Granbury City Zoning Code
ARTICLE 14
Drilling Regulations Oil & Gas Production
§ 14.1 Purpose.
The exploration, development, and production of 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 section to establish reasonable and uniform limitations, safeguards and regulations for operations related to the exploring, drilling, developing, producing, transporting and storing of Oil, Gas and other substances produced in association with Oil and 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 16-65 adopted 12/6/16)
§ 14.2 Specific Use Permit Required.
The Drilling and production of Gas within the City shall only be permitted by Specific Use Permit in accordance with Section 11.1 of this Ordinance. A site plan is required with the
Specific Use Permit application and must include all information required by Section 11.11 and the following additional information:
1.
The total number of Wells to be drilled.
2.
The location of the Drill Site and a layout of the site showing all related facilities, including, but not limited to, Drilling rig, pipe rack, water and sanitary sewer facilities, electrical supply and camper/office trailers. The operator must provide the City with geographic coordinates of the surface Well Bore, using the North American Datum 1983 (NAD 83), Texas State Plane - North Central Zone (4202), in United States feet as well as the coordinates for all gather and flow lines.
3.
The location of the Operation Site and a layout of the site showing all related facilities, including but not limited to Wellheads, separators, dehydrators, tank batteries, compressors, and metering stations.
4.
Size, location and purpose of any shared facilities, including, but not limited to, centralized tank batteries for multiple Wells or Drill Sites.
5.
The design, location, and arrangement of all access roads.
6.
A route map of the public streets to be used by truck traffic to and from the Drill Site.
7.
The location of any floodplain, drainage or flowage easement.
8.
An outdoor lighting plan in accordance with Article 10, hereof.
9.
A tree survey if mandated by the City’s Landscape Plan Requirements set forth in Section 8.3, hereof.
10.
A Pipeline Easement Map indicating the location of the nearest Gathering Station and the alignment of the pipeline(s) connecting the Operation Site to the Gathering Station.
11.
A video documenting existing conditions of the City streets shown on the route map that will be used by truck traffic to the site, plus a video of the property being used for the Drill Site.
12.
A detailed Emergency Response Plan addressing well blow-outs, environmental spillage and other potential catastrophic occurrences. The Emergency Response Plan will also show firefighting apparatus and supplies on-site and will be filed with the City’s Fire Inspector and County Volunteer Fire Department.
(Ordinance 16-65 adopted 12/6/16)
§ 14.3 Road Repair Agreement.
An executed Road Repair Agreement shall be submitted in conjunction with the application for Specific Use Permit. The Agreement must be signed by the Operator and filed with the Public Works Department. The City Manager shall have the authority to execute the Road Repair Agreement on behalf of the City.
(Ordinance 16-65 adopted 12/6/16)
§ 14.4 Gas Well Permit.
1.
An application for a Gas Well Permit 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 application for a Gas Well Permit unless and until a Specific Use Permit is approved by the City Council.
2.
A single Gas Well Permit may be obtained for multiple Wells on contiguous tracts if approved by the City. In addition, each gas well permit application may include wells on contiguous tracts located both within the territorial limits of the City and its ETJ; provided, however, with respect to wells located in the ETJ, demonstrated compliance with Ordinance No. 06-127, as it may be amended, as [is] additionally required.
3.
No person shall engage in the Drilling and production of Gas Wells within the City without first obtaining a Gas Well Permit.
4.
When a Gas Well Permit has been issued covering a Well, the permit shall constitute authority for the following, so long as conducted in strict accordance with this section: 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 section associated with Drilling or production by the Operator or its employees, agents, contractors, subcontractors or representatives. A 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 or his employees, agents, contractors, subcontractors or representatives, so long as constructed and used in strict accordance with this section.
5.
An original Gas Well Permit shall not, however, constitute authority for the re-entering and Drilling of an abandoned Well. Re-entry and Drilling of an abandoned Well shall require a new Gas Well Permit.
6.
A Gas Well Permit may be issued for any lot, tract, described property, or other parcel of property, and public utilities may be extended or connected to serve the Drill Site, whether or not the lot, tract, or other parcel of property is part of a recorded plat. The activities as outlined in the Gas Well Permit application shall be contained within the areas described and issued under such permit.
7.
In addition to obtaining a Gas Well Permit and before establishing a Drill Site and access road, the Operator must obtain the necessary permits from the City Building Inspections and the Public Works/Engineering Department. The Public Works/Engineering Department will require a stormwater pollution prevention plan and a grading/drainage plan unless the City Engineer determines that they are not necessary.
8.
Issuance of a gas well permit requires, at a minimum, review and approval of the City Manager, City Engineer/Public Works Director, Fire Inspector and Community Development Director, or their designated representatives.
