Chapter V · Business Regulations

ARTICLE 2. OIL AND GAS WELLS

Sections 5-201 to 5-210 · 10 sections

5-201 Well spacing.

All oil and gas wells hereafter commenced or drilled within the city limits shall be drilled as nearly as practicable in the center of a 10 acre square geographical location; provided, that the governing body of the city, at the time of the granting of the license hereinafter provided for, may permit such variations as may be deemed necessary in the amount of the acreage required, the location of the drill site, depending upon geographical factors and upon the location of houses and other buildings in the area available which might be attributed to such proposed well.

(Ord. 233, Sec. l)

5-202 License or permit required; fee.

(a)It shall be unlawful for any person, firm or corporation to drill or commence operations for the drilling of a well for oil and gas purposes at any place within the city limits without first having obtained from the governing body of the city, a license or permit for the commencement of such operations, and for the drilling of such well.

(b)The applicant for such permit shall, at the time of making application therefor, deposit with the city clerk a fee of $1,000 and in the event such permit is granted, the fee shall be retained by the city but if such permit is denied, the fee shall be returned to the applicant.

(Ord. 233, Sec. 2)

5-203 Same; qualifications.

No such permit shall be granted by the city governing body until the applicant shall have submitted satisfactory evidence as follows:

(a)That the applicant has a valid oil and gas lease or leases signed by the person or persons owning at least 51% of the territory in the area attributable to the proposed well, which the lease shall contain a provision of or shall be accompanied by an agreement in writing, providing for the pooling of all royalties and rentals arising from the leases or from production on the acreage to be distributed among all of the property owners in the area or territory attributable to the well or wells which may be drilled under the lease, including leasing proper ty owners and non-leasing property owners, in accordance with the number of square feet owned by each property owner in the area or territory.

(b)A map or plat of the area covered by the oil and gas lease, showing the proposed location of each well, together with the written consent of the owner of the land on which the well is proposed to be located, consenting to the drilling of the well on the land, which map or plat shall also show the location of all residences, buildings and other structures in the immediate vicinity of such proposed location. The applicant shall also secure and file at the time of this application the written consent of all owners of land having thereon residences, buildings or other structures within a radius of 300 feet of the proposed drill site consenting to the drilling of the well at the proposed site.

(c)A drilling agreement providing a reasonable and adequate plan for the handling of slush, base sediment and salt water that may be produced in connection with the drilling and operation of the well together with facilities for the handling of production. In the event the well is nonproductive, all tools, equipment and machinery used in connection with the drilling of the well shall be removed within 60 days thereafter, and the premises fully restored to their original condition as nearly practicable.

(d)A conveyance of an overriding royalty to the city in the amount of 1/16th of 7/8ths as an overriding royalty so as to defray the expenses to be incurred by the city in providing police protection, fire protection and general services at the well site.

(Ord. 233, Sec. 3)

5-204 Same; insurance.

No such permit shall be granted by the governing body and no oil or gas well shall be drilled or operated within the city until the operator shall have filed with the city clerk of the city a certificate of insurance insuring against bodily injury to persons in an amount not less than $500,000 for each person and $500,000 for each accident and insuring against dam ages to property in an amount not less than $500,000 for each accident and further insuring against bodily injury from motor vehicle and trucking operations in an amount not less than $100,000 for each person and $500,000 for each accident. Evidence of such insurance shall be kept on file with the city clerk of the city so long as any such well or wells are being drilled or operated within the city.

(Ord. 233, Sec. 4)

5-205 Enclosure required.

All producing oil or gas wells within the city limits which are equipped with pumping equipment and are located in or near the populated areas of the city, shall have such pumping equipment enclosed or fenced with a substantial mesh wire fence or such other type of fence as may be approved by the governing body of the city, sufficient to prevent persons who might be injured thereby from gaining access to such pumping equipment.

(Ord. 233, Sec. 5)

5-206 Electric pumps.

Any pumping unit shall be electric. Electric lines to the pumping unit shall be buried as much as practical.

(Ord. 233, Sec. 6)

5-207 Additional regulations.

At the time of the granting of any permit or license under the provisions of this article, the governing body m ay make such additional requirements as it may deem necessary for the protection and safety of persons and property in the territory likely to be affected by the drilling of the well.

(Ord. 233, Sec. 7)

5-208 Violation.

It shall be unlawful to commence operations for the drilling of a well other than as provided for in this section, and it shall be unlawful for any person, firm or corporation to commence operations for the drilling of a well or to conduct any such drilling operations within the city limits of the city without first having obtained the license provided for in this article.

(Ord. 233, Sec. 8)

5-209 Storage tanks.

It shall be unlawful for any person to place or maintain any tank or tank bat ter y for the storage of oil in the city except outside of the populated areas of the city. All such tanks or tank batteries shall be protected by dikes of sufficient height to prevent oil from escaping in the event of the leaking or bursting of the tanks. Such tanks shall be fenced so as to prevent persons who might be injured thereby from gaining access to such tanks.

(Or d. 233, Sec. 9)

5-210 Severability.

If any section, subsection, sentence, clause or other part of this article shall be held to be invalid or inoperative for any reason, such in validity shall not be deemed to affect the remaining provisions of this article.

(Ord. 233, Sec. 11).