The following words, terms and phrases, without regard to whether the defined terms are capitalized when used, shall have the meanings ascribed to them in this section, unless the context clearly indicates or requires a different meaning. All technical or oil and gas industry words or phrases used in this article and not specifically defined in this section shall have that meaning customarily attributable thereto by prudent operators in the oil and gas industry. Except as otherwise provided, these definitions shall be applicable only to this article.

City means the City of Mustang, Oklahoma.

Commercial disposal well means a well where the owner/operator receives and disposes of produced water or any other deleterious substance from multiple well owners/operators and receives compensation for these services and where the owner/operator's primary business objective is to provide these services. This definition does not include those private wells established for on-site disposal of produced water from wells within a common unit established by the Oklahoma Corporation Commission.

Completion operations or completion means that portion of the drilling activities that includes the work that is performed after initial drilling activities and prior to production activities for the purpose of optimizing the production of a well.

Deleterious substance means any chemical, saltwater, oilfield brine, waste oil, waste emulsified oil, basic sediment, mud or injurious substances produced or used in the drilling, development, producing, transportation, refining and processing of oil, gas or condensate.

Drilling means the process by which the earth is bored to create a pathway to formations containing hydrocarbons to allow for their production to the surface.

Drilling activities means those activities commonly performed at the drilling and production site necessary or incidental to getting hydrocarbons to market, including completion, re-drilling, re-completion or re-working operations, but not including production activities or establishment of a commercial disposal well as defined in this article.

Drilling and production site means the area dedicated to all gas well drilling or production activities, or both, including the drilling and production area, all structures, dehydrators, parking areas, security cameras, lighting, tanks, tank battery (or any other tank grouping area), drilling rigs, separators, compressors as associated with gathering lines, perimeter walls, utilities, and all other features or objects contemplated for use during and after gas well drilling or production activities. Excluded from this definition are gathering and transmission lines and compressor stations and commercial disposal wells as defined in this article.

EPA means the United States Environmental Protection Agency or successor agency.

Gas means gas or natural gas, as such terms are used in the rules, regulations, or forms of the Oklahoma Corporation Commission. Typically, a naturally-occurring gaseous substance primarily composed of methane and other light, gaseous hydrocarbons.

Gas production means the phase that occurs after successful exploration, drilling and development involving operations including, but not limited to, gas wells, tanks, dehydrators, separators, mud pits, ponds, tank batteries or associated mechanical equipment, and during which hydrocarbons are extracted from the gas field, but does not include the operation of a commercial disposal well as defined in this article.

Gas well means any well drilled for the production of gas or classified as a gas well under Oklahoma Statutes or Oklahoma Corporation Commission Regulations.

Hazardous materials management plan means the hazardous materials management plan and hazardous materials inventory statements required by the fire code.

OCC means "Oklahoma Corporation Commission" or successor agency.

ODEQ means "Oklahoma Department of Environmental Quality" or successor agency.

Oil means oil or crude oil as such terms are used in the rules, regulations, or forms of the Oklahoma Corporation Commission.

Oil and gas inspector or inspector means an inspector designated by the city that is responsible for primary enforcement of this article.

Oil production means the phase that occurs after successful exploration, drilling and development involving operations including, but not limited to, oil wells, tanks, dehydrators, separators, mud pits, ponds, tank batteries or associated mechanical equipment, and during which hydrocarbons are extracted from the oil field, but does not include the operation of a commercial disposal well as defined in this article.

Operator means the person(s) in charge and in control of drilling, maintaining, operating, pumping, or controlling any well or pipeline including, without limitation, a unit operator.

Pit means a temporary or permanent containment for circulated fluids and drilling products or waste.

Plugging and abandonment means "plugging" as defined by the Oklahoma Corporation Commission and includes the plugging of the well, abandoned, orphaned or otherwise, and restoration of the drilling and production site as required by this article.

Pollution means the contamination or other alteration of the physical, chemical or biological properties of any natural waters of the city, or such discharge of any liquid, gaseous or solid substance into any water of the city as will or is likely to create a nuisance or render such waters harmful or detrimental or injurious to public health, safety or welfare, to domestic, commercial, industrial, agricultural, recreational or other beneficial uses, or to livestock, animals or aquatic life.

Producing well means a well that has been completed and is presently capable of yielding oil or gas.

Production activities or production means the extraction of hydrocarbons from a well after drilling and completion, but does not include the operation of a commercial disposal well as defined in this article.

