Zoneomics Logo
search icon

Azle City Zoning Code

SECTION 36

OIL AND GAS

§ 36.1 PURPOSE AND INTENT.

The exploration, development and production of oil or gas in the City is an activity which necessitates reasonable regulation to ensure that all property owners, mineral and otherwise, have the right to peaceably enjoy their property and its benefits and revenues. It is hereby declared to be the purpose of this Ordinance to establish reasonable and uniform limitations, safeguards and regulations for present and future operations related to the exploring, drilling, developing, producing, transporting and storing of oil or gas and other substances produced in association with oil or gas within the City to protect the health, safety and general welfare of the public, minimize the potential impact to property and mineral rights owners, protect the quality of the environment and encourage the orderly production of available mineral resources.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.2 DEFINITIONS.

All technical industry words or phrases related to the drilling and production of oil and gas wells not specifically defined shall have the meanings customarily attributable thereto by prudent operators in the oil and gas industry. For the purposes of this Ordinance, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
Abandonment:
“Abandonment” as defined by the Railroad Commission and includes the plugging of the well and restoration of the drill site as required by this Ordinance.
Applicant:
A person to whom a permit or certificate for the drilling, operation and production of a well, or the installation or operation of a pipeline, is issued under this Ordinance, including, but not limited to, his or her heirs, legal representatives, successors or assigns.
City:
The City of Azle, Texas.
City Staff:
Employees and independent contractors performing services for the City of Azle, including but not limited to the Fire Marshal.
Drill Site:
The area used for drilling, completing, or reworking a well.
Drilling:
Any digging or boring of a new well to develop or produce oil or gas or to inject gas, water, or any other fluid or substance into the earth. Drilling means and includes the reentry of an abandoned well. Drilling does not mean or include the reentry of a well that has not been abandoned.
Exploration:
Geologic or geophysical activities, including, but not limited to surveying and seismic exploration, related to the search for oil, gas, or other subsurface hydrocarbons.
Fire Code:
The Fire Code adopted by the City of Azle, as amended.
Gas:
Gas or natural gas, as such terms are used in the rules, regulations, or forms of the Railroad Commission.
Gas Well:
Any well drilled for the production of gas or classified as a gas well under the Texas Natural Resources Code or the Railroad Commission.
Gas Well Permit:
A Gas Well Permit applied for and issued or denied under this Ordinance authorizing the drilling, production, and operation of one or more gas wells.
Gathering Station:
The site where the gathering lines for all the wells converge.
Hazardous Materials Management Plan:
The hazardous materials management plan and hazardous materials inventory statements required by the Fire Code.
New Well:
A new well bore or new hole established at the ground surface and shall not include the reworking of an existing well that has not been abandoned.
Oil:
Oil, as such terms are used in the rules, regulations, or forms of the Railroad Commission.
Oil Well:
Any well drilled for the production of oil or classified as an oil well under the Texas Natural Resources Code or the Railroad Commission.
Oil Well Permit:
An Oil Well Permit applied for and issued or denied pursuant to this Ordinance authorizing the drilling, production, and operation of one or more oil wells.
Operation Site:
The area used for development and production and all related operational activities of oil and gas after drilling activities are complete.
Operator:
For each well, the person listed on the Railroad Commission Form W-1 or Form P-4 for an oil or gas well.
Person:
Includes both the singular and plural and means an individual person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, and a fiduciary or representative of any kind.
Petroleum Specialist:
A qualified oil and gas consultant familiar with and educated in the oil and gas industry who has been retained by the City.
Pipeline Easement Map:
A map indicating all gathering line easements. The easements must be located separately from the utility easements.
Railroad Commission:
The Railroad Commission of Texas.
Structure:
Any building intended for shelter, occupancy, housing or enclosure for persons, animals, cattle or storage.
Well:
A hole or bore to any horizon, formation, or strata for the purpose of producing oil, gas, or other liquid hydrocarbons.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.3 OIL AND GAS WELL DRILLING AND PRODUCTION BY SPECIFIC USE PERMIT.

