Upper Frederick Township
City Zoning Code
City Zoning Code
ARTICLE XXII
Oil and Gas Well Drilling and Operating
§ 285-184 Legislative intent.
To establish reasonable and uniform regulations, limitations, safeguards and controls for present and future operations related to exploring for, drilling for and the development, production, transportation and/or storage of oil, gas and other hydrocarbon substances within the Township; and to define the responsibility for compliance with this article, so that such activities may be conducted in harmony with other uses of land, thus protecting Township residents in the enjoyment and use of their property and providing for the public health, safety and general welfare.
§ 285-185 Definitions.
[Amended 8-13-1998 by Ord. No. 98-4]
The terms uses in this chapter shall, unless the context indicates otherwise, have the respective meanings herein set forth:
Improvements, equipment or facilities of a type or design approved by the Commission, Fire Department or Township Engineer.
A sudden or violent escape of oil or natural gas, as from a drilling well when high formational pressure is encountered.
A mechanical, hydraulic, pneumatic or other device or combination of such devices secured to the top of a well casing including valves, fittings and control mechanisms connected therewith or a heavy casinghead control fitted with special gates or rams which can be closed around the drill pipe, or other tubular goods which completely closes the top of the casing and is designed for preventing blowout.
The Bureau of Oil and Gas Management, Department of Environmental Protection, or the Oil and Gas Division of the Department.
Any gas or vapor, or both gas and vapor indigenous to an oil stratum and produced from such stratum with oil.
A string or strings of pipe commonly placed in wells drilled for natural gas or petroleum.
An excavation around and above the top joint of the casing of a well.
The Oil and Gas Conservation Commission of the Commonwealth of Pennsylvania.
Liquid hydrocarbons which were originally in the gaseous phase in the reservoir.
The rights of each owner of oil and gas interest in a common pool or source of supply of oil or gas to have a fair and reasonable opportunity to obtain and produce his just and equitable share of the oil and gas in such pool or sources of supply without being required to drill unnecessary wells or incur other unnecessary expense to recover or receive such oil or gas or its equivalent.
Completion, for the purpose of this chapter, 30 days after the drilling, redrilling or reworking crew has been released through completion of its work or released by those employing said crew.
Any portable framework, tower, mast or structure which is or are required or used in connection with drilling reworking, operating or maintaining a well for the production of oil, gas or other hydrocarbons from the earth.
The cessation of operation at a drill site without compliance with the provisions of this chapter relating to suspended operations, idle wells or abandonment.
Digging or boring a new well for the purpose of exploring for, developing or producing oil, gas or other hydrocarbons or for the purpose of injecting gas, water or any other fluid or substance into the earth.
The derrick, together with all parts of and appurtenances to such structure, every piece of apparatus, machinery or equipment used or erected, or maintained for use in connection with drilling.
The premises used during the drilling or reworking of a well or wells located thereon.
Includes spacing unit and shall mean the are designated in a spacing order as a unit or as designated by a drilling or unitization agreement and within which all operators have the opportunity to participate in the well or wells drilled thereon on a just and equitable basis.
Any fire department, whether voluntary or otherwise, which has jurisdiction over any premises falling within the confines of this chapter.
Any gas or liquid.
Any fluid, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rarified state at standard temperature and pressure conditions. It shall also mean all natural gas and all other volatile hydrocarbons not herein defined as oil, including condensate because it was originally in a gaseous phase in the reservoir and shall include the gaseous components occurring in or derived from petroleum or natural gas.
Any well drilled or to be drilled or used for the intended or actual production of natural gas.
Whenever any oil well fails to produce at the quarterly rate of 20 barrels of crude oil or other hydrocarbon substances or at quarterly rate of 100,000 cubic feet of gas for sale, lease or storage for two successive calendar quarters, such well shall be classified as "idle."
A tract or tracts of land which by virtue of an oil and gas lease, fee or ownership, constitutes a single tract for the purpose of the development or operation thereof for oil or gas or both.
The person who has executed an oil or gas lease or sublease, or the owner of the land or minerals, or his heirs, executors, administrators or assigns or one who conducts or carries on any oil or gas exploration, development or operation thereof, or any person so operating for himself or others.
A new well bore or new hole established at the ground surface and shall not include redrilling or reworking of an existing well which is not abandoned.
Any operator who owns an interest in land included in a spacing unit, and who has not elected to participate in the drilling, equipping, completing and operating the well or wells to be drilled on such unit, and to share in the costs of the same.
Crude petroleum oil and all other hydrocarbons regardless of gravity produced at a well in liquid form by ordinary production methods but does not include liquid hydrocarbons which are originally in a gaseous phase in the reservoir.
The construction, use or maintenance of any installation, facility or structure used, directly or indirectly, to carry out or facilitate one or more of the following functions: exploring, drilling, redrilling, development, reworking and repair, production, processing, extraction, enhanced recovery, stimulation, abandonment, storage or shipping of oil or gas from these subsurface of the earth.
The physical location where oil operations are conducted.
Any well drilled, to be drilled or used for the intended or actual production of a liquid petroleum or petroleum products or for the intended or actual disposal of waste liquids, including solutions and liquids containing solids in suspension produced from any such well.
Any owner of the right to develop, operate and produce oil and gas from the pool or any person drilling, maintaining, operating, pumping or in control of any well. However, if the operator, as herein defined, is different from the lessee under an oil or gas lease or any premises affected by the provisions of this chapter, then such lessee shall also be deemed to be an operator. In the event that there is no oil or gas lease in existence the owner of the fee estate in the premises shall also be deemed an operator. In the event that the oil is owned separately from the gas, the owner of the substance being produced or sought to be produced from the pool shall be considered as operator as to such pool.
Where several contiguous parcels of land in one or different ownership are operated as a single oil or gas lease or operating unit, the term "outer boundary line" shall mean the exterior limits of the land included in the larger unit. In determining the contiguity of any such parcel of land, no street, road or alley lying within the lease or unit shall be deemed to interrupt such contiguity.
A person who owns the legal or equitable title in and to the surface of the drill site or oil operation site.
Any operator who own an interest in land included in a spacing unit, and who has elected to participate in the drilling, equipping, completing and operating the well to be drilled on such unit, and to share the costs of the same.