Production site means that area of the drilling and production site utilized for production activities after well completion.

Protected use means any dwelling, church, public park, public library, medical facility, pre-kindergarten, kindergarten or elementary, middle or high school, public pool, senior center, public recreation center or licensed business.

Separation boundary means the location of the property line of the nearest protected use, nearest lot line of a previously platted residential subdivision, or closest property line of an adjoining use that is not defined as a protected use, as measured from the drilling and production site.

Tank means a natural or manmade container, covered or uncovered, in which to store, contain or mix liquids or hydrocarbons used or produced in conjunction with the drilling, stimulation or production operations of an oil or gas well.

Well, unless specifically qualified, means any hole or bore drilled to any depth for the purpose of producing oil, gas or liquefied petroleum matter or for the injection or disposal of any of such materials.

(Ord. No. 1158, § 2, 4-3-2018)

(a)

Findings. The regulations contained in this article are supported by the following findings of fact:

(1)

Oil and gas drilling and production is an important component of the Mustang area economy.

(2)

Oil and gas well drilling and production activities create conditions that potentially threaten the health, safety and general welfare of persons residing or working on property in proximity to such operations.

(3)

Oil and gas well drilling and production activities, in the absence of local regulatory controls, may generate noxious aerial emissions, introduce contaminants into groundwater, emit high noise or light levels, produce large volumes of dust, congest local streets, present fire or chemical spill hazards and produce other deleterious effects, all of which fall disproportionately on adjacent land uses, and which can result individually or cumulatively in injury to persons or damage to property and inhibit the quiet peace and enjoyment of the surface uses of real property in the vicinity of such operations.

(4)

The proliferation of oil and gas well pad sites within the city creates conflicts between such development and other existing and future surface uses of real property within the city. To assure the compatibility of residential, commercial, industrial and agricultural uses with oil and gas well development, it is necessary for the city to regulate the location of oil and gas well operations relative to other surface uses of real property within the city consistent with the right of mineral owners to reasonably access subsurface resources.

(5)

The city recognizes that the State of Oklahoma regulates oil and gas well drilling and production activities. The regulations in this article are intended to supplement such standards and additionally implement compatible local measures that assure the health, safety and general welfare of the city's residents and businesses.

(b)

Purpose and intent. In order to protect the public health, peace, safety and welfare of the city and its residents, this article is created to establish reasonable and uniform limitations, safeguards and controls for the drilling and operation of wells and production of oil, gas and other hydrocarbon substances within the corporate limits of the city, and to provide that this land use may be conducted in harmony with other uses within the city. The provisions set forth in this article shall be considered as minimum requirements and shall not relieve any person from any duty imposed by law to use reasonable care and take reasonable precautions for the safeguarding of people and the protection of and noninterference with property rights.

(c)

Authority. This article is adopted pursuant to authority vested under the constitution and laws of the State of Oklahoma and the Mustang City Charter. Each authorization identified in this article shall be construed as an exercise of the city's police, nuisance, and zoning powers pursuant to the Charter and Oklahoma Statutes.

(Ord. No. 1158, § 2, 4-3-2018)

This article shall not apply to any producing oil or gas well located within the boundaries of the city on the effective date of this article. Such wells shall remain subject to the requirements of any ordinance that was in effect at the time of drilling.

(Ord. No. 1158, § 2, 4-3-2018)

It shall be unlawful and an offense for any person to violate or neglect to comply with any provision of this article, irrespective of whether or not the verbiage of each section of this article contains the specific language that such violation or neglect is unlawful and is an offense. Any person who shall violate any of the provisions of this article, or any of the provisions of a drilling and operating permit issued pursuant to this article, or any condition in a specific use permit, or any condition of the bond filed by the permittee pursuant to this article, or who shall neglect to comply with the terms of this article, shall be punished as provided in section 1-8. Each violation of each separate provision of this article, or of the permit, or of the bond, shall be considered a separate offense, and each day's violation of each separate provision thereof shall be considered a separate offense. In addition to such penalties, it is further provided that the city council, at any regular or special session or meeting thereof, may, provided ten days' notice has been given to the permittee that revocation is to be considered at such meeting, revoke or suspend any permit issued under this article and under which drilling or producing operations are being conducted if the permittee thereof has violated any provisions of the permit or the bond or this article.

(Ord. No. 1158, § 2, 4-3-2018; Ord. No. 1218, § 3, 2-2-2021)

(a)

It is unlawful and an offense for any person to drill or put down one or more oil or gas wells upon any one permit area unless a permit therefor shall have been first approved by the city council for each individual well.