(Ordinance 16-65 adopted 12/6/16)
§ 14.5 Administration of Gas Well Permit.
1.
Applications for Gas Well Permits shall be submitted in writing on forms provided by the City and signed by the Operator.
2.
Applications for Gas Well Permits shall be filed with the Community Development Department. All applications shall be accompanied by a gas well permit administration fee and a periodic inspection fee established pursuant to the City of Granbury Fee Schedule, as amended. The periodic inspection fee shall be provided to the City of Granbury on or before November 1 of each year. Failure to provide the periodic inspection fee by the date provided above shall be deemed a violation of this Article and the City shall enforce remedies as defined in Section 14.18 of this Ordinance. The administration fee portion is not refundable regardless of the outcome of the application. Incomplete applications shall be returned to the Applicant. The City shall return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the Operator.
3.
No Gas Well Permit shall be issued if the proposed activities are not in conformance with the approved Specific Use Permit and associated site plan, provisions of this section, Building Code, Fire Code and all other applicable City ordinances.
4.
A decision to deny an application for a Gas Well Permit shall be provided to the Operator in writing, including the reason for the decision. The Operator may appeal any such denial to the City Council within thirty days of receipt of such notification.
5.
If an application for a Gas Well Permit is denied, nothing herein contained shall prevent a new application from being submitted to the City for the same Well. A new application fee shall accompany each new application.
6.
Gas Well Permits shall automatically expire after a (1) one year period of no wells included in the Gas Well Permit being drilled. If the first well included in the Gas Well Permit is not drilled within (1) one year of issuance, or if an additional well approved under the same Gas Well Permit is not drilled within (1) one year of the previous well being drilled, the Gas Well Permit shall automatically become null and void for any undrilled well included in the Gas Well Permit and new applications and fees shall be required for any undrilled wells.
(Ordinance 20-27 adopted 8/4/20)
§ 14.6 Insurance and Indemnification.
The Operator shall provide or cause to be provided the insurance described below for each Well for which a Gas Well Permit is issued, such insurance to continue until the Well is abandoned and accepted by the City as having been restored. The Operator may provide the required coverage on a “blanket” basis for multiple Wells if the site of each Well is sufficiently identified and the limits of coverage comply with those set forth in paragraph 2.d of this Section 14.6.A. The Operator must provide to the City sufficient documentation that the Operator’s insurance complies with the requirements of this section before the issuance of the Gas Well Permit.
1.
General Requirements: Indemnification and Express Negligence Provisions
a.
Each Gas Well Permit issued by the City shall include the following language and regardless of whether such language is actually included in the Gas Well Permit it shall be deemed to be included therein:
OPERATOR DOES HEREBY EXPRESSLY AND IRREVOCABLY RELEASE AND DISCHARGE ALL CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, AND EXECUTIONS OF ANY AND ALL KINDS WHICH IT OR ITS SUCCESSORS OR ASSIGNS EVER HAD, OR NOW HAS OR MAY HAVE, OR CLAIMS TO HAVE, AGAINST THE CITY OF GRANBURY, TEXAS, ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, EMPLOYEES, SPONSORS, OR VOLUNTEERS, THE GAS WELL INSPECTOR, AND EACH OF THEIR RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS, AND ASSIGNS (THE CITY OF GRANBURY, TEXAS AND ALL OTHER FOREGOING PARTIES BEING HEREIN REFERRED TO COLLECTIVELY AS THE “INDEMNIFIED PARTIES”) CREATED BY OR ARISING OUT OF PERSONAL INJURIES, KNOWN OR UNKNOWN, OR 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 A GAS WELL PERMIT. OPERATOR AGREES TO FULLY DEFEND, PROTECT, INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES 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 BY THE INDEMNIFIED PARTIES CAUSED BY OR ARISING OUT OF, INCIDENTAL TO, OR OTHERWISE IN CONNECTION WITH ANY WORK PERFORMED BY OPERATOR UNDER A GAS WELL PERMIT, INCLUDING, WITHOUT LIMITATION, PERSONAL INJURIES AND DEATH IN CONNECTION THEREWITH WHICH MAY BE MADE OR ASSERTED BY OPERATOR, HIS AGENTS, ASSIGNS, OR ANY THIRD PARTIES. OPERATOR AGREES TO FULLY DEFEND, PROTECT, INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY CLAIMS, LIABILITIES, OR DAMAGES SUFFERED AS A RESULT OF CLAIMS, DEMANDS, COSTS, OR JUDGMENTS AGAINST THE INDEMNIFIED PARTIES, CREATED BY OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE CITY OF GRANBURY OR ANY OF THE OTHER INDEMNIFIED PARTIES, 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, LIABILITIES, AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, INCLUDING THE SOLE NEGLIGENCE OF ANY INDEMNIFIED PARTY, OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE 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 GRANBURY, TEXAS AND THE OTHER INDEMNIFIED PARTIES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. THE FOREGOING IS NOT INTENDED TO REQUIRE THE OPERATOR TO INDEMNIFY THE INDEMNIFIED PARTIES FROM THE INDEMNIFIED PARTIES’ GROSS NEGLIGENCE OR INTENTIONAL HARM, IRRESPECTIVE OF WHETHER THAT GROSS NEGLIGENCE OR INTENTIONAL HARM IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE.
b.
