The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. All technical oil and gas industry terms not specifically defined shall have that meaning customarily attributed thereto by prudent persons within the industry.

Alter, when applied to new industrial activity, means to change the shape or size of a storage well by five percent or greater or to change the kind or character of the product stored within such storage well.

Applicant means any person or entity requesting a permit from the city council.

Completion or completion date means the test date shown in forms required by the Texas Railroad Commission to indicate that all well drilling activities are complete and the well is ready for production, as the prerequisite to receiving an allowable from the Texas Railroad Commission.

Decibel (dB(A)) means a numerical expression of the relative loudness of sound.

DOT means the United States Department of Transportation.

Drill means to place any equipment, fixtures, drilling rig, batteries or pit required before commencement of boring into the ground for the production of oil or gas, in addition to actually making a hole or bore for the production of oil or gas.

Flare means burning discharge of surplus oil or gas products.

Maintenance andrepair means any construction, installation, repair, restoration or renovation of an existing pipeline, well or new industrial activity which is begun after a well or pipeline has been permitted and put into service or after new industrial activity is permitted and undertaken.

Major repair means any maintenance and repair which, for a period of more than 24 hours, either is visible to the public or is a disruption of activities or tends to influence activities within the vicinity of the maintenance and repair.

New industrial activity means any new activity undertaken within the city which requires a permit of a state or federal agency or any political subdivision of the state or federal government and which involves making or altering a hole or cavity, or making use of a hole or cavity, or puncturing, uncovering, and/or exposing the caprock of the Barbers Hill Salt Dome, underground salt caverns, groundwater aquifers, or any natural formation more than ten feet below grade level, and which is done for the benefit of any business or commercial enterprise. The term "new industrial activity" shall include activity which is undertaken after the effective date of the ordinance from which this article is derived.

Oil or gas well means any hole or bore into the earth used to produce, explore, develop, sample, or recover oil, gas, liquid hydrocarbon, or geothermal resources or to inject any substance for secondary recovery, pressure maintenance, or other recovery. The term "oil or gas well" shall not include wells drilled or operated for storage of oil, gas, or geothermal resources.

Operational boundary means the real property upon which offices and operational facilities of an industry using pipelines is situated, not including rights-of-way, easements or licenses.

Permit means a document indicating approval by the city council to engage in a specified activity.

Permittee means one to whom a permit is issued.

Person means any person, natural or artificial, including any individual, partnership, firm, company, industry, municipal or private corporation, association, governmental agency or other entity and their agents, servants, or employees.

Pipeline means any conduit pipe or part thereof, including valves and any other appurtenances thereto, used for the transportation of a product within the city, except that which is located entirely within an operational boundary.

Product.

(1)

The term "product" means any material transported through, into or out of:

a.

Any underground hydrocarbon storage facility, including any pipeline or part thereof associated or connected with such underground facility, or placed or stored in a storage well.

b.

Any pipeline or part thereof.

c.

Any industrial plant, factory, refinery, fractionators or industrial facility in the city.

(2)

The term "product" does not include potable water, sewage, or stormwater.

Special permit means a document indicating approval by the city council to engage in a specified activity that otherwise would not be permitted under the provisions of this article.

Storage well means any cavern, hole or bore, however made, into or through any subsurface formation of the earth, used for storing any product, whether for immediate or future use. This term shall expressly include the actual storage area within any salt mass within the earth.

Undertake, when applied to new industrial activity, means to make a hole or cavity in, to make any new commercial use of a hole or cavity, or to puncture, uncover or expose the caprock of the Barbers Hill Salt Dome, underground salt caverns, groundwater aquifers, or any natural formation more than ten feet below grade level. As used in this article, the time at which a new industrial activity is undertaken shall be the date upon which any excavation or use of a hole or cavity is begun.

Wellhead means the exact center of the location where the driller inserts the drill bit for the purpose of drilling the well. The wellhead, for the purposes of this article, shall also be known as the hole.

(Ord. No. 98-009, §§ 2, 3, 5-26-1998; Ord. No. 2006-013, § 5(10-2), 5-22-2006)

The purpose of this article is to provide regulation in the public interest of oil and gas industry activity and new industrial activity within the city. The provisions of this article are consistent with state law and supersede and repeal any laws or ordinances in conflict with this article. The purposes as stated in section 42-4 as to safety under this chapter shall not apply to the extent such purpose conflicts with V.T.C.A., Natural Resources Code ch. 211.

(Ord. No. 2006-013, § 5(10-1), 5-22-2006)

The mayor shall appoint an oil and gas official who shall perform the functions assigned to the official in this article. The appointment shall be approved by the city council. At the time of his appointment, the city council shall provide for reasonable compensation for his services. Until such time as the oil and gas official is appointed, his duties may be carried out by any city employee.

(Ord. No. 2006-013, § 5(10-3), 5-22-2006)

All notice requirements to applicants and permittees set forth in this article will be deemed to have been met if the notice is mailed in a properly sealed container with proper postage to the last known address of the applicant or permittee.

(Ord. No. 2006-013, § 5(10-4), 5-22-2006)

All written reports and material required to be filed in this article shall be filed in a form acceptable to the city secretary. The city secretary may require certain reports to be filed on computer disk in a format accessible by city computers.

(Ord. No. 2006-013, § 5(10-5), 5-22-2006)

The purpose of this division is to provide regulation in the public interest of drilling and operation of oil and gas wells and storage wells within the city for activities not covered by chapter 19.

(Ord. No. 2006-013, § 5(10-10), 5-22-2006)

No person shall operate, alter, or commence drilling of an oil or gas well or a storage well within the city without first obtaining a permit under the procedures as provided for in section 42-396(a). For the purposes of this division, a well shall be considered operating unless the well has been plugged and abandoned and a copy of the appropriate railroad commission form certifying plugging and abandonment filed with the city secretary.

(Ord. No. 98-009, § 4, 5-26-1998; Ord. No. 2006-013, § 5(10-11), 5-22-2006)

(a)

Whenever this article requires the express approval of the city council before a specified activity may lawfully be undertaken, the person or entity that wishes to engage in that activity shall apply to the city council for a permit in accordance with this division.

(b)

An exception to any of the requirements of this article requires the express approval of the city council, and the person desiring the exception shall apply to the city council for an exception in accordance with the application and city council action procedures of this article.

