O-2969-12-10ORDINANCE NO. 2969-12-10
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, AMENDING THE CODE OF ORDINANCES BY AMENDING
CHAPTER 6, "HEALTH AND ENVIRONMENT," BY ADDING A NEW ARTICLE
IX TITLED "OH, AND GAS WELLS"; PROVIDING FOR DEFINITIONS;
PROVIDING REQUIREMENTS FOR A DRILLING PERMIT; PROVIDING
DRILLING STANDARDS; PROVIDING A FEE; PROVIDING A REPEALING
CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABEITY
CLAUSE; PROVIDING FOR A PENALTY OF FINE NOT TO EXCEED THE SUM
OF TWO THOUSAND DOLLARS ($2,000.00); AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Allen Code of Ordinances contain no comprehensive drilling standards or regulations
concerning the extraction of oil and gas mineral interests within the City's incorporated limits; and,
WHEREAS, the City Council of the City of Allen, Texas, finds that it is in public interest of the City to
provide for reasonable regulations for mineral extraction (oil and gas) or drilling and such regulations are
necessary to protect surface property rights, to protect mineral rights, to provide for the orderly development
of mineral extraction (oil and gas) or drilling within the City, and to protect the public health and safety of its
citizens.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
' COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The Code of Ordinances of the City of Allen, Texas, is hereby amended, by amending
Chapter 6, "Health and Environment," by adding Article IX, "Oil and Gas Wells" to read as follows:
"ARTICLE UC. OIL AND GAS WELLS
Sec. 6-001. Purpose.
The exploration, development and production of oil or gas in the City is an activity which necessitates
reasonable regulation to ensure that all property owners, mineral and otherwise, have the right to peaceably
enjoy their property and its benefits and revenues. It is hereby declared to be the purpose of this Article to
establish reasonable and uniform limitations, safeguards and regulations for present and future operations
related to the exploring, drilling, developing, producing, transporting and storing of oil or gas and other
substances produced in association with oil or gas within the 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 encourage the orderly production of available mineral resources.
Sec. 6402. Definitions.
All technical industry words or phrases related to the drilling and production of oil and gas wells not
specifically defined in this Article shall have the meanings customarily attributable thereto by prudent
operators in the oil and gas industry. For the purposes of this Article, the following definitions shall apply
unless the context clearly indicates or requires a different meaning.
' Abandonment. The plugging of the well and restoration of the drill site as required by the Railroad
Commission.
ALDC. The Allen Land Development Code, as amended.
Ambient Norse 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 a 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 for preventing blowouts.
Closed Loop Mud System. A system utilized while drilling so that reserve pits are not used and
instead steel bins are used to collect all drilling waste.
Drill Site. The area used for drilling, completing, or reworking a well.
Drilling. Any digging or boring of a new well to develop or produce oil or gas or to inject gas,
water, or any other fluid or substance into the earth. Drilling means and includes the re-entry of an abandoned
well. Drilling does not mean or include the re-entry of a well that has not been abandoned.
Environmentally Sensitive Areas. Floodplain, protected and specimen trees, riparian areas, streams
and crossings, Waters of the US and any other areas identified as environmentally sensitive by federal, state
or local law.
' Exploration. Geologic or geophysical activities, including, but not limited to surveying and seismic
exploration, related to the search for oil, gas, or other sub -surface hydrocarbons.
Fire Code. The most recent edition of the International Fire Code as adopted and amended as set
forth in ALDC Sections 3.01 and 3.03.
Frac or Frocing. The process of fracture stimulation of a rock formation.
Gas. Gas or natural gas, as such terms is used in the rules, regulations, or forms of the Railroad
Commission.
Gas Well. Any well drilled for the production of gas or classified as a gas well under the Texas
Natural Resources Code or by the Railroad Commission.
Gas Well Permit. A Gas Well Permit applied for and issued or denied pursuant to this Article
authorizing the drilling, production, and operation of one or more gas wells.
Gathering Station. The site where the gathering lines for all the wells converge.
Hazardous Materials Management Plan. The hazardous materials management plan and hazardous
materials inventory statements required by the Fire Code.
' New Well. A new well bore or new hole established at the ground surface and shall not include the
reworking of an existing well that has not been abandoned. Additional horizontal or directional wells from
the same well bore or hole shall be considered a new well.
Oil. Oil, as such terms areused in the rules, regulations, or forms of the Railroad Commission.
Ordinance No. 2969-12-10, Page 2
Oil Well. Any well drilled for the production of oil or classified as an oil well under the Texas
' Natural Resources Code or by the Railroad Commission.
Operation Site. The ares used for development and production and all related operational activities
of oil and gas after drilling activities are complete.
Operator. The person listed on the Railroad Commission Form W-1 or Form P-4 for an oil or gas
well, including without limitation, a unit Operator. Operator includes the mineral lessee. In the event there
is no mineral lease, the Operator shall include the owner of the fee mineral estate in the premises.
Petroleum Specialist. A qualified oil and gas consultant familiar with and educated in the oil and gas
industry who has been retained by the City.
Pipeline Easement Map. A map indicating all gathering line easements. The easements must be
located separately from the utility easements.
Railroad Commission. The Railroad Commission of Texas, or its successor agency of the State of
Texas.
Re -drill or Re -working. Re -completion, re -drilling or re-entry of an existing well within the existing
borehole or by deepening or by sidetrack operations.
Well. A hole or bore to any horizon, formation, or strata for the purpose of producing oil, gas, or
other liquid hydrocarbons.