A drilling permit issued or sought to be issued under this chapter, authorizing the drilling of an oil well or gas well or other oil operations as herein defined.
Includes both the singular and the plural and shall mean any natural person, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary or other representative of any kind and includes any department, agency or instrumentality of the commonwealth, or any governmental subdivision thereof.
The person to whom is issued a permit authorizing the oil operations which are the subject matter of this chapter, and his or its administrators, executor, heirs, successors and assigns.
An underground reservoir containing a common accumulation of oil and gas or both not in communication laterally or vertically with any other accumulation of oil or gas.
The use of oil operations for gauging, recycling, compressor repressuring, injection, reinjection, dehydration, stimulation, separation (including, but not limited to, separation of liquids from gas), shipping and transportation, and gathering oil, gas, other hydrocarbon substances, water or any combination thereof.
The owner of the well or wells capable of producing oil or gas or both.
Recompletion of an existing well by deepening or sidetrack operations extending more than 150 feet from the existing well bore.
Recompletion of an existing well within the existing bore hole or by deepening or sidetrack operations which do not extend more than 150 feet from the existing well bore, or replacement of well liners or casings.
Public rights-of-way including streets, easements and other property within the Township and which is dedicated to the use and benefit of the public.
Any owner of oil or gas in place or oil or gas rights subject to a lease covering such oil or gas in place or oil and gas rights. Royalty owner also means any owner of an interest in an oil or gas such lease or the proceeds therefrom without obligating him to pay any costs under such lease. Royalty owner shall also mean the owner of any interest of the oil or gas in place or oil or gas rights who has not executed an oil or gas lease to the extent that such owner is not designated an operator.
A well capable of producing in excess of the minimum requirements for an idle well, but which is not placed into production due to lack of market.
Any flame, arc, spark or heated object or surface capable of igniting liquids, gases or vapors.
That portion of any subterranean sand or rock stratum or strata into which gas is or may be injected for the purpose of storage or for the purpose of testing whether said stratum is suitable for storage.
An earthen pit lined or unlined for the discharge of oil field wastes.
A container, covered or uncovered, used in conjunction with the drilling or production of oil, gas or other hydrocarbons for holding or storing fluids.
Such person familiar through experience in, exposure to, or education in oil and gas well operations as may be retained from time to time by the Township.
Used herein or not specifically defined herein shall have that meaning customarily attributable thereto by reasonable and prudent operators in the oil and gas industry.
The following shall be considered "waste":
Physical waste as the term is generally understood in the oil and gas industry, which includes the following:
Permitting the migration of oil, gas or water from the stratum in which it is found to other strata if such migration would result in a loss of recoverable oil or gas or both.
The drowning with water of any stratum or part thereof capable of producing oil or gas in paying quantities except for secondary recovery purposes or in hydraulic fracturing or other completion practices.
The unnecessary and excessive surface loss or destruction of oil or gas.
The inefficient or improper use, or unnecessary dissipation of reservoir energy.
The drilling of more wells than are reasonably required to recover efficiently and economically the maximum amount of oil and gas from a pool.
A hole or holes, bore or bores, to any sand, horizon, formation, strata or depth for the purpose of producing any oil, gas, liquid hydrocarbon, brine water, sulphur water or for use as an injection well for secondary recovery, disposal or any of them.
The maintenance work performed within any existing well bore which does not involve drilling, redrilling or reworking.
§ 285-186 Use regulations.
A.
Oil and gas wells and the drilling of such wells as permitted in all zoning districts provided they comply with all of the requirements of this chapter.
§ 285-187 General provisions.
A.
Administration. The Township Zoning Officer, or his duly appointed representative, is hereby authorized and directed to enforce the provisions of this article.
B.
Right-of-entry. Whenever necessary to enforce any of the provisions of this article, or whenever the Township Zoning Officer has reasonable cause to believe that there exists in any building or upon any premises any condition contrary to the provisions of this article, the Township Zoning Officer and/or a Township appointed technical advisor may enter such building or premises at all reasonable times to inspect the same or to perform any duty imposed upon the Township Zoning Officer by this article. If such entry is refused, the Township Zoning Officer shall have recourse to every remedy provided by law and equity to secure entry. No owner or occupant or any other persons having charge, care, custody or control of any building or premises shall fail or neglect, after proper demand, to permit prompt entry therein by the Township Zoning Officer, or his representative, for any purpose pursuant to this article.
C.
Agent. Every operator and/or lessee of any well shall designate himself or an agent or agents, who is a resident of the Commonwealth of Pennsylvania, upon whom all orders and notices provided in this article may be served in person or by registered or certified mail. Upon application for a permit hereunder, such operator and/or lessee shall notify the Township Secretary of the name and address of said agent and shall within 10 days notify the Township Secretary in writing of any change in such agent or such mailing address unless operations within the Township are discontinued.
D.
Notice. Every person who acquire any well, property or site upon which operations which are the subject matter of this chapter exist, whether by purchase, transfer, assignment, lease, conveyance, exchange or otherwise, shall within 10 days after acquiring such well, property or site, notify the Township Secretary in writing of such acquisition. The notice shall contain the following:
(1)
The name and address of the person acquiring such well, property or site.
(2)
The name and location of the well, property or site.
(3)
The date of acquisition.
(4)
A description of the properties and equipment acquired; including a plot plan of the well, property or site.
(5)
The name and address of any person designated to receive service of notice.
E.
Transfer of operator. The operator of every well shall notify the Township Secretary in writing of the transfer to another operator of such well for any purpose. Within 10 days after such transfer by reason of sale, assignment, transfer, conveyance or exchange, said notice shall be given and shall contain the following:
(1)
The name and address of the person to whom such well was sold, assigned, transferred, conveyed or exchanged.
(2)
The name and location of the well, property or site.
(3)
The date of sale, assignment, transfer, conveyance or exchange.
(4)
The date when possession was relinquished by the former operator.
(5)
A description of the properties and equipment transferred including a plot plan of said property.
§ 285-188 Permit required.
It shall be unlawful and a violation of this chapter for any person to commence oil operations or to explore for oil and gas or drill, redrill, deepen, rework, activate or convert any well within Upper Frederick Township without a permit having been issued in accordance with the terms of this chapter. No permit shall authorize the drilling, redrilling, deepening, reworking, activating or converting of more than one well. A well shall be deemed to be drilled, redrilled, deepened, reworked, activated or converted within the Township when it is to be located on property within the Township that is to be used for the production of the well or when lands within the Township are made part of a pool drilling unit, or are subject to unitization agreement.
