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HomeMy WebLinkAbout08294 ORD - 12/21/1966Revised Pages to FINAL DRAFT dated October 25, 1966 AN ORDINANCE NO.Ll , AMENDING SECTION 24 -55 OF THE CORPUS CHRISTI CITY CODE, 1958, AS AMENDED, DEALING WITH OPERATIONS FOR PRODUCTION OF OIL AND GAS, BY SUBSTITUTION OF THIS ORDINANCE AND REPEALING SECTION 7 OF ORDI- NANCE NO. 2818 PASSED AND APPROVED ON JULY 11, 1950, ORDINANCE NO. 2953, PASSED AND APPROVED ON DECEMBER 19, 1950, ORDINANCE NO. 7201, PASSED AND APPROVED ON APRIL 22, 1964, AND ORDINANCE NO. 7715, PASSED AND APPROVED ON SEPTEMBER 8, 1965, ORDINANCE NO. 7983, PASSED AND APPROVED ON APRIL 20, 1966, ORDINANCE NO. 7999, PASSED AND AP- PROVED ON APRIL 27, 1966, AND ORDINANCE NO. 8045, PASSED AND AP- PROVED ON JUNE 1, 1966, EACH OF WHICH AMENDED SAID SECTION 7 OF SAID ORDINANCE NO. 2818 (SECTION 24 -55 CORPUS CHRISTI CITY CODE, 1958, AS AMENDED) SO AS TO PROVIDE SPECIAL PROVISIONS RELATIVE TO CORPUS CHRISTI BAY, NUECES BAY AND LAGUNA MADRE; DELETING SECTION 24 -55 FROM THE CORPUS CHRISTI CITY CODE EXCEPT TO RECITE: THIS SECTION HAS BEEN AMENDED AND NOW EXISTS IN THE FORM OF A SEPARATE ORDINANCE. WHEREAS, operations for the production of oil and gas with- in the city limits of the City of Corpus Christi, Texas, are reg- ulated by the provisions of the "Corpus Christi Oil and Gas Ordi- nance," being Ordinance No. 2818, passed and approved by the City Council on July 11, 1950, as the same has been amended from time to time and as the same appears in Section 24 of the Corpus Christi City Code of 1958, as amended; and WHEREAS, such operations in certain bay areas have been regulated particularly by the provisions of Section 24 -55 of said Code, being Section 7 of said Ordinance No. 2818, as the same has been amended from time to time; and WHEREAS, developments in these bay areas and in the City of Corpus Christi and its environs require that these provisions for regulation of operations for such production be further amended; and WHEREAS, it is recognized that lessees of oil and gas leases in the area covered by this Ordinance own the right to search for and produce oil and /or gas underlying such leases and are en- titled to reasonable means of extracting such substances; and WHEREAS, the City Council desires and intends by this Ordinance to protect the public health, safety, morals and general welfare within its jurisdiction, and in so doing to regulate 1.0 -25-66 the use of property and the conduct of persons to any required extent within its municipal powers, with due regard for the legal rights of all; and WHEREAS, this Ordinance governs the exploration, drilling and production of oil, gas and other hydrocarbons, but it is intended, insofar as applicable to Corpus Christi Bay, to be primarily appli- cable to the exploration, drilling and production of gas and gas condensate, and it is recognized that in the event additional oil is discovered in commercial quantitites in Corpus Christi Bay, con- ditions may arise which will necessitate a revision in the provisions of this Ordinance but until such other or different classification and regulation is adopted, shall be governed by the provisions here- of; and WHEREAS, it is recognized that certain bay areas, and par- ticularly those annexed to the City of Corpus Christi since June 1, 1966, present peculiar problems for regulation because of differing development history, subsurface conditions, and available facts as to subsurface conditions to the end that reasonable classification of such differing areas is now required, and that bay areas annexed since June 1, 1966, may hereafter require other or different classi- fication and regulation; and WHEREAS, the City Council has made extensive investigation in the premises, directly and through its authorized agents, and has afforded ample opportunity for all segments of the economy and of the public to be heard prior and subsequent to the first publi- cation of this Ordinance; and WHEREAS, the City Council therefore finds that adoption of the following Ordinance is in the public interest, and intending in this act to exercise any and all governmental powers of whatever nature vested in it by law: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Corpus Christi, Texas: Section 1. Repeal and Replacement 1.1 Section 7 of Ordinance No. 2818, passed and -2- 10 -25 -66 approved by the City Council of the City of Corpus Christi, Texas, on the 11th day of July, 1950, (now Section 24 -55 of the Corpus Christi City Code, 1958, as amended), Ordinance No. 2953 passed and approved by said City Council on the 19th day of December, 1950, Ordinance No. 7201 passed and approved by said City Council on April 22, 1964, Ordinance No, 7715 passed and approved by said City Council on September 8, 1965, Ordinance No. 7983 passed and approved by said City Council on April 20, 1966, Ordinance No. 7999 passed and approved by said City Council on April 27, 1966, and Ordinance No. 8045 passed and approved by said City Council on June 1, 1966, be and the same hereby are repealed and replaced by this Ordinance as a separate Ordinance no longer a part of said City Code, but in effect in addition to said Code, and by noting in said Code at Section 24 -55 the words 'This Section has been amended and now exists in the form of a separate Ordinance.' Section 2. Area and Scope of Ordinance 2.1 This Ordinance shall apply only to the area of Corpus Christi Bay, Nueces Bay and Laguna Madre lying below the line of mean higher high tide, (as that line exists on the effective date hereof), and within the boundaries of the City of Corpus Christi, (as such boundaries may exist from time to time), including all nat- ural or artificial islands, spoil banks, and other territory, whether submerged or exposed, situated within such area. No other provision of the Corpus Christi Oil and Gas Ordinance or of the provisions of Chapter 24 of the Corpus Christi City Code (1958), as now or here- after amended, shall apply to the area covered by this Ordinance un- less specifically made applicable thereto by Ordinance. 2.2 No operations for production, treating, transporting, or for exploring, drilling or reworking for production of oil, gas or other mineral shall be conducted in the area defined in paragraph 2.1 above except as provided in this Ordinance. 2.3 All regulations and prohibitions herein imposed shall be in addition to the regulations of all other state or federal regulatory bodies having jurisdiction, including but -3- • not limited to the Railroad Commission of Texas, the Commissioner of the General Land Office of Texas, the Parks and Wildlife Com- mission of Texas, the United States Army Corps of Engineers, the United States Coast Guard, and any other department of the United States government. Section 3. Definitions The following words and terms wherever used or appear- ing in this Ordinance, in the singular or plural form, shall have the scope and meaning here indicated, unless the context clearly indicates otherwise, viz: 3.1 The term "effective date" shall mean the date of final passage of this Ordinance by the City Council. 3.2 The word "person" shall include any natural per- son, persons or group of persons, whether acting individually, in concert, or in any representative capacity, and any partner- ship, private or public corporation, trust, estate, agency, trustee, executor, administrator, receiver, agent or other legal entity. 3.3 The term "well" means any hole, excavation or bore made downward from the surface intended to extend 200 feet or more into the subsurface, by any means or manner, for the purpose of exploring for, discovering, producing, injecting or re- injecting oil, gas or other mineral including, without limi- tation, sulphur, salt, any form of hydrocarbon, distillate, waste, and fresh or salt water. 3.4 The term "lessee" means any person who owns all or part of an oil and gas lease subject to this Ordinance, or who has obtained the right from the owner of such a lease to conduct operations in search of oil and /or gas underlying such lease. 3.5 The term "applicant" means any person who applies for a permit under the provisions of this Ordinance. -4- 10 -25 -66 3.6 The term "permit" means a permit granted pursuant to this Ordinance. 3.7 A "permittee" is any person holding a permit granted under this Ordinance. 3.8 The term "State Lease Tract" means the entire surface and subsurface area included and embraced within a single State Numbered Lease Tract in Corpus Christi Bay, Nueces Bay or Laguna Madre, as shown on the official maps on file in the General Land Office of the State of Texas, except as modi- fied by paragraph 7.11A of Section 7 hereof. 3.9 The term "straight well" means a well intended to be drilled from the surface to the bottom thereof with no portion of the hole having a deviation of more than five (5) degrees from vertical. 3.10 The term "directional well" means a well intended to be drilled from the surface to the bottom thereof with some portion of the hole having a deviation of more than five (5) degrees from vertical. 3.11 The term "existing well" means a well in the process of being drilled under a lawful permit, authorized by the Council, or a completed well producing or capable of producing oil or gas in paying quantities, on the effective date of this Ordinance. 3.12 The term "sub -mud" as used in reference to a well completion or well producing structure means a device or scheme in which no part of the wellhead installation, including any and all appurtenances thereto, extends above the bottom of the Bay. 3.13 THE TERM "RELIEF WELL" MEANS A WELL DRILLED OR ADAPTED UNDER EMERGENCY CIRCUMSTANCES ARISING IN CONNECTION WITH AN EXISTING WELL, TO CORRECT OR SAFEGUARD AGAINST UNEXPECTED AND INHERENTLY HAZARDOUS CONDITIONS. 3.14 The terms "bay area" and "bay areas" means all of the area covered by this Ordinance as defined in paragraph 2.1 of Section 2 hereof. -5- io -z5 -66 3.15 The words "Bay Park and Recreation Area" (also sometimes referred to as "Bay Park Area "), means that portion of water, land, and submerged land in Corpus Christi Bay described in paragraph 6.1 of Section 6 hereof. 3.16 The "Bay Drilling Committee" or the "Committee" means the Committee established in Section 4 hereof. 3.17 The words "well surface structure" shall have the meaning defined in paragraph 7.6 of Section 7 hereof. 3.18 The words "cluster area" shall have the meaning defined in paragraphs 7.10, 7.11, and 7.12 of Section 7 hereof. 3.19 A "regular location" is the surface location of any well or relief well within a cluster area as designated under this Ordinance. 3.20 An "exceptional location" is the surface location of any well that is not a regular location. 3.21 The words "permanent permit" and "temporary per- mit" shall have the meaning defined in paragraph 21.9 of Section 21 hereof. 3.22 The terms "Mayor," "City Manager," "City Council," "Council," and "City Secretary" refer to those of the City of Corpus Christi, Texas, unless otherwise expressly indicated. 3.23 The term "City Petroleum Superintendent," or "Super- intendent" means the head of the Division of Petroleum Inspection of the City of Corpus Christi. Section 4. Bay Drilling Committee 4.1 There is hereby established as an advisory body to assist the City Council in its function hereunder, the Bay Drilling Committee, to exist until abolished by the Council. The membership of this Committee shall be composed of six (6) persons who are residents of the City of Corpus Christi, two (2) of whom shall be members of the City Council, two (2) of whom shall be selected from among the general public not connected with the business of exploring or drilling for, or producing oil, -6- gas and other hydrocarbons, and two (2) of.whom shall be selected from the oil and gas industry. The council members shall be elected by majority vote of the Council; the public members shall be appointed by the Mayor with the approval of the Council, and the industry members shall be appointed by the Mayor with the ap- proval of the Council from those persons nominated by the oil and gas industry as hereinafter provided. Not later than one (1) month prior to the beginning of a new term for each industry mem- ber, or within one (1) month after occurrence of a vacancy in the position of such a member, any lessee may nominate one person from his or its own organization for the position of industry mem- ber of the Committee. Such nomination shall be in writing and filed with the City Secretary, and the industry members of the Committee shall be appointed from such nominees. In making such appointments, the Mayor shall give due consideration to the ex- tent of interest owned by each lessee making a nomination in the area covered by this Ordinance. In the event that no such nom- ination is submitted or, in the event no person so nominated is appointed and approved, the Mayor shall appoint any person he deems suitable with the approval of the Council to fill the posi- tion of industry member of the Committee. 