Sec. 6-403. Well Drilling and Extraction by Specific Use Permit.
The policy of the City is to consider drilling for and extraction of oil or gas as regulated by this
Article in accordance with the City's Comprehensive Plan for the orderly, planned, efficient and economical
development of the City. The drilling and extraction of oil or gas within the corporate limits of the City shall
be permitted by Special Use Permit and shall not begin until the following have been approved:
(a) No application for a gas well permit or any other application for drilling and
extraction of oil or gas shall be approved until a Specific Use Permit has been approved in accordance
with Article VI of the ALDC and this Article. Denial of a Specific Use Permit for the drilling and
extraction of oil or gas shall be grounds for denial of any other permit applications pertaining to the
drilling and extraction of oil or gas.
(b) An approved Oil and Gas Well permit as required by the Fire Code.
(c) All applicable federal and state law requirements have been met in addition to the
standards and requirements as set forth in this Code, including, but not limited to, this Article.
(d) The provisions of Section shall be considered as the standards for drilling and
extraction of oil or gas for review and approval of Specific Use Permits. The Applicant may propose
alternative standards on a case by case basis and other conditions may be recommended by the
Planning and Zoning Commission or imposed by the City Council as reasonably necessary to protect
the health, safety and general welfare of the public, minimize the potential impact to adjacent
property, protect the quality of the environment and encourage the orderly drilling and extraction of
gas. The City may hire a Petroleum Specialist to review the application and make a recommendation
on the alternative standards proposed by the Applicant.
Ordinance No. 2969-12-10, Page 3
Sec. 6-404 Well Drilling and Extraction Standards.
' The drilling and extraction of oil or gas shall be permitted within the City, provided that all terms,
conditions, and requirements of federal, state and local law are met. Well Drilling and Extraction Standards
may be varied on a case-by-case basis as allowed by the Specific Use Permit.
(a) Distance Requirements. The measurement of the distances set forth in this Article shall be
calculated from the proposed well bore, in a straight line, without regard to intervening structures or objects,
to the closest exterior point of the object listed below:
(1) No well, tank battery or equipment shall be located within one thousand feet (1,000')
of a residential structure unless written documentation from the owner of the surface
on which the residential structure is located agrees to a location between 600 feet and
1000 feet of the structure.
(2) No well shall be located within one thousand feet (1,000') of a place of public
assembly.
(3) No well shall be located within five hundred feet (500') of any existing storage tank
or source of potential ignition.
(4) No well shall be located within five hundred feet (500') of any outer boundary line of
the tract or lease.
(5) No well shall be located within five hundred feet (500') of any fresh water well.
' (6) No well shall be located within seven hundred and fifty feet (750') of the one
hundred year (100) floodplain as determined by the latest FIRM published at the time
of application for the Well Drilling Permit.
(7) No well shall be located within one thousand feet (1,000') of a planned or developed
data center.
(b) On Site Requirements.
(1) Fencing. All drilling features including storage pits shall be fenced to prevent access
from unauthorized people. When not supervised, all fences shall remain locked.
Fencing, screening and landscaping shall be required as followed:
A secured entrance gate and a sign shall be required. The sign identifying
the entrance to the drill site or operation site shall be reflective.
Opaque fences shall be required to surround drill sites during initial drilling
operations and shall be locked when no operations personnel are present.
C. After initial drilling operations are complete, a solid masonry wall not less
than eight feet (8.0') in height but not higher than the enclosed equipment
shall surround operation sites. All permanent -fencing structures shall have a
' wrought iron gate to allow visibility into the well site which shall remain
locked at all times when no authorized person is present on the operation site.
(2) Landscaping/Tree Mitigation and Irrigation Plans. Laodscaping/Tree Mitigation and
Irrigation Plans shall be required along all street frontages at the well site with
Ordinance No. 2%9-12-10, Page 4
suitable screening shrubs that complement the architectural character of the
surrounding neighborhood as required by Article VII of the ALDC. The landscaping
shall be maintained as required by Sec. 7.05.04 of the ALDC.
(3) Discharge or illegal Dumping. No person shall place, deposit, or discharge any oil,
naphtha, petroleum, asphalt, tar, hydrocarbon substance, or any refuse including
wastewater or brine, from any oil or gas operations or the contents of any container
used in connection with any oil or gas operations in, into, or upon any public right-of-
way, storm drain, ditch or sewer, sanitary drain, any body of water, or any private
property within the corporate limits or extraterritorial jurisdiction of the City.
(4)
Fire Suppression. All fire suppression and prevention equipment required by an
operator shall comply with applicable federal, state, or local law and the maintenance
of such equipment shall be the responsibility of the operator.
(5)
Pit Lining. Pit liners shall be designed, constructed, and installed to prevent any
migration of materials from the pit into adjacent subsurface soils, ground water, or
surface waters at any time during the life of the pit. All lined pits shall adhere to the
liner standards set forth by the Railroad Commission.
(6)
Closed-loop Drilling Systems. Closed-loop drilling fluid systems shall be used
instead of lined reserve pits.
