Ordinance No. 11,434ORDINANCE NO. 11,434
AN ORDINANCE OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER
62 "NATURAL RESOURCES," ARTICLE 11 "OIL AND GAS." DIVISION 1
"GENERALLY." SECTION 62 -26 "DEFINITIONS," SUBSECTION (A), AND
SECTION 62 -28 '`CERTAIN EXCEPTIONS FOR WELLS DRILLED PRIOR TO
JANUARY 1, 1950, OR OUTSIDE REGULATED AREA,- SUBSECTION (C);
DIVISION 2 "DRILLING PERMIT," SECTION 62 -59 - APPLICATION.-
SUBSECTIONS (3),(6), AND (7)(a), SECTION 62 -61 "NOTICE," SUBSECTIONS (A)
AND (B); SECTION 62 -62 "LOCATION RESTRICTIONS,- SECTION 62 -63
-PERMISSION OF SURFACE OWNER REQUIRED," SECTION 62 -65 "ISSUANCE,"
SUBSECTION (B), AND SECTION 62 -66 "CONDITIONS," SUBSECTION (2);
SECTION 62 -98 "DRILLING UNITS FOR OIL," SECTION 62 -99 -DRILLING UNITS
FOR GAS," SECTION 62 -100 "NUMBER OF OIL WELLS PERMITTED ON EACH
DRILLING UNIT''; SECTION 62 -101 `NUMBER OF GAS WELLS PERMITTED ON
EACH DRILLING UNIT," SUBSECTIONS (A): SECTION 62 -105 "DRILLING BY
OTHER THAN LEASEHOLDER": SECTION 62 -107 "INTERESTS OF PERSONS
OTHER THAN PERMITTEE.'- SUBSECTIONS (A) AND (13)(2); DIVISION 3 "WELL
SPACING,- AND SECTION 62 -108 "MULTIPLE WELLS FROM ONE SURFACE
LOCATION," SUBSECTIONS (1). (2). (3) AND (4); AND DIVISION IV
"TECHNICAL PROVISION," SECTION 62 -137 "TECHNICAL REQUIREMENTS"
OF THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN. TEXAS, TO
MODIFY THE REGULATION OF OIL AND GAS WELL DRILLING BY
REFLECTING TECHNOLOGICAL ADVANCES IN THE INDUSTRY,
INCLUDING DIRECTIONAL DRILLING: PRESCRIBING A MAXIMUM
PENALTY OF TWO THOUSAND AND NO /100 DOLLARS (52,000.00);
PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS
CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE
DATE THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN.
TEXAS:
Section 1: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division I
"Generally," Section 62 -26 "Definitions," subsection (a) of the Code of Ordinances of the City
of Baytown. Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE II. OIL AND GAS
DIVISION 1. GENERALLY
Sec. 62-26. - Definitions.
(a) The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
Bottom -hole location means the point in the subsurface of the earth where a well
is perforated for production of oil or gas from the surrounding subsurface strata.
E.rtraterritorial jurisdiction means that land within three and one -half (3'/) miles
of the corporate limits of the city or as otherwise established by state law.
Gas means natural gas. including all of its constituent elements, which elements
include but not by way of limitation, gasoline, condensate, distillate. butanes, propanes
and other hydrocarbons.
Gas well means a well producing gas, as defined in this section, and which
produces no oil, as defined in this section, or less than one barrel of oil to each 100,000
cubic feet of gas.
Oil means any liquid hydrocarbon, regardless of gravity, capable of being
produced from a drilling unit in liquid form at the well by ordinary production methods
and that is not the result of the condensation of gas after it leaves the reservoir.
Oil well means any well that produces one barrel or more of oil, as defined in this
section, to each 100,000 cubic feet of gas, as defined in this section.
Permittee means the person to whom is issued a permit for the drilling and
operation of a well under this article and his administrators, executors, heirs, successors
and assigns.
Regulated area or regulated area of the city means and includes, subject to the
exceptions contained in this article, all lands within the corporate limits and lands within
the extraterritorial jurisdiction to the extent governed by section 68- 28(c).
Siuface location means the point where a well penetrates the surface of the earth.
