Northlake City Zoning Code
ARTICLE 13
Oil and Gas Well Drilling Regulations
§ 13.1 Purpose and Intent.
The exploration, development and production of oil or gas in the Town is an activity which necessitates reasonable regulation to ensure that all property owners, mineral and otherwise, have the right to peaceably enjoy their property and its benefits and revenues. It is hereby declared to be the purpose of this Ordinance to establish reasonable and uniform limitations, safeguards and regulations for present and future operations related to the exploring, drilling, developing, producing, transporting and storing of oil or gas and other substances produced in association with oil or gas within the Town to protect the health, safety and general welfare of the public, minimize the potential impact to property and mineral rights owners, protect the quality of the environment and encourage the orderly production of available mineral resources.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.2 Definitions.
All technical industry words or phrases related to the drilling and production of oil and gas wells not specifically defined shall have the meanings customarily attributable thereto by prudent operators in the oil and gas industry. For the purposes of this UDC, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
Any well in which production casing has been run but which has not been operated for 180 days, and any well in which no production casing has been run and for which drilling operations have ceased for thirty (30) consecutive days[.]
"Abandonment" as defined by the Railroad Commission and includes the plugging of the well and restoration of the drill site as required by this UDC.
A person to whom a permit or certificate for the drilling, operation and production of a well, or the installation or operation of a pipeline, is issued under this UDC, including, but not limited to, his or her heirs, legal representatives, successors or assigns.
That portion of a lot where the primary structure may be placed. This does not include areas where accessory buildings are allowed.
The area used for drilling, completing, or reworking a well.
Any digging or boring of a new well to develop or produce oil or gas or to inject gas, water, or any other fluid or substance into the earth. Drilling means and includes the re-entry of an abandoned well. Drilling does not mean or include the re-entry of a well that has not been abandoned.
Geologic or geophysical activities, including, but not limited to surveying and seismic exploration, related to the search for oil, gas, or other subsurface hydrocarbons.
The Fire Code adopted by the Town, as amended.
Gas or natural gas, as such terms are used in the rules, regulations, or forms of the Railroad Commission.
Any well drilled for the production of gas or classified as a gas well under the Texas Commission on Environmental Quality.
A Gas Well Permit applied for and issued or denied under this UDC authorizing the drilling, production, and operation of one or more gas wells.
The site where the gathering lines for all the wells converge.
The hazardous materials management plan and hazardous materials inventory statements required by the Fire Code.
Property that is leased for drilling of oil or gas wells.
The repair [or] replacement of machinery, equipment, apparatus, structure, facility and parts thereof used in connection with drilling or a drill site, as well as any other work necessary to reduce fire hazards or any hazards to employees, public health, safety and welfare.
A new well bore or new hole established at the ground surface and shall not include the reworking of an existing well that has not been abandoned.
Oil, as such terms are used in the rules, regulations, or forms of the Railroad Commission.
Any well drilled for the production of oil or classified as an oil well under the Texas Natural Resources Code or the Railroad Commission.
An Oil Well Permit applied for and issued or denied pursuant to this Ordinance authorizing the drilling, production, and operation of one or more oil wells.
The area used for development and production and all related operational activities of oil and gas after drilling activities are complete.
For each well, the person listed on the Railroad Commission Form W-1 or Form P-4 for an oil or gas well.
The owner of the property and, if the person or entity who will be engaged in the oil and gas well drilling activity is other than the owner of the property, such person or entity shall also be included in the application and shall constitute a permittee.
Includes both the singular and plural and means an individual person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, and a fiduciary or representative of any kind.
A map indicating all gathering line easements. The easements must be located separately from the utility easements.
The Railroad Commission of Texas.
Recompletion or reentry of existing well within the existing bore hole or by deepening or sidetrack operations which do not extend more than one hundred fifty (150) feet from the existing well bore, or replacement of well liners or casings.
Any building intended for shelter, occupancy, housing or enclosure for persons, animals, cattle or storage.
The Town of Northlake, Texas.
Employees and independent contractors performing services for the Town of Northlake, including but not limited to the Fire Marshal.
A hole or bore to any horizon, formation, or strata for the purpose of producing oil, gas, or other liquid hydrocarbons.
Any excavation, grading, hole or holes, bore or bores, preparatory to, or in conjunction with, oil and gas well operations and/or for the purpose of producing any oil, gas[,] liquid hydrocarbon, brine water, sulphur water or for the use as an inspection well for secondary recovery for any of them.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.3 Oil and Gas Well Drilling and Production by SUP.
The drilling and production of oil and gas within the corporate limits of the Town shall be permitted by Specific Use Permit, which shall be subject to the following:
(Ordinance 13-0124A adopted 1/24/13)
§ 13.4 Oil or Gas Well Location.
A.
No drilling shall be permitted within six hundred (600') feet of any existing residential structure or public building, institution, school, or commercial building; provided, however, that drilling shall be permitted as close as three hundred (300') feet of an existing residential structure or public building, institution, school, or commercial building if all property owners, in question, agree in writing. Measurements shall be from the center of the bore hole.
