HomeMy WebLinkAboutORD 2006-085 ORDINANCE NO. 2006-85
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AMENDING THE GRAPEVINE CODE OF
ORDINANCES BY AMENDING CHAPTER 12, HEALTH AND
SANITATION, BY ADDING ARTICLE VII OIL AND GAS WELL
DRILLING, REPEALING CONFLICTING ORDINANCES;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY,
NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000.00) FOR
EACH SEPARATE OFFENSE AND A SEPARATE OFFENSE
SHALL BE DEEMED COMMITTED UPON EACH DAY DURING OR
ON WHICH A VIOLATION OCCURS; DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine deems it necessary, for the purpose of
promoting the health, safety, morals, or general welfare of the City to amend the Code of
Ordinances to add additional regulations regarding oil and gas well drilling and production
regulations; and
WHEREAS, all legal prerequisites and requirements for the passage of this
Ordinance have been adhered to, including but not limited to the Open Meeting Act; and
WHEREAS, the City of Grapevine City Council deems the passage of this
Ordinance to be in the best interest of the health, safety, and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1. That all matters stated hereinabove are found to be true and correct
and are incorporated herein as if copied in their entirety.
Section 2. That Chapter 12, of the Grapevine Code of Ordinances, Health and
Sanitation is hereby amended by the addition of Article VII which is attached hereto as
Exhibit "A", which exhibit is incorporated herein as if copied in its entirety.
Section 3. That all ordinances or any parts thereof in conflict with the terms of this
ordinance shall be and hereby are deemed repealed and of no force or effect.
Section 4. Any person violating any of the provisions of this ordinance shall be
deemed guilty of a misdemeanor and upon conviction thereof shall be fined in a sum not
to exceed two thousand dollars ($2,000.00) and a separate offense shall be deemed
committed upon each day during or on which a violation occurs or continues.
Section 5. If any section, subsection, sentence, clause or phase of this ordinance
shall for any reason be held to be invalid, such decision shall not affect the validity of the
remaining portions of this ordinance.
Section 6. The fact that the present ordinances and regulations of the City of
Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace
and general welfare of the inhabitants of the City of Grapevine, Texas, creates an
emergency for the immediate preservation of the public business, property, health, safety
and general welfare of the public which requires that this ordinance shall become effective
from and after the date of its passage, and it is accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on this the 19th day of December, 2006.
APPROVED:
William D. Tate
Mayor
ATTEST:
Lindy Huff
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr. '
City Attorney
ORD. NO. 2006-85 2
EXHIBIT "A" TO ORD. 2006-85
Page 1 of 23
CHAPTER 12 HEALTH AND SANITATION
Article VII Oil and Gas Well Drilling Regulations.
Section 12-140. Purpose.
The purpose of this Chapter is to establish regulations which describe the process
for the review and approval of oil and gas well drilling and production, but more specifically
to:
A. 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 and gas and other substances produced
in association with oil and gas within the corporate City of Grapevine limits;
B. provide for the safe, orderly, and healthful development of the area within the city
and within the area surrounding the city and to promote the health, safety, and
general welfare of the community;
C. encourage appropriate protection to environmentally sensitive areas;
D. establish procedures for the review and approval of gas well site plans.
Section 12-141. Definitions.
The following words, terms, and phrases, when used in this Article, shall have the
meanings as ascribed to them in this section, except where the context clearly indicates
a different meaning. In the absence of a definition in this section, a word, term, or phrase
shall have the meaning as otherwise ascribed in this Code of Ordinance. In the absence
of a definition in the Code of Ordinances, words, terms, and phrases shall have the
meanings generally accepted in everyday use.
Section 12-142. Permit Required.
No drilling or production of an oil or gas well shall begin until the following have been
approved:
A. No application for an oil or gas well development site plan or oil or gas well permit
or any other application for drilling and production shall be approved until a Special
Use Permit ("SUP") has been approved in accordance with the Zoning Ordinance.
Denial of an SUP for oil or gas well drilling and production shall be grounds for
denial of any other permit applications pertaining to such use for the same land.
B. An oil or gas well development site plan that has been approved by the City Council
is on file with the City that conforms to the requirements of this Ordinance and the
Code of Ordinances.
EXHIBIT "A" TO ORD. 2006-85
Page 2 of 23
C. An oil or gas well permit shall not constitute authority for the re-entering and drilling
of an abandoned well. An operator shall obtain a new well permit in accordance with
the provisions of this section if the operator is re-entering and drilling an abandoned
well.
D. No oil, gas well permit shall be issued for any well to be drilled on City of Grapevine
owned property without the prior consent of City Council.
Section 12-143. Permit Conditions.
The following shall be applicable to all gas well site plan and permit applications:
A. It shall be the policy of the City of Grapevine to consider oil and gas well drilling and
production as subject to the control of the City pursuant to the City of Grapevine
Comprehensive Plan for the orderly, planned, efficient, and economical
development of the City.
B. The City has no obligation to extend water or sewer service to any lot, tract or parcel
or land site planned for oil or gas well drilling and production in violation of this
Chapter.
