Chapter V · Business Regulations

Article 6. Oil And Gas Wells

Sections 5-601 to 5-612 · 12 sections

5-601 Drilling oil and gas wells; duty of governing body.

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 acreage required, and the location of the drill site, depending upon geographical factors, upon the location of houses and other buildings, and the area available which might be attributable to such proposed well.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-602 License and permit; fee.

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 of the city without first having obtained from the governing body a license or permit for the commencement of such operations, and for the drilling of such well. The applicant for such permit shall, at the time of making application therefore, deposit with the city clerk all fees as may be established by the Governing Body 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. 3320; Code 2010, 15-700s; Code 2018)

5-603 Evidence to be presented by licensee.

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

(a)That the applicant has a valid oil and gas lease or leases, signed by the person owning at least 51% of the territory in the area attributable to or which might be attributed to the location where it is proposed to drill the well.

(b)A map or plat of the area covered by the oil and gas lease, showing the proposed location of each well, which map or plat shall also show the location of all residences, buildings, and other structures in the immediate vicinity of such proposed location.

(c)A drilling agreement providing adequate protection to all persons who might be concerned with such drilling operations, including 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 to the end that it may not be necessary to store oil in any populated area, which agreement shall also provide that in the event the well is non-productive, 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 as practicable.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-604 Insurance of operator.

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 certification of insurance insuring the operator against bodily injury to persons in an amount not less than $100,000 for each person and $300,000 for each accident and insuring the operator against damages to property in an amount not less than $100,000 for each accident and further insuring the operator against bodily injury from motor vehicle and trucking operations in an amount not less than $100,000 for each person and $300,000 for each accident and against property damage by reason of motor vehicle and trucking operations in an amount not less than $100,000 for each accident. Evidence of such insurance shall be kept on file with the city clerk of the city continuously so long as any such well or wells are being drilled or operated within the city.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-605 Mapping; locations.

The governing body of the city may from time to time and shall upon the application of any interested person, make a determination of the territory which is to be included in each drilling location within the limits of the city, which the determination shall follow the standard 10 acre geographical locations as nearly as practicable, but in making such determination the governing body shall not be required to split or divide any platted lot or lots, and the area or territory to be attributed to the well or wells under a particular lease or leases shall be the territory described in the drilling permit issued therefor.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-606 Fences.

From and after the effective date of this article, all producing oil or gas wells within the city, 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 enclosure 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. 3320; Code 2010, 15-700s; Code 2018)

5-607 Governing body may make additional requirements.

At the time of the granting of any permit or license under the provisions of this article, the governing body may 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. 3320; Code 2010, 15-700s; Code 2018)

5-608 Unlawful to drill wells without license.

It shall be unlawful 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. 3320; Code 2010, 15-700s; Code 2018)

5-609 Storage of oil.

It shall be unlawful for any person to place or maintain any tank or tank battery 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.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-610 Pipe lines in streets.

It shall be unlawful for any person to lay or maintain any pipe or pipe lines for the transportation of oil or any other substance in the streets, alleys, or other public places of the city without having first obtained a franchise ordinance granting permission so to do. All such pipe lines shall thereafter be laid, maintained, and operated in accordance with the terms of the franchise.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-611 Penalty.

Any person, firm, or corporation hereafter drilling or commencing operations for the drilling of any oil or gas well in violation of the provisions of this article, or thereafter pumping or operating any well drilled in violation of this article shall, upon conviction thereof, be punished by a fine of not less than $100.00 or more than $500.00, or by imprisonment for not more than 30 days, or by both such fine and imprisonment and each day’s violation of this article shall be deemed a separate offense.

(Ord. 3320; Code 2010, 15-700s; Code 2018)

5-612 Saving clause.

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

(Ord. 3320; Code 2010, 15-700s; Code 2018)