(Ord. 08-01-1, 1-7-2008)

   A.   Permit Required: It shall be unlawful to drill, maintain or operate an oil or gas well within the corporate city limits of the city of Eufaula, except by a municipal drilling permit to do so, obtained as hereinafter provided.

   B.   Applicability Of Permit: Each such permit shall cover and provide for the drilling, maintaining and operating of one oil or gas well only, and not more than one oil or gas well shall be drilled in any one block; provided, however, that, at the discretion of the mayor and city of Eufaula council, a permit as herein provided for may be issued for the drilling of a second well in any one or more blocks, if the first well is producing in substantially paying quantities. Such second well may then be drilled to a new horizon and/or source of supply, where such new horizon and/or source of supply is substantially different from that to which the first well was drilled and in which the first well is operating. (Ord. 08-01-1, 1-7-2008)

   A.   Fee Imposed: There is hereby levied an annual police, safety and sanitary inspection fee of five hundred dollars ($500.00) for the first year, and one hundred dollars ($100.00) for each succeeding year thereafter, for each oil or gas well drilled, operated or maintained in the city of Eufaula.

   B.   Initial Fee: The initial fee paid with, and accompanying, the application in the first instance, shall also include granting the permit.

   C.   Successive Annual Fees: Each successive annual fee paid, after the first, shall also cover and include permission to continue such drilling, operation and maintenance operations. (Ord. 08-01-1, 1-7-2008)

Permits for drilling, maintaining and operating oil and gas wells in the city of Eufaula shall be granted only to responsible persons who have met, to the satisfaction of the mayor, all of the following requirements:

   A.   Payment Of Fee: Payment of seven thousand dollars ($7,000.00) to the city of Eufaula clerk for: 1) the issuance of such permit; and 2) the annual fee for the first year of police, safety and sanitary inspection.

   B.   Agreement Required: Depositing with the city of Eufaula clerk, to become and remain a part of the permanent records of the city of Eufaula, a valid and legal agreement, in writing, fully executed and acknowledged by the owner of the lot where the oil or gas well is to be drilled, agreeing that all rents and royalties accruing from oil, gas or casinghead gas produced from such well shall be prorated among all the owners of the oil, gas and other mineral rights in and under said block, in the proportion that each owner's interest in the block bears to the whole of the block.

   C.   Written Consent Required: Depositing with the city of Eufaula clerk, to become and remain a part of the permanent records of the city of Eufaula, a valid and legal consent, in writing, fully executed and acknowledged by the owner or owners of not less than fifty one percent (51%) of the oil, gas and other mineral rights of the block in which the oil well is to be drilled, consenting to the drilling of such oil well upon the lot or lots indicated in such application.

   D.   Bond Required: Depositing with the city of Eufaula clerk, to become and remain a part of the permanent records of the city of Eufaula, good and sufficient bond(s) covering each separate oil well for which permits are requested, executed by one or more responsible bonding, insurance or indemnity companies authorized to do business within the state of Oklahoma. Such bond(s) shall run in the name of the city of Eufaula, and be conditioned that the applicant will pay and discharge any and all liability imposed by law for damages, either for injury to the person or damages to real or personal property, including death, received by any person, firm or corporation, resulting from the drilling, operation, or maintenance under such permit of any oil well, structure, equipment, machinery, tanks, pipeline or appurtenances thereto, and that such applicant will also abide by, and comply with, all the provisions of this chapter and other ordinances of the city of Eufaula.

      1.   Such bond or bonds shall further provide that insolvency or bankruptcy of the insured shall not release the insurance company from any payment due under such bond or bonds. If by reason of such insolvency or bankruptcy, an execution on the judgment against the insured is returned unsatisfied, the judgment creditor shall have the right of action against the insurance company to recover the amount of said judgment to the same extent that the insured would have had to recover against the company, had the insured party paid the judgment.

