Item 7BORDINANCE NO. 880-A
AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS (“CITY”), AMENDING
ARTICLE IV “GAS AND OIL WELL DRILLING AND PRODUCTION” OF CHAPTER
9.5 OF THE SOUTHLAKE CITY CODE, REGULATING THE DRILLING AND
PRODUCTION OF GAS AND OIL WELLS WITHIN THE CITY, TO PROVIDE
REVISED REGULATIONS REGARDING DISTANCE, NOISE AND TECHNICAL
PROVISIONS; ADOPTING COMPREHENSIVE PIPELINE REGULATIONS;
PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR
PUBLICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF
CONFLICTING PROVISIONS; PROVIDING A CUMULATIVE CLAUSE; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS,
the City of Southlake, Texas, is a Home Rule Municipality located in Tarrant
County, Texas, created in accordance with the provisions of the Texas Local
Government Code and operating pursuant to the enabling legislation of the
State of Texas; and
WHEREAS,
on October 5, 2004, the City Council of the City of Southlake adopted
Ordinance Number 880 regulating gas drilling within the city limits of
Southlake; and
WHEREAS,
the City Council appointed a task force to study revisions to the gas drilling
ordinance that would improve the quality of life for citizens that may work
and live near future drill sites; and
WHEREAS,
the task force recommended an increase in the level of notification to the
citizens of Southlake, additional noise abatement procedures, site security,
signage, and other revisions that will provide additional protections of surface
property rights but continue to allow access to the minerals; and
WHEREAS,
the task force also recommended the adoption of comprehensive regulations
governing the installation and operation of pipelines within the City of
Southlake; and
WHEREAS,
the City Council finds that the regulation of the development of gas and other
hydrocarbon substances within and under the City is necessary in order to
protect the surface property rights, to protect the owners of mineral rights and
to provide for the orderly exploration, development, and production of gas and
hydrocarbons; and
WHEREAS,
the City Council deems it advisable to amend the current regulations for the
drilling, production and redrilling of gas so that these activities may be
conducted in a manner that protects the public health, safety and welfare of
the citizens of Southlake, conforms with established codes and regulations
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while minimizing the potential impact of surface property and mineral rights
owners; and
WHEREAS,
around the nation there have been safety-related incidents involving pipelines
and the City Council deems it prudent to adopt standards for such pipelines in
an effort to protect citizens and property from safety-related incidents; and
WHEREAS,
the City Council deems it advisable to adopt standards governing the
installation and maintenance of pipelines and, in accordance with Section
121.202 of the Texas Utilities Code, to adopt regulations that establish
“conditions for mapping, inventorying, or relocating pipelines over, under,
along, or across a public street or alley or private residential area in the
boundaries of a municipality”; and
WHEREAS,
the regulations set forth in Chapter 9.5 of the Southlake City Code shall be
considered the minimum requirements for the installation and maintenance of
pipelines and the development of gas and other hydrocarbon substances within
and under the City and shall not relieve any person from any duty imposed by
law to use reasonable care and precautions for the safeguarding of people and
the protection of and noninterference of property rights; and
WHEREAS,
the City Council finds and declares that the regulations contained herein are in
the best interest of the public health, safety and general welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
Section 1:
THAT, the above findings are hereby found to be true and correct and are
incorporated herein in their entirety.
Section 2:
THAT, Article IV of Chapter 9.5, of the City of Southlake City Code is
hereby amended to read as follows:
Ordinance No. 880 A
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ARTICLE IV.
DIVISION 1
GAS AND OIL WELL DRILLING & PRODUCTION
9.5-251 Purpose and Intent.
The exploration, development, and production and transportation of gas and oil in the
City are activities that necessitate reasonable regulation to ensure that all property owners,
mineral and surface, have the right to peaceably enjoy their property and its benefits and
revenues. It is hereby declared to be the purpose of this Article to establish safeguards and
regulations for operations related to the exploring, drilling, producing, transporting and storing of
gas and oil and other substances produced in association with gas and oil within the City to
protect the health, safety and general welfare of the public, minimize the potential impact to
property and mineral rights owners, protect the quality of the environment, and provide for the
orderly development of available mineral resources.
9.5-252 Definitions.
All technical industry words or phrases related to the drilling and production of wells not
specifically defined shall have the meanings customarily attributable thereto by prudent
operators in the gas and oil industry. For the purposes of this Article, the following definitions
shall apply unless the context clearly indicates or requires a different meaning.
Administrator: The City Manager or his or her designated representative.
Abandonment: “Abandonment” as defined by the Railroad Commission and includes the
plugging of the well and restoration of the drill site as required by this Article.
All-weather surface: A surface that consists of a minimum of 6 inches of compacted Class II
base rock for grades up to and including 5 percent, and oil and screened for grades up to and
including 15 percent, and asphalt or concrete pavement with a non-skid finish for grades
exceeding 15 percent to a maximum of 20 percent on a fire apparatus access road.
Ambient noise level: The all encompassing noise level associated with a given environment,
being a composite of sounds from all sources at the location, constituting the normal or existing
level of environmental noise at a given location.
Applicant: A person to whom a permit or certificate for the drilling, operation and production
of a well, or the installation or operation of a pipeline, is issued under this Article, including, but
not limited to, his or her heirs, legal representatives, successors or assigns.
Blowout preventer: A mechanical, hydraulic, pneumatic, or other device or combination of
such devices secured to the top of the well casing, including valves, fittings, and control
mechanisms connected therewith, which can be closed around the drill pipe or other tubular
goods which completely close the top of the casing and are designed to prevent blow outs.
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Base flood: The flood having a one percent (1%) chance of being equaled or exceeded in any
given year.
Building: Any structure used or intended for supporting or sheltering any use or occupancy,
which includes, but is not limited to, all related site work and placement of construction
materials on the site.
Completion of drilling, re-drilling and re-working: The date the work is completed for
drilling, re-drilling, or re-working and the crew is released by completing its work or contracted
by its employer.
Compression facility: Those facilities that compress natural gas after production-related
activities which are conducted and prior to the point where the gas is transferred to a carrier for
transport.
Construction: Causing or carrying out any building, bulk head, filling, clearing, excavation or
substantial improvement to land or to the size of any structure.
City: The City of Southlake, Texas.
City Council: The City Council of the City of Southlake.
Closed loop mud system: An enclosed suite of solids control equipment used for mud
circulation and intended to minimize drilling fluid dilution to provide for handling of the drilling
wastes so that reserve pits are not used.
Daytime: The period from 7:00 a.m. to 7:00 p.m.
Dedication: Includes, but is not limited to, a permanent easement or a fee simple
acquisition of land for a specific purpose.
Derrick: Any portable framework, tower, mast and/or structure that is required or used in
connection with drilling or re-working a well for the production of oil and/or gas.
Drilling: Digging or boring a new well for the purpose of exploring for, developing or
producing oil and/or gas or other hydrocarbons, or for the purpose of injecting gas, water, or any
other fluid or substance into the earth.
Drilling equipment: Derrick, draw works, power plant, rotary table, pumps, together with all
parts of an apparatus to such structure, every piece of apparatus, machinery or equipment used in
connection with drilling and operations.
Drill site: Area used during the drilling, re-drilling or re-working of a well or wells prior to
the reduction and conversion of the area to an operation site.
Environmentally sensitive area: An area under the jurisdiction of the U.S. Army Corps of
Engineers where scientific, ecological, cultural or aesthetic features have been identified by the
Corps of Engineers.
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Exploration: Geologic or geophysical activities, including, but not limited to, surveying and
seismic exploration, related to the search for gas and oil or other sub-surface hydrocarbons.
Excavation: Includes, but is not limited to, scraping or grading a site.
Filling: Includes, but is not limited to, disposal of excavated materials.
Floodplain: Any land area susceptible to a general and temporary condition of partial or
complete base flood inundation of normally dry land areas from overflow of inland waters or
from the unusual and rapid accumulation or runoff of surface waters from any source.
Frac, fracture or fracturing: The process of fracture stimulation of a rock formation,
including, but not limited to, the process of pumping sand laden fluids down a well to stimulate a
rock formation.
Gas: Any fluid, either combustible or noncombustible, which is produced in a natural state
from the earth and which maintains a gaseous or rarefied state at standard temperature and
pressure conditions and/or the gaseous components or vapors occurring in or derived from
petroleum or natural gas or as used in the rules, regulations, or forms of the Railroad
Commission.
Habitable structures: Structures suitable for human habitation or occupation,
including, but not limited to, single or multifamily residences, hotels, condominium
buildings, buildings for commercial purposes and enclosed spaces in which individuals
congregate for education, worship, amusement or similar purposes, or in which occupants
are engaged at labor, and which is equipped with means of egress, light, and ventilation
facilities. Each building of a condominium regime is considered a separate habitable
structure, but if a building is divided into apartments, then the entire building, not the
individual apartments, is considered a single habitable structure. Additionally, a habitable
structure includes porches, gazebos and other attached improvements.
Hazardous liquid: Defined by the Railroad Commission at 16 Texas Administrative
Code, Section 7.80, Definitions, as amended, shall mean petroleum or any petroleum
product, and any substance or material which is in a liquid state, when transported by
pipeline facilities and which has been determined by the United States Secretary of
Transportation to pose an unreasonable risk to life or property when transported by
pipeline facilities. The term shall be enlarged to include liquefied natural gas and
anhydrous ammonia should such materials at any time be introduced into any pipeline
subject to this Article. It shall also include carbon dioxide, defined at 49 CFR 192.2 as a
fluid consisting of more than ninety percent (90%) carbon dioxide molecules compressed
to a supercritical state.
Hazardous materials management plan: The hazardous materials management plan and
hazardous materials inventory statements required by the Fire Code.
Idled pipeline: A pipeline that has been inactive for at least two (2) years even though
there may be no specific plans to reactivate the pipeline.
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Inactive pipeline: A pipeline that has temporarily been taken out of service for a period
of at least six (6) months for hazardous materials or hazardous liquids and one (1) year
for natural gas with the expectation that the pipeline may be reactivated within two (2)
years even though there may be no specific plans to reactivate the pipeline.
Inspector: The oil and gas inspector designated by the Administrator.
Line marker: A marker identifying the location of a buried pipeline, as further defined in 49
CFR 192.707.
New pipelines: Pipelines constructed after the effective date of this Article but shall
not include (a) the replacement or repair of any existing pipeline; (b) the realignment of a
portion of an existing pipeline to a position that is not greater than fifty (50) feet from its
original position; or (c) surface appurtenances added to existing pipelines.
New well: A new well bore or new hole established at the ground surface and shall not
include the re-working of an existing well that has not been abandoned unless the re-working
involves drilling to a deeper total depth.
Nighttime: The period commencing at 7:00 p.m. and ending at 7:00 a.m.
Operation site: The area used for development and production of gas and oil and all related
operational activities after drilling activities are complete.
Operations: Activities leading to and supporting the production of oil, gas and/or other
hydrocarbons.
Operator: For each well, the person listed on the Railroad Commission Form W-1 or Form
P-4 for a well, that is, or will be, actually in charge and in control of drilling, maintaining,
operating, pumping or controlling any well including, without limitation, a unit operator. If the
Operator, as defined herein, for any well is not the lessee of any premises affected by the
provisions of this Article, then such lessee shall also be deemed to be an Operator. In the event
there is no gas and oil lease relating to any premises affected by this Article, the owner of the fee
mineral estate in the premises shall be deemed the Operator.
Padsite: The area around a well that serves as a foundation for the drilling rig.
Permittee: Any person authorized to act under a permit or a certificate issued by the City.
Person: An individual, firm, corporation, association, partnership, consortium, joint venture,
commercial entity, the United States government, a state, a municipality, commission, political
subdivision or any international or interstate body or any other governmental entity .
Pipeline: All parts of those physical facilities through which gas, hazardous liquids or
chemicals move in transportation, including, but not limited to, pipe, valves and other
appurtenance attached to pipe, whether or not laid in public or private easement or public
or private right-of-way within the City.
Ordinance No. 880 A
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Pipeline or well emergency: A pipeline or well incident in which any of the following
has occurred or is occurring:
(1) Fire or explosion not initiated by the Owner/Operator as part of its
operations (in accordance with accepted safety practices).
(2) Release of a gas, hazardous liquid or chemical that could adversely impact
the environment or health of individuals, livestock and/or domestic animals, and
wildlife, within the City.
(3) Death of any person or individual directly attributable to the operations of
the pipeline or well.
(4) Bodily harm to any person that results in loss of consciousness, the need to
assist a person from the scene of the incident or the necessity of medical treatment
in excess of first aid.
(5) Damage to private or public property not owned by the pipeline or well
Owner or Operator in excess of five thousand dollars ($5,000.00) in combined
values, as determined by the Administrator.
(6) The rerouting of traffic or the evacuation of buildings.
Pipeline permit: A permit applied for and issued or denied pursuant to this Article
authorizing the movement of gas, oil, water or other products to or from the location of a
well.
Pipeline Review Committee: A committee, consisting of the City Engineer, Fire
Marshal, Inspector, City Director of Planning and Development Services and, if
necessary, a third-party technical advisor, appointed to seek resolution of any substantive,
non-resolvable technical issues related to the issuance of a pipeline permit.
Pipeline Owner or Operator: Any person owning, operating or responsible for
operating an oil or gas pipeline for the purpose of transporting oil, gas, or other gasses, or
liquids related to the production of oil, gas or other hydrocarbons.
Practicable: In determining what is practicable, the Pipeline Review Committee shall
consider the effectiveness, scientific feasibility and commercial availability of the
technology or technique. The Pipeline Review Committee may also consider the cost of
the technology or technique.
Protected use: A residence, religious institution, public building, hospital building,
day care facility, park or school.
Railroad Commission: The Railroad Commission of Texas.
Residence: A building used or intended to be used as a place of general abode or dwelling
place.
Ordinance No. 880 A
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Road Repair Agreement: A written agreement obligating the Operator to repair damage,
excluding ordinary wear and tear, if any, to public streets, including, but not limited to, bridges,
caused by the Operator or its employees, agents, contractors, subcontractors or representatives in
the performance of drilling or production of any wells authorized by the City.
Specific Use Permit: A permit recommended by the Planning and Zoning Commission and
authorized by the City Council for the use of land or structures in accordance to the provisions in
section 45 of the Zoning Ordinance.
Southlake 2025 Plan: The City of Southlake Comprehensive Master Plan, as amended,
consisting of multiple elements, as adopted by the City Council.
Street: The entire width between the boundary lines of the street right-of-way that is open to
the use of the public for purposes of vehicular travel.
Street right-of-way: Land dedicated by plat, easement or by fee simple, or qualifies as a
prescriptive easement, or prescriptive right-of-way, for the use and construction of a street or
roadway.
Structure: Without limitation, any building, or combination of related components
constructed in an ordered scheme that constitutes a work or improvement constructed on or
affixed to land, including, but not limited to, habitable structures, partially enclosed structures,
enclosed tanks, etc.
Tank battery: point of collection (tanks) and disbursement (tank, meter, lease automated
custody transfer unit) of oil or gas from producing well(s).