C. All oil and gas well site plans shall conform to the rules and regulations set forth
herein.
D. This Chapter is not intended to repeal, abrogate, or impair any existing plans or
ordinances. However, if the provisions of this Chapter and other ordinances or
plans conflict or overlap, the most restrictive provisions thereof shall apply.
E. The provisions contained in this Chapter, shall be considered as the minimum
requirements for review and approval of an oil or gas well site plan.
F. An oil or gas well permit shall not be required for exploration for oil or gas.
Exploration of oil or gas means 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.
Section 12-144. Site Plan Requirements
The applicant requesting gas well drilling and production approval shall submit the
required number of copies of a site plan drawing as determined by the Administrative
Official and which complies with this Section.
A. Identify truck and vehicle routes to the well site, including:
1. Tabularized summary of non-TXDOT roads that will be used, and;
2. Lengths of each road that will be used to access the site.
EXHIBIT "A" TO ORD. 2006-85
Page 3 of 23
B. Identify location and dimension of existing or proposed driveway(s) to be used.
C. Identify the 100-year flood plain.
D. Identify the proposed source of water.
E. Identify and show the proposed method of erosion control.
F. Identify the location of proposed lease lines and property lines.
1. Label distance between wells and property lines;
2. Label distance between wellheads and structures within 1,000 feet of
wellheads.
3. Label distance between temporary holding ponds and floodplains.
G. Show location of all proposed underground pipelines. As built drawings shall be
filed with the Engineering Department. All pipelines proposed in the public right-of-
way shall require a Right-of-way Use Agreement.
H. Identify if pipelines connect with a Gas Distribution System.
I. General Requirements:
1. Property Owner/Mineral Lessee / Mineral Owner/ Gas Well Operator- The
names and addresses of the current owner of record, mineral lessee,
minerals owner and gas well operator.
2. Surveyor Name - The name, address and telephone number of the surveyor
responsible for the site plan which shall contain the seal of a Texas
Registered Professional Land Surveyor.
3. Gas Well Name — Title block containing the proposed name of the gas
well(s), acres in lease, survey, and jurisdiction.
4. Location Map - A location map showing the tract by reference to streets or
highways.
5. Date - The date the site plan was prepared.
6. Scale & North Arrow - The site plan shall be prepared at a numerical scale
no greater than one (1) inch equals one hundred (100)feet unless approved
by the Administrative Official responsible for subdivision review. A graphic
scale symbol shall be placed on the drawing with a north arrow indicating the
approximate true north.
EXHIBIT "A" TO ORD. 2006-85
Page 4 of 23
7. Development Boundary Lines - The development boundary lines shall be
shown in heavy lines so as to provide a differentiation with the internal
features of the area being proposed for site planting. The location and
dimensions of all boundary lines of the property shall be expressed to the
nearest hundredth foot.
8. Metes and Bounds Description - A written metes and bounds description of
the property shall be shown on the site plan and be capable of reproducing
such lines upon the ground with a closure error of less than 1:25,000. The
legal description shall include reference to an original survey or subdivision
corner, and the Texas NAD83 State Plane Coordinate System. The legal
description shall include the acreage of the total area of the proposed
subdivision and be consistent with the subdivision boundary. The legal
description shall contain information to show the last instrument conveying
title to each parcel of property involved in the proposed subdivision, giving
grantor, grantee, date, and land records reference.
9. Adjacent Properties - All property lines, streets and easements on lands
immediately adjacent to and contiguous with the perimeter of the proposed
subdivision and extending one hundred (100) feet shall be shown with the
names of the owners as shown on the most current Tax Assessor's files.
10. Street Rights-of-Way - The width of all public street rights-of-way shall be
shown on the site plan. The general location and width shall be consistent
with the Master Thoroughfare Plan. Dimensions shall be shown for all
curves. The distance from the centerline of any existing roadway of a
boundary street to the proposed subdivision shall be shown to determine the
adequacy of right-of-way along the route and to determine if additional right-
of-way is necessary to accommodate the proposed street.
11. Permanent Structures - The location and general outline of any existing
permanent structures, parking lots, driveways, and other significant
structures.
12. City Limit Lines - The location of the city limit boundaries of the City of
Grapevine and any adjacent city shall be shown on the site plan.
13. Easements - The location and dimension of all existing or proposed
easements shall be shown on the site plan drawing indicating whether such
easement is for any specific purpose.
14. Sheet Size - Map sheets shall be twenty-four by thirty-six (24"x 36") inches.
Sheets shall be numbered in sequence if more than one (1) sheet is used
and an index sheet provided with match lines.
15. Site plan Notes and Conditions - When appropriate, the site plan shall
contain a listing of any site plan notes and site plan conditions in a readily
identifiable location with each note numbered consecutively.
EXHIBIT "A" TO ORD. 2006-85
Page 5 of 23
16. Street Names -All street names shall be shown on the site plan. New street
names shall be sufficiently different in sound and in spelling from other street
names in the city to avoid confusion. The continuation of an existing street
shall bear the same name.
17. Lot Areas - The area for each lot expressed in square feet shall be shown on
the site plan.
