, fire protection and locations shall be complied with. It is specifically required that fire walls two and one -half (2 21) times the volume of storage space in tanks shall be provided. (b) It shall be unlawful to block or encumber or close up any streets or alleys in any drilling or production operations, except by special permit by order of the City Manager, and then only temporarily. (c) No person, firm or corporation shall make any excavation or construct any lines for the conveyance of fuel, water or minerals, on, under, and through the streets of Bayt own, vrithout the express permission of the City of Baytown, in writing, and then only in strict compliance with the ordinances of the City of Baytown. (d) No person, firm, or corporation engaged in the drilling and operation of an oil and gas well in the city limits shall permit unburned gas to escape into the air or, where such a well is located within three hundred (300) feet of a public street or highway, dwelling, business building or public building, to maintain a torch for the burning of such gas at a lesser distance than forty (40) feet from the surface of the ground. (e) Upon completion of a well as a dry hole, the drilling rig and derrick shall be removed from the premises within sixty (60) days from the completion date. (f) It shall be unlawful to drill a well for oil or gas without setting surface casing to a minimum depth of two hundred (200) feet be1rn-r the water bearing sand from which the city is obtaining water. The well shall be cemented with sufficient cement to fill the annular space back of such casing to the surface. Data as to the depth of the oity's water bearing sand in the various parts of the city limits may be obtained in the office of the Director of Public Works. (g) In plugging and abandoning a yell, such well should be plugged in a manner so as to prevent seepage of oil and gas to the surface of the ground as well as to protect all fresh water sands. A cement plug of a minimum length of five (5) feet shall be placed at the top of the surface string of casing. No surface pipe shall be pulled. (h) 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 Baytown, at all times, during the drilling operations and as long thereafter as oil and gas are being produced therefrom. (i) The person, firm or corporation so drilling or operating an oil and gas well shall make adequate provision for the disposal of salt water or other impurities which he may bring to the surface of the earth in such a manner as not to contaminate the water supply of the City of Baytown or to destroy vegetation. (j) It shall be unlawful for any person, firm or corporation to permit to escape any mud, water, oil, slush or other waste matter from any slush pit used in the drill- ing or operating of any oil or gas well into the alleys, streets, gutters or sewers in the City of Baytowm. That within thirty (30) days after the completion of any oil or gas well, the slush pit used in connection therewith shall be filled or removed and the premises shall be cleaned and restored to a smooth and even state. (k) All premises shall be kept clear of high grass, Needs, and combustible trash, within a radius of fifty (50) feet around an oil tank, tanks, or producing wells. (1) Open earthen storage for oil is prohibited. (m) All oil tanks, where'there is a gas hazard, shall be gas tight and provided with proper gas vents. (n) A ram type blowout preventer, control head and other connections for keep- ing the well under control at all times shall be installed as soon as surface casing is set. Blowout preventer shall be tested against pump pressure at least once every • twenty -four (24) hours. All control equipment shall be in good working order and con- dition at all times. (o) Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least fifty. (50) feet from the vicinity of wells, tanks,,and pump stations. All waste shall be burned, or disposed of in such manner as to avoid creating a fire hazard or polluting streams and fresh water strata. (p) Casing tests shall be made in such manner and at such-times as required by the rules and regulations of the Railroad Commission. SECTION 12. Appeals from Decisions of.City Officials. '-That in every instance in this ordinance contained where discretion is vested in any individual official or officer of the city to determine the compliance or non - compliance with the provisions of this ordinance, of the person, firm,: or corporation,, drilling or operating for oil and'gas, such person, firm or corporation shall, in case of an adverse finding, on the • part of such official or officer with regard to such fact of the compliance or non= compliance with the provisions hereof,-have the right, whether or not such express right is elsewhere given, of appeal to the City Council of the City of Baytown and such appeal shall be heard at the next regular or at a special or called meeting of the City Council whose determination thereon shall be final. SECTION 13. Repealing Clause. All ordinances or parts of ordinances inconsistent with the terms of this ordinance are hereby repealed; provided, however, that such re- peal shall be only to the extent of such inconsistency, and in all other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. SECTION 14. Savings Clause. If any provision, exception, section, subsection, • paragraph, sentence, clause or phrase of this ordinance or the application of same to any person or set of circumstances shall for any reason be held unconstitutional, void or invalid, such invalidity shall not affect the validity of the remaining provisions of this ordinance or their application to other persons or sets of circlulstances and to this end, all provisions of this ordinance are declared to be severable. SECTION 15. Definitions. The terms "person ", "firm ", "corporation" shall include and comprehend any person, firm or association of persons or any corporation, their agents, servants or employees. Whenever the term "oil and gas" is used, such term shall mean the drilling of a well for the production of either oil or gas, or both, as the case may be. SECTIC14 16. Penalty. Any violation of any of the terms of this ordinance, whether herein denominated as unlawful or not, shall be deemed a misdemeanor; and any person convicted of any such violation shall be fined in a sum not exceeding One Hundred ($100.00) Dollars. Each day of the continuance of such violation shall be considered a separate offense and be punished separately; and any person, agent, or employee engaged in any -5- such violation shall on conviction be so punished therefor. - SECTION 17. Revocation of License. It is further provided that in addition to • the penalties provided for herein, the City Ltnager may revoke the license or permit under which a well for oil or gas is being drilled, upon proof and evidence that any provision of this ordinance is being violated after the issuance of the permit by the City Clerk. Notice of revocation shall be in writing, and shall be mailed by registered mail to the permittee's address shoym in his application. Any permittee whose permit or license has been revoked may, within fifteen (15) days from and after the date of 4 the order of revocation, appeal to the City Council from such order. Kthin fifteen (15) days from the filing of such application, the City Council shall hear the same and shall either sustain or set aside the order. SECTION 18. Effective Date. This ordinance shall take effect from and after ten (10) days from its passage by the City Council. The City Clerk is hereby directed to give notice hereof by causing the caption of this ordinance to be published in the official newspaper of the City of Baytori -n at least twice prior to the effective date hereof. INTRODUCED, READ, and PASSED by the affirmative vote of a majority of the City Council of the City of Bayton ^m on this the 2nd day of February, A. D. 1950- ATTEST: • na aver, Crty Crer • 31:2 f J. A. Viard,/Oxiror