B.
No drilling shall be permitted within five hundred (500') feet of any recorded property, lot or tract line with the exception of a property, lot or tract line adjacent to a Public Right-of-Way. A well may be drilled within one hundred fifty (150) feet of any recorded property, lot or tract line if all property owners, in question, agree in writing[.]
C.
Well drill sites and pad sites adjacent to platted undeveloped property shall observe setbacks in addition to those stated above
1.
A minimum six hundred (600') foot separation from the well bore hole to the closest buildable portion of a lot
2.
A minimum five hundred (500') foot separation from the well bore hole to any property line shall be required.
3.
A minimum two hundred (200') foot separation to any property line to gas well associated equipment shall be required.
D.
Public Rights-of-Way:
It shall be unlawful to drill any well within one hundred and fifty (150) feet of the boundary line of any of the public rights-of-way or land of the Town or within one hundred and fifty (150) feet of any location platted or shown on the Town's Comprehensive Plan for the development of any public rights-of-way or any Town facility. During the SUP or Final Plat process the Town may increase or decrease this setback requirement due to the location of the well.
E.
It shall be unlawful to drill any well within two hundred (200) feet of any fresh water well not drilled by the operator as a specific source of water used for drilling
(Ordinance 13-0124A adopted 1/24/13)
§ 13.5 Location of Future Development to Gas Well.
A.
All future developments adjacent to an existing oil or gas well site shall observe the following setbacks:
1.
A minimum one hundred fifty (150) feet separation from the well bore hole to any property line shall be required.
2.
A minimum three hundred (300) feet separation from the well bore hole to the closest buildable portion of a lot
3.
A minimum one hundred fifty (150) feet separation from any gas well associated equipment to the closest buildable portion of a lot.
4.
A minimum one hundred fifty (150) feet separation from any gas well collection pipe line to the closest buildable portion of a lot.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.6 Site Requirements.
A.
Access Roads:
All well access roads shall be located along the shortest route from the property line to the well site. Thereafter, such roads shall continue generally parallel to, and no further than twenty-five (25) feet from the property line of the leased property, unless otherwise approved by the Town Council[.]
B.
Reserve Pit Fencing:
All unattended reserve pits within the boundary of the well site shall be fully fenced with a minimum five (5) foot tall permanent fencing until at such time as the pit is backfilled and leveled. The use of hog wire, 5 strand barbed wire, or similar agriculture type fencing shall be allowed.
C.
Fencing:
Shall be a minimum of eight feet (8') in height and shall remain locked at all times when no one is present. Permanent fences shall be chain-link type with metal slats or other approved material. For security purposes, all permanent fencing structures shall have a gate to allow visibility into the well site. Permanent fencing shall be installed within ninety (90) days of completion of final well or within one hundred eighty (180) days of drilling inactivity, whichever is less.
D.
Pipelines:
All pipelines shall be located along the shortest route from the well site to the nearest property line. Thereafter, pipelines shall be located parallel to any property line, easement, or right-of-way. Pipelines may be located within an existing easement so long as the pipeline does not interfere with any other utility within said easement and an agreement between the property owner and all public utility providers has been signed and is on file with the Town.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.7 Requirements for Gas Wells Located within the Extraterritorial Jurisdiction.
A.
All oil and gas well drilling operations within the extraterritorial jurisdiction (ETJ) of the Town shall require Planning and Zoning Commission or Town Council, as appropriate, approval of a Development Plat in accordance with section 12.8.
B.
Written notice for reworking well:
Any operator desiring to rework a well shall give the Town written notice of this intent prior to the commencement of reworking operations provided.
C.
Exemptions from Certain Subdivision Rules and Regulations.
1.
Provided that no public necessity exists therefor, Oil and Gas Well development plats related to oil and gas well operations located in the ETJ only shall be exempt from the requirements for construction and/or dedication in lieu thereof for facilities for water, wastewater and public ROW contained in the subdivision rules and regulations.
(Ordinance 21-0513C, sec. 22, adopted 5/13/21)
§ 13.8 Oil and Gas Well Permit Required.
A.
Any person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall not engage in the drilling and production of oil or gas wells within the corporate limits of the Town or within the ETJ without first obtaining an Oil and Gas Well Permit issued pursuant to this UDC. An operator may apply for and obtain separate permits covering each well or a "blanket" permit covering multiple wells within a SUP.
B.
An Oil and Gas Permit application may be filed with the Town concurrently with the application for a SUP; provided, however, that the Town shall not be required to consider the Oil and Gas Well Permit application unless and until a SUP is approved by the Planning and Zoning Commission or Town Council, as appropriate.
C.
When an Oil and Gas Well Permit has been issued covering a well, the permit shall constitute authority for drilling, operation, production, gathering of production, maintenance, repair, reworking, testing, site preparation consisting of rigs or tank batteries, plugging and abandonment, and any other activity authorized by this UDC associated with drilling or production by the operator and their respective employees, agents, and contractors. An Oil and Gas Well Permit shall also constitute authority for the construction and use of all facilities reasonably necessary or convenient in connection therewith, including gathering lines and discharge lines, by the operator and its respective employees, agents, contractors and subcontractors.
