Chapter 8.40
OIL WELLS
Sections:
8.40.030 Drilling and producing – Permit required.
8.40.040 Establishment of oil producing districts and controlled drilling sites – Application.
8.40.050 Establishment of controlled drilling sites and oil producing districts.
8.40.060 Required conditions for districts and sites.
8.40.070 Conditions controlling oil drilling and production.
8.40.080 Additional permit fee and business license.
8.40.090 Violation of conditions – Right of cancellation.
8.40.100 Capping wells and sumps – Public nuisance declared.
8.40.110 Fencing wells and sumps.
8.40.120 Fencing wells and sumps – Exceptions.
8.40.130 Cleaning wells and sumps.
8.40.010 Purpose.
It is declared to be the object and purpose of this chapter to permit and establish reasonable and uniform limitations, safeguards, and controls for the reasonable and safe drilling for and production of oil, gas and other hydrocarbons from controlled drilling sites located within the city.
It is recognized that restrictive limitations, safeguards, and controls are necessary in the public interest to effect practices which will not only provide for the most economical recovery of oil, gas, and other hydrocarbon substances, but which will also take into consideration the surface uses of land, as such uses are indicated by the value and character of the existing improvements in or near districts where oil drilling or production is permitted, the desirability of the area for residential or other uses, or any other factor relating to the public health, comfort, safety, and general welfare. It is contemplated that portions of the city may be explored and developed for oil with surface drilling and production operations limited to a few, small, controlled drilling sites within the city so located and spaced as to cause the least detriment to the community and to the public health, safety, comfort and general welfare. (Prior code § 4-9.101)
8.40.020 Definitions.
For the purpose of this chapter certain words and phrases are defined as follows:
“Controlled drilling site” and “site” shall each mean that particular area located within any part of the city upon which surface operations for oil well drilling or deepening and the production of oil or gas or other hydrocarbons shall be permitted under the provisions of this chapter, established and controlled as provided in this chapter.
“Oil” means and includes oil, gas and other hydrocarbons.
“Oil producing district” and “district” shall each mean any area within the city beneath which subsurface operations for oil well drilling or deepening and the production of oil or gas or other hydrocarbons may be permitted under the provisions of this chapter, established and controlled as provided in this chapter. (Prior code § 4-9.102)
8.40.030 Drilling and producing – Permit required.
It is unlawful for any person to drill for or produce oil within the city until such person first obtains a permit pursuant to the provisions of this chapter. (Prior code § 4-9.103)
8.40.040 Establishment of oil producing districts and controlled drilling sites – Application.
Any person desiring to establish an oil producing district and a controlled drilling site shall file an application with the city clerk for the establishment of such district and for the establishment of and a permit to use such site for the development of oil from such district. Such application shall be in writing, duly verified under oath by or on behalf of the applicant, and shall contain or be accompanied by the following information, documents, and fee:
A. The name and address of the applicant;
B. A statement that the applicant has the proprietary or contractual authority to drill for or produce oil under the surface of at least fifty-one percent of the area to be included in each oil producing district covered by such application. Each district covered by such application shall be not less than fifty acres in area, including all streets, ways, and alleys within the boundaries thereof, and shall be substantially compact in area and shall include all lands within the boundaries thereof, and the boundaries thereof shall follow public streets, ways, or alleys so far as may be practicable;
C. A statement that the applicant has the proprietary or contractual authority to drill into and produce oil from each controlled drilling site covered by such application. Each site covered by such application shall be not more than two acres in area and shall be substantially compact in area and shall include all lands within the boundaries thereof;
D. A scale map or plat of each proposed oil producing district showing the boundaries, location, and area thereof;
E. A scale map or plat of each proposed controlled drilling site showing the boundaries, location, and area thereof, the existing surface uses of the area within such site and the surface uses of the area within three hundred feet outside the exterior boundaries of each controlled drilling and other operations conducted on each such controlled drilling site;
F. A statement or other information showing that such proposed oil producing district and controlled drilling site and the applicant’s rights in respect thereto otherwise conform to the requirements of this chapter entitling the applicant to the request permit;
G. A tentative plan of development and producing operations showing:
1. The method by which the applicant proposes to drill, complete, and produce such wells and the type, size and kind of equipment and installations to be used in connection therewith,
2. The precautions the applicant proposes to take against fires, noise, odors, and other hazards incident to drilling and other operations conducted on each such controlled drilling site,
3. The proposed routing of trucks and other traffic incident to such drilling and other operations conducted on each such controlled drilling site, and
4. A landscaping plan showing the size, type, and kind of walls, fences, shrubbery, or other screening to be installed and maintained for concealment:
a. During drilling operations, and
b. Thereafter so long as the controlled drilling site is in use; and
H. A permit fee in an amount established by City Council resolution for each controlled drilling site requested or referred to in the application. (Ord. 1629 § 10, 2003; prior code § 4-9.104)