(7)
Signs.
a. A sign shall be immediately and prominently displayed at the gate on the
temporary and permanent fencing of the well site. Such sign shall be durable
'
material, maintained in good condition and, unless otherwise required by the
Railroad Commission, shall have a surface area of not less than two square
foot nor more than four square feet and shall be lettered with the following:
i. Well name and number;
ii. Name of operator;
iii. The emergency 911 number; and
iv. Telephone numbers of two persons responsible for the well who may
be contacted 24 hours a day in case of an emergency.
b. Permanent weatherproof signs reading "DANGER NO SMOKING
ALLOWED" shall be posted immediately upon completion of the well site
fencing at the entrance of each well site and tank battery or in any other
location approved or designated by the City's Fire Chief. Sign lettering shall
be four inches in height and shall be red on white background or white on a
red background. Each sign shall include the emergency notification numbers
of the fire services department and the operator, well and lease designations
required by the Railroad Commission.
(8) Electric Lines. All electric lines to production facilities shall be located underground.
(9) Rights -of -Way Use Agreement. No operator shall excavate or construct any lines for
' the conveyance of fuel, water, gas or petroleum liquids on, under, or through the
streets or alleys or other land of the City without an easement or Rights -of -Way
Agreement from the City, at a price to be agreed upon, and then only in strict
compliance with all applicable law.
Ordinance No. 2969-12-10, Page 5
(10) Temporary Street Use License. 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 fust obtained written permission from the City, and then only in
compliance with all applicable law.
(11) Temporary Street Closure Permit. No Well Permit shall be issued for any well to be
drilled within any of the streets or alleys of the City or streets shown by the City of
Allen Master Thoroughfare Plan, and no street shall be blocked or encumbered or
closed due to any exploration, drilling, or production activities unless a temporary
street closure permit is obtained from the City Manager.
(c) Operations and Equipment Practices and Standards.
(1) Fracing Operations. In parallel to gas gathering pipeline, a flow back line shall be
installed to handle water and gas flow back following well fracture treatment.
(2) Nuisance Prevention. Adequate nuisance prevention measures shall be taken to
prevent or control offensive odor, fumes, dust, noise and vibration. For vehicular
safety reasons, 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. If
for safety reasons, the City elects to perform the removal, the operator shall pay the
cost of such removal.
(3) Directional Lighting. No person shall permit any lights located on any drill or
' operation site to be directed in such a manner so that they shine directly on public
roads, adjacent property or property in the general vicinity of the operation site. To
the extent practicable and taking into account safety considerations, site lighting shall
be directed downward and internally so as to avoid glare on public roads and adjacent
dwellings and buildings. The location, height and style of any lights shall be
identified on the site plan and shall comply with the requirements of Article VII of
the ALDC.
(4) Field Rules. 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.
(5) Noise. Internal combustion engines may be used in drilling and producing operations
if they have mufflers that will reduce noise to not more than seventy (70) decibels at
any point three hundred feet (300') from the boundary of the drill site or operation
site. The noise level during fracing operations shall reduce the noise to not more than
eighty (80) decibels at any point throe hundred feet (300') from the boundary of the
drill site or operation site. If noise levels at a distance of three hundred feet (300')
exceed required decibel levels, a sound reduction enclosure shall be required around
a drilling rig and any internal combustion engines. Only electric motors shall be used
for the purpose of pumping oil wells. Electric motors shall be used for compressors
located at gas well sites. Any onsite compressor or pipeline compressor used to lift
gas shall comply with noise levels for Bracing. The Operator may propose a noise
reduction plan using Ambient Noise Levels.
' (6) Vehicle Romes. Vehicles, equipment, and machinery shall not be placed or located
on a drill site or operation site or on any public street, alley, driveway, or other public
right-of-way in such a way as to constitute a fire hazard or to unreasonably obstruct
or interfere with fighting or controlling fires. Vehicles associated with drilling and/or
Ordinance No. 2969-12-10, Page 6
production in excess of three tons shall be restricted to streets designated as arterials
or collectors as delineated in the City's Master Thoroughfare Plan or as allowed by
the truck route of the approved site plan.
(7) Work Hours. Site development and truck delivery other than for drilling, shall be
conducted only between 7:00 a.m. and 7:00 p.m. Monday through Friday and 9:00
a.m. through 5:00 p.m. on Saturday.
(8) Prohihitions. Air, gas, or pneumatic drilling shall not be permitted.
(9) Removal of the Drilling Rig and Equipment. The drilling rig and associated drilling
equipment shall be removed from the well site within thirty (30) days of the
completion of the well or drilling activities.
(10) Separators and Dehydrators. No refining process, or any process for the extraction
of products from gas, shall be carried on at a drill site or operation site, except that a
dehydrator and separator may be maintained on a drill site or operation site for the
separation of liquids from gas. Any such dehydrator or separator may serve more
than one well.
(d) Storage Tanks and Separators.
(1) An operator shall identify such storage tanks and separation equipment as shown on
the application for the Site Plan. All tanks and permanent structures shall be
permitted and conform to the Fire Code and American Petroleum Institute
specifications.
(2) The use of centralized tank batteries shall be permitted as shown on the applicable
Site Plan.
(3) No meters, storage tanks, separation facilities, or other above ground facilities except
flow lines shall be placed in the one hundred (100) year floodplain.
(4) No tank batteries may be installed higher than eight (8) feet above ground level.
(5) All production equipment on an operation site shall be painted and maintained at all
times, including but not limited to, pumping units, storage tanks, buildings, and
structures.
(e) Flow Lines and Gathering Line: Each operator shall place an identifying sign at each point
where a flow line or gathering line crosses a public street or road.
(1) If a gas field in the City is identified as an H2S gas field, the operator shall be
required to cease operations.
