Ordinance No. 322ORDINANCE NO. 322
AN ORDINANCE LICENSING THE DRILLING OF OIL AND
GAS WELLS WITHIN THE CORPORATE LIMITS OF THE CITY
OF BAYTOWN, TEXAS; REGULATING THE DRILLING AND
OPERATION OF SUCH WELLS WITHIN THE CITY; REPEAL-
ING ORDINANCES INCONSISTENT HEREWITH; CONTAIN-
ING A SAVINGS CLAUSE; PRESCRIBING A MAXIMUM PEN -
ALITY OF TWO HUNDRED ($200) DOLLARS; AND PROVID-
ING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
SECTION 1. Administration and Enforcement. The City Manager shall be charged
with the general responsibility for the administration and enforcement of this
ordinance, with the advice and assistance of the department heads of the city,
is
particularly
the City Engineer, Fire
Chief, Fire Marshall and the
Director of
Public Works.
When deemed necessary
for the proper carrying out
of this res-
ponsibility, the City Manager may employ as consultants on a temporary basis,
with the approval of the City Council, persons of specialized knowledge and
skill in the 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 to assist in any way whatsoever; the prose-
cution of the drilling of any such well without first complying with the provi-
sions of this ordinance and making application for and obtaining a license or
permit so to do as herein provided.
• 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 Bay-
town, Texas, shall first make application thereof to the City Manager, or City
Clerk, 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 owner
2. Name of the lease owner
.3. Brief description of the land
d. A detailed plat showing the location of all
battery tanks
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. The location of the well
shall be staked out before approval of the application by the.City Manager.
No well location shall ever be changed without the prior approval of the
City Manager. Copies of Railroad Commission forms 41, 2 and 3 shall be sub-
mitted with each application.
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 Baytown.
SECTION 5: License Fee. For the purpose of defraying the expenses of admin-
istration and enforcement of the provisions of-this ordinance the applicant
shall pay to the City of Baytown the sum of One Thousand ($1,000.00) Dollars,
as a license fee for the issuance of such a permit, which sum shall be paid in
before the permit shall be granted. Provided, however, that One Hdndred ($100)
Dollars shall be required for a permit to change the location of the original
well to another location on the same leased property. The full One Thousand
($1000) Dollars shall be required for any change of location if said change is
from one lease to another lease.
SECTION 6: Issuance of Permit. Upon receipt of such application for a license,
the City Manager, shall promptly make, or cause to have made, an investigation of
the proposed location of the well and the willingness and ability of the appii -.
cant to comply with the provisions'of the ordinance. If the City Manager decides
that the applicant has made good and sufficient proof that he can and will comply
with the provisions of this ordinance and that he is qualified and the evidence
• adduced justifies issuance of same, then the City Manager shall issue a license
to the applicant.
SECTION 7: Right to Refuse-Applications. The City Manager shall have the power,
and reserves the authority, to refuse any application for a license if, in his
opinion, the safety, the health, the comfort, the convenience, the order or the
good government of the City will be adversely affected by the granting of the
license.
SECTION S: Insurance and Bond. The applicant,-his heirs or assigns 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
($50,000) Dollars for each person, and One Hundred ($100,000) Dollars for each
• accident and property damage limits of not less than Twenty -Five Thousand
($25,000) Dollars for each accident. Such coverage shall specifically include
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protection for the acts of independent contractors of application and assignees
for let or sub -let. The public liability insurance hereunder shall be carried
• in companies acceptable to the City and prior to beginning operations under
said permit or' license, the applicant shall furnish to the City, certificate
of insurance evidencing compliance•with 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
good and sufficient license and permit bond, written by the corporate surety
licensed to do business in the State of Texas and which bond shall be in force
as may be approved by the City Attorney. Said license and permit bond shall be
40 in the amount of Twenty -Five ($2500) Dollars and shall be conditioned that the
applicant shall drill or operate wells 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 annualy
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 wells 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 termination of said six (6) months period, upon a proper excuse for
• delay in commencing said drilling operations. The sum paid for any license or
permit shall, never be refunded to any applicant.
