The purpose of this Division is to:

(1)

Recognize that oil and gas wells are a necessary facet of natural energy production.

(2)

Recognize and ensure the rights of those concerned to extract petroleum resources from the earth.

(3)

Recognize and ensure the rights of those concerned with the use and development of the surface of the land.

(4)

Ensure that the petroleum resource land uses are compatible with the total environment of the community.

(5)

Protect the public from the hazards of oil and gas well drilling and development.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

(a)

Any person intending to commence operations for the drilling, completion, reworking, production or modification of an oil and gas well within the Town shall notify the Town Clerk at least 30 days in advance of commencement of such operations. Such notice shall include:

(1)

The proposed date of operations from commencement to completion.

(2)

The location of the proposed operation.

(b)

The person intending to commence operations shall provide to the Town copies of authority for such operations which may have been obtained from the Colorado Oil and Gas Commission and copies of documents filed with the Colorado Oil and Gas Commission regarding the proposed operations.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

No person shall commence operations for the drilling, completion, reworking, production or modification of an oil and gas well within the Town without first having lawfully complied with the ordinances of the Town, including the application for and obtaining of a building, excavation or demolition permit. It is unlawful for any person to commence operations for the drilling, completion or production of oil and gas or other hydrocarbon oil within the Town without first having lawfully complied with the requirements of this Article, the zoning ordinances and the building codes.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

The drilling, completion, production, reworking or modification of an oil and gas or hydrocarbon well and the installation of tank batteries and other structures accessory to oil and gas wells within the Town shall be entirely prohibited as follows:

(1)

In all zoning districts except industrial and agricultural districts. Persons or firms desiring to drill, rework or modify oil, gas or other hydrocarbon wells in the agricultural or industrial district shall file a written application with the Town Clerk. The Board of Trustees shall conduct a public hearing upon such application, providing 15 days' notice of such public hearing for the purpose of taking public comment on the granting or denial of such permit application. In granting a permit, the Board of Trustees may impose such conditions as may be reasonable to protect the public health, safety and welfare prior to granting such a permit.

(2)

Within 350 feet of any residence or business, commercial or industrial building.

(3)

Within 300 feet of any property line separating properties under different ownership, unless by joint agreement of the surface owners of properties on either side of the property line. If the State, through its regulatory agency, applies a greater setback requirement with regard to property lines, the state requirement shall apply.

(4)

Within 300 feet of any actual or proposed street or alley.

(5)

Within 100 feet of any actual or proposed utility easement or utility right-of-way.

(6)

Within any of the streets or alleys or proposed streets or alleys of the Town; and no street or alley should be blocked, encumbered or closed by any drilling or production operation except by special permit.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

Every operator shall submit a copy of an insurance policy naming the Town as an additional insured. Such insurance policy shall be in the face amount of no less than $1,000,000.00 aggregate coverage and $300,000.00 per individual. Such policy shall be written by a company authorized to do business in the State and shall insure both the applicant and the Town for damages to persons or property or for pollution of land, streams or air, if such damage or pollution arises out of drilling, maintenance, production or other work done with respect to such proposed oil or gas well.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

Every operator shall, prior to commencing drilling or other operations, submit a bond in favor of the Town in the amount of $50,000.00 for each well to be drilled. The bond shall be executed by the operator and corporate surety authorized to do business in the State and conditioned that the operator shall:

(1)

Pay all fees and sums due to the Town under this Chapter, comply with and abide by the ordinances of the Town and the laws of the State and, should the operator fail to do so, pay all costs and expenses incident in such failure to comply.

(2)

In the event the well is completed, abandoned or shut in, restore the site as much as possible to the same condition the site was in prior to commencement of the drilling operations.

(3)

Plug abandoned wells in accordance with the laws and regulations of the State and the Oil and Gas Conservation Commission and operate or maintain any producing well or shut-in well in accordance with state law and the rules and regulations of the Oil and Gas Conservation Commission.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

The operator shall furnish to the Town such reports, logs or other information as the Town may from time to time request.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)

No operator who has been granted a permit to drill or operate an oil and gas well shall sell, transfer, assign or convey the drilling site, equipment or operations without notifying the Town prior to such transfer, assignment or conveyance.

(Prior Code, § 6-12H; Ord. No. 2016-4, § 1, 8-29-2016)