All policies shall be endorsed to read “This policy will not be cancelled or non-renewed without thirty (30) days’ advanced written notice to the owner and the City of Granbury, Texas, except when this policy is being cancelled for nonpayment of premium, in which case ten (10) days’ advance written notice is required.”
c.
Liability policies shall be written by: (i) 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 (ii) non-admitted carriers that have a financial rating comparable to carriers licensed to do business in Texas and which are approved by the City.
d.
Liability policies shall name as “Additional Insured” the City and other Indemnified Parties. Waivers of subrogation shall be provided in favor of all Indemnified Parties.
e.
Copies of insurance policies must be presented to the City evidencing all coverages and endorsements required by this section before the issuance of the Gas Well Permit, and the acceptance of a policy without the required limits and/or coverages shall not be deemed a waiver of these requirements. The City may, in its sole discretion, accept a certificate of insurance in lieu of a copy of the policy pending the Operator’s receipt of the policy. After the issuance of the Gas Well Permit, the City may require the Operator to provide a copy of the most current insurance policies for review at any time. An administration fee of $150 will be charged to cover the cost of such review.
f.
Claims-made policies shall not be accepted except for excess policies and environmental Impairment (or Seepage and Pollution) policies.
2.
Required Insurance Coverage:
a.
Commercial or Comprehensive General Liability Insurance:
(1)
Coverage should be a minimum Combined Single Limit of One Million Dollars ($1,000,000) per occurrence for Bodily Injury and Property Damage, with a Two Million Dollar ($2,000,000) annual general aggregate. This coverage must include premises, operations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, underground reservoir (or resources) damage, broad form property damage, independent contractors protective liability and personal injury.
(2)
Underground Reservoir (or Resources) Damage shall be on an occurrence basis, shall not be limited to sudden and accidental occurrences, shall not have a discovery or reporting limitation and shall not exclude damage to water tables, formation or strata.
(3)
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. If Environmental Impairment (or Seepage and Pollution) Coverage is written on a “claims made” basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, Gases, waste material, or other irritants, contaminants or pollutants. Coverage shall be a minimum combined single limit of One Million Dollars ($1,000,000), per occurrence. A discovery period for such peril shall not be less than 30 days after the occurrence.
b.
Automobile Liability Insurance:
Minimum Combined Single Limit of One Million Dollars ($1,000,000) per occurrence for Bodily Injury and Property Damage. Such coverage shall include owned, non-owned, and hired vehicles.
c.
Worker’s Compensation Insurance:
In addition to the minimum statutory requirements, coverage shall include Employer’s Liability limits of at least One Million Dollars ($1,000,000) for each accident, One Million Dollars ($1,000,000) for each employee, and a One Million Dollars ($1,000,000) policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against any of the Indemnified Parties for any work performed for the City by the Operator.
d.
Excess (or Umbrella) Liability Insurance:
Minimum limit of Ten Million Dollars ($10,000,000) coverage for a single well or Twenty-Five Million Dollars ($25,000,000.00) coverage for multiple wells, in excess of the preceding liability insurance policies.
e.
Control of Well Insurance:
(1)
Minimum limit of Ten Million Dollars ($10,000,000) per occurrence, with a maximum deductible of Two Hundred and Fifty Thousand ($250,000) per occurrence.
(2)
Policy shall cover the cost of controlling a Well that is out of control, re-drilling or restoration expenses, and seepage and pollution damage. Damage to property in the Operator’s care, custody, and control with a sub-limit of Five Hundred Thousand Dollars ($500,000) may be added.
(3)
The Control of Well insurance policy shall be endorsed to read “In the event of a well out of control, no other payments may be made until all pollution claims by the City of Granbury and its citizens have been settled.”
(Ordinance 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.7 Security.
A security instrument that covers each Well must be delivered to the City before the issuance of the 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.
1.
As to each Well, the instrument shall secure the obligations of the Operator to:
2.