D.
An Oil and Gas Well Permit shall not, however, constitute authority for the re-entering and drilling of an abandoned well. Re-entry and drilling of an abandoned well shall require a new Oil and Gas Well Permit.
(Ordinance 13-0124A adopted 1/24/13; Ordinance 21-0513C, sec. 23, adopted 5/13/21)
§ 13.9 Road Repair Agreement.
A Road Repair Agreement shall be filed with the Town. A Road Repair Agreement shall obligate the operator to repair damage to public streets, including but not limited to bridges, caused by the operator (or by the operator's employees, agents, contractors or representatives) in the performance of any activity authorized by or contemplated by the approved Oil and Gas Well Permit. The Town Manager or his/her designee shall have the authority to execute the Road Repair Agreement upon Town Council approval of a SUP or Development Plat for an oil or gas well.
A.
The road repair agreement shall include a videotape of all proposed public roads utilized to access the site
B.
Upon completion of the well the operator shall return the road to its pre-drill condition. The Town Manager or his/her designee shall approved all repairs made to the road
C.
The Town Manager or his/her designee may employ a Professional Engineer, at the Operator's expense to evaluate the conditions of the road both pre-drilling and post-drilling to make recommendations of repair of damage caused by drilling activity.
(Ordinance 13-0124A adopted 1/24/13; Ordinance 23-0126B adopted 1/26/2023)
§ 13.11 Damage to Public Rights-of-way.
A.
No street, alley or public way shall be blocked, encumbered or closed in any drilling production operation, except on a temporary basis and only by special permit issued by the Town.
B.
No digging up, breaking, excavating, tunneling, undermining, breaking up or damaging of any street or leaving upon any street any earth or other material or obstruction shall be permitted unless first approved by the Town.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.12 Oil and Gas Well Permit Required.
No well shall be drilled and no site work commenced until an Oil and Gas Well Permit has been issued by the Town[.]
(Ordinance 13-0124A adopted 1/24/13)
§ 13.13 Contents of Application for Oil and Gas Well Permit.
Applications for Oil and Gas Well Permits shall be in accordance with the following:
A.
Shall be submitted in writing, on forms provided by the Town.
B.
Shall include a copy of the approved SUP site plan.
C.
Shall include a copy of the applicable Pipeline Easement Map indicating the gathering station site.
D.
Shall be signed by the operator.
E.
Shall include payment of all associated application and inspection fees.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.14 Review of Applications for Oil and Gas Well Permit.
A.
All applications for Oil and Gas Well Permits shall be filed with the Town Manager or his/her designee who shall immediately forward all applications to appropriate staff for review. Incomplete applications shall be returned to the applicant, in which case the Town shall provide a written explanation of the deficiencies if requested by the applicant. All applications for an Oil and Gas Well Permit shall be accompanied by a processing fee and an inspection fee as adopted in the latest Town Fee Schedule, which shall be assessed to recoup the administrative and inspection expenses incurred by the Town in administrating such permit. The Town may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator.
B.
Applications shall be reviewed within thirty (30) days after filing and a determination whether the application includes all of the information required by this UDC, whether the application is in conformance with the applicable Oil and Gas Well Development Plat or SUP and Site Plan, the Road Repair Agreement, and whether the application is in conformance with the insurance and security requirements set forth in this UDC.
C.
The failure to review an Oil and Gas Well Permit application within the time limits specified above shall not require the Town to approve an application that does not meet the minimum requirements set forth in this UDC.
(Ordinance 13-0124A adopted 1/24/13; Ordinance 23-0126B adopted 1/26/2023)
§ 13.15 Contents of Oil and Gas Well Permit Issued by the Town.
A.
Each Oil and Gas Permit shall contain the following information:
1.
Identify the name of each well and its operator;
2.
Specify the date on which the Town issued each permit;
3.
Specify the date by which drilling must commence on at least one (1) well covered by the permit, otherwise the permit expires (such date shall not be less than one (1) year after the date of issuance). A one (1) year extension of time may be granted if existing conditions are the same;
4.
Specify that if drilling is commenced on at least one (1) well covered by the permit before the permit expires, the permit shall continue until the wells covered by the permit are abandoned and the site(s) restored;
5.
Incorporate, by reference, the conditions of the applicable Development Plat or applicable SUP and Site Plan;
6.
Incorporate, by reference, the information contained in the permit application;
7.
Specify that no drilling operations (including the construction of internal private access roads) shall commence until the operator has provided the security required by this UDC;
8.
Contain the name, address, and phone number of the person designated to receive notices from the Town, which person must be a resident of Texas, that can be served in person or by registered or certified mail; and
9.
Incorporate by reference all permits and fees required by the Town.
B.