8.40.050 Establishment of controlled drilling sites and oil producing districts.
A. Hearing on Application – Notice. Upon the filing of such application, the city clerk shall immediately refer the same to the planning commission for examination and report and such other action thereon as may be required by law. Thereafter at the meeting at which the council receives a report of the planning commission upon such application, or in the event the planning commission does not submit to the council its report on such application within a period of forty days (or such additional time not to exceed twenty-five days as shall be authorized by the council prior to the expiration of such forty-day period) from the date of reference of such application to the planning commission, then at the meeting of the council immediately following the expiration of such forty-day period (or such extended period of not to exceed twenty-five additional days), the council shall set such application for public hearing before the council. The council shall set such application for hearing not less than ten days but not more than twenty-five days from the date of making such order and shall direct the city clerk to give notice of the filing of such application and of the hearing thereon. Such notice shall set forth the name and address of the applicant and the time, place, and purpose of the hearing. A copy of such notice shall be posted on or near the door of the council chambers and shall remain posted for not less than ten days prior to the date of hearing. Such notice shall also be published not less than once prior to the hearing in a newspaper of general circulation published in the city and designated by the council or selected by the city clerk in the absence of such designation. The publication of such notice shall not be less than ten days prior to the hearing.
B. Hearing – Witnesses. The council shall have the power and authority to subpoena and compel the attendance of witnesses and the production of papers at such hearing, to swear and examine all witnesses under oath, and may from time to time continue such hearing to a date certain without further notice. The city clerk shall keep a record and minutes of its proceedings.
C. Hearing – Evidence – Issuance of Permit. At such hearing the council shall receive evidence relating to any matter material to such application and give to all persons directly interested, or who may be affected by the action taken by the council in respect thereof, a reasonable opportunity to be heard. After the conclusion of such hearing, if the council finds and determines that the size, shape, and location of each proposed oil producing district and the size and location of each proposed controlled drilling site comply with the requirements of this chapter, that the applicant owns or controls the required percentage of the area within each oil producing district and each controlled drilling site and that the boundaries of each proposed oil producing district are otherwise fairly located so as not to include land which should not be reasonably included or to exclude land that should reasonably be included, the council may, by resolution, authorize the establishment of such oil producing district and controlled drilling site and direct the city clerk to issue to the applicant a permit for the development and production of such oil producing district by means of wells and other surface operations located on such controlled drilling site upon and subject to such reasonable terms, conditions, and requirements as the council finds and determines may be necessary in the discretion of the council to conserve the public safety and general welfare and as will provide for and result in the proper drilling and development of such oil producing district from wells drilled on such controlled drilling site as may be found and determined by the council to be just, fair and equitable and such as will protect the rights of and result in substantial justice to all concerned, will avoid unnecessary hardship and otherwise carry out the spirit and comply with the provisions of this chapter. Such permit shall be effective from and after the date of issuance thereof by the city clerk.
D. Royalties. Each permittee, or his successor in interest, shall, within one year from the date the permit for the establishment of any oil producing district and controlled drilling site becomes effective, execute an offer in writing giving to each record owner of property located in an oil producing district who, on the date of such offer, has not joined in the lease or other authorization to drill the right to royalties as follows: the right to share in the proceeds of production from wells bottomed in such district upon the same basis as those property owners who have by lease or other legal consent agreed to the drilling for and production of oil from the subsurface of fifty-one percent or more of the area in such district. The offer required shall remain open for acceptance for a period of at least four years after the date such permit becomes effective. During the period such offer is in effect, the permittee, or his successors in interest, shall impound all royalties to which such owners, or any of them, may be entitled in a bank or trust company in the state, with proper provisions for payment to the record owners of property in the district who have not signed the lease at the time such permit became effective but who accept such offer in writing within such period. Any such royalties remaining in any bank or trust company at the time such offer expires, which are not due or payable as provided, shall be paid pro rata to those owners who at the time of expiration are otherwise entitled to share in the proceeds of such production. (Prior code § 4-9.105)
8.40.060 Required conditions for districts and sites.
Each controlled drilling site and/or oil producing district established under the provisions of this chapter shall be subject to the following required conditions:
A. Each oil producing district shall be not less than fifty acres in area, including all streets, ways and alleys within the boundaries thereof.
B. Not more than one controlled drilling site shall be permitted for the development of each fifty acres in each district, and such site shall not be larger than two acres.
C. The number of wells which may be drilled from any controlled drilling site shall not exceed one well to each five acres in each district to be explored from such site.