Technical advisor: A person(s) familiar with and educated in the oil and gas industry or the
law as it relates to oil and gas matters who may be retained from time to time by the City.
Unregulated pipeline: Those pipelines within the City that enjoy exemptions under
federal and state rules that exclude such lines from construction standards, safety
standards or reporting requirements of either or both federal and state governments.
Well: A hole or bore to any horizon, formation, or strata for the purpose of producing gas, oil,
or other hydrocarbons.
Well permit: A permit applied for and issued or denied pursuant to this Article authorizing
the drilling, production, and operation of one or more wells.
Workover operations: Work performed in a well after its completion in an effort to secure
production where there has been none, restore production that has ceased or increase production.
Zoning Ordinance: The Zoning Ordinance of the City of Southlake, Texas, as it may be
amended.
Ordinance No. 880 A
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9.5-253Specific Use Permit Required.
The drilling and production of gas and/or oil within the City shall only be permitted by
Specific Use Permit in accordance with section 45 of the Zoning Ordinance. A site plan is
required with the Specific Use Permit application and must include all information required by
sections 40 and 45 of the Zoning Ordinance.
9.5-254 Road Repair Agreement.
A road repair agreement shall be submitted in conjunction with the application for
Specific Use Permit. The agreement must be approved by the City Council as a condition of the
Specific Use Permit and signed by the Operator. The Administrator shall have the authority to
execute the road repair agreement.
9.5-255Well Permit Required.
(a)No person shall engage in the drilling, production and transport of gas and oil
within the City without first obtaining a well permit.
(b)An application for a well permit and a pipeline permit must be filed with the City
concurrently with the application for a Specific Use Permit; provided, however, that the City
shall not be required to consider the application for the well permit and pipeline permit unless
and until a Specific Use Permit is approved by the City Council and all applicable regulations of
this ordinance and all other applicable city, state or federal regulations are met.
(c)When a well permit has been issued, the permit shall constitute authority for the
drilling and production of gas and oil in accordance with the limitations set forth in this Article.
The laying of pipelines shall require separate permitting in accordance with Division 2 of this
Article.
(d)An original well permit shall not, however, constitute authority for the re-entering
and drilling of an abandoned well. Re-entry and drilling of an abandoned well shall require a
new well permit.
(e)In addition to obtaining a well permit and before establishing a drill site and
access road, the Operator must obtain all the necessary permits, including an earth disturbance
permit from the building services department. The applicant shall also be required to
demonstrate compliance with Ordinance No. 585-C, as it may be amended, the City’s Tree
Preservation Ordinance.
9.5-255.5 Seismic Survey Permit Required.
(a) A separate seismic survey permit shall be required for all seismic surveys. The
Operator conducting the seismic survey shall complete and submit a seismic survey application
to the City containing, at a minimum, the following information:
Ordinance No. 880 A
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(1) Applicant name, phone number, address, and, if possible, email address; if the
Operator is a corporation, the state of incorporation, and if the Operator is a partnership,
the names and addresses of the general partners shall be provided.
(2) Location of seismic survey.
(3) Date and time the seismic survey will be conducted.
(4) Detailed explanation of the seismic survey method to be used on site.
(5) Date and time the seismic survey will be completed.
(6) Identify all staging areas.
(7) Demonstrate that the activity will adhere to the requirements of the City’s Tree
Preservation Ordinance No. 585-C, as it may be amended.
(b)Under no circumstances may explosive charges, including, but not limited to the
use of dynamite, be used to conduct a seismic survey. In addition, the seismic survey activity
shall be conducted in accordance with all applicable City ordinances.
(c)A fee in the amount of $250.00 must accompany each seismic survey permit
application.
9.5-256Application and Review of Well Permit.
(a) Every application for a well permit shall be in writing signed by the Operator, or
some person duly authorized to sign on his or her behalf, and filed with the Department of
Planning and Development Services. A separate application is required for each well bore.
(b) Each well permit application shall contain the following information:
(1) The date of the application.
(2) An accurate legal description of the lease property to be used for the oil and/or
gas operation, the parcel, and the production unit and name of the geologic formation as
used by the Railroad Commission. Property recorded by the plat should reference
subdivision, block, and lot numbers, as applicable.
(3) If a Specific Use Permit has been approved for the proposed oil and gas operation,
a list of all requirements set forth in the Specific Use Permit ordinance and written
summary of how those requirements will be met.
(4) A map showing the proposed transportation route identifying all public and
private roads/routes intended for use within the territorial limits of the City. The
transportation route must be consistent with the requirements of the Specific Use Permit.
(5) The proposed well name(s).
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(6) The surface owner name(s), phone number(s), address(es), and, if possible, email
address(es).
(7) The mineral lessee name(s), phone number(s), address(es), and, if possible, email
address(es).
(8) Operator/applicant name, phone number, address, and, if possible, email address;
if the Operator is a corporation, the state of incorporation, and if the Operator is a
partnership, the names and addresses of the general partners shall be provided.
(9) Name, phone number, address, and, if possible, email address of the individual
designated to receive notice.
(10) Name of representative with supervisory authority over all oil and/or gas
operation site activities and a twenty-four hour phone number.
(11) Owner and address of each parcel of property within one thousand (1,000) feet of
the proposed drill site.
(12) A site plan of the proposed drill site and operation site depicting the height, size,
bulk and location of all structures and equipment, including, but not limited to, all
security cameras, lighting, utilities, and the floodplain. The site plan shall also depict the
location and description of all improvements and structures one thousand (1000’) feet
outside of the operation site.
(13) The name, address and twenty-four-hour phone number of the person to be
notified in case of an emergency.
(14) The exact acreage and number of wells included in the permit application.
(15) Copies of all reports required by the Railroad Commission specifically, including
a copy of the approved Railroad Commission Form W-1 and/or P-4.
(16) A signed road repair agreement.
(17) A description of public utilities needed during drilling and operation.
(18) A description of the water source to be used during well fracturing, drilling and/or
operations.
(19) A copy of the approved Railroad Commission permit to drill together including
attachments and survey plats that are applicable to the drill and/or operation sites.
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(20) A copy of the storm water pollution prevention plan where required by the Texas
Commission on Environmental Quality, the United States Environmental Protection
Agency, and the City of Southlake, whichever is more stringent.
(21) A copy of the tree protection plan.
(22) A copy of the erosion control plan.
(23) A copy of the hazardous materials management plan. In addition to the hazardous
materials management plan, all material safety data sheets (MSDSs) detailing the
hazardous materials that will be located, stored, transported, and/or used at the drill site
shall be provided to the Inspector and Fire Marshal.
(24) A copy of the emergency response plan.
(25) A copy of the noise management plan, prepared by a noise control engineer or
other qualified person approved by the Inspector, for any equipment used in the drilling,
completion, or production of a well as required in section 9.5-265, hereof.
(26) A copy of the signage plan for both the drill site and pipelines. A representative
sample of each sign required to be displayed at the operation and drill site shall be
provided.
(27) A copy of a Screening, Fencing and Landscape Plan detailing compliance with all
landscape and screening requirements required by City ordinance, measures to be taken
to adequately irrigate all landscaping, including indicating the water source for irrigation,
and the proposed efforts to replace dead or dying screening vegetation. In addition to the
Screening, Fencing and Landscape Plan, a fully executed third-party landscape
maintenance agreement must be submitted, detailing the frequency and scope of the
landscaping services to be provided.
(28) A copy of the determination by the Texas Commission on Environmental Quality
of the depth of useable quality ground water.
(29) Evidence of insurance and security meeting the minimum levels established by
this Article.
(30) All materials required pursuant to Division 2 of this Article governing pipeline
installation and safety.
(31) A copy of all applicable right-of-way encroachment agreements.
(32) A dust mitigation plan detailing measures to be implemented to mitigate and
suppress dust generated at the drill site and the private vehicle access route. Brine water,
sulphur water, or water in mixture with any type of hydrocarbon may not be used for dust
suppression.
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(33) A public education plan addressing the requirements of section 9.5-274 hereof.
(34) A description of how the proposed operations are consistent with and adhere to
the Southlake 2025 Plan.
(35) A detailed evacuation plan addressing the evacuation strategy for a public or
private school, hospital, or daycare facility if any such facility will be located within one
thousand (1000’) feet of the proposed drill site.
(36) A waste management plan that addresses human, solid, and drilling production
waste.
(c) All applications shall be accompanied by a twenty thousand ($20,000.00) dollar
administration and inspection fee.
(d) If the application for a well permit is approved and a permit is issued, the
applicant shall at all times be required to maintain a fund with the City containing a minimum
running balance of fifteen thousand ($15,000.00) dollars for each permit application approved.
The funds shall be maintained by the City in a separate interest bearing account from which the
City shall reimburse itself for the administrative expenses, consulting fees, contracting fees or
the funding of Inspector position(s). In addition, all interest earned shall be credited to the fund
balance or refunded to the Operator if and when the minimum balance is achieved. The City
shall invoice and notify the applicant, in writing, of any deduction from the application fund and
within fifteen (15) days of receipt thereof, the applicant shall pay to the City, for deposit into the
application fund, the amount necessary to return the balance to fifteen thousand ($15,000.00)
dollars. Upon final inspection and approval by the City of a restored site the City shall return the
remaining account balance to the applicant or the applicant's approved assign. No well permit
shall be issued if the proposed activities are not in conformance with the approved Specific Use
Permit and associated site plan, provisions of this Article, the Building Code, Fire Code and all
other applicable City ordinances.
(e) Each well permit issued by the City shall:
(1) Identify the name of the well and its Operator.
(2) Specify the date on which the City issued each permit.
(3) Specify the date by which drilling must commence on the well covered by the
permit otherwise the permit expires (such date shall be one (1) year after the date of
issuance). A one (1) year extension of time may be granted if existing conditions are the
same and an application for extension is made to the Planning and Development Services
Director prior to expiration of initial permit.
(4) Specify that if drilling is commenced on the well covered by the permit before the
permit expires, the permit shall continue until the well covered by the permit is
abandoned and the site restored.
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(5) Incorporate, by reference, the indemnity, insurance and security requirements set
forth in this Article and specify that no drilling operations (including the construction of
internal private access roads) shall commence until the Operator has provided such
information.
(6) Incorporate, by reference, the requirement for periodic reports.
(7) Incorporate, by reference, the conditions of the applicable Development Plan,
and/or Specific Use Permit.
(8) Incorporate, by reference, the information contained in the permit application.
(9) Incorporate, by reference, the applicable rules, and regulations of the Railroad
Commission, including the applicable “field rules”.
(10) Contain the name, address, and phone number of the person designated to receive
notices from the City, which person must be a resident of Texas and available to receive
notices by registered or certified mail.
(11) Incorporate, by reference, all permits and fees required by the City.
(f) A decision to deny an application for a well permit shall be provided to the
Operator in writing, including the reason for the decision. The Operator may appeal any such
denial to the City Council.
(g) If an application for a well permit is denied, nothing herein contained shall
prevent a new application from being submitted to the City for the same well. A new application
fee shall accompany each new application.
(h) If the application for a well permit is approved and a permit is issued, the
applicant shall file notice in the Tarrant County real property records indicating the physical
location of the permitted drill site and the well/bore hole.
9.5-257 Oil and Gas Inspector.
(a) The Administrator shall designate the Inspector(s) who shall enforce the
provisions of this Article. The Inspector shall have the authority to issue any orders or directives
required to carry out the intent and purpose of this Article and its particular provisions. Failure of
any person to comply with any such lawful order or directive shall constitute a violation of this
Article.
(b) The Inspector and Fire Marshal shall have the authority to enter and inspect any
premises covered by the provisions of this Article to determine compliance with the provisions
of this Article and all applicable laws, rules, regulations, standards, or directives of the state.
Failure of any person to permit lawful access to the Inspector or Fire Marshal shall constitute a
violation of this Article.
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(c) The Inspector shall conduct inspections of all permitted wells in the City to
determine compliance with this Article and all regulations of the Railroad Commission.
(d) The Inspector and/or Administrator shall have the authority to request and receive
any records, including any records sent to the Railroad Commission, logs, and reports relating to
the status or condition of any permitted well related to the health, safety and operations of the
well. Failure of any person to provide any such requested material shall be a violation of this
Article.
9.5-258 Operator’s Agent.
Every Operator of any well shall designate an agent, who is a resident of the State of
Texas, upon whom all orders and notices provided in this Article may be served in person or by
registered or certified mail. Every Operator so designating such agent shall within ten (10)
business days notify the City Secretary in writing of any change in such agent or such mailing
address unless operations within the City are discontinued.
9.5-259Insurance and Indemnification.
The Operator shall provide or cause to be provided the insurance described below for
each well for which a well permit is issued, such insurance to continue until the well is
abandoned and the site restored. The Operator must provide to the City sufficient documentation
that the Operator’s insurance complies with the minimum requirements and coverage amounts of
this section the well permit may be issued.
(a) General Requirements: Indemnification and Express Negligence Provisions
(1) Each well permit issued by the City shall include the following language and
regardless of whether such language is actually included in the well permit it shall be
deemed to be included therein: OPERATOR DOES HEREBY EXPRESSLY AND
IRREVOCABLY RELEASE AND DISCHARGE ALL CLAIMS, DEMANDS,
ACTIONS, JUDGMENTS, AND EXECUTIONS OF ANY AND ALL KINDS WHICH
IT OR ITS SUCCESSORS OR ASSIGNS EVER HAD, OR NOW HAS OR MAY
HAVE, OR CLAIMS TO HAVE, AGAINST THE CITY OF SOUTHLAKE, TEXAS,
ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, EMPLOYEES,
SPONSORS, OR VOLUNTEERS, THE INSPECTOR, AND EACH OF THEIR
RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS, AND
ASSIGNS (THE CITY OF SOUTHLAKE, TEXAS AND ALL OTHER FOREGOING
PARTIES BEING HEREIN REFERRED TO COLLECTIVELY AS THE
“INDEMNIFIED PARTIES”) CREATED BY OR ARISING OUT OF PERSONAL
INJURIES, KNOWN OR UNKNOWN, OR INJURIES TO PROPERTY, REAL OR
PERSONAL, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH
THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER
A WELL PERMIT. OPERATOR AGREES TO FULLY DEFEND, PROTECT,
INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND
AGAINST EACH AND EVERY CLAIM, DEMAND, OR CAUSE OF ACTION AND
ANY AND ALL LIABILITY, DAMAGES, OBLIGATIONS, JUDGMENTS, LOSSES,
Ordinance No. 880 A
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FINES, PENALTIES, COSTS, FEES, AND EXPENSES INCURRED BY THE
INDEMNIFIED PARTIES CAUSED BY OR ARISING OUT OF, INCIDENTAL TO,
OR OTHERWISE IN CONNECTION WITH ANY WORK PERFORMED BY
OPERATOR UNDER A WELL PERMIT, INCLUDING, WITHOUT LIMITATION,
PERSONAL INJURIES AND DEATH IN CONNECTION THEREWITH WHICH
MAY BE MADE OR ASSERTED BY OPERATOR, HIS AGENTS, ASSIGNS, OR
ANY THIRD PARTIES. OPERATOR AGREES TO FULLY DEFEND, PROTECT,
INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY
CLAIMS, LIABILITIES, OR DAMAGES SUFFERED AS A RESULT OF CLAIMS,
DEMANDS, COSTS, OR JUDGMENTS AGAINST THE INDEMNIFIED PARTIES,
CREATED BY OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE CITY
OF SOUTHLAKE OR ANY OF THE OTHER INDEMNIFIED PARTIES,
OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND
SCOPE OF INSPECTING AND PERMITTING THE GAS AND OIL WELLS
INCLUDING, BUT NOT LIMITED TO, CLAIMS, LIABILITIES, AND DAMAGES
ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF ANY OF THE
INDEMNIFIED PARTIES, INCLUDING THE SOLE NEGLIGENCE OF ANY
INDEMNIFIED PARTY, OCCURRING ON THE DRILL SITE OR OPERATION SITE
IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS
AND OIL WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY
PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE
OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF SOUTHLAKE,
TEXAS AND THE OTHER INDEMNIFIED PARTIES FROM THE CONSEQUENCES
OF THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, WHETHER
THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE
RESULTANT INJURY, DEATH, AND/OR DAMAGE. THE FOREGOING IS NOT
INTENDED TO REQUIRE THE OPERATOR TO INDEMNIFY THE INDEMNIFIED
PARTIES FROM THE INDEMNIFIED PARTIES' GROSS NEGLIGENCE OR
INTENTIONAL HARM, IRRESPECTIVE OF WHETHER THAT GROSS
NEGLIGENCE OR INTENTIONAL HARM IS THE SOLE OR CONTRIBUTING
CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE.