Well means any hole or bore to any sand, formation, strata or depth, which is
drilled, bored, sunk, dug or put down for the purpose of either exploring for or
ascertaining the existence of any oil, gas or liquid hydrocarbon or for the purpose of
producing and recovering any oil, gas or liquid hydrocarbon.
Well servicing means the installation or servicing of artificial lift equipment and
the removal of tubing obstructions such as paraffin and sand.
Workover means working over a well, which shall be considered to be the act of
reentering a well for any purpose after it is initially completed or abandoned, other than
for well servicing.
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Section 2: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 1
"Generally," Section 62 -28 "Certain exceptions for wells drilled prior to January 1, 1950" of the
Code of Ordinances of the City of Baytown, Texas, is hereby amended to change the title of such
section and to add a new subsection therein to be numbered subsection (c), which title and
subsection shall read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE II. OIL AND GAS
DIVISION 1. GENERALLY
Sec. 62 -28. Certain exceptions for wells drilled prior to January 1, 1950 or outside
regulated area.
(c) If the surface location of the well is within the extraterritorial jurisdiction of the city, but
any portion of the well bore is located within the corporate limits, all of the sections of
this article shall apply to all surface location operations of such well.
Section 3: That Chapter 62 "Natural Resources," Article 11 "Oil and Gas," Division 2
"Drilling Permit," Section 62 -59 "Application." subsections (3), (6) and (7) of the Code of
Ordinances of the City of Baytown, Texas, are hereby amended to add to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE 11. OIL AND GAS
DIVISION 2. DRILLING PERMIT
See. 62-59. Application.
(3) The number of the drilling unit(s), the particular lot and block number or tract in
the drilling unit on which the surface location and proposed bottom -hole location
of the proposed well(s) are to be located and the exact location of the proposed
well by Lambert Coordinates;
(6) The exact and correct number of square feet in the drilling unit of the proposed
bottom -hole location over which the applicant has control of oil rights or gas
rights, to the end that the application will show what proportion and what parts of
such drilling unit the applicant owns in fee or holds under lease or drilling
contract from the owners, and the applicant shall be required to own in fee or hold
under lease or drilling contract from the owners more than 20 acres of the acreage
within a drilling unit before a permit may be issued; provided, however, for a gas
well, at least this required acreage shall be located within whichever 40 -acre oil
drilling unit. out of the gas drilling unit, on which the well is to be drilled; and
(7) The following shall be attached to the application Ibr the permit:
A plat prepared by a duly licensed surveyor showing the exact surface
location and proposed bottom -hole location of the proposed well with
respect to the drilling unit boundaries and with respect to the boundaries of
the lot or block on which the applicant has secured the rights from the
owner to drill: the designation of lots, blocks or tracts owned or controlled
by the applicant within the drilling unit; the distance from the well
location to all parks, streets, alleys or other public property; and
residences, commercial buildings and structures situated within 500 feet of
the well's surface location: and
b. A copy of railroad commission form W 1.
Section 4: That Chapter 62 "Natural Resources," Article I1 "Oil and Gas," Division 2
"Drilling Permit," Section 62 -61 "Application," subsections (a) and (b) of the Code of
Ordinances of the City of Baytown. Texas, are hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE II. OIL AND GAS
DIVISION 2. DRILLING PERMIT
See. 62-61. Notice.
(a) Notice of the filing of each application for the pen-nit required under this division shall be
given by the applicant to each owner and lessee of lots. blocks and tracts within the
drilling unit of the proposed bottom -hole location described in the application, not owned
by or under lease to the applicant, as such ownership is disclosed by the deed records of
the county. Such notice shall be in words and figures, substantially as follows:
NOTICE IS HEREBY GIVEN THAT , ACTING UNDER
AND PURSUANT TO THE TERMS AND PROVISIONS OF CHAPTER
62 OF THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN,
REGULATING THE DRILLING, COMPLETION AND OPERATION
OF OIL WELLS AND OF GAS WELLS WITHIN THE CORPORATE
LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND
ESTABLISHING RESTRICTIONS THEREON, did on the
day of . file with the City Manager or his
delegate, of the City of Baytown, an application to drill, complete and
operate a well for oil (or gas) upon Lot No. Block No.