§ 285-189 Procedure for permit application review.
[Amended 8-13-1998 by Ord. No. 98-4]
Any person desiring to drill or operate an oil or gas well in the Township shall make a permit application pursuant to this article.
A.
If the application meets the requirements of this article a permit will be issued to the operator of the well drilling operation. This permit shall be prominently displayed at the well or well drilling site at all times.
B.
No permit will be issued unless the provisions of this article and the provisions of all the pertinent laws of the Commonwealth of Pennsylvania which are applicable to the operation or drilling or abandonment of oil or gas wells are met.
C.
The permit application will be reviewed by the Township Board of Supervisors at a public meeting to be scheduled no more than 60 days after the permit application is filed. After this review, the Board will make its recommendation to the Zoning Officer.
D.
At least 30 days prior to the public meeting, the Township Secretary will submit a copy of the application, along with all supporting documents, to the Township Planning Commission for their review and recommendation.
E.
The Township shall give notification of the public meeting according to § 285-32 of this chapter.
F.
At least 30 days prior to the public meeting, the Township Secretary will submit a copy of the DEP approved erosion and sedimentation control plan and the rehabilitation reclamation plan to the Township Engineer for his review and recommendation; the Township, at its discretion, shall also submit, at least 30 days prior to the public meeting, the erosion and sedimentation control plan, along with all supporting documents to the Montgomery County Planning Commission (MCPC), Soil Conservation Service, or any other technical agency for their review and recommendation.
G.
A separate application and supporting papers as hereinafter set forth in § 285-190 shall be submitted for each well proposed to be drilled.
H.
The Township Zoning Officer, after considering the recommendations of the Board of Supervisors, shall issue or deny the permit within 15 days of the public meeting.
I.
Should the application be rejected, the filing fee shall in any event be retained by the Township.
J.
The permit issued pursuant to this section shall entitle the applicant to drill the well as applied for.
§ 285-190 Permit applications.
[Amended 8-13-1998 by Ord. No. 98-4]
Every application for a permit required pursuant to this chapter shall be in writing, signed by the operator or some person duly authorized to sign on his behalf; and it shall be filed with the Township Secretary. A separate application shall be made for each well to be drilled, redrilled, reworked, converted or activated and shall be accompanied by the application fee. The application shall include the following information:
A.
The date of the application.
B.
A legal description of the property.
C.
The name and address of the operator.
D.
A plot plan (three copies) which shall show the following:
(1)
Proposed locations of all oil facilities on the oil operation site including, but not limited to, locations of the wells to be drilled, fractured, shot or produced together with locations of storage tanks, access roads, dikes, pipeline, compressors, separators, storage sheds and trailers.
(2)
Name and address of the assessed owner of the surface rights, owner of the oil and gas rights, the oil and gas lessee, if any, and of the driller.
(3)
Topographical lines and floodplain areas.
(4)
Title, scale, north arrow, tax parcel number and date.
(5)
The location of and name or number of private access roads, and abutting streets and highways, occupied residences and commercial structures within 500 feet of the well; the location of all churches, hospitals, rest homes, schools, preschools, nurseries and places of public assembly within 500 feet of the well; all property lines, setback lines, building locations and water well locations on the subject tax parcel and all adjoining tax parcels and the location of all sewage systems on the subject tax parcel and all adjoining tax parcels.
(6)
The ownership of adjacent properties and a location of buildings on adjacent properties.
(8)
Type of derrick, if any, to be used including the height thereof.
(9)
Proposed route of ingress and egress to the proposed oil operations site.
(10)
Copies of all permits and applications for permit obtained pursuant to the Oil and Gas Conservation Law of the Commonwealth of Pennsylvania, 58 P.S. § 401 et seq., and/or the Gas Operations Well-Drilling Petroleum and Coal Mining Act of the Commonwealth of Pennsylvania, 52 P.S. § 2101 et seq., if applicable, as well as the DEP approved erosion and sedimentation control plan.
(11)
Landscape concept plan which meets the requirements of this chapter.
(12)
A statement signed by the operator or applicant under penalty of perjury declaring that if an applicant is duly authorized to sign on behalf of the operator and file the application, and that the information contained in the application is true and correct.
E.
There shall be submitted with all applications for a permit two copies of the rehabilitation reclamation plan. If the information required for the rehabilitation reclamation plan is included in the DEP approved erosion and sedimentation control plan, a separate rehabilitation reclamation plan is not required. This plan must be put into execution within six months of the cessation of active drilling, fracturing or shooting of oil or gas wells, or the active removal of soil or gas, unless a new plan to restart these activities is submitted to the Township Secretary within six months of the date of cessation of activity at the site. The rehabilitation reclamation plan must contain the following information:
(1)
Location, dimensions and names of all trees, shrubs and ground cover which shall be planted to control soil erosion from wind and water.
(2)
The method to be used in restoring ground level and topsoil depths to the original status on work areas, access roads and pipelines.
(3)
The method and procedure to be used in plugging abandoned wells in accordance with this chapter or state regulations.
(4)
The removal procedure for all stock piles, equipment, buildings, pipelines and fences.
(5)
The application for permit shall also indicate the following:
(a)
The method of transportation of all oil and/or gas from the well including, but not limited to, type of vehicle, capacity of tanker and route from drill site or route of pipeline, etc.
(b)
The method in which records shall be kept on the drilling operation and also on the production operation of the well. The location of such records and a certification that the Township Secretary may have access to such records upon reasonable notice.
F.