18. Survey Notes - The Final Site plan shall be accompanied by one (1) set of
surveyor's closure notes for the boundary of the subdivision. The notes shall
be referenced in the same manner as the site plan.
19. Certification Blocks —All site plans shall contain the appropriate certification
blocks which shall be similar to those shown.
Section 12-145. Oil and Gas Well Drilling and Production Standards
A. On-site Requirements.
1. Entrance Gate: A secured entrance gate shall be required and signs
identifying the entrance to the drill site or operations site shall be reflective.
2. Fencing: All drilling features including storage pits shall be fenced to prevent
access, unless 24-hour supervision is provided. When not supervised, all
fences shall remain locked.
3. Illegal Dumping: No person shall place, deposit, or discharge any oil, naptha,
petroleum, asphalt, tar, hydrocarbon substance, or any refuse including
wastewater or brine, from any oil or gas operation or the contents of any
container used in connection with any oil or gas operation 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 of City of Grapevine.
4. Fire Suppression: All fire suppression and prevention equipment required by
any applicable federal, state, or local law shall be provided by the operator,
at the operator's cost, and maintenance and upkeep 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. Screening: All well heads, storage tanks, separation facilities or other
mechanical equipment shall be screened with a 6-foot high solid screen
fence, good side facing from the gas or oil well.
EXHIBIT "A" TO ORD. 2006-85
Page 6 of 23
7. Closed-loop drilling fluid systems: Closed-loop drilling fluid systems shall be
used instead of lined reserve pits.
8. Discharge: No person shall place, deposit, discharge, or cause or permit to
be placed, deposited or discharged, any oil, naphtha, petroleum, asphalt, tar,
hydrocarbon substance, or any refuse including wastewater or brine from any
oil and/or gas operation, or the contents of any container used in connection
with any oil and/or gas operation in, into, or upon any public right-of-way,
alleys, streets, lots, storm drain, ditch or sewer, sanitary drain or any body of
water or any private property in the City of Grapevine.
9. Drilling fluids: Low toxicity glycols, synthetic hydrocarbons, polymers, and
esters shall be substituted for conventional oil-based drilling fluids.
10. Drilling fluid storage pits: No drilling fluid storage pits shall be located within
the City of Grapevine.
11. Drill stem testing: All open hole 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 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.
12. Signs:
a. A sign shall be immediately and prominently displayed at the gate on
the temporary and permanent site fencing. Such sign shall be durable
material, maintained in good condition and, unless otherwise required
by the Commission, shall have a surface area of not less than two
square feet nor more than four square feet and shall be lettered with
the following:
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 incase 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 fire chief of the City of
Grapevine. 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
EXHIBIT "A" TO ORD. 2006-85
Page 7 of 23
department and the operator, well and lease designations required by
the Commission.
B. Operations and Equipment Standards.
1. During fracing process:
a. "flowback" operations to recover fluids used during fracture stimulation
shall be performed during daylight hours;
b. a watchperson shall be required at all times during such operations;
and
c. at no time shall the well be allowed to flow or vent directly to the
atmosphere without first directing the flow through separation
equipment or into a portable tank.
2. Nuisance prevention measures shall be implemented to prevent or control
offensive odor, fumes, dust, noise, and vibration in accordance with the
conditions set forth by the approved ordinance.
3. Directional lighting shall be provided for the safety of oil or gas well drilling
and production operations and shall be provided so as to not disturb or
adversely affect adjacent developments.
4. 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. Only electric motors will be used for the purpose of pumping oil or gas.
Internal combustion engines may be used in drilling operations if they have
mufflers that will reduce noise levels to not more than 65 decibels at any
point 300 feet from the boundary of the drill site or operation site, whichever
is greater.
6. No venting of gas into the open air in residential areas except as allowed by
the Railroad Commission and as approved by the Fire Marshal.
7. Only Light Sand Fracture Technology or technologies approved by the Fire
Marshal in accordance with the Fire Code shall be used to fracture stimulate
a well.
8. Air, gas, and pneumatic drilling shall not be permitted.
9. The operator shall provide written notice to property owners within 1,000 feet
72 hours prior to the commencement of fracture activities.
EXHIBIT "A" TO ORD. 2006-85
Page 8 of 23
10. No storage tanks or separation facilities shall be placed in the 100-year
flood plain.
11. The operator shall place an identifying sign at each point where the flow line
or gathering line crosses a public street or road.
12. Structures shall not be built or placed over flow lines or gathering lines.
13. Landscaping: Screening shrubs shall be installed completely around the
well site and all fences and be sufficient to screen from view the structures
sought to be screened. Screening shrubs shall be a minimum of three feet
in height at planting, have the potential to grow to a mature height of a
maximum of five feet and, if necessary, must have an installed irrigation
system that provides total water coverage to all plant materials. The
vegetation or berms shall be kept in an attractive state and in good condition
at all times by the applicant or operator. All landscape and irrigation plans
shall be submitted to the DRC for approval.