(or other appropriate description), [within or outside, as
applicable] the City of Baytown, Texas, as per map of record in Volume
, Page [if applicable, otherwise insert legal
description of surface location] . Plat Records of Harris County, Texas, in
Drilling Unit No. . and located by Lambert Coordinates for
the South Central Zone of Texas at the intersection of Coordinates
East and North, and the proposed bottom -
hole location in Drilling Unit No. , and located by Lambert
Coordinates for the South Central Zone of Texas at the intersection of
Coordinates East and North.
(b) At least ten days prior to the granting or refusal of an application, a copy of such notice
shall be mailed by registered mail at the expense of the applicant, addressed to the last
known address of each owner and lessee of lots, blocks and tracts in the drilling unit not
owned by or under lease to the applicant. A copy of such notice shall be published, at the
expense of the applicant, in every issue of a local newspaper of the city for ten days prior
to the date of the granting or refusal of such application. Proof of such application shall
be made by the printer or publisher of the newspaper by affidavit filed with the city clerk
and shall be prima facie evidence of such publication. The applicant shall file with the
city clerk an affidavit showing the following:
(1) the name and last known address of each owner and lessee of a lot, block and tract
to whom notice is required to be given as provided in this section; and
(2) the name of each owner and lessee of a lot, block and tract to whom such notice is
required to be given and whose address is unknown to the applicant.
Section 5: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 2
"Drilling Permit." Section 62 -62 "Location Restrictions," of the Code of Ordinances of the City
of Baytown. Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE 11. OIL AND GAS
DIVISION 2. DRILLING PERMIT
Sec. 62 -62. Location restrictions.
No well shall be drilled and no permit shall be issued for any well to be drilled in any
surface location within a drilling unit. which location is nearer than 500 feet from any residence
or building, without the applicant having first secured the written permission of the owner
thereof, nor shall any well be drilled from a surface location within any of the streets or alleys,
parks or other public property unless authorized by an ordinance duly passed by the city council;
provided that nothing in this section shall prohibit directional drilling beneath any of the streets
or alleys. parks or other public property of the city, if the depth of the well path under any such
property is at least 2,000 feet.
Section 6: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 2
"Drilling Permit," Section 62 -63 "Permission of surface owner required" of the Code of
Ordinances of the City of Baytown, Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE I1. OIL AND GAS
DIVISION 2. DRILLING PERMIT
Sec. 62 -63. Permission of surface owner required; waivers.
Neither this article nor any permit issued under this division shall be interpreted to grant
any right or license to the permittee to enter upon, use or occupy in any respect for the drilling or
operation of any well on any surface land except by the written contract of the surface owner
unless the permittee obtained such right in an oil and gas lease or other contract, nor shall it limit
or prevent the free right of the owner to contract for the amount of damages, rights or privileges
with respect to his own land and property. Any provision of this ordinance specifying a
minimum distance requirement from well locations or facilities to residences or buildings may be
waived in writing by the owner of the affected residence or building.
Section 7: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 2
"Drilling Permit," Section 62 -65 "Issuance," subsection (b) of the Code of Ordinances of the
City of Baytown, Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE 11. OIL AND GAS
DIVISION 2. DRILLING PEWMIT
Sec. 62 -65. Issuance.
(b) The granting and issuance of a permit for a well with a proposed bottom -hole location on
a drilling unit, as provided in this article, shall automatically operate as a rejection and
denial of all other pending applications for a well to be completed upon the drilling unit
involved or any portion thereof.
Section 8: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 2
"Drilling Permit," Section 62 -66 "Conditions," subsection (2) of the Code of Ordinances of the
City of Baytown. Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE II. OIL AND GAS
DIVISION 2. DRILLING PERMIT
Sec. 62-66. Conditions.
(2) Specify definitely the surface location and proposed bottom -hole location of the well and
the number of the drilling unit(s) in which the well is to be located;
Section 9: That Chapter 62 "Natural Resources," Article 11 "Oil and Gas," Division 3
"Well Spacing." Section 62 -98 "Drilling units for oil," subsection of the Code of Ordinances of
the City of Baytown. Texas. is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE II. OIL AND GAS
DIVISION 3. WELL SPACING
Sec. 62 -98. Drilling units for oil.