Water analysis report. Each application for a permit shall be accompanied by a water analysis report indicating the water quality of the area within a one-thousand-five-hundred-foot radius of the well site, which must be established prior to drilling, during drilling, during production and/or after abandonment. The water standards used shall be the United States Government EPA standards for primary drinking water Document #EPA 570/76-003; and, the secondary drinking water standards of the Congressional Federal Register of 7-19-1979 40 CFR, Part 143. The report shall contain the following information:
(1)
The names and addresses of all water well owners within a one-thousand-five-hundred-foot radius of the oil or gas well, who must be contacted by certified return receipt mail. Each such owner shall be offered the opportunity to have their water tested for the primary and secondary EPA standards as described above. The name, address and telephone number of the water testing laboratory with which the operator has a contact must be provided the water well owner and the Township. Water quality tests must be run by the applicant/operator prior to drilling, every 15 days after drilling starts and every six months after production or while waiting for production, and six months after the well is abandoned and the rehabilitation and reclamation has been completed. Any well owner who has not contacted the water testing laboratory within two weeks of receiving the certified mail is considered to not wish to participate in the water testing program. The cost of the water testing shall be borne by the oil well drilling operator making this application. A copy of this chapter must be included in the certified letter to the water well owner. The results of the mailing showing returned receipt cards and those well owners who requested well tests along with the initial results of those test must accompany the well permit applications. Those persons not requesting water tests must be listed by the applicant/operator and their return receipt cards must be submitted with the application.
(2)
All year-round streams within a 1,500 feet radius of the well site must have both EPA primary and secondary drinking water standards test completed; the results of which shall be submitted with the permit application, and shall have the same periodic testing as outlined in Subsection F(1), above.
(3)
Should there be no well within a 1,500 feet radius of the oil well drill site, then a monitor water well must be drilled by the applicant/operator of the site and within 300 feet of the oil well site. The well must be drilled to a depth of at least 90 feet and must be the first strata to establish a continuous flow of water of _____ gal/hr for a period of _____ hours. Primary and secondary water standards tests must be performed for this water well as described for the private wells in Subsection F(1), above.
(4)
The results of all water tests shall be kept on file with the application for the oil well drilling permit. If the water quality of any tested well is deemed to be adversely affected by the drilling and/or pumping operation, then that oil or gas shall be subject to the suspension of operation as established in this chapter.
§ 285-191 Bonds, letters of credit, indemnity and insurance.
A.
Irrevocable letter of credit and indemnity bond. Prior to the issuance of a permit for the commencement of operations, drilling, redrilling, deepening, reworking, converting or activating a well, the operator (and driller, if requested by the Township) shall provide the Township with an irrevocable letter of credit or indemnity bond, or certificate of deposit or cash and certificate of insurance as follows:
(1)
An irrevocable letter of credit or indemnity bond in the principal sum of such amount to be determined by the Board of Supervisors of Upper Frederick Township but not less than $50,000. The letter of credit or bond shall be executed by a reliable banking institution or insurance company authorized to do business in the Commonwealth of Pennsylvania, with the operator and/or driller as principal, running to the Township for the benefit of the Township and all persons concerned, conditioned that the operator and/or driller will comply with the terms and conditions of this chapter.
(2)
Such letter of credit or bond shall become effective on or before the date it is filed with the Township and remain in force and effect for at least a period of three years subsequent to the expiration of the term of the permit issued; and in addition, the bond will be conditioned that the operator and/or driller will promptly pay all legally imposed fines, penalties and other assessments imposed upon operator and/or driller by reason of his breach of any of the terms, provisions and conditions of this chapter and that the operator and/or driller will promptly clear all premises of all litter, trash, waste and other substances used, allowed or occurring in the operations and will after abandonment, or completion, grade, level and restore such property to the same surface conditions as nearly as possible as, existed when operations were first commenced and that the operator and/or driller will defend, indemnify and hold the Township, its officers, agents and employees harmless from any and all liability growing out of or attributable to the granting of such permit regardless of whether the liabilities caused in part by the Township, its officers, agents or employees or any of them. If, at any time, the Board of Supervisors shall deem an driller or operator's bond or letter of credit to be insufficient for any reason, it may require the operator and/or driller to file a new bond or increase the amount of such letter of credit.
(3)
Whenever the Township finds that a default has occurred in the performance of any requirement or condition imposed by this chapter, a written notice thereof shall be given to the operator. Such notice shall specify the work to be done, the estimated cost thereof and the period of time deemed by the Township to be reasonably necessary for the completion of such work. After receipt of such notice, the operator shall, within the time therein specified, either cause or require the work to be performed, or failing thereupon shall pay over to the Township 125% of the estimated cost of doing the work as set forth in the notice. The Township shall be authorized to draw against any irrevocable letter of credit which covers the oil operation site. Upon receipt of such monies, the Township shall proceed by such mode as deemed convenient to cause the required work to be performed and completed, but no liability shall be incurred therein other than for the expenditure of said sum in hand. In the event that the well has not been properly abandoned under the regulations of this article or the Commission, such additional money may be demanded from the operator as is necessary to restore the drill site in conformity with the regulations of this article. In the event that any letter of credit is drawn upon, the operator shall be required to post a new letter of credit in an amount to be determined by the Board of Supervisors prior to commencement of any further work on the drilling site.
(4)
In the event the operator does not cause the work to be performed and fails or refuses to pay over to the Township the estimated cost of the work to be done as set forth in the notice, or the bank refuses to honor any draft by the Township against the applicable bond or irrevocable letter of credit, the Township may proceed to obtain compliance and abate default by way of civil action against the operator, or by criminal action against the operator, or by both such methods. The posting of the letter of credit and/or the drawing upon same by Township shall in no manner be construed as a liquidated damage amount and the operator shall remain liable to Township in such amounts as may be necessary to obtain compliance and abate the default hereunder.
(5)
When the well or wells, covered by said irrevocable letters of credit, have been properly abandoned in conformity with all regulations of this chapter, and in conformity with all regulations of the Bureau and notice to that effect has been received by the Township or upon receipt of a satisfactory substitute, the irrevocable letter of credit issued in compliance with these regulations shall be terminated and canceled.
B.
Insurance. In addition to the letter of credit required pursuant to this chapter, the operator shall carry a policy or policies of insurance issued by an insurance company or companies authorized to do business in the Commonwealth of Pennsylvania, such policy or policies in the aggregate shall provide for the following minimum coverages:
(1)
Standard comprehensive general liability covering the surface property owner, oil and gas owner, oil and gas lessee, operator and Township including coverage for premises, operations, blowout or explosion, products completed operations, blanket contractual liability, underground properly damage, broad form property damage, independent contractors and personal injury. A certificate of insurance shall be given for the Township naming all of the above as insured.
(3)
Excess liability (Umbrella Form) $5,000,000, in excess of primary insurance.