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, re-
quired to be used in such operations a steel derrick of adequate capacity and of
good material and workmanship.
SECTION 11: Rules for Drilling and Producting Operation. All persons engaged in
operations for the drilling or production of oil and gas wells in the City of•Bay-
town shall comply with the following rules and regulations:
(a) All laws of the State of Texas, unless they are in conflict herewith, and
the rules and regulations of the Railroad Commission of the State of Texas shall
IS be complied with. It is specifically required that fire walls two and one -half
(2') times the volume of storage space in tanks shall be provided; furthermore,
identification signs shall be placed and retained on all wells and battery tanks.
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(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, or through
the streets of Baytown, without the express permission of the City Manager, in
writing, and then only in strict compliance with the ordinance of the City of
Baytown. Such permission shall be based upon the recommendations of the Director
of Public Works.
(d) No person, firm, or corporation engaged in the drilling and operation
offan 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 twenty
(20) 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 twelve hundred (1200) feet. A copy of
cementer's affidavit of using of said process and of temperature reading of -,said
process shall be furnished. 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 city's water bearing said in various parts of the city limits may
be obtained in the office of the Director of Public Works. Pipe used for surface
casing service must be new or in equal approved dondition and must meet material
specifications approved by the Railroad Commission. The diameter of the drill
hole must exceed the diameter of the surface casing by not less than four (4)
inches.
(g) In plugging and abandoning a well, 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. No surface pipe shall be pulled. Up-
on abandonment of any well drilled deeper than 1200 feet below the surface, the
hole shall be filled with cement for a minimum distance of 100 feet below a top
level of 950 feet below the surface, then filled with heavy mud up to a level of
twenty -five feet and the sealing operation completed with cement from this level
to ground surface. Furthermore, at least 50 sacks of cement shall be used to
seal any and all perforations and the space above the 50 sacks of cement shall
be filled with heavy mud up to the next layer of cement as provided for above.
• (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 there-
after 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 impuri-
ties 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 es-
cape any mud, water, oil, slush or other waste matter from an slush pit used in
the drilling or operating of any oil or gas well into the alleys, streets, gutters
or sewers in the City of Baytown.
(k) All premises shall be kept clear of high grass, weeds, and combustible
trash, within a radius of fifty (50) feet around an oil tank, tanks, or producing
wells.
(1) Open Earther 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 keeping
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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 condition 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 removed in such manner as to avoid creating a
fire hazard or polluting streams and fresh water strata. Oil waste shall not be
burned within the city limits of Baytown.
(p) Casing tests shall be made in such manner and at such times as required by
the rules and regulations of the Railroad Commission and also according to the laws
of the City of Baytown, the Fire-Chief, Fire Marshal, or any officer of the city
appointed by the City Manager shall be present during all tests.
(q) All motor machinery shall at all times be equipped with a muffler in good
working order to prevent excessive noise, and no person, firm, or corporation shall
use a muffler cut -out, by -pass, or straight exhaust on any motor machiner.
(r) Fences shall be erected and maintained around all storage and battery tanks,
all pumping equipment, all wells after the removal of the derricks. The type of fence
to be erected and maintained shall be decided by the City Manager with the advise of
the department heads.
(s) It shall be unlawful to shoot any well unless the Fire Marshall or Fire
Chief is present during such shooting. No well shall be shot at night. "Night"
shall be that period of time between Thirty (30) minutes after sunset and Thirty
(30) minutes before sunrise. No swabbing or bailing shall be conducted during such
period of time.
(t) All surface casings shall be allowed to set for Twenty -Four (24) hours under
pressure before the pressure is released.
(u) No cement plugs at the bottom of surface casings shall be drilled out without
first having set for at least Forty -Eight (48) hours unless approved by the Fire Chief,
Fire Marshall, or any other qualified representative of the City.