The drilling and production of oil and gas within the corporate limits of the City shall be permitted by Specific Use Permit, which shall be subject to the following:
A. 
The application for the Specific Use Permit shall be in accordance with the provisions of Section 32, hereof. The Specific Use Permit may lessen or impose additional development requirements on a successful applicant.
B. 
No drilling shall be permitted within six hundred (600') feet of any residential structure or public building, institution, school, or commercial building; provided, however, that drilling shall be permitted as close as three hundred feet (300') if all property owners within six hundred (600') feet agree in writing.
C. 
A Development Site Plan in accordance with the provisions set forth herein.
D. 
An approved Road Repair Agreement in accordance with the provisions set forth herein.
E. 
An Oil and Gas Permit application may be filed with the City concurrently with the application for a Specific Use Permit; provided, however, that the City shall not be required to consider the Oil and Gas Permit application Permit unless and until a Specific Use Permit is approved by the City Council.
F. 
Access roads located adjacent to developed residential properties shall be constructed a minimum of two hundred (200) feet away from adjacent residential structures.
Exception:
(1) 
Where unique circumstances prohibit the required 200 foot separation, the City Council may waive this requirement.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.4 OIL AND GAS WELL PERMIT REQUIRED.

A. 
Any person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall not engage in the drilling and production of oil or gas wells within the corporate limits of the City without first obtaining an Oil and Gas Well Permit issued pursuant to this Ordinance. An operator may apply for and obtain separate permits covering each well or a “blanket” permit covering multiple wells within a Specific Use Permit.
B. 
When an Oil and Gas Well Permit has been issued covering a well, the permit shall constitute authority for drilling, operation, production, gathering of production, maintenance, repair, reworking, testing, site preparation consisting of rigs or tank batteries, plugging and abandonment, and any other activity authorized by this Ordinance associated with drilling or production by the operator and their respective employees, agents, and contractors. An Oil and Gas Well Permit shall also constitute authority for the construction and use of all facilities reasonably necessary or convenient in connection therewith, including gathering lines and discharge lines, by the operator and its respective employees, agents, contractors and subcontractors.
C. 
An Oil and Gas Well Permit shall not, however, constitute authority for the reentering and drilling of an abandoned well. Reentry and drilling of an abandoned well shall require a new Oil and Gas Well Permit.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.5 ROAD REPAIR AGREEMENT.

A Road Repair Agreement shall be filed with the Community Development Department of the City. A Road Repair Agreement must obligate the operator to repair damage to public streets, including but not limited to bridges, caused by the operator (or by the operator’s employees, agents, contractors or representatives) in the performance of any activity authorized by or contemplated by the approved Oil or Gas Well Permit. The City Manager shall have the authority to execute the Road Repair Agreement upon approval by the City Council.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.6 COMPLIANCE WITH THE DEVELOPMENT SITE PLAN.

Any person who proposes extraction of oil or gas on a tract of land located within the corporate limits of the City of Azle shall prepare an Oil or Gas Well Development Site Plan. In addition to the requirements outlined in Section 31 hereof, the following shall apply:
A. 
The Development Site Plan shall provide for adequate sanitation facilities, access roads, drainage, erosion control and other necessary supporting facilities identified on the Development Site Plan.
B. 
The design, location, and arrangement of all driveways and parking spaces shall provide for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments.
C. 
Erosion control is required and shall comply with all local, State and Federal requirements. The operator shall file a copy of the Stormwater Pollution Plan if required by the EPA.
D. 
Reserve pits shall be lined to prevent water pollution.
E. 
With the exception of vehicular access, no development is allowed in a floodway.
F. 
Prior to approval of an Oil or Gas Well Development Site Plan, an approved Road Repair Agreement must be on file with the City.
G. 
A video documenting the existing conditions will be required prior to approval of the Road Repair Agreement.
H. 
Identify truck routes and access points.
I. 
Identify Environmentally Sensitive Areas (ESA’s) including floodplains and any proposed floodplain, creek and stream crossings.
1. 
All floodplain, creek and stream crossings, if not at grade, shall be designed to a 10-year storm frequency.
2. 
All floodplain crossings shall have no negative effects on surrounding property.
3. 
A drainage study sufficient to substantiate the above requirements will be required as part of the submittal if crossings are proposed.
4. 
Identify and indicate the proposed method of erosion control.
J. 
Notwithstanding anything to the contrary contained herein, an operator, at his or her sole expense, shall be required to file an approved development site plan in the real property records of the County in which the subject property is located and provide documentary evidence of that fact to the City, prior to commencing operations on any otherwise approved site within the City.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.7 CONTENTS OF APPLICATION FOR OIL AND GAS WELL PERMIT.