(2) All policies shall be endorsed to read “This policy will not be cancelled or non-
renewed without thirty (30) days advanced written notice to the owner and the City of
Southlake, Texas, except when this policy is being cancelled for nonpayment of
premium, in which case ten (10) days advance written notice is required”.
(3) Liability policies shall be written by: (i) carriers licensed to do business in Texas
and with companies with A: VIII or better rating in accordance with the current Best Key
Rating Guide, or (ii) non-admitted carriers that have a financial rating comparable to
carriers licensed to do business in Texas and which are approved by the City.
(4) Liability policies shall name as “Additional Insured” the City and other
Indemnified Parties. Waivers of subrogation shall be provided in favor of all Indemnified
Parties.
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16
(5) Copies of the pertinent portion of the insurance policies evidencing all coverages
and endorsements required by this section must be presented to the City before the
issuance of the well permit, and the acceptance of a policy without the required limits
and/or coverages shall not be deemed a waiver of these requirements. The City may, in
its sole discretion, accept a certificate of insurance in lieu of a copy of the pertinent
portion of the policy pending receipt of such document by the City. After the issuance of
the well permit, the City may require the Operator to provide a copy of the most current
insurance coverages and endorsements for review at any time. An administration fee of
$150.00 will be charged to cover the cost of such review.
(6) Claims-made policies shall not be accepted except for excess policies and
Environmental Impairment (or Seepage and Pollution) policies.
(b) Required Insurance Coverage:
(1) Commercial or Comprehensive General Liability Insurance:
a. Coverage should be a minimum Combined Single Limit of Ten Million
Dollars ($10,000,000.00) per occurrence for Bodily Injury and Property Damage,
with a Twenty Million Dollar ($20,000,000.00) annual general aggregate. This
coverage must include premises, operations, blowout or explosion, products,
completed operations, blanket contractual liability, underground property damage,
underground reservoir (or resources) damage, broad form property damage,
independent contractors’ protective liability and personal injury.
b. Underground Reservoir (or Resources) Damage shall be on an occurrence
basis, shall not be limited to sudden and accidental occurrences, shall not have a
discovery or reporting limitation and shall not exclude damage to water tables,
formation or strata.
c. Environmental Impairment (or Seepage and Pollution) shall be either
included in the coverage or written as separate coverage. Such coverage shall not
exclude damage to the lease site. If Environmental Impairment (or Seepage and
Pollution) Coverage is written on a “claims made” basis, the policy must provide
that any retroactive date applicable precedes the effective date of the issuance of
the permit. Coverage shall apply to sudden and accidental pollution conditions
resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic
chemicals, liquids, Gas and oils, waste material, or other irritants, contaminants or
pollutants. Coverage shall be a minimum combined single limit of Ten Million
.
Dollars ($10,000,000.00), per occurrenceA discovery period for such peril shall
not be less than one year after the occurrence.
(2) Automobile Liability Insurance: Minimum Combined Single Limit of Ten Million
Dollars ($10,000,000.00) per occurrence for Bodily Injury and Property Damage. Such
coverage shall include owned, non-owned, and hired vehicles.
(3) Worker's Compensation Insurance: In addition to the minimum statutory
requirements, coverage shall include Employer's Liability limits of at least One Million
Ordinance No. 880 A
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Dollars ($1,000,000.00) for each accident, One Million Dollars ($1,000,000.00) for each
employee, and a One Million Dollars ($1,000,000.00) policy limit for occupational
disease, and the insurer agrees to waive rights of subrogation against any of the
Indemnified Parties for any work performed for the City by the Operator.
(4) Excess (or Umbrella) Liability Insurance: Minimum limit of Ten Million Dollars
($10,000,000.00) covering in excess of the preceding liability insurance policies.
(5) Control of Well Insurance:
a. Minimum limit of Ten Million Dollars ($10,000,000.00) per occurrence,
with a maximum deductible of Two Hundred and Fifty Thousand ($250,000.00)
per occurrence.
b. Policy shall cover the cost of controlling a well that is out of control, re-
drilling or restoration expenses, and seepage and pollution damage. Damage to
property in the Operator’s care, custody, and control with a sub-limit of Five
Hundred Thousand Dollars ($500,000.00) may be added.
9.5-260Security.
(a)A cash bond in the amount of Twp Hundred Thousand Dollars ($200,000.00)
covering each pad site must be delivered to the City before the issuance of the well permit for the
well.
(b) As to each well, the cash bond shall secure the obligations of the Operator to:
(1) Comply with the road repair agreement and the insurance provisions set forth in
this Article; and
(2) Pay fines and penalties imposed upon the Operator by the City for any breach of
the well permit or Zoning Ordinance. If fines are not paid within thirty (30) days of
issuance, the well permit may be suspended or revoked by the City.
(3) Comply with the conditions of the applicable Specific Use Permit.
(4) Comply with the performance obligations of this Article, including, but not
limited to, the screening requirements.
9.5-261Periodic Reports.
(a) The Operator shall notify the City of any change to the following information
within one (1) business day after the change occurs.
(1) The name, address, or phone number of the Operator;
(2) The name, address, or twenty-four (24) hour phone number of the person(s) with
supervisory authority over drilling, production, or operations activities;
Ordinance No. 880 A
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(3) The name, address, or phone number of the person designated to receive notices
from the City, which person must be a resident of Texas that can be served in person or
by registered or certified mail; or
(4) The Operator’s Emergency Action Response Plan including “drive-to maps” from
public rights-of-way to each area covered by the applicable Specific Use Permit and
associated site plan.
(b) The Operator shall provide a copy of any “incident reports” or written complaints
submitted to the Railroad Commission or any other state or federal agency within fifteen (15)
days after the Operator has notice of the existence of such reports or complaints.
st
(c) Beginning on December 31 after each well is completed, and continuing on each
st
December 31 thereafter until the Operator notifies the City that the well has been abandoned
and the site restored, the Operator shall prepare a written report to the City identifying any
changes to the information that was included in the application for the applicable well permit that
have not been previously reported to the City. In addition, the annual report shall include copies
of all internal reports responses to a pipeline or well emergency, copies of operations and
maintenance logs and a copy of the emergency action plan, if updated.
9.5-262Amended Well Permits.
(a) An Operator must submit an application to the City’s Planning and Development
Services Department to amend an existing well permit, to commence drilling from a new drill
site that is not shown on (or incorporated by reference as part of) the existing permit, to relocate
a drill site or operation site that is shown on (or incorporated by reference as part of) the existing
permit, or to otherwise amend the existing permit in any manner. The Director of Planning and
Development Services shall review the proposed amendment to determine if an amendment to
the applicable Specific Use Permit shall be required. If an amendment to the applicable Specific
Use Permit is required the application for an amended well permit must be processed as a new
well permit application and shall include all application materials and the appropriate fee set
forth in section 9.5-256 of this Article.
(1) Applications for amended well permits shall be in writing on forms provided by
the City and signed by the Operator, and shall include the following:
a. An application fee in the amount of five thousand ($5,000.00) dollars.
The application fee is not refundable regardless of the outcome of the
application;
b. A description of the proposed amendments;
c. Any changes to the information submitted with the application for the
current well permit (if such information has not previously been provided
to the City);
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d. Such additional information as is reasonably required by the Inspector or
the Administrator to demonstrate compliance with the applicable Specific
Use Permit and associated site plan and the provisions of this Article; and
e. Such additional information as is reasonably required by the Inspector or
the Administrator to prevent imminent destruction of property or injury to
persons.
(b) If, in the judgment of the Administrator or the Inspector, the activities proposed
by the amendment require an inspection, an inspection fee of $1,200.00 shall be charged. The
Operator must pay the fee before the amended well permit will be processed further.
(c) Incomplete applications shall be returned to the Applicant within 30 business
days. The City shall return any application as incomplete if there is a dispute pending before the
Railroad Commission regarding the determination of the Operator or where the Operator is in
violation of any federal, state, or local regulation with respect to the proposed activities covered
by the application.
(d) If the activities proposed by the amendment are materially different and, in the
judgment of the City or the Inspector, might create a risk of imminent destruction of property or
injury to persons that was not associated with the activities covered by the existing permit or that
was not otherwise taken into consideration by the current permit or the applicable Specific Use
Permit, the amendment must be processed as a new well permit application and an amendment to
the applicable Specific Use Permit shall be required.
(e) A decision to deny an amendment to a well permit shall be provided to the
Operator in writing, including an explanation of the basis for the decision. The Operator may
appeal any such denial to the City Council.
(f) No amended well permit shall be issued if the proposed activities are not in
conformance with the approved Specific Use Permit and associated site plan, provisions of this
Article, Building Code, Fire Code and all other applicable City ordinances.
9.5-263Transfer of Well Permits.
(a) A well permit may be transferred upon written request by the Operator with the
consent of the City:
(1) If the transferee agrees to be bound by the terms and conditions of the current
well permit, road repair agreement and demonstrates compliance with the pipeline
regulations set forth in Division 2 of this Article;
(2) If all information previously provided to the City as part of the current well permit
application is updated to reflect any changes; and
(3) If the transferee provides the insurance and security required by this Article.
Ordinance No. 880 A
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(b) The insurance and security provided by the transferor shall be released if a copy
of the written transfer is provided to the City. The transfer shall not relieve the transferor from
any liability to the City arising out of any activities conducted prior to the transfer.
9.5-264On-site Operation Requirements.
(a) It shall be unlawful to drill, re-drill, deepen, re-enter, activate or convert any well,
the center of which, at the surface of the ground, is located:
(1) Within _________ feet (_________') from any residence or the nearest property
line of a residential subdivision or development and within _________feet (_________')
from any religious institution, public building, hospital building, day care facility, park or
school which has been constructed or is on land that has been zoned or land use planned
before the date the application for a well permit has been filed with the City.
(2) Within _________feet (_________') from any existing storage tank, or source of
potential ignition.
(3) Within _________feet (_________') of any public street, road, highway, or right-
of-way line.
(4) Within _________feet (_________') of any building accessory to the operation of
the well.
(5) Within _________feet (_________') of a railroad right-of-way.
(6) Within _________feet (_________') from any fresh water well.
(b) All distances in (a) and (b) above, shall be measured from the proposed well bore
in a straight line, without regard to intervening structures or objects, to the closest exterior point
of any object or structure listed in subparagraphs (1) through (9) above.
(c) Erosion control measures shall be installed in compliance with the plan approved
by City Council as a condition of the Specific Use Permit, all applicable City ordinances and the
Public Works Department.
(d) A drill site or operation site may only be allowed in a floodplain with the approval
of the City or, where applicable, the U.S. Army Corps of Engineers.
(e) There shall be a locked entrance gate to the drill, production, and operation site.
(f) All facilities used for parking, loading, unloading, driveways and all other
vehicular access shall be constructed of concrete, unless an alternative material is approved by
the City Council as a condition of a Specific Use Permit or an approved variance. The surface
for such facilities and drive approach must always be maintained in good condition and repair
and meet the minimum requirements set forth in the Fire Code approved by the City Council, as
amended.
Ordinance No. 880 A
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(g) A temporary chain-link fence with all-weather screening fabric at least eight (8')
feet in height shall be established around the entire drill site to obscure view of the drilling
activities. A secured entrance gate shall be required. All gates are to be kept locked when the
Operator or his employees are not within the enclosure. A “Knox Padlock” or a “Knox Box with
a key” shall be provided to the Fire Chief to access the drill site to be used only in case of an
emergency. In addition to the foregoing, the applicant shall also be required to comply with the
screening requirements set forth in the Zoning Ordinance.
(h) A masonry perimeter wall of a minimum of eight (8') feet in height shall be
required to enclose and visually screen the well and all associated equipment during post-drilling
operations. The masonry perimeter wall shall have an architectural metal gate that shall remain
locked when the Operator or his employees are not within the enclosure. A “Knox Padlock” or a
“Knox Box with a key” shall be provided to the Fire Chief to access the drill site to be used only
in case of an emergency. In addition to the foregoing, the applicant shall also be required to
comply with the screening requirements set forth in the Zoning Ordinance.
(i) An 8’ high foot high chain link fence with barb wire or similar device as approved
by City Council shall be installed around all equipment on the pad side and interior to the
masonry screening wall.
(j) The City Council may modify the screening requirements set forth in paragraphs
(h) - (j) as a condition of any Specific Use Permit.
(k) No refining process or any process for the extraction of hydrocarbon products
shall be performed at a drill site or operation site, except that a separator may be maintained for
the separation of liquids from gas and oil. Any such separator may serve more than one well. All
production equipment on an operation site shall be maintained at all times.
(l) No person shall place, deposit, or discharge or cause or permit to be placed,
deposited, or discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, refuse,
wastewater, brine or hazardous substance from any production operation or the contents of any
container used in connection with any production operation in, into, or upon any public right-of-
way, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private
property in the City.
(m) All fire suppression and prevention equipment required by any applicable federal,
state, or local law, including the requirements of the Operator’s emergency response plan, shall
be provided by the Operator, at the Operator's cost, and the maintenance and upkeep of such
equipment shall be the responsibility of the Operator. The Operator shall be required to keep
adequate foam fire suppressant equipment and supplies at each drill site.
(n) No Operator shall excavate or construct any lines for the conveyance of fuel,
water, oil, gas and oil or petroleum liquids on, under, or through the streets, alleys or other
properties owned by the City without an easement or right-of-way license from the City, at a
price to be agreed upon, and then only in strict compliance with this section, other City
ordinances, and the specifications established by the Department of Public Works.