A drilling unit for oil within the corporate limits shall contain 40 acres and shall be 1,320
feet square. Each oil drilling unit shall be wholly within one of the blocks described in exhibit
"A" in section 62 -97 and the four boundary lines of each oil drilling unit shall be contiguous to
all adjacent oil drilling units. Each of the blocks, as described in exhibit "A," shall contain 16 oil
drilling units, and each oil drilling unit shall be identified by numbers, starting with the
northwest corner oil drilling unit of each block and reading from left to right for four rows, as
illustrated in the example appearing on a plat marked exhibit "B" styled "Example— Illustrating
the Manner in which Each 640 Acre Block within the City of Baytown is divided into 40 acre Oil
Drilling Units." below. The boundary lines of each oil drilling unit may be further described by
Lambert Coordinates, as illustrated in the example appearing in such exhibit "B."
Notwithstanding the foregoing. if an oil drilling unit includes land both inside and outside of the
regulated area. the "drilling unit" shall be limited to that land which is inside of the regulated
area.
Section 10: That Chapter 62 'Natural Resources." Article 11 "Oil and Gas." Division 3
"Well Spacing." Section 62 -99 "Drilling units for gas." subsection of the Code of Ordinances of
the City of Baytown. Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE 11. OIL AND GAS
DIVISION 3. WELL SPACING
Sec. 62 -99. Drilling units for gas.
A drilling unit for gas within the city shall contain 640 acres and shall be 5,280 feet
square, and the boundary lines of each such gas drilling unit shall be congruent with the
boundary lines of one of the blocks described in exhibit "A," in section 62 -97. Notwithstanding
the foregoing, if a gas drilling unit includes land both inside and outside of the regulated area, the
"drilling unit" shall be limited to that land which is inside of the regulated area.
Section 11: That Chapter 62 "Natural Resources." Article II "Oil and Gas," Division 3
"Well Spacing," Section 62 -100 "Number of oil wells permitted on each drilling unit" of the
Code of Ordinances of the City of Baytown, Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE 11. OIL AND GAS
DIVISION 3. WELL SPACING
See. 62 -100. Number of oil wells permitted on each drilling unit.
(a) Except as provided in Section 62 -108, not more than one oil well shall be permitted to be
drilled, completed and operated within the surface area of each oil drilling unit, and it
shall be unlawful and a violation of this article to drill, complete and operate more than
one oil well in each oil drilling unit.
(b) However, if on the effective date of the ordinance from which this article derives there
exists on any oil drilling unit one or more producing oil wells, one additional oil well
may be drilled, completed and produced on the same oil drilling unit under the terns of
this article.
Section 12: That Chapter 62 "Natural Resources," Article H "Oil and Gas," Division 3
"Well Spacing," Section 62 -101 "Number of gas wells permitted on each drilling unit,"
subsection (a) of the Code of Ordinances of the City of Baytown, Texas, is hereby amended to
read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE II. OIL AND GAS
DIVISION 3. M`ELL SPACING
Sec. 62 -101. Number of gas wells permitted on each drilling unit.
(a) Except as provided in Section 62 -108, not more than one gas well shall be permitted to be
drilled, completed and operated within the surface area of each gas drilling unit, and it
shall be unlawful and a violation of this article to drill, complete and operate more than
one gas well in each gas drilling unit.
Section 13: That Chapter 62 "Natural Resources," Article Il "Oil and Gas," Division 3
"Well Spacing," Section 62 -105 "Drilling by other than leaseholder" of the Code of Ordinances
of the City of Baytown, Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE IL OIL AND GAS
DIVISION 3. WELL SPACING
Sec. 62 -105. Drilling by other than leaseholder.
(a) If an application for a permit for the drilling, completion and operation of a well either
for oil or gas shall be made by any person not owning or holding leases of oil or gas
rights or drilling contracts from the owners of all lots, blocks or parcels of land included
in or embraced within a drilling unit containing the projected bottom -hole location of the
proposed well, a permit shall be issued to such applicant, his heirs, successors and
assigns, only upon the conditions in subsections (b) and (c) of this section, in addition to
such other conditions as may be provided for in other sections of this article.
