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 Stillwater 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.

Authority. This article is adopted pursuant to authority vested under the constitution and laws of the State of Oklahoma and the Stillwater 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. 3310, § 2, 7-20-2015)

All technical industry words or phrases related to the drilling and production of gas wells not specifically defined shall have the meanings customarily attributable thereto by prudent operators in the gas industry. For the purposes of this article the following definitions, without regard to whether the defined terms are capitalized when used, shall apply unless the context clearly indicates or requires a different meaning. Except as otherwise provided, these definitions shall be applicable only to this article.

City means the City of Stillwater, 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 OCC.

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.

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, as designated on the specific use permit site plan. 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.

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

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, or public recreation center. This definition does not apply to any structure constructed in the proximity of a producing well drilled after the effective date of this ordinance as set forth under subsection 23-410.6(A)(5).

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 man-made 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 means a hole or bore drilled to any horizon, formation, or strata for the purpose of producing natural gas, or liquid hydrocarbons.

(Ord. No. 3310, § 2, 7-20-2015)

A.

Oil and gas well drilling and production may be conducted in areas zoned "A-Agricultural" or "IG-Industrial General" provided the operator of such well has obtained a specific use permit from the city council, after notice and hearing, as required by this article.

B.

Commercial disposal well drilling and operation may be conducted in areas zoned "IG-Industrial General" provided the operator of such well has obtained a specific use permit from the city council, after notice and hearing, as required by this article.

C.

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.

D.

This article shall not apply to any producing oil or gas well located on property annexed by the city after the effective date of this article.

(Ord. No. 3310, § 2, 7-20-2015)

A.

In addition to the standard application requirements for a specific use permit as set forth in section 23-180, the application shall include a site plan showing the following:

1.

The location, by metes and bounds description, and dimensions of the drilling and production site;

2.

The location of all drilling and production site ingress and egress points;

3.

The location of all affected floodways and floodplains;

4.

The location of any protected use within 960 feet of the drilling and production site;

5.

The location of any permanent structure not defined as a protected use within 700 feet of the drilling and production site;

6.

Distances between the proposed drilling and production site and adjoining property lines;

7.

The location of all existing and proposed underground pipelines.

B.

No site plan shall provide for more than one drilling and production site. The site plan shall describe how all OCC Regulations and on-site standards set forth in this article will be achieved. All conditions set forth in any prior site plan approval for the drilling and production site shall be included in the specific use permit site plan submittal.

C.

The applicant shall also submit the following plans with the application for a specific use permit:

1.

Drilling/completion and production mitigation plans prepared in accordance with section 23-410.5(A) and (B);

2.

A site reclamation plan prepared in accordance with section 23-410.5(C);

3.

An erosion and sediment control plan prepared in accordance with sections 35-1 through 35-142;

4.

Certified copy of all permits required by the Oklahoma Corporation Commission (OCC) and Oklahoma Department of Environmental Quality (ODEQ); and

5.

Certificates of insurance coverage and security as required by sections 23-410.8 and 23-410.9.

D.

Notice for a specific use permit under this article shall be the same as required by subsection 23-180(d), except as follows: Notice shall be given in writing by mail to all owners of any protected use or platted residential property located within 300 feet of the applicable separation boundary.

(Ord. No. 3310, § 2, 7-20-2015)

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 subsection 23-410.6(B)(3) shall be accomplished during drilling operations. The study shall:

a.

Identify operation noise impacts;

b.

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

c.

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

i.

Nature and proximity of adjacent development, location and type;

ii.

Seasonal and prevailing weather patterns, including wind directions;

iii.

Vegetative cover on or adjacent to the site; and

iv.

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 23-410.4(D). No production mitigation plan shall be required for any well excepted under subsection 23-410.3(C) or (D).

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. 3310, § 2, 7-20-2015)

A.

Separation.

1.

No well, or any rig, platform, tower, equipment, device, trailer, structure, tank, pit, chemical, or substance used for drilling, completion, production, re-drilling, re-completion, maintenance, or storage of or from the well, shall be located within 660 feet of the nearest property line of any protected use or any lot located within a previously platted residential subdivision.

2.

No well, or any rig, platform, tower, equipment, device, trailer, structure, tank, pit, chemical, or substance used for drilling, completion, production, re-drilling, re-completion, maintenance, or storage of or from the well, shall be located within 660 feet of the nearest outside wall of any protected use located on the same parcel as the well.

3.

No well, or any rig, platform, tower, equipment, device, trailer, structure, tank, pit, chemical, or substance used for drilling, completion, production, re-drilling, re-completion, maintenance, or storage of or from the well, shall be located within 400 feet of the nearest outside wall of any structure other than those defined as a protected use.

4.