Ordinance No. 880 A
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(o) The digging up, breaking, excavating, tunneling, undermining, breaking up, or
damaging of any public street or leaving upon any public street any earth or other material or
obstruction, is prohibited unless the Operator has first obtained written permission from the City,
and then only in compliance with specifications established by the City.
(p) No well permit shall be issued for any well to be drilled within any of the public
street or alley rights-of-way of the City and/or future streets shown on the Master Thoroughfare
Plan. No street shall be blocked or encumbered or closed due to any exploration, drilling, or
production activities unless prior consent is obtained from the City, and then only temporarily.
(q) Annual Meeting with City Required. Each Operator shall meet annually with
representatives of the City to review emergency response plans. These reviews shall be in accord
with U.S. Department of Transportation and Railroad Commission requirements and the
Operator will:
(1) Furnish or update a copy of the Emergency Response Plan;
(2) Review the responsibilities of each governmental organization in response to an
emergency or incident;
(3) Review the capabilities of the Operator to respond to an emergency or incident;
(4) Identify the types of emergencies or incidents that will result in or require
contacting the City; and
(5) Plan mutual activities that the City and the Operator can engage in order to
minimize the risks associated with well operation.
(r) Blowout prevention. In all cases, blowout prevention equipment shall be used on
all wells being drilled, worked-over or in which tubing is being changed. Protection shall be
provided to prevent blowout during oil and/or gas operations as required by and in conformance
with the requirements of the Railroad Commission and the recommendations of the American
Petroleum Institute. The Operator must equip all drilling wells with adequate blowout
preventors, flow lines and valves commensurate with the working pressures involved as required
by the Railroad Commission.
(s) Chemical and materials storage. 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. Appropriate
pollution prevention actions shall be required and include, but are not limited to, chemical and
materials raised from the ground (e.g., wooden pallets), bulk storage, instillation and
maintenance of secondary containment systems, and protection from storm water and weather
elements.
Ordinance No. 880 A
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(t) Closed loop mud systems. A closed loop mud system shall be used instead of
lined reserve pits.
(u) Disposal Well. No saltwater or other type of disposal well shall be permitted in
the City.
(v) Drilling. Air, gas, or pneumatic drilling shall not be permitted.
(w) Drilling Fluids. Low toxicity glycols, synthetic hydrocarbons, polymers, and
esters shall be substituted for conventional oil-based drilling fluids.
(x) Drilling fluid storage pit. No drilling fluid mud, storage or reserve pits shall be
located within the City, except steel containers used in a closed loop mud system.
(y) Drill stem testing. All open hole formation or drill stem testing shall be done
during daytime hours and in no event may drill stem testing be performed during nighttime
hours. Drill stem tests may be conducted only if the well effluent during the test is produced
through an adequate oil and/or gas separator to storage tanks and the effluent remaining in the
drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down
the annulus and up the drill pipe.
(z) Drip pans and other containment devices. Drip pans and other containment
devices shall be placed or installed underneath all tanks, containers, pumps, lubricating oil
systems, engines, fuel and chemical storage tanks, system valves, connections, and any other
areas or structures that could potential leak, discharge, or spill hazardous liquids, semi-liquids, or
solid waste materials, including hazardous waste inseparable by simple mechanical removal
processes, and is made up primarily of natural material.
(aa) Dust, vibrations, odors. All drilling and production operations shall be conducted
in such a manner as to minimize, so far as practicable, dust, vibration, or noxious odors, and shall
be in accordance with the best accepted practices incident to drilling for the production of oil,
gas, and other hydrocarbon substances. All equipment used shall be so constructed and operated
so that vibrations, dust, odor, or other harmful or annoying substances or effect will be
minimized by the operations carried on at any drill site or from anything incident thereto, to the
injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be
permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in
industry standards of drilling and production in this area shall be adopted as they become
available if capable of reducing factors of dust, vibration and odor.
(bb) Electric motors. Only electric prime movers or motors shall be permitted for the
purpose of pumping wells. No electric power shall be generated on location. All electrical
installations and equipment shall conform to City ordinances and applicable national codes.
(cc) Emergency response plan. Prior to the commencement of oil and/or gas drilling,
or any other hydrocarbons production activities, Operator shall submit to the Inspector and Fire
Marshal an emergency response plan as approved by City. The Emergency Response Plan shall
be kept current with any additions, modifications, and/or amendments concerning all
construction related activities, oil and/or natural gas operations and production. Updated plans
Ordinance No. 880 A
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shall be submitted to the Inspector and Fire Marshal within two (2) business days after any
additions, modifications, and/or amendments to said plan(s). The City Council shall be informed
of any changes to the plan. A copy of the emergency response plan shall be kept on site. The
emergency response plan shall at a minimum provide for prompt and effective response to
emergencies.
(dd) Fire prevention; sources of ignition. Firefighting apparatus and supplies as
approved by the Fire Chief, or his designee, and required by any applicable federal, state, or local
law shall be provided by the Operator, at the Operator's cost, and shall be maintained on the drill
site at all times during drilling and production operations. The Operator shall be responsible for
the maintenance and upkeep of such equipment. Each well shall be equipped with an automated
valve that closes the well in the event of an abnormal change in operating pressure. All well
heads shall contain an emergency shut off valve to the well distribution line.
(ee) Frac or Surface Ponds. Fracturing ponds or surface fresh water ponds are not
permitted within the City.
(ff) Fresh water wells. Within one hundred twenty (120) days of its completion date,
each well shall be equipped with a cathodic protection system to protect the production casing
from external corrosion. The Inspector may approve an alternative method of protecting the
production casing from external corrosion. The Operator of a well shall provide the Inspector
with a "pre-drilling" and "post-drilling" water analysis and flow rate from any existing fresh
water well within two thousand feet (2,000') of the well. Such water tests shall conform to the
following testing requirements:
(1) Water samples must be collected and analyzed utilizing proper sampling and
laboratory protocol from a United States Environmental Protection Agency or Texas
Commission on Environmental Quality approved laboratory
(2) Well samples shall be analyzed prior to any drilling activity to document baseline
water quality data of the well. A post-drilling sample shall be analyzed within three (3)
months after the drilling begins.
(3) Parameters to be tested for include but are not limited to: methane, chloride,
sodium, barium, and strontium.
If it is found that the fresh water well is no longer in use and without possibility of future
use or if the fresh water well owner objects to having the water well tested, the owner of the
fresh water well may waive the right to have the applicant test the water.
(gg) Gas emission or burning restrictions. No person shall allow, cause or permit
gases to be vented into the atmosphere or to be burned by open flame. No open flaring is
permitted.
(hh) Firefighter training. Each Operator shall be required to provide training and
instruction to the Fire Department regarding well safety and emergency management protocol.
Fire Department training must occur prior to conducting drilling operations under each
Operator’s first well permit.
Ordinance No. 880 A
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(ii) Grass, weeds, trash. All drill and operation sites shall be kept clear of debris,
pools of water or other liquids, contaminated soil, brush, high grass, weeds, combustible trash
and other waste material within a radius of one hundred (100’) feet around a pad site and other
drill site or operation site equipment not located on the pad site.
(jj) Wells within flight path. All wells intended to be located within the flight path of
an airport shall require Federal Aviation Administration approval and each applicant must submit
a fully executed and recorded avigation easement as part of the well permit application process.
(kk) Hazardous materials plan. A hazardous materials management plan shall be on
file with the Inspector and Fire Marshal. The hazardous materials management plan shall be kept
current with any additions, modifications, and/or amendments to all construction related
activities and oil and natural gas operations and production. Updated plans shall be submitted to
the Inspector and Fire Marshal within two (2) business days. The City Council will be notified of
any such changes.
(ll) Organic Solvents. Organic solvents, such as trichloroethylene and carbon
tetrachloride, shall not be used for cleaning any element, structure, or component of the drilling
rig, platform, and/or associated equipment, tools, or pipes.
(mm) Pipe Dope. Lead-free, biodegradable pipe dope shall be substituted for American
Petroleum Institute (API) specified pipe dope. Sealant shall be used around pipe threads to
ensure and maintain the integrity of the seal.
(nn) Signs.
(1) A sign shall be immediately and prominently displayed at the gate on the
temporary and permanent site fencing erected pursuant to the requirements of this
section. Such sign shall be of durable material, maintained in good condition and, unless
otherwise required by the Railroad Commission, shall have a surface area of not less than
two (2) square feet or more than four (4) square feet and shall be lettered with the
following:
a. Well name and number;
b. Name of Operator;
c. Address of property;
d. The emergency 911 number; and
e. Telephone numbers of two (2) persons responsible for the well who may
be contacted twenty-four (24) hours a day in case of an emergency.
(2) Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED"
shall be posted immediately upon completion of the drill site fencing at the entrance of
each drill site or in any other location approved or designated by the Fire Chief of the
City. Sign lettering shall be four (4) inches in height and shall be red on white
Ordinance No. 880 A
26
background or white on a red background. Each sign shall include the emergency
notification numbers of the Fire Department and the Operator, well and lease
designations required by the Railroad Commission.
(3) A “Muster Point” sign shall prominently be posted at the entrance of the drill site
and the City’s Fire Marshal shall be notified of its location. The sign shall be metal and
mounted on a steel post. The sign shall be white in color with red letters that are a
minimum of 8” tall. In the event of a fire or discovery of a fire, smoke, or unauthorized
release of flammable or hazardous materials on any property, the Operator shall
immediately report such condition to the Fire Department and all capable persons on the
drill site shall immediately report to the Muster Point. The Operator shall instruct all
persons who go on the drill site of this emergency procedure prior to their entrance onto
the drill site.
(oo) Storage of equipment. Onsite storage is prohibited on the operation site. No
equipment shall be stored on the drilling or production operation site, unless it is necessary to
the everyday operation of the well. Lumber, pipes, tubing and casing shall not be left on the
operation site except when drilling or well servicing operations are being conducted on the
site. The Fire Marshal shall be the entity that determines whether any and all equipment on
the site shall constitute a fire hazard and must be removed. No refinery, processing, treating,
dehydrating or absorption plant of any kind shall be constructed, established or maintained
on the premises. This shall not be deemed to exclude a conventional horizontal gas separator.
(pp) Storage tanks.
(1) All tanks and permanent structures shall conform to the A.P.I. specifications
unless other specifications are approved by the Fire Marshal. All storage tanks shall be
equipped with a secondary containment system including lining with an impervious
material. The secondary containment system shall be a minimum of three feet (3') in
height and one and one-half (1 %) times the contents of the largest tank in accordance
with the Fire Code of the City, and buried at least one foot (1 ') below the surface. Drip
pots shall be provided at the pump out connection to contain the liquids from the storage
tank.
(2) All tanks shall be set back pursuant to the standards of the Railroad Commission
and the National Fire Protection Association, but in all cases, shall be at least ______ feet
(_____') from any public right-of-way or property line. Each storage tank shall be
equipped with a level control device that will automatically activate a valve to close the
well in the event of excess liquid accumulation in the tank.
(3) Meters, storage tanks, separation facilities, and other aboveground facilities shall
not be placed in a floodway or within a one hundred (100) year floodplain.
(qq) Surface casing. Surface casing shall be run and set in full compliance with the
applicable rules and regulations of the Railroad Commission.
Ordinance No. 880 A
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(rr) Valves. Each well must have a shutoff valve to terminate the well's production.
The Fire Department shall have access to the drill site to enable it to close the shut-off valve in
an emergency. These valves shall be painted red and signed to show they are shut off valves.
(ss) Waste disposal.
(1) Drilling mud, cuttings, liquid hydrocarbons and all other field waste derived or
resulting from or connected with the drilling, re-working or deepening of any well shall
be discharged into an aboveground self-contained tank. All disposals must be in
accordance with the rules of the Railroad Commission and any other applicable local,
state or federal agency. Unless otherwise directed by the Railroad Commission, waste
materials shall be removed from the site and transported to an off-site disposal facility not
less often than one (1) time every thirty (30) days. Water stored in on-site tanks shall be
removed as necessary.
(2)All waste shall be disposed of in such a manner as to comply with the air and
water pollution control regulations of the state, this Article, and any other applicable
ordinance of the City.
(tt) Watchperson. The Operator must keep a watchman or security personnel on-site
during the drilling or re-working of a well when other workmen are not on the premises.
(uu) Environmentally Sensitive Areas. The drilling and production of gas and oil and
accessing the drill site or operation site shall not occur within environmentally sensitive areas.
Wells may have a target location or bottom-hole location that is under an environmentally
sensitive area when the well is drilled directionally from a location outside the environmentally
sensitive area.
(vv) Heavy Vehicles. Access to all operational wells shall be limited to state or federal
highways within the City and to those routes otherwise designated in Article IV, Chapter 118 of
the Southlake City Code, governing the transportation of heavy vehicles on City streets.
(ww) Hydrogen Sulfide. If a gas or oil field in the City is identified as a Hydrogen
Sulfide (H2S) field or if a well is producing Hydrogen Sulfide (H2S) gas, the Operator shall
immediately cease operation of that well or facility.
(xx) Bond for Surface Restoration. The surface locations of all dry wells and/or
abandoned operations must be restored as nearly as possible to its original condition. The City
shall require the Operator to submit a performance bond to cover the costs of any clean-up
necessary. The amount of the performance bond shall be determined by the Administrator,
taking into account the scope of the restoration project and the cost of materials.
(yy) Security System.
(1) Alarm system. Within ten (10) days of completion of the perimeter fencing, all
sites shall have a fully operational security system that meets the following
requirements:
Ordinance No. 880 A
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(a) Remotely Monitored Access Control System. All vehicular gates in the
perimeter fencing shall be secured by a permitted, remotely monitored
control access system. The system shall meet the following requirements:
1. Monitoring. The system shall be monitored by central monitoring
facility capable of monitoring security related alarm systems and
meeting all required state and federal guidelines. The central
monitoring facility shall be staffed and operational at all times.
2. Access control. Gate access shall be secured by an access control
system with an unlocking and re-locking mechanism that requires
a card, numeric code, or other identification device for gate
operation. The system shall record the identity of the entering
party and the date and time of such entry.
3. Intrusion detection system. The system shall include a gate closure
contact sensor that will be activated when the gate closure sensor is
violated in any manner by non-identified access. The system shall
be equipped to signal a control panel which activates an on-site
audible signal and registers at the monitoring facility when an
access breach is detected.
4. Open gate detection. The security system shall include an open
gate detection alarm to notify the monitoring facility if the gate
closure sensors, once accessed, are not closed and thereby
reactivated within five (5) minutes of being opened.
5. Exit sensor. Gates shall be equipped with a motion sensor, weight
sensor or other device to unarm the gate for vehicles exiting the
site.
(b) Personnel exit gate. An exit-only gate for personnel shall be provided near
the vehicular gate entrance.