(Ord. No. 2006-013, § 5(10-12), 5-22-2006)

No oil or gas well shall be drilled or altered within 200 feet of the nearest residence or commercial structure or within 2,500 feet of any public school or full-service hospital, unless a waiver is approved upon written application to the city council, as provided for in section 42-396(b). This distance shall be measured from the proposed wellhead to the closest loadbearing wall of each structure. Structures subject to the distance limitation are those that are occupied on a fulltime basis. Expressly excluded are gazebos, storage sheds, covered patios and all similar nonenclosed or nonhabitable structures.

(Ord. No. 98-009, § 5, 5-26-1998; Ord. No. 2006-013, § 5(10-13), 5-22-2006; Ord. No. 2025-012, § 3, 7-28-2025)

The wellhead of any storage well shall be located as follows:

(1)

Not less than 1,000 feet from any residential dwelling or commercial structure in existence at the time an application for a storage well permit is filed with the state railroad commission, unless the prior written consent of the owner is first obtained and filed with the city secretary, in the same manner as provided for drilling oil and gas wells in section 42-397.

(2)

Not less that 400 feet from any adjoining property unless the prior written consent of the adjacent property owner is first obtained and filed with the city secretary, in the same manner as provided for drilling oil and gas wells in section 42-397.

(3)

Not less than 200 feet from any public street, roadway, or alley.

(Ord. No. 115, 3-28-1983; Ord. No. 2006-013, § 5(10-14), 5-22-2006; Ord. No. 2014-018, § 1, 5-12-2014)

Upon completion of the well, including performance of all production tests required by the state railroad commission as a precondition to issuance of a production allowable, the permittee shall verbally notify the mayor as soon as possible thereafter, and shall formally certify completion of the well to the city by filing duplicates of railroad commission-required forms with the city within ten days following the filing of the same with the railroad commission.

(Ord. No. 2006-013, § 5(10-15), 5-22-2006)

No permit shall be issued for any well to be drilled at any location which is within any of the streets or alleys of the city. No street or alley shall be blocked or encumbered or closed in any drilling or production operation, except by special permit and then only on a temporary basis as shall be stipulated by the city council.

(Ord. No. 2006-013, § 5(10-16), 5-22-2006)

Drill stem tests shall be conducted only during daylight hours.

(Ord. No. 2006-013, § 5(10-17), 5-22-2006)

The type of pit to be used shall be specified on the permit application and approved as submitted, or with modifications, by the city council at the time of permitting. The pit and its contents shall be removed from the premises within 45 days after the completion of the well; provided, however, that the permittee may apply for a 45-day extension on a showing of good cause (e.g., necessity to maintain the pit, inclement weather, or other factors). The city council may designate an extension shorter than the 45 days. Upon removal, the surface of the soil shall be restored to its original condition as nearly as practicable.

(Ord. No. 2006-013, § 5(10-18), 5-22-2006)

Whenever any well is abandoned or plugged, the permittee shall set a 50-foot cement plug in the top of the surface casing, leave the surface or conductor strings of the casing in the ground and comply with state and federal regulations, particularly 16 Tex. Admin. Code § 3.14, Plugging, as it may be amended from time to time.

(Ord. No. 2006-013, § 5(10-19), 5-22-2006)

State Law reference— Abandoned wells, V.T.C.A., Natural Resources Code ch. 89; duty to plug wells, V.T.C.A., Natural Resources Code § 89.011 et seq.

(a)

The drill site and all roads and drives providing vehicular access during the drilling process shall be maintained in such a manner as to prevent dirt, dust, mud, or other similar materials from such roads and well sites from being deposited by the elements into the air or upon any public street, sidewalk or other public property, or the private property of another person. Access roads from the public right-of-way must be constructed of materials acceptable to the city council.

(b)

If the well is completed as a producing well and actual production commences, the permittee shall construct and maintain private roads if in new locations, approved in advance by the city council, sufficient to provide vehicular access from the public road, the entrances to which shall be approved by the city council. Such private roads, at a minimum, shall be of a length and constructed of such material as shall be acceptable to the city council, including crushed rock, oil base, or other similar material, and shall be maintained free of dust, dirt, and mud, and in such manner as to prevent the deposit of dust, dirt, and mud on, along or upon, any public street, sidewalk or other public property or upon the property of another person. That portion of the private roadways located within the right-of-way of a public street shall comply with the construction standards for commercial driveways set forth in other portions of this Code. Such roadways shall be so maintained until the well is plugged and abandoned.

(Ord. No. 2006-013, § 5(10-20), 5-22-2006)

(a)

The purpose of this division is to provide regulation in the public interest of new industrial activity within the city. The provisions of this article are consistent with state law and supersede and repeal any laws or ordinances in conflict with this article.

(b)

The provisions of this article are applicable in cases where other permitting procedures of this Code, and specifically chapter 19, do not apply because of V.T.C.A., Natural Resources Code ch. 211.

(Ord. No. 2006-013, § 5(10-41), 5-22-2006)

No person shall undertake any new industrial activity within the city without first obtaining an industrial activity permit under the procedures set forth in section 42-424(a).

(Ord. No. 2006-013, § 5(10-42), 5-22-2006)

(a)

Whenever this article requires the express approval of the city council before a specified activity may lawfully be undertaken, the person that wishes to engage in that activity shall apply to the city council for a permit in accordance with this division.

(b)

An exception to any of the requirements of this article requires the express approval of the city council, and the person desiring the exception shall apply to the city council for an exception in accordance with the application and city council action procedures of this article.

(Ord. No. 2006-013, § 5(10-43), 5-22-2006)

No permit shall be issued for any new industrial activity to be undertaken at any location that is within any of the streets or alleys of the city. No street or alley shall be blocked or encumbered or closed in any drilling operation without execution of a license agreement with the city, and then only on a temporary basis as shall be stipulated by the city council.

(Ord. No. 2006-013, § 5(10-44), 5-22-2006)

If any pit is required, the type of pit used shall be approved as submitted, approved with modifications or denied by the city council at the time of permitting. The pit and its contents shall be removed from the premises within 45 days after the completion of the well; provided, however, that the permittee may apply for a 45-day extension on a showing of good cause (e.g., necessity to maintain the pit, inclement weather, or other factors). The city council may designate an extension shorter than the 45 days. Upon removal, the surface of the soil shall be restored to its original condition as nearly as practicable.