The security instrument may be in the form of an irrevocable letter of credit issued by a bank located in the City of Granbury, Texas and approved by the City or a payment bond issued by a surety approved by the City. The instrument shall run to the City for the benefit of the City, shall be filed with the City and become effective on or before the date the Gas Well Permit is issued, and shall remain in force and effect for a period not less than six (6) months after the expiration or termination of the Gas Well Permit or after the Well is plugged and abandoned and the site restored.
3.
A certificate of deposit may be substituted for the letter of credit or payment bond. The certificate shall be issued by a bank located in the City of Granbury, Texas and 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 City with evidence of delivery provided to the City and an appropriate control agreement signed by the issuing bank sufficient to perfect the City’s interest in the deposit. Interest on the certificate of deposit shall be payable to the Operator. The Certificate of Deposit shall be filed prior to the Gas Well Permit being issued by the City.
4.
The minimum amount of the security shall be One Hundred Thousand Dollars ($100,000) for any active single Well and Two Hundred Thousand Dollars ($200,000) for active multiple Wells on a “blanket” basis under the same Gas Well Permit. The security source shall be replenished, if drawn upon by the City, to maintain the minimum security amount set forth herein.
5.
The form and substance of the documents evidencing the security instruments described above must be acceptable to the City Manager or his designated representative, within his sole discretion. Notwithstanding anything contained herein to the contrary, the security shall remain effective until the Well has been abandoned and the property and public infrastructure are in a condition acceptable to the City after inspection.
(Ordinance 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.8 Periodic Reports.
1.
The Operator shall notify the Community Development Director of any change to the following information within one (1) business day after the change occurs.
a.
The name, address, or phone number of the Operator;
b.
The name, address, or twenty-four (24) hour phone number of the person(s) with supervisory authority over Drilling or operations activities;
c.
The name, address, or 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; or
d.
The Operator’s Emergency Action Response Plan including “drive-to maps” from public rights-of-way to each area covered by the applicable Specific Use Permit and associated site plan.
2.
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.
3.
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 Gas Well Permit that have not been previously reported to the City.
(Ordinance 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.9 Amended Gas Well Permits.
1.
An operator must submit an application to the Community Development to amend the Gas Well Permit, to commence Drilling at a location that is shown on (or incorporated by reference as part of) the existing permit, or to otherwise amend the existing permit.
2.
Applications for Amended Gas Well Permits shall be in writing on forms provided by the City and signed by the Operator, and shall include the following:
a.
A gas well permit administration fee. The administration fee is not refundable regardless of the outcome of the application;
b.
A description of the proposed amendments;
c.
Any changes to the information submitted with the application for the current Gas Well Permit (if such information has not previously been provided to the City);
d.
Such additional information as is reasonably required by the Gas Well Inspector or City Staff to demonstrate compliance with the applicable Specific Use Permit and associated site plan and the provisions of this section; and
e.
Such additional information as is reasonably required by the Gas Well Inspector or City Staff to prevent imminent destruction of property or injury to persons.
3.
If, in the judgment of the City or the Gas Well Inspector, the activities proposed by the amendment require an inspection, the Operator shall pay the reinspection fee established pursuant to the City of Granbury Fee Schedule, as amended.
4.
Incomplete applications shall be returned to the Applicant. The City shall return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the Operator.
5.
If the activities proposed by the amendment are materially different and, in the judgment of the City or the Gas Well Inspector, 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 current permit, the amendment must be processed as a new Gas Well Permit application under the provisions of Section 14.4 of this Article.
6.
A decision to deny an amendment to a Gas Well Permit shall be provided to the Operator in writing, including an explanation of the basis for the decision. The Operator may appeal any such denial to the City Council.
7.
No Amended Gas Well Permit shall be issued if the proposed activities are not in conformance with the approved Specific Use Permit and associated site plan, provisions of this section, Building Code, Fire Code and all other applicable City ordinances. If in the judgment of the City, the amendment is inconsistent with the original Specific Use Permit, the applicant may apply for an amendment to the Specific Use Permit in order to accommodate the changes proposed by the applicant in the request to amend the Gas Well Permit.
(Ordinance 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.10 Transfer of Gas Well Permits.
1.
A Gas Well Permit may be transferred upon written request by the Operator with the consent of the City Manager or his designated representative:
a.
If the transferee agrees to be bound by the terms and conditions of the current Gas Well Permit and Road Repair Agreement;
b.
If all information previously provided to the City as part of the current Gas Well Permit application is updated to reflect any changes; and
c.
If the transferee provides the insurance and security required by this section.
2.
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 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.11 On-Site Operation.
1.
No Drill Site shall be permitted within:
a)
three hundred feet (300) of the boundary line of any preliminary or final platted, residential property, and;
b)
six hundred (600) feet from any residential structure, public property, hospital, institution, school building or outdoor activity area, day care center, or commercial building.