      2.   Such bond or bonds shall further provide against the cancellation, until thirty (30) days' notice in writing of such intended cancellation, shall have been given the city of Eufaula, by the delivery of written notice to the city of Eufaula clerk. Upon such notice being given, the person to whom such permit has been issued shall be immediately notified thereof, and if such person shall fail, within thirty (30) days after having received notice of such intended cancellation, to provide other sufficient bond or bonds in compliance with the terms and provisions of this chapter, then the permit issued to such person shall be automatically suspended for all purposes, and all operations being carried on under such permit shall cease until such other sufficient bond or bonds have been posted with the city of Eufaula clerk and approved, by motion of the city of Eufaula council, at a regular or special meeting.

      3.   Such bond or bonds, among other things, shall cover and indemnify such city of Eufaula and the inhabitants thereof against loss or damage to private or public water supply.

      4.   The total liability under such bond or bonds, in the case of each oil or gas well, shall not be less than twenty five thousand dollars ($25,000.00) and shall be made for a period of not less than one year. No oil or gas well shall be drilled, maintained or operated at any time for any period of time, without currently valid and legal bond or bonds in such amount being on deposit with the city of Eufaula clerk. Provided, however, that, at the time of the renewal of such bond or bonds for any one well, if such bond in the amount of thirty five thousand dollars ($35,000.00) has been in force and effect for one year and all drilling operations have been completed, the liability on such bond or bonds in the case of each well completed, may be reduced to ten thousand dollars ($10,000.00). (Ord. 08-01-1, 1-7-2008)

   A.   Application To Clerk; Issuance By Council: Applications for permits to drill, operate and maintain oil or gas wells in the city of Eufaula shall be filed with the city of Eufaula clerk, and permits shall be issued by said city of Eufaula clerk upon authorization of the city of Eufaula council, by motion.

   B.   Permit Allows Use Of Explosive: Such permit shall, without so stating, also permit the use of such explosives and amounts thereof as are ordinarily used in such operations, but shall not permit the storage of any amount of explosives, at any time, within the city of Eufaula.

   C.   Contents Of Application: Applications shall be in writing, signed by the applicant or some person in his or its behalf duly authorized, and shall state the block and exact lot and location thereon where the proposed oil well will be drilled. There shall be attached thereto a list of the persons owning or having an interest in any of the lots in the block, together with the last known post office address of each of them. (Ord. 08-01-1, 1-7-2008)

Nothing in this chapter shall prevent, or be construed to prevent, the pooling of lots or blocks of the city of Eufaula with land adjacent to and outside the corporate limits of the city of Eufaula, for gas or oil wells drilled, maintained or operated on any such lots or blocks, so pooled without compliance with this chapter. (Ord. 08-01-1, 1-7-2008)

Notwithstanding any provision of this chapter, the city of Eufaula council may, at its discretion, refuse to grant to any person, a permit to drill, maintain or operate an oil or gas well within the corporate limits of the city of Eufaula; and may refuse to grant a renewal of any prior permit granted; provided, however, that the applicant for such permit or renewal thereof has not obtained a vested property right in reliance upon his right to obtain such permit or renewal, prior to the effective date of the original ordinance. (Ord. 08-01-1, 1-7-2008)

Oil, gas or disposal wells shall be located only in those zoning districts which permit such uses, as outlined in the city of Eufaula's adopted zoning ordinance. (Ord. 08-01-1, 1-7-2008)

In the drilling, operation and maintenance of any oil or gas well in the city of Eufaula, operations shall be subject to the following regulations, and violations thereof are hereby declared unlawful and an offense:

   A.   Drainage Onto Street Or Into Ditch Or Sewer: No oil, liquid with oil content, gasoline, other oil product, surface mud, rotary mud, sand or salt water shall be disposed of by draining or diverting the same into or upon any public highway, street, alley, drainage ditch, storm sewer, sanitary sewer, gutter or paving; nor shall any of such substances be permitted to escape from the property owned, leased or controlled by the person carrying on such operations, by seepage or overflow.

   B.   Internal Combustion Engines: No steam, gasoline, natural gas, diesel or other internal combustion engine, shall be operated within the corporate limits of the city of Eufaula without being muffled so as not to create a nuisance.