4.2 Except as provided herein, members of the Com- mittee shall be appointed for terms of three (3) years, and may succeed themselves. To establish rotation of membership, the terms of the first Committee shall extend from selection to the end of the day indicated „ viz: One council member - to December 31, 1966 and one council member - to December 31, 1967; one pub- lic member - to December 31, 1966, and one public member - to December 31, 1968; one industry member - to December 31, 1967 and one industry member - to December 31, 1968. The Committee term of any council member shall terminate when he ceases to be a member of the Council. vacancies on the Committee, however brought about, shall be filled as provided in Section 4.1 for a -7- • • new term or for the balance of any unexpired term vacated, as the case may be. A member of the Committee may resign at any time upon written notice to the SUPERINTENDENT', or any member may be removed at any time by a majority vote of the Council for cause deemed sufficient by it. 4.3 A Chairman, a First Vice- chairman and a Second Vice- chairman shall be designated from among the membership of the First Committee by the Mayor, with the approval of the Council, to serve until the end of the calendar year. Thereafter, the Committee shall annually elect its own Chairman and Vice- chairmen. In the absence of the Chairman, the First Vice-chair- man or in his absence the Second Vice - chairman shall act in place of the Chairman on any matter on which action of the Chairman is called for by this Ordinance. 4.4 The Committee shall make and adopt rules of pro- cedure governing its own actions, not inconsistent with this Ordinance, and shall hold such meetings and hearings as may be required for its proper function hereunder. Each member of the Committee shall be entitled to one vote upon all matters coming before the Committee. 4.5 Four members shall constitute a quorum for action at any meeting held or hearing conducted by the Committee. Meet- ings of the Committee shall be called by the Chairman, or by the ranking Vice - chairman in the absence of the Chairman, or by any three members of the Committee, by written notice to each member delivered at least twenty -four (24) hours or mailed at least forty -eight (48) hours in advance of the proposed time of meeting, which notice may be waived by any member as to himself. All public hearings before the Committee shall be called only upon authorization by a quorum of the Committee and shall be set for such date as will enable the Committee to comply with all time requirements of this Ordinance. 4.6 The SUPERINTENDENT or such other person as may be M 10 -25 -66 • designated by the Committee shall keep and retain such records of the Committee's proceedings as the Committee or the Council may direct, and all such records shall be filed in the office of the ' SUPERINTENDENT. The City Manager and the Superintendent shall assist the Committee at its request, each consistent with the other demands of his office. 4.7 Members of the Committee shall receive no compen- sation for their services as such, but any and all expense reasonably and necessarily incurred by the Committee, or any member duly authorized, shall be borne by the City; provided, however, that the same shall have been duly authorized or approved by specific or general action of the Council or the City Manager, as the case may be, prior to incurring such expenses. 4.8 The Bay Drilling Committee is hereby designated as an advisory agency of the Council for all purposes stated or reasonably implied in this Ordinance. This Committee shall make a continuing study of operations for the exploration, drilling, and production of oil, gas and other minerals in the bay areas within the city limits, and the possible effect of same upon the public health, safety and general welfare of the City of Corpus Christi. It shall make such reports and recommendations from time to time as it deems advisable to the Council for the amend- ment and revision of this Ordinance and all other regulations per- taining to said activities. The Committee shall have all of the powers and duties imposed upon it by any other provision of this Ordinance. Section 5. Division of Petroleum Inspection of the Department of Public Works. 5.1 There is hereby established as an administrative Division in the Department of Public Works of the City of Corpus Christi the "Division of Petroleum Inspection." 5.2 The head of the Division of Petroleum Inspection shall be a person called the "City Petroleum Superintendent" who shall -9- io -25 -66 be appointed by the City Manager, subject to confirmation by vote of a majority of the members of the Council. The City Petroleum Superintendent (also referred to herein as "Superin- tendent"), shall be a technically qualified person with respect to the type of oil and gas activity prevalent in the area covered by this Ordinance, and the Council shall prescribe such compensation for his services and other terms of employment as may appear to be reasonable and proper. Before appointment, any person being considered for the post of Superintendent shall make a full disclosure to the City Manager and the Council of any employment, stock ownership or other pecuniary or busi- ness relationship with any lessee and during his term of office, and the Superintendent shall make the same disclosure as to any changes in such matters. 5.3 The Superintendent shall advise the Council, the City Manager and the Committee with respect to the matters reg- ulated by this Ordinance, shall have the duties and authority prescribed by this Ordinance, and shall perform such other duties as may be properly prescribed by the Council or the City Manager. 5.4 In the event it appears necessary or advisable, the Superintendent shall recommend to the City Manager the hiring of inspectors or other personnel in order to fully enforce the provisions of this Ordinance. Upon authorization of such positions by the Council, any such personnel shall be appointed by the City Manager. Section 6. Bay Park and Recreation Area 6.1 There is hereby designated an area to be known as the "Bay Park and Recreation Area," (also referred to herein as "Bay Park Area "), which shall consist of all that portion of water, land and submerged land in Corpus Christi..Bay which lies between a line formed by the line of mean higher high tide on the shore- line of said Bay and the center line of Nueces Bay Causeway desig- nated for northbound traffic,(U. S. Highway 181), (as both exist as of the effective date of this Ordinance), and the following -10- described line (which is approximately one (1) mile 15280 feet] from the center line of Ocean Drive and Shore Line Drive in the City of Corpus. Christi): Beginning at a point in the line common to State Tracts 67 and 79 as shown on "Map of Corpus Christi Bay in Nueces County showing subdivision for Mineral Development" issued by General Land Office, May 5, 1950, the Lambert Grid Coordinates (Texas South Zone) of said point being X = 859521.14 and Y = 269851.07; said point being on the East boundary line of the City Limits of Corpus Christi as set out in call No. 77 of the Corpus Christi Annexation Ordinance No. 6636. Thence North 69 degrees 07 minutes 26 seconds West 2665.57 varas to a point, X = 857030.56 and Y = 270800.94; Thence North 65 degrees 30 minutes 47 seconds West 1844.31 varas to a point, X = 855352.14 and Y = 271565.38; Thence North 56 degrees 54 minutes 51 seconds West 1765.57 varas to a point, X = 853872.85 and Y = 272529.20; Thence North 44 degrees 25 minutes 40 seconds West 1727.83 varas to a point, X = 852663.35 and Y = 273763.10; Thence North 18 degrees 43 minutes 02 seconds West 1927.46 varas to a point, X = 852044.83 and Y = 275588.62; Thence North 42 degrees 37 minutes 15 seconds West 1729.23 varas to a point, X = 850873.89 and Y = 276861.08; Thence North 11 degrees 20 minutes 31 seconds West 852.12 varas to a point, X = 850706.31 and Y = 277696.56; Thence North 8 degrees 13 minutes 08 seconds East 1702.83 varas to a point, X = 850949.74 and Y = 279381.90; Thence North 7 degrees 27 minutes 43 seconds West 596.32 varas to a point, X = 850872.30 and Y = 279973.17; Thence North 15 degrees 48 minutes 15 seconds East 1978.58 varas to a point, X = 851411.17 and Y = 281876.96; Thence North 29 degrees 48 minutes 24 seconds East 1111.98 varas to a point, X = 851963.91 and Y = 282841.83; -11- Thence North 49 degrees 19 minutes 59 seconds East 2389.11 varas to a point, X = 853776.07 and Y = 284398.72; Thence North 53 degrees 56 minutes 18 seconds East 2145.85 varas to a point on the line common to State Tracts 26 and 40, X = 855510.74 and Y = 285661.89; said point being South 45 degrees O1 minutes 50 seconds East 1195.15 varas along the line common to State Tracts 40 and 26 from the most easterly corner of State Tract No. 41, X = 854665.19 and Y = 286506.53. This point being common to call number 65 in the City of Corpus Christi Annexation Ordinance No. 6636. Thence North 56 degrees 20 minutes 51 seconds East 1939.25 varas to a point, X = 857125.00 and Y = 286736.54; Thence North 67 degrees 43 minutes 19 seconds East 4122.74 varas to a point, -X = 860940.00 and Y = 288299.48; Thence North 66 degrees 26 minutes 56 seconds East 2291.94 varas to a point on the Fairway Limits of LaQuinta Channel, X = 8.63041.03 and Y = 289215.26; Thence with the Fairway Limits of LaQuinta Channel South 77 degrees 31 minutes 20 seconds East 1846.81 varas to a point, X = 864844.10 and Y = 288816.26; Thence with the Fairway Limits of LaQuinta Channel and a projection thereof South 23 degrees 45 minutes 14 seconds East 8226.99 varas to a point, X = 868158.00 and Y = 281286.23; Thence South 71 degrees 24 minutes 58 seconds East 1139.41 varas to a point, X = 869238.00 and Y = 280923.11; Thence South 82 degrees 32 minutes 32 seconds East 1198.14 varas to a point on the Southeast line of State Tract 420,. X = 870426.00 and Y = 280767.60, said point being on the East bound- ary line of the City Limits of Corpus Christi as set out in call No. 77 of the Corpus Christi Annexation ordinance No. 6636, said point being South 44 degrees 58 minutes 10 seconds West 524.80 varas from the East corner of said State Tract No. 420, 6.2 Subject only to the other provisions of this Sec- tion 6, no well other than an existing well shall be drilled, operated or produced from any surface location within the Bay Park -12- Area and no derrick, platform, rig, piling, tank, pump, Christmas tree, well -head connection, or any other equipment of any nature whatsoever used in the drilling, production, storing, processing or treating of oil, gas or other mineral shall be operated for such purposes within the Bay Park Area after the effective date of this Ordinance. No permit hereunder shall ever be issued for any such purpose; provided only that the Council may grant exceptions as follows: (a) Sub -mud well producing structures may be permitted, and wells which will be completed with sub -mud well producing structures may be permitted to be drilled from surface locations in the Bay Park area; provided that no such surface location or sub -mud well producing structure shall be situated closer to the shoreline of Corpus Christi Bay than at a point which is Four Thousand.Two Hundred Eighty (4280) feet from the seaward bound- ary of the Bay Park Area as such boundary is hereinabove specif- ically described by metes and bounds. (b) Other exceptions to this Section may be granted by the City Council upon application for a permit hereunder, and an affirmative showing by applicant that the requested exception is necessary to prevent confiscation of property. The term "confis- cation of property" as used in this instance shall not be deemed to exist unless it is established by applicant that (1) use of a surface location outside the Bay Park Area, either on water or on land, renders it physically impossible to make a bottom hole completion within such Area; and (2) pooling or unitization of the minerals alleged to be confiscated will not eliminate the need for the well or, if pooling or unitization would so eliminate necessity for the well, that good -faith efforts by applicant so to pool or unitize.on a reasonable basis had been made by appli- cant and failed; and (3) applicant is suffering loss through uncompensated drainage of its lease, or is in imminent danger of such loss or is in imminent danger of losing its lease; and -13- 10 -25 -66 (4) subject to item (a) immediately preceding, no sub -mud com- pletion is practicable for engineering reasons. 