Notwithstanding the foregoing, a Drill Site may be exempted from the distances set forth in subparagraph a. if persons within three hundred feet (300') owning property in the adjacent preliminary or final platted residential subdivision agree in writing. In addition, the distances in subparagraph b. may be reduced to not less than three hundred feet (300') if property owners within the six hundred foot (600') radius agree in writing. |
2.
(Reserved)
3.
Erosion control shall comply with the stormwater pollution prevention plan approved by the Public Works/Engineering Department.
4.
A Drill Site or Operation Site may only be allowed in a floodplain with the approval of the City or, where applicable, the U.S. Army Corps of Engineers. A Drill Site shall not have a single means of access if such access is through a designated floodplain.
5.
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 permanent sign shall not be larger than 8 square feet or smaller than 4 square feet. The sign shall also include the phone number for emergency services (9-1-1), the name and phone number for the Operator, and the Well designation required by the Railroad Commission in two-inch (2") lettering. The information on the sign shall be in English and Spanish. The sign shall be reflective. The same sign shall be posted at the entry point off of the public road leading into the well site but will not be required to include the “DANGER NO SMOKING ALLOWED” language.
6.
All facilities used for parking, loading, unloading, driveways and all other vehicular access shall be constructed of concrete, asphalt or an alternative equivalent strength surface which complies with all Fire Code standards, provided that the drive approach from the street be constructed of concrete. The surface for such facilities and drive approach must always be maintained in good condition and repair.
7.
A temporary six-foot chain-link [fence] with a minimum height of six (6) feet shall be required around a Drill Site during the drilling process, and any gate to the site shall be locked when no operations personnel are present.
8.
The equipment or facilities on an Operation Site must be enclosed, individually or collectively, by eight (8) foot high, opaque screening. If a screening wall or fence is utilized to achieve required screening, 2' x 2' openings in the screening shall be provided at each corner of every plane or side of the screening to allow for visual inspections by City personnel. City Staff may require alternative locations for openings within the required screening wall or fence to provide adequate visibility for inspection. Low-profile equipment or facilities must be used on the Operation Site and must not exceed the height of the screening. Any gates in the screening enclosure shall remain locked at all times when no operations personnel are present and shall be constructed of a metal and be completely opaque. The Operator must provide the City Fire Inspector and County Volunteer Fire Department with a knox box with a key to access the Operation Site in case of an emergency. As an alternative, the Operator may secure the Operation site using a traditional lock, provided that the City Fire Inspector and County Volunteer Fire Department are each provided a key or combination to gain access to the Operation Site. Screening, meeting the requirements of this section, must remain in place until the well is abandoned and the site is restored and accepted by the City in accordance with Section 14.16.A [Section 14.17], hereof, and shall be constructed of the following materials:
a.
Brick, stone or split-face concrete masonry unit;
b.
Pre-cast concrete wall or pour-in-place concrete wall with a similar appearance as brick, stone or split-face concrete masonry unit;
c.
Wooden privacy fence with stone or brick columns. The columns shall not be spaced further than 25' on-center and shall be constructed to have a minimum diameter of 2 feet. All required wooden fencing shall be treated to protect against weathering with the decorative (smooth) side facing outward toward the adjoining property.
d.
Earthen berm, appropriately landscaped, or;
e.
A combination of landscaped earthen berm and one of the construction materials listed above.
9.
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 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 maintained at all times.
10.
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, refuse, wastewater, brine or hazardous substance from any Gas operation or the contents of any container used in connection with any 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.
11.
Electric lines to the Drill Site or Operation Site shall be located underground.
12.
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 the maintenance and upkeep of such equipment shall be the responsibility of the Operator.
13.
No Operator shall excavate or construct any lines for the conveyance of fuel, water, oil, Gas or petroleum liquids on, under, or through the streets, alleys or other properties owned by the City without an easement or right-of-way permit from the City, at a price to be agreed upon, and then only in strict compliance with this section, other City ordinances, and the specifications established by the Department of Public Works.
14.
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.
15.
No Gas Well Permit shall be issued for any Well to be drilled within any of the public street or alley rights-of-way of the City and/or future streets shown on the Master Thoroughfare Plan. 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’s Public Works Department, and then only temporarily.
16.
No commercial vehicles not in use shall be permitted at the Operation Site, as the term is defined in 43 TAC section 18.2.
(Ordinance 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.12 Practice, Safety and Environmental Standards.
§ 14.12.A
Operations & Equipment Standards
1.
Adequate nuisance prevention measures shall be taken to prevent or control offensive odor, fumes, dust, noise and vibration.
2.