(4)
Worker's compensation in the statutory amount and employer's liability $100,000 each accident.
(5)
The insurance policies set forth in Subsection B, above, shall provide that they shall not be canceled without prior written notice to the Township Secretary at least 30 days prior to the effective date of such cancellation or such other time period as may be agreed upon by the Township Board of Supervisors.
(6)
In the event such insurance policy or policies are canceled, the permit granted shall terminate on such date of cancellation and the operator's right to operate under such permit shall cease until the operator files additional insurance as provided herein.
C.
Certificate of deposit. The operator may substitute a certificate of deposit in lieu of the irrevocable letter of credit or indemnity bond set forth herein above upon the following conditions:
(1)
Such certificate of deposit shall be in such amount which shall be equal or greater than the amount of the irrevocable letter of credit or indemnity bond.
(2)
Such certificate of deposit shall be issued by a bank, selected by the operator in Montgomery County, Pennsylvania, and shall be payable to the order of the bank (however, accrued interest thereon shall be payable to the operator and the bank shall be so instructed).
(3)
Such certificate of deposit shall be delivered to the bank and evidence of the receipt thereof by the bank shall be submitted to the Township Secretary.
(4)
Such certificate of deposit shall be governed by the same terms and conditions as irrevocable letters of credit as set forth in this chapter and bank shall be so instructed.
§ 285-192 Permits.
A.
Permit issuance. When a permit application has been reviewed by the Township and meet the requirements of this article, the Zoning Officer shall, upon receipt of the permit application and filing fees, issue a permit for the exploration for oil and gas or for drilling, redrilling, deepening, reworking, activating or converting of a well. Such permit shall constitute sufficient authority for exploration, drilling, redrilling, deepening, reworking, activating, converting, operation, production, gathering of production, maintenance, repair, testing, plugging and abandonment of the well, and for the construction and use of all facilities reasonably necessary or convenient in connection therewith, including gathering lines and discharge lines on the oil operations site by the permittee; provided; however, that a permit shall be renewed before such well may be reworked for purposes of redrilling, deepening or converting such well to a depth or use other than that set forth in the current permit for such well. Such to Subsection B, a permit shall be valid for one year from the date of issuance.
B.
Permit utilization. No permit issued hereunder shall be valid unless utilization of the privileges granted thereby be commenced within 180 days from and after the date of issuance of the permit, or if after commencement, such activity is suspended or abandoned at any time for a period of 180 days.
C.
Application and permit fees. Any application for a well permit will be accompanied by a filing fee. This fee is nonrefundable. Also, a separate permit fee shall be required before the permit will be issued. The amounts of these fee shall be set by a resolution of the Board of Supervisors.
D.
Annual renewal of permit. The Township Zoning Officer, along with the Township Engineer or other Township representative, shall inspect annually, and at such other times as the Township shall deem necessary, each producing well, shut-in well and suspended or idle well or any well deemed idle by this chapter for the purpose of ascertaining whether the well is being operated or maintained within the standards of this chapter. On the first day of September next after the issuance of a permit for drilling, redrilling, reworking, activating or converting; on the first of September each year thereafter until the well has been abandoned, as provided in this article, an annual renewal of the permit shall be obtained from the Township for each and every well, including injection wells.
E.
Annual renewal of permit additional requirements.
(1)
Fencing. An annual renewal of the permit shall not be approved for any well which is not enclosed by a fence which conforms to the specifications herein set forth.
(2)
Landscaping. An annual renewal of the permit shall not be issued for any well which has not been landscaped to conform to the requirements of this chapter.
F.
New permit required for activation. No person shall activate or put into production any oil or gas well that is an idle well pursuant to this chapter, or any well whose drill site has been cleaned and restored in accordance with this chapter, or any shut-in well that does not have a currently valid drilling permit, unless an activation permit has been first obtained pursuant to the provisions of this chapter.
G.
Assignment of permit. Any permit issued pursuant to this chapter shall not be assigned, conveyed, sold, pledged or transferred. Any assignment, conveyance, sale, pledge or transfer of any permit issued pursuant to this chapter shall be void ab initio and shall void the permit.
H.
Persons liable for fees. Each of the persons whose duty is to obtain any permit shall be declared and made to be jointly and severally liable for the payment of the fees required to be paid.
I.
Violation of chapter. The Township shall consider any of the following a violation of this chapter (in accordance with Article II of this chapter):
(1)
A permittee has failed, neglected or refused to perform, comply with and abide by any of the conditions of the permit.
(2)
That permittee has failed, neglected or refused to comply with or abide by, or has in any way violated any of the provisions of this chapter, or of any other ordinances of the Township, or any other rule, order or regulation either directly or indirectly, by reason of or in connection with or incidental to his conduct of oil operations.
(3)
If any of the permittee's operations or the continuance thereof upon the premises covered by there permit are a menace or hazard to the public or private property, or to any interest of the Township, or to the lives or safety of persons in the Township.
(4)
Any of the permittee's operations or the continuance thereof upon the premises covered by the permit constitutes a public nuisance.
(5)
If permittee shall have made any willful misrepresentation of fact in any application for any such permit or in any report or record required by this chapter to be filed or furnished by the permittee.
§ 285-193 Criteria.
The following criteria shall be met before a permit will be issued:
A.
Derricks.
(1)
All derricks and portable masts used for drilling, redrilling, deepening or reworking shall meet the standards and specifications of the American Petroleum Institute as they presently exist or may be amended hereafter.
(2)
All drilling, redrilling, deepening or reworking equipment shall be removed form the oil operation site within 30 days following the completion of drilling, redrilling, deepening or reworking unless otherwise permitted by the Commission or Township Board of Supervisors.
B.
Well setbacks. It shall be unlawful to drill any well, the center of which at the surface of the ground is located:
(1)
Within 330 feet of the nearest outer boundary of the lease unit or drilling unit or within 200 feet from the boundary of any property which is not under lease by way of a surface or subsurface lease agreement.
(2)
Within 25 feet from any oil storage tank, or source of ignition.
(3)
Within 200 feet of any ultimate right-of-way of any public street, road or highway or future street.
(4)
Within 500 feet of any building used as dwelling, place of public assembly, institution or school unless written permission is provided by the owner of the structure.