(Ord. No. 2006-013, § 5(10-45), 5-22-2006)

Whenever any well is abandoned or plugged, the permittee shall set a 50-foot cement plug in the top of the surface casing, leave the surface or conductor strings of the casing in the ground and comply with state and federal regulations, particularly 16 Tex. Admin. Code § 3.14, Plugging, as it may be amended from time to time. If an excavation site is abandoned, the permittee shall restore the surface of the soil to its original condition as nearly as possible.

(Ord. No. 2006-013, § 5(10-46), 5-22-2006)

(a)

The drill site, or excavation site related to new industrial activity, and all roads and drives providing vehicular access during the drilling process shall be maintained in such a manner as to prevent dirt, dust, mud, or other similar materials from such roads and well sites from being deposited by the elements into the air or upon any public street, sidewalk or other public property, or the private property of another person. Access roads from the public right-of-way must be constructed of materials acceptable to the city council.

(b)

If the well is completed as a producing well and actual production commences, or if the excavation is completed and the new industrial activity commences, the permittee shall construct and maintain private roads if in new locations, approved in advance by the city council, sufficient to provide vehicular access from the public road, the entrances to which shall be approved by the city council. Such private roads, at a minimum, shall be of a length and constructed of such material as shall be acceptable to the city council, including crushed rock, oil base, or other similar material, and shall be maintained free of dust, dirt, and mud, and in such manner as to prevent the deposit of dust, dirt, and mud on, along or upon, any public street, sidewalk or other public property, or upon the property of another person. That portion of the private roads located within the right-of-way of a public street shall comply with the construction standards for commercial driveways set forth in other portions of this Code. Such roadways shall be so maintained until the well is plugged and abandoned.

(Ord. No. 2006-013, § 5(10-47), 5-22-2006)

(a)

The purpose of this division is to provide a permitting scheme for all permits required under this article, to the end of minimizing public confusion and maximizing governmental efficiency.

(b)

The provisions of this division only apply to the permit requirements of this article.

(Ord. No. 2006-013, § 5(10-60), 5-22-2006)

Nonrefundable application fees as currently established or as hereafter adopted by resolution of the city council from time to time are required to be paid in full at the time the application is submitted to the city secretary.

(Ord. No. 98-009, § 7, 5-26-1998; Ord. No. 2006-013, § 5(10-61), 5-22-2006)

(a)

Any person desiring a permit or a waiver of a distance limitation shall obtain an application form from the city secretary. The completed form, along with any supplemental documentation and the application fee required, shall be submitted to the city secretary. The application shall include a statement enumerating any waivers or exemptions requested from the consolidated permitting procedures.

(b)

The city secretary shall inspect the application for completeness and note on the application the date the completed application was submitted. The application shall be deemed complete when all information required to be submitted is provided to the city secretary as set forth in section 42-459.

(Ord. No. 2006-013, § 5(10-62), 5-22-2006)

(a)

The city council may refuse any application because of:

(1)

The character and value of the permanent improvements already erected on or approximately adjacent to the proposed location;

(2)

The use to which the land and surroundings are adapted;

(3)

The applicant's prior poor compliance with the city's ordinances;

(4)

The well, pipeline, or activity would impose an unreasonable burden or unduly damage the surface of the proposed site, including especially park land;

(5)

Alternative sites available; or

(6)

A composite of any of these reasons if the drilling or operation of a well, pipeline, or activity in the proposed location might be injurious or disadvantageous to the city or to its inhabitants, especially adjacent property owners.

(b)

The city council may grant a permit upon such conditions as it determines necessary including, but not limited to, special conditions dealing with the following:

(1)

Right of adjacent properties to quiet enjoyment of their property;

(2)

Hazardous materials management;

(3)

Seismic stability integrity;

(4)

Proper disposal of waste products;

(5)

Air, discharge and pollution;

(6)

Proximity to homes;

(7)

Vibrations;

(8)

Site cleanliness and maintenance;

(9)

Ensure proper abandonment of facilities;

(10)

Maintenance of property values;

(11)

Impact of roads and utility infrastructure;

(12)

Traffic impacts;

(13)

Community awareness;

(14)

Water source and protection;

(15)

Disruption of public services including roads and utilities;

(16)

Long-term integrity of improvements;

(17)

Maintenance of community construction and aesthetic standards;

(18)

Ensure adequate financial and insurance requirements are met;

(19)

Noise;

(20)

Odor;

(21)

Access;

(22)

Orderly development of both industry and housing;

(23)

Hurricane evacuation route;

(24)

Site configuration;

(25)

Site screening;

(26)

Construction procedures and time of completion;

(27)

Well or pipeline maintenance;

(28)

Site maintenance;

(29)

Site appearance;

(30)

Additional financial security;

(31)

Additional insurance;

(32)

Use and disposal of drilling fluids;

(33)

Site reclamation;

(34)

Well/site abandonment; and

(35)

Waivers and exemptions.

(Ord. No. 2006-013, § 5(10-63), 5-22-2006)

(a)

An application form for every permitable activity shall be approved by the oil and gas official. A common format shall be used whenever possible. All application forms shall contain at least the following information:

(1)

Name, address, and telephone number of the applicant, and the name, address, and telephone number of a person from whom additional information regarding the application can be obtained.

(2)

Brief description of the activity for which the permit is sought, along with a detailed description of the type of activity, the processes and equipment involved, the hours of operation of the activity, and the potential impacts on public safety and good order of the city.

(3)

If the application involves activity on real property, it shall contain the following information:

a.

Legal description of the property, including the applicable tax appraisal district parcel and tract number.

b.

Map drawn to scale showing the site of the proposed activity.

c.

Plans, specifications, and construction materials to be used in any facilities or activities sought to be authorized under the permit; provided, however, that if a permit is issued as-built, plans and specifications shall be submitted after construction is complete.

d.

Location and description, including make, model and color of equipment, to be used in the facilities or activities sought to be authorized under the permit.

e.

Name, address and telephone number of the property owner.

f.

Names and addresses of owners of any leasehold interests.

(4)

Copies of any permits, licenses or other documents already issued by state or federal regulatory authorities approving the proposed activity.

(5)

If the applicant is not to conduct the activity personally, the names, addresses and telephone numbers of any agents, contractors, or representatives who are to conduct the activity, along with any applicable license numbers.