(2) All flow lines and gathering lines within the corporate limits of the City (excluding
City utility lines and franchise distribution systems) that are used to transport oil, gas,
and/or water shall be limited to the maximum allowable operating pressure applicable
to the pipes installed. Flow lines and gathering lines shall be buried and installed at
the required depth and with at least the minimum cover or backfill specified by the
American National Safety Institute Code, as amended.
(3) Easements must be acquired for all flow lines, gathering lines and flow back lines.
The location of easements shall be shown on the site plan.
Ordinance No. 2%9-12-10, Page 7
(4)
Structures shall not be built over flow lines or gas gathering pipelines.
(5)
The location of all pipelines must be marked with warning signs in accordance with
federal and state law. In addition, during backfill of pipeline excavations, "Buried
Pipeline" warning tape shall be buried one foot (P) above the pipeline to warn future
excavators of the presence of buried pipeline.
(t) Safety and Environmental Regulations.
(1)
The drilling and production of oil or gas and accessing the well site shall be in
compliance with all applicable federal, state or local environmental regulations and
shall not occur within Environmentally Sensitive Areas.
(2)
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.
(3)
Blowout prevention equipment shall be used on all wells being drilled, reworked, or
in which tubing is being changed. Each producing well shall be equipped with an
automated valve that closes the well in the event of an abnormal change in operating
pressure. All wellheads shall contain an emergency shut off valve to the well
distribution line. Protection shall be provided to prevent blowout during well
operations as required by and in conformance with the requirements of the Railroad
Commission and the requirements of the American Petroleum Institute. The
Operator will be responsible for the installation and maintenance of an alarm system
which will emit an "audible warning alarm" as well as transmit a communique to the
'
City of Allen Dispatch Center for emergency response purposes. The operator will
also be responsible for complying with Chapter 8, Article IV of this Code.
(4)
Low toxicity glycols, synthetic hydrocarbons, polymers, and esters shall be
substituted for conventional oil-based drilling fluids. No drilling storage pits shall be
located in the City.
(5)
All open hold formation or drill stem testing shall be done during daylight hours.
Drill stem tests may be conducted only if the well effluent during the test is produced
through an adequate gas separator to storage tanks and the effluent remaining in the
drill pipe at the time the toll is closed is flushed to the surface by circulating drilling
fluid down the annulus and up the drill pipe.
(6)
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.
(7) Storage tank facilities shall be equipped with a secondary containment system
including lining with an impervious material. The secondary containment system
shall be of a sufficient height to contain one and one-half (1'h) times the contents of
the largest tank in accordance with the Fire Code, and the impervious liner shall be
covered with at least one foot (1) of sand. Drip pots shall be provided at pump out
' connections to contain the liquids from the storage tank.
(8) Tank battery facilities shall be equipped with a remote foam line utilizing a two and
one-half inch (2.5") National Standard Hose Thread female inlet connection in
Ordinance No. 2969-12-10, Page 8
locations approved by the Fire Department. A lightning arrestor system shall be
installed according to the most current edition of the National Electrical Code.
(9) An approved Hazardous Materials Management Plan and Emergency Response Plan
shall be on file with the Fire Department. The costs of cleanup operations due to
hazards associated with a well site shall be the responsibility of the Operator.
(10) All wells shall be abandoned in accordance with the rules of the Railroad
Commission; however, all well casings shall be cut and removed to a depth of at least
ten feet (10') below the surface.
(11) No structures shall be built over an abandoned well.
(12) No salt -water disposal wells shall be located within the City.
(13) Light Sand Frac Technology shall be used in tracing a well or other technology to
frac a well, unless another technology is approved by the Fire Marshal upon
recommendation by a Petroleum Specialist.
(14) Erosion control is required and shall comply with all applicable federal, state and
local requirements. The operator shall file a copy of the Storm Water Pollution Plan
if required by the EPA. Identify and indicate the proposed method of erosion control
on a Drainage and Erosion Control Plan that is prepared by a professional engineer
licensed to operate in the State of Texas. The drainage and erosion control plan must
be approved by the City Engineer and must conform with the following:
' a. All floodplain, creek and stream crossings shall be designed to a 25 -year
storm frequency;
b. The erosion control plan must provide references to all applicable federal,
state and local standards and must indicate how these requirements are to be satisfied;
and
C. Verification that all floodplain, creek, and stream crossings shall not have
negative affects on other properly.
(g) Supplemental Drilling.
(1) Supplemental drilling to deepen or directional drill an existing well shall be
conducted in accordance with the conditions of the applicable Specific Use Permit.
The operator shall provide the City with a copy of additional Railroad Commission
permits that allow drilling to a deeper depth.
(2) Supplemental drilling to deepen or directional drill an existing well shall be
conducted in accordance with the approved Well Permit for the well on file with the
City.
(h) Seismic, Reworking or Fracing Notice. Any person who intends to rework a well using a
drilling rig, to frac a well after initial completion, or to conduct seismic exploration shall give written notice
' to the City not less than ten (10) days before the activities begin.
(1) The notice shall identify where the activities will be conducted and shall describe the
activities in reasonable detail, including but not limited to, the duration of the
activities and the time of day they will be conducted.
Ordinance No. 2969-12-10, Page 9
(2) The notice must also provide the address and twenty-four (24) hour phone number of
' the person conducting the activities.
(3) The person conducting the activities will post a sign on the property giving the public
notice of the activities, including the name, address, and twenty-four (24) hour phone
number of the person conducting the activities.
(i) Abandonment of Wells and Pipelines.