(c) Response to alarms. The alarm system shall be permitted with the City of
Southake Police Department (SPD) in accordance with the city's alarm
Ordinance. The monitoring facility shall notify the Operator and the SPD
in case of security breach at the drill site. The Operator shall respond with
an authorized representative on site within forty five (45) minutes of
notification of alarm. Fines for false alarms shall be as follows:
Number per calendar year Fine per each
1-3 $ 500.00
4-9 $1000.00
10-15 $1500.00
16-20 $2000.00
21+ $2000.00 and suspension of Gas Well Permit
Ordinance No. 880 A
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(2) Security Camera(s). At all times after the perimeter fence is in place, a minimum
of one (1) security camera shall be mounted inside the perimeter fence. Signs
shall be posted on the fencing of the site to indicate that any activity on the site
may be recorded by video surveillance. The location of the security camera and
picture resolution of the recordings shall be subject to the approval of the Police
Chief. Camera systems shall be maintained in proper operating condition and
shall meet the following criteria:
(a) capture clear video images of all traffic entering and exiting the gate(s);
(b) capture clear video images of all production equipment located on the site;
(c) be equipped with motion detection technology;
(d) be equipped with panning technology to pan immediately to any motion
detected on the site;
(e) show the date and time of all activity on the footage; and
(f) be capable of being viewed at the monitoring facility.
Operator shall maintain video data for a period of 400 hours. At the request of the
City, the Operator shall produce to the City any recorded views of the fenced area.
Data from videos may only be requested by the Administrator or law enforcement
officials.
(zz) Tank battery equipment. All tank battery facilities shall be equipped with a remote
foam line arrestor system. A sign shall be erected to clearly indicate the location of the foam line
arrestor system. All connections and the sign for the remote foam line arrestor system shall meet
industry specifications and be approved by the Fire Marshal’s office.
(aaa) Three pipe system. The three pipe system to extract oil and gas (see Illustration
___) shall be utilized. Water storage tanks shall not be permitted on the pad site except for oil
and gas separators used during drilling and fresh water tanks used during fracturing.
(bbb) Utility lines. All utility lines run to the Operation and/or Drill site shall be buried.
9.5-265Operations and Equipment Practices and Standards
.
(a)Adequate nuisance prevention measures shall be taken to prevent or control
offensive odor, fumes, dust, noise and vibration.
(b)No person shall permit any lights located on any drill site or operation site to be
directed in such a manner so that they shine directly on public streets, adjacent property or
property in the general vicinity of the drill site or operation site. Site lighting shall be shielded
and directed downward and internally so as to avoid glare on public streets and buildings within
Ordinance No. 880 A
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three hundred (300’) feet. In addition, all operations shall meet the City’s Lighting Ordinance
693-B, as amended and Federal Aviation administration approval is required where applicable.
(c)The Operator shall at all times comply with the rules and regulations of the
Railroad Commission including but not limited to all applicable Field Rules.
(d)Noise.
(1) No well shall be drilled, redrilled or any equipment operated at any location
within the City in such a manner so as to create any noise which causes the exterior noise
level when measured at the nearest protected use receiver's/receptor's property line or one
hundred (100) feet from the nearest protected use structure (as measured to the closest
exterior point of the building), whichever is closer to the receiver/receptor, that exceeds
the ambient noise level:
a. by more than ten (10) decibels during fracturing operations;
b. by more than five (5) decibels during nighttime hours during backflow operations;
and
c. by more than five (5) decibels during daytime hours and more than three (3)
decibels during nighttime hours for all activities not addressed in paragraphs a.
and b., above.
(2) The Operator shall be responsible for establishing and reporting to the City the
pre-drilling ambient noise level prior to the issuance of a well permit. Once the drilling is
complete, the Operator shall be required to establish a new ambient noise level prior to
the installation of any new noise generation equipment. In lieu of the foregoing, the City
may elect to perform the required noise testing and establish the ambient noise level,
which must be adhered to.
(3) Adjustments to the noise standards as set forth above in subsection (1) of this
subsection may be permitted in accordance with the following:
Permitted Increase Duration of Increase
(dBA) (minutes)*
5………………………………………………15
10………………………………………………5
15………………………………………………1
20………………………………….…less than 1
*Cumulative minutes during any one hour
(4) All workover operations shall be restricted to daytime hours.
(5) The exterior noise level generated by the drilling, redrilling or other operations of
all wells located within one thousand (1000’) feet of a protected use shall be monitored
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when requested by the City, to ensure compliance. The cost of such monitoring shall be
borne by the Operator.
(6) Acoustical blankets, sound walls, mufflers or other alternative methods as
approved by the Inspector may be used to ensure compliance. All soundproofing shall
comply with accepted industry standards and subject to approval by the Fire Marshal.
(7) 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.
(8) A citation may be issued for the failure to immediately correct the violation upon
notice of violation by the City or the Inspector.
(9) During nighttime operations the operation of vehicle audible back-up alarms shall
be prohibited or replaced with approved nonauditory signaling systems, such as spotters
or flagmen. Deliveries of pipe, casing and heavy loads shall be limited to daytime hours,
except for emergency situations. The Derrick Man and Driller shall communicate by
walkie-talkie or other non disruptive means only when the Derrick Man is in the derrick.
Horns may not be used to signal for connection or to summon crew (except that a horn
may be used for emergency purposes only). The Operator shall conduct onsite meetings
to inform all personnel of nighttime operations noise control requirements.
(10) A noise management plan shall be required and shall detail how the equipment
used in the drilling, completion, transportation, or production of a well complies with the
maximum permissible ambient noise levels of this Article. The noise management plan
must be approved by the Director of Planning and Development Services and must:
a. Identify operation noise impacts;
b. Provide documentation, if applicable, establishing the ambient noise level prior to
and after the installation of the noise-generation equipment verifying compliance with
this section; and
c. Detail how the impacts will be mitigated. In determining noise mitigation,
specific site characteristics shall be considered, including but not limited to the following:
1. Nature and proximity of adjacent development, location, and type;
2. Seasonal and prevailing weather patterns, including wind directions;
3. Vegetative cover on or adjacent to the site;
4. Topography; and
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5. Operation and site noise management measures which may include, but
not be limited to: use of critical grade mufflers on generators and motors;
use of structural noise curtains, walls, or enclosures; and best management
practices by limiting or eliminating noisier operations, such as tripping,
deliveries of pipe, casing and heavy loads, use of horns for
communication, and operation of vehicle audible back-up alarms during
nighttime hours.
(e) In parallel to gas and oil gathering pipeline, a flow back line may be installed to
handle water and gas and oil flow back following well fracture treatment.
(f) Except in the case of an emergency, well servicing operations and any deliveries
to the site shall be scheduled to occur during daytime hours. The time limits set forth herein do
not apply during the well drilling and well completion process.
(g) The Operator shall immediately notify the City of any substantial accumulations
of dirt, dust, mud or other debris deposited on City thoroughfares by vehicles involved in the
well drilling or servicing or pipeline installation process. The Operator shall be responsible for
removing accumulations of dirt, dust, mud or other debris from the City thoroughfares on a daily
basis. If for safety or other reasons, the City elects to perform the removal, the cost of such
removal shall be paid by the Operator.
(h) Within 30 days of the completion of the well, within 30 days of re-working a
well, or within such timeframe as determined by the Administrator, the area around the well shall
be cleaned up and cleared of all material and equipment, holes or excavations filled, and the land
graded and returned to its original condition including replanting of vegetation to match the
surrounding area.
(i) The drilling rig shall be removed from the site within 30 days of the completion
of all drilling activities indicated on the applicable well permit.
(j) No person shall place, deposit, or discharge or cause or permit to be placed,
deposited, or discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, refuse,
wastewater, brine or hazardous substance from any production operation or the contents of any
container used in connection with any production operation in, into, or upon any public right-of-
way, storm drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private
property.
(k) Compression facilities shall be prohibited in the City.
(l) Truck shakers shall be installed along the private access road to remove mud from
vehicles prior to entering the public right-of-way.
9.5-266Re-working of Well; Notice.
Any person who intends to re-work a well using a drilling rig or to fracture stimulate a
well after initial completion shall give written notice to the City at least twenty (20) days before
the activities begin. The notice shall identify where the activities will be conducted and shall
Ordinance No. 880 A
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describe the activities in reasonable detail, including but not limited to the duration of the
activities and the time of day they will be conducted. The notice must also provide the address
and twenty-four (24) hour phone number of the person conducting the activities. The person
conducting the activities shall post a sign, in English and Spanish, on the property giving the
public notice of the activities, including the name, address, and twenty-four (24) hour phone
number of the person conducting the activities. No well shall be re-worked without the approval
of the Inspector. If the Inspector determines that an inspection is required, the actual cost of the
inspection shall be assessed against the respective Operator’s application fund balance required
by section 9.5-256 of this Article.
9.5-267Well Inspections.
(a) The following inspections shall be required:
(1) Surface Casing. An Operator must set and cement sufficient surface casing to
protect all usable-quality water strata, as defined by state law. The Operator shall notify
the Inspector in writing at least seventy-two (72) hours prior to setting and cementing
surface casing. In addition, the following shall be required:
a. Centralizers must be used at an interval of one (1) centralizer per one hundred
(100’) feet, or ten (10) centralizers per one thousand (1,000’) feet.
b. New surface casing is required.
c. Proper floating equipment shall be used.
d. Class “H” or Class “C” cement with accelerators shall be used.
e. The Operator shall circulate cement to surface; if not, the Operator shall cement
with one (1) inch tubing and top off.
f. The Operator shall wait on cement a minimum of twelve (12) hours prior to
commencing further drilling operations.
g. The Operator shall test the blowout preventer before drilling out of surface casing
to one thousand (1,000) psi.
(2) Completion. The Operator shall notify the Inspector in writing at least seventy-
two (72) hours prior to starting completion procedures such as fracturing and perforating.
The well must be equipped with a blowout preventer or x-mas tree in place before this
operation is commenced. If a bridge plug is set over a producing formation prior to
additional completion, it must be pressure-tested to a sufficient pressure to ensure that it
is not leaking.
(3) Pipeline. The Operator shall notify the Inspector in writing at least seventy-two
(72) hours prior to the first sale.
Ordinance No. 880 A
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(4) Final Inspection. After the site has been cleaned up and screened, the Operator
shall notify the Inspector for a final inspection. Prior to the final inspection, the Operator
must provide the City with geographic coordinates of the well bore, using the North
American Datum 1983 (NAD 83), Texas State Plane - North Central Zone (4202), in
United States feet.
(b) The Inspector shall conduct periodic inspections at least every six (6) months of
all permitted wells in the City to determine that the wells are operating in accordance with the
requirements of this Article and all regulations of the Railroad Commission. The actual cost of
each inspection shall be assessed against the respective Operator’s application fund balance
required by section 9.5-256 of this Article.
9.5-268 Supplemental Drilling.
(a) Supplemental drilling to deepen or directionally drill a well that has not been
abandoned shall be conducted in accordance with the conditions of the applicable Specific Use
Permit and associated site plan and the well permit for the well.
(b) The Operator shall provide the City with a copy of additional Railroad
Commission permits that allow drilling to a deeper depth.
9.5-269 Abandonment of Wells and Pipelines.
(a) Upon abandonment of a well or drill site, within sixty (60) days, the well shall be
plugged in accordance with Railroad Commission standards, the site shall be cleaned and cleared
of all material and equipment, holes or excavations filled, and the land graded and returned to its
original condition including replanting of vegetation to match the surrounding area. All well
casings shall be cut and removed to a depth of at least ten (10) feet below the surface.
Additionally, the Operator shall mark the exact location of plugged and abandoned wells with a
steel marker not less than four inches in diameter set in cement and extending at least four feet
above mean ground level. The Operator name, lease name and well number and location, shall be
welded, stamped or otherwise permanently engraved into the marker’s metal. A plugged and
abandonment marker may not be removed without the approval of the City Council.
(b) Structures may be built no closer to an abandoned well than is permitted pursuant
to state law, including, but not limited to, the applicable rules and regulations of the Railroad
Commission.
(c) Within sixty (60) days after abandonment of a pipeline, the line must be purged
and plugged in accordance with the rules and regulations of each governmental agency with
jurisdiction over the activity, including, but not limited to, the Railroad Commission,
Environmental Protection Agency, and the Texas Commission on Environmental Quality. The
Operator shall also be required to comply with the provisions of Division 2 of this Article,
governing pipeline safety and operations.
(d) Abandonment of a drill site must be approved by the Inspector and approval
requires completion of the following by the Operator:
Ordinance No. 880 A
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(1) The derrick and all appurtenant equipment thereto shall be removed from the drill
site;
(2) All equipment, materials, and other surface installations shall be removed from
the drill site;
(3) All concrete foundations, piping, wood, guy anchors and other foreign materials
regardless of depth, except surface casing, shall be removed from the site;
(4) All holes and depressions shall be filled with clean, compactable soil;
(5) All waste, refuse or waste material shall be removed from the drill site; and
(6) All other requirements of this Article have been met, including, but not limited to,
restoration of the drill site.
(e) In accordance with section 9.5-267 of this Article, the Operator shall request a
final inspection of a well intended to be abandoned and furnish the following information to the
Inspector:
(1) A copy of the W-3A “Notice of Intention to Plug & Abandon” and “W-3
Plugging Record” forms on the same date these forms are submitted to the Railroad
Commission; and
(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 and shall take no longer than forty-five (45) days once
commenced.
(f) All abandoned wells or drill sites shall meet the most current abandonment
requirements of the Railroad Commission and this Article prior to the issuance of any building
permit for development of the property.
(g) The Director of Planning and Development Services shall indicate the location of
each plugged and abandoned well on the City’s land use map.
9.5-270Clean Up
.
(a) Cleanup after well servicing. After the well has been completed, or plugged and
abandoned, the Operator shall clean the drill site or operation site, complete restoration activities
and repair all damage to public property caused by such operations within thirty (30) days.
(b) Clean-up after spills, leaks and malfunctions. After any spill, leak or malfunction,
the Operator shall remove or cause to be removed to the satisfaction of the Fire Marshal and the
Inspector all waste materials from any public or private property affected by such spill, leak or
malfunction. Clean-up operations must begin immediately. The owner shall be subject to
criminal citation and a fine of up to two thousand ($2000.00) a day per violation for each day the
violation is permitted to continue.
Ordinance No. 880 A
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(c) Painting. All production equipment shall be painted and maintained at all times,
including wellheads, pumping units, tanks, and buildings or structures. When requiring painting
of such facilities, the Director of Planning and Development Services 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. Neutral colors shall include sand, gray and unobtrusive shades of green, blue and brown, or
other neutral colors approved by the Director of Planning and Development Services.
Notwithstanding the foregoing, the City Council may require the use of specific paint colors, on
a case-by-case basis, as part of the applicable Specific Use Permit.
(d) Blowouts. In the event of the loss of control of any well, Operator shall
immediately take all reasonable steps to regain control regardless of any other provision of this
Ordinance and shall notify the Administrator and Fire Marshal as soon as practicable. If the
Administrator or Fire Marshal, in his opinion, believes that danger to persons and property exists
because of such loss of well control and that the Operator is not taking or is unable to take all
reasonable and necessary steps to regain control of such well, the Administrator or Fire Marshal
may then employ any well control expert or experts or other contractors or suppliers of special
services, or may incur any other expenses for labor and material which they deem necessary to
regain control of such well. The City shall then have a valid lien against the interest in the well of
all working interest owners to secure payment of any expenditure made by the City pursuant to
such action of the Administrator or Fire Marshal in gaining control of said well.