6.3 Drilling of a relief well from a surface location in the Bay Park Area may be commenced without first securing a Permit if such action is deemed necessary in the good -faith opinion of the lessee. Lessee shall make all reasonable efforts to notify the Superintendent by telephone as soon as feasible, but failure to make such notification shall not be deemed a violation of this Ordinance. Within twenty -four (24) hours after the commencement of operations for the drilling of such a relief Petroleum Superintend- well, the lessee drilling the same shall notify the City /Seex°et ent that such operations have been commenced, stating fully the reasons therefor, and such lessee shall within five (5) days after such commencement of operations make application for a permit to drill said well as elsewhere provided in this Ordinance. The lessee drilling such relief well shall also furnish promptly any information with respect to such relief well as may be requested from time to time by the Council, the Committee, the Superintendent or any other authorized official or employee of the City. No such well drilled as a relief well under the provisions of this paragraph 6.3 shall be completed as a producing well unless a permit therefor shall have been issued in the same manner as is required hereunder FOR THE DRILLING OF ANY OTHER WELL. ANY RELIEF WELL NOT COMPLETED AS A PRODUCING WELL WITHIN SIX MONTHS AFTER COMMENCEMENT OF DRILLING OPERATIONS,UNLESS AN EX- TENSION IS OBTAINED FROM THE CITY COUNCIL, SHALL BE PLUGGED AND ABANDONED. EXTENSIONS NOT EXCEEDING A SIX -MONTH PERIOD MAY BE GRANTED BY THE CITY COUNCIL. 6.4 ANY EXISTING WELL OR WELL PERMITTED TO BE DRILLED IN THE BAY PARK AREA UNDER PARAGRAPHS 6.2 AND/OR 6.3 ABOVE, AND APPURTENANCES THERETO, SHALL BE SUBJECT TO ALL OTHER APPLICABLE PROVISIONS OF THIS ORDINANCE. - 6.5 THE PROVISIONS OF THIS SECTION 6 ARE DOMINANT AND CONTROLLING OVER ANY OTHER SECTION, PARAGRAPH OR PROVISION OF THIS ORDINANCE INSOFAR AS THE BAY PARK AREA IS CONCERNED. SECTION 7. LOCATION OF WELLS AND SURFACE STRUCTURES IN LAGUNA MADRE AND IN CORPUS CHRISTI BAY OUTSIDE THE BAY PARK AND RECREATION AREA. 7.1 THIS SECTION SHALL APPLY ONLY TO LAGUNA MADRE AND TO THAT PORTION OF CORPUS CHRISTI BAY WHICH IS NOT INCLUDED WITHIN THE BAY PARK AND RECREATION AREA (EXCEPT AS PROVIDED IN PARAGRAPH 6.4 OF SECTION 6 HEREOF). -14- rr� 7.2 No rig, platform, piling structure, derrick, tank, Christmas tree, pipe, tube, meter, separator, or any other equip- ment whatsoever used in the drilling or operation of a well or in the procuction, treating or storing of oil, gas or other minerals shall be erected, constructed, installed, maintained, operated or allowed to exist in the area covered by this Section 7 except as permitted by this Ordinance. No barge, rig, boat or ship shall be moored, anchored or sunk in place in the area covered by this Sec- tion 7 for the purpose of drilling or operating a well or of pro- ducing, processing, treating or storing oil, gas or other minerals except as permitted by this Ordinance. 7.3 Any item or thing enumerated in paragraph 7.2 of this Section 7 may be situated in the area covered by this Section 7 for a period not to exceed six (6) months, provided that a tem- porary permit therefor be obtained as prescribed by Section 20 of this Ordinance, prior to the commencement of erection, construction, installation or emplacement thereof. Such temporary permit shall be limited to such period of time as the applicant therefor may re- quest, or as may be determined to be reasonably necessary to ac- complish the purpose for which such permit is requested, but in no event shall such permit be valid for a period in excess of six (6) months. Any such item or thing allowed under a temporary permit shall be removed prior to the expiration of the period for which such permit is granted. No permit shall be necessary with respect to any rig, barge, piling or other structures or equipment used in the drilling, completing, re- working, cleaning, repair or test- ing of a well for which a valid and subsisting permanent permit shall have been issued hereunder, provided notice of such operation shall have been given to the SUPERINTENDENT within seventy -two (72) hours and provided that any such structure or equipment shall be removed within thirty (30) days after completion of the well or completion of the workover, cleaning, testing or repairing, said thirty (30) day period to be automatically extended for a reasonable period of time if forces beyond the reason- -15- 10-25-66 able control of lessee prevent removal within said period, pro- vided, that before the expiration of said period, lessee shall PETROLEUM SUPERINTENDENT notify the City /,&�,Qrj"gy of its inability to comply with this provision and the reasons therefor. 7.4 No well shall be drilled without a permit duly issued and subsisting under this Ordinance, provided that drilling of a relief well maybe commenced without first securing a permit if such action is deemed necessary in thb good -faith opinion of the lessee. Lessee shall make all reasonable efforts to notify the Superintendent by telephone as soon as feasible of the drilling of such relief well, but the failure to make such notification shall not be deemed a violation of this Ordinance. Within twenty - four (24) hours after the commencement of operations for the drilling of such a relief well, the lessee drilling the same PETROLEUM SUPERINTENDENT shall notify the City / ?tarW that such operations have been commenced, stating fully the reasons therefor, and such lessee shall within five (5) days after such commencement of operations make application for a permit to drill said well as elsewhere provided in this Ordinance. The lessee drilling such relief well shall also furnish promptly any information with respect to such relief well as may be requested from time to time by the Council, the Committee, the Superintendent or any authorized official or employee of the City. No well drilled as a relief well under the provisions hereof shall be completed as a producing well unless a permit therefor as for any well in the Bay Area shall have been issued in the same manner as is required hereunder for the drilling of any other well. In connection with any such permit, an exception to the provisions of paragraphs 7.10, 7.11, or 7.12 of this Section 7 may be granted by the Council if the Council determines that: (i) a well surface location not conforming to the provisions of paragraphs 7.10, 7.11, or 7.12 of this Section 7 is necessary in order to complete such relief well as a producing well; and (ii) the denial of such permit would work an undue economic hardship on the applicant; and (iii) the granting of such exception would not be unduly inimical to the general pattern of spacing of we71 surface structures established by this Section detrimental 7 and would not otherwise be/� to the public health, safety -16- or welfare. Any relief well not completed as a producing well shall be plugged and abandoned within six (6) months of commencement of drilling operations unless an extension is obtained from the City Council. 7.5 Any permit issued for the drilling of a well shall be deemed to cover and include all rigs, barges, pilings, struc- tures, and equipment used in drilling, testing and completing such well. If a well is completed as a dry hole or if a well that once produced becomes depleted, or if a well used as an injection well or for other purposes ceases to be so used, and any such well is abandoned because not suitable for any use within the reasonably foreseeable future, then the well shall be plugged and abandoned in accordance with the regulations of the Railroad Commission of Texas or other regulatory body having jurisdiction, and within sixty (60) days after the well is plugged, all .surface structures and other surface equipment appurtenant to such well or used in connection therewith shall be removed; said sixty (60) day period to be automatically extended for a reasonable period of time if forces beyond the reasonable control of lessee prevent removal within the sixty (60) day period, provided that before the expir- ation of said sixty {60) day period, lessee shall notify the City Secretary of its inability to comply with said sixty (60) day pro- vision and the reasons therefor. 7.6 If a well is completed as a producer (including wells capable of paying production but shut -in), no structures or equip- ment appurtenant to such well shall be constructed, erected, in- stalled, maintained or operated in, on or above the waters. of Corpus Christi Bay or Laguna Madre, except the following: Christmas tree, meters, valves, flow lines, pipelines, free water knock -out, skimming and chemical injection equipment, and any other equipment required by this Ordinance or other regulatory authority having jurisdiction, all of which shall, to the extent possible consistent with generally accepted industry safety practices, be enclosed within a protective structure, all of which shall collectively be termed and referred to hereinafter as a "well surface structure ". 17- AS OF THE EFFECTIVE DATE OF THIS ORDINANCE AND FROM TIME TO TIME THEREAFTER, THE CITY COUNCIL SHALL PRESCRIBE BY RESOLUTION REASONABLE DESIGNS FOR THE PROTECTIVE STRUCTURES TO BE USED ON COMPLETED WELLS AND ANY DESIGN SO APPROVED MAY BE USED BY ANY LESSEE. ALL EQUIPMENT COMPRISING A WELL SURFACE STRUCTURE WHICH CAN FEASIBLY BE SUBMERGED IN ACCORDANCE WITH GENERALLY ACCEPTED INDUSTRY SAFETY PRACTICES AT TIME OF SUCH INSTALLATION, SHALL BE SUBMERGED UNDER SUCH PROTECTIVE STRUCTURE. 7.7 AS OF THE EFFECTIVE DATE OF THIS ORDINANCE AND FROM TIME TO TIME THEREAFTER THE CITY COUNCIL SHALL PRESCRIBE BY ORDINANCE OR RESOLUTION THE APPROVED EXPOSED SILHOUETTES OF WELL SURFACE STRUCTURES CONSISTENT WITH ACCEPTED SAFETY STANDARDS, WHICH ARE TO BE INSTALLED IN THE WATERS OF CORPUS CHRISTI BAY WITHIN A DISTANCE OF TWO MILES FROM THE SHORELINE OF CORPUS CHRISTI BAY OR LAGUNA MADRE. (IF THE LOCATION IS SEAWARD OF THE BAY PARK RECREATION AREA, A LINE DRAWN PARALLEL TOE AND ONE MILE SEAWARD OF, THE LINE WHICH IS SPECIFICALLY DESCRIBED IN SECTION 6.1 AS THE SEAWARD BOUNDARY OF THE BAY PARK RECREATION AREA SHALL BE "TWO MILES FROM THE SHORELINE'S AS SUCH PHRASE IS USED IN THIS SECTION). THE RULES ADOPTED AS OF THE EFFECTIVE DATE OF THIS ORDINANCE ARE AS FOLLOWS: (1) WITHIN SUCH TWO -MILE AREAS CHRISTMAS TREES SHALL BE LOCATED AS LOW UPON THE WATER, AND SHALL BE OF THE MINIMUM HEIGHT REQUIRED IN ORDER TO PERMIT THEM TO SERVE THE FUNCTIONS FOR WHICH INSTALLED COMPLY WITH REGULATIONS OF APPLICABLE GOVERNMENTAL BODIES, AND CONSISTENT WITH ACCEPTED SAFETY STANDARDS. (Z) WELL PROTECTIVE STRUCTURES SHALL BE NO TALLER THAN THE CHRISTMAS TREE THEY PROTECT AND SHALL BE NO WIDER THAN REASONABLY REQUIRED IN ORDER TO PERFORM THE FUNCTION FOR WHICH DESIGNED AND TO MEET REASONABLE OPERATING REQUIREMENTS. 7.8 SUB -MUD WELL PRODUCING STRUCTURES SHALL BE PERMITTED TO BE IN- STALLED AT ANY LOCATION IN THE AREA COVERED BY THIS SECTION 7, AND THE DRILLING OF WELLS WHICH WILL BE COMPLETED WITH SUB -MUD WELL PRODUCING STRUCTURES SHALL BE PERMITTED FROM ANY SURFACE LOCATION IN THE AREA COVERED BY THIS SECTION 7. 7.9 NO WELL SURFACE STRUCTURE SHALL BE LOCATED IN THE AREA COVERED BY THIS SECTION 7 EXCEPT IN CONFORMITY WITH THE PROVISIONS OF THIS SECTION 7. 