The city council may, upon application, reduce the separation distance set forth in subsection 23-410.6(A) if:

(a)

The operator demonstrates that due to size or shape alone, said requirement will prevent any oil and gas drilling and production on the A or IG zoned parcel, provided, no such reduction of separation distance shall be granted unless the operator demonstrates that additional or enhanced mitigation measures will adequately offset any increased negative impact to adjoining property caused by the separation reduction; or

(b)

The operator produces notarized written consent to a separation reduction from each owner of a protected use or platted residential subdivision parcel located within or immediately adjacent to the separation boundary; a notarized written consent to a separation reduction from each owner of an adjoining use other than a protected use; or, a notarized written consent to a separation reduction from each owner of a structure located on the same parcel as the drilling and production site; as applicable.

5.

No structure shall be constructed within 400 feet of a producing well drilled after the effective date of this article, except with written consent of the well operator. Said distance shall be determined in the same manner as set forth in subsection 23-410.6(A)(3), except that the closest permanent structure located on the production site shall serve as the initial point of measurement.

B.

On-site requirements.

1.

All drilling and completion operations proposed within the FEMA One Hundred Year Designated Floodplain shall comply with the adopted Flood Hazard Regulations and shall be fully flood proofed.

2.

All drilling and production sites shall be screened with an opaque temporary fencing of sufficient size and dimension to secure the area where drilling activities are conducted and to protect adjoining uses from the deleterious effects of noise, light, dust, and other nuisances associated with such activities, consistent with the standards set forth in this Code.

3.

The ambient noise level shall be 69 dB. No operation conducted on the drilling and production site shall create any noise which causes an exterior noise level when measured at the separation boundary for a protected use that:

(a)

Exceeds the ambient noise level by more than five decibels during daytime hours and more than three decibels during nighttime hours;

(b)

Creates pure tones where one-third octave band sound-pressure level in the band with the tone exceeds the arithmetic average of the sound-pressure levels of two contiguous one-third octave bands by five dB for center frequencies of 500 Hertz and above, and by eight dB for center frequencies between 160 and 400 Hertz, and by 15 dB for center frequencies less than or equal to 125 Hertz; or

(c)

Creates low-frequency outdoor noise levels that exceed the following dB levels:

(d)

Adjustments to the noise standards as set forth above may be permitted intermittently in accordance with the following:

* Cumulative minutes during any one hour.

(e)

The exterior noise level generated by operations at the drilling and production site shall be continuously monitored for compliance. The cost of such monitoring shall be borne by the operator. 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 drilling and production site at the nearest property line of the source of the complaint.

(f)

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.

(g)

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.

(h)

A citation may be immediately issued for failure to comply with the provisions of this subsection. 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.

4.

Exhaust from any internal combustion engine, stationary or mounted on wheels, used with the drilling of any well shall not be discharged into the open air unless it is equipped with an exhaust muffler or mufflers, or an exhaust muffler box constructed of noncombustible materials sufficient to suppress noise and prevent the escape of noxious gases, fumes, or ignited carbon or soot.

5.

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.

6.

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.

7.

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

8.

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.

9.

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.

10.

The city manager may 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.

11.

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

12.

A hazardous materials management plan shall be on file with the fire marshal. Any updates or changes to this plan shall be provided to the fire marshal within three working days of the change. All chemicals and/or hazardous materials shall be stored in such a manner as to prevent, contain, and facilitate rapid remediation and cleanup of any accidental spill, leak, or discharge of a hazardous material. Operator shall have all material safety data sheets (MSDSs) for all hazardous materials on-site. All applicable federal and state regulatory requirements for the proper labeling of containers shall be followed.

13.

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.

(Ord. No. 3310, § 2, 7-20-2015)

A.

On-site requirements.

1.

All production operations proposed within the FEMA One Hundred Year Designated Floodplain shall comply with the adopted flood hazard regulations and shall be fully flood proofed.

2.

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

3.

The Production Site 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 if trees or similar vegetation are planted in the separation area between the production site and any adjoining protected use.

4.

The ambient noise level shall be 69 dB. No operation conducted on the production site shall create any noise which causes an exterior noise level when measured at the separation boundary for a protected use that:

(a)

Exceeds the ambient noise level by more than five decibels during daytime hours and more than three decibels during nighttime hours;

(b)

Creates pure tones where one-third octave band sound-pressure level in the band with the tone exceeds the arithmetic average of the sound-pressure levels of two contiguous one-third octave bands by five dB for center frequencies of 500 Hertz and above, and by eight dB for center frequencies between 160 and 400 Hertz, and by 15 dB for center frequencies less than or equal to 125 Hertz; or

(c)

Creates low-frequency outdoor noise levels that exceed the following dB levels:

(d)

Adjustments to the noise standards as set forth above may be permitted intermittently in accordance with the following:

* Cumulative minutes during any one hour

(e)

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 nearest property line of the source of the complaint.