(b)

No permit shall be issued for any subsequent well to be placed on a previously approved drilling and production site unless approved by the city council according to the procedures set forth in section 74-71, except that no ownership list shall be required or application fee paid.

(c)

No public notice shall be required for additional wells on an approved drilling and production site.

(Ord. No. 1158, § 2, 4-3-2018)

It is unlawful and an offense for any person to drill or put down any oil or gas well or to erect, maintain, operate or permit to exist any such well, structures, equipment, pipelines, machinery, tanks or other appurtenances in violation of any of the ordinances of the city or the laws of the state, or in violation of any of the regulations, rules or orders of the OCC.

(Ord. No. 1158, § 2, 4-3-2018)

In order to preserve and safeguard the life, property, public peace, safety and general welfare of the city and the citizens thereof, there are established certain non-drilling territories in which no well shall be drilled or put down for the production of oil and/or gas, which territories are particularly described as follows:

(1)

No well shall be drilled or put down for the production of oil and/or gas or injection of produced fluids at any point less than a distance of 660 feet from the separation boundary of any protected use or any lot located within a previously platted residential subdivision.

(2)

No oil or gas wells shall be permitted to be drilled in any city park or publicly held property.

(3)

No well shall be drilled or put down for the production of oil and/or gas or injection of produced fluids at any point less than a distance of 400 from the nearest outside wall of any structure not defined as a protected use.

(4)

All drilling and completion operations proposed within a FEMA 100-year designated floodplain shall comply with the adopted flood hazard regulations and shall be fully floodproofed.

(Ord. No. 1158, § 2, 4-3-2018)

Any drilling of oil and gas wells or production shall be subject to the following requirements:

(1)

All oil operations, drilling and production operations shall be conducted in such a manner as to eliminate, as far as practicable, dust, noise, vibration or noxious odors, and shall be in accordance with the best accepted practices incident to exploration for, drilling for and production of oil, gas and other hydrocarbon substances. Proven technological improvements in exploration, drilling and production methods shall be adopted as they become from time to time available, if capable of reducing factors of nuisance and annoyance.

(2)

All engines shall be equipped with adequate mufflers. Exhaust from any internal combustion engine or compressor, stationary or mounted on wheels, used in connection with the drilling of any well or for use on any production equipment shall not be discharged into the open air unless equipped with a muffler or equivalent control device constructed of noncombustible materials sufficient to suppress noise and disruptive vibrations and prevent the escape of obnoxious gases, fumes or ignited carbon or soot.

(Ord. No. 1158, § 2, 4-3-2018)

(a)

Drilling/completion mitigation plan. The drilling/completion mitigation plan shall describe all temporary measures and controls to be established by the operator to minimize the effects of noise, dust, odors, chemicals, and other negative impacts of oil and gas drilling on adjoining properties emanating from the drilling and production site during the drilling and completion of the well.

The drilling/completion mitigation plan shall include a noise abatement study which shall articulate how compliance with section 74-106 shall be accomplished during drilling and production operations. The study shall:

(1)

Identify operation noise impacts;

(2)

Provide documentation establishing the ambient noise level prior to construction of any wellhead, compressor or compression facility, said ambient level being based upon a continuous 72-hour period that includes one 24-hour period over a Saturday or Sunday; and

(3)

Detail how the impacts will be mitigated, based upon consideration of specific area characteristics, including but not limited to the following:

a.

Nature and proximity of adjacent development, location and type;

b.

Seasonal and prevailing weather patterns, including wind directions;

c.

Vegetative cover on or adjacent to the site; and

d.

Topography.

The drilling/completion mitigation plan may be submitted in the form of a site diagram, provided sufficient description of the mitigation and control measures are provided, including references to applicable OCC regulations and/or this article.

No specific use permit shall be issued until a drilling/completion mitigation plan is approved by the planning commission and no drilling activities shall commence until said plan is fully implemented by the operator at the drilling and production site.

(b)

Production mitigation plan. The production mitigation plan shall describe the location, by metes and bounds description, and dimensions of the production site. Said plan shall additionally describe all permanent measures and controls to be established by the operator to minimize the effects of noise, dust, odors, chemicals, and other negative impacts of oil and gas production on adjoining properties emanating from the production site during the production life of the well. The plan may be submitted in the form of a site diagram, provided sufficient description of the mitigation and control measures are provided, including references to applicable OCC regulations and/or this article.