(1) Abandonment of Wells. Not later than sixty (60) days after the abandonment of a
well or well site, the well shall be plugged in accordance with Railroad Commission
standards, the site shall be cleaned and cleared of all equipment, holes or excavations
filled, and the land graded and returned to its original condition including replanting
of vegetation to match the surrounding area.
(2) Abandonment of Pipelines. Not later than sixty (60) days after the abandonment of a
pipeline, a pipeline must be purged and plugged in accordance with the rules and
regulations of the Railroad Commission and removed as required by the City.
Sec. 6-405. Compliance with the Site Plan.
Any person who proposes the drilling and extraction of oil or gas on a tract of land located within the
City shall prepare and submit a Site Plan prepared by a professional engineer licensed to practice in the State
of Texas and shall bear the engineer's seal in accordance with Article VI of the ALDC which shall include or
be accompanied by the following additional information:
' (a) Identification of all truck routes and access points to the well site;
(b) The design, location, and arrangement of all driveways and parking spaces, which must
provide for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting
the general public or adjacent developments;
(c) Identify the proposed sources of water for all drilling and other well -related operations
(including but not limited, to all water sources for fracing operations) and any other public utilities required.
(d) Identify the location of proposed lease lines and well locations as follows:
(1) Label distance between wells and property lines;
(2) Label distance between wells and structures within one thousand feet (1,000') of
wells;
(3) Label distance between temporary holding ponds and floodplain; and
(4) With the exception of vehicular access.
(e) Provide typical well site schematics showing layout during drilling and upon completion of
drilling.
' (f) Show location of all proposed underground pipelines. As -built drawings of pipeline locations
shall be filed with the Fire Marshal prior to the issuance of a gas gathering permit as required by the Fire
Code.
Ordinance No. 2%9-12-10, Page 10
(g) Identify pipelines connected with a Gas Distribution System.
' (h) Identify the location of any fresh water wells.
(i) Identify the location of all structures, tanks and all areas where equipment is to be stored.
Q) Identify location of all required screening, landscaping, irrigation, and lighting plans.
(k) The submission of the site plan must be accompanied by a copy of all existing protective
covenants regulating the use of any portion of the land within the subject lease.
(1) The submission of the Site Plan shall be accompanied by a Tree Plan describing the tree
mitigation required by Article VII of the ALDC for protected or specimen trees identified on the Tree Plan
which are removed from the well site.
All operations relating to the development and maintenance of a well shall comply with the approved Site
Plan.
Sec. 6-406. Well Permit Required.
(a) It shall be unlawful for any person, acting for himself or acting as an agent, employee,
independent contractor, or servant for any person, to engage in the drilling and extraction of oil or gas within
the corporate limits of the City without first obtaining a Well Permit as required by this Article.
(b) A Well Permit issued pursuant to this Article with respect to a well shall constitute authority
for drilling, operation, production, gathering of production, maintenance, repair, reworking, testing, ' site preparation consisting of rigs or tank batteries, plugging and abandonment, and any other activity authorized
by this Article associated with drilling for and extraction of oil or gas by the operator and their respective
employees, agents, and contractors. A permit for a seismic survey is not required prior to drilling the initial
well.
(c) Permits as required by the Fire Code for the construction and use of all facilities reasonably
necessary or cenvenient in connection with a well shall be obtained from the Fire Marshal, including permits
for gathering lines, discharge lines and storage tanks by the operator and its respective employees, agents,
contractors and subcontractors.
(d) A well permit shall not constitute authority for the re-entering and drilling of an abandoned
well. An operator shall obtain a new Well Permit and Specific Use Permit, if applicable, as required by this
Article to re-enter and drill an abandoned well.
(e) The City has no obligation to extend water or sewer service to any lot, tract or parcel or land
site planned for drilling and extraction in violation of this Article.
(f) The provisions of this Article shall be considered as the standard for review and approval of
Well Permits and other conditions may be required as recommended by a Petroleum Specialist as authorized
by the Fire Code.
(g) A Well Permit shall automatically terminate unless extended, if drilling of the well bore has
not commenced within one hundred eighty (180) days from the date of the issuance of the Well Permit. The
' Fire Marshall may extend a Well Permit for an additional one hundred eighty (180) days upon application by
the operator and proof that the classification of the requested Well Permit for such location has not changed.
Ordinance No. 2969-12-10. Page l I
Sec. 6-407. Contents of Well Permit.
(a) Each Well Permit shall contain the following information:
(1) Identify the name of each 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 at least one (1) well covered
by the permit, otherwise the permit expires (such date shall not be less than one
hundred and eighty (180) days after the date of issuance.
(4) Specify that if drilling is commenced on at least one (1) well covered by the permit
before the permit expires, the permit shall continue until the well covered by the
permit is abandoned and the site restored;
(5) Incorporate, by reference, the insurance and security requirements set forth in this
Article;
(6) Incorporate, by reference, the requirement for periodic reports and for providing
notice of reworking an existing well, as forth in this Article;
(7) Incorporate, by reference, the conditions of the applicable Site Plan and applicable
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) Specify that no drilling operations (including the construction of internal private
access roads) shall commence until the operator has complied with this Article;
(11) 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, that can be served in
person or by registered or certified mail; and
(12) Incorporate by reference all permits and fees required by the City.
(b) If the City denies an application for a Well Permit, nothing herein contained shall prevent a
new permit application from being submitted to the City for the same well location.
Sec. 6408. Road Repair Agreement or Road Remediation Fee.
(a) A Road Repair Agreement or Road Remediation Fee Agreement shall be submitted with the
Well Permit for approval by the City Manager.