D. Each applicant requesting a permit for the establishment of an oil producing district shall have the proprietary or contractual authority to drill for oil and produce oil from under the surface of at least fifty-one percent of the area in the district to be explored.
E. Each controlled drilling site and all exterior parts thereof shall be adequately landscaped except for those portions occupied by any required structure, appurtenance, or driveway and all such landscaping shall be maintained in good condition at all times.
F. Each permittee, prior to commencing drilling, production, or incidental operations permitted, shall post with the council a corporate surety bond (to be approved as to form by the city attorney) in the sum of five thousand dollars in favor of the city, conditioned upon the performance by the permittee of each and all of the conditions, provisions, restrictions and requirements of the permit and this chapter. No extension of time which may be granted by the council or any change of specifications or requirements which may be approved or required by it, or any other alterations, modifications, or waivers affecting any of the obligations of the permittee made by any city authority or by any other power or authority whatever shall be deemed to exonerate either the permittee or the surety on any bond posted pursuant to this subsection. (Prior code § 4-9.106)
8.40.070 Conditions controlling oil drilling and production.
No operations in connection with the drilling for and producing of oil shall be commenced until a permit has been issued therefor pursuant to an application and the determination of prescribed conditions as set forth in this chapter. In addition thereto, the following conditions shall also be required conditions under which operations shall be conducted from any controlled drilling site:
A. Drilling operations shall be commenced on at least one controlled drilling site within one hundred eighty days from the effective date of the permit or within such additional time as the council in its discretion may allow and thereafter shall be prosecuted diligently to completion.
B. Drilling operations shall at all times be carried on only by internal combustion engines equipped with mufflers so as to reduce noise to a minimum.
C. Pumping and producing operations shall at all times be carried on only by electrical power, none of which power shall be generated by the permittee on the controlled drilling site or in the district.
D. Drilling operations shall be carried on or conducted in connection with only one well at a time on any controlled drilling site, and such well shall be brought in or abandoned before operations of the drilling of another well are commenced on such controlled drilling site; provided, however, the council may permit the drilling of more than one well on such controlled drilling site at any time after a discovery well has been brought in.
E. All oil drilling and production operations shall be conducted in such a manner as to eliminate, as far as practicable, dust, noise, vibration and noxious odors and shall be in accordance with good engineering practices incident to drilling for and the production of oil, gas, and other hydrocarbon substances.
F. All parts of the derrick above the derrick floor shall be enclosed with fire resistant, soundproofing material approved by the fire chief.
G. Heavy trucking of materials, equipment, and pipe used either for drilling or production operations shall be conducted to or from the controlled drilling site only between the hours of six a.m. and six p.m. on any day except in case of emergency incident to unforeseen drilling or producing operations.
H. No earthen sumps shall be used.
I. Firefighting equipment, as required by applicable fire regulations of the city, shall be maintained on the site at all times during the drilling and production operations.
J. Within sixty days after the drilling of each well has been completed and such well placed on production or abandoned, the derrick and all other drilling equipment shall be entirely removed from the site unless such derrick and appurtenant equipment are to be used in a reasonable time for the drilling of another well in the same site.
K. No oil, gas, or other hydrocarbon substances may be produced from any well permitted unless all equipment necessary for such production is reasonably screened from view or installed below ground level and maintained in accordance with applicable fire regulations.
L. No production tanks and no tanks or other facilities for the storage of mud, water, or oil shall be erected or maintained on the site which facilities extend above the ground level to a height of more than six feet.
M. No refinery or other processing plant of any kind shall be constructed, established, or maintained on the site at any time.
N. No sign shall be constructed, erected, maintained, or placed on the site, or any part thereof, except those required or permitted by law to be displayed in connection with the drilling or maintenance of the well.
O. Suitable and adequate sanitary toilet and washing facilities shall be installed on the site and maintained in a clean and sanitary condition at all times.
P. Each permittee, and his agents, successors, and assigns who conduct drilling, production, or incidental operations permitted, shall at all times be insured to a limit of not less than five hundred thousand dollars against liability in tort arising from drilling, production, or other activities or operations conducted or carried on from any controlled drilling site. The policy of insurance shall be written by an insurer whose total assets are at least five million dollars, and the form of the policy shall be subject to the approval of the city attorney. A duplicate policy shall be filed with the city clerk. Each such policy shall be conditioned or endorsed so as to cover all agents, lessees, or representatives of the owner, lessee, or permittee who may actually conduct drilling, production, or incidental operations permitted by this chapter.