No person shall permit any lights located on any Drill Site or Operation Site to be directed in such a manner so that they shine directly on public streets, adjacent property or property in the general vicinity of the Drill Site or Operation Site. Site lighting shall be shielded and directed downward so as to avoid glare on public streets and buildings in accordance with an approved outdoor lighting plan and the Lighting requirements contained herein.
3.
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.
4.
Noise levels must not exceed eighty (80) decibels at any point beyond three hundred (300) feet of the Drill Site. All internal combustion engines used on a Drill Site must be equipped with mufflers that will reduce noise to no more than the maximum decibel level set forth herein. If noise levels at a distance of three hundred (300) feet from a Drill Site exceed eighty (80) decibels, a sound reduction enclosure shall be required around a Drilling rig and any internal combustion engines. The noise level during fracturing operations must not exceed the maximum decibel levels set forth herein.
5.
Noise levels must not exceed sixty (60) decibels beyond the boundaries of an Operation Site as defined in the Specific Use Permit and associated site plan. All internal combustion engines used on an Operation Site must be equipped with mufflers that will reduce noise to no more than the maximum decibel level set forth herein.
6.
An Operator is allowed to construct, use, and operate such storage equipment and separation equipment as shown on the applicable Specific Use Permit and associated site plan and Gas Well Permit. The use of centralized tank batteries is permitted only as shown on the applicable Specific Use Permit and associated site plan and Gas Well Permit.
7.
In parallel to Gas gathering pipeline, a flowback line may be installed to handle water and Gas flowback following Well fracture treatment.
8.
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.
9.
Except in the case of an emergency, Well servicing operations and any deliveries to the site shall be scheduled to occur between the hours of 7:00 a.m. to 7:00 p.m., Monday through Friday, and 9:00 a.m. to 6:00 p.m., Saturday and Sunday, only. The time limits set forth herein do not apply during the Well Drilling and fracturing process. Alternative times may be approved as a condition of an SUP.
10.
Air, Gas, or pneumatic Drilling shall not be permitted.
11.
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 and propose a plan to remedy or remediate the accumulations of such material. If for safety or other reasons, the City elects to perform the removal, the cost of such removal shall be paid by the Operator.
12.
Within 60 days of the completion of the Well or within 60 days of reworking a Well, the area around the Well shall be cleaned up and cleared of all material and equipment, holes or excavations filled, and the land graded and returned to its original condition including replanting of vegetation to match the surrounding area.
§ 14.12.B
Safety & Environmental Standards
1.
The Drilling and production of Gas and accessing the Drill Site or Operation Site shall be in compliance with all State and Federal environmental regulations and shall not occur within Environmentally Sensitive Areas without the prior approval of the U.S. Corps of Engineers.
2.
Gas Wells may have a target location or bottom-hole location that is under an Environmentally Sensitive Area when the Gas Well is drilled directionally from a location outside the Environmentally Sensitive Area.
3.
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 well heads shall contain an emergency shut-off valve to the Well distribution line.
4.
The well site shall not become unsightly, dilapidated or unsafe to its surrounds [surroundings].
5.
Flaring or burning of gas or petroleum of any kind after the well is in production is prohibited. Temporary flaring or burning to accommodate public safety may be performed only when approved by and under the direction of the City’s Fire Inspector.
6.
Each applicant shall be responsible for identifying and placing warning markers where a pipeline crosses a public roadway where such crossing is permitted by the city.
7.
The fracturing of a well may only be performed in accordance with Texas Railroad Commission rules and standards.
8.
Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the Well or automatically call the operator’s response personnel to manually close the Well in the event of excess liquid accumulation in the tank.
9.
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. The liner shall be installed to the manufacturer’s specifications. Drip pots shall be provided at pump-out connections to contain the liquids from the storage tank.
10.
Tank battery facilities shall be equipped with a remote foam dispensing system and underground line utilizing a two and one-half (2.5) inch National Standard Hose Thread fire department connection meeting Fire Department specifications. All locations shall be determined by the City Fire Inspector. The applicant may elect to pay a fee-in-lieu of installing the remote foam line established pursuant to the City of Granbury Fee Schedule, as amended. Such fee shall be used by the Granbury Volunteer Fire Department to operate and maintain a mobile foam dispensing trailer. In the event the mobile foam dispensing trailer is needed for fire suppression at a well site during an emergency event, the City shall invoice and notify the applicant, in writing, of any costs associated with the use of the mobile foam dispensing trailer during the event, excluding labor and operating costs, but including replenishment of foam chemicals and repair or replacement of damaged equipment. Within fifteen (15) days of receipt thereof, the applicant shall pay to the City, the entire invoiced amount. All charges made by the City shall be the sole responsibility of the applicant. Failure to timely payment to the City may result in the suspension, revocation or termination of the applicable Gas Well Permit.