The production mitigation plan shall be filed with the application for a specific use permit. It shall be fully implemented by the operator within 30 days of completion. The plan may be amended upon application of the operator and approval by the planning commission after notice and hearing in accordance with section 74-72.

(c)

Site reclamation plan. The site reclamation plan shall describe both closure and post-closure measures and controls, including plugging or abandonment, specifically setting forth how the final site closure will be achieved, a detailed description of the closure methods, and any subsequent activities necessary to minimize the need for drilling and production site care after closure.

(Ord. No. 1158, § 2, 4-3-2018; Ord. No. 1218, § 7, 2-2-2021)

(a)

No operation conducted on the drilling and production site shall create any noise which causes an exterior noise level greater than 75 dB measured at the location of a protected use.

(1)

If a complaint is received by either the operator or the city from the occupant of any protected use, the operator shall, within 24 hours of notice of the complaint, continuously monitor for a 72-hour period the exterior noise level generated by operations at the location of the protected use that is the source of the complaint.

(2)

Acoustical blankets, sound walls, mufflers, landscaping or other alternative methods may be used to ensure compliance. All soundproofing shall comply with accepted industry standards and applicable fire codes.

(3)

The sound level meter used in conducting noise evaluations shall meet the American National Standard Institute's Standard for sound meters or an instrument and the associated recording and analyzing equipment which will provide equivalent data.

(4)

A citation may be immediately issued for failure to comply with the provisions of this subsection, and the operator shall immediately bring the noise level into compliance. However, if the operator is in compliance with the approved drilling/completion mitigation plan, and a violation still occurs, the operator will be given 24 hours from notice of noncompliance to correct the violation from an identified source before a citation is issued. Additional extensions of the 24-hour grace period may be granted in the event that the source of the violation cannot be identified after reasonable diligence by the operator.

(b)

A sound wall that is 16 feet in height with a rating of STC-25 shall be installed on each side of the drilling and production site that is 1,000 feet or less from a protected use.

(c)

Exhaust from any internal combustion engine or compressor, stationary or mounted on wheels, used in connection with the drilling of any well or for use on any production equipment shall not be discharged into the open air unless equipped with a muffler or equivalent control device constructed of noncombustible materials sufficient to suppress noise and disruptive vibrations and prevent the escape of obnoxious gases, fumes or ignited carbon or soot.

(d)

The operator shall minimize the escape of toxic, noxious or offensive odors, fumes, and emissions from the drilling and production site during drilling and completion operations. Gas emissions shall be shielded from the direction of any protected use located adjacent to the drilling and production site. Air quality at the separation boundary of an adjoining protected use shall meet applicable EPA or ODEQ standards during such operations. The oil and gas inspector may require the installation of air quality monitoring devices at the separation boundary upon receipt of a complaint or whenever conditions warrant such action. The cost of monitoring may be assessed against the operator.

(e)

The operator shall minimize the escape of dust from the drilling and production site during drilling and completion operations. Clean water shall be applied to the drilling and production Site and all unpaved points of access to said site to prevent dust migration to adjoining properties, as necessary. The operator may utilize a chip seal or equivalent best management practice approved by the city in lieu of watering for dust mitigation.

(f)

All electric lines to drilling and production facilities shall be located in a manner compatible to those already installed in the surrounding area.

(g)

No operator shall excavate or construct any lines for the conveyance of fuel, water, or minerals on, under, or through the streets or alleys or other land of the city without an easement or right-of-way agreement from the city.

(h)

The operator shall utilize secondary containment measures in accordance with OCC regulations. In the absence of such regulations, outside storage areas shall be equipped with a secondary containment system designed to fully contain a spill quantity equal to the aggregate rated capacity of all tanks and vessels located on the drilling and production site. Secondary containment shall be designed to include the volume of a 24-hour rainfall as determined by a 25-year storm and provision shall be made to drain accumulations of ground water and rainfall.

(i)

The city council may in a specific use permit designate specific routes to and from the drilling and production site for trucks and other vehicles used in conjunction with drilling and completion operations to minimize excessive wear and tear or damage to city streets.

(Ord. No. 1158, § 2, 4-3-2018; Ord. No. 1218, § 8, 2-2-2021)

(a)

All production operations proposed within the FEMA 100-year designated floodplain shall comply with the adopted flood hazard regulations and shall be fully floodproofed.

(b)

The production site shall be of sufficient size and dimension to permit the entry and safe movement of emergency and fire vehicles.