(v) All battery and storage tanks shall be at least One Hundred (100) feet from
any building and at least Fifty (50) feet from any public thoroughfare or well. No.
settling tank shall be erected with a greater capacity than 75 barrels. No storage
tanks shall be erected with a greater capacity than 250 barrels. Exceptions to this
may be granted at the sound discretion of the City Council.
® (w) All casing must be new or reconditioned casing that has been tested to 2100
pounds per square inch. After cementing, casing shall be tested by pump pressure'in
the following manner; Mud -laden fluid in the hole shall be replaced by clear hater
and pump pressure of at least 1500 pounds per square inch applied; if at the end of
thirty (30) minutes the pressure should show a drop of 1500 pounds or more the casing
shall be condemned. All casing shall be tested in this manner until it passes the
test. Also testing oil string it should be tested at pump pressure of 1250 pounds
per square inch for a period of thirty minutes. Also when testing or shooting a
well there shall be a pressure of 1500 pounds per square inch on the casing and
connecting valve for a period of thirty minutes. After testing valves there shall
be a pump pressure of 1350 pounds per square inch on shooting nipples and pock for
a period of thirty minutes.
(x) Henceforth, each operator shall furnish the City with a copy of an electric
log from ground surface to a depth of Two Thousand (2000) feet; henceforth, each
operator shall make a straight -hold test every One Hundred (100) feet.
(z) No surface casing whatsoever and no more than Five Hundred (500):Feet of
Five and one -half or Seven inch casing shall be removed from any well within the
City of Baytown; provided however, if such well has Twelve Hundred (1200 Feet of
surface casing in it, then, in such event, Eleven Hundred (1100) Feet of Five and
• one -half (5T') Inch and-Seven (7 ") Inch casing may be removed from such well. Any
% Inch or 7 Inch pipe that is removed must be removed by a pipe cutter working
from the inside of such pipe, and no shooting of the pipe will be allowed. In any
event, -no well will be abandoned nor pipe removed until written application is
made to the _City Clerk and such application shall not be granted unless and until
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the application is approved by the City Manager, Fire Chief, Fire Marshall and the
Director of Public Works. An application to remove pipe from a well shall be filed.
® with the City Clerk at least two (2) days before such. In no event shall any pipe
be cut or removed from any well unless the City Manager or someone delegated by him
is present. For the privilege of cutting and removing pipe and to defray the sup -
ervisional expense incurred by the City, there is hereby provided a-Two Hundred
(3200) Dollar Permit Fee which must be paid to the City for each well from which
any amount of from which any amount of pipe is removed.
SECTION 12: Pipeline Easements. The City Manager may grant pipeline easements over
and /or under City property when such easements are deemed to be benfiicial to the
residents of Baytown. The City Manager, with the aid of department heads, shall
investigate the applications for pipeline easements. For the purpose of defray-
0 ing the expenses of administration and endorsement of the provisions of this ordi-
nance, the producer shall pay to the City of Baytown the sum of One Hundred ($100)
Dollars as a license fee for the issuance of such an easement, which sum shall be
paid in before the easement shall be granted. The consideration required for each
easement, if any, shall be set separately by the City Council.
SECTION 13: No License Fee Required. That no license fee shall be required of any
producer or lessee, for the privilege of reworking any oil or gas well within the
City of Baytown if said reworking begings within six :(6) months of the original op-
erations, and provided further, that a One Thousand ($1000) Dollar license fee has
been paid for the privilege of said original drilling operations. Insurance and
bond as required in Section 8 above, shall be required to re -work any oil or gas
• well.
SECTION 144. 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 provis-
ions 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 find-
ing, on the part of such official or officer with regard to such fact of the com-
pliance with the provisions thereof, have the right, whether or not such express
right is elsewhere given, of appeal to the City Council of the City of Baytorrn and
such appeal shall be heard at the next regular or at a special or called meeting of
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the City Council whose
determination
thereon shall be final.