Applications for Oil and Gas Well Permits shall be in accordance with the following:
A. 
Shall be submitted in writing, on forms provided by the City.
B. 
Shall include a copy of the applicable Pipeline Easement Map indicating the gathering station site.
C. 
Shall be signed by the operator.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.8 REVIEW OF APPLICATIONS FOR OIL AND GAS WELL PERMIT.

A. 
All applications for Oil and Gas Well Permits shall be filed with the Planning and Zoning Coordinator who shall immediately forward all applications to the Petroleum Specialist for review. Incomplete applications shall be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies if requested by the applicant. All applications for an Oil and Gas Permit shall be accompanied by a processing fee in the amount of seven thousand five hundred dollars, ($7,500.00), which shall be assessed to recoup the administrative expenses incurred by the City in administrating such permit. The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator.
B. 
The Petroleum Specialist shall review each application within thirty (30) days after filing and shall determine whether the application includes all of the information required by this Ordinance, whether the application is in conformance with the applicable Oil and Gas Well Development Site Plan, the applicable Specific Use Permit, the Road Repair Agreement, and whether the application is in conformance with the insurance and security requirements set forth in this Ordinance.
C. 
The failure of the Petroleum Specialist to review an Oil and Gas Well Permit application within the time limits specified above shall not require the City to approve an application that does not meet the minimum requirements set forth in this Ordinance.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.9 CONTENTS OF OIL AND GAS WELL PERMIT ISSUED BY THE CITY.

A. 
Each Oil and Gas Permit shall contain the following information:
1. 
Identify the name of each well and its operator;
2. 
Specify the date on which the City issued each permit;
3. 
Specify the date by which drilling must commence on at least one well covered by the permit, otherwise the permit expires (such date shall not be less than one (1) year after the date of issuance). A one (1) year extension of time may be granted if existing conditions are the same;
4. 
Specify that if drilling is commenced on at least one (1) well covered by the permit before the permit expires, the permit shall continue until the wells covered by the permit are abandoned and the site(s) restored;
5. 
Incorporate, by reference, the insurance and security requirements set forth in this Ordinance;
6. 
Incorporate, by reference, the requirement for periodic reports and for providing notice of reworking an existing well, as set forth in this Ordinance;
7. 
Incorporate the full text of the release of liability provisions set forth in this Ordinance;
8. 
Incorporate, by reference, the conditions of the applicable Development Site Plan and applicable Specific Use Permit;
9. 
Incorporate, by reference, the information contained in the permit application;
10. 
Incorporate, by reference, the applicable rules and regulations of the Railroad Commission, including the applicable “field rules”;
11. 
Specify that no drilling operations (including the construction of internal private access roads) shall commence until the operator has provided the security required by this Ordinance;
12. 
Contain the name, address, and phone number of the person designated to receive notices from the City, which person must be a resident of Texas, that can be served in person or by registered or certified mail; and
13. 
Incorporate by reference all permits and fees required by the City.
B. 
If the City denies an application for an Oil and Gas Well Permit, nothing herein contained shall prevent a new permit application from being submitted to the City for the same well.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.10 INSURANCE AND INDEMNIFICATION.