7.10 SUBJECT TO THE EXCEPTIONS HEREAFTER PROVIDED IN THIS ORDINANCE, IN ANY STATE LEASE TRACT ON WHICH THERE IS NO WELL SURFACE STRUCTURE LOCATED AS OF THE EFFECTIVE DATE OF THIS ORDINANCE, ALL WELL SURFACE STRUCTURES SHALL BE LOCATED WITHIN AN AREA IN THE FORM OF A SQUARE WITH DIMENSIONS OF 500 FEET BY 500 FEET. THE CENTER OF SUCH AREAS NORTH OF THE SHIP CHANNEL -18- known as the Port Aransas - Corpus Christi Waterway shall be a point anywhere from 467 feet to 660 feet from the northwest boundary line and 467 feet to 660 feet from the northeast bound- ary line of said tract. The center of such areas south of the ship channel known as the Port Aransas - Corpus Christi Waterway shall be a point anywhere from 467 feet to 660 feet from the northwest boundary line, and from 467 feet to 660 feet from the southwest boundary line of said tract. The center of each such area shall be designated in the permit for the first well to be drilled from such area. Each such area shall be termed and re- ferred to hereinafter as the "cluster area ". The first well sur- face structure placed on any such tract may be located at any location within such cluster area but additional well surface struc- tures shall be located not more than two hundred fifty (250) feet from the nearest existing well surface structure, except that the distance from center to corner wells in a cluster area may be no more than three hundred fifty -four (354) feet. 7.11 In any State Lease Tract which contains well sur- face structures in existence as of the effective date of this Ordinance, all additional well surface structures placed in such tract shall be located in an area in the form of a square, with dimensions of,500 feet by 500 feet, within which the existing well surface structure shall be located, which area shall be termed and referred to as the' "cluster area".- Additional well surface struc- tures shall be located not more than two hundred fifty (250) feet from the nearest existing well surface structure, except that the distance from center to corner wells in a cluster area may be no more than three hundred fifty -four (354) feet. In the event that any State Lease Tract contains two or more existing well surface structures on the effective date of this Ordinance, which are lo- cated so close together that the cluster area assigned to each would overlap, then only one cluster area shall be permitted, within which the existing well surface structure which is located closest to a corner of such tract shall be located; provided -19- a0 -25 -66 i that with the acquiescence of the lessees of adjoining State Lease Tracts, the lessee of such tract may designate another existing well surface structure around which the cluster area shall be located. The first permit granted hereunder within any such State Lease Tract shall specify the location of the cluster area. In the event that any State Lease Tract contains two or more existing well surface structures on the effective date of this Ordinance which are located so far apart that the cluster area assigned to each would not overlap, then additional well surface structures may be placed in each of such cluster areas. Well surface structures appurtenant to an abandoned well shall not be considered to be a well surface structure for the purposes of this paragraph. 7.11A With respect to state leases which cover only an area approximately 320 acres in size, the term "State Lease Tract" as used in paragraphs 7.10 and 7.11 of Section 7 hereof shall be deemed to mean and require an area approximately 640 acres in size which shall be formed by combining two of said state leases along the abutting long sides thereof, with such combinations to be commenced on the most westerly side of Corpus Christi Bay where said leases are found and to be carried forward contiguously in an eastwardly direction so as to form areas of approximately 640 acres in size in the shape of a square. Specifically, but not by way of limitation, each pair of the following listed pairs of State Lease Tracts shall be deemed to constitute but one State Lease Tract for purposes of paragraphs 7.10 and 7.11 of this Section 7, to -wit: 1. State Lease Tracts Nos. 415 and 416 2. State Lease Tracts Nos. 417 and 418 3. State Lease Tracts Nos. 419 and 420 4. State Lease Tracts Nos. 421 and 422 5. State Lease Tracts Nos. 443 and 444 6. State Lease Tracts Nos. 445 and 446 7. State Lease Tracts Nos. 447 and 448 8. State Lease Tracts Nos. 449 and 450 9. State Lease Tracts Nos. 451 and 452 10. State Lease Tracts Nos. 453 and 454 11. State Lease Tracts Nos. 455 and 456 12. State Lease Tracts Nos. 469 and 470 13. State Lease Tracts Nos. 471 and 472 14. State Lease Tracts Nos. 473 and 474 15. State Lease Tracts Nos. 475 and 476 -20- 0 1 . . to -z5 -66 • i 7.12 If the location prescribed for a cluster area in paragraph 7.10 above is situated within the Bay Park Area, ship channels or seaplane landing restricted area or any other area where surface structures are prohibited by other governmental authorities, upon application the Council shall prescribe an alternate cluster area; provided that no cluster area will be prescribed in the Bay Park Area except as contemplated in Section 6 of this Ordinance. 7.13 Exceptions to paragraphs 7.10 and 7.11 hereof may be granted by the City Council upon application for a permit hereunder and an affirmative showing by a lessee of any oil, gas or mineral lease situated within the area covered by this Section 7 that an exception is necessary to prevent confiscation of property. The term "confiscation of property" as used herein shall not be deemed to exist unless it is affirmatively established by lessee that use of a surface location in the applicable cluster area renders it physically impossible to make a bottom hole completion within the applicable State Lease Tract, and the certificate required under Section 10 of this Ordinance is filed. Section 8. Production Platforms 8.1 This Section shall apply only to the area of Corpus Christi Bay and Laguna Madre defined in paragraph 2.1 of Section 2 of this Ordinance. -20a- 8.2 No production platform or facility shall be erected, constructed, installed, maintained, operated or allowed to exist without a permit duly issued or subsisting under this Ordinance. As used in this Section 8, the term "production platform or facil- ity" shall mean any structure or island (other than a well surface structure) which holds or contains equipment for the handling, processing or treatment of oil, gas or other hydrocarbons, or any aggregation of equipment and facilities designed for any of such purposes. No production platform or facility may be materially altered in height or area without a permit hereunder. Any change in such facilities which materially affect the architectural ap- pearance shall be submitted to the Committee in advance. 8.3 Any structure or facility in existence on the ef- fective date of this Ordinance and which covers less than four hundred (400) square feet in surface area and which has appur- tenances extending no more than forty (40) feet in height above mean sea level shall not be deemed to be a production platform or facility for purposes of paragraph 8.5 of this Section 8, and shall be allowed to be maintained and operated subject to the pertinent provisions of the other paragraphs and Sections of this Ordinance, provided that no enlargement of such.structure or facility exceeding fifty percent (50 %) of the surface area cov- ered thereby on the effective date of this Ordinance or fifty percent (50 %) of the height of the appurtenances thereto on said date shall be allowed unless a permit therefor is granted by the Council. 8.4 Any structure or facility for which a permit has been granted under the provisions of Ordinance No. 7983 of the City of Corpus Christi, as amended, and which is in existence on the effective date of this Ordinance and which is situated on any spoil bank or spoil island shall not be deemed tq be a pro- duction platform or facility for purposes of paragraph 8.5 of -21- this Section 8, and shall be allowed to be maintained and operated subject to the pertinent provisions of the other paragraphs and Sections of this Ordinance, provided that no enlargement of such structure or facility exceeding fifty percent (50%) of the surface area covered thereby on the effective date of this Ordinance or fifty percent (50 %) of the height of the appurtenances thereto on said date shall be allowed unless a permit therefor is granted by the Council. 8.5 No more than three (3) production platforms (not including the structures excepted herefrom in paragraphs 8.3 and 8.4 of this Section 8) shall be allowed to be maintained at any one time in that portion of Corpus Christi Bay situated within the boundaries of the City of Corpus Christi as such boundaries existed on June 1, 1966. One of said production platforms shall be permitted to be located north of the ship channel known as the Port Aransas - Corpus Christi Waterway and the remaining two of said production platforms shall be permitted to be located south of said ship channel. No production platform shall be located within three (3) miles of the shoreline of Corpus Christi Bay and no production platform shall be located within three (3) miles of any existing production platform. 8.6 The proposed location of any production platform for which a permit is requested must be approved by the Council, which approval shall be signified by the issuance of a permit setting forth the location for such production platform. In de- termining the location of production platforms hereunder, the City Council shall consider, but shall not be limited to, the follow= ing factors: the opinions of other lessees in the area to be served by the production platform; convenience of the proposed location with respect to all then existing production and any future production (insofar as same can be determined) in the area to be served by the production platform; sufficiency of the -22 proposed facilities for present production and such future pro- duction as reasonably can be estimated; appearance of the pro- posed facilities, including compactness and height; willingness of the operator of the proposed platform to serve all parties within the area to be served by the platform and reasonableness of terms for so doing; experience, capability, integrity and financial stability of the operator of the proposed platform; availability of other means for disposing of such production; and effect of the type of facilities proposed upon the public health, safety and general welfare. 8.7 Any permit issued for a production platform shall be conditioned upon (i) the agreement of the applicant that it will take and handle on fair and reasonable terms on such pro- duction platform all hydrocarbon production brought to such pro- duction platform from any well having,a well surface structure location within a radius of three (3) miles from the center of such production platform; (ii) the agreement of the applicant that it will treat all lessees within the area to be served by such production platform in as equal a manner as possible; and that in the event production is submitted for handling on such production platform in greater volume or of differing quality than the facilities thereon are capable of handling, or should separate facilities be required for marketing purposes, the ap- plicant will install, or permit other lessees to install, addi- tional facilities thereon (including enlargement of such produc- tion platform if necessary) so as to provide for the handling of all production brought to such production platform; and (iii) the agreement of the applicant that in the event it is unable to reach an agreement with any other lessee desiring to have pro- duction handled on such production platform as to fair and reason- able terms for handling such production or for the enlargement of such production platform or the installation of additional facilities thereon, then the applicant will be willing to submit -23- 76-25 -66 • such dispute to arbitration under the Rules of the American Arbitration Association and be bound by any decision rendered thereunder. Section 9. Nueces Bay 9.1 This Section 9 shall apply only to Nueces Bay, which for purposes hereof is defined as the bay area west of the Nueces Bay Causeway (U. S. Highway No. 181). 9.2 No well shall hereafter be drilled without a permit duly issued and subsisting under this Ordinance, provided that drilling of a relief well may be commenced without securing a permit if such action is deemed necessary in the good -faith opinion of the lessee. Lessee shall make all reasonable efforts to notify the Superintendent by telephone as soon as feasible of the drilling of such relief well, but failure to make such notification shall not be deemed a violation of this Ordinance. Within twenty -four (24) hours after the commencement of operations for the drilling of such a relief well, the lessee drilling the same shall notify the SUPERINTENDENT that such operations have been commenced, and such lessee shall within five (5) days after such commencement of operations make application for a permit to drill said well as elsewhere provided in this Ordinance. The lessee drilling such relief well shall also furnish promptly any information with respect to such relief well as may be requested from time to time by the Council, the Committee, the Superintendent or any authorized official or employee of the City. No well drilled as a relief well under the provisions hereof shall be completed as a producing well unless a permit therefor shall have been issued in the same manner as is required hereunder for any other well. Any relief well not completed as a producing well shall be plugged and abandoned within six (6) months of commence- ment of drilling operations unless an extension is obtained from the City Council. 