(5)
Within 200 feet of a stream, spring, body of water or other natural watercourse, floodplain as defined in this chapter.
(6)
Within 200 feet of any private or public water well.
(7)
Within 300 feet of any nonresidential structure, unless written permission is provided by the owner of the structure.
(8)
Within 100 feet of a cemetery.
C.
Additional safety regulations. Property owners, operators, lessees, their agents, servants, contractees and employees and all other persons drilling, fracturing, shooting or otherwise treating under explosive or high pressure conditions, oil and gas wells or engaged in the production of oil or gas, or both, shall at all times observe and comply with the following conditions:
(1)
All electrical equipment used in and about the operation of an oil or gas well shall be installed in accordance with accepted trade practices and all applicable state and Township regulations.
(2)
In the event any tank is located within 500 feet of a residence, or place of public assembly, a fire bank constructed of earth of other suitable material shall be built and maintained around said tank to contain excess oil in case of spillage, fire or other emergency. The pit established shall have a minimum capacity equal to 150% of the tank capacity.
(3)
A property lined slush pit shall be maintained to collect the tank drainage or drawoff.
(4)
A flare, if any, shall be at least eight feet in height, properly supported and shall be equipped with a windproof flare burner.
(5)
Where multiple tanks are used, they shall be connected in tandem.
(6)
All tank manholes shall be completely closed, locked and maintained in safe condition. All tanks shall be provided with adequate emergency venting.
(7)
During drill-in fracturing processes and completion, no person not authorized by the driller, operator or contractor shall be allowed on the drill site.
(8)
Appropriate fencing as set forth herein below shall be maintained at all times.
(9)
Well location shall be maintained in an orderly manner.
(10)
No vehicle shall load oil from a storage tank while parking within a public highway right-of-way.
D.
Lights. No person shall permit or allow any lights located on any oil operation site to be directed in such a manner so that they shine directly on adjacent property or property in the general vicinity of the oil operation site. Drilling derricks or towers shall have aircraft warning lights which meet all applicable Federal Aviation Administration regulations.
E.
Signs. A sign shall be prominently displayed and maintained in good condition near or on the pumping unit or fence of each well, whether producing or not. Such sign shall be of durable material and, unless otherwise required by the Commission, shall have a surface area of not less than two square feet nor more than four square feet and shall be lettered with the following:
(1)
Well name and number.
(2)
Name of operator.
(3)
Telephone numbers of two persons responsible for said well who may be contacted in case of an emergency. In the event the drill site or leasehold is fenced it shall be sufficient if all entrances to said drill site or leasehold are posted with a sign.
F.
"No smoking" signs. "No smoking" signs of a durable material shall be posted and maintained in all locations approved or designated by the chief of the fire department. Sign lettering shall be four inches in height and shall be red on a white background or white on a red background.
G.
Waste removal. Rotary mud, drill cuttings, brine, oil or liquid hydrocarbons and all other oil field waste derived or resulting from, or connected with the drilling, redrilling, deepening or reworking of any well, shall be discharged into a portable steel tank. Unless otherwise directed by the Bureau, waste materials shall be removed from the operation site within 30 days from and after completion of drilling. No waste shall be disposed of in Upper Frederick Township.
H.
Unlined slush, sump, sump pits or skim ponds prohibited. No person shall own, operate, have possession of, be in control of, or maintain any well site, former well site or property on which an unlined slush, sump or sump pit or skim pond is located. The provisions of this section shall not apply to portable sump tanks.
I.
Access driveways and drill sites. Prior to the commencement of any drilling operations, all access driveways used for access to the drill site and the drill site itself shall be surfaced with crushed rock, gravel or ore, and shall be oiled and maintained to prevent dust and mud. In particular cases, these requirements governing surfacing of access driveways may be altered at the discretion of the Board of Supervisors after consideration of all circumstances including, but not limited to, the following, distances from public streets and highways; distances from adjoining and nearby property owners whose surface rights are not leased by the operator; the purpose for which the property of such owners is or may be used; topographical features; nature of the soil; and exposure to wind.
J.
Blowout prevention. In all cases, protection shall be provided to prevent blowout during oil operations as required by and in conformance with the requirements of the Bureau.
K.
Fences. Prior to the commencement of and during all operations, all oil operation sites and individual drill sites shall be completely enclosed by a chain link fence, masonry wall or other approved fencing material according to one of the following requirements:
(1)
The fence fabric shall be at least six feet in height.
(2)
Support posts shall be set in concrete and shall be embedded into the ground to a depth sufficient to maintain the stability of the fence.
(3)
The chain link fabric shall be galvanized steel wire with a minimum plating of 1.2 ounces of zinc per square foot of subsurface area or shall be coated with vinyl or plastic material, approved by the chief of the fire department.
(4)
The chain link fence fabric shall have a minimum thickness of 11 gauge.
(5)
The chain link fence fabric shall be two-inch mesh; provided, however, 3 1/2 inch mesh may be used on any fence where the fabric is interwoven with artificial screening material approved by the chief of the fire department.
(6)
Post and rails shall be standard galvanized, welded pipe, schedule 40 or thicker; provided, however, that nongalvanized drill pipe may be used if it exceeds schedule 40 in thickness.
(7)
All pipe and other ferrous parts, except chain link fabric and drill pipe, shall be galvanized inside and outside with platting which contains a minimum of 1.2 ounces of zinc per square foot of surface area.
(8)
Tension rods shall be 3/8 inch round steel bolt stock. Adjustable tighteners shall be turnbuckle or equivalent having a six-inch minimum take-up. Tension bars shall have a minimum thickness of 1/4 by 3/4 inch.
(9)
All fences shall have security extension arms at the top of such fences and such security extension arms shall be strung with galvanized barbed wire.
L.
Masonry wall specifications. All masonry walls used to enclose in whole or in part any oil well site or oil operation site shall be constructed in accordance with standard engineering practices and shall meet the following specifications:
M.
Gate specifications. For oil operations and drill sites, all chain link fences and masonry walls shall be equipped with at least one gated area. The gated areas shall meet the following specifications:
(1)
Each gated area shall be not less than 12 feet wide and be composed of two gates, each of which is not less than six feet wide, or one sliding gate not less than 12 feet wide. If two gates are used, gates shall latch and lock in the center of the span.