(b) A Road Repair Agreement must obligate the operator to repair damage to public streets,
including but not limited to bridges, caused by the operator (or by the operator's employees, agents,
' contractors or representatives) in the performance of any activity authorized by or contemplated by the
approved Well Permit.
(c) An Operator may enter into a Road Remediation Fee Agreement in lieu of a Road Repair
Agreement as calculated by the City.
Ordinance No. 2969-12-10. Page 12
(d) The City Manager shall have the authority to execute the Road Repair Agreement or Road
Remediation Fee Agreement.
' Sec. 6409. Insurance 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 shall provide to the City documentation from the operator's insurance company certifying that
the insurance provided complies with the requirements of this Section. Upon request, certified copies of all
insurance policies shall be famished to the City.
(a) General Requirements: Indemnification and Express Negligence Provisions.
(1) Each Well Permit issued by the City shall include the following language: Operator
does hereby expressly release and discharge all claims, demands, actions, judgments,
and executions which it ever had, or now has or may have, or assigns may have, or
claim to have, against the City of Allen and/or its departments, its agents, officers,
servants, successors, assigns, sponsors, volunteers, or employees, created by, or
arising out of personal injuries, known or unknown, and injuries to property, real or
personal, or in any way incidental to or in connection with the performance of the
work performed by the operator under a Well Permit and the operator caused by or
arising out of, that sequence of events which occur from the operator under the Well
Permit and work performed by the operator shall fully defend, protect, indemnify,
and hold harrrrless the City of Allen, Texas, and/or its departments, agents, officers,
servants, employees, successors, assigns, sponsors, or volunteers from and against
each and every claim, demand, or cause of action and any and all liability, damages,
' obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in
defense of the City of Allen, Texas, and/or its departments, agents, officers, servants,
or employees, including, without limitation, personal injuries and death in connection
therewith which may be made or asserted by Operator, its agents, assigns, or any
third parties on account of, arising out of, or in any way incidental to or in connection
with the performance of the work performed by the Operator under a Gas Well
Permit, and the Operator agrees to indemnify and hold harmless the City of Allen,
Texas, and/or its departments, and/or its officers, agents, servants, employees,
successors, assigns, sponsors, or volunteers from any liabilities or damages suffered
as a result of claims, demands, costs, or judgments against the City and/or, its
departments, its officers, agents, servants, or employees, created by, or arising out of
the acts or omissions of the City of Allen, occurring on the drill site or operation site
in the course and scope of inspecting and permitting the gas wells INCLUDING,
BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR
IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF ALLEN
OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE
AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS
WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY
PROVIDED FOR IN THIS IS AN INDEMNITY EXTENDED BY THE
OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF ALLEN, TEXAS
AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR
EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE
CITY OF ALLEN, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS,
' SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE
OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH,
AND/OR DAMAGE. LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY
IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE
Ordinance No. 2969-12-10, Page 13
GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY
UNDER THE TORT CLAIMS ACT.
' (2) All policies shall be endorsed to read "This policy will not be cancelled or non -
renewed without thirty (30) days advanced written notice to the owner and the City"
and ten (10) days notice for nonpayment of premiums.
(3) Liability policies shall be written by carriers licensed to do business in Texas and
with companies with A: VBI or better rating in accordance with the current Best Key
Rating Guide, or with non -admitted carriers that have a financial rating comparable
to carriers licensed to do business in Texas, and approved by the City.
(4) Liability policies shall name as "Additional Insured" the City and its officials, agents,
employees, and volunteers. Waivers of subrogation shall be provided in favor of the
City.
(5) Certificates of Insurance must be presented to the City evidencing all coverages and
endorsements required by this Article, and the acceptance of a certificate without the
required limits and/or coverages shall not be deemed a waiver of these requirements.
(6) Claims made policies will not be accepted except for excess policies or
environmental policies. If coverage is written on a "claims made" basis, the operator
must maintain continuous coverage or purchase Extended Period Coverage Insurance
for four years following expiration or suspension of the Gas Well Permit.
(b) Required Insurance Coverage.
' (1) Commercial General Liability Insurance:
Coverage should be a minimum Combined Single Limit of One Million
Dollars ($1,000,000) per occurrence for Bodily Injury and Property Damage
with a deductible of no greater than Twenty -Five Thousand Dollars
($25,000) per occurrence. This coverage must include premises, operations,
blowout or explosion, products, completed operations, blanket contractual
liability, underground property damage, broad form property damage,
independent contractors protective liability and personal injury.
Environmental Impairment (or Seepage and Pollution) shall be either
included in the coverage or written as separate coverage. Such coverage
shall not exclude damage to the lease site. Coverage shall apply to sudden
and non -sudden pollution conditions resulting from the escape or release of
smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste
material or other irritants, contaminants or pollutants. Coverage shall be a
minimum combined single limit of Ten Million Dollars ($10,000,000), per
occurrence with a deductible of no greater than One Million Dollars
($1,000,000) per occurrence.
C. Automobile Liability Insurance: Minimum Combined Single Limit of One
Million Dollars ($1,000,000) per occurrence for Bodily Injury and Property
' Damage. Such coverage shall include owned, non -owned, and hired vehicles
with a deductible of no greater than Twenty -Five Thousand Dollars
($25,000) per occurrence.