If the Town denies an application for an Oil and Gas Well Permit, nothing herein contained shall prevent a new permit application from being submitted to the Town for the same well.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.16 Insurance and Indemnification.
The operator shall provide or cause to be provided the insurance described below for each well for which an Oil and Gas Well Permit is issued, such insurance to continue until the well is abandoned and the site restored. The operator may provide the required coverage on a "blanket basis for multiple wells." The operator shall provide an affidavit from the operator's insurance company certifying that the insurance provided complies with the requirements of this UDC.
A.
General Requirements: Indemnification and Express Negligence Provisions:
1.
Each Oil and Gas Well Permit issued by the Town shall include the following language:
OPERATOR DOES HEREBY EXPRESSLY RELEASE AND DISCHARGE ALL CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, AND EXECUTIONS WHICH IT EVER HAD, OR NOW HAS OR MAY HAVE, OR ASSIGNS MAY HAVE, OR CLAIM TO HAVE, AGAINST THE TOWN OF NORTHLAKE AND/OR ITS DEPARTMENTS, ITS AGENTS, OFFICERS, SERVANTS, SUCCESSORS, ASSIGNS, SPONSORS, VOLUNTEERS, OR EMPLOYEES, CREATED BY, OR ARISING OUT OF PERSONAL INJURIES, KNOWN OR UNKNOWN, AND INJURIES TO PROPERTY, REAL OR PERSONAL, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER AN OIL AND GAS WELL PERMIT AND THE OPERATOR CAUSED BY OR ARISING OUT OF, THAT SEQUENCE OF EVENTS WHICH OCCUR FROM THE OPERATOR UNDER THE OIL AND GAS WELL PERMIT AND WORK PERFORMED BY THE OPERATOR [AND] SHALL FULLY DEFEND, PROTECT, INDEMNIFY, AND HOLD HARMLESS THE TOWN OF NORTHLAKE, TEXAS, AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, EMPLOYEES, SUCCESSORS, ASSIGNS, SPONSORS, OR VOLUNTEERS FROM AND AGAINST EACH AND EVERY CLAIM, DEMAND, OR CAUSE OF ACTION AND ANY AND ALL LIABILITY, DAMAGES, OBLIGATIONS, JUDGMENTS, LOSSES, FINES, PENALTIES, COSTS, FEES, AND EXPENSES INCURRED IN DEFENSE OF THE TOWN OF NORTHLAKE, TEXAS, AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, INCLUDING, WITHOUT LIMITATION, PERSONAL INJURIES AND DEATH IN CONNECTION THEREWITH WHICH MAY BE MADE OR ASSERTED BY OPERATOR, ITS AGENTS, ASSIGNS, OR ANY THIRD PARTIES ON ACCOUNT OF, ARISING OUT OF, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER AN OIL AND GAS WELL PERMIT, AND THE OPERATOR AGREES TO INDEMNIFY AND HOLD HARMLESS THE TOWN OF NORTHLAKE, TEXAS, AND/OR ITS DEPARTMENTS, AND/OR ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, SUCCESSORS, ASSIGNS, SPONSORS, OR VOLUNTEERS FROM ANY LIABILITIES OR DAMAGES SUFFERED AS A RESULT OF CLAIMS, DEMANDS, COSTS, OR JUDGMENTS AGAINST THE TOWN AND/OR, ITS DEPARTMENTS, ITS OFFICERS, AGENTS, SERVANTS, OR EMPLOYEES, CREATED BY, OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE TOWN OF NORTHLAKE, OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE TOWN OF NORTHLAKE OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE TOWN OF NORTHLAKE, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE TOWN OF NORTHLAKE, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE TOWN IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT.
2.
All policies shall be endorsed to read "This policy will not be cancelled or nonrenewed without thirty (30) days advanced written notice to the Town."
3.
Liability policies shall be written by carriers licensed to do business in Texas and with companies with A:VIII or better rating in accordance with the current Best Key Rating Guide, or with non-admitted carriers that have a financial rating comparable to carriers licensed to do business in Texas, and approved by the Town.
4.
Liability policies shall name as "Additional Insured" the Town and its officials, agents, employees, and volunteers. Waivers of subrogation shall be provided in favor of the Town.
5.
Certificates of insurance must be presented to the Town evidencing all coverages and endorsements required by this UDC, and the acceptance of a certificate without the required limits and/or coverages shall not be deemed a waiver of these requirements.
6.
Claims made policies will not be accepted except for excess policies or environmental policies.
B.
Required Insurance Coverage:
1.
Commercial General Liability Insurance:
a.
Coverage should be a minimum Combined Single Limit of One Million Dollars ($1,000,000) per occurrence for Bodily Injury and Property Damage with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000) per occurrence. This coverage must include premises, operations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractors protective liability and personal injury.
b.
Environmental Impairment (or Seepage and Pollution) shall be either included in the coverage or written as separate coverage. Such coverage shall not exclude damage to the lease site. Coverage shall apply to sudden and non-sudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. Coverage shall be a minimum combined single limit of One Million Dollars ($1,000,000.00), per occurrence with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000) per occurrence.