The operator shall provide or cause to be provided the insurance described below for each well for which an Oil and Gas Well Permit is issued, such insurance to continue until the well is abandoned and the site restored. The operator may provide the required coverage on a “blanket basis for multiple wells”. The operator shall provide an affidavit from the operator’s insurance company certifying that the insurance provided complies with the requirements of this Ordinance.
A. 
General Requirements: Indemnification and Express Negligence Provisions:
1. 
Each Oil and Gas Well Permit issued by the City shall include the following language: Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City of Azle and/or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under an Oil and Gas Well Permit and the operator caused by or arising out of, that sequence of events which occur from the operator under the Oil and Gas Well Permit and work performed by the operator shall fully defend, protect, indemnify, and hold harmless the City of Azle, Texas, and/or its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the City of Azle, Texas, and/or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under an Oil and Gas Well Permit, and the Operator agrees to indemnify and hold harmless the City of Azle, Texas, and/or its departments, and/or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City and/or, its departments, its officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Azle, occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF AZLE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF AZLE, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF AZLE, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT.
2. 
All policies shall be endorsed to read[:] “This policy will not be cancelled or nonrenewed without thirty (30) days advanced written notice to the owner and the City.”
3. 
Liability policies shall be written by carriers licensed to do business in Texas and with companies with A: VIII or better rating in accordance with the current Best Key Rating Guide, or with nonadmitted carriers that have a financial rating comparable to carriers licensed to do business in Texas, and approved by the City.
4. 
Liability policies shall name as “Additional Insured” the City and its officials, agents, employees, and volunteers. Waivers of subrogation shall be provided in favor of the City.
5. 
Certificates of insurance must be presented to the City evidencing all coverages and endorsements required by this Ordinance, and the acceptance of a certificate without the required limits and/or coverages shall not be deemed a waiver of these requirements.
6. 
Claims made policies will not be accepted except for excess policies or environmental policies.
B. 
Required Insurance Coverage:
1. 
Commercial General Liability Insurance:
a. 
Coverage should be a minimum Combined Single Limit of One Million Dollars ($1,000,000.00) per occurrence for Bodily Injury and Property Damage with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000.00) per occurrence. This coverage must include premises, operations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractors protective liability and personal injury.
b. 
Environmental Impairment (or Seepage and Pollution) shall be either included in the coverage or written as separate coverage. Such coverage shall not exclude damage to the lease site. Coverage shall apply to sudden and nonsudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. Coverage shall be a minimum combined single limit of One Million Dollars ($1,000,000.00), per occurrence with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000.00) per occurrence.
2. 
Automobile Liability Insurance:
Minimum Combined Single Limit of One Million Dollars ($1,000,000.00) per occurrence for Bodily Injury and Property Damage. Such coverage shall include owned, nonowned, and hired vehicles with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000.00) per occurrence.
3. 
Worker’s Compensation Insurance:
In addition to the minimum statutory requirements, coverage shall include Employer’s Liability limits of at least One Hundred Thousand Dollars ($100,000.00) for each accident, One Hundred Thousand Dollars ($100,000.00) for each employee, and a Five Hundred Thousand Dollars ($500,000.00) policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the City, its officials, agents, employees, and volunteers for any work performed for the City by the operator.
4. 
Excess (or Umbrella) Liability Insurance:
Minimum limit of Ten Million Dollars ($10,000,000.00) covering in excess of the preceding insurance policies.
5. 
Control of Well Insurance:
a. 
Minimum limit of Five Million Dollars ($5,000,000.00) per occurrence with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000.00) per occurrence.
b. 
Policy shall cover the Cost of controlling a well that is out of control, redrilling or restoration expenses, seepage and pollution damage. Damage to Property in the Operator’s Care, Custody, and Control with a sublimit of Five Hundred Thousand Dollars ($500,000.00) may be added.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.11 SECURITY.

A security instrument that covers each well must be delivered to the City before the issuance of the Oil and Gas Well Permit for the well. The instrument must provide that it cannot be cancelled without at least thirty (30) days prior written notice to the City. The instrument shall secure the obligations of the operator related to the well to:
A. 
Repair damage, excluding ordinary wear and tear, if any, to public streets, including but not limited to bridges, caused by the operator or by the operator’s employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the Oil and Gas Well Permit;
B. 
Comply with the insurance and security provisions set forth in this Ordinance.
C. 
Pay fines and penalties imposed upon the operator by the City for any breach of the Oil and Gas Well Permit.
D. 
The security instrument may be in the form of an irrevocable letter of credit or payment bond issued by a bank or surety approved by the City. The instrument shall run to the City for the benefit of the City, shall become effective on or before the date the Oil and Gas Well Permit is issued, and shall remain in effect until the well is abandoned and the site restored.
E. 
A certificate of deposit may be substituted for the letter of credit or payment bond. The certificate shall be issued by a bank in the City of Azle, Texas, shall be approved by the City, shall be payable to the order of the City to secure the obligations of the operator described above, and shall be pledged to the bank with evidence of delivery provided to the City. Interest on the certificate shall be payable to the operator.
F. 
The security instrument may be provided for individual wells or on a “blanket” basis for multiple wells. The amount of the security shall be a minimum of Fifty Thousand Dollars ($50,000.00) for any single well and a minimum of Two Hundred Fifty Thousand Dollars ($250,000.00) for multiple wells on a “blanket” basis.
G. 
An appeal of the determination of the amount of security required under this Ordinance may be made to the Planning and Zoning Commission for recommendation to the City Council for final determination of the amount of security.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.12 PERIODIC REPORTS.