9.5-271 Technical Advisor
.
The City may from time to time employ a technical advisor or advisors who are
experienced and educated in the oil and gas industry or the law as it pertains to oil and gas
matters. The function of such advisor(s) shall be to advise, counsel or represent the City on such
matters relating to oil and gas operations within the City as the City may want or require and the
effect thereof, both present and future, on the health, welfare, comfort and safety of the citizens
of the City. In the event such technical advisor(s) is employed for the purpose of advising,
counseling or representing the City relative to an Operator's unique and particular set of
circumstances, case or request relating to this Article, then the cost for fees or charges assessed
pursuant to this Article shall be borne entirely by Operator. Prior to the employment of a
technical advisor, the City shall inform the Operator of the intended scope of work and the
estimated costs and expenses. The employment of a technical advisor shall be approved by the
City Council.
9.5-272 Remedies of the City.
(a) If an Operator or his/her officers, employees, agents, contractors, subcontractors
or representatives fails to comply with the conditions of the applicable Specific Use Permit and
associated site plan or any requirement of a well permit (including any requirement incorporated
by reference as part of the permit), or any applicable provisions of this Article or any other City
ordinances, the City shall endeavor to give written notice to the Operator specifying the nature of
the alleged failure and giving the Operator a specified time to cure, taking into consideration the
nature and extent of the alleged failure, the extent of the efforts required to cure, and the
potential impact on the health, safety, and welfare of the community. If circumstances warrant
Ordinance No. 880 A
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proceeding without notice, no notice shall be required. In any case, failure to give such notice
shall not prohibit the City from pursuing any available remedy.
(b) If the Operator does not cure the alleged failure within the time specified by the
City, the City may notify the Railroad Commission and request that the Railroad Commission
take appropriate action. In addition, the City may pursue all other remedies allowed by law,
including, but not limited to, the following:
(1) The Administrator may suspend the well permit until the alleged failure is cured;
and
(2) The Administrator may revoke the well permit if the Operator fails to initiate and
diligently pursue a cure; and
(3) The Administrator may seek recourse against the security delivered pursuant to
this section; and
(4) A criminal citation may be issued for violation of the Specific Use Permit, this
Article, or any other ordinance or order of the City
(c) The Operator may appeal a decision to suspend or revoke the well permit to the
City Council in accordance with the provisions of section 9.5-275 of this Article.
9.5-273 Enforcement, Right of Entry.
The Administrator, Fire Marshal and the Inspector are authorized and directed to enforce
this Article, the terms and conditions of any approved Specific Use Permit, and the provisions of
any well permit. Whenever necessary to enforce the foregoing, or whenever there is reasonable
cause to believe there has been a violation of any of the foregoing, Administrator, Fire Marshal
and/or the Inspector may enter upon any property covered by this Article at any reasonable time
to inspect or perform any duty or requirement imposed by this Article. If entry is refused, the
City shall have recourse to pursue every remedy provided by law and equity to gain entry.
9.5 -274 Public Information.
(a) Public Information regarding well permit activity.
(1) After approval of a permit application, the Operator shall submit to the Inspector
an accurate written timeline account of all planned operational events associated with the
permit. The account must be updated weekly and must thoroughly describe the events
that will occur. Events to be documented shall include, but are not limited to, site
preparation and grading, site construction of the drilling rig and accessory structures, the
expected amount of time spent drilling on site, all casing installation, testing, disassembly
of the drilling rig, pipeline installation, fracture stimulation, maintenance, installation of
production facilities, site cleanup, and production.
(2) The Operator shall submit an educational letter detailing operations within fifteen
(15) days of approval of the well permit to all property owners within 2,000 feet of the
Ordinance No. 880 A
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permitted bore hole(s). If multiple wells are permitted, the Operator may consolidate
information regarding each well into a single letter. The letter shall detail typical
operations associated with oil and gas drilling activity with an intended audience of the
general public. The topics to be detailed shall include, but are not limited to, site
preparation, site development and construction, drilling, casing, fracturing, pipeline
construction, production, transportation, and general weekly, monthly, and yearly
maintenance of the operation site.
(3) At least once each calendar year, the Operator shall attend a City-wide Southlake
Program for the Involvement of Neighborhoods (“SPIN”) meeting and respond to citizen
questions and complaints. The Director of Planning and Development Services shall
notify each Operator of the time and date of the annual SPIN meeting that the Operator
shall attend.
9.5-275Variance; Appeal Procedure.
(a) An Applicant for a permit or other approval required by this Article may apply for
a variance from the requirements of this Article by submitting to the Director of Planning and
Development Services a written request for variance. The request must include the following:
(1) Description of the requested variance and an explanation of why it should be
granted; and
(2) Description of alternatives considered and why each is not the preferred
alternative; and
(3) Description of the economic consequences if the variance is not granted; and
(4) Description of how the level of health, safety and welfare of the public will be
maintained if the variance is granted; and
(5) A site plan of the site visually depicting the requested variance if the request for
the variance involves the location or orientation of persons or property.
(b) The Director of Planning and Development Services shall review the application
and may place the variance request on the City Council agenda for consideration. In considering
the variance the City Council may take into account the following:
(1) Whether the operations proposed are safe and reasonable under the circumstances
and conditions prevailing in the area, considering the particular location and the character
of the improvements located there;
(2) How the operations proposed compare to available alternatives;
(3) Whether the operations proposed would conflict with the orderly growth and
development of the City;
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(4) The economic consequence if the variance is not granted;
(5) Whether the operations proposed adequately protect the health, safety and welfare
of the public; and
(6) Whether the operations proposed provide acceptable access for fire personnel and
fire fighting equipment.
(c) Approval of a variance requires that a minimum of ____ City Council members
vote in favor of the approval. The details of each action granting or denying the requested
variance shall be recorded and entered in the files of the City Secretary, and the Director of
Planning and Development Services shall forward a letter to the Applicant stating whether the
City Council has approved or denied the variance request and listing any conditions placed upon
an approval.
(d) If within 45 days of receiving the request for a variance, the Director of Planning
and Development Services does not place the variance request on the agenda for City Council
consideration the variance request shall be considered routine in nature and shall be deemed
approved.
DIVISION 2. OIL AND GAS PIPELINE STANDARDS
Sec. 9.5-306 Purpose.
It is hereby declared to be the purpose of this Division to establish reasonable and
uniform limitations, safeguards, and regulations for present and future operations related to
transporting oil and gas and other substances produced in association with oil and gas, within the
corporate limits of the City to protect the healthy, safety and general welfare of the public;
minimize the potential impact to property and persons; protect the quality of the environment;
and encourage the safe and orderly transport of oil and gas resources.
Sec. 9.5-307 Definitions.
The words and phrases used in this Division are specifically defined in section
9.5-252 of this Article. All technical industry words or phrases related to the
transportation of oil, gas, hydrocarbons, and other substances produced in association
with oil, gas and other hydrocarbons not specifically defined shall have meanings
customarily attributable thereto by prudent Operators in the oil and gas industry.
Sec. 9.5-308 General Requirements and Minimum Design Standards.
(a) A pipeline permit is required as follows:
(1) It shall be unlawful for any person, acting either for himself or as an
agent, employee, independent contractor or servant of any other
person, to commence to construct, install, operate or reconstruct a
Ordinance No. 880 A
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pipeline or any section of a pipeline or to operate any pipeline or to
assist in the construction, installation, operation or reconstruction of
a pipeline if a lawful pipeline permit has not been obtained.
(2) Any applications to construct, lay, rework, wrap or otherwise lower
or replace existing pipelines or install monitoring or recovery wells
shall be submitted to the City in a form prescribed by the City.
(3) Each application for a pipeline permit shall be accompanied by five
(5) paper sets and one (1) electronic set of plans showing the
dimensions and locations of the pipelines and related items or
facilities within the subject right-of-way or easement, as well as all
proposed lift stations, pumps or other service structures related to
such pipeline and the location, type and size of all existing utilities,
drainage, right-of-way and roadway improvements. The plans must
additionally show the elevation and location of all known public
utilities within fifteen feet (15’) of the centerline of the proposed
pipeline.
(4) Within thirty (30) days after the date of filing of said application and
plans, the City shall send notice to the applicant as to whether the
application will be accepted for processing and the total charge due.
If the application is rejected, reasons for rejection of the application
shall be provided in writing.
(5) No pipeline permit may be issued unless and until a Specific Use
Permit is approved by the City Council for the well or wells within
the City, intended to be served by the pipeline.
(b) No pipeline for the transportation of gas, oil or hydrocarbons from wells to
be drilled shall be constructed or laid except on rights-of-way or easements owned by the
owners or Operators of wells or third party pipeline companies, or upon designated
drilling tracts and upon rights-of-way or easements necessary to connect future wells to
present lines.
(c) In order to enable the holder of each pipeline permit to move gas, oil, water
or other products to or from the location of a well, the holder of each pipeline permit
shall apply to the City for an easement on, over, under, along or across the City streets,
sidewalks, alleys and other City property for the purpose of constructing, laying,
maintaining, operating, repairing, replacing and removing pipelines so long as production
or operations may be continued under any pipeline permit issued pursuant to this
Division; provided, however, such permittee shall:
(1) Not interfere with or damage existing utilities including but not limited
to: water, sewer or gas lines, storm drains, electric lines or the facilities
Ordinance No. 880 A
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of public utilities located on, under or across the course of such right-of-
way.
(2) Furnish to the Inspector a site plan showing the location of such
pipelines for the transport of gas, oil or hydrocarbons. Said site plan
shall conform to the City’s standards for site plans, pursuant to section
40 of the Zoning Ordinance, as amended.
(3) Construct such lines or cause same to be constructed out of new pipe.
(4) Grade, level and restore such property to the same surface condition, as
nearly practicable, as existed before operations were first commenced.
(5) All required agreements pursuant to this division shall be completed,
reviewed, and resolved by the City Engineer, City Attorney,
Administrator, and, by City Council, prior to the determination of any
pipeline permit as being administratively complete.
(d) Pipeline trenches shall be backfilled and compacted to ninety five percent (95%)
standard density proctor in eight inch (8”) lifts and pipelines shall be constructed so as to
maintain a minimum depth of eight feet (8’) below the finished grade except in public rights-
of-way, where minimum cover to the top of the pipe shall be at least eight feet (8’) below the
bottom of any adjacent roadside ditch. Public roads shall not be crossed by open cut. During
the backfill of any pipeline excavations, “Buried Pipeline” warning tape shall be buried one
foot (1’) above any such pipeline to warn future excavators of the presence of a buried pipeline.
(e) In all cases in which one or more residential lots in a proposed subdivision are
crossed or come by or come within one hundred feet (100’), of any existing oil or gas pipeline
or pipeline easement, the subdivider shall, prior to and as a condition of City approval of the
subdivision, execute the following waiver and hold harmless agreement, which shall be duly
acknowledged in the manner provided by law, and which shall thereafter be recorded in the
appropriate deed or other permanent county records:
“(Subdivider Name), by and through its duly undersigned and authorized
officer, does hereby state that it fully realizes that it is applying for a permit
from the City of Southlake to build within one hundred feet (100’) of an
existing oil or gas pipeline or pipeline easement, and that the City of Southlake
considers building near such pipeline or pipeline easement to have certain
inherent dangers, including, but not limited to, explosion and release of
noxious, toxic and flammable substances. For the aforementioned reasons
(Subdivider Name) hereby RELEASES and agrees to forever HOLD
HARMLESS the City of Southlake, Texas, its officers, officials, employees,
successors and assigns from all liability in any way arising from the building,
use or habitation of (structure described in the said permit).”
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(f) In all cases in which one or more residential lots in a proposed
subdivision are crossed or come by or come within one hundred feet (100’) of any
existing oil or gas pipeline or pipeline easement, the subdivision shall provide a note
on the face of the development plan and record plat stating that the subdivision is
crossed or is located within one hundred feet (100’) of an existing oil or gas pipeline.
(g) Construction, repair and/or maintenance of all pipelines, gathering lines,
and production lines shall meet or exceed the minimum criteria established by the
statutory or regulatory requirements of the state and federal governments for oil and
gas pipelines.
(h) Transmission pipelines, gathering lines and production lines within the City
,
limits shall be constructed in accordance with this Division and shall be designed and
constructed to the latest standards mandated by the United States Department of
Transportation (DOT) and Railroad Commission for pipelines operating within a Class
3 location in accordance with 49 CFR 192.111.
(i) Pipelines subject to this Division shall be constructed with an automated
pressure monitoring system that detects leaks and shuts off any line or any section of
line that develops a leak. In lieu of such system, the pipeline Operator may have 24
hour pressure monitoring of the pipeline system which provides monitoring of the
pipeline within the City limits. Any monitoring system(s) shall be keyed to or
required to notify the City’s emergency response providers in order to provide them
with immediate notice of any leak.
(j) Construction of the pipeline must commence within six (6) months of
approval by the City or otherwise the pipeline permit expires. A one-year extension of
time may be granted if existing conditions are the same, as determined by the Director
of Planning and Development Services. Once construction has commenced, the
pipeline permit shall continue (i) until the pipeline covered by the pipeline permit is
complete and the site restored, or (ii) one year has elapsed since the approval date of
the pipeline permit, whichever occurs first.
(k) The Administrator may require that sections of proposed pipeline be
constructed at deeper depths based upon future City infrastructure needs. The Administrator
may also require that a pipeline relocated should it conflict with the proposed alignment and
depth of a gravity dependent utility.
Sec. 9.5-309 New Pipeline Permit Application.
(a) At least forty-five (45) days prior to the scheduled commencement of the
construction of a new pipeline, the pipeline Owner or Operator shall submit an
application and pay a fee in the amount of ______, for a pipeline permit to the City
pursuant to its intention to construct the pipeline and shall submit the following
information in the application for a pipeline permit:
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(1) The name, business addresses and telephone numbers of the
pipeline Owner or Operator.
(2) The names, titles and telephone numbers of the following:
a. The person submitting the application and petition for the
pipeline construction;
b. The person designated as the principal contact for the
submittal;
c. The person designated as the twenty-four hour emergency
contact; and
d. The person or firm that will operate the pipeline.
(3) The origin point and the destination of the segment of the pipeline to
be constructed.
(4) A text description of the general location of the planned pipeline.
(5) A description of the substance to be transported through the
pipeline.
(6) A copy of the substance material safety data sheet (MSDS).
(7) The maximum allowable operating pressure on the pipeline, along
with the Specified Minimum Yield Strength (SMYS) of the pipe, its
pressure class, and design calculations in accordance with 49 CFR
192.105, assuming a Class 3 or better location.
(8) The normal operating pressure range of the pipeline, not to exceed
the maximum allowable operating pressure as designated above.
