§ 62-137. Technical requirements.

All persons engaged in the drilling, oil or gas operations within the regulated area shall comply with the following:

(1)

In order to enable the holder of each permit to move oil, gas, water or other products to or from each drilling unit within the city limits, the holder of each permit issued under this article for the drilling, oil or gas operations shall apply to the city council for an easement on, over, under, along or across the city's 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 permit issued pursuant to this article. However, such permittee shall:

a.

Not interfere with or damage existing water, sewer or gas lines or the facilities of public utilities located on, under or across the course of such rights-of-way;

b.

Furnish the director with a plat showing the location of such pipelines;

c.

Construct such lines or cause such to be constructed out of new or reconditioned pipe in accordance with directions of the fire chief and properly cased and vented if under a street; and

d.

Grade, level and restore the property to the same surface condition, as nearly practicable, as existed when operations for the drilling of the well were first commenced.

(2)

Any violation of state law or any rules, regulations or requirements of any state or federal regulatory body having jurisdiction in reference to drilling, completing, equipping, operating, producing, maintaining or abandoning any oil or gas well or related appurtenances, equipment or facilities or in reference to firewalls, fire protection, blowout protection, safety protection or convenience of persons or property shall also be a violation of this article and shall be punishable in accordance with this article.

(3)

No person engaged in drilling or operating any well shall permit gas to escape or be vented into the air unless such gas is flared and burned. All gas flared and burned from a torch, pipe or other burning device within the city must be done in such a manner as not to constitute a fire hazard to any property. The location of the torch, pipe or other burning device; the construction thereof; the maintenance thereof; and the operation thereof shall at all times be in full compliance with such regulations as may from time to time be issued by the fire chief.

(4)

It shall be unlawful for any person to use or operate, in connection with the drilling or working over of any well within the city limits, any wooden derrick or steam powered rig or to permit any drilling rig or derrick to remain on the premises or drilling site for a period longer than 60 days after completion or abandonment of the well.

(5)

All engines shall be equipped with effective mufflers.

(6)

Two dual-controlled, fluid-operated blowout preventers with working pressures equal to the maximum anticipated wellhead pressures shall be used for all drilling or completion operations involving the use of drill pipe or tubing after the surface casing has been set. The mechanical operation of the preventers shall be checked every 24 hours and shall be tested with pump pressure with enough frequency to ensure good working order at all times.

(7)

Only portable steel slush tanks for mud or water shall be permitted in connection with the drilling and working over operations of any well.

(8)

Any person drilling or operating a well for oil or gas shall make adequate provisions for the disposal of saltwater or other materials that may be produced along with the oil or gas in such a manner as not to contaminate the city water supply or watersheds or damage vegetation or fauna.

No saltwater or other type of disposal well shall be permitted unless issued a permit in accordance with this section. No saltwater or other type of disposal well shall be located within a subdivision that was platted on or after January 1, 2003, and that is used for residential use. No saltwater or other type of disposal well shall be operated as a commercial disposal well, and all disposal wells shall be limited to private use. Disposal wells shall only be used for the disposal of saltwater or other materials that may be produced from the associated drilling, oil or gas operations.

(9)

No well shall be drilled or worked over in the city without the bore hole at all times being filled with drilling fluid of a weight and viscosity as a reasonably prudent operator would use to keep the well under control at all times.

(10)

It shall be unlawful for any person in connection with the drilling or working over operations of any well within the city to conduct any swabbing operations or to take and to complete any drill stem test except during daylight hours. Drill stem tests may be conducted only if the well effluent during the test is produced through an adequate oil and 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. The fire chief shall be informed before drill stem testing or swabbing is performed so that a city representative may be present during such operations.

(11)

The operator of any well in any field or area within the city shall be required to set and cement a sufficient amount of surface casing to properly protect all freshwater sands as specified by the state regulatory authorities and the fire chief. A minimum of 1,200 feet of surface casing shall be set. The surface casing shall be of new or reconditioned casing and shall be set and cemented in accordance with the rules, regulations and orders of the state railroad commission for the field or area in which the well is to be drilled. Cementing shall be by the pump and plug method, and sufficient cement shall be used to fill the calculated annular space back of the casing to the surface of the ground. If returns to the surface of the ground are not realized, a temperature survey must be conducted to find the location of the cement and necessary work performed to provide cementing from the shoe of the casing to the surface of the ground. The cement shall be allowed to stand for a period of 24 hours before drilling plug.

If more than 1,200 feet of surface casing is required, in lieu of setting the full amount of surface casing required to protect freshwater sands, the applicant may use the multistage cementing process on the next casing string. In using the multistage cementing process, sufficient cement shall be used in the stage cement job that is equivalent to the volume of the annulus from the cementing tool to the surface of the ground. If the cement does not reach the surface of the ground, a temperature survey must be conducted. If the survey shows that the top of the cement is less than one-third of the distance from the shoe of the surface casing to the surface, corrective measures must be taken. Any applicant using the multistage process must file with the director a copy of the state railroad commission letter granting such permit and an affidavit from the company performing the cementing. Failure to file either of these shall be unlawful and shall be punishable in accordance with this article.