A. 
The operator shall notify the Planning and Zoning Coordinator of any changes to the following information immediately, within one (1) business day after the change occurs.
1. 
The name, address, and phone number of the operator;
2. 
The name, address, and twenty-four (24) hour phone number of the person(s) with supervisory authority over drilling or operations activities;
3. 
The name, address, and phone number of the person designated to receive notices from the City, which person must be a resident of Texas that can be served in person or by registered or certified mail; and
4. 
The operator’s Emergency Action Response Plan including “drive-to-maps” from public rights-of-way to each SUP site.
B. 
The operator shall provide a copy of any “incident reports” or written complaints submitted to the Railroad Commission or any other state or federal agency within thirty (30) days after the operator has notice of the existence of such reports or complaints.
C. 
Beginning on December 31st after each well is completed, and continuing on each December 31st thereafter until the operator notifies the City that the well has been abandoned and the site restored, the operator shall prepare a written report to the City identifying any changes to the information that was included in the application for the applicable Oil and Gas Well permit that have not been previously reported to the City.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.13 AMENDED OIL AND GAS WELL PERMITS.

A. 
An operator must submit an application to the Planning and Zoning Coordinator to amend an existing Oil and Gas Well Permit, to commence drilling from a new drill site that is not shown on (or incorporated by reference as part of) the existing permit, to relocate a drill site or operation site that is shown on (or incorporated by reference as part of) the existing permit, or to otherwise amend the existing permit.
B. 
Applications for amended Oil and Gas Well Permits shall be in writing, shall be on forms provided by the Petroleum Specialist, shall be signed by the operator, and shall include the following:
1. 
The original application fee as set forth herein;
2. 
A description of the proposed amendments;
3. 
Any changes to the information submitted with the application for the existing Oil and Gas Well Permit (if such information has not previously been provided to the City);
4. 
Such additional information as is reasonably required by the Petroleum Specialist or City Staff to demonstrate compliance with the applicable Development Site Plan and applicable Specific Use Permit; and
5. 
Such additional information as is reasonably required by the Petroleum Specialist or City Staff to prevent imminent destruction of property or injury to persons.
6. 
All applications for amended Oil and Gas Well Permits shall be filed with the Planning & Zoning Coordinator. The application shall be immediately forwarded to the Petroleum Specialist for review. Incomplete applications may be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies. The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator.
7. 
If the activities proposed by the amendment are not materially different from the activities covered by the existing Oil and Gas Well Permit, and if the proposed activities are in conformance with the applicable Development Site Plan and applicable Specific Use Permit, then the Petroleum Specialist shall review the amendment within ten (10) days after the application is filed.
8. 
If the activities proposed by the amendment are materially different from the activities covered by the existing Oil and Gas Well Permit, and if the proposed activities are in conformance with the applicable Development Site Plan and applicable Specific Use Permit, then the Petroleum Specialist shall review the amendment within thirty (30) days after the application is filed. If, however, the activities proposed by the amendment are materially different and, in the judgment of the Petroleum Specialist, might create a risk of imminent destruction of property or injury to persons that was not associated with the activities covered by the existing permit or that was not otherwise taken into consideration by the existing permit, the amendment must be processed as a new Oil and Gas Well Permit application.
9. 
The failure of the Petroleum Specialist to review an amended Oil and Gas Well Permit application within the time limits specified above shall not require the City to approve an application that does not meet the minimum requirements set forth in this Ordinance.
10. 
A decision to deny an amendment to an Oil and Gas Well Permit shall be provided to the operator in writing within ten (10) days after the decision is made, including an explanation of the basis for the decision. The operator may appeal any such denial to the City Council.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.14 TRANSFER OF OIL AND GAS WELL PERMITS.

An Oil and Gas Well Permit may be transferred by the operator with the consent of the City if the transfer is in writing signed by both parties, and the transferee agrees to be bound by the terms and conditions of the transferred permit, if all information previously provided to the City as part of the application for the transferred permit is updated to reflect any changes and if the transferee provides the insurance and security required by this Ordinance. The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the City. The transfer shall not relieve the transferor from any liability to the City arising out of any activities conducted prior to the transfer.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.15 ON-SITE OPERATION REQUIREMENTS.