   C.   Slush Pits And Excavations: All slush pits and other excavations shall be filled and leveled off upon the completion of any oil or gas well, or upon the abandonment of any of the operations covered in this chapter.

   D.   Storage Tanks Protected: All storage tanks, or other tanks intended to contain inflammable substances, shall be protected by earthen embankments thrown up about the same in such manner as to adequately contain all contents or intended contents of such tanks. No such tanks shall be erected or installed nearer than thirty feet (30') to any dwelling house, established business structure, street or highway.

   E.   Operation Near School Or Church: No oil or gas well shall be drilled, operated or maintained, nor shall any of the operations in connection therewith be carried on, nearer than one hundred feet (100') by the shortest distance, to any previously established church or school building.

   F.   Safety Requirements: Approved equipment, devices and methods for the safety of life and property, such as are commonly known in the oil drilling and producing business, must be used in the city of Eufaula in the carrying on of all the operations covered by this chapter, and the failure to use any such equipment, devices or methods in any substantially important operation shall be grounds for immediately stopping further work until such failure has been corrected.

   G.   Litter, Waste Substance Accumulations: The premises upon which any oil or gas well is drilled, operated or maintained shall be kept free from accumulations of rubbish, litter, unused materials or equipment, excessive rotary mud and slush pits, waste oil and oil substances, or other waste oil products, so far as such premises may be reasonably kept free of the same in carrying on the operations covered by this chapter.

   H.   Restoration Of Public Ways: Where, in the installation, erection or construction of work being done by virtue of permits issued under this chapter, sidewalks or the surface of streets, alleys, other right of way or any other public property are disturbed, damaged or destroyed, the same must be replaced or restored to its original condition, or better, in as short a period of time thereafter as may be reasonably done.

   I.   Operation Of Derricks: All derricks must be erected and operated with the rules, regulations and specifications promulgated by the corporation commission of the state of Oklahoma and the various departments of such commission. Failure to abide by such rules, regulations and specifications in the case of any substantially important operation shall, in addition to the other penalties provided in this chapter, automatically operate as a forfeiture and cancellation of all permits obtained in the case of the particular well where such violations occur, and automatically terminate the right to continue such work or any part thereof, excepting such as may be necessary for safety or to prevent serious loss. Such operation shall not be continued until a new permit has been obtained and paid for on the same basis as a new and original permit.

   J.   Information Provided Upon Request: Full and accurate drilling floor information, and any and all other full and accurate information pertaining to operations under permits procured under this chapter, shall be furnished the chief of police, the city of Eufaula council or any of its duly authorized agents at any time. Such information shall be supplied upon demand and without unnecessary delay.

   K.   Police Authority: Full police authority for the purpose of enforcing the provisions of this chapter are hereby given to the chief of police or to any duly authorized agent of the city of Eufaula council.

   L.   Pipeline Installation, Council Consent: No pipelines of any kind, no power transmission system of any kind, no communication system of any kind and no other transmission systems of any kind shall be erected or installed in, along, across, under or over any street, alley, highway or railroad right of way in the city of Eufaula, except by special consent, by motion, of the city of Eufaula council.

   M.   Fence Required At Completion Of Drilling: At the conclusion of drilling operations, a fence shall be erected around both the well and the machinery used in connection with the operation of the well. (Ord. 08-01-1, 1-7-2008)

   A.   Penalty Imposed: Any person, firm or corporation who violates any of the provisions of this chapter shall be guilty of an offense and, upon conviction thereof, shall be fined in any sum not to exceed the limits established in this code. Each day such violation is committed or continues to exist shall constitute a separate offense and be punishable as such.

   B.   Injunctive Relief: In addition, violation of any of the provisions hereof declared to be a public nuisance shall be a basis for injunction at the suit of the city of Eufaula, or at the suit of any person, firm or corporation adversely affected thereby. (Ord. 08-01-1, 1-7-2008)