(b) The permittee shall be free to enter into such contracts and agreements with the owners of
such other lots, blocks or tracts as he may be able to make. If agreements are not reached
with all owners of lots, blocks and tracts within the drilling unit containing the projected
bottom -hole location of the proposed well, the owner of any given lot, block or tract shall
have the right or option, by notice to the permittee given in writing within 30 days after
the issuance of a permit for a well on the drilling unit involved, to either:
(c) If any owner does not exercise the right and option provided in subsection (b) of this
section, the obligation shall then be upon the permittee, his heirs. successors and assigns
to make settlement with such owner on the terms provided in the option in subsection
(b)(2) of this section, providing for the payment of a one- eighth royalty. If the owner of a
lot, block or tract shall exercise his option under subsection (b)(1) of this section and treat
his interest as a working interest, as therein provided, the permittee shall be entitled to
reimburse himself for such owner's proportionate part of the cost out of such owner's
proportionate part of the oil, gas and casinghead gas or the value thereof before making
deliveries of products or settlement for the value thereof. If the option in subsection
(b)(1) of this section is exercised by the owner of any lot, block or tract, such owner shall,
within the time provided for notice of his election set forth in this section, file with the
city clerk a bond or other obligation executed by such owner as principal and by an
authorized surety company as surety, in which such principal and surety agree, bind and
obligate themselves to pay to the permittee, his heirs, successors and assigns, currently
each month, that proportion of the actual and necessary cost and expenses involved in the
drilling, completion and operation of such well that the number of square feet embraced
within the lot. block or tract of such owner bears to the total number of square feet in
such drilling unit, such bond to be approved by the city attorney and held by the city clerk
for the benefit of the beneficiaries therein. The failure of any such owner to timely file
and obtain approval of such bond or other obligation shall be deemed to be an election
under subsection (b)(2) of this section. Permits shall be issued in all cases and shall be
subject to this article and upon the condition that the permittee, his heirs, successors and
assigns shall make settlement in accordance with the provisions thereof.
Section 14: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 3
"Well Spacing," Section 62 -107 "Interests of persons other than permittee," subsections (a) and
(b)(2) of the Code of Ordinances of the City of Baytown, Texas, is hereby amended to read as
follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE 11. OIL AND GAS
DIVISION 3. WELL SPACING
Sec. 62 -107. Interests of persons other than permittee.
(a) The interests of persons other than the permittee who hold oil and gas leases or
equivalent contracts in any drilling unit which contains the bottom -hole location of the
proposed well shall be treated as part of the total working interest of the drilling unit, and
such other persons holding such interests shall each make the election as provided in
subsections (b) and (c) of this section with the permittee within 30 days from the date of
the issuance of a permit with respect to a drilling unit.
(b) The election as provided in subsection (a) of this section is that such other persons shall
either:
(2) If such other persons or any one or more of them fail to elect or fail to file and
obtain approval of the bond under subsection (b)(1) of this section within the 30-
day period, he shall be deemed to have elected to agree that permittee shall be
entitled to reimburse himself currently each month from such other person's
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proportionate share of the proceeds of sale or production in kind for three times the
amount of such other person's proportionate part of the costs and expenses as set
out in subsection (b)(1) of this section.
Section 15: That Chapter 62 "Natural Resources," Article II "Oil and Gas," Division 3
"Well Spacing" of the Code of Ordinances of the City of Baytown, Texas, is hereby amended to
add a new section to be numbered and entitled Section 62 -108 "Multiple wells from one surface
location," which section shall read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE U. OIL AND GAS
DIVISION 3. WELL SPACING
Sec. 62 -108. Multiple wells from one surface location.