A. 
A secured entrance gate and a sign shall be required. The sign identifying the entrance to the drill site or operation site shall be reflective. Entrance gates shall be provided with a “Knox Pad Lock” conforming to City of Azle Fire marshal’s specifications.
B. 
Temporary six-foot (6') chain link or approved alternative fences shall be required to surround drill sites during initial drilling and completion, and shall be locked when no operations personnel are present.
C. 
Permanent cedar fences with masonry columns spaced not less than sixteen feet (16'), nor more than twenty-four feet (24') surrounding operation sites shall be a minimum of eight feet (8') in height or higher than the enclosed equipment and shall remain locked at all times when no one is present. For security purposes, all permanent fencing structures shall have a wrought iron gate to allow visibility into the well site.
D. 
No refining process, or any process for the extraction of products from gas, shall be carried on at a drill site or operation site, except that a dehydrator and separator may be maintained on a drill site or operation site for the separation of liquids from gas. Any such dehydrator or separator may serve more than one well. All production equipment on an operation site shall be painted and maintained at all times, including pumping units, storage tanks, buildings, and structures.
E. 
Permanent weatherproof signs reading “DANGER NO SMOKING ALLOWED” in a minimum of four inch (4") lettering shall be posted at the entrance of each drill site and operation site. The sign shall include the phone number for emergency services (911), the name and phone number for the operator, and the well designation required by the Railroad Commission, and site address all in two inch (2") lettering.
F. 
No person shall place, deposit, or discharge or cause or permit to be placed, deposited, or discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, or any refuse, including wastewater or brine, from any oil or gas operation or the contents of any container used in connection with any oil or gas operation in, into, or upon any public right-of-way, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private property within the corporate limits of the City.
G. 
All electric lines to production facilities shall be located underground.
H. 
All fire suppression and prevention equipment required by any applicable federal, state, or local law shall be provided by the operator, at the operator’s cost, and maintenance and upkeep of such equipment shall be the responsibility of the operator.
I. 
No operator shall excavate or construct any lines for the conveyance of fuel, water, gas or petroleum liquids on, under, or through the streets or alleys or other land of the City without an easement or right-of-way license from the City, at a price to be agreed upon, and then only in strict compliance with this Ordinance, with other ordinances of the City, and with the specifications established by the City.
J. 
The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any public street or leaving upon any public street any earth or other material or obstruction, is prohibited unless the operator has first obtained written permission from the City, and then only in compliance with specifications established by the City.
K. 
No Oil or Gas Well Permit shall be issued for any well to be drilled within any of the streets or alleys of the City and/or streets or alleys shown by the Comprehensive Land Use Plan, and no street shall be blocked or encumbered or closed due to any exploration, drilling, or production activities unless prior consent is obtained from the City, and then only temporarily.
L. 
No tank batteries may be installed higher than eight feet above ground level.
M. 
A drive approach conforming to City of Azle standards shall be installed from the property line to the edge of street pavement. Access from the drive approach to the pad site shall be constructed of a minimum of six (6) inches of road base installed with a crown. Access roads shall be maintained at all times. “Shaker Tables” shall be installed within the access road.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.16 OPERATIONS AND EQUIPMENT PRACTICES AND STANDARDS.

A. 
Adequate nuisance prevention measures shall be taken to prevent or control offensive odor, fumes, dust, noise and vibration. All debris associated with the clearing of land for the pad site shall be removed prior to any drilling operations commencing.
B. 
No person shall permit any lights located on any drill or operation site to be directed in such a manner so that they shine directly on public roads, adjacent property or property in the general vicinity of the operation site. To the extent practicable and taking into account safety considerations, site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within three hundred (300') feet.
C. 
The operator shall at all times comply with the rules and regulations of the Railroad Commission including but not limited to all applicable Field Rules.
D. 
Internal combustion engines may be used in drilling and producing operations if they have mufflers that will reduce noise to not more than seventy (70) decibels at any point three hundred feet (300') from the boundary of the drill site or operation site. The noise level during fracking operations shall reduce the noise to not more than eighty (80) decibels at any point three hundred feet (300') from the boundary of the drill site or operation site. If noise levels at a distance of three hundred feet (300') exceed eighty (80) decibels, a sound reduction enclosure shall be required around a drilling rig and any internal combustion engines. Only electric motors shall be used for the purpose of pumping oil wells. Electric motors shall be used for compressors located at gas well sites.
E. 
In parallel to gas gathering pipeline, a flow back line shall be installed to handle water and gas flow back following well fracture treatment.
F. 
Vehicles, equipment, and machinery shall not be placed or located on a drill site or operation site or on any public street, alley, driveway, or other public right-of-way in such a way as to constitute a fire hazard or to unreasonably obstruct or interfere with fighting or controlling fires.
G. 
Well servicing operations shall be scheduled to occur between the hours of 7:00 a.m. – 6:00 p.m. only.
H. 
Air, gas, or pneumatic drilling shall not be permitted.
I. 
For vehicular safety reasons, the operator shall immediately notify the City of any substantial accumulations of dirt, dust, mud or other debris deposited on City thoroughfares by vehicles involved in the well drilling or servicing or pipeline installation process. If for safety reasons, the City elects to perform the removal, the cost of such removal shall be paid by the operator.
J. 
The drilling rig and associated drilling equipment shall be removed from the well site within thirty (30) days of the completion of the well or drilling activities.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.17 STORAGE TANKS AND SEPARATORS.