(c)

No operation conducted on the production site shall create any noise which causes an exterior noise level greater than 75 dB when measured at the location of a protected use.

(1)

The exterior noise level generated by operations at the production site may be monitored by the city for compliance. If a complaint is received by either the operator or the city from the occupant of any protected use, the operator shall, within 24 hours of notice of the complaint, continuously monitor for a 72-hour period the exterior noise level generated by operations at the production site at the protected use that is the source of the complaint.

(2)

Acoustical blankets, sound walls, mufflers, landscaping or other permanent methods may be used to mitigate noise emanating from the production site. All soundproofing shall comply with accepted industry standards and applicable fire codes.

(3)

The sound level meter used in conducting noise evaluations shall meet the American National Standard Institute's standard for sound meters or an instrument and the associated recording and analyzing equipment which will provide equivalent data.

(4)

A citation may be immediately issued for failure to comply with the provisions of this subsection, and the operator shall immediately bring the noise level into compliance. However, if the operator is in compliance with the approved production mitigation plan, and a violation still occurs, the operator will be given 24 hours from notice of noncompliance to correct the violation from an identified source before a citation is issued. Additional extensions of the 24-hour grace period may be granted in the event that the source of the violation cannot be identified after reasonable diligence by the operator.

(d)

The motive power for all well pumping equipment shall be electricity. No diesel-powered equipment shall be used. Motive power for all production operations shall be by utility-provided electricity. All electric lines to drilling and production facilities shall be located in a manner compatible to those already installed in the surrounding area.

(e)

The operator shall minimize the escape of toxic, noxious, or offensive odors, fumes, and emissions from the production site during production operations. Gas emissions shall be shielded from the direction of any protected use located adjacent to the production site. Air quality at the separation boundary of an adjoining protected use shall meet applicable EPA or ODEQ standards during production operations. The oil and gas inspector may require the installation of air quality monitoring devices at the separation boundary upon receipt of a complaint or whenever conditions warrant such action. The cost of monitoring may be assessed against the operator.

(f)

The operator shall minimize the escape of dust from the production site during production operations. Clean water shall be applied to the production site and all unpaved points of access to said site to prevent dust migration to adjoining properties, as necessary. The operator may utilize a chip seal or equivalent best management practice approved by the city in lieu of watering for dust mitigation.

(g)

The operator shall utilize secondary containment measures in accordance with OCC regulations. In the absence of such regulations, the operator shall construct a secondary containment system at the production site designed to fully contain a spill quantity equal to 150 percent the aggregate rated capacity of all tanks and vessels located on the production site. Secondary containment shall be designed to include the volume of a 24-hour rainfall as determined by a 25-year storm and provision shall be made to drain accumulations of groundwater and rainfall.

(h)

The production site shall remain free of all weeds, rubbish, brush, trash or debris at all times.

(i)

The operator shall remove or cause to be removed all contamination and associated waste materials after any spill, leak or discharge. Clean-up operations shall begin immediately.

(j)

The operator shall close the production site in a manner that minimizes the need for care after closure. To achieve this requirement, the site shall be reclaimed to the condition identified on the site reclamation plan, as nearly as practicable.

(Ord. No. 1158, § 2, 4-3-2018)

No person shall deposit, drain or divert into or upon any public highway, street or alley, drainage ditch, storm drain, sewer, gutter, paving, creek, river, lake or lagoon any oil or oil liquid with petroleum content or any mud, rotary mud, sand, water or saltwater, or in any manner permit, by seepage, overflow, deliberate release or otherwise, the escape of any of such substances from any property owned, leased or controlled by such person.

(Ord. No. 1158, § 2, 4-3-2018)

Within 90 days of completion of the drill site or erection of storage tanks, whichever occurs first, the production site and all related equipment and storage facilities shall be screened with an opaque permanent fencing sufficient to secure the area where production activities are conducted and to protect adjoining uses from the deleterious effects of noise, light, dust, and other nuisances associated with production activities, consistent with the standards set forth in this Code. The presumptive minimum height of such fencing shall be eight feet. Provided, however, the minimum height may be reduced to not less than six feet if trees or similar vegetation are planted in the separation area between the production site and any adjoining protected use.

(Ord. No. 1158, § 2, 4-3-2018)

No person shall permit any lights located on any site to be directed in such a manner so that they shine directly on roads, adjacent property or property in the general vicinity of the site. To the extent practicable, and taking into account safety considerations, site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within 300 feet.

(Ord. No. 1158, § 2, 4-3-2018)