9.3 If a well is completed as a dry hole or if a well that once produced becomes depleted, or if a well used as an injection well or for other purposes ceases to be so used, and any such well is abandoned because not suitable for any use within the reasonably foreseeable future, then the well shall be plugged and abandoned in accordance with the regulations of the Railroad Commission of Texas or other regulatory body having jurisdiction, and within thirty (30) days after the well is plugged, all well 24 0 1o_z5 -66 surface structures and equipment appurtenant thereto or used in connection therewith shall be removed, said thirty (30) days to be automatically extended for a reasonable period of time if forces beyond the reasonable control of lessee prevent removal within the thirty (30) day period, provided that before the expiration of said thirty (30) day period, lessee shall notify the SUPERINTENDENT of its inability to comply with said thirty (30) day provision and the reasons therefor. 9.4 Except for appurtenances to a well for which a permanent permit has been issued, no platform, piling, structure, derrick, tank, Christmas tree, tube, meter, separator, or any other equipment whatsoever used in the drilling or operation of a well or in the production, processing, treating or storing of oil and gas shall be erected, constructed, installed, maintained, operated or allowed to exist in the area covered by this Section 9 without a permit first being duly issued or subsisting, as prescribed in this Ordinance; provided, that this provision shall not be applicable to any such platform, piling, structure, derrick, tank, Christmas tree, tube, meter, separator or other equipment being maintained or operated in the area covered by this Section 9 on the effective date of this Ordinance. No barge, rig, boat or ship shall be moored, anchored or sunk in place in the area covered by. this Section 9 for the purposes of drilling or operating a well or producing or storing oil and gas without a permit first being issued as prescribed in this Ordinance. 9.5 A temporary permit may be granted with respect to the area covered by this Section 9 on the same bases and for the same purposes as are allowed under paragraph 7.3 -f Section 7 of this Ordinance. 9.6 Upon application for any permit required under this Section 9, the City Council shall grant such permit in the form and manner prescribed in this Ordinance, provided that the applicant shall comply with the pertinent provisions of the remaining sections of this Ordinance. Section 10. Pooling and Unitization 10.1 No permit for the drilling of a well in Corpus Christi Bay or Laguna Madre shall be issued under this Ordinance -25- unless the applicant therefor shall have filed the certificate prescribed in this Section 10, which shall thereupon become a part of the application and permit for all purposes of this Ordinance. 10.2 Such certificate shall be in duplicate, under oath, and shall assert as fact that: (a) the possibility of eliminating the necessity for drilling the well by pooling or unitization has been seriously considered by applicant; and (b) such consideration has included discussion of such possibility at a meeting or meet- ings, held within ninety (90) days of the date of filing between those with power to pool or unitize, or to effectively recommend the same, of applicant and the owners of all operating rights in any lease or leases situated, in whole or in part, within four thousand (4000) feet of the proposed bottom -hole location of the well; and (c) it is not feasible to eliminate the necessity for drilling the well by pooling or unitization. 10.3 Absent circumstances giving rise to reasonable doubt that the certificate was made in good faith, and if upon its face it complies in all respects with the requirements of this Section 10, it shall be conclusive of the matters stated therein for the purposes of granting the permit sought. Section 11. Regulation of Pipelines 11.1 No pipeline for the purpose of gathering, flow- ing or transmitting oil, gas, water, products, hydrocarbons or any other substance shall hereafter be laid, relaid, moved, maintained or operated in the area covered by this Ordinance except as authorized by the U. S. Army Corps of Engineers (here- inafter called "Corps "). 11.2 The owner of each pipeline hereafter laid in the area covered by this Ordinance shall furnish the City Secretary a copy of each instrument (including plats) concerning the pipe- line which is filed with the Corps, as well as a copy of the per- -26- MIT, RULING OR OTHER REPLY ISSUED BY THE CORPS. THE OWNER SHALL MAINTAIN IN ITS OFFICE LOCATED IN OR NEAREST TO THE CITY OF CORPUS CHRISTI A PERMANENT RECORD SHOWING THE LOCATION OF ALL PIPELINES WHICH IT MAY HERE- AFTER LAY IN THE AREA COVERED BY THIS ORDINANCES WHICH RECORD SHALL BE OPEN AT ALL REASONABLE TIMES TO INSPECTION BY ANY AUTHORIZED OFFICIAL OR EMPLOYEE OF THE CITY. SECTION 12. REMOVAL OF FACILITIES 12.1 ALL WELL SURFACE STRUCTURES OR OTHER EQUIPMENT APPURTENANT TO A WELL, ALL PRODUCTION PLATFORMS, AND ALL OTHER STRUCTURES, PLATFORMS FACILITIES OR EQUIPMENT FOR WHICH A PERMIT HAS BEEN ISSUED BY THE CITY OF CORPUS CHRISTI HEREUNDER SHALL BE REMOVED BY THE PARTY TO WHOM THE PERMIT WAS ISSUED OR TRANSFERRED UPON THE PERMANENT CESSATION OF SAME. SHELL MATS LAID ON THE FLOOR OF THE BAY NEED NOT BE REMOVED UPON ABANDONMENT. SECTION 13. PROHIBITION OF POLLUTION 13.1 ALL OPERATIONS SUBJECT TO REGULATION BY THIS ORDINANCE SHALL BE CONDUCTED IN STRICT COMPLIANCE WITH ALL ORDINANCES OF THE CITY, AND ALL LAWSI RULES AND REGULATIONS OF OTHER GOVERNMENTAL AGENCIES HAVING JUR15DICTIONI RELATING TO POLLUTION AND CONTAMINATION. SECTION off. PAINTING AND LIGHTING OF STRUCTURES 14.1 ALL PARTS OF WELL SURFACE STRUCTURES, LOCATED ABOVE WATER IN THE AREA COVERED BY THIS ORDINANCE AND COMPOSED OF MATERIALS GENERALLY PAINTED IN ACCORDANCE WITH CUSTOMARY MARINE INDUSTRIAL STANDARDS SHALL BE PAINTED A CONSPICUOUS COLOR UNLESS ANOTHER COLOR 15 DESIGNATED BY RESO- LUTION OF THE COUNCIL AND SHALL BE REPAINTED AT SUFFICIENTLY FREQUENT INTERVALS TO MAINTAIN SAME IN GOOD CONDITION. ALL PRODUCTION PLATFORMS AND OTHER STRUCTURES AND FACILITIES, EXCEPTING WELL SURFACE STRUCTURE5� LOCATED ABOVE WATER IN THE AREA COVERED BY THIS ORDINANCE AND COMPOSED OF MATERIALS GENERALLY PAINTED IN ACCORDANCE WITH CUSTOMARY MARINE IN- DUSTRIAL STANDARDS SHALL BE PAINTED AN INCONSPICUOUS COLOR UNLESS ANOTHER COLOR IS DESIGNATED BY RESOLUTION OF THE COUNCIL, AND SHALL BE REPAINTED AT SUFFICIEN'T'LY FREQUENT INTERVALS TO MAINTAIN SAME IN GOOD CONDITION. 14.2 ALL SURFACE STRUCTURES, PRODUCTION PLATFORMS, AND OTHER STRUCTURES OR FACILITIES SITUATED IN THE AREA COVERED BY THIS ORDINANCE SHALL BE LIGHTED IN ACCORDANCE WITH -27- United States Coast Guard regulations and /or regulations not in conflict with those of the Coast Guard issued pursuant to paragraph 19.16 of Section 19 of this Ordinance. Each permittee shall determine at least twice each month that the lighting on each facility for which a permit is held is operating in con- formity with such regulations, and if thereby or otherwise found not to be so operating, then the lighting shall be immediately restored so as to conform with such regulations. Section 15. Prohibition of Signs and Advertising 15.1 No sign, poster, advertisement, light, or beacon shall be affixed to or placed on or about any surface structure, production platform, or other structure, equipment or facility for which a permit is issued hereunder, except (.i,)- working lights, (ii) signs such as "No Smoking" and "No Trespassing" where de- sired by the lessee, and (iii) such signs, lights and warning devices as may be required under the provisions of this Ordinance or by any other regulatory authority having jurisdiction,. Section 16. Right of Access 16.1 THE SUPER I NTEN DENT, OR ANY duly authorized official, representative or employee of the City shall have the right of access for purposes of inspection at all reasonable times to any drilling location, surface structure, production platform or other facility for which a permit is required or issued hereunder. 16.2 Upon request by any duly authorized official, representative or employee of the City, any lessee or permittee shall furnish such geological data as lessee files with the Railroad Commission of Texas. Section 17. Insurance 17.1 The holder of any permit issued hereunder shall obtain and maintain in force a policy or pblicies of public liability and property damage insurance issued by a reliable insurance company or companies authorized to do business in Texas -28- and having a Policyholder Rating of Excellent or better and Financial Rating of BBBB or better according to the ratings issued by the Best Insurance Guide, insuring the permittee against claims for bodily injury or property damage which might be sus- tained by the City or any member of the public by reason of any operations conducted under said permit, with coverage limits for bodily injury or death to any one person of riot less than $100,000.00 and not less than $1,000,000.00 for any one accident, and for property damage of not less than $1,000,000.00 for any one occurrence; with endorsements to said policies running to the City for the benefit of it and members of the public, and ob- ligating the insurers to give the SUPERINTENDENT written notice of cancellation of such insurance not less than fifteen (15) days prior to the date of cancellation. Section 18. Bonds 18.1 The holder of any permit issued hereunder shall post a corporate surety bond in the sum of Twenty -five Thousand Dollars ($25,000), executed by the permittee as principal and by a surety company acceptable to the City, as surety, and condi- tioned that the principal named in the bond shall faithfully com- ply with all of the provisions of this Ordinance and of the permit until the said permit shall have been released by the principal and the release shall have been approved by the City as pro- vided herein. Such bond shall secure the City against all costs, charges and expenses incurred by it by reason of the failure of the principal to fully comply with the provisions of the permit and of this Ordinance. In lieu of a bond for each permit held, (i) any permittee may post a blanket bond covering all permits issued to the permittee hereunder in the sum of $100,000, which shall be conditioned in the same manner aforesaid, or (ii) in the sole discretion of the Council, a permittee may be allowed to post an indemnity agreement with the City conditioned in the V -29- 10 -25 -66 • C same manner as a bond required hereunder if such permittee files a balance sheet and statement certified by a recognized firm of certified public accountants reflecting the net worth of permittee to be in excess of ten million dollars (10,000,000). Section 19. Technical Regulations 19.1 No well shall be completed or operated in a sand or horizon which would result in surface shut -in pressure in excess of the working pressure rating of standard A.P.I. wellhead equipment on the well. 19.2 Each well drilled or operated will be equipped with casingheads, tubingheads, and wellhead connections which conform to A.P.I. standards. The casingheads shall have a work- ing pressure of not less than three thousand pounds (3000) per square inch. The tubingheads and wellhead connections shall have a working pressure in excess of the well's shut -in surface pressure. All wells with a surface shut -in pressure of three thousand pounds (3000) per square inch or less shall be equipped with at least one master valve and one wing valve. All wells with a surface shut -in pressure in excess of three thousand pounds (3000) per square inch shall be equipped with at least two master valves and a wing valve, and all connections upstream of the surface safety valve shall be flanged. 