2.
Automobile Liability Insurance:
Minimum Combined Single Limit of One Million Dollars ($1,000,000) per occurrence for Bodily Injury and Property Damage. Such coverage shall include owned, non-owned, and hired vehicles with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000) per occurrence.
3.
Worker's Compensation Insurance:
In addition to the minimum statutory requirements, coverage shall include Employer's Liability limits of at least One Hundred Thousand Dollars ($100,000) for each accident, One Hundred Thousand Dollars ($100,000) for each employee, and a Five Hundred Thousand Dollars ($500,000) policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the Town, its officials, agents, employees, and volunteers for any work performed for the Town by the operator.
4.
Excess (or Umbrella) Liability Insurance:
Minimum limit of Ten Million Dollars ($10,000,000) covering in excess of the preceding insurance policies.
5.
Control of Well Insurance:
a.
Minimum limit of Five Million Dollars ($5,000,000) per occurrence with a deductible of no greater than Twenty-Five Thousand Dollars ($25,000) per occurrence.
b.
Policy shall cover the Cost of controlling a well that is out of control, redrilling or restoration expenses, seepage and pollution damage. Damage to Property in the Operator's Care, Custody, and Control with a sublimit of Five Hundred Thousand Dollars ($500,000) may be added.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.17 Security.
A security instrument that covers each well must be delivered to the Town before the issuance of the Oil and Gas Well Permit for the well. The instrument must provide that it cannot be cancelled without at least thirty (30) days' prior written notice to the Town. The instrument shall secure the obligations of the operator related to the well to:
A.
Repair damage, excluding ordinary wear and tear, if any, to public streets, including but not limited to bridges, caused by the operator or by the operator's employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the Oil and Gas Well Permit;
B.
Comply with the insurance and security provisions set forth in this UDC.
C.
Pay fines and penalties imposed upon the operator by the Town for any breach of the Oil and Gas Well Permit.
D.
The security instrument may be in the form of an irrevocable letter of credit or payment bond issued by a bank or surety approved by the Town. The instrument shall run to the Town for the benefit of the Town, shall become effective on or before the date the Oil and Gas Well Permit is issued, and shall remain in effect until the well is abandoned and the site restored.
E.
A certificate of deposit may be substituted for the letter of credit or payment bond. The certificate shall be issued by a bank approved by the Town, shall be payable to the order of the Town to secure the obligations of the operator described above, and shall be pledged to the bank with evidence of delivery provided to the Town. Interest on the certificate shall be payable to the operator.
F.
The security instrument may be provided for individual wells or on a "blanket" basis for multiple wells. The amount of the security shall be a minimum of Fifty Thousand Dollars ($50,000) for any single well and a minimum of Two Hundred Fifty Thousand Dollars ($250,000) for multiple wells on a "blanket" basis.
G.
An appeal of the determination of the amount of security required under this UDC may be made to the Town Council for final determination of the amount of security.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.18 Periodic Reports.
A.
The operator shall notify the Town Manager or his/her designee of any changes to the following information immediately, within one (1) business day after the change occurs.
1.
The name, address, and phone number of the operator;
2.
The name, address, and twenty-four (24) hour phone number of the person(s) with supervisory authority over drilling or operations activities;
3.
The name, address, and phone number of the person designated to receive notices from the Town, which person must be a resident of Texas that can be served in person or by registered or certified mail; and
4.
The operator's Emergency Action Response Plan including "drive-to-maps" from public rights-of-way to each SUP site.
B.
The operator shall provide a copy of any "incident reports" or written complaints submitted to the Railroad Commission or any other state or federal agency within thirty (30) days after the operator has notice of the existence of such reports or complaints.
C.
Beginning on December 31st after each well is completed, and continuing on each December 31st thereafter until the operator notifies the Town that the well has been abandoned and the site restored, the operator shall prepare a written report to the Town identifying any changes to the information that was included in the application for the applicable Oil and Gas Well permit that have not been previously reported to the Town.
(Ordinance 13-0124A adopted 1/24/13; Ordinance 23-0126B adopted 1/26/2023)
§ 13.19 Amended Oil and Gas Well Permits.
A.
An operator must submit an application to the Town Manager or his/her designee to amend an existing Oil and Gas Well Permit, to commence drilling from a new drill site that is not shown on (or incorporated by reference as part of) the existing permit, to relocate a drill site or operation site that is shown on (or incorporated by reference as part of) the existing permit, or to otherwise amend the existing permit.
B.
Applications for amended Oil and Gas Well Permits shall be in writing, shall be on forms provided by the Town of Northlake, shall be signed by the operator, and shall include the following:
1.
The original application fee as set forth herein;
2.
A description of the proposed amendments;
3.
Any changes to the information submitted with the application for the existing Oil and Gas Well Permit (if such information has not previously been provided to the Town);
4.
Such additional information as is reasonably required by Town Staff to demonstrate compliance with the applicable Development Plat or applicable SUP and Site Plan; and
5.