(f)

Landscaping, sound walls, and other alternative permanent methods may be utilized to mitigate noise emanating from the production site. All soundproofing shall comply with accepted industry standards and applicable fire codes.

(g)

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.

(h)

A citation may be immediately issued for failure to comply with the provisions of this subsection. 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.

5.

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.

6.

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.

7.

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.

8.

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 ground water and rainfall.

9.

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

10.

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.

11.

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. 3310, § 2, 7-20-2015)

The operator shall provide or cause to be provided the insurance described below for each well for which a specific use 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. Such coverage shall be reviewed by the city attorney and approved by the city manager.

A.

General requirements.

1.

All policies shall be endorsed to read "this policy will not be cancelled or non-renewed without 30 days advance written notice to the owner and the city except when this policy is being cancelled for nonpayment of premium, in which case ten days advance written notice is required".

2.

Liability policies shall be written by carriers licensed to do business in Oklahoma.

3.

Liability policies shall name as "Additional Insured" the city and its officials, employees, agents and volunteers.

4.

Certificates of insurance shall be presented to the city evidencing all coverage and endorsements required by this section and the acceptance of a certificate without the required limits and/or coverage shall not be deemed a waiver of these requirements.

B.

Required insurance coverage.

1.

Commercial general liability insurance.

(a)

Coverage should be a minimum combined single limit of $1,000,000.00 per occurrence for bodily injury and property damage. This coverage shall 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, and shall be a minimum of $2,000,000.00. Such coverage shall not exclude damage to the lease site. If environmental impairment (or seepage and pollution) coverage is written on a "claims made" basis, the policy shall provide that any retroactive date applicable precedes the effective date of the issuance of the permit. 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.

2.

Excess liability (umbrella). Excess liability insurance policy with limits of liability of not less than $5,000,000.00 over the above required general liability insurance policy. Excess policy must follow the form of the underlying liability policy.

(Ord. No. 3310, § 2, 7-20-2015)

The operator shall, prior to commencement of drilling under a specific use permit authorized under this article, furnish to the city manager on forms approved by the city attorney, and maintain, a blanket bond or blanket irrevocable letter of credit in the principal sum of at least $100,000.00. Said bond or letter of credit shall be executed by a reliable insurance company or bank authorized to do business in the State of Oklahoma, as surety or creditor, and with the operator as principal or debtor, running to the city for the benefit of the city and all persons concerned, conditioned that the operator shall comply with the terms and conditions of this article in the drilling and operation of oil wells drilled or operated within the city. Said bond or letter of credit shall become effective on or before the date the same is filed with the city and remain in full force and effect for at least 12 months subsequent to the expiration of the specific use permit term or well abandonment. The bond or letter of credit shall be conditioned that the operator must promptly pay all fines, penalties and other assessments imposed upon the operator by reason of its breach of any of the terms, provisions, or conditions of this article; that the operator shall promptly restore the streets, sidewalks, and other public property of the city which may be disturbed or damaged by the operator to their former condition; and that the operator must promptly clear all premises of all litter, trash, waste, and other substances and must, after abandonment, grade, level, and restore said property to the same surface condition, as far as possible, as existed prior to commencing operations. The bond or letter of credit submitted shall cover all wells drilled or operated by operator within the city.

For good cause, the city manager, after notice to and hearing for the operator, may require the filing of a blanket bond or letter of credit in an amount higher than $100,000.00 but not to exceed $200,000.00. "Good cause" shall include, but shall not be limited to, a showing that the operator has previously violated any of the provisions of this article.

(Ord. No. 3310, § 2, 7-20-2015)

A specific use permit for oil or gas drilling or production may be transferred by the operator with the written consent of the city if the transfer is in writing signed by both parties, if the transferee agrees to be bound by the terms and conditions of the transferred permit, if all information previously provided to the city 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 section 23-410.8 and 23-410.9. The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the city and all other requirements provided in this subsection are satisfied. The transfer shall not relieve the transferor from any liability to the city arising out of any activities conducted prior to the transfer.

(Ord. No. 3310, § 2, 7-20-2015)

A.

The oil and gas inspector shall have the authority to issue any orders or directives required to carry out the intent and purpose of this article. Failure of any person to comply with any such order or directive shall constitute a violation of this article.

B.

The oil and gas inspector shall have the authority to enter and inspect any premises covered by the provisions of this subchapter, to determine compliance with its provisions, and all applicable laws, rules, regulations, standards, or directives of any local state or federal authority.

(Ord. No. 3310, § 2, 7-20-2015)