19.3 A surface safety valve shall be installed on all wells with a surface shut -in pressure in excess of three thousand pounds (3000) per square inch. 19.4 All flowing wells shall be equipped with a sub- surface safety valve (storm choke) installed in the tubing string, unless a tubingless completion is involved. This valve shall be pulled and inspected between April 1 and October 1 of each year and more often if desired by lessee. 19.5 Each well drilled or operated will be equipped with tubulars that conform to American Petroleum Institute standards. The production string and the tubing string shall have a working -30- pressure capacity in excess of the well's surface shut-in pressure, The tubing shall be protected from well effluent corrosion as re -. quired by internal coating and /or periodic chemical inhibitor in- jection, and periodic checks on iron count in well effluent shall be made and reported to the SUPERINTENDENT UPON REQUEST. 19.6 Each well drilled will be equipped with blowout preventers from the time the surface casing is set. The minimum preventer stacks to be installed on the surface casing will con- sist of one set equipped with blanks, one set equipped with rams, and one Hydril type. The minimum preventer stack to be installed on protection and subsequent casing strings will consist of one set equipped with blanks, two sets equipped with rams, and one Hydril type. The blowout preventers will be worked before each trip and pressure tested at the time of installation on each cas- ing string. A choke manifold will be installed immediately under the blowout preventer stack and will have the same working pressure or greater. 19.7 Each -well drilled will use a drilling fluid and /or procedure which will provide a hydrostatic head greater than the formation pressure expected to be encountered, or other recognized method to accomplish well surface pressure control. 19.8 Drill stem tests may only be started during day- light hours. If a hydrocarbon well effluent is produced during the test, it will be flowed through an adequate separator to storage or flared. No liquid hydrocarbons shall be deposited in the waters of the bay area. 19.9 When any part of the area covered hereby is in the projected path of winds classified by the United States Weather Bureau to be of hurricane proportions, then at such time as the frontal edge is estimated to be not less than twenty -four (24) hours away, all lessees operating in the area covered hereby shall immediately shut down all drilling and producing oper- ations and all drill pipe shall either be laid down and secure- -31- ly fastened or left in the well hole. 19.10 When a well is abandoned it shall be plugged in accordance with the rules and regulations of the Railroad Commission of Texas. All strings of pipe will be cut off at the elevation specified by the U. S. Army Corps of Engineers, but at least fifteen (15) feet below the mud line. After re- moving the rig, the location shall be dragged for obstacles. 19.11 The movement of hydrocarbons from wells to storage shall be made in such manner as to prevent the escape of hydrocarbons. All flow lines leading from wells to produc- tion platforms shall be tested to two thousand (2000) pounds per square inch water pressure or at least one thousand (1000) pounds per square inch in excess of the anticipated working pressure of the line for all working pressures in excess of one thousand (1000) pounds per square inch. All lines shall be placed in.conformity with regulations of the U. S. Army Corps of Engineers. Each line shall be constructed from new or recon- ditioned pipe in first class condition, and before it is sub- merged shall be doped and treated in such manner as to offer reasonable resistance to salt water corrosion. 19.12 All wells shall be cleaned, tested and pro- duced in a manner to prevent pollution and utilize procedures and equipment that will eliminate or minimize any fire hazard. 19•13 WHEN R LEAK OCCURS IN A PIPELINE OR FLOW LINE, THE FLOW OF SUBSTANCE THEREIN WILL BE STOPPED AS SOON AS POSSIBLE AFTER BEING DETECTED, AND WILL CONTINUE TO BE STOPPED UNTIL REPAIRS HAVE BEEN EFFECTED IN THE MOST EXPEDIENT MANNER TO PREVENT POLLUTION AND HAZARD. 19.14 All steel members of a production platform below the water line shall be cathodically protected. 19.15 The use of wooden derricks and steam powered rigs for drilling purposes are prohibited. 19.16 The Council may, from time to time, issue such ru169 end rOgUlALtiO110 110t inaonnistent with but in iMplementa- -32- lU_Z� oD Ll tion of this Section 19, copies of which shall be made available to the public in the office of the SUPERINTENDENT r- 19-17 Tubingless completions are permitted if a permit therefor shall have been obtained from each other governmental agency requiring the same, copies of which shall be furnished to the SUPERINTENDENT and all other requirements of this Ordinance are complied with. Section 20. Permits 20.1 All permits required by this Ordinance shall be issued in the form prescribed in this Section 20, except as pro- vided in Section 30 for existing structures and facilities. 20.2 No permit shall be issued except upon application by the owner or owners of the property right to which the permit relates. No application shall apply for more than one permit and no permit shall cover more than one subject matter. All applications for permits and permits shall be in the form prescribed in the Exhibits to this Ordinance and shall contain the information and Exhibits required by this Ordinance. Such forms may be changed from time to time by amendment of this Ordinance. All applications for permits shall be signed and sworn to before a notary public by the applicant or some representative of the applicant having due and legal authority to enter into contracts binding upon the applicant. All applications for permits shall be filed in duplicate with the SUPERINTENDENT All applications forpermits to drill a well or erect a production platform shall be accompanied by a filing fee of $500; all applications for permanent permits for other purposes and all temporary permits shall be accompanied by a fee of $100. A fee paid for a temporary permit shall be credited orr the fee charged for a permanent permit in event a temporary permit is applied for conversion to a permanent permit. All applications shall contain an agreement by the applicant to provide boat transportation during normal working hours for the Superintendent or any other duly authorized city official or employee forthe purpose of inspecting wells or the facilities for which the permit is requested, with the understanding that the furnishing of such transportation shall create no extra duty of care. 20.3 All applications for a permit to drill a well shall contain at least the following; information: -33- (a) the names and addresses of all owners of working interest in the well; (b) the name of the drilling contractor, if same be a different party than the applicant. If the identity of the drilling contractor is not known at the time the application is made, the name of the drilling contractor shall be furnished to the SUPERINTENDENT prior to the commencement of drilling operations; (c) the location from which the well is to be drilled, the approximate location of the surface structures appurtenant to the well, and the approximate bottom hole location of the well; (d) the vertical depth to which it is proposed that the well be drilled, a statement as =to whether the well is to be drilled as a straight hole or as a directional well, and if the latter, the general plan of deviation; (e) a general but accurate summary, including draw- ings where necessary, to indicate (i) the surface equipment and installations contemplated during the drilling stage (including temporary installations.) and (ii) all surface equipment (i.e., equipment located at or above the floor of the bay) that will be installed and maintained-if the well is completed as a pro- ducer, including any and all pipeline connections to the well insofar as possible; (f) a general but accurate'_sta;ement as to anti- cipated time of commencement and duration of drilling, testing and completion procedures (including any unusual circumstances). All applications for permits to drill a well shall have attached thereto the following: (1) certified or photostatic copy of all pertinent oil and gas leases and assignments thereof, with recording data, showing the applicant to be the owner of all or a part of the mineral leasehold working interest under the particular State -34- 16 10 -25 -66 Lease Tract: (2) copies of all permits or authorizations for the particular well granted by other governmental agencies, or applications therefor that are pending; (3) a certificate from an insurance company that the applicant has in force insurance complying with the pro- visions of this Ordinance, and a copy of a bond (or indemnity in lieu thereof) complying with the provisions of this Ordinance. (4) with respect to applications covering wells to be drilled in Corpus Christi Bay or Laguna Madre, a copy of the Certificate required by Section 10 of this Ordinance. 20.4 Each application for a permit to drill a well shall contain an agreement by the applicant to allow the lessee of State Lease Tracts adjacent to the applicant's cluster area to drill wells from a surface location in said cluster area to a bottom hole location on the adjoining State Lease Tract, and to place the surface structure for such well within the appli- cant's cluster area, to the extent that applicant has the power to do so; provided, that such lessee shall agree to indemnify the applicant for any damage caused by such lessee and further pro- vided that the applicant or other lessees have not utilized all of the locations within his cluster area prior to the time that such lessee notifies applicant of his desire to drill. 20.5 All applications for permit to erect and main- tain a production platform shall contain the following infor- mation: (a) the names of all parties who will own an inter- est in the production platform; (b) the name of the contractor who shall construct' the platform, if same be a different party than the applicant. If the name of the contractor is not known at the time the appli- cation is made, the name of the contractor shall be furnished to the SUPERINTENDENT before construction is commenced; (c) the proposed location of the production platform; (d) the names of all lessees of State Leases within a -35- three -mile radius of the proposed location of the production platform. All applications for a permit to erect and maintain a production platform shall be accompanied by the following: (1) adequate evidence of applicant's authority to place a production platform at the proposed location; (2) a current certificate from an insurance company that the applicant has in force insurance complying with the provisions of this Ordinance, and a copy of a bond (or indemnity agreement in lieu of bond) complying with the provisions of this Ordinance; (3) a plat of the proposed location of the production platform and reflecting lease ownership and well surface struc- tures within a three -mile radius of such location; (4) drawings, sketches or blueprints accurately re- flecting the dimensions of the production platform and the equipment to be placed thereon; (5) a general but accurate statement as to the purpose of the platform, and the activities to be carried out thereon; (6) a general but accurate statement as to the terms and conditions upon which production other than that owned by the applicant will be handled through the production platform; (7) a certificate that applicant has given written notice of the application for such permit to each lessee of a State Lease Tract located within the three -mile radius of the proposed location of such production platform. 20.6' All applications for a permit to erect and main- tain a production platform shall contain an agreement by the applicant to comply with the provisions of paragraph 8.7 of Section 8 of this Ordinance. 20.7 All applications for permanent permits for any purpose not otherwise covered by this Section 20, and all ap- plications for temporary permits shall contain full informa- -36- 10 -25 -66 TION AS TO THE NATURE AND PURPOSE OF THE ACTIVITY FOR WHICH SUCH PERMIT 15 REQUESTED AND A FULL STATEMENT DESCRIBING ALL STRUCTURES AND EQUIP- MENT TO BE COVERED BY SUCH PERMIT, AND SHALL BE ACCOMPANIED BY SUCH OF THE ITEMS SPECIFIED IN SUBPARAGRAPHS (1) THROUGH (4) IN SUBSECTION 20.3 OF THIS SECTION 20 AS MAY BE PERTINENT TO THE APPLICATION. 