SECTION 15: Repealing
Clause. All
ordinances or parts of ordinances inconsistent
with the terms of this ordinance are hereby repealed; provided, however, that such
WE
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1 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 16: Savings Clause. If any provision, exception, section, subsection, para-
graph, 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 circumstances and
to this end, all provisions of this ordinance are declared to be severable.
SECTION 17: Penalt . Any violation of any of the terms of this ordinance, whether
herein denominated as unlawful or not, shall be deemed as misdemeanor; and any per-
son convicted or any such violation shall be fined in a sum not exceeding Two Hun-
dred ($200) Dollars. Each day of the continuance of such violation ahall be con-
sidered a separate offense and be punished separately; and any person, agent, or
employee engaged in any such violation shall on conviction be so punished therefor.
SECTION 18: Revocation of License. The City Council shall have power to revoke
any license issued hereunder if-the same was obtained through error or fraud, or
if the recipient thereof is shown to be incompetent or shall have willfully, neg-
ligently or arbitrabily violated the provisions of this ordinance or of the rules
and regulations of the Railroad Commission of the State of Texas; provided, that
before any license shall be revoked, the holder thereof shall have written notice
enumerating the charges against him, and shall be given a hearing by the City Coun-
cil, and have an opportunity to produce testimony in his behalf, at a time and place
specified in said notice, which time shall not be less than three (3) days after
the service thereof. The City Council shall have power to appoint, by an order en-
tered in the minutes,.any pompetent person to take testimony in:.such hearing, who
shall have poweryto administer oaths, issue subpoenas and compel the attendance of
witnesses, and the decision of the City Council shall be based upon_ its examinatio
of the testimony taken and the records produced.
SECTION 19; Effective Date. This ordinance shall take effect from aril after to
(10) days from its passage by the City Council. The City Clerk is hereby direc-
to give notice hereof by causing the caption of this ordinance to be published
the official newspaper of the City of Baytovm at least twice within ten (10) c
after the passage of this ordinance.
INTRODUCED, READ and PASSED by the affirmative vote of a majority,
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1 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 16: Savings Clause. If any provision, exception, section, subsection, para-
graph, 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 circumstances and
to this end, all provisions of this ordinance are declared to be severable.
SECTICN 17: P6LL1t& Any violation of any of the terms of this ordinance, whether
herein denominated as unlawful or not, shall be deemed as misdemeanor; and any per-
son convicted or any such violation shall be fined in a sum not exceeding Two Hun-
dred ($200) Dollars. Each day of the continuance of such violation ahall be con-
sidered a separate offense and be punished separately; and any person, agent, or
employee engaged in any such violation shall on conviction be so punished therefor.
SECTION 18: Revocation of License. The City Council shall have power to revoke
any license issued hereunder if-the same was obtained through error or fraud, or
if the recipient thereof is shown to be incompetent or shall have willfully, neg-
ligently or arbitrarily violated the provisions of this ordinance or of the rules
and regulations of the Railroad Commission of the State of Texas; provided, that
before any license shall be revoked, the holder thereof shall have written notice
enumerating the charges against him, and shall be given a hearing by the City Coun-
cil, and have an opportunity to produce testimony in his behalf, at a time and place
• specified in said notice, whioh time shall not be less than three (3) days after
the service thereof. The City Council shall have power to appoint, by an order en-
tered in the minutes, any competent person to take testimony in: -such hearing, who
shall have power`to administer oaths, issue subpoenas and compel the attendance of
witnesses, and the decision of the City Council shall be based upon its examination
of the testimony taken and the records produced.
SECTION 19: 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 Baytovm at least twice within ten (10) days
0 after the passage of this ordinance.
INTRCDUCED, READ and PASSED by the affirmative vote of a majority of
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the City Council of the City of Baytown on this the ' day of ,
i A.D., 1956.
ATTEST;
EDFA OLIVER, CITY C
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H. PR , MAYOR
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