(2)
The gates shall be of chain link construction which meets the applicable specifications or of other approved material which, for safety reasons, shall be at least as secure as chain link fence.
(3)
They shall be provided with a combination catch and locking attachment device for a padlock, and shall be kept locked except when being used for access to the site.
(4)
Hinges shall be heavy duty malleable iron or steel industrial service type with a 180° swing.
N.
Muffling exhaust. It shall be unlawful for any person, owner or operator to discharge into the open air exhaust from any internal combustion engine, used in connection with the drilling of any well or for use on any production equipment 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 obnoxious gases, fumes or ignited carbon or soot.
O.
Public nuisance declared. The foregoing sections notwithstanding, no person shall conduct any oil operation in a manner that would create an unreasonable noise, odor or vibration detrimental to the health, safety or welfare of the surrounding neighborhood or any considerable number of persons. Such operation is hereby declared to constitute a public nuisance and is in violation of this chapter.
P.
Fire prevention-sources of ignition. All electrical equipment used, installed or maintained within 50 feet of a drilling rig, or within 25 feet of any other oil operation shall be installed and maintained in accordance with all applicable state and Township regulations.
Q.
Oil storage tanks. Unless otherwise directed by the Bureau, all tanks used for the storage, production of oil or the disposal of wastewater shall conform to the following:
(1)
API specifications. All tanks shall conform to American Petroleum Institute (API) specifications unless other specifications are approved by the chief of the fire department.
(2)
Dikes and capacity requirements. All persons owning, operating or having control of storage tanks, clarifying tanks or tanks used in connection with the production of oil shall construct and maintain dikes around said tanks. Drainage dikes and walls shall be constructed and maintained to meet the standards of the Bureau and the National Fire Protection Association as they presently exist and may hereafter be amended.
R.
Removal of portable pulling masts and gin poles. All well servicing equipment, including portable pulling masts and gin poles, shall be removed from the leasehold, oil operation site or drill site within seven days after completion of a well servicing operation.
S.
Storage of equipment.
(1)
No drilling, redrilling, reworking or other portable equipment shall be stored on the oil operation site which is not essential to the everyday operation of the oil well located thereon. This includes the removal of idle equipment unnecessary for the operation of such wells.
(2)
Lumber, pipes, tubing and casing shall not be left on the oil operation site except when drilling or well servicing operations are being conducted on the site.
(3)
It shall be illegal for any person, owner or operator to park or store any vehicle or item of machinery on any street, right-of-way or in any driveway, alley or upon any oil operation site which constitutes a fire hazard or an obstruction to or interference with fighting or controlling fires except that equipment which is necessary for the maintenance of the oil well site or for gathering or transportation of hydrocarbon substances from the site.
T.
Motive power for pumping and drilling. Electric motors shall be used to drive all pumping and drilling units. Diesel generators shall pour the electric motors. The use of line power from a utility company may be considered by the Board of Supervisors.
U.
Surface casing.
(1)
All casing, tubing and equipment used in the drilling and completion of a well should be in good condition and adequate in strength for the depths to be drilled and the pressures that may be encountered.
(2)
Lessee shall use a casing program which complies with oil and gas statutes and rules and regulations of the Commonwealth of Pennsylvania. (25 Pa. Code § 79.12 or as may hereafter be amended) whether or not said rules and regulations would be deemed applicable to the subject well, and which prevents the escape of oil, gas or water out of one stratum into another, the pollution of fresh water supplies and blowouts.
(3)
In addition to the above requirements the surface casing shall extend from the surface to a depth at least 75 feet below all fresh water zones known to exist in the field and adjacent area to protect them form contamination.
(4)
The production casing shall be of new or reconditioned seamless pipe of a grade and weight designed to withstand the greater of the following pressures to which the casing is planned to be stressed:
(a)
The maximum anticipated rock pressure on any point in the casing string shall not stress the casing in yield greater than 75% of the API specified internal yield pressure of the pipe at minimum yield as shown in API.
(b)
If the well is to be fractured, the casing shall be designed so that the fracture pressure anticipated at any point in the casing does not exceed the API specified internal yield pressure of the casing at minimum yield as shown in API Bulletin 5-C-2 or later amendments.
(5)
After cementing and before perforating or drilling in the casing shall be tested by pump pressure at the well head to a pressure 20% greater than the anticipated maximum pressure at the well head. If at the end of 30 minutes, pressure show a drop of 50 pounds per square inch or more, the casing shall be repaired sufficiently to withstand the pressure test described herein. After the corrective operation, the casing shall again be tested in the same manner.
(6)
All surface casing and production casing shall be cemented in the ground with good quality cement equaling or exceeding API specification in the manner hereinafter described.
(7)
Cementing of all casing strings shall be accomplished by pump and plug or another method approved by the Board of Supervisors.
(8)
An attempt shall be made to circulate the cement to the surface in cementing the surface casing. In the event that the cement cannot be circulated to the surface due to the presence of fractures or other lost circulation zones, lessee shall determine as accurately as possible the depth of the top of the cement in the annular space behind the casing and record it on the well record.
(9)
In wells where cement has not been circulated to the surface, there must be sufficient good quality cement in places in the annular space behind the casing to tightly hold the casing in place so that the escape of oil, gas or water from on stratum to another or to the surface does not occur behind the casing. The well operator, in such case, will make every reasonable effort and attempt to fill the annular space by introducing cement from the surface or other appropriate remedial action.
(10)
Cement shall be allowed to stand a minimum of 24 hours before drilling the plug or initiating tests.
§ 285-194 Screening.
A.
All oil wells and tanks, as defined in this article, shall be screened by a fence enclosure constructed on one of the following materials:
(1)
A solid masonry wall.
(2)
A chain link fabric with 3 1/2 inch mesh interwoven with opaque slats.
(3)
Any other materials, compatible with surrounding uses, which effectively screen the oil operations site and are approved by the Board of Supervisors.
(4)
All fencing, masonry walls, opaque slatting or other compatible materials, for use with chain link fabric, shall be of a solid neutral color, compatible with surrounding uses, and maintained in a neat, orderly and secure condition.
B.