14. Vehicle routes for oil and gas well permits. Vehicles associated with drilling
and/or production in excess of three tons shall be restricted to such streets
designated as arterials, collectors or local commercial as delineated in the
City of Grapevine's thoroughfare plan, and in accordance with the
truck/vehicle route as provided for in Section 12.143 A. herein. The vehicles
shall be operated on state arterials whenever capable of being used. Such
vehicles shall be operated only on City of Grapevine arterials, collectors and
local commercial only when it is not possible to use a state arterial to fulfill
the purpose for which such vehicle is then being operated.
15. Work hours for oil and gas well permits: Site development, other than drilling,
shall be conducted only between 7:00 a.m. and 7:00 p.m. Monday through
Friday and 9:00 a.m. to 5:00 p.m. on Saturday. Truck deliveries of equipment
and materials associated with drilling and/or production, well servicing, site
preparation and other related work conducted on the well site shall be limited
to between the above same work hour restrictions except in cases of fires,
blowouts, explosions, and any other emergencies or where the delivery of
equipment is necessary to prevent the cessation of drilling or production.
16. Noise restrictions for oil and gas well permits:
a. No drilling, producing or other operations shall produce a sound level
greater than 65 dB(a) when measured at a distance of 300 feet from
the boundary of the drill site or operation site, whichever is greater.
The noise level shall be the average of sound level meter readings
taken consecutively at any given time from four or more diametrically
opposite positions, four feet above ground level, when measured at
a distance of 300 feet from the production equipment. A maximum
sound level of 85 dB(a) shall apply to formation fracturing when
EXHIBIT "A" TO ORD. 2006-85
Page 9 of 23
measured at a distance of 300 feet from the boundary of the drill site
or operation site, whichever is greater.
b. No person shall operate or permit to operate in connection with the
operation of a producing well any engine, compressor or motor-driven
machinery of any type which creates a sound level greater than 65
dB(a)when measured at a distance of 300 feet from the boundary of
the drill site or operation site, whichever is greater. The noise level
shall be the average of sound level meter readings taken
consecutively at any given time from four or more diametrically
opposite positions measured at a distance of 300 feet from the
boundary of the drill site or operation site, whichever is greater.
17. Installation of pipelines on, under or across public property: The operator
shall apply to the City of Grapevine for an agreement on, over, under, along
or across the City of City of Grapevine streets, sidewalks, alleys and other
City of Grapevine 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 oil, gas, or
combined well permit issued pursuant to this article. Operator 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 to the director of development of the City of Grapevine a site
plan showing the location of such pipelines.
c. Construct such lines out of pipe in accordance with the City of
Grapevine codes and regulations properly cased and vented if under
a street;
d. Grade, level and restore such property to the same surface condition,
as nearly as practicable, as existed when operations for the drilling of
the well were first commenced.
e. All required agreements pursuant to this division shall be completed,
reviewed, and resolved by the City of Grapevine engineer, City of
Grapevine attorney, City of Grapevine city manager, and, if required,
by City Council, prior to the determination of any oil, gas, or combined
permit as administratively complete.
18. Flow lines and gathering lines:
a. Operator shall place an identifying sign at each point where a flow line
or gathering line crosses public street or road.
EXHIBIT "A" TO ORD. 2006-85
Page 10 of 23
b. Operator shall place a warning sign for lines carrying H2S (hydrogen
sulfide) gas as required by all applicable state or federal regulatory
agencies.
c. All flow lines and gathering lines within the corporate limits of the City
of Grapevine (excluding City of Grapevine 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 and shall be installed with at least the
minimum cover or backfill specified by the American National Safety
Institute Code, as amended.
d. Structures shall not be built over flow lines or gathering lines.
19. No oil, gas, or combined well permit shall be issued for any well to be drilled
within any of the streets or alleys of the City of Grapevine, and no street or
alley shall be blocked or encumbered or closed due to any exploration,
drilling or production operations unless prior consent is obtained from the
City of Grapevine engineer. Any consent from the oil and gas inspector shall
be temporary in nature and state the number of hours and/or days that any
street or alley may be blocked, encumbered or closed.
C. Environmental Safety Standards.
1. Erosion control practices shall be conducted for all oil or gas wells. Compost
berms that are at least 1-foot high and 2-feet wide, or equivalent erosion
devices, shall be installed so that all portions of the well pad that may drain
off-site are contained.
2. Damage resulting from sedimentation and / or erosion shall be repaired
immediately.
3. Gas or oil wells may have a target location or bottom-well hole location that
is under the floodway when the gas or oil well is drilled directionally from a
location outside such areas.
4. Each 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.
5. 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.
6. All storage tanks shall be anchored for stability.
EXHIBIT "A" TO ORD. 2006-85
Page 11 of 23
7. All storage tanks shall be equipped with either steel or concrete secondary
containment systems 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. Drip pots shall be provided at pump out connections to
contain the liquids from the storage tank.
8. Outdoor storage areas shall be equipped with a secondary containment
system designed to contain a spill from the largest individual vessel. If the
area is open to rainfall, secondary containment shall be designed to include
the volume of a 24-hour rainfall as determined by a 25-year storm and
provisions shall be made to drain accumulations of ground water and rainfall.