(6)

Any other information specified in this chapter or required by the oil and gas official, city secretary, mayor, or city council, including a commitment to use DIG-TESS (Texas Excavation Safety System), One-Call or other similar service, spill response plan or emergency response plan, if appropriate.

(7)

Original signature of the applicant.

(8)

Original signature, along with name, address and telephone number, of the applicant's contractor submitted before any work permitted under the application is undertaken.

(b)

Whenever a name, address and telephone number are required, the application shall contain the following information:

(1)

If the applicant is a corporation, the name and address of the registered agent for service of process.

(2)

If the applicant is a general partnership, the names, addresses and telephone numbers of the partners.

(3)

If the applicant is a limited partnership, the name and address of the general partner.

(c)

An application for a permit to drill or operate an oil and gas well shall provide the following information in addition to the information required elsewhere herein:

(1)

The name and telephone number of a contact person available at all times to call in the event of an emergency.

(2)

A description of the probable impact upon the flow of traffic on city streets of movement of equipment and vehicles to the site, specifying the dates and the times when heavy equipment is scheduled to be moved; provided, however, if this information is not provided with the application, the city council may issue the permit and require that the information be provided before work is begun.

(3)

The map provided shall be drawn to scale, and shall show the tract containing the site, the wellhead site, the proposed access route from the wellhead to the public thoroughfare, the probable location of all pits, the probable location of any separator, tank, or similar equipment, the approximate size and shape of the well site, and each structure within 400 feet of the wellhead, identified as to type.

(4)

The proposed well depth.

(5)

The proposed blowout preventative device and proposed frequency of testing such device.

(6)

Waiver consents.

a.

The sworn consent of the owner of each dwelling or commercial structure less than 400 feet from the proposed wellhead if a waiver of the distance limitation is sought.

b.

The consent shall contain at least the following information:

1.

The name and address of the property owner.

2.

A clear and unequivocal statement that the property owner agrees to the siting of the well.

3.

A clear and unequivocal statement that the property owner understands that refusal is permissible.

4.

A statement of notice to the property owner that by affixing his signature to the document, the property owner agrees to permit the applicant to place the signed document in the chain of title of the property owner and that such document will in fact be placed in the chain of title of the property.

5.

A statement of notice to the property owner that a permit to drill the well will not be granted until the applicant complies with all the terms and provisions of this article.

(7)

The following supplemental information may be requested by the city council before approving a permit if the unique circumstances of the proposal make such advisable.

a.

A detailed site plan including specific details as to the projected location of the major components of the drilling site, impacted vegetation, creeks and other topographic features, adjacent buildings and other structures, including measured distances therefrom, any special flood protection equipment or flow deflectors necessary to deflect flood-carried waters where wells are located in floodplains, and any other surface features deemed necessary.

b.

Appropriate information dealing with projected dust, or noise, or temporary or permanent fencing, or other similar information dealing with the environmental and nuisance aspects of the application.

c.

A specific, detailed location of the exact point where the well will be drilled.

d.

Detailed descriptions of the efforts made to obtain permission for waiver of the distance limitation and a detailed statement of objections raised by adjacent property owners to the drilling of the well.

e.

Specific details relating to the drilling formation the applicant seeks to penetrate, information to delineate anticipated impacted areas and the level of impact should an accident occur which would allow the escape of the sour gas, and an emergency response and evacuation plan.

f.

If the proposed drilling site will be located wholly or partially in a public park:

1.

The reasons why the park property is the only location available for the well;

2.

A detailed description of efforts made to find alternative locations for the well and why such efforts were unsuccessful;

3.

A detailed site plan containing an overlay of park property to delineate those park facilities which would be specifically affected by drilling and production operations;

4.

A detailed description of the impact on the park property as a whole, including impacts on adjacent vegetation, the necessity for screening, and the duration of any adverse impacts; and

5.

A detailed site restoration plan delineating revegetation of the park property, screening, appropriate environmental controls, and other requirements as deemed appropriate by the city council.

(d)

An application for a permit to drill or operate an oil and gas storage well shall provide the following information in addition to the information required elsewhere herein:

(1)

The name, address, telephone number, and emergency telephone number of the owner, operator, or other person responsible for the well and available at all times to call in the event of an emergency.

(2)

The exact location of the well, identified by reference to adjacent streets and block number and by use of an attached map.

(3)

The railroad commission designation and serial number for the well.

(4)

The nature, type (oil or gas, or both, production or storage), and age of the well, and any unique features of same.

(5)

The proposed bottom hole depth (in the salt mass) of the storage well.

(6)

The proposed casing program for the storage well.

(7)

The proposed gross capacity of the completed storage well expressed in barrels.

(8)

A general description of the well-associated equipment, including pumper, evaporator, condensate tank, condensers, storage tanks, compressors, and the like.

(9)

The map shall be prepared by a registered public surveyor of the state. It shall show the exact location of the proposed storage well, together with figures showing compliance with the setback requirements of this chapter.

(10)

The proposed date of commencement of construction and the date of the estimated completion.

(e)

An application for a permit to construct a pipeline shall provide the following information:

(1)

A general description of the pipeline, including pipe specifications, operating pressure, maximum test pressure, and the depth of the pipeline wherever it is buried more than 48 inches, or less than 24 inches, from the surface of the earth.

(2)

A description of the products to be transported.

(3)

The proposed date of commencement of construction and the date of estimated completion.

(4)

A description of the probable impact upon the flow of traffic on city streets of movement of equipment and vehicles, specifying the dates and times when public streets and sidewalks are scheduled to be closed.

(5)

The name and telephone number of a contact person available at all times to call in the event of an emergency.

(6)

An agreement to remove at the owner's sole expense any portion of the pipeline which is laid within, under or across any street, road or utility right-of-way or public place, when the city reasonably requires such action to construct, maintain, or improve public improvements, including streets, water lines, sanitary sewer lines, storm sewers, ditches or public utilities.

(7)

The map provided shall be a reproducible drawing in the form required by the mayor showing the proposed location, course, distance and alignment of the pipeline. The pipeline shall be identified with the owner's name and the products to be transported therein.