(9) Engineering plans, drawings and/or maps with summarized
specifications showing the horizontal pipeline location, pipeline
covering depths, and location of shutoff valves (the location of
shutoff valves must be known in order for emergency responders to
clear area for access valves.) To the extent that information can be
obtained, drawings shall show the location of other pipelines and
utilities that will be crossed or paralleled within fifteen (15’) feet of
the proposed pipeline right-of-way.
(10) A description of the consideration given to matters of public safety
and the avoidance, as far as practicable, of existing inhabited
structures and congregated areas.
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(11) Detailed cross section drawings for all public street right-of-way and
easement crossings
(12) Methods to be used to prevent both internal and external corrosion.
(13) A binder or certificates of all bonds and insurance as required under
this Division.
(14) All application materials required pursuant to the City’s Tree Preservation
Ordinance, as it may be amended, including a tree survey measured from
the outer edge of any improvements, construction areas, development,
equipment, materials, temporary roads, access easements, and/or built
structures, extending twenty-five (25) feet, without regard to intervening
structures or objects.
(15) A proposed alignment strip map showing name and address of all affected
property owners.
(b) If the application for a pipeline permit is approved and a permit is
issued, the pipeline Owner or Operator shall at all times be required to maintain a fund
with the City containing a minimum running balance of fifteen thousand ($15,000.00)
dollars for each permit application approved. The funds shall be maintained by the
City in a separate non-interest bearing account from which the City shall reimburse
itself for the administrative expenses, consulting fees, contracting fees or the funding
of Inspector position(s). The City shall invoice and notify the pipeline Owner or
Operator, in writing, of any deduction from the application fund, and, within fifteen
(15) days of receipt thereof, the pipeline Owner or Operator shall pay to the City, for
deposit into the application fund, the amount necessary to return the balance to fifteen
thousand ($15,000.00) dollars. The City shall return the remaining account balance to
the applicant or the applicant's approved assign if the pipeline subject to the pipeline
permit is disconnected from all sources or supplies of gas, hazardous liquids and
chemicals, and capped or sealed at the ends and/or removed in accordance with the
provisions of this Division. No pipeline permit shall be issued if the proposed
activities are not in conformance with this Article and all other applicable City
ordinances, state and federal law.
Sec. 9.5-310 Permit Approval.
(a) The applicant shall submit an application as described in section 9.5-308.
Any application submitted that is determined to be administratively incomplete shall be
returned to the applicant within ten (10) business days of the submittal date along with a
letter documenting the deficiencies of the application, if any.
(b) After the submission of an administratively complete application, an
administrative conference may be conducted to seek resolution of any substantive, non-
resolvable technical issues. The conference shall be conducted with the Pipeline Review
Committee, which shall consist of the City Engineer, Fire Marshal, Inspector, City
Ordinance No. 880 A
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Director of Planning and Development Services and, if necessary, a third-party technical
advisor. The costs associated with the technical advisor shall be borne by the applicant.
A quorum of at least three (3) members must be present to conduct a conference with at
least one (1) of the members present at the conference having emergency management
expertise. Any decision by the Pipeline Review Committee is final.
(c) From time to time the City may need to obtain an independent study or
analysis of an application or petition to construct a new pipeline. The City, upon approval by
the City Council after recommendation by the Pipeline Review Committee, shall engage duly
qualified independent consultant(s) or contractor(s) to conduct such special studies or
analyses as required to fully evaluate and act upon an application for a new pipeline. The
actual cost for said consultant or contractor, including the cost of any inspections deemed
necessary by the Pipeline Review Committee or otherwise required by this Division, shall be
billed directly to the pipeline Owner or Operator’s fund balance established pursuant to
section 9.5-309(b), of this Article.
(d) The pipeline Owner or Operator shall give notice forty-eight (48) hours prior to
the commencement of pipeline construction to all residents and business establishments that are
located within five hundred feet (500’) of the proposed centerline of the pipeline.
(e) Upon completion of pipeline construction the pipeline Owner or Operator shall
provide the City with as-built or record drawings of the pipelines within sixty (60) calendar days.
Accuracy of the record drawings shall meet a survey level of one foot (1’) to fifty thousand feet
(50,000’). The scale of the record drawings shall be a minimum of 1” = 40’. The drawings shall
also be supplied in as DFF digital file format with the location tied to one (1) nearby GPS (global
positioning system) City monument. If the new pipeline length exceeds one thousand feet
,
(1,000’) within the City the pipeline shall be tied to at least two (2) GPS City monuments.
(f) Any change in service of a pipeline not previously addressed by this Division
to gas, hazardous liquid or chemical service must be reviewed in accordance with the new
pipeline review procedure outlined herein, as if it were new pipeline construction.
(g) A preconstruction conference with the Pipeline Review Committee shall be
required prior to the commencement of pipeline construction.
Sec. 9.5-311 Public Education.
(a) In keeping with the Natural Gas Pipeline Safety Act of 1968 and 49 CFR
192.614, “Damage Prevention Program,” 49 CFR 192.615, “Emergency Plans,” the
Hazardous Liquids Safety Act of 1979, and 49 CFR 195.408, “Communications,” 49 CFR
195.440, “Public Awareness,” and the Community Right-to-Know Act, 40 CFR Parts
350-374:
(1) Each pipeline Owner or Operator shall maintain a public education
program that is communicated to residents and business
Ordinance No. 880 A
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establishments within one thousand feet (1,000’) of the centerline of
a pipeline.
(2) Pipeline information communicated pursuant to subsection (1) shall
contain the following subjects:
a. Pipeline location;
b. Material transported within the pipeline;
c. Pipeline markers;
d. How to recognize a pipeline;
e. How to report a pipeline emergency;
f. Contact information regarding underground utility locations;
g. Additional requirements for excavations near a home or
business; and
h. Response needs during a pipeline, emergency, including
instructions for sheltering in the event of an emergency.
(3) Public education information shall be communicated at least
annually in both English and Spanish.
(4) The City shall notify all property owners within one thousand feet
(1,000’) of the proposed pipeline, in writing, by U.S. regular mail, of
the proposed construction date of the pipeline. The actual cost of
said notice shall be billed directly to the pipeline Owner or Operator’s
fund balance established pursuant to section 9.5-309(b), of this Article.
Sec. 9.5-312 Pipeline Information Reporting Requirements.
(a) Each pipeline Owner or Operator shall provide to the Inspector, the Fire
Marshal, and the Police Chief the names, mailing addresses and telephone numbers of at
least two (2) primary persons, officers or contacts available on a twenty-four hour basis
and at least two (2) alternative persons, officers or contacts to be reached in the event that
the primary contacts are unavailable who:
(1) Can initiate appropriate actions to respond to an emergency;
(2) Have access to information on the location of the closest shutoff
valve to any specific point in the City; and
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(3) Can furnish the common name of the material then being carried by
the pipeline.
Any change in the above information must be provided to the City by contacting the
Inspector prior to such change.
(b) Every Owner or Operator of a pipeline subject to this Division shall be
required to present to the City a safety report and file with the City an annual verified
safety report in letter form on or before June 30 of each year to cover a reporting period
of June 1 through May 31. Said written safety report shall contain the following
information and said information shall be presented to the Inspector by every Owner or
Operator of a pipeline subject to this Division:
(1) A statement that the pipeline has no outstanding safety violations as
determined in an inspection or audit by either the Railroad
Commission and/or the U.S. Department of Transportation with
regard to any pipeline operating within the City. Alternatively, if
there are any safety violations as determined by the Railroad
Commission and/or the U.S. Department of Transportation that have
not been corrected, these shall be described to the City with an
action plan to correct the safety violations. Said action plan shall
include a timeline for corrective action and the individual or firm
responsible for each action.
(2) Evidence that the pipeline Owner or Operator has current liability
insurance covering each respective pipeline in the minimum amount
of five million dollars ($5,000,000.00). Insurance carriers must be
licensed to conduct business in the state and possess at least an “A”
rating by the A.M. Best Company.
(3) A statement that the pipeline information specified in subsection (a)
is correct. Alternatively, in the event that the required information
on file with the City is no longer correct, updated or corrected
information shall be submitted within five (5) calendar days of the
change and the updated information shall be submitted with the
annual safety report.
(4) Owners or Operators of any unregulated pipeline who have no
reporting responsibility to the Railroad Commission or the U.S.
Department of Transportation and who may otherwise operate
outside the safety regulations of either of these agencies shall
additionally provide the following pertaining to the preceding
reporting period of June 1 through May 31:
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a. Copies of internal reports of responses to pipeline
emergencies, as pipeline emergency is defined in this
Article;
b. Current operations and maintenance logs; and
c. Current emergency action plan.
(5) A log of all the maintenance and monitoring activities conducted on
all lines subject to this Division for the reporting period shall be
made available upon request by the City.
(6) The designated Owner or Operator shall submit the annual safety
report with respect to all pipelines subject to the ordinances of the
City of Southlake. The safety report and verification shall be
executed by an officer or a person who is authorized to sign such
safety report letter and make verification. The prescribed form of
verification on the safety report letter shall read:
Verification
I, NAME, TITLE, of OWNER/OPERATOR, am authorized to make
and have made the foregoing annual safety report letter to the City
for oil and gas pipelines. Any attachments made to this letter are true
and correct copies of originals and the information provided in this
letter is true and correct to the best of my knowledge and is
information based on the standard of inquiry and investigation as
would be made by a reasonably prudent pipeline Owner or Operator
within the City of Southlake.
__________________________________________
Signature of Officer or Person Authorized to Sign Letter
STATE OF TEXAS §
COUNTY OF [Place Where Safety Letter is Prepared] §
The foregoing annual safety report letter was sworn to
and subscribed before me by (signatory of letter) on this ____
day of __________, 20____.
Signed:
___________________________________
Notary Public for the State of Texas
Printed Name: _______________________
My Commission Expires: _______________
Ordinance No. 880 A
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(7) The actual administrative costs incurred by the City in reviewing the
annual safety letter shall be billed directly to the pipeline Owner or
Operator’s fund balance established pursuant to section 9.5-309(b), of
this Article.
(8) A copy of all initial or follow-up reports provided to the U.S.
Department of Transportation or the Railroad Commission on unsafe
pipeline conditions, pipeline emergencies or pipeline incidents
within the City must be filed concurrently with the City. In addition,
any initial or follow-up reports filed with state and federal
environmental regulatory agencies pertaining to pipeline releases
within the City must be filed concurrently with the City.
(9) Upon written request, the pipeline Owner or Operator shall make
available during normal business hours and at the pipeline Owner or
Operator’s local office, documents for review that are required for
submittal to or to be maintained on file for the U.S. Department of
Transportation and the Railroad Commission such as:
a. Operations and maintenance;
b. Employee training;
c. Annual inspection;
d. Repair records;
e. Operating records; and
f. Insurance.
In the case of unregulated pipelines, the City may request any such additional information
that the City deems necessary, in the best interests of the City, and necessary to protect
the public health, safety and general welfare.
Sec. 9.5-313 Pipeline Markers.
(a) In accordance with U.S. Department of Transportation and Railroad
Commission requirements, pipeline Owners or Operators shall place and maintain permanent
line markers as close as practical over the pipeline(s) at each crossing of a public street, utility
easement or railroad. Marker(s) shall also be maintained along each pipeline that is located
above ground in an area accessible to the public. The markers shall be of permanent type
construction and contain labeling identifying the:
(1) Pipeline Owner or Operator;
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(2) Twenty-four-hour contact telephone number; and
(3) A general description of the product transported in the pipeline; i.e.,
natural gas, oil, petroleum.
(b) No person shall tamper with, deface, damage or remove any pipeline marker,
except the pipeline Owner or Operator.
(c) Upon specific reasonable request of the Owner of a real property on which a
residence is located and through which a pipeline traverses, the pipeline Owner or Operator
shall install temporary pipeline markers or flagging to reduce the possibility of pipeline
damage or interference, in accordance with this Division.
(d) The material, design, color, size and content of each line marker shall subject to
City Council approval prior to installation.
Sec. 9.5-314 One Call System.
(a) The Owner or Operator of any pipeline that transports gas, oil, liquids or
hydrocarbons that is located in the City shall be a member in good standing with the One Call
system or other approved excavation monitoring system as required by state law. The Owner
or Operator of any pipeline that transports gas, oil, liquids or hydrocarbons subject to this
Division shall contract for service with the selected underground utility coordinating system
for a minimum of five (5) years unless there is an agreement to change to an alternate system
between the City and the pipeline Owners or Operators. Said services shall be maintained
without interruption for the life of the pipeline permit. The selected underground utility
coordinating system may be different that the one used by the City for other underground
utility services.
(b) Prior to beginning any excavation, trenching or digging using powered
equipment or hand tools that may damage a pipeline, any person within the City shall be
required to contact the One Call System and any other appropriate underground utility
coordinating systems and determine if there are any pipelines or public utilities in the
vicinity of the proposed activities.
(c) If physical contact is made with a pipeline during any excavation, trenching
or digging, the pipeline company must be notified by the person or agency making the
physical contact with the pipeline for any necessary pipeline inspection or repair.
Sec. 9.5-315 Inactive and Idled Pipelines.
(a) Inactive Pipelines
(1) All reporting records specified in section 9.5-311 shall be maintained
and kept current on inactive pipelines.
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(2) Inactive pipelines shall be purged of gas, hazardous liquids, and
chemicals, and physically isolated if such action does not adversely
effect the pipeline Owner or Operator’s right-of-way easement and
does not prevent the pipeline Owner or Operator from maintaining the
physical integrity of the pipeline. These pipelines shall be maintained
to prevent deterioration.
(3) The means used to physically isolate, if such action is taken, the
inactive pipeline shall be included in the information retained on file
with the City for reporting as specified in section 9.5-311.
(b) Idled Pipelines
(1) An entry shall be made to the required reporting records as required
in section 9.5-311 that the pipeline has been idled.
(2) Idled pipelines shall be purged, disconnected from all sources or
supplies of gas, hazardous liquids and chemicals, and capped or
sealed at the ends.
(3) Reactivation of idled pipelines shall require notification of the City
pursuant to the standards and requirements specified in section 9.5-
311. Reactivation shall require pressure testing for integrity and
compliance with Railroad Commission and/or United States
Department of Transportation regulations.
Sec. 9.5-316 Emergency Response Plans and Emergency Incident Reporting.
(a) Each pipeline Owner or Operator shall maintain written procedures to
minimize the hazards resulting from an emergency. These procedures shall at a
minimum provide for:
(1) Prompt and effective response to emergencies:
a. Leaks or releases that can impact public health, safety or
welfare;
b. Fire or explosions at or in the vicinity of a pipeline or
pipeline easement; or
c. Natural disasters;
(2) Effective means to notify and communicate required and pertinent
information to local fire, police, and public officials during an
emergency;
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(3) The availability of personnel, equipment, tools and materials as
necessary at the scene of an emergency;
(4) Measures to be taken to reduce public exposure to injury and
probability of accidental death or dismemberment;
(5) Emergency shut down and pressure reduction of a pipeline;
(6) The safe restoration of service following an emergency or incident;
(7) A follow-up incident investigation to determine the cause of the
incident and require the implementation of corrective measures.