9. Tank battery facilities shall be equipped with a remote foam line and a
lightning arrestor system.
10. No structures shall be built over an abandoned well.
11. No oil or gas well drill sites shall be allowed on slopes greater than ten (10)
percent.
12. No salt-water disposal wells shall be located within the City of City of
Grapevine.
13. No oil, gas, or combined well permit shall be issued for any well to be drilled
within 750 feet of a floodplain.
14. For floodplains identified by the Federal Emergency Management Agency
(FEMA) on the most current federal insurance rate map (FIRM), except for
zones A or X, the distance measurement from the proposed well bore shall
be calculated as a straight line, without regard to intervening structures or
objects, to the closest exterior point of the base flood elevation topographic
contour.
15. For all areas within the City of Grapevine's corporate limits, in which the
proposed well bore is within 775 feet of any type of surface water
conveyance, including, but not limited to, creeks, streams, drainage ditches,
or other constructed storm water conveyance systems, calculating distance
in a straight line from the conveyance centerline, an approximate flood study
shall be prepared by the applicant and approved by a City of Grapevine
engineer. Upon completion of the approximate flood study, if the City of
Grapevine engineer determines that the proposed well bore is within 100 feet
of any type of surface water conveyance, or other flood hazard area, then a
detailed flood study shall be prepared by the applicant and approved by the
City of Grapevine engineer.
EXHIBIT "A" TO ORD. 2006-85
Page 12 of 23
16. No oil or gas well permit will be issued for any well where the center of the
well at the surface of the ground is located within 1,000 feet of an existing
fresh water well intended for domestic use.
17. The contents of any pit shall always be maintained at least 2 feet below the
top of the pit.
18. Fencing shall be installed to restrict access to open water reservoirs utilized
in oil or gas well drilling operation at a drill site within the corporate limits of
the City.
19. After the well has been completed, or plugged and abandoned, the operator
shall clean and repair all damage to public property caused by such
operations within thirty (30) days.
20. After any spill, leak or malfunction, the operator shall remove or cause to be
removed all waste materials from any public or private property affected by
such spill, leak or malfunction. Cleanup operations shall begin immediately.
21. The drill site shall at all times be kept free of debris, pools of water or other
liquids, contaminated soil, weeds, brush, trash or other waste material
outside the drill site within a radius of one hundred (100) feet around any
separators, tanks and producing wells within the leased property.
22. Drilling mud pits shall adhere to the following requirements:
a. Only freshwater-based mud systems shall be permitted. Saltwater-
based mud systems and oil-based mud systems are prohibited.
b. No metal additives may be added to any drilling fluids.
c. All fluid produced from the well during completion of production shall
be held in enclosed containers while stored on the property.
d. The pit and its contents shall be removed from the premises within
ninety (90) days after completion of the well; provided, however, that
the permittee may apply for a 90 day extension from such
requirements based on showing of good cause, necessity to maintain
said pit, inclement weather, or other factors. The City may designate
a period of time shorter than the 90-day extension set out herein.
23. A copy of the hazardous materials management plan as required by the City
of Grapevine's Fire Marshal's office. In addition to the hazardous materials
management plan, all material safety data sheets (MSDSs) for all hazardous
materials that will be located, stored, transported, and/or temporarily used on
the drilling site shall be provided to the oil and gas inspector and Fire
Marshal.
EXHIBIT "A" TO ORD. 2006-85
Page 13 of 23
24. A copy of the emergency response plan as required by the City of
Grapevine's Fire Marshal's office.
25. A copy of the determination by the Texas Commission on Environmental
Quality of the depth of useable quality ground water.
D. Setback Distances.
1. Wells setbacks for gas or oil well permits:
It shall be unlawful to drill, redrill, deepen, re-enter, activate or convert any
well, the center of which, at the surface of the ground, is located:
a. Within 1,000 feet from any public park; or
b. Within 1,000 feet from any residence, religious institution, public
building, hospital building or school for which a building permit has
been issued on the date of the application for a drilling permit is filed
with the Fire Marshal; or
c. Within 1,000 feet from any building used, or designed and intended
to be used, for human occupancy; or
d. Within 500 feet from any lease line as indicated on Texas Railroad
Commission Form W-1, or recorded property, lot or tract line; or
e. Within 500 feet from any existing storage tank, or source of potential
ignition; or
f. Within 200 feet of any public street, road, highway, or right-of-way
line; or
g. Within 100 feet of any building accessory to, but not necessary to the
operation of the well; or
h. Within 1,000 feet to any fresh water well; or
The measurement of all distances 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 any object
listed in a. through h. above.
j. For purposes of this section, a "building used, or designed and
intended to be used, for human occupancy" means an enclosed
EXHIBIT "A" TO ORD. 2006-85
Page 14 of 23
space, other than a residence, in which individuals congregate for
amusement or similar purposes or in which occupants are engaged
at labor, and which is equipped with means of egress, light, and
ventilation facilities."
2. The distances set out in this may be reduced at the discretion of the City
Council.