(Ord. No. 2006-013, § 5(10-64), 5-22-2006)

If the permit for the well pipeline or new industrial activity is refused, conditioned, delayed, or postponed by the city, or if the applicant, within one year of the date the application was filed, notifies the city that it does not elect to proceed and wishes to withdraw the application or to voluntarily surrender a permit previously issued, the applicant may request that the oil and gas official approve the refund of a portion of the application fee as currently established or as hereafter adopted by resolution of the city council from time to time.

(Ord. No. 2006-013, § 5(10-65), 5-22-2006)

(a)

On the day of the filing of any industrial activity permit application, the applicant shall post a sign at the location of the proposed industrial activity or immediately adjacent to each entrance to the actual proposed activity site, whichever location shall be more visible. If possible, the sign must be placed in a location easily visible from any adjacent public street or thoroughfare, or if no such location is available, then at the most highly visible location available. The sign shall contain lettering at least two inches tall in the following format:

PROPOSED ACCESS/ENTRY POINT FOR A NEW INDUSTRIAL ACTIVITY

A detailed description of the activity and site map can be reviewed at the Mont Belvieu City Hall. Comments will be received by the city secretary for delivery to the city council from interested citizens through ___________ (at least 15 days following the date of filing of the application).

(b)

The processing of the industrial activity permit application will not begin, nor shall any time period begin to run, until the application has been filed and such sign has been posted by the applicant. Following the filing of the application and the posting of the sign, interested citizens shall have 15 calendar days to make comments regarding the application. In addition, all application materials shall be available for inspection during regular business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday at the city hall.

(Ord. No. 2006-013, § 5(10-66), 5-22-2006)

(a)

On the day of the filing of any application, the applicant shall post a sign at the location of the proposed access routes for the well or immediately adjacent to each entrance to the actual proposed well site, whichever location shall be more visible. If possible, such sign must be placed in a location easily visible from any adjacent street or thoroughfare, or if no such location is available, then at the most highly visible location available. The sign shall contain lettering at least two inches tall in the following general format:

PROPOSED ACCESS/ENTRY POINT FOR AN OIL/GAS WELL SITE

A detailed site map can be reviewed at the Mont Belvieu City Hall. Comments will be received by the city secretary for delivery to the city council from interested citizens through ___________ (at least 15 days following the date of filing of the application).

(b)

The processing of the permit application will not begin, nor shall any time period begin to run, until such sign has been posted by the applicant. Following the filing of the application and the posting of the sign, interested citizens shall have 15 calendar days to make comments regarding the application. In addition, all application materials shall be available for inspection during regular business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday at the city hall.

(c)

The applicant shall post, in like manner as provided elsewhere in this chapter for all proposed oil and gas wells, a sign regarding the proposed pipeline in letters at least two inches tall wherever the proposed pipeline route intersects the public right-of-way or public property; provided, however, that the applicant shall be required to post no more than five signs. If the proposed pipeline crosses the public right-of-way in more than five places, the applicant shall be required to post up to five signs at the highest traffic locations including, but not limited to, any crossings of state highways.

(Ord. No. 2006-013, § 5(10-67), 5-22-2006)

(a)

At least 15 days before the hearing on the application conducted by the city council, the applicant, at the applicant's expense, shall publish notice of the hearing in a local newspaper of general circulation. The substance of the notice and the procedure for publishing same shall be approved by the mayor prior to publication. The applicant shall obtain a certificate of publication from the newspaper following publication of the notice and shall file the certificate with the city secretary.

(b)

At least 15 days before the hearing, the applicant shall, by certified mail, return receipt requested, give notice of the hearing to the owners of all real property located within 400 feet of the boundaries of the proposed site of the well, pipeline, or activity, showing the addresses shown on the last approved city tax roll as prepared by the county central appraisal district, or such other address as is actually known by the applicant.

(Ord. No. 2006-013, § 5(10-68), 5-22-2006)

(a)

The application, when properly submitted in accordance with the provisions of this division and article, shall be considered at the next regularly scheduled city council meeting, allowing time to comply with the notice requirements of the Texas Open Meetings Act, notice to the applicant under subsection (b) of this section, and public notice requirements specified in this chapter.

(b)

The city secretary will provide not less 15 days written notice to the applicant of the date and time of the meeting at which the permit application will be considered. The applicant may waive this requirement if faster action by the city council is desired and can be accommodated in accordance with section 42-461 and/or section 42-462.

(Ord. No. 2006-013, § 5(10-69), 5-22-2006)

City council action on applications shall be conducted in accordance with the following procedures:

(1)

City council consideration.

a.

The city council shall consider granting the application under such terms and conditions as are necessary for the good order of the city.

b.

At the city council meeting at which the permit application is considered, the city council shall conduct a hearing on the application. The burden of proof of all matters considered in the hearing shall be upon the applicant. At the hearing, anyone may speak for or against granting the application. The city council members may question anyone who speaks. At the conclusion of the hearing, the city council shall vote whether to approve the application. If a majority of city council members present vote to approve the application, the application is granted. If an application is not granted, the city council must find that to grant an application would be detrimental to the good government of the citizens for specified reasons. The findings and the vote of the city council shall be duly entered into the minutes.

c.

After the city council acts on the application, the city secretary will provide written notice to the applicant of the city council's decision within seven days of the decision, stating the city council's findings if the permit is denied or issuing the permit if the permit is granted.

(2)

Conditional approval.

a.

The city council may conditionally approve any permit application.

b.

If an application is conditionally approved, the conditions imposed must be reasonably related to a legitimate public interest in regulating the proposed activity.

(3)

Postponing action. At the meeting at which the application is considered, the city council may request submission of additional information, if the information is reasonably related to the propriety of granting the permit. The city council shall postpone action on the application for such time period as the applicant may reasonably require to obtain and submit the supplemental information.

(4)

Issuance of permits.

a.

Permits shall be issued within seven days after approval by the city council. The permit shall contain such terms and conditions as are consistent with the city council approval. All application materials shall be a part of the permit, although the terms and conditions of the permit supersede all items of the application, in the event of conflict.

b.

Permits shall be executed in two duplicate originals. They shall be signed by the mayor or the mayor's designee. An original shall be delivered to the permittee and the other retained.

c.

No permit shall be issued until the permittee complies with the insurance requirements of this article.

(5)

Character of permits. Each permit shall be considered an amendment to the ordinance from which this article is derived and shall only be acted on exclusively by the city council.