Ordinance No. 2%9-12-10, Page 14
d. Worker's Compensation Insurance: In addition to the minimum statutory
requirements, coverage shall include Employer's Liability limits of at least
' One Hundred Thousand Dollars ($100,000) for each accident, One Hundred
Thousand Dollars ($100,000) for each employee, and a Five Hundred
Thousand Dollars ($500,000) policy limit for occupational disease, and the
insurer agrees to waive rights of subrogation against the City, its officials,
agents, employees, and volunteer: for any work performed for the City by
the operator.
e. Excess (or Umbrella) Liability Insurance: Minimum limit of Ten Million
Dollars ($10,000,000) covering in excess of the preceding insurance policies.
(c) Control of Well Insurance
(1) Minimum limit of Five Million Dollars ($5,000,000) per occurrence with a
deductible of no greater than Twenty -Five Thousand Dollars ($25,000) per
occurrence.
(2) Policy shall cover the Cost of controlling a well that is out of control, re -drilling or
restoration expenses, 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) may be added.
Sec. 6-410. Security Instrument.
A security instrument that covers each well must be delivered to the City before the issuance of the
' Well Permit for the well. The instrument must provide that it cannot be cancelled without at least thirty (30)
days prior written notice to the City. The instrument shall secure the obligations of the operator related to the
well to:
(a) Repair damage, excluding ordinary wear and tear, if any, to public streets, including but not
limited to bridges, caused by the operator or by the operator's employees, agents, contractors, subcontractors
or representatives in the performance of any activity authorized by or contemplated by the Well Permit;
(b) Comply with the insurance and security provisions set forth in this Article.
(c) Pay fines and penalties imposed upon the operator by the City for any breach of the Well
Permit.
(d) The security instrument may be in the form of a payment bond issued by a bank in the City of
Allen or surety approved by the City. The instrument shall run to the City for the benefit of the City, shall
become effective on or before the date the Well Permit is issued, and shall remain in effect until the well is
abandoned and the site restored.
(e) A certificate of deposit may be substituted for the payment bond. The certificate shall be
issued by a bank in the City of Allen, Texas, shall be approved by the City, shall be payable to the order of the
City to secure the obligations of the operator described above, and shall be pledged to the bank with evidence
of delivery provided to the City. Interest on the certificate shall accrue to the operator.
' (f) The security instrument may be provided for individual wells or on a "blanket" basis for
multiple wells. The amount of the security shall be a minimum of Fifty Thousand Dollars ($50,000) for any
single well and a minimum of Two Hundred Fifty Thousand Dollar: ($250,000) for multiple wells on a
"blanket" basis.
Ordinance No. 2969-12-10, Page 15
Sec. 6-411. Review of Well Permit Applications.
' (a) All applications for Well Permits shall be filed and forwarded to the Director of Planning &
Development and Fire Marshal for review.
(b) Incomplete applications shall be returned to the applicant, in which case the City may provide
a written explanation of the deficiencies if requested by the applicant.
(c) All applications for a Well Permit shall be accompanied by the application fee established by
resolution of the City Council. The City may return any application as incomplete if there is a dispute
pending before the Railroad Commission regarding the determination of the operator.
(d) The Director of Planning and Fire Marshal shall review each completed application and shall
determine whether the application includes all of the information required by this Article, whether the
application is in conformance with the applicable Site Plan, the applicable Specific Use Permit, the Road
Repair Agreement or Road Remediation Fee Agreement and whether the application is in conformance with
the insurance and security requirements set forth in Section 6409.
(e) The City shall not approve an application that does not meet the requirements set forth in this
Article.
Sec. 6-412. Periodic Reports and Annual Inspection.
(a) The operator shall notify the City of any changes to the following information not later than
one (1) business day after the change occurs.
(I) The name, address, and phone number of the operator;
(2) The time, address, and twenty-four (24) how phone number of the person(s) with
supervisory authority over drilling or operations activities;
(3) The time, address, and 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; and
(4) The operator's Emergency Action Response Plan including "drive -to -maps" from
public rights-of-way to each gas well site.
(b) The operator shall provide a copy of any "incident reports" or written complaints submitted
to the Railroad Commission or any other state or federal agency within ten (10) days after the operator has
notice of the existence of such reports or complaints.
(c) After each well is completed, and continuing thereafter until the operator notifies the City that
the well has been abandoned and the site restored, the operator shall prepare and deliver to the City on or
before January 15' of each year a written report identifying as of the immediately preceding December 31'
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. The City shall inspect the drill site annually. The Operator shall pay
the annual inspection fee as established from time to time by resolution of the City Council.
' Sec. 6-413. Amended Well Permits.
(a) An operator must submit an application to the City 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
Ordinance No. 2969-12-10, Page 16
of) the existing permit, or to otherwise amend the existing permit. The Applicant shall submit an application
to amend the existing site plan to identify additional wells or if there is a material change in the location of the
' drill site.
(b) All applications for amended Well Permits and amended Site Plans shall be filed with the
Director of Planning & Development or his designee. Incomplete applications may be returned to the
applicant, in which case the City shall provide a written explanation of the deficiencies if requested by the
applicant. The City may return any application as incomplete if there is a dispute pending before the Railroad
Commission regarding the determination of the operator. Applications for amended Well Permits or amended
Site Plans shall be in writing, shall be signed by the operator, and shall include the following:
(1)
The application fee established by resolution of the City Council;
(2)
A description of the proposed amendments;
(3)
Any changes to the information submitted with the application for the existing Well
Permit (if such information has not previously been provided to the City);
(4)
Such additional information as is required by the Fire Marshal, Director of Planning
& Development, Petroleum Specialist or City Staff to demonstrate compliance with
the applicable Site Plan and applicable Specific Use Permit;
(5)
Such additional information as is required to prevent imminent destruction of
property or injury to persons;
(6)
If the activities proposed by the amendment are materially different from the
activities covered by the existing Specific Use Permit, the Site Plan or applicable
'
Specific Use Permit, the amendment most be processed as a new Well Permit
application and amendment to the Specific Use Permit may be required; and
(7)
A decision to deny an amendment to a Gas Well Permit shall be provided to the
operator in writing after the decision is made, including an explanation of the basis
for the decision. The operator may appeal any such denial to the Zoning Board of
Adjustment within ten (10) days of the date the decision is made.