20.8 IF ANY INFORMATIONS EXHIBIT OR OTHER MATERIAL REQUIRED IN THIS SECTION 20 HAS PREVIOUSLY BEEN FURNISHED TO THE CITY OF CORPUS CHRISTI, SUCH REQUIREMENT SHALL BE SATISFIED BY REFERENCE TO THE CITY FILE NUMBER IN WHICH SUCH INFORMAT ION, EXHIBIT OR OTHER MATERIAL IS CONTAINED. SECTION 21. ACTION UPON APPLICATION FOR PERMIT 21.1 UPON RECEIPT OF A PROPERLY SUBMITTED APPLICATION FOR ANY PERMIT HEREUNDER, IN DUPLICATES THE SUPERINTENDENT SHALL SET UP A PERMANENT RECORD AND FILE THEREON, AND SHALL FORWARD ONE COPY OF THE APPLI- CATION AND ALL MATERIALS SUBMITTED THEREWITH TO THE CHAIRMAN OF THE BAY DRILLING COMMITTEE, EACH OF WHOM SHALL PROMPTLY REVIEW THE APPLICATION. IN THE EVENT THAT THE POSITION OF SUPERINTENDENT 15 NOT FILLED OR THE SUPERINTENDENT IS ABSENT OR OTHERWISE INCAPABLE OF CARRYING OUT HIS DUTIES AS IMPOSED HEREIN ALL APPLICATIONS FOR PERMITS SHALL BE SUBMITTED DIRECTLY TO THE CHAIRMAN OF THE BAY DRILLING COMMITTEE, WHO SHALL IN SUCH CASE ACT AS THE SUPERINTENDENT IN PROCESSING THE APPLICATION HEREUNDER. 21.2 IF THE SUPERINTENDENT FINDS THAT THE APPLICATION 15 FOR A REGULAR LOCATION OF A WELL AND 15 IN ALL THINGS IN FULL COMPLIANCE WITH THE REQUIREMENTS OF THIS ORDINANCE, HE SHALL WITHIN SEVEN (7) DAYS AFTER RECEIPT SUBMIT TO THE COUNCIL HIS WRITTEN REPORT CERTIFYING TO SUCH FACTS AND RECOMMENDING APPROVALS AND A COPY OF THE REPORT SHALL BE CONTEMPO- RANEOUSLY DELIVERED TO EACH MEMBER OF THE COMMITTEE. IF THE CHAIRMAN AGREES HE SHALL SO PROMPTLY NOTIFY THE COUNCIL IN WRITING. -37- 10-25-66 Chairman so agees, or if -1.iie rman does not submit t- _,aerin �enlm %, within five (5) days aft:;-2 receipt of the, a statement tl�at he or the Committee does not i '1-ith ti-e conclusion and/or recommendation of the Zouncil shall approve the application at its next regular or "'led meeting unless the Council shall itself disagree with such conclusion and/or recommendation. 1n; the event of any such diz- ag reco,-=,endation of approval, the 2��e;.icnt with the /i" an-,licant shall be promptly notified and, if the objections are -Lot cured or removed otherwise, the application shall be further processed as provided hereafter for applications for exceptional location of a well. 21.3 Applications for types of permits required here- under other than for a regular location of a well, which pre- sent on their face situations of routine compliance with this Ordinance, (but not including applications for exceptional location of a well or for construction of a platform), may be processed as provided in paragraph 21.2 above. 21.4 All application* for permits not processed as provided in paragraphs 21.2 or 21.3 above shall be processed as provided in the next succeeding paragraphs 21.5 and 21.6 of this Section 21. .44 21.5 The/4R*&*eei- shall, within seven (7) days after receipt of an application, submit to the Committee his written report on the application, including any recommendation for its disposition or further handling as to,him appears proper, a copy of which shall be contemporaneously delivered or mailed to applicant. At the'request of applicant or any other Inter- ested party, the Committee shall, or upon Its own motio Mal S,,We91717 within ten (10) days after its receipt of the /11� �s report hold a hearing on any application for a permit at which any interested party shall be allowed to submit to the Committee _38- 0' 10 -z5 -66 _nv _1.tten statement or evidence an shall be afforded a roasonable opportunity to pre3ant oral testimony or other per- tinent evidence to the Committee. Al! proceedings before the Committee shall be orderly but i%-Xorm.al and rules of proecnure and evidence (including the cross -- examination of witnesses) norm-al in court proceedings shall not be followed except to the extent permitted or required by the Committee. At the request of any applicant, a written record of the proceedings of any such hearing shall be kept, provided that applicant shall pay for all cost and expense of making such record. 21.6 Not later than thirty (30) days after receiv- C' erliIim-lea1T ing the written report of the/ or after receipt of an application without such report, the Committee shall make a written recommendation to the Council as to whether the applica- tion should be granted, denied, modified or otherwise disposed of. All written materials, statements, proceedings had in public hearings, and the report of bhe�s� er /a9 /sham be trans- mitted to the.Council with.such recommendation. A true copy of said recommendation shall be delivered to the applicant who shall have five (5) days within which to file with the City Secretary a written protest to the Council of the Committee's recommendation, setting forth therein the grounds for any ob- jection. The failure to file any such objection to the recom- mendation of the Committee shall be deemed to be a walver.of any objection by the applicant. Upon the filing of said recom- mendation by the Committee and of said objection, if any, by the applicant, or upon the failure of the Committee to make such recd =endation; to the Council within the thirty (30) day period herein provided for, the Council shall promptly act upon the application for permit. Except in instances in which th± applicant has failed to provide information required by this Ordinance and in which the Council determines that additional -39- information pertaining to such application should be furnished, the Council shall.take final action upon such application not later than thirty (30) days after such application properly comes before the Council. The ICouncil may act upon the basis of the written recommendation and other reports submitted to it, provided, however, that the Council may in its discretion order such further or additional hearings before the Committee or before the Council as it may deem appropriate. 21.7 Regardless of any time period suggested or prescribed in this Ordinance, no inaction or failure to act by the Council shall constitute its action or approval by default. 21.8 Any permit issued hereunder shall be issued over the signature of the City Manager under the authority of the Council. The permit shall be in duplicate, with one counter- part to be delivered to the permittee after the permittee has executed an acceptance on the other counterpart to be retained by the SUPERINTENDENT 21.9 Any permit other than a temporary permit shall be termed and referred to as a permanent permit. The term of a temporary permit shall be for such period as is prescribed therein, but not to exceed a period of six (6) months. The term of a permanent permit shall be for a period of one (1) year within which to commence work thereunder, and shall con- tinue in force as long thereafter as the use of the facility for which the permit is granted shall not be abandoned, or in the case of a permit to drill a well in search of oil and /or gas, as long thereafter as the permittee is engaged in con- tinuous drilling operations, or oil, gas or other hydrocarbons are produced (or capable of being produced) from the well drilled pursuant to such permit, or if the well is completed as a dry hole, so long thereafter as lessee has an intended future use for the well in connection with oil and gas operations -40- 10 -25 -66 NOT OTHERWISE PROHIBITED BY LAW; PROVIDED THAT IF AT ANY TIME AFTER PRO- DUCTION OF OIL OR GAS THEREFROM HAS COMMENCED, SUCH PRODUCTION SHOULD CEASE, THE PERMIT SHALL NOT TERMINATE IF EITHER (1) THE WELL IS SHUT IN, OR (2) THE PERMITTEE COMMENCES OPERATIONS IN AN EFFORT TO RESTORE PRO- DUCTION WITHIN NINETY (90) DAYS THEREAFTER, AND PROSECUTES SUCH OPERATIONS WITHOUT CESSATION OF MORE THAN NINETY (90) CONSECUTIVE DAYS AND IF SUCH OPERATIONS RESULT IN THE PRODUCTION OF OIL OR GAS, THEN 50 LONG THEREAFTER AS OIL OR GAS IS PRODUCED FROM SAID WELL, OR (3) PERMITTEE ELECTS TO USE SUCH WELL AT THAT TIME OR ANYTIME THEREAFTER FOR ANY PURPOSE CONNECTED WITH OIL AND GAS OPERATIONS NOT OTHERWISE PROHIBITED BY LAW, PROVIDED THAT PER- MITTEE SHALL NOTIFY THE SUPERINTENDENT OF SUCH USE PRIOR TO COMMENCEMENT OF OPERATIONS FOR SUCH USE. 21.10 ANY PERMIT ISSUED HEREUNDER MAY BE TRANSFERRED, PROVIDED THAT THE TRANSFEREE MEETS ALL OF THE REQUIREMENTS OF THIS ORDINANCE, IN- CLUDING THE POSTING OF INSURANCE AND BONDS REQUIRED HEREIN. A NOTICE OF TRANSFER SHALL BE FILED WITH THE SUPERINTENDENT. WITHIN FIFTEEN (15) DAYS AFTER SUCH FILING, THE SUPERINTENDENT SHALL NOTIFY THE TRANSFEROR AND TRANSFEREE THROUGH THE CITY MANAGER WHETHER OR NOT THE TRANSFEREE MEETS THE REQUIREMENTS OF THIS ORDINANCE. THE TRANSFEROR SHALL NEVERTHELESS BE LIABLE FOR ALL OBLIGATIONS UNDER THE PERMIT ACCRUING PRIOR TO THE EFFECTIVE DATE OF THE TRANSFER. SECTION 22. EFFECT OF ACCEPTANCE OF PERMIT 22.1 THE ISSUANCE OF A PERMIT AND ITS ACCEPTANCE BY THE PERMITTEE SHALL IPSO FACTO BIND AND OBLIGATE THE PERMITTEE, HIS OR ITS EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS, FOR SO LONG AS ANY DRILLING, PRO- DUCING, PROCESSING, TRANSPORTING, HANDLING, TREATING, OR OTHER OPERATIONS ARE BEING CONDUCTED ON OR WITH REFERENCE TO THE PERMITTED WELL OR OTHER FACILITY AS FOLLOWS: -41- 10 -25 -b6 (a) to maintain'in fc__-e ._:d ofiect a licy or _i_-Lc , of public liability ana pro;: _,rty damage insurance with coverages specifies in this Ordinance and to furnish �_•.�,. .ay to the SUPERINTENDENT c- arre't certificates of insurance :__dorse-:'Icnts corresponding to those required herein; (b) to indemnify the City of Corpus Christi against, and to promptly pay the City for all property damage of every kind snd nature caused to property owned by the City that may ariae because of wilful or negligent act of permittee or the failure of permittee to comply with the provisions of this Ordinance; (c) to fully Comply with all of the terms and re- quirements of the permit and of this Ordinance and all other applicable ordinances of the City, as any of the same may be amended from time to time, and to fully comply with all ap -. plicable requirements of Federal and State laws and of all Federal and State regulatory bodies having jurisdiction; (d) to conduct all operations relative to the pur- pose for which the permit is obtained with adequate rigs, tools, machinery and equipment, employing recognized procedures in .a. prudent manner so as to provide maximum protection and safe- guards akainst possible injury to persona or damage to property, public or private, to prevent blowout, eratering, fire, ex- plosion, surface property damage, pollution or contamination of the waters of the bay and hazards to navigation. Section 23. inspection. 23.1 Each well, production platform, or other.strue- ture or facility for which a permanent or temporary permit has been issued and is still in effect shall be inspected, insofar, as it is feasible to do so, at least annually by the B/Yiaf� /1ole" (or y an-inspector or other employee of the City designated uw pur_uant hereto) and at such other times as may be directed by _42- �10 -25 -66 • THE COUNCIL OR THE COMMITTEE. 23.2 IF THE SUPERINTENDENT (OR OTHER PROPERLY DESIGNATED OFFICIAL) SHALL FIND THAT NO VIOLATION OF THIS ORDINANCES THE APPLICABLE PERMITS OR OTHER REGULATION, HAS OCCURRED HE SHALL SO CERTIFY TO THE COMMITTEE AND THE COUNCIL. 23.3 IF THE SUPERINTENDENT (OR OTHER PROPERLY DESIGNATED OFFICIAL) SHALL FIND A VIOLATION OF THIS ORDINANCE, THE APPLICABLE PERMIT, OR ANY OTHER REGULATION, HE SHALL MAKE A REPORT SPECIFYING SUCH VIOLATION TO THE COMMITTEE AND THE COUNCIL. 23.4 THE LOCATION OF ANY WELL FOR WHICH A PERMIT IS GRANTED HEREUNDER MAY BE INSPECTED PRIOR TO THE COMMENCEMENT OF DRILLING,BY THE SUPERINTENDENT (OR SOME OTHER OFFICIAL DULY AUTHORIZED HEREUNDER) IF DEEMED ADVISABLE IN WHICH CASE HE SHALL CERTIFY THAT SUCH LOCATION IS IN COMPLIANCE WITH THE APPLICABLE PERMIT AND THIS ORDINANCE. SECTION 24. RELINQUISHMENT OF PERMIT 24.1 IN THE EVENT OF ABANDONMENT OF A WELD OR THE PERMANENT CESSATION OF USE OF A PRODUCTION PLATFORM, OR OTHER STRUCTURE OR FACILITY FOR WHICH A TEMPORARY OR PERMANENT PERMIT HAS BEEN ISSUED HEREUNDER SUCH PERMIT SHALL BE RELINQUISHED BY THE PARTIES TO WHOM IT WAS GRANTED OR TRANSFERRED. THE PERMITTEE SHALL PROMPTLY NOTIFY THE SUPERINTENDENT IN WRITING WHENEVER SUCH PERMIT SHOULD BE RELINQUISHED UNDER THE PROVISIONS OF THIS SECTION. THE SUPERINTENDENT (OR ANY INSPECTOR OR OTHER OFFICIAL DULY AUTHORIZED HEREUNDER) SHALL FORTHWITH MAKE AN INSPECTION TO DETERMINE IF ALL REQUIREMENTS AND PROVISIONS OF THIS ORDINANCE HAVE BEEN COMPLIED WITH, AND IF SO FOUND, THEN THE CITY MANAGER SHALL ISSUE A RELEASE TO THE HOLDER OF SUCH PERMIT AND SUCH PERMITTEE AS WELL AS HIS SURETIES SHALL THEREAFTER BE RELIEVED OF ALL OBLIGATIONS HEREUNDER, EXCEPT THAT THE PERMITTEE AND SURETIES SHALL NOT THEREBY BE RELIEVED OF OBLIGATION WITH -43- • respect to any legal cause of action which may have accrued prior thereto in favor of the City, or any other person, until the applicable statute of limitation shall have barred any such cause of action. Section 25. Required Sign 25.1 All surface structures, production platforms, and other facilities for which a permit is issued hereunder shall have affixed thereto a sign made of some permanent mater- ial, which shall reflect the name of the permittee and the number of the permit issued therefor. Section 26. Annual Report of Permit 26.1 On or before the 1st day of August of each year, every holder of a permit or permits issued hereunder, or issued under any other Ordinance or previous Ordinance pertaining to the area covered by this Ordinance, shall file with the City Secretary a report listing by number each and every permit held by the holder and currently in use. Section 27. Emergency Operations by Lessee Without First Obtaining a Permit.. 