(Ord. No. 2006-013, § 5(10-70), 5-22-2006)

(a)

After a permit is issued, construction of the permitted facilities must begin within a reasonable time period and must be pursued diligently to the completion of the construction.

(b)

Completion of construction must occur within one year of the date of permit, issuance, except that upon written and sworn request by the permittee and payment of a fee as currently established or as hereafter adopted by resolution of the city council from time to time, the time to complete construction may be extended for an additional year.

(Ord. No. 2006-013, § 5(10-71), 5-22-2006)

The purpose of this division is to provide uniform operations and site requirements for all activities regulated by this article, to the end of minimizing public confusion and maximizing governmental efficiency.

(Ord. No. 2006-013, § 5(10-80), 5-22-2006)

In the event of a product loss from any underground hydrocarbon storage facility or pipeline facility, fire or explosion, the permittee shall immediately report such event to the city's police department. An original and ten copies of a written report containing a brief summary of the incident shall be submitted to the city secretary by 5:00 p.m. on the first business day of the city following the incident; a duplicate report shall be submitted to the chief of police by the same time. A followup incident report shall be submitted to the city secretary and the chief of police within 30 days following the emergency as called out in section 42-509. If it is a pipeline incident, DOT or similar reports are acceptable.

(Ord. No. 2006-013, § 5(10-81), 5-22-2006)

All production equipment and all drilling sites accessible to the public shall be fenced, and the gates to such fences shall be locked. Fences shall be at least six feet in height. Such fences shall be made of woven wire securely set upon steel posts with barbed wire affixed to the top; or, if within view of residential structures, other materials as approved by the city council when the permit was issued.

(Ord. No. 2006-013, § 5(10-83), 5-22-2006)

(a)

The permittee for an oil and gas well, storage well, new industrial activity or any other permit required by this article shall conspicuously display a copy of the permit at the wellhead or the point of drilling.

(b)

The permittee for a pipeline shall conspicuously display a copy of the permit at each point where the pipeline intersects any public street, right-of-way, easement or public property.

(Ord. No. 2006-013, § 5(10-85), 5-22-2006)

Each well site and new industrial activity site shall have prominently posted a sign clearly indicating in letters at least two inches tall, the emergency contact name and 24-hour emergency telephone number listed in the permittee's application; provided, however, that no more than five signs shall be required under this section.

(Ord. No. 2006-013, § 5(10-86), 5-22-2006)

Motor power for all operations after completion of drilling operations shall be by electricity or properly muffled gas, gasoline, or diesel engines. The muffler shall be approved by the city council. Specialty mufflers such as hospital zone mufflers may be required or the engines may be so designed or configured on the site as to attenuate anticipated noise during operation of the well.

(Ord. No. 2006-013, § 5(10-87), 5-22-2006)

Production equipment and well sites must be kept in a clean and sanitary condition and free of high grass, weeds, trash, and unsightly materials. Temporary bathroom facilities in compliance with other provisions of this Code, therefore, must be provided for all personnel at the drill site.

(Ord. No. 2006-013, § 5(10-88), 5-22-2006)

Salt water, or other produced water, shall be stored in a closed steel or fiberglass tank, and shall be disposed of in accordance with the rules and regulations of the applicable state and federal authorities.

(Ord. No. 2006-013, § 5(10-89), 5-22-2006)

All operations shall be conducted in such a manner as to eliminate, as far as practicable, according to accepted engineering practices, dust and noxious odors.

(Ord. No. 2006-013, § 5(10-90), 5-22-2006)

Residue and waste oil and basic sediment shall not be burned, but shall be transported outside the city limits for disposal.

(Ord. No. 2006-013, § 5(10-91), 5-22-2006)

No mud, water, waste oil, slush or other waste matter may escape into the alleys, streets or other premises.

(Ord. No. 2006-013, § 5(10-92), 5-22-2006)

Upon the abandonment or plugging of a well, the permittee shall immediately clean the site, level all firewalls and restore the same to its original condition, as nearly as practicable.

(Ord. No. 2006-013, § 5(10-93), 5-22-2006)

If required by the city council when the permit is granted, the permittee shall maintain a security person or shall have other personnel on-duty on the premises at all times, such that the premises shall never be without the direct visual observation and supervision of an individual designated with such authority.

(Ord. No. 2006-013, § 5(10-94), 5-22-2006)

(a)

It shall be unlawful to operate or permit to be operated in connection with the drilling, completing, equipping, or abandoning of a well any engine, compressor or motor-driven machinery of any type which creates a sound level greater than 72 dB(A) when measured at a distance of 300 feet from the engine or measured immediately adjacent to any inhabited building not used in the drilling operations and located within the 300-foot distance.

(b)

It shall be unlawful to operate or permit to be operated in connection with the operation of a producing well any engine, compressor or motor-driven machinery of any type which creates a sound level greater than 65 dB(A) when measured at a distance of 300 feet from the engine or measured immediately adjacent to any inhabited building located within the 300-foot distance.

(c)

Sound level measurements shall be made with a sound level meter conforming at a minimum to the requirements of American National Standards Institute S1.4-1971 type 2 or its successor publication and set to an A-weighted response.

(Ord. No. 2006-013, § 5(10-95), 5-22-2006)

No person may vent or permit to be vented any gas material to the atmosphere in order to pump oil, or for other acceptable reasons, unless the prior approval of the mayor or his designee has been obtained. The oil and gas official shall investigate the circumstances necessitating such venting, and shall approve same unless such venting would present a threat to public health or would otherwise be in violation of this article or state or federal law. Failure to notify and obtain approval from the mayor prior to venting is a class C misdemeanor. This remedy is cumulative of any other remedy.

(Ord. No. 2006-013, § 5(10-96), 5-22-2006)

Each permittee shall provide the fire department a current inventory of hazardous materials used on the site. All such hazardous materials shall have the appropriate diamond shape and number clearly visible delineating the material contained therein.

(Ord. No. 2006-013, § 5(10-97), 5-22-2006)

Each producing well must have a shutoff valve or switch located thereon, clearly painted in a unique identifiable color. The permittee shall file with the city secretary a statement indicating the color of the valve or switch for each well. The valve or switch must, upon actuation, be capable of terminating all production activity from the well. The fire department is authorized, in its discretion, to actuate such valve or switch in the event of any emergency.