Such additional information as is reasonably required by Town Staff to prevent imminent destruction of property or injury to persons.
6.
All applications for amended Oil and Gas Well Permits shall be filed with the Town Manager or his/her designee. The application shall be immediately forwarded for review by Town Staff. Incomplete applications may be returned to the applicant, in which case the Town shall provide a written explanation of the deficiencies. The Town may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator.
7.
If the activities proposed by the amendment are not materially different from the activities covered by the existing Oil and Gas Well Permit, and if the proposed activities are in conformance with the applicable Development Plat or applicable SUP and Site Plan, then Town Staff shall review the amendment within ten (10) days after the application is filed.
8.
If the activities proposed by the amendment are materially different from the activities covered by the existing Oil and Gas Well Permit, and if the proposed activities are in conformance with the applicable Development Plat or applicable SUP and Site Plan, then the Town Staff shall review the amendment within thirty (30) days after the application is filed. If, however, the activities proposed by the amendment are materially different and, in the judgment of the Town Manager or his/her designee, might create a risk of imminent destruction of property or injury to persons that was not associated with the activities covered by the existing permit or that was not otherwise taken into consideration by the existing permit, the amendment must be processed as a new Oil and Gas Well Permit application.
9.
The failure of the Town Staff to review an amended Oil and Gas Well Permit application within the time limits specified above shall not require the Town to approve an application that does not meet the minimum requirements set forth in this Ordinance.
10.
A decision to deny an amendment to an Oil and Gas Well Permit shall be provided to the operator in writing within ten (10) days after the decision is made, including an explanation of the basis for the decision. The operator may appeal any such denial to the Town Council.
(Ordinance 13-0124A adopted 1/24/13; Ordinance 23-0126B adopted 1/26/2023)
§ 13.20 Transfer of Oil and Gas Well Permits.
An Oil and Gas Well Permit may be transferred by the operator with the consent of the Town if the transfer is in writing signed by both parties, and the transferee agrees to be bound by the terms and conditions of the transferred permit, if all information previously provided to the Town as part of the application for the transferred permit is updated to reflect any changes and if the transferee provides the insurance and security required by this UDC. The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the Town. The transfer shall not relieve the transferor from any liability to the Town arising out of any activities conducted prior to the transfer.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.21 On-site Operation Requirements.
A.
A secured entrance gate and a sign shall be required. The sign identifying the entrance to the drill site or operation site shall be reflective.
B.
Temporary six-foot (6') chain-link or approved alternative fences shall be required to surround drill sites during initial drilling and completion, and shall be locked when no operations personnel are present.
C.
Permanent fences surrounding operation sites shall be a minimum of eight feet (8') in height and shall remain locked at all times when no one is present. Permanent fences shall be chain-link with metal slats or other approved material. For security purposes, all permanent fencing structures shall have a gate to allow visibility into the well site.
D.
No refining process, or any process for the extraction of products from gas, shall be carried on at a drill site or operation site, except that a dehydrator and separator may be maintained on a drill site or operation site for the separation of liquids from gas. Any such dehydrator or separator may serve more than one well. All production equipment on an operation site shall be painted and maintained at all times, including pumping units, storage tanks, buildings, and structures.
E.
Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED" in a minimum of four-inch (4") lettering shall be posted at the entrance of each drill site and operation site. The sign shall include the phone number for emergency services (9-1-1), the name and phone number for the operator, and the well designation required by the Railroad Commission in two- inch (2") lettering.
F.
No person shall place, deposit, or discharge or cause or permit to be placed, deposited, or discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, or any refuse, including wastewater or brine, from any oil or gas operation or the contents of any container used in connection with any oil or gas operation in, into, or upon any public right-of-way, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private property within the corporate limits of the Town.
G.
All electric lines to production facilities shall be located underground.
H.
All fire suppression and prevention equipment required by any applicable federal, state, or local law shall be provided by the operator, at the operator's cost, and maintenance and upkeep of such equipment shall be the responsibility of the operator.
I.
No operator shall excavate or construct any lines for the conveyance of fuel, water, gas or petroleum liquids on, under, or through the streets or alleys or other land of the Town without an easement or right-of-way permit or license from the Town, at a price to be agreed upon, and then only in strict compliance with this UDC, with other ordinances of the Town, and with the specifications established by the Town.
J.
The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any public street or leaving upon any public street any earth or other material or obstruction, is prohibited unless the operator has first obtained written permission from the Town, and then only in compliance with specifications established by the Town.
K.
No Oil or Gas Well Permit shall be issued for any well to be drilled within any of the streets or alleys of the Town and/or streets or alleys shown by the Land Use Development Concept Plan or Master Thoroughfare Plan, and no street shall be blocked or encumbered or closed due to any exploration, drilling, or production activities unless prior consent is obtained from the Town, and then only temporarily.
L.
No tank batteries may be installed higher than sixteen (16) feet above ground level.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.22 Operations and Equipment Practices and Standards.
A.