(12)

Before drilling and setting casing in any well for oil or gas within the corporate limits, the permittee must notify the fire chief and obtain letter(s) from the state regulatory authorities stating where the freshwater sands are to be found in the area or field in which the well is to be drilled. A copy of the state regulatory authorities letter(s) must be filed with the director and the fire chief, and the permittee must set sufficient surface casing as required. Failure to file a copy of the state water commission's letter shall be unlawful and shall be punishable under section 1-14.

(13)

All completed wells within the city shall be equipped with Christmas tree fittings and wellhead connections, with a rated working pressure equal to or greater than the surface shut-in pressure of the well. All wellhead connections shall be assembled and tested prior to installation by a fluid pressure, which shall be equal to the test pressure of the fitting employed.

(14)

Whenever any well is abandoned within the city limits, it shall be the obligation of the permittee to plug such well in accordance with the rules and regulations of the state railroad commission and to make any and all additional provisions or take precautionary measures prescribed by the state or the state railroad commission in connection with abandonment and plugging of the well. It shall be the further obligation of the permittee or the operator of the well to cut the surface casing off at least six feet below the surface of the ground and to place at least a 25-foot cement plug in the top of the casing and to weld the top of the casing completely shut. The resulting hole in the ground must be completely filled to the surface of the ground and duly tamped.

Abandonment shall be approved by the city engineer after restoration of the drill site and the subsurface thereof has been accomplished in conformity with state regulations and the following requirements:

a.

The derrick and all appurtenant equipment thereto is removed from the drill site;

b.

All tanks, towers, and other surface installations are removed from the drill site;

c.

All concrete, piping, wood, and other foreign materials regardless of depth, except surface casing, are removed from the drill site, unless otherwise directed by the state railroad commission;

d.

All holes and depressions are filled with clean compatible soil;

e.

All oil, waste oil, refuse, or waste material is removed from the drill site;

f.

Operator pays an abandonment fee in an amount set by council resolution; and

g.

During abandonment operator shall comply with all applicable sections in this chapter.

(15)

It shall be unlawful and an offense for any person to use, construct or operate in connection with any producing well within the city limits any crude oil storage tanks except to the extent of two steel tanks for oil storage, not exceeding 500-barrel capacity each, and so constructed and maintained as to be vaportight and each surrounded with an earthen firewall at such distance from the tanks as will, under any circumstances, hold and retain at least two and one-half times the maximum capacity of such tank. A permittee may use, construct and operate a steel conventional separator and such other steel tanks and appurtenances as are necessary for treating oil, with each of such facilities to be so constructed and maintained as to be vaportight. Each oil and gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head.

(16)

Any person may install equipment for the purpose of secondary recovery or pressure maintenance operations or for automatic lease operations, provided that such person must comply with all safety requirements of this article and of the state railroad commission.

(17)

It shall be unlawful for any person within the corporate limits to install any fired vessel or open flame nearer than 150 feet to any well or storage tank.

(18)

Except in a drilling overlay district, any appurtenance that is three feet or more in height and within 300 feet of a property line or a public right-of-way shall be adequately protected by an opaque fence so constructed that it will prevent easy entry, in accordance with the Code, including the chapter 18, article XIV of the Code and the ULDC. Fences to prevent easy entry shall be approved by the director.

(19)

The premises shall be kept in a clean and sanitary condition, free from rubbish of every character, at all times during the drilling operation and as long thereafter as oil or gas is being produced therefrom. Every permittee's premises shall be kept clear of high grass, weeds and combustible trash or any other rubbish or debris that might constitute a fire hazard within a radius of 100 feet around any oil tank or producing well or to the limits of premises, whichever is the lesser.

(20)

No prime movers shall be permitted within the corporate limits for the purpose of pumping wells, except electric motors. However, nonelectric motors may be used in an unusual hardship, with approval of the fire chief.

(21)

Printed signs reading "danger, no smoking allowed" or similar words shall be posted in conspicuous places on each well, storage tank or battery of tanks within the corporate limits.

(22)

Material, equipment, tools or pipe used for either drilling or producing operations at the well shall not be delivered to or removed from the well site except between the hours of 7:00 a.m. and 7:00 p.m. of any day, except in an emergency; provided, however, that this restriction shall not apply to operations conducted in an area zoned heavy industrial under the provisions of the Unified Land Development Code.

(23)

It shall be unlawful to block or encumber or close up any streets or alleys in any drilling or production operations, except by an ordinance duly passed by the city council permitting a temporary closing of a street or alley.

(24)

All new flow lines shall be located underground at least 18 inches under grade from and after February 23, 2014. Warning signs shall be placed for lines carrying hydrogen sulfide gas as required by the commission and all other applicable state or federal regulatory agencies, and an identifying sign at each point where a flow line or gathering line crosses a public street, road, or fence line. Identification signs must conform to commission regulations.

(25)

All tanks, piping and appurtenances shall comply with the requirements of NFPA 30.

(26)

All electrical equipment, lighting, bonding and grounding shall comply with the requirements of NFPA 70.

The fire chief, upon a determination of change in standards or technology, may permit a variance from the forgoing provisions of this section, or a functionally equivalent alternative method to achieve equivalent compliance.

(Ord. No. 671, § 15, 2-14-63; Code 1967, § 20-61; Ord. No. 11,434, § 16, 9-9-10; Ord. No. 11,866, § 20, 2-23-12; Ord. No. 12,474, § 19, 2-13-14)