Notwithstanding any other provision of this chapter, multiple wells for oil or gas or both,
may be drilled from a single surface drill -site tract on the surface of a single drilling unit under
the following circumstances:
(1) The surface location is in a heavy industrial zoning district, or is located outside
of the regulated area; and
(2) The distance from any residential structure to any wellhead, tanks or production
equipment associated with any well is at least 500 feet distant; and
(3) The nearest commercial or other structure to any wellhead, tanks or production
equipment associated with any well is at least 500 feet distant; and
(4) The nearest municipal park, playground or school to any wellhead, tanks or
production equipment associated with any well is at least 500 feet distant.
The bottom -hole locations of such wells may be located in one or more drilling units, provided
that the depth thereof shall not be less than 2,000 feet subsurface when a well penetrates the
vertical extension of the boundary of the drill -site tract. Notwithstanding any other provisions of
this Article. multiple completions may be made in any given drilling block if a well otherwise
meets the requirements of this section. Notwithstanding the foregoing, (a) no more than one
contiguous surface tract, not to exceed forty (40) acres in area, shall be utilized within a given
gas drilling unit as a surface drillsite location; and (b) no more than one contiguous surface tract,
not to exceed ten (10) acres in area, shall be utilized within a given oil drilling unit as a surface
drillsite location.
Section 16: That Chapter 62 `Natural Resources," Article II "Oil and Gas," Division 4
"Technical Provisions," Section 62 -137 "Technical Requirements" of the Code of Ordinances of
the City of Baytown, Texas, is hereby amended to read as follows:
CHAPTER 62. NATURAL RESOURCES
ARTICLE I1. OIL AND GAS
DIVISION 4. TECHNICAL PROVISIONS
Sec. 62 -137. Technical requirements.
All persons engaged in the drilling and operation of oil or gas wells within the regulated
area shall comply with the following:
(1) In order to enable the holder of each pen-nit to move oil, gas, water or other
products to or from each drilling unit within the city limits, the holder of each
permit issued under this article for the drilling and operation of a well for oil or
gas shall apply to the city council for an easement on, over, under, along or across
the city's streets, sidewalks, alleys and other city property for the purpose of
constructing, laying, maintaining, operating, repairing, replacing and removing
pipelines, so long as production or operations may be continued under any perniit
issued pursuant to this article. However, such pennittee shall:
a. Not interfere with or damage existing water, sewer or gas Iines or the
facilities of public utilities located on, under or across the course of such
rights -of -way;
b. Furnish the city clerk with a plat showing the location of such pipelines;
C. Constrict such lines or cause such to be constructed out of new or
reconditioned pipe in accordance with directions of the city manager and
properly cased and vented if under a street; and
d. Grade.. level and restore the property to the same surface condition, as
nearly practicable, as existed when operations for the drilling of the well
were first commenced.
(2) Any violation of state law or any rules, regulations or requirements of any state or
federal regulatory body having jurisdiction in reference to drilling, completing,
equipping, operating, producing. maintaining or abandoning any oil or gas well or
related appurtenances, equipment or facilities or in reference to firewalls, fire
protection, blowout protection, safety protection or convenience of persons or
property shall also be a violation of this article and shall be punishable in
accordance with this article.
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(3) No person engaged in drilling or operating any well shall permit gas to escape or
be vented into the air unless such gas is flared and burned. All gas flared and
burned from a torch, pipe or other burning device within the city must be done in
such a manner as not to constitute a fire hazard to any property. The location of
the torch, pipe or other burning device; the construction thereof; the maintenance
thereof: and the operation thereof shall at all times be in full compliance with such
regulations as may from time to time be issued by the fire chief.
(4) It shall be unlawful for any person to use or operate, in connection with the
drilling or working over of any well within the city limits, any wooden derrick or
steam powered rig or to permit any drilling rig or derrick to remain on the
premises or drilling site for a period longer than 60 days after completion or
abandonment of the well.
(5) All engines shall be equipped with effective mufflers.
(6) Two dual - controlled. fluid operated blowout preventers with working pressures
equal to the maximum anticipated wellhead pressures shall be used for all drilling
or completion operations involving the use of drill pipe or tubing after the surface
casing has been set. The mechanical operation of the preventers shall be checked
every 24 hours and shall be tested with pump pressure with enough frequency to
ensure good working order at all times.
(7) Only portable steel slush tanks for mud or water shall be permitted in connection
with the drilling and working over operations of any well.