11.
A lightning arrestor system shall be installed according to the most current edition of the National Electrical Code.
12.
An approved Hazardous Materials Management Plan shall be filed with the Fire Inspector and on file with the Fire Department. Firefighting apparatus and supplies shall be kept on-site and at the locations shown on the Emergency Response Plan. The costs of cleanup operations due to hazards associated with a Well site shall be the responsibility of the Operator.
13.
No salt-water disposal Wells shall be located within the City.
14.
The following inspections shall be required:
a.
Surface Casing:
An Operator must set and cement sufficient surface casing to protect all usable-quality water strata, as defined by state law. In addition, the following shall be required:
(1)
Centralizers must be used at an interval of one (1) centralizer per one hundred (100) feet, or ten (10) centralizers per one thousand (1,000) feet.
(2)
New surface casing is required.
(3)
Proper floating equipment shall be used.
(4)
Class “H” or Class “C” cement with accelerators shall be used.
(5)
The Operator shall circulate cement to surface; if not, the Operator shall cement with one (1) inch tubing and top off.
(6)
The Operator shall wait on cement a minimum of eight (8) to twelve (12) hours prior to commencing further Drilling operations.
(7)
The Operator shall test the blowout preventer before Drilling out of surface casing to one thousand (1,000) psi.
b.
Completion:
The Well must be equipped with a blowout preventer before this operation is commenced. If a bridge plug is set over a producing formation prior to additional completion, it must be pressure-tested to a sufficient pressure to ensure that it is not leaking.
c.
Final Inspection:
After the site has been cleaned up and screened, the Operator shall notify the Gas Well Inspector for a final inspection. Prior to the final inspection, the operator must provide the City with geographic coordinates of the Well Bore, using the North American Datum 1983 (NAD 83), Texas State Plane - North Central Zone (4202), in United States feet.
15.
Unless otherwise pre-empted by state law, the Gas Well Inspector and/or Code Enforcement Officer shall conduct periodic inspections of all permitted Wells in the City to determine that the Wells are operating in accordance with the requirements of this section and all regulations of the Railroad Commission. If a violation of the applicable Specific Use Permit and associated site plan (general nuisance provisions such as but not limited to: screening, landscaping, noise, stagnant water, etc.) or the Gas Well Permit is found during periodic inspection, a reinspection shall be required. If a reinspection is required, the Operator shall pay the reinspection fee established pursuant to the City of Granbury Fee Schedule, as amended. The reinspection fee must be received by the City of Granbury within 30 days of notice to the gas company.
16.
If a Gas field in the City is identified as a Hydrogen Sulfide (H2S) Gas field, the Operator shall immediately cease operation.
17.
A Closed Loop Mud System shall be required and used in conjunction with drilling and reworking operations for all Gas Well Permits. All tanks used for storage shall conform to the following:
a.
Operator must use portable closed steel storage tanks for storing liquid hydrocarbons. Tanks must meet the American Petroleum Institute standards or equivalent. All tanks must have a vent line, flame arrester and pressure relief valve. All tanks must be enclosed by a fence applicable to the issued permit classification. No tank battery shall be within one hundred (100') feet of any dwelling or other combustible structure.
b.
Drilling mud, cuttings, liquid hydrocarbons and all other field waste derived or resulting from or connected with the drilling, reworking or deepening of any well shall be discharged into the closed loop mud system. All disposals must be in accordance with the rules of the Commission and any other appropriate local, state or federal agency.
c.
Waste materials shall be removed from the site and transported to an off-site disposal facility not less often than every thirty (30) days. Water stored in on-site tanks shall be removed as necessary.
d.
All waste shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the State, this Ordinance and any other applicable ordinance of the City.
(Ordinance 16-65 adopted 12/6/16; Ordinance 20-27 adopted 8/4/20)
§ 14.13 Required Flow and Gathering Lines.
To the extent that an operator is unable to demonstrate an exemption under federal or state law, the following requirements shall apply to the construction and operation of a flow line or gathering line:
1.
An Operator shall place an identifying sign, in English and Spanish, at each point where the Operator has constructed or caused to be constructed a flow line or gathering line across a public street or road.
2.
An Operator shall place a warning sign, in English and Spanish, for lines carrying Hydrogen Sulfide (H2S) Gas as required by the Railroad Commission.
3.
All flow lines and gathering lines within 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. All gathering and distribution lines shall be buried and shall be installed with at least the minimum cover or backfill specified by 49 CFR Part 192, as amended. Flow lines shall be surrounded by protective barriers approved by the City Fire Inspector to ensure lines are not damaged during the drilling and fracturing process.
4.