3. Tank batteries, well facilities and equipment shall be located at least 1,000
feet from any public park, or from any residence, religious institution, public
building, hospital building or school, or any other building used, or designed
and intended to be used, for human occupancy, for which a building permit
has been issued on the date of the application for a drilling permit is filed.
The distance shall be calculated from the closest tank batteries, well facilities
and/or equipment, in a straight line, without regard to intervening structures
or objects, to the closest exterior point of the building.
Section 12-146. Insurance and Indemnification Requirements.
The operator shall provide or cause to be provided the insurance described below
for each well for which a Gas or Oil Well Permit is issued, such insurance to continue until
the well is abandoned and the site restored. The operator may provide the required
coverage on a "blanket basis for multiple wells". Such coverage shall be subject to the
review and approval of the City Attorney for the City of City of Grapevine.
A. General Requirements. Indemnification and Express Negligence Provisions.
1. Each Gas 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 have or may
have, or assigns may have, or claim to have, against the City of Grapevine,
and/or its departments, it agents, attorneys, elected officials, officers,
contractors, servants, successors, assigns, sponsors, volunteers, or
employees, created by, or arising out of personal injuries, bodily injuries, or
death, 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 gas or oil well permit and the operator
caused by or arising out of, that sequence of events which occur from the
operator under the Oil or Gas Well Permit and work performed by the
operator shall fully defend, protect, indemnify, and hold harmless the City of
Grapevine, 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 Grapevine, 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
EXHIBIT "A" TO ORD. 2006-85
Page 15 of 23
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 or Oil Well
Permit and, the Operator agrees to indemnify and hold harmless the City of
Grapevine, Texas, and/or its departments, and/or its officers, agents,
attorneys, elected officials, attorneys, 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, it's officers, agents, servants, or employees, created by, or
arising out of the acts or omissions of the City of Grapevine occurring on the
drill site or operation site in the course and scope of inspecting and
permitting the gas or oil wells INCLUDING, BUT NOT LIMITED TO, CLAIMS
AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE
NEGLIGENCE OF THE CITY OF GRAPEVINE OCCURRNG ON THE DRILL
SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF
INSPECTING AND PERMITTING THE GAS OR OIL WELLS. IT IS
UNDERSTOOD AND AGREED THAT THE INDEMINITY PROVIDED FOR
IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO
INDEMNIFY AND PROTECT THE CITY OF GRAPEVINE, TEXAS AND/OR
ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYES
FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF
GRAPEVINE, 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 GAS OR OIL 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 30 days advanced written notice to the owner and the City
except when this policy is being cancelled for nonpayment of premium, in
which case 10 days advance written notice is required".
3. Liability policies shall be written by 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 with non-admitted carriers that have a financial
rating comparable to carriers licensed to do business in Texas approved by
the City.
4. Liability policies shall name as "Additional Insured" the City and its officials,
agents, employees, and volunteers.
5. Certificates of insurance shall be presented to the City evidencing all
coverage's and endorsements required by this Section, and the acceptance
of a certificate without the required limits and/or coverage's shall not be
deemed a waiver of these requirements.
EXHIBIT "A" TO ORD. 2006-85
Page 16 of 23
6. Claims made policies will not be accepted except for excess policies or
unless otherwise provided by this Chapter.
B. Required Insurance Coverages.
1. Commercial General Liability Insurance.
a. Coverage should be a minimum Combined Single Limit of$1,000,000
per occurrence for Bodily Injury and Property Damage. This coverage
shall include premises, operations, blowout or explosion, products,
completed operations, blanket contractual liability, underground
property damage, broad form property damage, independent
contractor's protective liability and personal injury.
b. 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 shall provide that any retroactive date
applicable precedes the effective date of the issuance of the permit.
Coverage shall apply to sudden and non-sudden pollution conditions
resulting from the escape or release of smoke, vapors, fumes, acids,
alkalis, toxic chemicals, liquids or gases, waste material or other
irritants, contaminants or pollutants.
2. Automobile Liability Insurance. Minimum Combined Single Limit of$500,000
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
$100,000 for each accident, $100,000 for each employee, and a $500,000
policy limit for occupational disease, and the insurer agrees to waive rights
of subrogation against the City, its officials, agents, employees, and
volunteers for any work performed for the City by the operator.
4. Excess (or Umbrella) Liability Insurance. A minimum limit of $10,000,000,
covering in excess of the preceding insurance policies.
5. Control of Well Insurance:
a. Minimum limit of$5,000,000 per occurrence.
b. 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$500,000 may be added.