Adequate nuisance prevention measures shall be taken to prevent or control offensive odor, fumes, dust, noise and vibration.
B.
No person shall permit any lights located on any drill or operation site to be directed in such a manner so that they shine directly on public roads, adjacent property or property in the general vicinity of the operation site. To the extent practicable and taking into account safety considerations, site lighting shall be directed downward and internally so as to avoid glare on public roads and adjacent dwellings and buildings within three hundred (300') feet.
C.
The operator shall at all times comply with the rules and regulations of the Railroad Commission including but not limited to all applicable Field Rules.
D.
Internal combustion engines may be used in drilling and producing operations if they have mufflers that will reduce noise to not more than seventy (70) dB at any point three hundred feet (300') from the boundary of the drill site or operation site. If noise levels at a distance of three hundred feet (300') exceed seventy (70) dB, a sound reduction enclosure shall be required around the drilling rig and any internal combustion engines. The noise level during fracing operations shall be not more than eighty (80) dB at any point three hundred feet (300') from the boundary of the drill site or operation site. Only electric motors shall be used for the purpose of pumping oil wells. Electric motors shall be used for compressors located at gas well sites. The Town may require continuous noise level monitoring to ensure compliance with this section.
E.
In parallel to gas gathering pipeline, a flow-back line shall be installed to handle water and gas flow-back following well fracture treatment.
F.
Vehicles, equipment, and machinery shall not be placed or located on a drill site or operation site or on any public street, alley, driveway, or other public right-of-way in such a way as to constitute a fire hazard or to unreasonably obstruct or interfere with fighting or controlling fires.
G.
Well servicing operations and site development shall be scheduled to occur between the hours of 7:00 a.m. - 7:00 p.m. on Monday through Friday and 9:00 a.m. to 5:00 p.m. on Saturday. No work shall be performed on Sunday or Holidays without Town Council approval[.]
H.
Air, gas, or pneumatic drilling shall not be permitted.
I.
For vehicular safety reasons, the operator shall immediately notify the Town of any substantial accumulations of dirt, dust, mud or other debris deposited on Town thoroughfares by vehicles involved in the well drilling or servicing or pipeline installation process. If for safety reasons, the Town elects to perform the removal, the cost of such removal shall be paid by the operator.
J.
The drilling rig and associated drilling equipment shall be removed from the well site within thirty (30) days of the completion of the well or drilling activities.
K.
All engines, compressors, or motor-driven machinery used in operation of gas collection stations shall be equipped with mufflers so as to reduce noise to not more than fifty (50) dB at any point one hundred (100) feet beyond the gas collection site[.]
L.
If a gas field in the Town is identified as a H2S gas field the operator shall be required to cease operations[.]
(Ordinance 13-0124A adopted 1/24/13)
§ 13.23 Storage Tanks and Separators.
A.
An operator is allowed to construct, use, and operate such storage equipment and separation equipment as shown on the applicable Development Plat or applicable SUP and Site Plan.
B.
The use of centralized tank batteries is permitted as shown on the applicable Development Plat or applicable SUP or Site Plan.
C.
No meters, storage tanks, separation facilities, or other above-ground facilities except wellheads and flow lines shall be placed in the one hundred (100) year floodplain.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.24 Flow Lines and Gathering Lines.
A.
Each operator shall place an identifying sign at each point where a flow line or gathering line crosses a public street or road.
B.
All flow lines and gathering lines within the corporate limits of the Town (excluding Town utility lines and franchise distribution systems) that are used to transport oil, gas, and/or water shall be limited to the maximum allowable operating pressure applicable to the pipes installed and shall be installed with at least the minimum cover or backfill specified by the American National Safety Institute Code, as amended.
C.
Easements must be acquired for all flow lines, gathering lines and flow-back lines. The location of easements shall be shown in a map approved by the Town Council prior to the installation of any pipelines.
D.
Structures shall not be built over flow lines or gas gathering pipelines.
E.
The location of all pipelines must be marked with warning signs in accordance with industry standards. Within the Town or the town's ETJ the distance between such signs shall not exceed five hundred (500') feet. In addition, during backfill of pipeline excavations, "Buried Pipeline" warning tape shall be buried one (1') foot above the pipeline to warn future excavators of the presence of buried pipeline.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.25 Additional Safety and Environmental Requirements.
A.
The drilling and production of oil and gas and accessing the oil or gas well site shall be in compliance with all State and Federal environmental regulations and shall not occur within Environmentally Sensitive Areas designated by the Corps of Engineers.
B.
Oil and Gas wells may have a target location or bottom-hole location that is under an Environmentally Sensitive Area when the oil or gas well is drilled directionally from a location outside the Environmentally Sensitive Area.
C.
Each producing well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All wellheads shall contain an emergency shut-off valve to the well distribution line.
D.
Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank.
E.
Storage tank facilities shall be equipped with a secondary containment system including lining with an impervious material. The secondary containment system shall be of a sufficient height to contain one and one-half (1-1/2) times the contents of the largest tank in accordance with the Fire Code, and the impervious liner shall be covered with at least one (1') foot of sand. Drip pots shall be provided at pump-out connections to contain the liquids from the storage tank.