A. 
An operator is allowed to construct, use, and operate such storage equipment and separation equipment as shown on the application for the Oil and Gas Development Site Plan.
B. 
The use of centralized tank batteries is permitted as shown on the applicable Development Site Plan.
C. 
No meters, storage tanks, separation facilities, or other above ground facilities except wellheads and flow lines shall be placed in the one hundred (100) year floodplain.
D. 
The use of fiberglass storage tanks shall be prohibited.
E. 
Storage tanks shall be equipped with an automatic tank overflow prevention device.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.18 FLOW LINES AND GATHERING LINES.

A. 
Each operator shall place an identifying sign at each point where a flow line or gathering line crosses a public street or road.
B. 
If a gas field in the City is identified as a H2S gas field the operator shall be required to cease operations.
C. 
All flow lines and gathering lines within the corporate limits of the City (excluding City utility lines and franchise distribution systems) that are used to transport oil, gas, and/or water shall be limited to the maximum allowable operating pressure applicable to the pipes installed and shall be installed with at least the minimum cover or backfill specified by the American National Safety Institute Code, as amended.
D. 
Easements must be acquired for all flow lines, gathering lines and flow back lines. The location of easements shall be shown in a map approved by the Planning and Zoning Commission and the City Council prior to the installation of any pipelines.
E. 
Structures shall not be built over flow lines or gas gathering pipelines.
F. 
The location of all pipelines must be marked with warning signs in accordance with industry standards. Within the City of Azle, the distance between such signs shall not exceed five hundred feet (500'). In addition, during backfill of pipeline excavations, “Buried Pipeline” warning tape shall be buried one foot (1') above the pipeline to warn future excavators of the presence of buried pipeline.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.19 ADDITIONAL SAFETY AND ENVIRONMENTAL REQUIREMENTS.

A. 
The drilling and production of oil and gas and accessing the oil or gas well site shall be in compliance with all State and Federal environmental regulations and shall not occur within Environmentally Sensitive Areas designated by the Corps of Engineers.
B. 
Oil and Gas wells may have a target location or bottom-hole location that is under an Environmentally Sensitive Area when the oil or gas well is drilled directionally from a location outside the Environmentally Sensitive Area.
C. 
Each producing well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All wellheads shall contain an emergency shut-off valve to the well distribution line.
D. 
Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank.
E. 
Storage tank facilities shall be equipped with a secondary containment system including lining with an impervious material. The secondary containment system shall be of a sufficient height to contain one and one- half (1-1/2) times the contents of the largest tank in accordance with the Fire Code, and the impervious liner shall be covered with at least one foot (1') of sand. Drip pots shall be provided at pump out connections to contain the liquids from the storage tank.
F. 
Tank battery facilities shall be equipped with a remote foam line utilizing a two and one- half inch (2.5") National Standard Hose Thread female inlet connection in locations approved by the Fire Department. A lightning arrestor system shall be installed according to the most current edition of the National Electrical Code.
G. 
An approved Hazardous Materials Management Plan shall be on file with the Fire Department. The costs of cleanup operations due to hazards associated with a well site shall be the responsibility of the operator.
H. 
All wells shall be abandoned in accordance with the rules of the Railroad Commission; however, all well casings shall be cut and removed to a depth of at least ten feet (10') below the surface.
I. 
No structures shall be built over an abandoned well.
J. 
No salt-water disposal wells shall be located within the City of Azle.
K. 
An impervious lining of all pits shall be required. Lining shall be a minimum of 15 mils in thickness.
L. 
The use of explosive charges for seismic testing shall be prohibited.
M. 
The operator shall maintain Material Safety Data Sheets (MSDS) on site at all times.
N. 
The operator shall provide a spill plan and emergency plan to the City prior to commencing the drilling process.
O. 
All spills, including salt water spills, shall be reported to the City Manager or designee within 24 hours of the spill.
P. 
Fuel hoses shall be attended at all times during the on-site fueling process.
Q. 
All valves that are not connected to a hose or other equipment shall be properly plugged to prevent accidental spills.
R. 
Prior to commencing drilling operations, an inspection shall be performed by the City to ensure compliance with all applicable regulations.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.20 SUPPLEMENTAL DRILLING.