(Ord. No. 2006-013, § 5(10-98), 5-22-2006)

Each permittee shall provide the fire chief the opportunity to install a separately keyed lock or other similar device to allow the city access to the well site and pipeline pump station during an emergency.

(Ord. No. 2006-013, § 5(10-99), 5-22-2006)

(a)

The drill site and all roads and drives providing vehicular access during the drilling process shall be maintained in such a manner as to prevent dirt, dust, mud, or other similar materials from such roads and well sites from being deposited by the elements into the air or upon any public street, sidewalk or other public property of another person. Access roads from the public right-of-way must be constructed of materials acceptable to the city council in accordance with the permit application.

(b)

If the well is completed as a producing well and actual production commences, the permittee shall construct and maintain private roads if in new locations, approved in advance by the city council, sufficient to provide vehicular access from the public road, the entrances to which shall be approved by the city council. Such private roads, at a minimum, shall be of a length and constructed of such material as shall be acceptable to the city council, including crushed rock, oil base, or other similar material, and shall be maintained free of dust, dirt, and mud, and in such manner as to prevent the deposit of dust, dirt, and mud on, along or upon any public street, sidewalk or other public property, or upon the property of another person. That portion of the private roadways located within the right-of-way of a public street shall comply with construction standards for commercial driveways set forth in other portions of this Code. Such roadways shall be so maintained until such well is plugged and abandoned.

(Ord. No. 2006-013, § 5(10-100), 5-22-2006)

To protect the good government of the city, the following conditions shall apply to all operating oil and gas wells and storage wells within the city:

(1)

Each well located within 2,500 feet of a habitable structure including, but not limited to, residences, schools, churches, commercial and retail establishments, and industrial sites, or within 400 feet of any adjoining property or within 200 feet of any public street, roadway, or alley, shall have the wellhead, pumping mechanism, condensate tank, storage tank, and compressor fully enclosed with a fence and associated locked gate conforming to the fencing requirements herein for drilling a well.

(2)

Each well site enclosed within a berm, levy, or other protective structure shall be fitted with a drainpipe and drain valve. Following release of rainwater from the containment area, it shall be unlawful to fail to close the drain valve.

(3)

Each well shall be fitted with an operational high/low shut-in device maintained in working condition.

(4)

Each well shall be fitted with a shutoff valve or switch as provided previously in section 42-502 for drilling a well.

(5)

Each well shall have posted at a prominent point on the well site, a sign bearing the name and address of the owner or operator of the well and the telephone number of a contact person available at all times to call in event of emergency.

(Ord. No. 2006-013, § 5(10-101), 5-22-2006)

The operator shall notify the mayor within 24 hours in advance of any recompletions, major stimulations or major repairs of existing wells.

(Ord. No. 2006-013, § 5(10-102), 5-22-2006)

Each well, pipeline or new industrial activity owner shall notify the city within 30 days of abandonment; and shall file with the city secretary proof of compliance with abandonment procedures as specified in this article and in regulations of the state railroad commission.

(Ord. No. 2006-013, § 5(10-103), 5-22-2006)

Within one year of the effective date of the ordinance from which this article is derived, barriers designed to prevent unintended impact by vehicles and equipment shall be placed around abovegrade hydrocarbon piping, hydrocarbon process equipment, and surface hydrocarbon storage vessels in areas where vehicles may normally be expected to travel.

(Ord. No. 2006-013, § 5(10-104), 5-22-2006)

(a)

The incident report shall contain the following information in accordance with section 42-487:

(b)

The following incident report is filed with the city in accordance with the provisions of section 42-487. The information contained herein has been investigated by the undersigned and found to be true, correct, and accurate. (Provide all applicable information and attach such documents and exhibits as are necessary to provide the information required.)

DATED this, the _______ day of ________, 20___.

(Ord. No. 2006-013, § 5(10-105), 5-22-2006)

The purpose of this division is to consolidate enforcement procedures for activities regulated by this article to the end of minimizing public confusion and maximizing governmental efficiency.

(Ord. No. 2006-013, § 5(10-110), 5-22-2006)

No well shall be drilled or produced, no pipeline construction shall be begun, and no new industrial activity shall be undertaken unless the permittee, during all periods of operation, maintains on file with the city secretary a current certificate evidencing public liability insurance including contractual liability covering bodily injuries and property damage naming the permittee and the city as coinsureds in full force and effect with the minimum limits set by the city council when the permit was granted, but at least in the amounts as currently established or as hereafter adopted by resolution of the city council from time to time.

(Ord. No. 2006-013, § 5(10-111), 5-22-2006)

(a)

If a permit is issued, no drilling operations or pipeline construction shall begin, and no new industrial activity shall be undertaken until the permittee shall file with the city secretary a performance bond in the principal sum as set by the city council which amount shall be at least as currently established or as hereafter adopted by resolution of the city council from time to time. The bond shall be executed by the permittee as principal and by at least one good and sufficient corporate surety in favor running to the city for the benefit of the city and all persons concerned, and conditioned that the permittee shall comply with the terms and conditions of this article in the drilling and operation of the well, pipeline or new industrial activity. The city council shall have the right to approve or reject any surety including the terms and conditions of any bond and shall be the final authority for approval of sureties and the terms and provisions of any and all surety bonds.

(b)

In lieu of a performance bond the applicant, at its discretion, may tender to the city secretary record of a certificate of deposit, cash, or an irrevocable letter of credit from a federally insured bank, being in the same principal sum as set by the city council for the performance bond. Such deposit shall be under the same conditions as are established by the city council for a performance bond.

(c)

Such bond or letter of credit shall become effective on the date it is filed with the city secretary and remain in force and effect for such period as shall be set by the city council. In addition, the bond or letter of credit will be conditioned that the permittee will promptly pay all fines, penalties, and other assessments imposed upon the permittee by reason of the breach of any of the terms, provisions and conditions of this article; that the permittee will promptly restore the streets and sidewalks and other public property of the city which may be disturbed or damaged in the operations to their former condition; that the permittee will promptly clear all premises of all litter, trash, waste and other substances used, allowed or occurring in the drilling or producing operations, and will, after abandonment, grade, level and restore such property to the same surface condition, as nearly as possible, as existed when operations for the drilling first commenced; and that the permittee will indemnify and hold the city harmless from any and all liability growing out of or attributable to the granting of such permit. The city council, after a hearing, shall have the right at any time to deem a permittee's bond or letter of credit to be insufficient. The city council shall have the right at any time to require an additional or substitute bond, revisions in the bond or the terms thereof, or substitution of sureties or issuers thereof.