EXHIBIT "A" TO ORD. 2006-85
Page 17 of 23
6. Security:
a. A security instrument that covers each well shall be delivered to the
Fire Marshal before the issuance of the Gas or Oil Well Permit for the
well. The instrument shall provide that it cannot be cancelled without
at least thirty 30 days' prior written notice to the City and, if the
instrument is a performance bond, that the bond cannot be cancelled
without at least ten 10 days' prior written notice for non-payment of
premium. The instrument shall secure the obligations of the operator
related to the well to:
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 the Gas or Oil Well
Permit;
ii. Comply with the insurance and security provisions set forth in
this Section; and
iii. Pay fines and penalties imposed upon the operator by the City
for any breach of the Gas or Oil Well Permit.
b. The security instrument may be in the form of an irrevocable letter of
credit or payment bond issued by a bank 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 Gas or Oil Well
Permit is issued, and shall remain in effect until the well is abandoned
and the site restored.
c. A certificate of deposit may be substituted for the letter of credit or
payment bond. The certificate shall be issued by a bank in the City of
Grapevine County, 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 Fire Marshal. Interest on the
certificate shall be payable to the operator.
d. 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$50,000 for any single well and a minimum of$100,000
for multiple wells on a "blanket" basis.
e. The security will terminate when the Gas or Oil Well Permit is
transferred, with respect to the operator-transfer or and if the
operator-transferee provides replacement security that complies with
this section, when the well is abandoned and the site restored, and
when the Fire Marshal consents in writing to such termination.
EXHIBIT "A" TO ORD. 2006-85
Page 18 of 23
f. An appeal of the determination of the amount of security required
under this Chapter may be made to the City Council for final
determination of the amount of security.
Section 12-147. Permit Approval
The Director of Public Works may condition the release of the approved Gas or Oil
Well Permit upon the operator providing the security required by Section 12-145 and upon
the operator entering into a Road Repair Agreement that will obligate 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 by the operator's employees, agents, contractors,
subcontractors or representatives in the performance of any activity authorized by the
approved Gas or Oil Well Permit.
A. The failure of Fire Marshal to review and issue a Gas or Oil Well Permit within 30
days shall not cause the application for the permit to be deemed approved.
B. Each Gas or Oil Well Permit issued by the Fire Marshal shall:
1. Identify the name of each well and its operator;
2. Specify the date on which the Fire Marshal issued each permit;
3. Specify the date by which drilling shall commence on at least one well
covered by the permit otherwise the permit expires (such date shall not be
less than one year after the date of issuance);
4. Specify that if drilling is commenced on at least one well covered by the
permit before the permit expires, the permit shall continue until the wells
covered by the permit are abandoned and the site restored;
5. Incorporate, by reference, the insurance and security requirements set forth
in Section 12-146;
6. Incorporate, by reference, the applicable rules and regulations of the Railroad
Commission, including the applicable "field rules";
7. Specify that no drilling operations (including the construction of internal
private access roads) shall commence until the operator has provided the
security required by Section 12-146;
8. Contain the name, address, and phone number of the person designated to
receive notices from the City, which person shall be a resident of Texas that
can be served in person or by registered or certified mail; and
9. Incorporate by reference all permits and fees required.
Section 12-148. Emergency Reporting
EXHIBIT "A" TO ORD. 2006-85
Page 19 of 23
A. Requirement to report emergencies:
1. The operator shall immediately notify the oil and gas inspector and Fire
Marshal of any incident resulting in product loss from a hydrocarbon storage
facility or pipeline facility, blowout, fire, explosion, incident resulting in injury,
death, or property damage, or any other significant incidents as defined by
the City.
2. A written report, containing a brief summary of the incident, shall be
submitted to the oil and gas inspector by 5:00 p.m. on the first business day
of the City of Grapevine following the incident, and a duplicate report shall
be submitted to the Fire Marshal by the same time.
3. A follow-up report shall be submitted to the oil and gas inspector and the Fire
Marshal within 30 days following the incident. The operator responsible for
the follow-up incident report shall include the following information:
i. Operator/applicant name, phone number, addresses, and, if possible,
e-mail address.
ii. Description of the incident, including, but not limited to, the time, date,
location, and cause of the event.
iii. Duration of the incident, that is, when the it began and when it
terminated to the degree that it no longer constituted a hazard to the
health, safety, and well-being of persons or property, regardless of the
distance or separation from the place of incident.
iv. How the incident was brought under control and/or remedied.
v. A full and complete description of the type of inter-company
investigation or other investigation or inquiry that was made
concerning the incident, the findings or results of such inquiry or
investigation, and the action taken as a result of the findings and
inquiry concerning the prevention of the existence of future hazards.
vi. Signed and dated by the person responsible for such report.
4. The operator shall provide a copy of any "incident reports" or written
complaints submitted to the Texas Railroad Commission within 30 days after
the operator has notice of the existence of such reports or complaints. This
shall include, but not be limited to, notification of any reportable quantity
releases of oil, natural gas, and/or associated minerals, chemicals, or solid
and/or liquid wastes, pursuant to regulatory requirements established by the
commission, and notification to the Fire Marshal of any fire, and/or
equipment strikes by lightning.
5. Beginning on December 31st, after each well is completed, and continuing
on each December 31st thereafter until the operator notifies the oil and gas
inspector that the well has been abandoned and the site restored, the
operator shall submit a written report to the Fire Marshal identifying any
changes to the information that was included in the application for the
EXHIBIT "A" TO ORD. 2006-85
Page 20 of 23
applicable permit that have not been previously reported to the City of
Grapevine.
Section 12-149. Periodic Reporting Requirements.
A. The operator shall notify the Fire Marshal of any changes to the following
information immediately, within one business day after the change occurs.