Q. The performance of any act required to be performed within a specified period of time shall be suspended during the time the permittee is prevented from performing by the elements, accidents, strikes, lockouts, riots, delays in transportation, interference by municipal, state or federal action, or the action of other governmental officials or bodies, or any other cause beyond the reasonable control of the permittee, whether such causes are similar or dissimilar to the causes specifically mentioned, or so long as the price of oil of the quality specifically mentioned, or so long as the price of oil of the quality produced from any well shall be less than seventy-five cents per barrel at the well. (Prior code § 4-9.107)
8.40.080 Additional permit fee and business license.
Each permittee holding a permit under the provisions of this chapter shall have the right and such permittee is permitted, in consideration of the one thousand dollars controlled drilling site fee, to drill one well in and upon such drilling site, but shall pay a further permit fee in the sum of one thousand dollars for each additional well drilled in or upon such site, which fee shall be paid before drilling operations on any such additional well are commenced. Each such permittee shall also obtain and at all times have and possess a valid and then current business license covering each and every well, business, or activity conducted by, for, or on behalf of such permittee in or upon the premises included within any such drilling district or controlled drilling site and for which a business license is required under the provisions of this code. (Prior code § 4-9.108)
8.40.090 Violation of conditions – Right of cancellation.
In the event any owner, lessee, or permittee shall violate any of the conditions prescribed by this chapter or any permit issued by this chapter, the council may order the city clerk to give such owner, lessee, or permittee notice of such violation. If such owner, lessee, or permittee shall fail, without just cause, to commence to remedy such violation within ten days after receipt of written notice thereof from the city clerk, the council may, by resolution, suspend or cancel any permit issued; provided, however, such suspension or cancellation shall not affect the right of the owner, lessee, or permittee to continue the drilling for or production of oil from wells which are then drilling or producing and as to which no such violation exists. (Prior code § 4-9.109)
8.40.100 Capping wells and sumps – Public nuisance declared.
The council does hereby finds and declares that uncapped or unguarded wells, cisterns, holes in the ground which are likely to produce bodily injury as a result of a fall therein, oil sumps and other earthen sumps or excavations to be of a dangerous nature and a public nuisance. (Prior code § 4-9.201)
8.40.110 Fencing wells and sumps.
Every person making, maintaining, or using any oil well or sump, and every person making, maintaining, or using any other manmade excavation three feet or more in depth, and every person owning or having possession of any premises on which such excavation exists shall either cover such excavation by a wooden or metal cover as approved by the building official, so designed as to effectively prevent any likely injury or accident, or erect and maintain around such excavation at all places, if an oil sump and in other cases at all places where the slope is steeper than one foot vertical to two feet horizontal, if not under water, or one foot vertical to four feet horizontal, if under water, a fence not less than five feet high, mounted on steel posts. Such fence shall be constructed of chainlink or other industrial type fence of not less than nine gauge wire and of not greater than two inch mesh. The posts supporting such fence shall be set thirty-six inches in a concrete base and shall be spaced approximately ten feet apart. Tension wires of at least nine gauge coil spring wire or equivalent shall be stretched at the top and bottom of the fence fabric at twenty-four-inch intervals. On top of such fence shall be constructed a protective guard of not less than three strands of barbed wire, each strand not less than six inches or more than eight inches apart, mounted at a forty-five degree angle from the top of the fence. Gates shall be of a structure substantially the same as the required fence and shall be kept locked when not attended by an adult. There shall be no apertures below the fence large enough to permit any child to crawl under such fence. (Prior code § 4-9.202)
8.40.120 Fencing wells and sumps – Exceptions.
The provisions of Section 8.40.110 shall not apply to:
A. An oil sump constantly and immediately attended while drilling operations are continuously proceeding;
B. An excavation covered by Sections 24400, 24401, or 24402 of the Health and Safety Code of the state;
C. An excavation for the installation of a public utility or other public building if not abandoned;
D. An excavation in connection with the construction of a private residence or other private building if not abandoned; or
E. A swimming pool, fish pond, or wading pond on the same lot or parcel of land as a private residence. (Prior code § 4-9.203)
8.40.130 Cleaning wells and sumps.
Every person operating or maintaining an oil well shall cause all sumps, cellars, and ditches which were used, installed, or maintained for use in connection with any well and which have not been used for ninety days for the operation of or the drilling of such well, or any other well in the vicinity, to be cleaned and all oil, rotary mud, and rubbish removed therefrom. (Prior code § 4-9.204)
8.40.140 Invalid exceptions.
Should any exception to the provisions of this chapter be held invalid, such exception shall be eliminated from this chapter. The council declares that it intends the provisions of this chapter to apply to every excavation which, by reason of constitutional limitations, cannot be excepted from its provisions. (Prior code § 4-9.205)