F.
Tank battery facilities shall be equipped with a lightning arrestor system installed according to the most current edition of the National Electrical Code.
G.
An approved Hazardous Materials Management Plan shall be on file with the Town. The costs of cleanup operations due to hazards associated with a well site shall be the responsibility of the operator.
H.
All wastes must be contained within the drill site as required by the Texas Railroad Commission
I.
All wastes shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the State, this UDC and any other applicable ordinance of the Town.
J.
The well site shall not be used for storage of pipe, equipment, or materials except during the drilling or servicing of the well and for production facilities allowed on the site.
K.
The premises of each well site shall be kept clean and sanitary, free from rubbish at all times when drilling or reworking operations are being conducted and as long as oil or gas is being produced from the well. The area surrounding production facilities shall be kept clear of high grass, weeds, and trash within a minimum radius of one hundred (100) feet around production facilities
L.
All wells shall be abandoned in accordance with the rules of the Railroad Commission; however, all well casings shall be cut and removed to a depth of at least ten (10') feet below the surface.
M.
No structures shall be built over an abandoned well.
N.
No salt-water disposal wells shall be located within the Town.
O.
An impervious lining of all pits shall be required.
P.
Reserve pits shall be filled within sixty (60) days of well completion.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.26 Supplemental Drilling.
A.
Supplemental drilling to deepen or directional drill an existing well shall be conducted in accordance with the conditions for the applicable SUP. The operator shall provide the Town with a copy of additional Railroad Commission permits that allow drilling to a deeper depth.
B.
Supplemental drilling to deepen or directional drill an existing well shall be conducted in accordance with the approved Oil and Gas Well Permit for the well on file with the Town.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.27 Reworking of Well, Notice.
Any person who intends to rework a well using a drilling rig, to fracture stimulate a well after initial completion, or to conduct seismic exploration involving explosive charges shall give written notice to the Town at least ten (10) days before the activities begin. The notice shall identify where the activities will be conducted and shall describe the activities in reasonable detail, including but not limited to the duration of the activities and the time of day they will be conducted. The notice must also provide the address and twenty-four (24) hour phone number of the person conducting the activities. The person conducting the activities will post a sign on the property giving the public notice of the activities, including the name, address, and twenty-four (24) hour phone number of the person conducting the activities.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.28 Abandonment of Wells and Pipelines.
A.
Abandonment of Wells:
Upon abandonment of a well or well site, within sixty (60) days, the well shall be plugged in accordance with the Texas Railroad Commission standards, the site shall be cleaned and cleared of all equipment, holes or excavations filled, and the land graded and returned to its original condition including replanting of vegetation to match the surrounding area. All well casings shall be cut and removed to a depth of at least ten (10') feet below the surface.
B.
Abandonment of Pipelines:
Upon abandonment of a pipeline, within sixty (60) days of abandonment, a pipeline must be purged and plugged in accordance with the rules and regulations of the State of Texas in effect at that time.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.29 Remedies of the Town.
A.
If an operator (or its officers, employees, agents, contractors, subcontractors or representatives) fails to comply with any requirement of an Oil and Gas Well Permit (including any requirement incorporated by reference as part of the permit), the Town shall give written notice to the operator specifying the nature of the alleged failure and giving the operator a reasonable time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community. In no event, however, shall the cure period be less than thirty (30) days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the operator's failure to provide periodic reports.
B.
If the operator does not cure the alleged failure within the time specified by the Town, the Town may notify the Railroad Commission and request that the Railroad Commission take appropriate action (with a copy of such notice provided to the operator), and the Town may pursue any other remedy available under this UDC.
C.
If the operator does not cure the alleged failure within the time specified by the Town, the Town Manager or his/her designee may:
D.
The operator may appeal a decision to suspend or revoke the Oil and Gas Well Permit, to the Town Council.
(Ordinance 13-0124A adopted 1/24/13; Ordinance 23-0126B adopted 1/26/2023)
§ 13.30 Enforcement, Right of Entry.
Town Staff is authorized and directed to enforce this UDC and the provisions of any Oil and Gas Well Permit. Whenever necessary to enforce any provision of this UDC or a Gas Well Permit, or whenever there is reasonable cause to believe there has been a violation of this UDC or an Oil and Gas Well Permit, Town Staff may enter upon any property covered by this UDC or an Oil and Gas Well Permit at any reasonable time to inspect or perform any duty imposed by this UDC. If entry is refused, the Town shall have recourse to every remedy provided by law and equity to gain entry.
(Ordinance 13-0124A adopted 1/24/13)
§ 13.31 Penalty.
A.
It shall be unlawful and an offense for any person to do the following:
B.
Any violation of this section shall be punished by a fine of not more than Two Thousand Dollars ($2,000.00) per day, subject to applicable State law. Each day a violation occurs constitutes a separate violation.
(Ordinance 13-0124A adopted 1/24/13)