(8) Any person drilling or operating a well for oil or gas shall make adequate
provisions for the disposal of saltwater or other impurities that may be produced
along with the oil or gas in such a manner as not to contaminate the city water
supply or destroy vegetation.
(9) No well shall be drilled or worked over in the city without the bore hole at all
times being filled with drilling fluid of a weight and viscosity as a reasonably
prudent operator would use to keep the well under control at all times.
(10) It shall be unlawful for any person in connection with the drilling or working over
operations of any well within the city to conduct any swabbing operations or to
take and to complete any drill stem test except during daylight hours. Drill stem
tests may be conducted 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. The city manager
shall be informed before drill stem testing or swabbing is performed so that a city
representative may be present during such operations.
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(11) The operator of any well in any field or area within the city shall be required to
set and cement a sufficient amount of surface casing to properly protect all
freshwater sands as specified by the state water commission and the city manager.
A minimum of 1,200 feet of surface casing shall be set. The surface casing shall
be of new or reconditioned casing and shall be set and cemented in accordance
with the rules, regulations and orders of the state railroad commission for the field
or area in which the well is to be drilled. Cementing shall be by the pump and
plug method, and sufficient cement shall be used to fill the calculated annular
space back of the casing to the surface of the ground. If returns to the surface of
the ground are not realized, a temperature survey must be conducted to find the
location of the cement and necessary work performed to provide cementing from
the shoe of the casing to the surface of the ground. The cement shall be allowed to
stand for a period of 24 hours before drilling plug.
If more than 1,200 feet of surface casing is required, in lieu of setting the full
amount of surface casing required to protect freshwater sands, the applicant may
use the multistage cementing process on the next casing string. In using the
multistage cementing process, sufficient cement shall be used in the stage cement
job that is equivalent to the volume of the annulus from the cementing tool to the
surface of the ground. If the cement does not reach the surface of the ground, a
temperature survey must be conducted. If the survey shows that the top of the
cement is less than one -third of the distance from the shoe of the surface casing to
the surface, corrective measures must be taken. Any applicant using the
multistage process must file with the city manager a copy of the state railroad
commission letter granting such permit and an affidavit from the company
performing the cementing. Failure to file either of these shall be unlawful and
shall be punishable in accordance with this article.
In any well drilled in any field or area within the city, the producing string of
casing shall be of new or reconditioned pipe that has been tested and has
withstood the maximum anticipated pressures to be encountered. Cementing shall
be by the pump and plug method, and sufficient cement shall be used to fill the
calculated annular space back of the casing to a point at least 600 feet above the
shoe or the highest productive zone, whichever is applicable. The cement shall be
allowed to stand for a period of 12 hours before drilling plug or until a
compressive strength of 500 psi is obtained. After cementing, the casing shall be
tested at a pressure in pounds per square inch calculated by multiplying the length
of producing string by 0.2, being the maximum test pressure required. If at the
end of 30 minutes the pressure shows a drop of ten percent or more of the
required test pressure.. the casing shall be condemned. After corrective operation
the casing shall again be tested in the same manner.
(12) Before drilling and setting casing in any well for oil or gas within the corporate
limits, the permittee must contact the city manager and the state water
commission and obtain letters stating where the freshwater sands are to be found
in the area or field in which the well is to be drilled. A copy of the state water
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commission's letter must be filed with the city manager, and the permittee must
set sufficient surface casing as required. Failure to file a copy of the state water
commission's letter shall be unlawful and shall be punishable under section 1 -14.
(13) All completed wells within the city shall be equipped with Christmas tree fittings
and wellhead connections, with a rated working pressure equal to or greater than
the surface shut -in pressure of the well. All wellhead connections shall be
assembled and tested prior to installation by a fluid pressure, which shall be equal
to the test pressure of the fitting employed.
(14) Whenever any well is abandoned within the city limits. it shall be the obligation
of the permittee to plug such well in accordance with the rules and regulations of
the state railroad commission and to take any and all additional provisions or
precautionary measures prescribed by the state or the state railroad commission in
connection with abandonment and plugging of the well. It shall be the further
obligation of the permittee or the operator of the well to cut the surface casing off
at least six feet below the surface of the ground and to place at least a 25 -foot
cement plug in the top of the casing and to weld the top of the casing completely
shut. The resulting hole in the ground must be completely filled to the surface of
the ground and duly tamped.