Screening-drilling, redrilling, reworking, converting and activation. Within 60 days of completion of drilling, redrilling, reworking or converting or within 60 days of activation of any idle well as defined in this chapter, such well shall be screened by a fence enclosure which conform to the requirements of this chapter, and regulations of the Commission.
C.
Landscaping. Within 60 days after completion of drilling or redrilling or within 60 days after activation of any idle well, any oil operation site, shall be landscaped in accordance with a plan submitted to and approved by the Board of Supervisors.
§ 285-195 Abandoned wells.
A.
Abandonment procedure. Whenever abandonment occurs pursuant to the requirements of the Bureau, or activity ceases at the well site for a period of 180 days, the person so abandoning shall be responsible for the restoration of the drill site and oil operation site to its original condition as nearly as practicable in conformity with the regulations of this chapter.
B.
Abandoned well requirement. The responsible party shall furnish the Township with:
(1)
A copy of the approval of the Bureau, confirming compliance with all abandonment procedures under all applicable State Acts or regulations.
(2)
A notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated.
C.
Abandoned well-surface requirements. Abandonment shall be approved by the Township after restoration of the drill site and the subsurface thereof has been accomplished in conformity with the following:
(1)
The derrick and all appurtenant equipment thereto shall be removed from the drill site.
(2)
All tanks, towers and other surface installations shall be removed from the drill site.
(3)
All concrete, piping, wood and other foreign materials, regardless of depth, except surface casing, shall be removed from the drill site, unless otherwise directed by the Bureau.
(4)
All holes and depressions shall be filled with clean, compatible soil. All oil, waste oil, refuse or waste material shall be removed from the drill site.
D.
Abandonment requirements prior to new construction. All abandoned and deserted wells or drill sites shall meet the most current abandonment requirements of the Bureau whether or not the Bureau would have jurisdiction over the well site, prior to the issuance of any building or grading permit for development of the property. The maximum extent practicable, new structures shall not be constructed directly over abandoned wells.
§ 285-196 Public nuisance.
Whenever the Township Zoning Officer determines that a public nuisance, as described in this article, exits on any property or in connection with any well, drill site or lease, he shall give notice to the property owner, the lessee of surface or mineral rights, the oil operator and the occupants of any such property to abate such nuisance, according to Article II of this chapter.
§ 285-197 Cleanup and maintenance.
A.
Cleanup after well servicing. After completion of well servicing or abandonment operations, the registered operator of the well site shall clean the drill site area and repair all damage to public and private property caused by such surfacing or abandonment operations.
B.
Cleanup after spills, leaks and malfunctions. After any spill, leak or malfunction, the responsible party shall remove or cause to be removed to the satisfaction of the Township Engineer and/or chief of the fire department all oil and waste materials from any public or private property affected by such spill, leak or malfunction.
C.
Releasing of fluids. No person shall deposit, place, discharge or caused or permit to be placed, deposited or discharge any oil, naptha, petroleum, asphaltum, tar, hydrocarbon substances or any refuse including wastewater and brine from any oil operation or the contents of any container used in connection with an oil operation in, into, or upon a public right-of-way, a storm drain, ditch or sewer; a sanitary drain or sewer; any body of water; or any private property in the Township.
D.
Freedom from debris. All property on which an oil well site is located shall at all times be kept free of: (a) debris; (b) pools of oil, water or other liquids; (c) weeds; (d) brush; (e) trash, or other waste material.
E.
Painting. All production equipment on the oil operation site shall be painted and maintained at all times, including pumping units, storage tanks, and buildings or structures. When requiring painting of such facilities, the Township Zoning Officer shall consider the deterioration of the quality of the material of which such facility or structure is constructed, the degree of rust, and its appearance. Paint shall be of a neutral color, compatible with surrounding uses.
F.
Gas emission or burning prohibited. No person shall allow or cause or permit gases to be vented into the atmosphere or to be burned by open flame except as provided by law or as permitted by the Bureau. If he venting of gases into the atmosphere or the burning of gases by open flame is authorized as provided by law or as permitted by the Bureau then such vent or open flame shall be located not closer than 300 feet to any building not necessary to oil operations.
§ 285-198 Technical advisor.
The Township may from time to time employ a technical advisor or advisors who are experienced or educated in the oil and gas industry. The function of such advisor shall be to advise the Township on matters relating to oil operations within the Township and the effect, both present and future, on the health, welfare, comfort and safety of the citizens of the Township. In the event such technical advisor is employed for the purpose of advising the Township relative to an operator's particular set of circumstances, case or request, any of which are not covered by this chapter or rules or regulations of the Commission, then the cost for such services of such technical advisor shall be assessed against and paid for by such operator in addition to any fees or charges assessed pursuant to this chapter.
§ 285-199 Township Solicitor.
In the event that the Township, pursuant to provisions of this chapter, must, for any reason, bring legal action against the operator of any oil or gas operations site, then the cost for such legal services shall be assessed against and paid for by such operator in addition to any fees or charges assessed pursuant to this chapter.
§ 285-200 Compliance with law.
Any violation of the laws of this Commonwealth of Pennsylvania or any rules, regulations or requirements of any state, federal government or federal regulatory body having jurisdiction in reference to drilling, completing, equipping, operating, producing, maintaining or abandoning an oil or gas well or related appurtenances, equipment or facilities, or in reference to firewalls, fire protection, blowout protection, safety protection or convenience of persons or property, shall also be a violation of this chapter and shall be punishable in accordance with the provisions hereof.
§ 285-201 Acceptance of permit and binding effect.
By acceptance of any permit authorized to be issued pursuant to this chapter, any operator or permittee expressly stipulates and agrees to be bound by this chapter and to comply herewith and that by reference, the terms of this chapter shall be deemed to be incorporated in any permit issued pursuant to this chapter with the same force and effect as if this chapter was set forth verbatim in such permit.
§ 285-202 Liability.
A.
Nothing herein contained shall operate to impose any liability on the Supervisors of Upper Frederick Township or said Township for damages which may result to any person, firm or corporation from the drilling of any well, or the hydrofracturing or shooting of any well for which permit is issued pursuant to this chapter.
B.
Any person, firm or corporation who or which shall drill, hydrofracture or treat any well under and by virtue of a permit herein provided for shall do so at his or its own peril, and shall be liable, if at all, to any party damaged thereby, without recourse to the Township of Upper Frederick or its Board of Supervisors.