1. The name, address, and phone number of the operator;
2. The name, address, and 24-hour phone number of the person(s) with
supervisory authority over drilling or operations activities;
3. The name, address, and phone number of the person designated to receive
notices from the City, which person shall a resident of Texas that can be
served in person or by registered or certified mail;
4. The operator's Emergency Action Response Plan including "drive-to-maps"
from public rights-of way to each drill site.
B. The operator shall provide a copy of any "incident reports" or written complaints
submitted to the Texas Railroad Commission or any other state or federal agency
within 30 days after the operator has notice of the existence of such reports or
complaints.
C. Beginning on December 31st, after each well is completed, and continuing on each
December 31st thereafter until the operator notifies the Fire Marshal that the well
has been abandoned and the site restored, the operator shall prepare a written
report to the Fire Marshal identifying any changes to the information that was
included in the application for the applicable Gas or Oil Well permit that have not
been previously reported to the City.
Section 12-150. Notice of Activities.
A. Any person who intends to re-work a well using a drilling rig, to fracture stimulate a
well after initial completion, or to conduct seismic exploration involving explosive
charges shall give written notice to the City at least 10 days before the activities
begin.
B. Written notices must be provided, by the operator, to all residences within 1,000 feet
of a well, 24 hours prior to fracing of a wellhead.
C. 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.
D. The notice shall also provide the address and 24-hour phone number of the person
conducting the activities.
EXHIBIT "A" TO ORD. 2006-85
Page 21 of 23
E. The person conducting the activities will post a sign on the property giving the public
notice of the activities, including the name, address, and 24-hour phone number of
the person conducting the activities.
Section 12-151. 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 Gas or Oil Well Permit
(including any requirement incorporated by reference as part of the permit), the Fire
Marshal 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 30 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. The Fire
Marshal may issue a Stop Work Order under the Fire Code.
B. If the operator does not cure the alleged failure within the time specified by the
subsection A, the City Attorney may notify the Texas Railroad Commission and
request that the Texas Railroad Commission take appropriate action (with a copy
of such notice provided to the operator), and the City may pursue any other remedy
available.
C. If the operator does not cure the alleged failure within the time specified by
subsection A, the Fire Marshal may:
1. Recommend to the City Council that the Gas or Oil Well Permit be
suspended until the alleged failure is cured; or,
2. If the operator fails to initiate and diligently pursue a cure recommend to the
City Council that the Gas or Oil Well Permit be revoked.
D. The decision of the Fire Marshal to recommend suspension or revocation of a Gas
or Oil Well Permit shall be provided to the operator in writing at least ten (10) days
before any action by the City Council unless the alleged failure present a risk of imminent
destruction of property or injury to persons
E. If a Gas or Oil Well Permit is revoked, the operator may submit an application a new
Gas or Oil Well Permit for the same well.
Section 12-152. Enforcement and Right of Entry.
A. The Fire Marshal is authorized and directed to enforce this Chapter and the
provisions of any Gas or Oil Well Permit. Whenever necessary to enforce any
provision of this Chapter or a Gas Well Permit, or whenever there is reasonable
cause to believe there has been a violation of this Chapter or a Gas or Oil Well
EXHIBIT "A" TO ORD. 2006-85
Page 22 of 23
Permit, the Fire Marshal, or the designated representative, may enter upon any
property covered by this Chapter or a Gas or Oil Well Permit at any reasonable time
to inspect or perform any duty imposed by this Chapter. If entry is refused, the City
shall have recourse to every remedy provided by law and equity to gain entry.
B. It shall be unlawful and an offense for any person to do the following:
1. engage in any activity not permitted by the terms of a Gas or Oil Well Permit
issued under this Chapter;
2. fail to comply with any conditions set forth in a Gas or Oil Well Permit issued
under this Chapter;
3. violate any provision or requirement set forth under this Chapter.
Section 12-153. Plugged and Abandoned Wells.
A. Whenever abandonment occurs pursuant to the requirements of the Texas Railroad
Commission, the operator so abandoning shall be responsible for the restoration of
the well site to its original condition as nearly as practicable, in conformity with the
regulations of this article.
B. Abandonment shall be approved by the Fire Marshal after restoration of the drill site
has been accomplished in conformity with the following requirements at the
discretion of the Fire Marshal:
1. The derrick and all appurtenant equipment thereto shall be removed from drill
site;
2. All tanks, towers, 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, unless otherwise directed by the Texas Railroad Commission;
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. During abandonment, operator shall comply with all applicable sections in
this article.
C. The operator shall furnish the following at the discretion of the Fire Marshal:
1. A copy of the approval of the Texas Railroad Commission confirming
compliance with all abandonment proceedings under the state law; and
EXHIBIT "A" TO ORD. 2006-85
Page 23 of 23
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.
D. All abandoned or deserted wells or drill sites shall meet the most current
abandonment requirements of the Texas Railroad Commission prior to the issuance
of any building permit for development of the property. No structure shall be built
over an abandoned well.
Section 12-154. Exemptions
The requirements of this Article are not applicable to any property subject to the Airport
Zoning Act pursuant to Chapter 241 of the Local Government Code.