(15) 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 any crude oil storage
tanks except to the extent of two steel tanks for oil storage, not exceeding 500 -
barrel capacity each, and so constructed and maintained as to be vaportight and
each surrounded with an earthen firewall at such distance from the tanks as will,
under any circumstances. hold and retain at least 2' /z 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 vaportight. Each oil and gas separator shall be equipped with both a regulation
pressure relief safety valve and a bursting head.
(16) Any person may install equipment for the purpose of secondary recovery or
pressure maintenance operations or for automatic lease operations, provided that
such person must comply with all safety requirements of this article and of the
state railroad commission.
(17) It shall be unlawful for any person within the corporate limits to install any fired
vessel or open flame nearer than 150 feet to any well or storage tank.
(18) All wellheads, tank batteries. pumping units and equipment appurtenant thereto
within the city which are located within a densely populated area, as determined
by the city manager, or nearer than 100 feet to a public street shall be adequately
protected by a fence so constructed that it will prevent easy entry. However, any
wellhead, tank battery. pumping units or equipment appurtenant thereto which is
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located on any lease, tract or faun, which is fenced in its entirety, will require no
additional protection other than that commonly used by prudent operators. Fences
to prevent easy entry shall be approved by the city manager.
(19) The premises shall be kept in a clean and sanitary condition, free from rubbish of
every character, at all times during the drilling operation and as long thereafter as
oil or gas is being produced therefrom. Every permittee's premises shall be kept
clear of high grass, weeds and combustible trash or any other rubbish or debris
that might constitute a fire hazard within a radius of 100 feet around any oil tank
or producing well or to the limits of premises, whichever is the lesser.
(20) No prime movers shall be permitted within the corporate limits for the purpose of
pumping wells, except electric motors. However, nonelectric motors may be used
in an unusual hardship, with approval of the city manager.
(21) Printed signs reading "danger, no smoking allowed" or similar words shall be
posted in conspicuous places on each well, storage tank or battery of tanks within
the corporate limits.
(22) Material, equipment, tools or pipe used for either drilling or producing operations
at the well shall not be delivered to or removed from the well site except between
the hours of 7:00 a.m. and 7:00 p.m. of any day, except in an emergency;
provided, however. that this restriction shall not apply to operations conducted in
an area zoned heavy industrial under the provisions of chapter 130.
(23) It shall be unlawful to block or encumber or close up any streets or alleys in any
drilling or production operations, except by an ordinance duly passed by the city
council permitting a temporary closing of a street or alley.
Section 17: Any person who fails to comply with any provision of this ordinance shall
be guilty of a misdemeanor and, upon conviction, shall be punished by a fine not exceeding
TWO THOUSAND AND NO /100 DOLLARS ($2,000.00). Each act of violation and each day
upon which any such violation shall occur shall constitute a separate offense. In addition to the
penalty prescribed above, the city may pursue other remedies such as abatement of nuisances,
injunctive relief, administrative adjudication and revocation of licenses or permits.
Section 18: All ordinances or parts of ordinances inconsistent with the terms of this
ordinance are hereby repealed; provided, however. that such repeal 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 19: If any provision. section, exception, subsection, paragraph, sentence,
clause, or phrase of this ordinance or the application of same to any person or the set of
circumstances, shall for any reason be held unconstitutional, void, or invalid, such invalidity
shall not affect the validity of the remaining provision of this ordinance or their application to
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other persons or sets of' circumstances and to this end all provisions of this ordinance are
declared to be severable.
Section 20: 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 Baytown at
least twice within ten (10) days after passage of this ordinance.
INTRODUCED. READ. and PASSED by the affirmative vote of
City of Baytown. this the 91h day of September, 2010. _ '11� 4
APPROVED AS TO FORM:
ACID RAMIREZ. SR.. C' y Attorney
R: \Karen \Files \City Council \Ordinances\2010\Au.-ust 26 \0GFimd.doc
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