27.1 In the event that an emergency arises in the course of conducting its operations which in the good faith opinion.of lessee constitutes a serious hazard to life and property, lessee may undertake such emergency operations as lessee deems necessary under the circumstances without first obtaining a permit, such emergency action to include without limitation the drilling of a relief well (as elsewhere herein provided), the intentional deviation of a well not originally intended to be deviated, or other emergency operations. Such emergency operations shall not be considered as a violation or offense of this Ordinance or any other ordinance of the City. 27.2 Within twenty -four (24) hours after the com- -44- io -25 -66 . n "'.,:::nt of any such emergency open ticns, lessee shall notify he SUPERINTENDENT that such otporations _lave been commenced, and as soon as practicable but in any event within seven (7) days, lessee shall file a written repo.^t to the SUPERINTENDENT with co..ins to the chairman of the Committee setting fort'':: a su ,:nary of the emergency and the actions taken by the lessee to combat it. Section 28, Violationz and Penalties and Other Rem ecies 28.1 It shall be unlawful and an offense for any per- son to violate,or fail to comply with any provision of this Ordinance or any provision of a permit issued hereunder. Any violation, or failure to comply with the laws of the State of Texas, or any rule, regulation, or requirement of any State or Federal regulatory body having jurisdiction with respect to drill- ing, completing, equipping, operating„ producing, or abandoning an oil or gas well or related appurtenances, equipment or facil- ities or with respect to the storage and transportation of oil, gas and other hydrocarbons, or in reference to fire protection, blowout protection, safety protection, water or bay pollution, or navigation, shall also be unlawful and.an offense under this'' Ordinance. 28.2 Any person who shall do or perform an unlawful act or commit an offense as specified in paragraph 28.1 of this Section, shall be deemed guilty of a misdemeanor and shall, on conviction thereof, be fined in any sum;; not less than ,"x5.00 and not more than $200.00; and the violation of each separate pro- vision, law, rule,.regulation and requirement shall be considered a separate offense, and each day's violation of each separate provision, law, rule,, regulation, and requirement, shall be con- sidered a separate offense. In audition to the foregoing pen- alties, it is further provided that the Council, at any regular or special m0 atiny thereof, may revoke any permit issued ;ere- � -45- • 0 under in the event the permittee has intentionally or repeated- ly done or performed an unlawful act or committed an offense .as specified herein, provided, that if the violation is such as could be remedied by permittee, the permit shall not be re- voked unless permittee has been notified in accordance with paragraph 28.3 of this Section and has thereafter failed or refused to remedy such violation, and further provided that ten (10) days' notice shall be given to the permittee that revocation is to be considered at such meeting. In the event the permit is revoked, the permittee may make application to the Council for a reissuance of such permit. 28.3 In addition to all other penalties provided herein, any violation of the provisions of.this- Ordinance which may be cured by remedial action shall be remedied by the person committing such violation within ten (10) days after notification of the specific remedial action required by the Council, and upon failure of such person to take the action required in the notification by the Council, the Council may direct any official or agency of the City to do and perform all such remedial action as may be necessary to cure said vi- olation, which shall be done at the sole cost and expense of the person committing such violation, and such person shall immediately reimburse the City for all costs so incurred upon notification thereof. 28.4 In addition to any other penalty provided by this Section, the Council may direct the City Attorney to in- stitute an action in any court having competent jurisdiction to enjoin any violation of the provisions of this Ordinance or for an injunction to compel compliance with any provision of this Ordinance. 28.5 The penalties and remedies provided in this -46- -to -z5 =66 _v_. _ fo violations of t? is _.s dir....:ce shall be cumulative, nothir.E herein container: s-.. -11 bc deemed to require the Council, or any officer or employee of the City, to elect to pursue one penalty or remedy hereunder to the exclusion of any other remedy or penalty for which.provision is herein made, or to be to the exclusion of any remedy at law or in equity, nor shall any action taken or caused to be taken by the Council or any officer or employee of the City, be construed to be such an election. Section 29. Continuation of Prior Permits_ 29.1 Any permit or license granted prior to the ef- fective date of this Ordinance by the City with respect to any matter for which a permit is required by this Ordinance is here- by declared to be a valid and subsisting permit under this Ordi- nance, provided that all such permits and licenses shall be sub- ject to all of the provisions of this Ordinance (except that a new permit need not be obtained hereunder:) Section 30. Prospective Effect - ExistinZ Facilities 30.1 This Ordinance is prospective in its effect. All wells and all equipment, structures or installations in existence upon the effective date of this Ordinance within the area defined in Section 2.1, and for which no permit has been issued hereunder, shall be deemed to be permitted under this Ordinance and the owner and operator thereof is deemed hereafter to be the holder of a permit duly issued and accepted under this Ordinance for all pur- poses. Except as otherwise particularly required hereunder., or as may be hereafter particularly required by the Council in the im- plementation of regulation under this Ordinance, no application for or issuance of a formal permit is required as to such exist - ing facilities. But any and all other requirements of this Ordi- nance as to permits and permi.ttees shall apply,.and the Council; 7�c APY /ra��s��Ps?�. or the or Committee acting under its direction, may _47- hereafter require application for and issuance of a formal per- mit for any such existing and heretofore non - permitted facility. In such case, the application and permit may cover more than one subject matter, and no fee shall be required. Section 31. Effect of Zoning Ordinance 31.1 It is hereby determined by the Council that any well structure, facility or installation as herein regulated shall, if permitted bg a permit duly issued and subsisting here- under, in no wise be considered in violation of the zoning ordi- nance of the City, or to require compliance with the Building Code. Section 32. Non - Repeal of Certain Ordinances 32.1 This Ordinance shall not be construed as repeal- ing, altering, or otherwise affecting the validity and binding force of any ordinance pertaining to fire prevention, health, sanitation, or safety of persons or property heretofore enacted by the City, except as specifically repealed hereby. Section 33. Repeal of Conflicting Ordinances 33.1 All ordinances and parts of ordinances in con- flict with any of the provisions of this Ordinance are hereby expressly repealed. If ever and whenever in this Ordinance, re- strictions, prohibitions, or provisions conflict, and if ever and whenever restrictions, prohibitions or provisions in this Ordinance conflict with laws of the State of Texas, or with regulations of State or Federal Regulatory Bodies having juris- diction, in.each instance the more restrictive restriction, regulation, prohibition, or provision shall apply. Section 34. Severability 34.1 If any section, paragraph, subdivision, clause, phrase or provision of this Ordinance shall, for any reason, be adjudged invalid.or held to be unconstitutional, the invalidity or unconstitutionality of such particular section, paragraph, 48- • subdivision,clause, phrase or provision so declared shall not affect the validity or constitutionality of the remaining pro- visions hereof, but the same, and each of them, shall remain in full force and effect. Section 35. Headings of Sections 35.1 The headings of the several sections of this Ordinance are inserted for convenience only and shall not have any operative effect and shall not control or affect the mean- ing or construction of any of the provisions of this Ordinance. -49- a � THAT THE FOREGOING ORDINANCE WAS R A-FOR THE FIRST AE PAS ED TO ITS SECOND READING ON THIS THE DAY OF , 19, BY THE FOLLOWING VOTE: DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DONNE DR. P. JIMENEZ, JR. KEN MCDANIEL RONNIE SIZEMORE WM. H. WALLACE THAT THE FOREGOING ORDINAN AS READ TO ITS THIRD READING ON THIS THE DAY OF BY THE FOLLOWING VOTE: DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DONNE DR. P. JIMENEZ, JR. KEN MCDANIEL RONNIE SIZEMORE WM. H. WALLACE THAT THE FO 0 G ORDINANCE JREAD FOR THE FINALLY ON THIS THE DAY OF , FOLLOWING VOTE: DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DONNE DR. P. JIMENEZ, JR. KEN MCDANIEL RONNIE SIZEMORE WM. H. WALLACE PASSED AND APPROVED, THIS THE DAY OF ATTEST:" CITY SECRE ARY Sx D ED APPROVED AS 1` LE PAL FORM T/ % /J DAY OF MAYOR THE CITY OF CORPUS CHRISTI, TEXAS CITY ATTORNE STATE OF TEXAS, f t9s: County of Nueces. Before me, the undersigned, a Notary Public, this day personally came ... ............................... L.el.and G.,j ... BaTnes ................................. who being first duly sworn, according to law, says that he is the .. .... ....... --- ----- ------ 91.4-19.UUO Aav=U;3.Iu9 ... U3xla 9 2X of the Corpus Christi Caller and The Corpus Christi Times, Dail3P Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of LEGAL—Notice of Passa7,e of Q�2dj ....... of which the annexed is a true copy, was published in Tirn'p-a ................................................................ on the 3.1 day of ............. .D.eo..emb.ar ----- 19 6.2 amkMMMamix --------------------------- vieratftwuK.................. ............... I .......... ---Times. $ .................................. 0:a 4-1 p4erww�Qo4i�anager ................ . . .. Subscribed and sworn to before me this 9 .....day ot LMW.Y.- .................... — 19 ...67...... Louise Vick --- - ------------------ i� - ------------- - --- otary Pub ueces County, exas ING SECTION 2455 OF CORPUS CHRISTI CITY 19M AS AMENDED, DEAL - VITH OPERATIONS FOR CTION OF OIL AND GAS, BSTITUTION OF THIS OR :F AND REPEALING SEC - OF ORDINANCE NO. 2616 I AND APPROVED ON JULY 1, ORDINANCE NO, 2953, 1115, PASSED ON SEPTEM- ORDINANCE N0. D APPROVED ON ORDINANCE NO. \ND APPROVED 1966, AND ORDI- PASSED AND Al E i, 1966, EACH OF D SAID SECTION NANCE Nn) 1AlA rvUECES BAY AND LAGUMA MAORE; DELETING SECTION 24-55 FROM THE COR� PUS CHRISTI CITY CODE EX- CEPT TO RECITE; Tf - SECTION HAS BEEN AMENDE`- " "` EXISTS IN THE FORM ur A S NEPOW - ARATE ORDINANCE. WAS PASSED AND APPROVED by'­ City C­- - II of tha City of Co"n' C"Nli, Tc xos, nt ins regclor mee ling of 2A0 p.m., o the 21st doy of D, 'So, pnrovaido salhe� Ih pcbllcabon e e time In the official Publication one thm oenauy nor v lolion shall be a Pn1, gf of e ceedI'g Two Hundred ($200.00) Dnl- R Rny Kring "y RfYCon sG ChrlsfI,eC Texas (SPAL) (21