Easements must be acquired for all flow lines, gathering lines and flowback lines that are located outside of the leased premises or in the case of a pooled unit, those lines located outside of the polled unit boundary. The location of easements shall be shown in a Pipeline Easement Map.
5.
Structures shall not be built over flow lines or gathering pipelines.
6.
All gathering lines and pipelines not located within the Operation Site shall be located underground. The location of all gathering lines and pipelines must be marked with warning signs in accordance with industry standards. Within the City of Granbury, the distance between such signs shall not exceed five hundred (500) feet. In addition, during backfill of pipeline excavations, “Buried Pipeline” warning tape shall be buried one (1) foot above the pipeline to warn future excavators of the presence of buried pipeline.
(Ordinance 16-65 adopted 12/6/16)
§ 14.14 Compressor Stations.
1.
A Specific Use Permit shall be required for all compressor stations and shall be accompanied by a T-4 Permit issued by the Railroad Commission.
2.
A building permit shall be issued prior to the development of the compressor station site.
3.
The station site shall adhere to all development requirements of this ordinance for a commercial development within the City of Granbury and any additional requirements imposed as conditions of the SUP approval.
4.
All compressor station equipment and sound attenuation structures shall be enclosed within a building. Such building shall adhere to construction standards contained within in this Ordinance and other applicable codes adopted by the City.
5.
A pre-development ambient noise level reading shall be taken by the developer and verified by the City at all property lines and provided to the Chief Building Official with the building plan submittal prior to development on the site. The operation of the site shall not produce a noise greater than those levels defined in Section 8.05.003 of the City of Granbury Code of Ordinances.
(Ordinance 16-65 adopted 12/6/16)
§ 14.15 Supplemental Drilling.
1.
Supplemental Drilling to deepen or directional drill a Well that has not been abandoned shall be conducted in accordance with the conditions of the applicable Specific Use Permit and associated site plan and the Gas Well Permit for the Well.
2.
The Operator shall provide the City with a copy of additional Railroad Commission permits that allow Drilling to a deeper depth.
(Ordinance 16-65 adopted 12/6/16)
§ 14.16 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 twenty (20) 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 shall post a sign, in English and Spanish, 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. No Well shall be reworked without the approval of the Gas Well Inspector. If the Gas Well Inspector determines that an inspection is necessary, a Gas Well Reinspection fee shall be charged.
§ 14.17 Abandonment of Wells and Pipelines.
1.
Upon Abandonment of a Well or Well site, within sixty (60) days, the Well shall be plugged in accordance with Railroad Commission standards, the site shall be cleaned and cleared of all material and 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 ten (10) feet below the surface.
2.
No structures shall be built within ten (10) feet of an abandoned Well.
3.
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.
4.
The Operator shall contact the City and request an inspection of a restored site. The insurance coverage required herein shall be maintained until the site is accepted by the City.
(Ordinance 16-65 adopted 12/6/16)
§ 14.18 Remedies.
1.
If an Operator or his officers, employees, agents, contractors, subcontractors or representatives fails to comply with the conditions of the applicable Specific Use Permit and associated site plan or any requirement of a Gas Well Permit (including any requirement incorporated by reference as part of the permit), or any applicable provisions of this section or any other City ordinances, the City shall endeavor to give written notice to the Operator specifying the nature of the alleged failure and giving the Operator a specified 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. If circumstances warrant proceeding without notice, no notice shall be required. In any case, failure to give such notice shall not prohibit the City from pursuing any available remedy.
2.
If the Operator does not cure the alleged failure or environmental hazard within the time specified by the City, the City may notify the Railroad Commission and request that the Railroad Commission take appropriate action. In addition, the City may pursue all other remedies allowed by law, including but not limited to the following:
a.
The City Manager may suspend the Gas Well Permit until the alleged failure is cured; and
b.
The City Manager may revoke the Gas Well Permit if the Operator fails to initiate and diligently pursue a cure; and
c.
The City Manager may seek recourse against the security delivered pursuant to this Article.
3.
The Operator may appeal a decision to suspend or revoke the Gas Well Permit to the City Council.
(Ordinance 16-65 adopted 12/6/16)
§ 14.19 Enforcement Provisions.
City Staff and the Gas Well Inspector are authorized and directed to enforce this section and the provisions of any Gas Well Permit. Whenever necessary to enforce any provision of this section or a Gas Well Permit, or whenever there is reasonable cause to believe there has been a violation of this section or a Gas Well Permit, City Staff and/or the Gas Well Inspector may enter upon any property covered by this section or a Gas Well Permit at any reasonable time to inspect or perform any duty or requirement imposed by this section. If entry is refused, the City shall have recourse to every remedy provided by law and equity to gain entry.
(Ordinance 16-65 adopted 12/6/16)