(d)

If the proceeds of the cash bond or other security required herein shall be applied to remedy noncompliance as provided in this division, the permittee shall be required immediately to provide additional security of a like kind to maintain at all times the level of security and terms thereof as determined by the city council and required under this division. Failure to maintain security at all times as required under this division shall constitute cause for revocation of the permit as provided for herein.

(e)

If, after completion of a well, the permittee has complied with all the provisions of this article, such as removing the derrick, clearing the premises, etc., the permittee may apply to the city to have the bond or other security reduced for the remainder of the time the well produces; provided that the permittee has met all the requirements of any permit hereunder, has otherwise acted in full compliance with this article, and provided that the permittee has submitted a bond in the new principal amount in conformance with the provisions of such determination made by the city council and under the terms and provisions of this article.

(f)

It shall, in addition to the forfeiture thereof as herein provided, be unlawful for the principal of any bond filed in accordance with this division to violate any condition of such bond.

(Ord. No. 2006-013, § 5(10-112), 5-22-2006)

The mayor may, following such reasonable notice to a permittee under this article as he determines is justified, based on the individual circumstances, apply the proceeds of any financial security to the cost of curing noncompliance under this article.

(Ord. No. 2006-013, § 5(10-113), 5-22-2006)

(a)

The applicant for a permit shall, by filing an application for a permit, be deemed to agree to allow the oil and gas official or any representative of the city the right at any time to inspect any well, pipeline, or new industrial activity site to ensure proper operation and/or maintenance in accordance with appropriate city, state or federal regulations, and to identify nuisances or other problems related to such wells or pipelines. The oil and gas official or other representative of the city shall have the right to conduct any inspections at any time; however, every effort should be made to provide appropriate notice whenever such notice is practicable or feasible.

(b)

In addition to the right of inspection as provided in subsection (a) of this section, the oil and gas official or any other representative of the city shall have the right to take any action that shall be deemed necessary and appropriate to remedy any violation.

(Ord. No. 2006-013, § 5(10-114), 5-22-2006)

If the permittee fails to perform properly its obligations in this article or under applicable state or federal law or regulation, including relocating the pipeline when necessary, the city may, at its option, after reasonable notice, perform or cause to be performed, such work as it deems necessary for the safe operation of its streets and utilities. In such event, the permittee shall pay, within 15 days after the bill therefor has been rendered to the permittee, the cost so incurred by the city. Such cost may include, but is not limited to, consulting, engineering, cleanup and disposal, and legal costs. Regardless of whether the city performs the permittee's obligations, the permittee is liable for loss or damage occasioned by its own nonperformance. All pipelines must be tested before being put into service at a minimum of 1½ times operating pressure and held for a period of time as required by DOT regulations.

(Ord. No. 2006-013, § 5(10-115), 5-22-2006)

The permittee shall promptly reimburse the city for any expense it incurs to support the permittee's work, such as traffic control assistance. All barricading, channelizing, and other traffic control procedures must comply with the requirements of the Texas Manual of Uniform Traffic Control Devices (latest edition). Amber flashing lights are required on any barricades left overnight.

(Ord. No. 2006-013, § 5(10-116), 5-22-2006)

The permittee shall indemnify the city against all loss or expense the city may incur or become liable for as a result of the construction, maintenance and use or presence of the pipeline including, but not limited to, property damage, personal injury or death, liens of any character, taxes or assessment of any kind, fines or penalties imposed by a state or federal regulatory authority or court, or legal costs. The permittee shall assume the defense of all claims resulting from the pipeline whether they are directed against the permittee or the city, and shall pay all associated costs including, but not limited to, attorney's fees, investigator's fees, consulting fees, litigation expense, settlements and judgment awards.

(Ord. No. 2006-013, § 5(10-117), 5-22-2006)

The purpose of this division is to consolidate revocation procedures for activities regulated by this article to the end of minimizing public confusion and maximizing governmental efficiency.

(Ord. No. 2006-013, § 5(10-120), 5-22-2006)

If, after a permit has been issued, a majority of the city council finds that conditions have so materially and detrimentally changed since the permit was issued that the original approval is no longer effective, the city council may revoke the permit.

(Ord. No. 2006-013, § 5(10-121), 5-22-2006)

(a)

The oil and gas official shall file with the city secretary such documents, pleadings or writings as the official may deem appropriate which shall allege and set out such failures, possible failures, or other circumstances and conditions warranting revocation of a permit.

(b)

The city secretary shall schedule at the earliest possible date a regular or special meeting of the city council to consider what action shall be taken. The city secretary shall give notice to the permit holder at the address set out on the permit of the meeting or in such other way as the city secretary deems necessary and desirable to give notice.

(c)

The city council shall hold a hearing at the time noticed or at such subsequent times as shall be deemed necessary and desirable and the hearing shall be carried forward from day to day in order for such permit hearing to be held and concluded.

(d)

The city council shall proceed at such hearing in any manner that it deems desirable. The permit holder shall be entitled to be heard and to present such factual evidence, documents or other information as deemed necessary by the permit holder.

(e)

If the city council shall determine that such permit is to be revoked, conditioned, or suspended, temporarily or permanently, the city secretary shall then provide written notice to the permittee by certified mail, return receipt requested, within three days from the date of action by the city council, which shall notify the applicant of the actions taken.

(f)

Failure of the city secretary to provide notice and/or failure of the permittee to receive three days' notice as provided in subsection (e) of this section shall not affect the validity or enforceability of any order issued by the city council in revocation of the permit, and such order shall be final and binding and fully enforceable when entered by the city council by ordinance duly adopted by a majority vote of the city council.

(Ord. No. 2006-013, § 5(10-122), 5-22-2006)

(a)

The permittee shall cease all activities permitted under the permit within three days of the date the notification of revocation is received. Revocation of the permit is effective beginning the fourth day from the day the permittee receives notice of the revocation.

(b)

Revocation is cumulative of any other remedy.

(c)

A former permittee may apply for reissuance of the permit if the conditions that led to revocation are cured.

(Ord. No. 2006-013, § 5(10-123), 5-22-2006)