Sec. 6-414. Transfer of Well Permit.
A Well Permit may be transferred by the operator with the consent of the City if the transfer is in
writing signed by both paries, and the transferee agrees to be bound by the terms and conditions of the
transferred permit, if all information previously provided to the City as par of the application for the
transferred permit is updated to reflect any changes and if the transferee provides the insurance and security
required and Road Repair Agreement or Road Remediation Fee Agreement. 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.
Sec. 6415. Remedies of the City.
(a) If an operator (or its officers, employees, agents, contractors, subcontractors or
' representatives) fails to comply with any requirement of a Well Permit (including any requirement
incorporated by reference as part of the permit), the City shall give written notice to the operator specifying
the nature of the alleged failure and giving the operator a reasonable time to cure, taking into consideration
the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact
on the health, safety, and welfare of the community. In no event, however, shall the cure period be less than
Ordinance No. 2969-12-10, Page 17
seven (7) days unless the alleged failure presents a risk of imminent destruction of property or injury to
persons or unless the alleged failure involves the operator's failure to provide periodic reports.
(b) The City may notify the Railroad Commission and request that the Railroad Commission take
appropriate action (with a copy of such notice provided to the operator), and the City may pursue any other
remedy available under applicable law.
(c) If the operator does not cure the alleged failure within the time specified by the City, the Fire
Marshal may:
(1) Suspend the Well Permit until the alleged failure is cured; or
(2) Revoke the Well Permit if the operator fails to initiate and diligently pursue a cure.
(d) The operator may appeal a decision to suspend or revoke the Well Permit, to the Zoning
Board of Adjustment within ten (10) days of the date of the decision.
Sec. 6416. Enforcement, Right of Entry.
The City is authorized and directed to enforce this Section and the provisions of any Well Permit.
Whenever necessary to enforce any provision of this Article or the requirements of a Well Permit, or
whenever there is reasonable cause to believe there has been a violation of this Article or the requirements of
a Well Permit, an employee or agent of the City may enter upon any property covered by this Article or a
Well Permit at any reasonable time to inspect or perform any duty imposed by this Article. If entry is refused,
the City shall have recourse to every remedy provided by law and equity to gain entry.
Sec. 6417. Appeals.
(a) The Zoning Board of Adjustment shall have and exercise the power to hear and determine
appeals where it is alleged there is error regarding the issuance of a Well Permit or the revocation or
suspension of any Well Permit issued pursuant to this Article. Any person or entity whose application is
denied by the Fire Marshal or Director of Planning & Development or whose Well Permit is suspended or
revoked or whose well or equipment is deemed by the Fire Marshal or Director of Planning & Development
to be abandoned may file an appeal w allowed by State law.
(b) Appeal fees shall be required for every appeal in the amount established by resolution of the
City Council.
Sec. 6418. Penalty.
(a) It shall be unlawful and an offense for any person to:
(1) Engage in any activity not permitted by the terms of a Specific Use Permit, Site Plan
or Well Permit issued under this Article; or
(2) Fail to comply with any conditions set forth in a Specific Use Permit, Site Plan or
Well Permit issued under this Article; or
(3) Violate any provision or requirement set forth under this Article.
' (b) Any violation of this Article shall be punished by a fine of not more than Two Thousand
Dollars ($2,000.00) per day, subject to applicable State law. Each day a violation occurs constitutes a
separate violation."
Ordinance No. 2969-12-10, Page 18
SECTION 2. All ordinances of the City of Allen in conflict with the provisions of this ordinance shall be,
and the same are hereby, repealed; provided, however, that all other provisions of said ordinances not in
' conflict herewith shall remain in full force and effect.
SECTION 3. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance
or of the Code of Ordinances, as amended hereby, be adjudged or held to be void or unconstitutional, the
same shall not affect the validity of the remaining portions of said ordinance or the Code of Ordinances, as
amended hereby, which shall remain in full force and effect.
SECTION 4. An offense committed before the effective date of this ordinance is governed by prior law and
the provisions of the Code of Ordinances, as amended, in effect when the offense was committed and the
former law is continued in effect for this purpose.
SECTION 5. Any person, firm or corporation violating any of the provisions or terms of this ordinance or
of the Code of Ordinances as amended hereby, shall be subject to the same penalty as provided for in the
Code of Ordinances of the City of Allen, as previously amended, and upon conviction shall be punished by a
fine not to exceed the sum of Two Thousand Dollars ($2,000) for each offense.
SECTION 6. This Ordinance shall take effect immediately from and after its passage and the publication o
the caption, as the law and charter in such cases provide.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 14'" DAY OF DECEMBER, 2010.
A OVED: 0700
'
StephL Terrell, Mayor
APPROVED AS TO FORM: ATTEST:
Peiir G. Smith, City Attorney Shelley �G�ity Secretar
(KBL 12-7-10138284)
1
Ordinance No. 2%9-12-10, Page 19