A. 
Supplemental drilling to deepen or directional drill an existing well shall be conducted in accordance with the conditions for the applicable Specific Use Permit. The operator shall provide the City with a copy of additional Railroad Commission permits that allow drilling to a deeper depth.
B. 
Supplemental drilling to deepen or directional drill an existing well shall be conducted in accordance with the approved Oil and Gas Well Permit for the well on file with the City.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.21 REWORKING OF WELL; NOTICE.

Any person who intends to rework a well using a drilling rig, to fracture stimulate a well after initial completion, or to conduct seismic exploration involving explosive charges shall give written notice to the City at least ten (10) days before the activities begin. The notice shall identify where the activities will be conducted and shall describe the activities in reasonable detail, including but not limited to the duration of the activities and the time of day they will be conducted. The notice must also provide the address and twenty-four (24) hour phone number of the person conducting the activities. The person conducting the activities will post a sign on the property giving the public notice of the activities, including the name, address, and twenty-four (24) hour phone number of the person conducting the activities.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.22 ABANDONMENT OF WELLS AND PIPELINES.

A. 
Abandonment of Wells:
Upon abandonment of a well or well site, within sixty (60) days, the well shall be plugged in accordance with the Texas Railroad Commission standards, the site shall be cleaned and cleared of all equipment, holes or excavations filled, and the land graded and returned to its original condition including replanting of vegetation to match the surrounding area. All well casings shall be cut and removed to a depth of at least 10 feet (10') below the surface.
B. 
Abandonment of Pipelines:
Upon abandonment of a pipeline, within sixty (60) days of abandonment, a pipeline must be purged and plugged in accordance with the rules and regulations of the State of Texas in effect at that time.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.23 REMEDIES OF THE CITY.

A. 
If an operator (or its officers, employees, agents, contractors, subcontractors or representatives) fails to comply with any requirement of an Oil and Gas Well Permit (including any requirement incorporated by reference as part of the permit), the City shall give written notice to the operator specifying the nature of the alleged failure and giving the operator a reasonable time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. In no event, however, shall the cure period be less than thirty (30) days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the operator’s failure to provide periodic reports.
B. 
If the operator does not cure the alleged failure within the time specified by the City, the City may notify the Railroad Commission and request that the Railroad Commission take appropriate action (with a copy of such notice provided to the operator), and the City may pursue any other remedy available under this Ordinance.
C. 
If the operator does not cure the alleged failure within the time specified by the City, the City Manager may:
1. 
Suspend the Oil and Gas Well Permit until the alleged failure is cured; or
2. 
Revoke the Oil and Gas Well Permit if the operator fails to initiate and diligently pursue a cure.
D. 
The operator may appeal a decision to suspend or revoke the Oil and Gas Well Permit, to the City Council.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.24 ENFORCEMENT, RIGHT OF ENTRY.

City Staff is authorized and directed to enforce this Ordinance and the provisions of any Oil and Gas Well Permit. Whenever necessary to enforce any provision of this Ordinance or a Gas Well Permit, or whenever there is reasonable cause to believe there has been a violation of this Ordinance or an Oil and Gas Well Permit, City Staff may enter upon any property covered by this Ordinance or an Oil and Gas Well Permit at any reasonable time to inspect or perform any duty imposed by this Ordinance. If entry is refused, the City shall have recourse to every remedy provided by law and equity to gain entry.
(Ordinance 2013-09, ex. A, adopted 5/7/13)

§ 36.25 PENALTY.

A. 
It shall be unlawful and an offense for any person to do the following:
1. 
Engage in any activity not permitted by the terms of an Oil and Gas Well Permit issued under this Ordinance;
2. 
Fail to comply with any conditions set forth in an Oil and Gas Well Permit issued under this Ordinance; or
3. 
Violate any provision or requirement set forth under this Ordinance.
B. 
Any violation of this Ordinance shall be punished by a fine of not more than Two Thousand Dollars ($2,000.00) per day, subject to applicable State law. Each day a violation occurs constitutes a separate violation.
(Ordinance 2013-09, ex. A, adopted 5/7/13)