(b) Each pipeline Owner or Operator shall meet annually with the Inspector and
Fire Marshal to review emergency response plans. These reviews shall be in accord with
U.S. Department of Transportation and Railroad Commission requirements and the
Owner or Operator will:
(1) Furnish or update a copy of the emergency response plan described
in subsection (a);
(2) Review the responsibilities of each governmental organization in
response to an emergency or incident;
(3) Review the capabilities of the pipeline Owner or Operator to respond
to an emergency or incident;
(4) Identify the types of emergencies or incidents that will result in or
require contacting the City; and
(5) Plan mutual activities that the City and the pipeline Owner or
Operator can engage in to minimize risks associated with pipeline
operation.
(6) At this meeting, the City shall provide the pipeline Owner or
Operator with a list of additional contacts that shall be made in the
event of a pipeline emergency or incident. The City will inform the
pipeline Owner or Operator of the emergency response groups that
will be contacted through 911.
(c) Upon discovery of a pipeline emergency or incident, the following
communications are to be initiated by the affected pipeline Owners or Operators:
(1) A general description of the emergency or incident;
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(2) The location of the emergency or incident;
(3) The name and telephone number of the person reporting the
emergency or incident;
(4) The name of the pipeline Owner or Operator;
(5) Whether or not any hazardous material is involved and identification
of the hazardous material so involved; and
(6) Any other information as requested by the emergency dispatcher or
other such official at the time of reporting the emergency or
incident.
(d) The pipeline Owner or Operator shall contact any other emergency response
groups that are necessary that may not be activated through the county 911 system.
(e) The pipeline Owner or Operator shall contact the Southlake Fire Services
immediately after the discovery of any pipeline emergency.
(f) Notwithstanding any provision in this Division, each pipeline, containing
natural gas which contains hydrogen sulfide in concentrations of more than one hundred
(100) parts per million, shall be constructed with an audible alarm system that will
provide an alarm to the general public in the event of a leak from any pipeline, gathering
or flow line subject to this Division. Said audible alarm system shall be of a type and
design approved by the City.
(g) Within two (2) years of the effective date of the pipeline permit and every
two (2) years thereafter, the pipeline Owner or Operator shall conduct an on-site,
emergency drill that includes, but shall not be limited to, the personnel operating the
pipeline, local law enforcement personnel, and officials of the City.
(h) Notwithstanding the foregoing, all incidents involving well safety or
integrity that do not rise to the level of a pipeline emergency shall additionally be
reported to the City by completing an incident report on forms prepared by the City.
Incident reports must be filed by the pipeline Owner or Operator within twenty-four (24)
hours of discovering the incident.
Sec. 9.5-317 Pipeline Repairs and Maintenance.
(a) All repairs and maintenance are to be performed in accordance with U.S.
Department of Transportation and Railroad Commission mechanical integrity requirements.
This requirement applies to all pipelines covered by this Division, unregulated as well as
those operating under federal rules.
(b) If non-emergency repairs necessitate excavation of the pipeline, prior
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notification is required to occupants of business establishments and residential dwellings
located within five hundred feet (500’) from the centerline of the pipeline to be
excavated.
(c) Above-ground non-emergency repairs that are not routine maintenance
necessitate prior notification to occupants of businesses and residential dwellings located
within five hundred feet (500’) from the centerline of the pipeline section to be repaired.
(d) Without limitation of the methods of giving the notice required in
subsections (b) and (c), notice shall be by U.S. regular mail, postage prepaid mailed at
lease five (5) days prior to commencing any non-emergency repair.
(e) Inspection of the interior of all pipelines subject to these standards shall
follow United States Department of Transportation and Railroad Commission rules.
Sec. 9.5-318 No Grant of City Easement, No Assumption of Responsibility by City.
(a) Nothing in this Division grants permission for the use of any street, way or
property of the City, and any such use shall be subject to the City at its sole discretion.
(b) Nothing in this Division shall be construed as an assumption by the City of
any responsibility of an Owner or Operator of a pipeline not owned by the City, and no
City officer, employee or agent shall have authority to relieve an Owner or Operator of a
pipeline from their responsibility under this Division or by any other law, ordinance or
resolution.
Sec 9.5-319 Protection and Painting of Structures.
All pipeline risers and all appurtenances related to pipeline construction and
operations composed of materials generally protected or painted shall be protected and
painted and shall be repainted at sufficiently frequent intervals to maintain same in good
condition. It shall be a violation of this Division for any pipeline riser and/or
appurtenances related to pipeline construction and operations to be in a state of disrepair
or to have chipped, peeling or unpainted portions thereof.
Sec. 9.5-320 Waiver/Hold Harmless Agreement Required for Issuance of
Building Permit.
Any person, firm or corporation wishing to obtain a building permit for the
erection, construction, reconstruction or expansion of any structure, of which any portion
of such erection, construction, reconstruction or expansion would occur within one
hundred feet (100’) of an existing oil or gas pipeline or pipeline easement, shall, prior to
and as a condition of the issuance of such building permit, execute the following waiver
and hold harmless agreement, which shall be duly acknowledged in the manner provided
by law, and which shall thereafter be notarized and recorded in the appropriate deed or
other permanent county records:
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“I, (Applicant’s Name), do hereby state, on my oath, that I fully realize I am
applying for a permit from the City of Southlake to build within one hundred
feet (100’) of an existing oil or gas pipeline easement; that I am fully aware
of the dangers inherent in building near such pipeline or easement, including,
but not limited to, explosion and release of noxious, toxic and flammable
substances; and, further, that I do hereby RELEASE and agree to forever
HOLD HARMLESS the City of Southlake, Texas, its officers, officials,
employees, successors and assigns from all liability in any way arising from
the building, use or habitation of the structure described in the said permit.”
Sec. 9.5-321 Street and Right-of-way Use.
(a) In the event an oil or gas pipeline is placed within any public right-of-way
under the jurisdiction of the City, the Owner/Operator shall comply with the right-of-
way use regulations as provided in the City of Southlake Code of Ordinances and obtain
an appropriate franchise or license for the use of such right-of-way.
(b) To the extent that the provisions of this Division conflict with the City’s
right-of-way use ordinance, this Division shall apply.
Sec. 9.5-322 Violations.
(a) Any pipeline Owner or Operator subject to this Division, who shall have
failed to comply with this Division, shall be deemed to maintain a nuisance and the City
may take such measures to remedy such nuisance, including, but not limited to,
revocation of the pipeline Owner or Operator’s pipeline permit.
(b) It shall be a violation of this Division for a person to knowingly make a
misrepresentation of any information to be reported pursuant to this Division. It shall
also be a violation of this Division if the person makes such misrepresentation as a result
of failure to exercise such due diligence of investigation or inquiry, as would a
reasonably prudent pipeline Owner or Operator conducting business in the jurisdiction of
the City.
(c) Each violation of any section, subsection or part of this Division shall be a
separate offense. Each day of ongoing violation shall be a separate offense, and shall
carry with it a fine of not less than one thousand dollars ($1,000.00) per day nor more
than two thousand dollars ($2,000.00) per day.
(d) The City shall be entitled to injunctive relief or any other appropriate relief
in a court of appropriate jurisdiction to prevent violation of or to compel compliance
with this Division.
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Sec. 9.5-323 Bond and Insurance Required.
(a) In the event that a pipeline permit is issued for a pipeline or other
operations under this Division, no actual operation shall be commenced until the
permittee shall file with the City Secretary a bond and a certificate of insurance as
follows:
(1) No person shall begin the construction or operation of any pipeline
until he has filed with the City Secretary a duly executed bond
executed by the applicant as principal with an AM Best “A” rated
surety company that is acceptable to the City and is licensed to
conduct business in the state as surety, payable to the City and the
policy shall name the City as an additional insured and such surety
company shall maintain an A.M. Best “A” rating for the policy
period. Said bond shall include conditions that the applicant, its
heirs, assigns and successors will do the following:
a. Comply with the terms and conditions of the application and
this Division in the construction, operation and maintenance
of the pipeline and related structure(s).
b. That all streets and sidewalks and all other public places and
all public utilities that may be injured or damaged in the
operation will be restored to their former condition.
c. That all litter, machinery, buildings, trash, and waste used,
accumulated or allowed in the construction of any pipeline
will be removed within ten (10) days of the completion of
said construction.
d. That all litter, machinery, buildings, trash, and waste used,
accumulated or allowed in the operation of any pipeline will
be removed within (10) days of the completion of said
operations.
e. Such bond shall be in the sum of $1,000,000.00 and before
the pipeline permit shall be issued, the bond shall be
approved by the City and filed with the City Secretary. Such
bond shall become effective upon the granting of the pipeline
permit and shall remain in full force and effect until all work
under the terms of such pipeline permit has been completed.
Such bond may later be amended to include other pipelines,
under provisions of other applications, or other permits.
(2) In addition to the bond required in subsection (a)(1) above, each
person desiring to construct a pipeline or to conduct any other work
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under the provisions of this Division shall be required to carry public
liability insurance with a carrier rated “A” or better by A.M. Best in
a minimum amount of $1,000,000.00 for one person and
$5,000,000.00 for one accident and property damage insurance in the
amount of $10,000,000.00 for one accident, which shall remain in
full force and effect and be carried so long as such pipeline is
operated. A certificate of insurance shall be furnished annually by
the permittee or the subsequent Owner and Operator of such pipeline
showing that such insurance is and continues in effect.
(3) Permittee shall provide and maintain in full force and effect during
the term of its permit insurance with the following minimum limits:
a. Worker’s compensation at statutory limits;
b. Employer’s liability, including bodily injury by accident and
by disease, for $500,000.00 combined single limit per
occurrence and a twelve-month (12-month) aggregate policy
limit of $1,000,000.00;
c. Commercial general liability coverage, including blanket
contractual liability, products and completed operations,
personal injury, bodily injury, broad form property damage,
operations hazard, pollution, explosion, collapse and
underground hazards for $5,000,000.00 per occurrence and a
twelve-month (12-month). aggregate policy limit of
$10,000,000.00; and
d. Automobile liability insurance (for automobiles used by the
permittee in the course of its performance under the pipeline
permit, including employer’s non-ownership and hired auto
coverage) for $2,000,000.00 combined single limit per
occurrence.
(b) The City shall adjust the above minimum liability limits every five (5)
years during the term of the pipeline permit, or sooner as determined by City Council, to
compensate for the effects of inflation and with the objective to reestablish the value of
coverage required as of the effective date of this Division.
(c) Each policy or an endorsement thereto, except those for worker’s
compensation and employer’s liability, shall name the City and its officers, officials,
employees, successors and assigns as additional insured parties, but limited to risks
indemnified pursuant to this Division. If any such policy is written as “claims made”
coverage and the City is required to be carried as an additional insured, then the
permittee shall purchase policy period extensions so as to provide coverage to the City
for a period of at least two (2) years after the last date that the pipeline permit is in
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effect. No deductible shall exceed ten percent (10%) of the minimum limits of liability
or one percent (1%) of the consolidated net worth of the permittee and its permitted
affiliates, whichever is greater.
(d) Permittee shall assume and bear any claims or losses to the extent of
deductible amounts and waives any claim it may ever have for the same against the City
and its officers, officials, employees, successors and assigns in respect of any covered
event.
(e) All such policies and certificates shall contain an agreement that the
insurer shall notify the City in writing not less than thirty (30) days before any material
change, reduction in coverage or cancellation of any policy. Permittee shall give written
notice to the City within five (5) days of the date upon which total claims by any party
against permittee reduce the aggregate amount of coverage below the amounts required
by the pipeline permit.
(f) Each policy must contain an endorsement to the effect that the insurer
waives any claim or right in the nature of subrogation to recover against the City, its
officers, officials, employees, successors and assigns.
(g) Each policy must contain an endorsement that such policy is primary
insurance to any other insurance available to the City as an additional insured with
respect to claims arising thereunder.
(h) The City Council may modify the requirements of this section 9.5-323, as
it deems appropriate, in order to account for the risk and possible threat to the public
health, safety and general welfare posed by the operation of pipelines within the City.
Sec. 9.5-324 Termination of Permit.
Any violation of the provisions of any or all sections of this Division shall be
grounds for the termination of any pipeline permit. The termination of any oil and gas
pipeline permit shall require the immediate cessation of all operations subject to the
pipeline permit and shall require the pipeline Owner or Operator to reapply for a new
pipeline permit in full accordance with the provisions of this Division.
Section 3:
This ordinance shall be cumulative of all provisions of ordinances of the City of
Southlake, Texas, except where the provisions of this ordinance are in direct
conflict with the provisions of such ordinances, in which event the conflicting
provisions of such ordinances are hereby repealed.
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Section 4:
It is hereby declared to be the intention of the City Council that the phrases,
clauses, sentences, paragraphs and sections of this ordinance are severable, and if
any phrase, clause, sentence, paragraph or section of this ordinance shall be
declared unconstitutional by the valid judgment or decree of any court of
competent jurisdiction, such unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of this ordinance,
since the same would have been enacted by the City Council without the
incorporation in this ordinance of any such unconstitutional phrase, clause,
sentence, paragraph or section.
Section 5:
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses
to comply with or who resists the enforcement of any of the provisions of this
ordinance shall be fined not more than Two Thousand Dollars ($2,000.00) for
each offense. Each day that a violation is permitted to exist shall constitute a
separate offense.
Section 6:
All rights and remedies of the City of Southlake are expressly saved as to any and
all violations of the provisions of Ordinance No. 480, as amended and Ordinance
880, as amended, or any other ordinances affecting oil, gas and hydrocarbon
drilling, production, development, and transportation which have accrued at the
time of the effective date of this ordinance; and, as to such accrued violations and
all pending litigation, both civil and criminal, whether pending in court or not,
under such ordinances, same shall not be affected by this ordinance but may be
prosecuted until final disposition by the courts.
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Section 7:
The City Secretary of the City of Southlake is hereby authorized to publish this
ordinance in book or pamphlet form for general distribution among the public,
and the operative provisions of this ordinance as so published shall be admissible
in evidence in all courts without further proof than the production thereof.
Section 8:
The City Secretary of the City of Southlake is hereby directed to publish the
proposed ordinance or its caption and penalty together with a notice setting out
the time and place for a public hearing thereon at least ten (10) days before the
second reading of this ordinance, and if this ordinance provides for the imposition
of any penalty, fine or forfeiture for any violation of any of its provisions, then the
City Secretary shall additionally publish this ordinance or its caption and penalty
in the official City newspaper one time within ten days after final passage of this
ordinance, as required by Section 3.13 of the Charter of the City of Southlake.
Section 9:
This ordinance shall be in full force and effect from and after its passage and
publication as required by law, and it is so ordained.
PASSED AND APPROVED on the 1st reading the _______ day of ______________, 2008.
_______________________________
MAYOR
ATTEST:
_______________________________
CITY SECRETARY
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PASSED AND APPROVED on the 2nd reading the ______ day of ______________, 2008.
_______________________________
MAYOR
ATTEST:
_______________________________
CITY SECRETARY
APPROVED AS TO FORM AND LEGALITY:
_________________________________
CITY ATTORNEY
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